Facing dwindling supply and increasing production costs, the Municipal District of Pincher Creek is discontinuing the sale of municipal gravel to private parties.

At its March 24 meeting, council reviewed Corporate Policy C-FIN-500, which governs the resale of materials and supplies, including gravel, and accepted a recommendation from the public works department to end the practice.

The issue was first brought before council in March 2025. Council opted to continue the practice for one year and revisit the matter in 2026.

“The MD’s gravel supply is currently below desired levels. Maintaining a large crushing program over the next five years will be necessary to restore supply to a more sustainable position,” says public works manager Alan McRae.

He says gravel has become increasingly difficult to source, while the cost of aggregate extraction and crushing has risen significantly. Current sale prices do not recover the full cost of production when factoring in expenses such as royalties, stripping, equipment wear and reclamation.

McRae says gravel is a critical resource for maintaining roads, supporting emergency response and delivering future infrastructure projects.

“By not selling gravel, the MD preserves a critical finite resource, supports long-term cost certainty, prioritizes its core infrastructure and ensures gravel availability for future municipal needs,” he says, adding the decision aligns with long-term asset management planning.

Financially, the impact of ending sales is expected to be minimal. McRae says gravel sales to residents generated an average of $17,000 annually. However, the revenue was not a significant contributor to the municipality’s overall finances.

Private sales, he says, represented only a small portion of total gravel use in 2025, particularly after council allowed public works to limit quantities and control pit selection.

“Preliminary analysis suggests that, when production and operational costs are fully considered, the MD would have experienced a net loss when selling gravel to residents at current market pricing,” he says.

Operational costs associated with gravel production include royalties paid to landowners, land acquisition for municipal pits, registration costs, topsoil stripping and stockpiling, crushing operations, post-crushing stabilization and eventual site reclamation.

“This matter is not driven by revenue considerations, but by the need to maintain and enhance gravel reserves that support the MD’s ability to deliver a safe road network,” McRae says.

He also points to recent investments in developing new gravel pits. Land purchases and planning costs have been significant and extraction has not yet begun at those sites.

In a public notice released after the meeting, the municipality encouraged residents involved in projects requiring gravel to plan ahead and explore alternative sources.

McRae acknowledges the change may impact residents, particularly those who previously relied on nearby municipal pits.

“Residents may face increased costs, as they may be required to haul gravel from more distant private pits rather than using a nearby MD-managed pit,” he notes.

However, he says there are many private gravel suppliers operating within the municipality, along with contractors who can haul material. A list of suppliers is available on the municipality’s website under Departments, Public Works, Sales and Services and the Gravel Sales section.

Residents with questions can contact the public works department at 403-627-3130.