Assignments & Devolution of Title
Notices concerning lease compliance matters will be addressed to all registered lessees recognized in our mineral land records. We are unable to accept responses from parties whose interests are “held in trust” or parties that have acquired an interest in the leased lands without our consent. It is a requirement of all PrairieSky fee title mineral leases that our written consent is obtained prior to any transfer of a lessee’s leased interest to another party.
In the event that the recipient of a notice no longer holds an interest as lessee in the lease, a lease assignment is required. For the information and use of all lessees, a copy of our
Lease Assignment (Word) and Schedule 'A' to Lease Assignment is provided.
PrairieSky does not accept electronic signatures related to records that transfer an interest in land. The Electronic Transactions Act (Alberta) does not apply to such transfer of interests in land and until such time as the legislation is amended, PrairieSky will require original signatures on Lease Assignment Agreements.(*updated October 2017)
Similar to the Crown, we will NOT consent to an assignment if:
(i) the interest being assigned is less than an undivided interest in the entire lease (i.e. an assignment for a portion of the leased lands, leased substances or leased formations will not be approved) unless specifically permitted in the lease;
(ii) the intended assignee is a partnership or trust; or
(iii) the assignment does not meet the requirements of our standard form.
Broken Chain of Title
If the lessee’s chain of title is irretrievably broken, (e.g. Company XYZ has been dissolved), lessee(s) may complete and submit a Request for Clarification of Lease Interest form (Word). This
document can be completed and printed online. All documentation supporting the devolution of title to the desired lessee(s) must be included with the submission. PrairieSky
Royalty will not consider a Request for Clarification of Lease Interest if a Lease Assignment can be executed by the appropriate parties.
Upon review and confirmation of the title chain, we will prepare and forward a Lease Interest Clarification Agreement (Word) for execution. The sample here is provided for information only and is subject to change without notice. Our lease records will be updated following receipt of the executed Agreement by all applicable parties.