Surface Lease Agreement Saskatchewan

This framework can lead to injustices, as surface leases that allow producers to build onshore drilling and drilling sites can be imposed by the government without the agreement or agreement of the landowner. Manufacturers may become insolvent and not make the necessary contractual payments under these surface lease agreements. As a result, landowners make little use of missed rents, in addition to going to civil court to get relief in the form of a judgment – a process that can be time-taking and expensive. If an oil and gas producer collapses or goes bankrupt and there are no assets that can be used for the enforcement of the award, there is little chance that a landowner will successfully receive financial compensation for rents stranded under a surface lease (even if they manage to obtain a judgment in their favor). At that time, a landowner can negotiate compensation, location, rent maintenance, lease rehabilitation after drilling or in the event of a spill, abandonment and restoration practices and much more. If the landowner does not agree to the terms of the lease, the company may still have access to its underground minerals. In Saskatchewan, the Surface Rights Acquisition and Compensation Act was passed to create a legal framework for producers to acquire surface land use rights for oil and gas production, while providing landowners with compensation to producers for the use of their land. . . .