Damage or Loss Claims Due to Artificial Flooding

The Shellmouth Dam Compensation Regulation, amendment M.R. 54/2024, under The Water Resources Administration Act (C.C.S.M. c. W70), introduces changes to Manitoba Regulation 14/2011. Registered on June 28, 2024, this amendment revises key definitions and procedures related to compensation for artificial flooding caused by the Shellmouth Dam. The aim of these changes is to improve the clarity and the claims process for affected individuals.
One of the major updates is the removal of outdated terms such as “artificial flooding,” “artificial flooding report,” and “Emergency Measures Organization.” New definitions have been introduced, including “claimant,” which refers to individuals making claims under section 1.5. Additionally, the term “Emergency Measures Organization” is replaced with “Emergency Management Organization” (EMO) to align with the terminology in Manitoba’s Emergency Measures Act. A new concept, “period of artificial flooding,” is introduced to define the timeline during which compensation claims can be filed, with the period beginning and ending based on publicly issued notices. The amendment also adds a definition for “preliminary estimate of damage or loss,” which outlines the documentation required to assess the impact of flooding.
The amendments provide a clear framework for the commencement of a compensation program. The Minister is required to initiate the program if artificial flooding from the Shellmouth Dam is expected to result in property damage or economic loss. A public notice will be issued at the start of the flooding, detailing how claims can be filed, the flood’s start date, and a final date for claim submission once the flooding has ended. However, the Minister is not obligated to start a program for flooding occurring during winter unless the dam’s operation during that period deviates from approved guidelines.
For accepted claims, compensation is calculated based on the proportion of property damage or economic loss attributable to the artificial flooding. The valuation of property damage is based on the lower of repair or replacement costs, except for unique circumstances. The compensation does not include upgrades or enhancements unless required by building or safety codes, and the value of salvaged items is deducted from the final compensation. Economic loss is assessed based on financial documentation such as tax returns, business records, or wage statements. Claimants are also required to take reasonable steps to mitigate their losses, such as resuming work or business operations promptly.
The amendment allows claimants to appoint agents to handle their claims, while also permitting the EMO to collaborate with third parties to carry out necessary functions in the claims process. This flexibility ensures that claims are handled efficiently, with expert assistance where needed.
By introducing clearer definitions, stricter timelines, and more transparent processes, the amendment ensures that those impacted by the flooding are able to file claims efficiently and receive appropriate compensation for their losses.
Manitoba (54/2024) June 28, 2024