Terminations & Reversions

The first stage of our review process is to identify those leases, if any, that are not producing leased substances and are, therefore, potential termination candidates. PrairieSky Royalty will also confirm the extent to which active leases are continuing beyond their primary term.

The first stage of our review process is to identify those leases, if any, that are:

1. not producing leased substances and are, therefore, potential termination candidates; and

2. confirm the extent to which active leases are continuing beyond their primary term.

Lessees will be advised in writing of the outcome of this review. Lessees who disagree with our assessment of lease termination or rights reversion will be given the opportunity to present technical data in support of their position by completing and submitting a Technical Review Request Form. This document can be completed and printed online.

Upon lease termination, unless PrairieSky Royalty elects to take over the well(s), lessees are required by the terms of their leases to properly abandon all wells on the lands in accordance with applicable laws and regulations, in a manner satisfactory to the regulatory authority (i.e. the Alberta Energy Regulator (AER)). Any abandonment notices we send to lessees will be copied to the AER as a matter of course and the AER may choose to take further action at its sole discretion.