Canada: New Alberta Bills Will Impact Coalbed Methane and Carbon Capture and Storage

Last Updated: November 19 2010
Article by Alex MacWilliam and Kathleen Shannon

The Alberta Government has recently introduced two pieces of legislation impacting the energy sector, in particular, large‐scale carbon capture and storage (CCS) projects and the development of coalbed methane.

On November 1, 2010, Bill 24, The Carbon Capture and Storage Statutes Amendment Act, 2010, was introduced in the Alberta Legislature. The Bill is intended to guide large‐scale CCS projects and to clarify the ownership of the pore space where carbon dioxide will be stored. Alberta is the first province in Canada to introduce legislation for this greenhouse gas reduction technology. The Bill proposes amendments or additions to the following statutes:

  • Energy Resources Conservation Act;
  • Mines and Minerals Act;
  • Oil and Gas Conservation Act;
  • Public Lands Act; and
  • Surface Rights Act.

The Bill provides that the Alberta Crown will own the subsurface pore spaces where carbon dioxide will be stored, and will accept permanent liability for injected carbon dioxide after an operator provides data showing the stored carbon dioxide has been contained over a specified period of time. CCS operators will be responsible for any mitigation work during operation and will remain responsible until a closure certificate has been issued by the Crown. Once a closure certificate is issued to an operator, the Crown will become the owner of the captured carbon dioxide and assume all liability. The Crown will also establish and manage a post‐closure stewardship fund which will be financed by CCS operators for ongoing monitoring costs and required remediation. The proposed legislation will not change mineral ownership or mineral production and will have no impact on Enhanced Oil Recovery (EOR) projects which will continue to be governed by the current regulatory system.

According to Alberta Energy Minister, Ron Liepert, Bill 24 is intended to ensure that Alberta is on track to reduce greenhouse gas emissions, while increasing provincial royalties and taxes. By using some of the captured carbon dioxide for EOR, it is expected that Alberta's conventional oil recovery will double, thereby generating tens of billions of dollars in additional provincial royalties and taxes. By having the Crown assume long‐term liability for captured carbon dioxide, the Government hopes to encourage more companies to move forward on large‐scale CCS projects in an effort to reduce provincial greenhouse gas emissions.

The Government has yet to decide how much time must pass before a closure certificate is issued and liability assumed by the Crown, or how much operators will have to pay into the postclosure stewardship fund. Such details will be included in regulations enacted following passage of the Bill.

On October 27, 2010, the Government introduced Bill 26, Mines and Minerals (Coalbed Methane) Amendment Act, 2010, and stated that it is an effort to remove historic barriers to resource development in the Province. The legislation proposes that coalbed methane is, and always has been, natural gas for both Crown and freehold purposes. Under the proposed amendments to the Mines and Minerals Act, coalbed methane would be owned by natural gas rights holders rather than the owners of the coal rights.

An important provision in the Bill is that existing agreements entered into by natural gas rights holders, or their lessees, that specifically provide coalbed methane rights to the coal rights holders or their lessees, will not be affected by the amendment. The Bill also states that natural gas rights holders and their lessees cannot sue coal rights holders or their lessees for compensation for coalbed methane that was extracted, produced or removed before the legislation was enacted.

According to the Province, the amendment is intended to provide certainty in coalbed methane split title situations where different parties own the rights to coal and natural gas under the same parcel of land. The legislation is intended to clear the way for coalbed methane development and facilitate the efficient and responsible development of Alberta's mineral resources. Observers note that the Bill, if passed, would put to rest years of legal disputes between landowners and the owners of coal rights granted to the Canadian Pacific Railroad in the 1880s.

Coal seams with coalbed methane potential are found underneath much of Alberta. A study from the Alberta Geological Survey indicates that Alberta's coalbed resource could contain upwards of 500 trillion cubic feet (Tcf) of coalbed methane. In comparison, Alberta's current remaining natural gas reserves are only 36 Tcf.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Related Topics
Related Articles
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions