Pipelines and Oil Companies

[parsley]

A lot of land owners have received very generous cheque’s from oil and piplenine companies over many decades. Have their cheque’s benefited your land?

Right now, both are struggling. They cannot survive $10 oil, plus Eastern Govts openly fighting against them.

Would landowners and mineral-rights owners be willing to refund, or subtract 5%, of your agreement -payment from them, as an indication of support?

They’ve been kicked hard.

It would help ensure future development in Canada and help them when they are down and out, bleeding red ink. Any comments?

Of course if you don’t get any annual benefits, it is non applicable to you. Pars.

PS I shall get back to the Jim Karahalios thread. I’ve been really pressed for time, but I have enjoyed reading some of the new comments and also look forward to reading the most recent ones.

[woodland]

Currently have leases that haven’t been paid from the company in three years and getting the province to pay is frustrating. The last pipeline that went across our place took nearly a year to pay us damages from gates being left open, flooding from their trenches, and us doing fencing for them. They agreed that all the charges were justified and it took us threatening to sue them to pay up. The lease payments are not tied to the value of land or oil so haven’t changed much over the years except for the value of the crop they displace and general disturbance (nuisance factor).

We work back and forth with the one good company here without any complaints. Kenny gave them $113 million today too.

I view my lease money to be the same as a landlord renting out a house. It’s not free or easy money. They didn’t pay me anything extra when BSE obliterated our balance sheet.

I’d rather they clean up the abandoned wells on my place than getting the rent cheque’s. I don’t think the companies will be the ones footing the bill for that ........... if you know what I mean.

[makar]

After being treated like a leper for 40 years and laughing at paying more when crude was a 100 hell no.

[makar]

Pipelines unless a major dont pay rent.

[ajl]

Pipelines unless a major dont pay rent.

They do restrict what you can do with the land though even on the ones that don't pay rent. Had a situation where they did not want to cross the line with sludge hauling trucks. 10 page crossing agreements.

[woodland]

Pipelines unless a major dont pay rent.

My FIL has the trans mountain and signed up for the TMX and gets no rent. Don’t know of anyone who gets paid rent unless there’s a riser or valve above ground.

[foragefarmer]

Rather than sending Jim K a $250.00 cheque Parsley, you should have sent it to an oil company of your choice.

You could have been the first to start the donations and set an example, at least the $250.00 wouldn't have been pissed away!

[GDR]

My FIL has the trans mountain and signed up for the TMX and gets no rent. Don’t know of anyone who gets paid rent unless there’s a riser or valve above ground.

I'm surprised they dont pay. We have a TC pipeline crossing one quarter and get $9500/yr, all underground. That is a good deal, but I dont feel the same way about the wells we have. Now have one that is an orphan well too.

I agree they will get no rate concession from me, they made the deals, they need to honour them, cant see them paying more when farm commodities fall.

[chuckChuck]

Oil prices are low but many oil companies will have locked in higher prices or hedged their oil prices so they are not all getting the very low prices that we are at.

Several of the Alberta companies also are integrated and do some value added refining so have been making a profit when other producers have been struggling.

A lot depends on how long the low prices last.

Royalties in western Canada are already some of the lowest in the world. There are numerous incentive programs to encourage drilling and exploration.

Supporting laid off workers and their families directly would be a better investment. Enhancing and extending EI would cover alot of workers. I am not sure what you do for small contractors who have avoided paying EI.

Having landowners offer a small break on lease rates will have very little impact. Lease rates and land costs are only a very small cost of drilling and operating a well or a building a pipeline.

Knowing that Albertan's could have had $14 Billion dollar surplus last fiscal year if they had a tax system like Saskatchewan's, indicates they had a lot of room during the peak of $100 dollar oil to collect a whole lot more revenue from the oil industry.

The lesson here is, that given what Norway, Alaska and other state owned savings plans were able to accomplish with collecting higher royalties and putting some away for a downturn, Alberta looks like it has a missed a golden opportunity.

But Albertans valued low provincial taxes and low royalties over the long term security of a sustainable provincial tax system and building some resilience and diversity into their economy.

Albertans pay the same federal tax rate as every other province. Yes they make a large contribution to federal taxes but only because they have the highest wages in the country and highest GDP per capita of any province. They have been really well off untill the oil prices collapsed in 2014.

That is the nature of every other oil producing region in the world. The smart ones and fiscally prudent ones knew that high oil prices wouldn't last forever.

[shtferbrains]

You should move to Norway Chuck.

Highest tax to GDP ration in the developed world @ +54%

Even Canada was only 32% in 2018.

We are trying to catch up.

You love that system. The government keeps all the money cause they always know the best way to spend it.

Always ends well.