Category Archives: Energy

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

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. Continue reading →

Just Transition Friction Needs Interest-Based 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. Continue reading →

Well Abandonment and Reclamation in Ontario

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. Continue reading →

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

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. Continue reading →

Carbon Tax Redux: A Majority of the Alberta Court of Appeal Opines that the Impact Assessment Act is Unconstitutional

By: Martin Olszynski

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

PDF Version: Carbon Tax Redux: A Majority of the Alberta Court of Appeal Opines that the Impact Assessment Act is Unconstitutional

On May 10, 2022, the Alberta Court of Appeal released its lengthy and long-awaited opinion in Reference re Impact Assessment Act, 2022 ABCA 165 (CanLII). A majority of the Court of Appeal (Chief Justice Fraser, Justice Watson, and Justice MacDonald) concluded that the Impact Assessment Act, SC 2019, c 28, s 1 (IAA), Part 1 of Bill C-69, was ultra vires (i.e. beyond) Parliament’s legislative authority pursuant to section 91 of the Constitution Act, 1867. Justice Strekaf concurred in the result. Justice Greckol dissented, concluding that the IAA was indeed constitutional. In my view, Justice Greckol’s dissent is both clearer and more consistent with current Canadian constitutional and environmental law doctrine. The majority’s opinion, on the other hand, is relatively difficult to follow, includes basic doctrinal errors in some parts, and ignores or strays far from precedent in others. In this and other ways, the majority’s approach is strongly reminiscent of its earlier opinion in Reference re Greenhouse Gas Pollution Pricing Act, 2020 ABCA 74 (CanLII) (GGPPA Reference ABCA) (see post here), which was overturned by the Supreme Court of Canada in References re Greenhouse Gas Pollution Pricing Act, 2021 SCC 11 (CanLII) (GGPPA References SCC) (see posts here, here, and here). The federal government has already confirmed that it will appeal the majority’s opinion to the Supreme Court, pending which the IAA regime will remain in force (reference opinions not being strictly binding the same way that judgments are). Continue reading →