Category: Energy Page 8 of 50

By: Nigel Bankes

PDF Version: Do We Need a Forum Within Which to Discuss Issues of Electricity Law and Policy in Alberta?

I am not a technical electricity expert and I do not have day-to-day access to technical experts, but I have been following some of the law and policy issues in the electricity sector in Alberta over the last decade or so. I am concerned that we don’t have a suitable forum within which to publicly discuss and develop electricity law and policy for an increasingly decentralized electricity system that continues to decarbonize and has access to a greater diversity of generation. On top of this is the emerging policy of the “electrification of everything”. There is massive complexity here, but the public deserves to be involved in a discussion of the relevant issues.

Total Claims that its ROFR Rights Were Violated in the Sale of Teck’s Interest in the Fort Hills Project

By Nigel Bankes

On February 13, 2023

In Contracts, Energy

By: Nigel Bankes

Case commented on: TotalEnergies EP Canada Ltd v Suncor Energy Inc, 2023 ABKB 59 (CanLII).

PDF Version: Total Claims that its ROFR Rights Were Violated in the Sale of Teck’s Interest in the Fort Hills Project

Suncor, Total, and Teck all owned interests in the Fort Hills Oilsands Project (54%, 24.4%, and 21.5%, respectively). Teck agreed to sell its interest in the project to Suncor. The sale triggered a right of first refusal (ROFR) in the relevant agreement. The sale included some of Teck’s other assets (the other assets) but the sale was also subject to a condition precedent that required Teck to vote in favour of a proposed operating budget for the Project (the budget approval covenant). Suncor’s proposed operating budget had been hotly contested among the three partners for a number of years. Total and Teck had repeatedly voted against Suncor’s budget proposals, with the result that those budgets were not approved and operations had to revert to the last approved budget of 2021.

Just Transition Friction Needs Interest-Based Negotiation

By David V Wright

On January 25, 2023

In Energy, Legal Education, Negotiation

By: David V. Wright

Matter Commented On: Proposed federal just transition legislation

PDF Version: Just Transition Friction Needs Interest-Based Negotiation

For three weeks every January, I teach the University of Calgary Faculty of Law intensive block course on negotiations. This is a mandatory course for all second-year law students, and it’s a key part of the Calgary Curriculum. Each year I look for contemporary topics and events to use as examples that bring to life the approaches and concepts that we cover in the course. Like any good negotiations course, a core part of the curriculum is focused on interest-based negotiations, the approach long advocated by dispute resolution and negotiation experts around the world. This feeds one of the course’s key learning points: begin negotiations with an interest-based approach and then shift to more competitive, distributive stances later in the process if necessary. An obvious example for this year is the current friction between the federal government and the Alberta government with respect to a proposed federal just transition initiative. This short post examines what is painfully obvious and disconcerting in the present context: both levels of government contributing to this current tension are flouting even the most basic best practises in negotiations. They are adopting positional bargaining instead of an interest-based, problem-solving approach. While Alberta has been particularly aggressive, showing signs that it is more interested in short-term political gains than constructive resolution, no one is doing it right.

Well Abandonment and Reclamation in Ontario

By Nigel Bankes

On December 19, 2022

In Energy, Oil & Gas

By: Nigel Bankes

Decisions Commented On: Bilodeau v Her Majesty The Queen in the Right of Ontario, 2022 ONSC 1742 (CanLII) and 2022 ONSC 4275 (Costs Endorsement).

PDF Version: Well Abandonment and Reclamation in Ontario

Over the years ABlawg has published numerous comments on the law pertaining to reclamation and abandonment obligations and the associated orphan well fund in Alberta. See, for example, Drew Yewchuk’s many excellent posts on these issues. This comment deals with a recent decision in Ontario which, while in itself a successful enforcement action, does highlight deficiencies in the law and practice pertaining to the abandonment and reclamation of old oil and gas wells in that province.

The Rhetoric of Property and Immunity in the Majority Opinion in the Impact Assessment Reference

By Nigel Bankes

On June 8, 2022

In Constitutional, Energy, Natural Resources, Property

By: Nigel Bankes & Andrew Leach

Opinion Commented On: Reference re Impact Assessment Act, 2022 ABCA 165 (CanLII).

PDF Version: The Rhetoric of Property and Immunity in the Majority Opinion in the Impact Assessment Reference

The Alberta Court of Appeal recently released its opinion in Reference re Impact Assessment Act, 2022 ABCA 165 (CanLII). A majority of the Court found the Impact Assessment Act, SC 2019, c. 28, s 1 [IAA] to be unconstitutional. Our colleague Martin Olszynski has already summarized the majority’s approach and some of the doctrinal difficulties therein.

In this post, we consider in more detail the majority’s lengthy discussion of the historical evolution of the resource rights of the prairie provinces from the creation of Alberta and Saskatchewan as provinces in 1905, through to the Natural Resources Transfer Agreements (NRTAs) of 1930, culminating with the adoption of s 92A (the Resources Amendment) in 1982.