Alberta Court Asserts Jurisdiction Over Energy Regulator Despite Broad Privative Clause

A recent decision by the Alberta Court of King's Bench has confirmed its jurisdiction over the Alberta Energy Regulator (AER), despite the regulator's broad statutory privative clause. The case, involving Sumerian Oil & Gas, centers on a July 20, 2026, suspension order requiring the company to shut down approximately 900 wells by August 4, 2026.

Sumerian argued that compliance with the order was impossible due to the scale of its operations and limited access to certain wells located on military lands. The Court's decision relies heavily on a recent Supreme Court of Canada ruling in Democracy Watch, which suggests superior courts have a broader role in reviewing administrative decisions despite privative clauses.

Justice Little, presiding over the case, assumed jurisdiction based on the Court of King's Bench's inherent authority, which he believes is not fettered by the legislative privative clause. This decision stands for the proposition that superior courts can grant interim relief in cases where administrative remedies are ineffective or unavailable.