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) . I MINES AND MINERALS UNDER THE LAND TITLES ACT; 2000 - . .." _ " "t .These materials were prepared by Guy Chicoine, QC of Chicoine Billesberger law firm Estevan, . Saskatchewan for the Saskatchewan Legal Education Society Inc. seminar, Legal Issues Update. on the New Land System; June 2002.

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Page 1: MINES AND MINERALS UNDER THE LAND TITLES ACT; …library.lawsociety.sk.ca/inmagicgenie/documentfolder/ac2532.pdf · MINES AND MINERALS UNDER THE LAND TITLES ACT; ... MINES AND MINERALS

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. I

MINES AND MINERALS UNDERTHE LAND TITLES ACT; 2000

- . .." _ " • "t

.These materials were prepared by Guy Chicoine, QC of Chicoine Billesberger law firm Estevan, .Saskatchewan for the Saskatchewan Legal Education Society Inc. seminar, Legal Issues Update. on theNew Land System; June 2002.

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· i

-~.

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)NUNESANDNUNERALS

UNDER THE LAND TITLES ACT, 2000by GUY A. CHICOINE, Q.C.

TABLE OF CONTENTS

I. MWERAL OWNERSHIP 1A. CROWN GRANTS 1B. DEFWITION OF LAND WCLUDES MWERALS 2C. FUNDAMENTAL PRWCIPLES OF THE NEW LAND REGISTRy 2

1. Separate Mineral Commodity Register 22. The Abstract Directory 23. Separation of Surface and Mineral Titles Upon Conversion 34. Separation of Title Owners Unless Jointly Held 35. Application of Fundamental Principles 4

II. MWERAL COMMODITIES 4A. MWERAL DESCRIPTIONS UNDER THE PREVIOUS SYSTEM 4B. THE NEW MWERAL COMMODITY DESCRIPTIONS 4C. DESCRIPTIONS UPON CONVERSION 5D. SEVERANCE OF MWERAL TITLES 6

III. MWERAL CERTIFICATION 7A. MWERAL CERTIFICATION UNDER THE OLD SySTEM 7

1. Indefeasibility of Title 72. The Assurance Fund 73. Limitation Relating to Mineral Titles 7

B. THE CERTIFICATION PROCESS UNDER THE NEW SYSTEM 8IV. CONVERSION OF MWERAL TITLES 9

A. CREATION OF UNCERTIFIED MWERAL TITLES 9B. CONVERSION OF CERTIFICATES OF TITLE FOR MWERALS 9

V. TRANSFER OF MWERAL TITLES 9A. RESTRICTIONS ON TRANSFERS 9B. METHOD OF APPLYWG FOR CERTIFICATION 10C. TRANSFER OF TITLES W "PRODUCWG AREAS" 10

1. Difficulties Encountered in the Certification Process 102. An Interim Measure to By-Pass Certification 113. The Process for Work in the Queue 114. The Process for Work Not Yet in the Queue 12

VI. OTHER MWERAL TITLE ISSUES 12A. VALUE OF MWERALS UNDER URBAN PROPERTIES 12B. FRAGMENTATION OF MWERAL TITLES 13

VI. CONCLUSION 14APPENDIX 1 Sample Abstract from Abstract DirectoryAPPENDIX 2 Sample Conversion of Mineral TitlesAPPENDIX 3 Blank Form Application for Mineral Ownership Register SetupAPPENDIX 4 Sample Application for Mineral CertificationAPPENDIX 5 Sample Authorization to Transfer Uncertified Mineral Title

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MINES AND MINERALSUNDER THE LAND TITLES ACT, 2000

by GUY A. CHICOINE, Q.C. *

I. MINERAL OWNERSHIP

A. CROWN GRANTS

The practice of including ownership of mines and minerals with ownership of the surface title to

land preceded the formation of the Province of Saskatchewan in 1905. The Government of

Canada granted large tracts of land including mines and minerals to Hudson's Bay Company as

part of the agreement to surrender ownership of what was then known as "Rupert's Land."

Pursuant to this agreement, Hudson's Bay Company received one-twentieth of the land south of

the North Saskatchewan River and West of Lake Winnipeg as the surveys progressed. In

addition, large tracts of land were granted to the railways as a form of subsidy for the

construction of mainline railroads, usually all of the odd numbered sections in a strip running

twenty miles each side of the railroad and almost always with minerals included. The Crown

also granted title to settlers and other persons, such as land companies. Prior to 1890 most of

these grants included mines and minerals. Therefore, in areas such as southeastern

Saskatchewan where there was early settlement, a high percentage of freehold mineral rights

exist. This is also an active area for oil drilling.

It was only with the transfer of mines and minerals to the Provincial Crown under the Natural

Resources Agreement of 1930 and the passing of The Provincial Lands Act in the same year that

transfer of mines and minerals by the Crown ceased to occur. This was confirmed in Sections 93

and 94 of The Land Titles Act which prohibited the transfer of mines and minerals by the Crown.

This historical practice of including minerals with the original grant from the Crown has resulted

in a large number of titles that include mineral ownership, especially in those areas of the

Province where settlement first occurred and where mainline railways were constructed. l

1 See ."History of Mineral Rights in Saskatchewan" by Con Dumba in Manual of Law of Procedures, SaskatchewanLand Titles Offices, 1988 at Page 514.* of CHICOINE BILLESBERGER, Barristers and Solicitors, Estevan, Saskatchewan. I would like to thank Debra McLean, Assistant DirectorLand Registry, and Linda Hjorth, Supervisor, Mineral Certification, Infonnation Services Corporation, for their input and assistance in thepreparation of this paper.

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B. DEFINITION OF LAND INCLUDES MINERALS

In the common law, land by definition included everything above and everything below the

surface. This was confirmed in National Trust Co. Ltd. v. Western Trust Co. Ltd. et al (1912), 2

W.W.R. 667 (Sask. S.c.). Section 2(k) of The Land Titles Act also defined land as including

"mines, minerals and quarries thereon or thereunder lying or being, unless any such are specially

excepted." It therefore followed that any certificate of title containing no exceptions and silent

as to mines and minerals could include mines and minerals. There are certain exceptions, such

as a roadway title where the mines and minerals continue to be vested in the original owners of

the mines and minerals or their assigns? Only an historical search will determine whether a title

that is silent as to mines and minerals does in fact include mines and minerals.

Mineral ownership in this Province is inextricably bound to our land titles system, a tradition that

continues under the new Land Titles Act. 2000.

C. FUNDAMENTAL PRINCIPLES OF THE NEW LAND REGISTRY

1. Separate Mineral Commodity Register

Section 11 (1) of The Land Titles Act, 2000 requires the Registrar to establish and maintain an

ownership register for only three types of land, namely:

(a) each surface parcel that has been the subject of a Crown grant submitted to the

land titles registry;

(b) each mineral commodity that has been the subject of a Crown grant submitted to

the land titles registry; and

(c) each condominium unit that is the subject of an application for issuance of title

pursuant to The Condominium Property Act, 1993.

2. The Abstract Directory

Part IX of The Land Titles Act, 2000, Sections 69 to 74, establishes the Abstract Directory. This

is a database similar to the Land Titles Registry, but respecting parcels that are unpatented, or not

yet granted by the Crown. This would therefore apply to minerals which were reserved by the

Crown in the original land grant. The difference between the Abstract Directory and the Land

2 Sub-Section 114(2) of The Land Titles Act

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Titles Registry is that there are no titles for these parcels, and therefore the indefeasibility

provisions and many other portions of the Act do not apply. In fact, the Abstract Directory is

provided to customers for information only; nothing is guaranteed. (See Appendix 1 for a

sample Abstract Directory Abstract for a Mineral Parcel.)

3. Separation of Surface and Mineral Titles Upon Conversion

Section 12 of the new Act also specifies that a surface title must not reference more than one

surface parcel, and that a mineral title must not reference more than one mineral parcel or more

than one mineral commodity in that mineral parcel. The effect of this Section is that upon

conversion separate mineral titles are issued for any parcels that had minerals included with the

surface parcel, and separate mineral titles will issue where more than one mineral commodity is

described in the former certificate of title. An example of the latter would be where a mineral

owner may own a one-half interest in petroleum and natural gas and all coal. Two mineral titles

will be issued, one for a one-half interest in the petroleum and natural gas and another for the

interest in coal.

4. Separation of Title Owners Unless Jointly Held

Another feature of the new land registry system is that a separate title is issued to each registered

owner who is a tenant in common with another registered owner. This means that where two

persons owned a surface parcel with minerals included, four titles will be issued -- two for the

surface, one for each tenant in common, and two for the minerals, one for each tenant in

common. The same fees for title surrender and setup apply to mineral titles as to surface titles,

except that mineral titles often have nominal value and will be charged the lower fee for parcels

valued at less than $15,000.00.

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5. Application of Fundamental Principles

All of the fundamental principles such a fee simple ownership, indefeasibility of title,

registration of interests, priority, and implied interest described in Part ill of The Land Titles

Act. 2000, Sections 11 to 27 apply equally to mineral titles as to surface and condominium titles,

but not to uncertified mineral titles as they are not considered to be titles.

II. MINERAL COMMODITIES

A. MINERAL DESCRIPTIONS UNDER THE PREVIOUS SYSTEM

One of the changes being brought about by the new Land Titles Act. 2000 is with regard to the

types of minerals that can be titled. The previous legislation did not specify the types of minerals

that could be described on a title, with the result that common law and practice determined the

issue. In practice, titles could be issued to all mines and minerals, coal (and valuable stone),

petroleum and natural gas or variations of that name, and the minerals that were left after coal,

petroleum and natural gas were removed. The last category was normally used to include all

other minerals that may exist, such as potash and uranium, but occasionally titles were issued for

commodities such as potash and uranium.

In addition to the foregoing, title could issue for oil and gas rights as defined in Section 27 of

The Oil and Gas Conservation, Stabilization and Development ACt, S.S. 1973-74, C.72. This

statute expropriated title to petroleum, natural gas and other hydrocarbons except coal in all

producing tracts and down to known producing zones owned by certain companies named in the

legislation. This is the only time that titles were issued to land described in relation to a tract or

zone in the earth so many metres above or below mean sea level.

B. THE NEW MINERAL COMMODITY DESCRIPTIONS

Under the new Act, titles can only be raised for mineral commodities designated as a mineral

commodity in the regulations.3 These are described as:

(a) .all mines and minerals;

(b) coal;

(c) petroleum and natural gas; and

3 The Land Titles Act. 2000, clause 2(y) and Sections 11 and 12.

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(d) all minerals in the mineral parcel except the minerals described in all other

mineral commodity titles for the same parcel.4

These designations apply only where a first title is issued for a mineral commodity. This does

not apply to titles being converted from the previous system.

C. DESCRIPTIONS UPON CONVERSION

In the conversion of a certificate of title to a mineral title or to an uncertified mineral title under

the new Act, any mineral description on the certificate of title can be restated on the new title as

a mineral commodity designated as one of the following:

(a) all mines and minerals;

(b) coal;

(c) petroleum and natural gas;

(d) petroleum and natural gas and all other hydrocarbons;

(e) coal and valuable stone;

(t) petroleum;

(g) natural gas;

(h) strata (being the oil and gas rights defined pursuant to Section 27 of The Oil and

Gas Conservation, Stabilization and Development Act, 1973);

(i) petroleum and natural gas other than strata;

CD petroleum, natural gas and all other hydrocarbons other than strata;

(k) potash;

(1) all minerals in the mineral parcel except the minerals described in all other

commodity titles for the same parcel; and

(m) any other mineral commodity listed on a certificate of title that is converted under

the new Act that is not listed above.5

Appendix 2 attached hereto is a sample of the conversion of the mineral titles for one quarter

section where three parties own all coal and Y2 interest in all mines and minerals other than coal,

4 The Land Titles Regulations, 2001, Section 67(4).5 The Land Titles Regulations. 2001, Subsections 67(1), 67(2) and 67(3).

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and the other Yz interest in mines and minerals other than coal is a strata title involving the

Crown in Right of Saskatchewan and an oil company.

D. SEVERANCE OF MINERAL TITLES

With regard to the severance of mineral commodities, there are some changes in procedure as

compared to the old land titles system. Previously, an owner could transfer a particular mineral

commodity by describing it on the transfer. Under the new system, the owner must first apply to

sever the mineral commodity before it can be transferred. More than one mineral commodity

may be severed from another -- as long as the result is permitted by The Land Titles Act, 2000

and the regulations.6

For example, if a customer owns all minerals, that customer could submit an application to sever

COAL or PETROLEUM AND NATURAL GAS or BOTH of these commodities from the ALL

MINERALS title.

In order to sever a mineral commodity, the customer must complete an application form called

"Application for Mineral Ownership Register Set Up." (See Appendix 3) This application can

be submitted in the same packet as.a Transfer application (if that is the reason for requesting

severance).

Another limitation to the severance of mineral commodities is that in the case where more than

one mineral title has been issued for a mineral commodity in a mineral parcel, an application to

sever mineral titles must be submitted to the Registrar by all mineral title owners for that mineral

commodity.?

6 The Land Titles Regulations. 2001, Section 69.. 7 The Land Titles Regulations. 2001, Subsection 69(4).

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III. MINERAL CERTIFICATION

A. MINERAL CERTIFICATION UNDER THE OLD SYSTEM

1. Indefeasibility of Title

Section 213 of The Land Titles Act clearly states that every certificate of title shall be conclusive

evidence that the person named therein is entitled to the land included in the same for the estate

or interest specified, subject to the exceptions and reservations implied under the Act. The

essence of the principle of indefeasibility is that a person is entitled to rely on whatever the

certificate of title states. Its accuracy must be beyond question both as to what is on the face of

the title and as to the memoranda noted on the back. A title must not only be accurate but also

free from ambiguity.8

2. The Assurance Fund

Anyone who sustains loss or damage through an error in the execution of the Registrar's duties is

entitled to make a claim against the assurance fund. Most often claims against the fund were

paid without the necessity of commencing an action against the Registrar, since the purpose of

the assurance fund was to ensure that land titles errors were dealt with quickly and effectively.

3. Limitation Relating to Mineral Titles

The discovery of oil and gas in Saskatchewan in the late 1940's and the 1950's also led to the

discovery of errors relating to mineral titles issued in the previous years, most especially in the

areas where settlement first occurred and there are high numbers of freehold minerals. Some

titles were inadvertently stamped "Minerals Included" when in fact the minerals had been

reserved in the original Crown Grant or by prior owners. These mistakes exposed the assurance

fund to serious potential liabilities. The government moved to limit liability by instituting a

system of certification of mineral titles and by capping the amounts of the potential claims.

Subsection 208(4) of The Land Titles Act states:

No person shall have an action against the registrar arising out of a disposition ofan interest in mines and minerals executed on or after the first day of June, 1951,for any loss or damage sustained by reason on any error, omission ormisdescription in any certificate of title or in any abstract, certified or uncertifiedcopy of an instrument, issued by the registrar, relating to the interest in mines and

) 8 Manual of Law Procedures, Saskatchewan Land Titles Offices, 1988 at Page 13.

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minerals, unless the registrar has issued the mineral certificate in respect of thatinterest in the mines and minerals.

Subsection 208(5) of the old Act required that a mineral certificate be issued prior to the

registration of any disposition of mines and minerals executed on or after June 1, 1951 except a

disposition by way of a caveat. If the disposition was of the surface, including mines and

minerals, then the disposition could be registered without a mineral certificate, but subsection (4)

would apply and no action could be brought against the Registrar.

Until June 1, 1988, there was also a monetary limit on the amount that could be recovered from

the Registrar, being the moneys actually paid by the claimant for the mineral interest and

$5000.00 maximum for any present or prospective loss of profit. This provision was repealed by

The Land Titles Amendment Act, 1988. A further provision was enacted at the same time as

subsection 208(2.1) which stated that if a disposition of mines and minerals is itself an

instrument submitted for registration, the submission of the instrument is deemed to be a request

for a mineral certificate. In practice, then, every application for transfer of minerals became a

request for the Registrar to issue a mineral certificate without need for any separate application.

B. THE CERTIFICATION PROCESS UNDER THE NEW SYSTEM

The mineral certification process is authorized under Section 17 of The Land Titles Act, 2000.

Mineral certification involves the necessary searching of past titles and instruments back to the

original grant. If it is determined that the current registered owner is in fact the owner, a mineral

certificate can be issued. A notification stating that the mineral parcel is certified will be sent to

the submitting party. If a problem is encountered, the matter is escalated to the Mineral

Certification Supervisor and the parties are notified of the reason why certification was not

successful.

It should also be noted that no mineral certification is required with respect to a disposition if a

mineral certificate has previously been issued with respect to the interest in the minerals which

are the subject of the disposition.

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A.

9

CONVERSION OF MINERAL TITLES

CREATION OF UNCERTIFIED MINERAL TITLES

Upon conversion, the existing mineral titles and subject to certain exceptions, all titles for

patented minerals for which a mineral certificate has not been issued are issued a lock type that

prohibits transfer. These titles are referred to as "uncertified mineral titles." An uncertified

mineral title does not have the same status as a title under Section 13 of The Land Titles Act,

2000 which hold that where a Registrar issues a title pursuant to this Act, the registered owner

holds the title free from all interests, exceptions and reservations, except reservations registered

pursuant to the Act or the implied reservations in Sections 18 to 20, and the title is conclusive

proof that the registered owner is entitled to the ownership share in the surface parcel, mineral

commodity or condominium unit for the title which has issued. Section 13 does not apply to an

uncertified mineral title.

B. CONVERSION OF CERTIFICATES OF TITLE FOR MINERALS

Certificates of title for minerals are created in the following four circumstances referred to in

Section 195 of The Land Titles Act, 2000:

a) Where a title included the surface and the mines and minerals and no mineral

certificate had previously been issued, then the title is converted into a surface title and an

uncertified mineral title.

b) Where a title included the surface and the mines and minerals and a mineral

certificate had previously been issued, then the title is converted into a surface title an a

mineral title.

c) Where a title covered mines and minerals only and no mineral certificate had

previously been issued, then the title is converted into an uncertified mineral title;

d) Where a title covered mines and minerals only and a mineral certificate had

previously been issued, then the title is converted into a mineral title.

V. TRANSFER OF MINERAL TITLES

A. RESTRICTIONS ON TRANSFERS

A mineral title may be transferred in the same manner as a surface title or a condominium title.

An uncertified mineral title may only be transferred in one of three circumstances, namely:

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a) for the purpose of transmission to the personal representative of an estate;

b) upon application by a surviving joint tenant;

c) if the title is not within a township listed in Appendix 3 of The Land Titles

Regulations, 2001, being "non-producing" or "low producing" areas as prescribed by the

Lieutenant Governor in Council pursuant to Section 48 of the Act.

In each case, a lock type will still appear on the title to indicate that the minerals on the title are

uncertified.

While The Land Titles Act. 2000 permits the transfer of an uncertified mineral title in these

circumstances, Section 86 of the Act states that compensation is not payable with respect to loss,

damage or deprivation resulting from the transfer of the uncertified mineral title.

B. METHOD OF APPLYING FOR CERTIFICATION

A person who wishes to apply for certification of an uncertified mineral title must submit an

application to the Registrar in the form provided for the purpose. This form is sent to the e­

Business Services Centre. No other application may be submitted with an application for

certification of an uncertified mineral title. Each mineral certification packet can only contain

one application and only refer to a mineral parcel. Specific titles may not be applicationed for

certification.- The form also specifies whether or liot the application is required for a registration

transaction. Registration-related packets receive a higher priority for processing that those that

are not registration-related. (See Appendix 4 for Application for Mineral Certification and

Packet Verification Notice.)

C. TRANSFER OF TITLES IN "PRODUCING AREAS"

1. Difficulties Encountered in the Certification Process

As implementation of the new land titles system progressed from Moose Jaw to Regina Area and

Regina South East Land Registration Districts, it became increasingly obvious that the mineral

certification process prescribed under Section 17 of the new Act could not keep pace with the

demand placed on the system by customers wanting to register dispositions of titles including a

mineral interest. The certification process requires a manual search and examination of the

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records of the land titles registry and the abstract directory to determine ownership of all or any

mineral commodities in the mineral parcel. One staff member can perhaps complete six

certifications per day, at best, in a department that only has three or four persons qualified to do

the work.

In the Estevan, Weybum and surrounding areas, many urban titles have minerals included with

the surface. It is customary on the sale of an urban property to transfer the entire interest of the

vendor, including the minerals, unless the Offer to Purchase states otherwise. Early in the

implementation process, solicitors became frustrated with the slow process of mineral

certification and it became increasingly clear that the requirement of mineral certification for

urban properties was creating unwarranted delay and extra cost, especially since a separate

mineral title was being issued for each lot or parcel involved in the sale.

2. An Interim Measure to By-Pass Certification

Information Services Corporation has implemented an interim measure to reduce the volume of

work in the mineral certification section. Where uncertified mineral titles have been issued for a

mineral parcel converted from a certificate of title that combined the mineral layer and the

surface layer (i.e. a certificate of title that had minerals included), certification is no longer

required.

3. The Process for Work in the Queue

For requests for certification that were received prior to the implementation of this interim

measure, the mineral certification worker will examine the request to determine if the request is

for a mineral parcel in a designated producing area and the mineral title was converted from a

combined certificate of title (i.e.. one that had minerals included with the surface). If both of

these criteria apply, the staff will contact the submitting party and advise that the mineral

certification request may be withdrawn from the queue so that the transfer of title can take place

without certification.

Before the request is withdrawn, ISC will prepare and provide a joint authorization to the

submitting party. The authorization will be signed, dated and sealed by a mineral certification

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worker who will then send it to the submitting party. Once the authorization is signed and

returned, the worker will withdraw the packet from the queue. This authorization is then

submitted with the registration application as one of the authorizations, and not as an attachment.

4. The Process for Work Not Yet in the Queue

Prior to registration of the packet, the uncertified mineral title lock will be removed to permit

registration, and the lock will be replaced after registration.

For requests for exemption from certification for titles that are not yet in the queue, the

submitting party should contact ISC bye-mail at [email protected] or call 1-866-ASK­

ISCI (1-866-275-4721) and provide the mineral parcel number and the certificate of title

number. The request will be examined to determine if it meets the two criteria of the mineral

parcel being in a designated producing area and that the parcel came from a converted combined

certificate of title. If these requirements have been met, the submitting party is contacted and

advised that the mineral title may be transferred without certification. On request, the mineral

certification worker will prepare an authorization, and sign, date and seal it with the Registrar's

seal. The authorization is then sent to the submitting party for execution and the submitting

party includes the authorization in the registration application as one of the authorizations. Do

not place it behind a Begin Attachment Sheet. Prior to registering the packet, the uncertified

mineral lock will be removed to enable registration, and the lock is replaced after registration.

Do not include a title print request with the registration application as the system will generate a

certified mineral title which in incorrect and subject to invalidation. A title print can be

requested after the Verification Report for the registration has been received. At that point the

title will be shown as uncertified and locked. (See Appendix 5 for sample e-mail request,

Application for Transfer, Joint Authorization and Transfer Authorization.)

VI. OTHER MINERAL TITLE ISSUES

A. VALUE OF MINERALS UNDER URBAN PROPERTIES

There exists a few cases where urban lot owners receive a royalty from the development of an oil

or gas well in a drilling spacing unit that includes part of an urban municipality. This situation is

not encountered very frequently. In the vast majority of cases, the minerals are and will remain

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undeveloped. Non-producing mineral rights, even in an area where oil and gas wells do exist,

may have a value of thirty to fifty dollars an acre. If the area of an urban lot averages 9000

square feet, or aboutone-fifth of an acre, the value of the mineral rights under that lot is perhaps

six to ten dollars. One wonders about the efficacy of transferring mineral titles for minerals

under urban lots when one considers the search fees, submission fees, and the $50.00 per title

transfer fee.

It is apparent that the cost of transferring the mineral titles under urban properties will almost

always exceed their current fair market value. Leaving the title in the names of the vendors will

probably result in a high number of orphaned titles. This is especially so when one considers

that these titles will end up in the name of deceased owners whose estates will have to be

probated or resealed in this Province to effect a transmission and a transfer. Some system or

protocol should be implemented to transfer these mineral titles at no cost to the urban

municipality (which may already own the mines and minerals beneath the adjacent streets, lanes,

parks and dedicated lands) or to the Crown in Right of the Province of Saskatchewan.

B. FRAGMENTATION OF MINERAL TITLES

Under Section 59 of The Land Titles Act, the Registrar could refuse to accept for registration any

instrument transferring, encumbering, changing or otherwise disposing of or reserving an

undivided fractional interest in a parcel of land containing mines and minerals, or any mineral,

that was less then an undivided one-fourth of the whole interest in mines or minerals, or in any

mineral, contained in that parcel of land.

In 1961, Master of Titles Towill instructed the Registrar that this rule was enacted for the

specific purpose of preventing the creation of a large number of fractional interests in minerals.

"The more titles that are issued for any particular piece of land," he stated, "the more difficulties

arise and the more errors are invited." Not only do titles of undivided interests create difficulties

for guarantee of titles, but it also militates against the development of minerals.9

)/ 9 Manual of Law and Procedures, Saskatchewan Land Titles Offices at Pages 77 and 78.

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14

The Land Titles Act. 2000 no longer prohibits the creation of mineral interests less than one­

fourth. However, just because it is possible to make fractional interests smaller than one-fourth,

this does not mean that interests smaller than one-fourth should in fact be created. Potential

developers of the mineral interest may decide to look elsewhere when an interest is divided into

small parts and every owner of a mineral parcel has to be approached, one on one, for a mineral

lease. There are still many good reasons to handle fractional interests by way of a Mineral Trust

or a Mineral Agency Agreement. Such arrangements simplify matters for the potential developer

and usually provide that it is not necessary to obtain consent of each and every interest holder for

development to proceed, but only of a majority ownership. The rationale expressed by Master of

Titles Towill in 1961 is still applicable today.

VI. CONCLUSION

The creation of a separate mineral commodity register and separate mineral titles under the new

land registry system means that mineral ownership is no longer a subordinate registry system to

the surface title ownership system. Rather, The Land Titles Act, 2000 provides for a parallel

system with one of the most significant differences being the mineral certification process and

the limitations placed on uncertified mineral titles. While the mineral title transfer process is

similar to the surface and condominium title transfer process, issues of costs related to searching

and registering mineral transfers, of detaching insignificant mineral interests from surface titles,

and -possible-- fragmentation of mineral interests to the point of making them no longer

economically viable may require modifications to the new registry system in the future.

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Title Detail

APPENDIX 1Page lof2

)

I Quick Search Results ISearch By: Current Title Details

With Criteria: As Of Date = 22-Apr-2002 11:46:50Abstract Number = 107449409

Province of SaskatchewanAbstract Directory

Abstract

As of: 22-Apr-2002 11:46:50

Last Amendment Date: 22-Apr-2002

Issued: 22-Apr-2002 07:30:24

Abstract #: 107449409

Status: Active

Parcel Type: Mineral - All

Mineral Value:

Abstract Value:

Converted Abstract Folder or Title # Ref.: 88R14814B

*THIS IS NOT A TITLE. THIS RECORD IS NOT PART OF THE LAND TITLES REGISTRY.*

This Abstract Directory record contains information relating to UNPATENTED LAND.The Abstract Directory is provided as an information service only, with no guarantee or liabilitywith respect to that information on the part of the Crown in right of Saskatchewan,Information Services Corporation of Saskatchewan, the minister, the Registrar, any DeputyRegistrar, or any other officer or employee of the Corporation.

Her Majesty the Queen in Right of Saskatchewan is the owner of allmines and minerals as referenced on record of unpatented land88R14814B in Mineral Parcel #120477269

Reference Land Description: SW Sec 36 Twp 07 Rge 09 W2 ExtensionoAs described on Certificate of Title 88R14814B.

The following interests have been filed in the Abstract Directory against the parcel or mineralcommodity described in this Abstract:

None

http://www.isc-online.caITps/scripts/TPSRtvStdTtlDtl-ByTtl.asp?ttlSysKeyId=10744940... 2002-04-22

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Title Detail

NameOwner:Her Majesty the Queen in Right ofSaskatchewanClient #: 101247027

Parcel Class Code: Unknown

To request a copy, click here ;~$

Page 2 of2

Address

Saskatchewan Industry and Resources 2101 ScarthStreet Regina, SK, Canada S4P 3V7

During the conversion period, Land Registry searches by land description or name may be incomplete. Land Registry searches by

former certificate of title number will not be successful until that title has been converted.

© 200 1 Information Services Corporation of Saskatchewan

·AII Rights Reserved

http://www.isc-online.calTps/scripts/TPSRtvStdTtlDtl-ByTtl.asp?ttlSysKeyId=10744940... 2002-04-22

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) APPENDIX 2 Page 1 of 7

)

MINERAL TITLES FOR SW 31-7-8 W2M WHICH RESULTEDFROM CONVERSION OF MINERAL TITLES 81R14306AM, 93R18952H AND 0ISEI4133(1).

Title 103783394 Richards, Patricia Anne as a personal representative for the estate of GabrielZimmerman, Zimmerman, Michael as a personal representative for the estate of Gabriel ZimmermanMineral Strata as referenced on Certificate of Title 01SE14133(1)

Title 103783406 Coombes, Ruby 1. Mineral Strata as referenced on Certificate of Title 01SE14133(1)

Title 103783417 Thring, Ivan W. Mineral Strata as referenced on Certificate of Title 01SEI4133(1)

Title 103783440 Her Majesty the Queen (Saskatchewan) Mineral Strata as referenced on Certificate ofTitle 01SEI4133(1)

Title 103783338 Richards, Patricia Anne as a personal representative for the estate of GabrielZimmerman, Zimmerman, Michael as a personal representative for the estate of Gabriel ZimmermanMineral All mines and minerals as referenced on Certificate of Title 01SEI4133(1) except Coal asreferenced on Certificate of Title 01SE14133(1), Strata as referenced on Certificate of Title0ISE14133(1)

Title 103783349 Coombes, Ruby 1. Mineral All mines and minerals as referenced on Certificate of Title01SE14133(1) except Coal as referenced on Certificate of Title 01SE14133(1), Strata as referenced onCertificate of Title 01SE14133(1)

Title 103783439 TALISMAN ENERGY INC. Mineral All mines and minerals as referenced onCertificate of Title 01SE14133(1) except Coal as referenced on Certificate of Title 0ISE14133(1), Strataas referenced on Certificate of Title 01SEI4133(1)

Title 104255906 Thring, Edna Thring, Ivan Mineral All mines and minerals as referenced on Certificateof Title 01SE14133(1) except Coal as referenced on Certificate of Title 01SE14133(1), Strata asreferenced on Certificate of Title 0ISEI4133(1)

Title 103783361 Richards, Patricia Anne as a personal representative for the estate of GabrielZimmerman, Zimmerman, Michael as a personal representative for the estate of Gabriel ZimmermanMineral Coal as referenced on Certificate of Title 01SE14133(1)

Title 103783372 Coombes, Ruby 1. Mineral Coal as referenced on Certificate of Title 01SE14133(1)

Title 104255928 Thring, Edna, Thring, Ivan Mineral Coal as referenced on Certificate of Title0ISE14133(1)

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M.C.

Value $

Government ofSaskatchewanRegina Land Titles Office

73R22092

Page 2 of 7

CERTIACATE OF TITLE

No. 01SE14133(1)

Grant No. 47849

THIS IS TO CERTIFY that

Ref. 97R27669(1)01SE14133

PATRICIA ANNE RICHARDS and MICHAEL ZIMMERMAN Executors of the lastWill and Testament of Gabriel Zimmerman. deceased. RUBY I. COOMBES andIVAN W. THRING

are now the owners of an estate in fee simple the firstlWo named as such Executors.the last lWo named In their personal capacity

of and inFirstly: an undivided one-half Interest in all mines and minerals other than coal within, upon or under:

the North West and South West Quarters of Section 31

Township 7

Range 8

West of the Second Meridian, Saskatchewan

320 acres

~: all coal within, upon or under:

the North West and South West Quarters of Section 31

SUBJECT TO THE ENCUMBRANCES, liENS, AND INTERESTS NOTIFIED BY MEMORANDUM NOW ORHEREAFTER UNDERWRITTEN OR ENDORSED HEREON, OR WHICH ATTACH BY IMPLICATIONPURSUANT TO THE lAND TITLES ACT. ANY REFERENCE TO AREA IS "MORE OR lESS".

IN WITNESS WHEREOF I have hereunto subscribed my name and affixed my official seal this~day of M!!Y, 2001

Post Office Address1) R.R. 4. Site 22, Box 13. Calgary AB T2M 4142) #2 West Kerfoot Place. Cochrane AB TOl OW43) Calgary AB4) Stoughton SK

NOTICE: The Land Tilles Act require. that "everyowner or mortgagee shall nolily the Registrar of enychange In his Post office Address."

&.£/I'A->1L Registrar

Regina South East land Registration District

01

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Paper Title No. OLSEI'/I ?13/i) Page(s) -3- Date <k //~101 Worksheet Page--lJL

Analyst/Supervisor~~~~~~~=--_

)

Informanon~'l/c.~~~on

Page 3 of 7CONVERSION

HOCK TITLE WORKSHEET

o Minerai Cere. 110 Plat Date 0 Mineral CerL III SIMI ( MIC ( EX I\ SIMI I MIC I EX

:=:::=:==~~=~ShIre CommodIty Shire Commodlly Shire Commodll)'

1----0 balance 0 balance 0 bal.nee

.1 0 coal 0 coal 0 coal

1 0 coal & valuable stone 0 coal'& valuable Mone 0 coal & valuable scone

1 0 valuable !tone 0 valuable!rtone 0 valuable stone

1 0 PNG 0 P NG 0 P NG

1 0 P NG ..cepIXtrala 0 P NG "cepI 5Iral. 0 P NG except 'trala

1 0 PNG H 0 P NG H 1__-,0-, PNG H

1 -'0... PNG H..cepI "'ata II---WO PNG H.xcept "'ata . 0 P NO Hcxcept ",.ta1 0 P.lrol.~m 0 Petroleum . 0 Pelroleum

1 0 N.lural Ga, 0 NaluraJ Ga. 0 N.IU,.IOax

1 .0 Sirala Deplh__ _ __0 Slrata Depth___ _ __0 SIr.ta Depth__

1 0 Por.."" 0 PoIa'" . 0 Pota",

i====O~c:lhe:r-=====-.J t-=-=-=-=-=O:::..:o:lh:.r-=====:.-J . 0 other _

~)EL

I

====II~===~I:=.===::=::io Metes & BoondslI0 Plan 0 Metes & BoUnds II 0 Plan 0 Metes & Boondsl

=================11 1\==:I----

Mtba-__ZlmmE/(mlJAJ IIJT <!9JTW/ol[]£I0 I~A AJIW.e 8/<MtWs1

IIJT I TC I JTW/olCJ0 Il91»kH4el .zmJm~~ I

~=======~~ ~ IJT JTw/omJDICC: IUJdA) A)!];;/id JT I JTw/o [25J0 ~ I

_I~3/-7-3w~ 16:) 31-2=8:; " I_I 0 Plan 0 Metes & Boondsll 0 Plan 0 Metes & Bounds II 0 Plan 0 Metes & BOWldsl= I~ 11=========1K\\_mlti 0 Plat Date 0 Mineral Cere. 110 Plat Date 0 Minerai Cert.1

_ S @ MIC I EX II SIMI I MIC I EX

Sbare~ _~~colmmodll)' Shire Commodll)'Y-::; l!t"1l3laJ 0 balance

'coal 0 coo,

___0 coal & valulI.ble ~Ione 0 coal & v:aluahle stone

___0 valuable stone 0 valuable Slone

1- 0 PNG 0 PNG 0 P NG

1 0 P NG excepl strala 1__--'0.... PNG .XCCjlt >1rala 0 P NO cxeepl "rail

___0 PNGH 0 PNGH 0 PNGH

___10 P NG Hcxcepl "'ata 0 PNG HeAcept ",ata 0 P NG HeXcepllllra..

1 0 Petroleum 0 Petroleum 0 Pelroleum

1 10 Nalural Ga, 0 Nalural Ga, 0 Nalural (;,.

1 0 Slrala Depth__ ~~ Ocpth2JR'L 0 SIr.ta OcpIh__

1 0 Poo'" 0 POI.", 1 0 Pcr..,h

1====0::..0IheI::~====-.J 0 olher ':::=-=-=-=-=O:::..:o:th:.r-====:::....J

LLD

oWNER

o

o

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Page 4 of 7

•. Governmenlof..tiin S..kelehe.en

Velue $ ..

I!;I1Iiiiii

Grant No.....~?{!.~!L...... Ref. .~fr'l.. ...."'I!!!!!I-.-!iii"'i!!!ii"'iii"'!!!!IiilHlS IS TO CERTIFY that HER JlAJ13'l'Y 'PIlE QUEIN, 31;;

in the Bight and to the Use of Her PT'ouince of Saskatchewan ....

is now tho OWDer of an estale in fcc simple

01 aDd In an undiuided One-half interest in all OU and Gas rights Within, upon or under:

the South West Quarter of Section Thirty-one (31),

in Tormship SelJan (7),

in Bange Eight (8),

West of the Second Jleriti'lan,

in the .PT'ouince of Saskatchewan, in the Dominion of CtJnCIdcl, containing O7Ie 1/IJTdred and

Si:z:tll (160) acres, more or less, according to Dominion Gouel"rlm6nt SUl'lJell thereof, to a

depth of 7'1<10 ThousaM Pour 1IlI1ldred and Piftll (2450) feet below mean sea lelJel.:. -'"

'!'he said Oil and G/ia':"1'ights I46re acquired under the OU and Gas Conservation StabUiaation

and Deuelopment Act--liu Instrtlllent registered as No. 811U4306•

.'.....

SUBJECT TO THE ENCUMBRANCES, LIENS AND INTERESTS NOTIFIED BY MEMORANDUM NOW OR

HEREAFTER UNDERWRITI'EN OR ENDORSED HEREON, OR WHICH AITACH BY IMPLICATION UNDER.

THE LAND TITLES ACT.

IN WITNESS WHEREOF I have hereunto subscribed my name and affixed my oIflcial Rallbla .~.u.~~!J: .

day of AP1:'.tl , A.D. 19 81.

POll Office Addma ~(~.J!.~~r:.~~~..~.f..~~~.~ .. .!leaourcea1914 Hamil ton Street,

......................................JlRgJM•. .Saal«l..t.c:hB/«:lll....S4P...$lV4

............................Ld:;:;;;~....~g~~ LaIId ReptratioD DiItrict

C'fIo'l" 1A'" ;: "

Province of Saskatchewan.fbk

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HOCK TITLE WORKSHEET

CONVERSIONPage 5 of 7

-~Paper Title No.lJ!lV'I'3061'i1J Page(s)~Date '««/01 Worksheet Page-+1..L

AnalystlSupervisor~~t::~~fIIil,-~__)

Sbore CoaaodIl1__0 botance

__0 coal

__0 coal'" valuable ilOIlO

1 0 valuablcalOllO

I O PNO

1 0 P NO excopl mta

II---UO PNOH11 0 PNO H excq>l ......

11 0 Petroleum

I--....JO Natural Ou__0 Strata Deplh__

__0 Potash

__0 other

SbIre CoIlllllOdlt)'

II---UO botan<o11__-,-,0 coal

1 0.... coaIlk valuable ilOIlO

__0 valuable _

1 OwPNO

__0 PNOexaplllnla

__OPNOH

__0 PNO Hexceplatrola

1__~Ou Petroleum

I--....JO Nalllral OUI__....JO Strata Deplh__

I__....JO Poluh

0-

Coam-dltJ1 ,0 balanc:e

___,0 coal

___,0 COIl'" valuable_

___,0 valuable_

__-,-,0 PNG

1 Ow P NO excq>l Ilnta

1__-,0.... PNO H

1__-lOU PNG H excq>l ......

1__-,0.... Petroleum

I--rr:--O t;lUraI OuHit Q"Strata Deplh~

1 O POWIl

0-

~~~~~~~~--~~~~~~lin I TC I nW1olt=JDlo I======lIn ITCIJTW/olt=JDIO I

lin I TC I nW/olc=JDlo I'=======lIn I TClnwlolc=JOiD I

_l5W3/-7-8w~ II I_I0 Plan 0 Metes" BOUDdsII 0 Plan 0 Metes" BOUDds 0 Plan 0 Metes" BOIIIIdaI

=I~II I Io Mloeral Cert. 10 Plat Date 0 Minerai Cert.llo Plat Date 0 MInerai Cert.1

MIC/EX I S/Ml/MICIEX II S/Ml/MIC/EX I

LLD

oWNER

D

_I II====~==~I_1;:=O=PIan===O=M=e=tea="=B=OIIIIds~110 Plan 0 Metes" BOIIIIda I0 Plan 0 Metes" BOlIDdsI= 1F================j11==================1~~I

)

10 Plat Date 0 MInerai Cert.IIO Plat Date 0 Mloeral Cert.IIO Plat Date 0 MInerai Cert.1

I SIMI I MlC I EX II SIMI I MlC I EX II SIMI I MIC I EX ISbIre CommodII1 SbIre CODIIIIOdltJ SbIre ColllJDOdllJ

1 0 balanc:e 0 ba1allce __0 balanc:e

___,0 coal 0 coal 0 coal

___,0 coaIlk valuable..... __0 coaIlk valuable _ 0 coal'" valuable .....

,, 0 valuable_ 0 valuable_ 0 valuable .....

1 0 PNO 0 PNO 0 PNG

1__-,0.... PNOexcepl...... __0 PNGexcoplmta 0 PNOexcq>lllnta

.I ,OPNOH __OPNOH OPNGR

1-----'0.... P NO H excq>l mta 0 P NO H excoplllrOta 0 P NO H excq>l ......

1__-lOU Petroleum __0 Petroleum 0 Peuoleum

1__-,0 NaturalOu __0 NaturalOu __0 NaturalGu

1__-,0 Strata Deplh__ 0 Strata Deplh__ __0 Snta DepIh__1 0 POWIl __0 PoIub __0 POWIl

°other __0 - t::-=-=-=-=O::..:other~=======-J

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Page 6 of 7

Government ofSuUtcMwIll..

...M.C. . ...~~~~~~.~ .

Value S ..~~~~~~ .

Grant No. .~~~~? .

THIS IS TO CERTIFY that BHCOR BHBRGr CORPORATION INC.

No. 93.,89528

ill

orand in

now the owner or lin estate in ree simple

an undivided one-h.lf interellt in all adne. and aiDeral. other than COIIl,

within, upon or under:

the lfOrth "e.t and SOUth Ve.t Qaartere of hctlon 31

TOVIIllhip 7

Ruge 8

Wellt of the 8econd MeridillD. 8ellutchll¥lID

320 acrell

Bxcept: out of the SOUth "e.t Quarter, all JlIItrol_, natlaral g•• , all

other hydrocar~, except valu.ble .tone, all other g•••• and aiDeral. and

eublltance., whether liquid or .olid and whether hydrocarboD or DOtI

occurring in •••ociation with lIDy of the foregoing to a depth of 2,450 f..t

below MIlD .e. level.. defined by Sectlon 27 of fte Oil and Ga.

eon.ervation, Stabilization and Development Act, 1973

SUBJECT TO THE ENCUMBRANCES, LIENS AND INTERESTS NOTIFIED BY MEMORANDUM NOW ORHEREAFTER UNDERWRITIEN OR ENDORSED HEREON, OR WHICH ATIACH BY IMPLICATION UNDER THE

LAND TITLES ACT. ANY REFERENCE TO AREA IS "MORE OR LESS".

IN WITNESS WHEREOF I have hereunto subscribed my name and affixed my official seal this

... ~.~ .... day or ~~~~~: ......... ,A.D. 19 .. ~~

Post Office Address ~~~: ..~~. ~~?~ .. . . . . . . . ~~~~~~~. .".~~ ! .~~~! .~~~ .. ?-:~~ .~~9

NOTICE. 'The Land Tille. Act provldeo that ·everyowner or mor".....hall notify the Reptr.. of anychanle In hla Poot Office Addre...•

Form 182A

Land Registration District

Province of Saskatchewan....2

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KOCK TITLE WORKSHEET·

CONVERSIONPage "7 of "7

1.JI.~~~'...L-Page(s)...3.-Date blt:il/Q' Worksheet Page-L.1+-

nfonnatlon

AnalystlSupervisor_~,... _

DoWNER

LLD

~--~II~JT./~TC~/n!!w/ol~~I!!D~~~~IIJT I TC I JTw/olc:::JD I~D=====================::::::

;:=======IIJT I TC I nw/ojCJD I~D===============~~~I lin 'Tcln,,/oICJDI~D-=======-i

_IUAJ31-2-8w;2 lliw 3/-Z-Pwd._I 0 Plan 0 Mele8 & BCIlIIIdsII 0 Plan 0 Meta & BOUDda 0 Plan 0 Metes & BCIlIIIdsI

=!OAd~1 Ad~r¥M~tt!IOAd_ OMhondJ_I S Lr.Y MlC I EX II S @ MIC I EX II SIMI I MIC I EX I

SbW c~ ~... c~ Shan CollllllOdlly~ ~ __0_

1 ,0 coal 0 cool __0 coal

11 0, coaJ <l valuable _ 0 cool <l.a1uabl..,..,. __0 coal <l val.obI.-..

1 0 valuoblo_ 0 valuoblo_ 0 valuoble_

1__-IOu PNO 0 PNG 0 PNG

1__-IOu PNOexoeptlln1ll 0 PNOexoept ....1Il 0 PNGe""l'l_

1__-IOuPNGH __OPNGH OPNGH

1__-IOu PNGHu"",,,1ln1ll __0 PNOHu"""' ....1Il __0 PNG Hox"",,,llnlll'

1--_......0 _earn 0 Petroleum 0 _eam1 0 Notural Ou 0 Natunl Gas __0 Notunl Gas

1 0 5lralll Deptb__ 0 5lralll Deptb__ __0 5lralll DepIh__

1 ,0 Powh 0 Potash __0 Potash

0- 0- I====O~-~=======-J

_I ":=:::====:::::===11=========1_I 0 Plan 0 Meta & BCIlIIIdsII 0 Plan 0 Meta & BCIlIIIds II 0 PIau 0 Meta & Boundsl

=1 II 11======'10 Plat Date 0 Minerai cert.IID Plat Date 0 Minerai cert.IID Plat Date 0 MInerai cert.1

S/MI/MIC/EX II S/MI/MIC/EX II S/MI/MIC/EX

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)

Parcel Number

APPENDIX 3

Information Application Sequence Number Application Sheet Count

Services 1 I I ICorporationof SoJkalchl/wan

Transform Number

Page 1 01' 2

III IIUI 1111111111HGlWNSET ....

Application forMineral Ownership

Register Setup

1__-

Mineral Commodity

)

)

ISC-LTR-SOM0001-2001 04 18

Value

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InformationServicesge!e,,?!,,!!!on

Page 2 of 2

Application for MineralOwnership Register Setup

Instruction SheetPage 1 of 1

This Instruction Sheet provides information about the completion of the Application forMineral Ownership Register Setup for the Land Registry of Information ServicesCorporation of Saskatchewan. Questions should be directed by email [email protected] or toll free 1-866-ASK-ISC1 (1-866-275-4721).

Use the Application for Mineral Ownership Register Setup for a parcel of land that has or willundergo mineral commodity severance, creating one or more new titles. This application mustbe submitted together with the Application for Transfer (Part I: Surrender) &Application forTransfer (Part 1/: Setup).

Completing the Application for Mineral Ownership Register Setup...

Application Sequence Number: Enter the numeric order in which this application should beprocessed within the packet.

Application Sheet Count: Enter the total number of sheets, whether single or double-sided, in.this application.

Enter the Parcel Number. This is required. The number can be found on the Title Print or it canbe found through a Land Registry Search.

Enter the Transform Number, ifapplicable. The number can be found on the TransformApproval Certificate issued by the Controller of Surveys.

Complete the Mineral Commodity name(s) in full. Enter the Value of the mineral commoditybased on the current fair market value.

Send completed Application for Mineral Ownership Register Setup together withApplication for Transfer( Part I: Surrender) and Application for Transfer (Part II: Setup)and: authorizations, if required; attachments, if any, with the Begin Attachment Sheet;and the appropriate Packet Cover Page, to:

By email: [email protected]

By fax: 306-798-1525OR

By mail: ISC e-Business Services Centre, 1301 _1 st Avenue, Regina, SK S4P 3V7

ISC-LTR-SOM0501-2001 0530

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APPENDIX 4 Page 1 of 2

1111111111111111111111RMNRLCERT

Information Application Sequence Number Application Sheet Count

Services I I I ICorporation ~of Sa.talchewan

Application forMineral

Certification

)

Only one Mineral Certification Application is allowed per packet.

Parcel to Certify

1111469529

Required for Registration Work

!2JVes DNa

ISC-LTR-AMC0001-2001 04 18

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InformationServicesCorporation01 Sa.lcalr:h.wan

Land Registry1301 - 1st AvenueRegina SK S4P3V7

Page 2 of 2

Toll Free: 1-866-275-4721Fax: (306) 798-1399E-mail: [email protected]: www.isc-online.ca

May 09, 2002

CHICOINE BILLESBERGERPOBOX 1608403 - 9TH AVEESTEVAN Saskatchewan S4A 2L7Canada

Re: Packet Verification Notice

Packet Number:Client Ref No:Client Number:Account Number:

10293768686-02-1-2100927863100010192

This is to give you notice that the applications included with Packet 102937686 have been successfully processed.Please review your packet to ensure all applications were completed accurately. Please advise us ofnecessarycorrections within 30 days.

App No Type Details

1 Application for Mineral Parcel #: 111469529Certification

Submission Fee, Title Print, and Title Output Fee

GSTChargedPST ChargedTotal Fees Charged

Your account statement will contain a detailed breakdown of fees charged.

Registrar

Amount

$0.00

$5.00

$0.00$0.00$5.00

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Chicoine Billesberger

From:Sent:

)To:Subject:

APPENDIX 5

Chicoine Billesberger [[email protected]]MondayI May 06, 2002 11:19 AMISC Land RegistryAuthorization to Transfer Uncertified Mineral Title

Page 1 of 4-

We request that an Authorization be prepared for the following mineral parcel:

Mineral Parcel # 111988862Title # 105198374Land: Lot 7, Block 8, Plan 10755 as described on Certificate of Title 99SE35975

These minerals were included with the surface on original Title 99SE35975. We would liketo transfer the mineral and surface parcels without obtaining mineral certification.

Please advise if an authorization will be provided, otherwise we will have to apply formineral certification.

Our fax number for delivery of the Authorization is: 306-634-8610.

Thanks,Gloria Chicoine

File no.: 301-02-1-4 Gunderman

Chicoine BillesbergerBarristers & SolicitorsEstevan, SK)hone: 306-634-5644

)

1

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Page 2 of 4

11111111111111111111RTTLTXFR

InformationServicesCorporation01 SO$katchewan

Application Sequence Number Application Sheet Count

I I I 3 1Application for

Transfer(Single Title)

Section A - New Owner(s) with Client Number(s)

Please make sure Authorizations are included.

Existing Title Number (if known) OR Application Sequence Number

1105198374 I INew Owners:

o Single Owner 0 Joint Tenants 0 Joint Tenants with no survivorship

For each new owner complete one of Section A or B (Corporation must complete Section A)

Note: Use Client Application form to amend Client Information.Do NOT include in Packet.

Client Number(s) Name OR Client Name (First, Second, Third and Last)

I IM526TI7 I_D~OO_g_~_S_D_W_i_gh_t_G_U_n_~_~~a_n~~~~~~~~~~~~~~~~~~~~~~~~~~

Section B - New Owner(s) without Client Number(s) Note: Will not create Corporation Number(s)

Client Name: Last First Second Third Phone Number (include Area Code)

I 11---11 II II IClient Address City Province/State Country (if outside Canada) Postal/Zip Code

IL- II_-'---_II__----JII IIL....---_IE-mail Address Fax Number (include Area Code)

I II IClient Name: Last First Second Third Phone Number (include Area Code)

1.-----11.-----11--11,-----,11 IClient Address City P--,r-,-o--,vi--,n_ce--,/-,-S--,ta--,t_e~~_ Country (if outside Canada) Postal/Zip Code1,=..:=.;::.:...=.:.=.:.---11--'-----11 11 11 IE-mail Address Fax Number (include Area Code)

I II INew Title Value 1_$_1_oo_.0_0__---' ---' (New Title Value represents this title's share in the parcel)

BUT subject to Saskatchewan Writ Registry writ or maintenance order numbers

I I I I I~ No Conditions OR

I

Conditional Registration Date and Time

(DD-MMM-VYYYHH: MM: SS.NNN)

IOR D Free and Clear

I

ISC-LTR-STA0001-2002 0219 (Complete an Additional Title Owners form if required)

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-_._- .......--------

Authorization 2

LlU'U CI\.V..J.D~.J. ul\.U CL

Page 3 of 4

)InformationServices~ere,c:.'E!!on

Authorization

I am the registered owner or the agent acting on behalfof the registered owner ofan uncertified mineral title.

The parcel munbcr for this title is 1Jl988862

I have been advised that, because the uncertified mineral tide had been converted from certificate of title number998£35975 that included both the mineral and surface layers I may proceed with application for registration withoutcertification of the mineral titles. J recognize in these circumstances the mineral title will remain UDcertitled.

I hereby authorize the registration work "ithout mineral certification.

Dated at Estevan • Saskatchewan, this 1 Othday of_--=Ma=.y-.__, 20-0-2

Authorization

GA. CHICOINE:Solicitor and Aqentfor Donald Gunderman

Pursuant to section 102 of The Land Titles Act. 2000

I. Linda Hjorth, Supervisor, Mineral Certification

authorize the registration ofwork related to mineral parcel 111988862

The uncertified mineral title for the parcel had been converted from a certificate of title that included both themineral and surface layers.

Notice: This authorization must be included a3 an additional authorization behind a .. "'llllio,,/i~"""

behind a Transfer (Single Title). -----

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Page 4 of 4

InformationServices~f?[e,t?!.~!!on

Transfer Authorization(Single TitlE

Authorization

DONALD GUNDERMANI, ~~--::~~-~-=.-:,._,___..,...,...._..."..__----

Name (First, Second, Third and Last), as

Position (if Corporation)

for -=-_~---:'-:--__::':_:::_-~~----Corporation Name (if Corporation)

authorize the transfer of Title Numbe...r _1_05_1_9_83_7_4 _

or Aoolication Seauence Number to:DOUGLAS DWIGHT GUNDERMAN, of 41 Allan Close, Red Deer, Alberta T4R 1M

01105/2002Date (DD!MMIYYYY)

o Check if Witness is Lawyer in and for the province of SaskatchewanGuy A. Chicoine

Lawyer Name

Affidavit of Execution (If witness other than Lawyer)

1. of make oath and say that:Witness Name Location

I personally know ---::..,....- who is

OR -~~I have satisfied myself that _______::::-:----:' is

Signatorthe person named in this document and whose name is subscribed to it and I was personally present when it was signed.

1.

2. The said ______--:-: is in my belief the full age of eighteen years.Name

Swom before me at on __~ _Location Date (DDIMMIYYYY)

A Commissioner for Oaths in and for Saskatchewan! Witness SignatureNotary Public OR Other person authorized to take Oaths

(specify)My commission/appointment expires __~ _OR Being a Solicitor Date (DDIMMIYYYY)

Affidavit Verifying Corporate Signing Authority (if no corporate seal)

I. ~------_ of ---:'_~------make oath and say that:Name Location

named in this document.I am an officer of -:-_--.---:-:-- _Corporation Name

2. I am authorized by the corporation to execute the document without affixing a corporate seal.

1.

Swom before me at on _

Location Date (DDIMMIYYYY)

A Commissioner for Oaths in and for Saskatchewan! Corporate Officer SignatureNotary Public OR Other person authorized to take Oaths

My commission/appointment expires __~ _OR Being a Solicitor Date (DDIMMIYYYY)

(specify)

ISC-LTR-AFTOOO1·2002 01 21