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Journal of Energy & Natural Resources Law Volume 5, 1987 - Issue sup1: Acquisition of Natural Resource Interests by the State
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Original Articles

Acquisition of Natural Resource Interests by the State: Canada

Alastair R Lucas Professor of Law, University of Calgary.
Pages 27-48 | Published online: 08 Jun 2015

  • See A.R. Thompson, “Legal Characteristics of Disposition Systems: An Overview” and Comment by R.J. Harrison in N. Bankes and J. Owen Saunders (eds.) Public Disposition of Natural Resources (Canadian Institute of Resources Law, 1984), p. 1 and p. 37 respectively.
  • Canada Oil and Gas Act, S.C.1980-81-82-83, C.81.
  • R.J. Harrison, “Canada Oil and Gas Act Crown Share Case Study”, presented to I.B.A., A.A.G. Workshop, Banff, May 1987.
  • In the Canada Oil and Gas Act, footnote 2, supra, the section reads as follows:
  • Replacement of Rights
  • 61(1) Subject to subsections 62(2) and 64(5), the interests provided for under the Act replace all oil or gas rights or prospects thereof acquired for vested in relation to Canada lands prior to the coming into force of this Act.
  • No Compensation
  • (2) No party shall have any right to claim or receive any compensation, damages, indemnity or other form of relief from Her Majesty in right of Canada or from any servant or agent thereof for any acquired, vested or future right or entitlement or any prospect thereof that is replaced or otherwise affected by this Act, or for any duty or liability imposed on that party by this act.
  • A.R. Thompson, footnote 1, supra.
  • The Queen in Right of British Columbia v. Tener, [1985] 1 S.C.R. 533, (1985), 17 D.L.R. (4th) 1, [1985] 3 W.W.R. 673.
  • A.R. Thompson, “Sovereignty and Natural Resources—A Study of Canadian Petroleum Legislation” (1967), 1 Valparaiso L. Rev. 284; R.J. Harrison, “The Legal Character of Petroleum Licences” (1980), 58 Can. Bar Rev. 483; M. Crommelin, “Jurisdiction Over Onshore Oil and Gas in Canada” (1975), 10 U.B.C. L. Rev. 86.
  • See Re Timber Regulations, (1933] S.C.R. 616; aff'd [1935] A.C. 184 (P.C.); N.D. Bankes, The Assignment and Registration of Crown Mineral Interests, (Canadian Institute of Resources Law, 1985), p.74.
  • For judicial application of essentially similar factors see National Provincial Bank Ltd. v. Ainsworth, [1965] A.C. 1175 at 1247 per Lord Wilberforce; Re Foohey (Aboriginal Land Commissioner) Ex Parte Meneling Station Pty. Ltd. (1983), 57 C.L.R. 59 (H.C.); Milirrpum v. Nabateo Pty. Ltd. (1970–71), 17 F.L.R. 141 (S.C. Nor. Terr.).
  • This point was made at the May, 1987 Banff A.A.G. Seminar by Professor Michael Crommelin, with reference to the Milirrpum case, footnote 9, supra, at 272–273.
  • R.J. Harrison, footnote 7, supra.
  • Ibid. 500.
  • 20–21 Geo. V, c. 26(Imp.); R.S.C. 1970 Appendix 25.
  • Spooner Oils Ltd. v. Turner Valley Gas Conservation Board, [1933] S.C.R. 629, [1933] 4 D.L.R. 545.
  • R.J. Harrison, footnote 7, supra at 500.
  • Ibid. 500–502.
  • Re Timber Regulations, [1933] S.C.R. 616,622, aff'd, [1935] A.C. 184 (P.C.).
  • Citing Alberta Energy and Natural Resources Form No. 160-C 1/7/76.
  • Alberta Energy and Natural Resources Form 160C-5 (Rev. 9/84).
  • The Mines and Minerals Act, R.S.A. 1980, c. M-15, section 92.
  • Ibid, section 16.
  • Ibid, section 44(1).
  • Ibid, section 44(2).
  • Ibid, section 95(1).
  • The Queen v. Industrial Coal and Minerals Ltd., [1977] 4 W.W.R. 35 (Alta. T.D.), rev'd on other grounds [1979] 5 W.W.R. 102 (Alta. App. Div.).
  • R.J. Harrison, footnote 7, supra.
  • [1979] 1 S.C.R. 101, (1978), 88 D.L.R. (3d) 462.
  • Cream Silver Mines Ltd. (N.P.L.) v. The Crown in Right of British Columbia, [1986] 4 W.W.R. 328 (B.C.S.C.).
  • Hilton v. Ministry of Transportation and Highways (1986), 37 L.C.R. 37 (B.C.S.C.).
  • The Mines and Minerals Act, R.S.A. 1980, c. M-15, section 16.
  • Alberta Energy and Natural Resources, Information Letter 86–35 (November 10, 1986).
  • For example, this was true of the form cited by Harrison, footnote 18, supra.
  • See J. Ballem, The Oil and Gas Lease in Canada (2nd Ed., 1986).
  • For example, 1984 form cited at footnote 19, supra.
  • Footnote 17, supra.
  • Alberta Department of Mines and Minerals Form 282-C.
  • Ibid.
  • Footnote 19, supra.
  • The Mines and Minerals Act, R.S.A. 1980, c. M-15, section 16.
  • Ibid.
  • Mineral Act, R.S.B.C. 1979, c. 259.
  • Ibid, section 2.
  • Ibid, sections 6,9.
  • Ibid, sections 14–17 and Mineral Act Regulations, B.C. Reg. 587/77 as amended (location); s.20 (recording).
  • Ibid, section 22.
  • Ibid, section 27.
  • Ibid, section 29.
  • Footnote 6, supra.
  • Ibid. 678 (W.W.R.).
  • Ibid. 690.
  • Mineral Act, R.S.B.C. 1979, c. 259, section 29 (Survey and publication).
  • Ibid, sections 10,11.
  • Ibid, section 10(2)(3).
  • Emphasis added.
  • Cream Silver Mines Ltd. (N.P.L.) v. The Crown in Right of British Columbia, [1986] 4 W.W.R. 328 (B.C.S.C.).
  • Ibid. 330.
  • Ibid. See Fero v. Hall (1898), 6 B.C.R. 421; McMeekin v. Furry (1907), 2 M.M.C. 432, 536.
  • Strussi v. Brown (1897), 5 B.C.R. 380, 1 M.M.C. 195 (B.C.C. A.).
  • Chassy v. May (1920), 29 B.C.R. 83, 94, [1921] 1 W.W.R. 69 (B.C.C.A.).
  • Footnote 35, supra, at 331.
  • Ibid. 332.
  • Ibid.
  • Hilton v. Ministry of Transportation and Highways (1986), 37 L.C.R. 37 (B.C.S.C.).
  • Re Timber Regulations, [1933] S.C.R. 616 (S.C.C.), aff'd [1935] A.C. 184 (p.C.).
  • Ibid. 622 (S.C.R.).
  • B. Barton, “Property and Contract Rights under the Mineral Act”, unpublished paper on file at Canadian Institute of Resources Law, (1984) pp. 23–28.
  • Ibid. 24.
  • Ibid. 25.
  • Ibid., citing Morris v. The Queen (1977), 3 B.C.L.R. 140 (B.C.S.C.).
  • For an assessment of the scheme of the Mineral Act see J.N. Lyon, “Security of Mineral Title in British Columbia” (1968), 3 U.B.C.L. Rev. 38.
  • Mineral Act, R.S.B.C. 1979, c. 259, section 48 (title to claim recognized according to priority of location); section 51 (Adverse claim adjudication procedure).
  • Ibid, section 43(1).
  • Ibid, section 43(2).
  • See Wilkie v. Jellett (1896), 26 S.C.R. 282; Imperial Elevator v. Olive (1914), 6 W.W.R.1562 (Sask. S.C.).
  • Mineral Act, R.S.B.C. 1979, c. 259, section 27.
  • Specifically the concepts of a determinable fee simple interest or an interest subject to a condition subsequent. See R.E. Megarry and H.W.R. Wade, The Law of Real Property (5th Ed., 1984), pp. 69–70.
  • See authorities cited by Barton, footnote 66, supra at 38, notes 187–189.
  • Collom v. Manley (1902), 32 S.C.R. 371, 377 and authorities cited by Barton, footnote 56, supra at 39.
  • Mineral Act, R.S.B.C. 1979, c. 259, section 50.
  • The term “record” appears in sections 48,54, 57 and 65(h) of the Mineral Act.
  • Barton, footnote 56, supra at 35.
  • Ibid. 38.
  • A.G. v. De Keysers Royal Hotel, [1920] A.C. 508 (H.L.).
  • Ibid. 542.
  • Manitoba Fisheries Ltd. v. The Queen, [1979] 1 S.C.R. 101, (1978), 88 D.L.R. (3d) 462.
  • The Crown in Right of British Columbia v. Tener, [1985] 1 S.C.R. 533, (1985), 17 D.L.R. (4th) 1, [1985] 3 W.W.R. 673.
  • Provincial Parks Act, R.S.B.C. 1936, c. 211.
  • Park Act, S.B.C. 1965, c. 31, now R.S.B.C. 1979, c. 309.
  • Mineral Act Amendment, S.B.C. 1973, c. 52.
  • Park Act (Amendment Act), 1973, S.B.C.1973, c. 67, section 3.
  • Park Act, R.S.B.C. 1979, c. 309, section 9(1).
  • Ibid.
  • Letter received by the Teners January 24, 1978, quoted by Wilson J. In Tener, footnote 86, supra at 687–688 (W.W.R.).
  • 23 B.C.L.R. 309,114 D.L.R. (3d) 728.
  • [1982] 3 W.W.R. 214,133 D.L.R. (3d) 168.
  • Footnote 86, supra.
  • Ibid. 681 (W.W.R.), citing AG. v. De Keyser's Royal Hotel, footnote 83, supra.
  • Ibid. 685.
  • Ibid.
  • Footnote 85, supra.
  • Footnote 86, supra 690–691 (W.W.R.).
  • Ibid. 692.
  • Ministry of Highways and Public Works Act, R.S.B.C. 1960, c. 109, now Ministry of Transportation and Highways Act, R.S.B.C. 1979, c. 280.
  • Lands Clauses Act, R.S.B.C. 1960, c. 109.
  • Footnote 86, supra.
  • Ibid.
  • Ibid.
  • Ibid. 699.
  • Ibid. 691–692.
  • Ibid. 692.
  • Ibid. 698.
  • Ibid. 699.
  • Ibid. 685.
  • Ibid. 686.
  • Ulster Transport Authority v. James Brown & Sons, [1953] N.I. 79 (N.I.C.A.).
  • Government of Malaysia v. Selangor Pilot Ass'n., [1978] A.C. 377 (P.C.).
  • Footnote 85, supra at 468 (D.L.R.).
  • Ibid. 467.
  • Footnote 86, supra at 699–700 (W.W.R.).
  • Ibid. 686.
  • Schatroph v. The Crown in Right of British Columbia (1987), 11 B.C.L.R. (2d) 198 (B.C.S.C.).
  • Footnote 86, supra at 696.
  • See B. Barton, “Comment on the Queen in Right in British Columbia v. Tener” (1987), 66 Can. Bar Rev. 145.
  • Footnote 89, supra.
  • Footnote 86, supra at 685.
  • A.G.v. De Keyser's Royal Hotel, footnote 83, supra at 542.
  • Rockingham Sisters of Charity v. The King, [1922] A.C. 315 (P.C.). In the Tener case, footnote 86, supra, Wilson J. said, “When expropriation or injurious affection is authorized by statute the right to compensation must be found in the statute” [at 696 (W.W.R.)].
  • Ibid. 322.
  • Footnote 85, supra.
  • Ibid. 473 (D.L.R.).
  • Ibid.
  • The Queen in Right of B.C.v. Tener, footnote 86, supra at 679–680, per Estey J. citing Re Gibson and Toronto 28 D.L.R. 20, 11 D.L.R. 529 (Ont. C. A.).
  • Ibid. 698.
  • See generally, Jones and De Villars, Principles of Administrative Law (1985), particularly Chapter 8, “Principles of Natural Justice and the Duty to be Fair”.
  • See Wiswell v. Winnipeg, [1965] S.C.R. 512, 51 W.W.R. 513, 51 D.L.R. (2d) 754.

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