The Court also considered whether a security interest granted by
Shamrock Oil & Gas Ltd. ("Shamrock") in all of its
present and after acquired personal property pursuant to a general
security agreement ("GSA") included a petroleum and
natural gas lease it held for the development of an oil well.
Shamrock contended that the authority of a receiver only
extended to personal property but not to the lease or sale of the
well. Shamrock submitted that the lease was a profit à prendre, which was an
interest in land excluded under the Personal Property Security
Act (Alberta) (the "PPSA"). The Court found that the
lease was a property interest covered by the PPSA and the GSA,
relying heavily on the Supreme Court of Canada's reasoning in
Saulnier v. Royal Bank of Canada,
2008 SCC 58. In that case, the Supreme Court of Canada considered
the term "property" in the context of a commercial
fishing license under the BIA and the Nova Scotia PPSA. In its
reasoning, the Supreme Court of Canada stated that "the
subject matter of the license (i.e. the right to participate in a
fishery that is exclusive to license holders) coupled with a
proprietary interest in the fish caught pursuant to its terms,
bears a reasonable analogy to rights traditionally considered at
common law to be proprietary in nature ...". In this instance,
the Court noted that the oil and gas lease was analogous, as
Shamrock had a licence to access, drill and extract substance from
the ground which was coupled with a proprietary interest under the
licence in the extracted resource. Such right was transferable, and
fell within the power and authority of the receiver, subject to the
terms of the oil and gas lease with the Crown.
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The Canadian bankruptcy regime was designed with two key purposes in mind – provide options to ‘honest but unfortunate' debtors struggling with an unmanageable financial load and create an orderly means for creditors to recover amounts owed them.
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