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Limitations Issues in Oil and Gas Royalty Litigation

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On December 2, 2013

In Oil & Gas

PDF Version: Limitations Issues in Oil and Gas Royalty Litigation

Case commented on: Canadian Natural Resources Limited v Jensen Resources Ltd., 2013 ABCA 399

This case involves a geologist’s gross overriding royalty (GORR). The principal issue at trial (see earlier post here) was the question of whether or not the royalty continued as against the property in question when the Crown issued oil sands leases for the oil sands rights in place of the earlier petroleum natural gas leases which were in force when the royalties crystallized. The trial judge held that the royalty did continue against these new leases and the Court of Appeal has confirmed that part of the award.

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Judgment Handed Down in a Complex Petroleum and Natural Gas Lease Case

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On November 29, 2013

In Oil & Gas

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Case commented on: Stewart Estate v TAQA North Ltd, 2013 ABQB 691

This lengthy (121 page plus appendices) and well-reasoned decision will be essential reading for members of the oil and gas bar in Alberta. Justice Barbara Romaine offers guidance on a number of issues including the importance of having all relevant parties before the Court when seeking a declaration as to lease validity, limitations, the interpretation of the term “lack of or intermittent market” and the term “any cause whatsoever beyond the Lessee’s reasonable control”, and the measure of damages where a lessee produces on a dead lease. Given the length of the decision (much of which is taken up with a careful review of the testimony of expert witnesses) I will limit this post to the above legal questions. There are, however, a number of other issues discussed in the decision that this post does not deal with (e.g. estoppel, leave and licence, champerty and maintenance, etc).

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A Stay of Proceedings and Endangered Species at the Environmental Appeals Board

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On November 28, 2013

In Environmental, Protection of Species

PDF Version: A Stay of Proceedings and Endangered Species at the Environmental Appeals Board

Decision commented on: Hanson and Lindberg v Director, Northern Region, Operations Division, Alberta Environment and Sustainable Resource Development, re: County of St. Paul (07 November 2013), Appeal Nos. 13-005 and 006-ID1 (AEAB).

This is a decision on preliminary matters by the Alberta Environmental Appeals Board (EAB) concerning an approval issued by Alberta Environment and Sustainable Resource Development (AESRD) under the Water Act, RSA 2000 c W-3 to fill a wetland in the County of St. Paul.  The EAB hearing on the merits of the approval will be heard in January 2014. Before the EAB in this matter was a request by the Appellants for a stay of the approval pending the merit hearing. The EAB grants the stay, and I will comment on that here.  I also note this decision for its discussion on how the federal Species at Risk Act, SC 2002, c 29 (SARA) applies to this case – keeping in mind SARA is federal legislation but does have some application within provinces and thus it is of ongoing interest to observe how SARA is considered and applied by provincial authorities.

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Douglas Inquiry Committee Resigns

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On November 27, 2013

In Ethics and the Legal Profession

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Decision commented on: Inquiry Committee concerning the Hon. Lori Douglas, Reasons For Resignation of the Inquiry Committee (November 20, 2013)

In a stunning development, the Inquiry Committee charged with investigating the conduct of the Hon. Lori Douglas, chaired by Chief Justice Catherine Fraser of the Alberta Court of Appeal, has resigned en masse. Associate Chief Justice Douglas was investigated by the Canadian Judicial Council in relation both to her conduct prior to her judicial appointment and to her disclosures during the appointment process. The Inquiry Committee was additionally charged with considering her conduct during the Canadian Judicial Council’s investigation, and in particular allegations that she interfered with the investigation. (For a previous discussion of this case on ABlawg see here).

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Supreme Court Denies Leave to Appeal in Marital Rape Sentencing Case

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On November 26, 2013

In Criminal, Supreme Court of Canada

PDF Version: Supreme Court Denies Leave to Appeal in Marital Rape Sentencing Case

Case commented on: R v QJK, 2013 ABCA 244; leave to appeal to SCC dismissed November 21, 2013

On November 21, 2013 the Supreme Court of Canada (McLachlin CJ, Cromwell J and Wagner J) dismissed a leave to appeal application by the defence for a sentence handed down by the Alberta Court of Appeal in R v QJK. The Supreme Court’s summary of the case frames the issue on which leave to appeal was sought as “Whether the Honourable Court of Appeal erred in not giving deference to the Learned Sentencing Judge as he did give proper weight to the gravity of the offense and properly considered the principles of denunciation and deterrence and imposed a fit sentence.” In a very brief Memorandum of Decision delivered from the bench, the Court of Appeal had increased the sentence imposed by the sentencing judge from 6 months to 20 months imprisonment. The Court of Appeal noted that the circumstances of the case – forced sexual intercourse by the accused on his spouse – amounted to a major sexual assault necessitating a 3 year starting point (2013 ABCA 244 at para 1). According to the Court of Appeal, the sentencing judge “overemphasized the mitigating circumstances and underappreciated the gravity of the offence as well as the need that the sentence reflect an appropriate degree of denunciation and deterrence” (at para 1).

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