Compensation Resulting from Regulatory Changes

The Historical Resources Management Branch (HRMB) of Alberta Arts, Culture and Status of Women administers matters related to historical resources including archeological resources in Alberta.

Alberta Arts, Culture and Status of Women Land Use Procedures Bulletin for Surface Materials Historical Resources Act (HRA) Compliance Section B requires that applicants must apply for Historical Resource Act approval for all proposed surface materials developments over 5.0 hectares in size.  At the ministry’s discretion, a Historical Resources Impact Assessment (HRIA) may be required.

For surface material operations five hectares or larger on public land or Class 1 pits as defined in the Code of Practice for Pits on private land applicants must apply for HRA approval through Alberta Culture’s online permitting and approval system for ALL proposed surface materials developments over five hectares in size. Development activities cannot proceed until HRA approval has been obtained.

At the Government of Alberta’s discretion, activities that are targeted for lands that will, or are likely to, contain significant historic resource sites MAY require the conduct of HRIA prior to the onset of development activities.

A copy of the Historical Resources Act approval document must be included with the Conservation and Reclamation Business Plan that is submitted to Alberta Environment and Protected Areas. This plan is mandatory for registration of a gravel pit under the Code of Practice.

In 2021, during the application stage to expand an existing gravel pit, the Municipal District of Willow Creek undertook an archaeology survey as part of a Stage 1 Historical Resources Impact Mitigation review which is a requirement of the HRIA. This was completed by the developer at a cost of $22,889.

During the review of the lands upon where the existing gravel pit was located it was determined that the ‘Listing of Historical Resources’ index described the land as having Historic Resources Value (HRV) of five. Given that lands with an HRV of five are considered to have “high potential” but do not contain known historic resource sites, there is a requirement to seek HRA approval/clearance. However, Section 31 of the Historical Resources Act requires that anyone who discovers a historic resource during the course of development must notify Alberta Arts, Culture and Status of Women for direction on the most appropriate action.

Through the HRIA a historical resource site was newly discovered consisting of heated stones and stone chips.  It was determined that additional archaeological work would be required which would consist of excavation of an area approximately 80m² with work expected to take approximately 14 days. The cost for this work was expected to be $139,941.51. Following the completion of the required field work an interim report would be issued summarizing the results of the HRIM fieldwork which would be provided to the HRMB that would guide their regulatory review of the gravel pit expansion application and provide the basis for the regulatory response which may include a Historical Resources Act approval or alternatively the issuance of a Stage 2 Historical Resources Impact Mitigation study which would require an unknown amount of additional archaeology work at an unknown additional cost. This results in a considerable risk to the landowner.

The Historical Resources Management Branch Schedule requirements states “depending on the results of the Stage 1 investigation, Stage 2 investigation may be required.”  This caveat is intended by the HRMB to reserve the possibility that during the required fieldwork materials may be found that warrant additional work however this placed a significant and unknown risk to the municipality and the landowner in terms of cost and as such the expansion of the application to expand the gravel pit did not proceed.

As a result of the requirements of the Historical Resource Management Branch substantial costs already spent by the Municipal District and the landowner on the application process were lost and more significantly scarce gravel resources immediately adjacent to a working gravel pit have been permanently sterilized from future development and use.

In June 2022, the Select Special Committee on Real Property Rights made six recommendations pertaining to its mandate including recommendation six: “That the Government develop a comprehensive compensation structure by which owners of real property are compensated if regulatory changes result in the removal of reasonable uses of real property.” In this case, the private landowner has lost an estimated $250,000 in revenue as the aggregate cannot be mined without completing the $139,941.51 HRIA. Depending on the HRIA’s findings there may be a requirement to complete more assessments. Furthermore, as a result of the Act, the municipality’s service delivery cost to the community has increased as aggregates now need to be hauled further from alternative gravel pits to service the local roads.

Historical Resource Value (HRV)

• HRV 1: contains a World Heritage site or a site designated under the HRA as a Provincial Historic Resource
• HRV 2: deactivated (formerly used to designate a Registered Historic Resource (eliminated in 2019 as part of the Red Tape Reduction Implementation Act))
• HRV 3: contains a significant historic resource that will likely require avoidance
• HRV 4: contains a historic resource that may require avoidance
• HRV 5: high potential to contain a historic resource

Maps of Southern Region: Listing of Historic Resources (alberta.ca)

Blue areas on the map indicate a Historical Resource Value of 5 which results in a requirement for approval from the Alberta Government on surface materials developments over 5 hectares. This process holds the potential for Alberta Culture to order additional work as a condition of its approval at the landowner’s cost.

Note that the HRV 5 follows every river, stream or major coulee feature in southern Alberta: an area where gravel resources are prominently found.

Historical Resource Impact Assessment Process: https://www.alberta.ca/historic-resource-impact-assessment.aspx

If an activity is likely to result in the alteration of, damage to or destruction of a historic resource, the person or company undertaking the activity may be required by the province to:

• conduct a Historic Resources Impact Assessment (HRIA)
• submit a report of the HRIA results
• avoid any historic resources endangered by activity
• mitigate potential impacts by undertaking comprehensive studies
• document historic structures
• consult with First Nations

Project-specific requirements are issued in response to a Historic Resources Application, but all assessments must comply with some standard conditions.

See the following Standard Conditions document for details: Standard Conditions under the Historical Resources Act

Alberta Historic Resources Management Branch – Listing of Historic Resources (Map): Listing of Historic Resources (alberta.ca)