Category Archives: Oil & Gas

Vesting Off Interests in Land – The Latest Dianor Decision

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Decision Commented On: Third Eye Capital Corporation v Ressources Dianor Inc./Dianor Resources Inc., 2019 ONCA 508 (CanLII)

The Ontario Court of Appeal has released its much anticipated second decision in Third Eye Capital Corporation v Ressources Dianor Inc./Dianor Resources Inc.(Dianor2019). The issue squarely before the Court in this case was whether a vesting order granted in a receivership proceeding could extinguish a third party’s interest in land in the nature of a gross overriding royalty (GOR). The Court concluded that it had the jurisdiction to do so. This appears to be the first case in Canada to reach this conclusion in the context of a GOR. Continue reading →

Another Interconnection Application Crashes Out

By: Nigel Bankes

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Decision Commented On: AUC Decision 24126-D01-2019, Keyera Energy Ltd, Cynthia Gas Plant Power Plant Application, June 25, 2019

In its Smith decision earlier this year, the Alberta Utilities Commission (AUC) concluded that a self-generator could only avoid the general “must offer, must exchange” obligations imposed by the Electric Utilities Act, SA 2003, c E-5.1, (EUA; and regulations) and the Hydro and Electric Energy Act, RSA 2000, c H-16, (HEEA) if it fell within one of the prescribed exceptions in the legislative scheme. ABlawg commented on the Smith decision here: Opening a Can of Worms. The AUC followed its Smith decision with two further interconnection applications in April and early June: AUC Decision 23756-DOI-2019, Advantage Oil and Gas Ltd. Glacier Power Plant Alteration, April 26, 2019; and AUC Decision 24393-D01-2019, International Paper Canada Pulp Holdings ULC Request for Permanent Connection for 48-Megawatt Power Plant, June 6, 2019. I commented on these latter two decisions here. Continue reading →

Royalty Certainty for the Oil and Gas Industry?

By: Nigel Bankes

PDF Version: Royalty Certainty for the Oil and Gas Industry?

Legislation Commented On: Alberta Bill 12: Royalty Guarantee Act

On June 20, 2019 Alberta’s Legislature gave first reading to Bill 12, The Royalty Guarantee Act. The Bill aims to fulfil a commitment made as part of the United Conservative Party’s (UCP) election platform:

Royalty Guarantee

Recent Alberta governments shook investor confidence with royalty reviews. A United Conservative government will guarantee in law that the royalty regime in place when a well is permitted will remain in place for that project in perpetuity. (at 30)

In the press release accompanying introduction of the Bill, Minister Sonya Savage reiterated the concerns that led to its introduction:

Frequent royalty reviews have had a significant negative impact on the energy industry and our province’s ability to compete with other energy jurisdictions. Alberta has competitive royalty rates and investors need certainty when making long-term decisions that the rates will not change on a whim. This legislation would provide the guarantee that stability isn’t just something we talk about in Alberta, it is the law.

This post examines the current rules in relation to changes in Crown royalties and then considers the scope and effect of Bill 12. Continue reading →

As Bill C-69 Receives Royal Assent, Will the Project List Deliver on the Promise?

By: Sharon Mascher

PDF Version: As Bill C-69 Receives Royal Assent, Will the Project List Deliver on the Promise?

Matter Commented On: Discussion Paper on the Proposed Project List

Last week, Bill C-69 finally passed through the Senate and received Royal Assent. That the legislative process has been long and fraught goes without saying. On its first passage through the Senate, a total of 229 amendments were made to the legislation. While 130 of those amendments were ultimately rejected, Bill C-69 incorporates 99 of them – 62 as proposed by the Senate and 37 with government alterations. This reportedly is “the highest number of amendments on any piece of legislation since at least 1946.” Continue reading →

The Implications of the AUC’s Smith Decision

By: Nigel Bankes

PDF Version: The Implications of the AUC’s Smith Decision

Decisions commented on: AUC Decision 23756-DOI-2019, Advantage Oil and Gas Ltd. Glacier Power Plant Alteration, April 26, 2019; and AUC Decision 24393-D01-2019, International Paper Canada Pulp Holdings ULC Request for Permanent Connection for 48-Megawatt Power Plant, June 6, 2019.

In its Smith decision earlier this year, the AUC concluded that a self-generator could only avoid the general must offer, must exchange obligations imposed by the Electric Utilities Act, SA 2003, c E-5.1, (EUA; and regulations) and the Hydro and Electric Energy Act, RSA 2000, c H-16,(HEEA) if it fell within one of the prescribed exceptions in the legislative scheme. ABlawg commented on the Smith decision here: Opening a Can of Worms.

In these decisions, two AUC panels have confirmed the Smith decision, and in doing so further explore the implications of Smith for both new generation and for existing generation. Continue reading →