Mineral Rights in Alberta: Who Owns Them on Your Property

You may have just learned that the title to your land does not include the minerals, or you are buying a property and want to know what that means. It is a common surprise, and in Alberta it is often perfectly normal.

This article explains who usually owns minerals, how to check a certificate of title, and what the split means for the person who owns the surface. For a specific property, a lawyer can confirm what your title says.

This article covers the law of Alberta.

Who usually owns the minerals in Alberta

The Crown (the Province) owns about 81% of Alberta's mineral rights, roughly 53.7 million hectares. Non-Crown mineral rights cover about 19% of the province's lands.

Within that non-Crown share, one Alberta breakdown lists 10.6% as federal Crown minerals, mainly national parks and First Nations reserve lands, and 8.4% as freehold (private) minerals. Freehold minerals are mostly held by corporations, religious organizations or trusts, with about 10% held by individuals. Figures for the non-Crown share differ slightly between sources, so treat them as approximate.

Surface rights and mineral rights are separate

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 surface use.

There is an exception. If your title carries both surface and minerals, you as the surface owner also own the minerals. Freehold mineral rights are private property that can be bought, sold, leased or passed down, with agreements managed between private parties.

How to read your certificate of title

The wording on the title tells you what you hold. Look for these patterns:

Title wording can be technical. If a clause is unclear, ask a lawyer to explain it before you rely on it.

How to search for mineral ownership

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

If a title cannot be found, Alberta directs people to the Mines and Minerals Team at Energy and Minerals. Other listed routes include an Alberta Registry Agent, the Alberta Land Titles Spatial Information System and the Sales Results Map for lease holders.

When a company needs to use your land

Mineral owners and other operators sometimes need to use the surface. 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 no operator has a right to enter until the owner or occupant gives consent, and 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 is generally the person with the right to a mineral or the right to work it, or its agent, and the term also covers certain pipeline, power line and telephone line holders. 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; 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; unless the order says otherwise, it does not give the operator a certificate of title or the right to take sand, gravel or clay.
• On freehold land only, the operator must pay a legislated entry fee before entering: the lesser of $5,000 or $500 per acre granted, with a minimum of $250 for land under one acre, 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.
• The entry fee and prepayment rules 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.

In deciding 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. Rent under a surface lease or right of entry order is reviewable, and if the parties cannot agree, either may apply to the Tribunal. 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, and notice of appeal must be filed within 30 days of receiving the order. Parties can also settle by signing a surface lease agreement to replace a right of entry order.

What to do next

• Get a current certificate of title for the property.
• Check whether it has a mineral reservation clause.
• Note any separate mineral title through a registry search.
• Keep any written offers or notices from a company that wants access to your land.
• Remember freehold mineral owners pay Freehold Mineral Tax on production revenue.
• Ask a lawyer before you sign a purchase agreement or a surface lease if the minerals matter to you.

Frequently asked questions