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Gold/Mining/Energy : Solana Petroleum Corp -- Ignore unavailable to you. Want to Upgrade?

To: Mr. Oil who wrote (352)	11/12/1999 10:06:00 AM
From: Taff	Read Replies (2) \| Respond to of 1747

Morning Ray They are not talking about the ownership of 40 acres, but the ownership of the natural resources that lays under the 40 acres. Mineral claims can be owned by the original homesteader, the railroads (aka Pan Canadian) oil companies and individuals... The mineral claim under your own home could be owned by you, but in 99.9% of residential cases the municipality owns the minerals, you own 6 feet down or what ever the city gives you. In the case of Cal Canal the mineral reserves could have been owned by many people, companies, municipalities, or railroads. BKP landman would have knocked on every door in the area and offered the owner of the mineral resources a fixed or floating fee's aka royalties for the mineral resources owned by that individual or company. In Alberta, my sister in-law owns 1/32 of the original mineral claim on the old homestead of my wife's great grandfather. Also consider crown land that the province, state or federal governments own... each time a resource company comes in they either bid or negotiate the right to mine or drill into the reserve for "X" number of years. Also at the same time a time limit will also apply to the bid or purchase of a mineral claim, one year or 20 years depending on negotiations. Time limits are more in tune with governments and not individuals. Should an oil company drill beside a property, there could also be royalties paid to the owner of the mineral claims adjoining the drilled property as that producer is also producing (draining) the reserve under the property he does not own. Also royalties proportionately would also be paid to the government as a tax on the reserve. This law applies in Canada and possible some states. In California, the above paragraph does not apply, where in California, the first one in with the straw produces the most or all of it. "Right of Capture" is the rule there. HOW DID SOLANA GET 40 ACRES Well BKP's landman, didn't come to an agreement with the owner of the mineral rights (ABA)... Solana offered ABA, 1% more or 10% more I don't know... It would be like a land developer coming in a buying up a whole city block to put up a high rise... But old granny has lived there all her life and she doesn't want to sell or could sell her property to someone else.. Hope that helps Taff