A bill introduced in the Saskatchewan Legislature Nov. 7 is designed to help landowners recover overdue surface lease compensation, said energy and resources minister Jim Reiter.
“These amendments will give the Surface Rights Board and the ministry of energy and resources the tools they need to better protect landowners from unpaid leases,” said Reiter.
The government said last spring it planned to re-introduce legislation similar to a 2013-14 proposal. That bill was tabled after a sudden decline in oil prices, but included allowing the board to hear cases from landowners, issue collection orders and suspend right-to-entry, if required.
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The new bill adds an obligation in The Oil and Gas Conservation Act for operators to comply with a compensation order issued by the board and allows the ministry to suspend licences of delinquent operators.
The government said it should motivate companies to stay current with surface lease payments.
The act will prescribe the maximum allowable compensation the board can award for off-lease damages.
Agricultural organizations and landowners have been consulted on the amendments, the government said, and the bill is expected to pass next spring.
Contact karen.briere@producer.com
