Following our
report in November, on December 2,
2010, Bill 26 received Royal Assent and came into force as the Mines and Minerals (Coalbed Methane)
Amendment Act, 2010, S.A. 2010 c.20. The
Act declares coalbed methane "to be and at all times to have
been natural gas" for both Crown and freehold minerals.
Despite this declaration, the Act expressly honours existing
agreements that specifically grant coalbed methane to the coal
owner and protects coal owners or their lessees, surface owners and
the provincial government from being sued for damages or
compensation from the extraction, production or removal of coalbed
methane prior to the Act coming into force.
The Act amends the Mines and Minerals Act, R.S.A. 2000,
c. M-17, which previously only declared coalbed
methane to be natural gas on Crown land, by clarifying the nature
of ownership of coalbed methane on freehold lands. The enactment is
intended to provide clarity regarding coalbed methane ownership,
the lack of which the Alberta government saw as a potential barrier
to development of the resource in the province.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
