Author: Nigel Bankes Page 64 of 89

Nigel Bankes is emeritus professor of law at the University of Calgary. Prior to his retirement in June 2021 Nigel held the chair in natural resources law in the Faculty of Law.

Case commented on: EOG Resources Canada v Unconventional Gas Resources Canada Operating Inc, 2013 ABQB 105 (MC)

This decision interprets the default clause (Article 13) of the Canadian Association of Petroleum Landmen’s (CAPL) Farmout and Royalty Procedure. It confirms that there is no automatic termination of the farmee’s right to earn provided that the farmee has spudded in the earning well; the farmee is entitled to proper notice of default and the opportunity to rectify that default.

Whoever heard of such a thing? A Crown oil and gas lease an intangible form of personal property?

By Nigel Bankes

On March 1, 2013

In Bankruptcy and Insolvency, Oil & Gas

PDF version: Whoever heard of such a thing? A Crown oil and gas lease an intangible form of personal property?

Case considered: Kasten Energy Inc v Shamrock Oil and Gas Ltd, 2013 ABQB 63.

In this case Justice Lee granted Kasten’s application to appoint a receiver\manager over all of the assets of Shamrock, including Shamrock’s Crown oil and gas lease. Kasten was a secured creditor of Shamrock claiming under a general security agreement (GSA) over Shamrock’s present and after acquired personal property. In the course of making his decision to appoint a receiver Justice Lee concluded that Shamrock’s lease was an intangible form of personal property. Kasten brought its application for the appointment of a receiver\manager Kasten under section 13(2) of the Judicature Act, RSA 2000, c J-2 rather than under section 65(7) of the Personal Property Security Act, RSA 2000, c P-7 (PPSA).

When is a Lease Issued “In Lieu” of an Existing Lease?

By Nigel Bankes

On February 20, 2013

In Limitations, Oil & Gas

PDF version: When is a lease issued “in lieu” of an existing lease?

Case Commented In: Canadian Natural Resources Limited v Jensen Resources Ltd, 2012 ABQB 786

In the early 1980s the Government of Alberta decided to make a clearer distinction in its tenure regime between grants of conventional petroleum and natural gas (PNG) rights and grants of oil sands rights. In implementing this policy the province went so far as to redefine the rights contained in existing Crown PNG leases. But in return, it allowed the affected PNG lessees to apply for a form of oil sands tenure for the rights that had been excluded from the PNG leases. That’s what happened in this case and the issue was whether Jensen’s gross overriding royalty (GOR) which clearly applied to the PNG leases also carried over to the oil sands rights. Justice Jo’Anne Strekaf held that it did.

The right to trap in traditional territory: a case of competing normative orders?

By Nigel Bankes

On January 16, 2013

In Aboriginal

PDF version: The right to trap in traditional territory: a case of competing normative orders?

Decision commented on: Cooper and Boucher v Ganter and HMQA, 2012 ABQB 695.

I don’t actually know if this is a case of competing normative orders but it sure looks like it. More formally and abstractly this decision confirms that a claimant cannot avoid the six month limitation rule for judicial review proceedings by commencing an action by way of a statement of claim.

The death of free entry mining regimes in Canada?

By Nigel Bankes

On January 15, 2013

In Aboriginal, Natural Resources

PDF version: The death of free entry mining regimes in Canada?

Decision commented on: Ross River Dena Council v Government of Yukon, 2012 YKCA 14.

I (along with co-author Cheryl Sharvit) and others have long tried to make the case that free entry mining regimes are not only bad public policy but also unconstitutional on the grounds that the common premises of free entry regimes are inconsistent with the Crown’s duty to consult indigenous peoples whose rights and interests may be affected by the government’s decisions to allow others to acquire rights in traditional territory. See Bankes and Sharvit, Aboriginal Title and Free Entry Mining Regimes in Northern Canada, (1998) here and Bankes, “The Case for the Abolition of Free Entry Mining Regimes” (2004), 24(2) J. Land, Resources, & Envtl. Law 317-322.

Author: Nigel Bankes Page 64 of 89

A Farmee that Spuds in the Test Well has the Right to a Default Notice

Whoever heard of such a thing? A Crown oil and gas lease an intangible form of personal property?

When is a Lease Issued “In Lieu” of an Existing Lease?

The right to trap in traditional territory: a case of competing normative orders?

The death of free entry mining regimes in Canada?