Category: Oil & Gas Page 20 of 54

By: Nigel Bankes

PDF Version: Abandonment Expenses are for the Joint Account

Case Commented On: Spyglass Resources Corp v Bonavista Energy Corporation, 2017 ABQB 504 (CanLII)

In this decision Justice Jones rejected a series of technical arguments raised by the receiver of Spyglass (Ernst and Young) to resist payment of abandonment costs. The receiver had argued that Bonavista had abandoned co-owned assets for its own account rather than the joint account and that Bonavista was not able to set-off revenues attributable to Spyglass’s interest against Spyglass’s share of abandonment obligations.

The Effect of Well Abandonment and Reclamation Obligations for the Valuation of Matrimonial Property

By Nigel Bankes

On August 10, 2017

In Environmental, Family, Oil & Gas, Property

By: Nigel Bankes

PDF Version: The Effect of Well Abandonment and Reclamation Obligations for the Valuation of Matrimonial Property

Case Commented On: Walker v Walker, 2017 SKQB 195 (CanLII)

Judicial decisions on the legal nature of abandonment and reclamation obligations may arise in the strangest of ways. Take this matrimonial property case, for example, in which Mr. Walker (Darcy) was seeking to argue that his assets should be discounted on the basis that a small oil and gas company (Outback) that he controlled had net abandonment and reclamation liabilities. Part of the challenge that he faced in making this argument was of course that the liabilities in question were the liabilities of the corporation. While a director or controlling mind of a corporation might ordinarily take some comfort from this state of affairs, in this case counsel for Darcy tried to suggest that his client would inevitably face personal liability under the terms of Saskatchewan’s The Environmental Management and Protection Act, 2010, SS 2010, c E-10.22 [EMPA] and The Oil and Gas Conservation Act, RSS 1978, c O-2 [OGCA] and s 59 of The Oil and Gas Conservation Regulations, 2012, RRS c O-2 Reg 6 [OGCR]. Actually the argument was even stranger insofar as Mrs. Walker (Becky) was also a director of the company (Outback) and thus might face the same liability should Darcy be correct.

Court of Appeal Confirms that Summary Judgement Not Available in a Factually Complex Oil and Gas Case

By Nigel Bankes

On July 6, 2017

In Oil & Gas

By: Nigel Bankes

PDF Version: Court of Appeal Confirms that Summary Judgement Not Available in a Factually Complex Oil and Gas Case

Case Commented On: Talisman Energy Inc v Questerre Energy Corporation, 2017 ABCA 218 (CanLII)

The Court of Appeal has concluded that summary judgement will not be available for monies owing based upon the liquidated demand clause in the 1990 CAPL Operating Agreement where the matter involves the existence of an alleged additional or collateral agreement that, if proven, may vary the terms or application of the Operating Agreement on which the claim depends.

Recommendations on Implementing the Oil Sands Emission Limit

By Nigel Bankes

On June 27, 2017

In Climate Change, Oil & Gas

By: Nigel Bankes

PDF Version: Recommendations on Implementing the Oil Sands Emission Limit

Report Commented On: Oil Sands Advisory Group (OSAG), Recommendations on Implementation of the Oil Sands Emissions Limit Established by the Alberta Climate Leadership Plan, dated May 8, 2017, released to the public June 16, 2017 with related news release

One of the planks of Alberta’s Climate Leadership Plan (CLP) is the adoption of a 100 Megatonne (Mt) cap on greenhouse gas emissions for the oil sands sector. The government introduced and passed the Oil Sands Emissions Limit Act, SA 2016 c. O-7.5 (OSELA) to give effect to this commitment. I commented on the Act as it was introduced as Bill 25 here. While OSELA provides the necessary legal authorization for the cap, many of the details still need to be worked out and then implemented through the regulation-making power in s 3 of OSELA (and see in particular s 3(h)). Recognizing the need for advice on this set of issues Minister Phillips established the Oil Sands Advisory Group (OSAG) in July 2016. The terms of reference are available here along with two mandate letters from Premier Notley here and here.

Preliminary Skirmishing in Ongoing Compulsory Unitization Hearings for the Hebron Field

By Nigel Bankes

On June 9, 2017

In Oil & Gas

By: Nigel Bankes

PDF Version: Preliminary Skirmishing in Ongoing Compulsory Unitization Hearings for the Hebron Field

Case Commented On: ExxonMobil Canada Properties v Canada-Newfoundland and Labrador Offshore Petroleum Board, 2017 NLTD(G) 80 (CanLII)

In this decision Justice Burrage dismissed an application for leave to appeal an interlocutory decision of the Oil and Gas Committee established under the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act, SC 1987. c. 3 (the “Federal Accord Act”) in which one of the parties responding to the application of the Chief Conservation Officer (the “CCO”) of the Canada-Newfoundland and Labrador Offshore Petroleum Board (the “C-NLOPB”) for a unitization order pursuant to the Accord Acts sought to compel production of a legal opinion prepared for one of the other parties.