Territorial Coal Regulations (C.R.C., c. 1522)

21 A person who has been granted a lease for a location and who has paid all amounts due the Crown in respect of the area under lease including amounts due for rent or royalty,

• (a) to the date of consent to the assignment by the Minister pursuant to section 16, may assign the lease; or

• (b) to the date the Minister is notified in writing of the proposed abandonment, may abandon the lease.

• 22 (1) Where a lessee holds a lease of a location acquired by assignment or otherwise under the provisions of these Regulations, on land situated more than 10 miles from a railway when the lease was issued, and where the lessee can show that he has expended in actual prospecting and developing operations on such location by recognized methods during any year, prior to railway communication with any such location having been established, an amount equal to or in excess of the prescribed yearly rental of such location, the Minister, upon proof satisfactory to him that such expenditure was incurred for the purpose and in the manner specified, may waive payment of the rental for the year of the term during which such expenditure may be shown to have been incurred, or in case the rental has already been paid, he may apply such payment or such portion thereof as to him seems reasonable on account of future payments of the rental of any such location, such expenditure, however, shall not be accepted as rental for a total of more than five years during the term of any lease.

• (2) Where a lessee holds leases on two or more adjoining locations, any amount expended on actual prospecting and developing operations on one or more of such locations, not otherwise applied in respect of rental, may, with the approval of the Minister, be applied against rental due on any other such location, to the same extent as if such operations had been performed on such other location.

Application for Permit

• 23 (1) A person may apply for a permit by filing with the recorder an application in Form 2 of the schedule.

• (2) Subject to section 24, each application for a permit shall be accompanied by,

  • (a) a fee of $1;

  • (b) a payment of estimated royalty on the quantity of coal to be mined under the permit; and

  • (c) a sketch of the location.

• 24 (1) Where a recorder is satisfied that an applicant for a permit has complied with the regulations respecting staking of the location and that the permit should be issued, he shall issue a permit to the applicant in Form 3 of the schedule.

• (2) A permit issued to

  • (a) a department of the Government of Canada,

  • (b) a municipal district, a local improvement district or a municipality, or

  • (c) an educational, religious or charitable institution,

  shall be issued free of charge and shall authorize the applicant to mine a quantity of coal not exceeding 100 tons of 2,000 pounds each for the applicant’s own use, without payment of any royalty.

25 Subject to these Regulations, a permittee is entitled

• (a) to enter upon the surface of the location covered by his permit, or such portion thereof and to such extent as the Minister may consider necessary for efficient coal mining and for no other purpose; and

• (b) to mine the quantity of coal set out in his permit subject to payment of a royalty on the merchantable output of the mine of $0.25 per ton of 2,000 pounds or such other royalty as may be fixed from time to time by the Minister with the approval of the Governor in Council.

• 26 (1) A permit expires upon March 31st next following the date of issue, and within one month thereafter the permittee shall furnish the recorder with a statement of the amount of coal taken under such permit in Form 4 of the schedule.

• (2) Where the amount of coal taken under the permit is less than that authorized by the permit, any excess royalty shall be refunded to the permittee.

27 Where a permittee wishes to obtain a further permit covering the same location for the ensuing year, he may at any time prior to expiry of his current permit, apply to the recorder for a further permit, and where satisfied that the permittee has complied with all applicable provisions of these Regulations and of his current permit, the recorder may, upon receipt of the required fee and estimated royalty, if any, issue a further permit without requiring such permittee to restake such location.

• 28 (1) An agent of territorial lands or a member of the Royal Canadian Mounted Police stationed in the area may, where it appears to him that the operations of any permittee are being carried on in an unsafe or improper manner, direct that such operations be suspended forthwith until such time as he is satisfied that such operations can be carried on in a satisfactory manner.

• (2) Every suspension made under subsection (1) shall be reported immediately to the Chief.

29 No person shall apply for, or hold, at one time, more than one location under permit.

30 The boundaries beneath the surface of a location shall be the vertical planes or lines in which their surface boundaries lie.

31 A recorder or other person designated by him may enter upon any land under lease or permit or the workings thereon, examine all records and books of account of the lessee or operator of such location, and make such other examination as may be deemed necessary.

32 Where default is made in payment of royalty or in furnishing statements or returns required by these Regulations and the default continues for 30 days after notice demanding payment has been posted at the mine or conspicuously on the property in respect of which it is demanded or sent to the lessee or the permittee by registered mail to his last recorded address, the lease or permit may be cancelled.

33 Where the Minister is of the opinion that a lessee or permittee has defrauded or attempted to defraud the Crown by withholding the royalty or any part thereof or has made false statements in any return or statement furnished by him, the Minister may cancel the lease or permit.

Indians and Eskimos

34 In isolated portions of the Northwest Territories, Indians and Eskimos who apply for permission to mine small quantities of coal may be granted permission so to do by an agent of territorial lands or a member of the Royal Canadian Mounted Police stationed in the area, free of charge, without being required to make application under the provisions of these Regulations.

Exploration Licence

35 The Chief may, upon receipt of an application in Form 5 of the schedule, issue a licence in Form 6 of the schedule, to explore for coal on territorial lands other than those mentioned in subsection 5(2).

36 The area of land in respect of which a licence may be issued shall be equal to one-quarter of the area of the land shown on a mineral claim staking sheet and shall be described by reference to the geographical position of the quarter of such sheet.

37 Every application for a licence shall be accompanied by

• (a) a description of the land;

• (b) a fee of $10; and

• (c) a deposit in the amount required by subsection 39(1) to secure expenditures on exploration during the first year the licence is in force.

38 Unless terminated earlier, a licence is in force for three years commencing on the day of the application.

• 39 (1) Subject to subsection (4), prior to commencement of each year in which a licence is in force, the licensee shall deposit with the Chief for each acre of land in respect of which his licence was issued

  • (a) $0.05 in respect of the first year;

  • (b) $0.10 in respect of the second year; and

  • (c) $0.20 in respect of the third year.

• (2) The deposit referred to in subsection (1) may be made in cash by means of an approved note or in bonds guaranteed by the Government of Canada or of a province.

• (3) Subject to subsections (4) and (5), during each year in respect of which a deposit has been made pursuant to subsection (1), a licensee shall spend on exploration for coal on the land for which his licence was issued the amount of money deposited in respect of that year with the Chief.

• (4) Where in any one year a licensee spends more money on exploration than that required by subsection (3), the amount by which such expenditures exceed the required expenditures is deemed to have been spent in the subsequent year, and the deposit required by subsection (1) for that subsequent year is decreased by that amount.

• (5) Where in any one year a licensee spends less money on exploration than that required by subsection (3), the Chief may, for sufficient reasons and upon receipt of an application not later than the date on which the deposit mentioned in subsection (1) is payable, permit the licensee to spend during the subsequent year the amount by which the required expenditures exceed the actual expenditures.

• (6) In this section, “approved note” means a promissory note payable on demand that a chartered bank has agreed, in terms acceptable to the Chief, to honour on presentment for payment.

• (7) Notwithstanding anything in these Regulations, where a licensee through circumstances beyond the licensee’s control is prevented from, or delayed in, spending money on exploration as required by subsection (3), the Chief, or a person designated by the Chief, shall extend the period within which the money may be spent and the term of the licence, and make such further extensions as are necessary, to enable the licensee to spend the money on exploration for coal on the land for which the licence was issued.

• (8) Where a person has been issued a licence pursuant to section 35 (in this subsection referred to as the new licence) following the expiration of a licence issued to that person pursuant to that section (in this subsection referred to as the former licence) for the same area of land described in the new licence,

  • (a) any amount of money expended on exploration for coal on the land for which the former licence was issued during the currency of the former licence that exceeded, at the time the former licence expired, the expenditure required by subsection (3) in respect of that land is deemed to have been spent in the first year in which the new licence is in force, and the deposit required by subsection (1) for the first year is decreased by that amount; and

  • (b) where that person has, during the currency of the former licence, spent less money on exploration than the amount required to be spent by subsection (3), that person may, notwithstanding section 44, on submission to the Chief, not later than the date on which the deposit referred to in subsection (1) is payable, of

    • (i) an application,

    • (ii) the deposit referred to in subsection (1), and

    • (iii) a deposit equal to the amount by which the exploration expenditures required under the former licence exceed the actual expenditures under that licence,

    spend the amount referred to in subparagraph (iii), in addition to the amount required to be spent by subsection (3), during the first year in which the new licence is in force.

40 Within 90 days after the end of each year in which a licence is in force, the licensee shall submit to the Chief, in triplicate and in a form satisfactory to the Chief,

• (a) a statement of expenditures made for exploration,

• (b) a report on all exploration,

• (c) geological, geochemical or geophysical reports,

• (d) maps, and

• (e) assay reports,

in respect of the land for which the licence is issued.

41 At the end of any year, during the term of a licence, a licensee, upon application to the Chief, may relinquish his rights under that licence in respect of a portion or all of the land for which he holds a licence.

42 An application to relinquish rights under a licence in respect of land for which a licence has been issued shall be made in a form satisfactory to the Chief and shall be accompanied by a sketch and a description

• (a) of those lands or that portion of those lands that the licensee wishes to relinquish, and

• (b) of that portion of those lands, if any, that the licensee wishes to retain,

in such form as the Chief may require.

• 43 (1) Subject to subsection (2), where in any one year the amount of money spent by a licensee on exploration for coal in respect of land for which his licence was issued is equal to or greater than that required by subsection 39(3), upon receipt of the statement of expenditures referred to in section 40, the Chief shall return the deposit required by subsection 39(1) to the licensee.

• (2) Where under subsection 39(5) the Chief has permitted a licensee to spend money on exploration work in any one year applicable to the prior year of the term of the licence, upon receipt of the statement of expenditures referred to in section 40, the Chief shall return to the licensee that portion of the deposit or deposits required by subsection 39(1) that corresponds to the amount of money spent by the licensee on exploration work on the land for which the licence was issued and the balance of the deposit or deposits, if any, shall forfeit to Her Majesty in right of Canada.