THE MEDIATION AND ARBITRATION BOARD
OF BRITISH COLUMBIA
Role of the Board
Role of the Chair
Mediation Hearing
Arbitration Hearing
Negotiating
Role of the M&A Board
In
British Columbia, surface rights are generally owned separately from
sub-surface rights to petroleum, natural gas, coal or minerals.
If a
company holds the rights to petroleum or natural gas resources, and needs
to enter private land to access those resources, they will generally
employ a land agent to notify the landowner and provide the owner with
details of the company’s intentions as well as the compensation that the
company is prepared to offer for use of the land.
If an agreement is
reached, the parties sign a standard surface lease form and
Land Title
Act documents, allowing the company to register the lease.
However, the
landowner may refuse any offer of compensation, or disagree with the
proposed well-site location or access route. Either party may apply to the
Board for assistance in resolving the dispute.
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Role of the Chair
The Board is created under the
authority of section 13 of the
Petroleum and Natural Gas Act
and has authority under the
Geothermal Resources Act, the
Mineral Tenure Act,
the
Mining Right of Way Act,
and the
Coal Act.
The Board is an independent, quasi-judicial
body resolving conflicts between land owners (holders of surface rights)
and companies or individuals (holders of subsurface rights) seeking access
to land to explore for, and develop, subsurface resources including oil
and natural gas, minerals, coal and geothermal resources.
Board authority and jurisdiction extends to
all areas of the province, although the majority of conflicts occur in the
Peace River area in association with oil and gas development.
The Chair of the Mediation and Arbitration
Board is responsible for the effective management and operation of the
Board, including the organization and allocation of work among the Board's
Members and the supervision and management of the administrative functions
of the Board. The relationship between the Minister and the Chair of the
Board is set out in a
Memorandum of Understanding. The Board is
independent in its decision making but accountable to the Minister for the
use of its resources.
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Mediation Hearing
At a mediation
hearing, the Board Chair or an assigned Board Member hears
representations by the company and the landowner. The mediator may issue
an order permitting entry onto the land, settling the amount of
compensation and other issues. When the compensation has been paid, the
company may enter and use the land according to the
Petroleum and Natural Gas Act and the
Mineral Tenure Act.
Unresolved issues
may continue to be negotiated by both parties. Either party may request an arbitration hearing – the final and most formal step in the
process.
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Arbitration Hearing
An arbitration
panel, consisting of one or more board members, hears the case, which may
involve witnesses and representation by legal counsel. After reviewing the
record and the information presented, the arbitrator will issue
a board order awarding compensation according to the provincial
legislation. Such an order is binding on both parties.
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Negotiating
The rental
provisions of a surface lease or board order may be re-negotiated every
five years. If agreement is not reached, either party may apply for an
arbitration hearing. Rental re-negotiation agreements may be retroactive.
Information about
preparing for mediation or arbitration hearings is available in a
brochure,
Surface/ Sub-surface Rights, published by the
Mediation and Arbitration Board.
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Last
Updated
June 02, 2006 |
