Category: Land Use Page 1 of 3

Case Commented On: APL Oil & Gas (1998) Ltd v Alberta, 2025 ABKB 201 (CanLII)

PDF Version: An Important Alberta Crown Lease Continuation Decision

In the natural resources sector, as in so many other industrial sectors that require major capital investments in physical assets, security of tenure for those engaging in exploration activities (resource lessees) is foundational. And a crucial part of security of tenure for a resource lessee is the expectation that, if they make a discovery, they will be able to hold on to that discovery at least until they have recovered all their investment including a return on risk capital, or better yet, until the discovery has been fully exploited and is no longer profitable to produce. On the other hand, the resource owner (whether private or public (Crown)) wants to ensure diligent exploration and development by the resource operator/lessee, failing which the property should be returned to the owner so as to allow the owner to explore other potential lessees.

How Land Use Issues Factor into Alberta Utilities Commission Reviews of Renewable Energy Power Plants

By Michael Wenig

On December 1, 2023

In Energy, Land Use

By: Michael Wenig

Matter Commented On: Land use issues in the AUC’s “Inquiry into the ongoing economic, orderly and efficient development of electricity generation in Alberta – Module A”

PDF Version: How Land Use Issues Factor into Alberta Utilities Commission Reviews of Renewable Energy Power Plants

This post calls attention to a Briefing Note I recently wrote, on how the Alberta Utilities Commission (“the Commission”) considers land use issues when deciding whether to approve renewable energy power plants. The Commission is considering these land use issues as part of its current inquiry into the “ongoing economic, orderly and efficient development of electricity generation in Alberta.”

The AER Does Not Have the Jurisdiction to Consider New Coal Applications for the Grassy Mountain Coal Deposit

By Nigel Bankes

On October 13, 2023

In Energy, Environmental, Land Use

By: Nigel Bankes

Matter commented on: Applications by Northback Holdings Corporation for a Coal Exploration Program on the Grassy Mountain Coal Deposit, including Application Number 1948547, Deep Drilling Permit

PDF Version: The AER Does Not Have the Jurisdiction to Consider New Coal Applications for the Grassy Mountain Coal Deposit

On September 5, 2023, Northback Holdings Corporation filed an application with the Alberta Energy Regulator (AER) for a Deep Drilling Permit in support of a coal exploration program on the Grassy Mountain coal deposit. This deposit is located north of Blairmore, Alberta on a combination of Crown coal lands and Northback’s privately owned land. Northback proposes to commence its exploration program as soon as possible. Northback’s applications have triggered an outpouring of opposition from the coalition of interests that fought the original Grassy Mountain coal project: see here (CPAWS) and here (Corb Lund). There has also been considerable media coverage of this latest development: see here (Bob Weber) and here (Andrew Nikiforuk). My purpose in writing this post is to make the case that (1) Northback was not entitled to make these applications to the AER, and (2) the AER has no business considering the merits of these applications because Northback’s new applications are subject to the general “no new coal rule” contained in a 2022 Ministerial Order directed at the AER (details below). Others have also made this case, including Canadian Parks and Wilderness Society (Southern Alberta Chapter) (CPAWS-SAB) and the Timberwolf Wilderness Society, but it still seems useful to summarize the arguments.

The Crown Pore Space Lease and Pore Space Unit Agreement

By Nigel Bankes

On September 27, 2023

In Carbon Capture and Storage, Energy, Land Use, Oil & Gas

By: Nigel Bankes

Documents commented on: The Crown Pore Space Lease and Pore Space Unit Agreement

PDF Version: The Crown Pore Space Lease and Pore Space Unit Agreement

As I discussed in my last ABlawg post the Government of Alberta (GoA) recently announced the adoption of the Small-Scale and Remote (SSR) Carbon Sequestration Tenure. As part of this announcement, the GoA also released a standard form pore space lease (PSL) and a model Pore Space Unit Agreement (PSUA). This is my attempt to unpack these two agreements and to offer what I hope will be understood as constructive comments on these documents.

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

By Nigel Bankes

On August 28, 2023

In Energy, Land Use, Property

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: