Amendments were made to make sure that oil and gas companies pay landholders for surface leases and damages
Legislative amendments the Saskatchewan government said were designed to protect landowners if energy companies fail to pay them are scheduled to take effect Jan. 1.
The government announced the implementation date last week.
The changes include amending the Surface Rights Acquisition and Compensation Act so the board of arbitration can hear cases and issue compliance orders, amending the Oil and Gas Conservation Act to require the companies to prove they’ve made payment and changing regulations under the surface rights act to increase the compensation for damages such as lost crop from $1,000 to a maximum of $30,000.
Read Also
Saskatchewan RM declines feedlot application, cites bylaws
Already facing some community pushback, a proposed 2,000-head cattle feedlot south of Swift Current, Sask., has been rejected for a municipal permit, partly over zoning concerns about the minimum distance from a residence.
Helium and lithium were also added to the list of commodities under the legislation.
Energy minister Jim Reiter said the changes were made to ensure landowners are paid what they’re owed by companies that end up in financial trouble.
“If they do (stop paying), the landowner has a right to appeal to the surface rights board now,” he said, identifying that as the most significant change.
The surface rights board and the energy and resources ministry will now ensure orders to pay are enforced.
Reiter said the act hadn’t been significantly amended since it was first passed in 1968.
“A few years ago when the price of oil had plummeted, the ministry started getting more complaints at that time,” he said.
After consultation and the development of a bill that was never introduced in favour of more consultation, the changes were made.
The minister agreed the government supports the oil and gas industry and wants a business-friendly climate, but landowners must be paid.
“These incidents don’t happen that often but when they do, it’s important that they get what they are entitled to,” Reiter said.
Farm organizations such as the Agricultural Producers Association of Saskatchewan had asked for stronger legislation on the issue. Scott Owens, a farmer in northwestern Saskatchewan and then an APAS vice-president, said in 2022 that companies had ghosted landowners. Some caught up on payments but others never tried.
Adding critical minerals such as helium and lithium also reflects the more modern legislation and the fact the government believes there is a bright future in their development, said Reiter.
“We have 23 of the 31 on the national list of critical minerals. We think those would be some of the first ones that are sort of developed. Everybody knows about, you know, uranium and potash. There’s a bright future for some of the others as well,” he said.
