Energy Development on Agricultural Lands
Last updated on May 1, 2026This page provides information about energy development on agricultural land in B.C.
Have a Question or Concern about Energy Development on Agricultural Land?
Contact the BC Energy Regulator (BCER) for general inquiries, concerns or complaints related to regional or provincial energy projects on agricultural land
Community Relations can be contacted at: 250-794-5200 or online by selecting the ‘Community Relations” option from the BCER contact page: Contact | BC Energy Regulator (BCER)
The Surface Rights Board
The Surface Rights Board (SRB) is a tribunal that has been given jurisdiction under the Petroleum and Natural Gas Act (PNG Act) to resolve disputes between landowners and oil and gas companies on issues regarding access to the land for well sites, flow lines or facilities. More information on steps taken to resolve issues can be found on the SRB website.
Energy Resource Appeal Tribunal
The Energy Resource Appeal Tribunal (ERAT) is an independent, quasi-judicial agency that hears appeals from decisions made by the BCER. More information can be found on the ERAT website with additional clarification provided under the How To Appeal tab.
Canada Energy Regulator
The Canada Energy Regulator (CER) regulates federal energy projects including interprovincial pipelines. Learn more about them and how they can address concerns on the CER website.
Civil Resolution Tribunal (small claims)
The Civil Resolution Tribunal (CRT) may be an option for landowners to pursue if they are having difficulty resolving a small claim dispute with an oil and gas company or service company.
Disclaimer: The information featured below is current as of March 31, 2026, and has not been updated. For up-to-date information see the contacts listed above.
The Basics of Land Ownership
When you are issued an absolute certificate of title under the Land Title Act, it means your land has been registered as freehold or fee simple. It is the most complete ownership of land and as the owner of the property, you have full use and control over the land and the buildings on it, with the freedom to dispose of it at will. This ownership is subject to any rights of the Crown, local bylaws and restrictions at the time. Although landowners hold title to property, a certificate of title rarely includes the resources, such as petroleum, natural gas or minerals, that lie beneath the surface. The Government of British Columbia owns and has the authority to dispose of subsurface rights to most land in the province.
Easements and Rights of Way
An easement is a situation where the title to a piece of land remains with the landowner while the right is given to another person or organization to use the land for a specific purpose.
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An easement that stays with the land regardless of who owns it is referred to in legal terms as ‘appurtenant to the land’.
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An easement that is not attached to the parcel of land and is only relevant to the individual currently owning it is referred to as an ‘easement in gross’.
A statutory right of way is a right that a municipal or industrial user has over a parcel of land. Unlike an easement, a right of way is an agreement in which no one user of the land benefits more from the use of the land – it has no designated ‘dominant tenement’.
The most common right of ways in the oil and gas industry are for pipelines, power lines and access roads.
How Oil and Gas Companies Obtain Subsurface Tenures
Crown parcels of subsurface petroleum and natural gas (PNG) rights are sold as tenures through the Ministry of Energy and Climate Solutions (ECS). A tenure provides exclusive rights to the subsurface resource and the right to apply to the BCER for a well permit. Tenure does not provide the authority to conduct activities, such as drilling on the land.
Drilling Licence:
A drilling licence is a tenure that transfers the exclusive right to a company to explore for PNG resources in a defined area. Exploration may occur where oil or gas production has not yet been established.
Lease:
A lease is a tenure that transfers the exclusive right to a company to produce PNG resources in a specific zone or ecological formation. This is the only PNG tenure that authorizes a company to produce oil or gas. A lease may also provide storage and disposal rights along with the production rights.
Landowners and Oil and Gas Companies
Once a company has obtained the subsurface rights to a resource, they will plan how to develop it. At this point, no permit has been issued for any activity on the land. The company must first discuss the project with landowners and make sure surface lease agreements are in place. Oil and gas companies often hire land agents to speak on their behalf and work out the arrangements for lease agreements with landowners. They may initially contact landowners by phone, or they may arrive in person with a draft contract to discuss.
The negotiation process may seem overwhelming and at times it might be the best alternative to involve the Surface Rights Board in the decision of the compensation agreement. Landowners should be aware; there is more latitude to build creative compensation packages during discussions directly between landowners and companies. Once the SRB becomes involved in compensation discussions, the considerations are constrained to what is outlined in legislation.
Lease Agreements
This guide is intended to help landowners start effective conversations with oil and gas companies when negotiating surface lease agreements.
Guide to Negotiating Lease Agreements
Negotiating directly with the company
When negotiating with oil and gas companies regarding the terms of the lease agreement, landowners are advised to research a fair and reasonable value to place on their land. Consider both short-term and long-term impacts of the activity; be prepared with plenty of evidence and accurate assessments. Keep in mind, negotiating at this stage allows for more creative options in receiving compensation and may not be limited to a dollar value per acre.
Renegotiating Rent Agreement
The amount of annual rent for a surface lease agreement may be renegotiated every four years. Either the landowner or the oil and gas company can initiate the discussion by completing SRB’s Form 2 – Notice to Lessee/Lessor for Rent Renegotiation. The SRB Rent Review information sheet provides additional explanation.
Tips for Meeting with Land Agents
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Allow yourself more than a day to make a decision. It would be unreasonable to be rushed to decide that same day.
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A signing bonus may be presented to you as an incentive to sign the same day. A cheque in hand might address some current financial needs but may not address the longer-term impacts of sharing the space on your land.
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Be sure you understand the agreement before you sign. Request the land agent leave the contract with you to complete your own research and follow up.
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Be sure to document all agreements made with an agent and capture everything in writing. A handshake deal will not withstand regulatory or legal processes.
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Be as reasonable in your negotiating as you would expect the resource company to be with you.
Types of Oil and Gas Activities and the Permitting Process
Pipelines
Pipelines in British Columbia must meet the National Standard of Canada CSA Z662 – Oil and Gas Pipeline Systems. Pipelines that remain within provincial borders are regulated by the BC Energy Regulator. Pipelines that cross provincial boundaries are regulated federally by the Canada Energy Regulator.
A Graphic of the Pipelines Permitting Process
Well Sites
The drilling and production of oil and gas wells in British Columbia is regulated by the BCER. This graphic outlines the steps taken from the time a company negotiates a surface lease agreement with a landowner or receives a Right of Entry through the SRB to the production stage of a well. For a more comprehensive overview of the permitting process for well sites, refer to the following Provincially Regulated Wells Flow Chart.
Pipelines and Flow Lines Defined
Pipelines within the gathering system, known as flow lines, take petroleum and natural gas products from wells to processing facilities. Pipelines not considered to be flow lines are part of the transmission system carrying products from processing facilities to distribution systems and consumers. Within British Columbia, flow lines are defined separately to give the Surface Rights Board jurisdiction for resolving disputes regarding flow lines within the gathering system.
Defining Flow Lines
A flow line is defined in the Energy Resource Activities Act as: “a pipeline that connects a well head with a scrubbing, processing or storage facility and that precedes the transfer of the conveyed substance to or from a transmission, distribution or transportation line.” The ‘Analysis’ section of the SRB’s decision regarding Order 1911/1913 (page 6) lists additional cases when pipelines were determined to be part of a gathering system for the production of natural gas. The Orders and Decisions chart lists these cases and provides a link to the associated decision made by the SRB.
Defining Pipelines
A pipeline is part of the transmission system that carries products from processing facilities to distribution systems and consumers. According to the Energy Resource Activities Act, a pipeline means:
“Piping through which any of the following is conveyed:
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an energy resource, carbon dioxide;
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water used for, or produced in, the course of an energy resource activity;
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solids;
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substances prescribed under section 133 (2) (v) of the PNG Act; or
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other prescribed substances.
And includes installations and facilities associated with the piping, but does not include:
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piping used to transmit natural gas at less than 700 kPa to consumers by a gas utility as defined in the Gas Utility Act;
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a well head; or
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anything else that is prescribed.”
Pipelines and Flowlines Graphic
Seismic Events and Hydraulic Fracturing
Seismic events can be naturally occurring or can be induced by human activities. Hydraulic fracturing (fracking) and wastewater disposal in the oil and gas industry can trigger or cause seismic events. These events are generally of smaller magnitude than natural earthquakes and many of the events are not felt at the surface. However, at times they are felt and can be of a concern to those who experience multiple events.
If you are experiencing these events and have a fracking development near your home, you can access the BCER’s Northeast BC Seismicity map for data on the seismic events taking place. The BCER also has two Mitigation Orders in place to address seismic events in designated areas: