Ministry of Energy and Mines
 Geothermal Rights Pamphlet

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Geothermal Resources Map
Geothermal Rights Pamphlet

What is a geothermal resource?

The Geothermal Resources Act defines a geothermal resource as the earth's natural heat and all substances that get added value from it.  It includes:

bulletsteam;
bulletwater;
bulletwater vapour; and,
bulletall substances dissolved in the steam, water or water vapour obtained from a well.

For the purpose of the Act, it does not include:

bulletwater at less than 80°C at the surface; or,
bullethydrocarbons.

What are some uses of geothermal resources or energy?

Geothermal resources can be used to generate electricity and for:

bulletresidential heating and cooling;
bulletgroundwater heat pumps
bulletgreenhouse heating
bulletindustrial processing
bulletaquaculture
bulletswimming pool heating; and,
bullethot spring spas.

Where are BC's geothermal resources located?

High temperature potential areas are mainly British Columbia's coastal mountains.  moderate or low-temperature areas are in the middle and south interior, northeast British Columbia and in a belt down the Rocky Mountains.   (Click on map to view these locations).

Has there been any exploration for geothermal resources in BC?

Yes.  While there are a number of potential geothermal locations, exploration projects have focused on the coastal mountains north of Vancouver and south of Terrace.

In 1975, BC Hydro drilled 18 test holes at Meager Mountain, 45 kilometres northwest of Pemberton.  This work was followed by three deep exploratory wells between 1980 and 1982.  Another deep exploratory well was completed by Pacific Geopower in July 1995.  To date, the Meager Mountain area is the most significant geothermal energy discovery in Canada.

South of the Meager Mountain area is Mount Cayley, where the federal government drilled five shallow wells in 1977 and found evidence of geothermal gradients similar to those at Meager Mountain.

Are surface hot springs a geothermal resource?

Not likely under the terms of the Act.  Most surface hot springs have a temperature less than 80°C at the surface and are therefore not considered a geothermal resource.  However, if the hotsprings have a temperature greater than 80°C at the surface, then they are a geothermal resource.

Who owns the provincial geothermal resources?

The Province owns all geothermal resources in British Columbia.  Surface property owners do not own underlying geothermal rights.

Who manages the geothermal resource rights?

The Ministry of Energy and Mines, Titles Division issues and administers rights and collects and accounts for the revenues associated with the rights.  The Titles Division is also the contact for exploration and drilling activities.

What system is used to manage the geothermal resource rights?

The system is very similar to the one used to manage petroleum and natural gas rights throughout Western Canada.

The provincial government makes agreements with the private sector to explore, develop and market geothermal energy.  These agreements convey rights to a specific area and have time limits, conditions and obligations.

Geothermal permits give the permit holder exclusive right to apply for authorization to drill wells within the permit's boundary.  Permits are for one year and provide for up to seven annual renewals.

Geothermal leases are for a 20-year term and can be renewed.  They are issued after a permittee drills a geothermal well within the permit area and submits a satisfactory development plan for the location.

Both permits and leases have exploration and/or development requirements and call for rent payments to the Province.  Leases also require royalty payments on geothermal resource production.

Does the permit or lease provide authorization to conduct geothermal exploration or development work?

No.  While permits or leases call for exploration or development work, the agreements do not include approval to conduct the work.  Each activity, such as a geophysical survey or drilling a well, must get specific approval from the Ministry of Energy and Mines.  These approvals are granted only after the applicant has satisfied all regulatory agencies' requirements and has addressed environment issues and public concerns.

How are geothermal rights acquired?

Rights are acquired through public competition.  A person wanting to acquire geothermal rights may request the Titles Division to make a geothermal permit available for competition.  The Titles Division makes a public call for bids and the best geothermal program is awarded the permit.

The competition process includes an inter-agency referral system where provincial agencies, local governments and First Nations have the opportunity to identify areas where access constraints may apply, and to include specific conditions in the permit.  This ensures that potential bidders are aware of environmental values and allows them to plan their exploration activities more effectively.

How do I go about developing a commercial hot spring spa?

While you do not need geothermal rights if the water is less than 80°C at the surface, you must check on water licensing requirements at the nearest regional office of the Ministry of Water, Land and Air Protection.

The regional water manager will inspect the site, assess water availability, determine the impacts on other licensees and environmental values, and consider provincial and local interests and those of potentially affected landowners.   The review process can take one year or longer.

If your proposal is on Crown land, you need tenure from Land and Water British Columbia Inc. to qualify for a water license.  Their website is located at:  http://lwbc.bc.ca/.

An application for Crown land tenure undergoes a similar review process, where the proposals' environmental, social and land use implications are considered.  The application is referred to other applicable government agencies, local governments and First Nations.

If a well needs to be drilled and the temperature of the water is expected to be above 80°C, approvals and authorizations will be required from the Titles Division.  The Ministry of Water, Land and Air Protection maintains an online inventory of ground water development, through the voluntary filing of well logs by the drillers and proponents are encouraged to submit this information if a well is drilled.

What permitting requirements apply to geophysical exploration or to drill a well?

You do not require geothermal rights or Crown land tenure for geophysical exploration.  However, you need a geophysical licence from the Ministry of Energy and Mines, Titles Division before you can apply to do geophysical work.

If you plan to drill a well, you require approvals and authorizations from the Ministry of Energy and Mines:

bulletif the well is 600 metres or less, or with a bore hole diameter of less than 100 millimetres, it is considered a test hole and you must submit an application for test hole authorization;
bulletif the well is deeper than 600 metres, and has a hole diameter of more than 100 millimetres, it is considered a well and you must submit an application for a well authorization.

You must acquire geothermal rights before drilling a well.  Geothermal rights are not required for drilling a test hole.

How are geothermal well drilling operations regulated?

The Geothermal Drilling and Production Regulation, available from Crown Publications, or online, sets out the requirements for well surface and subsurface locations, drilling safety, information gathering and reporting.

For more information or to obtain application forms, please contact:

Geothermal rights and authorizations for geophysical work, test holes or wells:

Titles Division
Ministry of Energy and Mines
PO Box 9326, Stn Prov Gov't
Victoria, BC  V8W 9N3
Phone:  (250) 952-0335

Land Tenure and Water Licences:

Land and Water British Columbia Inc.
5th Floor  609 Broughton St
PO Box 9475  Stn Prov Govt
Victoria  BC  Canada  V8W 9W6
Tel: (250) 952-6246   Fax: (250) 952-6237

 Last Updated August 23, 2006

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