Summary of 2008 Compensation Maps

This data is supplied under license from William D Marriott and Associates Ltd. These amounts are reported to Marriott from industry.

Disclaimer - The data below comes from the energy industry. Companies and land agents submit the data to Marriott and then land agents use the data as reference in negotiating surface compensation with land owners. The data set only contains what was reported by the energy industry. There is no warranty to the accuracy of the data. Users should recognize that data points are only a cross section of all the lease agreements signed in 2008. FAO can not and does not verify the validity of the data. It can only say this is the data reported by the energy industry to an energy industry database.

Summary

Overall 2008 saw a general increase to the rates of compensation being paid landowners for the use of the land for energy activity.

Table 1: Changes in values

Compensation Pillar	Percentage change from 2007
Land Values	6%
Rights for Pipeline	6%
General Disturbances	8%
Adverse Effect	11%
Loss of Use	21%
Annual Rents	5%

Graphic 1: Both real and percentage change in value


The change in the values negotiated is lower than equivalent or proxy prices for the same period. Adverse effect was the lowest in comparison to the price of fuel. Adverse effect has within its calculation a section to deal with extra fuel used to “go around the well”. Lemay ConocoPhillips Canada Resources Corp. v Lemay 2009 ABQB 72 & EOG Resources Canada Inc. v Lemay 2009 ABQB 73: Lemay won a significant change in annual rent using their own farm data. used a formula to assess effect.

[(distance / speed x passes) x equipment cost] x field efficiency

Notwithstanding a series assumptions for the particular equipment used, the power unit will use fuel. Longer distances traveled, longer hours used all equate to a higher effect for excess fuel use.

Table 2: Comparison of lease agreement value changes to other markets for the same period

Compensation Pillar	Percentage Change from 2007	Changes in Other Markets
Land Values	6%	7.8 % average Farm Credit Canada for Alberta
Adverse Effect	11%	Purple Gas 24% Diesel Fuel 38% Statistics Branch, ARD
Loss of Use	21%	Canola 47% Hay 11% Feed Barley 21% Statistics Branch, ARD

Graphic 2: Monthly changes for farm fuel prices for 2007 and 2008


Change over the 2007 Data









Land Values









Value of a Pipeline Right of Way








General Disturbance










Adverse Effect

Loss of Use









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