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 and Minerals 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 and Minerals 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 (His Majesty the King in right of Canada Titles, also known as HMKC) lands that were not subject to a federal disposition were posted (SSB titles and HMKC 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 |
|---|---|
If you have questions about the administration of your federal lease, call our Sales Help Desk at 780-644-2300 (extension #1). |
|
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 based on market value at the time of production. 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:
- Gas Remittance Form – email management information with the Soldier Settlement Gas (SSG) number
- Oil Remittance Form – email oil royalty with the Soldier Settlement Oil (SSO) number
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 is used for manual submission. This form must be accompanied by a transfer transmittal letter.
Renewing a SSB lease
Prior to expiry:
- Submit a letter requesting renewal and indicate what your renewal is based on (for example: identify a specific well, a Unit Agreement, etc.).
- 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 and Minerals
Bidding – [email protected]
Crown land data – [email protected]
Gas royalty – [email protected]
Oil royalty – [email protected]
PNG continuations – [email protected]
Geothermal – [email protected]
Postings – [email protected]
Rentals – [email protected]
Transfers – [email protected]
Unit agreements – [email protected]
Well administration – [email protected]
Crown Mineral Activity – [email protected]
Environment and Protected Areas
GLIMPS – [email protected]
Address:
Alberta Energy and Minerals
Petroleum and Natural Gas Tenure
North Petroleum Plaza
9945 108 Street*
Edmonton, Alberta T5K 2G6
*Couriers report to the 2nd floor.