Category: Energy Page 3 of 52

The Liabilities Go Up and the Security Stays the Same: The Oilsands Mine Financial Security Program in 2024

On October 4, 2024

By: Drew Yewchuk and Martin Olszynski

Documents Commented on: Mine Financial Security Program – Security and Liability (2024); Annual Mine Financial Security Program Submissions 2024 Submissions for 2023 Reporting Year

PDF Version: The Liabilities Go Up and the Security Stays the Same: The Oilsands Mine Financial Security Program in 2024

This is our annual update post in response to the Alberta Energy Regulator (AER) posting the annual submissions for the Mine Financial Security Program (MFSP). The MFSP is ostensibly Alberta’s system for obtaining financial security for the closure of oilsands and coal mines. See last year’s post here, and a lengthy discussion of the problems with the MFSP in our 2023 paper coauthored with Andrew Leach, “Not Fit for Purpose: Oil Sands Mines and Alberta’s Mine Financial Security Program”.

Administrative Penalties at the Alberta Energy Regulator: Regulatory Penalties for the Kearl Oilsands Leak

By Drew Yewchuk

On September 4, 2024

In Administrative Law, Energy, Oil & Gas

By: Drew Yewchuk

Decisions Commented On: AER Notice of Administrative Penalty 202408-009, AER Administrative Sanction 202408-010, and AER News Release 2024-08-22

PDF Version: Administrative Penalties at the Alberta Energy Regulator: Regulatory Penalties for the Kearl Oilsands Leak

On August 22, 2024, the Alberta Energy Regulator (AER) issued notice of administrative penalty 202408-009 (penalty decision) and administrative sanction 202408-010 (administrative sanction) (together, the ‘enforcement decisions’) imposing terms and conditions to Imperial Oil Resources Limited (Imperial Oil). The AER also issued a news release about these two enforcement actions. This post assesses the AER’s enforcement decisions and the justifications provided for them.

Taking Stock of the Grassy Mountain Litigation, Part 2, August 2024

By Nigel Bankes

On August 28, 2024

In Energy

By: Nigel Bankes

PDF Version: Taking Stock of the Grassy Mountain Litigation, Part 2, August 2024

Cases and decisions commented on: (1) AER Panel Decision on Stay Motion Filed by the Municipal District of Ranchland No. 66 (Stay Application) August 9, 2024, and (2) Municipal District of Ranchland No. 66 v Alberta Energy Regulator, 2024 ABCA 274 (CanLII) (PTA Application) August 22, 2024

This ABlawg post is an update to a post from earlier this year: “Taking Stock of The Grassy Mountain Litigation as of February 2024”. In that post, I traced the litigation commenced by Benga and its corporate successor Northback following the June 2021 report and decision of the Joint Review Panel to reject the Grassy Mountain Project exercising authority as the Alberta Energy Regulator (AER). That litigation involved cases in the Federal Court and Alberta’s Court of Appeal and Court of King’s Bench. The Alberta Court of Appeal litigation came to an end in 2022 when the Supreme Court of Canada denied a further leave to appeal. The Federal Court cases are still ongoing, as is the King’s Bench matter, as well as allied litigation brought by First Nations in both Federal Court and in King’s Bench. I refer the reader to my February 2024 post for details on these case as well as the necessary links and references.

The Alberta Energy Regulator’s Planned Timelines for Orphan, Inactive, and Decommissioned Oil and Gas Infrastructure

By Drew Yewchuk

On August 16, 2024

In Energy, Oil & Gas

By: Drew Yewchuk

Regulatory Memo Commented On: Orphan Well Association Annual Report 2023/2024 and AER Bulletin 2024-19, Industry-Wide Closure Spend Requirement for 2025

PDF Version: The Alberta Energy Regulator’s Planned Timelines for Orphan, Inactive, and Decommissioned Oil and Gas Infrastructure

In the past few weeks, the Orphan Well Association (OWA) released their 2023/2024 annual report and the Alberta Energy Regulator (AER) announced the 2025 closure spend requirement. This post assesses the OWA’s plan for the closure of the orphan inventory and the AER’s plan for closure of inactive and decommissioned infrastructure. When does the AER plan for the OWA to complete the closure of the orphan inventory and when does the AER plan for industry to finish decommissioning and reclaiming (or posting security for) Alberta’s inactive and decommissioned oil and gas infrastructure? Target closure dates can be determined by extrapolating from the current orphan fund levy and the closure spend requirement and the estimated total costs of closure.

The Premier’s Review of the AER: A Recipe for How Industry Can Have its Cake and Eat it too

By Drew Yewchuk

On May 30, 2024

In Energy

By: Drew Yewchuk, Shaun Fluker, Martin Olszynski, and Nigel Bankes

Commented on: Final report: Premier’s Review of the Alberta Energy Regulator (May 2024)

PDF Version: The Premier’s Review of the AER: A Recipe for How Industry Can Have its Cake and Eat it too

The UCP government continues to overhaul energy policy and regulation in Alberta with no meaningful opportunities for public scrutiny or input. In January 2023, Premier Danielle Smith appointed a five-person Premier’s Advisory Council on Alberta’s Energy Future (Energy Future Council) to prepare a report on Alberta’s energy future. The terms of reference for this Energy Future Council were set by Ministerial Order 02/2023, which was only released to the public in response to a FOIP request (see When Does a Ministerial Order Have to be Published?). The Energy Future Council submitted its report to the Premier in June 2023, but that report has never been made public. In response to this non-published report, the Minister of Energy and Minerals initiated another panel, similarly closed to public input, to review and report on the Alberta Energy Regulator (AER). On May 22, 2024, the Government of Alberta elected to release this second report (the AER Report) under the names of two of the five members of the Energy Future Council, David Yager and Bob Curran. As was the case with the recission of the 1976 Coal Policy, the AER Report demonstrates that the UCP government takes its instructions on the direction of energy policy primarily from industry, rather than from the public it serves.