The province has announced amendments to The Surface Rights Acquisition and Compensation Act which a news release from the government says will help landowners recover any overdue surface lease compensation owed to them by oil and gas operators. The act will be amended to allow the Surface Rights Board of Arbitration to hear cases and issue compliance orders for payment. It also gives the Ministry of Energy and Resources the ability to suspend tthe licenses of operators who don’t comply.

This began back in 2013-14. Energy and Resources Minister Jim Reiter explains that legislation was introduced at that time, but the bill was tabled due to the sudden decline in oil prices. It’s expected the Bill will pass next spring.

The amendments featured in the bill will:
– Amend the act to allow the Surface Rights Board of Arbitration (the Board) to hear cases and issue compliance orders to oil and gas companies for payment owed to landowners.
– Add an obligation in The Oil and Gas Conservation Act for operators to comply with an order for compensation issued by the board.
– Give the Ministry of Energy and Resources the ability to suspend the licenses of delinquent operators if the board order is not complied with.
– Motivate licensees to keep current with their surface lease payments.
– Establish power in the act to prescribe the maximum allowable compensation that can be awarded by the board for off-lease damages.
– Introduce various housekeeping amendments to update and modernize the act.