Judgments

Decision Information

Decision Content

A-161-78
Yukon Conservation Society and Council for Yukon Indians (Appellants)
v.
National Energy Board and Foothills Pipe Lines (Yukon) Ltd. (Respondents)
Court of Appeal, Pratte, Urie and Le Dain JJ.— Vancouver, November 30, December 1 and 5, 1978.
Practice — Application for summary dismissal in appeal launched on jurisdictional ground against decision of National Energy Board concerning applications for certificates of public convenience and necessity for construction of northern pipeline — Contention that Northern Pipeline Act establishes adminis trative and regulatory scheme to carry out and give effect to Canada-U.S. Northern Pipeline Agreement rendering appeal academic — Northern Pipeline Act, S.C. 1977-78, c. 20, ss. 2, 20 — National Energy Board Act, R.S.C. 1970, c. N-6, s. 18.
This is an application for the summary dismissal of an appeal against the decision of the National Energy Board in respect of applications for certificates of public convenience and necessity for the construction of a northern natural gas pipeline on the ground that the appeal has been rendered academic by the Northern Pipeline Act which establishes a special administra tive and regulatory scheme to carry out and give effect to the Canada-U.S. Northern Pipeline Agreement. The appellants had appealed on the ground that the Board exceeded its jurisdiction in making recommendations with respect to the Dawson diversion and the Dempster link when those proposals were neither covered by the applications before it nor supported by the necessary material.
Held, the application for summary dismissal is granted and the appeal is dismissed. Courts of Appeal will exercise the power of summarily dismissing an appeal where by a change of circumstances the issue before the parties has disappeared, so that a judgment of the court would not serve any practical purpose, except as to costs. The Northern Pipeline Act has removed the raison d'être of the appellants' appeal and deprived it of any practical purpose, in so far as the interest of the appellants is concerned. The Act has not set aside the decision of the National Energy Board but it has given such effect to it and has deprived its recommendation with respect to the Dawson diversion of any further significance. The appel lants, therefore, suffer no possible prejudice from the Board's recommendation with respect to the Dawson diversion, and thus have no further interest in challenging it.
APPLICATION. COUNSEL:
D. J. Rosenbloom and D. G. McCrea for appellants.
H. Soloway, Q.C. for respondent, National Energy Board.
L. M. Sali for respondent, Foothills Pipe Lines (Yukon) Ltd.
G. R. Forsyth, Q.C. for the Alberta Gas Trunk Line (Canada) Limited and The Alberta Gas Trunk Line Company Limited. W. B. Scarth for Attorney General of Canada.
SOLICITORS:
Rosenbloom & McCrea, Vancouver, for appellants.
Soloway, Wright, Houston, Greenberg, O'Grady, Morin, Ottawa, for respondent Na tional Energy Board.
McLaws & Company, Calgary, for respond ent Foothills Pipe Lines (Yukon) Ltd.
Howard, Dixon, Mackie, Forsyth, Calgary, for the Alberta Gas Trunk Line (Canada) Limited and The Alberta Gas Trunk Line Company Limited.
Deputy Attorney General of Canada for Attorney General of Canada.
The following are the reasons for judgment delivered orally in English by
LE DAIN J.: This is an application for the summary dismissal of an appeal against the deci sion of the National Energy Board of July 4, 1977 in respect of applications for certificates of public convenience and necessity for the construction of a northern natural gas pipeline on the ground that the appeal has been rendered academic by the Northern Pipeline Act, S.C. 1977-78, c. 20, which came into force by proclamation on April 13, 1978 (P.C. 1978-1141).
After a lengthy hearing of competing applica tions for approval of northern pipeline projects the National Energy Board approved the Foothills (Yukon) project for a pipeline that would trans port gas from Alaska through the Yukon along the Alaska Highway. The Board attached two condi tions, among others, to this approval: that the route through the Yukon should include what is referred to as the Dawson diversion or realign-
ment, and that the successful applicants should be required to apply for a certificate of public conve nience and necessity for what is referred to as the Dempster link to bring natural gas from the Mackenzie Delta to a point of connection with the Alaska Highway pipeline. In its reasons for deci sion, which are published in three volumes under the title Reasons for Decision, Northern Pipelines, the Board speaks of the Dawson diversion as a "logical, indeed a necessary complement" to a Dempster link and as appearing to be "clearly in the Canadian interest" (Vol. 1, p. 1-167) and strongly recommends it, but at the same time the Board indicates that further consideration will be necessary before giving it final approval. This is clear from the following passages in its reasons for decision:
As a condition of a certificate the Board would require that the Applicant's commitment to carry out additional socio-eco nomic and environmental studies be expanded to include stud ies of these aspects for the Dawson realignment. Before making a ruling on final route location, the Board would provide an opportunity for input of interested parties. [Vol. 1, p. 1-169]
Although not formally proposed as a possible route change, the feasibility and merits of a realignment of the route from Boundary, Alaska, through Dawson and Pelly Crossing to Whitehorse along the Klondike Highway in the Yukon, rejoin ing the Alaska Highway at Whitehorse, was discussed by the Applicant, having in mind the future possibility of connecting Delta reserves to the Alaska Highway line via a "Dempster link". The Board would condition any certificate it might issue to require that the Applicant study the environmental aspects of a "Dawson" realignment and submit the results to the Board. [Vol. 3, p. 6-173]
In its recommendations to the Governor in Council, indicating the terms and conditions on which it is prepared, with the approval of the Governor in Council, to issue certificates of public convenience and necessity, the Board provides for the Dawson diversion in Conditions 20 and 21 as follows:
20. The route of the said pipeline within Canada shall be that route as more particularly described in the said application, except that, and subject to further direction of the Board, commencing at the international boundary between the United States and Canada in the vicinity of Boundary,
Alaska, the pipeline route shall proceed in an easterly direc tion along Highway 3, or as close thereto as practicable, to the City of Dawson in the Yukon Territory, from which point the pipeline shall proceed in a southeasterly direction along the Klondike Highway, or as close thereto as practicable, to the vicinity of the junction of the Klondike and Alaska Highways near the City of Whitehorse in the said Territory.
21. Foothills Pipe Lines (Yukon) Ltd. shall, not later than 1 January 1978, or such other date as the Board, upon applica tion to it, may fix, prepare and file with the Board with respect to the Dawson realignment defined in Condition 20:
(a) details of design, route location, compressor station sites necessary and requisite for such route;
(b) particulars of cost and financing;
(c) an assessment of the probable environmental impact of the pipeline, including a description of the existing envi ronment in the defined area and a statement of the meas ures proposed to mitigate such impact;
(d) an assessment of the probable socio-economic impact of the pipeline in the defined area and a statement of the measures proposed to be taken with respect to such impact. [Vol. 1, pp. 1-187 and 1-188]
The Board's recommendations to the Governor in Council concerning the proposed agreement respecting the Dempster link were put in the fol lowing terms:
First Agreement:
(a) Foothills (Yukon) or any successor company to conduct feasibility studies with respect to the construction of a natu ral gas pipeline of no less than 30-inch diameter from the Mackenzie Delta area parallel to the Dempster Highway connecting Delta gas to the Foothills (Yukon) mainline at Dawson City in the Yukon Territory—"the Dempster link".
(b) On or before 1 July 1979, or such later date as may be approved by the Government of Canada, Foothills (Yukon) or a subsidiary thereof to make or cause an application to be made to the National Energy Board for a certificate of public convenience and necessity to authorize construction of a pipeline generally along the route of the Dempster High way and to file all information and material required by the provisions of the NEB Act and directives of the Board, and if such certificate is issued to forthwith thereafter and in a timely manner construct and operate such a pipeline. [Vol. 1, pp. 1-174 and 1-175]
The appellants, Yukon Conservation Society and Council for Yukon Indians, have appealed against the Board's decision with leave of this Court, pursuant to section 18 of the National Energy Board Act, R.S.C. 1970, c. N-6, on the ground that the Board exceeded its jurisdiction in making recommendations with respect to the Dawson diversion and the Dempster link when
these proposals were not covered by the applica tions before it and supported by the necessary material, and in particular, that the appellants did not receive sufficient notice and an opportunity to be heard concerning the Dawson diversion pro posal. The issues on the appeal are referred to in the appellants' memorandum on the application for summary dismissal as follows:
The issue as to whether the National Energy Board can approve a route which is substantially different from the route applied for, whether it can do so without giving prior notice and without an application before it, and whether or not it can approve the construction of a pipeline without the filing of the material required by its own rules and procedure is of vital concern to all future hearings of the National Energy Board, and all other similar Canadian public tribunals ....
The application for summary dismissal of the appeal is brought by the National Energy Board. It is supported by counsel for Foothills Pipe Lines (Yukon) Ltd., the Alberta Gas Trunk Line (Canada) Limited and The Alberta Gas Trunk Line Company Limited, and the Attorney General of Canada. It is the contention of counsel in support of the application that the appeal has been rendered academic by the Northern Pipeline Act.
Courts of Appeal will exercise the power of quashing or summarily dismissing an appeal where there is such manifest lack of substance in the appeal as to bring it within the character of vexa tious proceedings, or where by a change of circum stances the issue between the parties or the "sub- stratum of the litigation" has disappeared, so that a judgment of the court would not serve any practical purpose, except as to costs. See National Life Ass. Co. v. McCoubrey [1926] S.C.R. 277; Coca-Cola Company of Canada Ltd. v. Mathews [1944] S.C.R. 385; Oatway v. Canadian Wheat Board [1945] S.C.R. 204; Canadian Cablesystems (Ontario) Ltd. v. Consumers' Association of Canada [1977] 2 S.C.R. 740.
The Northern Pipeline Act establishes a special administrative and regulatory scheme to carry out and give effect to an "Agreement Between Canada and the United States of America on Principles Applicable to a Northern Natural Gas Pipeline" (referred to in the Act as the "Agreement"). The Act establishes a Northern Pipeline Agency to
carry out with the Board the administrative and regulatory purposes of the legislation. Section 20 of the Act grants certificates of public convenience and necessity for the pipeline contemplated by the Agreement. It reads in part as follows:
20. (1) A certificate of public convenience and necessity in respect of the pipeline is hereby declared to be issued to each company listed in Schedule II for that portion of the route indicated in the Agreement in respect of that company.
(2) A certificate of public convenience and necessity declared to be issued by subsection (1) is deemed to be a certificate issued pursuant to section 44 of the National Energy Board Act.
(3) Every certificate declared to be issued by subsection (1) is subject to the terms and conditions set out in Schedule III.
"Pipeline" is defined by section 2(1) of the Act as follows:
"pipeline" means the pipeline for the transmission of natural gas from Alaska across Canada along the route set out in Annex I to the Agreement and includes all branches, exten sions, tanks, reservoirs, storage facilities, pumps, racks, com pressors, loading facilities, interstation systems of communi cation by telephone, telegraph or radio, and real and personal property and works connected therewith.
The approved route of the pipeline does not include the Dawson diversion or realignment, as appears from the description of that portion of the pipeline route in Annex I to the Agreement as follows:
From the Alaska-Yukon border, the Foothills Pipe Lines (South Yukon) Ltd. portion of the Pipeline will proceed in a southerly direction generally along the Alaska Highway to a point near Whitehorse, Yukon, and thence to a point on the Yukon-British Columbia border near Watson Lake, Yukon where it will join with the Foothills Pipe Lines (North B.C.) Ltd. portion of the Pipeline.
This is further confirmed by Condition 2 in Schedule III of the Act which reads:
2. Subject to condition 18, the company shall cause the pipeline to be designed, manufactured, located, constructed, installed and operated in accordance with those specifications, drawings and other information or data set forth in the applica tions of Foothills Pipe Lines (Yukon) Ltd., the Alberta Gas Trunk Line (Canada) Limited, Westcoast Transmission Com pany Limited, and Alberta Natural Gas Company Limited and in the submission of The Alberta Gas Trunk Line Company Limited to the Board, as amended during the Hearing and in the undertakings given by those companies during the Hearing or as ordered, directed or approved by the designated officer and no design, specification, location, drawing •or other infor-
mation or data shall be varied except as ordered, directed or approved by the designated officer.
There is an apparent allusion to the Dawson diversion and the advantages which the Board perceived in it in clause 6(b) of the Agreement which reads in part as follows:
(b) It is understood that, to avoid increased construction and operating costs for the transportation of Alaskan gas, the Pipeline will follow a southern route through the Yukon along the Alaska Highway rather than a northern route through Dawson City and along the Klondike Highway. In order to provide alternative benefits for the transportation of Canadian gas to replace those benefits that would have been provided by the northern route through Dawson City, U.S. shippers will participate in the cost of service in Zone 11.
The Agreement contemplates the construction and operation of a lateral pipeline to transmit northern Canadian gas that is referred to in sever al places as the "Dempster Line". It is to connect with the pipeline near Whitehorse. Annex II of the Agreement, which defines the Zones for the pipe line and the Dempster Line in Canada, describes Zones 10 and 11 as follows:
Zone 10 Foothills Pipe Lines (North Yukon) Ltd.
Mackenzie Delta Gas fields in the Mackenzie Delta, N.W.T., to a point near the junction of the Klondike and Dempster Highways just west of Dawson, Yukon Territory.
Zone 11 Foothills Pipe Lines (South Yukon) Ltd.
A point near the junction of the Klondike and Dempster Highways near Dawson to the connecting point with the Pipeline at or near Whitehorse.
From the foregoing I would conclude that the Northern Pipeline Act has removed the raison d'être of the appellants' appeal, to use the expres sion of Laskin C.J.C. in the Cablesystems case, supra. It has deprived the appeal of any practical purpose, in so far as the interest of the appellants is concerned. The Act has not set aside the deci sion of the National Energy Board but it has given such effect to it as Parliament intends should be given to it and has deprived its recommendation with respect to the Dawson diversion of any fur ther significance. It is quite clear from the Act and the Agreement which it implements that that recommendation has been considered and rejected. It was at most a recommendation that would require the submission of further information and material from the applicants and further inquiry
and opportunity for representations before final approval. The affidavit in support of the applica tion for summary dismissal indicates that Foothills Pipe Lines (Yukon) Ltd. has not submitted the information that would have been required by Condition 21 recommended by the Board and quoted above. The Act grants certificates of public convenience and necessity for a route that clearly excludes the Dawson diversion. As a result, the appellants suffer no possible prejudice from the Board's recommendation with respect to the Dawson diversion, and they have thus no further interest in challenging it. Given the essentially conditional or tentative nature of the Board's recommendation with respect to the Dawson diver sion, and the informational and planning basis that would have to be laid before any such change in the route could be approved, it is in my view a practical certainty that such a change by amend ment to the Agreement and the Act is not feasible, at least without further hearing. Not only are the appellants not prejudiced at the present time by the Board's recommendation with respect to the Dawson diversion but they cannot conceivably be prejudiced by it in the future.
As for the Board's recommendation with respect to the Dempster link, the Act contemplates the possibility of a Dempster Line but does not grant a certificate of public convenience and necessity for it. We were informed by counsel that Foothills Pipe Lines (Yukon) Ltd. has agreed with the Government to apply to the Board for such a certificate. The application will undoubtedly be the subject of a hearing at which there will be a full opportunity for the appellants to make representations should they desire. The Board's recommendation with respect to the Dempster link can have no legal effect on the provision that is made in the Act for a Dempster Line nor on the validity of an application for a certificate of public convenience and necessity and the subsequent dis position of it by the Board pursuant to a public hearing.
For all these reasons it is my opinion that the appeal has been rendered academic and this Court should decline to hear it. Because of the singular context in which the issues arise I see no reason to exercise the Court's discretion to allow the appeal to proceed on the ground of the general impor tance of the questions raised.
I would grant the application for summary dis missal and dismiss the appeal.
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PRATTE J. concurred.
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URIE J. concurred.
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