Canada's Aging Oil & Gas Infrastructure: Who Will Pay?

A significant portion of Canada's oil and gas infrastructure is fast approaching its functional end of life. In Alberta, Canada's largest oil and natural gas producing province, approximately 30% of its pipelines are greater than 25 years old, while 5% are greater than 50 years old. The potential environmental and other liabilities associated with this infrastructure, from both a regulatory and civil perspective, are significant. As the frequency of environmental incidents involving this infrastructure increases, complex legal and practical issues will begin to emerge at an accelerating pace, which will have to be addressed.

With respect to Alberta's legislative and regulatory framework, on June 17, 2013, the Responsible Energy Development Act ("REDA") was proclaimed in force.¹ With the implementation of the final of three phases on March 31, 2014, the Alberta Energy Regulator ("AER") has, under REDA, become Alberta's single regulator² of energy developments situated