In British Columbia, surface rights are generally owned separately from sub-surface rights to petroleum, natural gas, coal or minerals.
If a company holds the rights to petroleum or natural gas resources, and needs to enter private land to access those resources, they will generally employ a land agent to notify the landowner and provide the owner with details of the company’s intentions as well as the compensation that the company is prepared to offer for use of the land.
If an agreement is reached, the parties sign a standard surface lease form and Land Title Act documents, allowing the company to register the lease.
However, the landowner may refuse any offer of compensation, or disagree with the proposed well-site location or access route. Either party may apply to the Board for assistance in resolving the dispute.
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The Board is created under the authority of section 13 of the
Petroleum and Natural Gas Act and has authority under the
Geothermal Resources Act, the
Mineral Tenure Act, the
Mining Right of Way Act, and the
Coal Act.
The Board is an independent, quasi-judicial body resolving conflicts between land owners (holders of surface rights) and companies or individuals (holders of subsurface rights) seeking access to land to explore for, and develop, subsurface resources including oil and natural gas, minerals, coal and geothermal resources.
Board authority and jurisdiction extends to all areas of the province, although the majority of conflicts occur in the Peace River area in association with oil and gas development.
The Chair of the Mediation and Arbitration Board is responsible for the effective management and operation of the Board, including the organization and allocation of work among the Board's Members and the supervision and management of the administrative functions of the Board. The relationship between the Minister and the Chair of the Board is set out in a Memorandum of Understanding. The Board is independent in its decision making but accountable to the Minister for the use of its resources.
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At a mediation hearing, the Board Chair or an assigned Board Member hears representations by the company and the landowner. The mediator may issue an order permitting entry onto the land, settling the amount of compensation and other issues. When the compensation has been paid, the company may enter and use the land according to the
Petroleum and Natural Gas Act and the Mineral Tenure Act.
Unresolved issues may continue to be negotiated by both parties. Either party may request an arbitration hearing – the final and most formal step in the process.
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An arbitration panel, consisting of one or more board members, hears the case, which may involve witnesses and representation by legal counsel. After reviewing the record and the information presented, the arbitrator will issue a board order awarding compensation according to the provincial legislation. Such an order is binding on both parties.
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The annual rental provisions in a surface lease or Board Order may be renegotiated every five years. The Board can provide mediation and arbitration services to the parties in these negotiations.
See more details
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Information about preparing for mediation or arbitration hearings is available in a brochure, Surface/ Sub-surface Rights, published by the Mediation and Arbitration Board.
