The Coal and Mineral Development Unit of the Department of Energy issues and
administers agreements relating to exploration and production of Alberta-owned
(Crown) coal. Basic information about these agreement types is summarized
There are two types of coal leases in Alberta:
Coal Lease: A coal lease has a 15 year term and is renewable. It
grants the exclusive right to work, win and recover coal in the described
location. Depending on the circumstances, a successful coal lease application
may lead to an agreement being issued directly to the applicant, or may result
in competitive bidding (land sale.) A coal lease does not include the rights to
the coal in any road allowances.
Coal Lease in a Road Allowance: A coal lease in a road allowance has
a 15 year term and is renewable. It grants the right to the coal in a road
allowance. This type of lease is required before mining through a road
allowance. It is only available to the holder of a mine permit or license in
that location. Mine permits and licenses, which provide approval to develop or
mine coal, are issued through the Alberta Energy Regulator (AER) under the Coal
The basic requirements of holding a coal lease are payment of annual rent
($3.50 per hectare or $50.00) and payment of royalties on Alberta-owned coal produced from the lease location.
Coal leases are also subject to the following legislation and policies:
following instructions pertain to coal leases and coal leases in road
Annual rent on a coal lease is due annually, on or before the lease
anniversary date. Rent may be paid by cheque or pre-authorized debit, see Coal
Payment of royalties
If coal is being produced from the location of a lease, royalty reports and
payment must be submitted to Alberta Energy in order to keep the lease in good
Amending a coal lease
A lessee or their designated representative may request changes to a lease,
such as changing the ownership of an agreement or reducing the area of the
- A change of ownership of an agreement is administered by Alberta Energy's Transfers and Encumbrances Unit. This may be done online through the E-Transfers service on this site (see Online Services) or by submitting a completed Coal Form.
- For further instructions on manually requesting a change of ownership, please refer to the Transfer Form Guidelines
- Changes to the area of an a lease may be requested in writing to the Coal and Mineral Development Unit. The surrendered lands will become available to others within 48 hours of receiving a surrender request.
Applying to renew a lease
Application to renew should be received by the Department within the last 30
days of the term of the 15 year term of the lease. A letter requesting renewal
should be submitted, along with the application fee $625.00 and the next year's
rent, to the Coal and Mineral Development Unit.
Surrendering a lease
To request cancellation of a lease, please send a written request to the Coal
and Mineral Development Unit. The surrendered lands become
available once the Department has processed the cancellation to release the
lands. At that time it will show on the Coal Activity Map as available.