FHOA is about providing education and information to freeholders and seeking fundamental fairness for the freehold mineral owner community!
Is it fair that there are no regulations governing the actions of land agents retained by energy companies to acquire agreements from freeholders? Is it fair that the lease agreements offered to freeholders allow the energy company-lessee to earn all the freeholder’s mineral rights to the center of the earth with production from a shallow well when the Crown and major corporate owners of freehold mineral rights have had deep rights reversion in their leases for more than three decades? And is it fair that in situations where a freehold mineral owner succeeds in negotiating a deep rights reversion clause in his lease, Alberta Land Titles refuses to allow the caveat description to reflect this?
What about oil and gas regulatory authorities? The Alberta Energy Regulator (the “AER”) is charged with the power to make any just and reasonable order to effect the purpose of the Oil and Gas Conservation Act (Part 3, s. 7) one of the purposes of which is to “afford each owner the opportunity of obtaining the owner’s share of the production of oil or gas from any pool” (Part1, s. 4(d)). Is it fair that when a freeholder has been deprived of his share of production by the actions of the freeholder’s energy company-lessee, the AER takes the position that it has no jurisdiction and the matter belongs in the courts?
What about the courts? Oil and gas litigation is exceedingly expensive. No matter how valid the claim, individual freeholders seldom have the financial resources or intestinal fortitude to engage in litigation against powerful oil and gas companies. Provincial governments have historically collected billions of dollars in mineral tax from freeholders’ property. Is it fair that these governments refuse to provide any services whatsoever to freeholders in return? And the list goes on and on and on!
The Freehold Owners Association stands up for freeholders. FHOA provides members with access to information, resources and services to help with them deal with the above issues and more. Based on modest contributions from many members, FHOA has been able to successfully intervene in both regulatory and judicial hearings dealing with issues impacting the freehold owner community such as ownership of coal bed methane and lease continuation with suspended wells .There is strength in numbers; join FHOA and help us seek greater fairness.