ABLawg

Everything You Wish You Didn’t Need to Know About the Alberta Inquiry into Anti-Alberta Energy Campaigns

Matter Commented On: The Alberta Inquiry, OC 125/2019

“Good faith” in this context…means carrying out the statute according to its intent and for its purpose; it means good faith in acting with a rational appreciation of that intent and purpose and not with an improper intent and for an alien purpose; it does not mean for the purposes of punishing a person for exercising an unchallengeable right; it does not mean arbitrarily and illegally attempting to divest a citizen of an incident of his civil status.

Roncarelli v Duplessis, [1959] SCR 121, 1959 CanLII 50 (SCC) at 143 (per Rand J)

Crown Consultation Obligations and a National Infrastructure Corridor: Simple Meets Complex

By David V Wright

On October 15, 2019

In Aboriginal, Energy, Environmental

By: David V. Wright

PDF Version: Crown Consultation Obligations and a National Infrastructure Corridor: Simple Meets Complex

Matter Commented On: National Infrastructure Corridor

Renewed interest in a cross-Canada infrastructure corridor has surfaced in recent months and weeks, including as a federal election issue. Details were thin in the recent Conservative campaign announcement, but a substantial amount of information about a similar concept can be found in a 2017 report from the Senate Committee on Banking Trade and Commerce (the focus of the former is on an ‘energy corridor’ while the focus of the latter and the below-cited article by Sulzenko and Fellows is on a multi-modal infrastructure corridor). That report rightly acknowledges that “such a major undertaking – which would require the accommodation of a multitude of varying interests and priorities – would undoubtedly be difficult to complete, and a number of complex issues – including in relation [to] Indigenous peoples, financing and the environment – would need to be addressed” (p 12). In this post, I provide a brief overview and initial comments in relation to a fundamental “complexity” pertaining to the corridor concept: Crown consultation and accommodation duties with respect to the Indigenous peoples of Canada.

Latest Municipal Utility Appeal Decision by the AUC: Business as Usual

By Dana Poscente

On October 11, 2019

In Energy

By: Dana Poscente

PDF Version: Latest Municipal Utility Appeal Decision by the AUC: Business as Usual

Decision Commented On: Village of Delia: Appeal of Utility Charges by Heide Peterson and Yvon Fournier, October 1, 2019, Alberta Utilities Commission Decision 24678-D01-2019

In this recent municipal utility appeal, Ms. Peterson and Mr. Fournier (the Appellants) requested that the Alberta Utilities Commission (AUC) disallow all water, sewer, garbage and land fill utility charges imposed by the Village of Delia, including interest, from the time at which they disconnected from municipal utility service to the time of this decision. The AUC found, pursuant to section 43 of the Municipal Government Act, RSA 2000, c M-26 (MGA), that certain of the appealed charges were discriminatory and ordered Delia to repay them. This post describes the statutory scheme under which the Commission can hear and make orders on such appeals, summarizes the decision, and compares the reasoning and outcome to similar past decisions.

Two New Offset Well Cases

By Nigel Bankes

On October 10, 2019

In Energy

By: Nigel Bankes

PDF Version: Two New Offset Well Cases

Cases Commented On: Canadian Natural Resources Limited v Lisafeld Royalties Ltd., 2019 SKQB 201 (Can LII); Whitecap Resources Inc. v Canadian Natural Resources Limited, 2019 ABQB 698 (Can LII)

This post examines two recent decisions dealing with offset well obligations under petroleum and natural gas leases. An offset well obligation is a clause in a lease that requires the lessee to drill a well on the leased lands where production has been obtained from a contiguous property and there is no similar well on the leased lands producing from the same formation. The purpose of the clause is to protect the lessor from the risk of drainage (i.e. where the well on the neighbouring property is or may be capturing hydrocarbons from under the lessor’s lands). While the primary obligation of the lessee is to drill to the target formation, more modern versions of the clause create additional options and allow the lessee instead of drilling to surrender all or some part of the lease, or pay a compensatory royalty to the lessor (i.e. a royalty paid on the production on the offsetting well as if it were occurring on the leased lands). This compound obligation is frequently described as drill, drop or pay obligation.

Clean-up Liability for Wells in the Mackenzie Delta

By Nigel Bankes

On October 7, 2019

In Energy

By: Nigel Bankes

PDF Version: Clean-up Liability for Wells in the Mackenzie Delta

Case Commented On: ConocoPhillips Canada Resources Corp and Shell Canada Limited, 2019 ABQB 727 (CanLII)

Gulf, Conoco’s predecessor, undertook exploratory drilling in the Mackenzie Delta in the 1970s including the seven wells referenced in this case, most particularly the I-37 well. The wells had sump pits for the disposal of drilling waste and fluids. In 1973 Gulf obtained approval to suspend the I-37 well and fill the top two thousand feet of casing with diesel fuel. Gulf subsequently abandoned the I-37 well in the mid-1980s, installing a cement plug, but by then the diesel oil (at para 29) “was no longer in place”. “All of the well sites received final clearance under the Territorial Lands Use Regulation, CRC, Vol XVIII, c 1524, p 13645, ss 18, 33(5), 37 in September, 1986. This approval meant that the site had been satisfactorily reclaimed and the regulator was satisfied that the conditions of the land use permit had been met.” (at para 29) Prior to abandonment Gulf had used the data from these wells to procure significant discovery licences (SDL) under the terms of the Canada Petroleum Resources Act, RSC, 1985, c. 36 (2^nd Supp) for some of its properties.