. Agri-news. Agriculture. GO 00 GO & LIBR2 ALBEF MAIN j EDMOI (BLD( August 1,1994 Reclaimed wells model amending agreement available A model amending agreement, negotiated by the provincial Farmers' Advocate's office, is a new way to solve an old issue between farmers and the energy industry. "Oil and gas well site reclamation and compensation has been a contentious issue for the last few years and particularly since late 1990," says Wallace Daley, Alberta's Farmers' Advocate. Oil companies began asking farmers to sign a release when the well site on their land had been clea
. Agri-news. Agriculture. GO 00 GO & LIBR2 ALBEF MAIN j EDMOI (BLD( August 1,1994 Reclaimed wells model amending agreement available A model amending agreement, negotiated by the provincial Farmers' Advocate's office, is a new way to solve an old issue between farmers and the energy industry. "Oil and gas well site reclamation and compensation has been a contentious issue for the last few years and particularly since late 1990," says Wallace Daley, Alberta's Farmers' Advocate. Oil companies began asking farmers to sign a release when the well site on their land had been cleaned up. Current regulations require the energy company to fully reclaim a site and then must receive a reclamation certificate before It can stop paying farmers annual compensation for a well site. Farmers aren't legally required to sign such a release when a well site is abandoned by the energy company. If farmers signed a release, then the company no longer had to pay annual compensation even when a reclamation certificate hadn't been issued. In many cases, landowners no longer received compensation from the company even if the site hadn't been accepted as reclaimed and further restoration was required. Companies felt they shouldn't have to pay the full amount for a site no longer in use that had been properly cleaned up," explains Daley. Last year the Farmers' Advocate's office negotiated a model amending agreement. Nearly a year later in March 1994, this amendment to lease agreements was reviewed by both agriculture and energy industry representatives. Both sides agreed to drafting a final version of the model agreement. The model agreement amends the lease between the farmer, or any landowner, and the energy company. It allows farmers to protect their legal rights and ensures the company persue the legally required reclamation certificate," says Daley. "At the same time, the compensation - or rent - the energy company pays the farmer decreases. This reflects
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