Category Archives: Oil & Gas

What Are “Unrelated Assets” When It Comes to Environmental Reclamation Obligations? The Lending Industry Needs to Know

By: Jassmine Girgis

Case Commented On: Mantle Materials Group, Ltd v Travelers Capital Corp, 2023 ABCA 302 (CanLII)

PDF Version: What Are “Unrelated Assets” When It Comes to Environmental Reclamation Obligations? The Lending Industry Needs to Know

In recent years, the courts have seen many cases dealing with unfunded environmental reclamation obligations. Although these obligations have long raised issues, the Supreme Court of Canada’s decision in Orphan Well Association v Grant Thornton Ltd, 2019 SCC 5 (CanLII) (“Redwater”) commenced a new era for determining the priority for environmental end-of-life obligations in Canadian insolvencies (see my earlier post on Redwater, Lessons from Redwater: Disregard the AbitibiBowater Test and Legislate Super Priority for the Regulator). Continue reading →

Now 40% Worse: The Mine Financial Security Program in 2023

By: Drew Yewchuk and Martin Olszynski

Documents Commented on: Mine Financial Security Program – Security and Liability (2023); Annual Mine Financial Security Program Submissions 2023 Submissions for 2022 Reporting Year

PDF Version: Now 40% Worse: The Mine Financial Security Program in 2023

This brief post is in response to the Alberta Energy Regulator (AER) publishing the annual submissions required under the Mine Financial Security Program (MFSP). We provide an update on the state of Alberta’s system for obtaining financial security for the closure of oilsands and coal mines. Drew last provided an update in 2021, and that post describes the problems with the MFSP. He skipped 2022 because there was not much to say: it was bad news, but the same bad news as 2021. The numbers this year contain some notable surprises. Continue reading →

The Crown Pore Space Lease and Pore Space Unit Agreement

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. Continue reading →

Alberta Rolls Out Yet Another Form of Sequestration Agreement

By: Nigel Bankes

Document commented on: Mineral Rights Information Bulletin, 2023-01, Small-Scale and Remote (SSR) Carbon Sequestration Tenure, September 14, 2023

PDF Version: Alberta Rolls Out Yet Another Form of Sequestration Agreement

The Government of Alberta (GoA) is experimenting with several different forms of carbon sequestration tenure. But while the initial development of sequestration tenure and policy between 2010 and 2013 was open and transparent – as reflected in the Regulatory Framework Assessment – there is very little in the way of public explanation for the more recent changes, and, as noted in previous ABlawg posts (my last post contains relevant links), very little in terms of overall transparency. Continue reading →

The 2024 Industry-Wide Closure Spend Lowered Without Explanation

By: Drew Yewchuk

Regulatory Bulletin Commented on: AER Bulletin 2023-31, Industry-Wide Closure Spend Requirement for 2024

PDF Version: The 2024 Industry-Wide Closure Spend Lowered Without Explanation

The Alberta Energy Regulator’s (AER) Bulletin 2023-31 sets the industry-wide closure spend requirement for 2024 at $700 million, lower than the $764 million forecasted last year. This is another post on how poorly and secretively the AER is handling the industry-wide closure spend requirement, following previous posts here and here. Continue reading →