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The Basics of Land Ownership
When you are issued an absolute certificate of title under the Land Titles Act, it means your land has been registered as freehold or fee simple. It is the most complete ownership of land and as the owner of the property, you have full use and control over the land and the buildings on it, with the freedom to dispose of it at will. This ownership is subject to any rights of the Crown, local bylaws and restrictions at the time. Although landowners hold title to property, a certificate of title rarely includes the resources, such as petroleum, natural gas or minerals, that lie beneath the surface. The Government of British Columbia owns and has the authority to dispose of subsurface rights to most land in the province. The article, “How Oil and Gas Companies Obtain Subsurface Tenures” explains the steps taken before the Province sells or disposes of tenures to a company.
Landowners and Oil and Gas Companies
Once a company has obtained the subsurface rights to a resource, they will plan how to develop it. At this point, no permit has been issued for any activity on the land. The company must first discuss the project with landowners and make sure surface lease agreements are in place. Oil and gas companies often hire land agents to speak on their behalf and work out the arrangements for lease agreements with landowners. They may initially contact you by phone or they may arrive at your doorstep with a draft contract to discuss. If you were not aware that a project was being considered in your area, you might feel unprepared for the conversation. It’s important you have all the right information about the resource project they are presenting to you. It is equally as important to work towards effective discussions with land agents and resource companies to find the most benefits available to you. The negotiation process may seem overwhelming and at times it might seem the best alternative to involve the Surface Rights Board (SRB) in the decision of the compensation agreement. Landowners should be aware, there is more latitude to build creative compensation packages during discussions directly…
Right of Entry and Compensation
In British Columbia landowners do not generally own the subsurface rights to oil and gas resources. These are mostly owned by the provincial government, who has the authority to grant rights to companies to explore the resources. Further details on the difference between surface and subsurface ownership and rights are provided under Basics of Land Ownership. When a company plans to develop a resource and use of private land is required, they must work out lease agreements and compensation amounts with private landowners. These discussions do not always lead to positive resolutions and may require some assistance to come to an agreement. The Petroleum and Natural Gas Act gives the Surface Rights Board jurisdiction to resolve entry and compensation disputes for wellsite, flow line and facility activities. The authority to construct and operate a pipeline is provided through the Oil and Gas Activities Act. Unresolved entry and compensation issues for pipelines are determined through the Expropriation Act. To distinguish the difference between a flow line and a pipeline, see Pipelines and Flow Lines Defined.
Your Options for Raising Concerns
Landowners and the public have a number of options to document concerns during the application or permitting stage or to report an incident once an oil and gas activity is in the construction or operation stage. The articles included in this section explain the processes for: Documenting and sending your concerns to the BC Oil and Gas Commission for provincially regulated projects. Early engagement and the hearing process through the Canada Energy Regulator for federally regulated pipelines. Reporting concerns through the complaint process. Navigating the Appeal Process when a project on your land has been permitted.
Types of Oil and Gas Activities and the Permitting Process
Understanding the regulatory process for the lifespan of oil or natural gas activities will help landowners make informed decisions as they encounter resource development on their land. The primary authority given to the BC Oil and Gas Commission to issue permits for oil and gas activities is defined in the Oil and Gas Activities Act. This includes permits issued for wells, pipelines, facilities, roads and geophysical permits. This What We Regulate graphic gives an overview of activities permitted and regulated by the BC Oil and Gas Commission. Other statutes and regulations provide additional regulatory oversight from exploration through to the decommissioning process. Delegation agreements are also in place to enable the BC Oil and Gas Commission to make decisions on some oil and gas uses according to what has been outlined in the agreements.
How to Raise Concerns about Proposed Activities
Orphan Sites, Dormant Sites, and More
When the company operating a wellsite is making annual payments to a landowner in a timely way, the activity may be of little concern. However, when a company fails to make annual rent payments, it would be considered non-compliance of the surface lease agreement and may require some research and action on behalf of the landowner. Not receiving rent may not indicate the company has gone into bankruptcy. There are options available to landowners to determine the status of the well and confirm whether or not a company is still viable. You may currently be receiving annual payments but have noticed little activity has taken place with the wellsite on your land. If you are concerned for the future of the activity there are resources available to confirm the status of the well.
Government and Local Agencies and their Jurisdictions
The regulation of oil and gas activities includes collaboration of many different regulatory agencies. Understanding who these agencies are and the jurisdictions they oversee in issuing permits related to oil and gas development will help landowners as they navigate a complex regulatory system.
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The Basics of Land Ownership
Landowners and Oil and Gas Companies
Right of Entry and Compensation
Your Options for Raising Concerns
Types of Oil and Gas Activities and the Permitting Process
Orphan Sites, Dormant Sites, and More
Government and Local Agencies and their Jurisdictions
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