Pay up or you can’t use our roads

BARRHEAD-A County of Barrhead councillor suggested road-use agreements or rather the lack of one could be one-way municipalities could force companies, especially those in the energy sector, to pay their linear property taxes.

Coun. Darrell Troock suggested during May 19's council meeting, held via teleconference, that the municipality should withhold or pull the road-use agreements of any company that was not willing to work with them paying in their taxes that are in arrears.

He made the suggestion saying he was frustrated that the municipality had little to no recourse for companies, mostly in the energy sector, who refuse to make any attempt to pay their municipal linear property taxes.

It is estimated that the county is owed upwards of $1 million in linear property taxes by multiple energy companies.

She noted that one company that the municipality had entered into a tax instalment agreement stopped paying in January 2020.
"They are no longer returning our calls," she said.

Oyarzun noted municipalities had little leverage, saying recent court decisions left them at the bottom of the totem pole when it came to collect owed taxes.
"Then why don't we tear up their road-use agreements until they pay up," Troock said. "Let's force their hand and stop them from doing business."

Oyarzun responded they have had discussions with their legal team and they said that wasn't an option.

"We could have them put down a security payment, but it would only be good for the road-use agreement and not any taxes owed," she said.

However, Oyarzun added that is likely no longer an option.

"Because of COVID, the province has withdrawn our authority for road bans because energy companies are considered an essential service," she said. "Right now energy companies don't need an agreement to use our roads."

Troock emphasized he fully supported oil companies and reiterated that municipalities needed to work with them.

"[They] need to sit down at the table with us, explain that they are going through tough times and tell us it might be two years until they can pay taxes. I can understand that and we are willing to work with them," he said. "But to ignore us, you are a bad debt. If they don't talk to us then they are not leaving us with any other option than to try to shut them down."

Barry Kerton, TownandCountryToday.com

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