While the wealth lies below Alberta's surface, companies must first gain access above ground. This is complicated by the fact that most land in Alberta carries two titles and two sets of rights: the surface title gives the holder control of what happens atop the land, while the mineral title holder has the right to explore for the riches below ground.

Companies usually acquire mineral rights from the Alberta Department of Energy (DOE), which administers Crown mineral rights on behalf of all Albertans. The Government of Alberta (the Crown) owns about 81 per cent of the province's mineral rights, while the remainder are either owned by the federal government or privately. Rights not held by the government are referred to as "Freehold" mineral rights.

Energy companies bid on Crown mineral rights for conventional oil and natural gas or oil sands at public land sales held every two weeks. Dispositions are issued to the highest bidder for each parcel.

Companies seeking to drill on Freehold mineral rights must deal directly with the title owners, who often have little experience doing business with the oil industry. The Freehold title holder can seek assistance from the Office of the Farmers' Advocate for information on surface rights, seismic activity, mineral leasing, and other topics.

More information about the disposition of mineral rights in Alberta is available on the Department of Energy's Web site http://www.energy.gov.ab.ca

Once a company has secured the mineral rights to a property, it must apply to the ERCB to develop any oil or gas project. The ERCB requires all companies to provide details about the project to anyone who may be directly affected.

For more information, see EnerFAQs No. 8: Proposed Oil and Gas Development, A Landowner's Guide.

Finding the Reserves

Before an oil company can reap the rewards, it must first locate the oil and gas reserves.

Geologists and geophysicists study subsurface rock formations to identify the areas likely to contain hydrocarbon deposits. They employ different tactics in their attempts to decipher the subsurface code, which includes analyzing core samples and seismic data.

Seismic surveys involve sending vibrations deep into the ground to identify rock features, just as fishing boats use sonar to find schools of fish. Generating vibrations from special "vibroseis" trucks, small explosive charges, and other methods creates subsurface waves that are recorded by receivers known as geophones or "jugs."

A computer processes the data to generate a 2-D or 3-D image, which is then interpreted by geoscientists who can better determine what lies below.

Companies can also study core samples taken from nearby wells. A core sample is a cylindrical cross-section of rock collected during the drilling of a well using a special drill bit.

The ERCB requires that a section of every core sample in the province be submitted to its Core Research Centre (CRC) in Calgary for analysis. The CRC is a huge building on a four-hectare site at Calgary's University Research Park . It hosts the largest single collection of geological samples in the world, including nearly 14 million vials of drill cuttings from wells.

While the ERCB collects core samples, it does not regulate seismic activity. Permits are granted by the Public Lands and Forests Division of Alberta Sustainable Resource Development (SRD).

Conditions are often placed on seismic activity, and the SRD inspects operations to ensure that the companies adhere to these conditions, which include reclamation efforts.

For more information about seismic survey, contact Alberta Sustainable Resource Development.