Law360 Canada ( November 17, 2025, 9:40 AM EST) -- Appeal by Canadian Natural Resources Limited (CNRL) of trial judge’s decision on liability and costs award; cross-appeal by Signalta Resources Limited (Signalta) on damages award. This appeal arose from a dispute between a bitumen lessee, CNRL, and a natural gas lessee, Signalta, who each held interests in the Waseca Formation. Signalta alleged that a significant volume of its non-solution gas was produced by CNRL when CNRL produced bitumen from the Waseca Formation. Signalta claimed damages from CNRL. The trial judge found that CNRL produced Signalta’s non-solution gas and CNRL was ordered to pay damages for negligent trespass (Trial Decision). The trial judge also awarded costs of the action to Signalta (Costs Decision). CNRL appealed the Trial Decision on numerous grounds related to liability. It submitted that the trial judge erred by failing to correctly apply the law regarding the admissibility of evidence; in allowing an improper amendment to pleadings during the trial; in failing to correctly apply the law of trespass to split title oil and gas properties in Alberta; and lastly, in failing to correctly apply the law regarding limitations. CNRL also appealed the Costs Decision maintaining that the costs awarded to Signalta were excessive and the decision was procedurally flawed. Signalta cross-appealed the trial judge’s assessment of damages, submitting that a higher amount, characterized as harsh damages, should have been awarded given the trial judge’s findings of fact....