Persist Oil and Gas Inc v Flowers, 2023 ABLPRT 236 (CanLII)
LAND AND PROPERTY RIGHTS TRIBUNAL
Citation: |
Persist Oil and Gas Inc v Flowers, 2023 ABLPRT 236 |
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Date: |
2023-04-26 |
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File No. |
RE2022.0022 |
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Decision No. |
LPRT2023/SR0236 |
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Municipality: |
Rocky View County |
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In the matter of a proceeding commenced under section 15 of the Surface Rights Act, RSA 2000, c S-24 (the “Act”) |
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And in the matter of land in the Province of Alberta within the: |
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SE ¼-16-26-5-W5M as described in Certificate of Title No. 121 047 812 (the “Land”), particularly the area granted for Alberta Energy Regulator Licence No. F3655 (the “Site”). |
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BETWEEN: |
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Persist Oil and Gas Inc., |
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Operator, |
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- and - |
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Roy Daniel Flowers, (owner) |
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Pieridae Alberta Production Ltd. |
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The Alberta Gas Trunk Line Co Ltd. |
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Inter Pipeline Extraction Ltd. |
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Pembina NGL Corporation. |
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Persist Oil and Gas Inc. |
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FortisAlberta Inc. |
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Amy Jane Flowers |
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Nova Gas Transmission Ltd. |
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Shell Canada Limited |
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and |
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The Alberta Gas Trunk Line Company Limited, |
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Respondents. |
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BEFORE: |
Romeo A. Rojas, Member |
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(the “Panel”) |
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ORDER GRANTING RIGHT OF ENTRY
[1] The Operator shall have right of entry in respect of 3.15 acres of the surface of the Land as shown outlined in red on Plan A attached and forming part of this Order for or incidental to the operation of a compressor station as described in Alberta Energy Regulator Licence No. F3655 and to give the operator access to the operator’s operations from a public roadway or other public way, and egress from the operations to the public roadway or other public way.
[2] The right of entry is subject to the requirements of Facility Licence No. F3655 and the conditions attached as Appendix A and forming part of this Order.
DECISION AND REASONS
[3] The Panel convened on April 26, 2023, to consider Persist Oil and Gas Inc.’s (“Persist Oil”) Right of Entry (“ROE”) Application.
BACKGROUND
[4] Persist Oil requires access to the Land for for or incidental to the operation of a compressor station as described in Alberta Energy Regulator Licence No. F3655 and to give the operator access to the operator’s operations from a public roadway or other public way, and egress from the operations to the public roadway or other public way.
[5] On December 20, 2022, Persist Oil filed with the Tribunal a Schedule 1 Application, which has been considered by the Panel along with the following documents:
(a) Certified copy of the title to the Land;
(b) Copy of Facility Licence F3655 issued by the Alberta Energy Regulator (“AER”);
(c) Declaration of Most Recent Written Offer filed on December 20, 2022;
(d) Declaration in Support of Survey Plan filed December 20, 2022; and
(e) Declaration of Service confirming service upon Roy Daniel Flowers, Pieridae Alberta Production Ltd., The Alberta Gas Trunk Line Co. Ltd., Inter Pipeline Extraction Ltd., Pembina NGL Corporation, Persist Oil and Gas Inc., FortisAlberta Inc., Amy Jane Flowers, Nova Gas Transmission Ltd., Shell Canada Limited and The Alberta Gas Trunk Line Company Limited filed on April 20, 2023.
SUBMISSIONS BY THE PARTIES
[6] On December 21, 2022, Tribunal administration received an objection to the ROE Application from Ryan J. Barata of Carscallen LLP on behalf of Roy Daniel Flowers. The Landowner submits that right of entry applications pursuant to section 15(1) of the Act are only available as a remedy when an operator is unable to obtain the consent of the landowner pursuant to Section 12 of the Act. The Landowner submits that the Applicant ran a bitcoin mining operation from the Site in violation of a lease between the Landowner and Persist Oil. Bitcoin mining is not an enumerated use within Section 12(1) of the Act. The Landowener therefore requests that the LPRT dismiss the Application.
[7] Tribunal administration notified Persist Oil and other Respondents that an objection to the ROE Application had been received and requested that submissions on the objection be provided by 4:30 p.m. on January 5, 2023. Although the notice to Fortis Alberta Inc. was mailed to the address indicated on the Certificate of Title for the Land, it was returned undelivered.
[8] On December 22, 2022, Tribunal administration received a reply to the Respondent Owner’s objection from Emily McCartney of Gowling WGL on behalf of Persist Oil. Persist Oil acknowledges that it intermittently ran a bitcoin mining operation from the Site between September 2021 and September 2022. The Landowner has filed a Statement of Claim in the Court of King’s Bench seeking a declaration that this operation was in violation of the now-expired lease. Persist Oil submits that the question of whether Persist Oil violated the expired lease is not within the Tribunal’s jurisdiction and is not relevant to determining whether to grant a right of entry order under section 12(1) of the Act. Persist Oil submits it has a right to seek a right of entry order to access its gas compressor operations on the Site, as those operations are within the scope of section 12(1) of the Act.
ISSUES
1. Should the Tribunal hold an oral hearing, or further proceedings, to consider the Application and the objection?
2. If no hearing is required, should the Tribunal grant the right of entry Order to the Operator as applied for?
3. If the Right of Entry Order is issued, what conditions, if any, should be attached to the Order?
DECISION
1. The issues raised by the Respondent Owner do not require an oral hearing. The Tribunal will consider the ROE Application and objection based on the filed ROE Application and the parties’ written submissions.
2. Persist Oil shall have right of entry across the portion of the surface of the Land shown outlined in red on the plan(s) attached to the Schedule 1 Application for or incidental to the operation of a compressor station as described in Alberta Energy Regulator Licence No. F3655 and to give the operator access to the operator’s operations from a public roadway or other public way, and egress from the operations to the public roadway or other public way.
3. The Right of Entry Order will be subject to the conditions attached as Appendix A and forming part of this decision.
REASONS FOR DECISION
1. Should the Tribunal hold an oral hearing, or further proceedings, to consider the Applications and the objection?
[9] Section 15(5) of the Act provides the Tribunal with discretion to determine whether to hold a hearing with respect to an application and objection:
15(5) When the Tribunal receives an objection after the serving of the notice referred to in subsection (4)(b)(i), the Tribunal may hold a hearing with respect to the application and objection at a time and place that the Tribunal considers advisable.
[10] Section 28(2)(c) of the Interpretation Act, (RSA 2000, cI-8) defines “may” as permissive and empowering rather than mandatory. Section 8(3.1) of the Act provides that “the Tribunal is not bound to hold oral hearings but may instead, subject to the principles of natural justice, make decisions on the basis of written submissions”. Both the Respondent Owner and the Operator have made written submissions, and these have furnished the Panel with sufficient information to make a decision. Therefore, the Panel determines that it is in accordance with natural justice to make its decision on the basis of written submissions. An oral hearing is not required.
2. If no oral hearing is required, should the Tribunal grant right of entry to the Operator as applied for?
[11] Section 15 of the Act and sections 2 through 6 of the Regulations set out the requirements that an operator must fulfill before the Tribunal may issue a right of entry order.
[12] Alberta courts have been clear that once a licensing authority (in this instance the AER) has issued a permit or licence to the operator, and the operator has met the technical requirements of the Act and Regulations, the Tribunal has very limited discretion to refuse to grant a Right of Entry Order.
[13] In Mueller v. Montana Alberta Tie Line, 2011 ABQB 738, the Alberta Court of Queen’s Bench stated at para 34, “following the issuance of a permit or license by the Energy Resources Conservation Board or the AUC within which the party has authorization to seek entry onto the land, the Land and Property Rights Tribunal has no alternative but to issue a Right of Entry Order. It is important to keep this role of the Land and Property Rights Tribunal separate from that of ordering compensation, where the standard of review and deference may in fact be different.”
[14] The Alberta Court of Appeal has also examined the interplay between the Tribunal’s jurisdiction and the licensing authority and determined the two bodies must work together and that the Tribunal cannot make an order that is inconsistent with the AER’s permit (Togstad v Alberta (Surface Rights Board), 2014 ABQB 485 (CanLII), 2015 ABCA 192).
[15] The Courts have been very clear that the Tribunal’s discretion in making right of entry orders is limited. The Tribunal confirms the technical requirements are met, and it may consider making the right of entry order subject to conditions. The Tribunal must ensure that any right of entry order it issues is consistent with the licence or permit issued by the AER. This means the Tribunal cannot use right-of-entry proceedings to revisit terms of decisions issued by the AER; rather, the Tribunal’s substantial focus is on issues of compensation.
[16] The Panel has reviewed the Applications and considered the Tribunal’s authority under the relevant sections of the Act and the requirements of the Regulations.
[17] The Panel is satisfied that:
• The Operator possesses valid licence from the AER and the Right of Entry Application is consistent with the AER Licence;
• All Respondents have been properly served with the Application, and were served more than 14 days prior to the date of this decision;
• The final offer has been presented by the Operator and refused as shown in the Declaration of Most Recent Written Offer filed as part of the Application; and
• The Applicant has provided the required documentation and has met all further legislative requirements.
[18] The Panel has considered the Landowner’s submissions and objection, and finds that addressing the allegation of past bitcoin mining is outside of its jurisdiction. The Application is supported by a valid AER facility license for a compressor station. The Tribunal’s order is limited to activities for or incidental to the operation of that facility and access to that facilitiy, and is subject to the requirements of that AER licence.
3. If right of entry is issued, what conditions, if any, should be attached to the Right of Entry Order?
[19] No party requested any conditions. The Panel considers it appropriate to attach the Tribunal’s standard conditions.
Dated at the City of Calgary in the Province of Alberta on April 26, 2023.
LAND AND PROPERTY RIGHTS TRIBUNAL |
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Romeo A. Rojas, Member |
A P P E N D I X A
Conditions
Use and Access
1. Access to the Lands shall only be by employees, authorized contractors or agents of the Operator and shall only be to the area granted by this Right of Entry Order.
2. The Operator shall contain its operations to the area granted by the Order, including the travel and movement of vehicles and other equipment.
3. The Respondent owner shall have the right to use the area granted by this Order and the Operator shall provide such crossings and other works as may reasonably be required for:
(a) gaining access to the parts of the Land severed or otherwise affected by this Order, and
(b) for livestock at large.
Registration at Land Title Office
4. The Operator shall not allow a claim of builder’s or other lien arising out of the construction and operation of the project to be filed or claimed against the Lands.
Operator’s Responsibility During Construction and Operation
5. The Operator shall conform to all applicable legislation and regulations and shall follow good oilfield practices including but not limited to:
(a) The Operator shall conserve the top soil in a good and workmanlike manner, having regard to good soil conservation practices and any reasonable request or direction of the Respondent owner.
(b) The Operator shall not obstruct or impede the natural drainage of the remainder of the Land, and to that end shall install or construct such culverts and other works as the Respondent owner may reasonably require.
(c) The Operator must promptly remove all debris from the area granted.
(d) The Operator shall construct and maintain such fences and other works and to such standard as the Respondent owner may reasonably require to ensure the safety of and to prevent the straying of livestock.
(e) Except as may be authorized by any other Act, the Operator shall not drill any well on the area granted for the purpose of obtaining water for domestic use without the written consent of the Respondent owner.
(f) The Operator shall control noxious weeds from growing on the area granted, in compliance with the Weed Control Act as to the prevention and destruction of weeds.
(g) Domestic animals in the keeping of the Operator, contractors, or employees shall not be allowed to roam at large in the area granted by this right of entry.
Maintenance
6. The Operator shall practice good stewardship of the surface and operate and maintain the area granted in accordance with good oilfield and environmental practices.
Communication
7. The Operator shall immediately notify the Respondents of any spill, leak or problem with the well. Notification includes identifying the location of the leak or break and the measures being taken to contain, repair and clean up the spill or leak.
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This is Plan “A” attached to and forming part of Order No. LPRT2023/SR0236