Holding the Reins When industry comes knocking at your door - Landowners Summit for the Oldman Watershed Fort Macleod, January 23, 2007 Norma ...
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Holding the Reins …
When industry comes
knocking at your door
Landowners Summit for the Oldman Watershed
Fort Macleod, January 23, 2007
Norma LaFonte, LCS – LaFonte Consulting Service
“A Landowner’s Perspective”
1
Who and Why ?
9 Active member of a landowner group, and through my
involvement was challenged by industry, I rarely turn
down a challenge
9 I am a person who lives on land – I am not a farmer. I
am a land agent but work only for farmers – I have never
worked for industry
9 I know that Knowledge is Power and that more balance
is needed between energy and agriculture
9 Purpose today - Create awareness, build capacity.
There are not enough land advocates, you NEED to
learn to how to help yourself and work together
2
What I want to Share
• Opinion on the EUB, AB Environment
• Touch on CBM/Shale Development and
Water
• Top 10 Land Agent hints
• Learnings about politicians
• Forming a Group
3Energy & Utilities Board
9 Our initial reaction … was they were in the pockets of industry.
9 Nobody likes them ….. They must be doing a good job
9 The reality……. organized and educated landowners can be an
influence on the EUB, and the EUB can be helpful to landowners
9 You need to learn the rules to play the game
9 If it is not in “black and white” it doesn’t count – get it in writing
9 The EUB needs more autonomy from industry and should report
directly to the legislature, rather than to the AB Energy
4Alberta Environment
• AB Environment is under funded and cannot keep pace
with energy growth
• To keep up, changes included self regulation of industry
in the areas of reclamation and water monitoring
• Self regulation is ineffective, un-reliable and potentially
dangerous
• They NEED additional staffing and funding to be directed
towards scientific monitoring, regulatory compliance,
inspections, reclamation and the protection of water
resources
5CBM and Shale Gases – Intense
Development on the land
• In the Wheatland County – 5 years of development for
just the CBM is projected to be 6550 wells
• National Energy Board report from November 2004,
indicated 50,000 wells would be required in the
Horseshoe Canyon formation
• An abandoned well has a permanent restriction on the
land of 5 meter radius. Permanent scars to the surface
user
• Shale Gas development has not yet started – early
information is that Shale Gas will required the same or
greater numbers of wells and may require extensive
water for development 6Big Picture – the BIG Impact
• Industry is pre-approved to apply for 4 wells per section of land, per
pool or per zone, in SE Alberta
• Quotes from the Petro Canada Winter/Spring 2005 newsletter “8
wells per section is the norm in the Medicine Hat area” AND “If
the Pilot Projects are successful, it is likely that 16 wells per section
would become the standard”
• Every well requires a connection to a pipeline and which then needs
to connect to a small booster station and/or into a sales compressor
station
• While each of these wells does not necessarily require a new
surface disturbance, many of them will and once the application has
been approved – it is difficult to have industry respond to the
cumulative impacts of the number of wells and infrastructure on your
land or on the community
7An example of 4 wells per section (1 square mile), in
just one township is shown on the right …
• Imagine this ……
• Each yellow square
represents a section
• Each red dot represents a
well and the red lines
indicate pipelines.
• Try to envision placing 12
extra wells on each yellow
square (the new “norm””
• Now connect their pipelines.
• More red dots need more
compressors.
• Where will you live?
8CBM - Competing with Agriculture
• Current CBM well density is already in conflict with cultivated
agricultural land use such as large scale farming
• The long term future of sustainable agriculture includes production
of bio-diverse crops and organic farming and these are already
being restricted because of existing oil and gas development
• The ability to sub divide the land for future development such as
acreages is compromised (urban pressures)
• Set backs will be permanent on well leases and even temporary set
backs are restricting the future use of the land
• Intense pipeline network fragments land and sterilizes potential
future use
9Set backs from Lease and ROW’s
• What happens on your neighbours land can affect you
• Each well is subject to a 100 meter set back (this can overlap onto
neighboring land) – 7.75 acres of land
• Permanent set back of 5 meters – where you can never build or
develop
• Pipeline ROW’s have a set back to the edge of the ROW – often 15
– 18 meter strips running across your land.
• If have lost control and development rights on the surface of land –
yet you do not have an income to offset the true amount of space
taken
10Protecting your Land
9 Negotiate a location that works for you including the
access road
9 Negotiate the pipeline routing at the same time as the
location, the shortest route is not always the best
9 Insist on addendum items that include environmental
impact assessments including soil profiles, photos pre-
disturbance etc.
9 Understand the long term impacts and remember that
the EUB guidelines are minimum, set standards that
work for your land!
11Local Issues - Pipelines
• The spider web effect of pipelines needs to be better understood.
What is under the ground does affect surface use potential
• Pipelines can sterilize future agricultural use beyond the right of way
area (future growth of organic or bio-crops) – ability to drive heavy
grain trucks across your land
• Easements stay on title beyond the use of the pipeline. They are
not automatically removed by industry at this time
• Pipeline right of ways can restrict future development such as
housing, subdivisions, farm expansion and the costs of crossing
these pipelines is often borne by the landowner – unless you
negotiate this in your contract
• Pipeline subsidence effects can damage machinery, farmers are
responsible for costs of repair and resulting crop losses that occur
as a result of equipment down time
12Spider Effect – 1 section of land
• At the end of each
pipeline is a well head,
with a 100 meter set back
• Each pipeline has a right
of way with an average
set back of 15 meters
• Future development
plans may be difficult
13Plan ahead for Pipelines
• The Pipeline Act of Alberta determines set backs from all roads –
this act needs to be reviewed and re-opened in order to allow
pipeline corridors and better planning and use of our land for today,
tomorrow and in the future
• Industry is not currently motivated to abandon an unused pipeline,
as they would then be required to start reclamation. As a result,
pipelines may permanently sterilize future land use
• Pipelines and well leases both have long term affects on how we
manage and use the surface of the land, yet they are treated
differently by regulators. (Annual compensation versus one time
compensation)
• Changes in the Surface Rights Act must be put in place to motivate
industry to abandon or reclaim unused pipelines
14What can you do? Pipelines..
9 Contact the EUB field office and ask for a map which shows all pipelines
on your property
9 Make copies and create a 5, 10, 25 year plan for your property, mail a
copy of these plans to yourself – then file it away, unopened
9 When the land agent comes calling – use your plans to determine the
best locations for wells and pipelines for your operation, make industry
work with you. Never agree to a well site location, without discussing
the pipeline routing
9 Pipelines and well leases both have long term affects on how we manage
and use the surface of the land, yet they are treated differently by
regulators. (Annual compensation versus one time compensation)
9 Industry is not motivated to abandon pipelines, as they then are
required to start reclamation. As a result, pipelines may permanently
sterilize future land use
15CBM - Compressor Sites
• Roughly 1 compressor, (sales or boosters) for every 7
sections is required for CBM, this would equal 1
compressor approximately every 2 miles by 3.5 miles
• The noise and the visual impact of these compressors
will forever change our landscape. We will no longer
have an agricultural community we will have an industrial
land, with some agriculture
• Compressors will affect our quality of life and negatively
affect our land values. These affects include adjacent
land that is not considered for compensation but is
directly and adversely impacted
16Booster Compressor Photo courtesy of Encana
17Rowley Compressor Site
Photo courtesy of Pioneer Natural Resources
18Traffic Volumes and the affect on Roads
• A typical CBM well requires 12 semi trucks during the drilling phase
and 15 semi trucks during the completions phase (possibility of
multi-completions is very real)
• We are expecting 6,550 wells by the year 2007 = 176,850 additional
semi trucks using gravel roads and secondary highways within the
Wheatland County in the next 2 years. These numbers do not
reflect multi well completions
• Pipeline traffic is not included in the above numbers, and each of the
6,550 wells will require a pipeline. Survey crews, delivery of pipes,
welders, heavy equipment delivery, installation crews all create
additional traffic
• Regular maintenance of each well – testing, weed maintenance etc.
= unknown additional traffic
• REMEMBER the Shale Gases – not included in the above #’s 19More on Ground Water re Shales
20Ground Water
• Each wells required will be drilled through our ground water aquifers, and
the potential long term effect of such intensive drilling on our aquifers is
unknown
• Shallow fracturing is relatively new – effects are unknown
• Water is the most important resource in the province and must be protected
through stronger legislation, write your MLA
• We strongly believe in the precautionary principle approach as defined by
CASA. If we are unsure as to the long term effects – we must do all
possible to minimize the effect or not proceed at all
• NEED MORE ON G ROUND WATER …..
21Protecting your wells
• Every water well should have baseline testing prior to any well being drilled near you
– it is my opinion that the current baseline standards are NOT adequate – we need to
lobby for higher standards
• Safety starts at home – start to look after your own water well on a regular basis. Do
testing, measure depths, keep a log book of this activity
• Do not sign a surface lease if the company will not agree, in writing to do an
extensive set of water well tests. Ensure that the results are in your hands prior to
drilling.
• Learn about options available for extra water protection during the drilling phase such
as surface casing depth or Cement Bond Logs, the use of potable/treated water etc.
and request the options that makes sense to you
• The Pembina Institute recommends the water test include a test for gas, and if
gas is present that a test for carbon isotopes (fingerprinting) of gas be done
• EUB guidelines are minimum – you can ask for more protection than what is offered
by industry
22Liability to landowners
9 Banks are getting tougher to deal with due concerns about liability
and environmental contamination
9 The banks are asking you to complete a questionnaire prior to their
decision to lend money, as a result of your answers, they may
request an environmental assessment be done. These costs are
born by the landowner
9 Some banks have refused to allow land with oil and gas
development to be used as collateral, even though Alberta
legislation says the landowner is not responsible for cleanup
9 If the land has a residence and will no longer support a water well
(via damage from industry) the land may not be considered for a
mortgage, you must find a cash buyer
9 Insist on addendums that protect your assets from this liability
23Short Term Cash vs. Long Term
Considerations
9 The long term future of sustainable agriculture includes
production of bio-diverse crops and organic farming and these
are already being restricted because of existing oil and gas
development
9 The ability to sub divide the land for future development such
as acreages is compromised (urban pressures)
9 Set backs from pipelines, well leases etc. restrict future
potential use of the land. Landowners cannot expand their own
infrastructure because of setbacks required
9 Land values may be decreased by development and
infrastructure
9 Check out “BusinessEdge.ca” Jan 19/05 edition for more info
24Compensation Thoughts – are
landowners well paid?
9 Loss of efficiency and capital costs are not paid at all
9 You will be paid for the Lease (2 – 4 Acres) but give up control on
7.75 Acres
9 A one time initial payment for a new lease varies from
$ 10,000 - $ 40,000 enough to buy a pick up truck
9 Annual payments in range from $ 2000 – $ 3500 per year and
you take the risk of contamination and banking problems,
trespass, open gates, lost cattle, weed problems, litter etc.
and the responsibility of monitoring compliance, contamination
and trespass all for $ 5.47 to $ 9.58 per day
25Top 10 Land Agent
26We need to work together
9 Landowners need to work together for the greater good. The
EUB grants the permits, but we grant the permission…
9 Use the existing system to your advantage, learn how the EUB
and the Surface Rights Board operate. Do not fear them
9 Groups are forming through out the province to address areas
of concern. Join a group or start a group. If you are part of a
group, considering joining the Coalition for Alberta’s Future
9 Create awareness of the issues raised today – go to meetings of
all kinds, go to industry open houses, surface rights meetings,
and make your own decisions but respect the rights of others to
make their own. Do not allow industry to divide your community
9 Do not allow the short term cash gain to make decisions that
affect your future.
27Summary 9 Be well informed and reasonable people. Get educated make good choices based on good information 9 Never make decisions based on fear or pressure from others 9 Make decisions based on “black and white” not rumors 9 Talk with your neighbours and other surface rights groups. Ask for help and share your knowledge 9 Never lose your temper, never give up and never sign a document that you are not comfortable with 28
We need to work together
• WSRAG represents a large and diverse group of people, some are looking
forward to the development, some are acknowledging that development
must happen and will accept it when treated fairly and with dignity and
respect, while other members are on the edge of despair
• Other groups are forming through out the province with similar concerns
and feelings. If you are not a member of a group, join an existing group or
form one in your own community
• Landowners are starting to feel and behave out of a sense of desperation
and frustration. There is talk of “clogging the system” if the system does not
change. Do not fear the system. Try to work it out with industry, but if you
cannot do so, use the system – if it clogs up, so be it.
• WSRAG recognizes the need for development and we want to work
together to make changes that allow all stakeholders to be treated fairly and
with respect. We need your help in accomplishing that goal
29Surface Rights Groups
• Local group of landowners and taxpayers who have a common concern, usually
money
• Membership starts with the concept of increasing $$, may fail. Groups that
concentrate on education as to who it relates to the big picture, which is about $$
have lasting success
• WSRAG is 6 years old and its members own or control over 217,000 acres of land
• Funding is member based only, we do not accept funding from oil and gas companies
• Our focus is on education and communication, then $$$
• Worked closely with the Energy Utilities Board as a single stakeholder Synergy Group
• Presently working to develop relationships with local groups such as watershed
groups, our County and lobbying for change in our Provincial Government
30What do we hope you will do ?
• Understand your rights – take the time to get educated. Make choices that are right
for you. Support your neighbours by talking to one another
• Learn the systems and work with them to your advantage, do not be afraid of the
EUB or the Surface Rights Board
• Create awareness with other landowners
• Write letters regarding environmental concerns, quality of life issues and liability
concerns, – Ask your MLA to support the recommendations that were made by
landowners in the CBM committee reports as presented to MAC
• Write letters or sign petitions – Surface Rights Act / EUB’s Downspacing proposal
• Ask your MLA’s to support change which will allow for more representation by
landowners, at the Board levels of the EUB and SRB
• Consider writing a letter in support of WSRAG and our requests to government for
the changes needed.
31Summary
• We need oil and gas in Alberta – but it must be
responsible energy development
• We encourage industry to work collaboratively with the
community
• We are well informed and reasonable people. We
believe in working with all stakeholders and want to be
included in future decision making.
• Our group believes in being proactive and welcomes
contact from anyone or any company requesting
information. Please contact Norma LaFonte at (403-
934-2393) or email at nmlafonte@aol.com
32You can also read
