Background

Veterans returning from World War I were awarded surface title land rights under the Soldier Settlement Board (SSB) in 1917. Mineral rights for SSB lands were administered by the Government of Canada. In 2001, Alberta Justice filed a Statement of Claim on behalf of Alberta Energy for the SSB minerals and revenues earned by Canada on those minerals since October 1, 1930, the effective date of the Natural Resources Transfer Act (NRTA). The agreement between Alberta and Natural Resources Canada was settled on April 1, 2010. The settlement agreement provides to Alberta:

  • the transfer and control of 265 other federally-owned mineral titles and 7 associated mineral leases
  • the transfer and control of 212 SSB mineral titles and 89 associated mineral leases
  • a cash settlement of approximately $31.5 million

In 2010 and 2011 disposition holders were sent a letter from Natural Resources Canada advising them of the change in ownership. The letter contained details about the transfer and provided contact information at Alberta Energy so that disposition holders could replace their federal lease with a standard Alberta Petroleum and Natural Gas (PNG) lease agreement. The department will be responsible for administering the current federal disposition. The SSB and the Canada titles (Her Majesty the Queen in right of Canada Titles, also known as HMQC) lands that were not subject to a federal disposition were posted (SSB titles and HMQC titles) through the public offering process on June 2, 2010, requests were made for the September 29, 2010 public offering.

Direct purchase

Direct purchase of SSB or HMQC lands is possible if you qualify under the requirements and if the parcel meets the conditions for a portion of land direct purchase. The applicant must control the freehold rights in the balance of the spacing unit and the former SSB or HMQC lands must be less than 50% of the smallest applicable spacing unit for the land. If the parcel does not qualify, the rights may be posted in the first available public offering.

Conversion

If you want to convert your federal SSB leases, you will not be required to compete at a land sale. However, you will be required to submit an application for a direct purchase via our Electronic Transfer System (ETS) for the rights held under your federal SSB lease. If you have a producing well you are not required to suspend your well. An approval under 54(5) of the Mines and Minerals Act is granted to allow you to continue operations.

Table 1. Administrative differences between agreement types

Federal agreement Alberta PNG agreement
  • No change
  • Pay renewal and transfer fees ($25 transfer fee for each lease)
  • Cannot do business via the ETS
  • No severance of mineral rights
  • Maintain two types of agreements (federal vs Alberta PNG agreements)
  • No reinstatement provision upon cancellation of agreements
  • SSB leases, identified by agreement type 041, rentals are included on the monthly statement process
  • purchase of complementing rights of undisposed Crown petroleum or natural gas rights will be allowed where available

If you have questions about the administration of your federal lease, you can call Kerry-Lynne Kryvenchuk at the Tenure Branch at 780-644-4817.

  • Consistency in administration
  • No fee for continuation and transfer
  • Rental is lower amount of $3.50 p/ha
  • Can do business via the ETS
  • Severance of shallow and deeper mineral rights will apply upon agreement expiry
  • Reinstatement provisions apply with payment of $5000.00 where applicable
  • Consolidation is possible if the SSB or HMQC lands are in the same spacing unit of an existing Alberta PNG lease

Royalties

Lease holders have the option to choose to continue with the federal lease or move to an Alberta lease. The Alberta lease is subject to the current oil royalty formulae and will be payable in kind. The federal lease calculation will be made according to the lease agreement until the lease expires but royalties will be paid in cash to the Government of Alberta. It is the responsibility of the lease holder to determine which lease to select.

Once an Alberta lease is issued, it is not possible to switch back to a federal lease.

Apply

The following remittance forms must be completed and accompanied with payment before the 25th day of the month following the production month to which it applies:

Please clearly identify the amount applicable to oil versus gas if payment is made on one cheque. All Soldier Settlement Board payments for gas and oil wells should include the appropriate account number (SSG or SSO and Client ID) referenced on the remittance/invoice. The completion and submission of this form in conjunction with any payment(s) due to the Government of Alberta ensures that your SSB lease account is current, accurate, complete and congruent with the terms and conditions prescribed within each lease agreement. A payment without the above completed form will be returned to the company/individual.

Transfer

Transfers of registered interest in a federal SSB lease cannot be submitted electronically using the ETS. This transfer form (DOC, 96 KB) is used for manual submission. This form must be accompanied by a transfer transmittal letter (PDF, 206 KB).

Renewing a SSB lease

Prior to expiry:

  1. Submit a letter requesting renewal and indicate what your renewal is based on (for example: identify a specific well, a Unit Agreement, etc.).
  2. Supply data to support your application, similar to what you submit for a standard Alberta PNG mineral agreement continuation application (for example: production reports, technical mapping, etc.). If renewal is based on a Unit Agreement, no data is required.

The rental and renewal fee does not need to be submitted with your renewal application. If the lease is renewed the department will request the rental and $25 renewal fee at that time.

Contact

Connect with the Petroleum and Natural Gas Tenure division:

Hours: 8:15 am to 4:30 pm (open Monday to Friday, closed statutory holidays)
Phone: 780-644-2300 with the following menu options:

  1. Petroleum and Natural Gas Sales
  2. Agreement Continuations
  3. Validation and Rentals
  4. Crown Land Data, Petrinex and ETS Accounts
  5. Registration of Transfers and Encumbrances

Toll free: 310-0000 before the phone number (in Alberta)
Fax: 780-422-1123
Emails:
Energy Bidding – bidding.energy@gov.ab.ca
Energy Crown Land Data – crownlanddatasupport@gov.ab.ca (general inquiries)
Energy PNG Continuations – pngcontinuations.energy@gov.ab.ca
Energy Postings – postings.energy@gov.ab.ca
Energy Rentals – energy.rentals@gov.ab.ca
Energy Transfers – transfers.energy@gov.ab.ca
Energy Unit Agreements – energyunitshelpdesk@gov.ab.ca
Energy Well Administration – welladmin.energy@gov.ab.ca

Address:
Alberta Energy
Petroleum and Natural Gas Tenure
North Petroleum Plaza
9945 108 Street*
Edmonton, Alberta  T5K 2G6

*Couriers, please report to the 2nd floor.