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ARTICLE · 11 NOVEMBER 2010

Alberta Bill 26 to Clarify Ownership of Coalbed Methane

On October 27, 2010, the government of Alberta introduced Bill 26, Mines and Minerals (Coalbed Methane) Amendment Act, 2010. Bill 26 declares coalbed methane "to be and at all times to have been natural gas" for both Crown and freehold minerals.

CanadaEnergy and Natural Resources

On October 27, 2010, the government of Alberta introduced Bill 26, Mines and Minerals (Coalbed Methane) Amendment Act, 2010. Bill 26 declares coalbed methane "to be and at all times to have been natural gas" for both Crown and freehold minerals. Despite this declaration, Bill 26 expressly honours existing agreements that specifically grant coalbed methane to the coal owner and protects coal owners or their lessees, surface owners and the provincial government from being sued for damages or compensation from the extraction, production or removal of coalbed methane prior to the Bill coming into force. Under the proposed legislation read as a whole, coalbed methane is owned by the natural gas rights holder rather than the owner of coal rights.

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