Category: Energy Page 26 of 55

AER Commissioners Grant Summary Dismissal of Applications for Common Carrier and Rateable Take Orders

Decisions Commented On: (1) 2020 ABAER 002, Bearspaw Petroleum Ltd. Common Carrier and Rateable Take Order Applications, Applications 1877294 and 1878333, and (2) Re: Proceeding 360 Harvest Operations Ltd., Decision on Motion to Dismiss, Bearspaw Petroleum Ltd. Applications 1877294 and 1878333, January 24, 2020

In January 2017 Bearspaw filed applications with the Alberta Energy Regulator (AER) seeking common carrier and rateable take orders against Harvest Operations Ltd with respect to gas produced from the Crossfield Basal Quartz C Pool (BQC pool). The matter was originally set down for hearing in September 2018 but was adjourned pending other legal proceedings in which Bearspaw had to establish its rights to produce from its 02/11 well in the BQC pool (so far as I am aware those proceedings are not reported). The current hearing was scheduled to begin January 13, 2020, but on November 14, 2019 Harvest filed a motion asking the AER to dismiss Bearspaw’s applications or adjourn the proceedings. On January 24, 2020 the Commission hearing panel chaired by Cecilia Low granted Harvest’s motion and dismissed the applications. On January 30, 2020 the Commissioners issued a decision cancelling the scheduled hearing; the cancellation decision contains a hyperlink to the Commissioners’ decision on the motion.

Clearing the Air on Teck Frontier (Extended ABlawg Edition)

By Andrew Leach

On February 13, 2020

In Energy, Environmental, Oil & Gas

By: Andrew Leach and Martin Olszynski

PDF Version: Clearing the Air on Teck Frontier (Extended ABlawg Edition)

Decision Commented On: Teck Resources Limited, Frontier Oil Sands Mine Project, Fort McMurray Area, 2019 ABAER 008/CEAA Reference No. 65505

A lot of ink is currently being spilled over the federal government’s upcoming decision to approve – or not – Teck Resources’ Frontier oil sands mine project. Premier Jason Kenney and members of his Cabinet insist that the Frontier project is critical to Alberta’s economic prosperity. The Mining Association of Canada’s Pierre Graton stresses that Teck completed a “world-class, independent and rigorous assessment” and that the project was determined to be in the public interest by the joint review panel (JRP) that reviewed it. Environmental groups argue that approval is fundamentally inconsistent with Canada’s climate change commitments. The project is being framed as both a test of Prime Minister Trudeau’s resolve to combat climate change and a referendum on the federal government’s support for Alberta’s economic interests and its commitment to national unity.

Our purpose here is not to take sides but rather to lay out the facts and relevant legal context as clearly as possible so that Albertans and indeed all Canadians can come to their own informed views about the desirability, or not, of this project and what, if any, larger importance to attach to the federal Cabinet’s eventual decision.

Public Inquiry Into Anti-Alberta Energy Campaigns: Interim Report

By Nigel Bankes

On February 4, 2020

In Energy

By: Nigel Bankes

PDF Version: Public Inquiry Into Anti-Alberta Energy Campaigns: Interim Report

Matter Commented On: Allan Inquiry Interim Report, January 31, 2020

ABlawg has published a number of posts on the Allan Inquiry: The Alberta Inquiry and Freedom of Expression; Everything You Wish You Didn’t Need to Know About the Alberta Inquiry into Anti-Alberta Energy Campaigns; and Procedural Fairness and the Alberta Inquiry into Anti-Alberta Energy Campaigns.

Mr. Allan has now delivered his interim report to Minister Savage as required by his terms of reference (ToR). According to the ToR the interim report is to deal with “advice, proposals, recommendations, analyses or policy options related to the Inquiry …”.

An Emerging Corporate Risk – Climate Impacts to Critical Energy Infrastructure

By Rudiger Tscherning

On January 31, 2020

In Climate Change, Energy

By: Rudiger Tscherning

PDF Version: An Emerging Corporate Risk – Climate Impacts to Critical Energy Infrastructure

Research Commented On: “Corporate Risk and Climate Impacts to Critical Energy Infrastructure in Canada” (Dalhousie Law Journal)

Introduction

This post, based on my recent article, examines climate impacts to critical energy infrastructure assets from a corporate risk perspective. It focuses on the importance of undertaking climate adaptation to critical energy infrastructure as a corporate risk-mitigation strategy. Emerging climate risk was most recently identified as one of the top five challenges facing the global economy at the World Economic Forum 2020 in Davos, Switzerland (see World Economic Forum Global Risks Report 2020).

By way of background, Canada’s 2009 National Strategy for Critical Infrastructure considers infrastructure as critical where the asset is essential to the “health, safety, security or economic well-being of Canadians.” Examples in the energy sector include electricity generation and transmission infrastructure, oil and gas industry infrastructure, maritime ports, and rail infrastructure related to energy transportation. All of these classes of assets are vulnerable to the anticipated and unanticipated effects of climate change impacts from extreme weather and climate events, which are predicted to intensify. These impacts may affect both the physical infrastructure of the asset and their operations, as well as the business continuity of the owners and operators of the asset. Within this context, adaptation to the effects of climate change can be considered a process of adjustments in natural and human systems to actual or expected climate impacts and their effects (see, for example, Article 7 of the Paris Agreement, 12 December 2015, FCCC/CP/2015/L.9/Rev.1).

AUC Announces a Second Round of Consultations on Self-Supply and Export

By Nigel Bankes

On January 15, 2020

In Energy

By: Nigel Bankes

PDF Version: AUC Announces a Second Round of Consultations on Self-Supply and Export

Matters Commented On: AUC Bulletin 2020-01, Exploring market concerns and tariff issues related to self-supply and export reform, January 9, 2020; and AUC Decision 24979-D01-2020, International Paper Canada Pulp Holdings ULC, Industrial System Designation and Permanent Connection Order for the Grande Prairie Pulp Mill Complex, January 10, 2020.

The Electric Utilities Act, SA 2003, c E-5.1, (EUA; and regulations) and the Hydro and Electric Energy Act, RSA 2000, c H-16, (HEEA) oblige generators in Alberta to offer their generation to the power pool and to exchange energy through the pool. There are a number of exceptions to these requirements but in a series of decisions during 2019 the AUC concluded that these exceptions are narrowly framed. These decisions are EPCOR Water Services Inc., EL Smith Solar Power Plant, February 20, 2019, Decision 23418-D01-2019; AUC Decision 23756-DOI-2019, Advantage Oil and Gas Ltd. Glacier Power Plant Alteration, April 26, 2019; AUC Decision 24393-D01-2019, International Paper Canada Pulp Holdings ULC Request for Permanent Connection for 48-Megawatt Power Plant, June 6, 2019; and AUC Decision 24126-D01-2019, Keyera Energy Ltd, Cynthia Gas Plant Power Plant Application, June 25, 2019. I commented on those decisions in Opening a Can of Worms and here and here.