- On freehold land only, an Alberta operator must pay a legislated entry fee before entering, and separately it must pay 80% of its offered first-year compensation before it can enter.
- The Land and Property Rights Tribunal weighs several factors when setting compensation, and rent is reviewable starting at the 4th anniversary and then every 5th anniversary.
- An order about compensation can be appealed to the Court of King's Bench within 30 days of receiving it.
If an oil, gas, pipeline or power line company wants to use part of your land, Alberta's Surface Rights Act sets out what you can be paid and how you can challenge it. Many landowners only learn about these rules after the first offer arrives, so it helps to know the basics early.
This article walks through the entry fee, the prepayment, how compensation is decided, rent reviews, appeals and enforcement. It is general information, not advice on your situation. The Land and Property Rights Tribunal was previously called the Surface Rights Board, so older documents may use that name.
This article covers the law of Alberta.
Who is the operator, and when can they enter?
Under the Surface Rights Act, an operator 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.
An operator may not enter your land for specified purposes until it has the consent of the owner and the occupant, or an order of the Land and Property Rights Tribunal. If it cannot get consent, it must apply to the Tribunal, and the application must include its most recent written offer and proof that the offer was refused.
The entry fee and the 80% prepayment
On freehold land only, the operator must pay a legislated entry fee before entering. It is the lesser of $5,000 or $500 per acre granted to the operator, with a minimum of $250 for land under one acre. It is paid per titled unit and is in addition to compensation. The entry fee does not apply to Crown land.
The operator must also pay 80% of the compensation offered in its written offer, for the first compensation year. It cannot enter until that amount is paid to the owner or occupant, or to the Tribunal.
There are exceptions. 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.
How compensation is decided
When the Tribunal sets compensation, it may consider the following factors, along with any others it considers proper:
- Market value between a willing seller and a willing buyer.
- Loss of use of the land.
- Adverse effect on the remaining land.
- Nuisance.
- Damage to the land.
The Tribunal may also award interest at the Bank of Canada rate. Because each property is different, the weight given to each factor depends on your facts, and a lawyer or land agent can help you review an offer.
Rent reviews, appeals and enforcement
Rent under a surface lease or right of entry order can be reviewed. The operator gives notice on or within 30 days after the 4th anniversary, and then every 5th anniversary. If the parties cannot agree, either one may apply to the Tribunal.
If you disagree with a compensation order, the operator or any respondent named in it 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.
If compensation under a surface lease goes unpaid, the Tribunal has enforcement powers. For that purpose, operator is defined more broadly and includes successors and agents.
| Issue | What the law provides |
|---|---|
| Rent review | Notice at the 4th anniversary, then every 5th anniversary; Tribunal application if no agreement |
| Appeal | Court of King's Bench, within 30 days of receiving the order |
| Unpaid compensation | Tribunal enforcement, including against successors and agents |
Settling by agreement
You do not have to go through a full order process. The parties can sign a surface lease agreement, including a right of way agreement or easement, to replace a right of entry order, and then request termination of the order. Alternatively, they can ask the Tribunal to confirm the agreement as an order.
What to do next
- Keep every written offer, notice and order, and note the date you received each one.
- Check whether your land is freehold or Crown, since that affects the entry fee.
- Confirm the entry fee and 80% prepayment were paid before anyone entered.
- Diarize the 4th anniversary and each 5th anniversary after it for rent review.
- Mark the 30-day appeal deadline as soon as you receive an order.
- Get legal advice before signing an agreement or responding to an offer.
Frequently asked questions
Do I get an entry fee if my land is Crown land?
No. The entry fee applies to freehold land only, not Crown land. Compensation under the Act is a separate matter.
Is the entry fee paid instead of compensation?
No. The entry fee is payable in addition to compensation. The operator must also prepay 80% of the compensation it offered for the first year before entering.
How long do I have to appeal a compensation order?
Notice of appeal to the Court of King's Bench must be filed within 30 days of receiving the order. Because the deadline is short, speak to a lawyer promptly.
What if the operator sells and the new owner stops paying?
The Tribunal has enforcement powers over unpaid compensation under a surface lease, and for that purpose operator includes successors and agents. A lawyer can confirm how this applies to your situation.
Sources
- King's Printer Alberta – Surface Rights Act (S-24) — kings-printer.alberta.ca
- Alberta.ca – Right of entry orders — alberta.ca
- Alberta.ca – Right of entry compensation — alberta.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
This is a real estate question
Ask our Team for a quote. We reply by email.