The Surface Rights Acquisition and Compensation Act
Res #: 17-12A
Responses Received: No
Departments: Saskatchewan Ministry of Highways and Infrastructure
WHEREAS in the province of Saskatchewan, mineral (ie. petroleum & natural gas) companies secure surface lease agreements with the owners and occupants of land in order to conduct their business; and
WHEREAS these surface lease agreements generally stipulate compensation payment to the Lessor of an annual renter on the anniversary date of the initial execution of agreement; and
WHEREAS these surface lease agreements generally stipulate a review of a compensation payment after the expiration of three years and each succeeding three-year interval if initiated by the Lessor or Lessee; and
WHEREAS in the province of Alberta, the annual compensation must be reviewed every five years during the life of the surface lease; this review to be initiated by the mineral company by giving notice to the Lessor;
BE IT RESOLVED that SARM lobby the Provincial Government to amend The Surface Rights Acquisition and Compensation Act 1978 whereby it would be a requirement that the mineral (i.e. petroleum and natural gas) company give notification to the Lessor of the pending review of compensation for surface lease agreements every three years; within 30 days following the second anniversary of the date the surface lease agreement commenced; and
BE IT FURTHER RESOLVED that SARM lobby the Provincial Government to undertake a complete review of The Surface Rights Acquisition and Compensation Act 1978 immediately.
Response from Honourable Bill Boyd, Minister of Energy and Resources:
Resolution 17-12A calls for an immediate review of The Surface Rights Acquisition and Compensation Act (the Act) to address a number of issues raised by land owners in recent years. The resolution specifically requests the Act be amended to require all oil and gas surface lessors to initiate a review of annual compensation rates within 30 days following the second anniversary of their lease agreements. This change would mirror a similar provision applying to surface lease agreements in Alberta.
I agree a review of the Act is needed to ensure it continues to meet the needs of both land owners and the oil and gas industry. Details on this review will be provided in the coming months. The proposal to require all surface lessors to initiate compensation reviews will be one of the items considered as part of this review.