ARTICLE · 25 SEPTEMBER 2012

ABCA Confirms That Coalbed Methane Forms Part Of Natural Gas Title

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In Encana Corporation v Devon Canada Corporation, 2012 ABCA 271, the Alberta Court of Appeal has confirmed that coalbed methane forms part of the natural gas title in Alberta.

CanadaEnvironment

Michael Styczen, P.Eng

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In Encana Corporation v Devon Canada Corporation, 2012 ABCA 271, the Alberta Court of Appeal has confirmed that coalbed methane forms part of the natural gas title (and not the coal title) in Alberta.

Disputes had arisen among a number of parties as to who the correct owner of coalbed methane was. In order to address the issue, the Alberta legislature amended the Mines and Minerals Act in 2010 to provide that "Coalbed methane is hereby declared to be and at all times to have been natural gas".

The Court of Queen's Bench ruled in 2011 that the amendments to the Mines and Minerals Act were unambiguous and provided that the natural gas owners would have title to the natural gas, both in respect of crown leases and freehold lands.

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