Alberta Offer to Sell Interest in Crown Leases

Put crown leases into trust with this downloadable Declaration form for the Province of Alberta.

• Purpose of Trust. Title to the crown leases are being placed in trust as part of the sale and conveyance of the crown leases to a beneficiary.
• Role of Trustee. The trustee will hold the leases on behalf of the beneficiary, and will not sell, transfer or encumber them unless instructed to do so in writing by the beneficiary.
• Rights of Beneficiary. The beneficiary will have access to the lands for exploration, drilling and removal of petroleum and natural gas extracted from the lands.
• Payments. The beneficiary will make timely payment of its share of the annual rentals under the leases.
• This is a downloadable, easy-to-use template form.
• Intended for use only in the Province of Alberta, Canada.

Use this downloadable template to make an offer to purchase an interest in crown leases in the Province of Alberta.

• Allocation of Purchase Price. The offer details how the purchase price will be allocated between petroleum and natural gas rights, tangibles, and miscellaneous interests.
• Interest Calculations. This sample offer letter includes two interest clauses - one for no interest, and one for interest to be calculated from the effective date to the date before closing.
• Formal Agreement. If accepted, the offeror will prepare a formal purchase and sale agreement.
• Conditions Precedent. The offer is subject to:
  • the offeror performing a satisfactory due diligence review of all books, files, records, and contracts;
  • the offeror receiving all necessary regulatory approvals;
  • a satisfactory environmental audit by the offeror;
  • the vendor being satisfied that Alberta Energy will approve the transfer.
• Jurisdiction. The offer form is written to be used in the Province of Alberta but can be modified for use in other Canadian provinces.
• How to Get the Form. You can download the MS Word template immediately after purchasing it.

Use this 7-page checklist to help you prepare a Purchase and Sale Agreement for petroleum and natural gas rights in Alberta.

The checklist covers the issues to consider and the documents to be obtained and reviewed as part of the transaction, such as:

• definitions of important terms;
• how the purchase price will be allocated;
• maintenance of the business;
• access to pertinent records and documents;
• representations of the purchaser and the seller;
• conditions of closing.

This Alberta Checklist for Oil and Gas Purchase and Sale Agreement is available as a downloadable and fully editable MS Word form.