The following is an overview of key developments in Canadian law
and regulatory practice applicable to private M&A in the oil
and gas industry from July 1, 2015 to September 30, 2015.
Oil & Gas Regulatory
Alberta's royalty review panel is expected
to report to the provincial government by the end of 2015. The
timing of the province's decision on a new royalty framework is
not known, but it has indicated that any royalty changes will not
be made effective until 2017.
Alberta's Climate Change Advisory Panel
completed consultations on a new provincial climate change policy
that is expected to recommend tougher rules on emissions. The
panel's report to the province is expected imminently, but it
is not known when it will be made public.
The federal department of natural resources sought
comment on draft guidelines designed to assist oil and gas
companies subject to new federal legislation requiring the
disclosure of payments made to governments.
An Alberta court upheld the no fault provisions of a drilling
services contract with the result that a producer was unable to
recover approximately $3.5 million in damages caused by the
driller's failure to properly mix drilling mud.
The Supreme Court found that an Ontario court has jurisdiction to
hear an action to enforce in Canada a multi-billion dollar judgment
of an Ecuador court against two Chevron entities - one with no
presence in Ontario another that was not party to the Ecuadorian
A B.C. court refused a taxpayer's attempt to substitute
a share transfer structure with a more tax efficient arrangement
because the taxpayer failed to prove he had a specific intention to
avoid a capital gain. A general intention to avoid taxes was not
sufficient to have the transfer unwound.
The Quebec Court of Appeal allowed an employee to recover the lost value
of unexercised options because the employer had falsely advised the
employee that his options would not expire on dismissal.
An Ontario court allowed an employee to receive severance
payments from an employer even though the employee did not disclose
during settlement negotiations with the employer that he had
breached his non-competition agreement by taking a position with a
competitor after termination.
The Competition Bureau released updated instructions for producing
electronic records in support of supplementary information
requests. It is expected that the rules will increase compliance
Under the Income Tax Act, the Employment Insurance Act, and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions or GST.
Under the Income Tax Act, the Employment Insurance Act, the Canada Pension Plan Act and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions.
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