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The AER is Seeking Public Input on its Proposed Regulatory Solution for the Growing Orphan Well and Other Unfunded Liabilities Problem in Alberta’s Oil and Gas Sector

By: Shaun FlukerDrew Yewchuk

PDF Version: The AER is Seeking Public Input on its Proposed Regulatory Solution for the Growing Orphan Well and Other Unfunded Liabilities Problem in Alberta’s Oil and Gas Sector

Matter Commented On: Proposed amendments to AER Directive 067: Eligibility Requirements for Acquiring and Holding Energy Licences and Approvals

 On January 13, 2021 the Alberta Energy Regulator (AER) issued Bulletin 2021-01 seeking public comments on proposed amendments to Directive 067: Eligibility Requirements for Acquiring and Holding Energy Licences and Approvals. These amendments are an implementation component of Alberta’s policy initiative, announced in July 2020 as the new Liability Management Framework, to improve the effectiveness of laws intended to address Alberta’s growing (and already enormous) problem of unfunded end-of-life closure and reclamation liabilities in the energy sector. The proposed amendments to Directive 067 constitute the details of the Licensee Capability Assessment System – the AER’s replacement for the catastrophic failure known as the Licensee Liability Rating program used in the oil and gas sector. The AER will receive public comments on the proposed changes to Directive 067 until and through February 14, and this post constitutes our comments – which will be submitted to the AER in its requested form (which can be downloaded here  and sent via email to Directive067@aer.ca – alternatively you can submit the comments form by mail to the AER, Directive 067 Feedback, Suite 1000, 250 – 5 Street SW, Calgary, AB T2P 0R4).

What Are the Implications of Reinstating the 1976 Coal Development Policy?

By: Nigel Bankes

PDF Version: What Are the Implications of Reinstating the 1976 Coal Development Policy?

Matters Commented On: Alberta Energy Press Release, “Alberta’s 1976 Coal Policy Reinstated” (February 8, 2021); Information Letter 2021-07 “Coal Policy Reinstatement” (8 February 2021) and attached Ministerial Order 054/2021

On February 8, 2021, Minister of Energy, Sonya Savage announced via press conference that, effective immediately, the 1976 Coal Development Policy (CDP) would be reinstated. The formal press release noted that “[t]his includes reinstating the four coal categories, which dictated where and how coal leasing, exploration and development could occur.” In addition, the release stipulated that “[a]ll future coal exploration approvals on Category 2 lands will be prohibited pending widespread consultations on a new coal policy.”

But these decisions alone will not restore the status quo as it stood prior to June 1, 2020 when the UCP government revoked the CDP without consultation. This makes the claim of reinstatement hollow – for at least two reasons.

Coal Law and Policy in Alberta, Part One: the Coal Policy and Its Legal Status

By: Nigel Bankes

 PDF Version: Coal Law and Policy in Alberta, Part One: the Coal Policy and Its Legal Status

Issue Commented On: Revocation of the Coal Development Policy for Alberta (1976); Department of Energy, Information Letter 2020-23 “Rescission of A Coal Development Policy for Alberta and new leasing rules for Crown coal leases” (15 May 2020)

I don’t need to tell anybody living in Alberta that there has been a lot of talk recently about coal. Most of that talk has been directed at the Government of Alberta’s decision, to revoke a policy adopted in 1976 known as the Coal Development Policy for Alberta (CDP or Policy).

Once it became widely known, the decision to revoke the policy attracted the attention of civil society and of the media. Interest in the decision is growing and many local governments including Lethbridge, High River, Nanton, Longview, Canmore, Edson, Okotoks, Airdrie and Turner Valley have weighed in on the issue. So too have the Kainai-Blood Tribe and the Siksika First Nation. A significant number of these governments have adopted resolutions either questioning the decision to revoke the coal policy or simply demanding that the Government of Alberta reinstate the policy. Much of the commentary focuses on the environmental and health costs associated with coal mining as well as the conflict between coal mining and other visions for the future of the eastern slopes of the Rockies (e.g. Sharon J Riley, “An Alberta County drafted big tourism plans. Then came the coal leases”, The Narwhal (6 February 2021))

The Family Violence Death Review Committee’s Latest Annual Report: Time for a Family Violence Action Plan in Alberta

By: Jennifer Koshan

PDF Version: The Family Violence Death Review Committee’s Latest Annual Report: Time for a Family Violence Action Plan in Alberta

Report Commented On: Family Violence Death Review Committee, 2019/2020 Annual Report

The 2019/2020 Annual Report of Alberta’s Family Violence Death Review Committee (FVDRC) appeared with little fanfare on the government’s website in mid-January 2021. There was no news release, perhaps because the UCP government has been called out for failing to respond to the recommendations in two of the FVDRC’s previous reports from 2019 (see a discussion of those reports here and MLA Janis Irwin’s questions in the Legislative Assembly in December 2020 here (at 3804)). This post will review the major findings from the latest FVDRC Annual Report and situate the work of the FVDRC in developments around a provincial action plan on family violence. Given the evidence that family violence has increased and intensified during the COVID-19 pandemic, including in Alberta, action on the part of the government is critical. Moreover, given that family violence is gendered and disproportionately impacts members of marginalized communities – including during COVID-19 – failure to act has human rights implications for survivors (and non-survivors) of family violence.

The Sequoia Bankruptcy Part 2: The Appeal of the Motions to Strike and Dismiss

By: Drew Yewchuk

PDF Version: The Sequoia Bankruptcy Part 2: The Appeal of the Motions to Strike and Dismiss

Cases Commented On: PricewaterhouseCoopers Inc v Perpetual Energy Inc, 2020 ABQB 513 (CanLII); PricewaterhouseCoopers Inc v Perpetual Energy Inc, 2021 ABCA 16 (CanLII)

This is part two of a series on the litigation resulting from the bankruptcy of Sequoia. The first part covered the first application to strike, and the applications to intervene in the appeal of that decision at the Court of Appeal.

This part covers two decisions in the Sequoia bankruptcy saga: 2020 ABQB 513 (CanLII), a costs decisions at the Queen’s Bench level, and 2021 ABCA 16 (CanLII), the Court of Appeal decision overturning that costs decision and the decision to strike the majority of the Trustee’s claims.

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