Exploration Backgrounder
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In 2003, the Alberta Government clarified the rules for recreational and exploration access on agricultural dispositions issued under the Public Lands Act, including grazing leases and farm development leases. The rules are contained in new legislation and regulations under the Agricultural Dispositions Statutes Amendment Act, 2003.
The new rules encourage communication, co-operation and respect. They strive for balance between the needs of the leaseholders in protecting approximately five million acres of agricultural land and livestock and the rights of the recreational users to reasonable access. These new rules also provide clarity on issues related to access for exploration, and incorporate a process for addressing exploration related disputes (Exploration Dispute Resolution Regulation).
Disputes Related To Access
Previously, grazing and farm development leaseholders had the right to deny access for exploration, which includes geophysical operations for oil and gas. There was no right to review the leaseholder's decision to deny access. While the new legislation continues to require companies to obtain leaseholder consent before conducting exploration activities, a new review process is available to you if consent is denied.
The legislation sets out a formal process to assist leaseholders and companies when conflict occurs about operational and land use matters. Under the new regulation, current processes will continue until access cannot be obtained from the leaseholder. At that point, the review process becomes an option. A local settlement officer (LSO) through the Rangeland Management Branch of Sustainable Resource Development can review disputes related to operational or land-use concerns. Once the LSO reaches a decision, either party can pursue further reviews, if they feel that is necessary. To review the LSO’s decision, a request would go to the Provincial Exploration Review Committee, which looks regularly at cases.
If consent is still not provided because of compensation or access concerns, companies can apply for a right-of-entry order for exploration activities through the Surface Rights Board. This option is new and is part of the recently proclaimed Bill 16.
Disputes Related To Compensation For Access
Historically, the Surface Rights Board had no jurisdiction over disputes related to compensation for exploration access. The Board could only address compensation disputes over access for development. Companies can still go to the Board for mediation in disagreements related to compensation for development access. With the new regulation, exploration companies and leaseholders can now also work with the Board in resolving compensation for exploration related access disputes on public land agricultural leases. The Public Lands Act changes only apply to public land. Either party may want to involve the Surface Rights Board if there is disagreement on the amount of compensation.
The regulations now identify the circumstances under which Surface Rights Board will become involved where compensation for access is at issue. Some of the factors that the Board will consider in determining compensation include: the nature and degree of disturbance to the land, and the length of time you expect to be on the land, which could adversely impact the leaseholder.
Disputes Related To Compensation For Damage
Additionally, this Bill will allow the Surface Rights Board to hear matters related to compensation for damage. Where loss or damage occurs to the land as a result of exploration access, the Surface Rights Board can issue a compensation order. This applies to all agricultural disposition holders including grazing permit holders under the Forest Reserves Act. No changes have been made to the Surface Rights Act.
For more information about exploration access on agricultural public lands, please contact your local Lands Division office,
OR visit the Department of Sustainable Resource Development’s Lands Division website at http://www.srd.gov.ab.ca/land/recaccess/publiclandaccess.html.
