Quote:
Originally Posted by The Fonz
Random question, but maybe someone in here is familiar. How long can a gas company go without paying their well lease to a land owner, before the land owner can legally deny that gas company site/well access?
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Depends on what the underlying oil and gas lease would provide or state in respect of the matter, would it not?
If you are asking an Alberta-specific question, then I don't have the answer for you.
But in some jurisdictions, notably in the US, failure to pay royalties is not a grounds for lease termination, only for breach of contract and a suit for damages for the unpaid royalties, but the underlying oil and gas lease can provide otherwise.
That said, if the lease is no longer producing in paying quantities (which is a legal term of art), then the lease terminates and the land owner would typically be allowed to deny access to the oil company, except in order for the company to conduct abandonment and remediation operations in connection with the well.