Freehold Mineral Tax
Your family may own freehold mineral rights if they settled in Alberta in the late 1800’s or early 1900’s. Originally taxes were paid through acreage property taxes, but the 1983 Freehold Mineral Tax legislation changed the tax to be based on production revenue.
Freehold Mineral Tax is:
- An annual tax on petroleum and natural gas mineral rights within provincial boundaries, not owned by the Government of Alberta.
- Assessed on revenue derived from production from freehold oil and gas properties.
- Assessed annually based on calendar year production.
- Levied on each owner of a petroleum or natural gas mineral right as shown on the estate fee simple Certificate of Title.
Yearly FMT Cycle
Data is gathered on producing oil and gas wells on freehold lands from January to December.
Industry calculates and reports unit values on freehold properties with producing wells. If there are no industry submitted values, Crown calculated default values are used in the tax calculation.
*These are legislated dates.
- The current Freehold Mineral Tax
legislation was introduced in 1983
- Monies received go to the Province’s General Revenue Fund.
- On average, the tax levied is 4 per cent of revenues reported from freehold properties.
- Tax is calculated annually on calendar year production collected in March of the following calendar year. Payment of the tax is due April 25.
- From 1973 to 1982 the tax was assessed based on reserves.
- The tax has been levied since 1938, from 1938 - 1972 the tax was an acreage tax, assessed on petroleum, natural gas, coal and salt. Since 1973 coal and salt are no longer taxed. The tax was introduced to provide freehold monies for the province’s regulatory body, the Alberta Energy Regulator (AER).
Freehold Mineral Tax Guides
These Unit Value Guides in PDF have been updated to clarify revenue and allowable costs. We encourage you to refer to these when calculating your unit values.
Freehold Mineral Tax Enhanced Oil Recovery Program Guide for the enhanced oil recovery (EOR) program.
- Historical statistics are available for Net Tax Levied, Freehold Wells, and Freehold Production.
The Land Titles Office registers freehold mineral ownership rights in Alberta.
The Freehold Owners Association (FHOA) is a federally-incorporated, non-profit corporation registered to operate in Alberta, Saskatchewan and Manitoba that acts as a common voice in the interests of freehold owners.
The Farmers' Advocate is available for public information meetings on subjects such as surface rights, seismic activity, mineral leasing, trespass and other topics that may be of concern to the agricultural community.