By: Shaun Fluker
PDF Version: What Happens When an Insolvent Energy Company Fails to Pay its Rent to a Landowner?
Decision commented on: Petroglobe v Lemke, 2014 ABSRB 401
The law in Alberta provides an energy company with the right of surface access on private lands to drill for oil and gas. This access allows the company, among other things, to construct an access road and clear lands for the well site. In most cases, the company and the landowner enter into a surface lease whereby the company agrees to pay rent in exchange for this access. In other cases, surface access is governed by a Right of Entry Order issued by the Alberta Surface Rights Board (website) whereby the company obtains access in exchange for the payment of rent. This case is about what happens when an insolvent company fails to pay its rent.