In this decision, the Alberta Court of Queen's Bench dealt
with the interpretation of a right of first refusal contained in a
joint venture agreement.
Canlin Resources Partnership, Husky Oil Operations Limited and
Canadian Natural Resources Limited were joint venture participants
in the Erith Dehydration and Flow Splitter Facility (Facility) and
successor parties to the Construction, Ownership and Operation
Agreement (Agreement) that governed the operations of the Facility.
Between 2014 and 2016, Husky had shut down and decommissioned the
dehydrator unit of the Facility and installed a "jumper"
pipeline that bypassed the inlet separation and flow splitter unit.
Since 2016, the gas that was previously processed at the Facility
was flowed to, and processed at, a different facility instead.
Although Canlin had pressed for the Facility to become operational
and had expressed interest in assuming