Mines and Minerals Overview David Towns, Partner Definitions Mine - - PowerPoint PPT Presentation

Mines and Minerals Overview

David Towns, Partner

Definitions

• “Mine” – an excavation in the earth for

extracting coal or other minerals

• “Minerals” - a solid, naturally occurring

inorganic substance; a substance obtained by mining

• BUT note the legal definition is not necessarily

the same…much depends on the circumstances in each case

Legal Definitions

• “Mine” – the strata or space containing a mineral.

Importantly, a “mine” is “land” for the purposes of the law

• “Mineral” - a substance of “exceptional use, value

and character” defined according to the mining, industrial and landowning vernacular in use at the relevant time: Coleman v Ibstock Brick Limited [2008] EWCA Civ 73. This won’t include gold or silver, coal

• r hydrocarbons

Coleman v Ibstock Brick Limited [2008]

• A Conveyance of land in 1921 reserved

“ironstone and other metals and minerals”

• Were brickshale and fireclay, with

economic potential, and ordinary clay reserved as “other…minerals”?

• Held: No. If it is unclear from the

instrument of reservation itself, the test is whether the substance in question was of exceptional use, value and character at the time of the reservation

Acts of Severance

• Most Common: Reservation

in conveyance (i.e. “…excepted and reserved to the Vendor all mines of sand, gravel, clay, stone and other minerals…”

• Manorial Right to minerals –

former copyhold land

• Inclosure Act and/or Award –

former manorial wastes and commons

Reservations in Conveyances

• Land is sold but subject to a reservation
• Specific substances reserved (sand, gravel,

clay, stone) are unequivocally in the

• wnership of the reserving party – not just the

substance but also the strata/space/land containing it (i.e. the “mine”)

• Where the reservation is of “mines and

minerals” or similar, the Coleman v Ibstock Brick tests apply

Reservations in Conveyances

• Working rights – rights of entry,

winning, working, removing, letting down surface – easements over the surface land

• Compensation – payable to

surface owner. Usually to be determined by agreement or by a defined mechanism

• Not usually an entitlement to

share in any royalty

Manorial Rights

• Links back to the feudal system of land
• wnership and management:

Manorial Rights

• Over time, feudal service was

replaced by the payment of rent in goods and/or money

• Peasants acquired more secure

rights to occupy from the Lord of the Manor

• The occupier’s rights were

evidenced by their name being on the manorial court rolls. They held a copy: Copyholder

• “Copyhold” as a form of tenure

developed

Manorial Rights

• Enfranchisement – the Lord of the

Manor could agree with the copyholder to sell them the freehold

• Copyhold Act 1852 – provided a

framework for enfranchisements and automatically reserved the Lord’s minerals interests, market and fair rights and sporting rights (if any)

• Copyhold Act 1894 – repeated the

framework but gave copyholders the right to require enfranchisement

Manorial Rights

• Law of Property Act 1922 – automatically abolished

all remaining copyhold tenure from 1 January 1926

• Manorial incidents were to be phased out subject to

the payment of compensation to the Lords

• Manorial rights (i.e. the Lord’s interests in the

minerals, markets and fairs and sporting rights) were preserved as manorial rights

• Protected as overriding interests – they bound

properties whether or not registered or known about

Land Registration Act 2002

• Abolished the overriding

interest status of manorial rights, from 13 October 2003

• Lords of the Manor had to

register a protective caution where the land is unregistered or a Unilateral Notice where it is registered

• Manorial rights would be

extinguished on the next transfer for value if not protected

Parliamentary Inclosure Process

• The Lord of the Manor owned the copyhold

lands, the demesne lands and the commons and waste land - freehold

• Demesne lands were held in-hand
• Commons and wastes were uncultivated open

spaces

• Commons were subject to the rights of residents

to graze animals, take stone, take peat etc

• 1600s – 1700s: Inclosure began. The idea was to

improve the agricultural productivity of land

• Late 1700s – 1845: Private Acts of Parliament

enabled Awards by Commissioners

• 1845 – General Inclosure Act enabled Awards

without their own Act

• The process normally extinguished common

rights and allotted land freehold to already wealthy landowners, and the Lord of the Manor…

Parliamentary Inclosure Process

• Acts/Awards sometimes list the

substances reserved or use generic terms, or a mixture of the two

• Usually contain detailed working

provisions and sometimes allow surface owners to take stone for use on the land, for example

• Often long forgotten – people

acquiring genuine Lordship titles today may unknowingly have acquired the minerals interests

• ver some very large areas (28,000

acre in one case!)

Registration

• Mines and minerals can be registered in their
• wn right at Land Registry with either (i)

Qualified Title or (ii) Absolute Title

• The process as is with any land registration.

There is no need to demonstrate that there are minerals present or what the minerals in question are

• Land Registry does not always notify the

surface land owner

Why Bother?

• Minerals being worked can be

valuable – protect assets

• Minerals owners are often Estates

and organisations with a long- term view – want certainty and comfort of registration

• Superficial geology – clay, sand,

gravel could be trespassed into by surface development – potential to release value – does the title include (legally) the actual substances there?

• General nuisance of 3rd party

rights to surface development – delays etc

Avoiding Problems

• When looking at sites for

development (or redevelopment) consider mines and minerals

• If not excluded on title, don’t

assume they are included

• If the owner is identifiable,

consider possibility of a deal

• If not, consider insurance –

numerous providers of indemnity policies but can be restricted to post-planning etc

Contact

David Towns

Partner Direct Line: 0191 211 7826 Email: david.towns@muckle-llp.com

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