VEGREVILLE, Alta. – An Alberta man who helped landowners negotiate with oil and gas companies was found guilty of breaking the law governing land agents, but the judge said the act is bad legislation that favours the energy companies.
In his written ruling released March 30, judge Peter Ayotte said he had no choice but to find Ray Strom guilty under the Land Agents Licensing Act for accepting a fee for acting on behalf of landowners during negotiations with three companies between October 2002 and November 2003.
The law stipulates that negotiations must be conducted through a licensed land agent. Strom is not licensed. Alberta has about 1,200 licensed land agents, but almost all work for energy companies, not for farmers.
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Judge Ayotte said the act creates an unbalanced playing field favouring the oil and gas industry.
“I am quite unable to say that the legislator intended it that way,” wrote Ayotte. “There is at least an argument that the act has become bad legislation in need of revision.”
It’s the landowners who suffer because they are unable to hire their own skilled land agents to help negotiate an agreement, he said.
Nothing he heard during the two-day court case in January stops landowners or advocacy groups from trying to influence changes to the law, he said.
“Those are political, not judicial, issues.”
Michele Mondeville, a spokesperson for the provincial employment, immigration and industry department which is in charge of land agents, said the provincial government is looking at the judge’s recommendations.
“A number of rural Albertans do not like certain portions of that legislation and that’s something we take seriously.”
Clifford Stone, a landowner from Westerose, Alta., one of 50 people in the courtroom to support Strom, said the judge had no choice but to find Strom guilty.
“I think it was the right decision, but it was very poor legislation,” said Stone.
Strom said the ruling is a “terrible loss” for landowners in Alberta who now must worry about any help they hire to wade through the documents of a lease agreement.
“They’re pretty restricted and they’re on their own,” said Strom. “Effectively today, ultimately, we’re shut down. Myself, I have to do a lot of soul searching,” said Strom, who has clients part way through negotiations with energy companies.
“We’re forced to leave them in limbo.”
Strom said he refuses to become a licensed land agent. The problem is not the licence, but bad legislation, he said.
“I hope the politicians stand up, and if we do have bad legislation like judge Ayotte pointed out, hopefully they’ll grab the bull by the horns and start to do something.”
Without changes to the legislation, Strom said he will be forced to continue through the courts and appeal the decision.
Warren Brower of the Alberta Surface Rights Federation said a Strom Defence Fund has been established to help fund an appeal if one goes ahead.
Gerald Kress, the deputy registrar of land agents for the province, said it’s up to the politicians to change the law.
“It’s an issue with landowners, and the government’s fully aware of that, but I don’t know what’s going to happen.”
