| | Preplanning | Research |Preparation
Preplanning
Do you have a plan for energy development?
As a landowner you are responsible for formulating and executing a negotiation strategy to manage in the best interest of your business. Preplanning involves research and preparation - doing your homework and then putting that knowledge into action. In the end, having a plan in place prior to dealing with an oil and gas company will help you negotiate more effectively.
- Considerations in your pre-planning process may include but are not limited to:
- Consider possibe covenants with the company or additions to the offered agreement
- Understand potential risk issues and how they effect your operation
- ie. Change of site size, control and disposal of garbage, control of noise etc
- Link to Understanding Agriculture 101 - Potential Impact Matrix
- Learn about the Energy Industry
- Oil and Gas 101
- Know who’s who (Who to Call If ...)
- Develop a timeline graphic, which depicts ‘typical’ timeline of oil, and gas activity – this will give an idea of landowner participation along the way
- Think long term – Risk Assessment and Mitigation Strategies
- Think about the 'What Ifs ...'
- Objection process – ADR
- Surface Rights Board (SRB) after EUB license when compensation negotiations fail
- See SRB website for timelines etc.
FAO TIP A landowner should assess all possible risks to his/her farming operation prior to energy development and develop a risk mitigation strategy
 Frequently Asked Questions ...
1. How can I learn more about energy development in Alberta?
There are a variety of information sites and publications available for your reference. For a list of some of these please see the Additional Information section of this web page. The Farmers' Advocate Office also has a number of publications that focus on energy development.
2. What key elements should be included in my pre-pan for energy development on my land?
Your pre-planning process should include well site and access road locations, surface lease details (special clauses, conditions and concerns), compensation estimates (land value, potential nuisance, loss of use implications etc) and any special considerations specific to your farming operation (trees, fence lines, wells, sensitive livestock, biosecurity issues etc.) |
Research
Have you done your research?
Learn about ...
The industry:
- Who to Call If ... follow this link for industry contacts and glossary
- Oil and Gas 101
- Surface Lease Compensation Rates
- The purpose of this project is to aid land owners in assessing surface compensation offers made by energy companies and representatives.
Your business:
FAO TIP - Knowing the track record of a company will give you a general outline of their history and aid in your negotiation strategy
 Frequently Asked Questions …
1. What if my land use plans change in the future?
Before agreeing to a well site or to a location for a pipeline, facility, or access road, consider how it may affect your present and future land use. Learn about the company's soil handling, lease preparation, and reclamation methods. The company must consider any negative effect on land use, the environment, and associated visual impacts and the concerns of persons whose rights may be directly or adversely affected. For instance, a location on unproductive land, such as a slough or hillside, may appear to be a good choice. However, the company must consider environmental impacts, the ability to reclaim the site, and the impact on neighbours.
For more information please see the ERCB's EnerFAQs No. 5
2. How can I find out how much my land is worth?
Land value information is available from a variety of sources such as Ropin' the Web and Farm Credit Canada (FCC).
3. Is the surface lease compensation being offered fair?
The energy company's compesation offer considers aspects such as entry fee, land value, adverse effects, loss of use of the land, general disturbance and other relevant factors. Always keep in mind surface compensation is site specific and reflects the unique nature of each project. For more information please see Compensation Elements and Explanations. |
Preparation
How will you prepare for energy development?
Now that you have reviewed your operation and thought about any possible implications from energy development it is time to put your thought process into action.
- Key activites to kick start your planning stage may involve, but are not limited to:
- What is your long-term land use plan? Provide examples of real site plans that utilize the concept of a minimum footprint, Foreign Animal Disease planning,
- Discuss Risk Assessment and provide link to Risk Assessment guides
- Risk Choices – Developing a Risk Management Process for Your Business
- Environmental Farm Plan can help you identify the best location for energy land use while safe guarding the environment
- Water Well Testing / assessment
- Discuss CAPL (Canadian Association of Petroleum Landmen) leases and break down clauses
- Translate but don’t express good vs. bad
FAO TIP - The Environmental Farm Plan process helps you identify and address environmental risks and opportunities in your operation.
 Frequently Asked Questions …
1. Why should I test my well prior to oil and gas activity?
Two measurements that you should take regualry on your welll are water level and water quality. With a documented history of your well, you will be able to substantiate any change in your water well as a result of energy activity.
2. What is involved in an Emergency Response Plan and why is it important to have one on place? |
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