Land ownership generally includes the surface of the ground, the layer beneath it, and the air above it. However, specific rights can be associated with different parts of the land: surface rights, mineral rights, and water rights.
Surface rights refer to the ownership of the land's surface, the air space above it, and materials like sand, gravel, and clay that can be excavated. These rights are governed by Alberta's Surface Rights Act, administered by Service Alberta. While surface rights cover the visible land and its immediate resources, they do not include the rights to any minerals below the ground.
Mineral rights pertain to the ownership of minerals beneath the land, such as oil, gas, coal, gold, silver, or copper. Most land titles in Alberta exclude these rights, as indicated by the phrase "excepting thereout all mines and minerals." In such cases, the mineral rights are often owned by the Crown or private entities.
While mineral rights holders have the legal authority to explore and extract minerals, they must ensure minimal disruption to surface rights owners. Some older titles may still include both surface and mineral rights, while others may specify ownership of certain resources with phrases like "all coal, petroleum, and natural gas."
Water is a valuable resource, especially for properties with access to rivers, lakes, or groundwater. In Alberta, water is owned by the province and regulated under the Water Act. Water rights, known as riparian rights in common law, allow landowners adjacent to natural watercourses to access and use the water reasonably.
A water right is established through a water licence issued by the province. This licence permits the legal use of surface or groundwater for specific purposes. Importantly, water licences are not registered on the Certificate of Title, so buyers and sellers of rural properties should inquire about existing licences. Typically, licences transfer with the land upon sale, but the Designated Director under the Water Act must be notified when water rights change ownership.
Understanding surface, mineral, and water rights is essential when buying, selling, or managing land in Alberta. Realtors should ensure clients are aware of these rights and conduct proper due diligence during transactions.