Policy Heads Up: Disputes Over Energy Exploration on Private Land Grow

During the past ten days I have been made aware of a growing problem for both rural Albertans and the Klein government. The latter got a wake up call with the increase in votes from rural Alberta, that went to the new Alliance Party, and the loss of 200,000 votes from the provincial Tories. In part this is due to the fact that the specific needs of landowners and their problems with energy industry in rural Alberta was falling on deaf ears in Edmonton. There are a whole raft of issues specific to rural Alberta that are also being ignored both by the Klein government and the Alberta Advantage, despite current popular public perception of its great success. The spoils of the Alberta Advantage are not felt by all. Especially in small town Alberta.

The specific issue I am referring to in this epistle, has to do with owners of rural land involved in a fight with oil and gas companies with regards to the Surface Rights Act and Pipeline Act. The nub of the issue surrounds the fact that the oil and gas rights are owned by the province, auctioned off to the energy industry, regardless of what is sitting on top of the oil and gas. This is usually agricultural land.

Property owners cannot refuse entry for exploration or exploitation of the resource under their land, including the infrastructure needs required to extract the resource. Yes the land owners are compensated for the loss of the use of the land directly involved in energy operations and for any adverse effect. The compensation rates were determined in 1983, and have not been reviewed since. Currently a landowner gets a one time entry fee of $500 per acre, plus annual land use fees of $250-$5000 per acre depending on the value of the crop, plus what can be negotiated for adverse affects.

When the wells dry up the land is suppose to be reclaimed and returned to it original state, being just one of the centres of the growing dispute, only aggravated by the growing numbers of well drying up.

With regards to entry fees and rent, the energy companies and landowners are left to negotiate between themselves, with the Surface Rights Board being called in to issue an 'entry order, ' and then arbitrate to determine the compensation for the landowner. In 2004, the board's report shows only 30 of the 265 applications were settled with out the board's help and there are still 94 outstanding.

The compensation structure has not changed in 20 years, despite the farmers and other land owners wanting a bigger piece of the energy prices of 2005.

There are also the growing number of coal bed methane gas wells being drilled, which in itself should mean a new method of approaching surface rights compensation.

An area around Calgary most affected by the latter is the county of Wheatland, in which a group called the Wheatland Surface Rights Action Group has been formed to represent 100 land owning families.

These new coal bed methane wells also mean a much larger and more intricate pipeline system needed, which also adds to the infrastructure needs and pressures on both the energy companies and landowners. There is a growing number of small and large agricultural interests trying to diversify into organic and bio-diverse crops that are affected, as are the land owners holding on to their land for the needs of the growth of Calgary.

With the growth in the pipelines needs, the easements will make it more difficult for the subdividing of the land, and thus reduces the value of the land that could be used for the urban expansion of Calgary. This of course is another issue that the Green Party in Alberta should be looking at, the unsustainable growth of our urban centres.

The other issues surrounding the pipelines is the forcing of pipeline companies to reclaim pipelines no longer is use, faster, as it is simply easier and cheaper to leave the the unused pipeline in the ground.

The landowners want Alberta Environment to end the industry self-regulation of reclamation and water monitoring, as well as have the Alberta Energy and Utilities Board report directly to the Legislature instead of to the Minister or Ministry.

There is the feeling that the Surface Rights Board is slanted to the industry, which brings to mind a policy idea for the Green's, to endorse the idea of having local people appointed to the board through the municipal election process, or from the various stakeholder groups, instead of being appointed by the Minister of the Environment and Premier.

This is an issue that is getting some weighty members of the Klein cabinet behind it, and is being fast tracked for resolution. It is something the Green Party should consider strongly in putting in to our policy platforms, and put some effort to adding this to a, "Green Party Rural Policy Agenda." It make mean the creation of a steering committee to research more, and make public our efforts in this area.