Category: Energy Page 3 of 50

Premier Smith Converts a Legal Pause on Renewable Energy Projects Into a De Facto Moratorium of Uncertain Duration

On March 1, 2024

By: Nigel Bankes and Martin Olszynski

Matter Commented On: Policy Guidance to the Alberta Utilities Commission, February 28, 2024

PDF Version: Premier Smith Converts a Legal Pause on Renewable Energy Projects Into a De Facto Moratorium of Uncertain Duration

In August 2023, the Government of Alberta (GoA) stunned most commentators and the renewable energy sector in Alberta by announcing that it would be instructing the Alberta Utilities Commission (AUC) to withhold approval of all new renewable energy projects in the province for seven months. We commented on that announcement here: “An Incredibly Ill-Advised and Unnecessary Decision”.

Taking Stock of The Grassy Mountain Litigation as of February 2024

By Nigel Bankes

On February 22, 2024

In Administrative Law, Energy, Natural Resources

By: Nigel Bankes

Cases commented on: (1) Benga Mining Limited v Alberta Energy Regulator, 2022 ABCA 30 (CanLII), (January 8, 2022); (2) Benga Mining Limited v Alberta Energy Regulator, et al, 2022 CanLII 88683 (SCC), (September 29, 2022); (3) Stoney Nakoda Nations v His Majesty the King In Right of Alberta As Represented by the Minister of Aboriginal Relations (Aboriginal Consultation Office), 2023 ABKB 700 (CanLII), (December 4, 2023); and (4) Benga Mining Limited v Canada (Environment and Climate Change), 2024 FC 231 (CanLII), (February 12, 2024).

PDF Version: Taking Stock of The Grassy Mountain Litigation as of February 2024

This post is a public service announcement to update all of those concerned about coal mining in Alberta, and specifically for those concerned about the status of the rejected Grassy Mountain coal project and ongoing litigation concerning that project. This is old territory for ABlawg. Readers will recall that we launched an extended coal law and policy series in 2021 when the Minister of Energy first revoked the Lougheed coal development policy of 1976.

Inextricably Linked: Climate Policy and the Oil and Gas Sector’s Closure Liabilities

By Martin Olszynski

On February 21, 2024

In Energy, Environmental, Oil & Gas

By: Martin Olszynski

Matter Commented On: Study on Emerging Issues Related to the Senate Standing Committee on Energy, Environment and Natural Resources’ Mandate: Climate Change – Canadian Oil & Gas Industry

PDF Version: Inextricably Linked: Climate Policy and the Oil and Gas Sector’s Closure Liabilities

On February 15, 2024, I appeared before the Senate Standing Committee on Energy, Environment and Natural Resources’ (ENEV) in the context of its study into emerging issues related to its mandate. As has been my practice in the past (see here and here), what follows are my prepared remarks, modified only for formatting purposes and to include hyperlinks to supporting resources where relevant. A recording of the hearing is available here; a hearing transcript should also be available upon translation.

Utility Law Meets Net Zero

By Nigel Bankes

On February 9, 2024

In Energy

By: Nigel Bankes

Decisions Commented on: Ontario Energy Board, “Decision and Order, EB-2022-0200, Enbridge Gas Inc, Application for 2024 Rates – Phase 1”, December 21, 2023 [Enbridge Decision]; British Columbia Utilities Commission, “FortisBC Energy Inc. Application for Certificate of Public Convenience and Necessity for the Okanagan Capacity Upgrade Project”, Decision and Order G-361-23, December 22, 2023 [Fortis Decision].

PDF Version: Utility Law Meets Net Zero

Utility connections for gas, electricity, and water tend to be long-lived, capital-intensive projects that typically depreciate over the expected life of the asset. At the same time, depreciation rates should also reflect the risk that an asset may be abandoned or cease to be “used and useful” before the end of its physical life. To give an easy (non-climate) example, suppose that a mine seeks an electrical utility connection. The dedicated distribution line that the mine requires might be expected to have a useful life of 40 years, but the mine itself only has proven reserves for a twenty-year life. If the local utility provides service, it will seek approval to depreciate that line over a maximum of a 20-year period. If it were to use a 40-year period and the mine shut down as expected when the ore body was exhausted after 20 years, the utility would have a stranded asset; that is to say it would have an asset that had lost its utility before the end of its physical life and for which the utility could not obtain a return of the undepreciated cost of the asset (50%).

Grading the AER Liability Management Performance Report

By Shaun Fluker

On February 8, 2024

In Energy, Oil & Gas

By: Shaun Fluker, Drew Yewchuk, and Martin Olszynski

Report Commented On: Liability Management Performance Report

PDF Version: Grading the AER Liability Management Performance Report

On January 17, 2024 the Alberta Energy Regulator (AER) published a Liability Management Performance Report. This is the first published AER report to the public on progress being made by industry under the Liability Management Framework to reduce Alberta’s massive unfunded closure liability in the conventional (non-oil sands) oil and gas sector. The last comparable report from the AER on liability management was from September 2005. Somewhat predictably, in its news release, the AER reflected positively on industry’s performance and indicated that this will be an annual report with the objective of “. . . improving transparency of industry’s management of conventional oil and gas liabilities as well as to develop performance measure baselines and ongoing assessments of the industry as a whole and licensees specifically.” The response elsewhere was less enthusiastic. Some, like the Rural Municipalities of Alberta, reserved judgment pending further analysis; while others more critically noted that the Report curiously understates the overall liability amount, using a liability calculation method from 2015 that subsequent analysis by the AER revealed to be a vast under-estimation. The Report provides some aggregated data and licensee-specific information and accordingly gets partial marks for some transparency, but it absolutely fails to give the public adequate context to fully understand whether this should be read as good or poor performance by industry and says almost nothing at all about the AER’s performance. Secrecy and capture continue to govern liability management in Alberta.