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 Taxexternal link icon 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.

Arrow graph of Annual Freehold mineral tax cycle

History:

  • The current Freehold Mineral Taxexternal link icon 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 Regulatorexternal link icon (AER).Pie chart illustrating Freehold land that is subject to tax

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. 

2017     2016     2015     2014     2013      2012    

Freehold Mineral Tax Enhanced Oil Recovery Program Guide for the enhanced oil recovery (EOR) program.

Related Resources:

  • Historical statistics are available for Net Tax Levied, Freehold Wells, and Freehold Production.
  • Subscribe to Information letters (ILs) for email notices about regulatory changes and interpretations, including those affecting freehold mineral rights.

  • The Land Titles Officeexternal link icon registers freehold mineral ownership rights in Alberta. 

  • The Freehold Owners Associationexternal link icon (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' Advocateexternal link icon 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.

Freehold Mineral Tax Frequently Asked Questions

General Tax Information

How is the tax calculated?
Where can I get more information?

Tax Statement Information

Who receives tax statements?
How do I retrieve statements from ETS?
If no taxes or less than $100 is owing will I still be sent a statement? Is there an exemption?
I didn’t receive a tax statement, what do I do?

FMT Roles

What are the roles?
What roles do I have?
Who can transfer roles and how do I transfer?
How are FMT roles assigned?
I received a “FMT Role Assignment” email, what is this and what does this mean?
I’ve been assigned an FMT role and I should not have been, what do I do?
I need to transfer all my roles. What order should I do them in/which ones can be transferred together?

Owner Information

How do I find out if the tax has been paid?
How do I update my address or transfer my Certificate of Title?

Payor Information

Where and How do I pay the taxes?
What do the following terms mean? Summary of $0 Tax Payable, Payor Tax Summary and Statement of Account.
If I only owned the mineral rights for a portion of the year, who is responsible to pay the taxes?

Unit Value Information

How do I submit Unit Values in ETS and what is the deadline?
What are the three different types of Petroleum that FMT is calculated on?
Do I submit a $0 Unit Value?
I want to change from submitting our own calculated unit values to using the Crown calculated unit values, or change from using the Crown calculated default unit values to submitting our own calculated unit values, how do I do that?
How is the default unit value calculated?

Amendments (Recalculations), Revised Tax Statements and Notice of Objection to Tax

What is a recalculation and how do I apply for one?
Why did I receive a revised tax statement?
Who gets the refund or makes the payment when a recalculation is done?
What are the statute barred dates?
What is a Notice of Objection to Tax and how do I apply for one?

ETS for FMT

Who can apply for ETS FMT access and how do I apply ?
What is FMT access in ETS used for?
Where can I get more information?