The Alberta Court of Queen's Bench recently reviewed the law regarding priority of operator’s liens and emphasized the heavy evidentiary burden to be satisfied by a creditor asserting a possessory lien in Cansearch Resources Ltd v Regent Resources Ltd, 2017 ABQB 535.
Cansearch’s Operator’s Lien and the Bank’s Security
Canada, Banking, Insolvency & Restructuring, Litigation, Bennett Jones LLP, Personal Property Security Act 1990 (Canada)
Operating agreements for oil and gas assets typically contemplate the immediate replacement of the operator by another working interest owner in the event of the operator’s insolvency.
Canada, Energy & Natural Resources, Insolvency & Restructuring, Litigation, Bennett Jones LLP, Debtor, Interest, Fossil fuel, Bankruptcy and Insolvency Act 1985 (Canada)