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ENERGY

Canadian Forest Oil Ltd. v. Chevron Canada Resources

A-58-00

Sharlow J.A.

16/6/00

9 pp.

Judicial review of National Energy Board's (NEB) decision to issue declaration of commercial discovery (CDD) --Pursuant to Federal Court Rules, 1998, r. 318(2) NEB objecting to providing as part of tribunal record certified copy of document submitted by Chevron Canada Resources (Chevron) on ground privileged under Canada Petroleum Resources Act, s. 101(2)--NEB issued to Chevron significant discovery licence (SDL 99) in 1991--In 1999 Chevron's drilling resulting in commercial discovery within area of SDL 99--National Energy Board Act, s. 28.2 requiring NEB to give notice of intention to issue CDD to any person directly affected--Canadian Forest Oil Ltd. holding working interest in exploration licence (EL 363) covering area immediately adjacent to SDL 99--Claiming reservoir that is source of Chevron's discovery extending into area covered by EL 363, and CDD should have covered that area--NEB not considering Canadian Forest Oil Ltd. directly affected--Judicial review application questioning NEB's determination Canadian Forest Oil Ltd. not directly affected, determination of area covered by CDD--NEB objecting to production of technical material filed by Chevron in support of application for CDD relevant to both determinations herein--Canada Petroleum Resources Act, s. 101(2) providing information privileged if provided for purposes of Act or of Part II.1 of National Energy Board Act--S. 101(3) providing no person required to produce information privileged under s. 101(2) in connection with any legal proceedings--S. 101(3) not precluding order for production of Chevron submission--Canada Petroleum Resource Act providing for regulation of oil, gas resources in certain areas of Canada--NEB's authority to issue CDD with respect to those lands integral part of regulatory scheme--Issuance of CDD aspect of administration of Canada Petroleum Resource Act--As application raising question as to propriety of issuance of CDD, related to administration of Canada Petroleum Resource Act--Also relates to administration of Part II.1 of National Energy Board Act--Statutory procedure governing issuance of CDD found in Part II.1 of National Energy Board Act--Application raising question as to propriety of NEB's determination of who directly affected parties are--Critical aspect of statutory procedure--Although Court may order production of Chevron submission, nothing in material justifying inevitable, complete destruction of statutory privilege, or disclosure of information retaining its value to Chevron only so long as remaining confidential--Federal Court Rules, 1998, r. 151, dealing with confidentiality orders, designed to deal with very problem of protecting valuable confidential information from unnecessary disclosure--NEB's objection allowed subject to Chevron being allowed to file motion under r. 151 for confidentiality order--Federal Court Rules, 1991, SOR/98-106, rr. 151, 318(2)--Canada Petroleum Resources Act, R.S.C., 1985 (2nd Supp.), c. 36, s. 101(2) (as am. by S.C. 1994, c. 10, s. 18), (3) (as am. idem)--National Energy Board Act, R.S.C., 1985, c. N-7, s. 28.2 (as enacted by S.C. 1994, c. 10, s. 23), Part II.1 (as enacted idem).

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