Frequently Asked Questions

Much of the information below is specific to the pipelines regulated by National Energy Board (NEB). Similar information, however, with respect to provincially regulated pipelines can be obtained directly from the provincial regulators.

 Is regulatory approval needed to construct and operate a pipeline?

Yes. All pipeline companies that intend to construct and operate inter-provincial pipelines require approval from the National Energy Board (NEB) in Calgary. As well, most provinces have their own energy boards such as the Alberta Energy Board (AEB) and Ontario Energy Board (OEB), which regulate pipelines that are located wholly within provincial boundaries.

Upon receipt of an application from a pipeline company for approval to construct a new inter-provincial pipeline, the NEB is required to hold a public hearing (the "Certificate Hearing") to determine whether the proposed project is in the public convenience and necessity. The NEB will consider a variety of issues at the hearing, including the economic feasibility of the project, the existence of markets for the oil or gas, pipeline design, construction procedures, public safety and potential adverse environmental impacts, but not compensation. While any interested landowner can apply for intervenor status to participate in the Certificate Hearing, there is no provision in the legislation for reimbursement of costs incurred by the landowner to participate in the proceedings. Therefore, it is extremely difficult as a single landowner to bring an intervention; however, some landowners have been able to successfully participate at the Certificate Hearing as part of a larger group of affected landowners (see Landowner Organizations).

If a pipeline company has been granted a Certificate of Convenience and Public Necessity authorizing construction of a new pipeline and you are not happy with the proposed pipeline route, you have a right under section 35 of the NEB Act, R.S.C. 1985, c. N-7 to request a Detailed Route Hearing. The purpose of the Detailed Route Hearing is to determine, on a site-specific basis, the best possible route of the pipeline and the most appropriate methods of timing and construction of the pipeline. The NEB may, after a public hearing, alter the proposed route and/or impose conditions on the timing and method of construction to minimize any potential adverse environmental impacts. While landowners are entitled to be reimbursed by the pipeline company for their reasonable costs of participating in the Detailed Route Hearing, there have been very few Detailed Route Hearings held under the Act.

 What is a right-of-way or easement agreement?

A right-of-way or easement agreement is a legally-binding agreement between a landowner and pipeline company which gives the company the right to use a defined area of the landowner’s property (the "easement") for the purpose of constructing, operating, maintaining, repairing and, in some cases, relocating and moving a pipeline or pipelines. The right-of-way or easement agreement is the main document governing the rights and responsibilities of the landowner and the pipeline company, and usually sets out the landowner’s right to damages, the pipeline company’s right of access, obligation to restore the land after construction, and responsibility for tile drains. Any easement agreements entered into after March 1, 1983 with respect to federally regulated pipelines must include, at a minimum, provision for:

Does the pipeline company have the right to access my property without my consent?

If you have already granted an right-of-way or easement to the pipeline company, they may have the right to enter onto your property without your consent. The rights and responsibilities of the parties are set out in the easement agreement which can be obtained from your local registry office or the pipeline company, if you do not have a copy. The first paragraph, known as the "granting clause", often provides a right of ingress and egress on the easement lands at any time. The easement lands are defined in the agreement and usually comprise a strip of land 18-feet to 40-feet in width. This means that the company can enter upon those lands at any time without your prior consent. However, most easement agreements require the pipeline company to obtain your consent prior to entering upon the remainder of your off-easement property except in the case of emergency.

If there is no easement agreement, a federally regulated pipeline company generally does not have any right to enter upon your property without your consent unless it has commenced an application with the NEB for leave to construct a new pipeline. If the company is seeking approval to construct a new pipeline, the company may have statutory authority under the NEB Act, R.S.C. 1985, c. N-7 to enter your property without permission, if your property lies within the intended pipeline route. However, the company is only permitted to enter upon your lands for the purpose of surveying, examining or fixing the proposed site of the pipeline. Some landowners have taken the position that even this limited right-of-entry is not available to the pipeline company until after the Board has determined the pipeline is the public convenience and necessity.

 What if I refuse to grant the pipeline company access to my property?

Unless the pipeline company has a contractual right under its easement agreement or a statutory right, as in the case of an application for regulatory approval to construct a new pipeline described above, you are under no obligation to permit entry to your property. If you do not wish to give the pipeline company permission to enter upon your property, the company will have to bring an application to the NEB for a Right-of-Entry authorizing them to enter. You will receive notice if the company commences an application for a Right-of-Entry and be given an opportunity to respond. The NEB will determine whether or not to authorize entry to your property and the conditions, if any, under which the company can enter. While landowners can object to the issuance of a Right-of-Entry, pipeline companies have been successful in obtaining Right-of-Entry orders with essentially identical terms as the companies’ standard form right-of-way or easement agreement.

If the pipeline company proceeds to enter your property without your consent, in the absence of any contractual or statutory right, the company may be guilty of trespass. You are within your rights to ask the company’s representatives to leave or request police assistance to have them removed from your property.

 Am I entitled to compensation for damages caused by the pipeline company?

All federal pipeline landowners have a statutory right under the NEB Act, R.S.C. 1985, c. N-7 to be compensated in full for all damages sustained by them from the exercise of the pipeline company’s powers under the Act.

In addition, all right-of-way or easement agreements after March 1, 1983 with respect to federally regulated pipelines (and some older agreements) also give the landowner a contractual right to compensation for all damages caused as a result of the pipeline company’s operations.

The types of compensation that pipeline landowners can expect to receive for construction of a new pipeline include:

 What can I do if I'm not happy with the pipeline company's compensation offer?

If you are not happy with the pipeline company’s compensation offer, you can:

Most landowners know that it is very difficult to negotiate with the pipeline company’s land agent on their own, and few landowners have had any success dealing with the company on an individual one-to-one basis. Landowners that have achieved satisfactory compensation packages have largely been successful by forming an association (see Landowner Organizations).