In June 2007, the government-mandated Alberta Energy and Utilities Board admitted that it had hired private investigators to spy on landowners who opposed the construction of a major power line in the Rimbey area.
 Stelmach initially downplayed the incident, but ordered a judicial investigation once the province's Information and Privacy Commissioner initiated an investigation of his own.
This investigation found that the EUB had violated provincial law and infringed on the landowners' privacy, while the judicial investigation criticized the EUB's tactics as "repulsive".
The opposition parties called for the dismissal of the entire EUB and Energy Minister Mel Knight; Stelmach instead opted to appoint a new EUB chair.

Stelmach's government also responded with legislation entitled the Alberta Utilities Commission Act (Bill 46), which would split the EUB into two parts: the Alberta Utilities Commission (responsible for regulating utilities) and the Energy Resources Conservation Board (responsible for regulating oil and gas).
The legislation was controversial, as elements of the EUB's governing legislation that provided for public notice and consultation in the event of energy construction projects were left out.
Opposition parties and advocacy groups charged that this was an assault on both landowners' rights and the environment.
The legislation ultimately passed, and took effect at the beginning of 2008.

Stelmach clashed with rural landowners again in 2009 when his government introduced the Land Assembly Project Area Act, designed to make it easier for the government to acquire large blocks of land for public purposes such as ring roads or reservoirs.
The Act allowed the government to identify land that it may be interested in expropriating at some point in the future and to indefinitely prohibit any development on that land that could conflict with the government's purposes.
Despite vigorous opposition from landowners and the opposition parties, the bill passed the legislature in late April.
In June 2007, the government-mandated Alberta Energy and Utilities Board admitted that it had hired private investigators to spy on landowners who opposed the construction of a major power line in the Rimbey area.  Stelmach initially downplayed the incident, but ordered a judicial investigation once the province's Information and Privacy Commissioner initiated an investigation of his own. This investigation found that the EUB had violated provincial law and infringed on the landowners' privacy, while the judicial investigation criticized the EUB's tactics as "repulsive". The opposition parties called for the dismissal of the entire EUB and Energy Minister Mel Knight; Stelmach instead opted to appoint a new EUB chair.
Stelmach's government also responded with legislation entitled the Alberta Utilities Commission Act (Bill 46), which would split the EUB into two parts: the Alberta Utilities Commission (responsible for regulating utilities) and the Energy Resources Conservation Board (responsible for regulating oil and gas). The legislation was controversial, as elements of the EUB's governing legislation that provided for public notice and consultation in the event of energy construction projects were left out. Opposition parties and advocacy groups charged that this was an assault on both landowners' rights and the environment. The legislation ultimately passed, and took effect at the beginning of 2008.
Stelmach clashed with rural landowners again in 2009 when his government introduced the Land Assembly Project Area Act, designed to make it easier for the government to acquire large blocks of land for public purposes such as ring roads or reservoirs. The Act allowed the government to identify land that it may be interested in expropriating at some point in the future and to indefinitely prohibit any development on that land that could conflict with the government's purposes. Despite vigorous opposition from landowners and the opposition parties, the bill passed the legislature in late April.
Ed Stelmach