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Private
Ownership of Minerals in British
Columbia
Approximately 94 per cent of the land base in B.C. is owned by the
provincial Crown. The remainder is owned privately (5 per cent) or by the
federal Crown (1 per cent). Whether on provincial Crown or private land,
the Province owns most minerals (which includes coal, petroleum and
natural gas). Rights to explore and develop Crown minerals are obtained
as a form of tenure issued by the provincial Crown, which remains the
owner of the minerals.
This means
that people who own “private property” like a house or a piece of land, do
not own the subsurface rights. This is standard throughout Canada.
Background
Up until the
early part of the 20th century grants of private land may have
included rights to the surface, the minerals or both. These private
mineral rights are:
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typically
found in areas of early settlement, mineral exploration or railway
development, |
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referred
to as “private” or “freehold” mineral rights, and |
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may be
connected to, or entirely separate from, the ownership of the surface of
the land. |
The
separation of surface and subsurface mineral ownership is typical in
Canada, and allows governments to develop public assets like mineral
resources on behalf of all citizens.
Today, it is
often unclear where exactly these private or freehold mineral rights occur
and which minerals are included as this information has not been tracked
through time. Therefore, to identify where they occur, it is necessary to
research into the title history of the property.
Land and
Mineral Ownership
Private land
ownership is registered at the Land Title and Survey Authority in the form
of a Certificate of Title (CoT).
If the Crown
grant creating the property included rights to some or all the minerals,
then mineral ownership is included in the title to the property unless the
rights have been returned to the Crown. If the Crown grant did not
include these rights, mineral ownership is not and never has been a
component of the title to the property.
This results
in a series of challenges:
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The terms
of the original Crown grant do not appear on the CoT so it is not
possible to tell from the CoT whether someone other than the Crown owns
mineral rights in the land. |
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Where
mineral rights were included in the grant, the owner of the land may
have since separated and retained, or sold the mineral rights separate
from the surface. In those instances, the mineral owner registers the
interest in the mineral rights as an “undersurface” charge against the
surface owner’s title. But, these charges do not always clearly
identify to which minerals ownership is being claimed. |
Rural Versus
Urban
The question
of who owns minerals in the land is generally not of major importance in
urban areas because regulations limit development near residences or
buildings. But in rural and undeveloped areas away from residences or
buildings, it can be an important issue because mineral exploration and
development may occur.
Review
Process
In order to
know who owns the mineral rights in private property, it is necessary to
review the original Crown grant and other land title records to determine:
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what
minerals, if any, were included in the grant from the Crown, and
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which of
these minerals may have since been transferred to third parties. |
In 2002, the
Ministry of Energy, Mines and Petroleum Resources began reviewing private
mineral title in B.C. A part of this project will include introducing a
review process to confirm and register private mineral title. The Ministry
intends to table legislation to address this at some point once the review
is complete. When developed, the review process leading to mineral title
confirmation will involve consultation with landowners and other
interested parties identified through researching the property title
history.
Last Updated
April 02, 2008 |