magazine / nd97
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November/December 1997 issue |
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Answers to readers' perplexing questions
Underground rights
Say I'm planting a tree in my backyard and I strike gold, do
I own the gold?
- Jeff White, Ottawa
PROBABLY NOT.
Mineral rights in Canada are a provincial matter, and the provinces
regard themselves as the owners of all the gold (and copper and
iron and oil and whatever else) in the ground. It doesn't matter
if you have legal title to the land. Surface rights and mineral
rights are separate things, and just because you own one doesn't
mean you own the other.
The provinces lease mineral rights (that is, the exclusive right
to search for and develop mineral bodies) to individuals or mining
and oil companies on both Crown land and privately-held land. So
if you want to keep the gold you find in your own backyard, you
better acquire the mineral rights to your property before someone
else (literally) buys them out from under you.
Not only that, but most jurisdictions regard property owners and
mineral rights owners as having more or less equal claim to the
land. As a rule, it is against the law for property owners to prevent
holders of mineral rights from exploring or staking claims on land
they "own."
In some provinces, like Nova Scotia, prospectors must gain the
landowner's or tenant's permission to trespass. In others, including
British Columbia, they don't even have to tell the landowner. "Free
Miners" authorized under B.C.'s Mineral Tenure Act may trespass,
cut trees, even build roads on private property (except cultivated
land, land occupied by buildings, and the "curtilage of a dwelling
house") without telling the owner — even if a government publication
advises that it is "a matter of good business conduct" to
tell the landowner what you are up to.
Traditionally in Europe, resources were included in property ownership
— though from ancient times, any deposits of gold or silver belonged
to the crown. In some older settled areas of Canada, mineral rights
are sometimes included in property rights, too, for instance on
land acquired in Alberta in the 19th century, or on property granted
in Ontario before May 6, 1913, when a new lands act was passed.
That latter law means that property owners in southern Ontario
often own their own mineral rights, but not those in Northern Ontario
— which is where all the minerals are. If you found gold in your
backyard in a place like Timmins, it probably would not be yours.
Where property owners may sometimes actually gain from having minerals
under their feet is in negotiating to allow the mineral rights owner
onto the land to extract the minerals. Oil wells in wheat fields
mean an annual payment of several thousand dollars to prairie farmers.
Just the same, if a property owner bargains too hard, the miner
might just move next door. Mine tunneling or slant-hole drilling
for oil can often get the mining or oil company what it is after
anyway.
The provinces' usual rationale in reserving mineral rights is that
it ensures that resources are exploited and not simply left in the
ground by indifferent land owners. But the idea of holding back
something when granting land is an old one. In the days of wooden
ships, many Canadian lands were granted with the white pines reserved
for the Crown. At other times, all trees were reserved, or sometimes
the sand and gravel. Owners of private property today understand
that air rights have been withheld — you cannot stop an airplane
from flying over your house — or that governments sometimes withdraw
ownership, as in expropriation for road-widening.
So in a nutshell, if you dig a hole and find gold, it might be
simpler just to plant a tree and let the gold enrich its roots.
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