Open AccessThe Rule of Capture: Its Current Status and Some Issues to Consider
Author(s) -
Cecilia A. Low
Publication year - 2009
Publication title -
alberta law review
Language(s) - English
Resource type - Journals
eISSN - 1925-8356
pISSN - 0002-4821
DOI - 10.29173/alr226
Subject(s) - legislation , jurisdiction , correlative , law and economics , current (fluid) , business , order (exchange) , action (physics) , law , oil and natural gas , fossil fuel , political science , natural resource economics , economics , engineering , finance , philosophy , linguistics , electrical engineering , waste management , physics , quantum mechanics
This article discusses the current status of the rule of capture in Canada. Briefly stated, if Party A digs for resources on their own land and captures oil or natural gas that have migrated from Party B’s lands, the rule of capture allows Party A to reap the benefits of their efforts as the inconvenience to the neighbour cannot support a cause of action. The author begins by examining the historical origins of the rule throughout the English common law, then examines the current status of the rule by analyzing various legislation and regulations dealing with capture in several Canadian jurisdictions. Due to the large amount of economic and physical waste created by the race to drill numerous wells in order to capture resources as quickly as possible current Canadian legislation has somewhat modified the rule of capture and has created correlative rights, varying from jurisdiction to jurisdiction. Correlative rights create a more equitable solution to allow each owner the opportunity to share in oil or gas from a single pool extending under their properties.