The boy managed to get down to the Surface rights group meeting at Trochu a couple of days ago. There are quite a few things happening!
The Surface rights board recently ruled on an increase in adverse affect for one land owner in the area. It brought the price up from $1800 to $3600! They set the rate at $3600 for leases into a field and $3000 at the edge of the field. They also upped loss of use from $325 to $350!
In other words a 3 acre surface lease went from $2775 annual rent to $4650!
The oil company is appealing the decision.
The other thing mentioned of some signifigance was three cases being heard in December on pipelines? The three landowners are arguing for a yearly adverse affect payment. The landowners consultant feels they have a very good shot at getting this!
The Surface rights group has a new legal document out called the "Surface Rights Discussion Agreement"? It basically lets the landowner have a lot more control over how they enter into a surface lease or a pipeline agreement. It involves the landowner being paid for his time negotiating with the landman and protects him from a lot of different things. If the landman refuses to sign this agreement the company will have a very difficult time taking the lease to the surface rights board for a right of entry!
If the company does sign this agreement the landowner now has some power! He can basically run them around forever if he doesn't want the well/pipeline, or use it as a bargaining tool! Some companies have refused to sign this agreement but several have seen the writing on the wall and are agreeing to sign!
But make no mistake...if the company won't sign they will in all probability abandon you and go talk to the neighbor! So don't try this one if you really need the well!
Paul Vasseur is the consultant working on a lot of this stuff and is the guy representing the landowners who are asking for adverse affect on their pipelines. He stressed that farmers need to let their MLAs know they are not happy with how they have been treated in the past by the Surface Rights board and the EUB. He said the Surface Rights board has suddenly become a very busy place with more and more farmers challenging how they are being treated!
The Surface rights board recently ruled on an increase in adverse affect for one land owner in the area. It brought the price up from $1800 to $3600! They set the rate at $3600 for leases into a field and $3000 at the edge of the field. They also upped loss of use from $325 to $350!
In other words a 3 acre surface lease went from $2775 annual rent to $4650!
The oil company is appealing the decision.
The other thing mentioned of some signifigance was three cases being heard in December on pipelines? The three landowners are arguing for a yearly adverse affect payment. The landowners consultant feels they have a very good shot at getting this!
The Surface rights group has a new legal document out called the "Surface Rights Discussion Agreement"? It basically lets the landowner have a lot more control over how they enter into a surface lease or a pipeline agreement. It involves the landowner being paid for his time negotiating with the landman and protects him from a lot of different things. If the landman refuses to sign this agreement the company will have a very difficult time taking the lease to the surface rights board for a right of entry!
If the company does sign this agreement the landowner now has some power! He can basically run them around forever if he doesn't want the well/pipeline, or use it as a bargaining tool! Some companies have refused to sign this agreement but several have seen the writing on the wall and are agreeing to sign!
But make no mistake...if the company won't sign they will in all probability abandon you and go talk to the neighbor! So don't try this one if you really need the well!
Paul Vasseur is the consultant working on a lot of this stuff and is the guy representing the landowners who are asking for adverse affect on their pipelines. He stressed that farmers need to let their MLAs know they are not happy with how they have been treated in the past by the Surface Rights board and the EUB. He said the Surface Rights board has suddenly become a very busy place with more and more farmers challenging how they are being treated!
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