What's New in Alberta: Fall 2010

In this edition, we look at an incentive program for energy-efficient lighting and the province’s oil and gas land sales for the year.

Lighten up

The province has introduced a new $4 million commercial lighting incentive program to increase energy efficiency.

Businesses such as restaurants, offices and warehouses are eligible for a provincial rebate of $37,500 to $375,000 (depending on the building type) when energy-efficient lighting is used.

In order to be eligible for the rebates, all participants must have a pre-retrofit assessment done and demonstrate the potential for energy savings.

“Commercial property owners play a crucial role in our commitment to improve energy efficiency,” said Rob Renner, Alberta’s environment minister, in a press release. “And this initiative will help curb the sector’s greenhouse gas emissions and lower business costs.”

The program will run until the end of 2011 or until funding is exhausted.

Record oil and gas land sales

The province’s oil and gas land sales have hit a new high this year.

At the end of September, total sales reached $1.86 billion, topping the previous record of $1.83 billion set in 2005.

“Alberta’s oil and gas industry is expressing renewed investment confidence through record lease and license sales,” Alberta’s energy minister, Ron Liepert, said in a press release. “Changes to the royalty structure encouraging the deployment of new technologies was a significant factor supporting larger-than-expected lease and license sales.”

Petroleum and natural gas rights owned by the province can be purchased through a sale held every other week.

Clarifying coal bed methane ownership

The Alberta government has introduced legislation to provide clarity on who owns the right to produce natural gas in a coal seam – also known as coal bed methane – in situations where different parties own the mineral and natural gas rights under the same parcel of land.

Under Bill 26, coal bed methane would be owned by the holder of the natural gas rights.

“This amendment provides certainty in coal bed methane split title situations where different parties own the rights to coal and natural gas under the same parcel of land,” Energy Minister Ron Liepert said in a press release. “This will clear the way for coal bed methane development and continue the efficient and responsible development of Alberta’s abundant mineral resources.”

A provision in the bill is that existing agreements entered into by the natural gas owner or their lessee will not be affected.

The bill also states that natural gas owners and their lessees can’t sue coal owners or lessees for compensation for coal bed methane that was extracted before the legislation was enacted.

The bill is expected to become law later this year.