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There are four (4) situations that can extend a Lease past its primary term, as follows:
- The well goes on production;
- The well is capable of production and has been shut-in;
- Continuous Operations are being conducted at the time of expiry of the Lease;
- With some leases Force Majeure.
Held by Production means that the Oil & Gas Company has drilled a Well which is capable of commercial production of oil or gas and the Lease in question is being held past its primary term based on said production (and the eventual payment of Royalties to the Landowner). Also abbreviated as “HBP”.
- You are fortunate to live in a jurisdiction that requires us to lease your mineral and/or Oil and Gas rights;
- In some areas, mineral rights are government-owned (and are not vested with the surface owner);
- The intent of various laws in areas where landowners own their mineral rights is to share natural resource wealth with landowners and to protect correlative rights
- We are obligated to restore the surface of your property to the same condition so far as it may be practicable;
- Our industry is strictly regulated in these matters by the particular governing bodies (different depending on province) and this responsibility extends to include Soil Conservation;
- We would be happy to provide you with some information / pictures of restoration of surface by our clients on drill sites.
- Royalties are distributed approximately 8 to 12 weeks after first production.
- Royalty payments will then be paid monthly based on the proceeds from the well, typically within 45 days after the end of each production month.
- The royalty paid under your lease is also based on your share of the spacing unit.
Any well or facility structure built on your leased lands must be 75 metres (246 ft.). away from any structure or building.
So, you will be unable to build any structure within 75 metres (246 ft.) of the well or facility during the life of the well subject to compliance with all existing Regulations in this regard
Under the Oil and Gas Lease you are granting the Lessee the exclusive right to explore for oil and gas and that would allow them to shoot seismic, drill wells and lay pipeline if hydrocarbons are found and if there is no restrictions in the lease. If any of these activities were to be carried out on your property a representative of either the gas company or land company would contact you and explain the activities. They would also explain the compensation you would receive in each instance.
Yes, there is an indemnification clause contained in the Lease.
This of course cannot protect you from being named in a lawsuit – but, if you are not instrumental in the tort (act), legally, you should not be held responsible by the courts.
All payments should be claimed as Other Income.
- You can’t be sure – there is no way of knowing;
- The environment is hugely protected and vigorously regulated by the government
- Precautions are taken (and regulations are in place to impose this on Oil and Gas Companies);
- The Oil and Gas industry’s record in this regard has been impeccable over the past 25 years.
- Helicopters are typically used to determine whether it is feasible to build a location in a specific area or to scope out an area for pipeline or seismic operations;
- They are very expensive and are only used when necessary;
- In the case of a big 3-D seismic project, helicopters are often the best way to move heavy equipment in and out of the property to minimize the impact to the surface;
- Landowners are always notified in advance.
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The terms “wind energy” or “wind power” describe the process by which the wind is used to generate mechanical power for electricity.
Wind turbines convert the kinetic energy of the wind into mechanical power.
This power can be used for specific tasks (such as grinding grain or pumping water) or a generator can convert this mechanical power into electricity to power homes, businesses and schools.
- Revitalizes Rural Economies
- Fewer subsidies
- Free fuel
- Price stability
- Creates jobs
- Energy independence – Wind turbines diversify our energy portfolio and reduce our dependence foreign fossil fuel.
Installing a wind turbine may increase the property value because turbines produce long-term income.
Most Land-lease agreements have provisions stating that the wind developer will cover any increase in the landowners property tax.
Wind farms cost approximately $1 to 1.5 million per megawatt of installed capacity.
Modern wind turbines range in height from 56 meters (184 feet) to 100 meters (328 feet). The blades are usually around 100 feet long, so at the top its arc, a blade tip could be more that 400 feet in the air.
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It is a way to obtain an image of rock formations below the Earth’s surface. Seismic uses reflective technology similar to that of sonar used in mapping the ocean floor but in this case it maps the various rock formations below the Earth’s surface.
Seismic data allows scientist to identify the rock formations that have the characteristics required to hold oil & gas. By using this technology scientist are able to increase the likelihood of drilling a successful oil & gas well and able to reduce the industry footprint.
A seismic permit is not a binding contract or an oil & gas lease. It is simply written permission to conduct seismic testing on, across and below your property.
No, a seismic permit is simply temporary written permission from the landowner allowing seismic testing across your property and should not be confused with an oil & gas lease or seismic option agreement.
Seismic testing can help to discover and develop those resources that otherwise could not be accessed. This could result in monetary compensation in the form of royalty payments to the mineral owner.
Not every property is affected in the same way. It depends on the test design and other variables but the activities may include:
- surveying and mapping proposed seismic lines, energy points and access routes
- clearing vegetation for safe access along seismic lines and/or to and from energy points
- placing surface markers along seismic lines, at energy points and along access routes
- placement of energy source points
- laying out temporary cables and introducing recordable sound waves
- recording sound wave vibrations as they reflect back to the surface
Conducting seismic and farming operations simultaneously can be challenging but we have found that good communication and planning will minimize any inconvenience. Usually the seismic crew will have one or more liaisons working with the landowners and crews to make concessions for one another’s operations.