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Natural resources

Alberta Land and Property Rights Tribunal Amends Decision on Surface Rights Act

Strategic Insights

— 2 min read

The Alberta Land and Property Rights Tribunal has amended its decision on a surface rights case, adding Endrum Energy Corp. as an Operator under the Surface Rights Act. The original decision, issued on June 3, 2022, found that Carol Ann Kashuba, the owner of the land, was entitled to compensation from Trident Exploration (Alberta) Corp. and Canadian Natural Resources Limited. However, following a court decision in Holowath v Trident Exploration (Alberta) Corp, the Tribunal reconsidered its decision and found that when a vesting order is read in conjunction with its related purchase and sale agreement, the purchaser of the assets remains liable for outstanding compensation under the surface leases. This decision has significant implications for the compensation structure in Alberta's surface rights regime.

Key Takeaways:

  • The Alberta Land and Property Rights Tribunal has amended its decision on a surface rights case, adding Endrum Energy Corp. as an Operator under the Surface Rights Act.
  • The original decision, issued on June 3, 2022, found that Carol Ann Kashuba, the owner of the land, was entitled to compensation from Trident Exploration (Alberta) Corp. and Canadian Natural Resources Limited.
  • The Tribunal concluded that Westdrum/Endrum is an Operator within the meaning of s. 36 of the Act for the period set out in the Original Decision.
  • The Panel adopts the reasoning in Holowath v Trident Exploration (Alberta) Corp and finds that Endrum is liable for outstanding compensation under the surface leases.
  • The decision has significant implications for the compensation structure in Alberta's surface rights regime.
  • The Order shall issue as set out above, amending the Original Decision and Direction to Pay to add Endrum as an Operator.
  • Canadian Natural Resources Limited had applied for reconsideration under section 29 of the Act, and the Tribunal's decision hears the Application.
  • This decision involves the Surface Rights Act, RSA 2000, c S-24, ss. 29 and 36, and the Surface Rights Rules (the "Rules"), Rule 37.

Statistics:

  • The Surface Rights Act is applicable in the Province of Alberta.
  • The Provincial Government has established the Surface Rights Rules, which include Rule 37.
  • The Alberta Court of King's Bench decision in ABKB Action No. 2301-08556 granted CNRL's application for judicial review and remitted LPRT Decision No. LPRT2023/SR00122 back to the LPRT for reconsideration.
  • The Tribunal had previously released its reconsideration of its prior decision, (Holowath v Trident Exploration (Alberta) Corp, 2024 ABLPRT 900301).
  • The decision has been issued on November 26, 2024.

Sources:

  • LPRT Decision No. LPRT2022/SR0773 dated June 3, 2022
  • LPRT Order No. LPRT900944/2023 dated March 1, 2023
  • Holowath v Trident Exploration (Alberta) Corp, 2024 ABLPRT 900301
  • Canadian Natural Resources Limited v. Kashuba, 2024 ABLPRT 414

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