Redwater Energy Corp. — the tiny energy company whose bankruptcy made huge waves in the oilpatch — is back in the spotlight as the Alberta Energy Regulator appeals a decision made by a lower court that gave creditors priority over the cleanup of oil wells.
The appeal was heard Tuesday in Calgary, with the Alberta Energy Regulator (AER) and Alberta’s Orphan Well Association (OWA) arguing that the lower court made a mistake last spring when it ruled that that federal bankruptcy law took priority over provincial environmental regulations.
To give a sense of the far-reaching implications of this appeal, Saskatchewan’s attorney general and B.C.’s Ministry of Natural Gas Development, supported the AER in the appeal.
The AER has long said that when a company applies for a well licence, it agrees to take on the costs of cleaning up the well at the end of its life and that obligation is not in conflict with bankruptcy law.
Tracy Johnson – CBC News – October 12, 2016.
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