Consider this: You have decided to drill for water, so you can have your own water well at home. While the contractor is working, you suddenly hear an exclamation of surprise; your drilling has struck oil. Or, perhaps your drilling resulted in the discovery of a mining resource full of in-demand minerals. What do you do now? Here are a few things you need to know about your new-found fortune.
Complete Ownership Of Your Minerals or Oil?
In Canada, oil and mineral rights tend to belong to the province where you live. The provinces lease these minerals to producers and then receive royalties for doing so.
Individuals and corporations are able to rent or lease these mineral or oil rights from the provinces. This happens in most cases. The remaining mineral or oil rights may be privately owned. If you fall into that category, then you have some options.
Sell Your Rights
If you own your mineral or oil rights, then you can sell those rights independently or choose to sell your entire property. Essentially, the way it works is this: A contractor that wants to mine minerals or oil from under your home may work out a leasing plan or purchase price with you. For example, the corporation may offer $100,000 for three years of mining under your property. This doesn't give them the right to your buildings or the ground's surface, so you still own your home and all the land around your home.
On the other hand, if you hit minerals and oil but don't want to be surrounded by a company that is mining your property, you may want to sell your property and the rights along with it. A company may choose to purchase your home and property for future exploration, or you may sell on the land and rights to another private owner.
Opt for Royalties
You can also choose to ask for royalties. With this process, a company will lease the mineral or oil-productions rights for your property and pay you a fee for the time length it wants to have this right. During that time, if minerals or oil are found and sold, you may be entitled to royalties as well as the lease payment.
With this process, when the lease runs out, the property and everything with it reverts back to your name, so you don't have to worry about future mining.
These are three factors to think about if you hit oil or mineral deposits at home while you're drilling. With some luck, you can make a grand profit. For more information about the drilling process and possibilities, contact a company like Field Drilling Contractors Ltd.
Hi, I'm Lenora. One of my favorite things is traveling. And when I travel, I especially love to see the various architecture around the world. Ever since I built a house (well, you know, hired a contractor to help me design it and then build it for me), I have been fascinated with the construction process. I love looking at international architecture like Saint Basil's Cathedral in Russia or Angkor Wat in Cambodia. How were they made? It is just so interesting to me, from the foundation's support to all the intricate details such as paving or roofing. I started this blog to talk about all the parts of construction. I hope you enjoy it!