Alberta farmers intend to file what may be first class action lawsuit for unpaid oil leases – Canada News

Photo: The Canadian Press

A decommissioned pumpjack is shown in a wellhead at an oil and gas plant near Cremona, Alta., On October 29, 2016. Alberta farmers filed what may be the first class action lawsuit for leases. of oil not paid for the use of their land. THE CANADIAN PRESS / Jeff McIntosh

An Alberta farming family has filed what may be the first class action lawsuit against an energy company for failing to pay rent.

In a grievance statement filed in Calgary, Strathmore’s Reinhold and Thyla Kautz say that Calgary-based AlphaBow Energy Ltd. has reneged on a lease that compensates them for the use of their land.

In the request, which has not been tested in court, the couple said AlphaBow said in May that they would not pay the annual rent due that month.

The request states that no payment has been received since then.

Attorney Matthew Farrell says the amount owed to the Kautz family is small, but points out that the company has had relationships with hundreds of other landowners who may be in the same boat.

It is the latest sticking point for an industry struggling with low oil prices.

Earlier this year, many rural municipalities in the province learned that energy companies would not pay municipal taxes.

Attorney Keith Wilson, who has worked on similar disputes between industry and landowners, says this is the first civil class action that he is aware of.

The lawsuit has yet to be certified as a class action.

No defense statement was made and an AlphaBow spokesperson was not immediately available to comment.