Oilfield Setback Consents for Adjacent Landowners

Res #: 5-19M
Number: 5
Year: 2019
Midterm: Yes
Expired: No
Responses Received: Yes
Departments: Saskatchewan Ministry of Energy and Resources

WHEREAS pursuant to Section 8(1) of The Oil and Gas Conservation Act, no person shall, without a licence authorizing that activity, construct, alter, operate or suspend the operation of an oilfield facility;

WHEREAS as part of the licencing process of oilfield facilities, there are provincially mandated setbacks for the construction, alteration, and operation of certain oilfield facilities, including those set out in the Facility Licence Requirements – Directive PNG001 and Saskatchewan Upstream Petroleum Industry Storage Standards – Directive S-01 enacted pursuant to The Oil and Gas Conservation Act and The Oil and Gas Conservation Regulations, 2012 of the Province of Saskatchewan;

WHEREAS the aforesaid setbacks do not protect or take into consideration the potential impact and other interests, including future development, of adjacent land owners who may be negatively affected by the installation of such oilfield facilities while not deriving any benefit from the same;

BE IT RESOLVED that SARM lobby the provincial government to include, as part of oilfield facility licensing requirements, an additional licensing or regulatory requirement, namely that any applicant for a license for the construction, alteration or operation of an oilfield facility to which the present regulatory setbacks apply, also be required to obtain the written consent of any adjacent land owners who own, are purchasing or leasing land within the setback area.

Responses From: The Ministry of Energy and Resources

January 24, 2019

As you know, landowners already have the right of consent in this regard. Altering the license-granting structure to allow adjacent owners the same right-to in effect, ‘veto’ a facility license-could create unforeseen economic and other consequences. I think you’ll agree that a delicate balance is required in this regard.

At this time, the Government of Saskatchewan does not plan to amend The Oil and Gas Conservation Regulations, 2012, or related directives, that specify such setback and consent requirements. Landowners, of course, continue to be engaged with any and all oil and gas developments on their land, through the provisions of The Surface Rights Acquisition and Compensation Act.

Bronwyn Erye – Minister of Energy and Resources