Acquisition of Rights

The extraction of peat on Crown lands is administered under the Quarriable Substances Act. It is a two-step process: applicants must first obtain a Peat Exploration Licence, then a Peat Lease in order to extract peat. A Peat Exploration Licence is issued through a public tender process initiated by the Department of Natural Resources.

Peat Exploration Licence

A Peat Exploration Licence gives the holder the exclusive right to apply for a Peat Lease. Licences are of one-year duration with provision for a single, one-year extension. Only one licence can be held by an individual or a company at any moment in time. The required annual work expenditure in respect of a licence is $2.50 per hectare. It is a term and condition of a licence that all data obtained under the licence be submitted to the Minister.

Call for Tenders

Call for tenders are published in the Royal Gazette and other appropriate publications at least 60 days prior to the closing date.

Any company that intends to submit a tender must be registered to do business in New Brunswick. Registration may be made by application to: Corporate Affairs, Department of Justice, P.O.Box 6000, Fredericton, New Brunswick, Canada E3B 5H1

Submission of Tenders

In response to a call for tenders, the tenderers shall take notice of the tender specifications and forward their proposition by the stated closing date. Section 4.2 of the  Peat Mining Policy  describes in detail the criteria used to evaluate the tenders in addition to further information on peat exploration in the Province.

Publication of Tender Results

Acceptance of a tender proposal automatically leads to the issuance of a Peatland Exploration Licence to the successful applicant. The results of a “Call for tenders” notice for a Peat Exploration Licence are published within ninety days after the closing date of the call for tenders on the Minerals and Petroleum Resources website. They are also distributed to all individuals subscribed in the Client Mailing List.

Peat Lease

A Peat Lease  gives the holder the right to extract peat from a Crown peatland. At any time during the term of a Peat Exploration Licence, a licensee may apply for a peat lease by submitting development, drainage and restoration plans. Peat Leases are issued for terms not exceeding ten years. The renewal of a peat lease is normally an administrative formality unless the lessee defaults on one or more conditions of the lease.

Additional Requirements under a Peat Lease

As part of a comprehensive review process, the applicant is requested to submit additional details pertaining to the development and reclamation of the proposed peat extraction site. This information generally includes but is not limited to:

Location Plan

A 1:10,000 scale or greater detail map showing natural watercourses, public roads and any surrounding or neighbouring land uses within 1000 metres of the proposed extraction site.

Development Plan

• Description of the extraction method and estimated annual peat production.
• Proposed development sequence of the peatland.
• A site plan showing entrances to the site, roads, location of buildings and facilities, peat stockpile location.
• A drainage plan showing the proposed ditch network and location of settling ponds.
• A map showing the proposed lease boundaries.

Environmental Protection Plan

• A description of the mitigative processes proposed to treat water discharged into the surrounding environment.
• A description of the mitigative processes proposed to limit peat dust from leaving the extraction site.

Reclamation Plan

• A detailed description and schedule of the planned procedures for the restoration, reclamation and rehabilitation of the site.
• An estimated cost of the reclamation program.

Reporting Requirements

The holder of a peat lease is required to submit a royalty return form stating quantities of peat removed and include royalty payment. Royalty on peat material is at a rate established by subsection 25(3) of General Regulation 93-92 under the Quarriable Substances Act. It is due before the 20th day of July and the 20th day of January.

Peat Lease Renewal

The Minister of Natural Resources may renew a peat lease for a term equal to the original term or such lesser term as the Minister considers advisable in the circumstances. Application to renew should be made to the Quarriable Substances Manager at least three months before the termination date. The Minister may add terms and conditions or remove existing ones on the lease.

Peat Lease Transfer

A written approval is needed from the Minister in order to transfer a peat lease.

Cancellation, Expiry or Surrender

The Minister may cancel or suspend a peat lease if the lessee does not comply with the terms and conditions of the lease.

Standard Conditions to Operate a Peat Extraction Site

The following conditions generally apply to a peat extraction operation located on Crown land:

• Permission to cut wood within a peat lease must be obtained from the local Forest Ranger District Office.
• A minimum setback of 50 m must be maintained between peat workings and adjacent private land unless there is a written agreement between the peat lessee and the adjacent landowner.
• Appropriate approval is required from the Department of Environment (i.e. Watercourse Alteration Permit, Certificate of Approval to Operate) before extracting any peat from a peat lease.
• Operators shall be aware that the Workplace, Health and Safety Compensation Commission have regulations addressing the safe operation of equipment in a peat extraction operation.
• All operators are required to have a reclamation plan approved by the Minister of Natural Resources and to rehabilitate the area they have worked within a Crown peat lease.

Fees, Charges and Royalties

The following table summarizes the fees related to applications, rents and royalties for the acquisition and development of peat resources:

A "bale" represents a volume of 0.170 m³ of peat where the peat is at approximately 50% moisture and compressed by a factor of two.

The base royalty is $0.10 per standard bale. For value-added peat products, the royalty is $0.06 per bale. “Value-added peat” means peat used in a product that is sold, on an equal volume basis, for a price at least twice that of ordinary peat.

For additional information, please contact the Peat Resources Geologist