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Upholding the Lexin Equipment Order – The AER Wins the Battle, But Most Likely Will Lose the War

By: Heather Lilles

PDF Version: Upholding the Lexin Equipment Order – The AER Wins the Battle, But Most Likely Will Lose the War

Case Commented On: Interim Order and Order Re Equipment (ABQB), Alberta Energy Regulator (applicant) and Lexin Resources Ltd. (respondent), Court File Number 1701-02272 and Alberta Energy Regulator v Lexin Resources Ltd., 2017 ABQB 219 (CanLII)

Lexin Resources may only be a junior oil and gas company, but recent extensive coverage by local news agencies (see here for example) has caused the name of the small oil and gas producer to become as familiar as its larger counterparts, or – perhaps – as infamous as Redwater Energy Corporation. Redwater, another junior in the Canadian industry, became notorious last October when Chief Justice Neil Wittmann of the Court of Queen’s Bench allowed the Receiver of Redwater to disclaim unproductive oil and gas assets even where those assets were subject to abandonment orders from the Alberta Energy Regulator (AER). See the post of Professor Bankes on the Redwater decision here.

Like Redwater Energy, Lexin has been petitioned into bankruptcy under the Bankruptcy and Insolvency Act, RSC 1985, c B-3. In Lexin’s case, a Receiver was appointed on the application of the Alberta Energy Regulator – an unprecedented step for the Regulator. This post addresses two of the recent court actions involving Lexin Resources and the AER: the Interim Order Re Equipment which was issued by the Court of Queen’s Bench on February 14, 2017 (the “Interim Order”) and the recent decision in Alberta Energy Regulator v Lexin Resources Ltd., 2017 ABQB 219 (CanLII) (the “Lexin Decision”). This post does not directly discuss Lexin’s bankruptcy or what effect the Court of Appeal’s decision in Redwater (not yet released) could have on Lexin’s bankruptcy and its AER licensed assets.

The Expert Panel Report on Federal Environmental Assessment: Discretion, Transparency, and Accountability

By: Shaun Fluker and Drew Yewchuk

PDF Version: The Expert Panel Report on Federal Environmental Assessment: Discretion, Transparency, and Accountability

Report Commented On: Expert Panel on the Review of Federal Environmental Assessment Processes, Building Common Ground: A New Vision for Impact Assessment in Canada

Last November, the University of Calgary’s Public Interest Law Clinic, on behalf of the Canadian Parks and Wilderness Society (CPAWS) Southern Alberta Chapter, presented to the Expert Panel responsible for Canada’s federal environmental assessment process. The presentation focused exclusively on problems with the federal environmental assessment process in Canada’s national parks under the Canadian Environmental Assessment Act 2012SC 2012 c 19 s 52 (CEAA 2012). We described that presentation here, and the full written submission to the Panel including exhibits is available here (CPAWS Submission). The Expert Panel Report, Building Common Ground: A New Vision for Impact Assessment in Canada, was released April 5, 2017. Professor Arlene Kwasniak provided some background and an overview of key aspects of the report here. CPAWS left the Expert Panel with three messages in relation to the current federal environmental assessment process in the national parks: there is (1) too much discretion; (2) not enough transparency; and (3) a complete lack of accountability. In this post, we comment on how the Report addresses each of these points.

As an overall comment, it is disappointing the Expert Panel did not specifically address environmental assessment in the national parks. The Report focuses on sustainability as the measuring stick for impact assessment: “Federal IA [impact assessment] should provide assurance that approved projects, plans and policies contribute a net benefit to environmental, social, economic, health and cultural well-being.” (at 2.1.3) While sustainability is a commendable objective generally, this commitment to sustainability and its polycentric consideration of factors is not consistent with the legislated priority of maintaining or restoring ecological integrity in the national parks. The legislated ecological integrity mandate set out in section 8(2) of the Canada National Parks Act, SC 2000 c 32 demands an assessment process which skews in favour of environmental protection over economic and other social considerations. Perhaps, however, the Expert Panel was thinking of national parks and the ecological integrity mandate in its recommendation for regional impact assessments. The Report specifically calls for regional impact assessments that address matters such as baseline conditions and thresholds for federal lands with the potential for cumulative effects problems (at 3.5).

Punitive Damages and the Residential Tenancies Act

By: Jonnette Watson Hamilton

PDF Version: Punitive Damages and the Residential Tenancies Act

Case Commented On: Wilderdijk-Streutker v Zhao, 2017 ABPC 24 (CanLII)

Punitive damages are rarely awarded in residential tenancy disputes, but Wilderdijk-Streutker v Zhao is one of those rare cases. And although an award of punitive damages is very fact-dependent, there are some principles and rules of law which residential landlords and tenants who are contemplating claiming punitive damages should be aware of. They should also be aware that there are a few unsettled issues concerning the awarding of punitive damages in this context. Those unsettled issues are the focus of this post.

Justice for Some

By: Alice Woolley

PDF: Justice for Some

Case Commented on: Green v Law Society of Manitoba, 2017 SCC 20 (CanLII)

Introduction (AKA: A General Complaint About Injustice)

On March 30, 2017 the Supreme Court issued its judgment in Green v. Law Society of Manitoba, 2017 SCC 20 (CanLII).

Rarely have so many judicial resources been spent on a case worthy of so little.

Sidney Green was called to the bar of Manitoba in 1955. In 2011, the Law Society of Manitoba introduced a requirement that all lawyers complete 12 hours of professional development a year. Mr. Green refused to participate. He said that “the CPD activities available to him would not have been helpful to him in his practice” (at para 48). The CEO of the Law Society of Manitoba sent Mr. Green a letter “notifying him that if he did not comply with the Rules within 60 days, he would be suspended from practising law” (at para 10). The CEO also told him, however, that Mr. Green should let the Law Society know if it had made a mistake, and if he needed more than 60 days that period could be extended (at para 10). Mr. Green still did not complete his professional development. Instead he sought judicial review and retained Charles Huband, formerly of the Manitoba Court of Appeal (1979-2007), to assist him.

Mr. Green’s application was unsuccessful at the Manitoba Court of Queen’s Bench (2014 MBQB 249 (CanLII)). It was unsuccessful at the Manitoba Court of Appeal (2015 MBCA 67 (CanLII)). The Supreme Court nonetheless granted leave.

Federal Environmental Assessment Re-Envisioned to Regain Public Trust – The Expert Panel Report

By Arlene Kwasniak

PDF Version: Federal Environmental Assessment Re-Envisioned to Regain Public Trust – The Expert Panel Report

Report Commented On: Expert Panel on the Review of Federal Environmental Assessment Processes, Building Common Ground: A New Vision for Impact Assessment in Canada

This post considers the report of the Expert Panel (Panel) on the Review of Federal Environmental Assessment Processes, Building Common Ground: A New Vision for Impact Assessment in Canada released April 5, 2017 (EP Report). It provides background to the Report and focusses on three issues: The Purpose of Assessment, Who Assesses, and Interjurisdictional Assessments. Other faculty members may be providing further comments on the EP Report in future posts.

About the Panel and the EP Report

The Prime Minister’s November 2015 Environment and Climate Change mandate letter instructed Minister Catherine McKenna to commence a number of law review and reform initiatives, including to “immediately review Canada’s environmental assessment processes to regain public trust ….” Minister McKenna followed through by establishing the Panel. Through September to December the Panel held public and indigenous meetings in numerous locations in Canada, invited written and online submissions, and formed a Multi-Interest Advisory Committee (MIAC) to provide perspective and advice. Professor Shaun Fluker with Anne Marie Syslak, Executive Director of the Canadian Parks and Wilderness Society, presented to the Panel in Calgary on November 23 (see ABlawg post here), and Professors Martin Olszynski and Arlene Kwasniak separately presented on November 21 (Olszynski’s ABlawg post is here). All written submissions to the Panel are accessible on the Panel’s website. At the Panel’s behest, Professors Kwasniak and Olszynski additionally provided expert written advice, and participated in a meeting hosted by the Panel in Ottawa in February. The Panel received over 800 written submissions, heard over 400 oral presentations, and received 2,673 responses to the online Choicebook, a survey-like tool designed to gauge views on assessment reform. The public has until May 5th to comment on the EP Report, through the website Let’s Talk Environmental Assessment. From my reading of the Report, the Panel clearly took its mission to regain public trust in federal environmental assessment very seriously and, excepting for reservations mentioned later, will be successful in its mission if government follows through with legislation that faithfully reproduces its bold vision in legislative details.

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