Rentals and Taxes

Annual rental payments are due and payable during the Primary Term of the lease and in each year the lease is continued beyond the Primary Term. Some lease forms have a shut-in clause in place of a rental clause that requires the Lessee to pay a shut-in payment if production stops post-Primary Term.

Taxes payable by the Lessee include Freehold Mineral Taxes (Alberta), and Mineral Acreage Taxes (Saskatchewan). To maintain good standing and avoid enforcement action, the Lessee must reimburse Heritage for the percentage share of taxes specified in the lease.