Coal leasing and maintenance

Leases – direct purchase application

There are 2 types of coal leases in Alberta. Holders of Alberta Crown coal leases pay an annual rent ($3.50 per hectare or $50.00 minimum) and royalties on the coal produced.

1. Application Methods: apply through Mineral Direct Purchase in Electronic Transfer System (ETS) support and online learning.
2. Coal Lease Application Form can also be submitted in paper format. An application should identify the key parties (applicant, designated representative, participants), the type of agreement, the lands requested, and be accompanied by all applicable fees (by cheque or money order). Applications (with payment) are date stamped when received by the department. ETS is the preferred method of submission if you want to avoid delays in receiving and processing your request.

Note: Use the Interactive Coal Activity Map to help select lands available for application. More information is available in interactive maps.

Coal lease

A coal lease has a 15-year term and is renewable. In the described location, it grants the exclusive right to:

• win
• work
• recover coal

Depending on the circumstances, a successful coal lease will result in 1 of the 2 following actions:

• an agreement/lease is issued directly to the applicant
• or in a coal public offering – competitive bidding

Coal leases do not include rights to the coal in road allowances.

Coal road allowance lease

A coal road allowance lease has a 15-year term and is renewable. In the described location, it grants the exclusive right to:

• win
• work
• recover coal within a road allowance

Note: if and when you recover/mine coal you must report any royalty, see the coal royalties and reporting section.

• an agreement/lease is issued directly to the applicant, based on the criteria in the next bullet being met
• It must be obtained before mining through a road allowance. Only holders of a mine permit or licence in the location can obtain a lease. A 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. The lessee must also ensure they review integrated resource plans, policies, and any local restrictions set by the Government of Alberta under the Mines and Minerals Act and other legislation. Legislative changes are noted in information letters, topic searches for Mineral Rights Acquisition and Mineral Rights Tenure will cover information for coal.

Annual rent

Is due on or before the lease anniversary date. Rent may be paid by cheque or via ETS (pre-authorized debit). The setup forms can be found on the ETS Administration page. Ensure you have filled out the pre-authorized debit form and selected Monthly Mineral Rental Statements on the ETS Account Setup Change Form.

Payment of royalties

If coal is being produced from the location of a lease, royalty reports and payment must be submitted to the ministry in order to keep the lease in good standing. Royalty reporting should be submitted on-line through the ETS system. See Mineral royalty forms submission in online learning for more information.

Amending a lease

A lessee or their designated representative may request changes to a lease, such as changing the ownership of an agreement or reducing the lands within the lease.

• A change of ownership of an agreement or change partial ownership is administered by the registration and crown land data unit, see the transfers section in online learning or refer to the Transfer Form Guidelines to submit from the forms section of this site.
• Changes to the land within a lease may be requested in writing to the Coal and Mineral Development (CMD) unit see surrendering a lease below for more information.

Applying to renew a lease

Application to renew a lease should be received by the department within the last 30 days of the 15 year term. A letter requesting renewal should be submitted, along with the application fee $625.00 and the next year's rent and GST if applicable, to the CMD unit (contact information below).

Surrendering a lease

To request cancellation of a lease, please send a written request to the CMD unit (contact information below). Ensure request is on company letterhead and signed. The lands being returned or surrendered to Alberta’s land bank will become available once the Department has processed the amendment to release the lands. At that time the lands will show on Coal Interactive Map as available. More information available in interactive maps.

If you prefer a print copy of the Guidelines or any forms, contact us.

Alberta Energy Regulator (AER) forms

You will need to contact AER for forms and procedures relating to:

• coal-mine permit areas
• coal-mine licences
• coal projects
• coal-mine abandonment

Contact

Connect with the Coal and Mineral Development Unit:

Hours: 8:15 am to noon and 1 pm to 4 pm (open Monday to Friday, closed statutory holidays)
Phone: 780-427-7707
Toll free: 310-0000 before the phone number (in Alberta)
Email: [email protected]

Edmonton

Address:
Alberta Energy and Minerals
Coal and Mineral Development Unit
North Petroleum Plaza
9945 108 Street *
Edmonton, Alberta  T5K 2G6

* Couriers, please report to the 2nd floor.

Calgary (drop-off location only)

Address:
Alberta Energy and Minerals
300, 801 6 Avenue SW
Calgary, Alberta  T2P 3W2