The Rural Voice, 1999-11, Page 36Agrilaw
Pipeline repair - a new solution for old problems
Energy pipelines are subject to
regular inspection and, from time to
time, may require maintenance. When
a pipeline company wishes to
excavate its pipeline, what are the
rights of the landowner? Are there
restrictions on how a pipeline
company may access its pipeline?
How can the landowner ensure that he
receives appropriate compensation?
Rights and obligations of pipeline
companies and landowners are
governed by both legislation and
agreements registered against the title
to the land. Such agreements are
called easement or right-of-way
agreements and usually grant to the
pipeline company the right to
construct, maintain, inspect, remove,
replace and repairs its pipelines.
However, such agreements also
generally contain provision restricting
the pipeline company's right of access
to the pipeline to the easement lands.
Except in the case of emergency,
under such agreements the pipeline
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32 THE RURAL VOICE
company requires the consent of the
landowner if the pipeline company
wishes to access the pipeline off
easement. Both the relevant legislation
and these
agreements also
provide that the
company is
responsible to the
landowner for all
damages arising
from its
operations.
Whether access
to a pipeline is
gained by the
pipeline company
on or off
easement,
landowners are
often concerned
that they have not been fairly
compensated for the company's
inspection and maintenance activities,
both for non -easement land use and
the crop loss and disturbance damage
inflicted on easement and off
easement lands. In an effort to address
this problem, the Gas Pipeline
Landowners of Ontario (GAPLO) has
concluded with a pipeline company a
form of agreement called an "Integrity
Dig Agreement" which requires the
pipeline company to enter into a
written agreement with a landowner in
advance of inspection and repair work
establishing minimum levels of
compensation.
The Integrity Dig Agreement
concluded by GAPLO requires the
pipeline company to provide to the
landowner in advance of construction
a sketch fixing the on and off
easement lands to be affected. The
Agreement limits the company's
rights with respect to off easement
land to access (if consented to by the
landowner), specifies time limits for
the work, and restricts the equipment
which may be used so as to minimize
soil damage. Under the Agreement,
the company is required to strip the
topsoil from all affected easement
lands and, -at the request of the
landowner where the pipe is to be
replaced, access lands. The
Agreement further imposes
remediation obligations on the
GAPLO
agreement
spells out
landowners'
rights
pipeline company to return the lands
to their original grade, compaction
and fertility.
GAPLO's Integrity Dig Agreement
requires the company to calculate and
commit to minimum levels of
compensation for all affected lands
prior to repair and maintenance work
being undertaken. Landowners are
compensated for land rights on all
affected off easement lands used for
access and topsoil storage. Crop loss
for the construction and subsequent
five years, as well as disturbance
damages, are calculated and paid on
all affected easement and off easement
lands. To the extent that landowners
suffer damages in excess of this
minimum compensation, or
continuing crop losses in excess of
those compensated, landowners are
entitled to additional compensation. In
addition, if the company is required to
carry out the work in wet soil
conditions, landowners are entitled to
150 per cent of the crop loss and
disturbance damages otherwise
payable.
From the perspective of both the
landowner and the pipeline company,
GAPLO's Integrity Dig Agreement
resolves many of the issues which
have risen in the past with respect to
repair and maintenance work
undertaken by pipeline companies.
Landowners are assured of when, how
long, in what conditions, with what
equipment and on which lands work
will be carried out, and have a written
commitment in advance of construc-
tion establishing their minimum level
of compensation. It is to be hoped that
all pipeline companies will extend the
benefit of similar agreements to their
Iandowners.0
Agrilaw is a syndicated column
produced by the full service London law
firm of Cohen Highley Vogel and
Dawson. 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 farmers on subjects of
interest and importance. The opinions
expressed are not intended as legal
advice. Before acting on any information
contained in Agrilaw, readers should
obtain legal advice with respect to their
own particular circumstances.