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.
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 Exploration Corp, 2022 ABKB 839, where the Alberta Court of King s Bench confirmed that the abandonment and reclamation obligations owed to the Orphan Well Association and the Alberta Energy Regulator rank in priority to claims of municipalities for unpaid property taxes in insolvency proceedings.
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.