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How the KMSC Surface Rights Team Can Assist in Lease Negotiations with Oil and Gas Companies
Author: brianne-gillham posted in: Surface Rights
Are you a landowner in Alberta or British Columbia who has been approached by an oil and gas company that wants to build a pipeline, drill wells, or construct other oil and gas facilities on your land? If so, you may be wondering what your rights are, how to negotiate a fair deal, and what impacts the project will have on your property and livelihood.
The KMSC Surface Rights Team specializes in representing landowners in negotiations with oil and gas companies. We have the experience and expertise to help you protect your interests and get the best possible outcome for your situation—all at no cost to you.
Our Fees Are Paid by the Operator
In Alberta and British Columbia, when an oil and gas company wants to build or drill on your land, they have the obligation to pay the landowner’s reasonable fees incurred in the negotiation. This means that you do not have to bear the cost of hiring an expert to review and advise on the offer and the agreement presented by the company.
The Importance of Representation When Dealing with Oil and Gas Companies
You may think that the dollar value of the offer presented by the oil company is reasonable and that you do not need representation. However, you should be aware that the oil company’s representative, often called a land agent, has a vested interest in securing the right to drill or access your lands in the most cost-effective way possible. Land agents represent their clients, the oil companies, and not landowners. They may not disclose all the relevant information, risks, and implications of the project to you. They may also pressure you to sign the agreement quickly, without giving you enough time to understand and negotiate the terms.
The bargaining power and financial resources of oil and gas companies are often significant. They have teams of lawyers and experts working for them. It is important that you have your own representation to ensure your rights are protected and that the operator does not take advantage of you. Oil and gas projects, once constructed, will likely be on your land for decades. This means that the agreement you sign today will affect your land and your operations for many years to come. It may also affect future generations of landowners who inherit or buy your property.
The KMSC Surface Rights Team Can Assist
The KMSC Surface Rights Team can provide you with advice on the reasonableness of any offer. Our team has extensive experience in representing many landowners in dealings with many oil companies in western Canada. We know the market rates, the industry standards, and the precedents that apply to your situation. We can also help you negotiate the terms and conditions of the agreement to suit your unique needs and preferences.
You should know that the agreements presented by oil and gas companies are drafted to favor the company over the landowner. These one-sided agreements often lead to unfair consequences down the road. For example, the agreement may give the company the right to access, use, and occupy your land indefinitely, without giving you any control over their activities. The agreement may also limit your ability to sue the company for certain types of damages, liabilities, or breaches that may occur as a result of the project. The agreement may also restrict your rights to sell, lease, or subdivide your land in the future.
We can help you avoid these pitfalls by reviewing and revising the agreement to ensure that it reflects your interests and expectations. We can also ensure the agreement includes site-specific conditions the oil company must fulfill to minimize their impact on operations, agricultural or otherwise. Potential conditions that benefit landowners include field access restrictions, time of year of construction, temporary farm equipment crossings, logging conditions, fencing conditions, construction of new dugouts, and sound and light mitigation. The KMSC Surface Rights Team has the experience to ensure that whatever agreement you enter into has the conditions required to protect your land and your livelihood.
Contact the KMSC Surface Rights Team Today
Given your statutory right to recover fees associated with representation, you have nothing to lose and everything to gain by getting a second opinion from us. We offer a free consultation to discuss your situation and your options. We will work with you to achieve a fair and satisfactory resolution with the oil and gas company.
Don’t let the oil and gas company dictate the terms of your land use. Contact the KMSC Surface Rights Team today and let us help you secure your rights and your future.
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