Category Archives: Oil & Gas

British Columbia and the Northern Gateway Pipeline

PDF version: British Columbia and the Northern Gateway Pipeline

Document commented on: BC Outlines requirements for heavy oil pipeline projects, July 23, 2012.

The proposed Northern Gateway Pipeline is proving to be extremely contentious on a number of fronts. It raises important questions about the duty to consult and accommodate indigenous peoples who may be affected by the project; it raises questions about the joint review panel and the role of the National Energy Board (see post here) and the amendments to the National Energy Board brought about by the Budget Bill, Bill C-38, now SC 2012, c 19); and, most recently, the province of British Columbia’s Environment Minister, Terry Lake and Aboriginal Relations and Reconciliation Minister, Mary Polak, have outlined the government of British Columbia’s five minimum requirements that must be met for that province “to consider the construction and operation of heavy oil pipelines within its borders.”

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The Proposed Single Energy Regulator: Where Are We Now and Where Do We Go from Here?

PDF version: The Proposed Single Energy Regulator: Where Are We Now and Where Do We Go from Here?

Report commented on: Enhancing Assurance: Developing an integrated energy resources regulator, A Discussion Document, May 2011

It has been over a year since the latest proposal to move to a single regulator for energy development in Alberta was released (see Enhancing Assurance: Developing an integrated energy resources regulator, A Discussion Document, May 2011 (Discussion Document)). Many Albertans are likely asking what, if anything, has happened since then. This post outlines the proposal currently before government, updates readers on any progress made, and highlights the critical issues that ought to be addressed on a go-forward basis.

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More Grist for the Mill, Another Case of Gross Negligence under CAPL 1990

PDF version: More grist for the mill, another case of gross negligence under CAPL 1990

Case commented on: Trident Exploration Corp. (Re), 2012 ABQB 242

An operator under a pooling agreement who agrees to take charge of responding to a Crown offset notice and who fails to do so and fails to inform tract owners that it is no longer intending to respond, is grossly negligent within the meaning of Article 4 of the 1990 CAPL Operating Procedure.

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The European Fuel Quality Directive: Will It Slay or Will It Go?

By: Matthew Ducharme

PDF Version: The European Fuel Quality Directive: Will It Stay or Will it Go?

Document Commented On: Draft Implementing Measure to the European Union Fuel Quality Directive, February 23, 2012

On February 23, 2012, a European Union (EU) drafting committee voted on a draft law that discriminates against bitumen. This was the Draft Implementing Measure to the European Union Fuel Quality Directive (Implementing Measure). The Canadian press reported the vote ended in a stalemate. The press also noted that the law would be reconsidered in the late spring or early summer (National Post; CBC; Globe and Mail).

If the EU enacts the law it will have made a step in its fight against climate change, but the market for bitumen may be negatively impacted. If the law dies, Canada can expect a higher price on the sale of its bitumen in overseas markets. This note examines the February 23 vote within the EU law making process.

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Competing Uses of Geological Space: Resolving Conflicts Between Production and Natural Gas Storage

By: Nigel Bankes

PDF Version: Competing Uses of Geological Space: Resolving Conflicts Between Production and Natural Gas Storage

Decision Commented On: Kallisto Energy Corp. Application for a Well Licence Crossfield East Field, 2012 ABERCB 005, February 24, 2012

This decision deals with the potential for conflict between conventional oil and gas operations and natural gas storage projects.

The idea of resource use or landscape level conflicts is familiar to us in the context of the use of the surface. Consider, for example, the conflicts between recreation and forestry interests, between forestry and oil sands or conventional oil and gas exploration. The idea of competing uses of the subsurface is less familiar but our search for new resources or the application of new technologies to known resources is increasing the potential for those subsurface conflicts. High pressure fracturing operations to stimulate production either from shallow oil formations or deeper shale gas formations raises concerns about the effect of these operations on potable groundwater resources, and proposals to sequester carbon dioxide in saline formations or depleted oil or gas reservoirs raises concerns of sterilizing hydrocarbon resources. The province’s new CCS regime explicitly addresses this scenario through a provision in the Oil and Gas Conservation Act, (OGCA) RSA 2000, c O-6, s. 39(1.1) which provides that the ERCB “may not approve a scheme for the disposal of captured carbon dioxide to an underground formation…unless the [applicant] satisfies the Board that the injection of the captured carbon dioxide will not interfere with (a) the recovery or conservation of oil or gas, or (b) an existing use of the underground formation for the storage of oil or gas.”

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