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Mineral Rights Mineral Rights in Albertain Alberta

Alberta Energy 2004 1

Alberta Department of Energy

The Mineral Rights Context in Alberta

• Provincial Jurisdiction

• Alberta Model for Resource Development

• Role of Alberta Government

• Role of Alberta Department of Energy

• Goal of Minerals Tenure

Alberta Energy 2004

Alberta Energy 2004

Provincial Jurisdiction

By Canadian Constitution the provinces have jurisdiction over:

• Property and civil rights• Matters of local and private nature• Development, conservation and management of

non-renewable natural resources, forestry resources and electricity generation

Alberta Energy 2004

Jurisdiction as Owner

• Mines and minerals transferred to Alberta in 1930

• Alberta owns mines and minerals in 81% of land in Alberta

• Manages development of non-renewable resources as a sovereign and as an owner

Alberta Energy 2004

Role of Alberta Government

• Legislation enacted by the Legislative Assembly of Alberta

• Regulations made under that legislation

• Ministers and Ministries assigned responsibility for implementing legislation, regulations and related policies

Alberta Energy 2004

Alberta Model for Resource Development

• Principle – Alberta-owned resources can be more efficiently developed by private industry

• The role of government is to establish the framework that will attract industry to develop the province’s resources

Alberta Energy 2004

Components of Model

• Access to resources

• Fair economic return

• Effective regulatory framework

• Protection of the environment

Alberta Energy 2004

Resource Developmen

t

Department of Energy

Alberta Energy and

Utilities Board

Access to Resource Fair Return

Regulatory Approval

Ministry of Sustainable Resource Development

Ministry of Energy

Ministry of Environment

Department Sustainable Resource

Development

Surface Rights Board

Natural Resources Conservation

Board

Access to Surface

Department of

Environment

Environmental Approval

How the Alberta Government Carries Out Its Role

Alberta Energy 2004

Ministry of Energy

The Ministry of Energy is comprised of:

• Alberta Energy– Government department

• Alberta Energy and Utilities Board– Statutory corporation– Quasi judicial independence– Includes the Alberta Geological Survey

Alberta Energy 2004

Role of Alberta Energy• Minerals tenure

– Grants mineral rights to private developers for development

• Collection of mineral revenues– Royalties; Rent; Bonus Bid

• Advocates reasonable surface access– Surface access is handled through Sustainable

Resource Development, the Surface Rights Board and private contract with landowner

Alberta Energy 2004

Goals of Alberta Minerals Tenure

• To give industry the opportunity to explore and develop minerals for the greatest benefit of Albertans

• To place mineral rights in the hands of those with the interest and means to explore and develop Alberta’s mineral resources

• To make mineral rights available to others as soon as possible upon termination or expiry of an agreement

Alberta Energy 2004