Operator Granted Summary Judgment Against Producer For Disputed Invoice Amounts

A gas facility operator was recently awarded summary judgment for its unpaid invoices, even though the non-paying producer disputed the amounts owing and claimed various set-offs. In SemCAMS ULC v Blaze Energy Ltd, 2015 ABQB 218 [SemCAMS], the Court accepted that the various contracts between the operator, SemCAMS ULC, and the producer, Blaze Energy Ltd., entitled SemCAMS to payment, albeit subject to Blaze’s right to seek a future adjustment of amounts owing. The decision confirms the “pay first, dispute later” structure of many oil and gas industry agreements, and is likely to impact other Alberta natural gas producers and facility operators to the extent they are subject to similar contracts.