Common Questions asked with respect to rental reviews:
What is considered a fair rate?
What is the rate based on?
Where can I find comparables?
How do I find out when my lease is due for a review?
Is there any penalty to the Operator if they don’t give proper notice to a Landowner?
What is considered “reasonable time” for the Respondent notice?
What type of compensation orders or surface leases can be reviewed by the Board?
Q: What is considered a fair rate?
There is no exact set rate, each lease is based on its own merit.
Q: What is the rate based on?
The rate of compensation to be reviewed by the Board pursuant to Section 27 of the Surface Rights Act is the compensation determined by the loss of use by the owner/occupant of the area granted and the adverse effect on the remaining land, the Board may also consider the nuisance, inconvenience and noise that might be caused from the operations. The Board may also consider evidence of a pattern of dealings in the area where there are similar lands, similar takings and freely negotiated agreements.
Q: Where can I find comparables?
On the Board's website or you can talk to your neighbors who have surface leases.
Q: How do I find out when my lease is due for a review?
The Operator is required by Section 27(4) of the Surface Rights Act to provide you with a notice after the 4th anniversary of the date the term of the lease or right of entry order commenced. Regardless of the terms of the agreement you are entitled to a review of compensation every 5th year from the date when Right of Entry was granted or the surface lease was signed.
Q: Is there any penalty to the Operator if they don’t give proper notice to a Landowner?
The Surface Rights Act does indicate that if the Operator fails to give notice as required by subsection (4) or (14), the lessor may, within a reasonable time after the failure, give a notice to the Operator and the Board may make its order as to the rate of compensation effective from the same date it would have been effective if the Operator had given the required notice.
Q: What is considered “reasonable time” for the Respondent notice?
Reasonable time is at the discretion of the Board.
Q: What type of compensation orders or surface leases can be reviewed by the Board?
Those that provide for payment of compensation on an annual or other periodic basis. If the order or agreement does not provide for annual or periodic payments it cannot be reviewed unless it relates to a major power transmission line(69KV or larger).