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compensation which reflects the
appreciating ,value of the land rights
appropriated and considers continuing
negative impacts on soil productivity and
required changes in farm practices with
resulting financial Toss: opportunity costs
with respect to both value-added
agricultural activities and future
development; and sociological impacts.
including diminishment of quality of life.
Expert evidence filed by these
landowners in support of their application
establishes current land values for surface
facilities through reference to amounts
paid by gas utilities for equivalent
facilities discounted to provide an
appropriate annual lease value. Other
expert evidence addresses the continuing
impacts associated with the construction
and operation of these facilities including
interference with systematic drainage.
limitations imposed on crop selection,
disruption of the scheduling of
agricultural operations, altered cropping
patterns and increased headlands.
A sociological impact assessment
undertaken by LCSA describes the fear,
anxiety. uncertainty, anger, frustration
and sense of powerlessness experienced
by landowners resulting from the
imposition of these facilities on them,
their lack of choice, impacts on their
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34 THE RURAL VOICE
agricultural operations and their ongoing
concerns about these facilities.
Additional expert evidence addresses
limitations imposed by these facilities on
more. intensive or value-added
agricultural -related land uses (eg.
greenhouses, larger livestock facilities,
home-based industries and on-site
agricultural processing) as well as other
farm -related operations (eg. bed and
breakfast establishments, farm markets,
retail sales of produce, crafts, jams, etc.).
Also considered in this evidence are
restrictions imposed by these facilities on
non-agricultural or non-farm uses
permitted under area official plans and
zoning by-laws including agricultural
service and supply establishments, non-
farm residential use and potential for
recreational or institutional uses such as
golf courses.
In their request that these various
factors be considered in awarding "just
and equitable" compensation, LCSA
landowners have provided to the OEB an
analysis and valuation by an agricultural
economist of these various impacts.
LCSA landowners are requesting that the
OEB require that the annual facilities
payment under their gas storage leases
reflect the current value of land rights,
disturbance damages and production
losses which include an assessment of
crop losses attributable to the construction
and operation of storage facilities; their
higher operating costs around such
facilities; and the opportunity costs and
life quality impacts which result from
these facilities.
The position of LCSA landowners is
that the current system of compensating
gas storage landowners is seriously
flawed and that a fresh approach to
compensation is required. If successful,
the results of this application may assist
other gas storage landowners in
addressing the inequities of current
compensation.0
Agrilaw is a syndicated column
produced by the full service London
law firm of Cohen Highley LLP. Paul
G. Vogel, a partner in the firm,
practices in the area of commercial
litigation and environmental law.
Agrilaw is intended to provide
information to farm operators on
topics of interest and importance. The
opinions expressed are not intended as
legal advice. Before acting on any
information contained in this column,
readers should obtain legal advice with
respect to their own particular
circumstances and geographical area.