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Author: Nigel Bankes Page 8 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.

Alberta Rolls Out Yet Another Form of Sequestration Agreement

By: Nigel Bankes

Document commented on: Mineral Rights Information Bulletin, 2023-01, Small-Scale and Remote (SSR) Carbon Sequestration Tenure, September 14, 2023

PDF Version: Alberta Rolls Out Yet Another Form of Sequestration Agreement

The Government of Alberta (GoA) is experimenting with several different forms of carbon sequestration tenure. But while the initial development of sequestration tenure and policy between 2010 and 2013 was open and transparent – as reflected in the Regulatory Framework Assessment – there is very little in the way of public explanation for the more recent changes, and, as noted in previous ABlawg posts (my last post contains relevant links), very little in terms of overall transparency.

A Blog with Two Titles: (1) The Current Status of Monitoring, Measurement and Verification Requirements for Carbon Capture and Storage Projects in Alberta, and (2) When Does a Ministerial Order Have to be Published?

By: Nigel Bankes

Documents commented on: AER Bulletin 2023-29, July 27, 2023; a new edition of AER Directive 065: Resources Applications for Oil and Gas Reservoirs, July 27, 2023; and Ministerial Order MO 60/2023

PDF Version: A Blog with Two Titles: (1) The Current Status of Monitoring, Measurement and Verification Requirements for Carbon Capture and Storage Projects in Alberta, and (2) When Does a Ministerial Order Have to be Published?

As the title suggests this post addresses two matters. First it refers to some recent developments in Monitoring, Measurement and Verification (MMV) requirements for carbon capture and storage projects (CCS) in Alberta, and in particular the allocation (and now, it seems, a reallocation) of the regulatory responsibility for these requirements as between the recently rebranded Ministry of Energy and Minerals (MEM) and the Alberta Energy Regulator (AER). Second, it addresses the more general question of when ministerial orders have to be published. While these matters appear to be unrelated they are in fact joined at the hip, as I hope to demonstrate.

Sometimes it is Completely Irrelevant Whether or not a Royalty Interest Amounts to an Interest in Land

By: Nigel Bankes

Case commented on: Enerplus Corporation v Harvest Operations Corp, 2021 ABQB 634 (CanLII), appeal dismissed, 2023 ABKB 482 (CanLII)

PDF Version: Sometimes it is Completely Irrelevant Whether or not a Royalty Interest Amounts to an Interest in Land

Harvest (70%), Orlen (15%), and Petrus (15%) are the working interest owners of certain oil and gas properties. Under the terms of a farmout agreement (in the form of the 1997 Farmout and Royalty Procedure of the Canadian Association of Petroleum Landmen (CAPL)), back in the chain of title, Enerplus holds a gross overriding royalty interest (GORR) in the 70% interest currently held by Harvest. The terms of the GORR provided that:

An Incredibly Ill-Advised and Unnecessary Decision

By: Nigel Bankes and Martin Olszynski

Decision Commented On: Generation Approvals Pause Regulation, OiC 172/2023, August 2, 2023

PDF Version: An Incredibly Ill-Advised and Unnecessary Decision

On August 3, 2023 the Government of Alberta announced that the Alberta Utilities Commission (AUC) will pause approvals of new renewable electricity generation projects over one megawatt until February 29, 2024. As further set out below, this “pause” is entirely unnecessary to achieve the government’s stated goals; it is also astoundingly hypocritical and undermines confidence in the stability of Alberta’s regulatory framework insofar as it singles out renewable energy projects for special treatment.

Conflict in Paradise

By: Nigel Bankes

Decisions Commented On:  (1) AUC Decision 27589-D01-2023, Nova Solar G.P. Inc. and AltaLink Management Ltd., Nova Solar Power Plant and Transmission Connection, July 19, 2023; and (2) AUC letter decision on standing, October 31, 2022 (AUC’s Standing Ruling).

PDF Version: Conflict in Paradise

New and different resource uses may give rise to conflict or competition, and many have been discussed on ABlawg’s pages. Examples include:

(1)  competition between natural gas storage operations and conventional oil and gas operation, (see for example Bankes, “Kallisto #2. Competing Uses of Geological Space: Resolving Conflicts Between Oil Production and Natural Gas Storage Interests”);

(2) competition for underground disposal capacity, (see, for example Bankes, “Sharing Geological Pore Space Disposal Capacity” as well as a complex and ongoing regulatory matter involving CNRL and Greenfire Resources before the Alberta Energy Regulator); and

(3) competition between proposed carbon capture and storage operations and a variety of conventional and non-conventional resource activities, (see for example, Ettinger et al, “Alberta’s Carbon Capture & Storage Land Grab And The Potential For Conflicts Of Subsurface Rights”).

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