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.

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, call our Sales Help Desk at 780-644-2300 (extension #1).

  • 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

As per the Soldier Settlement Board lease agreements, royalty is to be calculated in accordance with Alberta provincial legislation, with the exception that SSB wells have specific royalty rates for each product.

  • Oil/Condensate – minimum royalty rate 12.5%
  • Gas – minimum royalty rate 15%
  • Sulphur – flat royalty rate 16.66667%
  • Pentane (Spec & Mix) – flat royalty rate 40%
  • Propane/Butane (Spec & Mix) – flat royalty rate 30%

Unlike Alberta Crown oil royalties, Soldier Settlement Oil royalties are collected in cash rather than in kind. Once the oil royalty volume is determined, it must be valued at an appropriate price for collection from the client.  Gas royalties are collected in cash under SSB and under Alberta leases.

The following royalty remittance forms must be completed, emailed 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 must 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.

Transfer

Transfers of registered interest in a federal SSB lease cannot be submitted electronically using the ETS. This transfer form (DOC, 100 KB) is used for manual submission. This form must be accompanied by a transfer transmittal letter (PDF, 217 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
Toll free: 310-0000 before the phone number (in Alberta)

Email:
Energy – Bidding – [email protected]
Energy – Crown land data – [email protected]
Energy – Gas royalty – [email protected]
Energy – Oil royalty – [email protected]
Energy – PNG continuations – [email protected]
Energy – Postings – [email protected]
Energy – Rentals – [email protected]
Energy – Transfers – [email protected]
Energy – Unit agreements – [email protected]
Energy – Well administration – [email protected]
Environment and Parks – GLIMPS – [email protected]

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

*Couriers report to the 2nd floor.

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