By: Drew Yewchuk

AER Administrative Sanction Commented On: 202207-13, AlphaBow Energy Ltd.

PDF Version: The Alberta Energy Regulator Enforces New Licensee Capability Assessment and Restricts License Eligibility of AlphaBow

The Alberta Energy Regulator (AER) issued an administrative sanction to AlphaBow Energy Ltd. on July 28, 2022. Two aspects of the sanction make this an interesting case rather than a routine enforcement action: first, the history of AlphaBow, and second, that the administrative sanction is the AER implementing their new approach to liability management, so the terms and the ultimate outcome of this administrative sanction are a decent indication of things to come. Continue reading →

By: Drew Yewchuk

Annual Report Commented On: Orphan Well Association Annual Report 2021/2022; AER Bulletin 2022-23 Mandatory Closure Spend Target Set for 2023

PDF Version: Alberta’s Orphan and Unreclaimed Oil and Gas Assets in July 2022

The Orphan Well Association (OWA) released their annual report for 2021/2022 this month, and the AER posted Bulletin 2022-23 updating the mandatory closure spend targets. This post discusses these two documents and describes the current state of Alberta’s orphan and inactive oil and gas assets. For greater background on the OWA and the history of the problem, see here. Continue reading →

By: Drew Yewchuk

PDF Version: Abandonment and Reclamation Obligations, Builders Liens, and Municipal Taxes in Oil and Gas Bankruptcy Proceedings

Cases Commented On: Manitok Energy Inc (Re), 2022 ABCA 117 (CanLII)

Re Manitok Energy Inc, 2022 ABCA 117 (CanLII) (Manitok) was released March 30, 2022. It relates to the bankruptcy of an Alberta oil and gas corporation and interprets the Supreme Court of Canada’s decision in Orphan Well Association v Grant Thornton Ltd, 2019 SCC 5 (CanLII) (often referred to as Redwater, after the bankrupt company involved). The specific question before the Court of Appeal in Manitok was:

Whether end of life obligations associated with the abandonment and reclamation of unsold oil and gas properties must be satisfied by the Receiver from Manitok’s estate in preference to satisfying what may otherwise be first-ranking builders’ lien claims based on services provided by the lien claimants before the receivership date. (Manitok at para 1) Continue reading →