About Coal Leasing

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 below.

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 Conservation Act.

The basic requirements of holding a coal lease are payment of annual rent ($3.50 per hectare or $50.00) and payment of royalties (see Royalty Information on this site) on Alberta-owned coal produced from the lease location.

Coal leases are also subject to the following legislation and policies: