Negotiating with the Patch

[SW1-32-5-4]

East central Alberta usually never gets much attention from the rest of the province unless the issue is new or unusual. It was no surprise when TransCanada Keystone anounced last year their intention of building a 30 inch oil line from Hardisty to Burstall where the big pipes gather to supply the energy hungry east and south with oil and gas. Some of the first pipeline activity in the area dates back to 1958. At that time John Diefendbaker as Prime minister declared these pipes to be in the national interest of Canada. Land owners of the day received no compensation as the project was for the Nation. Fifty years later a new company called TransCanada Keystone has National Energy Board approval to build this oil line just a few yards over from the '58 line. This line however is not in national interest but is for American national security and for share holders interests. There is nothing wrong with all that. To counter the heavy handed tactics of the company land agents that try to acquire easements for next to nothing the landowners organized. Representing most of the effected land owners for this and other NEB lines is the newly formed Alberta Association of Pipeline Landowners. If any Albertan needs assistance or information on dealing with NEB regulated lines and the companies involved give them a call at 403 664 1170.

[wilagro]

Thanks for the phone number. I am going to tangle soon with a major resource company over a pipeline which they contracted to build but backed off building for the time being. The next time that they want access to my property they are going to find things a bit tougher to negotiate. I am really angry with these scheisters who like to manipulate things their way. The survey stakes are all pulled and the surveyors they send around every year will not have access in 2008 until I am satisfied.

[per]

I will give that number a call. I sure recommend when negotiating you always have a land agent on your side of the table and a notetaker(different person). Deal with the hard issues first and then the money.

[farmers_son]

Wilagro: Just a word of caution...I am reading between the lines but if you earlier gave the resource company permission to survey or signed an easement across your property you cannot later deny access to surveyors or anyone else the company sends. You could be made to pay any costs the company incurs, like resending the surveyors back, court costs etc. You do have limited rights before any papers are signed, including the right to say no to the surveyors, but once you give away or sell those rights you cannot change your mind.

[wilagro]

Thanks for the info. In this particular case, it was signed in May of 2006 and right away they slapped the easement on the land BUT have not paid one red cent for anything and have done nothing. The surveyors came back in summer of 2007 and asked for permission to enter and said it was a legal thing that they had to show up in 2007...they didn't do anything except sat in their truck for an hour or so and then left.

CNRL has stopped most natural gas lines as there is a surplus of gas in storage and they want to manipulate (in my judgement), the market by creating a shortage.

[farmers_son]

That is very interesting. I do not know what easement you signed and they are not all the same. However it does seem to me that if sufficient time has passed and you have not been paid that the easement will be null and void. I will refer to the Alberta Right of Way Agreement… see:

http://www.landandminerals.com/right-of-way_agreement.pdf

This easement requires the company to file a plan of survey within one year of the signing date. On or before filing a plan of survey the company must pay you the agreed upon price. If both these requirements are not met the easement is null and void and the company must remove the registration of the easement from your title.

You can check your title for little or no cost to see if the plan of survey has been filed.
I outlined how you can check your land titles for free or for a small charge, about $5 if you need to download a document, you can check your own land titles. See the Beef Production Forum thread entitled 99 Year Leases:

http://www.agri-ville.com/cgi-bin/forums/viewThread.cgi?1196224009

Assuming your easement is similar to the example in the link I provided you should be able to demand payment or have the easement cancelled if that is your wish. I encourage every landowner to not sign easements with energy companies but to insist on a Surface Rights Board Right of Entry Order. The companies do not want you to do this but it is not difficult and in this particular instance the Surface Rights Board would have made sure you would have been paid by now. The easements CNRL and the other companies bring to you the landowner favour the company’s position to the detriment of the landowner. For example the Alberta Right of Way Agreement is what is known as a Plan Number Easement which gives the company the right to your entire parcel of land (usually the quarter section) up to a year or until such time as they file the plan of survey with Land Titles. The term Said Lands refers to the quarter section not the Right of Way. Most landowners never realize that.

Whatever easement you signed you should have been paid by now.

[wilagro]

Thanks again...I will be resolving this whole thing in the new year. These oil companies have had their way for far, far to long. It is about time we landowners smartened up.

[Bez]

Actually, as a one time surveyor in Alberta - there is a law somewhere - that states you cannot kepp a surveyor off your land while in the performance of his duties.

This is because there is often a need to "back shoot" to a pin or other landmark that may be located on your land. Or you may be required to complete some work on that piece of land in order to continue a project.

Pulling up stakes is not a big deal as long as they do not indicate a pipeline or underground cables - there will be pins and spikes that can easily be located with a metal detector and the stakes can likely be replaced within a couple of hours.

Underground lines can be located and marked with only a couple of hours of effort.

Look in the fence rows and along the road edges for a small piece of flagging nailed to the ground. These are the "biggies" that have to be shot into place.

Sometimes, but as little as possible they will be placed in the open field. It is rare but does occur.

It is not usually the surveyor that is the prob anyways. They are usually the good guys.

Funny story - put in a well in Canoe Lake area several years ago. Asked the nice lady to open her trailer door at the campground and move the curtains in the back window - we took a shot right through the trailer so they would not have to move and we would not have to cut about 100 or so metres of line through the brush. We even got a free coffee! Nice folks.

Know your rights.

Spend the money to consult with a lawyer and get everything on paper.

A lamdman is not going to be able to anything more than tell you what the rules are - the official negotiation needs to be completed and signed ONLY after review by a lawyer - and not any lawyer.

Find one who does oil and lease work. Make sure there is no conflict of interest - you want FULL disclosure from that lawyer as well.

Anything less places you at risk no matter what you, your family, your friends, your neighbours and posters on this board will think or say.

Spend the money up front and do not cheap out. You WILL live with the final decision forever.

Bez

[wilagro]

Bez: Thanks...will see a lawyer soon.