RMA Targets Oil and Gas Companies

RMA Targets Oil and Gas Companies

Michelle Pinon - News Advertiser

Rural Municipalities of Alberta, (RMA) is once again raising the alarm about oil and gas companies not paying their unpaid property taxes.

RMA, an advocacy group that represents 69 municipalities in the province, stated in a March 8 news release that $253 million in property taxes is currently owed to municipalities by oil and gas companies.

Call GusCounty of Minburn Chief Administrative Officer, (CAO) Brent Williams said that since 2016 the municipality is owed more than $4 million in unpaid taxes from the oil and gas sector. “The current arrears are approximately $400,000. And this amount is owed by companies that continue to operate.

Another significant issue is that these delinquent companies are also not paying their surface lease/rent to landowners where wells are located.”

Williams said the overall financial impact of these unpaid taxes has been significant to the County, resulting in scaling back capital programs and delay infrastructure upgrades, with the intent of maintaining core service levels.

“The efforts made by the province have not been effective at making these operating, but delinquent companies, to pay their property taxes. In short, there are no consequences should an oil/gas company simply prefer to not pay its taxes. Whereas homeowners, farmland, and business owners face very real consequences for the same behavior.

The only viable option is for the province to tie oil and gas companies’ licenses to operate to the payment of both property taxes and surface leases. For some unknown reason, the province does not wish to do this.”

Oilfield site located near Mannville.

(Michelle Pinon/Photo)

Total outstanding taxes oil and gas companies owe Lamont County is $1.3 million, and Smoky Lake County is owed $1,598,365.08.

Beaver County is currently owed $1,319,277.48 and the municipality has written off $1,668,734.71 since 2015. According to a survey Beaver County completed for RMA in February, 2022, it stated: “It appears that many agricultural landowners are not receiving surface access agreement payments. Beaver County has no authority to address this matter. The Farmers Advocate and Surface Rights Board are playing a role in this issue.”

Non-payment of surface access agreements was discussed at Beaver County council’s March 2 meeting. Division 4 Councillor Barry Bruce said one problem probably affecting every single Albertan are electricity and heating bills. Bruce said one of his ratepayers’ monthly heating bill was $700 and that he had two gas wells on his property and hasn’t been paid in five years. “These energy companies are making off like bandits and I agree with him,” noted Bruce.

There are a few oil and gas companies that are making efforts to pay their outstanding taxes. Council debated a request from Long Run Exploration, a natural gas producer in Beaver County, which asked to make payment arrangements with the municipality.

Long Run’s proposal is for a two-year agreement with both past and future penalties waived during the period of repayment. The tax payment agreement is only for the tax levy owed (approximately $860,000) and includes municipal, school, Beaver Foundation, and Designated Industrial Property taxes. They have indicated that in addition to monthly payments on the arrears, future taxes will be paid on time.

Council passed a motion requiring a lump sum payment of all property tax arrears and confirmation that surface leases are up to date with landowners. Additionally, council indicated that it is prepared to enter into negotiations regarding a tax payment agreement for 2022 property taxes.