Unpaid Alberta Surface Rights Agreements with Alphabow Energy Ltd.
Defendants: Alphabow Energy Ltd.
Summary: Oil company Alphabow Energy Ltd. decided it would not be paying Alberta landowners for at least six months, which is a clear violation of the terms of their Surface Rights Agreements.
Since the abundance of oil and gas hidden beneath Alberta’s surface is incredibly expensive to extract, many farmers and land owners will enter into Alberta Surface Rights Agreements with oil and gas companies such as Alphabow Energy Ltd. who handle the extraction of the resource in exchange for annual compensation to the landowner.
According to the Plaintiffs in the Class Action lawsuit filed by Guardian Law Group, these landowners (the Plaintiffs) entered into Surface Rights Agreements with Alphabow Energy Ltd. As part of the agreements, these landowners were entitled to a pre-determined financial compensation every year, without exception, no matter what the market conditions or the company’s performance.
However, in May 2020, these landowners were notified that they were not going to be paid the money to which they were entitled, and that “Alphabow will review all outstanding Rental Payments in 6 months.” Nowhere in the agreement does it state this is allowed.
Many of these landowners are reliant on the money being paid to them. The matter is akin to a landlord-tenant matter; and similarly, a tenant cannot simply tell their landlord without notice or prior discussion that they will not be paying their rent for half a year but they would review all outstanding payments in 6 months. This situation would obviously not be acceptable, so why should it be permitted just because the tenant is an oil company?
This claim is meant to put money back in the pockets of Albertans who are legally entitled to Surface Rental Payments.
If you have an Alberta Surface Lease Agreement owned by Alphabow Energy Ltd. and were not paid the annual compensation you previously received, please contact us by filling out the form below. You may be entitled to financial compensation.
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