Background:

• Parties Involved:
  • Plaintiffs: Darren Ward Pentelechuk and NPS Farms Ltd.
  • Defendant: Grand Rapids Pipeline GP Ltd.
• The cases involve an appeal by the plaintiffs,Darren Ward Pentelechuk and NPS Farms Ltd., against a decision and compensation order of the Surface Rights Board under Section 26 of the Surface Rights Act, RSA 2000, c S-24.

Key Legal Issues:

1. Interest Payable: Dispute over whether interest on compensation should be calculated under the Surface Rights Act or the Judgment Interest Act.
2. Standard of Review: The appropriate standard of review for the Surface Rights Board's decision (post-Vavilov decision and pre-legislative changes).

Court Findings:

• 2023 Decision (2023 ABKB 692):
  • The court applied the reasonableness standard of review, consistent with the principles outlined in Vavilov.
  • The appeal was partially successful. The court found that 2.63 acres of land previously deemed undevelopable were, in fact, developable based on new geotechnical evidence.
  • Compensation was adjusted for both the developable and undevelopable portions of the land.
• 2024 Decision (2024 ABKB 283):
  • The court determined that the Judgment Interest Act does not apply since the Surface Rights Act specifically addresses the calculation of interest in such cases.
  • It confirmed that interest should be calculated from the date of the right of entry order at the Bank of Canada rate, as per the Surface Rights Act.

Conclusion:

• The court varied the compensation payable to reflect the development potential of the land and applied interest provisions as specified under the Surface Rights Act, not the Judgment Interest Act.
• The total monetary compensation awarded amounts to $678,800.