Today the Supreme Court of Canada released its ruling on the Redwater appeal.
The Canadian Association of Petroleum Producers has issued the following statement.
“The Canadian Association of Petroleum Producers is encouraged with today’s decision from the Supreme Court of Canada. CAPP has argued on behalf of industry that when a company declares bankruptcy, the value of any assets should go to abandonment and reclamation costs first. The Orphan Well Association, which is funded by industry, should be a last resort and only used after all other sources of funding are exhausted. CAPP believes that this judgment restores the balance between environmental obligations and creditor interests to that which existed for many years before this case. CAPP will continue reviewing the details of the judgment to assess the full implications of the ruling.” – Brad Herald, Vice-President Western Canada Operations – CAPP.
Note: RedWater Energy Corp., a junior oil and natural gas company, engages in the acquisition, exploration, development, and production of petroleum and natural gas in Western Canada. It focuses on developing light oil opportunities in Alberta. The company was founded in 2009 and is headquartered in Okotoks, Canada. (Bloomberg)