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if you're digging in the backyard and you strike oil. Does that oil belong to you or to the country?

nass,Feb 5 2006, 01:43 PM Wrote:if you're digging in the backyard and you strike oil. Does that oil belong to you or to the country?[right][snapback]168535[/snapback][/right]

Good question ... and it goes right to the heart of the matter.

And the answer is “it depends on who you are and where you live” because that will determine who owns the subsurface mineral rights.

In Canada land ownership is typically “fee simple” which is to say it does not include subsurface mineral rights, and includes limited water and air rights. Individual land owners for the most part do not own the subsurface mineral rights anywhere in Canada, except for some Native lands per recent agreements and in some legacy situations.

In Alberta for example, oil and gas rights beneath 81% of the province’s surface area is owned by the “Crown in right of Alberta.” – which is to say the province.

The oil and gas rights beneath 16 million acres is privately owned and the Encana Corporation owns the majority of this. Individuals who are the descendants of Alberta’s original homesteaders (and got subsurface rights with their land) are the registered owners of the oil and gas rights beneath about 6 million acres.

If I’ve read the article correctly however, it doesn’t seem like Ottawa is claiming ownership of the rights, simply that they should have a say in how the resource is developed and who it gets sold to.

Aren’t you glad you asked?

Actually I am, cause for once someone has something interesting to say on the subject! hah kidding. but I always wondered that and you sorta answered it, for Alberta anyways. I agree that the government should step in and give it's opinion as to how the resource is used and what not.