Category: Oil & Gas Page 2 of 57

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

The 1^st 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

On October 24, 2025

In Energy, Environmental, Natural Resources, Oil & Gas

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

On October 14, 2025

In Energy, Environmental, Natural Resources, Oil & Gas, Remedies

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

On October 3, 2025

In Energy, Environmental, Natural Resources, Oil & Gas

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.

The Mature Asset Strategy for Alberta’s Oil and Gas Closure Liability Crisis: Where there is Smoke [and Mirrors], there is Fire

By Martin Olszynski

On September 30, 2025

In Administrative Law, Energy, Environmental, Natural Resources, Oil & Gas

By: Martin Olszynski, Drew Yewchuk, and Shaun Fluker

Matter Commented On: Alberta’s Mature Asset Strategy: What we Heard and Recommendations Report, April 3, 2025

PDF Version: The Mature Asset Strategy for Alberta’s Oil and Gas Closure Liability Crisis: Where there is Smoke [and Mirrors], there is Fire

The Alberta government is poised yet again to change its policy direction for addressing the crisis of unfunded closure liabilities in the conventional oil and gas sector. The current yet-to-be-fully-implemented Liability Management Framework (LMF) was announced – to considerable fanfare – just five years ago, in what seemed like an exchange for $1 billion in federal COVID funding to be applied towards closure work on inactive and orphaned facilities. Now that this federal money has been spent (although $137 million was curiously not spent and had to be returned), and Alberta’s inactive well inventory appears to once again be growing, it is apparently time to abandon the LMF for a ‘new’ policy direction that, if nothing else, will once again delay actually dealing with the problem: enter the Mature Asset Strategy (MAS).