By: Drew Yewchuk
PDF Version: The December 2021 Mine Financial Security Program Standard
Regulatory Document Commented On: The December 23, 2021 Mine Financial Security Program Standard
In a post back in May 2021, I mentioned a quietly made change to Alberta’s Mine Financial Security Program (MFSP), which sets out the security requirements for coal and oil sands mines in Alberta: Continue reading
By: Nigel Bankes
PDF Version: Province of Alberta Issues a Request for Full Project Proposals For Carbon Sequestration Hubs
Document Commented On: Request for Full Project Proposals For Carbon Sequestration Hubs, December 2, 2021
Following an earlier announcement (Information Letter 2021-19) in May 2021 (commented on here) and then a call for Expressions of Interest (EOI) in September (commented on here, the link to the EOI is now broken and the EOI no longer seems to be available), the province has now moved to the next stage in developing its hub-based carbon capture and storage (CCS) policy with the issuance of a “Request for Full Project Proposals For Carbon Sequestration Hubs” (RFPP). This latest RFPP indicates that Continue reading
By: David V. Wright
PDF Version: Preliminary Reflections on COP26 and the Glasgow Climate Pact, Part 1
Matter Commented On: COP26 (Twenty-sixth Conference of the Parties to the United Nations Framework Convention on Climate Change) and the Glasgow Climate Pact (Decision -/CMA.3)
This is the first of two posts that discuss several notable developments from COP26, some of which took place within the formal negotiations process (e.g. market mechanism rules, financial assistance), and some of which took place in parallel (e.g. Global Methane Pledge, US-China bilateral announcement). This post is focused on the latter parallel developments, which primarily emerged in the first week of the conference. My next post will focus on the former, which largely materialized in the second week.
Overall, the stakes were particularly high at this COP because the parties needed to reach an agreement on final elements of the rulebook containing details of how the Paris Agreement would be implemented, many parts of which will be the most important and consequential as implementation unfolds in years to come. Additionally, a number of long-standing issues remain unresolved, including with respect to long-term financial assistance for the most vulnerable countries to reduce emissions and respond to the impacts of climate change. Overall, COP26 was a key juncture for ensuring that party commitments would add up to keeping within reach the overarching goal of keeping global mean temperature rise to below 1.5 degrees. It was these high stakes that led some to characterize this COP as “now or never” and a “last-chance saloon” scenario. Continue reading
PDF Version: Alberta Court of Appeal Rules on Role of Honour of the Crown and Reconciliation in AUC Rate Applications
Case Commented On: AltaLink Management Ltd v Alberta (Utilities Commission), 2021 ABCA 342 (CanLII)
The overarching mandate of the Alberta Utilities Commission (AUC or the Commission) is to ensure just and reasonable electricity rates for consumers, and much of the work they do is geared towards deciding whether the costs that businesses involved in the electricity sector have incurred or are set to incur can be passed down to ratepayers. AltaLink Management Ltd v Alberta (Utilities Commission), 2021 ABCA 342 (CanLII), a recent decision from the Alberta Court of Appeal (ABCA) adds a new dimension to what is usually a strictly fact-based economic calculation when the applicant is an Indigenous-owned company or partnership. The Court charts new territory by making it clear that the AUC’s decisions in such cases must uphold the honour of the Crown and be made in a manner consistent with the principle of Reconciliation. Continue reading
By: Drew Yewchuk
PDF Version: Another Year Gone Under the Mine Financial Security Program
Legislation Commented On: Annual Mine Financial Security Program Submissions, 2021 Submissions for 2020 Reporting Year
In a post back in May 2021, I complained about a change to Alberta’s Mine Financial Security Program (MFSP). This is a follow-up post in response to the Alberta Energy Regulator (AER) posting the annual submissions under the program on September 30, 2021. Note that each annual submission is for the September of the previous year, so the 2021 report is relevant to the situation in September 2020.
The MFSP is Alberta’s system for ensuring that companies pay for the reclamation and remediation of their mines, both oilsands and coal (but not conventional oil and gas, which is handled by a different liability management system that also does not work properly). In short, the MFSP allows companies to use an asset safety factor against their estimated future environmental liabilities, such that if a mine’s resource assets are worth more than three times the total anticipated reclamation costs (3:1), nothing beyond an initial (and wholly inadequate) ‘base deposit’ is required, provided also that the planned reclamation is conducted as scheduled, and the mine has more than 15 years of reserves remaining. Companies may also choose to skip those calculations and pay full security based on an estimate of the total cost of clean-up. Continue reading
