Who Pays Surface Lease Compensation on Orphan Well Assets? Understanding Alberta's Surface Rights Rental Recovery Program

Many Alberta landowners are surprised to learn that the Orphan Well Association (OWA) is NOT responsible for paying annual surface lease compensation after an oil and gas asset has been orphaned.

It's an understandable misconception.

It's only natural to assume that responsibility for annual surface lease compensation transfers to the Orphan Well Association.

The OWA's Role

The Orphan Well Association is responsible for safely decommissioning and reclaiming orphan oil and gas assets throughout Alberta.

Are Landowners Still Eligible for Surface Lease Compensation?

In short, yes.

Although responsibility for the surface lease asset transfers to the Orphan Well Association, responsibility for annual surface lease compensation does not.

Under Alberta law, annual surface lease compensation remains payable until a Reclamation Certificate has been issued.

If annual surface lease compensation has not been paid, Alberta landowners can recover unpaid compensation through Alberta's Surface Rights Rental Recovery Program, administered by the Land and Property Rights Tribunal (LPRT). This remains true after an asset has become the responsibility of the Orphan Well Association and continues until a Reclamation Certificate has been issued.

Applications are submitted electronically through the LPRT's online portal. The program is evidence-based, so documentation such as surface lease agreements, ownership information, and payment records plays an important role in supporting a claim. While some landowners choose to complete the application themselves, others prefer to have a representative prepare, submit, and track the application on their behalf.

Why the Surface Rights Rental Recovery Program Matters

Alberta created the Surface Rights Rental Recovery Program because landowners should not bear the financial loss when an energy company fails to meet its legal obligation to pay annual surface lease compensation.

On average, the program returns approximately $30 million in unpaid surface lease compensation to Alberta landowners every year.

Over the past three years, Agri-Energy Partners has helped Alberta landowners recover more than $9.2 million through Alberta's Surface Rights Rental Recovery Program.

Those dollars don't simply replace unpaid compensation—they're reinvested into Alberta's farms, ranches, local businesses, and rural communities, supporting the families who continue to steward the land where these energy developments exist.

Understanding Your Options

Understanding the difference between the Orphan Well Association and Alberta's Surface Rights Rental Recovery Program can help ensure you don't miss an opportunity to recover annual surface lease compensation you're entitled to receive.

If you have questions about unpaid surface lease compensation or Alberta's Surface Rights Rental Recovery Program, Agri-Energy Partners is always happy to help you better understand the process and your options.