Spartan Delta Corp v Orphan Well Association
Spartan Delta Corp.
Law Firm / Organization
Stikeman Elliott LLP
Orphan Well Association
Law Firm / Organization
Bennett Jones LLP
Midstream Equipment Corporation Ltd.
Law Firm / Organization
Bennett Jones LLP
  • Facts:
    • Spartan Delta Corp applied for the return (replevin) of a specialized compressor.
    • The compressor was sold by the OWA to Midstream for $20,000.
    • Spartan claimed it had bought the compressor in 2020 through a Sale and Vesting Order in the receivership of Bellatrix Exploration Ltd.
    • The OWA claimed statutory authority under the Oil and Gas Conservation Act (OGCA) to possess and sell the compressor after the Trident Exploration site was abandoned.
  • Legal Issue: Whether the OWA knew the compressor belonged to Spartan when it sold the equipment. This affects whether the sale was lawful under OGCA s.102(1).
  • Court's Analysis:
    • Replevin: To succeed, Spartan needed to prove wrongful taking. However, OWA’s statutory authority negated any wrongful taking.
    • Statutory Interpretation: The court interpreted "knows" in OGCA s.102(1) to mean actual knowledge, rejecting Spartan’s argument that OWA should have checked ownership records (constructive knowledge).
    • The legislation prioritized the OWA's efficiency in site reclamation, limiting its duty to investigate equipment ownership.
  • Conclusion: The court dismissed Spartan's replevin claim, holding that OWA had acted within its authority as it lacked actual knowledge of Spartan’s ownership of the compressor.

Outcome: Spartan's application for replevin was dismissed. No monetary award was specified.

Court of King's Bench of Alberta
2401 00909
Bankruptcy & insolvency
Respondent