|This is an unofficial archived version of The Pipe Line Act|
as enacted by SM 1987-88, c. 9 on July 17, 1987.
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R.S.M. 1987, c. P70
The Pipe Line Act
|Table of Contents|
HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:
In this Act,
"board" means The Oil and Natural Gas Conservation Board, appointed under The Mines Act; ("Commission")
"highway" means a highway as defined in The Highway Traffic Act; ("route")
"licensee" means a person to whom an operating licence is issued under this Act, and includes the assignee of such a person; ("titulaire d'une licence")
"minister" means the member of the Executive Council charged by the Lieutenant Governor in Council with the administration of this Act; ("ministre")
"oil" in addition to its ordinary meaning, includes any mineral oil or relative hydrocarbon while being transported in liquid form; ("huile")
"permittee" means a person to whom a construction permit is granted under this Act and includes the assignee of such a person; ("titulaire d'un permis")
"petroleum" has the same meaning as "oil" ; ("pétrole")
"pipe line" means a pipe line for the transportation or conduct of oil, or a pipe line for the transportation or conduct of water incidental to the production of, or manufacture of, oil and includes all property, real and personal, required for the purpose of such a pipe line, or used in connection with or incidental to such a pipe line; and, without restricting the generality of the foregoing, further includes tanks, surface reservoirs, pumps, and racks, and storage, loading, and other terminal facilities, and all real property necessary for or used in connection therewith, but does not include a refining, manufacturing, or marketing, pipe line situated wholly within a plant property, or a pipe line used in drilling operations or a pipe line from a well to a separator or to a tank or tank batteries; ("pipeline")
"provincial highway" means a provincial trunk highway as defined in The Highways and Transportation Department Act. ("route provinciale")
PURPOSE AND APPLICATION
The purposes of this Act are
(a) to regulate the conditions under which oil, or the products thereof, may be transported by pipe line;
(b) to facilitate and provide for adequate storage of oil or the products thereof;
(c) to regulate the conditions under which water incidental to the production of, or manufacture of, oil may be transported.
This Act applies only to pipe lines situated wholly within the province.
Except as otherwise provided in this Act, no person shall begin the construction of a pipe line, or any section thereof, unless the minister has granted a construction permit as hereinafter provided, authorizing the construction.
A person desiring a construction permit for a pipe line shall make application therefor to the minister, and shall send to the minister with the application a preliminary plan in the form prescribed in the regulations showing
(a) the points in the province between which, and the route along which, the pipe line is to be constructed;
(b) the intended size and capacity thereof; and
(c) the intended location and capacity of all proposed pumping stations, gate valves, check valves, tanks, surface reservoirs, pumps, and racks, and storage, loading, and other terminal facilities.
The applicant shall also send to the minister all such other plans and information relating to the pipe line and its construction as the minister may require for the proper understanding of the plan.
On making application for a construction permit, the applicant shall, at the same time, file with the Minister of Highways and Transportation a copy of the application and all maps, plans, information, and material, sent to the minister.
Notwithstanding section 5 but subject to the regulations, the applicant, before the granting of a construction permit, may, on the written authorization of the minister in such form, if any, as may be prescribed in the regulations, enter into and upon any Crown lands or other lands lying on the intended route of the pipe line, or adjacent thereto, without previous licence or permission therefor from the owner or any other person, and make surveys, examinations, or other necessary arrangements on the lands for fixing the site of the pipe line, right-of-way. and works: and may locate and set out such parts of the lands as are necessary and proper for the pipe line.
Upon receipt of an application, the minister may
(a) direct the applicant to give notice of the application to such persons, and in such manner, as the minister may deem necessary or as may be prescribed by the regulations: or
(b) consider the application without requiring notice to any other person.
Upon considering the application, the minister shall have regard to all the circumstances that appear to him to be relevant, and in particular, but not so as to limit the generality of the foregoing, shall have regard to
(a) the financial responsibility of the applicant;
(b) any public interest that, in the opinion of the minister, may be affected by the granting or refusal of the application;
(c) the needs and general good of the residents of the province as a whole.
Before referring the application to the Lieutenant Governor in Council as hereinafter provided, the minister, upon his own motion or upon the application of any interested party, may order the board to conduct a public hearing with respect to the proposed pipe line and to make recommendations to him thereon.
The minister, after considering the application and the recommendations of the board, if any have been made, shall refer the application, with his recommendations as to the granting or refusal of a construction permit, to the Lieutenant Governor in Council.
The Lieutenant Governor in Council may,
(a) direct the minister to grant a construction permit in accordance with the application, or with such changes, or subject to such conditions, as may be stated in the order;
(b) direct the minister to refuse to grant a construction permit;
and, subject to section 11, the order of the Lieutenant Governor in Council is final, and the minister shall act as therein directed: and where a construction permit is granted, the minister shall approve the plan either as filed or as amended to conform to the order in council.
When a deviation, change, or alteration, is proposed by a permittee or a licensee to be made in a pipe line, or any portion thereof, as already constructed or as located and approved, he shall apply to the minister for his approval of the proposed deviation, change, or alteration and submit a plan of the portion of the pipe line affected, showing the deviation, change, or alteration, proposed to be made; and the minister may approve the application and the plan.
When the application and the plan of the portion of the pipe line affected are approved by the minister, the permittee or the licensee may make the deviation, change, or alteration; and all the provisions of this Act apply to the portion of the pipe line so deviated, changed, or altered or proposed to be deviated, changed, or altered, in the same manner as they apply to the original pipe line, and in the case of a pipe line under construction, the construction permit shall be amended accordingly.
Where the minister considers that the proposed deviation, change, or alteration is of such a character that it is desirable to proceed as hereinafter in this subsection mentioned,
(a) he may order the board to conduct a public hearing with respect thereto and to make recommendations to him thereon; or
(b) after considering the recommendations of the board, or without having ordered the board to conduct a public hearing, he may refer the matter to the Lieutenant Governor in Council;
and, subject as in this subsection provided, the provisions of this Act with respect to an application for a construction permit, with such modifications as the circumstances require, thereafter apply to the proposed deviation, change, or alteration.
Where a construction permit has been granted or an operating licence has been issued, if, in the opinion of the minister, the diversion or relocation of the pipe line, either before or after the completion thereof, is necessary to facilitate the construction, reconstruction, or relocation, of a highway or any other work affecting a public interest, the minister, upon such terms and conditions as he deems proper, may direct the permittee or licensee to divert or relocate the pipe line and to change or alter the plan of pipe line to conform to the diversion or relocation thereof: and the minister may amend, or add to, the terms and conditions, if any, expressed in the permit or licence, as he may deem necessary for the diversion or relocation; and the permittee or licensee, at his own expense, shall comply with the direction.
Notwithstanding anything in The Municipal Act or in any other Act of the Legislature, no pipe line shall be constructed on, across, over, or under, a highway or within 100 feet thereof, or within 300 feet of a provincial highway, without the written consent of the member of the Executive Council charged with the administration of provincial highways.
The consent given under subsection (1) shall be in the form prescribed by the regulations, or to the like effect.
Where a permittee contravenes any provision of this Act or of the regulations or the terms and conditions of a construction permit, the minister may notify him in writing, specifying the nature of the default, and requiring him to remedy the default within the time specified in the notice.
Where the permittee fails to remedy the default within the time specified in the notice, the minister, after the matter has been heard by the board and upon the recommendation of the board, may revoke or suspend the construction permit, either for a definite time or indefinitely, or until the minister is satisfied that the default has been remedied.
The minister may revoke a construction permit on the written request of the permittee.
TAKING AND USING LAND
In this Part the expression "right of user" means a licence to enter on and use land for the purposes of a pipe line obtained either
(a) by agreement with the owner of the land affected thereby, as provided in subsection 16(2):
(b) by expropriation.
A right of user where it is granted by the owner of the land affected thereby, shall be in the form in the Schedule or in such other form as the minister may, by regulation, approve.
An instrument granting a right of user executed by the owner of the land affected thereby in the form in the Schedule (whether or not other persons join therein as co-grantors),
(a) shall not be attached to a caveat filed as herein, and in The Real Property Act, provided unless it is accompanied by affidavits as to the execution thereof by the parties thereto in forms satisfactory to the district registrar; and
(b) where it relates to land forming part of the homestead of any person within the meaning of The Dower Act, is a disposition as defined in that Act.
Where a right of user is expropriated, the right of user is subject to all the terms and conditions set out in the form of grant of right of user set out in the Schedule, substituting for the expression "the grantor", the persons having an interest in the land to which the right of user refers and against whom the right of user applies; and for the expression "the grantee" the person by whom the right of user is expropriated.
A right of user
(a) shall, subject as herein provided, be deemed to be land for purposes of The Expropriation Act; and
(b) is a right to which section 106 or 106.1 of The Real Property Act applies, and the agreement granting it may be registered or filed as in that section provided, and where it is expropriated the declaration of expropriation registered in the land titles office in respect thereof shall be deemed to be an instrument registered or filed as in that section provided.
Where, prior to August 15, 1971, an instrument or order granting a right of user was registered as though it were an instrument to which section 106 of The Real Property Act applies, it shall be conclusively deemed to be validly registered in accordance with this Act.
Where the minister approves under subsection (2) the use of a form for a right of user that differs from the form in the Schedule, the form approved by him shall be conclusively deemed, for all purposes, to contain all the covenants and terms and conditions contained in the form in the Schedule, but those covenants and terms and conditions shall be deemed not to prevent the grantee from using the pipe line for transporting or conducting substances other than oil.
Upon obtaining a construction permit under Part I, the permittee may, subject as herein provided,
(a) enter upon, for the purposes of the pipe line,
(i) so much of the lands of any person other than the Crown, and
(ii) so much of the lands of the Crown, other than lands forming part of a highway, as may be necessary for the building, construction, laying, or operating, of the pipe line; and may take, acquire, and expropriate for those purposes, a right of user of the lands;
(b) take, acquire, and expropriate, for the purposes of the pipe line, so much of the lands of the Crown, other than lands forming part of a highway, or so much of the lands of any other person, as may be necessary for the construction and operation of such pumping stations, tanks, surface reservoirs, pumps, and racks, and storage, loading, and terminal facilities, as are necessary for, or are used in connection with, the pipe line.
A permittee shall endeavour, by all reasonable means, to conclude an agreement with the owner of any land which, or the use of which, is required for the purposes of the pipe line, for a right of user of the land, or for the purchase or leasing of the land, as the case may be; but if, within 60 days after entering upon the land and taking the land or the user thereof, he has not concluded an agreement with the owner thereof, he may proceed to expropriate the land or a right of user of the land.
Subject to subsection (4), a permittee shall not under this section take, acquire, or expropriate, without the consent of the owner, for the purposes of a pipe line, lands or a right of user of lands exceeding 60 feet in breadth, except where the land is required for the purposes set out in clause (1)(b).
Where, for the efficient construction, maintenance, or operation, of a pipe line, or for constructing or taking any works or measures approved or ordered under this Act. a permittee requires more ample space than he possesses or than that to which he is limited under subsection (3), he may, as provided herein, on obtaining the written authority of the minister therefor, take, acquire, or expropriate, without the consent of the owner, the additional lands required for the purpose or a right of user thereof.
Notwithstanding any provision of The Municipal Act, on obtaining the written consent of the Minister of Highways and Transportation therefor as provided in section 13, a permittee may, subject to obtaining an operating licence as hereinafter provided and subject to any conditions stated in the consent, including the payment to the Crown or a municipality or any other person of the compensation, if any, fixed by the Minister of Highways and Transportation, construct, maintain, and operate, a pipe line on, across, or under, any highway.
The manner in which, and the terms upon which, a permittee shall use any land other than a highway, and any right of user thereof or any interest therein,
(a) shall be in accordance with the terms of any agreement effected between that person and the owner of any such land, including land owned by the Crown, or any interest therein;
(b) in the case of expropriation shall be as set forth in the terms and conditions set out in the form of grant of right of user set out in the Schedule:
and the permittee may, without the consent of the owner, forthwith proceed with the construction of the pipe line on the land, and do all such things as may be reasonably necessary or incidental thereto.
Before proceeding to expropriate land or a right of user thereof under this section, a permittee shall register in the proper land titles offices a plan of that land: but before the plan is so registered it shall
(a) be approved as to details by the Examiner of Surveys of the Winnipeg Land Titles Office: and
(b) in the case of Crown lands, be deposited with, and approved by, the Director of Surveys appointed under The Surveys Act.
A permittee or licensee is not entitled to the mines and minerals in or under lands taken by him under the compulsory powers given to him by this Act, except only the parts thereof that it is necessary to dig, carry away, or use in the construction of the works.
No owner, lessee, or occupier, of mines and minerals, other than oil or gas, lying under a pipe line or within 120 feet therefrom, shall work the mines or minerals until he has obtained from the minister leave to do so.
Upon an application to the minister for leave to work mines or minerals other than oil or gas, the applicant shall submit a plan and profile of the portion of the pipe line to be affected thereby, and of the mining works or plant proposed to be constructed or operated that may affect the pipe line, and shall give all reasonable and necessary information and details as to the extent and character thereof.
The applicant shall serve a copy of the application on the permittee, or licensee, at the time or before the application is made.
The minister may grant the application, upon such terms and conditions for the protection and safety of the public and the pipe line as he deems expedient: and he may order that such works be executed, or measures taken, as under the circumstances appear to him best adapted to remove or diminish the danger arising or likely to arise, from mining operations.
OPERATION OF A PIPE LINE
No person shall operate a pipe line until he has applied for, and obtained from, the minister an operating licence authorizing the operation of the pipe line in accordance with the licence and amendments thereto.
On or before making application for an operating licence, the applicant shall supply the minister with such complete and detailed plans and specifications as may be prescribed by the regulations, and such other information as the minister may require.
If the applicant has complied in all respects with the construction permit including the conditions, if any, attached thereto, and with this Act and the regulations, the minister shall issue the operating licence.
Before making application for an operating licence, the applicant shall file in the land titles office for each land titles district through which the pipe line passes a plan of the right-of-way thereof, or of such parts thereof as relate to land in that land titles district.
The plan shall be prepared in accordance with this Act and the regulations and in accordance with The Real Property Act and the regulations thereunder.
A licensee, or any other person, may apply to the minister for the revocation or suspension of the licence; and the minister, before referring the application to the Lieutenant Governor in Council, as hereinafter provided, may order the board to consider the application, either after having, or without having, conducted a public hearing with respect thereto, and to make recommendations to him thereon.
Where a person other than the licensee applies for revocation or suspension of an operating licence, the applicant shall, at the time of making the application, allege as a fact, and base the application on the allegation, that the licensee has failed, and continues to fail, to comply with or observe this Act, or the regulations, or the conditions of the operating licence, or some or all of them.
The applicant shall, in support of his application, and at the time of making it, show, by the affidavit of a person having knowledge of the facts,
(a) that he has, not less than 30 days before the making of the application, caused to be served on the licensee a notice in writing
(i) stating the particulars of the alleged default,
(ii) calling upon the licensee to rectify the default, and
(iii) stating that if the default is not remedied within 30 days, application will be made for the revocation or suspension of the operating licence; and
(b) that the alleged default has not been remedied and still continues.
The minister, after considering the application and the evidence in support thereof and the recommendations of the board, if any have been made, shall refer the application, with his recommendations thereon, to the Lieutenant Governor in Council.
The Lieutenant Governor in Council may, by order in council, direct the minister to revoke or suspend, or to refuse to revoke or suspend, the operating licence; and the order of the Lieutenant Governor in Council is final and the minister shall act as therein directed.
Where an operating licence is revoked or suspended it may be reinstated only upon order of the Lieutenant Governor in Council; and the procedure on an application for reinstatement shall, with such modifications as the circumstances require, be the same as in the case of an application for revocation under subsections (1), (4), and (5); but the applicant shall allege that the default by reason of which the operating licence was revoked or suspended has been remedied; and the minister, before dealing with the application may require notice thereof to be served on such persons as he may direct.
Subject to subsection (4), a pipe line, and the licensee to whom an operating licence in respect thereof is issued, is not subject to The Public Utilities Board Act.
A licensee or any other person may apply to the minister to have the pipe line declared to be a public utility; and the minister, before referring the application to the Lieutenant Governor in Council, as hereinafter provided, may order the board to conduct a public hearing with respect to the subject matter of the application and to make recommendations to him thereon.
The minister, after considering the application and the recommendations of the board, if any have been made, shall refer the application, with his recommendations thereon, to the Lieutenant Governor in Council.
The Lieutenant Governor in Council may declare the pipe line to be a public utility; and on such a declaration being made, the pipe line and the operating licence therefor are subject to all the provisions of The Public Utilities Board Act that are applicable to a public utility.
Where a pipe line is declared to be a public utility, in addition to any other penalty that may be imposed under The Public Utilities Board Act, and to any other power given to The Public Utilities Board under that Act, that board, on the ground of neglect or refusal by a licensee to comply with an order of that board, or with this Act, or the regulations, or the conditions of the operating licence, or some or all of them, may recommend to the minister that the operating licence be revoked or suspended; and the minister shall thereupon refer the recommendation to the Lieutenant Governor in Council as provided in subsection 21(4) in the case of an application under that section, and subsections 21(4) and (5) apply with such modifications as the circumstances require.
An operating licence shall not be revoked or suspended otherwise than as provided in this Act.
Where an operating licence is revoked or suspended as provided in this section, it may be reinstated only by order of the Lieutenant Governor in Council on receipt of a recommendation therefor made by The Public Utilities Board.
The minister may make an order exempting a pipe line or parts of a pipe line, not exceeding in any one case five miles in length, from any or all of the provisions of this Act other than section 13, subsection 16(5) and sections 26 and 27.
In any order made under this section the minister may impose such terms and conditions as he may deem advisable.
No permittee or licensee shall make any alteration, addition, or extension to the pipe line or to any other pipe line or work connected therewith, except for maintenance, unless the alteration, addition, or extension, is authorized by the minister; and the provisions of this Act regarding a pipe line apply with such modifications as the circumstances require to all such alterations, additions, and extensions.
Subject to subsection (2) unless an order has been made by the Lieutenant Governor in Council authorizing him to do so, no permittee or licensee shall discontinue the pipe line or any part of it.
Unless an order has been made by the minister authorizing him to do so, no person shall discontinue a pipe line in respect of which an order has been made under section 23 or any part thereof.
A permittee or licensee shall locate, construct, and maintain the pipe line and all works connected therewith so as not to endanger the public health or safety.
A permittee or licensee in the exercise of a power granted by this Act, shall do as little damage as possible, and shall make full compensation for all damage caused by, or arising out of, the exercise of the powers granted by this Act.
A construction permit or operating licence under this Act may be assigned or transferred subject to the prior approval of the minister.
Upon the revocation or suspension of an operating licence under this Act, no oil shall be carried by the pipe line until the operating licence is reinstated.
Every person who is a permittee or licensee under this Act shall register with the minister an address in the province for service upon him of any notice or order given or made pursuant to this Act.
Where damage is caused to a provincial highway or any other highway by reason of the construction, operation, or maintenance, of a pipe line on, across, over, or under, the highway, the owner and the operator of the pipe line is liable to the Crown or the municipality, as the case may be, whichever is the authority having jurisdiction over the highway, for the damage so caused and the cost of repairing it.
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) prescribing the forms in which application for construction permits and operating licences shall be filed;
(b) prescribing the form in which the authority to enter on land to make surveys, examinations, and arrangements for fixing the site of pipe lines given under section 6, shall be given;
(c) respecting the terms and conditions to which an authority granted under section 6 shall be subject, and which shall be observed by the person to whom the authority is granted;
(d) prescribing the form in which notice of an application for a construction permit shall be given, and the persons on whom, and the manner in which, the notice shall be served;
(e) prescribing the form in which the consent of the Minister of Highways and Transportation respecting the crossing of highways (including provincial highways) by pipe lines, given under section 13, shall be given;
(f) prescribing the plans and specifications that must be filed with an application for an operating licence;
(g) prescribing the form in which plans, profiles, and other information accompanying applications for construction permits or operating licences, or relating to the construction, operation, or maintenance of pipe lines, shall be filed, and prescribing the information to be shown therein;
(h) providing for the inspection of pipe lines during their construction, and thereafter, and for the cost of any inspection, and as to the persons by whom the cost is to be borne;
(i) providing for security for the payment of damages arising from the laying of a pipe line;
(j) prescribing measures of safety for the protection of life and property during and after the construction, installation, or operation of a pipe line;
(k) providing for the reconstruction or removal of pipe lines or works that through deterioration, or otherwise, have become, or may become, a danger or menace to life or property;
(l) fixing the minimum number, capacity, and nature of storage tanks of a pipe line that is declared to be a public utility;
(m) fixing the method of gauging the petroleum in any pipe line or pipe line system;
(n) fixing the number of meters, governors, or control valves, that must be installed on any pipe line; and providing for the manner of the installation thereof;
(o) providing for the analysis and testing of oil;
(p) providing for the marking of a pipe line with conspicuous signs;
(q) prescribing the maximum pressure to which any pipe line may be subjected;
(r) governing any pipe or any system or arrangement of pipes that constitutes a collection system or distribution system;
(s) fixing the percentage of loss allowable to the owner of a pipe line that is declared to be a public utility;
(t) prescribing a schedule of fees for an application for a construction permit, an operating licence, or any other application, order, or thing that may be made, done, or required, under this Act;
(u) fixing the types and gravities of oil that may be conducted through a pipe line or pipe lines;
(v) providing for specifications and minimum standards for pipe lines;
(w) prescribing extraordinary measures to be taken in event of an emergency endangering, or likely to endanger, life or property.
Nothing herein affects sections 21 to 30 of The Mines Act.
PENALTIES AND OFFENCES
Any person who wilfully does any damage to a pipe line, or obstructs, hinders, or embarrasses, the construction, completion, maintenance, or repair of, a pipe line for which a construction permit has been granted, is guilty of an offence and is liable, on summary conviction, to a fine not exceeding $1,000.
Every person who
(a) contravenes, directly or indirectly, any provision of this Act or of the regulations; or
(b) either alone or in conjunction with others, causes any person to contravene, directly or indirectly, any provision of this Act or of the regulations; or
(c) instructs, orders, or directs, any person to contravene, directly or indirectly, any provision of this Act or of the regulations;
is guilty of an offence and is liable, on summary conviction, to a fine not exceeding $1000. and, in the case of a continuing offence, to a fine not exceeding $1000. for each day during which the offence continues.
Every person who obstructs, hinders, or interferes with the minister, or any person authorized by him, in the exercise of any of the powers conferred by this Act is guilty of an offence and is liable, on summary conviction, to a fine of not less than $50. and not more than $500.
Where the minister has more than one remedy for the enforcement of any regulation or order made under this Act, he may resort to any or all of those remedies as he may deem proper, either concurrently or successively, until such time as the regulation or order has been complied with, and all costs and expenses have been fully paid and satisfied.
THE PIPE LINE ACT
GRANT OF RIGHT OF USER
I/We of the of in the
Province of Manitoba, (occupation) and of the of in the Province of Manitoba, (occupation), being the registered owner(s) (and the person(s) entitled to be registered as owner(s)) of an estate in fee simple, subject, however, to such encumbrances, liens, and interests, as are notified by memorandum underwritten (or endorsed hereon), in all that land described as follows:
(And we of the of in the Province of Manitoba, (occupation) (above named) (if such is the case), and of the of , in the Province of Manitoba, (occupation), the vendor and purchaser, respectively, under an agreement for sale of the land above described);
the person (or all of the persons) above named being hereinafter called the "grantor", in consideration of the sum of dollars ($ )
paid to me/us, the receipt whereof is hereby acknowledged, and in consideration of the covenants and conditions hereinafter mentioned to be kept and performed by (hereinafter called "the grantee");
DO HEREBY GRANT and transfer unto and to the grantee the licence, liberty, privilege, and right, to use that portion of those lands, being a right-of-way feet in width as shown outlined in on a plan of the lands registered in the land titles office for the Land Titles District of as Plan No. , for the laying down, construction, operation, maintenance, inspection, removal, replacement, reconstruction and repair of a pipe line or lines, together with all such stations, structures, drips, valves, fittings, meters and other equipment and appurtenances as may be necessary or convenient in connection therewith, for the carriage, conveyance, transportation, and handling, of petroleum or petroleum products, or water or natural gas produced incidental to the production thereof, through or by means thereof, together with the right of ingress and egress for all purposes incidental to the grant, as and from the day of , 19 , and for so long thereafter as the grantee may desire to exercise the rights and privileges hereby given, on the following terms and conditions which are hereby mutually covenanted and agreed to by and between the grantor and the grantee:
First: The grantee shall compensate the grantor for damage done to any crops, fences, timber, and livestock on the right-of-way by reason of the exercise of the rights hereinbefore granted.
Second: The grantee shall fully compensate the grantor for loss suffered by reason of damage to persons or property arising by reason of, or out of, the existence, ownership, operation, maintenance, or use, of the pipe line.
Third: The grantee will indemnify and save harmless the grantor against and from all liability to, and actions or proceedings by, any person brought or taken by reason of any loss or damage, or alleged loss or damage, caused or claimed to have been caused, or arising out of, or claimed to arise out of, the existence, ownership, operation, maintenance, or use, of the pipe line.
Fourth: The grantee shall, as soon as weather and soil conditions permit, bury and maintain all pipe lines so as not to interfere with the drainage or ordinary cultivation of the lands.
Fifth: Upon the discontinuance of the use of the right-of-way and of the exercise of the rights hereby granted, the grantee shall restore the lands to the same condition, so far as may be practicable so to do, as they were in prior to the entry thereon and the use thereof by the grantee.
Sixth: The grantee, performing and observing the covenants and conditions on its part to be performed and observed, shall and may peaceably hold and enjoy the licence, liberty, privilege, and right, hereby granted without hinderance, molestation, or interruption, on the part of the grantor or of any person, firm or corporation claiming by, through, under or in trust for, the grantor.
(Here add any additional covenants that may be agreed upon between the parties).
Seventh: All notices to be given hereunder may be given by registered letter addressed to the grantee at , and to the grantor at , or such other address as the grantor and the grantee may respectively from time to time appoint in writing; and any such notice shall be deemed to be given to, and received by, the addressee seven days after the mailing thereof, postage prepaid.
Eighth: This right of user is, and shall be of the same force and effect to all intents and purposes as, a covenant running with the land, and these presents, including all the covenants and conditions herein contained, shall extend to, be binding upon, and enure to the benefit of, the executors, administrators, successors, and assigns, of the grantor and the grantee respectively; and wherever the singular or masculine is used it shall be construed as meaning the plural or feminine, or a body corporate, where the context or the parties so require.
IN WITNESS WHEREOF the grantor and grantee have executed and delivered this right of user this day of , 19 .
SIGNED, in the presence of: