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Rights of first refusal in a package sale of oil and gas properties: a follow up to Chase Manhattan

Cases considered: Bearspaw Petroleum Ltd. v. ConocoPhillips Western Canada Partnership, unreported judgement of Master Hanebury, February 26, 2009
Bearspaw Petroleum Ltd. v. ConocoPhillips Western Canada Partnership, 2009 ABQB 202 (Master in Chambers)

PDF version: Rights of first refusal in a package sale of oil and gas properties: a follow up to Chase Manhattan

The rationale for the right of first refusal (ROFR) in the context of jointly owned oil and gas properties is well understood. ROFRs are typically included in a variety of oil and gas agreements and in particular the operating agreement (see Article 24 of the various iterations of the Canadian Association of Petroleum Landmen (“CAPL”) form). But they are messy, especially in so-called package sales where a party is disposing of a number of assets in a particular deal. Current versions of the CAPL form provide a procedure for dealing with package deals but the provisions are not free of difficulty and older forms offer little if any guidance.

Employee Alcohol and Drug Testing Once Again At Issue

Case Considered: United Association of Journeyman and Apprentices of the Plumbing and Pipefitting Industry of the United States and Canada, Local 488 v. Bantrel Constructors Co., 2009 ABCA 84

PDF Version: Employee Alcohol and Drug Testing Once Again At Issue

Alcohol and drug testing of employees is a tricky issue from a legal perspective. For example, in an earlier post, I commented on Alberta (Human Rights and Citizenship Commission) v. Kellogg Brown & Root (Canada) Company, 2007 ABCA 426, where in cases of pre-employment drug testing, there seem to be conflicting court decisions that make it challenging to implement effective policies. (Since the post was written, the Supreme Court of Canada denied the Alberta Human Rights and Citizenship Commission’s application for leave to appeal on May 29, 2008). What about the situation where an employer seeks to implement a new drug testing policy to apply to existing unionized employees as a condition of access to a construction work site?

The Tromsø Meeting of the Parties to the 1973 Agreement on the Conservation of Polar Bears: A Comment on Three Aspects of the Meeting Report

By: Nigel Bankes

PDF Version: The Tromsø Meeting of the Parties to the 1973 Agreement on the Conservation of Polar Bears: A Comment on Three Aspects of the Meeting Report

Document Commented On: Meeting of the parties to the 1973 Agreement on the Conservation of Polar Bears, Tromsø, Norway, 17 – 19 March 2009 Outcome of Meeting

A few weeks ago (March 17 – 19, 2009) the parties to the 1973 Polar Bear Agreement met in Tromsø to consider the further implementation of the Agreement. This is a significant breakthrough. Apart from a meeting of the parties back in 1981 when the Parties decided to continue the Agreement in force as contemplated by Article X(6) of the Agreement and in informal meeting of the range states in 2007, the parties have never considered the further implementation of this Agreement.

New Legislation on Film and Video Classification Garners Little Attention

Legislation Considered: Film and Video Classification Act, S.A. 2008 c. F-11.5

PDF Version: New Legislation on Film and Video Classification Garners Little Attention

Without much attention or fanfare, the Film and Video Classification Act (“FVCA“), S.A. 2008 c. F-11.5 received royal assent on December 2, 2008. It is awaiting proclamation. It is perhaps ironic that the media did not pay much attention to legislation that will certainly affect some of them. It is clear that the legislation that the FVCA will replace is sorely out of date and needs to be brought into the 21st century (e.g., the Amusements Act, R.S.A. 2000, c.A-40, referred to “moving picture machines” and “travelling picture shows”). However, some of the amendments seem to create potential difficulties in implementation. Three aspects of the new legislation merit discussion.

Extraordinary Times Justify Extraordinary Remedies: Interim Measures under the AIPN Standard Form Operating Agreement

Cases Considered: BG International Limited v. Canadian Superior Energy Inc., 2009 ABCA 127; BG International Limited v. Canadian Superior Energy Inc., 2009 ABCA 73 (Justice Carole Conrad, chambers)

PDF Version: Extraordinary times justify extraordinary remedies: interim measures under the AIPN standard form operating agreement

This is the first Alberta and indeed Canadian decision to consider the standard form operating agreement of the Association of International Petroleum Negotiators (AIPN) (2002). The Court of Appeal has upheld the order of Justice Barbara Romaine [unreported, February 11, 2009] sitting in chambers to issue an interim receivership order with respect to Canadian Superior Energy Inc’s (CSEI) interest in an exploration property in the offshore area of Trinidad and Tobago. In the course of doing so the order effected a change of operatorship and provided significant interim relief to BG International (BGI) in order to preserve the jointly owned property and to ensure continued drilling and testing operations.

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