In September, the Alberta government posted on their website a notice for public offering of crown coal rights.
The notice was to solicit bids to purchase 1 coal lease for 1,2 hectares in the Badlands region of central Alberta.
According to the notice, rent for the leases would be $3.50 a hectare or $50, which ever is greater. There was also a bid fee of $625. These prices are similar to those listed in a 2020 offering for 11 coal leases in the Livingstone Range–Porcupine Hills area.
The government indicated that they would not consider any offers—otherwise known as a bonus—that were under $2.50 a hectare for any of the 12 leases.
The notice also indicated in an appendix that the leases were in a sensitive habitat area for several bird species: burrowing owls, raptors (such as ferruginous hawk, Prairie falcon, golden eagle, and bald eagle), and sharp-tailed grouse.
As such, surface access to this mining area is subject to restrictions.
The public offering date was 19 September 2024, and the notice indicated that accepted bids would be published on the government’s website the following day.
However, according to the notice of accepted offers posted on the website the same day, the lease received an offer.
WestMET Group Canada Ltd. offered a bonus of $92,640 for the lease in Township 4-12-028, which is represented by the grey shaded square in the map below. It is east of Drumheller and just south of Hanna.
Their lease would apply to 1,200 hectares within 2 sections (30 & 31) in this township. The rent in their offer was $77.20 a hectare.
This isn’t the first time these townships have seen fossil fuel leases granted. For example, 4-12-028 had a petroleum and natural gas license issued in 2008 to Standard Land Company Inc. for a $72,720 million bonus and a fee of $378.75 a hectare.
In March 2015, a similar lease was granted to whispering Hills Resources Ltd. Actually, it was two leases: one had a bonus of $364,389.12 and the other had a bonus of $161,950.72. The rent for each lease was $632.62 per hectare. They were also issued 2 leases for the bordering township of 4-12-027.
Formerly known as Westmoreland Mining LLC, WestMET Group Canada Ltd. is based out of Edmonton. They operate a humalite harvesting operation in the Hanna area, and several reclamation projects in Alberta.
Westmoreland, which is based out of Colorado, operates 3 mines in Alberta: near Edson, Forestburg, and Warburg.
Coal leases in Alberta last for 15 years but are renewable. They grant the lease holder the exclusive right to win, work, and recover coal. In addition to the rent paid, lease holders pay royalties on any coal produced. The royalty rate for coal from mountain and foothill mines is 1% of mine mouth revenue before mine payout and 1% of mine mouth revenue plus 13% of net revenue after mine payout.
This offering is the 18th public offering of crown coal rights made since 2006. The most recent was 8 leases to a single company in December 2020.
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[…] The Moratorium Order followed the release of the reports of the Coal Policy Consultation Committee. The Order contained an exception for so-called “advanced coal projects” but until January 15, 2025 it was generally effective in preventing new coal exploration activities on all the lands covered by the 1976 Coal Policy. That said, the province issued at least one new coal lease during the moratorium: in September 2024 (bidding documents and results here) for an area that contains sensitive habitat for burrowing owl, raptors, and sharp-tailed grouse! (For the only coverage of this that we know of, see Kim Siever’s piece here). […]