Judgments

Decision Information

Decision Content

81-A-321
Committee for Justice and Liberty Foundation, Canadian Arctic Resources Committee, Dene Nation, Metis Association of the Northwest Terri tories (Applicants)
v.
Interprovincial Pipe Line (NW) Ltd., Alberta Chamber of Resources, Amoco Canada Petroleum Company Ltd., Chieftain Development Co. Ltd., City of Yellowknife, Esso Resources Canada Lim ited, Foothills Pipe Line (Yukon) Ltd., Govern ment of the Northwest Territories, Hay River Area Economic Development Corp., Imperial Oil Limited, Inuvik and District Chamber of Com merce, Dene Tha' Band, NWT Grade Stamping Agency, Rainbow Pipe Line Company Ltd., Town of Inuvik and National Energy Board (Respond- ents)
Court of Appeal, Thurlow C.J. and Heald and Urie JJ.—Ottawa, June 27 and 30, 1981.
Energy — National Energy Board Act — Application for leave to appeal decision of Board granting a certificate of public convenience and necessity for construction of a pipeline — Applicants alleging deficiency of evidence before the Board in areas of concern to them — Whether there is a reasonably arguable question of law or jurisdiction which the Court would be entitled to consider — National Energy Board Act, R.S.C. 1970, c. N-6, ss. 18(1), 29, 35, 39, 46.
Applicants seek leave to appeal a decision of the National Energy Board granting a certificate of public convenience and necessity to Interprovincial Pipe Line (NW) Ltd. for the con struction and operation of a pipeline. Applicants allege defi ciency of evidence before the Board particularly in areas of concern to them and submit that evidence curing the deficiency was necessary before the Board could issue the certificate. The question is whether there is a reasonably arguable question of law or jurisdiction which the Court would be entitled to consider.
Held, the application for leave to appeal is dismissed. This Court is not entitled to substitute its opinion as to whether or, not the facts before the Board justified a finding of public convenience and necessity for the opinion of the Board. In a situation of this kind, the determination of public convenience and necessity is not a question of fact, but is, rather, the formulation of an opinion by the Board, and by the Board only. Furthermore, the conditions set out in the certificate relate exclusively to the manner of the construction of the pipeline and not as to whether the pipeline should be built. The majority of the conditions are thus clearly within the continuing supervi sory jurisdiction of the Board given to it under sections 29, 35 and 39 of the National Energy Board Act. Any of the condi tions not specifically covered by those sections would be cov-
ered by the general power to impose conditions as set out in section 46 of the Act.
Memorial Gardens Association (Canada) Ltd. v. Colwood Cemetery Co. [1958] S.C.R. 353, referred to. Union Gas Co. of Canada Ltd. v. Sydenham Gas and Petroleum Co. Ltd. [1957] S.C.R. 185, referred to.
APPLICATION for leave to appeal. COUNSEL:
P. Y. Atkinson for applicants.
J. B. Ballem, Q.C. for respondent Interprovin- cial Pipe Line (NW) Ltd.
J. M. Robertson, Q.C. for respondents Imperial Oil Limited and Esso Resources Canada Limited.
F. Lamar, Q.C. and A. MacDonald for respondent National Energy Board.
E. R. Sojonky for Attorney General of Canada.
SOLICITORS:
Aird & Berlis, Toronto, for applicants.
Ballem, McDill & Maclnnes, Calgary, for respondent Interprovincial Pipe Line (NW) Ltd.
Fenerty, Robertson, Fraser & Hatch, Cal- gary, for respondents Imperial Oil Limited and Esso Resources Canada Limited.
F. Lamar, Q.C., Ottawa, for respondent Na tional Energy Board.
Deputy Attorney General of Canada for Attorney General of Canada.
The following are the reasons for judgment rendered in English by
HEALD J.: The applicants herein assert as being reasonably arguable an alleged error of law or jurisdiction by the National Energy Board in respect of a decision of the Board released on April 22, 1981, granting a certificate of public conve nience and necessity to the respondent, Interpro- vincial Pipe Line (NW) Ltd. (hereinafter I.P.L.), to permit I.P.L. to construct and operate an oil pipeline extending from Norman Wells, Northwest Territories to Zama, Alberta. They accordingly apply to this Court for leave to appeal pursuant to section 18(1) of the National Energy Board Act, R.S.C. 1970, c. N-6.
The principal thrust of the submissions of the applicants is that at the public hearings conducted by the Board, there was a notable deficiency of evidence particularly with respect to environmen tal and regional socio-economic matters; that the Board recognized and commented on the deficien cies in its reasons for judgment; that evidence curing those deficiencies was fundamental and necessary before the Board could be in a position to make its decision to issue the certificate of public convenience and necessity; and that because of the fundamental, important and crucial nature of this evidence, the applicants should have had the right to test it by way of cross-examination at the public hearings, thereafter reserving unto themselves the right to reply thereto, if they con sidered it necessary, by leading rebuttal evidence. In their written memorandum, the applicants stated:
A tribunal exercising a quasi-judicial jurisdiction must act on the basis of evidence tendered at a hearing. It cannot base its decision upon its assumptions as to the adequacy of evidence to be subsequently filed;
The respondent, I.P.L., supported by the respondent, Imperial Oil Limited, opposed the application for leave to appeal. None of the other respondents supported the application. Counsel pointed out that the public hearings leading to the Board's decision lasted for some twenty-one days, some of those hearings lasting well into the night. The applicants were represented at those hearings and participated fully therein.
On page 168 of its reasons, the Board stated:
The Board has taken into account all matters that appear to it to be relevant in considering the application for a certificate and in reaching its decision in this matter. The Board is satisfied that the pipeline facilities applied for by I.P.L. (NW) are and will be required by the present and future public convenience and necessity.
Thereafter, at pages 173 and 174 the Board concluded:
Having regard to the foregoing considerations, findings, and conclusions, and having taken into account all matters that appear to it to be relevant, the Board, being satisfied that the pipeline facilities applied for by Interprovincial Pipe Line (NW) Ltd. are and will be required by the present and future public convenience and necessity, is prepared to issue to IPL (NW) a Certificate of Public Convenience and Necessity in respect of the pipeline facilities which were the subject of this
application, upon the terms and conditions set out in Appendix I, subject to the approval of the Governor in Council.
In my view, there was ample evidence before the Board upon which it could make the findings of fact and draw the conclusions which it did. This Court is not entitled to substitute its opinion as to whether or not those facts justified a finding of public convenience and necessity for the opinion of the Board'. In a situation of this kind, the determi nation of public convenience and necessity is not a question of fact, but is, rather, the formulation of an opinion by the Board, and by the Board only 2 . Accordingly, no question of law arises in respect of which leave to appeal could be given in so far as the Board's decision to grant the certificate is concerned.
Turning now to the conditions of the certificate as imposed by the Board (Appendix I, pages 1-8 inclusive), a perusal of those conditions satisfies me that they relate exclusively to the details of the manner of the construction of the pipeline and not as to whether the pipeline should be built. The majority of the conditions set out in Appendix I seem to be clearly within the continuing superviso ry jurisdiction of the Board given to it under sections 29, 35 and 39 of the Act to regulate and oversee pipelines in the public interest, having regard, inter alia, to the particular concerns of the applicants, i.e., socio-economic and environmental matters. Any of the conditions not specifically covered by those sections, would, in my view, be covered by the general power to impose conditions as set out in section 46 3 .
It should also be noted that the Board paid particular attention to the concerns expressed by the applicants at the oral hearings in so far as these two areas are concerned. I refer to conditions 5, 7 and 8 in Appendix I. Those conditions require I.P.L. within two months of the issue of the certifi cate, to submit for Board approval, a schedule for
' See: Memorial Gardens Association (Canada) Ltd. v. Col- wood Cemetery Co. [1958] S.C.R. 353 at p. 358, per Abbott J.
z See: Union Gas Company of Canada Limited v. Sydenham Gas and Petroleum Company Limited [1957] S.C.R. 185 at p. 190, per Rand J.
3 46. (1) The Board may issue a certificate subject to such terms and conditions as it considers necessary or desirable in order to give effect to the purposes and provisions of this Act.
the filing of "those environmental and socio-eco nomic studies, programs, practices, plans and procedures it undertook to carry out or develop, including those required by these terms and condi tions ...". There is also a requirement for service of those submissions on the intervenors, who may submit to the Board representations in respect of I.P.L.'s submissions. There is further provision for revised submissions incorporating the intervenor's suggestions with a provision that the Board can either approve or refuse these submissions.
Accordingly, and for the above reasons, I have concluded that all of the matters dealt with by the Board by way of conditions were matters which could properly be dealt with in that way; that they were purely administrative matters not required to be dealt with as a part of the quasi-judicial public hearings; and that, in so dealing with these administrative matters, any duty to act fairly toward the applicants was undoubtedly discharged by the provisions providing for input by the inter- venors with respect to compliance with those con ditions. The applicants have been given significant and substantial participation in the environmental and socio-economic areas of concern to them and as a result, they have been dealt with fairly.
I am thus of the opinion that there is no reason ably arguable question of law or jurisdiction which the Court would be entitled to consider. I would, therefore, dismiss the application for leave to appeal.
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THURLOW C.J.: I agree.
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URIE J.: I agree.
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