Sandboe et al. v. Coseka Resources Ltd., (1987) 79 A.R. 386 (QB)

• Judge: Cavanagh, J.
• Court: Court of Queen's Bench of Alberta (Canada)
• Case Date: June 08, 1987
• Citations: (1987), 79 A.R. 386 (QB)

Sandboe v. Coseka Resources Ltd. (1987), 79 A.R. 386 (QB)

MLB headnote and full text

Raymond Sandboe, Talbert Sandboe, Chester Sandboe, Cyril Sandboe, and Gordon Sandboe (appellants) v. Coseka Resources Limited (respondent)

(#8504-010360)

Indexed As: Sandboe et al. v. Coseka Resources Ltd.

Alberta Court of Queen's Bench

Judicial District of Grande Prairie

Cavanagh, J.

June 8, 1987.

Summary:

The Surface Rights Board ordered compensation to a landowner. The operator appealed.

The Alberta Court of Queen's Bench allowed the appeal and reduced the compensation payable to the landowner.

Mines and Minerals - Topic 6103

Operation of mines, quarries and wells - Compensation to owners of surface rights - Relevant considerations - Area agreements by owners - The Alberta Court of Queen's Bench described the nature and purpose of area agreements by owners of surface rights (see paragraphs 9 to 11) - The court affirmed the refusal of the Surface Rights Board to consider such area agreements in fixing compensation to owners (see paragraph 12).

Mines and Minerals - Topic 6160

Operation of mines, quarries and wells - Compensation to owners of surface rights - Annual awards - Land value - The Surface Rights Board fixed the value of land at $700.00 per acre - The Alberta Court of Queen's Bench fixed the value of the land at $400.00 per acre where the only evidence of value before the board did not exceed $400.00 per acre (see paragraphs 19 to 22).

Mines and Minerals - Topic 6161

Operation of mines, quarries and wells - Compensation to owners of surface rights - Annual awards - Where well abandoned - The Surface Rights Board awarded an owner compensation of $7,200 for the first year and $2,350 per year thereafter - The well was abandoned by the operator in less than two years - The Alberta Court of Queen's Bench reduced the amount of the annual awards and terminated compensation after the third year (see paragraphs 31 and 32).

Cases Noticed:

Livingston v. Siebens Oil & Gas Ltd., [1978] 3 W.W.R. 484; 8 A.R. 439, refd to. [para. 8].

Marcovich v. Pan Canadian Petroleum Ltd. (1984), 54 A.R. 72; 30 Alta. L.R.(2d) 211, refd to. [para. 8].

Petryshen v. Nova, An Alberta Corporation (1982), 23 Alta. L.R.(2d) 194, refd to. [para. 8].

Walde v. Great Basins Petroleum Ltd., 65 A.R. 358; 41 Alta. L.R.(2d) 193, refd to. [para. 8].

Dome Petroleum Ltd. v. Richards et al., 66 A.R. 245; 42 Alta. L.R.(2d) 97, refd to. [para. 8].

Cabre Exploration v. Arndt, [1986] 4 W.W.R. 529; 69 A.R. 293, refd to. [para. 30].

Statutes Noticed:

Surface Rights Act, S.A. 1983, c. S-27.1, sect. 19 [para. 14]; sect. 25(1) [para. 3].

Counsel:

P.T. Johnston, (Johnston Bennett), for the appellants;

R.C. Swist and T.R. Owen (Swist & Co.), for the respondent.

This appeal was heard by Cavanagh, J., of the Alberta Court of Queen's Bench. The decision of Cavanagh, J., was delivered at Edmonton, Alberta, on June 8, 1987.