Close to 40 people braved the winter weather in Settler on Oct. 26 for a presentation by the provincial Farmer’s and Property Rights Advocate’s Office.
The presentation was designed to address questions and concerns surrounding land rights and renewable energy projects.
Darcy Allen, with the Farmers’ Advocate Office, based in Edmonton, had one key takeaway from the evening: “Everything is negotiable.”
Allen noted that unlike oil and gas projects, where companies can force participation due to mineral rights, where it comes to renewable projects they are completely voluntary.
“No means no,” said Allen.
“If you say no, they must move on. The surface rights ace doesn’t apply.”
Some areas where Allen says individuals considering signing on to a renewable energy project need to be wary are where it comes to fixed and variable rates, non-disclosure agreements, and reclamation.
As far as lease rates go, Allen says to completely review any contract in front of you, and have it looked over by your own lawyer as it will be written by the project companies, in their interest. He notes that different companies, and different projects, could be offering different rates depending on what stage of the project the company is in.
Allen also recommends getting at least part of the lease as a fixed rate; variable rates will depend on how much a project is producing.
Another area that causes complications is many companies use contracts with non-disclosure agreements built in. While the agreements are not enforceable pre-signature, once signed, the company can litigate if information from the contract is disclosed without their permission.
However, Allen says he is aware of landowners who have demanded, and successfully had, that provision be struck from the contract during the negotiation process.
Finally, Allen says while negotiating, make sure that the reclamation plans, and funds, are bullet-proof. He notes that some contracts have been made where the company changes hands and any security that is set for the reclamation is lost, leaving the landowner to potentially be on the hook for reclamation costs.
However, depending on how the company does it, those funds can be locked in and not touchable.
One final note Allen had, “Ensure everything is captured in writing.”
In total, Allen’s presentation lasted around 90 minutes, following which a question and answer session was held.
For more information, check out the Farmers’ and Property Rights Advocate Office website at alberta.ca/farmers-advocate-office.
