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Requests for Review under Section 64 of the Responsible Energy Development Act by Mike Richard – Grizzly Resources Limited Private Surface Agreement (AER Decision)

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Request for Order to Comply – Private Surface Agreement – REDA Section 64 – Request Denied


In this decision, the AER considered Mr. Richard’s requests under section 64 of the Responsible Energy Development Act (“REDA”) for an order directing Grizzly Resources Limited (“Grizzly”) to comply with the Private Surface Agreement dated October 9, 1997 and amended February 7, 2014 (the “PSA”).

For the reasons summarized below, the AER decided not to exercise its discretion to issue an order to comply.

Decision

The AER noted that Mr. Richard’s requests were based on concerns that Grizzly was not complying with its commitments regarding mud debris maintenance, dust control and speed awareness.

Mud Debris Maintenance

The AER found that Grizzly had adequately addressed Mr. Richard’s concerns by cleaning up the excess mud and road debris and that Grizzly was in compliance with the mud debris maintenance condition. Therefore, the AER determined that an order to comply was not necessary.

Dust Control and Speed Awareness

The AER found that it appeared that Grizzly was complying with the dust control and speed awareness terms of the existing PSA and that an order to comply is not necessary or warranted.

The AER noted that clause 4 of Schedule A in the February 7, 2014, Amended Surface Lease Agreement simply stated that “dust control will be undertaken…” and does not specify how the dust control will be carried out.

Grizzly stated that it was undertaking dust control through reinforcing a 20 kilometre per hour speed limit on the segment of Range Road 75 near Mr. Richard’s residence, as well as constructing a new access road north of Mr. Richard’s residence that would reduce future truck traffic in the area.

The AER noted that its jurisdiction under section 64 of REDA allows it to issue an order directing Grizzly to comply with the PSA. The AER cannot import new terms into a PSA.

The AER suggested that Mr. Richard and Grizzly may negotiate new terms or a new private agreement if they so choose.

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