File No. 2136 Board Order No. 2136-1 ____________________
January 30, 2020 SURFACE RIGHTS BOARD IN THE MATTER OF THE PETROLEUM AND NATURAL GAS ACT, R.S.B.C., C. 361 AS AMENDED
AND IN THE MATTER OF DISTRICT LOT 2498 PEACE RIVER DISTRICT (The “Lands”)
BETWEEN: Herman Klassen and Nettie Klassen
(APPLICANTS) AND: Ranch Energy Corporation (RESPONDENT) ____________________________________ BOARD ORDER _____________________________________
KLASSEN v. RANCH ENERGY CORPORATION ORDER 2136-1 Page 2
This is an application brought under sections 164 and 176 of the Petroleum and Natural Gas Act.
The Applicants, Herman Klassen and Nettie Klassen, are the owners of the Lands described as: DISTRICT LOT 2498 PEACE RIVER DISTRICT. The Respondent, Ranch Energy Corporation, is the operator of an oil and gas installation on the Lands. The Respondent’s right of entry to the Lands for the purpose of conducting an oil and gas activity is pursuant to a surface lease (the Surface Lease).
Pursuant to the Surface Lease, Ranch Energy Corporation, is required to make annual payments of $3,000 to Herman and Nettie Klassen. Ranch Energy Corporation failed to make the annual payment required by October 2, 2018 and October 2, 2019.
The Board finds that Ranch Energy Corporation has failed to pay rent owing under a surface lease. Pursuant to section 176 of the Petroleum and Natural Gas Act, the Board determines that Ranch Energy Corporation owes Herman and Nettie Klassen $3,000.00 in unpaid rent plus interest from October 2, 2018 and October 2, 2019. The Applicants are entitled to costs of this application.
The Board orders as follows: 1. Ranch Energy Corporation shall forthwith pay to Herman Klassen and Nettie Klassen the sum of $3,000 plus interest calculated in accordance with the Court Order Interest Act from October 2, 2018; and
2. Ranch Energy Corporation shall forthwith pay to Herman Klassen and Nettie Klassen the sum of $3,000.00 plus interest calculated in accordance with the Court Order Interest Act from October 2, 2019.
DATED: January 30, 2020 FOR THE BOARD _______________________ Cheryl Vickers, Chair