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The Rural Voice, 1978-10, Page 461 1 Oil leases profitable , Perth F of A hears Farmers can reap benefits by allowing oil exploration teams on their property but should be aware of whotheyredealing with and what they're getting into before signing any agreements. That was the word Perth County Federation of Agriculture members received in Mitchell. Two speakers addressed the farmers on the issue of oil exploration in the county as it pertains to the rural community. O.F.A. director AlbinKormos went over what farmers should look out for when signing a mineral rights lease with an oil or gas firm. Mr. Kormos said the OFA has been studying the issue on the committee level for several months now and has been pressuring the Ontario Petrolium Institute to come up with a standard lease agreement for farmers. "Its quite easy to lose track of. just who is the lessor and the Jessie and what your leasing to whom!" he said. Mr. K ormos stressed that the farmer should never be worse off than before he signed the lease. Mr. Kormos said that although it doesn't happen often. sometimes farmers sign with a firm which is here today "maybe in Texas tomorrow". Get familiar with the people and the company because if your signing with Young farmers in farrow show at Royal 2 • This year, a record number of swine have been entered in the sixth annual Ontario Performance Tested Junior Barrow 4 Show which will be held at the Royal Agricultural Winter Fair. Young farmers have entered 173 swine in the show which will be held on Youth „Day, November 9. • There are 45 contestants between the ages of 14 and' 20 who will be entering swine in the competition. Jane Robinson, R.R.4, Walton and Scott Robinson of the same address will be presenting Huron County in the barrow show. Perth County has four young farmers entering the competition. They are Glen and John Drummond of R.R.5, Mitchell x and Gina Henderson, R.R.1, Atwood and Paul Nairn, R.R.7, St. Marys. • The lone competitor from Bruce County ? is Steve Foerster, R.R.3, Mildmay. a This year Simcoe tops the list of 12 ' counties participating with 13 competitors, f• ollowed by Elgin and Middlesex Counties. • The judge for this year's event is Angus E. Campbell of Iona Station. y Last year's Grand Champion Junior E Barrow winner was John Woodhouse of Clarksburg, Grey County and he received S3 a pound live weight for his entry PG. 46 THE RURAL VOICE/OCTOBER 1978 them you are selling away some of you mineral rights. "Don't be in a hurry, its (oil and gas) been down there for several million years ,it won't be gone tomorrow." Farmers should find out what is a reasonable price and acceptable terms and sign nothing without the consent of a lawyer. Jack Norman. President of ELEXCO (Eastern Land Exploration Company), gave the federation members the oil company's side of the story. According to Norman the oil companies began explorations in Huron and Perth Counties a few years ago as a result of some big finds on the west side of Lake Huron in Michigan state. The exploration companies feel there is a good chance that the Lake Huron basin might extend into some parts of Western Ontario. Sizable amounts of natural gas have already been found in Lambton County. To make exploration economical the oil firms must attain the rights to large blocks of land before bringing the sysmic .crews to take test readings of the earth. "It costs between 4 and $6000 per kilometer and Shell shot about 1500 kilometers here last year . . .so we're talking alot of dollars." Mr. Norman stressed that even when a company feels there's a good chance of striking oil or gas that 3 out of every 4 holes in western Ontario is dry. "When it comes to signing any agree- ments" Its important to deal with a tepu;ab le company he said. Mr. Norman said that although OFA would like to see a standard lease to be used by all companies that "they don't all work the same" so a standard lease that pertains to one might not pertain to the workings of another oil company. "It comes down to this", he said, " a standard lease versus a standard price." One farmer asked if the price was not negotiable. Mr. Norman agreed that technically it was, however "if there isn't a standard price it gets hostilities built up among farmers and thats not what the oil companies trying to do.' The price most commonly agreed upon in this area is $1 per acre on a 10 year lease that would see the farmer receive 12'% per cent of the profits if oil or gas is discovered. The lease should also contain a "com- pensation and restoration clause" that will see the farmer paid for any crop damage, fence repair, or any other inconvenience resulting because the exploration teams have been on his land. [ HOMELITE° BIG Plowing Match CHAIN SAWS SAVINGS HOMEL.ITE SUPER XL -130 on Display at MAPLE LEAF SMALL ENGINE 482-3722 Sales & Service 286 Huron St., (opposite Elm Haven) Clinton, Ont.