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 that orders made in failed proceedings in Alberta under the Companies Creditors Arrangement Act did not have effect in subsequent receivership proceedings in Saskatchewan. The Court held that the CCAA proceedings did not impose payment obligations on Bow River outside of the statutory requirements already present. Additionally, the CCAA proceedings did not establish a trust that favored the Rural Municipalities.
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 have recently been amended to authorize the Administrator of Oil and Gas Tenure in the Lands and Mineral Tenure Branch of the Ministry the Administrator to assign or convey a lease that is currently held by a holder that is insolvent, bankrupt, defunct or cannot be located.