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File No. 2159 Board Order No. 2159-1 ____________________

May 5, 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 NORTH WEST ¼ OF SECTION 26 TOWNSHIP 83 RANGE 19 WEST OF THE 6 TH MERIDIAN PEACE RIVER DISTRICT EXCEPT PLANS 8828, 10558, BCP17037, BCP20752 AND EPP23582 (The “Lands”)

BETWEEN: Poul Hojfeldt Pedersen and Viggo Hojfeldt Pedersen

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

PEDERSEN v. RANCH ENERGY CORPORATION ORDER 2159-1 Page 2

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

The Applicants, Poul Hojfeldt Pedersen and Viggo Hojfeldt Pedersen, are the owners of the Lands described as: THE NORTH WEST ¼ OF SECTION 26 TOWNSHIP 83 RANGE 19 WEST OF THE 6 TH MERIDIAN PEACE RIVER DISTRICT EXCEPT PLANS 8828, 10558, BCP17037, BCP20752 AND EPP23582. The Respondent, Ranch Energy Corporation, is the operator of an oil and gas activity located on the Lands. The Respondent’s right of entry to the Lands for the purpose of operating the 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 $5,600.00 to Poul Hojfeldt Pedersen and Viggo Hojfeldt Pedersen. Ranch Energy Corporation failed to make the annual payment required by September 30, 2018 and September 30, 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 Poul Hojfeldt Pedersen and Viggo Hojfeldt Pedersen $5,600.00 as of September 30, 2018 and September 30, 2019. The Applicants are entitled to costs of this application.

The Board orders as follows: 1. Ranch Energy Corporation shall forthwith pay to Poul Hojfeldt Pdersen and Viggo Hojfeldt Pedersen the sum of $5,600.00 plus interest calculated in accordance with the Court Order Interest Act from September 30, 2018.

2. Ranch Energy Corporation shall forthwith pay to Poul Hojfeldt Pdersen and Viggo Hojfeldt Pedersen the sum of $5,600.00 plus interest calculated in accordance with the Court Order Interest Act from September 30, 2019.

DATED: May 5, 2020 FOR THE BOARD _______________________ Cheryl Vickers, Chair

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