Indigenous Group: Multiple First Nations and Métis communities

Business: Redwater Energy Corp Receiver

Issue: In May 2016, the Court of Queen’s Bench of Alberta stated that the receivers and trustees who manage company bankruptcies can avoid complying with provincial legislation, ignoring environmental and public safety obligations, in order to maximize profit for secured creditors.

Comment: Alberta Energy Regulator – In Alberta, companies must be responsible and properly abandon the infrastructure and reclaim the site after ceasing activities. From the Alberta Energy Regulator’s (AER’s) perspective, the repayment of loans should not come at the expense of public safety and the environment.

Last Update: Feb. 14, 2018: Alberta Energy Regulator – Alberta’s approach to managing liability was built to balance multiple interests: environmental protection, public safety, landowner interests, investment, royalties, jobs, market volatility, to name a few. They have also made sure there is a safety net. As a last resort, they have the Orphan Well Association, an industry-funded organization that abandons and reclaims infrastructure left behind when companies go bankrupt.

The Redwater case has turned the very foundation of that system—the provincial legislation that says polluters must pay to clean up their mess—on its head. If this decision is upheld by the Supreme Court of Canada, we—and every other regulator in Canada—will no longer be able to hold companies accountable for cleaning up their mess.