Just over a month after the SCC handed down its
precedent-setting decision in Redwater (Orphan Well
Association v. Grant Thornton Ltd. 2019 SCC 5), companies are
still scrambling to understand exactly how this will impact their
operations moving forward. While the oil and gas sector will
inevitably feel the full brunt of the decision, they're not the
only industry set to suffer. Industries like mining, power, lumber,
pulp and paper, and any one where the provinces legislate on
abandonment, reclamation and remediation are all set to be
impacted.
There's no doubt Alberta's junior and mid-size oil and
gas producers are the biggest losers out of the decision. The
decision comes after what has been a rough run for many of these
companies, and there is no certainty of a sunnier day around the
corner.
