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File No. 2167 Board Order No. 2167-1amd ____________________

September 1, 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 NORTH EAST ¼ SECTION 4 TOWNSHIP 78 RANGE 15 WEST OF THE 6 TH MERIDIAN PEACE RIVER DISTRICT EXCEPT: PART DEDICATED ROAD ON PLAN BCP 18315 (The “Lands”)

BETWEEN: Ferrol Anne Pavlis

(APPLICANT) AND: Sanling Energy Ltd. (RESPONDENT) ____________________________________ BOARD ORDER _____________________________________

PAVLIS v. SANLING ENERGY LTD. ORDER 2167-1amd Page 2

This Order replaces Order 2167-1 issued September 1, 2020. This is an application brought under sections 164 and 176 of the Petroleum and Natural Gas Act.

The Applicant, Ferrol Anne Pavlis, is the owner of the Lands described as:. NORTH EAST ¼ SECTION 4 TOWNSHIP 78 RANGE 15 WEST OF THE 6 TH MERIDIAN PEACE RIVER DISTRICT EXCEPT: PART DEDICATED ROAD ON PLAN BCP 18315 The Respondent, Sanling Energy Ltd., is the operator of a well site on the Lands. The Respondent’s right of entry to the Lands for the purpose of operating the well is pursuant to a surface lease dated August 7, 2004 (the Surface Lease).

Pursuant to the Surface Lease, Sanling Energy Ltd. is required to make annual payments of $4,525.00 to Ferrol Anne Pavllis. Sanling Energy Ltd. failed to make the annual payment required by August 7, 2020.

The Board finds that Sanling Energy Ltd. 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 Sanling Energy Ltd. owes Ferrol Anne Pavlis $4,525.00 in unpaid rent plus interest from August 7, 2020. The Applicant is entitled to costs of this application.

The Board orders as follows: 1. Sanling Energy Ltd shall forthwith pay to Ferrol Anne Pavlis the sum of $4,525.00 plus interest calculated in accordance with the Court Order Interest Act from August 7, 2020.

DATED: September 1, 2020 FOR THE BOARD

_______________________ Cheryl Vickers, Chair

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