What is ADR?
The options exist along a continuum. At one end are means for resolution that allow parties control over the process used and the final agreements. They range from agreements made with no outside involvement (negotiations) through facilitation and mediation. At the other end are established formal procedures that result in a decision being made for the parties by arbitration and an administrative tribunal - e.g., ERCB Board hearing or the court system.
ADR stands for "appropriate dispute resolution." It means that a dispute can be resolved through a number of options and the parties are enabled to choose which one of them to use.
EnerFAQs 11 All About Appropriate Dispute Resolution (ADR)
Why is the ERCB involved in dispute resolution?
The Energy Resources Conservation Board (ERCB) has a regulatory role regarding oil and gas wells, pipelines, production facilities, electrical substations, and transmission lines. It also has a role in resolving issues and disputes between affected parties, such as between energy companies and landowners and their neighbours. To expand the number of dispute resolution options available, the ERCB has undertaken the Appropriate Dispute Resolution (ADR) initiative. Major stakeholders have been involved with the ERCB in the development of this initiative.
What is the goal?
The goal of dispute resolution is to help people explore and understand each other's interests and develop acceptable solutions together. It means listening closely to the various sides and coming up with solutions people might not think of on their own.
How does ADR work?
In ADR a dispute or conflict can be resolved in a number of ways. People in conflict are able to choose which option to use. Some options allow people control over the process used to find a solution and make the final agreements. These options range from those where agreements are made with no outside involvement (e.g., negotiations) onto facilitation and then to mediation. Other options include arbitration or engaging an administrative tribunal (e.g., ERCB Board hearing or the court system). These latter ways of resolving disputes involve established, formal procedures that result in a decision being made for the people in conflict.
Why does the ERCB use the word "appropriate"?
The ERCB has chosen to use the word "appropriate" to reflect the wide number of dispute resolution options now available and to reinforce the important facilitation role ERCB staff play in dispute resolution. "Appropriate" reflects the nature of a process that provides the opportunity to develop local solutions to local issues, and to choose the right option for the right situation.
What are the main ADR options?
The ERCB's ADR options include:
Informal discussion and problem-solving
Parties are able to informally discuss and resolve the issue between themselves. Occasionally, the phrase "kitchen table" is used to describe the informal nature of these talks.
Direct negotiation
: Formal and facilitated negotiations take place directly between the affected parties.
Facilitation
: ERCB staff may facilitate the communication and discussions between the affected parties.
Mediation
: A professional, neutral third party assists the affected parties in reaching a satisfactory agreement.
Arbitration
: A neutral adjudicator is empowered by everyone involved in the dispute to listen to all sides and to either recommend nonbinding terms of settlement or impose a binding decision.
Administrative tribunal
: (e.g., ERCB Board hearing or the court system): A formal adjudication process takes place in which evidence is presented and a binding decision is rendered.
What's behind the ADR initiative?
Dispute resolution is an extension of the ERCB's expectations for public consultation that started in the mid-1980s. Albertans quite legitimately want a say on issues that affect them, and this is adding up to a much greater investment of time, effort, and emotional energy for everyone involved in upstream petroleum applications.
What are the benefits?
The major benefits expected from the successful implementation of the ERCB ADR initiative are:
- improved landowner-industry relations in the interest of all Albertans
- better use of the ERCB's and stakeholders' time and other resources
- more face-to-face discussions between affected landowners and operators leading to local solutions to local problems
- enhanced efficiencies in the effort to meet the needs of stakeholders in the electricity and upstream oil and gas sectors
- increased resolution of industry-to-industry disputes without an ERCB hearing
- a more effective and efficient ERCB hearing, if one is necessary
What principles are addressed in the ADR program?
- Participation in ADR options is voluntary.
- Participation does not preclude access to an ERCB hearing or the rights of the parties.
- The use of ADR should not delay the ERCB's decision on the need for or the scheduling of a hearing.
- Discussions within a Preliminary ADR Meeting or during subsequent mediation should be confidential and without prejudice, unless the parties agree otherwise.
- For the Preliminary ADR Meeting, industry participants should be responsible for the costs, including the direct third-party costs of landowners and the public.
- Costs and payment for future ADR options should be discussed and agreed to at the Preliminary ADR Meeting.
