Insights Header image
Insights Header image
Insights Header image

Redwater Appeal Creates Continued Uncertainty for Insolvent Oil and Gas Companies in Alberta

June 2016 Restructuring and Insolvency Bulletin < 1 read

As discussed in our May 2016 bulletin, New Rules for Asset Sales by Insolvent Producers (at least for now), the decision of the Court of Queen’s Bench of Alberta in Re Redwater Energy Corporation, 2016 ABQB 278 (“Redwater“) determined that provisions of the provincial legislation governing the actions of licensees of oil and gas assets did not apply to receivers and trustees in bankruptcy of insolvent companies, given the paramountcy of the Bankruptcy and Insolvency Act (the “QB Decision“).

Both the Alberta Energy Regulator (the “AER“) and the Orphan Well Association (“OWA“) have taken steps to appeal the QB Decision to the Alberta Court of Appeal. Although the QB Decision currently represents the law in Alberta with respect to how receivers and trustees take possession of and sell oil and gas assets in Alberta, the pending appeal will likely create uncertainty in the industry that will limit how comfortable insolvent companies and  receivers feel relying upon the QB Decision in renouncing wells and facilities. As we noted in our May 2016 bulletin, caution may continue to delay these activities until a decision on an appeal is made.

by Caireen Hanert, Kourtney Rylands and Adam Maerov

A Cautionary Note

The foregoing provides only an overview and does not constitute legal advice. Readers are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained.

© McMillan LLP 2016

Insights (5 Posts)View More

Featured Insight

Update for Federal Employers: What’s in Store For 2024

Federal employers should be preparing for key dates upcoming in 2024, including updates to the Canada Labour Code and a key deadline under the Pay Equity Act.

Read More
Dec 6, 2023
Featured Insight

Getting the Deal Through – Cartel Regulations 2024

The 24th edition of Lexology GTDT’s Cartel Regulation is the most current and comprehensive source of information about cartel laws and enforcement around the world.

Read More
Dec 5, 2023
Featured Insight

Transformative Change: Your Guide to Canada’s Breathtaking Competition Act Changes

We provide a summary of far-reaching Competition Act amendments proposed in 2023.

Read More
Dec 5, 2023
Featured Insight

Class Actions May Now Be Easier to Defeat in Ontario

It is now clear: the revised preferability analysis under the amended Class Proceedings Act is a strict, more onerous hurdle for plaintiffs to satisfy.

Read More
Dec 4, 2023
Featured Insight

R. vs Greater Sudbury Webinar

Following a brief overview of the case and the SCC’s split decision, this discussion will focus on the implications of the decision to the roles and responsibilities of each project party, including the owner, contractor and design consultant (architect and engineer). The discussion will be interactive and will include an extensive Q&A period.

Details
Wednesday, December 13, 2023