News Releases

News Release - Manitoba

August 6, 2021

Office of the Auditor General Releases Recommendations on the Shellmouth Dam Compensation Program

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Province to Implement Recommendations: Schuler

The Manitoba government has accepted all, and implemented many, of the recommendations of the Office of the Auditor General (OAG) report on the 2011, 2012 and 2014 Shellmouth Dam Compensation Programs, Infrastructure Minister Ron Schuler announced today.

“Under The Water Resources Administration Act, the provincial government provided compensation to landowners for damages caused by artificial flooding resulting from the operation of the Shellmouth Dam,” said Schuler. “We recognize the importance of proper and timely administration of the programs that we deliver to Manitobans.”

The minister noted the province is committed to reviewing The Water Resources Administration Act and associated regulations to determine if amendments are required for prompt inspection, administration and payments of claims.  

The province will address findings of the OAG report, including:

•    Program delays in issuing the Artificial Flood Report, in hiring adjusting companies with required expertise, in prompt inspections and the appeal process. The province will review this process in 2021/22, and will consider the damages and impacts caused by artificial flooding, including the type of expertise required, such as agricultural, to assess impacts. Regulatory changes will be undertaken if required.

•    The province will also develop timelines to ensure the compensation program is accelerated, monitored and tracked for performance.  New program guidelines will state what inspectors should be required to document.

The OAG also recommended improved communications regarding program information to potential claimants and appeal information for landowners.

“Manitoba Infrastructure is committed to improving the delivery of the Shellmouth Dam Compensation Program and communicating with our stakeholders to ensure that they are aware of the program scope, the compensation that may be provided, and the documentation that will best support claims,” added Schuler. “Many of the recommendations in this report have already been implemented by the Emergency Measures Organization for other flooding events, like 2019 Fall Red River Floodway Compensation Program.”

The Shellmouth Dam is located at the southern point of the Lake of the Prairies reservoir and is approximately 325 kilometres north-west of Brandon. The compensation program was established for landowners and renters affected by artificial flooding from the operation of the dam and reservoir in the Assiniboine River Valley downstream of the dam. Compensation is made available when artificial flooding causes property damage and economic losses.

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