Introduction
The Government of Alberta (the government) requires a security deposit on most dispositions on public lands. Security deposits are collected and held to cover the reclamation costs of a disposition. Security may also be used to recover arrears owed to the Crown. Requiring security deposits provides assurance of responsible land stewardship.
Note that interest is not paid on security deposits.
Crown lands security deposit form
The following form is required when submitting a security deposit. Failing to include the form may result in a delay in approving your disposition.
Acceptable forms of security deposit
The government accepts various forms of security deposits, including cash, demand forfeiture bonds and letters of credit. Further information on the various types of deposits allowed and where to send it can be found in the Acceptable forms of security deposits document.
The department began accepting demand forfeiture bonds in 2024. These are third-party guarantees, where a bonding company provides assurance that the disposition holder will fulfill their obligations. If the holder does not, the bonding company pays the amount specified in the bond to the ministry. Using a demand forfeiture bond may free up some of the holder’s capital, as the full bond amount is generally not required upfront. However, the holder will have to pay a premium to the bonding company, and it may be difficult to get a bond without a strong financial record.
Demand forfeiture bonds must use the department’s form, without any change whatsoever:
- Forestry and Parks Demand Forfeiture Bond
The government has a list of qualified financial institutions, this document provides guidance and information on these institutions.
Security deposit calculation
For dispositions on public lands where a security deposit is required, the amount that is requested depends on the type and size of the disposition. The minimum amount is normally $1,000 x the number of acres of the disposition, although some dispositions may warrant a higher amount than this calculation, depending on the purpose and activity of the disposition.
When should security deposit be paid
The entire security deposit amount is due within of 30 days from the date the government notifies you that a deposit is required. The application submitted will not be approved until the government has received the full security deposit amount and the required Crown lands security deposit form.
The only exception for not submitting the entire security deposit of a disposition is when the disposition is worked on in phases that were approved by the government (Example: a surface materials sand and gravel pit).
The security deposit requested for each phase is due within the same 30 day timeline of being notified that a security deposit is required.
Return of security deposit
When a disposition holder is ready to cancel their disposition and potentially have their security deposit returned they must first complete the reclamation and submit the appropriate type of reclamation request to the government.
Upon receipt of the reclamation request an inspection will be completed. If the reclaimed disposition lands are deemed satisfactory the disposition will be cancelled and the security deposit returned.
Security deposit not returned
There are instances when a disposition holder’s security deposit may not be returned, including:
- Reclamation is not completed – if the disposition holder does not complete the required reclamation the government has the ability to use the held security deposit to complete the reclamation.
- Arrears are owed to the Crown – if the disposition holder is in arrears to the Crown the government has the ability to use the security deposit to pay those arrears. Any portion of the security deposit that is left after the arrears have been paid will be returned. If the security deposit held does not cover the entire amount of the arrears the disposition holder remains in arrears for the balance owed to the Crown.
Contact
Hours: 8:15 am to 4:30 pm (open Monday to Friday, closed statutory holidays)
Phone: 310-3773
Toll free: 1-877-310-3773
Email:
[email protected] (for commercial, industrial, recreational and bed/shore applications)
[email protected] (for aggregate applications)
Address:
Public Lands Disposition Management
5th Floor, 9945 108 Street NW
Edmonton, Alberta T5K 2G8
The contact area for questions regarding securities is:
Financial Operations
Phone: 310-3773 (toll free)
Email: [email protected]