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“Redwater Decision” Being Reviewed by Supreme Court of Canada

Fort McMurray, AB, Canada / MIX 103.7
"Redwater Decision" Being Reviewed by Supreme Court of Canada

The Supreme Court of Canada will review a decision that allows bankrupt oil companies to walk away from cleaning up abandoned mines.

Back in July, the Alberta Energy Regulator and Orphan Well Association had appealed the “Redwater Decision.”

Along with allowing these companies to avoid responsibilities with their wells, they can also disclaim unprofitable assets.

“For the past two years, we have worked very hard at all levels of court to ensure the consequences of the Redwater decisions are fully understood,” said Jim Ellis, AER President and CEO, in a release.

“The decision allows creditors to benefit at the expense of the environment and responsible companies by permitting receivers to avoid regulatory requirements that were put in place to protect the public and environment.”

On Thursday, Canada’s top court announced they would hear the two companies appeals.

Since the Redwater Decision came into effect in May 2016, around 1,600 AER-licensed sites have been disclaimed by receivers – with estimated liabilities around $100 million.

According to the AER, the governments of Alberta, British Columbia, and Saskatchewan, as well as the Farmers’ Advocate Office, and the Dene Tha’ First Nation have already supported the application.

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