Canada’s wealth of natural resources has contributed to the country’s status as a strong global player on the oil and gas stage. Understanding the legal framework related to petroleum and natural gas rights is key to successfully doing business in Canada in this sector.
1. Land ownership in Canada Land in Canada is held publicly by either the federal or provincial government in the name of Her Majesty the Queen (Crown lands), or privately by individuals, corporations or other stakeholders (freehold lands).
a. Crown lands
In Canada, most mineral rights are owned by the Crown, but the extent of Crown ownership varies from province to province. For instance, in Alberta, the Crown owns 81 per cent of the mineral rights, compared to only 20 per cent in Manitoba.
While the provincial government has general authority over its natural resources, federal jurisdiction can overlap these provincial responsibilities. Examples of this include where Indigenous interests are affected, if a project crosses provincial or international boundaries, or where a project takes place offshore. When a jurisdictional overlap occurs, both federal and provincial regulators may become involved.
Gowling WLG – November 23 2016.
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