Civil Dispute Case Study: A Pipeline Quandary
Challenge
A landowner wants to relocate multiple assets on his property to a different location on his land but is restricted due to a proposed new pipeline location and current pipeline right-of-way.
Judy (owner of JRB Mediations), who was a mediator for the Alberta Energy Regulator at the time, was referred to conduct mediation services on this matter, and facilitate a mutually beneficial agreement between the landowner and the national oil company responsible for the pipelines.
Background
A national oil company applied for approval to the Alberta Energy Regulator to construct a new pipeline and a pipeline battery facility on a landowner's property, where several pipeline Right-of-Ways (ROW) already existed. While some pipelines on the site were abandoned due to age and integrity concerns, others were deactivated in anticipation of potential future use.
The landowner's property was situated alongside a deep gorge that was rapidly eroding, posing an imminent threat to the access road leading to his property. Due to land erosion and soil sloughing, he wanted to relocate the access road, his house, other buildings, and power lines to a different location on his property, but was restricted due to current pipeline ROWs and proposed pipeline locations.
The Goal
The purpose for mediation was to facilitate a conversation between the two parties so each side could:
understand the other’s perspectives and concerns
clarify assumptions or miscommunications
introduce impacts of the project to the landowner
review company limitations
work together towards mutually agreeable resolutions
The Process
Prior to mediation separate pre-mediation interviews were conducted with the landowner and the company. The following is a summary of the interviews identifying both positions (what they want) and interests (what is important to them) of the parties.
Positions & Interests of the parties
Landowner
Landowner’s Position:
For the company to remove abandoned pipelines from his property and/or
For the company to remove the caveat on his Land Title identifying the abandoned pipelines on his property
Landowner’s Interests:
Decrease the number of easements on his land
Relocate his house and other buildings elsewhere on his property
Boring of the proposed pipeline, so there is no trenching on his property
Minimize environmental disturbances
Re-routing of the county property access road
Decrease noise during pipeline work and construction
The Company
The Company’s Position:
Not to remove abandoned pipelines without just cause (doing so would cause more environmental disturbances and is not economical),
Not to not remove caveats from Land Titles. Anyone who obtains the property's land title must know about the pipelines on the land and their location.
The Company’s Interests:
Minimizing environmental disturbances
Economics
Decrease construction impacts to landowners
Key Issues identified for Mediation
Right-of-Way Agreement
Easements
Communication
Road, noise, and water
Details of the Mediation
Mediation Preparation:
The mediator (Judy) reviewed interview notes, relevant directives, the company’s application to the Regulator, the landowner’s Statement of Concern to the Regulator, and other documents prior to conducting the mediation.
The mediation was conducted in a town closest to the landowner’s residence. The landowner arrived alone, while the company had sent a team of four people, including individuals with authority to make decisions and a company pipeline specialist.
The company brought maps depicting the location of current, abandoned, and deactivated pipelines, as well as proposed pipelines.
The landowner provided his own maps and drone images showing the location of his buildings, fields, roads, river, neighboring property, and property lines. He also provided historical information about his property and the surrounding area.
Focus of discussions:
Initial discussions focused on:
The Right-of-Way (ROW) of the pipelines
The location of the proposed pipelines
The proposed pipeline battery
The landowner's focus was on the removal of the ROWs and changing the location of the proposed pipeline, along with noise and water issues. The company was adamant about its inability to remove any ROW or easements from the property.
During the conversation, the landowner shared more information with the company. They discussed the issue of soil sloughing in the gorge, the history of the land, and the current and future locations of the house and buildings, which were also marked on the maps
As the mediator, Judy ensured that:
The company understood the seriousness of the land issues and severity of the soil sloughing issues.
The landowner understood the legal responsibilities of the company regarding pipeline locations and the documentation of their location.
The landowner explained why he had to move his buildings and access roads due to the proposed pipelines. The company stated that no buildings can be built on top of abandoned or existing pipelines and explained the costs of removing the pipelines.
The landowner used maps to show them that due to erosion:
the county access road would disappear within five years
his house would be on the edge of the gorge and no longer safe to live in.
He presented the company with
his proposed construction sites,
various alternative locations for the pipelines,
asked again for the removal of any abandoned pipelines from the proposed construction sites.
The Successful Resolutions
As mediator, Judy successfully facilitated these discussions, ensuring that all parties understood each other's perspectives and interests. She helped them find common ground and drafted negotiated resolutions they agreed to.
Resolutions:
Pipeline removal: the company will remove parts of abandoned pipelines if a building permit shows proposed development occur atop of it.
Noise: the company shall pay for a hotel for up to 7 days as pipeline boring is underway.
New Pipeline: the company shall review re-routing of the proposed new pipeline off the landowner’s property.
After extensive discussions, the company understood the importance of removing and relocating pipelines for the landowner. Both the company and landowner agreed to the resolutions identified above.
Duration of the Mediation:
With the help of the mediator (Judy), the parties were able to resolve their issues and negotiate a mediated agreement within 5 hours.