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File No. 2144 Board Order No. 2144-1 ____________________

March 2, 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 36 TOWNSHIP 83 RANGE 17 WEST OF THE 6 TH MERIDIAN PEACE RIVER DISTRICT (The “Lands”)

BETWEEN: Marty Lyle Kjos and Miriam Ellen Kjos

(APPLICANTS) AND: Ranch Energy Corporation (RESPONDENT) ____________________________________ BOARD ORDER _____________________________________

KJOS v. RANCH ENERGY CORPORATION ORDER 2144-1 Page 2

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

The Applicants, Marty Lyle Kjos and Miriam Ellen Kjos, are the owners of the Lands described as: THE SOUTH WEST ¼ OF SECTION 36 TOWNSHIP 83 RANGE 17 WEST OF THE 6 TH MERIDIAN 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 $2,800.00 to Marty Lyle Kjos and Miriam Ellen Kjos. Ranch Energy Corporation failed to make the annual payments required by February 13, 2020.

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 Marty Lyle Kjos and Miriam Ellen Kjos $2,800.00 in unpaid rent plus interest from February 13, 2020. The Applicants are entitled to costs of this application.

The Board orders as follows: 1. Ranch Energy Corporation shall forthwith pay to Marty Lyle Kjos and Miriam Ellen Kjos the sum of $2,800.00 plus interest calculated in accordance with the Court Order Interest Act from February 13, 2020.

DATED: March 2, 2020 FOR THE BOARD _______________________ Cheryl Vickers, Chair

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