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ARTICLE · 13 JUNE 2014

B.C. Supreme Court Sets Aside B.C. Surface Rights Board Rent Review

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The B.C. Supreme Court set aside the B.C. Surface Rights Board’s compensation award to a landowner in northern and remitted the case for reconsideration.

CanadaEnergy and Natural Resources
Michael Theroux
Michael Theroux
Daron Naffin
Daron Naffin
Laura Gill
Laura Gill
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In reasons released on May 30, 2014, the B.C. Supreme Court set aside the B.C. Surface Rights Board's compensation award to a landowner in northern B.C. and remitted the case back to the Board for reconsideration: Progress Energy Canada, Ltd. v. Salustro, 2014 BCSC 960. The case sets out some important principles as to how the Board should assess the compensation payable to a landowner under a surface lease.

The Board is the statutory decision maker set up to resolve disputes between landowners and companies that require access to private land to explore, develop, or produce Crown-owned subsurface resources such as oil, gas, and minerals. Its mandate includes determining the amount to be paid to a landowner for a company's entry, occupation, and use of private land upon an application for rent review. Due to the lack of case law and inconsistencies that have emerged in the Board's compensation awards, operators have in recent years faced unpredictable results in

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