News
Crown Land auction revenue surpasses $2 billion in fiscal 2006-07
March 30, 2007
The Department of Energy collected $2.4 billion in land sale bonuses from oil sands and petroleum and natural gas (P&NG) rights in fiscal 2006-2007. The only other year when bonuses exceeded $2 billion was 2005-2006, when the department collected $3.4 billion.
Oil sands bonuses rose to $1.326 billion from $1.280 billion in fiscal 2005-06, while P&NG sales were down to $1.054 billion from last year's total of $2.165 billion. Overall, this is still a very strong year for land sales.
Price per hectare is often the best indicator of the value of the commodity. This year's average was $887.53/ha for oil sands and $434.41/ha for P&NG.
The last land sale of the 2006-07 fiscal year was held on March 21, 2007.
| Final results for fiscal year 2006-07 | P&NG | Oil Sands | Total |
| Bonus | $1.055 billion | $1.326 billion | $2.381 billion |
| Hectares | 2.428 million | 1.494 million | 3.922 million |
| Avg, Price/ha | $434.41 | $887.53 | $607.01 |
e-Bidding now online
Last updated July 28 2006
The Department of Energy has launched e-Bidding to allow oil and gas companies to bid on the mineral rights to Crown-owned land using the internet, saving time and money for companies and taxpayers.
Public offerings or sales for the right to explore for and use the petroleum and natural gas and oil sands associated with specific parcels of land are held every two weeks in Alberta. The highest bidder for each parcel of land is issued an agreement granting the exploration and development rights, but the Crown retains ownership of the resources.
To take part in the auction, oil and gas companies must be registered to do business in the province of Alberta and have an Electronic Transfer System (ETS) account allowing access to the web-based e-Bidding system. Previously, bids were delivered to the department's Calgary office on sale day. As of June 28, 2006 paper copies of bids are no longer accepted and all bids must be placed using e-Bidding.
e-Bidding provides easy, centralized access to accurate, comprehensive and timely information on public offerings. It streamlines business practices for both the department and for oil and gas companies operating in Alberta by reducing turn-around times and increasing data accuracy and reliability. Because it is web-based, e-Bidding allows for greater access to the land sale process, regardless of geographic location, while continuing to maintain the confidentiality and integrity of the public offering.
Differences that participants will notice include the ability to withdraw bids prior to the close of the sale using the system and the electronic issuance of an agreement (lease, licence or permit) to the highest bidder granting the rights to use the resources for a specified time period.
Results will be released at approximately 3:30 p.m. on the day of the sale. The highest bidder and the winning amount for each parcel of land will be published. This information will be available on the Public Offerings page of this website following the sale.
For more information, please contact Brenda Allbright, 780-422-9393 or Retha Purkis, 780-422-9426.
Fiscal Year end results show Crown Land auction revenue surpasses $3 billion
March 30, 2006
Activity in Alberta's energy industry has grown to record levels, contributing to high resource revenues from, land bonus revenues and royalties from natural gas, synthetic crude oil and bitumen.
In 2005-06 revenues totalling $3.4 billion were paid by the energy industry through Alberta's Crown land auction process setting a record for the most revenue collected in a fiscal year - almost $2.2 billion higher than the previous record in 2004-05.
The last land sale of the 2005-06 fiscal year was held on March 22, 2006. Throughout the year results for both petroleum and natural gas and oil sands rights were exceptional.
| Final results for fiscal year 2005/06 | P&NG | Oil Sands | Total |
| Bonus | $2.165 billion | $1.280 billion | $3.445 billion |
| Hectares | 3.121 million | 742,000 | 3.863 million |
| Avg, Price/ha | $693.82 | $1,725.22 | $891.83 |
Statistics - Fiscal year:
Highest bonus amount collected in a fiscal year:
- PNG - $2.165 Billion (almost doubling last years final tally)
- OS - $1.28 billion (6 times higher than last year; and 3 times higher than the previous record of $150 million set in 97/98)
- TOTAL - $3.445 billion
Most hectares sold in a fiscal year:
- OS - 742,000 (previous high was 324,796 in 97/98)
Highest average per hectare in a fiscal year:
- PNG - $693.82 per hectare
- OS - $1725.22 per hectare
Highest price paid for a single parcel:
- PNG - $46.0 million (January 25, 2006)
- OS - $79.9 million (February 8, 2006)
Statistics - Single Sales:
Highest amount collected in a single sale:
- PNG - $475 million (December 14, 2005)
- OS - $559 million (February 8, 2006)
Most parcels offered in a single sale:
- PNG - 867 parcels (December 14, 2005)
Most hectares sold in a single sale:
- PNG - 413,422 hectares (December 14, 2005)
- OS - 209,152 hectares (January 25, 2006)
