Lexpert Special Editions

Special Edition on Infrastructure -Sept 2015

The Lexpert Special Editions profiles selected Lexpert-ranked lawyers whose focus is in Corporate, Infrastructure, Energy and Litigation law and relevant practices. It also includes feature articles on legal aspects of Canadian business issues.

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Miachika, P.Eng., David L. Borden Ladner Gervais LLP (604) 640-4220 dmiachika@blg.com Mr. Miachika practises in the areas of construction, insurance coverage and real estate dispute resolu- tion, including litigation, arbitration and mediation of construction, infrastructure, professional liability and real estate development claims. Mondrow, Ian A. Gowling Lafleur Henderson LLP (416) 369-4670 ian.mondrow@gowlings.com Mr. Mondrow is a partner practising in the area of energy regulation and policy. He has represented electri- city generators, transmitters, distributors, competitive energy retailers and services providers, electrical contract- ors and energy consumers. Muggah, Sean A. Borden Ladner Gervais LLP (604) 640-4020 smuggah@blg.com Mr. Muggah's practice fo- cuses on large infrastructure projects in various sectors across Canada including energy, transportation, healthcare & education. He is also involved in pri- vatizations & commercial transactions involving governmental bodies. Mitchell, Craig Stikeman Elliott LLP (416) 869-5509 cmitchell@stikeman.com Mr. Mitchell acts on behalf of domestic and foreign lenders and borrowers on acquisition, asset-based, mezzanine and project financings and debt restruc- turing transactions across a broad range of industries. Morrison, Patricia L. Borden Ladner Gervais LLP (403) 232-9472 pmorrison@blg.com Ms. Morrison is the Calgary regional leader of BLG's Construction Group. She acts for parties in all facets of the construction industry, in- cluding the negotiation and draing of P3 agreements, procurement, disputes and environmental matters. Murphy, Timothy J. McMillan LLP (416) 865-7908 tim.murphy@mcmillan.ca Mr. Murphy, former Chief of Staff to Canada's prime minister, focuses on project finance transactions, includ- ing P3s, for sectors such as infrastructure and energy. He also advises clients here and abroad in construction, procurement and finance. 26 | ENERGY REGULATION LEXPERT ® RANKED LAWYERS damages, he suggests, governments might negotiate offsets in the form of enhance- ments to wetlands or other environmentally valuable areas. Martin Ignasiak, with Osler, Hoskin & Harcourt LLP in Calgary, sees the newly recognized non-use value as inescapably a measure of the degree to which public opin- ion is offended by environmental damages. e Rocky Mountains, Ignasiak notes, have measurable tourism values, "but we value the Rocky Mountains way beyond whatever that financial value might be. e environment has a significant value to us, as a society," which he says the Supreme Court of Canada has recognized since its 2004 decision in British Columbia v. Canadian Forest Prod- ucts Ltd., in which the court acknowledged "the subjective or emotional attachment of the public to the damaged or destroyed area." "You can expect that, in future litiga- tion, it will be identified as a compensable head of damage," Ignasiak predicts. "e interesting thing is how you value that." And that, he says, will only be determined by future jurisprudence. Until then, infra- structure developers will have only lim- ited guidance as to the size of liabilities they're shouldering. Smith says he doesn't see the $1-billion absolute liability becoming a huge barrier for major pipeline companies launching new projects. Insurance or letters of credit will be allowed as proofs of financial cap- acity. But big pipeline companies will likely use their substantial internal resources to self-insure rather than pay annual insur- ance premiums that might easily exceed the $1-billion mark in a handful of years. Krista Hill, a nuclear-industry expert with Torys LLP in Toronto, says the re- sponse will likely be different among public utilities, which will "definitely" require in- creased insurance or other security to offset the risks of increased absolute liability. But Hill adds that the Energy Safety and Secur- ity Act has been welcomed by the nuclear industry, whose governing safety legislation was decades old. "e structure of the old act was similar, but the amount of the abso- lute liability has been increased to keep it in line with international norms and conven- tions," she says. "e Act channels liability to the oper- ator" of a nuclear facility, aligns with inter- national standards and enables Canada to sign onto the International Convention on Supplementary Compensation for Nuclear Damages, governing cross-border liabilities. Smith reckons the $1-billion absolute liability could constitute a significant bar- rier to smaller pipeline companies promot- ing larger projects. But he says pipeline de- velopment applications have for many years "THE STRUCTURE OF THE OLD [ENERGY SAFETY] ACT WAS SIMILAR, BUT THE AMOUNT OF THE ABSOLUTE LIABILITY HAS BEEN INCREASED TO KEEP IT IN LINE WITH INTERNATIONAL NORMS AND CONVENTIONS." – Krista Hill, Torys LLP

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