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ARTICLE · 25 JUNE 2024

Extending The Redwater Super-Priority Principle Beyond The Oil And Gas Industry

Blake, Cassels & Graydon LLP
Blake, Cassels & Graydon LLP
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On May 30, 2024, the Supreme Court of Canada (SCC) denied leave to appeal in Travelers Capital Corp. v. Mantle Materials Group, Ltd. This case confirms...

CanadaEnvironment

On May 30, 2024, the Supreme Court of Canada (SCC) denied leave to appeal in Travelers Capital Corp. v. Mantle Materials Group, Ltd. This case confirms that the regulatory super-priority established by Orphan Well Association v. Grant Thornton Ltd. (Redwater) extends beyond the oil and gas industry, while opting not to clarify the line between assets related and unrelated to an environmental condition.

In 2023, the Alberta Court of King's Bench (ABKB) issued the chambers decision Re Mantle Materials Group, Ltd. (Mantle). It held that Alberta Environment and Protected Areas (AEPA) had a super-priority over secured creditors for the reclamation obligations of a gravel extraction business.

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