Earlier this year, many rural municipalities in the province learned that energy companies wouldn’t be paying a total of $173 million in municipal taxes. Alberta’s United Conservative government has since given industry a three-year exemption from property taxes on new wells or pipelines and has lowered taxes on older wells.

Lawyer Keith Wilson, who has worked on similar disputes between industry and landowners, said the lawsuit is groundbreaking.

“It’s the first time there has been any form of class action against oil companies. It’s a real sign of the extent to which the relationship and the normal institutions that have been in place to keep peace between two critical industries are faltering.”

Alberta’s Surface Rights Board does step in to adjudicate disputes and the provincial government has a mechanism for covering unpaid leases. Freedom-of-information documents obtained by The Narwhal magazine show Alberta paid $8 million in such claims last year.

Industry repaid about $300,000 of that, the documents say.

Source: Alberta farmers file what may be first class action lawsuit over unpaid oil leases – JWN Energy