Law Times

Law TiMes • March 26, 2012 FOCUS PAGE 11 BY JULIUS MELNITZER For Law Times CLIMATE CHANGE DEVELOPMENTS The federal government has opted for the United States' model of deal- ing with greenhouse gas emissions through regulation rather than imposing a carbon tax. Environmental groups have favoured the carbon tax. They claim regulations aren't flexible and are too dependent on bureaucratic involvement. In a paper entitled "Smart Environmental Policy With Full- Cost Pricing," Nancy Olewiler of Simon Fraser University's School of Public Policy argues that the time has come for a carbon tax through a system that adjusts market prices to reflect not only direct costs but also their impact on the natural environment. Olewiler claims the benefits of such a system include productiv- ity gains, billions in savings for all stakeholders, a strong environment supporting sustainable industries, and simplified tax regimes. For its part, Quebec is launching a cap-and-trade system for green- house gas emissions. As of January 2013, the ceiling for allowable emis- sions in the province will gradually become more restrictive. ENERGY M&A TRENDS Glenn Cameron, Susan Hutton, and Lisa McDowell, writing on Stikeman Elliott LLP's energy law blog, highlight the following 10 trends in mergers-and-acquisi- tions activity in 2012: • Foreign investment will continue. • Companies will position themselves to participate in export markets. • Size will matter for midstream companies. • Natural gas production will face challenges. • More aggressive competition regulation. • Investment Canada will con- tinue to approve foreign investment. • Cross-border income trusts will continue to be offered but cau- tiously. • Cross-border acquisitions will continue to be structured through intermediary jurisdic- tions. • Poison pills may be more effec- tive as defensive tactics. • Controlled auctions will remain important. M&A OUTLOOK FOR THE POWER SECTOR Panellists at a January 2012 Canadian power finance confer- ence, chaired by Stikeman Elliott's Lewis Smith, provided a positive outlook for mergers-and-acqui- sitions activity in the Canadian power sector. According to the firm's energy law blog, panellists cited the following contributing factors: • Ongoing uncertainty in finan- cial markets continues to create demand for stable, long-term investments and has lowered the return expectations for many investors. • Lower return expectations support higher asset valu- ations that in turn motivate vendors who are looking for higher prices. • Large pools of equity capital dedicated to power investment now exist and these funds must be deployed. • American investors are turning an eye to Canada because the U.S. cash grant program has ended and the renewable elec- tricity production tax credit will be expiring soon. • Low gas prices and the scarcity of power purchase agreements in the United States make con- tract projects in Canada attrac- tive to U.S. developers. • European investors, facing challenges at home, are show- ing increased interest in the Canadian market. • Asian buyers are seeking strategic opportunities in the renewable and non-renewable power generation sector. • Prime greenfield sites are dis- appearing, causing developers to look at acquiring existing locations. • Financing constraints on small developers will require the intervention of investors with deep equity pockets. • Many smaller developers don't have the expertise to take a proj- ect to commercial operation and will be seeking partnerships with investors who have these capabilities. OILSANDS MONITORING In early February 2012, the fed- eral and Alberta governments released the joint Canada-Alberta implementation plan for oilsands monitoring. Its primary goal is to develop a monitoring program that will advance the understanding of the long-term cumulative effects ROUNDUP of oilsands developments with the aim of ensuring that future development is environmentally responsible. The plan contemplates increased monitoring of air qual- ity; acid-sensitive lakes and accu- mulated aerial deposition; water quantity and quality; aquatic eco- system health; wildlife toxicity; and terrestrial biodiversity and habitat disturbance. The plan envisions increasing sampling frequency, the parameters measured, and sample locations over what exists today. It also con- templates improved methodologies for air and water monitoring and the creation of a transparent data management program. The governments will imple- ment the plan over a three-year period beginning this spring. They will incorporate existing monitor- ing arrangements into a single pro- gram led by the federal and provin- cial governments. Consultation with independent scientists, Aboriginal Peoples, and other stakeholders will occur early in the process. There will be regu- lar reviews of the plan's implemen- tation to reflect the experience of stakeholders. External peer review will take place after the third year of the plan and every five years after that. Estimates of total costs are at $50 million annually during the first three years with lower costs expected subsequently. The gov- ernments have made it clear that they expect industry to fund all costs, but there's little detail as to how they'll allocate them. "The interplay between the funding of the plan by industry with no definitive input into its design, versus the ongoing design of the plan by government with no apparent vested interest in its fund- ing, may well be the most interest- ing aspect of the plan as it unfolds," wrote Duff Harper and Katie Slipp of Blake Cassels & Graydon LLP's Calgary office in the February 2012 edition of the firm's energy and environmental bulletin. LT CANADIAN LAW LIST 2012 YOUR INSTANT CONNECTION TO CANADA'S LEGAL NETWORK Inside you will find: • an up-to-date alphabetical listing of more than 58,000 barristers, solicitors and Quebec notaries, corporate counsel, law firms and judges in Canada; • • contact information for the Supreme Court of Canada, the Federal Court of Canada, Federal Cabinet Ministers, departments, boards, commissions and Crown corporations; legal and government contact information related to each province for the Courts of Appeal, Supreme Courts, County and District Courts, Provincial Courts, law societies, law schools, Legal Aid, and other law- related offices of importance. MORE THAN A PHONE BOOK Hardbound • Published February each year On subscription $149 • L88804-571-26084 One-time purchase $165 • L88804-571 • ISSN 0084-8573 Prices subject to change without notice,to applicable taxes and shipping & handling. Visit carswell.com or call 1.800.387.5164 for a 30-day no-risk evaluation CANADIAN LAW LIST www.lawtimesnews.com CLL - 1/4 pg - 3X.indd 1 1/20/12 10:48 AM CYBERBAHN® LITIGATION SUPPORT SERVICES Issuing a claim in Toronto? Filing a motion in York Region? Seeking an injunction in Halton? Serving several parties across Canada simultaneously? We'll do it all for you – quickly, accurately and efficiently. With Legal i Link™, our secure online system, you can submit, print and track the status of your request 24/7. We make the litigation support process exactly what it should be – perfectly seamless. FOR FAST, EFFICIENT LITIGATION SUPPORT SERVICES Visit www.cyberbahn.com Call 416-687-7961 or 1-800-267-0183 option 4 Revamped oilsands monitoring among latest developments

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