Duty to Report / Transfer of Responsibility: Saskatchewan’s new Environmental Legislation

Saskatchewan’s Environmental Management and Protection Act, 2010 (“EMPA 2010”) came in to force on June 1, 2015 and has a couple of new features of interest to those involved in the development and transfer of real estate.

First, the EMPA 2010 contains a duty to report a “discovery”. That duty attaches to: any person who discharges or allows the discharge of a substance that may cause, or is causing, an adverse effect; any person who owns or occupies lands on which a substance is discovered; any person who, while conducting work on the lands, discovers such a substance; and any police officer or employee of a municipality or government agency who is informed of, or investigates, a discharge or discovery of a substance.

This is a significant expansion of the scope of the duty to reporter from the EMPA’s predecessor legislation.

Second, responsibility for an environmentally impacted site may now be transferred by a person responsible to another person if:

(a) the other person has agreed to accept responsibility for the environmentally impacted site;

(b) a site assessment has been conducted;

(c) a corrective action plan has been prepared;

(d) an estimate of the costs to carry out the corrective action plan has been prepared;

(e) the other person has agreed to undertake the corrective action plan within the time frame contemplated in the corrective action plan; and

(f) the other person has provided the minister with a financial assurance in the amount and in the form acceptable to the minister equal to:

(i) the anticipated costs of reclaiming the site; and

(ii) an additional contingency amount.

As a result, when land transactions are being contemplated between parties in Saskatchewan, the parties should be cognizant of these new changes, and turn their minds to both the duty to report, and to determining whether there ought to be a transfer of responsibility for any environmentally impacted site.

James Early