Hundreds of Alberta landowners are being stiffed by resource companies unable to pay leases for well sites – and it could cost taxpayers millions of dollars.
The Alberta Surface Rights Board receives applications each year from landowners who haven’t been paid their surface rights lease cheques – which usually range from $500 to $5,000 each year.
Recommendations are made from the board to the provincial government, to ensure Albertans receive compensation for leasing their land.
According to Gerald Hawranik, chairman of the Alberta Surface Rights Board, prior to 2015 the average was about 360 applications per year, with a recommended government payout of approximately $550,000 annually.
Last year, claims saw a dramatic jump to 764 applications, Hawranik said, totalling $1.7 million.
“In 2016, we are seeing an escalation of that. In only seven months, we’ve opened 781 applications and we have 400 additional applications in the queue to be opened,” Hawranik said. “We are projecting 2,000 applications this year, with maybe up to $4 million recommended to be paid.”
Many landowners aren’t aware of Provision 36 under the Surface Rights Act, which gives them the opportunity to apply for compensation from the Surface Rights Board in the event an oil company refuses or neglects to pay the lease, he added.
“When there is a refusal or an inability to pay, landowners can apply easily on our website or call our office,” Hawranik said.
