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Category: Oil & Gas Page 1 of 56

AlphaBow Again Challenges AER Enforcement Related to Oil and Gas Closure Liabilities During Insolvency 

By: Drew Yewchuk

Decisions Commented On: Re AlphaBow Energy Ltd., 2025 ABKB 622 (CanLII) (AlphaBow ABKB); Re AlphaBow Energy Ltd., 2026 ABCA 35 (CanLII) (AlphaBow ABCA)

PDF Version: AlphaBow Again Challenges AER Enforcement Related to Oil and Gas Closure Liabilities During Insolvency

This post comments on two decisions relating to the ongoing insolvency process of AlphaBow Energy Ltd. (AlphaBow). AlphaBow brought challenges to the power of the Alberta Energy Regulator (AER) to require security deposits as a condition for transferring oil and gas licences from AlphaBow’s inventory. AlphaBow was unsuccessful at King’s Bench and then failed to get leave to appeal from the Court of Appeal.

This post provides some background to AlphaBow’s insolvency, summarizes the two decisions, and concludes with commentary on what AlphaBow’s ongoing insolvency process shows about oil and gas closure liability management and insolvency in Alberta. 

The Mess We’re In: Insights from the 1st International Colloquium on Closure Liabilities in the Energy Sector

By: Kaitlin Schaaf, Kathy Cao, Jessica Farrell, Andrew Simmons, Emilia Yassiri, and Martin Olszynski

Matter Commented On: 1st International Colloquium on Closure Liabilities in the Energy Sector

PDF Version: The Mess We’re In: Insights from the 1st International Colloquium on Closure Liabilities in the Energy Sector

The 1st International Colloquium on Closure Liabilities in the Energy Sector was a recent three-day event organized by Professor Martin Olszynski, the current Chair in Energy, Resources and Sustainability, and hosted by the University of Calgary Faculty of Law with the support of the Public Interest Law Clinic (PILC) and the Canadian Institute for Resources Law (CIRL). From October 3 – October 5, 2025, the event brought together scholars and practitioners from Canada, the United States, Australia, and the United Kingdom to address the challenges associated with environmental liabilities in the energy sector.

A Review of Closure Nomination for Inactive Oil and Gas Sites and AER Updates to Directive 088 

By: Drew Yewchuk & Shaun Fluker 

Regulatory Bulletin Commented On: Alberta Energy Regulator, Bulletin 2025-32, Invitation for Feedback on Proposed Revisions to Closure Nomination Requirements in Directive 088 

PDF Version: A Review of Closure Nomination for Inactive Oil and Gas Sites and AER Updates to Directive 088 

The Alberta Energy Regulator (AER) is taking comments on some proposed changes to the process for nominating oil and gas sites (facilities and wells) for closure work. The comment period is open until November 12, 2025. The AER’s closure nomination system has been in place since April 2023, and one of us commented on its commencement in Updates to the Oil and Gas Liability Management Framework: The New Closure Nomination and The Renamed Closure Quotas. The proposed changes adjust the timelines for the closure nomination. In particular, they shorten the timeline for nominated sites that had already been decommissioned to complete a phase 1 environmental site assessment from three years to one year, and they extend all closure nomination timelines to the end of the quarter-year. This post reviews the public information on the closure nomination process so far, discusses the AER’s proposed changes, and assesses the effectiveness of the closure nomination process so far.  

Unlawful Production and Restitutionary Damages

By: Nigel Bankes

Case Commented On: Signalta Resources Limited v Canadian Natural Resources Limited, 2025 ABCA 306 (CanLII) and Signalta Resources Limited v Canadian Natural Resources Limited, 2023 ABKB 108 (CanLII).

PDF Version: Unlawful Production and Restitutionary Damages

There are two principal substantive issues in this important unanimous decision of the Alberta Court of Appeal (referred to as ABCA decision). The first issue relates to the rules pertaining to the right of a Crown oil sands lessee (Canadian Natural Resources Limited (CNRL)) to produce gas cap (or non-solution) gas in the course of producing oil sands (or bitumen) when the Crown has leased the natural gas rights in the same location (and indeed the same formation) to another party (Signalta). The second substantive issue relates to the legal consequences of the unlawful production of somebody else’s natural gas, specifically the assessment of damages for such unlawful production.

The 2025 Mine Financial Security Program Update: Security Collected for Aging Syncrude Mine Offers a First Estimate of Mine Closure Costs

By: Drew Yewchuk and Martin Olszynski 

Documents Commented On: Annual Mine Financial Security Program Submissions 2025 Submissions for 2024 Reporting Year; Mine Financial Security Program – Security and Liability, September 29, 2025.

PDF Version: The 2025 Mine Financial Security Program Update: Security Collected for Aging Syncrude Mine Offers a First Estimate of Mine Closure Costs

This is our annual update post in response to submissions for the Mine Financial Security Program (MFSP) being posted to the Alberta Energy Regulator (AER) website. See last year’s post here. The MFSP is Alberta’s troubled system for obtaining financial security to ensure the closure (decommissioning, remediation, and reclamation) of oilsands and coal mines when they stop operating. For a detailed assessment of the weaknesses in the MFSP, see our 2023 paper coauthored with Andrew Leach, “Not Fit for Purpose: Oil Sands Mines and Alberta’s Mine Financial Security Program”. The government conducted a review of the MFSP from 2021-2024 that concluded in February 2025 with minor changes that do not repair fundamental problems with the MFSP – see our post here.

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