Importance of giving support to FHOA

This is a copy of a news article- the ending portion, and shows how FHOA is all voluneers, and needs the membership fees we provide. A lawsuit had ensued, and this was the outcome.

Implications

I

in FHOA’s view, challenging the validity of a

CAPL 88 or 91 freehold lease being continued

beyond the primary term under the Suspended

Wells clause with a well which is not capable of

meaningful production may now be as simple as

writing a letter to the lessee setting forth the

particulars of the well’s production and

requesting the removal of the caveat protecting

the lease with copies to the ERCB’s Compliance

Department requesting well license cancellation.

The importance of Justice Conrad’s ruling to

freehold owners cannot be overemphasized.

Following the 2009 ERCB decision, an article

published in the Negotiator (the magazine of the

CAPL) asserted that the decision impacted

"thousands (if not tens of thousands) of leases and

wells"

and encouraged Omers to appeal. The

Court’s affirmation of the ERCB decision clearly

benefits a great many freehold owners. It also

demonstrates how critical it is for freeholders to be

represented in regulatory and judicial hearings

dealing with freehold minerals - it was FHOA that

introduced American case law and argued that

leases were for the mutual benefit of the parties.

Although the decision represents a major step

forward in FHOA’s quest for greater fairness for

freeholders, there are many steps remaining to be

taken and interventions are expensive. We urge

readers to continue to support FHOA with

membership fees and donations.