Category Archives: Energy

Shell Jackpine Mine Expansion Project: The Mysterious Case of the Missing Justification

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Document commented on: Decision Statement Issued under Section 54 of the Canadian Environmental Assessment Act, 2012 re: Shell Jackpine Mine Expansion Project (2013 ABAER 011/Decision 2013-011)

Last Friday (December 6, 2013), the federal Minister of the Environment, Leona Aglukkaq, released the long-awaited decision statement for Shell’s Jackpine Mine Expansion project. As I wrote here, the joint review panel concluded – for the first time in the oil sands context – that the project was likely to result in numerous significant adverse environmental effects. This conclusion triggered the application of subsection 52(2) of the Canadian Environmental Assessment Act, 2012, SC 2012, c 19 (CEAA, 2012), pursuant to which the Governor in Council (GiC) must determine whether the project is nevertheless “justified in the circumstances.” This the GiC did. Or at least, we are told that it did.

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Amended Rules of Practice for the Alberta Energy Regulator: More Bad News for Landowners and Environmental Groups

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Legislation commented on: Alberta Energy Regulator Rules of Practice as amended by Alta Reg 203/2013

In the Fall of 2012 ABlawg published a series of entries concerning the enactment of the Responsible Energy Development Act, SA 2012, c R-17.3 (REDA) and the transition to a single regulator for energy projects in Alberta. That transition is now underway. The Alberta Energy Regulator is responsible for the approval and ongoing oversight of energy projects – and will soon be responsible for all energy project approvals and oversight other than the disposition of mineral rights by Alberta Energy.

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The Continuing Fall-out from Stores Block: Guidance from the Alberta Utilities Commission on Utility Asset Disposition

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Decision commented on: Alberta Utilities Commission, Utility Asset Disposition, Decision 2013-417, November 26, 2013

In ATCO Gas & Pipelines Ltd. v Alberta (Energy and Utilities Board), 2006 SCC 4 (Stores Block), a majority decision of the Supreme Court of Canada (per Justice Bastarache), the Court concluded that the customers of a regulated utility had no property interest in the assets of a utility company that were included in the rate base. Accordingly, when a utility sought the approval of the Energy and Utilities Board (EUB) (now the Alberta Utilities Commission (AUC or Commission)) for the disposition of a rate base asset outside the ordinary course of business, the EUB/AUC had no jurisdiction to require the utility, as a condition of the approval of the disposition, to allocate to the customers of the utility any share of the net proceeds of disposition beyond the depreciated book value of the asset in the utility’s accounts. In so ruling the Supreme Court of Canada reversed the long-standing practice of the EUB and its predecessors in sharing such gains between shareholders and customers. That long-standing practice is recounted in this decision at paras 19 – 32.

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Shell Jackpine JRP Report: Would the Real “Adaptive Management” Please Stand Up?

PDF version: Shell Jackpine JRP Report: Would the Real “Adaptive Management” Please Stand Up?

Decision commented on: Shell Canada Energy, Jackpine Mine Expansion Project, Application to Amend Approval 9756, 2013 ABAER 011/Decision 2013-011 (CEAA, 2012).

On July 9, 2013, the Joint Review Panel (JRP) for Shell’s Jackpine Mine Expansion Project released its long-awaited report (the Jackpine Report). Shell had applied to expand its existing Jackpine Mine, located roughly 70 km north of Fort McMurray, to increase bitumen production by 15,900 m³/day and bring total production to 47,700 m³/day. As further discussed below, the JRP concluded that the project, though likely to result in significant adverse environmental effects on several fronts, is nevertheless in the public interest.

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Burnaby Refinery not a Priority Destination under Pipeline Tariff

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Case commented on: Chevron Canada Limited Priority Destination Designation Application (15 July 2013) MH-002-2012 (NEB).

Most shippers on the Trans Mountain Pipeline will no doubt be pleased with the recent decision of the National Energy Board (NEB) denying a Priority Destination Designation for Chevron’s Burnaby Refinery. Chevron applied for an order designating Chevron’s Burnaby Refinery as a Priority Destination pursuant to section 1.58 of the Tariff of Trans Mountain Pipeline ULC. The Burnaby Refinery serves a key function as it refines Alberta crude oil into gasoline for the Lower Mainland of BC.

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