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ARTICLE · 10 JULY 2026

Vesting Order Bars Claims For Unpaid Crown Royalties

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In two companion decisions - Alberta (Energy and Minerals) v Spartan Delta Corp, 2026 ABCA 214 (the Spartan Decision) and Alberta (Energy and Minerals) v Canadian Natural Resources Limited, 2026 ABCA 213 (the CNRL Decision) -  the Court clarified that co-lessees are subject to joint liability for Crown royalties, not joint and several liability, under Alberta's Mines and Minerals Act, RSA 2000, c M-17.

CanadaEnergy and Natural Resources
Keely Cameron
Keely Cameron
Gracie Boser
Gracie Boser
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On June 24, 2026, the Court of Appeal of Alberta confirmed limits on liability for co-lessees of oil and gas assets for unpaid Crown royalties.

In two companion decisions - Alberta (Energy and Minerals) v Spartan Delta Corp, 2026 ABCA 214 (the Spartan Decision) and Alberta (Energy and Minerals) v Canadian Natural Resources Limited, 2026 ABCA 213 (the CNRL Decision) -  the Court clarified that co-lessees are subject to joint liability for Crown royalties, not joint and several liability, under Alberta's Mines and Minerals Act, RSA 2000, c M-17.

This distinction is critical. Because the liability is joint and indivisible, the extinguishment or stay of a claim against one co-lessee extinguishes or stays the claim against all co-lessees, subject only to limited statutory exceptions. As a result, when an insolvency proceeding vests off unpaid royalties for one co-lessee, the other co-lessees cannot later be on the hook for the unpaid royalties.  Similarly, where a stay is in place

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