CADOGAN, Alta. (Staff) – The dispute between an oil company and an eastern Alberta ranch has turned into a “cat and mouse” game, says an oil company representative.
Victor Almond said the decision of who pays in a damage dispute is up to an arbitrator.
“Right now we’re saying ‘no, we’re not going to pay’, ” said Almond, construction, reclamation and environment supervisor with Inverness Oil and Gas, the company fighting with the Todd Ranch of Hughenden.
Owners of the Todd Ranch say Inverness has breached its contract by not paying its annual lease fee before it was given a reclamation certificate by the province’s environment department for an oil well site on ranch land.
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Almond said his company feels the land has been returned to its original value and so it doesn’t think the ranch should get a full lease payment.
He blamed politics for stopping the department of environment from issuing a reclamation certificate.
Changes wanted
Almond said the problem lies in the legislation. Many oil companies want the legislation changed to allow the Surface Rights Board to reduce the rent oil companies must pay to farmers while awaiting a reclamation certificate.
“Right now it all falls in favor of the farmer,” said Almond.
While Inverness refused to pay the lease fees, Rigel Oil and Gas Ltd., the company that recently took over Inverness, may take a different position, he said.
