Redwater SCC Leave Decision

Introduction

The Redwater Energy Corporation (Redwater) saga endures as the issues in the case continue to loom large in the Alberta oil and gas industry and the Federal bankruptcy regime. On Thursday, November 9, 2017, the Supreme Court of Canada granted leave to appeal the Alberta Court of Appeal's decision on the matter on an expedited basis. The crux of this case, followed very closely by the Canadian oil and gas industry, is whether the provincial regulatory regime conflicts operationally with the federal Bankruptcy and Insolvency legislation. The Alberta Court of Appeal upheld the Alberta Court of Queen's Bench decision that a receiver and a trustee in bankruptcy are permitted to renounce or disclaim an insolvent debtor's interest in unproductive oil and gas assets, including those subject to abandonment and reclamation obligations and orders.