Judgments

Decision Information

Decision Content

A-408-89
Cominco Ltd. (Appellant)
v.
Northwest Territories Water Board (Respondent)
INDEXED AS: COMINCO. LTD. v. NORTHWEST TERRITORIES WATER BOARD (C.A.)
Court of Appeal, Pratte, Hugessen and Desjardins JJ.A.—Yellowknife, March 12; Ottawa, April 22,
1991.
Environment — Appeal from dismissal of application to amend conditions of licence, issued under Northern Inland Waters Act, allowing use of water in operation of zinc and lead mine — Appellant arguing Board lacking jurisdiction either to impose limits on quantity or types of waste in effluent where no standards prescribed by regulation or to impose stricter restrictions than in Regulations — Arguments irrelevant as not directed against decision attacked — Failure to prescribe standards under s. 29(e) not limiting Board's power to impose conditions — Restrictions in regulations of general application may be inadequate to preserve water resources in particular areas — S. 12(3) merely requiring licence conditions not contravene restrictions in regulations.
Construction of statutes — Northern Inland Waters Act, s. 12(1) and (3) — S. 12(1) empowering Board to impose licence conditions based on water quality standards prescribed by regulation — Literal interpretation leading to absurd result of preventing Board from attaining objects if regulations pre scribing water quality standards not made — Interpretation consistent with Board's objects leaving power to impose condi tions intact where standards not prescribed — Prohibiting Board from imposing stricter restrictions than those in Regu lations would result in Board refusing licence to prevent pollution — S. 12(3), requiring licence conditions not "vary" from Regulations, meaning may not contravene.
This was an appeal from the Northwest Territories Water Board's dismissal of an application to increase the percentages of zinc and lead in effluent from the appellant's mine permitted under licence conditions imposed under the Northern Inland Waters Act. The appellant argued that the Board lacked juris diction even to impose such conditions. Subsection 12(1) of the Act permits the Board to impose licence conditions based on water quality standards prescribed by regulation. The appellant argued that licence conditions relating to the quantity and types of waste imposed under subsection 12(1) must be based on prescribed water quality standards and, since no regulations prescribing such standards had been enacted, the Board had
exceeded its jurisdiction. Under subsection 12(3), the condi tions attached to a licence relating to the quantity and types of waste that may be deposited must not "vary from" the restric tions relating to the deposit of deleterious substances prescribed by the Metal Mining Liquid Effluent Regulations (made for the purposes of subsection 36(4) of the Fisheries Act). The maximum concentration of lead and zinc permitted to be deposited thereunder exceeded both the concentration of those metals that were authorized by the appellant's licence and the requested amendment thereto. The appellant argued that the Board should have raised the maximum concentration of metals to that authorized by the Regulations.
Held, the appeal should be dismissed.
The appellant's arguments were not relevant to the appeal. They were not directed against the decision under attack, but tended to show the invalidity of the conditions in the appellant's licence. Furthermore, they had not been not submitted to the Board: the application had assumed that the Board had jurisdiction.
Even if appellant's submissions were considered to be rele vant, they should be rejected. The only limitation imposed on the general power under subsection 12(1) to impose conditions that the Board considered appropriate is that, if water quality standards are prescribed, the conditions imposed must be based on those standards. If, as in this case, no standards have been prescribed, the power of the Board to impose appropriate conditions remains intact. Otherwise, a failure to make regula tions prescribing water quality standards would lead to the absurd result of preventing the Board from attaining its objects.
As "to vary from" means "to differ from", a literal interpre tation of subsection 12(3) would require that there be no difference between the conditions of a licence and the restric tions found in the regulations under the Fisheries Act. Such an interpretation is difficult to reconcile with the objects of the Board. The regulations are rules of general application. Condi tions of a licence apply to a particular undertaking in a particular location and are attached to the grant of a privilege. The restrictions found in regulations of general application may be insufficient to preserve water resources in the areas con cerned. It would be incongruous to prohibit the Board from imposing stricter restrictions than those provided for in the regulations. To prevent water pollution, the Board would be bound to refuse to grant a licence when the same result could be achieved by imposing appropriate conditions. A literal inter pretation would lead to absurd results. Subsection 12(3) merely requires that the conditions of the licence should not contravene the restrictions found in the regulations.
STATUTES AND REGULATIONS JUDICIALLY CONSIDERED
Canada Water Act, R.S.C., 1985, c. C-11.
Fisheries Act, R.S.C., 1985, c. F-14, s. 36.
Metal Mining Liquid Effluent Regulations, C.R.C., c.
819.
Northern Inland Waters Act, R.S.C., 1985, c. N-25, ss. 10, 11, 12, 24 (as am. by S.C. 1990, c. 8, s. 58), 29(e).
CASES JUDICIALLY CONSIDERED
APPLIED:
CRTC v. CTV Television Network Ltd. et al., [1982] 1 S.C.R. 530; (1982), 134 D.L.R. (3d) 193; 41 N.R. 271.
COUNSEL:
Marvin R. V. Storrow, Q.C. and Joanne R. Lysyk for appellant.
Richard J. Peach for respondent Northwest Territories Water Board.
Paul F. Partridge for Attorney General of Canada.
SOLICITORS:
Blake, Cassels, Graydon, Vancouver, for appellant.
Cooper, Hardy & Regel, Yellowknife, N.W.T., for respondent Northwest Territories Water Board.
Deputy Attorney General of Canada for Attorney General of Canada.
The following are the reasons for judgment rendered in English by
PRATTE J.A.: This is an appeal, pursuant to section 24 of the Northern Inland Waters Act ("the Act") [R.S.C., 1985, c. N-25 (as am. by S.C. 1990, c. 8, s. 58)], from a decision of the respondent, the Northwest Territories Water Board.
The appellant operates a zinc and lead mine, known as the Polaris Mine, on Little Cornwallis Island, in the Northwest Territories. Since 1981, it holds a licence issued under section 11 of the Act authorizing it to use a certain quantity of water in the operation of its undertaking. That licence is subject to the conditions that the wastes produced by the milling process of the mine must be dis charged into a body of water known as Garrow Lake and, also, that the wastes discharged from Garrow Lake into the Arctic Ocean must not contain more than certain specified percentages of lead and zinc.
In June 1988, the appellant applied to the Board for an order amending the conditions of its licence so as to increase the percentages of zinc and lead that could be contained in the effluent from Garrow Lake. The Board held a hearing in connec tion with that application and, ultimately, dis missed it. The appeal is directed against that decision.
The main contention of the appellant is that the Board erred in law in deciding as it did because the conditions of the licence limiting the concen tration of zinc and lead in the effluent from Garrow Lake was illegal and exceeded the juris diction of the Board. In order to understand that contention, it is necessary to have in mind the wording of section 12 of the Act:
12. (1) Subject to subsections (2) and (3), a board may attach to any licence issued by it any conditions that it consid ers appropriate, including conditions relating to the manner of use of waters authorized to be used under the licence and conditions based on water quality standards prescribed pursu ant to paragraph 29(e) relating to the quantity and types of waste that may be deposited in any waters by the licensee and the conditions under which any such waste may be so deposited.
(2) Where a board issues a licence in respect of any waters that form part of a water quality management area designated pursuant to the Canada Water Act, it may not include in the licence conditions relating to the quantity and types of waste that may be deposited in any such waters or under which any such waste may be so deposited, that vary from any restrictions relating to the deposit of waste prescribed with respect to those waters by the Governor in Council pursuant to the Canada Water Act.
(3) Where a board issues a licence in respect of any waters, other than those referred to in subsection (2), to which any regulations made by the Governor in Council for the purposes of subsection 36(4) of the Fisheries Act are applicable, it may not include in the licence conditions relating to the quantity and types of waste that may be deposited in any such waters or under which any such waste may be so deposited, that vary from any restrictions relating to the deposit of deleterious substances prescribed with respect to those waters by those regulations.
(4) Where a licence has been issued in relation to waters with respect to which no restrictions relating to the deposit of waste or deleterious substances and described in subsection (2) or (3) are applicable, and the licence contains conditions relating to the quantity and types of waste that may be deposited in any such waters or under which any such waste may be so deposit ed, the subsequent prescription of any such restrictions is deemed, on that prescription, to amend the conditions to con form to those restrictions.
The appellant puts forward two arguments on the basis of that section. First, it says that if subsection 12(1) empowers the Board to attach to
a licence "conditions ... relating to the quantity and types of waste that may be deposited in any waters by the licensee" those conditions must necessarily be based on water quality standards prescribed pursuant to paragraph 29(e);' as it is common ground that no such standards were ever prescribed, it follows, according to the appellant, that the Board had no jurisdiction to impose limits on the quantity or types of waste that can be contained in the waters flowing from Garrow Lake.
The appellant's second argument is based on subsection 12(3). Under that provision, when a regulation made for the purposes of subsection 36(4) of the Fisheries Act [R.S.C., 1985, c. F-14] 2 applies to waters in respect of which the Board grants a licence, the conditions of the licence relating to the quantity and type of waste that may be deposited in those waters must not differ from the restrictions relating to the deposit of deleteri ous substances prescribed by that regulation. It is common ground that the Metal Mining Liquid
S. 29(e) reads:
29. The Governor in Council may make regulations
(e) prescribing water quality standards for water manage ment areas that are not, or are not included in whole or in part within, a water quality management area designated pursuant to the Canada Water Act;
2 Ss. 36(3) and (4) of the Fisheries Act read in part as
follows:
36....
(3) Subject to subsection (4), no person shall deposit or permit the deposit of a deleterious substance of any type in water frequented by fish ...
(4) No person contravenes subsection (3) by depositing or permitting the deposit in any water or place of
(b) a deleterious substance of a class, in a quantity or concentration and under conditions authorized by or pur suant to regulations ... made by the Governor in Council under subsection (5).
It is interesting to observe that, contrary to what s. 12(3) of the Northern Inland Waters Act seems to assume, regulations made for the purposes of s. 36(4) of the Fisheries Act do not actually impose restrictions on the right to deposit deleterious substances in waters; they, on the contrary, authorize the deposit of specified quantities of certain wastes in certain waters.
Effluent Regulations' were made for the purposes of subsection 36(4) of the Fisheries Act and apply to the waters here in question; it is also common ground that the maximum concentration of lead and zinc that may be deposited in those waters under those Regulations far exceeds not only the concentration of those metals that are authorized by the appellant's licence but also the concentra tion that the licence would have authorized if it had been amended in accordance with the appel lant's request. It follows, says the appellant, that the Board should have amended its licence by raising the maximum concentration of lead and zinc that it authorized to the levels authorized by the Metal Mining Liquid Effluent Regulations.
It should first be observed that these two argu ments were never submitted to the Board. On the contrary, the appellant's application to the Board assumed that the Board had jurisdiction to include in the appellant's licence conditions relating to the quantity of lead and zinc that the appellant was authorized to deposit in the waters in question even though these conditions were more severe than those prescribed by the Metal Mining Liquid Effluent Regulations and even though no water quality standards had been prescribed pursuant to paragraph 29(e). In effect, those two arguments are not really directed against the decision under attack but, rather, tend to show the invalidity of the conditions contained in the appellant's licence. For that reason alone, I consider that those argu ments are not relevant to this appeal. How could the Board be blamed for not having considered a question that was never submitted to it and for having rejected a motion which, according to the appellant's present position, it had no power to grant?
I must add that if, contrary to what I think, these two arguments were really relevant to the validity of the decision under attack, I would reject them.
Under subsection 12(1) of the Act, "a board may attach to any licence issued by it any condi tions that it considers appropriate". In my opinion, the only limitation that is imposed on that general power by the words used in the rest of the subsec tion is that, if and when water quality standards
3 C.R.C., c. 819.
are prescribed pursuant to paragraph 29(e), the conditions that the Board imposes in relation to the types and quantity of waste that may be deposited in water must be based on those stand ards. If, as in this case, no such standards have been prescribed, the power of the Board to impose appropriate conditions remains intact. To adopt another interpretation of subsection 12(1) would lead to the absurd result that the failure of the Governor in Council to make regulations prescrib ing water quality standards would prevent the Yukon Territory Water Board and the Northwest Territories Water Board from attaining their objects as described in section 10 of the Act. 4
The appellant's second argument is based on subsection 12(3) that prohibits the Board from imposing any conditions relating to the quantity and types of waste that may be deposited in any waters that vary from any restrictions relating to the deposit of deleterious substances prescribed in regulations made for the purposes of subsection 36(4) of the Fisheries Act. As the expression "to vary from" means "to differ from", that section, if interpreted literally, would clearly require that there be no difference between the conditions of a licence and the restrictions found in the regula tions made under the Fisheries Act. But it would be difficult to reconcile that interpretation with the objects of the Board described in section 10. The regulations made under the Fisheries Act, as well as those made under the Canada Water Act [R.S.C., 1985, c. C-11] (to which subsection 12(2) makes reference), are rules of general application that set the maximum quantity of waste or deleterious substances that may, in any circum stances, be deposited in any waters. Conditions of a licence, on the other hand, apply to a particular undertaking that operates in a particular location; they are, moreover, conditions to the grant of a privilege. The restrictions found in the regulations of general application may, in particular cases, be insufficient to preserve the water resources in the areas concerned. It would be incongruous that, in
4 S. 10 reads thus:
10. The objects of the boards are to provide for the conservation, development and utilization of the water resources of the Yukon Territory and the Northwest Territo ries in a manner that will provide the optimum benefit therefrom for all Canadians and for the residents of the Yukon Territory and the Northwest Territories in particular.
such cases, the Board be prohibited from imposing stricter restrictions than those provided for in the regulations. This would mean that, in those cases, the Board would, in effect, in order to prevent water pollution, be bound to refuse to grant a licence even though the pollution could be prevent ed by simply imposing appropriate conditions on the licensee. The literal interpretation proposed by the appellant leads, once again, to absurd results. For that reason, I am of opinion that subsection 12(3) should be interpreted as merely requiring that the conditions of the licence should not con travene the restrictions found in the regulations adopted for the purposes of subsection 36(4) of the Fisheries Act.'
Another ground of appeal raised by the appel lant was that the hearing held by the Board "was conducted ... in the most informal way, without testimony under oath, and in a manner that could only be described as `non-judicious'." Suffice it to say, with respect to that contention, that a careful reading of the transcript reveals that the Chair man of the Board conducted the proceedings in a manner which, though informal, was intelligent and fair for all parties concerned.
The last point raised by the appellant is that the Board denied it a fair hearing, first, by failing to inform it of the case it had to meet and, second, by receiving recommendations from its Technical Advisory Committee without giving the' appellant a chance to answer or comment on those recommendations.
5 Counsel for the respondent argued, in support of that conclusion, that the objects and purposes of the Northern Inland Waters Act (the conservation, development and utiliza tion of water resources in a manner that will provide the optimum benefit for all Canadians), being more important than those of the Fisheries Act (the conservation of fish), it logically followed that a board under the Northern Inland Waters Act should have the discretion to attach to a licence conditions more severe than the restrictions imposed by regulations adopt ed under the Fisheries Act. This argument loses all its force, in my view, once it is realized that the terms of s. 12(3) are identical to those of s. 12(2) except that the latter subsection refers to regulations made under the Canada Water Act the purposes of which are certainly as broad and important as those of the Northern Inland Waters Act.
I do not see any merit in these submissions. The appellant was seeking an amendment to the condi tions of its licence relating to the quantity of water deposits. It knew what were the Board's objects and authority and, as stated by Laskin C.J. in CRTC v. CTV Television Network Ltd. et al., 6 "An applicant seeking a statutory privilege has no right to know in advance of a probable decision unless the statute commands it or the administer ing tribunal wishes to disclose it." Moreover, the Board denied the appellant's application because it was of the view that the appellant could "maintain compliance within the existing licence conditions by the construction of a control structure at the Garrow Lake outlet"; a reading of the transcript shows that the possibility of building such a struc ture was openly discussed at the hearing. It, there fore, cannot be said that the applicant did not know the case it had to meet.
As to the recommendations and advice that the Board received from its technical advisors, the appellant's contention is that it should have had an opportunity to comment on them because the Chairman of the Board, at the hearing, gave the assurance that all participants would have that opportunity. The answer to that submission is simply that no such assurance was given. Indeed, when the transcript of the hearing is read in its entirety, it appears clearly that the undertaking given by the Chairman of the Board was only that the Board would, before forwarding to the Minis ter a recommendation to amend the appellant's licence, give all parties concerned an opportunity to comment on the recommendations of the Tech nical Advisory Committee. As the Board ultimate ly decided not to recommend that the appellant's licence be amended, they never had the occasion to carry out the Chairman's undertaking.
I would dismiss the appeal. HUGESSEN J.A.: I agree. DESJARDINS J.A.: I agree. 6 [1982] 1 S.C.R. 530, at p. 546.
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