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ARTICLE · 14 NOVEMBER 2023

Environmental Obligations Trump Lenders: The Trend Continues

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The Court of King's Bench of Alberta decision in Re Mantle Materials Group, Ltd ("Mantle") continues a recent trend in Alberta in which environmental remediation obligations are found to have priority over the interests...

CanadaEnvironment
Adam Maerov
Adam Maerov
Talia Gordner
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Ryan Johnson
Ryan Johnson
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The Court of King's Bench of Alberta decision in Re Mantle Materials Group, Ltd ("Mantle") 1 continues a recent trend in Alberta in which environmental remediation obligations are found to have priority over the interests of secured creditors. This bulletin provides an overview of the Mantle decision and updates our previous bulletin (found here), which addressed the intersection of environmental protection and secured creditor rights in Canada.

An Overview of Mantle

Mantle Materials Group, Ltd. ("Mantle") operated fourteen gravel pits on public land and ten gravel pits on private land in Alberta pursuant to surface material leases issued by Alberta Environment and Protected Areas ("AEPA"). Such surface material leases require its holder to complete certain environmental reclamation obligations at the end-of-life of the gravel pits. These obligations were secured by a $1 million dollar financial assurance held by AEPA. In 2021, Mantle acquired business related

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The foregoing provides only an overview and does not constitute legal advice. Readers are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained.

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