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Linking the California and Québec Emissions Trading Schemes

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Agreement Commented On: Agreement Between the California Air Resources Board and the Gouvernement Du Québec Concerning the Harmonization and Integration of Cap-and-Trade Programs for Reducing Greenhouse Gas Emissions

In late September 2013, California and Québec signed an agreement to link their carbon emissions trading schemes effective January 1, 2014.  This is the first linkage under the Western Climate Initiative (WCI) – a regional collaboration between British Columbia, Manitoba, Ontario, Québec, and California to establish a carbon reduction and trading scheme that is intended to produce an overall 15% reduction from 2005 level carbon emissions by 2020 amongst the participating jurisdictions. (For more detail on the WCI see here). Alberta is notably absent from the WCI.

Limitations Issues in Oil and Gas Royalty Litigation

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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.

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

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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).

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

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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.

Douglas Inquiry Committee Resigns

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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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