Oil & Gas – Page 8

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)

How is the Orphan Fund Levy Set? Alberta’s Oil and Gas Clean-up Costs in 2022

By Drew Yewchuk

On March 17, 2022

In Energy, Oil & Gas

By: Drew Yewchuk & Chris Wray

PDF Version: How is the Orphan Fund Levy Set? Alberta’s Oil and Gas Clean-up Costs in 2022

Decision Commented On: The Upcoming Orphan Fund Levy for 2022/2023

ABlawg has covered the orphan and inactive oil and gas well issue for around five years now and those who have not followed the issue can become lost in the complexities of the regulatory system. This post is an entry point for those first starting to look carefully at the issue. It describes Alberta’s oil and gas clean-up obligation and costs problems in detail, explains why it is difficult to get clear information about the precise size of the problem, and ends by describing what is at stake in the upcoming policy decision: the annual decision of the Alberta Energy Regulator (AER) to set the amount of the 2022/2023 Orphan Fund Levy.

The December 2021 Mine Financial Security Program Standard

By Drew Yewchuk

On January 13, 2022

In Energy, Oil & Gas

By: Drew Yewchuk

PDF Version: The December 2021 Mine Financial Security Program Standard

Regulatory Document Commented On: The December 23, 2021 Mine Financial Security Program Standard

In a post back in May 2021, I mentioned a quietly made change to Alberta’s Mine Financial Security Program (MFSP), which sets out the security requirements for coal and oil sands mines in Alberta:

Bill 77, Unpaid Municipal Taxes, and the Connection to the Inactive and Orphan Wells Problem

By Drew Yewchuk

On December 6, 2021

In Environmental, Oil & Gas

By: Drew Yewchuk

PDF Version: Bill 77, Unpaid Municipal Taxes, and the Connection to the Inactive and Orphan Wells Problem

Bill Commented On: Alberta’s Bill 77: Municipal Government (Restoring Tax Accountability) Amendment Act, 2021, 2^nd Session, 30^th Legislature

Alberta’s Bill 77: Municipal Government (Restoring Tax Accountability) Amendment Act, 2021 (2^nd Session, 30^th Legislature) is moving towards becoming law. This post describes what Bill 77 would do, explains the connection between oil and gas companies’ unpaid municipal taxes and Alberta’s orphan well problem, and describes some reasons why Bill 77 will be ineffective.

The AER’s Mandatory Closure Spend Targets are Deficient

By Drew Yewchuk

On July 27, 2021

In Energy, Oil & Gas

By: Drew Yewchuk

PDF Version: The AER’s Mandatory Closure Targets are Deficient

Legislation Commented On: AER Bulletin 2021-23 ‘Mandatory Closure Spend Targets’

This is a follow up post to my June 24, 2021 post on the changes the Alberta Energy Regulator (AER) is making to the Liability Management Framework and specifically Draft Directive XXX: Licensee Life-Cycle Management (Draft Directive) meant to replace the current Directive 006 once finalized. Readers are encouraged to check that post for background context.