1972 Bill 124 First Session, 17th Legislature, 21 Elizabeth II THE LEGISLATIVE ASSEMBLY OF ALBERTA BILL 124 The Mineral Taxation Amendment Act, 1972 THE MINISTER OF MINES AND MINERALS First Reading .................... , ........ . Second Reading ............................. . Third Reading .............................. . Printed by the QUEEN'S PRINTER for the Province of Alberta, EDMONTON

Bill 124 BILL 124 1972 THE MINERAL TAXATION AMENDMENT ACT, 1972 (Assented to , 1972) HER MAJESTY, by and with the advice and consent of the Legis.},ative AS1se,mhly .of AlbeTta, enacts as follows: 1. The Mineral Taxation Act, 1972 is hereby amended

Section 1 is amended (

a) by striking out clauses (

a) and (

b) and by sub­ stituting therefor the following clauses: (a) "Appeal Board" means the Mineral Assessment Appeal Board appointed pursuant to this Act; (b) "assessor" means (

i) with reference t'O rights to petroleum, the assessor or an assistant assessor appointed under The, Oil and Gas Conservation Act, and (ii) in all other cases, the chief assessor or an assessor apP'Ointed under this Act; (

b) by adding after clause (

c) the following clauses: ( c1) ",c:hief assessor" means (

i) with reference to rights t'O petroleum, the assessor appointed under The Oil and Gas Conservation Act, 'and (ii) in all 'Other C3!Ses, the chief assessor ap­ pointed under this Act; (c2) "Conservation Board" ,means the Energy Resources Conservation Board under The Energy Resources Conservation Act; (

c) as to clause (k), subclause (ii) by striking out the words "'Of the h'Older" and by SUbstituting therefor the word "granted", and . ... (

d) by adding after clause (

k) the following clause: (k1) "right to petroleum" Dr "petroleum right" means (

i) an estate in fee simple in petroleum,

Explana10ry Notes l. This Bill will amend

chapter 67 of the Statutes of Alberta, 1972. 2.

Definitions.

Section 1, clauses (a), (

b) and (

k) presently read: 1. In this Act, (a) "assessor" means an as'sessor appodnted pursuant to this Act and include,s the chief assessor; (b) "Board" means the Mineral Assessment Appeal Board appo,inted pursuant to this Act; (k) "right to a mineral" or "mineral right" means (

i) an estate in fee simple in a mineral, or (ii) the interest of the hoIder under a Crown agreement;

(ii) the interest in petrol'eum granted under a Crown agreement;

Section 2 is struck out.

Section 5 is amended (

a) as to subsection (1), clause (b), (

i) by striking out the words "assessed mineral rirg'hts" in subclause (

i) and by sustituting the word "ass,essment", (ii) by adding at the end of subclause (ii) the word "and" and by striking out subclause. (iii), and (iii) by striking out all the words following sub­ clause (iv) , and (

b) as to subsection (5) by striking out the words "ap­ pointed under this Act".

Section 6 is amended by renumbering the

section as subsection (1) and by adding thereto the following sub­ section: (2) Subsection (1) applies only where ,the Crown is not a party to, nor affected by, the agreement, order or other document setting out the arrangement.

Section 7 is amended (

a) by renumbering the

section as subsect,ion (1) and by adding after the words "assessm'ent roll" the words "relating to mineral dghts other than petro­ leum rights", and (

b) by adding after the renumbered subsection (1) the following subsection:

(2) Upon the completion of the assessment roll relating ,to petroleum rights, the chief assessor shall endorse thereon or attach thereto a certificate set­ ting out the date upon which the roll was so com­ pleted, and shall sign the roll and deliver it to the chairman of the Conservation Board. 7. The following

section is added after

section 8: 8.1 The chairman of the Conservation BQard on receipt of the assessment roll shall 2 (

a) deliver a copy of the assessment roll and Qf the certificate endorsed thereon to the Deputy Minister, who. shall cause it to be placed in the Department

3. This

section will ~ot be necessary.

Section 2 reads: 2. Every persoOn within 30 days after becoming an owner under a certificate of title shall deliver to the Deputy Minister a written state­ ment in which he shall set oOut (

a) the legal des'cripUon of the land in respect of which he has become the owner of a mineral :r!ight, (

b) the kind oOr kinds of mineral or minerals, (

c) the nature and extent of his' :r!i.ght to the mineral 001' minerals, and (

d) the mineral or minerals, if any, that are being pl'O,duced or have to his knowledge been produced at any time within the tract.

Section 5 ( 1) (

b) and ( 5) pres en tly read: 5.

(1) In each year before the first day of March (

b) the chief assessor shaH cause to be prepared an assessment 1'011 setting out with respect to each tract (

i) a brief description of the mineral or minerals toO which the ass'essed mineral right relates, (ii) the name and address of the owner of the mineral right, ('iii) the nature of the owner's mineral right, and (iv) the assessed values of the mineral rights assessed, except that the chief as's-essoOr may om~t from the assessment roll the assessment with respect to any owner where the asses· sed value of the mineral right is less than $100.

(5) The chief asses'sor or any other assessor appointed under this Act may for a purpose relating to an as,sessment enter upon and in· spect any land or property. 5. The

section will be made applicable only where the Crown is not a party to the unit agreement.

Section 6 presently reads: 6. If an arrangement is made whereby a mineral within an area compr:ising more than ,one tract is to be developed by unit operation of the area, or if such an arrangement is amended or terminated, then a copy of the agreement, order or other do'cument setting out the armngement under which the unit operation is to be conducted, or the amendment or termination thereoOf, shall be filed Wlith the chief as'sessor. 6. The assessment roll relating to the assessment of petroleum rights will be delivered to the Energy Resources Conservation Board.

Section 7 presently reads: 7. Upon the completion of the assess-ment roll, the chief assessor shall endorse thereon 001' attach thereto a certificate setting out the date upon which the roll was so completed, and shall sign the roll and deliver it to the Deputy Minister. 7. The posting of the assessment roll and the mailing of the assessment notices in relation to the assessment of petroleum rights will be carried out by the Energy Resources Conservation Board. 2

at Edmonton so that the public has ready access to it for a period of at least 20 days, (

b) cause a 'Copy of the assessment r'Oll and of the certificate endorsed ,thereon to be placed (

i) in the Land Titles Office at Calgary, and (ii) in the 'Office of the Conservation Board at Calgary, S'O that the public has ready access to it for a period of at least 20 days, and (

c) within 10 days after the placing 'Of the copy of the assessment roll and the certificate in the office of the COonservation Board at Calgary cause to be sent by mail to each owner whose name appears on the assessment roE (

i) an assessment notice containing the particulars appearing in the assessment roll with respect to the petroleum rights assessed, and (ii) 'a COopy of

section 15.1, subsection (1). 8. The words "the Board" are struck out wherever they appear in

section 9, subsections (3) and (4) and sections 10 to 16 and the words "the Appeal Board" are substitut­ ed therefor ...

Section 14, subsection (1) is amended by adding after the wovrds "whose name appears up'On the assessment roll" the words "relating to rights to minerals other than petroleum" . 10. The follortving s(>'ctions are added after

section 15,' 15.1

(1) An owner whose name appears upon the as­ se'ssment roll relating to petroleum rights may, upon giving the Conservation Board notice in writing after the date upon which the aSlsessment notice is mailed and on or be­ fore the next following April 30th, appeal to the Conserva­ tion Board and may on the appealwpply (

a) to have the asseSls,ment roll varied and to have al­ teredan assessment shown thereon that the owner alleges to have been wrongfully made or improperly assessed, or to. be ton high 'Or too low, 'Or (

b) to have any right to petroleum assessed that the o.wner alleges is liable tn be and has not been as­ sessed, and ,to have such petroleum right included in the assessment roll.

(2) The chief assessor m'ay, upon giving the Co.nser­ vation Board notice in writing within 30 days after the date of placing the copy of the assessment roll and the cer­ tificate in the Department at Edmonton, the Land Titles 3

8. This amendment will make clear which Board is being re­ ferred to in the sections dealing with appeals. 9. Appeal prOVISIOns contained in

section 14 will not be ap­ plicable to appeals relating to the assessment of petroleum rights. 10. Provision is made for appeals relating to petroleum rights to go to the Energy Resources Conservation Board rather than to the Mineral Assessment Appeal Board with a further right of ap­ peal to a Cabinet Committee. 3

Office in Calgary and the office of the Conservation Board in Calgary, appeal to the Conservation Board, and on the appeal may apply (

a) to have the assessment roll varied and to have al­ tered any asse,ssment shown thereon that the chief assess'Or .alleges to have been wrongfully made or improper'ly assessed, 'Or to be too high 'Or too low, or (

b) to have any right to petroleum assessed that the chief assess'Or alleges i,s liable to be and has not been assessed, and to have such petroleum right included in the a,slsessment 'roll.

(3) If, at any time before April 30th, it appears from an appeal 'Or otherwise that any right t'O petroleum was as­ sessed in the name of ,the wrong person as owner and that the name 'Of another person should be pla,ced .on the alssess­ ment roll as owner, the chief assess'Or (

a) shall appeal to the Conservation Board to vary the assesisment roll accordingly, and (

b) shall cause to be Isent by mail to the other person whose name should be placed upon the assessment roll a copy of the notice of appeal, an assessment notke ,containing the particulars appearing in the aSlsesment roll with respect to the petroleum right assesRed and a 'copy of this secti'On. ( 4) Where proceeding'ls are taken under subsection (3) to include upon the assessment roll the name of a pers'On, that person may appeal to the Conservation Board in the same manner and upon the Isame grounds as if his name had appeared upon the assesslment roll when endorsed by the chief assessor.

(5) A person entitled to appeal under ,subsection (4) may give hilS notice in writing to the Conservation Board and the chief as,sessor (

a) on or before the next following April 30th, if the notke prescribed by subsection (3) is sent from the offl'Ce .of the chief assessor on or before April 15th, or (

b) within 15 days from the date on which the notice prescdbed by subsection (3) is sent from the office of the chief asseSls'Or, if such notice is sent after April 15th. 15 .. 2 As soon as practicruble after April 30th in each year, the Conservation Board (

a) shall hear all appeals duly filed by owners and by ,the chief a SIS essor, and (

b) shall make such disposition of the appeals as the Conservation Board considers just. 15.3

(1) An owner within 30 days of being informed of the disposition made by the Conserva,tion Board under 4

section 15.2 may further appeal from the de,cision to a com­ mittee of member,s .of the Executive Council designated by the Lieutenant Govern.or in Council.

(2) Thec.ommittee shall hear the appeal as soon as prac­ ticahle, and whether or not a tax n.otice has been mailed under

section 19, and may (

a) confirm the assessment, or (

b) vary Ithe :assesment and direct the Conservation Board t.o revise the assess,ment roll accordingly, or (

c) instruct the Conservation Board to reassess the petr.oleum ri~ht in acc.ordance with the committee's directions, and the deci,sion of the committee thereon is final.

(3) Where the c.om'mittee varies the aSlsessment the Superintendent shall accordingly adjust the tax payable with respect to the tract and refund any overpayment that may ha ve been made.

Section 16 is amended (

a) by adding after subsection (1) the following sub­ section:

(1.1) When the Conservation Board has disposed of the appeals mentioned in

section 15.2 have been di,sposed of, the Conservati.on Board (

a) shall revise the ,assessment roll in accordance with the dispositi.on made of the appeals, and (b ) 'sh~tll cause to be attached to the assessment roll so r,evised lacertificate which may be in Form A in the

Schedule with all necessary modifica,tions. (

b) as to subsection (2) by adding after the words "subsecti.on (1)" the words "or (1.1)".

Section 17, subsection (1) is amended by striking out the words "the Board" and by substituting therefor the words "the Appeal Board or the Conservation Board, as the case m1ay be,". 13. SecUon 18 is struck out and the following

section is substituted therefor: 18. Notwithstanding any other provi,sion .of this Act (

a) no assessment notke need be sent to, and (

b) no tax shall be levied on, any owner where the aggregate aSlsesed value of his rights to a mineral is less than an amount pres1cribed by the regu­ lations. 5

I I. This amendment will make prOVISIons for the Conservation Board amending the assessment roll following the disposition of the appeals. 12.

Section 17 (1) presently reads: 17.

(1) Each year up'On delivery of the assessment roll and after appeal and revision, if any, the Deputy Minister shall proceed to levy a fax upon the assess'ed value of each 'Owner's right to a mineral as shown 'On the assessment roll as certified by the chlef assessor or by the Board and at such rate or rates' 'On the dollar as the Lieutenant Governor in Oouncil may from ,time to' time direct.

Section 18 presently reads: 18. If the tax that an owner Wlould have to' pay under

section 17 with respect to a tract is less than $1, the amount payable is $1. 5

Section 19 is amended by adding after the word "rate" the UJords "or rates". 15. Sectio,n 20 is struck out and the following

section is substituted therefor: 20.

(1) Where a person is the regi,stered owner under The Land Titles Act of a specified undivided int€rest of less than the whole in a mineral right, any -assessment, taxation or p~oc,eedings authorized with respe,ct toa mineral right by this Act may be made, levied or taken with respect to his interest in the m,ineral right in the same manner as if he owned the mineral right in the whole of the tract and without regard to any other owner of an interest in the mineral right in the same tract.

(2) Where more than one person is registered under The Land Titles Act as the owner jointly Dr in common (

a) of a mineral right, or (

b) of a specified undivided interest of less than the whole in a mineral right, all such persons shall be regarded as 'One owner for the purpose1s of this Act.

(3) Where more than one person i,s the owner of a right to a mineral under a Crown agreement (

a) jO'intly, or (

b) in common, or (

c) in specified undivided interests, all such persons shall be regarded as one owner for the purposes of this Act.

Section 21, clause (b), subclause (

i) is amended by adding after the UJords "right to a mineral" the words "in a tract".

Section 24 is struck out and the following

section is substituted therefor: . 24. The taxes and penalties payable pursuant to this Act constitute a cha~ge upon the mineral right in respect of which they are payable and the charge s.o constituted has priority over other charges, m.ortgag,es, liens or encum­ brances except a lien for wa,ges filed under The Builders' Lien Act. 18. The following

section is added after

section 24: 24.1 In the case of a Crown agreement, where the tax~ are 30 days in arrearn, the owner of the mineral right IS in default with respect to the Crown agreement. 6

Section 19 reads: 19 When the Lieutenant GOovernor in Council has fixed the rate, the Dep~tY Minister shall forthwith cause to be sent by mail to each per­ son whose name appea~s' on the a~sessment roll as the owner of any assessable right to a mmeral a notice (

a) describing the mineral right assessed, (

b) stating the amount of 'tax payable to the Minister in respect of the mineral right, (

c) containing a demand for the payment of the tax by a specified date, and (

d) containing a statement of the penalties outlined in

section 23, subsection (1). 15. This amendment will result in one assessment and taxation. At present owners of specified undivided interests are treated differently under freehold titles than under Crown agreements. 16. This amendment clarifies the search certificate required to be given by the Deputy Minister. 17. This amendment will result in the Crown not being able to recover the amount of taxes unpaid by court action with the only recourse being to take ti tle tOo the mineral right or cancel the Crown agreement, as the case may be.

Section 24 presently reads: 24.

(1) The taxes and penalties' payable by a person pursuant tOo this Act (

a) are a debt due to the Crown, and (

b) are recoverable as such in the Supreme Court of Alberta or in any other 00urt of competent jurisdiction in the name of the Crown represented by the Minister.

(2) The tax·es and penalties constitute a charge upon the mlineral right in respect of Which they are payable.

(3) The charge under subsection (2) has prtority over other charges, mortgages, liens or encumbrances except a lien for wages filed under the provisions' of The Builders' Lien Act. 18. This amendment will result in normal cancellation proceed­ ings being taken under the Crown agreement when default is made in the covenant to pay taxes. 6

Section 25 is amended (

a) by striking out all the words preceding clause (

a) and by substituting therefor the following: and 25.

(1) Where the taxes with respect to a min­ eral right 'Consisting of an estate in fee simple in a mineral are 30 days in arrears, the Deputy Min­ ister or Superintendent may send a notice by reg­ istered mail to the owner, at the addres:s set out in the -certificate of title relating to the mineral right, advising him that unlesls all taxes and pen­ alties due and owing at the time of payment with -respect to the mineral right are paid within 90 days from the date of the m1ailing of the notice, his cer­ tificate of title may be cancelled with respe0t to such mineral right and title vested in the Crown (

b) as to subsection (2) b1f striking out all the words following the words "to each person" and by sub- 8tituting therefor the follow'ing: (

a) shown by memorandum on the certificate of title as having an interest in the mineral right and at his address indicated in the document referred to in the me-morandum, or (

b) who, to' his knowledge, may have an interes,t in the mineral ri~ht in respect of which the tax is in arrears.

Section 26 is amended (

a) as to subsection (5) by striking out the figure "29" and by substituting therefor the figure "28", (

b) as to subsection (6) by striking out the words "six months" and by substituting therefor the words "60 days", (

c) as to subsection (8) by striking out the words "one year" and by substituting therefor the words "90 days", and by adding before the words "subsection (1)"the words "section 25,", and (

d) as to subsection (10) by striking out the words "one year" and by substituting therefor the words "90 days".

Section 27, subsection (1) is amended (

a) by striking out the words "under

section 48, sub­ s,ection (2) of The l'rfines and Minerals Act," and (

b) as to subsection (2) by striking out the figure "5" and by SUbstituting thereforr the figure "8". 7

19. This amendment will shorten the period of time within which the tax must be paid if cancellation is to be avoided and also provides for giving notice of possible forfeiture to any person who has registered an interest in the mineral right in the land titles office or who to the knowledge of the Superintendent may have an interest which could be affected by such forfeiture. 20. These amendments tie into the amendments contained in the preceding

section shortening the period of time for payment of taxes. 21. Interest rate increased.

Section 27(1) and (2) presently read: 27.

(1) Until the ·certifi.cate of title with respect to the mineral right has been cancelled and title has vested in the Crown under secHa'll 26, or the Crown agreement has been cancelled under

section 48, sub­ section (2) of The Mines and Minemls Act, the mineral right shall continue to be ass·essed and taxed. (2) \Vhere taxes or any part thereof are in arrears interest shall be charged thereon at the time any payment is made, at the rate of 5 per cent per annum calculated quarterly. 7

Section 30 is a1nended by adding after clause (

d) the following clauses: ..... (

e) pres1cribing the cireumstances under which any specified -class of mineral right is exe·mpt from as­ sessment and from the payment of tax under this Act, either with respect to the whole of the mineral right or with respect to any particular mineral or minerals; (

f) fixing the maximum 'assessed value of rights to a mineral of an owner whieh exempt such rights from the levy of tax hereunder; (

g) designating ,the members of the Ex·ecutive Council who shall form the committee for considering ap­ peals under

section 15.3 and prescribing the pro­ cedure w.ith respect to Isuch appeals. 23. The Mines and Minerals Act is amended (

a) as to

section 42, subsectiom (1) by striking out the words "but is not subject to the provisions of any statute relating to the recovery of taxes", and (

b) as to

section 48 by striking out subsection (2). 24. This Act comes into force on a day to be fixed by Proclamation. 8

Section 30 presently reads: 30. The Lieutenant GovernDr in Council may make such regulations as are necessary Dr convenient f,or the purpose of carrying out the proViisions oOf this' Act and in particular (

a) governing assessment procedures and principles; (

b) exempting any class ,of mineral right, any right toO a particular mineral, Dr any right to a mineral in any area oOf land from all oO,r any of the provisiDns oOf this Act; (

c) fixing the 'length 'Df an exemption under clause (b); (

d) authDrizing the Minister, up,on such information as he may re­ quire and upon such conditioOns as he may prescribe, to exempt from the payment of tax under this Act any specified right toO a mineral in a tract. 23. This amendment will resolve an apparent conflict with sec­ tion 42(1) of 'The Mines and Minerals Act which reads as follows: 42.

(1) The interest of any person other than the Crown in any mineral that is the property Df the Grown is liable to', assessment and taxation but it is not subject to the proviSiions of any statute relating to' the recovery of taxes.

Section 48 (2) will no longer be required because of

section 18 of the Bill. 8

(2) Where a lessee or the holder of a certifi.cate of record fails to' pay any tax levied against his right to a mineral under The Mineral Taxation Act, 1972 the Minister may canceI the agreement or certificate Df reoord. Title: 1972 (17th, 1st) Bill 124, The Mineral Taxation Amendment Act, 1972