The plaintiffs, appellants, for many years prior to 1930, were holders of licenses to cut timber. These licenses, issued for one year but renewable, had been granted by Dominion officials under the authority of the Dominion Lands Act. The ground rentals and annual dues were increased by regulations from 1886 until 1930, when the rates payable were per square mile for ground rental and $1 for dues per 1,000 feet board measure. In 1929, an arrangement, the Natural Resources Agreement, was made between the Dominion of Canada and the province of Alberta, under which all Crown lands were to be transferred by the Dominion to the province, subject to outstanding obligations which the province undertook to implement; and on the 1st of October, 1930, the provincial officials took over the administration of these lands.
In 1931, the Provincial Lands Act was enacted and the Dominion Lands Act ceased to have force of law in the province.
Under the authority of the Provincial Lands Act, the province, for each of the years 1931 to 1939, issued licenses to the appellants or their predecessors in title in practically the same form as theretofore issued by the Dominion. These licenses were formally accepted, signed and sealed by the appellants; and similar renewals were issued in each year until 1939.
These licenses contained a clause that -the licensee should be entitled to renewal of his license from year to year, provided that such renewal should be subject to the payment of such rental and dues and to such terms and conditions fixed by the regulations in force at the time the renewal was made. In 1940, by order in council passed under the authority of a new Provincial Lands Act enacted in 1939, new regulations were made for the disposition of timber lands belonging to the province and the fixing of dues thereon.
On the 25th of July, 1940, it was provided that the licensee of timber berths acquired pursuant to regulations theretofore established under the Dominion Lands Act should pay dues at the rate of $2.50 per 1,000 feet board measure, and on the 28th of May, the rate was increased to $3. *PRElENT:-Rinfret, Davis, Kerwin, Hudson and Taschereau JJ.