Understanding Freehold Leases – The Acanthus Decision

 

In 1998, an Alberta Court of Queen’s Bench judge considered the issue of whether costs to make oil marketable were properly deductible from freehold oil royalties in a pre-CAPL freehold lease agreement. In Acanthus v. Cunningham, the freehold owner-lessor had reserved unto himself a “gross royalty of seventeen (17) per cent of the leased substances […]