Can an Oil or Pipeline Company Enter Your Land Without Permission in Alberta?

You may own farmland or an acreage and get a letter from a company that wants to drill, lay a pipeline or run a power line. It is natural to wonder whether they can simply show up. In Alberta, the short answer is that they generally need your consent or a formal order first.

This article explains how right of entry works under the Surface Rights Act: who counts as an operator, what the Tribunal can order, what the operator must pay, and how you can challenge or settle. Rules change, so confirm details against the latest consolidation of the Act and speak with a lawyer about your own situation.

This article covers the law of Alberta.

Who owns what under your land

Owning the surface is not the same as owning the minerals. A surface owner owns the surface and substances such as sand and gravel, but not the minerals. The mineral owner may explore for and recover minerals, but must do so reasonably so as not to significantly affect surface use.

An operator under the Act is generally the person with the right to a mineral or the right to work it, or that person's agent. The term also covers certain pipeline, power line and telephone line holders.

Consent comes first, then the Tribunal

Under the Surface Rights Act, an operator may not enter the surface for specified purposes until it has the consent of the owner and the occupant. Otherwise it needs an order of the Land and Property Rights Tribunal. Alberta's guidance says the same: no operator has a right to enter until the owner or occupant consents, and if consent is not obtained the Tribunal may grant a right of entry order for activities such as pipelines, power or telephone lines, and mining or drilling.

An operator that cannot get consent must apply to the Tribunal. The application must include its most recent written offer and proof that the offer was refused.

• The Tribunal may grant an order without a hearing if the respondents file a consent letter, or if at least 14 days have passed since service of the notice and application.
• If there is an objection, the Tribunal may hold a hearing.
• If you receive a notice, read it carefully and note the dates, because silence can allow an order to be granted.

What a right of entry order does and does not give

An order covers a specified portion of land and may carry conditions the Tribunal panel considers appropriate. Unless the order says otherwise, it does not give the operator a certificate of title or the right to take sand, gravel or clay.

If you and the operator agree on terms, you can sign a surface lease agreement, which includes right of way agreements and easements, to replace the order and then request termination of the order. You can also ask the Tribunal to confirm the agreement as an order.

Entry fee, prepayment and compensation

There are exceptions. The entry fee and the 80% prepayment do not apply to certain gas distributors, certain rural electricity associations and local distribution system operators exempted by regulation, and orders made before July 4, 1983 are also exempt.

When setting compensation, the Tribunal may consider market value between a willing seller and willing buyer, loss of use, adverse effect on the remaining land, nuisance, damage to the land and any other factors it considers proper. It may also award interest at the Bank of Canada rate.

Appeals, rent reviews and unpaid amounts

The operator or any respondent named in a compensation order may appeal to the Court of King's Bench on the amount or the payee. Notice of appeal must be filed within 30 days of receiving the order.

Rent under a surface lease or right of entry order is reviewable. The operator gives notice on or within 30 days after the 4th anniversary and then every 5th anniversary. If the parties cannot agree, either may apply to the Tribunal.

If compensation under a surface lease goes unpaid, the Tribunal has enforcement powers, and for that purpose the word operator is defined more broadly, including successors and agents.

What to do next

• Keep every letter, offer and notice, and record the date you received each one.
• Find out whether you are the owner, the occupant or both, since both consents matter.
• Check your certificate of title so you know what you own.
• Note the date any notice was served on you, and diarize the 30-day appeal period that runs from receiving a compensation order so you do not miss it.
• Confirm the current Act and the Tribunal's procedures, since it was previously named the Surface Rights Board.
• Talk to a lawyer before you sign a surface lease or accept an offer.

Frequently asked questions