Surface Rights Board
When a company plans to develop an oil and gas resource and private land is needed to access the project, the company must work out lease agreements and compensation amounts with private landowners. These discussions do not always lead to positive resolutions and may need some assistance to come to an agreement.
The Surface Rights Board (SRB) is a tribunal that has been given jurisdiction under the Petroleum and Natural Gas Act (PNG Act) to resolve disputes between landowners and oil and gas companies on issues regarding access to the land for a well sites, flow lines or facilities. The SRB also has the authority to grant a company Right of Entry to private property if access is needed.
The SRB would first pursue mediation between the parties to resolve disputes. If an agreement cannot be reached, the SRB Board Member may refer it to arbitration. More information on steps taken to resolve issues can be found on the SRB website.
Landowners may encounter a dispute or situation with an oil and gas company that requires the mediation and arbitration service offered by the Surface Rights Board (SRB). To initiate this service, landowners can complete application Form 1A. Additional guidance on completing the forms specific to the types of disputes are provided below.
Resolving Disputes on Compensation Values
During negotiations on a lease agreement, the oil and gas company and the landowner may not agree on the terms for compensation to the landowner. Either party has the option to submit an application to the SRB for mediation or arbitration services to resolve compensation matters.
Landowner Form 1A:
In section 5.A. (page 3) you will need to check the ‘Petroleum and Natural Gas Act’ and in section 5.C. (page 4), check the box to indicate the dispute is about ‘Right of Entry to Lands – establishing terms and compensation’.
Complete all pertinent boxes and email to the SRB: office@surfacerightsboard.bc.ca
If you require further assistance in completing the form, you may contact the Farmers Information Service.
Resolving Disputes on Damages
If a landowner, occupant of the land or owner of adjacent land has incurred damage to their property as a result of oil and gas activities and they are not able to settle it directly with the company, they have the option to apply to the SRB for help in resolving the issue.
Landowner Form 1A:
In section 5.A. (page 3) you will need to check the ‘Petroleum and Natural Gas Act’ and in section 5.C. (page 4), check the box to indicate the dispute is about ‘Damage to the land or loss to applicant’.
Occupant or Owner of Adjacent Land Form 1C:
In section 5.A. (page 3) you will need to check the ‘Petroleum and Natural Gas Act’ and in section 5.C. (page 4), check the box to indicate the dispute is about ‘Damage to the land or loss to applicant’.
Complete all pertinent boxes and email to the SRB: office@surfacerightsboard.bc.ca.
If you require further assistance in completing the form, you may contact the Farmers Information Service.
Resolving Disputes on Non Payment of Rent and Terms of Lease Agreements
A disagreement may take place between a landowner and an oil and gas company about whether or not the company has complied with the terms of the surface lease agreement. The landowner might consider what is taking place on the site to be substantially different from what was approved in the permit. A company is also be considered non-compliant for failing to pay rent to the landowner.
Landowner Form 1A:
In section 5.A. (page 3) you will need to check the ‘Petroleum and Natural Gas Act’ and in section 5.C. (page 4), check the box to indicate the dispute is about ‘Compliance (disagreements on the operation of, or compliance with, the terms of surface lease or order including failure to pay rent or compensation)’.
Complete all pertinent boxes and email to the SRB: office@surfacerightsboard.bc.ca.
If you require further assistance in completing the form, you may contact the Farmers Information Service.
Resolving Disputes on Right of Entry
When a company needs to access private land for an oil and gas activity, they will first contact the landowner to negotiate a surface lease agreement. If an agreement cannot be negotiated, the company has the option to apply to the SRB for the right to enter the land. The SRB will typically not grant a right of entry order until the company has a permit from the BC Energy Regulator for the proposed oil and gas activity.
The company can begin the application process by completing SRB Form 1B.
Reviewing and Renegotiating Rent
When to Renegotiate Rent
If you are a landowner with a lease agreement that has been in place on your land for five years or more, you may wonder if the rental payments you receive are fair and in keeping with current rates.
The amount of annual rent paid to landowners may be renegotiated following the fourth anniversary of the most recent agreement between the landowner and the company.
Rent for the occupation and use of private land for a resource activity is to compensate the landowner for actual ongoing loss, not to compensate for the operator’s use of the land. Payment for use of the land would have been included in the first year payment.
How to Pursue Rent Review
Landowners are encouraged to begin the rent review discussion directly with the company. If no response is received, the following steps should be followed to pursue the renegotiation through the Surface Rights Board (SRB):
Step 1:
As a landowner, you can initiate the review and renegotiation process by completing SRB Form 2 – Notice of Rent Review and sending it to the SRB and to the company. Form 2 can be found on the SRB website and is designed to notify the company there is reason to renegotiate rental amounts.
Step 2:
If 60 days have passed since you sent a copy of Form 2 to the company and no response has been received, or you and the company are not able to agree on a rental amount, you have the option to complete an application to the SRB to enter into mediation or arbitration. The application process can be started using SRB Form 1A, noting in section C (page 4) that the dispute is about rent review.
Step 3:
When the SRB receives an application, it will begin the mediation process through telephone or virtual meetings. If a landowner and company are not able to agree on new rental amounts during the mediation process, the SRB will refer the case to its Arbitration services.
Additional Tips and Considerations as You Begin Renegotiations
- Revised rent amounts are payable for the period following the effective date, not for past losses.
- The onus is on the landowner to establish that an increase to the rental payment is warranted to compensate for ongoing losses.
- A landowner should be prepared with information to demonstrate a loss of income or ongoing loss. The value per acre or analysis of probable future use and probable future losses are examples of evidence to provide to the company or to the SRB.
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