Category Archives: Natural Resources

Taking Stock of The Grassy Mountain Litigation as of February 2024

By: Nigel Bankes

Cases commented on: (1) Benga Mining Limited v Alberta Energy Regulator, 2022 ABCA 30 (CanLII), (January 8, 2022); (2) Benga Mining Limited v Alberta Energy Regulator, et al, 2022 CanLII 88683 (SCC), (September 29, 2022); (3) Stoney Nakoda Nations v His Majesty the King In Right of Alberta As Represented by the Minister of Aboriginal Relations (Aboriginal Consultation Office), 2023 ABKB 700 (CanLII), (December 4, 2023); and (4) Benga Mining Limited v Canada (Environment and Climate Change), 2024 FC 231 (CanLII), (February 12, 2024).

PDF Version: Taking Stock of The Grassy Mountain Litigation as of February 2024

This post is a public service announcement to update all of those concerned about coal mining in Alberta, and specifically for those concerned about the status of the rejected Grassy Mountain coal project and ongoing litigation concerning that project. This is old territory for ABlawg. Readers will recall that we launched an extended coal law and policy series in 2021 when the Minister of Energy first revoked the Lougheed coal development policy of 1976. 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 →

Worrying About Reclamation and Abandonment Obligations in the Context of Property Assignment Consents

By: Nigel Bankes and Drew Yewchuk

Case commented on: Canadian Natural Resources Limited v Harvest Operations Corp, 2023 ABKB 62 (CanLII)

PDF Version: Worrying About Reclamation and Abandonment Obligations in the Context of Property Assignment Consents

This decision is principally about when a court can or should grant partial summary judgment. For that reason alone, we anticipate that it will be appealed. But the underlying concern that led to this litigation was (and still is) the decision of Canadian Natural Resources Limited (CNRL) to contest assignments pursuant to a purchase and sale agreement (PSA) between Harvest Operations as the vendor and Spoke Resources as the purchaser. CNRL and Harvest were parties to some 170 agreements affected by the PSA, including 133 land agreements, 30 facility agreements, and 7 service agreements. Continue reading →

The AER Quietly Implemented a Two-Tier Mandatory Closure Spend Target

By: Drew Yewchuk

Regulatory Change Commented On: The AER’s Inventory Reduction Program

 PDF Version: The AER Quietly Implemented a Two-Tier Mandatory Closure Spend Target

Starting in mid-2021, the Alberta Energy Regulator (AER) adopted a new liability management framework to address the problems of inactive conventional oil and gas assets. The new liability management framework includes mandatory closure spend targets, a requirement for companies to spend a certain amount on closure work each year. The mandatory closure spend targets deal with the liabilities of inactive assets and not orphan assets (it is not to be confused with the orphan fund levy, used to fund the Orphan Well Association that abandons and remediates wells with owners that went bankrupt). Continue reading →