In an effort to remove barriers to resource development in
Alberta, the Government of Alberta is seeking to clarify the
ownership of coalbed methane within the province.
On October 27, 2010, the provincial legislature introduced Bill 26, the Mines and Minerals
(Coalbed Methane) Amendment Act, 2010, 3rd Sess.,
27th Leg., Alberta, 2010. This Bill
declares that coalbed methane is, and always has been, natural gas
for both Crown and freehold minerals. Therefore, if the Bill is
passed, coalbed methane in Alberta will be owned by natural gas
rights holders rather than coal owners.
Existing agreements entered into by the natural gas mineral
owner, or their lessee, that specifically granted coalbed methane
rights to the coal owner, or their lessee, will not be
affected. The Bill also protects the Crown, coal owners, or
their lessee, and surface owners from being sued by the natural gas
owner, or their lessee, for coalbed methane extraction, production
or removal prior to
