First Decision Statement Issued Under New Canadian Environmental Assessment Act
The Federal Environment Minister issued the first Decision Statement under the new Canadian Environmental Assessment Act, 2012 (the “CEAA 2012”).The Decision Statement was issued in connection with Shell Canada’s proposed Jackpine Mine Expansion project (the “Project”). The Project has been approved by Federal Cabinet, despite findings of the Federal Environment Minister that the expansion would likely cause significant adverse environmental effects.
The Project
The Project would expand Jackpine Mine to access neighboring oil sands deposits. The expansion would include construction of processing facilities, utilities and infrastructure, and would increase bitumen production by 100,000 barrels per day. Jackpine Mine is located approximately 70 km north of Fort McMurray on the east side of the Athabasca River.
Join Review Panel Decision
A federal-provincial review panel (the “Panel”), ruled in favour of the Project in July, despite findings that there would be significant adverse effects on certain wildlife and vegetation in the area. In coming to its decision the Panel noted that the proposed expansion is in an area surrounded by other oil sands mines; the Alberta government has identified bitumen extraction as a priority use in the area; and that the Project would provide significant economic benefits to the region, Province, and Canada.
Decision Statement
After considering the report of the Panel, the Federal Environment Minister held that the Project would likely cause significant adverse environmental effects. This determination triggered the provisions of the CEAA 2012, requiring a referral to Federal Cabinet. Federal Cabinet subsequently determined that the significant adverse environmental effects are justified in the circumstances. The Project can therefore proceed subject to conditions set out by the Environment Minister in the Decision Statement. Generally, the conditions can be classified as:
1. preserving plants, aquatic and terrestrial wildlife;
2. implementing environmental mitigation measures;
3. considering Project effects on First Nations;
4. submitting annual reports; and
5. establishing plans for closing Jackpine Mine.
If Shell Canada does not comply with the conditions set out in the Decision Statement, it will face compliance and enforcement action. This may include financial penalties of up to $400,000 per day if convicted for a continuing offence.
Although Shell Canada’s expansion of Jackpine Mine can proceed, Federal Cabinet provided no explanation to support its conclusion. Presumably Federal Cabinet relied on the recommendation and reasoning of the Panel, which included consideration of “significant economic benefits.” Moving forward, however, it remains unclear what factors Federal Cabinet will take into consideration to approve a project.
Expertise
Authors
Insights
-
Energy
Canada’s New Clean Fuel Standard & The Emergence of a Carbon Credit Market
On June 21, 2022, the federal government registered the Clean Fuel Regulations (CFR)1 under the Canadian Environmental Protection Act, 1999.2 The goal of the CFR is to advance the growth of Canada’s… -
Cleantech
Province of Ontario Proposes Establishment of a Clean Energy Credit Registry
On August 2, 2022, Ontario’s Ministry of Energy released its proposal for a clean energy credit registry (the “Registry”) for public comment on the Environmental Registry of Ontario (ERO). The… -
Mining
2022 Federal Budget: Government Supports Critical Mineral Projects in Canada
The 2022 federal budget (the “Budget”) commits significant funding and proposes far-reaching measures to boost the development of Canada’s mining industry for critical minerals that are essential to… -
Environmental
CSA Proposes Climate-Related Disclosure for Reporting Issuers
The Canadian Securities Administrators (CSA) has published a proposed rule, National Instrument 51-107 – Disclosure of Climate-related Matters (“Proposed Instrument”), that would impose… -
Cleantech
Supreme Court of Canada Upholds Federal Government’s Carbon Price Backstop To Address “existential threat to human life”
On March 25, 2021, the Supreme Court of Canada (“SCC”) released its long-awaited decision in Reference re Greenhouse Gas Pollution Pricing Act. A majority of the SCC found that the federal… -
Environmental
Ontario Proposes to Consolidate Environment and Land Tribunals
The Government of Ontario recently introduced legislation that proposes to combine an existing cluster of five land and environmental tribunals into a single entity called the Ontario Land Tribunal…
Featured Work
-
Capital Markets
DIRTT Environmental Solutions Inc. $35 Million Convertible Debenture Bought Deal Financing
Goodmans LLP acted as Canadian counsel to the underwriters in connection with a short form prospectus offering in Canada and concurrent offering in the United States by DIRTT Environmental Solutions… -
Mergers and Acquisitions
Brookfield Infrastructure's Sale of North American District Energy Business for $4.1 Billion
Goodmans LLP acted for Brookfield Infrastructure in connection with the sale of 100% of its North American district energy business, Enwave… -
Mergers and Acquisitions
McCain Capital Partners Acquisition of Forest City Fire Protection
Goodmans LLP acted for McCain Capital Partners in connection with its acquisition of Forest City Fire Protection. Forest City Fire Protection will now unite with Classic Fire Protection (another… -
Mergers and Acquisitions
Cott Acquisition of Primo Water Corporation
Goodmans LLP acted for Cott Corporation (“Cott”) in connection with its acquisition of Primo Water Corp. (“Primo”) for $14.00 per share, for a total transaction value of $775 million… -
Hospitality
Ontario Lottery and Gaming Corporation’s Niagara Gaming Bundle
Goodmans LLP acted for the Ontario Lottery and Gaming Corporation (OLG) in connection with structuring, procurement strategy and transaction documents, including the project agreements and transition… -
Banking and Financial Services
Onex Corporation Announces $5 Billion acquisition of WestJet Airlines Ltd.
Goodmans LLP acted as counsel to Onex Corporation (“Onex”) in connection with its announcement that they have entered into a definitive agreement in which Onex will acquire all outstanding shares of…
News & Events
-
Environmental
Rodney Gill at OBA’s Ontario Legal Conference: Municipal, Planning & Environmental Law
Join Rodney Gill on February 9th at 3:00 pm for the Managing Matters involving Unrepresented Parties session at OBA's Ontario Legal Conference: Municipal, Planning & Environmental Law. This… -
Environmental
Matthew Lakatos-Hayward at OBA’s Ontario Legal Conference: Municipal, Planning & Environmental Law
Join Matthew Lakatos-Hayward on February 10th at 9:00 am for the Plenary: Bill 23, More Homes Built Faster Act, 2022 session at OBA's Ontario Legal Conference: Municipal, Planning &… -
Banking and Financial Services
The Legal 500 Canada Continues to Recognize Goodmans with Top Tier Rankings
We are pleased to announce Goodmans LLP has once again received top tier recognition from The Legal 500 Canada in their 2023 Guide released today. Recognition from The Legal 500 is based on…