Redwater Energy - Take 3

The Supreme Court of Canada has granted leave to appeal to the Alberta Energy Regulator and the Orphan Well Association to appeal the Alberta Court of Appeal's decision in Orphan Well Association v Grant Thornton Limited (2017 ABCA 124).

As described 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) 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").  The Alberta Energy Regulator and the Orphan Well Association appealed the QB Decision to the Alberta Court of Appeal.  The Alberta Court of Appeal dismissed the appeal in a 2-1 decision.