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Energy

Free Speech Was Curtailed In Canada. Did You Notice?

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19 minute read

From the Frontier Centre for Public Policy

By Brian Zinchuk

We’ve seen this before, of course… The Soviets under Lenin and Stalin, and Maoists in China made denunciation commonplace. Don’t like someone? Denounce them for anti-revolutionary speech and have them hauled off to the gulag for 10 years

In the waning days of June, the federal Liberal government, supported by the New Democratic Party, passed legislation to take away some of the rights to free speech in Canada.

Bill C-59 was an omnibus budget bill, which meant its passage was assured lest the government fall. And there are some amendments to the Competition Act within C-59 which are effectively a gag law for you, me, and everybody else.

Gag law

I honestly wasn’t aware of it until Minister of Justice and Attorney General Bronwyn Eyre held a press scrum at the Saskatchewan Oil and Gas Show on June 5 to talk about this. She called it a “gag law,” and it has become evident those were very fitting words.

The additions to the budget impact the Competition Act, for the purpose of eliminating “greenwashing.” The significant clauses state:

“A person engages in reviewable conduct who, for the purpose of promoting, directly or indirectly, the supply or use of a product or for the purpose of promoting, directly or indirectly, any business interest, by any means whatever …

“(b.1) Makes a representation to the public in the form of a statement, warranty or guarantee of a product’s benefits for protecting or restoring the environment or mitigating the environmental, social and ecological causes or effects of climate change that is not based on an adequate and proper test, the proof of which lies on the person making the representation;

“(b.2) Makes a representation to the public with respect to the benefits of a business or business activity for protecting or restoring the environment or mitigating the environmental and ecological causes or effects of climate change that is not based on adequate and proper substantiation in accordance with internationally recognized methodology, the proof of which lies on the person making the representation.”

The penalties for a corporation can be up to three per cent of global revenue.

Charlie Angus’ influence

The Bill was introduced last November, but these portions were amended since then. And you can see from a briefing submission from the environmental lobby, some of their suggestions were implemented.

It also seems to be an extension of Charlie Angus private members bill, which was banning the promotional petroleum in early February. I think that was a trial balloon. No one really thought anything would come of it, but the essence of that bill was already in Section 236 of C-59, with amendments made at the very end of the budgetary process.

This move seems to be a back-door implementation of NDP MP Charlie Angus’ private members bill, Bill C-372, which sought to shut down all oil and gas advertising. Angus’ press release said, “Passage of Bill C-372 will mean that no fossil fuel company will be able to advertise, promote their products, nor mislead the public about the health and environmental threats posed by the burning of fossil fuels, which the World Health Organization now says is the biggest global health threat of the 21st century.”

Isn’t that eerily similar to the clauses noted above?

Saskatchewan calls it a gag law

Eyre told reporters on June 5, “This is a gag law. It’s a federal gag law. It’s Charlie Angus’ fossil fuels advertising act in another form, and it is very serious. That’s what the letter expresses, our profound alarm at this rushed bill, Bill C-59, which is part of an omnibus budget bill. It was rushed, it was done without consultation with any of the provinces. And it could have a very profound effect, very sobering effect harmful effects on our economy, frankly, so very, very concerned about C-59.”

Premier Scott Moe posted on social media on July 2, “It’s a wonder why the federal government would want to put a gag order on Saskatchewan oil and gas companies when they are having great success with their emission reductions. In fact, our energy sectors greenhouse gas emissions last year were 67 per cent below levels reported in 2015. Our government will continue to fight against the Liberal-NDP Coalition Bill C-59 plan in order to protect Saskatchewan’s energy sector.”

Such a statement, made by a provincial premier, no less, could possibly be considered afoul of the law, if he had made these statements after June 20, 2025, when the law is implemented.

Did Moe quote “proper substantiation in accordance with internationally recognized methodology?” After all, according to the law of the land now, “the proof of which lies on the person making the representation.”

Jordan Peterson persecution

The implementation of this law is essentially modelled on the persecution (and I don’t use that term lightly) of Dr. Jordan Peterson.

As noted by the National Post, Dr. Peterson’s plight was that the “College of Psychologists of Ontario that ordered Jordan Peterson into a mandatory rehabilitation program for his politically incorrect tweets, which had nothing to do with his practice and involved none of his patients.”

Among the complaints made against him was the submission of the entire transcript of his appearance on the Joe Rogan Experience podcast! And an Ontario court backed up the College’s prosecution (persecution?) of him!

Bill C-59 conjures up a similar system. As energy advocate Deidra Garyk writes in Pipeline Online, “While focus has been on the muzzling of oil and gas supporters and companies, this bill is agnostic and, therefore, allows all industries to be targeted. Although, oil and gas is likely to be disproportionately aimed at and penalized since anyone can go onto the Bureau’s website and easily complete a complaint form. You do not have to be a victim to file a complaint, meaning a company can be accused of a victimless crime.”

Communist-style denunciation

We’ve seen this before, of course, long before Peterson’s problems. The Soviets under Lenin and Stalin, and Maoists in China made denunciation commonplace. Don’t like someone? Denounce them for anti-revolutionary speech and have them hauled off to the gulag for 10 years, but only if they don’t catch a bullet behind the ear, first.

Process is the punishment

While Canadians aren’t likely to catch a bullet, yet, this is a situation where the process is the punishment. It doesn’t matter if the complainants win. All they have to do is initiate the process, and you are in a world of hurt.

And trust me, they will be filing complaints. Expect groups like Ecojustice, Sierra Club, and Greenpeace to be lining them up as we speak. In December, several of them, including Ecojustice, submitted a briefing note “amending Bill C-59 to more effectively combat greenwashing.”

A few clicks online and bam! You’re tied up in litigation that’s from tens to hundreds of thousands of dollars.

And even if you win, you still lose, because you’ve paid all that money for the lawyers and the time and effort.

And in the meantime, while you’re in litigation, you’re not going to say a damn thing until it’s resolved. So, you have effectively been muted until the court process, which is never quick and efficient, is dealt with. Again, the process is the punishment.

Easier to say nothing, ever

Now, the solution for most people, and most companies, will realize is that it’s easier not to say anything at all, which effectively silences you. As Eyre said, this is a gag law.

And you know what really, really troubling?

Some of the largest companies in Canada, corporations with literally floors of lawyers among them, folded like a house of cards as soon as C-59 became law. The Pathways Alliance, made up of the six largest oilsands producers, promptly wiped their website clean. The Canadian Association of Petroleum Producers, on June 20, said it “has chosen to reduce the amount of information it makes available on its website and other digital platforms until the Competition Bureau has released further guidance on how these amendments will be implemented.”

So the gag has been thoroughly applied, already. Spines, and perhaps some other bodily parts, are notably absent.

And these are the organizations with by far the largest resources to fight this assault on free speech. Instead, they issued press releases. Big deal. That press release should have said they will fight this tooth and nail. Instead, They’ve already all but given up.

So what the hell am I supposed to do, working in my basement as a one man band? I have no financial resources to pay for any sort of legal fight.

How the hell am I supposed to fight this when the people who have all the resources in the world, in this country have said, “Oh, we’ll put up a press release saying, ‘We don’t like this, but we’re not going to do anything about it.’”

I’ll tell you what my defence is, should I, or my corporation, Pipeline Online Ltd., have a complaint issued under this legislation: Section 2(b) of the Canadian Charter of Rights and Freedoms. It states, “Everyone has the following fundamental freedoms: (b) freedom of thought, belief, opinion and expression, including freedom of the press and other media of communication.”

That includes the right to say whatever you want about “protecting or restoring the environment or mitigating the environmental, social and ecological causes or effects of climate change.”

And under Canadian law, corporations have rights, too.

ESG as the rope to hang you

And here’s another twist: in the last four years, environment, social and governance, or ESG statements or reports have went from non-existent to required if you expect any sort of institutional investment. No ESG report; no money, honey.

But these very reports, the ones making companies’ environmental cases, will now be rope with which the likes of Ecojustice and Greenpeace will hang them. Now if you publish an ESG statement, your critics can use that as evidence to prosecute you. So you’re damned if you do, and you’re damned if you don’t. If you don’t put out an ESG statement, maybe you’ll lose all your investors. And if you do publish it, well, maybe you’ll get prosecuted by this for saying the wonderful stuff that you have tried to do for the environment.

What if a journalist like me comes around and does a story on your company? Let’s give a real example. Several years ago, a drilling company which no longer exists called CanElson converted many of it rigs to operate on dual-fuel; diesel and compressed natural gas. And one of the reasons cited at the time when I wrote about it was the environmental benefits from lower emissions. But now, lawyers would almost certainly tell them everything they say would have to be couched with “proper substantiation in accordance with internationally recognized methodology.” In other words, mountains of fine print. But no press organization is going to publish all of that, and the company would have no control over what is published. So that company’s lawyer would, according to the new law, obviously advise their clients to say nothing, ever, to any media where it could be published, lest they open themselves up to prosecution under the Competition Act, as amended by Bill C-59.

Again, a gag law.

1984

This is really an implementation of George Orwell’s 1984, where groupthink has been legislated into law a couple week ago by the federal government. If you say anything against the current orthodoxy of anthropogenic climate change, or even if your efforts to support it are found insufficient, you are an apostate and can be prosecuted for it.

This is not hyperbole. This has really happened.

Your freedom of speech, today, is dramatically reduced from what it was on June 19.

And we allowed it to happen.

Authoritarian pattern

This reminds me of how the Russian Revolution evolved under the Soviets, as recorded by Aleksandr Solzhenitsyn’s The Gulag Archipelago. First they came for the Mensheviks, then the socialists. Then they came for the bourgeois business owners and clergy. Next were the engineers, which were called “wreckers,” as well as the intelligentsia. Then they came for the kulaks, which were farmers who had as few as three cows, leading to the Holodomor. Then they came for the military, in the great purge.

This is the route authoritarianism takes. Free speech is the first to go. What comes after that?

I’ve been talking to a number of people about this in recent weeks. Some have suggested working within the system as it now exists, under the new changes to the Competition Act. Some have suggested using the new rules to fight back, making complaints about the green lobby, instead.

That’s a fool’s errand. You’re co-opting the authoritarians’ plan. Just like the Jews who dutifully donned their yellow Stars of David. If we just do what they tell us to, work within their new rules, maybe they’ll leave us alone.

How did that work out?

I wore a uniform as a reservist officer in the Canadian Forces. I may have been the lowest form of reservist officer, but I still wore a uniform for seven years, and there’s no way in hell I am going to be gagged by my own federal government for being able to say what I’m going to say.

And the fact that CAPP and the Pathways Alliance folded on this like a cheap house of cards, is all the more troubling. They’ve just been handed the environmental equivalent of a yellow star, and they dutifully put it on.

Will you do the same?

Brian Zinchuk is editor and owner of Pipeline Online, and occasional contributor to the Frontier Centre for Public Policy. He can be reached at [email protected].

Energy

Thawing the freeze on oil and gas development in Treaty 8 territory

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From Resource Works 

Will direct tenure awards to First Nations unlock Montney gas?

An innovative approach to facilitating natural gas production in B.C. while respecting treaty rights could become a case study for future cooperation and partnerships between First Nations, government and industry.

In an attempt to open an area that producers have essentially been shut out of in northeastern B.C., the B.C. government directly awarded oil and gas tenure to the Halfway River First Nation, giving them greater control over how oil and gas extraction in the area might happen.

That tenure is now getting “farmed out” to companies like ARC Resources.

“The granting of the tenure by the B.C. government to the nation is new,” said Greg Kist, executive manager for Tsaa Dunne Za Energy, the Halfway River First Nation’s energy business.

Greg Kist, former president of Pacific NorthWest LNG and current managing executive for Tsaa Dunne Ta Energy, THE CANADIAN PRESS/Jeff McIntosh.

Depending on the outcome of the experiment, it’s the kind of thing that might one day be showcased at a future Indigenous Partnership Success Showcase event.

For more than two decades, a large area in Halfway River First Nation traditional territory in northeastern B.C. has been off limits to industrial activities like logging and oil and gas exploration and extraction, due to treaty rights.

In 1999, the BC Supreme Court quashed a timber harvesting permit approved by the province for Canfor, based on Halfway River First Nation’s Treaty 8 rights.

An extraction moratorium of sorts was placed over core HRFN territory, which happens to be in the “fairway” of the Montney natural gas formation.

“All of the lands were deferred from any further development,” Kist said. “And that meant everything from logging it, to oil and gas activities.”

This “deferral” of industrial activities in the area has been one of the question marks hanging over the oil and gas-rich Montney formation in northeastern B.C.

The 2021 BC Supreme Court Yahey decision had also left Treaty 8 territory dotted with question marks.

In Yahey, the court ruled cumulative impacts of activities like oil and gas development constituted a breach of the treaty rights of the Blueberry River First Nation, one of eight B.C. signatories to Treaty 8.

These various treaty rights rulings in northeastern B.C. create a serious challenge: How can B.C. continue to benefit from an abundance of natural gas to feed a burgeoning LNG industry without infringing the rights of Treaty 8 First Nations?

In the case of Halfway River, the B.C. government, the First Nation and industry are taking an innovative approach, using oil and gas tenure.

Last year, the B.C. government and HRFN signed a treaty settlement agreement that grants the nation more control over land use and development. As part of the agreement, the B.C. government directly awarded HRFN oil and gas tenure over 34,000 hectares of land. It was the first time the province has directly awarded oil and gas tenure to a First Nation.

In turn, the HRFN is now farming out its tenure rights to companies like ARC Resources, whose existing land holdings in the Attachie play are directly adjacent to the HRFN tenure.

“The resource quality is comparable to ARC’s existing Attachie asset, further extending the development runway at one of ARC’s most profitable assets,” ARC said in its second quarter financials at the end of July.

The tenure awarded to HRFN through its energy business, Tsaa Dunne Ta Energy, encompasses prime Montney real estate that had been essentially sterilized from development for decades.

“That 34,000 hectares is right in the middle of the Montney fairway,” Kist said.

Under an “earning and development” agreement with Tsaa Dunne Za Energy, ARC Resources will gain access to 36 parcels of land contiguous with its existing land parcel in the Attachie play. This expands its Attachie holdings by 10%.

Green area denotes Halfway River First Nation tenure; blue represents ARC Resources tenure.

“Think of it as Tsaa Dunne farming that land out to ARC, and we have an agreement that benefits us financially,” Kist said.

“The tenure award and landscape planning pilot will help to ensure that oil and gas development in these areas is sustainable and managed in accordance with the values of the Halfway River First Nation,” Chief Darlene Hunter said last year with the signing of the treaty settlement agreement.

Kist notes that the agreement with ARC represents only 25% of the land tenure granted to HRFN. So 75% of the land tenure could be open to further agreements with other natural gas producers.

“There will likely be more deals over time as we look at the different opportunities that are out there,” Kist said.

Kist is the former president of Rockies LNG and, before that, president of Pacific Northwest LNG. He and Jim Stannard, a former Petronas executive, are now managers for Tsaa Dunne Za Energy.

The tenure award does not represent a transfer of subsurface rights. All subsurface rights to things like minerals, coal, and oil and gas belong to the Crown.

“And at the end of the day, the B.C. government still gets its royalties,” Kist said. “But now the nation is very much in control of that activity.”

The recent agreement with ARC to develop 36 parcels adjacent to its Attachie lands is just the first one to be signed so far. There may be more such agreements in the future, Kist said.

Kist said the First Nation tenure model could end up being used elsewhere.

“I think the B.C. government’s going to look at these sorts of opportunities in areas where maybe there is a lack of development moving things forward,” he said.

“I think this could potentially be the model for development, with First Nations leading the way.”

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Alberta

Alberta’s number of inactive wells trending downward

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Aspenleaf Energy vice-president of wells Ron Weber at a clean-up site near Edmonton.

From the Canadian Energy Centre

By Deborah Jaremko

Aspenleaf Energy brings new life to historic Alberta oil field while cleaning up the past

In Alberta’s oil patch, some companies are going beyond their obligations to clean up inactive wells.

Aspenleaf Energy operates in the historic Leduc oil field, where drilling and production peaked in the 1950s.

In the last seven years, the privately-held company has spent more than $40 million on abandonment and reclamation, which it reports is significantly more than the minimum required by the Alberta Energy Regulator (AER).

CEO Bryan Gould sees reclaiming the legacy assets as like paying down a debt.

“To me, it’s not a giant bill for us to pay to accelerate the closure and it builds our reputation with the community, which then paves the way for investment and community support for the things we need to do,” he said.

“It just makes business sense to us.”

Aspenleaf, which says it has decommissioned two-thirds of its inactive wells in the Leduc area, isn’t alone in going beyond the requirements.

Producers in Alberta exceeded the AER’s minimum closure spend in both years of available data since the program was introduced in 2022.

That year, the industry-wide closure spend requirement was set at $422 million, but producers spent more than $696 million, according to the AER.

In 2023, companies spent nearly $770 million against a requirement of $700 million.

Alberta’s number of inactive wells is trending downward. The AER’s most recent report shows about 76,000 inactive wells in the province, down from roughly 92,000 in 2021.

In the Leduc field, new development techniques will make future cleanup easier and less costly, Gould said.

That’s because horizontal drilling allows several wells, each up to seven kilometres long, to originate from the same surface site.

“Historically, Leduc would have been developed with many, many sites with single vertical wells,” Gould said.

“This is why the remediation going back is so cumbersome. If you looked at it today, all that would have been centralized in one pad.

“Going forward, the environmental footprint is dramatically reduced compared to what it was.”

During and immediately after a well abandonment for Aspenleaf Energy near Edmonton. Photos for the Canadian Energy Centre

Gould said horizontal drilling and hydraulic fracturing give the field better economics, extending the life of a mature asset.

“We can drill more wells, we can recover more oil and we can pay higher royalties and higher taxes to the province,” he said.

Aspenleaf has also drilled about 3,700 test holes to assess how much soil needs cleanup. The company plans a pilot project to demonstrate a method that would reduce the amount of digging and landfilling of old underground materials while ensuring the land is productive and viable for use.

Crew at work on a well abandonment for Aspenleaf Energy near Edmonton. Photo for the Canadian Energy Centre

“We did a lot of sampling, and for the most part what we can show is what was buried in the ground by previous operators historically has not moved anywhere over 70 years and has had no impact to waterways and topography with lush forestry and productive agriculture thriving directly above and adjacent to those sampled areas,” he said.

At current rates of about 15,000 barrels per day, Aspenleaf sees a long runway of future production for the next decade or longer.

Revitalizing the historic field while cleaning up legacy assets is key to the company’s strategy.

“We believe we can extract more of the resource, which belongs to the people of Alberta,” Gould said.

“We make money for our investors, and the people of the province are much further ahead.”

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