Category Archives: Energy

Sometimes it is Completely Irrelevant Whether or not a Royalty Interest Amounts to an Interest in Land

By: Nigel Bankes

Case commented on: Enerplus Corporation v Harvest Operations Corp, 2021 ABQB 634 (CanLII), appeal dismissed, 2023 ABKB 482 (CanLII)

PDF Version: Sometimes it is Completely Irrelevant Whether or not a Royalty Interest Amounts to an Interest in Land

Harvest (70%), Orlen (15%), and Petrus (15%) are the working interest owners of certain oil and gas properties. Under the terms of a farmout agreement (in the form of the 1997 Farmout and Royalty Procedure of the Canadian Association of Petroleum Landmen (CAPL)), back in the chain of title, Enerplus holds a gross overriding royalty interest (GORR) in the 70% interest currently held by Harvest. The terms of the GORR provided that: Continue reading →

An Incredibly Ill-Advised and Unnecessary Decision

By: Nigel Bankes and Martin Olszynski

Decision Commented On: Generation Approvals Pause Regulation, OiC 172/2023, August 2, 2023

PDF Version: An Incredibly Ill-Advised and Unnecessary Decision

On August 3, 2023 the Government of Alberta announced that the Alberta Utilities Commission (AUC) will pause approvals of new renewable electricity generation projects over one megawatt until February 29, 2024. As further set out below, this “pause” is entirely unnecessary to achieve the government’s stated goals; it is also astoundingly hypocritical and undermines confidence in the stability of Alberta’s regulatory framework insofar as it singles out renewable energy projects for special treatment. Continue reading →

Orphan Well Association Annual Report 2022/2023

By: Drew Yewchuk

Annual Report Commented On: Orphan Well Association, Annual Report 2022/23

 PDF Version: Orphan Well Association Annual Report 2022/2023

The 2022/2023 Orphan Well Association (OWA) annual report was posted to the OWA website on July 7, 2023. OWA annual reports provide insight into Alberta’s orphan oil and gas asset situation and the pace at which the problem is being addressed. This post summarizes the report and discusses the implications of the information for Alberta’s oil and gas liability problem. Continue reading →

Duty to Consult, Honour of the Crown, Project Assessment, and Land-Use Planning in a Modern Treaty Context: More Clarity from the Supreme Court of the Yukon

By: David Wright

Matter Commented On: First Nation of Na-Cho Nyäk Dun v Yukon (Government of), 2023 YKSC 5 (CanLII) (Metallic Minerals)

PDF Version: Duty to Consult, Honour of the Crown, Project Assessment, and Land-Use Planning in a Modern Treaty Context: More Clarity from the Supreme Court of the Yukon

The duty to consult and accommodate is now a mature area of jurisprudence, including case law that is “replete with indicia” (Coldwater First Nation v Canada (Attorney General), 2020 FCA 34 (CanLII) at para 41) of what constitutes meaningful consultation. One area that continues to evolve, however, is Crown consultation obligations and the honour of the Crown in modern treaty contexts. The landmark Supreme Court of Canada cases of Beckman v Little Salmon/Carmacks First Nation (2010 SCC 53 (CanLII)) and First Nation of Na-Cho Nyäk Dun v Yukon (2017 SCC 58 (CanLII)), both originating from lower courts in the Yukon, set out the contours of this legal landscape, but some uncertainty remains. In First Nation of Na-Cho Nyäk Dun v Yukon (Government of), 2023 YKSC 5 (CanLII) (Metallic Minerals), the Supreme Court of Yukon (YKSC) provides helpful judicial interpretation and observations in this area. In particular, Chief Justice Suzanne M. Duncan clarifies the law with respect to the Honour of the Crown and the duty to consult and accommodate in context of project-level assessment and land-use planning in the Yukon. This short post provides an overview of the case, as well as brief commentary regarding key points. Continue reading →

Administrative Penalties at the Alberta Energy Regulator: A Gentle Slap on the Wrist for Ovintiv

By: Drew Yewchuk

Decision Commented On: AER Administrative Penalty 202304-03, Ovintiv Canada ULC

PDF Version: Administrative Penalties at the Alberta Energy Regulator: A Gentle Slap on the Wrist for Ovintiv

I recently turned my mind to the subject of how the Alberta Energy Regulator (AER) makes decisions on financial penalties to companies that contravene the conditions of their project approvals. This post is the first in what may become a series of blogs on the question. Continue reading →