Category: Oil & Gas Page 40 of 54

Giving away the Arctic farm to piddly little companies – Federal (mis)management of northern oil and gas rights.

On October 1, 2012

PDF version: Giving away the Arctic farm to piddly little companies – Federal (mis)management of northern oil and gas rights.

Decision commented on: The decision of the Minister of Indian Affairs and Northern Development (aka Minister for Aboriginal Affairs and Northern Development, Canada) to award new oil and gas rights pursuant to the 2011-2012 Beaufort Sea & Mackenzie Delta Call for Bids.

On September 12, 2012, the government of Canada announced that it would be granting exploration licences (ELs) to the small and low profile Franklin Petroleum Limited of the UK for six blocks of oil and gas rights in the Beaufort Sea. The ELs will cover over 900,000 hectares of land.

Peter Lougheed’s Section 92A

By Alastair Lucas, Q.C.

On September 27, 2012

In Constitutional, Oil & Gas

PDF version: Peter Lougheed’s Section 92A

Commenting on: the legacy of section 92A of the Constitution Act, 1982

“Exclusive” power of provincial legislatures to make laws for “exploration”; “development, conservation and management” of provincial non-renewable resources and forestry resources. Provinces can also regulate, (without price or supply discrimination) the export of these natural resources. This is the essence of section 92A of the Constitution Act 1982, a provision for which Peter Lougheed fought hard in the negotiations that led to patriation of the Canadian Constitution in 1982.

Issuance of a Notice of Abandonment under Clause 1201 of CAPL is an Attempt to Exercise a “Right to Remedy” within the Meaning of the Typical Stay Provisions of a Receivership Order

By Nigel Bankes

On September 13, 2012

In Bankruptcy and Insolvency, Oil & Gas

PDF version: Issuance of a notice of abandonment under clause 1201 of CAPL is an attempt to exercise a “right to remedy” within the meaning of the typical stay provisions of a Receivership Order

Case Commented On: Baytex Energy Ltd. v Sterling Eagle Petroleum Corporation, 2012 ABQB 539

The Facts

Baytex and Sterling held 50% working interests in certain properties by way of various agreements of 1995 and 1996. The properties were also subject to the terms of the CAPL Operating Procedure. There were a number of producing wells on the joint lands and four non-producing wells. Sterling was placed in receivership in June 2011 and the terms of the Receivership Order were brought to the attention of Baytex in August 2011. Revenues from the producing wells continued to be paid to the Receiver. The Order, conventionally, provided that:

Nova Scotia exploration well approval case

By Nigel Bankes

On August 30, 2012

In Administrative Law, Environmental, Oil & Gas

PDF version: Nova Scotia exploration well approval case

Decision commented on: Margaree Environmental Association v Nova Scotia (Environment), 2012 NSSC 296.

In this case Justice MacAdam of the Nova Scotia Supreme Court denied a statutory appeal from a decision of the Nova Scotia Department of the Environment to grant an approval to drill an exploration well on a 383,000 acre block in the area around Lake Ainslie. There is nothing particularly remarkable about the case but I blog it here for these reasons: (1) it’s an oil and gas case and there are surprisingly few oil and gas cases involving judicial review or statutory appeals from decisions to issue (or not issue) a well licence or equivalent; (2) it’s a decision from a non-traditional oil and gas jurisdiction, Nova Scotia.

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Quest. The Energy Resources Conservation Board Approves the First Commercial Scale Carbon Capture and Storage Project in Alberta

By Nigel Bankes

On August 3, 2012

In Administrative Law, Carbon Capture and Storage, Energy, Natural Resources, Oil & Gas

By: Nigel Bankes

PDF Version: Quest. The Energy Resources Conservation Board Approves the First Commercial Scale Carbon Capture and Storage Project in Alberta

Decision Commented On: Shell Canada Limited, Application for the Quest Carbon Capture and Storage Project, Radway Field, July 10, 2012, 2012 AERCB 008

In a long-awaited decision issued on July 10, 2012, Alberta’s Energy Resources Conservation Board (ERCB or Board) approved Shell Canada Limited’s application for a commercial scale CCS project (the Quest Project). The project is associated with the long standing Athabasca Oil Sands Project (AOSP) and the Scotford Upgrader where new facilities are designed to capture up to 1.2 megatonnes of CO₂ per year for ongoing injection. The cumulative stored volume is expected to be greater than 27 Mt of CO₂ over the expected 25 year life of the Scotford Upgrader. The approval is subject to some 23 conditions and, as contemplated by the scheme approval provision of section 39(2) of the Oil and Gas Conservation Act, RSA 2000, c O- 6 (OGCA), the project will only be finally approved by the ERCB following review by the Minister of the Environment who may impose additional conditions on the scheme approval.