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ARTICLE · 15 NOVEMBER 2019

Completion Risk, Legal Uncertainty And Federal Energy Projects

Stikeman Elliott LLP
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Recent studies have shown a high level of completion risk for energy projects subject to federal jurisdiction.

CanadaEnergy and Natural Resources
Glenn Cameron
Glenn Cameron
Rachel Hutton
Rachel Hutton
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  • Recent studies have shown a high level of completion risk for energy projects subject to federal jurisdiction.
  • By some measures, up to 40% of all projects seeking federal approvals are withdrawn or terminated by sponsors or rejected by regulators.
  • For the largest and most controversial energy projects, the overall completion risk may be even higher.
  • We explore the ways in which legal uncertainty contributes to this risk.

Completion Risk: Background

In The Fate of Projects, by Marla Orenstein, the Director of the Natural Resources Centre at the Canada West Foundation, it is clear the completion risk for projects in Canada that are subject to federal project reviews is significant. See Marla Orenstein, “What Now? The Fate of Projects”, Canada West Foundation, November 2018.

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