1979 BILL 78 First Session, 19th Legislature, 28 Elizabeth II THE LEGISLATIVE ASSEMBLY OF ALBERTA BILL 78 THE MINES AND MINERALS AMENDMENT ACT, 1979 THE MINISTER OF ENERGY AND NATURAL RESOURCES First Reading Second Reading Committee of the Whole Third Reading Royal Assent Printed by the Queen's Printer for the Province of Alberta, EDMONTON Title: 1979 (19th, 1st) Bill 78, The Mines and Minerals Amendment Act, 1979

Bill 78 BILL 78 1979 THE MINES AND MINERALS AMENDMENT ACT, 1979 (Assented to , 1979) HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Alberta, enacts as follows: 1 The Mines and Minerals Act is amended by this Act. 2 The following is added after

section 12.1: 12.2 The Minister may, with the approval of the Lieu­ tenant Governor in Council, enter into a contract with any person, or with the government of Canada or of another province governing the exploration for and evaluation, win­ ning, working, recovery and development of mines and minerals in Alberta. 3

Section 14 (

c) is repealed and the following is substituted: (

c) make regulations respecting (

i) the disposal pursuant to an agreement of the rights to explore for, win, work, recover or obtain minerals by placer mining, (ii) the conduct of exploration for any minerals, (iii) the working and development of any minerals, (iv) the operation of mines and any other matter incidental to mining, and (

v) the disposal pursuant to an agreement of the rights to explore for, win, work, recover or obtain minerals for which no provision is made by this Act, 1

Explanatory Notes 1 This Bill will amend

chapter 238 of the Revised Statutes of Alberta 1970. 2 The amendment will authorize the Minister with the approval of the Lieutenant Governor in Council to enter into development agree­ ments respecting mines and minerals. 3

Section 14 presently reads in part: 14 The Lieutenant Governor in Council may from time to time (

c) make regulations, (iii) governing the conduct of exploration for any minerals in the Province, (iv) governing the working and development of any minerals, and (vi) for the leasing or other disposal of any minerals for which no provision is made by this Act, The amendment will permit the making of regulations to provide for the disposition of placer mineral rights and to allow the Minister in his discretion, when desirable, to vary a royalty prescribed by the Lieu­ tenant Governor in Council. 01

(c. 1) make regulations authorizing the Minister (

i) to determine the deductions that may be allowed in computing a royalty prescribed by the Lieutenant Governor in Council under this Act, and (ii) to waive or vary a royalty prescribed by the Lieutenant Governor in Council under this Act in accordance with the terms and conditions pre­ scribed in the regulations; 4

Section 31(5) is repealed. 5

Section 40 is repealed and the following is substituted: 40(1) In this section, “due date” means (

a) in relation to the payment of a royalty on a miner­ al, the last day of the month in which the mineral is disposed of or sold, and (

b) in relation to the payment of a sum of money due and payable under an agreement or certificate of record, other than a royalty, the date specified in the agreement or certificate of record for the payment of that sum of money.

(2) Interest at the rate or rates prescribed in the regulations shall be charged on a royalty or other sum of money payable under an agreement or certificate of record from the due date to the actual date of payment when (

a) the royalty is not paid on or before the due date, or (

b) the sum of money, other than a royalty, is not paid within one month or 30 days, whichever is greater, following the due date, and interest so charged is payable in addition to that royalty or other sum of money. 2

Section 31(5) presently reads:

(5) The deductions that may be allowed when computing the royalty on petro­ leum and natural gas, other than crude oil, for the costs, charges and expenses incurred in gathering or processing shall be the deductions specified by the Minister. This subsection is being re-enacted as

section 132(2.1). See NOTE: 12. 5

Section 40 presently reads: 40 When any money payable under any disposition is not paid within one month or 30 days, whichever is the greater, from the date on which it became due, interest shall be charged from the due date at the rate prescribed by the regulations. This amendment prescribes the “due date" for interest payments and other payments and that interest will be payable after the due date if a royalty is not paid on or before the due date, and if any money, other than a royalty, is not paid within 1 month or 30 days after the due date. 02

Section 47.1 as enacted by

section 23 of The Mines and Minerals Amendment Act, 1978 (

a) is renumbered as

section 47.2, and (

b) is amended in subsection (4) by striking out “or on behalf of each of the holders of the agreement” and substituting “all of the holders of the agreement either personally, by an authorized employee or by a person authorized under a power of attorney”. 7 The following is added after

section 53: 53.1 If an approved scheme or operation referred to in

section 38(1)(

a) or 43(3) of The Oil and Gas Conservation Act is being conducted on the location of a lease of petro­ leum rights, petroleum and natural gas rights or oil sands rights, the lessee shall, upon the request of the Minister, submit to the Minister within the time specified by him, any data that the Minister requires for the purpose of determin­ ing the amount of production from and costs relating to that scheme or operation. 8

Section 81 is renumbered as

section 81.1 and the following is added before the renumbered

section 81.1: 81 In this Part “quarriable mineral” means a mineral prescribed as a quarriable mineral in the regulations for the purposes of this Part. 9 The following is added after

section 88(b): (

c) prescribing minerals, other than (

i) gold, silver and precious stone that are recoverable from (

A) sand and gravel that belong to the owner of the surface of land under The Sand and Gravel Act, or (

B) clay and marl that belong to the owner of the surface of land under The Clay and Marl Act, (ii) coal, petroleum, natural gas and oil sands, and (iii) metallic minerals to which

Part 10 applies as quarriable minerals for the purposes of this Part. 3

6 The first amendment will correct a numbering error and the second amendment will require the holders of an agreement to execute an official address for service personally or through an authorized employee or attorney. The renumbered

section 47.1 presently reads in part:

(4) An official address for service filed under subsection (2) of this

section or

section 176(2)(

e) shall be signed by or on behalf of each of the holders of the agreement. 7 This

section empowers the Minister to obtain from a lessee of petroleum, petroleum and natural gas or oil sands rights any data that he may require to determine the amount of production from and relevant costs attributable to an experimental scheme conducted on his lease location. 8 This

section defines quarriable minerals under

Part 3 for the purpose of differentiation with metallic minerals under the proposed

Part 10. See also NOTE: 21. 9 This

section will permit the making of regulations to prescribe quarriable minerals. 03

Section 119(1) is amended by striking out “subsection (3) and”. 11 In the following provisions “to 123” is struck out and “to 123.1 ” is substituted:

section 129(2);

section 131(4). 12 The following is added after

section 132 (2):

(2.1) The deductions that may be allowed when computing the royalty on petroleum and natural gas, other than crude oil, for the costs, charges and expenses incurred in gathering or processing shall be the deductions specified by the Minister. 13

Section 135 is repealed. 14

Section 174(3) is amended by striking out “bituminous sands or”. 4

Section 119(1) presently reads: 119(1) Subject to subsection (3) and sections 121 to 123, a petroleum and natural gas lease continues after the expiration of its term (

a) as to any part of the location that is within the spacing unit for a producing well;

Section 119(3) was repealed by

chapter 23 of the Statutes of Alberta, 1978. 11 Corrects an omission.

Section 123.1 was added by

chapter 23 of the Statutes of Alberta, 1978. 12 This

section will include allowable deductions for petroleum and natural gas as part of the authority dealing with petroleum and natural gas royalties rather than royalties generally. See also NOTE: 4. Sec­ tion 132 presently reads in part: 132(1) The petroleum and natural gas obtained pursuant to any agreement acquired under this

Part is subject to the payment to the Crown of such royalty thereon as may from time to time be prescribed by the Lieutenant Governor in Council.

(2) The royalty may be collected in such manner as may be prescribed by the Minister. 13 Corrects an omission.

Section 135 became redundant when its contents were duplicated by

section 31.1, which was added by

chapter 23 of the statutes of Alberta,

Section 135 presently reads: 135 When petroleum or natural gas is obtained from any well during any month, the lessee or his agent authorized in writing shall, not later than (

a) the 30th day after the end of that month, or (

b) the last day of the next succeeding month, whichever is the later, file with the Department, on forms prescribed by the Minister, a full report showing the production, disposition and sales during the month in which the petroleum or natural gas was obtained, and any other information required by the form. 14

Section 174(3) presently reads:

(3) In this

section “products” includes any products recovered from hydrocarbons obtained from bituminous sands or oil sands. 04

Section 175 is repealed and the following is substituted: 175 In this Part, (a) “approved lender” means a money lender desig­ nated by the Minister pursuant to

section 180.1; (b) “document” means an instrument that pertains to a right granted under an agreement; (c) “notice of financial transaction” means a docu­ ment in the form prescribed in the regulations and capable of registration under

section 180; (d) “registration” or “register” means (

i) the entering of a document in a book authorized by the Minister for that purpose, and (ii) the endorsing or attaching of a memorandum evidencing an entry under subclause (

i) on or to an agreement affected by a document and on or to that document; (e) “transfer” means a document in Form B, C or D in the

Schedule and capable of registration under sec­ tion 176. 16

Section 179(

a) is amended by striking out “providing for” and substituting “respecting”. 17

Section 180 is repealed and the following is substituted: 180(1) A notice of financial transaction may be registered by the Minister if it applies to an agreement or an interest in an agreement that has been assigned to an approved lender as security for a loan by the holder of that agreement or interest or by a person having an interest in that agreement or interest derived directly or indirectly from that holder.

(2) The Minister may refuse to register a notice of financial transaction if (

a) it is not in the prescribed form, (

b) it is not executed in the manner and accompanied by the proof of execution that is satisfactory to the Minister, 5

Section 175 presently reads: 175 In this Part, (a) “document” means an instrument, other than a transfer, pertaining to any right granted under an agreement; (b) ‘‘registration ” or ‘‘register ’' means (

i) the entering in a book authorized by the Minister for that purpose of a transfer or document, and (ii) the endorsing on or the attaching to the agreement affected of a memorandum evidencing an entry under subclause (i); (c) “transfer” means an instrument in Form B, C or D in the

Schedule or to a like effect and capable of registration under

section 176. The revision of this

section is consequential to the other amendments to

Part 7 of the Act as contained in this Bill. See also sections 16 to 18 of this Bill. 16

Section 179(

a) presently reads: 179 The Lieutenant Governor in Council may make regulations (

a) providing for the registration of documents, 17

Section 180 presently reads: 180 Where, by a document made pursuant to

section 82 of the Bank Act (Canada), an agreement from the Crown with respect to petroleum or natural gas, or both, or any interest therein is assigned, transferred or set over as security to a bank by the holder of the agreement or by a person having an interest therein, there may be registered by the Minister upon payment of the prescribed fee (

a) an original of the document, or (

b) a copy of the document certified by an officer or employee of the bank to be a true copy thereof, or (

c) a caveat in respect of the rights of the bank, or (

d) a discharge or partial discharge of the rights of the bank under the document, or (

e) a withdrawal or partial withdrawal of a caveat registered under clause (c). 05

(

c) the prescribed fee is not paid, or (

d) the person who submits the notice of financial transaction does not submit an address for service for the notice of financial transaction.

(3) A notice of financial transaction registered under this Part has priority over an unregistered notice of financial transaction.

(4) A notice of financial transaction ceases to be valid on the expiration of 5 years from its registration unless, before the expiration of that period, a renewal notice in the form prescribed in the regulations is filed with the Department.

(5) A person whose notice of financial transaction has been registered shall file with the Department forthwith a notice of any change of the address for service relating to the notice of financial transaction.

(6) This

section does not apply to a document made pur­ suant to

section 82 of the Bank Act (Canada) that was registered by the Minister before the date of the coming into force of this section. 180.1 The Minister may in writing designate as an approved lender a money lender considered appropriate by him for giving loans on the security of an agreement or of an interest in an agreement. 18

Section 181 is amended (

a) by repealing clause (a), and (

b) in clause (

c) by striking out “transfers and”. 19

Section 188(2) is repealed and the following is substituted:

(2) No person shall operate exploration equipment in Alberta unless he is either (

a) the holder of an exploration permit, or (

b) a person authorized by a permittee to operate exploration equipment under that permittee’s permit, 6

The new

section will permit the registration by way of notices of financial transaction of security agreements between money lenders approved by the Minister and holders of agreements or persons who have derived an interest from those holders. This

section will no longer only apply to security under

section 82 of the Bank Act (Canada). 18

Section 181 presently reads in part: 181 The Lieutenant Governor in Council may from time to time establish a tariff of fees pertaining to (

a) the registration of transfers, (

b) the registration of documents, and (

c) any services supplied by the Department in connection with transfers and documents. 19

Section 188 presently reads in part:

(2) No person shall operate exploration equipment in Alberta unless (

a) he is the holder of an exploration permit or is a person authorized by that holder to operate that equipment, and (

b) the permit is not suspended or is not suspended with respect to that equipment. 06

and the permit under which he is operating is not suspended and no other suspended permit exists with respect to that equipment. 20

Section 189(

g) and (

h) is repealed and the following is substituted: (

g) respecting the filing of reports, plans, maps, surveys and other documents with the Department and the submis­ sion of rock samples, drill cuttings, core samples, logs or other data obtained as a result of mineral exploration to a person authorized by the Minister to receive them; (g.1) prescribing the content of the reports, plans or maps and the condition of samples, cuttings, logs or other data referred to in clause (g); (

h) respecting the retention, confidentiality, disposition and publication of preliminary plans filed pursuant to the regula­ tions and of plans, reports, maps, surveys, or other docu­ ments, rock samples, drilling cuttings, core samples, logs or other data obtained as a result of mineral exploration; 21 The following is added after

section 194:

Section 189 presently reads in part: 189 The Lieutenant Governor in Council may make regulations (

g) prescribing the circumstances under which and the times at or within which any kinds of reports, plans, maps, surveys, logs or other data obtained as a result of exploration must be filed with or surrendered to the Department and prescribing the content of any reports, plans or maps required to be so filed or surrendered; (

h) respecting the retention, disposition and publication of preliminary plans filed under the regulations and of plans, reports, maps, surveys, logs or other data obtained as a result of exploration; The new clauses will permit the making of regulations that require a licensee to provide to the Minister or his authorized representative designated data and to prescribe rules dealing with the retention, confidentiality, disposition and publication of preliminary plans and of other data filed in the Department. 21 The new

Part 10 will authorize the disposition of metallic minerals, formerly described as quartz minerals, by way of permits and leases instead of by way of quartz mineral certificates of record, quartz mineral exploration permits and quartz mining leases pursuant to the regulations. 07

PART 10 METALLIC MINERALS 195 In this Part, (a) “lease” means a metallic mineral lease issued under this Part; (b) “metallic mineral” means a mineral prescribed as a metallic mineral in the regulations for the purposes of this Part; (c) “permit” means a metallic mineral exploration permit issued under this Part; (d) “permittee” means the holder of a permit. 196 A permit or lease shall be in the form determined by the Minister and may include any terms or conditions pre­ scribed by him. 197(1) A person is entitled to a permit if (

a) his offer for the permit is accepted by the Minister at a sale by public tender, or (

b) he applies for the permit and the Minister consid­ ers the granting of it warranted in the circumstances.

(2) A person who is not a permittee is not entitled to a lease.

(3) A permittee who applies for a lease in accordance with the regulations is entitled to a lease of all or any part of the location described in his permit. 198 A lessee or permittee may surrender all of the loca­ tion described in his permit or lease, and may, with the consent of the Minister, surrender a part of that location. 199(1) A permit entitles the permittee to search for, mine, quarry, work and remove metallic minerals that are the property of the Crown in right of Alberta in the location for the purposes and in accordance with the terms and condi­ tions prescribed in the permit. 8

Definitions. 196 Form of lease or permit. 197 Permit. 198 Surrenders. 199 Rights granted by permit and lease. 08

(2) A lease grants the right to metallic minerals that are the property of the Crown in right of Alberta in the location in accordance with the terms and conditions prescribed in the lease. Royalty 200(1) A metallic mineral obtained pursuant to a permit or lease is subject to the payment to the Crown in right of Alberta of the royalty on the mineral that may from time to time be prescribed by the Lieutenant Governor in Council.

(2) The Minister may prescribe the manner of collection of the royalty and the royalty shall be collected in the manner so prescribed. 201 The Lieutenant Governor in Council may make regulations (

a) respecting applications for and the issuing of per­ mits and leases; (

b) prescribing fees payable in respect of applications for, or for the issuing of, permits and leases; (

c) prescribing the rights and duties of permittees and lessees; (

d) providing for any matter relating to the term of permits and leases, renewals or extensions of the term, size, shape and boundaries of the locations of permits and leases and the surrender, cancellation, expiry or forfeiture of permits and leases; (

e) respecting the filing with or submission to the Department of reports, declarations, plans, maps or surveys by permittees and lessees and prescribing the form and content of those reports, declarations, plans, maps or surveys; (

f) respecting the retention, confidentiality, disposition and publication of reports, declarations, plans, maps, surveys or other data submitted by permittees and les­ sees to the Department; (

g) prescribing the work and spending requirements to be met by permittees on the location of a permit during a specified period of the permit, and specifying the charges, credits or deposits required or allowed against those work and spending requirements; 9

200 Royalty. 201 Regulations. 09

(

h) prescribing the manner in which locations for leases may be selected; (

i) prescribing rentals payable by lessees and deduc­ tions from or credits against those rentals; (

j) authorizing the Minister to give a notice to a lessee requiring work to be done by the lessee on the location of a lease including, without limiting the generality of the foregoing, notice to (

i) commence or resume mining operations on the location within a specified period; (ii) mine from the location a specified amount of the metallic mineral within a specified period; (

k) prescribing minerals, other than (

i) gold, silver and precious stone that are recov­ erable from (

A) sand and gravel that belong to the owner of the surface of land under The Sand and Gravel Act, or (

B) clay and marl that belong to the owner of the surface of land under The Clay and Marl Act, (ii) coal, petroleum, natural gas and oil sands, and (iii) quarriable minerals to which

Part 3 applies, as metallic minerals for the purposes of this Part. 202 This Part applies to a quartz mineral exploration permit and a quartz mineral lease that was granted pursuant to the regulations before and is in effect on the date of the coming into force of this Part. 22 An application made before the date of the coming into force of

section 21 of this Act for (

a) a certificate of record or a quartz mineral exploration per­ mit, or (

b) a quartz mineral lease 10

202 Transitional. 22 Transitional. 10

pursuant to the regulations shall on and after that date be dealt with as an application for a permit or a lease, as the case may be, under

Part 10 as enacted by this Act. 23 An owner of a mineral claim may (

a) before the date of expiry of the certificate of record for the mineral claim, apply for, and (

b) be issued a permit under

Part 10 as enacted by this Act in substitution for the rights granted under the certificate of record for that mineral claim. 24 This Act comes into force on a date or dates to be fixed by Proclamation. 11

23 Transitional. 11 Title: 1979 (19th, 1st) Bill 78, The Mines and Minerals Amendment Act, 1979