News & Analysis as of

Oil & Gas Orphan Wells

Bennett Jones LLP

Supreme Court of Canada Dismisses Leave-on-Leave in Mantle Materials Group: The Priority of Environmental Obligations Extends...

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In late May, the Supreme Court of Canada (the SCC) denied an application for leave to appeal a decision of the Court of Appeal of Alberta (the ABCA), which, in turn, had denied leave to appeal of the decision of the Court of...more

Bennett Jones LLP

Redwater Reigns: SKCA Affirms Redwater's Applicability After Failed CCAA

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The Saskatchewan Court of Appeal has confirmed that the Supreme Court of Canada’s decision in Orphan Well Association v. Grant Thornton Ltd., 2019 SCC 5 [Redwater], applies in Saskatchewan.  The Court of Appeal also affirmed...more

Houston Harbaugh, P.C.

Repurposing Oil and Gas Wells for Renewable Energy in Pennsylvania Raises Multiple Legal Issues

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The potential for repurposing old oil and gas wells for renewable energy raises a number of complex legal issues in Pennsylvania. In recent years, the federal government has been exploring renewable energy generation by using...more

Houston Harbaugh, P.C.

Landowners Should Be Careful Before Making Representations About Prior Oil and Gas Development on their Property

Houston Harbaugh, P.C. on

Before signing oil and gas leases, landowners should pay close attention to lease provisions asking for warranties and representations about prior oil and gas development on the land. These provisions are often buried in a...more

Brownstein Hyatt Farber Schreck

New Federal Funding to Plug and Abandon Orphaned Wells, Support CO2 Sequestration

Last year, the Department of Interior (DOI) updated its estimate of the number of orphaned or abandoned wells across the United States, documenting 130,000—more than double its previous estimate. The bipartisan 2021...more

Opportune LLP

A Cost Benefit Analysis of Increased OCS Bonding

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The Opportune 2023 Study has been conducted to independently calculate the OCS plugging and abandonment (P&A) liability, assess the risk such liability poses to the U.S. taxpayer, and perform a cost-benefit analysis of how...more

Bradley Arant Boult Cummings LLP

Abandoned and Orphaned Wells: How to Reduce Risks and Minimize Environmental Impacts

For more than 100 years, companies and private landowners in the United States have drilled tens of millions of wells to extract oil and gas. When oil and gas wells reach the end of their productive lifespans, the owners and...more

Bennett Jones LLP

Saskatchewan Court of King's Bench Rejects Rural Municipality's Attempts to Elevate Priority in Receivership

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The Court of King's Bench for Saskatchewan has rejected another attempt by a rural municipality to gain priority in an oil and gas receivership. This follows the recent Alberta Decision in Orphan Well Association v Trident...more

Bennett Jones LLP

Saskatchewan Makes it Easier to Adopt Orphan Wells

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Two recent insolvencies have resulted in the number of orphaned wells and facilities in Saskatchewan ballooning to over 4000. To reduce the burden on the Saskatchewan orphan fund, The Oil and Gas Tenure Registry Regulations...more

Mitchell, Williams, Selig, Gates & Woodyard,...

Orphaned Oil and Gas Wells/Infrastructure Law: U.S. Department of Interior Issues Final Guidance for State Funding Applications

The United States Department of Interior (“DOI”) released on April 12th guidance (“Guidance”) to the states for application of the first $775 million in initial grant funding for plugging orphaned oil and gas wells. The...more

Bennett Jones LLP

Alberta Court of Appeal Confirms Environmental Liabilities Must be Addressed in Priority to Builder

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On March 30, 2022, the Alberta Court of Appeal issued its much anticipated decision in Manitok Energy Inc (Re), 2022 ABCA 117 [Manitok ABCA] which considered whether, as a result of the Supreme Court of Canada's decision in...more

Bennett Jones LLP

Court of Appeal Clarifies Treatment of Asset Retirement Obligations

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On March 25, 2022, the Alberta Court of Appeal issued its decision in PricewaterhouseCoopers Inc v Perpetual Energy Inc, 2022 ABCA 111. Briefly, the Court held that abandonment and reclamation obligations (ARO) of oil and gas...more

Mayer Brown

Energy Tax Implications of New Infrastructure and Tax Plans

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The American Jobs Plan - On March 31, 2021, the Biden administration released the American Jobs Plan (the “Infrastructure Plan”), which is a proposal that, if ultimately enacted, aims to modernize outdated infrastructure,...more

Bennett Jones LLP

Alberta Announces New Liability Management Framework

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On July 30, 2020, the Government of Alberta announced that it will introduce a new oil and gas Liability Management Framework over the coming months. The framework is intended to accelerate the responsible reclamation of oil...more

Bennett Jones LLP

British Columbia Announces Funding to Clean Up Orphan and Inactive Wells

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On May 13, 2020, British Columbia announced how it will administer the $120 million in federal funds earmarked to clean up orphaned and inactive oil and gas wells under COVID-19 Economic Response Plan for the Canada's Energy...more

Opportune LLP

Will Low Oil Prices Accelerate Number Of 'Orphaned' Oil & Gas Wells In Texas?

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Find out why the recent collapse in oil prices will likely accelerate the number of "orphaned" wells needing to be plugged by the Texas Railroad Commission (TRCC)....more

Flaster Greenberg PC

Marcellus Shale Update: Is West Virginia Prioritizing The Past Over The Future?

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West Virginia Governor Jim Justice made one of the most curious gubernatorial moves in recent years recently, when he vetoed a bill that would have directed money to plug the Mountain State’s approximately 4,000 abandoned gas...more

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