2017 Harvest

2017 Harvest

Wednesday, June 24, 2015

Enbridge Gas Distribution loses appeal over cost to relocate pipelines

In August, 2014, I posted about a decision from the Ontario Superior Court involving Enbridge Gas Distribution Inc. ("EGDI") and Metrolinx.  Metrolinx was awarded $2.3 million that it had previously paid to EGDI for the relocation of 6 pipelines.  The Court ruled that it was EGDI that was responsible for the cost.

The Court of Appeal has now dismissed EGDI's appeal of the lower court decision.  EGDI raised two issues: 1) CN, the predecessor in title to Metrolink, had a contractual right to require EGDI to pay to relocate pipelines only on CN-owned lands, not municipal road allowances; and, 2) even if Metrolinx had those rights, they were not conveyed by CN to Metrolinx.

The Court of Appeal did not agree with EGDI's interpretation of the agreement, finding that the obligation to pay to relocate pipelines included relocation for the purposes of alteration in the railway property, facilities or operations.  Those purposes were not restricted to railway-owned lands.  The Court also ruled that CN did transfer to Metrolinx the right to require EGDI to remove its pipelines at EGDI's expense.

Read the decision at: Metrolinx v. Enbridge Gas Distribution Inc.