Canada Petroleum Resources Act (R.S.C., 1985, c. 36 (2nd Supp.))

Marginal note:Negotiations for compensation

• 12.1 (1) The Minister may enter into negotiations with an interest owner, in respect of all or any portion of the frontier lands subject to the interest, for a determination of any compensation that may be granted to the interest owner for the surrender of the interest to Her Majesty in right of Canada, if

  • (a) the interest is located in a marine protected area that is designated under the Oceans Act or in an area of the sea that, in the opinion of the Minister of Fisheries and Oceans, may be designated as a marine protected area under that Act; and

  • (b) the Minister of Fisheries and Oceans recommends that the interest be cancelled to give effect to the purpose of the designation or proposed designation of the marine protected area under section 35 of the Oceans Act.

• Marginal note:Notice

  (2) For the purposes of subsection (1), the Minister shall send a notice to the interest owner informing the interest owner of the Minister’s intent to enter into negotiations with the interest owner within the period specified in the notice.

• Marginal note:Power to cancel

  (3) The Minister may, by order, cancel the interest in respect of all or any portion of the frontier lands, if

  • (a) the interest owner did not enter into negotiations with the Minister within the period specified in the notice sent to the interest owner;

  • (b) in the opinion of the Minister, the compensation to be granted to the interest owner for the surrender of the interest has not been determined during the negotiations within a reasonable time; or

  • (c) in the opinion of the Minister, the negotiations do not result in the surrender of the interest by the interest owner within a reasonable time even though the compensation to be granted to the interest owner has been determined during the negotiations.

• Marginal note:Amount of compensation

  (4) The Minister shall, in the order, specify the amount of the compensation to be granted to the interest owner in respect of the cancellation of the interest.

• Marginal note:Interest becomes reserve lands

  (5) If the interest referred to in subsection (1) is surrendered or cancelled in respect of all or any portion of the frontier lands, the lands or portions of lands that are subject to the interest become Crown reserve lands.

• Marginal note:Return of deposit

  (6) If the interest referred to in subsection (1) is surrendered or cancelled, any deposit balance with respect to the interest held by Her Majesty in right of Canada on behalf of the interest owner shall be returned to the interest owner, less any liability, either direct or by way of indemnity, owed by the interest owner to Her Majesty in right of Canada at the time of the surrender or cancellation.

Marginal note:Compensation — surrender

• 12.2 (1) If the interest owner surrenders an interest referred to in subsection 12.1(1), Her Majesty in right of Canada may grant any compensation that is determined by negotiations with the Minister.

• Marginal note:Compensation — cancellation

  (2) If the Minister cancels an interest referred to in subsection 12.1(1), Her Majesty in right of Canada may grant to the interest owner the compensation that is specified in an order made by the Minister under subsection 12.1(3), subject to section 106 in respect of the amount of that compensation.

• Marginal note:No compensation

  (3) A person shall not have any right to claim or receive any compensation, damages, indemnity or other form of relief from Her Majesty in right of Canada or from any servant or agent or mandatary of Her Majesty in right of Canada for any acquired, vested, future or potential right or entitlement that is affected by a surrender or cancellation of an interest referred to in subsection 12.1(1), other than compensation that may be granted to an interest owner under this section.

PART IIGeneral Rules Relating to Issuance of Interests

Authority to Issue Interests

Marginal note:Authority to issue interests

• 13 (1) The Minister may issue interests in respect of any frontier lands in accordance with this Act and the regulations.

• Marginal note:Application of interest may be limited

  (2) Subject to subsection (3), the application of any interest may be restricted to such geological formations and to such substances as may be specified in the interest.

• Marginal note:Non-retrospective effect of subsection (2)

  (3) Subsection (2) does not apply to any interest

  • (a) that is in force or in respect of which negotiations were completed before or on the coming into force of this section in relation to any frontier lands; or

  • (b) that immediately succeeds an interest referred to in paragraph (a) in relation to those lands where those lands were not Crown reserve lands on the expiration of the interest referred to in paragraph (a).

Issuance of Interests in Relation to Crown Reserve Lands

Marginal note:Calls for bids

• 14 (1) Subject to section 17, the Minister shall not issue an interest in relation to Crown reserve lands unless

  • (a) prior thereto, the Minister has made a call for bids in relation to those Crown reserve lands by publishing a notice in accordance with this section and section 19; and

  • (b) the interest is issued to the person who submitted, in response to the call, the bid selected by the Minister in accordance with subsection 15(1).

• Marginal note:Requests for postings of frontier lands

  (2) Any request received by the Minister to make a call for bids in relation to particular frontier lands shall be considered by the Minister in selecting the frontier lands to be specified in a call for bids.

• Marginal note:Contents of call

  (3) A call for bids shall specify

  • (a) the interest to be issued and the frontier lands to which the interest is to apply;

  • (b) where applicable, the geological formations and substances to which the interest is to apply;

  • (c) the other terms and conditions subject to which the interest is to be issued;

  • (d) any terms and conditions that a bid must satisfy to be considered by the Minister;

  • (e) the form and manner in which a bid is to be submitted;

  • (f) subject to subsection (4), the closing date for the submission of bids; and

  • (g) the sole criterion that the Minister will apply in assessing bids submitted in response to the call.

• Marginal note:Time of publishing call

  (4) Unless otherwise prescribed, a call for bids shall be published at least one hundred and twenty days before the closing date for the submission of bids specified in the call.

Marginal note:Selection of bid

• 15 (1) A bid submitted in response to a call for bids shall not be selected unless

  • (a) the bid satisfies the terms and conditions and is submitted in the form and manner specified in the call; and

  • (b) the selection is made on the basis of the criterion specified in the call.

• Marginal note:Publication of bid selected

  (2) Where the Minister selects a bid submitted in response to a call for bids, the Minister shall publish a notice in accordance with section 19 setting out the terms and conditions of that bid.

• Marginal note:Interest to be consistent with bid

  (3) Where an interest is to be issued as a result of a call for bids, the terms and conditions of the interest shall be substantially consistent with any terms and conditions in respect of the interest specified in the call.

• Marginal note:Publication of terms and conditions of interest

  (4) The Minister shall publish a notice in accordance with section 19 setting out the terms and conditions of any interest issued as a result of a call for bids as soon as practicable after the issuance thereof.

Marginal note:Issuance of interest not required

• 16 (1) The Minister is not required to issue an interest as a result of a call for bids.

• Marginal note:New call required

  (2) Subject to section 17, where the Minister has not issued an interest with respect to a particular portion of the frontier lands specified in a call for bids within six months after the closing date specified in the call for the submission of bids, the Minister shall, before issuing an interest in relation to that portion of the frontier lands, make a new call for bids.

Marginal note:Exception to call for bids

• 17 (1) The Minister may issue an interest, in relation to any Crown reserve lands, without making a call for bids where

  • (a) the frontier lands to which the interest is to apply have, through error or inadvertence, become Crown reserve lands and the interest owner who last held an interest in relation to such lands has, within one year after the time they so became Crown reserve lands, requested the Minister to issue an interest; or

  • (b) the Minister is issuing the interest to an interest owner in exchange for the surrender by the interest owner, at the request of the Minister, of any other interest or a share in any other interest, in relation to all or any portion of the frontier lands subject to that other interest.

• Marginal note:Notice

  (2) Where the Minister proposes to issue an interest under subsection (1), he shall, not later than ninety days before issuing the interest, publish a notice in accordance with section 19 setting out the terms and conditions of the proposed interest.

Marginal note:Interest not vitiated by failure to comply with call procedures

18 Where an interest has been issued, it is not vitiated by reason only of a failure to comply with any of the requirements set out in sections 14 to 17 respecting the form and content of, and time and manner of publishing, any notice required by those sections in relation to that interest.

Marginal note:Manner of publication of notices

19 Any notice required to be published by the Minister pursuant to subsection 14(1), 15(2) or (4), 17(2) or 25(2) shall be published in the Canada Gazette and in any other publication the Minister deems appropriate and, notwithstanding those subsections, may contain only a summary of the information required to be published and a statement that the full text thereof is available for inspection by any person on request made to the Minister.

Marginal note:Regulations

20 The Governor in Council may, for the purposes of section 14, make regulations of general application in relation to all frontier lands or any portion thereof, or in respect of any particular call for bids, prescribing the terms, conditions and criterion to be specified in a call for bids, the manner in which bids are to be submitted and requiring those terms and conditions and that criterion and manner to be specified in the call.

Benefits Plan

Marginal note:Benefits plan

21 No work or activity on any frontier lands that are subject to an interest shall be commenced until the Minister has approved, or waived the requirement of approval of, a benefits plan in respect of the work or activity pursuant to subsection 5.2(2) of the Canada Oil and Gas Operations Act.

PART IIIExploration

Exploration Licences

Marginal note:Rights under exploration licences

22 An exploration licence confers, with respect to the frontier lands to which the licence applies,

• (a) the right to explore for, and the exclusive right to drill and test for, petroleum;

• (b) the exclusive right to develop those frontier lands in order to produce petroleum; and

• (c) the exclusive right, subject to compliance with the other provisions of this Act, to obtain a production licence.

Marginal note:Shares

23 A share in an exploration licence may, subject to any requirements that may be prescribed, be held with respect to a portion only of any frontier lands subject to the exploration licence.

Marginal note:Terms and conditions

• 24 (1) An exploration licence shall contain such terms and conditions as may be prescribed and may contain any other terms and conditions, not inconsistent with this Act or the regulations, as may be agreed on by the Minister and the interest owner of the licence.

• Marginal note:Regulations

  (2) The Governor in Council may make regulations prescribing terms and conditions required to be included in exploration licences issued in relation to all frontier lands or any portion thereof.