National Energy Board Act (R.S.C., 1985, c. N-7)

Marginal note:Compensation for severance, etc., of mining property

83. A company shall, from time to time, pay to the owner, lessee or occupier of any mines such compensation as the Board fixes and orders to be paid for or by reason of any severance by a pipeline of the land lying over the mines, the working of the mines being prevented, stopped or interrupted, or the mines having to be worked in such manner and under such restrictions as not to injure or be detrimental to the pipeline, and also for any minerals not purchased by the company that cannot be obtained by reason of the construction and operation of its line.

Marginal note:Application restricted

84. The provisions of this Part that provide negotiation and arbitration procedures to determine compensation matters apply in respect of all damage caused by the pipeline of a company or anything carried by the pipeline but do not apply to

• (a) claims against a company arising out of activities of the company unless those activities are directly related to

  • (i) the acquisition of lands for a pipeline,

  • (ii) the construction of the pipeline, or

  • (iii) the inspection, maintenance or repair of the pipeline;

• (b) claims against a company for loss of life or injury to the person; or

• (c) awards of compensation or agreements respecting compensation made or entered into prior to March 1, 1983.

Definition of “owner”

85. In sections 86 to 107, “owner” means any person who is entitled to compensation under section 75.

Marginal note:Methods of acquisition

• 86. (1) Subject to subsection (2), a company may acquire lands for a pipeline under a land acquisition agreement entered into between the company and the owner of the lands or, in the absence of such an agreement, in accordance with this Part.

• Marginal note:Form of agreement

  (2) A company may not acquire lands for a pipeline under a land acquisition agreement unless the agreement includes provision for

  • (a) compensation for the acquisition of lands to be made, at the option of the owner of the lands, by one lump sum payment or by annual or periodic payments of equal or different amounts over a period of time;

  • (b) review every five years of the amount of any compensation payable in respect of which annual or other periodic payments have been selected;

  • (c) compensation for all damages suffered as a result of the operations of the company;

  • (d) indemnification from all liabilities, damages, claims, suits and actions arising out of the operations of the company other than liabilities, damages, claims, suits and actions resulting from

    • (i) in the Province of Quebec, the gross or intentional fault of the owner of the lands, and

    • (ii) in any other province, the gross negligence or wilful misconduct of the owner of the lands;

  • (e) restricting the use of the lands to the line of pipe or other facility for which the lands are, by the agreement, specified to be required unless the owner of the lands consents to any proposed additional use at the time of the proposed additional use; and

  • (f) such additional matters as are, at the time the agreement is entered into, required to be included in a land acquisition agreement by any regulations made under paragraph 107(a).