Join Date: Oct 2007
Location: South Central Alberta
Mentioned: 0 Post(s)
Quoted: 52 Post(s)
Encana always sends out a lease renewal in the mail after you send in a request for a rent review. At least the last few years. Here the values have not gone up much. Annual rent is based on loss of use (bushels X $/bushel) and adverse affect from farming around the well which has gone up about $200-400.
In Alberta cost of production has nothing to do with the loss of use portion, it is just gross dollars. Machinery, labor and fuel affect the adverse portion, but it is very hard to calculate and prove in front of a review board.
Because yields and prices have been high for a while that value is not going to change much. Pasture land should show more value with high beef prices.
Last edited by bud; 12-23-2014 at 04:32 PM.