About Coal Leasing and Lease Maintenance
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:
- Mines and Minerals Act Parts 2 and 3 of the Mines and Minerals Act pertain specifically to coal leasing.
- Mines and Minerals Administration Regulation
- Coal Conservation Act A coal lessee requires a Mine Permit and a Mine License to develop a mine in the location of a lease. Approval for development and mining is administered by the Alberta Energy Regulator (AER).
- 1976 Coal Development Policy for Alberta
- Integrated resource plans, policies, and any local restrictions set by the Government of Alberta under the Mines and Minerals Act and other legislation.
- Information Letters relating to Mineral Rights Acquisition and Mineral Rights Tenure
Lease MaintenanceThe following instructions pertain to coal leases and coal leases in road allowances.
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 Forms.)
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 standing (see Coal Royalties Information.)
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 lease.
- 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 form (see Coal Forms)
- 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 (see Coal Contacts). 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 (see Coal Contacts.)
Surrendering a lease
To request cancellation of a lease, please send a written request to the Coal and Mineral Development Unit (see Coal - Contacts.) 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.