Calgary oil and gas company blames order protecting sage grouse for company’s demise by Dan Healing, The Canadian Press, June 2, 2016, Calgary Herald
A junior oil and gas company in Calgary is blaming an order aimed at protecting a rare Prairie bird for its insolvency. [Did greed bring the company down, as it has so many others not affected by Species at Risk Act orders?]
LGX Oil + Gas says its daily operations and drilling plans were significantly disrupted when an emergency order under the federal Species At Risk Act took effect in February 2014 that protects the greater sage-grouse.
The company’s Manyberries oilfields in Alberta were subject to that order.
In its order, Environment Canada restricts noise on 1,700 square kilometres of provincial and federal lands in southern Alberta and Saskatchewan during April and May — the spring mating season for the grouse.
It also places limits on the construction of roads and fences.
In December, LGX announced it had filed a lawsuit against the federal government seeking $60 million in compensation over the order. [Why didn’t LGX sue while Steve Harper was the government?]
The attorney general’s office could not immediately give a response on the status of the lawsuit.
LGX said Wednesday that the order made its property impossible to sell. It also said it is unable to satisfy a lender’s demand to repay $31 million in debt by June 10. [Another Lone Pine?]
The company said the lender plans to have a receiver appointed next week who will manage day-to-day affairs while formulating a plan to satisfy its creditors.
Nature Canada estimates on its website there are fewer than 150 adult greater sage-grouse remaining in southeastern Alberta and southwestern Saskatchewan.
Greater sage-grouse are the largest grouse in North America. Males can weigh up to two kilograms, females about one kilogram. The plump, chicken-like birds are brownish-grey with white patterning.
[Refer also to:
2012: Ottawa sued over Quebec fracking ban, Smacked by U.S. NAFTA Lawsuit on Fracking
2012: NAFTA challenge launched over Quebec fracking ban
2012: Public vs. corporate rights: NAFTA Chapter 11 invoked in Quebec fracking decision
2012: Timing is right for a fracking ban to protect Ontario from NAFTA lawsuits
2013: Quebec tables bill to block shale gas fracking
2013: Little lawsuit, big implications for future of fracking projects