Business Briefs: Oil company loses $119M lawsuit against the Province of Quebec

By MEDICINE HAT NEWS on November 23, 2022.

https://www.medicinehatnews.com@MedicineHatNews

An Alberta oil company with operations in the southeast has lost its $119-million claim that the Province of Quebec violated its rights under NAFTA when it revoked drilling licences near the St. Lawrence River in 2011.

Prairie Provident Resources announced Tuesday a tribunal had rejected the claim by 2-1 margin that argued the Quebec “Act to limit oil and gas activities” directly harmed a subsidiary, Lone Pine Resources, under Chapter 11 of the North American Free Trade Act.

Objection was filed in 2012 and the case originally went before the trade tribunal in 2017, but was delayed after the death of a panel member.

Prairie Provident officials stated in a release the costs in the case were borne by the parties and have already been expensed on an ongoing basis. They had not included any award into the 2022 business plan.

Earlier this month the company that operates in the Princess area of southeast Alberta, stated its net loss in the third quarter fell to $1.5 million, and debt repayment was hampered by the rise in the value of U.S. dollars.

In the new year it plans to revisit 700 wells which were shut in due to low prices in 2020 and 2021.

Spud workers mull deal

Workers at the Cavendish Farms potato processing plant in Lethbridge will vote early next month on a last, best offer from the company, which would include an immediate nine per cent raise, then increases of about 2.5 per cent in 2024 and 2025.

The 160 unionized employees represented by the United Food and Commercial Workers, Local No. 401, have been without a contract since February 2021.

If approved on Dec. 6, the deal would provide two years of wage increases retroactively and the 2023 increase upon signing.

That, plus changes to wage-grid increments, would add up to $4,000 for a general labourer classification, and would be payable by year end, according to a bulletin from the union.

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