“Dear Representative MLA,
This letter is being written to inform you of my concerns with a requested revision to the Land Agent Licensing Act, in particular the removal of 1-(c)-(ii), and the potential impacts on the Oil and Gas sector and the rural community of Alberta. With the energy sector driving Alberta's economy and being a major contributor to the prosperity of the Province, the interaction Oil and Gas Companies and landowners have are on the increase. As a result, both landowners and Oil and Gas Companies are demanding an increase on standards of conduct, professionalism, ethics,and improved communication between these two parties. The removal of 1-(c)-(ii) from the Land Agent Licensing Act will have significant negative impact on the quality, ethics and professionalism of Land Agents in Alberta and reverse or erase all of the positiveinroads that have been gained over the last several yearsbetween landowners and Land Agents.
Educational requirements have been developed by the Provincial Land Agent Advisory Committee. This committee is comprised of representatives from the Oil and Gas industry as represented by the Canadian Association of Petroleum Landmen, Canadian Association of Petroleum Producers, Alberta Association of Surface Land Agents Associations, International Right of Way Association, and Small Explorers and Producers Association of Canada. It is also comprised of representatives of the agricultural community as represented by the Alberta Beef Producers, Alberta Surface Rights Federation, Wild Rose Agricultural Producers, and Western Stockgrower’s Association. The Alberta Energy and Utilities Board, Farmers Advocate’s Office and the Registrar of Land Agents represent the regulators. These Advisory Committee initiatives have resulted in the creation of a new class of professional Land Agents.
One of the reasons being used to amend the act is that landowners do not have access to proper representation in negotiations with oil companies. The Farmers Advocates Office was set up to provide this neutral service to landowners. Over the years there has been inadequate funding to expand this department to keep pace with the rapid growth of the oil industry. An expansion and a renewed publicity campaign to advise the public of this service would help alleviate this problem.
The Land Agent Licensing Act and Regulation was created from the Landmen Licensing Act, which in 1968, provided for the licensing of Landmen in Alberta. In 1980 the Land Agent Licensing Act came into effect replacing the Landmen Licensing Act and providing for three significant changes.
The term of the license was changed from five years to two years,
The Land Agent Advisory Committee was formed,
The waiver was revised.
In 1982 the Land Agents Licensing Regulation (AR 224/82) replaced Land Agents Licensing Regulation (AR 286/80) and provided for two classes of licenses (interim Land Agent License and Land Agent License), the establishment of an articling period and an examination for all land agents, the specifics of compliance with Section 17 of the Act, and standards of conduct. Pursuant to this Act, a person is required to have a license if engaged in any negotiation for, acquiring of, or advising for a fee in negotiations for, or acquisitions of, interests in the surface of land required for drilling and mining operations, laying of pipelines, construction of power lines, and any other purposes for which the interest in the land, in the absence of an agreement with the surface owner, may be acquired by expropriation. The Land Agents Licensing Act was enacted to benefit landowner's so that Land Agents conduct during negotiations and dealings could be monitored and reported if landowner's felt representations were not being conducted properly.
The benefits of having 1-(c)-(ii) in the Act to both Landowner's and the Oil and Gas industry, including the following:
- Landowners receive a high level of professionalism when negotiating with being represented by Land Agents
- increased awareness to qualifications such ascodes of conduct, ethics and standards
- Educational requirements including ongoing upgrading to enhance training and stay current with ever changingneeds of landowners and requirements of the regulatory agencies
- Ensure there is an understanding of the workings of the heads of compensation during negotiations
- reduce the occurrences of bad faith negotiations
- reduce the number ofunsuccessful negotiations
The following statistics outline how the industry is doing with regards to successful negotiations in the field From April 1, 2005 to April 1, 2006; the EUB approved 50,152 applications (wells, pipelines, facilities). Of this total, 47,254 applications were filed on a routine basis, meaning voluntary agreements were reached with landowners, residents, and other affected stakeholders. Less than 6% of the total number of approvals were filed on a non-routine basis, meaning that there were outstanding issues which remained unresolved at the time of application. Of these, only 22 applications were heard at a EUB hearing. The remaining applications had been resolved through further negotiation or a form of mediation.
The negative consequences that will occur if it is removed from the act:
- Unprofessional & unethical land advisors will unduly delay land negotiations causing more and more projects to be delayed forcing them into the non-routine EUB application process. This process can take several months and will result in more EUB hearings on several projects prior to a company being able to receive a well license or pipeline permit. This will overtax the existing provincially funded resources, be a considerable expense to the industry, and eventually prove certain oil and gas projects uneconomic.
- If negotiations fail as a result of an unethical land advisor, there would be no accountability or punitive measures for improper advice from unqualified advisors which will subsequently force industry to go thru a non-routine process with the EUB.
Our industry has been working on professionalism programs to assist Land Agents in attaining and maintaining the highest level of proficiency and ethical conduct. Landowners and companies are demanding ethics, professionalism, and accountability on both sides of negotiation to achieve a win-win for all involved. I am concerned that the removal of 1-(c)-(ii) will have a negative impact by undermining the efforts made to date, and hindering any efforts made in the future.
Business conducted with a high level of professionalism assists in building positive working relationships. The removal of 1-(c)-(ii) will open the door for any person to act on behalf of a landowner without them being required to act in an ethical and professional manner nor having to be accountable for their conduct. This will hinder any relationships within the communities in which industry is active, as well as any new relationships that are being built. The effect of this will cause an enormous strain on all interested parties including stakeholders, industry, regulatory bodies, and provincial resources. Timelines and the ability to contribute to the demand for our Provinces resources will be affected, which subsequently will affect the prosperity of our Province.
I strongly object to any revision to the Land Agent Licensing Act that involves the removal or revision to 1-(c)-(ii). Thank you for your consideration to this matter and I would greatly appreciate a response from you at your earliest convenience.
Signed,
XXX, Land Agent. “