In order to produce coalbed gas (CBG), industry must acquire Petroleum and Natural Gas (PNG) tenure rights. The Ministry of Energy, Mines and Petroleum Resources’ Titles Division is responsible for issuing and administering provincially owned PNG rights.

Coalbed Gas (CBG) has the potential to play a significant role in British Columbia’s energy economy. The royalty regime for CBG reflects the unique development and production costs of this resource by providing appropriate royalty credits to initiate the development of the CBG industry. It will facilitate the development of provincial CBG resources while providing a reasonable return to natural gas producers and the Crown.

REGULATORY INFORMATION

OGC Overview
Stakeholder Involvement
Crown Petroleum and Natural Gas Tenure Process
Surface and Subsurface Rights
Land Use Planning

OGC Overview

Reporting to The Ministry of Energy, Mines and Petroleum Resources, the Oil and Gas Commission (OGC) is responsible for regulating British Columbia’s oil and gas sector. This Public Agency has a legislated mandate to make decisions on oil and gas applications that balance the broad environmental, economic and social outcomes of oil and gas exploration and development. The OGC also has a responsibility to consult with First Nations, strengthen relationships with stakeholders and clients, ensure public safety and protection of the environment, and streamline regulatory processes.

The Oil and Gas Commission (OGC) was established under the Oil and Gas Commission Act in July of 1998 as part of the provincial government’s Oil and Gas Initiative. This independent Public Agency is fully financed by the oil and gas industry through fees and levies.

For more information please visit the OGC website: http://www.ogc.gov.bc.ca/

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Stakeholder Involvement

Stakeholder input is essential in any resource development activity. The oil and gas industry is required to seek input from stakeholders affected by proposed oil and gas activity.   Stakeholder involvement:

• Identifies parties who may be impacted by or have an interest in the project, providing them with relevant information and an opportunity to share their views;
• Identifies concerns or issues that might arise from the project so that they can be addressed in the planning stage if possible;
• Improves the use of community based and scientific knowledge to reduce social or environmental impacts;
• Creates opportunities to develop company commitments in response to local input; and
  Provides appropriate information to the OGC to enable a fair and balanced decision.

For more information please visit:

OGC Landowner Resources

Public Involvement Guideline (OGC)

Surface Rights in British Columbia: A Guide to the Legislation and Regulations for the Oil and Gas Industry (OGC, July 10, 2001)

Seismic Operations and the Landowner

Well Sites and the Landowner

The Ministry of Energy, Mines and Petroleum Resources Mediation and Arbitration Board website

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Crown Petroleum and Natural Gas Tenure Process

Tenure is time-limited ownership of a specific parcel of subsurface petroleum and natural gas rights. Tenure confers the right to apply to the Oil and Gas Commission (OGC) to access, explore and develop the petroleum and natural gas according to applicable statutory regulations.

Tenure is not required to drill test holes; however, industry must obtain permission from the OGC before drilling. In order to produce coalbed gas (CBG), industry must acquire Petroleum and Natural Gas (PNG) tenure rights.

The Ministry of Energy, Mines and Petroleum Resources’ Titles Division is responsible for issuing and administering provincially owned PNG rights. Tenure is sold monthly, based on requests from industry for specific parcels. Tenure is typically awarded to the highest bidder; however, not every parcel offered is purchased. There may be no bids received or the bids are deemed to be unacceptable, as they do not provide sufficient return to the province based on a technical evaluation.

For more information please go to:

The Ministry of Energy, Mines and Petroleum Resources, Titles Division

Petroleum and Natural Gas Rights in British Columbia

Petroleum and Natural Gas Rights Information Letter ( 181KB)

2006/2007 Petroleum and Natural Gas Rights Disposition Dates
(Disposition dates and information on the disposition of petroleum and natural gas rights.)

To subscribe to the Information Letters, Titles Division Sales Notices, and/or Titles Division Sales Results email lists please visit the Oil and Gas Titles Homepage.

Oil and Gas Legislation and Related Regulations (Oil and Gas Commission)

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Surface and Subsurface Rights

The Province owns most petroleum and natural gas rights in BC with a limited number privately owned or held by the federal government. The Province did not include subsurface rights in most land grants issued after 1891. As a result, the surface owner of property rarely owns underlying petroleum and natural gas rights except in areas of early settlement such a Vancouver Island and the Fraser Valley.

Holders of subsurface petroleum and natural gas rights requiring access to the surface to explore and develop the subsurface resources must negotiate a surface lease with the surface owner. If the parties are unable to come to an agreement, the subsurface owner can apply to the Mediation and Arbitration Board under the Petroleum and Natural Gas Act.

For more information on Surface and Subsurface Rights:

Seismic Operations and the Landowner (OGC) ( 91KB)

Well Sites and the Landowner (OGC) ( 78KB)

Consultation (OGC)

Public Involvement Guideline (OGC) ( 17 Pages)

Surface Rights in BC: A guide to the legislation and regulations for the oil and gas industry (OGC) ( 381KB)

Role of the Mediation and Arbitration Board

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Land Use Planning

In the early 1990s, the Province of BC initiated a multi-stakeholder, strategic planning process to resolve conflicts between different user groups. Strategic Land Use Planning has been undertaken at both regional and sub-regional levels.

The Integrated Land Management Bureau (ILMB) is responsible for strategic land use planning processes, in roles ranging from collection and compilation of resource information, to development of land use plans.

The Ministry of Energy, Mines and Petroleum Resources (MEMPR) and other agencies are responsible for implementing strategic land use plans approved by Cabinet. MEMPR supports responsible stewardship of the province's energy resources in land use planning and management initiatives by:

• ensuring that opportunities for environmentally responsible oil and gas/geothermal exploration and development are recognized by provincial planning agencies; and
• providing resource potential and management information for First Nations treaty negotiations.

The Titles Division considers strategic land use plan objectives and strategies in its approval process and in the operation of the Oil and Gas Tenure Review Process.

As the provincial regulator, the Oil and Gas Commission ensures that a company’s project development plans are consistent with the strategic directions set out in Regional Land Use Plans and Land and Resource Management Plans. 

For more information on provincial strategic land use initiatives, planning processes and policies:

The Integrated Land Management Bureau

The Ministry of Energy, Mines and Petroleum Resources Oil and Gas Land Use

Information Letter: Petroleum and Natural Gas Tenure Review Process

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