Lexpert Special Editions

14 | Regulation presentations, and 225 groups and individuals were accorded intervener status, with rights to present evidence and crossexamine each other. Hearings consumed more than 170 days over 18 months, ending on June 24. By the standards of recent energy hearings, Gateway was, in the end, a quick and fairly orderly affair. But the current federal government saw more at work than an extended exercise in grassroots democracy. Federal Minister of Natural Resources Joe Oliver charged that American environmental groups were funding their Canadian counterparts to stifle Canadian energy development. "These groups threaten to highjack our regulatory system to achieve their radical ideological agenda," Oliver declared in a January 9, 2012, open letter on the Natural Resources Canada website. He said their purpose is "to ensure that delay kills good projects. They use funding from foreign special-interest groups to undermine Canada's national economic interest." Nor was this the view of a single outspoken minister. A month later in Guangzhou, China, Prime Minister Stephen Harper told his audience "foreign money and influence" would not stop Canada from developing global markets for its energy resources. Harper expounded on his vision of Can- ada as an "emerging energy superpower," telling his hosts, "We want to sell our energy to people who want to buy our energy. It's that simple." Superpower status aside, Alberta and federal politicians have talked for years about draining the regulatory swamp. By Ottawa's own count, some 40 separate federal and provincial agencies can be involved in vetting a major energy project. Regulatory filings for the recently approved expansion of Shell Canada's Jackpine oil sands mine famously totalled some 18,000 pages. Hearings for Total E&P Canada's $9-billion Joslyn oil sands mine lasted six years, and review of the $16-billion Mackenzie Gas Project took nearly as long — while capital costs rose, gas prices plummeted and the project was shelved. Over the years, the regulatory burden has grown at the same time that projects have expanded dramatically in size and complexity, and the stakes on all sides of the regulatory debate have increased. Alberta now has four dozen oil sands projects worth more than $150 billion in queue for approvals, and half as many more announced and preparing to file applications. The province estimates oil and gas development could generate $2.5 trillion in economic activity over 25 years, while BC now has six multi-billion-dollar liquefied natural gas applications on its books. Meanwhile, the thickness of major project applications, which used to be measured in feet, is now gauged in metres, says Randall Block, with the Calgary office of Borden Ladner Gervais LLP. "The regulator has been much more demanding on the rigour of applications," Block says. "There are directives and rules that must be complied with, and rightly so." But he says his corporate clients feel that, having met this burden of increased information and environmental performance, "they should be able to move through the system more efficiently." Now Ottawa and Edmonton are responding to those expectations with new legislation aimed at streamlining the review processes of the National Energy Board (NEB) and the newly created Alberta Energy Regulator (AER). But corporate lawyers say they're waiting to see whether changes will result in more timely regulatory decisions, while environmental groups question whether regulators will grant their lawyers standing to argue big-picture issues. "We don't really know how this is going to play out," says Barry Robinson, a lawyer with the Canadian environmental law group Ecojustice. "It's clear what the intent is" — the legislation aims to make hearings faster and narrower in scope. But he says regulators likely still have Lexpert®Ranked Lawyers Fougere, Kevin A. Torys LLP (403) 776-3746 kfougere@torys.com Mr. Fougere advises corporations and financial institutions on a wide range of corporate financing transactions, including project financing, high yield bonds, term loans, cross-border and acquisition financings, asset-based lending and syndications. Freitag, Shane Borden Ladner Gervais LLP (416) 367-6137 sfreitag@blg.com Mr. Freitag's corporate commercial practice embraces the electricity, natural gas and water sectors throughout Canada. His experience includes development and financing of projects and negotiating underlying agreements and regulatory approvals. Germanakos, Chris N. McMillan LLP (416) 865-7865 chris.germanakos@ mcmillan.ca Mr. Germanakos advises the energy, financial institution, infrastructure and consumer products sectors, among others, on M&A, joint venture, private equity, governance, regulatory and general corporate and commercial matters. Ghikas, Matthew Fasken Martineau DuMoulin LLP (604) 631-3191 mghikas@fasken.com Mr. Ghikas represents energy and natural resources clients in administrative proceedings, litigation, arbitration and mediation. His counsel embraces public utility revenue requirements applications, capital project approvals and rate design. Gibson, QC, Brock W. Blake, Cassels & Graydon LLP (403) 260-9610 brock.gibson@ blakes.com Chair and partner. Mr. Gibson's practice focuses on mergers and acquisitions, corporate finance, private equity and restructuring transactions. His experience includes acting as lead counsel on numerous mergers and acquisitions and public offerings. Gilbert, Geoffrey G. Norton Rose Fulbright Canada LLP (613) 780-3764 geoffrey.gilbert@ nortonrosefulbright.com Mr. Gilbert practises in the area of project finance, with an emphasis on publicprivate partnerships and infrastructure transactions. He regularly advises project sponsors and lenders, among others, on large and innovative projects in Canada.

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