- Grant Thornton LLP welcomes Millard, DesLauriers & Shoemaker LLP
- Grant Thornton LLP partners with Pegasystems Inc.
- Grant Thornton LLP welcomes The Raber Mattuck Group
- Sedgwick Post & Hogg Joins Forces with Grant Thornton LLP
- Skrypnyk Group joins Grant Thornton effective February 1st
- Grant Thornton welcomes Berg Lehmann of the West Kootenay region to the firm
- Grant Thornton welcomes Grayling Business Consulting to the firm
- Cooke Aquaculture Inc., winner of the 2018 Private Business Growth Award
- Grant Thornton LLP expands Management Consulting portfolio by joining with GrowthPoint Advisory Services Inc.
- Months of hard work, a lifetime of rewards.
- Months of hard work, a lifetime of rewards.
- Private Business Growth Award 2018 - Finalists
- Grant Thornton and TheCannalysts host WE Cann™2018
- MacPherson Roche Smith joins Grant Thornton LLP
- Grant Thornton and Volta unite to help grow Canadian startups
- Grant Thornton LLP Canada welcomes Drew Lee-Hai to the firm
- The search is on for Canada’s top private business!
- New Partners and Principals
- MM&P LLP joins Grant Thornton effective March 1st
- 2019 Canadian Federal Budget
- Grant Thornton LLP welcomes BVA LLP
- Grant Thornton LLP welcomes Cogent Chartered Professional Accountants LLP of Saskatchewan
- Grant Thornton LLP welcomes Presley & Partners
- Friesen Pankratz & Associates LLP of Abbotsford joins Grant Thornton LLP
- Partridge Iggulden LLP joins Grant Thornton LLP
- Grant Thornton LLP welcomes Sylvie D. Levesque, CPA, CA to the firm
- Grant Thornton LLP named one of the 2020 Best Workplaces for Inclusion
- Grant Thornton CEO Kevin Ladner Reappointed for Second Term
- Grant Thornton LLP Grows Atlantic Region Team
- New Partners and Principals 2020
Grant Thornton LLP, a leading Canadian accounting and advisory firm, announces that in a pivotal decision released May 19, 2016 the Court of Queen’s Bench of Alberta ruled in favour of Grant Thornton Limited, the Receiver and Trustee in the Redwater Energy Corporation (Redwater) receivership and bankruptcy proceedings, upholding its right to disclaim Redwater’s non-producing oil wells and sell its producing ones.
Calgary, AB - May 20, 2016
The decision, rendered by the Honourable Neil C. Wittmann, Chief Justice of the Court of Queen’s Bench of Alberta, dismissed the application of the Alberta Energy Regulator (AER) and Orphan Well Association, which argued that Grant Thornton should have to carry out the abandonment, reclamation and remediation obligations of Redwater’s non-producing wells, or perform abandonment orders as issued by the AER, which included paying a security deposit.
Specifically, Chief Justice Wittmann found, based on the constitutional doctrine of federal paramountcy, that:
- There is an operational conflict between section 14.06(4) of the Bankruptcy and Insolvency Act (BIA) and the provincial Oil and Gas Conservation Act (OGCA) and the Pipeline Act (PA) in that under section 14.06(4), the Receiver and Trustee are permitted to disclaim the non-producing wells of Redwater, and under the provincial OGCA and PA, they are not. These provisions also frustrate the purposes of section 14.06(4) because they prevent the Receiver and Trustee from disclaiming the non-producing wells, which provide no economic benefit to the creditors and could put the Receiver and Trustee at personal financial risk.
- The AER’s requirement that the Receiver and Trustee either carry out the abandonment, reclamation and remediation obligations of Redwater in respect of the non-producing wells, or perform abandonment orders issued by the AER, frustrates the purpose of section 14.06 as it creates a priority in favour of the AER over any other claim against Redwater, including the Receiver’s fees and disbursements, the Receiver’s borrowings under receiver’s certificates, the Trustee’s fees and disbursements, and the claims of the secured creditors (the Creditor Claims).
- The AER’s requirement that either a security deposit is paid or the abandonment obligations are performed as a condition precedent to the AER agreeing to approve an application to transfer the licenses issued by the AER to Redwater frustrates the legislative purposes of section 14.06(5), (6), (7) and (8) of the BIA by requiring that those claims be paid before any Creditor Claims, and by requiring that these payments be made or obligations be performed as administrative costs of the estate.
- The provisions of the OGCA and PA deeming the Receiver and Trustee to be licensees of disclaimed wells were declared inoperative to the extent they conflicted with federal legislation, as were the abandonment orders to the extent that they required the Trustee to comply with them or provide security deposits.
- The provisions of the OGCA, PA and directives thereunder, requiring the performance of abandonment obligations or payment of security deposits in respect of disclaimed wells, as a condition precedent to obtaining the AER’s approval of applications to transfer well licenses, were also inoperative on the basis that they frustrated section 14.06.
- the sales process was approved, pursuant to which the Receiver is to market and sell the producing wells of Redwater together with other assets. It is the intention of the Receiver to commence the sales process without further delay.
A copy of the reasons for judgment of Chief Justice Wittmann are posted on the Grant Thornton website at http://www.grantthornton.ca/services/reorg/creditor_updates/redwaterenergy
About Grant Thornton LLP in Canada
Grant Thornton LLP is a leading Canadian accounting and advisory firm providing accounting, audit, tax and advisory services to private and public organizations. We help dynamic organizations unlock their potential for growth by providing meaningful, actionable advice through a broad range of services. Grant Thornton LLP is a Canadian member of Grant Thornton International Ltd, whose member and correspondent firms operate in over 130 countries worldwide. A listing of Grant Thornton offices and contact information can be found at: www.GrantThornton.ca.