understanding compensation as it relates to
If the Oil and Gas Commission has determined you have an orphan site and intends to commence restoration, you may be entitled to compensation for loss of use of your land as a result of the failure by the operator to restore the land.
In determining the amount of compensation due to you, the OGC may consider the compensation that you or a previous owner had been receiving from the operator under a surface lease agreement, or other determination that the OGC considers reasonable. For more information. See the Oil and Gas Activities Act, Part 4 – Section 46 .
In order to receive compensation, you will need to make application to the OGC, providing them with the information listed in BC Reg. 274/2010 Oil and Gas Activities Act General Regulation, Section 29 – namely a copy of your surface lease if applicable, your claim for compensation, evidence of your efforts to obtain compensation from the operator, a description of the oil and gas activity that took place, evidence of your interest in the land (such as a copy of your title) and any other information relevant to establishing your claim.
The maximum compensation is $50,000 for loss of use prior to the OGC’s determination of the site as orphan. After determination, compensation will be either the annual lease fee, or an annual payment deemed by the OGC to be reasonable, and will be paid until restoration is complete. Your property rights related to orphan wells form the basis for compensation.