Compensation for Injurious Affection: Impact on remaining land or impact on financial position of owners?

AltaLink expropriated a right-of-way over a strip of land from an Alberta couple for an electrical transmission line.  In a compensation hearing before the Alberta Surface Rights Board (the "Board"), the owners were denied compensation for injurious affection.  The injurious affection they claimed was a loss in value of the remainder of their property that was not taken by AltaLink.  The owners appealed the Board's decision to the Alberta Court of Queen's Bench and, on appeal, the Court reversed the decision of the Board and awarded the owners $125,780 in lost value plus interest.

The land in question consisted of two adjacent parcels containing approximately 230 acres, of which approximately 121 acres were cultivated.  The owners had purchased the land in February, 2013 for $511,500, and they were aware at that time that AltaLink had received approval from the Alberta Utilities Commission to construct and operate the transmission line across the property.  Prior to the purchase of the property, the new owners had rented the property for approximately 27 years, and it appears from the decision that they were able top purchase the property at below market value.  The Board found that the market value at the time of the expropriation in 2014 (the date of valuation for the purpose of calculating compensation) was somewhere between $902,000 and $930,000.

The owners argued that the taking of the right-of-way resulted in a loss of value to the balance of the property that was not taken as right-of-way related to the presence of the right-of-way and the transmission line.  They argued that their loss was not limited to the loss of value to the land as they were currently using it, but should be calculated based on their loss of ability to subdivide the property for new residential lots.  But for the AltaLink right-of-way, the owners could subdivide and sell the individual lots.  They put the value of their loss at 30% of the market value of the property.

The Court disagreed with the owners that the right-of-way would prevent the development of multiple residential lots, but accepted that the right-of-way would result in a loss in the value of the lots that could be created.  On that basis, the Court would have calculated the compensation to be paid to the owners based on  a market value loss of 15% (half of the 30% proposed by the owners), or approximately $131,000.  The Court then ended by making a finding that the $125,780 that would have been awarded by the minority dissenting member of the Board (in the original hearing) was therefore reasonable and set compensation at that amount.

Taken on its own, the Court's ruling on loss of value to the remainder of the property based on loss of value of prospective subdivision lots is not remarkable.  However, what is noteworthy is the Court's rejection of AltaLink's argument that no injurious affection compensation was payable at all because the market value of the property never fell below the amount the owners paid for the property.  AltaLink argued, and the majority of the Board had agreed, that an award of injurious affection would result in a windfall for the owners because they had paid substantially less than market value for the property.

But the Board had incorrectly "focused on the financial loss to the landowners and not the loss in value of the remaining land ... they were suspicious that the negative impact of the transmission line had already been factored into the sale price."  The Court ruled that "the fact that the Appellants purchased the land after the Respondent obtained a permit and license to build the line is of no consequence.  The payment for injurious affection is based on the impact on the value of the remaining land, not the impact on the financial position of the owners.  This does not result in a windfall or unjust enrichment to the Appellants because, until the line is removed, it will have a negative impact on the Land's value, which is an economic loss."

Read the decision at: Koch v Altalink Management Ltd.

Another Organized Pseudolegal Commercial Argument (OPCA) Case in Alberta

An Alberta man ("ACG") challenging the court process initiated by the company that holds a second mortgage on his property has been labelled an "OPCA" litigant for relying on "organized pseudolegal commercial arguments".  Although he admitted that he had stopped making payments on the second mortgage, ACG claimed that the terms of the mortgage were unfair and predatory, that there was lack of disclosure, that he was not aware of the terms of the mortgage when it was signed (constituting fraud), that the mortgage was unsupported by valuable consideration, etc.  He also made "advanced stereotypic and well known OPCA arguments and motifs, such as the double/split person "Strawman"."

The "Strawman" double/split person concept is used to attempt to avoid legal obligations through "the notice of treating a named individual as an "estate" that is somehow separate from the person who is subject to the law and that is free from governmental regulation".  ACG's sought to distinguish himself as a "individual human being" from his legal "person".  One part of his split person may have signed the mortgage, but the other part is not bound.  ACG swore the following in an affidavit:

1. I am a man and an individual human being with standing within the territory commonly known as Canada.
2. I am exercising my right NOT to take recognition as a person before the law.
3. I am not a person or any class of person.
4. I am the Beneficiary and Grantor of the account referred to as the juristic person [ADG].

ADG referred to his birth certificate and statement of live birth in connection with the last point.

In addition to the "Strawman" arguments, ADG also claimed that what was loaned to him by the mortgagee was nothing more than "book-entry credit created out of thin air", which constituted fraud.  The Court Master hearing this case did some research on the term "book-entry credit" and found that it had been discussed in a number of Australian court decisions.  The source of the "book-entry credit" argument appeared to be a book called "How to Screw 'Your' Bank".  The Master rejected this argument.

After granting the order sought by the mortgagee, the Master concluded her reasons with the following:

Beyond that, it would be a pity if ADG lost his home because he exercised poor discretion in his search for reliable sources of legal information. There are better alternatives than obsolete legal dictionaries, discounted texts like How to Screw ‘Your’ Bank, and Youtube videos of men scribbling on whiteboards. The decision is, of course, up to ADG, however, he should think carefully before he makes statements such as: 

I can find no law that authorizes book-entry credit and thus must conclude it is fraudulent criminal activity which I cannot take part in. ...

He cannot expect the courts to view him as a ‘fair dealer’. When he makes such statements the Court may be inclined to accept the alternative that ADG’s appearance in court is for an improper and ulterior purpose. If so, ADG can expect negative consequences.

Read the decision at: Crossroads-DMD Mortgage Investment Corporation v Gauthier.

Alberta Court upholds denial of crop insurance on basis of false or misleading reporting

The Alberta Court of Queen's Bench recently dismissed an application for judicial review of a decision by the appeal committee related to Alberta's crop insurance program.  The regulations that govern crop insurance provide that the decision of the appeal committee is final and binding on the parties; only a challenge to the decision by way of judicial review is possible.

In this case, crop insurance denied claims by a farmer for its 2009 canola crop, its 2009 Canadian Prairie Spring wheat crop and its 2010 Canadian Prairie Spring wheat crop.  Crop insurance declined to pay the benefit to the farmer on the basis that the farmer's post harvest assessments were incomplete and inconsistent with actual crop production.  On the appeal of this denial of coverage, the appeal committee decided that credibility was an issue.  The committee found that where there was a conflict in the evidence between the farmer and the crop insurance witnesses, the evidence of the crop insurance witnesses was to be preferred.  The committee cited examples where the farmer under-reported grain sales or was not forthright about grain sales until confronted with third-party documentation obtained during the crop insurance investigation.  The committee, which consisted of five farmer members, was left with the impression that the farmer "had not been honest and forthcoming in his dealings with AFSC during the claims process and subsequent contact with Program Cross Compliance and Investigation, despite several opportunities to make full and honest disclosure of the production and sales of crops."

The Court ruled that the standard of review applicable to this judicial review was a standard of reasonableness: if the Court found that the appeal committee's decision was "reasonable", then the decision would stand.  On review of the record from the appeal process, the Court concluded that the appeal committee's decision was, in fact, reasonable, and denied the judicial review application on that basis.  In particular, the Court found that it was abundantly clear that the committee had found evidence of false or misleading reporting from the farmer.  The Court could find nothing unreasonable about that conclusion and the denial of the crop insurance claims.

Read the decision at: F Prins Potatoes Ltd v Agriculture Financial Services Corporation.

Alberta conservation easement leads to fight over fence height restrictions, etc.

The Defendant in this case bought a large cattle ranch from the Nature Conservancy of Canada (NCC), the Plaintiff in the case.  The ranch lay on the eastern slopes of the Rockies within the migratory corridors of a wide array of species.  NCC thought that the ranch was strategically located for movement of wildlife in Alberta - the "North American Serengeti".  Before selling the ranch to the Defendant, the NCC registered a conservation easement against the title to the property to ensure, among other things, that the use of the property would not impede future wildlife migrations.

After purchasing the property, the Defendant landowner began to replace old fencing around the perimeter of the ranch.  He believed the new fencing would be more effective in restraining his bison, but still permit wildlife to migrate through the property.  NCC disagreed, saying that the Defendant had breached the terms of the conservation easement by building his fence higher than was allowed.  This would impede the migration of wildlife.

There were a large number of issues before the Alberta Court of Queen's Bench in this case (the written reasons comprise 605 paragraphs with 144 footnotes), including issues about the terms and applicability of the conservation easement.  On the issue of the alleged breach, the Court ruled that the parties had agreed on the following fence height restriction:

The Grantor may maintain, replace and repair the fences, roads, buildings, and other improvements located on the Property. If doing so with fences or roads, they are to be maintained, replaced or repaired at or near the existing ones. The Grantor may not build fences or roads in areas where none exists without the Grantee’s permission. The building of wildlife-proof fences is not permitted, except in localized areas as needed to control or prevent wildlife damage to haystacks, stored forage or domestic gardens. If any or all of the buildings are removed or destroyed, the Grantor may replace them with structures of a similar purpose at or near the same location within the existing 5 acre home site. Any building construction shall require the prior notice to the Grantee.

The Court found further that NCC failed to prove that the replacement fence that had been installed breached the agreed restrictions.  NCC failed to show that the Defendant placed the new fence in any new locations without permission and the evidence demonstrated that the fence was wildlife permeable.  In fact, the Court found that it was likely that the new fence restricted wildlife movement less than the old fence that it replaced.

Read the decision at: Nature Conservancy of Canada v Waterton Land Trust Ltd.

Gas supply easement binds any severed parcels

The Alberta Court of Appeal rejected an application for leave to appeal from a decision that found that a gas supply easement continued to apply after a lot was severed into three parts (creating two new lots).  The owners of the original parcel applied to the Alberta Utilities Commission for an order directing the Evergreen Gas Co-op to discharge its easement from the newly subdivided lots.  The Commission refused, and the owners sought leave to appeal the decision to the Court of Appeal.

The Court of Appeal confirmed that the easement, which was a general easement that applied to the entire original property (rather than a limited easement or ROW over a particular portion of the property), would continue to apply to any subdivided parts of the property.  The Court rejected the argument by the owners that the imposition of the easement on the new parcels was nevertheless "improper" within the meaning of the Gas Distribution Act.  The Court also rejected the argument that the easement "agreement" (the easement was created when the owners agreed to receive gas service from the Co-op, the terms of the contract being statutorily set) was "unconscionable" - how could the contract be unconscionable when the owners had applied for gas service and the terms of the contract were imposed by statute?

Read the decision at: Andre v Evergreen Gas Co-op Ltd.

Alberta Court interprets a farmer's "poorly-drafted" will

In this case, B owned and operated a large farm that included 33 quarter sections of land and about 600 cattle.  He had a will and died.  And although he remained married to his wife, D, at his death, he had been living with G for more than 20 years.  The issue in the case was whether a specific bequest of $700,000 in favour of G should be paid only if the specific farm lands in which she was given a life interest were sold, and then only from the proceeds of the sale of those lands.  The alternative was that the bequest was conditional on the sale of other lands that formed part of the residue of the estate. 

In a certain paragraph of his will, B specifically bequested to pay and transfer the amount of $700,000 to G "immediately if the farm lands are sold or at the time of sale if the farm land sells at a later date."  The term "farm lands" is not defined, giving rise to the issues in this case. 

Based on a reading of the entire will as a whole, and in light of the circumstances of the making of the will, the Court ruled that G's interpretation was to be preferred.  An order was made requiring that the will be interpreted as thought it read that the $700,000 was payable immediately when the residue lands were sold or at the time of sale if the residue lands are sold at a later date.  In other words, the lands in which G held a life interest did not have to be sold for G to receive the $700,000 - G did not have to abandon her life interest in order to get the bequest payment.

Read the decision at: Bruce Estate (Re).

Oil and Gas Lease: Operate at a loss or nominal return or lose your lease?

This case involves five freehold petroleum and natural gas (PNG) leases that cover most of a section of land in Alberta.  The Plaintiffs are some of the current owners of the land plus a top-lessee, whose lease will only become effective if it is determined that the five existing leases have terminated.  The main issue in the case was whether those leases terminated as a result of the stoppage of operation and production from a well on the land between 1995 and 2001.  More specifically, the Court asked whether the Defendants (or their predecessors) were required to operate the well at a loss or nominal return during those years in order to preserve and continue the leases.

The Alberta Court of Queen's Bench heard evidence from a number of factual and expert witnesses about the decision made to shut-in the well in question for economic reasons.  In the end, the Court ruled that the well was shut-in for reasons permitted under the leases, and the leases did not terminate as a result of the cessation in operations and production.  The Plaintiffs' action was dismissed as a result.

Read the decision at: Stewart Estate v TAQA North Ltd.

Shaun Fluker on Bill 2 in Alberta: Implications for Landowner Participation

Click on the following link to read a comment by University of Calgary Assistant Professor Shaun Fluker on Alberta Bill 2 (Responsible Energy Development Act) and it implications for landowner participation: Bill 2 and its implications for landowner participation in energy project decision-making.  Fluker's observations on the bill include the following:

Bill 2 contains no statutory obligation on the Regulator to conduct a hearing either before or after it makes a decision on whether to approve a proposed energy project.  Bill 2 repeals the statutory hearing rights provided to a landonwer in section 26(2) of the ERCA to contest an energy project application, and does not replace them.

NEB Decommissioning - Pipeline Abandonment without landowner participation

Recently I wrote about an application filed by TransCanada Pipelines Limited for the "decommissioning" of part of its NOVA pipeline system in Alberta.  The National Energy Board (NEB) has created a category of "decommissioned" for pipelines permanently removed from service, but in situations where service on the "pipeline" system continues (i.e. customers are not affected).  The responses to information requests issued to TransCanada by the NEB reveal the dangerous position into which this "abandonment but not abandonment" places landowners.

Essentially, TransCanada is abandoning its pipeline in place.  However, since there is no abandonment application required under Section 74 of the NEB Act, there does not need to be a public hearing and there does not need to be landowner participation in the decision-making process.  Even if there was participation available, landowners would have no access to participant funding from the NEB; this is not one of the types of applications for which funding is made available (much like the ongoing abandonment cost estimate hearing process in which landowners must fund their own participation).

Read TransCanada's responses to the information requests at: NOVA response.

TCPL files major decommissioning application with NEB

The NOVA Gas division of TransCanada Pipelines Limited (TCPL) has filed a major pipeline "decommissioning" application with the National Energy Board (NEB).  TCPL proposes to "decommission" in place the vast majority of a 266 km length of pipeline, capping it, filling it with an inert gas, and leaving it to corrode in the ground.  The application is at the following link: Decommissioning Application. 

Several years ago, the NEB introduced the concept of "decommissioning", which effectively allows a pipeline company to abandon its pipeline in place without having to make an application to abandon.  Where there is no application for abandonment, landowners have no access to participant funding to support their involvement in the approval process. 

Trial ordered for pipeline right-of-way abandonment case

Calgary landowner Genstar Development Company applied to the Alberta Court of Queen's Bench remove a right of way held by Plains Midstream Canada ULC from title to its property.  Plains Midstream opposed proceeding on the basis of an application with written materials, arguing that a trial was necessary.

In the 1950's, Cremona Pipe Lines Ltd. constructed the Cremona Pipeline stretching 444 km between Calgary and Sundre.  Cremona had an Easement Agreement with one of Genstar's predecessors in title.  The Agreement provided that it would be binding on all future owners of the land and would remain in effect from May 19, 1956 and "for so long thereafter as [Cremona] may desire to exercise" its rights and privileges.

While the northernmost 314 km of the pipeline remains in operation, operation of the southernmost 130 km was suspended by Pembina Pipeline Corporation (a Genstar predecessor) in 1997; the pipeline under the lands owned by Genstar was removed from the ground.  In 2009, Plains Midstream purchased the line from Pembina, including the rights of way under all lands along the Cremona Pipeline.

In 2010 and subsequently, Genstar asked Plains Midstream to discharge the right of way on its lands.  Plains Midstream responded with an offer to re-route its right of way, but Genstar eventually commenced the court application. 

In reviewing the application materials, the Court concluded that a trial would be necessary in order to have all of the evidence required to answer the legal issues in play: "Given the complex and unsettled legal issues identified above, it is my view that any decision in this case should be founded on complete and nuanced findings of fact resulting from a trial, rather than on a paper record resulting from an originating application."

Read the decision at: Genstar Development Company v. Plains Midstream Canada ULC.

Alberta Court of Appeal upholds landowner's right to terminate easement

In January of this year, I posted a blog about an interesting case in Alberta concerning the right of a landowner to terminate a utility easement agreement (Alberta Court Rules in Favour of Landowner).  The land in question had been owned originally by the CPR, which had a right to terminate the right of way of the utility.  The lands were transferred to the current owner, who then gave notice of termination to the utility.  The Alberta Court of Queen's Bench decided that the right to terminate could be assigned to the new landowner and that the right could be exercised.

In a recent decision, the Alberta Court of Appeal has agreed.  The Court of Appeal agreed that the agreements were not personal contracts, and were validly assigned to the new owner (Remington Development) including the right to terminate.  The Court rejected the utility's argument that the easements were actually only licenses that could not be assigned; it found that even if the agreements were licenses, they could be assigned. 

With the decision, the utility has no land rights to maintain its power transmission operation on the lands in question.  It will either have to obtain a further agreement from the landowner or attempt to expropriate the rights through the applicable regulatory process.

Read the decision at: Remington Development Corp. v. Enmax Power.

Plains Midstream complains that some media using images from 2011 spill, not the latest spill

Plains Midstream Canada cautions the public on its website that, "You may have seen some shocking images circulating over the last couple days.  While we appreciate that images are an important part of telling a story, some of them are incorrect.  We have seen images online, on t.v. and in the news that are not related to the Rangeland pipeline incident at all, such as images that depict oil saturated wetlands and oil slicks.  Some of the images depict the Rainbow pipeline spill from 2011 ... We have contracted both photographers and videographers to create a visual portrait of the release site."

A spill of light sour crude oil into a tributary of the Red Deer River near Sundre, Alberta was discovered on June 7.  Preliminary estimates suggested a release of between 1,000 and 3,000 barrels of oil into the environment.  Plains Midstream is warning residents that "water drawn directly from the Red Deer River north of Sundre to the Gleniffer Reservoir should not be used for human or animal consumption".  Plains Midstream is still cleaning up from last year's 4.5 million-litre oil leak in a remote area northeast of Peace River.

Alberta Court of Appeal increases setback of sour gas pipeline from Native Reserve

Alberta's Energy Resources Conservation Board (ERCB) approved an application by Suncor to construct two pipelines, one of which would carry sour gas.  The lines were proposed to cross in the vicinity of the Stoney Nakoda/Eden Valley Reserve, which consists of 100 separate homes and approximately 650 residents.  The Stoney Indian Band appealed the ERCB decision to the Alberta Court of Appeal on the basis that the ERCB had erred in failing to characterize the Reserve as an "urban centre" (in which case the setback requirements would be more stringent).

Setback requirements for level three sour gas pipelines in Alberta are listed in Directive 056: Energy Development Applications and Schedules as follows:

0.1 km to an individual permanent dwelling up to eight dwellings per quarter section;

0.5 km to an unrestricted country development;

1.5 km to an urban centre or public facility.

Urban centre is defined as: “a city, town, new town, village, summer village, hamlet with not fewer than 50 separate buildings, each of which must be an occupied dwelling, or similar development the [Board] may designate as an urban centre”.

Before the hearing, in response to a request from Suncor, the ERCB staff found that the Reserve was not an urban centre. This was challenged at the hearing. The ERCB did not change the designation. It reaffirmed that the Reserve did not qualify as an urban centre because “the area of the [Reserve] nearest the trunk line has an estimated average residence density of five residences per quarter section, less than the residence density of eight residences per square section necessary to qualify for an urban centre designation.”

The Court found that the fact that the Board embarked on a “density analysis” was not in and of itself problematic as it may have served as a relevant factor to the Board’s analysis, given the Board’s statutory discretion.  However, it could not be the only relevant factor. Simply looking at the “density criteria” is incomplete and insufficient. The definition of urban centre in Directive 056 requires two considerations. First, is it a “city, town, new town, village, summer village, hamlet with not fewer than 50 separate buildings, each of which must be an occupied dwelling”, or, second, a “similar development”? In analyzing whether the Reserve was a “similar development”, the Board had to have recourse to the concepts of “city, town, new town, village, summer village, and hamlet”, which are not defined in Directive 056, but in the Municipal Government Act, RSA 2000, c. M-26.

A hamlet is defined in section 59 of the MGA as a community which “(a) consists of 5 or more buildings used as dwellings, a majority of which are on parcels of land smaller than 1850 square meters, (b) has a generally accepted boundary and name, and (c) contains parcels of land that are used for non-residential purposes.” The Reserve has more than 100 homes and houses schools, a church, band offices and a food bank.

The Court allowed the appeal and remitted the matter back to the ERCB for its consideration and redetermination in accordance with the Court of Appeal ruling.

Read the decision at: Big Loop Cattle Co. Ltd. v. Alberta (Energy Resources Conservation Board).

Alta. Court rules lawyer negligent in drafting will meant to bequeath farmland

The Alberta Court of Queen's Bench has ruled that a solicitor was negligent in drafting a will for a client after the intended gift to a beneficiary failed.  The deceased owned land, including four quarter sections he wished to pass onto his brother through his will.  In drafting the deceased's will, the lawyer did include the bequest.  However, it was not actually the deceased who owned the four quarter sections.  Instead, the property was held by the deceased's company.  The intended gift failed and the brother sued the lawyer for negligence.

The Court found first that the lawyer owed the brother, as an intended beneficiary, a duty of care.  Next, the Court found that the lawyer had fallen below the standard of care required in failing to address the fact that the land was owned by the company: "A reasonably competent solicitor in those circumstances would, at a minimum, have asked who owned land to be gifted in the will or done a search to ascertain in ownership."

The Court awarded damages to the brother in an amount equal to the value of the land as of the date of the death of the deceased testator.  Added to that amount was some $11,200 which would have been earned by the brother as surface lease income had he received the properties.

Read the decision at: Meier v Rose.

Sarg Oils Limited well abandonment saga continues

Professor Nigel Bankes of the University of Calgary has posted a comment on a recent review decision by the Energy Resources Conservation Board (ERCB).  The decision relates to a failure by Sarg Oils Limited to pay the costs of abandoning oil and gas wells in Alberta.  Sarg had failed to abandon the facilities itself, so the ERCB conducted the abandonment and then sought to recover its costs from Sarg.  Bankes points out the possibility that the Orphan Well Fund may end up having to cover costs of further abandonments.  He notes that, although the oil and gas industry is supposed to cover the cost of the Fund, the Alberta government injected $30,000,000 into the Orphan Fund as part of a package of incentives for the energy industry in 2009.

Read the comment at: Nigel Bankes' comment on Sarg Oils Limited.

Alliance Pipelines told its pipeline doesn't meet safety requirements for location: Updated

The National Energy Board (NEB) has made a ruling that the Alliance Pipeline in area of the Alexis Casino development in northwestern Alberta is not satisfactory for use there under current conditions.  Various requirements for pipeline specifications and operations depend on class location.  Class location is generally determined on the basis of how many people live and work in the vicinity of the pipeline.  Class 1 locations feature low density populations.  The Alexis Casino segment of the Alliance high-pressure gas pipeline is currently designated as a Class 2 location, but the NEB had suggested to Alliance that it would become a Class 3 location due to the development. 

Alliance sought to maintain the Class 2 designation so that it could continue to use the pipeline as constructed at its current operating pressure.  It argued that it has never seen more than 110 occupants during any visits to the casino since early 2008.  Alliance estimates that up to 842 people can be present at the Casino site at a given time.  Alliance has installed yellow-coloured reinforced concrete slabs over the pipeline as protection against any potential mechanical damage from equipment contact, three strips of yellow warning tape, and line makers along the right of way.  It contends that these safety measures are sufficient to allow the pipeline to continue to operate under a Class 2 location designation.

The NEB disagreed with Alliance.  The Board was of the view that the probability that significantly more than 20 persons could be present at the Casino site is high enough to, on its own motion, conclude that the designation of the area as Class 2 does not adequately address the possible consequences of failure at the Casino site.  The Board found that the consequences of a failure at the Alexis Casino pipeline segment are potentially severe, given that up to 842 individuals concentrated in a localized, constrained area could be impacted.  The pipeline must therefore be in compliance with Class 3 location requirements.

Despite its ruling, the NEB has given Alliance until May 31, 2013 - one and a half years - to bring the pipeline into conformity with the requirements that currently apply to the pipe.

Read the NEB decision at: Letter Decision.

UPDATE:

Here is a diagram showing the proximity of the NPS 36 high pressure gas line to the Casino development.

Alberta farm land tax assessment case sent back for re-hearing

Madam Justice J.M. Ross of the Alberta Court of Queen's Bench in Edmonton has allowed an appeal of a property tax assessment decision involving farm land.  She granted leave to appeal to the Applicant, Associated Developers (AD), from a 2010 decision of the Composite Assessment Review Board (CARB) assessing AD's land as industrial property rather than as farm land.  Justice Ross then heard the appeal, overturned the decision of the CARB and sent the case back to the Board for re-determination.

The Property in question, located in Edmonton, was assessed as industrial property at a value of $6,723,500 in the 2010 assessment year for the 2009 taxation year.  The relevant valuation period for the 2010 assessment was therefore 2009.  Had the Property been assessed as farm land, the assessed value would have been $863,000.   The Applicant complained to the CARB, asserting that the property should have been assessed as farm land.  The Applicant had filed with the CARB annual leases between AD and a farmer for the years 1999-2010.  The leases included terms that the lands would be used solely for agricultural purposes. 

The City of Edmonton (arguing for the industrial land assessment) argued that the crop of hay on the property had not been harvested in 2009.  The City's position was that if the crop was not cut, it could not be said to have been produced and, therefore, was not used for farming operations and could not be classified as farm land.  AD argued in response that the land could still be farm land even if not hayed in 2009, as there are many circumstances in which people leave land idle for a year for a variety of sound agricultural reasons.

Justice Ross allowed the appeal because the CARB failed to provide adequate reasons for its decision and failed to identify the appropriate legal tests in its reasons.  These were breaches of the principles of natural justice and the duty to be fair.  She cancelled the decision and sent the matter back to the CARB to be re-heard.

Read the decision at: Associated Developers Ltd. v. Edmonton (City).

Enbridge plans to twin 345 km Athabasca oil pipeline

Enbridge Athabasca has announced its proposal to develop a new crude oil pipeline project called the Athabasca Pipeline Twinning Project in response to increased oil production in the Kirby Lake area in Alberta.  Enbridge says that the pipeline will "generally follow" the existing Athabasca Pipeline right-of-way.  Two new pump stations will also be added.  Enbridge anticipates construction to begin in the winter of 2013/2014 and in-service by early 2015.

Case comment on Omers Energy oil and gas lease case available

Professor Nigel Bankes of the University of Calgary has posted a case commentary at ABlawg.ca on the recent Alberta Court of Appeal decision in Omers Energy Inc. v. Alberta (ERCB): case comment.  I posted a brief note on this case last week.