Category Archives: Oil & Gas

Locating the Constitutional Guardrails on Federal Environmental Decision Making after Reference re: Impact Assessment Act

By: Nathan Murray and Martin Olszynski

Decision Commented On: Reference re Impact Assessment Act, 2023 SCC 23 (CanLII)

PDF Version: Locating the Constitutional Guardrails on Federal Environmental Decision Making after Reference re: Impact Assessment Act

This post is the seventh ABlawg commentary on the Supreme Court of Canada’s Reference re: Impact Assessment Act, 2023 SCC 23 (CanLII) (IAA Reference) decision from October 2023. In the most recent of those posts, one of us briefly noted the majority’s preoccupation with the concept of “adverseness” when delineating the scope of federal environmental jurisdiction under the Impact Assessment Act, SC 2019, c 28, s 1 (IAA). The majority’s preoccupation with that concept actually pervades the IAA Reference decision. Here, we focus squarely on the majority’s treatment of the concept of “adverseness” and its role in the public interest decision-making stage of federal impact assessment. Continue reading →

Auditor General Updates Recommendations Unaddressed by the AER on the Effectiveness of Regulating Closure Liabilities in Conventional (Non-Oil Sands) Oil and Gas

By: Shaun Fluker, Drew Yewchuk, and Martin Olszynski

Report commented on: Report of the Auditor General – December 2023

PDF Version: Auditor General Updates Recommendations Unaddressed by the AER on the Effectiveness of Regulating Closure Liabilities in Conventional (Non-Oil Sands) Oil and Gas

Earlier this month, the Auditor General of Alberta filed a report under section 19 of the Auditor General Act, RSA 2000, c A-46, with the Legislative Assembly. The Report includes a summary of 113 recommendations the Auditor General has made to the government since November 2022, including those made by the Auditor General in March 2023, directing the Alberta Energy Regulator (AER) to improve performance of the management and regulation of end-of-life oil and gas liabilities in the conventional (non-oil sands) sector. The December 2023 report indicates that none of the 9 recommendations made to the AER in March are ready for reassessment. In other words, the AER has not yet taken sufficient action. Continue reading →

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 →