Bankruptcies Archives

Why AIMCo needs more scrutiny and transparency Part 2

6Nov

By Bob AscahNo Comments

Agencies, Bankruptcies, Fiscal History, Government Finances, Investment, Politics

Why AIMCo needs more scrutiny and transparency Part 2

Updated 6 November 2024 Note to readers: On 6 November the Standing Committee on the Alberta Heritage Savings Trust Fund (AHSTF) will be holding its annual public meeting at 6:30 p.m. in the Rocky Mountain Room, 2nd Floor of the Queen Elizabeth II Building in Edmonton. The annual public meeting is open to members of the public either in person or via social media including Facebook. I attended the last two meetings in person and have been able to raise important questions of policy. In the 2022 meeting (transcript here), I was the only member of the public present in person. In 2023, I was pleased that there were nine members of the public raising uncomfortable questions which generally were deflected by officials of Alberta Treasury Board and Finance (TBF) and senior Al...

30Jan

By Bob Ascah2 Comments

Bankruptcies, Banks, Employment, Energy, Environment, Politics, Uncategorized

Smith as CEO Alberta Enterprise Group to Savage: 29 July 2021- “RStar”

Below is the full text of the letter from then AEG President Danielle Smith to then Energy Minister Sonya Savage concerning a proposed royalty credit for legally required environmental remediation. Analysis of letter is below. ALBERTA ENTERPRISE GROUP 11626-119 Street Edmonton, AB T5G 2X7 July 29, 2021 Minister Sonya Savage Minister of Energy 394 Legislature Building 10800-97 Avenue Edmonton, AB T5K 2B6 Dear Minister Savage: It was a pleasure meeting with you to discuss a pilot project this fall, to test out the RStar program as a new approach to address the issue of decommissioning and closing inactive wells. I would like to summarize our conversation as you are working with your department officials to understand why this pilot project is so important to our membe...

9May

By Bob Ascah1 Comment

Bankruptcies, Energy, Environment, Loan Losses

Follow the Money- if you can

Updated 13 May 2020 and 4 August 2020 In this post, I return to the receivership of Trident Exploration and the various "legal fictions" used including: Trident Limited Partnership, Trident Exploration (Alberta) Corp., Trident Exploration (Aurora) Limited Partnership I, Trident Exploration (2006) Limited Partnership I, and Fenergy Corp. Trident was a debtor to two provincial agencies: ATB Financial (ATB) and Alberta Investment Management Corporation (AIMCo). The Creditors Trident was placed into receivership in May of 2019 and attracted considerable attention because of the large number of unproductive wells and its vast reclamation obligations. The 177 page affidavit of Yvette Kennedy, Chief Administrative Officer of the Town of Stettler initiated the receivership process. AIMCo and A...

Federal Energy Program Finally Announced- Analysis/Opinion

20Apr

By Bob AscahNo Comments

Bankruptcies, Banks, Energy, Energy, Environment, Opinion/Research, Politics

Federal Energy Program Finally Announced- Analysis/Opinion

Belated Announcement On Friday, 17 April, the anxiously awaited federal program to support the oil and gas industry was announced by Natural Resources Minister Seamus O’Regan (pictured). Details were minimal despite weeks of waiting. As anticipated, much of the money was directed at orphan well clean up in Alberta, Saskatchewan and British Columbia. The amount- $1.75 billion was substantial and included $75 million for the offshore sector. In addition, $750 million was allocated to “create a new Emissions Reduction Fund to support workers and reduce emissions in Canada's oil and gas sector, with a focus on methane.” The announcement noted that the measure will maintain about 5,200 jobs in Alberta alone. In addition, loans would be provided through the Business Development Bank to qualifyin...

Further Reflections on Orphan Well Association v. Grant Thornton (Redwater)

27Feb

By Bob AscahNo Comments

Bankruptcies, Banks

Further Reflections on Orphan Well Association v. Grant Thornton (Redwater)

Originally posted 28 February 2019 At the Supreme Court Hearing on 15 February 2018, there were two significant interventions which, in hindsight, revealed where the Court was to land. These interventions were by Madame Justice Suzanne Côté and Madame Justice Rosalie Silberman Abella. (more…)

Supreme Court of Canada: AER 5, ATB 2 – Redwater Decision

3Feb

By Bob AscahNo Comments

Bankruptcies, Environment

Supreme Court of Canada: AER 5, ATB 2 – Redwater Decision

Originally posted 4 February 2019 On 31 January 2019, the Supreme Court of Canada handed down its decision in the Redwater Resources (Redwater Energy Corporation) case. SCC Decision The decision, by a 5-2 majority, was written by Chief Justice Richard Wagner (concurring Abella, Brown, Gascon, Karakatsanis). The 183 page judgment included a 70- page dissent by Madame Justice Suzanne Côté (concurred in by Justice Michael Moldaver). The majority opinion relied heavily upon the earlier dissent from former Alberta Court of Appeal Justice, Madame Sheilah Martin (who joined the High Court last year). ACA Decision Madame Justice Suzanne Côté The decision affirmed the right (and strategy) of the Alberta Energy Regulator (AER) to deny a Receiver, acting for a creditor, the ability to "dis...

30Jan

By Bob AscahNo Comments

ATB, Bankruptcies

Redwater Supreme Court Hearing-Part 3

Practicalities The effect upon Alberta's energy industry will be profound whichever way the Supreme Court decides. As the following exchanges illustrate, the role of the Receiver or Trustee in Bankruptcy is crucial in enabling creditors to be paid back. Justice Côté: Mr. Lenz, you are describing to us the consequences of a judgment of our Court dismissing appeal you say. In their factums the respondents are making an argument about the practical consequences of a judgment allowing the appeal….. (more…)

30Jan

By Bob AscahNo Comments

Bankruptcies

Redwater Supreme Court Hearing Part 2

Principles of Interpretation Cooperative Federalism A key objective of counsel was persuading the Court how to interpret the relationship between federal and provincial law. How do jurists address laws that appear to contradict one another? Should judges take a "narrow," textual reading of the laws or a broader view about the intent of legislatures, or the spirit of the "fathers of Confederation"? Should the Court weigh the practical effects of their judgment on the industries as a deciding factor? The OWA and its fellow appellants urged the Court to interpret the federal and provincial laws in the context of "cooperative federalism." (more…)

30Oct

By albertarecessionwatchNo Comments

Bankruptcies

Redwater Supreme Court Hearing- Part 1

Originally posted 1 November 2018 SUMMARY What were the justices asking? Stakes include who will pay for the vast environmental liabilities created by the extraction of oil and gas Outcome will determine the future structure of lending in the oil patch How is the AER's licensee liability rating system expected to work during a downturn? On Thursday 15 February 2018, I attended the hearing on the Redwater Resources case at the impressive Supreme Court Building along Wellington Street. I had hoped to produce a write-up on the questionning by the justices well before now... but life has its interruptions. (more…)

1Jul

By albertarecessionwatchNo Comments

Bankruptcies

Redwater Resources

Originally posted 1 July 2017 Since our last post on the Redwater decision, the Alberta Court of Appeal, in a two-one decision, upheld the earlier judgment of Chief Justice Neil Wittman. The judgment was rendered by Justice Frans Slatter with Madam Justice Frederica Schultz concurring. Madam Justice Sheilah Martin's dissent is the first ray of hope for the Alberta Energy Regulator (AER) and the Orphan Well Association (OWA) which has contested the Trustee in Bankruptcy's right to disclaim unproductive oil wells. The trustee, Grant Thornton LLP, acting on behalf of Alberta Treasury Branches (ATB Financial), sought only to claim the productive wells. The ultimate outcome in this case is central to the relationship between oil and gas producers and lenders and to the financial viability of...