Who owns the German subsurface? Ownership and sustainable governance of the subsurface in Germany

Abstract

AbstractIn 1980, the Federal Mining Act was introduced to govern the use of the German subsurface. By paying royalties, companies can get permission to exploit resources. Yet, there is no official report breaking down the payments for hydrocarbons and lignite, in particular regarding the effectively levied fees. Hence, the objective of this study is to provide an overview of the ownership and paid royalties, and to discuss the sustainable use and management of the German subsurface in the face of ecological, social, and economic impacts of resource exploitation. Our analysis shows that the subsurface is partly state- and partly company-owned. Lignite is almost exclusively privately owned by two companies. In contrast, hydrocarbons are predominantly state-owned. In 2017, on average 13% was paid in royalties for gas and 11% for petroleum. These royalties have minor impact on state budgets. For instance, in the concerned state of Lower Saxony, the levies amount to 189 million € or 0.6% of the state budget. Thus, the state income from royalties is low. However, local communities and property owners have no financial benefits. Finally, to obtain a more sustainable use of subsurface, the current Federal Mining Act must be adapted to account for environmental and social impacts.