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The Surface Rights Act
This is an unofficial version.
If you need an official copy, use the bilingual (PDF) version.

This version is current as of April 28, 2017.
It has been in effect since October 22, 1996.

Note: Earlier consolidated versions are not available online.


 

C.C.S.M. c. S235

THE SURFACE RIGHTS ACT

(Assented to July 17, 1987)

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:

Definitions

1           In this Act,

"agreement" means an agreement between an operator and an owner or occupant relating to a lease or to surface rights, but does not include a lease; (« accord »)

"battery site" means that portion of the surface of land, other than a well site or roadway, required for access to and to accommodate separators, treaters, dehydrators, storage tanks, surface reservoirs, pumps and other equipment, including above ground pressure maintenance facilities, that are necessary to measure, separate or store prior to shipping to market or disposal, or necessary to produce, the fluids, minerals and water, or any of them, from wells; (« emplacement pour des installations »)

"board" means The Surface Rights Board appointed pursuant to this Act; (« Commission »)

"lease" means a lease of surface rights and includes a mineral lease where surface rights are included in the mineral lease; (« bail »)

"mineral" means oil and natural gas, or either of them, and any other substance that the Lieutenant Governor in Council may by order declare to be a mineral; (« minéral »)

"minister" means the member of the Executive Council charged by the Lieutenant Governor in Council with the administration of this Act; (« ministre »)

"natural gas" means a mixture containing methane, other paraffinic hydrocarbons, nitrogen, carbon dioxide, hydrogen sulphide and minor impurities, or some of them, which is recovered or recoverable at a well from an underground reservoir and which is gaseous at the conditions under which its volume is measured or estimated, and includes all fluid hydrocarbons that are not oil; (« gaz naturel »)

"occupant" means a person other than the owner, who is in actual and lawful possession of land; (« occupant »)

"oil" means crude oil and all other hydrocarbons regardless of gravity, that are or can be recovered in liquid form through a well by ordinary production methods from a natural underground reservoir containing an accumulation of oil or oil and natural gas; (« pétrole »)

"operator" means a person who has the right to conduct any operation for the purpose of exploring for a mineral, or for drilling a well for the production of a mineral, and includes any person who has the control and management of a well; (« exploitant »)

"order" except where the context otherwise requires, means an order of the board; (« ordonnance »)

"owner" means

(a) the person or the executor, administrator, successor or other legal or authorized representative of that person, other than a mineral owner unless the mineral owner is also the owner of the surface of the land, in whose name a certificate of title has been issued under The Real Property Act or an instrument is registered under The Registry Act, or

(b) in the case of Crown land, the department of the government of the province or other body administering the land, or

(c) the successor in interest or assignee under a bona fide agreement for sale or otherwise from an owner as defined in clause (a) or (b); (« propriétaire »)

"person" includes a natural person, limited partnership, corporation or syndicate or the agent of any of them; (« personne »)

"power line" means an electric power line or that portion thereof that is constructed or is to be constructed for the purpose of any operations for or incidental to the drilling for, producing or recovering a mineral; (« ligne de transport d'électricité »)

"roadway" means that portion of the surface of land required for access to a well site; (« voie »)

"service line" means a pipe or conduit of pipes or ancillary equipment, including a flow line, used for the transportation, gathering or conduct of a mineral or water or other fluid in connection with the producing operations of an operator; (« canalisation de service »)

"surface rights" means

(a) the land or any portion thereof or any interest therein, except oil and gas rights within the meaning of The Oil and Gas Act, or a right of entry thereon, required by an operator for the purpose of exploring for, developing, producing or transporting a mineral, or

(b) the right to establish, install or operate any machinery equipment or apparatus for use for or in connection with the drilling, completion or producing operations of a well on a well site, or

(c) the right or obligation to condition, maintain, or restore the surface of land where the land has been or is being held incidental to or in connection with the exploring for, developing or producing a

mineral, or the land has been held or is being held incidental to or in connection with the laying, constructing, operating, maintaining or servicing of a battery site, service line, roadway or power line; (« droits de surface »)

"well" means a well as defined in The Oil and Gas Act; (« puits »)

"well site" means that portion of the surface of land required for the conduct of exploring, developing, or producing operations of a well. (« emplacement pour un puits »)

S.M. 1993, c. 4, s. 239.

PART I

PURPOSES

Purposes of Act

2           The purposes of this Act are

(a) to provide for a comprehensive procedure for acquiring and utilizing surface rights;

(b) to provide for the payment of just and equitable compensation for the acquisition and utilization of surface rights;

(c) to provide for the maintenance, preservation and restoration of the surface of land acquired in connection with surface rights;

(d) to provide for the resolution of disputes between operators, occupants and owners arising out of the entry upon, use or restoration of the surface of land.

Crown bound

3           This Act applies to the Crown with respect to the exploring for, developing or producing a mineral.

Conflict with other Acts

4(1)        In the event of conflict between any provision of this Act and any provision of any other Act, the provision of this Act prevails, but where there is a conflict between this Act and any provision of The Oil and Gas Act or of any regulation made thereunder, the Lieutenant Governor in Council shall by order determine which provision shall prevail.

4(2)        Repealed, S.M. 1993, c. 4, s. 239.

S.M. 1993, c. 4, s. 239.

Conflict between Act and other instruments

5           Where there is a conflict between the provisions of this Act and any grant, conveyance, lease, licence permit, or other instrument or document, whenever made or executed the provisions of this Act prevail.

PART II

SURFACE RIGHTS BOARD

Establishment of board

6(1)        There is hereby established a board to be called "The Surface Rights Board" composed of not fewer than three members to be appointed by the Lieutenant Governor in Council.

Term of office

6(2)        Unless a member sooner dies, resigns, or is removed from office, each member shall serve for such period as is specified in the order by which the member is appointed and thereafter until the member's successor is appointed.

Presiding and deputy presiding member

6(3)        The Lieutenant Governor in Council shall designate one of the members of the board as the presiding member of the board and another member as the deputy presiding member of the board.

Remuneration and expenses

6(4)        The presiding member, deputy presiding member and each other member of the board shall be paid such remuneration as may be fixed by the Lieutenant Governor in Council and in addition each member may be paid such reasonable out-of-pocket expenses incurred by the member in the performance of his duties as member of the board as may be approved by the minister.

Meetings

6(5)        The board shall meet at the call of the presiding member or at the direction of the minister.

Quorum

6(6)        A majority of the members of the board, including the presiding member or deputy presiding member, constitutes a quorum at any meeting of the board.

Validity of acts where vacancy exists

6(7)        The fact that there are vacancies in the membership of the board does not affect the validity of any act or thing done by or in the name of the board.

Duties of presiding member

6(8)        The presiding member shall preside at all meetings of the board.

Duties of deputy presiding member

6(9)        When the office of presiding member is vacant or in the case of illness, absence from the province, or incapacity from any other cause to act, or on the request of the minister or the presiding member, the deputy presiding member shall act as presiding member and while so acting, the deputy presiding member has all the powers and authority and shall discharge all the duties of the presiding member.

Evidence as to signature of presiding member, etc.

6(10)       Any order, direction, or other document purporting to be signed by the presiding member or deputy presiding member, as the case may be, shall be admitted as prima facie proof of the contents thereof without any proof of the signature of the presiding member or deputy presiding member, as the case may be, or of the authority of the presiding member or deputy presiding member, as the case may be, to sign it.

Appointment of another person in case of interest

6(11)       The Lieutenant Governor in Council may, where a member of the board is interested in a matter that is before the board, appoint some disinterested person to act as a member of the board in place of the interested member with respect to that matter only.

Appointment of substitute member

6(12)       The Lieutenant Governor in Council may appoint a person to act as a member of the board during the sickness, absence or disability of a member.

Appointment of secretary and employees

6(13)        The secretary of the board and such other permanent officers and employees as may be necessary for carrying on the business of the board, shall be appointed as provided in The Civil Service Act.

Rules of board

7(1)        Subject to the provisions of this Act, the Board may make rules governing the practice and procedure and the business of the board.

Form of notice

7(2)        Unless otherwise provided in this Act, every application authorized to be made under this Act to the board shall be in writing in such form and shall contain such information as may be prescribed by the board.

Rules of evidence

7(3)        The board is not bound by the technical rules of evidence.

Evidence under oath

7(4)        Notwithstanding subsection (3), unless the parties to the matter before the board otherwise agree, the board shall receive evidence under oath or affirmation.

Sitting of and inspection by board

8           The board may

(a) hold sittings from time to time at such times and places in the province as it may deem expedient;

(b) enter upon and inspect or authorize any member of the board or other person to enter upon and inspect any place, building, works or other property directly or indirectly involved in any matter before the board;

(c) appoint or direct any person to inquire into and report upon any matter before the board;

(d) adjourn a hearing or inquiry from time to time for such length of time as the board may determine.

General powers of board

9           The board shall perform the duties and functions, and may exercise the rights imposed upon or granted to it under this Act, or any other Act of the Legislature and it shall discharge, perform and carry out such other duties and functions as may from time to time be assigned to it by the Lieutenant Governor in Council or by the minister.

Powers of board

10          Without restricting the generality of section 9 the board may

(a) administer and enforce the Act and the regulations;

(b) carry out surveys, research programs and obtain statistics for the purposes of the board;

(c) conduct hearings and investigations and determine and prescribe the scope thereof;

(d) require any person to submit to it such returns in such form as it may require;

(e) prohibit or require the doing of any act by any of the parties to an application which is before the board;

(f) provide mediation services upon the request of a party to a dispute concerning surface rights.

Duty to keep records

11          The board shall

(a) keep or cause to be kept a record of all applications and proceedings filed with or heard and determined by the board or a member thereof;

(b) keep or cause to be kept and issue upon request and payment of such fees as may be fixed by the board, certified copies of any order or rule made by the board;

(c) have the custody and care of all records and documents filed with the board.

Powers of board under Evidence Act

12(1)       Subject to subsection (2), for the purpose of carrying out its duties and functions, the board has the like protection and powers, and is subject to like requirements, as are conferred on, or required of, commissioners appointed under Part V of The Manitoba Evidence Act.

Application of section 88 of Evidence Act

12(2)       Section 88 of The Manitoba Evidence Act does not apply to the board.

Liability of members, officers, etc.

13          Members of the board, officers, or employees of the board and persons acting under the instructions of any of them or under the authority of this Act or the regulations, are not personally liable for any loss or damage suffered by any person or corporation by reason of anything in good faith done, caused, permitted or authorized to be done, or omitted to be done, by them, pursuant to, or in exercise of, or supposed exercise of, the powers given by this Act or the regulations.

Reports by one member

14          The board or the presiding member may authorize a member to report to the board upon any question or matter arising in connection with the business of the board; and that member, where so authorized, has all the powers of the board for the purpose of taking evidence or acquiring the necessary information for the purpose of any investigation and report to the board; and the board may adopt the report as that of the board, or otherwise deal with it in the absolute discretion of the board.

Annual report

15          The board shall, on or before the last day of June in each year, transmit to the minister a report for the fiscal year ending March 31 of that year, showing briefly

(a) summaries of the operations of the board;

(b) the number and nature of inquiries or investigations made by it;

(c) a summary of all decisions and orders made by it; and

(d) such other matters as the minister may direct.

PART III

RIGHT OF ENTRY AND COMPENSATION

Right of entry with lease or order

16(1)       Unless expressly authorized under an order of the board, no operator has a right to enter upon, use, occupy or take the surface of any land, until the operator has obtained a lease of the rights specified therein granted by the owner and occupant, if any.

Right of operator to repair, etc.

16(2)       Every lease and every order of the board, with respect to the acquisition by the operator of surface rights shall be deemed to grant to the operator the right to enter upon the affected land at any time for the purposes of repairing, maintaining, replacing or inspecting the works of the operator.

Compensation for exercise of rights

16(3)       The operator shall pay compensation to the owner or occupant, if any, for all damage suffered by the owner or occupant as a result of the exercise by the operator of any of the rights referred to in subsection (2).

Board may determine compensation

16(4)       Where the operator and the owner, or the operator and the occupant, are unable to agree upon the compensation payable under this section, the compensation shall be determined by the board.

Operator to file agreement with board

17(1)       Every lease or agreement entered into after the coming into force of this Act between an operator and an owner or between an operator and the occupant, if any, with respect to any surface right shall be in writing and a copy of the lease or agreement shall be filed by the operator with the board within 30 days after the date of execution thereof.

Operator to file and deliver notice of assignment

17(2)       Within 30 days of an operator making an assignment of a lease or agreement described in subsection (1), written notice of the assignment shall be given by the operator to the board and to the owner or occupant, if any.

Waiting period

18(1)        Subject to subsection (2), a lease shall not be executed by an owner or occupant within three days of the day of delivery of the proposed lease by an operator to the owner or occupant.

Waiver of waiting period

18(2)       An owner or occupant may waive the requirements of subsection (1) only by executing a waiver that is in a form approved by the board.

S.M. 1996, c. 8, s. 2.

Leases or agreements available for inspection

19          Every lease or agreement filed under subsection 17(1) shall be available for inspection by any person at the office of the board.

Granting of rights on adjacent or other lands

20(1)       The board may by order, subject to the payment of compensation as hereinafter provided, grant to the operator any one or more rights with respect to adjacent or other land as in the opinion of the board is necessary to permit operations to be carried on and to give the operator access to and egress from his operations.

Compensation to be paid by operator

20(2)       Every operator shall pay compensation for the rights acquired by him.

Application to board for hearing

21(1)       An operator, owner or occupant, if any, may

(a) where there is disagreement as to the surface rights that are required by the operator or as to the compensation to be paid therefore; or

(b) where there is a dispute between any of them as to

(i) the interpretation of a lease or agreement,

(ii) the exercise of any right or the performance of any obligation under a lease or agreement or this Act, or

(iii) the location of access roads; or

(c) where a provision of the Act authorizes an application on any other matter;

apply to the board for a determination of the matter and shall serve a notice of the application upon each party that is or may be involved in, or directly affected by, the application and shall forthwith file a copy of the notice with the board.

Contents of notice

21(2)       The notice mentioned in subsection (1) shall include

(a) a description and plan or sketch of the land showing the location of the affected area and showing facilities of the operator in place or proposed;

(b) a statement as to the nature of the dispute, if any;

(c) the nature of the order sought;

(d) an address for service where the applicant may be served with any notice required to be served under this Act.

Deemed submission to board for hearing

22          The filing of a notice mentioned in section 21 with proof of service thereof on the operator, owner or occupant, as the case may be, shall be deemed to be a submission to the board by the person filing, to hear and determine the matters in dispute set forth in the notice.

Service of notice

23          A notice to be served pursuant to this Act may be served personally or by registered or certified mail sent to the latest known address of the person to be served.

Effective date of service

24          A notice sent by registered or certified mail shall be deemed to have been served on the day of the date of the receipt of the postmaster for the envelope containing the notice.

Notice of hearing

25(1)       The board shall fix a date and place for the hearing of the matters in dispute and shall serve the operator, owner, and occupant, if any, with written notice thereof not less than 14 days before the date so fixed.

Board may view site

25(2)       The board may view the land in question prior to the holding of any hearing, and the parties shall be given notice thereof and may attend together with the board, and the board may view the land notwithstanding the absence of any of the parties.

Notice of viewing

25(3)       The board shall give three days notice of the date and time of viewing to the parties.

Powers of board following hearing

25(4)       On the date fixed under subsection (1) for a hearing, the parties involved are entitled to appear before the board and to be represented by counsel; and the board may, after consideration of all the evidence adduced before it at the hearing, issue an order

(a) granting part or all of the order applied for;

(b) refusing part or all of the order applied for;

(c) fixing the compensation to be paid by an operator;

(d) awarding interest at a rate established by the regulations;

(e) where rights are granted, specifying those rights in detail, including the location of the access to a site, together with a full description or a plan of the land involved in the order; or

(f) prescribing the terms and conditions that go with the order.

Restriction upon scope of order

25(5)       An order granting surface rights shall not grant any rights other than rights which the operator may reasonably propose to utilize with the six month period next following the date of the order.

Board may defer determination

25(6)        Notwithstanding subsection (4), the board may defer to a later date the determination of the compensation to be paid by the operator and any other matter that the board considers advisable.

Rehearings and revisions

25(7)       The board, of its own initiative, may

(a) rehear an application at any time before deciding it; and

(b) review, rescind, amend or replace an order made by it where necessary to correct an oversight or error.

Decision within 30 days

25(8)       Subject to subsection (6), unless the parties to a hearing otherwise agree, the board shall render a decision upon an application within 30 days of completion of the hearing.

Determination of compensation

26(1)       In determining the compensation to be paid for surface rights acquired by an operator, the board shall consider the following matters:

(a) the value of the land having regard to its present use before allowance of surface rights;

(b) the loss of use of the land or of an interest therein as a result of granting surface rights;

(c) the area of land that is or may be permanently or temporarily damaged by the operations of the operator;

(d) the increased costs to the owner and occupant, if any, by reason of the works and operations of the operator;

(e) the adverse effect caused by the right of entry to the remaining land by reason of severance, if any;

(f) the nuisance, inconvenience, disturbance or noise, to the owner and occupant, if any, or to the remaining land, that might be caused by, arise from or is likely to arise from or in connection with the operations of the operator, and the damage, if any, to any adjoining land of the owner, including damage to or loss of crop, pasture, fence or livestock and like or similar matters;

(g) where applicable in the opinion of the board, the application of interest payable in addition to the amount awarded as compensation; and

(h) any other relevant matter that may be peculiar to each case, including

(i) the cumulative effect, if any, of surface rights previously acquired by the operator or by other operators under a lease, agreement or right of entry existing at the time the surface rights were acquired with respect to the subject lands, and

(ii) the terms of a comparable lease agreement that a party may submit to the board for consideration.

Costs of hearing

26(2)       The board may award the costs of and incidental to participation in any of its proceedings, including awards in advance of proceedings where appropriate, to persons

(a) who effectively represent an interest which contributed to or could reasonably be expected to contribute substantially to a fair disposition of the proceeding, taking into account the need for representation of a fair balance of interests;

(b) who represent an economic interest which is small when applied to individual persons in comparison to the costs of effective participation in the proceeding, or who do not have sufficient resources available to participate effectively in the proceeding without undue curtailment of that person's other activities in the absence of a cost award; or

(c) who are permitted to participate in the board's proceedings by law, board practice or the exercise of the board's discretion.

Costs in discretion of board

26(3)       Subject to subsections (4) and (5), the costs of and incidental to any proceedings of the board shall be in the discretion of the board.

Costs where offer less than 90%

26(4)       Where the compensation payable to an owner or occupant, as the case may be, is determined by the board and the amount of the compensation that was offered by the operator before commencement of the hearing is less than 90% of the amount determined by the board, the board shall increase the compensation otherwise payable by the amount of such legal, appraisal and other expenses that are incurred by the owner or occupant, as the case may be, for the purposes of preparing and presenting a claim for compensation and that the board considers just and reasonable.

Costs where offer more than award

26(5)       Where the compensation payable to an owner or occupant, as the case may be, is determined by the board and the amount of the compensation that was offered by the operator before commencement of the hearing is greater than the amount determined by the board, the board shall not award costs of any kind to the owner or occupant, as the case may be.

Interim order for surface rights

27(1)       Notwithstanding anything in this Act or in the rules of practice and procedure of the board, an operator may at any time after the filing of a notice with the board under section 21 apply to the board for an interim order granting surface rights.

Objection by owner or occupant

27(2)       Upon receiving an application under subsection (1) the board shall notify the owner or occupant, if any, and the owner or occupant, if any, may file an objection with the board provided the objection is filed within seven days of receipt of the notice by the owner or occupant, if any.

Board shall hold hearing

27(3)       Where the board receives an objection after serving the notice referred to in subsection (1), the board shall hold a hearing with respect to the application and the presiding member of the board, or any member of the board appointed by the presiding member for that purpose, has jurisdiction to conduct the hearing and make a decision.

Undue hardship

27(4)       The board shall not grant an interim order unless it is satisfied that undue hardship would result to the operator if the order is not made, and that the undue hardship outweighs any prejudice to the interests of the owner or occupant, if any.

Terms and conditions of interim order

27(5)       The board may make an interim order subject to terms and conditions and to the provision of security for the protection of the interests of the owner or occupant, if any.

No duplicate compensation

28          Where the board finds that the owner and also an occupant are entitled to compensation, the board shall determine the compensation to be paid to both the owner and the occupant but not so as to require the operator to pay duplicate compensation with respect to any element of compensation to be determined by it.

Application for variation of order

29          Subject to section 31, an owner, occupant or operator who is affected by an order of the board may, with leave of the board obtained at any time, apply to the board for a variation of the order.

Application for change in compensation after lease

30          Subject to section 31, an owner, occupant or operator who has entered into, or who is affected by, a lease may apply to the board for a variation of the amount of compensation payable under the lease for the surface rights.

When applications for change not to be made

31          An application under section 29 or 30 for a variation of compensation may not be made within the three year period next following the date of the determination of the compensation sought to be varied.

Board to determine compensation

32          Upon receipt of an application under section 29 or 30 the board shall determine the compensation to be paid in accordance with the applicable provisions of section 26.

Variation order to benefit current owner

33(1)       An increase in the amount of compensation, if any, that is ordered by the board shall accrue only to the benefit of the owner and occupant, if any, at the time the increase is ordered and shall take effect from the date on which the application for variation is filed with the board.

Applications for variation of Mining Board order

33(2)       Every application by an owner or operator for a variation of compensation payable under the terms of an award made by the Mining Board under The Mines Act, shall be deemed to be an application under this Act and shall be heard and determined by the board.

Termination of right of entry

34(1)       Where at any time after the expiration of three months from the date of an order granting to an operator a right of entry upon land, the operator has not commenced to exercise the right granted to the operator or the operator has ceased to use the land or interest therein for the purposes granted by the order, the owner or occupant may apply to the board for the termination of the right.

Board to fix date of hearing

34(2)       Upon receipt of an application under subsection (1) the board shall fix a date for a hearing of the application and shall serve notice thereof on all parties concerned in such manner as the board deems proper.

Order terminating right of entry

34(3)       The board may, after the hearing pursuant to subsection (2), make an order terminating the right of entry on the land or any part thereof.

Consent of operator

34(4)       Notwithstanding subsection (2), where the operator consents to the making of an order, the board may make an order terminating the right of entry without conducting a hearing.

PART IV

ABANDONMENT

Abandonment or surrender of rights

35          Where an operator proposes to abandon or surrender all or any part of a surface right whether such right has been obtained by way of agreement with the owner or occupant, if any, or by an order of the board, the operator shall make application for issuance of a certificate of abandonment in accordance with the provisions of The Oil and Gas Act.

S.M. 1993, c. 4, s. 239.

Restoration

36          An operator proposing to abandon or surrender a surface right shall restore the surface of the land as nearly as possible to its original condition and shall complete the abandonment and restoration in accordance with this Act and the provisions of The Oil and Gas Act.

S.M. 1993, c. 4, s. 239.

Application to the board

37          Where an operator and the owner or occupant, if any, are unable to agree with respect to an abandonment or with respect to the restoration of the land, either party may apply to the board to have the matter reviewed.

Hearing before the board

38          Upon receipt of an application under section 37, the board may inspect the land or cause the land to be inspected, and may, after service of notice on the operator and the owner and occupant, if any, hear and determine the application.

Contents of order

39(1)       The board after completion of a hearing under section 38 may:

(a) order the operator to restore the surface of the land in a manner set forth in the order;

(b) authorize the owner and occupant, if any, to restore the surface of the land in a manner set forth in the order and where the board so orders, the operator shall pay to the owner and occupant, if any, the cost of the restoration; or

(c) order the operator to pay a sum of money to the owner and occupant, if any, in lieu of restoration.

Additional compensation

39(2)       Where an abandonment occurs at a time when, as a result thereof, the owner, or occupant, if any, is deprived of making use of the land for the current crop year, the board may order the operator to pay the owner or occupant, if any, additional compensation or may order that compensation payments continue for an additional year.

Power of board where operator satisfies obligation

40          Where

(a) after inspecting the land or after hearing an application under section 37, the board is satisfied that the operator has restored the land as nearly as possible to its original state; and

(b) the operator satisfies the board that it has complied with all applicable orders of the board and with the provisions of The Oil and Gas Act with respect to the surface rights of the land;

the board may order that

(c) the operator has discharged his obligation under section 36 with respect to restoration of the land; and

(d) the surface rights are abandoned or surrendered.

S.M. 1993, c. 4, s. 239.

Termination of compensation

41          Subject to subsection 39(2) and section 42, the obligation of an operator with respect to further compensation payments terminates on the date of an order made under section 40.

Removal of caveats

42          Notwithstanding any provision of this Part, the obligation of an operator with respect to compensation shall continue unabated until all caveats or other instruments registered by the operator against the land under The Real Property Act and The Registry Act with respect to the surface rights have been discharged, released or quitclaimed, as the case may be.

PART V

LIABILITY FOR TORTIOUS ACTS

Definition

43          In this Part "tortious act" means a wrongful, injurious or illegal act that results in

(a) loss or damage to the land of an owner, or occupant, as the case may be, that is not situated within the surface rights acquired or to be acquired by an operator; and

(b) any other loss or damage suffered by the owner or occupant arising out of that act.

Liability for certain tortious acts

44(1)       Every operator who has acquired or is about to acquire any surface rights is primarily liable to the owner or to the occupant, as the case may be, of the land for all tortious acts committed by him and

(a) by a person in the course of the employment of that person with the operator; or

(b) by a servant or agent of the operator acting under the authority of the operator; or

(c) by any other person who performed work or provided services to or for the benefit of the operator pursuant to a contract entered into with the operator or with any other person with respect to the operations or any of them for which the surface rights were or are about to be acquired.

Operator liable notwithstanding assignment of rights

44(2)       The operator is liable to the owner or occupant, as the case may be, for any tortious act committed as provided in subsection (1) notwithstanding that the operator has assigned or transferred the surface rights to any other person.

Notice of loss or damage to operator

45          The owner or occupant, as the case may be, shall within 90 days after the discovery by the owner or occupant of any loss or damage sustained by the owner or occupant notify the board in writing of the loss or damage and of the amount of compensation or damages claimed by the owner or occupant and the board shall forthwith send a copy of the notice to the operator.

Determination of compensation where no agreement

46(1)       Where an owner or occupant, as the case may be, and an operator are unable to agree upon the amount of loss or damage sustained by the owner or occupant as a result of a tortious act for which the operator is liable, the owner, occupant or operator may apply to the board to determine the amount thereof; and upon receipt of the application the board shall hear and determine the merits of the claim and the amount of compensation or damages, if any, to be paid by the operator to the owner or occupant.

Application of section 25 to hearing

46(2)       Section 25 applies, with such modifications as the circumstances require, in respect of a hearing by the board under subsection (1).

Limitation on application under subsection (1)

46(3)       Except with leave of the board, no application shall be made to the board under subsection (1) after six months from the date of the service of the notice mentioned in section 45.

Claim barred where application is late

46(4)       Notwithstanding the provisions of any other Act of the Legislature but subject to subsection (3), if no application is made by the owner or occupant under subsection (1) within the time limited by subsection (3) the claim of the owner or occupant against the operator for the loss or damage resulting from the tortious act for which the operator is liable under this Act is barred.

Prima facie evidence of tortious act

47          In any proceeding taken under this Part or in any action at law to recover damages or compensation for loss or damage resulting from a tortious act, proof by the owner or occupant, that the operator or his assignee is carrying on or is about to carry on operations with respect to the lands under this Act and evidence of the tortious act complained of is prima facie evidence of the liability of the operator for the tortious act.

PART VI

APPEAL

Grounds of appeal

48(1)       An order of the board may be appealed to the Court of Appeal upon the grounds that the board

(a) failed to observe a principle of natural justice;

(b) acted beyond or refused to exercise its jurisdiction; or

(c) made any other error of law.

Board orders final

48(2)       An order of the board, insofar as, and to the extent that, it grants a right of entry to an operator or determines an amount of compensation, is final and not subject to appeal except in accordance with subsection (1).

Referral back to board

48(3)       In the event that an appeal under subsection (1) is allowed and as a result thereof an order of the board granting a right of entry to an operator or determining an amount of compensation is rendered invalid or is set aside, the court shall refer the matter back to the board for reconsideration in accordance with whatever directions, if any, the court sees fit to give as a result of the appeal.

Leave to appeal

48(4)       An appeal shall be brought only

(a) by leave of a judge of the Court of Appeal;

(b) within one month after the making of the board order being appealed or within such greater period as the judge granting leave may consider appropriate in the circumstances of each case; and

(c) after notice to the other party and the board stating the grounds of appeal.

Transmission of material to court

49          The secretary of the board, upon receipt by the board of the notice of the appeal, delivered pursuant to subsection 48(4), shall transmit to the Registrar of the Court of Appeal all documents and materials in the possession of the board that were before the board when making the order under appeal and which relate to an issue raised in the appeal.

Stay of proceedings

50          All proceedings undertaken pursuant to an order that is appealed pursuant to subsection 48(1) shall be stayed upon the filing of the appeal and until the appeal is finally determined.

PART VII

GENERAL

Where owner or occupant cannot be found

51          Where upon application to the board it is proved to the satisfaction of the board that, because the owner or occupant of the land in respect of which the surface rights are required is unascertainable or is a person whose whereabouts is unknown, or because of other special circumstances, the operator is unable to negotiate a lease for the required surface rights without unduly delaying the operations of the operator, the board may by order grant permission to the operator to enter upon the land and use any portion thereof required by the operator for any of the purposes mentioned in this Act, if the operator deposits with the board a sum of money fixed by the board.

Application to determine compensation

52(1)       Where the operator who is granted a right of entry pursuant to section 51 is, in respect of the surface rights granted by the board to the operator, unable to negotiate a lease within six months from the date of the order of the board granting the right of entry, the operator may forthwith at the end of the six month period apply to the board for a hearing to determine the compensation for the surface rights.

Retention of deposit

52(2)       The deposit made by the operator pursuant to section 51 shall be retained by the board until a lease has been executed by the operator, owner and occupant, if any, or until the board has, after a hearing under subsection (1), determined the compensation for the surface rights acquired by the operator.

52(3)       Repealed, S.M. 1993, c. 4, s. 239.

S.M. 1993, c. 4, s. 239.

Compensation payment

53(1)       Where the board, after a hearing under section 52, fixes the compensation and orders the payment thereof, the board shall charge the compensation payable against the deposit made under section 51.

Disposition of deposit

53(2)       Where the amount deposited by an operator under section 51 exceeds the amount of compensation payable as fixed by the board, the board shall forthwith return the excess to the operator, but where the amount of compensation fixed by the board exceeds the amount deposited by the operator, the operator shall forthwith pay over to the board the amount by which the compensation exceeds the deposit.

Deposit of money

53(3)       All moneys received by the board from an operator under this section and section 52 shall be received, held and disbursed by the board in the manner prescribed by the regulations.

Rehearing of application re compensation only

54          Notwithstanding anything contained in section 52 or 53, the owner or occupant, if any, or the legal personal representative of the owner or occupant may, within six months after the making of an order made under section 52 comes to attention of any one of them, either accept the compensation awarded or apply to the board for a rehearing for the application regarding compensation only; and upon receipt of the application the board shall fix a date for a rehearing, give notice thereof to the parties concerned and make such order as it deems just and proper in the circumstances.

Operator's responsibility to cut down weeds

55(1)       Unless the operator and the owner and occupant, if any, otherwise agree, every operator shall cut down or otherwise control all weeds growing on the land on which the operations of the operator are being carried on and the operator shall cut down or root out and destroy the weeds each year before they have matured to seed.

Failure of operator to cut down weeds

55(2)       Where an operator fails or neglects to comply with subsection (1), the owner or occupant may upon seven days notice to the operator, carry out the requires of that subsection and for that purpose may enter upon the land on which the operations of the operator are being carried on, or the owner or occupant may apply to the board for an order requiring the operator to comply with that subsection.

Board may order operator to cut down weeds

55(3)       The board may by order direct the operator to cut down or root out and destroy the weeds with a time fixed by the order, or, if the owner or occupant has done so, the board may award the owner or occupant compensation therefor and the operator shall pay such compensation forthwith.

Limitation on time of application to cut down weeds

55(4)       No application under subsection (2) shall be heard if it is made after the expiration of three months after the owner or occupant first became entitled in the opinion of the board to make the application.

Apportionment of compensation among operators

55(5)       Where an application is made under subsection (2) and it appears to the board that more than one operator may be liable, the board may adjourn the hearing and direct notice thereof to be served on all operators that may be liable and may by order determine and apportion the compensation to be paid by each of the operators.

Topsoil

56          The operator shall remove, preserve and replace all top soil affected by its operations in the manner prescribed by the regulations.

Filing and enforcement of order

57          An order of the board, or a copy thereof certified to be a true copy by the presiding member of the board, requiring an owner, occupant or operator to do any act or thing or to pay any compensation or damages to the board or to the owner or occupant, as the case may be, may be filed in the office of the Court of Queen's Bench.

Order as judgment of court

58          Upon the filing of an order under section 57 it becomes and is enforceable as a judgment of that court.

Order of board need not show board's jurisdiction

59          An order of the board need not show upon its face that any proceedings were taken or that any notice was served or that any circumstances existed that were necessary to give the board jurisdiction to make the order.

Assignment of order

60          An order of the board or court is assignable by filing a certified copy of the assignment with the board and serving notice of the assignment on the other parties named in the order or in any previous assignment of the order.

Service of copy of order

61          The board shall serve a copy of every order made by it, upon the operator, owner and occupant, if any, within seven days of its issue.

Orders and agreements run with land

62          Orders of the board and agreements respecting surface rights entered into between an operator and an owner or occupant shall run with the land and shall enure to the benefit of and be binding upon the successors in title or interest of the owner or occupant, as the case may be.

Filing of caveat

63(1)       Where an order of the board affects land, registered under The Real Property Act, the operator may file with the registrar of the appropriate land titles office a caveat with a copy of the order; and upon receipt thereof the registrar shall make an entry of the caveat on the certificate of title to the land affected.

Address for service to be shown on caveat

63(2)       The operator shall, on the caveat endorse his address for service of notices before filing the caveat with the registrar.

Registering and vacating order under Registry Act

64(1)       Where the land affected by an order of the board is under The Registry Act, the operator may register a certified copy of the order with the registrar of the appropriate land titles office; and where the rights of the operator under the order have ceased or have been abandoned or cancelled by the operator and the operator neglects or refuses to provide a release or quit claim of his interest under the order, the owner of the land may apply to a judge of the Court of Queen's Bench for an order to vacate the registration of the order of the board.

Costs of application

64(2)       The costs of an application made pursuant to subsection (1) shall be borne by the operator, and shall be payable by the operator to the owner forthwith upon demand.

Department to provide document without charge

65          Subject to section 66, a department of the government shall provide to the board without charge any certificate or certified copy of a document that the board requests in writing.

S.M. 1993, c. 48, s. 40.

Fee for service at land titles office

66          Where a service is provided to the board at a land titles office, the board shall pay any fees prescribed for the service under clause 195(b) of The Real Property Act.

S.M. 1993, c. 48, s. 40.

Penalty for failure to file agreement

67          Any operator that fails to file an agreement as required by section 17 or section 37, shall pay to the board a penalty in an amount fixed by the regulations for each day during which the operator fails to file the agreement;  and any amount payable by the operator for its failure under this section is a debt owed by the operator to the board recoverable in a court of competent jurisdiction.

Regulations

68          For the purpose of carrying out the provisions of this Act according to their intent, the Lieutenant Governor in Council may make such regulations as are ancillary thereto and are not inconsistent therewith; and every regulation made under and in accordance with the authority granted by this section has the force of law; and, without restricting the generality of the foregoing, the Lieutenant Governor in Council may make regulations

(a) providing rules for the application of this Act to the Crown and to lessees and permittees from the Crown;

(b) prescribing forms for the purposes of this Act;

(c) prescribing amounts for the purposes of section 67;

(d) prescribing elements of compensation to be considered by the board in addition to those mentioned in subsection 26(1), including formula and criteria;

(e) prescribing the intervals of and manner of payment of compensation;

(f) prescribing the amount of and the terms and conditions attaching to cash deposits, security deposits and other deposits of money required to be made with the board;

(g) prescribing forms of lease and renewals thereof;

(h) prescribing the form and content of reports and returns which shall be made to the board by operators;

(i) requiring operators to advise the board of all chemicals utilized in their operations;

(j) prescribing such elements of costs that may be allowed for the purposes of subsections 26(2) and (3);

(k) providing for transitional provisions governing leases in force and effect upon the coming into force of this Act;

(l) defining any word or term not defined for the purpose of the administration of this Act or the regulations;

(m) respecting the granting of the extension of time or the reduction of time for the doing of anything or the filing of any notice required under this Act or the regulations;

(n) respecting rules for the calculation of time either in specified cases or generally;

(o) respecting the receipt, the holding and the disbursement of moneys by the board pursuant to the Act or the regulations;

(p) respecting such other matter as may be necessary for the purpose of carrying out the provisions of this Act or the regulations.

Reference in CCSM

69          This Act may be referred to as chapter S235 in the Continuing Consolidation of the Statutes of Manitoba.

Repeal

70          The Surface Rights Act, being chapter S235 in the Continuing Consolidation of the Statutes of Manitoba is repealed.

Commencement of Act

71          This Act comes into force on a day fixed by proclamation.

NOTE:  S.M. 1987-88, c. 62 was proclaimed in force January 1, 1988.