Nate Horner Ranches Ltd. and the system the Auditor General called out in 2015
The Crown grazing lease arrangement
Nate Horner Ranches Ltd. holds Crown grazing leases in southeast Alberta. Crown grazing lease holders are entitled, under the Surface Rights Act, to compensation when oil and gas operations occur on the lease — payable by the operator of the well. The compensation is intended to offset disruption to grazing operations.
According to reporting by The Narwhal, drawing on Land and Property Rights Tribunal records and corporate filings, Nate Horner Ranches Ltd. has received approximately $100,000 to $124,000 per year from oil-and-gas operators on the Crown grazing leases it holds.
The taxpayer-funded portion
When an oil-and-gas operator defaults on its compensation obligations, the Land and Property Rights Tribunal can order payment from the public purse. Public funds then continue paying the lease holder while the regulator and the Orphan Well Association attempt to recover the costs from a corporate entity that, by definition, has stopped paying its bills.
According to the same Narwhal reporting, Nate Horner Ranches Ltd. has received approximately $87,246 in LPRT-ordered taxpayer compensation since 2021, of which approximately $47,200 relates to the Crown grazing leases. The majority of those payments cover defaulted obligations of AlphaBow Energy Ltd., a producer that was licensed by the Alberta Energy Regulator to acquire wells, was subsequently suspended, and whose remaining liabilities were transferred to the Orphan Well Association.
What the Auditor General said in 2015
The Office of the Auditor General of Alberta, in a 2015 report, flagged the exact pattern. The report noted that Crown grazing lease holders can derive "unquantified personal financial benefit" from oil-and-gas activity on Crown land at public expense, and recommended legislative reform. That recommendation has not been implemented in the eleven years since it was issued.
The colloquial term used by critics — cowboy welfare — predates this government and is not specific to the current Finance Minister. It is a term applied to the system. Nate Horner is not the first lease holder to benefit from the system, and he will not be the last. He is the Minister of Finance of the government that has the legislative authority to reform the system.
The Minister's response, on the record
The Minister's holdings in Nate Horner Ranches Ltd. are, according to a statement provided to The Narwhal by press secretary Marisa Warner, held in blind trust. Blind trust arrangements are intended to ensure a minister has no awareness of, and exercises no control over, the day-to-day operations of the trust's holdings during the trust's existence.
The Minister has not, to the public knowledge, recused himself from cabinet decisions concerning the legislative framework that governs Crown grazing leases or oil-and-gas surface rights compensation. The legislative framework is the responsibility of the Minister of Energy; the public-purse implications fall, ultimately, within the responsibilities of the Minister of Finance.
The scale of the system
The Narwhal's reporting situates Horner Ranches within a wider pattern: more than $5 million has been paid to ranchers in three eastern-Alberta counties since 2021 through LPRT-ordered taxpayer compensation. The system, as the Auditor General said in 2015, does what it does whether or not anyone is paying attention. It is no longer the case that no one is paying attention.