Law360 Canada ( August 25, 2026, 9:46 AM EDT) -- Appeal by Minister of Energy and Minerals (Alberta Energy) from an order staying Alberta Energy’s claims against lessees for royalty arrears owed by Blue Sky Resources Ltd. (Blue Sky) during Blue Sky’s restructuring proceedings. Blue Sky owed approximately $1.9 million in unpaid Crown royalties. After Blue Sky commenced restructuring proceedings, Alberta Energy issued a Leaseholder Recourse Default Letter (Default Letter) to Blue Sky and copied 32 energy companies, including Canadian Natural Resources Limited (CNRL), demanding payment of the outstanding royalty arrears from lessees. CNRL applied for declarations that the Default Letter constituted a claim provable in bankruptcy against Blue Sky and that the stay precluded Alberta Energy from collecting payments from Blue Sky’s co-lessees. The chambers justice held that the stay precluded Alberta Energy from recovering the outstanding royalties from the lessees until the restructuring proceedings were complete. Alberta Energy argued on appeal that claims against Blue Sky’s co-lessees were independent liabilities of third parties that were not subject to the stay. CNRL acknowledged its liability if the royalty arrears were not fully recovered through the restructuring proceedings but argued Alberta Energy was required to advance its claim first through the restructuring proceedings....