Category: Administrative Law Page 1 of 39

Case Commented On: APL Oil & Gas (1998) Ltd v Alberta, 2025 ABKB 201 (CanLII)

PDF Version: An Important Alberta Crown Lease Continuation Decision

In the natural resources sector, as in so many other industrial sectors that require major capital investments in physical assets, security of tenure for those engaging in exploration activities (resource lessees) is foundational. And a crucial part of security of tenure for a resource lessee is the expectation that, if they make a discovery, they will be able to hold on to that discovery at least until they have recovered all their investment including a return on risk capital, or better yet, until the discovery has been fully exploited and is no longer profitable to produce. On the other hand, the resource owner (whether private or public (Crown)) wants to ensure diligent exploration and development by the resource operator/lessee, failing which the property should be returned to the owner so as to allow the owner to explore other potential lessees.

The AER Panel Dismisses Appeal in Induced Seismicity Case But Reinforces the Case For a Regional Approach

By Nigel Bankes

On April 7, 2025

In Administrative Law, Energy

By: Nigel Bankes

Decision Commented On: Obsidian Energy Ltd. Appeal of Environmental Protection Order March 7, 2025, 2025 ABAER 002

PDF Version: The AER Panel Dismisses Appeal in Induced Seismicity Case But Reinforces the Case For a Regional Approach

In this decision, an appeal panel of the Alberta Energy Regulator (AER) confirmed that the Compliance Liability Management (CLM) Branch had sufficient warrant to issue a remedial Environmental Protection Order against Obsidian on the basis that CLM could reasonably form the opinion that Obsidian’s disposal activities were responsible for induced seismicity events. The decision reveals the complexity of determining cause and effect in cases such as this where there are multiple disposal injectors in the same area. As a result, the decision also supports the need for a proactive regional approach to the use of pore space for disposal (and perhaps other) purposes.

The Municipal District of Ranchland Stands Strong Against More Coal Exploration

By Nigel Bankes

On March 26, 2025

In Administrative Law, Energy

By: Nigel Bankes

Case Commented On: Ranchland (Municipal District No 66) v Alberta Energy Regulator, 2025 ABCA 105 (CanLII).

PDF Version: The Municipal District of Ranchland Stands Strong Against More Coal Exploration

The short version of this post is that Justice April Grosse of the Alberta Court of Appeal has granted the MD of Ranchland permission to appeal four questions of law relating to Minister Jean’s cancellation of the coal moratorium and subsequent, but related, decisions of the Alberta Energy Regulator (AER) to reinstate certain coal exploration permits (CEPs). Drew Yewchuk and I examined Minister Jean’s decision to cancel the moratorium here: Coal Moratoriums, They Come and Go. That post provides links to a series of ABlawg posts going back to 2020 dealing with the law and regulation of coal projects in Alberta.

What follows provides context for the decision on this permission to appeal application as well as some analysis of the decision.

Beyond the Pale: The February 2025 Updates to the Mine Financial Security Program

By Drew Yewchuk

On March 19, 2025

In Administrative Law, Natural Resources

By: Drew Yewchuk and Martin Olszynski

Documents Commented on: Mine Financial Security Program Standard [December 2025], AER Manual 024: Guide to the Mine Financial Security Program [February 25, 2025].

PDF Version: Beyond the Pale: The February 2025 Updates to the Mine Financial Security Program

AER Bulletin 2025-06 was posted on February 25, 2025, announcing an updated Manual 024: Guide to the Mine Financial Security Program (MFSP). The new Manual 024 was preceded by two rounds of updates to the MFSP Standard in October 2024 and December 2024. The MFSP Standard sets out the rules for the MFSP and is incorporated by reference into the Conservation and Reclamation Regulation, Alta Reg 115/1993 (s 16.1). The Manual is intended to assist mine owners in their understanding of its various requirements. The changes to the MFSP made by the updates to the Standard and the Manual are not entirely trivial, but they repair only the more blatant and marginal deficiencies with the MFSP; the overall financial unsoundness of the MFSP – and its counterproductive asset to liability approach in particular – has been left intact. The Guide also remains replete with out-dated references that betray a troubling lack of professionalism and due regard for the public and relevant stakeholders, including downstream Indigenous peoples.

Grading the 2023 AER Liability Management Performance Report

By Drew Yewchuk

On February 10, 2025

In Administrative Law, Energy

By: Drew Yewchuk, Shaun Fluker, and Martin Olszynski

Report Commented On: 2023 AER Liability Management Performance Report

PDF Version: Grading the 2023 AER Liability Management Performance Report

On December 5, 2024 the Alberta Energy Regulator (AER) published the 2023 Liability Management Performance Report (2023 Report). This is the second AER Liability Management Performance Report to the public on progress to reduce Alberta’s massive unfunded closure liability in the conventional (non-oil sands) oil and gas sector. We gave the 2022 Liability Management Performance Report a failing grade here because it offered little in relation to understanding whether industry performance was adequate and almost nothing at all about the AER’s performance. We note with disappointment that the AER has apparently removed the 2022 Report from its website, since historical comparison is also a method of measuring performance. The 2023 Report receives a slight improvement to a D grade because of enhanced data transparency, but the AER continues to offer little in terms of measuring effectiveness and performance in the administration of liability management.