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History of Resource Royalties in Canada

As an incredibly diverse country in many ways, Canada has its own unique history. In particular, our resources have not always been so accessible. Here’s how far we have come.

Ownership: Who Gets the Gas?

The right to develop resources is one of the fundamental rights of ownership here in Canada. During the time that our great country was being settled, this right was often given by the provincial governments to individual owners. So while the province technically owned the land, the settlers and developers were granted the ability to harvest renewable resources and extract non-renewable resources as they saw fit. These were known as crown land grants.

Over time, these grants disappeared and the new approach was restricted leases. The provincial government would retain ownership of minerals, giving only restricted development rights to companies for the purpose of conducting exploration for minerals such as petroleum and natural gas.

The Western Provinces: Late to the Party

The western provinces of Alberta, Saskatchewan, and Manitoba joined Confederation a little later than the other provinces, and a new policy emerged. While the Eastern provinces had control of their own resources, as previously discussed, the western ones did not. In Alberta, Saskatchewan, and Manitoba, the ownership of their natural resources remained with the federal government. This was to fund the railway and the further colonization of Canada.

Reclaiming our Rights: The West Fights Back

This remained law until 1930, when the discontented provinces decided it was time to fight this policy. After all, colonization was complete and these three provinces had massive amounts of natural resources within their borders. The federal government finally conceded and allowed the three provinces to take back control of their resources. Alberta, Saskatchewan, and Manitoba tapped into a veritable treasure trove by offering resource grants and receiving royalties on the development of those resources.

Having these laws in place protect Canadian citizens from having their own resources exploited. Companies pay royalties to the provincial governments where they harvest or extract their resources, ensuring that the money being made is going back into our ever-growing economy.

This history of legislation and royalties is a testament to the adaptability of our great country. Only through self-reflection and innovative thought can we solve issues and propel ourselves forward into a cooperative future. As a leader in industrial insulation, we are proud to serve our fellow Canadians. From all of us here at Westcal Insulation LTD., Happy Canada Day!

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