Canada Oil and Gas Land Regulations (C.R.C., c. 1518)

Entry on Patented Lands

95 Where the surface rights to the whole or any part of the Canada lands described in a permit or oil and gas lease have been granted by Her Majesty under letters patent or sold under an agreement for sale, the permittee or lessee shall not enter upon the lands that have been so disposed of unless he has obtained

• (a) the consent of the owner of the surface rights;

• (b) the consent of the occupier of the lands; or

• (c) an order for entry from the arbitrator.

Arbitration

• 96 (1) A licensee, permittee or lessee who has not been able to obtain the consent to enter referred to in section 26, 94 or 95 may apply to an arbitrator for an order permitting entry on to those lands and fixing the compensation therefor.

• (2) Ten days notice of the application referred to in subsection (1) shall be given by the applicant to the owner, occupier or lessee as may be required by section 26, 94 or 95.

97 The magistrate of the district in which the lands mentioned in the application lie shall, upon receipt of the application referred to in section 96, become the arbitrator for determining the compensation and permitting entry on to the lands.

• 98 (1) The arbitrator shall fix a date for the hearing and may require the operator to give notice of the hearing in such manner and to such persons as the arbitrator may direct.

• (2) The arbitrator shall determine the compensation to be paid or awarded and make such order as he deems fit, including the disposition of costs.

99 Where an applicant posts with the arbitrator a bond, in an amount satisfactory to the arbitrator, the arbitrator shall thereupon make an interim order permitting the applicant to enter upon and use the lands.

Appeal From Arbitrator

100 Either party, within one month after the arbitrator has made an order pursuant to section 98, may appeal from the order on any question of the law or fact, or upon other ground of objection to the superior court for the district in which the land is located.

101 The superior court may set aside, confirm or vary the order or remit it to the arbitrator for reconsideration with such directions as it deems proper.

102 Upon such an appeal, the practice and proceedings shall be as nearly as possible the same as upon an appeal from the decision of an inferior court to the superior court, subject to any rules or orders from time to time made by the superior court in respect of such an appeal.

103 The order of the superior court is final and no appeal lies from any order made by the superior court.

Enforcement of Order

• 104 (1) Where any resistance or forcible opposition is made by any person to enforcement of any order or interim order made pursuant to section 98, 99 or 101, the magistrate or judge may issue his warrant to the sheriff of the district, or to a bailiff, to put down such resistance or opposition.

• (2) Every licensee, permittee or lessee shall comply promptly with any order made pursuant to section 98 or 101.

Reports

• 105 (1) Every lessee shall, within 60 days after

  • (a) the third, sixth, ninth, twelfth, fifteenth and eighteenth anniversaries of the date on which the lease was granted or renewed, and

  • (b) the expiration, cancellation, surrender or renewal of the lease,

  forward to the Chief, in triplicate, copies of all reports, photographs, maps and data referred to in section 53.

• (2) When the information referred to in this section has been sent by the lessee to the Chief pursuant to section 28, 44 or 53, the lessee is not required to send that same information to the Chief pursuant to this section.

Information to be Confidential

• 106 (1) Except as provided in this section, the information furnished under these Regulations shall not be released.

• (2) Information furnished pursuant to paragraph 28(a) or (b) may be released at any time.

• (3) Information submitted by a permittee or lessee concerning a development well may be released 30 days after the completion, suspension or abandonment of that well.

• (4) Information submitted by a permittee or lessee concerning an exploratory well may be released two years after the completion, suspension or abandonment of that well.

• (5) Information submitted by a permittee or lessee concerning a surface geological or photogeological survey and factual information obtained from a magnetometer, gravity, seismic or other survey may, in the discretion of the Minister, be released

  • (a) two years after the cancellation, surrender or expiry of

    • (i) the permit of the area on which the work was done, or

    • (ii) all oil and gas leases granted pursuant to section 54 within the permit area on which the work was done,

  whichever is the later; or

  • (b) two years after the cancellation, surrender or expiry of the oil and gas lease of the area on which the work was done.

• (6) Information submitted by a licensee, permittee or lessee may, in the discretion of the Minister, be released at any time with the consent of the licensee, permittee or lessee.

• (7) General topographical information, legal surveys and elevations of well locations, the current depths of wells and the current status of wells may be released at any time.

Inspection

• 107 (1) The Minister, or a person authorized by him, may at any time enter upon a permit area or lease area and

  • (a) inspect all wells, technical records, plants and equipment;

  • (b) take samples and particulars; and

  • (c) carry out tests or examinations not detrimental to the operations of the permittee or lessee for determining the production of oil or gas that may be reasonable or proper.

• (2) The permittee or lessee shall give the Minister or person authorized by him such assistance as may be necessary.

Enforcement

• 108 (1) Where a permittee fails to make a deposit required by section 40, the Chief shall, unless he is required to give notice to the permittee by subsection 38(3), give written notice to the permittee informing him that if he does not make the deposit required by section 40 within 90 days of the date of the notice his permit will be deemed to be cancelled without further notice.

• (2) Where a permittee does not make a deposit in accordance with a notice given pursuant to subsection (1), his permit shall forthwith be deemed to be cancelled.

• (3) Where a lessee does not pay the rental required by these Regulations within 30 days after the date on which the rental is to be paid, the Minister shall give written notice to the lessee specifying the default and unless the default is remedied within 30 days of the date of the notice, the lease may be cancelled by the Minister.

• (4) Where a licensee, permittee or lessee violates any provision of these Regulations, other than those referred to in subsection (1) or (2), the Minister may give written notice to the licensee, permittee or lessee and unless the licensee, permittee or lessee remedies or prepares to remedy the violation, to the satisfaction of the Minister, within 90 days from the date of the notice the Minister may cancel the licence, permit or oil and gas lease.

Publication of Orders

109 Every order made pursuant to these Regulations shall be published in the Canada Gazette within 30 days after it is made.

Notice

110 For the purposes of sections 38 and 108, written notice shall be deemed to be given by the Chief or Minister, as the case may be, to a licensee, permittee or lessee when the notice is sent by registered mail to the licensee, permittee or lessee or his agent at his address on record with the Department.

Transitional

• 111 (1) In this section, prior permit means a permit that was issued under the Territorial Oil and Gas Regulations prior to and was subsisting on September 23, 1957.

• (2) A prior permit shall continue in effect until the holder of the permit completes and files with the Chief a request in the form set out in Schedule III.

• (3) The Territorial Oil and Gas Regulations as they existed on September 23, 1957, continue to apply in respect of prior permits.

• (4) Upon the completion and filing of a request in the form set out in Schedule III, these Regulations shall, except as provided in section 112, apply to a prior permit.

• 112 (1) In this section, earlier permit means any permit issued before June 6, 1961, under the provisions of the Territorial Oil and Gas Regulations and includes a prior permit as defined in section 111 in respect of which a request has been completed and filed in accordance with section 111.

• (2) Subsection 54(2) of these Regulations does not apply to an oil and gas lease granted pursuant to an earlier permit.

• (3) Section 72 does not apply to the transfer of an oil and gas lease that

  • (a) is located within the area of an earlier permit; and

  • (b) either before or after June 6, 1961, has been or is granted to the holder of that earlier permit.

113 Subject to the provisions of sections 111 and 112 of these Regulations, all licences, permits and oil and gas leases issued or granted under the provisions of

• (a) the Territorial Oil and Gas Regulations, or

• (b) the Canada Oil and Gas Regulations,

and subsisting on June 6, 1961, shall be deemed to have been issued or granted under these Regulations.

PART IIOption

114 On August 3, 1977,

• (a) any permittee whose permit is valid and subsisting and

  • (i) who has applied for an oil and gas lease pursuant to section 54 and has not withdrawn that application, or

  • (ii) whose permit has been renewed six times and does not, or has ceased to, qualify for an extension under section 39,

• (b) any permittee whose permit has expired and who before the expiration thereof, applied for an oil and gas lease pursuant to section 54, and has not withdrawn that application, and

• (c) any permittee whose permit was renewed prior to August 3, 1977, pursuant to section 40, as that section then read,

shall have the additional rights provided in sections 115 to 117 according as they apply to his case.

• 115 (1) Any person who on August 3, 1977, is a permittee described in subparagraph 114(a)(i) and has not been granted an oil or gas lease may, at his option instead of maintaining his application for a lease under section 54, within 90 days after the next anniversary date of his permit, withdraw his application for an oil and gas lease.

• (2) Where a person withdraws his application for an oil and gas lease pursuant to subsection (1), he shall, after surrendering in writing his right to receive the oil and gas lease,

  • (a) be entitled to be repaid any sums he paid as rental and to revert to holding the land under his permit, at the point in the term thereof that would have been reached at that time if the original term had expired and any necessary renewals under section 38 had been applied for and issued; and

  • (b) during the first year after the anniversary date of his permit following August 3, 1977, not be required to meet work obligations exceeding $0.5O per acre.

• 116 (1) Any person who, on August 3, 1977, is a permittee described in paragraph 114(b) and has not been granted an oil and gas lease may, at his option, instead of maintaining his application for a lease under section 54, within 90 days after the day that would have been the next anniversary date of his permit if it had not expired, either

  • (a) withdraw his application for an oil and gas lease and surrender in writing his right to receive the oil and gas lease, whereupon he shall be entitled to be repaid any sums he paid as rental; or

  • (b) withdraw his application for an oil and gas lease and apply instead for a special renewal permit, whereupon he shall be entitled to be repaid any sums he paid as rental except that sum tendered with the lease application in respect of the first year thereof, and the Minister may grant to that person a special renewal permit for such term and subject to such conditions, including the payment of deposits, as the Minister may determine.

• (2) Notwithstanding anything in this section, where a person who applies for a special renewal permit pursuant to paragraph (1)(b) and the Minister have not agreed on the terms and conditions for the special renewal permit within 30 days after the expiry of the period within which Petro-Canada Limited is required to give the notice specified in subsection 121(6) or within 30 days after Petro-Canada Limited gives any such notice, whichever occurs first, that person shall for 30 days thereafter have the right to reinstate his application for an oil and gas lease under section 54 as if it had not been withdrawn and he were still a permittee, whereupon he shall be entitled to be repaid any sums he paid as rental except that sum tendered with the lease application in respect of the first year thereof, and that sum shall be deemed to satisfy all rental obligations under that lease up to the first anniversary date thereof following August 3, 1977.

• (3) Where a person referred to in subsection (2) fails to exercise his right to reinstate his application for an oil and gas lease under section 54, the lands that he held pursuant to the permit referred to in paragraph 114(b) shall be deemed to be surrendered and shall become Crown reserve lands.

• 117 (1) Any person who, on August 3, 1977, is a permittee described in subparagraph 114(a)(ii) or paragraph 114(c) may, at his option, instead of applying for a lease under section 54, apply for a special renewal permit, whereupon the Minister may grant to that person a special renewal permit for such term and subject to such conditions, including the payment of deposits, as the Minister may determine.

• (2) Notwithstanding anything in this section, where a person who applies for a special renewal permit pursuant to subsection (1) and the Minister have not agreed on the terms and conditions for the special renewal permit within 30 days after the expiry of the period within which Petro-Canada Limited is required to give the notice specified in subsection 121(6) or within 30 days after Petro-Canada Limited gives any such notice, whichever occurs first, that person shall, for 30 days thereafter, have the right to apply for an oil and gas lease under section 54 as if he were still a permittee.

118 Unless the Minister otherwise specifies at the time a special renewal permit is granted pursuant to section 116 or 117, the provisions of these Regulations applicable to a permit shall apply to the special renewal permit so long as this Part is in force.

119 A person described in subparagraph 114(a)(i) or in paragraph 114(b) who decides not to exercise the options provided in section 115 or 116 and instead maintains his application for an oil and gas lease pursuant to section 54 shall be entitled, on the grant of any such lease, to be repaid any sums he paid as rental except that sum tendered with the lease application in respect of the first year thereof, and that sum shall be deemed to satisfy all rental obligations under that lease up to the first anniversary date thereof following August 3, 1977.

120 The term of any special renewal permit may be extended by the Minister on application therefor, so long as this Part is in force, by an additional period not exceeding one year, subject to such other conditions and deposits as the Minister may determine.

Petro-Canada Limited

• 121 (1) Where an application is made for a special renewal permit pursuant to section 116 or 117 for any Canada lands in respect of which no declaration of significant discovery is in force, Petro-Canada Limited shall, on giving notice under subsection (6) that it exercises its rights under this section, have the right to be granted

  • (a) where the Canadian participation rate of the applicant for the special renewal permit, determined pursuant to these Regulations is 25 per cent or more but not more than 35 per cent, a 10 per cent interest in the special renewal permit to be granted to the applicant; or

  • (b) where the Canadian participation rate of the applicant for the special renewal permit, determined pursuant to these Regulations, is less than 25 per cent, a 10 per cent interest in the permit plus an additional interest therein, not exceeding 15 per cent, of one per cent for every one per cent that the Canadian participation rate falls below 25 per cent.

• (2) If, at the time an application is made for a special renewal permit, any well is being drilled on or adjacent to the Canada lands in respect of which the application is made, the application and the determination of the rights of Petro-Canada Limited under this section shall be held in abeyance until the results of the drilling of the well have been assessed by the Minister or a person designated by the Minister.

• (3) For the purposes of subsection (1), any existing interest of Petro-Canada Limited, directly or indirectly, in the lands to be included in the special renewal permit referred to therein shall be included when determining the Canadian participation rate pursuant to these Regulations.

• (4) On receipt of an application for a special renewal permit for Canada lands in respect of which no declaration of a significant discovery is in force, the Minister or a person designated by the Minister shall, in any case where the Canadian participation rate, determined pursuant to these Regulations, is 35 per cent or less, forthwith give notice in writing of the application to Petro-Canada Limited specifying the area to which the application relates and the identity of the applicant.

• (5) The Minister or a person designated by the Minister shall, as soon as possible, give notice in writing to Petro-Canada Limited of the terms and conditions of the special renewal permit that have been agreed on.

• (6) Within 60 days from the date of a notice given under subsection (5), Petro-Canada Limited shall give notice in writing to the Minister or a person designated by the Minister stating either that it exercises its rights under this section and, if so, to what extent, or that it chooses not to exercise those rights.

• (7) Where Petro-Canada Limited fails to give the notice required under subsection (6) in the time provided therefor or gives notice under that subsection that it chooses not to exercise its rights under this section, those rights are terminated with respect to the lands for which the application for the special renewal permit was made.

• (8) Subject to subsection (9), this section applies once only in respect of any lands that are the subject of an application for a special renewal permit.

• (9) Where Petro-Canada Limited has no rights under this section with respect to a particular application for a special renewal permit under section 116 or 117 because a declaration of significant discovery is in force at the time the special renewal permit is about to be granted and where that declaration is subsequently revoked with respect to that special renewal permit, Petro-Canada Limited shall, notwithstanding anything in these Regulations, have the rights granted by this section at the first time after such revocation that an application is made for renewal of the special renewal permit if at the time the renewal is about to be granted no other applicable declaration of a significant discovery is in force.