Centre Wellington doesn't want province to expropriate Middlebrook well from Nestlé

The Council of Canadians is calling on the province to expropriate a well Nestlé bought this summer north of Guelph and give it to the Township of Centre Wellington.

But the township's mayor says that's not the way to handle the situation.

• Ontario water isn't being priced fairly, says Environment Minister Glen Murray
• Nestlé says Middlebrook well for 'future business' and Aberfoyle backup
• Nestlé's water taking permit in Aberfoyle under review by Ontario's Ministry of Environment

"I would never be in favour of the province expropriating private land and giving it to anybody. I think we have enough government already," Centre Wellington Mayor Kelly Linton told CBC News. "I don't think they should be expropriating land from a company that has been following all the rules. If you don't like the rules, you change the rules, you don't force things."

Nestlé Waters Canada had a conditional offer on a property in Elora, the former Middlebrook Water Company, and was waiting for provincial approval to perform a pump test of the well when a second buyer came forward this summer with an offer to buy the well.

Nestlé then waived its conditions and purchased the well. It was later revealed the second buyer was the Township of Centre Wellington, although Nestlé maintains it was unaware that was the case.

Maude Barlow, the national chairwoman of the Council of Canadians, said this would be the perfect case where the province could use its powers under the Expropriations Act.

"Expropriation is a tool governments have to act in the public interest, and it's appropriate to use it in this situation," Barlow said in a release. "The community needs that well for drinking water. The public good must trump private profit."

Ongoing dialogue between township, Nestlé

There are behind-the-scenes meetings taking place between the township and Nestlé. about the Middlebrook well. 

Jennifer Kerr, corporate affairs director for Nestlé Waters Canada, said in a written statement, "We recognize the needs of communities must come first when it comes to access to water."

We recognize the needs of communities must come first when it comes to access to water.- Jennifer Kerr, corporate affairs director for Nestlé Waters Canada

Linton said a conversation continues with Nestlé and there may be another way to reach an agreement.

"Our primary concern was sustainability of water long-term and that's the reason why we ... tried to purchase the well. So we should go through this in a legal way," Linton said. "I think we have two years now to figure out a solution that works for everyone and we should take it."

Province proposes hold on bottled water

On Monday, the province proposed a two-year hold on the creation or expansion of bottled water plants. This is to give the government time to reconsider the rules around water taking permits.

• Ontario imposes 2-year hold on bottled water business
• Kathleen Wynne agrees to public consultation on Ontario's water-taking permit review

It will apply to every water bottling facility that uses groundwater and is required to have a permit under the Ontario Water Resources Act.

Some of the changes the province is considering is reducing permit renewal applications from every 10 years to every five, mandatory reductions of water taking during drought and more scientific studies.

In an interview with CBC KW's The Morning Edition, Environment Minister Glen Murray said water in the province isn't being priced fairly. Commercial users pay $3.71 for each 1,000,000 litres of water they take.

"I think we have to start looking at how much we commodify water and when it is being sold as a commodity commercially, it has to reflect that choice and that sale," Murray said.

Township 'between a rock and a hard place'

Mark Calzavara, the Council of Canadians regional organizer for Ontario, said he's not surprised the township does not want to challenge Nestlé on the well.

I don't think we should be expropriating land from a company that has been following all the rules. If you don't like the rules, you change the rules.- Township of Centre Wellington Mayor Kelly Linton

"They're between a rock and a hard place really, because they do want that well and they're looking, I think, to … make some sort of a deal with Nestlé going forward," Calzavara said, also referencing meetings between the township and the company. "It's important for them to keep good relationships with Nestlé."

But that's why it's important others speak up for the township, Calzavara said.

"The province is the one that really needs to make the decision and I'm sure that if they expropriated the well, which means Nestlé gets fair market value, they'll get back the money that they paid for it, and [award] that well to Centre Wellington, that solves Centre Wellington's problems," he said. "So whether they're OK with expropriation or not really doesn't matter in the long run."

Damages could be worth millions

Eric Davis, a municipal and planning lawyer at Miller Thomson in Kitchener, said theoretically the province could expropriate the land, but it would be costly.

"As a rough estimate, the damages could be worth potentially millions," Davis said.

The province would not only have to pay Nestlé fair market value for the property, but also disturbance damages as well as business losses.

"It should give the province pause before they decided to go down the expropriation road," he said. "My big concern in this particular case … is what the losses might be."