A recent decision out of the Alberta Court of Appeal1 found that as soon as a company handed over their investigative reports to regulators in connection with a pipeline incident, privilege over the reports was lost.
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Redwater ).
Redwater is
now a sentinel decision for the energy industry in Alberta,
confirming the importance of environmental, reclamation and
remediation obligations and liabilities. In
Redwater,
the SCC determined that a trustee in bankruptcy is not permitted to
renounce uneconomical oil and gas assets and leave these assets to
be remediated by the Orphan Well Association
(
OWA ) to avoid the environmental
liabilities of the estate it is administering.
Following the
Redwater decision and since
early 2020, Alberta committed to actively reducing the inventories
of orphan and inactive well sites in the province. According to
the OWA, as of January 1, 2021, orphan inventory