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The first stage of our review process is to identify those leases, if any, that are:
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 (Word). This document can be completed and printed online.
Upon lease termination, unless Encana elects to takeover 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 Energy Resources Conservation Board (ERCB)). Any abandonment notices we send to lessees will be copied to the ERCB as a matter of course and the ERCB may choose to take further action at its sole discretion.
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 Encana's lands. Insufficient rights to produce may encompass trespass into formations not included in the demised estate 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 Encana-owned production will be included in the calculation for purposes of restitution. In addition, a fee of $50,000 will 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.