Surface Lease Compensation for Leaseholder

Res #: 17-04A
Number: 17
Year: 2004
Midterm: No
Expired: Yes
Responses Received: No

Resolution No. 17-04A

WHEREAS, in Saskatchewan leaseholders put up with all of the inconvenience of surface leases and receive minimal compensation as credit to their lease;

THEREFORE BE IT RESOLVED, that SARM lobby the Provincial Government for 50 percent share of surface lease payments for lease holders.

Response from Honourable Mark Wartman, Minister of Agriculture, Food, and Rural Revitalization:

The issue of compensation to leaseholders who experience oil and gas development on land presently leased from Saskatchewan is frequently debated by leaseholders, oil and gas companies, and corresponding interest groups. At this time, it is important to note that the province is the landowner in these situations and that compensation currently paid is through an equitable sharing of the revenue generated by oil and gas developments on Crown land. At the present time, changes are not being contemplated. The present provincial land regulations provide for compensation at $200 per well in the year of development along with an annual rental reduction of $100 per well to a maximum of 30 per cent of the annual agricultural rent, in the second and subsequent years. There are also provisions for actual crop damage or loss on the surface lease and actual damages outside the surface lease.