Wednesday, May 10, 2017

Let's Get That $30 Million Working For The Alberta Public !-------“The AER has acted unlawfully and with intent to cause harm to Lexin,” the lawsuit states. “As a result of the AER’s actions, Lexin has suffered damages to its business.”------



From: Stewart Shields <
Date: Wed, May 10, 2017 at 5:17 PM
Subject: Let's Get That $30 Million Working For The Alberta Public !
To: premier@gov.ab.ca, justin.trudeau@parl.gc.ca, brian mason <brian.mason@assembly.ab.ca>, dunvegan.centralpeace.notley@assembly.ab.ca, letters <letters@edmontonjournal.com>, Office of the Premier <brad.wall@gov.sk.ca>, thomas.mulcair@parl.gc.ca
Cc: Calgary MountainView <Calgary.MountainView@assembly.ab.ca>, calgary.currie@assembly.ab.ca, Debbie carlson <edmonton.ellerslie@assembly.ab.ca>, Doreen Mueller <Doreen.Mueller@justice.gc.ca>, edmonton.goldbar@assembly.ab.ca, edmonton.riverview@assembly.ab.ca, ENV Minister <ENV.Minister@gov.bc.ca>, goodale <goodale.r@parl.gc.ca>, grande prairie <grandeprairie.wapiti@assembly.ab.ca>, innisfail <innisfail.sylvanlake@assembly.ab.ca>, Lacombe Ponoka <Lacombe.Ponoka@assembly.ab.ca>, lethbridge.east@assembly.ab.ca, Ministerial Unit <MCU@justice.gc.ca>, raitt <raittl@parl.gc.ca>, Strathmore Brooks <Strathmore.Brooks@assembly.ab.ca>, T Banks <>, Tom <


I think we need a further response from our Alberta government with respect to the $30 million dollars gifted to Alberta by our federal liberal government?  This piece in the Calgary Herald is just more info describing the fact that the Alberta Orphan Well Fund may be involved in courts for years sorting out who really has wronged the Alberta public!!  We need to invest the $30 million to prevent the chance of loosing from having idle money not working as intended by the federal liberals?  Housing would be a great place to invest $30 million realizing there would be many structures around after the $30 million was gone -paying an income for Albertans for years to come!!  Many Albertans support a completely different manner in managing the public’s petroleum properties where the owners of the property would be given quarterly accounts of where every dime came from and where every cent was spent!! I really admire the change that has come over our public bank since it changed from being managed as our petroleum industry is at present to become a Crown Corporation with little for scandal- and acting as a professional business should!! It did indeed clean-up nicely!!  Alberta public have no equal to industries CAPP that act solely for the benefit of the petroleum producer? This becomes crucial during hearings- when every entity imaginable have a table of lawyers present except the public owners who the suits explain never attend hearings to defend their rights??  Change can’t come soon enough!!
Stewart Shields

Lexin Resources sues Alberta energy watchdog for $200M in counterclaim

Published on: May 8, 2017 | Last Updated: May 8, 2017 6:11 PM MDT
The Mazeppa facility sits dormant on March 30 as Alberta's energy watchdog proceeds with action enforcement that includes forcing the plant's licensee, Lexin Resources, into receivership.
The Mazeppa facility sits dormant on March 30 as Alberta's energy watchdog proceeds with action enforcement that includes forcing the plant's licensee, Lexin Resources, into receivership. -
An embattled oil and gas company forced into receivership by Alberta’s energy watchdog has filed a $200-million lawsuit against the regulator, accusing it of acting “unlawfully and with intent to cause harm.”
Lexin Resources Ltd. has been at loggerheads with the Alberta Energy Regulator for more than a year over the watchdog’s orders calling for spill cleanup and infrastructure repairs, along with its demand for levies and security deposits.
After losing confidence in Lexin’s ability to safely manage its properties, the regulator shut the company down in February, launched a $1-million lawsuit and forced the junior natural gas producer into receivership.
Lexin is already appealing the receivership, but the company has raised the stakes with a counterclaim seeking $200 million, plus $1 million in “punitive and exemplary damages.”
“The AER has acted unlawfully and with intent to cause harm to Lexin,” the lawsuit states. “As a result of the AER’s actions, Lexin has suffered damages to its business.”
None of the claims have been proven. The energy regulator said it disputes the allegations.
Lexin ran a sour gas processing plant in Mazeppa northeast of High River and nearly 1,400 wells across Alberta before the shutdown in February.
A central argument in its litigation with the regulator is the company never intended to be the license holder for the processing plant, but the regulator “coerced” it into taking over the license from an affiliate.
The company claims the regulator had threatened to revoke the Mazeppa plant’s license entirely unless LR Processing Ltd., an affiliated company, transferred the license to Lexin in 2013.
According to the company’s counterclaim, the watchdog took issue with the structure of oil and gas licenses held by Lexin and its affiliates.
The company says it applied for the transfer “reluctantly” but claims the move was “illegal,” because Lexin allegedly didn’t have a working interest in the plant when it took over the license, violating oil and gas legislation.

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Michael Smith, a Lexin director, said in a sworn affidavit in July 2016 as part of unrelated litigation that LR Processing — the company that held the license prior to the transfer and used to be called MPP Ltd. — is a Lexin subsidiary.
As a result of the license transfer, Lexin took on additional liabilities, which meant it had to pay more to offset the costs of future cleanup. When the company didn’t pay, the regulator issued orders garnishing funds from the company’s income, which Lexin said damaged its ability to run its business.
“The AER’s actions have been undertaken in bad faith, in breach of the AER’s statutory duties, and constitute an unlawful interference with Lexin’s economic relations,” the counterclaim alleges.
The regulator denies the allegations, saying oil and gas license transfers are voluntary. In a statement to Postmedia, it said even though the transfer occurred in 2013, the regulator wasn’t made aware of any dispute until three years later.
The watchdog said it told Lexin at the time, in 2016, that the company could transfer the disputed license to another party with a working interest in the Mazeppa plant.
“To date, the company has not submitted an application for transfer.”
rsouthwick@postmedia.com


Lisa O'Connor
So they don't have enough money to maintain the safety of their lines, or keep key staff, but they've got enough money to sue the organization the public funds to try to hold them to basic safety standards? Figures.
UnlikeReply2May 8, 2017 9:15pm
Julie Ali · 
I am curious how the folks at Lexen are able to sue the AER. I thought the PCs made the energy regulator immune from lawsuits.

http://www.canadianenergylaw.com/.../supreme-court-of.../

The AER applied to strike Ms. Ernst’s claim on the basis that section 43 of the Energy Resources Conservation Act (ERCA) barred her claim. Section 43 provides as follows:
Protection from action
43. No action or proceeding may be brought against the Board or a member of the Board or a person referred to in section 10 or 17(1) in respect of any act or thing done purportedly in pursuance of this Act, or any Act that the Board administers, the regulations under any of those Acts or a decision, order or direction of the Board.
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