How KMSC Can Assist if Your Surface Lease was Transferred to the Orphan Well Association

If you stopped receiving surface lease rent because your operator became insolvent and the well site was transferred to the Orphan Well Association, you still have a path to payment. Section 36 of Alberta’s Surface Rights Act lets eligible landowners recover unpaid annual compensation through the Land and Property Rights Tribunal, with payment directed by the provincial government when operators do not pay. The Orphan Well Association does not pay surface rents. This explainer outlines what changed with Long Run Exploration, how section 36 works, and how KMSC Law LLP can help you navigate the recovery process.

What Changed With Long Run Exploration and the Surge in Orphan Wells

In April 2026, the Alberta Energy Regulator confirmed a historic transfer of assets from Long Run Exploration Ltd. to the Orphan Well Association, adding more than 4,000 wells and related facilities to the orphan inventory. That follows court-supervised receivership steps that began in 2025. During a receivership, the court’s stay can temporarily prevent landowners from proceeding with section 36 applications. Once that stay is lifted or varied, and especially where the AER has designated or transferred sites to the Orphan Well Association, landowners can turn to the section 36 process to recover unpaid and ongoing annual rent while they wait for decommissioning and reclamation. KMSC Law LLP has been closely monitoring the Long Run proceedings and can advise you on the timing and strategy for your claim.

What Section 36 of the Surface Rights Act Allows

Section 36 protects landowners when an operator fails to pay surface lease compensation when due. The Land and Property Rights Tribunal reviews written evidence, issues a demand to the operator for payment, and can suspend and then terminate the operator’s right of entry if payment is not made. If the operator still does not pay, the Tribunal may direct the Minister to pay the landowner from Alberta’s General Revenue Fund. The Crown then seeks recovery from the operator. Practically, this mechanism ensures eligible landowners continue to receive annual compensation even when the operator is insolvent, defunct, or otherwise non-paying. Because the process involves evidentiary and procedural requirements, landowners benefit from experienced legal guidance to ensure their applications are complete and positioned for success.

Does the Orphan Well Association Pay Surface Rent?

No. The Orphan Well Association is mandated to decommission and reclaim orphaned sites and is not the surface tenant. It does not assume a defunct operator’s obligation to pay annual compensation or municipal taxes. When a site becomes orphaned, landowners continue to be entitled to annual compensation until a reclamation certificate is issued. Recovery of those amounts flows through the section 36 process with the Tribunal; it does not come from the Orphan Well Association. If off-lease access is needed for closure work, the Association may negotiate separate compensation for that limited purpose, but that is distinct from surface lease rent. KMSC Law LLP regularly advises landowners on both section 36 claims and access negotiations.

What a Section 36 Application Involves

Most section 36 applications are decided based on written material. The applicant must provide documents that show entitlement to compensation and how much is due, such as the signed surface lease or most recent amendment setting the current annual amount, any right of entry order reference if applicable, and the legal land description and licence number for the site. After the Tribunal issues a demand and timelines run, it may terminate entry rights and, if payment still has not been made, direct payment by the Minister. Applications are made per site and, in practice, unpaid annual rent is claimed year by year until a reclamation certificate is issued. If a court-ordered receivership stay is in place, it may be necessary to wait until that stay is lifted or varied before the Tribunal can proceed. KMSC Law LLP handles these filings on behalf of landowners, ensuring that applications are complete, deadlines are met, and claims are renewed each year as required.

Practical Pitfalls and Timelines of Section 36

Two timing realities matter. First, section 36 is not instantaneous; there are notice periods for the operator before ministerial payment can be directed. Second, landowners should plan for repeat filings for each year of unpaid rent until closure is complete and the reclamation certificate is granted. Evidence is important, but it need not be perfect. If the original lease or amendment is unavailable, the Tribunal will consider a set of supporting documents that, together, establish entitlement and the current annual amount. Finally, denying access for decommissioning or reclamation can jeopardise recovery; the Tribunal has discretion to refuse or suspend payments where a landowner is refusing necessary access for closure activities. KMSC Law LLP helps landowners compile the strongest possible evidentiary package and coordinates access matters so that section 36 payments are not put at risk.

Why Work With KMSC Law LLP Surface Rights Lawyers

For section 36 applications, we work on a no win, no fee basis—you pay nothing unless we recover compensation on your behalf. This means there is no financial risk to you in pursuing what you are owed.

KMSC Law LLP’s Surface Rights team has been closely involved in the Long Run receivership, including advising landowners on unpaid surface lease rentals and the implications of transfers to the Orphan Well Association. We help clients gather the right evidence, prepare and file section 36 applications, respond to operator or Tribunal queries, and track annual renewal cycles until reclamation is complete. Where insolvency stays or sales processes affect timing, we monitor court filings, coordinate with receivers, and adjust the filing strategy so that your recovery is not delayed unnecessarily. We also advise on access coordination with the Orphan Well Association so that closure work proceeds without risking section 36 payments. Our team serves landowners throughout Alberta, from Grande Prairie to Calgary and everywhere in between.

Contact the surface right’s team at KMSC Law LLP today

If your well site was part of the Long Run portfolio or any operator that has stopped paying, do not assume that the rent is gone. Section 36 is designed for precisely this situation. Contact our Surface Rights team to discuss your claim and let us handle the paperwork, deadlines, and follow-up filings on your behalf. KMSC Law LLP serves landowners across all of Alberta and can help you move from missed payments to money in hand while the site advances toward reclamation.