20 (1) Every existing federal interest remains in effect on and after the transfer date until it expires or is cancelled, until it is surrendered by the holder of the interest or until otherwise agreed to by the holder of the interest and the territorial oil and gas minister.
Application of Yukon laws
(2) On and after the transfer date and subject to subsection (3), Yukon oil and gas laws apply in respect of every existing federal interest, except that
(a) rights under an existing federal interest, within the meaning of subsection (4), may not be diminished; and
(b) the term of an existing federal interest may not be reduced.
Cancellation or suspension
(3) An existing federal interest may be cancelled or rights under it suspended, in accordance with Yukon oil and gas laws, if the interest could have been cancelled or the rights suspended in like circumstances before the transfer date.
(4) For the purposes of subsection (2), rights under an existing federal interest are the following:
(d) in the case of a lease issued under the Canada Oil and Gas Land Regulations, C.R.C., c. 1518,
(i) the rights described in section 58 of those Regulations, as that section read on the transfer date, in respect of the lands described in the lease, and
(ii) a right to the reissuance of the lease, as provided by section 63 of those Regulations, as that section read on the transfer date.
Confirmation of interests by Yukon laws
(5) Yukon oil and gas laws must include provisions corresponding to the provisions of this section for as long as any existing federal interest remains in effect.”