The Saskatchewan Potash Prorationing Scheme

Authors

  • William F. Ready, Q.C.

DOI:

https://doi.org/10.29173/alr538

Keywords:

Energy Law, Petroleum Law

Abstract

The purpose of oil and gas conservation legislation is the prevention of waste and the protection of correlative rights. The oil and gas lawyer is fami liar with these reasons as the basis of oil prorationing, but when one turns to the problem of potash prorationing, it can readily be seen that the correla tive rights purpose is not applicable since potash, being hard rather than fugacious mineral, does not migrate across property boundaries. As such, the problem arises whether potash prorationing can be justified on the basis of prevention of waste, both physical and economical, in situation where over production of potash leads to cutthroat competition, to an uneconomic price for potash, to highgrading and other wasteful mining practices and to the possibility of closing of potash mines. This article discusses the Saskat chewan Potash Conservation Regulations as of June, 1970, and concludes with the observation that producer who wished to challenge the validity thereof may "win the battle but lose the war."

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Issue

Vol 9, No 3: Petroleum Law Supplement: Selected Matters of Current Interest to the Oil and Gas Industry

Section

Articles

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