ARTICLE · 30 JUNE 2016

Alberta Energy Regulator Releases Interim Measures In Response To Redwater Decision

Dentons Canada LLP

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On May 19, 2016, the Alberta Court of Queen's Bench issued their decision, Redwater Energy Corporation Re, 2016 ABQB 278 ("Redwater Decision"), which we discussed in our recent alert...

CanadaInsolvency/Bankruptcy/Re-Structuring

Patrick Burgess

George Antonopoulos

David Mann

David LeGeyt

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On May 19, 2016, the Alberta Court of Queen's Bench issued their decision, Redwater Energy Corporation Re, 2016 ABQB 278 ("Redwater Decision"), which we discussed in our recent alert, " Insolvency and energy insights: The Redwater decision". The Alberta Energy Regulator (AER) and the Orphan Well Association (OWA) have since appealed the decision.

On June 20, 2016, in response to the Redwater Decision that, among other things, affirmed the ability of receivers and trustees in insolvency proceedings to selectively disclaim uneconomic assets (and their associated abandonment and reclamation obligations) in accordance with the Bankruptcy and Insolvency Act (BIA), the AER released Bulletin 2016-16, "Licensee Eligibility – Alberta Energy Regulator Measures to Limit Environmental Impacts Pending Regulatory Changes to Address the Redwater Decision" (the Bulletin). The Bulletin outlines interim measures being implemented by the AER to minimize risks to Albertans pending

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