MEDIATION AND ARBITRATION BOARD
Under the Petroleum and Natural Gas Act
#114, 10142 - 101 Avenue
Fort St. John, BC V1J 2B3
Date: 6 March 2003
File No. 1488A
Board Order No. 370M
BEFORE THE MEDIATOR:
IN THE MATTER OF THE PETROLEUM AND
NATURAL GAS ACT BEING CHAPTER 361 OF
THE REVISED STATUTES OF BRITISH
COLUMBIA AND AMENDMENTS THERETO:
(THE ACT)
AND IN THE MATTER OF A PORTION OF THE
NORTH EAST ¼ SECTION 18, TOWNSHIP 82,
RANGE 13 WEST OF THE SIXTH MERIDIAN
PEACE RIVER DISTRICT
(LS 9 - 18 - 82 - 13 W6M)
(THE LANDS)
BETWEEN:
TAURUS EXPLORATION
1000, 630-6TH AVENUE SW
CALGARY, ALBERTA
T2P 0S8
(THE APPLICANT)
AND:
EARL THOMAS MARSHALL
C/O CARTER LOCK & HORRIGAN
9803 101 AVENUE
GRANDE PRAIRIE, AB
T8V 0X6
(THE RESPONDENT)
____________________________________
MEDIATION ORDER
_____________________________________
File No.1488A Board Order 370M
TAURUS EXPLORATION vs. EARL THOMAS MARSHALL
Page 2
BACKGROUND:
On November 21, 2002 a mediation was conducted by Rodney J. Strandberg, Chairman of the
Mediation and Arbitration Board regarding an Application filed by Taurus Exploration Ltd. (the
“Applicant”) for right of entry on land owned by Earl Thomas Marshall (the “Landowner”) to
construct, drill operate and maintain a well site and access road and flow line if the well was
economically viable. The land is legally described as the North East ¼ Section 18, Township 82,
Range 13 W6M Peace River District.
Board Order 363M dealt with the issues surrounding the well site.
In the course of the mediation it appeared that the well site, which was proposed by the Applicant,
would cross the British Columbia/ Alberta border. The Mediator expressed concern about the
jurisdiction of the Board to deal with an inter-provincial flow line. Both parties were asked to make
submissions on the jurisdictional aspects of this Application and the mediation was adjourned.
Neither party made any formal submissions on the jurisdiction of the Board regarding this
Application although counsel for the Landowner wrote a letter to the Board on January 31, 2003
advising that the Applicant had now made Application to the National Energy Board for approval
for this project.
Jurisdiction
The relevant portion of Section 1 of the Petroleum and Natural Gas Act defines pipeline as “…a
pipe or system or arrangement of pipes wholly in British Columbia…”
It is clear that this pipeline, or flow line, is not situated wholly in British Columbia. As it crosses a
provincial border, it falls under federal jurisdiction over inter-provincial trade and commerce. The
legislature of the Province of British Columbia has no jurisdiction to pass legislation that deals with
this aspect of federal jurisdiction.
The Mediation and Arbitration Board, established under
provincial legislation, has no jurisdiction to grant right of entry or any other relief regarding the
pipeline that is the subject matter of this Application.
File No.1488A Board Order 370M
TAURUS EXPLORATION vs. EARL THOMAS MARSHALL
Page 3
Accordingly, under Section 18(2)(a) of the Petroleum and Natural Gas Act, the Application is
dismissed as the Application deals with a matter over which this Board has no jurisdiction.
Costs
By letter to the Board dated 31 January 2003 counsel for the Landowner stated that the only
remaining matter to be dealt with was costs.
Although requested to make submissions on costs, none were received by the Board. As a result
of telephone discussions between the Administrator of the Board and the parties, it is the
understanding of the Mediator that costs have been settled between the parties and there are no
claims for costs outstanding. Accordingly, the Application is dismissed with each party bearing his
or its own costs of this proceeding before the Board.
IT IS HEREBY ORDERED THAT;
1. The Application of Taurus Energy Ltd. for permission to enter the property of the
Landowner legally described as NE ¼ Section Township 18, Range 13 W6M contained in
the Application dated November 15, 2002 for the purpose of constructing, operating and
maintaining a flow line is dismissed.
2. Each party will bear his or its costs of the proceedings before the Board regarding this
Application.
Dated at the City of Fort St. John, British Columbia, this 6th day of March 2003.
MEDIATION AND ARBITRATION BOARD
UNDER THE
PETROLEUM AND NATURAL GAS ACT
___________________________________
Rodney J. Strandberg, Mediator