Trespass & Conversion
In the course of our review for terminations and reversions, we anticipate that we may encounter instances where lessees appear not to have complete rights to produce leased substances from PrairieSky Royalty’s lands. Insufficient rights to produce may encompass trespass into formations not included under lease or incomplete control of the applicable drilling or production spacing unit.
When these situations are encountered, we will advise lessees by issuing a Trespass Notice or Notice of Incomplete Mineral Rights (conversion). In cases of trespass and conversion, the value of any PrairieSky Royalty owned production will be included in the calculation for purposes of restitution. In addition, a fee of $50,000 may be assessed as a bona fide estimate of our cost to identify, monitor and rectify instances of trespass and conversion.
Lessees will have the opportunity to present information to refute the validity of any notices they receive.