Do You Own the Mineral Rights Under Your Alberta Land?

Many people who buy an acreage or farmland assume that owning the land means owning everything under it. In Alberta, that is often not the case. The surface and the minerals can be owned by different people, and it matters if an energy company ever wants to come onto your land.

This article explains who usually owns minerals in Alberta, what you own as a surface owner, how to read your title, and how to search to confirm who holds the minerals. Your own situation depends on the exact wording of your title, so a lawyer can confirm the details.

This article covers the law of Alberta.

Who owns minerals in Alberta?

The Crown (the Province) owns about 81% of Alberta's mineral rights, roughly 53.7 million hectares. The rest, about 19%, is non-Crown minerals.

One Alberta page breaks that non-Crown share into 10.6% federal Crown minerals, mainly national parks and First Nations reserve lands, and 8.4% freehold (private) minerals. Alberta's other pages break the 19% down slightly differently, so treat the split as approximate. Freehold minerals are mostly held by corporations, religious organizations or trusts, with about 10% held by individuals.

What you own as a surface owner

A surface rights 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 the use of the surface.

There is an exception. If your title carries both surface and minerals, you as the surface owner also own the minerals.

How to read your certificate of title

Your certificate of title usually tells you which situation you are in. The wording to look for depends on the type of title.

If the wording is unclear, or the title mentions only some minerals, ask a lawyer to explain what it means for you.

How to search for mineral ownership

Start by gathering the legal land description, the LINC number or the title number. Then you can search through SPIN2 or Alberta Registry for Land Online (ARLO), or request a search through a local registry agent.

• Find your legal land description, LINC number or title number on your tax notice, purchase documents or title.
• Search SPIN2 or ARLO, or ask a registry agent to search for you.
• Read the title for any mineral reservation clause.
• Note whether minerals are held by someone else and keep a copy of the result.
• If you cannot find a title, contact the Mines and Minerals Team at Energy and Minerals.

Other routes Alberta lists include an Alberta Registry Agent, the Alberta Land Titles Spatial Information System and, for lease holders, the Sales Results Map.

What owning freehold minerals means

Freehold mineral rights are private property. They can be bought, sold, leased or passed down, and agreements are managed between private parties. Freehold mineral owners pay Freehold Mineral Tax on revenue derived from production.

If you think you own freehold minerals, or you are buying land and want to know, confirm it on title first. A lawyer or accountant can then explain leases, inheritance and tax for your situation.

If a company wants to enter your land: what to do next

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 of the surface; otherwise it needs an order of the Land and Property Rights Tribunal. Alberta's guidance says that 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, and the application must include its most recent written offer and proof it 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, and if there is an objection it may hold a hearing. An order covers a specified portion of land and may carry conditions the Tribunal panel considers appropriate.

• On freehold land only, the operator must pay a legislated entry fee before entering, in addition to compensation.
• The operator must also pay 80% of the compensation offered in its written offer for the first compensation year, and cannot enter until it is paid to the owner or occupant, or to the Tribunal. Certain gas distributors, rural electricity associations and local distribution system operators are exempt from the fee and prepayment rules.
• When setting compensation, the Tribunal may consider market value, loss of use, adverse effect on the remaining land, nuisance, damage to the land and other factors it considers proper.
• Rent under a surface lease or right of entry order is reviewable, first around the 4th anniversary and then every 5th anniversary.
• The operator or any respondent named in a compensation order may appeal to the Court of King's Bench within 30 days of receiving the order.

You and the operator can also settle by signing a surface lease agreement to replace a right of entry order, or ask the Tribunal to confirm the agreement as an order. How this applies to you depends on your situation, so it is worth confirming with a lawyer before you sign anything.

• Pull your certificate of title and check for a mineral reservation clause.
• Keep any written offer, letter or notice a company sends you, with the dates you received them.
• Do not assume you must agree on the spot; ask for time to get advice.
• Speak with a lawyer about consent, compensation and any deadlines that may apply to you.

Frequently asked questions