Category Archives: Oil & Gas

Investigating the Orphan Fund Levy Using Freedom of Information Requests

By: Drew Yewchuk

Decision Commented on: Freedom of Information Request to the Alberta Energy Regulator 2021-G-0025

PDF Version: Investigating the Orphan Fund Levy Using Freedom of Information Requests

This is a follow-up on an earlier ABlawg post from March 2022: “How is the Orphan Fund Levy Set? Alberta’s Oil and Gas Clean-up Costs in 2022”. That post was the result of work by the Public Interest Law Clinic on how Alberta’s oil and gas clean-up liabilities were being managed. That post tried to answer the question of how the Alberta Energy Regulator (AER) was setting the amount of the Orphan Fund Levy. Continue reading →

Environmental Obligations Enforced Between Private Parties: The Extension of Redwater

By: Jassmine Girgis

Case commented on: Qualex-Landmark Towers Inc v 12-10 Capital Corp, 2023 ABKB 109 (CanLII)

PDF Version: Environmental Obligations Enforced Between Private Parties: The Extension of Redwater

The Qualex-Landmark Towers Inc v 12-10 Capital Corp, 2023 ABKB 109 (CanLII) (Qualex) decision extends the principles from the Supreme Court’s decision in Orphan Well Association, Alberta Energy Regulator v Grant Thornton Limited and ATB Financial, 2019 SCC 5 (CanLII) (Redwater) to a private dispute outside insolvency proceedings. Continue reading →

Administrative Penalties at the Alberta Energy Regulator: A Gentle Slap on the Wrist for Ovintiv

By: Drew Yewchuk

Decision Commented On: AER Administrative Penalty 202304-03, Ovintiv Canada ULC

PDF Version: Administrative Penalties at the Alberta Energy Regulator: A Gentle Slap on the Wrist for Ovintiv

I recently turned my mind to the subject of how the Alberta Energy Regulator (AER) makes decisions on financial penalties to companies that contravene the conditions of their project approvals. This post is the first in what may become a series of blogs on the question. Continue reading →

Polluter Pays Principle at Risk: Auditor General Finds Alberta’s Oil and Gas Liability Regime Still Badly Deficient

Regulatory Documents Commented on: Auditor General of Alberta, “Liability Management of (Non-Oil Sands) Oil and Gas Infrastructure”, March 2023

By: Drew Yewchuk, Shaun Fluker, and Martin Olszynski

PDF Version: Polluter Pays Principle at Risk: Auditor General Finds Alberta’s Oil and Gas Liability Regime Still Badly Deficient

Late last week, the Auditor General of Alberta released a scathing report that concludes that, notwithstanding some ongoing reforms, the management and regulation of end-of-life oil and gas liabilities by the Alberta Energy Regulator (AER) remains seriously deficient in several key areas. This assessment of the AER is one of four components of the Auditor General’s March 2023 report, and is set out as Section 2 Liability Management of (Non-Oil Sands) Oil and Gas Infrastructure (AG AER Report). The AG AER Report audited AER operations to assess (1) whether the AER’s current liability management system effectively mitigated the risks associated with the closure of oil and gas infrastructure and (2) whether the AER appropriately identified the risks and gaps in the previous liability management system and prepared an implementation plan for changes to effectively mitigate those risks and gaps. This comment focuses on the findings that the AER’s oil and gas liability management regime remains deficient in key areas. Continue reading →

What is the Status of the Shell/Pieridae Deal and What is the AER Doing?

By: Nigel Bankes

Matter commented on: Deferred Shell/Pieridae Licence Transfer Application: Amended Notice of Hearing, Proceeding 410, Shell Canada Limited and Pieridae Alberta Production Ltd., Caroline, Waterton, and Jumping Pound, and 2022 ABAER 001.

PDF Version: What is the Status of the Shell /Pieridae Deal and What is the AER Doing?

In 2019, Shell Canada, an international major, entered into a purchase and sale agreement (PSA) with Pieridae Alberta Production Ltd. The PSA contemplated that Shell would sell Pieridae its interests in what are known as Shell’s ‘Foothills Natural Gas Assets’ in Alberta: the Waterton, Jumping Pound, and Caroline fields. These assets are all sour gas assets meaning that they are rich in hydrogen sulphide, thus their development and continuing production pose considerable risks to human health as well as technical risks to the integrity of facilities that must be carefully managed. Continue reading →