Oilsands?

[Horse]

Coppertop I think what you were geting at is the surface rent on crown land is less than on deeded land.

[cowman]

Cowdog: Not sure about on government land but on freehold there definitely is a difference in royalties? The percent you get depends on what you negotiated...and you are not required to negotiate at all...if that is your choice? I would assume the government has the same option?

[cowdog]

cowman the royalties on non-freehold lands are set by legislation not negotiation.
Be careful with freehold royalties because many a freeholder has received far less than the government rate; in some cases they have ended up owing money to the energy company.

[cowman]

cowdog: You are entirely right about freehold leases. I would never consider entering one without a competent lawyer specializing in oil and gas. Often a farmer will be dazzled by the percentage and forget the bottom line! You need to ensure you have protection on the cost side of things!
The really nice thing about CBM is how low the operating costs are? As a freeholder, you will be paying your share of the operating costs! CBM has very low operating costs.