Freehold does not have any employees. Under a Management Agreement, Freehold's assets are managed by the employees of Rife Resources Ltd. (Rife). Rife is a private oil and gas company that has been in operation for over thirty years.
Governance and Ethics
The Governance, Nominating and Compensation ("GNC") Committee establishes the company's governance principles and practices and reviews corporate policies, including our Code of Conduct and Conflict of Interest Policy. Rife employees and consultants are required to adhere to Freehold's Code of Conduct and are expected to conduct business with integrity and high ethical standards. The GNC Committee monitors the performance of the Manager on an ongoing basis.
EnvironmentAL, SOCIAL and GOVERNANCE
A detailed description of Freehold's corporate reporting initiatives and a discussion of environmental, social and governance issues are contained in Freehold's 2019 Environmental, Social and Governance (ESG) Report.
Environment, Health and Safety
Most of Freehold's assets are royalties operated by third parties. While the environmental liability, health and safety and other risks arising out of these operations are not typically direct risks for Freehold, as a royalty company, our business model is dependent on the industry operating in a responsible manner. There are thirty companies that account for approximately 80% of Freehold's oil and gas royalty revenue stream. Many of these companies are large Canadian producers that are members of the Canadian Association of Petroleum Producers (CAPP) and align their operations with industry best practices.
Freehold also owns working interests in oil and natural gas properties. We are liable for our share of ongoing environmental obligations and for the ultimate reclamation of our working interest properties upon abandonment. Our working interest assets represent less than 1% of our total operating income and less than 2% of total production. Environment, health and safety falls under the responsibility of Rife as Manager of Freehold’s assets. Rife has a comprehensive program that includes policies and procedures designed to protect the environment and the health and safety of its employees, contractors, and the public. Rife assesses Freehold’s environmental, health and safety liabilities through pre-acquisition assessments, periodic assessments, and audits. Environmental, health and safety exposures are tracked and addressed with short and long term initiatives.
Freehold has a profitable niche of owning oil and gas royalties, including certain mineral titles that are held in perpetuity. The foundation of Freehold's successful business model is a commitment to long-term sustainability. As our assets are mainly royalty assets, we have low capital requirements. When pursuing acquisitions, we focus on properties that can offer an attractive rate of return on our investment.
Freehold supports not-for-profit organizations addressing education, health and community services focused on the needs of children and families.