B.C. to update surface rights dispute mechanisms

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Published: March 31, 2010

Proposed changes to British Columbia’s legislation governing oil and gas activities on third parties’ land are seen as providing “more balanced and effective” dispute resolution.

Energy Minister Blair Lekstrom on Monday introduced amendments to the province’s Oil and Gas Activities Act and its Petroleum and Natural Gas Act.

The changes laid out in the province’s Bill 8, which went to second reading on Tuesday, were described as “a positive step forward toward a more balanced approach between industry and the affected landowners” in the province’s northeast.

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Amendments to the Petroleum and Natural Gas Act will “support landowners in resolving conflicts with industry, making the dispute resolution process more balanced and effective,” the government said.

The province’s Bill 8 proposes to “clarify” the purpose of the provincial Mediation and Arbitration Board’ by renaming it the Surface Rights Board.

The bill is also to give landowners the right to request mediation in surface access disputes, while granting neighbours and tenants the right to ask for mediation for claims related to damage caused by an oil and gas activity.

The renamed board will get authority to deal with disputes over the operation of a surface lease, as well as “expanded authority to award costs,” the province said Monday.

The amendments follow consultations with landowners, the oil and gas industry and other stakeholders through the Northeast Energy and Mines Advisory Committee, Lekstrom said.

“We listened, and we have made changes that will result in a more effective process for resolving disputes, one that equally balances the rights of landowners and industry.”

“Environmental objectives”

Amendments to the Oil and Gas Activities Act, meanwhile, are expected to boost the regulatory powers of the province’s Oil and Gas Commission (OGC) and “enhance” the provincial government’s ability to protect the environment from “potential impacts of natural gas and petroleum development.”

Bill 8 also gives the OGC “expanded powers” to use money from the Orphan Site Reclamation Fund to clean up sites “where no oil and gas owner can be held accountable.”

The OGC will also get “broader authority to collect fees and levies that support it in regulating the industry.”

The provincial government, meanwhile, will have authority to set “environmental objectives” for the OGC to incorporate into its permitting decisions.

Also, the province said, language in Bill 8 regarding approvals for pipeline crossings of roads will “better accommodate community interests and government transportation objectives.”

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