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File No. 2140 Board Order No. 2140-1 ____________________

February 21, 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 THE SOUTH WEST ¼ OF SECTION 31 TOWNSHIP 83 RANGE 17 WEST OF THE 6 TH MERIDIAN PEACE RIVER DISTRICT EXCEPT PLAN 21958 (The “Lands”)

BETWEEN: Hadland Seed Farm Inc. (APPLICANT) AND: Ranch Energy Corporation (RESPONDENT) ____________________________________ BOARD ORDER _____________________________________

HADLAND SEED FARM INC. v. RANCH ENERGY CORPORATION ORDER 2140-1 Page 2

This is an application brought under sections 164 and 176 of the Petroleum and Natural Gas Act.

The Applicant, Hadland Seed Farm Inc., is the owner of the Lands described as: THE SOUTH WEST ¼ OF SECTION 31 TOWNSHIP 83 RANGE 17 WEST OF THE 6 TH MERIDIAN PEACE RIVER DISTRICT EXCEPT PLAN 21958. 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 $5,400.00 to Hadland Seed Farm Inc.. Ranch Energy Corporation failed to make the annual payment required by April 25, 2018 and April 25, 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 Hadland Seed Farm Inc. $5,400.00 in unpaid rent plus interest from April 25, 2018 and April 25, 2019. The Applicant is entitled to costs of this application.

The Board orders as follows: 1. Ranch Energy Corporation shall forthwith pay to Hadland Seed Farm Inc. the sum of $5,400.00 plus interest calculated in accordance with the Court Order Interest Act from April 25, 2018; and

2. Ranch Energy Corporation shall forthwith pay to Hadland Seed Farm Inc. the sum of $5,400.00 plus interest calculated in accordance with the Court Order Interest Act from April 25, 2019.

DATED: February 21, 2020 FOR THE BOARD _______________________ Cheryl Vickers, Chair

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