Law:Canada Petroleum Resources Act

From Law Delta

Revision as of 04:39, 26 September 2011 by Admin (Talk | contribs)
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to: navigation, search


R.s.c., 1985, c. 36 (2nd Supp.)

An Act to regulate interests in petroleum in relation to frontier lands, to amend the Oil and Gas Production and Conservation Act and to repeal the Canada Oil and Gas Act

(1986, c. 45, assented to 18th November, 1986)

Contents

Short Title

Short title

1. This Act may be cited as the Canada Petroleum Resources Act.


Interpretation

Definitions

2. In this Act,

“call for bids”

« appel d’offres »

“call for bids” means a call for bids made in accordance with section 14;

“commercial discovery”

« découverte exploitable »

“commercial discovery” means a discovery of petroleum that has been demonstrated to contain petroleum reserves that justify the investment of capital and effort to bring the discovery to production;

“commercial discovery area”

« périmètre de découverte exploitable »

“commercial discovery area” means, in relation to a declaration of commercial discovery made pursuant to subsection 35(1) or (2), those frontier lands described in the declaration;

“Crown reserve lands”

« réserves de l’État »

“Crown reserve lands” means frontier lands in respect of which no interest is in force;

“former exploration agreement”

« ancien accord d’exploration »

“former exploration agreement” means an exploration agreement under the Canada Oil and Gas Land Regulations;

“former lease”

« ancienne concession »

“former lease” means an oil and gas lease under the Canada Oil and Gas Land Regulations;

“former permit”

« ancien permis »

“former permit” means an exploratory permit under the Canada Oil and Gas Land Regulations;

“former special renewal permit”

« ancien permis spécial de renouvellement »

“former special renewal permit” means a special renewal permit under the Canada Oil and Gas Land Regulations;

“frontier lands”

« terres domaniales »

class="Defini“frontier lands” means lands that belong to Her Majesty in right of Canada, or in respect of which Her Majesty in right of Canada has the right to dispose of or exploit the natural resources, and that are situated in

(a) the Northwest Territories, Nunavut or Sable Island, or

(b) submarine areas, not within a province, in the internal waters of Canada, the territorial sea of Canada or the continental shelf of Canada,

but does not include the adjoining area, as defined in section 2 of the Yukon Act;

“gas”

« gaz »

“gas” means natural gas and includes all substances, other than oil, that are produced in association with natural gas;

“holder” or “interest holder”

Version anglaise seulement“holder” or “interest holder” means, in respect of an interest or a share therein, the person indicated, in the register maintained pursuant to Part VIII, as the holder of the interest or the share;

“interest”

« titre »

“interest” means any former exploration agreement, former lease, former permit, former special renewal permit, exploration licence, production licence or significant discovery licence;

“interest owner”

Version anglaise seulement“interest owner” means the interest holder who holds an interest or the group of interest holders who hold all of the shares in an interest;

“Minister”

« ministre »

“Minister” means

(a) in relation to any lands in respect of which the Minister of Natural Resources has administrative responsibility for the natural resources therein, the Minister of Natural Resources, and

(b) in relation to any lands in respect of which the Minister of Indian Affairs and Northern Development has administrative responsibility for the natural resources therein, the Minister of Indian Affairs and Northern Development;

“oil”

« pétrole »

“oil” means

(a) crude oil, regardless of gravity, produced at a well head in liquid form, and

(b) any other hydrocarbons, except coal and gas, and, without limiting the generality of the foregoing, hydrocarbons that may be extracted or recovered from deposits of oil sand, bitumen, bituminous sand, oil shale or from any other types of deposits on the surface or subsurface or the seabed or its subsoil of any frontier lands;

“petroleum”

pan class="DefinedTermLink" lang="fr" xml:« hydrocarbures »

“petroleum” means oil or gas;

“prescribed”

Version anglaise seulement“prescribed” means

(a) in the case of a form or the information to be given on a form, prescribed by the Minister, and

(b) in any other case, prescribed by regulations made by the Governor in Council;

“share”

« fraction »

“share” means, with respect to an interest, an undivided share in the interest or a share in the interest held in accordance with section 23;

“significant discovery”

« découverte importante »

“significant discovery” means a discovery indicated by the first well on a geological feature that demonstrates by flow testing the existence of hydrocarbons in that feature and, having regard to geological and engineering factors, suggests the existence of an accumulation of hydrocarbons that has potential for sustained production;

“significant discovery area”

« périmètre de découverte importante »

“significant discovery area” means, in relation to a declaration of significant discovery made pursuant to subsection 28(1) or (2), those frontier lands described in the declaration.

R.S., 1985, c. 36 (2nd Supp.), s. 2; 1993, c. 28, s. 78; 1994, c. 41, s. 13; 1996, c. 31, s. 58; 1998, c. 5, s. 13, c. 15, s. 49.

Aboriginal rights

3. Nothing in this Act shall be construed so as to abrogate or derogate from any existing aboriginal or treaty rights of the aboriginal peoples of Canada under section 35 of the Constitution Act, 1982.


Part I. General

Manner of Giving Notices

Giving notice

4. Where a notice is required to be given under this Act or the regulations, it shall be given in such form and manner as may be prescribed and shall contain such information as may be prescribed.

R.S., 1985, c. 36 (2nd Supp.), s. 4; 1992, c. 1, s. 144(F).


Application of Act

Application

5. This Act applies to all frontier lands.


Her Majesty

Binding on Her Majesty

6. This Act is binding on Her Majesty in right of Canada or a province.


Designations and Appointments

Delegation

7. The Minister may designate any person to exercise the powers and perform the duties and functions under this Act that are specified in the designation and on that designation that person may exercise those powers and shall perform those duties and functions subject to such terms and conditions, if any, as are specified in the designation.

Advisory bodies

8. (1) The Minister may from time to time appoint and fix the terms of reference of such advisory bodies as the Minister considers appropriate to advise the Minister with respect to such matters relating to the administration or operation of this Act or the Canada Oil and Gas Operations Act as are referred to them by the Minister.

Remuneration

(2) The members of any advisory body appointed under subsection (1) may be paid for their services such remuneration and expenses as are fixed by the Governor in Council.

R.S., 1985, c. 36 (2nd Supp.), s. 8; 1992, c. 35, s. 34.

Appointment of representative

9. (1) Where an interest owner consists of two or more holders, those holders shall, in the manner prescribed, appoint one of their number to act as representative of the interest owner for the purposes of this Act, but the holders may, with the consent of the Minister, appoint different representatives for different purposes.

Designation of representative

(2) In the event that an interest owner consisting of two or more holders fails to appoint a representative for any of the purposes of this Act, the Minister may designate one of those holders as the representative of the interest owner for those purposes.

Acts or omissions of representative binding

(3) An interest owner is bound by the acts or omissions of the appointed or designated representative of that interest owner with respect to any matter to which the authority of the representative extends.

Duties of representative

(4) A representative of an interest owner appointed or designated under this section shall perform the duties in respect of the purposes for which he has been appointed or designated, and any operating agreement or other similar arrangement in force in respect of the relevant interest of that interest owner stands varied or amended to the extent necessary to give effect to this subsection.


General Rules Respecting Interests

No issuance of interests in respect of certain lands

10. (1) The Governor in Council may, by order, for such purposes and under such conditions as may be set out in the order, prohibit the issuance of interests in respect of such frontier lands as are specified in the order.

Presumption

(2) Where any frontier lands are, pursuant to the Territorial Lands Act, withdrawn from disposition or set apart and appropriated for any purposes and under any conditions, the issuance of interests in relation to such lands is deemed to be prohibited pursuant to subsection (1) for those purposes and under those conditions.

Surrender of interests

11. (1) An interest owner may, in the manner prescribed and subject to any requirements that may be prescribed respecting the minimum geographical area to which an interest may relate, surrender an interest in respect of all or any portion of the frontier lands subject to the interest.

Debts due to Her Majesty not affected

(2) Any liability of an interest owner or interest holder to Her Majesty in right of Canada, either direct or by way of indemnity, that exists at the time of any surrender under subsection (1) is not affected by the surrender.

Orders to prohibit activities in certain circumstances

12. (1) The Governor in Council may, in the case of

(a) a disagreement with any government concerning the location of an international boundary,

(b) an environmental or social problem of a serious nature, or

(c) dangerous or extreme weather conditions affecting the health or safety of people or the safety of equipment,

by order, prohibit any interest owner specified in the order from commencing or continuing any work or activity on the frontier lands or any portion thereof that are subject to the interest of that interest owner.

Suspension of requirements in relation to interest

(2) Where, by reason of an order made under subsection (1), any requirement in relation to an interest cannot be complied with while the order is in force, compliance with the requirement is suspended until the order is revoked.

Extension of term of interest

(3) Notwithstanding any other provision in this Act, the term of an interest that is subject to an order under subsection (1) and the period provided for compliance with any requirement in relation to the interest are extended for a period equal to the period that the order is in force.

Relieving authority not affected

(4) Nothing in this section affects the authority of the Minister to relieve a person from any requirement in relation to an interest or under this Act or the regulations.


Part Ii. General Rules Relating To Issuance Of Interests

Authority to Issue Interests

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.

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.

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

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).

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.

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.

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.

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.

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.

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.

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.

Issuance of interest not required

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

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.

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.

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.

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.

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.

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

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.

R.S., 1985, c. 36 (2nd Supp.), s. 21; 1992, c. 35, s. 35.


Part Iii. Exploration

Exploration Licences

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.

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.

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.

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.

Amendment of exploration licence

25. (1) The Minister and the interest owner of an exploration licence may, by agreement, amend any provision of the exploration licence in any manner not inconsistent with this Act or the regulations and, without limiting the generality of the foregoing, may, subject to subsection (2), amend the licence to include any other frontier lands.

Exception

(2) The Minister shall not amend an exploration licence to include frontier lands that, immediately prior to the inclusion, were Crown reserve lands unless the Minister would be able to issue an interest to that interest owner in relation to those lands under subsection 17(1) and a notice has been published in accordance with section 19 not later than ninety days before making the amendment, setting out the terms and conditions of the amendment.

Consolidation of exploration licences

(3) The Minister may, on the application of the interest owners of two or more exploration licences, consolidate those exploration licences into a single exploration licence, subject to any terms and conditions that may be agreed on by the Minister and those interest owners.

Effective date of exploration licence

26. (1) The effective date of an exploration licence is the date specified in the licence as the effective date thereof.

Non-renewable term of nine years

(2) Subject to subsection (3) and section 27, the term of an exploration licence shall not exceed nine years from the effective date of the licence and shall not be extended or renewed.

Exception

(3) Subject to subsection (5) and section 27, the term of an exploration licence entered into or in respect of which negotiations have been completed before December 20, 1985 may be renegotiated once only for a further term not exceeding four years and thereafter the term thereof shall not be renegotiated, extended or renewed.

Regulations prescribing areas

(4) The Governor in Council may make regulations prescribing areas in respect of which the Minister may make an order pursuant to subsection (5).

Extension of exploration licences in prescribed areas

(5) The Minister may, subject to such terms and conditions as the Minister deems appropriate, extend the term of an exploration licence in relation to any frontier lands within a prescribed area that has been renegotiated under subsection (3).

Crown reserve lands on expiration of licence

(6) On the expiration of an exploration licence, any frontier lands to which the exploration licence related and that are not subject to a production licence or a significant discovery licence become Crown reserve lands.

Continuation of exploration licence where drilling commenced

27. (1) Where, prior to the expiration of the term of an exploration licence, the drilling of any well has been commenced on any frontier lands to which the exploration licence applies, the exploration licence continues in force while the drilling of that well is being pursued diligently and for so long thereafter as may be necessary to determine the existence of a significant discovery based on the results of that well.

Deemed pursued diligently

(2) Where the drilling of a well referred to in subsection (1) is suspended by reason of dangerous or extreme weather conditions or mechanical or other technical problems encountered in the drilling of the well, the drilling of that well shall, for the purposes of subsection (1), be deemed to be being pursued diligently during the period of suspension.

Drilling of second well deemed commenced

(3) Where the drilling of a well referred to in subsection (1) cannot be completed by reason of mechanical or other technical problems and if, within ninety days after the cessation of drilling operations with respect to that well, or such longer period as the Minister determines, the drilling of another well is commenced on any frontier lands that were subject to the exploration licence, the drilling of that other well shall, for the purposes of subsection (1), be deemed to have commenced prior to the expiration of the term of the exploration licence.


Significant Discoveries

Application for declaration of significant discovery

28. (1) Where a significant discovery has been made on any frontier lands that are subject to an interest or a share therein held in accordance with section 23, the National Energy Board shall, on the application of the interest holder of the interest or the share made in the form and manner and containing such information as may be prescribed, make a written declaration of significant discovery in relation to those frontier lands in respect of which there are reasonable grounds to believe that the significant discovery may extend.

Declaration on initiative of National Energy Board

(2) Where a significant discovery has been made on any frontier lands, the National Energy Board may, by order, make a declaration of significant discovery in relation to those frontier lands in respect of which there are reasonable grounds to believe the significant discovery may extend.

Description of frontier lands subject to declaration

(3) A declaration made pursuant to subsection (1) or (2) shall describe the frontier lands to which the declaration applies.

Amendment or revocation of declaration

(4) Subject to subsection (5), where a declaration of significant discovery is made pursuant to subsection (1) or (2) and, based on the results of further drilling, there are reasonable grounds to believe that a discovery is not a significant discovery or that the frontier lands to which the significant discovery extends differ from the significant discovery area, the National Energy Board may, as appropriate in the circumstances,

(a) amend the declaration of significant discovery by increasing or decreasing the significant discovery area; or

(b) revoke the declaration.

Idem

(5) A declaration of significant discovery shall not be amended to decrease the significant discovery area or revoked earlier than

(a) in the case of a significant discovery area that is subject to a significant discovery licence issued pursuant to subsection 30(1), the date on which the exploration licence referred to in that subsection expires; and

(b) in the case of a significant discovery area that is subject to a significant discovery licence issued pursuant to subsection 30(2), three years after the effective date of the significant discovery licence.

Notice

(6) A copy of a declaration of significant discovery and of any amendment or revocation thereof made under this section in relation to any frontier lands subject to an interest shall be sent by registered mail to the interest owner of that interest.

Procedures

(7) The procedures described in section 28.2 of the National Energy Board Act apply to the making, amendment and revocation of a declaration under this section.

Delegation

(8) The National Energy Board may delegate any of its powers under this section to a member, officer or employee of the Board, who shall exercise the powers in accordance with the terms of the delegation.

R.S., 1985, c. 36 (2nd Supp.), s. 28; 1994, c. 10, s. 16.


Significant Discovery Licences

Rights under significant discovery licence

29. A significant discovery 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.

Significant discovery licence in relation to lands subject to exploration licences

30. (1) Where a declaration of significant discovery is in force and all or a portion of the significant discovery area is subject to an exploration licence or a share therein held in accordance with section 23, the Minister shall, on the application of the interest holder of the exploration licence or the share made in the form and manner and containing such information as may be prescribed, issue to the interest holder a significant discovery licence in respect of all portions of the significant discovery area that are subject to the exploration licence or the share.

Significant discovery licence in relation to Crown reserve lands

(2) Where a declaration of significant discovery is in force and the significant discovery area extends to Crown reserve lands, the Minister may, after making a call for bids in relation to those Crown reserve lands or any portion thereof and selecting a bid submitted in response to the call in accordance with subsection 15(1), issue a significant discovery licence to the person who submitted that bid in relation to the Crown reserve lands specified in the call.

Terms and conditions of significant discovery licence

(3) A significant discovery licence shall be in the form 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 significant discovery licence.

Reduction of lands subject to significant discovery licence

31. (1) Where a significant discovery area in relation to a declaration of significant discovery is decreased pursuant to an amendment made under subsection 28(4), any significant discovery licence that was issued on the basis of that declaration shall be amended by decreasing accordingly the frontier lands subject to that licence.

Increase in lands subject to significant discovery licence

(2) Where a significant discovery area in relation to a declaration of significant discovery is increased pursuant to an amendment made under subsection 28(4), any significant discovery licence that was issued on the basis of that declaration shall be amended to include all portions of the amended significant discovery area that are subject to any exploration licence held by the interest owner of that significant discovery licence at the time the significant discovery area is so increased.

Exploration licence ceases to have effect

32. (1) On the issuance of a significant discovery licence pursuant to subsection 30(1) with respect to a significant discovery area, any exploration licence ceases to have effect in relation to that significant discovery area.

Effective date of significant discovery licence

(2) The effective date of a significant discovery licence is the date of application for the licence.

Term of significant discovery licence

(3) Subject to subsection 42(1), a significant discovery licence continues in force, in relation to each portion of the frontier lands to which the licence applies, during such period as the declaration of significant discovery on the basis of which the licence was issued remains in force in relation to that portion.

Crown reserve lands on expiration of licence

(4) On the expiration of a significant discovery licence, any frontier lands to which the significant discovery licence related and that are not subject to a production licence become Crown reserve lands.


Drilling Orders

Drilling orders

33. (1) Subject to subsections (2) to (4), the Minister may, at any time after making a declaration of significant discovery, by order subject to section 106, require the interest owner of any interest in relation to any portion of the significant discovery area to drill a well on any portion of the significant discovery area that is subject to that interest, in accordance with such directions as may be set out in the order, and to commence the drilling within one year after the making of the order or within such longer period as the Minister specifies in the order.

Exception

(2) No order may be made under subsection (1) with respect to any interest owner who has completed a well on the relevant frontier lands within six months prior to the making of the order.

Condition

(3) No order may be made under subsection (1) within the three years immediately following the well termination date of the well indicating the relevant significant discovery.

Idem

(4) No order made under subsection (1) may require an interest owner to drill more than one well at a time on the relevant frontier lands.

Definition of “well termination date”

(5) For the purposes of subsection (3), “well termination date” means the date on which a well has been abandoned, completed or suspended in accordance with any applicable drilling regulations.

Information may be disclosed

34. (1) The Minister may, notwithstanding section 101, provide information or documentation relating to a significant discovery to any interest owner who requires such information or documentation to assist the interest owner in complying with an order made under subsection 33(1).

Idem

(2) An interest owner shall not disclose any information or documentation provided to that interest owner under subsection (1) except to the extent necessary to enable the interest owner to comply with an order made under subsection 33(1).


Part Iv. Production

Commercial Discoveries

Application for declaration of commercial discovery

35. (1) Where a commercial discovery has been made on any frontier lands that are subject to an interest or a share therein held in accordance with section 23, the National Energy Board shall, on the application of the interest holder of the interest or the share, made in the form and manner and containing such information as may be prescribed, make a written declaration of commercial discovery in relation to those frontier lands in respect of which there are reasonable grounds to believe that the commercial discovery may extend.

Declaration on initiative of National Energy Board

(2) Where a commercial discovery has been made on any frontier lands, the National Energy Board may, by order, make a declaration of commercial discovery in relation to those frontier lands in respect of which there are reasonable grounds to believe that the commercial discovery may extend.

Application of certain provisions

(3) Subsections 28(3), (4) and (5) apply, with such modifications as the circumstances require, with respect to a declaration made pursuant to subsection (1) or (2).

Procedures

(4) The procedures described in section 28.2 of the National Energy Board Act apply to the making, amendment or revocation of a declaration under this section.

Delegation

(5) The National Energy Board may delegate any of its powers under this section to a member, officer or employee of the Board, who shall exercise the powers in accordance with the terms of the delegation.

R.S., 1985, c. 36 (2nd Supp.), s. 35; 1994, c. 10, s. 17.


Development Orders

Notice of order to reduce term of interest

36. (1) The Minister may, at any time after making a declaration of commercial discovery, give notice to the interest owner of any interest in relation to any portion of the commercial discovery area where commercial production of petroleum has not commenced before that time stating that, after such period of not less than six months as may be specified in the notice, an order may be made reducing the term of that interest.

Opportunity for submissions

(2) During the period specified in a notice sent to an interest owner under subsection (1), the Minister shall provide a reasonable opportunity for the interest owner to make such submissions as the interest owner considers relevant to determining whether the Minister should make an order reducing the term of the relevant interest.

Order reducing term of interest

(3) Notwithstanding any other provision of this Act, where the Minister is of the opinion that it is in the public interest, he may, at any time not later than six months after the expiration of the period specified in a notice in respect of an interest sent under subsection (1), by order subject to section 106, reduce the term of the interest to three years after the date the order is made or such longer period as may be specified in the order.

All interests cease

(4) Notwithstanding any other provision of this Act but subject to subsections (5) and (6), where an order is made under subsection (3), any interest in respect of frontier lands within the area to which the interest that is the subject of the order applied on the date the order was made ceases to have effect at the end of the period specified in the order.

Order ceases to have effect where production commences

(5) Where commercial production of petroleum on any portion of the frontier lands referred to in subsection (4) commences before the expiration of the period specified in an order made under subsection (3) or the period extended pursuant to subsection (6), the order ceases to have effect and is deemed to have been vacated.

Extension of period

(6) The Minister may extend the period specified in an order made under subsection (3) or may revoke the order.


Issuance of Production Licences

Rights under production licence

37. (1) A production 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;

(c) the exclusive right to produce petroleum from those frontier lands; and

(d) title to the petroleum so produced.

Exception

(2) Notwithstanding subsection (1), the Minister may, subject to such terms and conditions as the Minister deems appropriate, authorize any interest holder of an interest or a share therein to produce petroleum on the frontier lands subject to the interest or share for use in the exploration or drilling for or development of petroleum on any frontier lands.

Issuance of production licence

38. (1) Subject to section 44, the Minister, on application made in the form and manner and containing such information as may be prescribed,

(a) shall issue a production licence to one interest owner, in respect of any one commercial discovery area or portion thereof that is subject to an exploration licence or a significant discovery licence held by that interest owner; and

(b) may, subject to such terms and conditions as may be agreed on by the Minister and the relevant interest owners, issue a production licence to

(i) one interest owner, in respect of two or more commercial discovery areas or portions thereof that are subject to an exploration licence or a significant discovery licence held by that interest owner, or

(ii) two or more interest owners, in respect of one or more commercial discovery areas or portions thereof that are subject to an exploration licence or a significant discovery licence held by any of those interest owners.

Production licence in relation to Crown reserve lands

(2) Where a declaration of commercial discovery is in force and the commercial discovery area extends to Crown reserve lands, the Minister may, after making a call for bids in relation to those Crown reserve lands or any portion thereof and selecting a bid submitted in response to the call in accordance with subsection 15(1), issue a production licence to the person who submitted that bid in relation to the Crown reserve lands specified in the call.

Terms and conditions of production licence

(3) A production licence shall be in the form prescribed and may contain any 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 production licence.

R.S., 1985, c. 36 (2nd Supp.), s. 38; 1993, c. 47, s. 1.

Consolidation of production licences

39. The Minister may, on the application of the interest owners of two or more production licences, consolidate those production licences into a single production licence, on such terms and conditions as may be agreed on by the Minister and those interest owners.

Reduction of lands subject to production licence

40. (1) Where a commercial discovery area in relation to a declaration of commercial discovery is decreased pursuant to an amendment made under subsections 28(4) and 35(3), any production licence that was issued on the basis of that declaration shall be amended by decreasing accordingly the frontier lands subject to that licence.

Increase in lands subject to production licence

(2) Where a commercial discovery area in relation to a declaration of commercial discovery is increased pursuant to an amendment made under subsections 28(4) and 35(3), any production licence that was issued on the basis of that declaration shall be amended to include all portions of the amended commercial discovery area that are subject to an exploration licence or a significant discovery licence held by the interest owner of that production licence at the time the commercial discovery area is so increased.

Term of production licence

41. (1) Subject to subsections (2) to (4), a production licence is effective from the date it is issued and shall be issued for a term of twenty-five years.

Idem

(2) Where a declaration of commercial discovery on the basis of which a production licence was issued is, pursuant to subsections 28(4) and 35(3), revoked or amended to exclude all portions of the commercial discovery area in relation to which the production licence was issued, the production licence ceases to be in force.

Automatic extension of term

(3) Where, on the expiration of the term of a production licence, petroleum is being produced commercially, the term is extended for such period thereafter during which commercial production of petroleum continues.

Discretionary extension of term

(4) The Minister may, by order, on such terms and conditions as may be specified in the order, extend the term of a production licence where

(a) commercial production of petroleum from the frontier lands subject to the licence ceases before or on the expiration of the twenty-five year term of the production licence and the Minister has reasonable grounds to believe that commercial production from those lands will recommence; or

(b) the Minister has reasonable grounds to believe that commercial production of petroleum from those lands will, at any time before or after the expiration of the term of the licence, cease during any period and thereafter recommence.

Lapsing of other interests

42. (1) On the issuance of a production licence, any interest in relation to the frontier lands in respect of which the production licence is issued held immediately prior to the issuance of the production licence ceases to have effect in relation to those frontier lands, but otherwise continues to have effect according to its terms and the provisions of this Act.

Lands become Crown reserve lands on expiration of term

(2) On the expiration of a production licence, the frontier lands in relation to which the production licence was issued become Crown reserve lands.


Subsurface Storage Licences

Licence for subsurface storage

43. (1) The Minister may, subject to any terms and conditions the Minister considers appropriate, issue a licence for the purpose of subsurface storage of petroleum or any other substance approved by the Minister in frontier lands at depths greater than twenty metres.

Prohibition

(2) No frontier lands shall be used for a purpose referred to in subsection (1) without a licence referred to therein.


Qualification for Production Licence

Qualification for production licence

44. No production licence or share in a production licence may be held by any person other than a corporation incorporated in Canada.

R.S., 1985, c. 36 (2nd Supp.), s. 44; 1993, c. 47, s. 2.


Part V

(Repealed, 1993, c. 47, s. 3)


Part Vi. Royalties

Interpretation

Definition of “assessment”

54. In this Part, “assessment” includes reassessment.


Payment of Royalties

Royalties

55. (1) There are hereby reserved to Her Majesty in right of Canada, and each holder of a share in a production licence is liable for and shall pay, in accordance with the regulations, such royalties as may be prescribed, at the rates prescribed, in respect of petroleum produced from frontier lands and in respect of the periods prescribed.

Payable in money or in kind

(2) The Minister may require all or part of any royalty payable under this Part to be paid in money or in kind in accordance with the regulations.

Reduction of royalties or exemptions

(3) The Governor in Council may, by order, authorize the reduction of, or the exemption from the payment of, any royalty payable under this Part for such periods, in such amounts and subject to such conditions as may be specified in the order.

Interest and penalties

56. Each holder of a share in a production licence liable for and required to pay royalty under this Part who is in default in accordance with the regulations in the payment of any amount payable under this Part on account of that royalty shall pay interest and penalties on such amounts in accordance with the regulations.

Time and manner of payment

57. Each holder of a share in a production licence liable for and required to pay royalties, penalties or interest under this Part shall make payments of or on account of those royalties, penalties or interest at the time and in the manner prescribed.


Returns and Retention of Records

Reports and returns

58. (1) Each holder of a share in a production licence shall file, at the time and in the manner prescribed, reports and returns in such form and containing such information as may be prescribed and shall submit such documentation in connection therewith as may be prescribed.

Collection and remission of royalty by representative of two or more holders

(2) Where the interest owner of a production licence consists of two or more interest holders, the representative of the interest owner shall, where required by the regulations,

(a) collect and remit on behalf of those interest holders any royalty due under this Part; and

(b) file on behalf of those holders, at the time and in the manner prescribed, consolidated reports and returns in the form and containing the information prescribed and submit such documentation in connection therewith as may be prescribed.

Idem

(3) Interest holders of a production licence shall provide their representative with the information necessary to file any reports and returns pursuant to paragraph (2)(b).

Books and records

59. (1) Each holder of a share in a production licence shall, subject to such terms and conditions as may be prescribed, keep books, records, accounts, documents and other information necessary for or incidental to the calculation and verification of the amounts of royalties payable by the holder under this Part, including such books, records, accounts, documents and other information as may be prescribed.

Idem

(2) Books, records, accounts, documents and other information required to be kept pursuant to subsection (1) shall be kept at the place and in the manner and during the periods prescribed.


Assessments, Objections and Appeals

Audits and examinations

60. Persons required by this Part to file reports and returns are subject to such audit and examination as may be prescribed to be conducted at the times, in the circumstances and in the manner prescribed.

Assessment and notice

61. (1) The Minister shall, with all due dispatch, examine a report or return filed pursuant to subsection 58(1), assess the royalty payable for the period in respect of which the report or return was filed and the interest and penalties, if any, payable and send a notice of assessment to the person by whom the report or return was filed.

Notice of assessment at later date

(2) The Minister may, at any time, assess the royalty, interest or penalties payable under this Part in respect of any period and give a notice of the assessment to the interest holder required to pay the royalty.

Liability unaffected

(3) Liability for the royalty payable under this Part and the interest and penalties, if any, payable thereunder is not affected by an incorrect or incomplete assessment or by the fact that no assessment has been made.

Reports and returns not binding

(4) In making an assessment pursuant to subsection (1), the Minister is not bound by any report or return filed by or on behalf of an interest holder and in making an assessment the Minister may, notwithstanding a report or return so filed or that no such report or return has been filed, assess the royalty, interest and penalties payable under this Part.

Effect of assessment

(5) An assessment, subject to being varied or vacated on an objection or appeal under this Part and subject to a reassessment, is valid and binding notwithstanding any error, defect or omission in the assessment or in any proceeding under this Part relating thereto.

Objection to assessment

62. (1) An interest holder who objects to an assessment may, within ninety days after the date of mailing of the notice of assessment, give a notice of objection to the Minister by registered mail, in such form and manner as may be prescribed, setting out the reasons for the objection and all the relevant facts.

Reconsideration and notice

(2) On receipt of a notice of objection, the Minister shall, with all due dispatch, reconsider the assessment and confirm, vary or vacate the assessment and give notice thereof by registered mail to the interest holder who gave the notice of objection.

Appeal to Federal Court

63. (1) Where the Minister confirms or varies an assessment under subsection 62(2) or fails, within ninety days after the date of mailing by the interest holder of the notice of objection, to notify the interest holder that the Minister has confirmed, varied or vacated the assessment, the interest holder may appeal to the Federal Court in the manner set out in section 48 of theFederal Courts Act to have the assessment varied or vacated.

Time limit for appeal

(2) No appeal under subsection (1) may be instituted after the expiration of ninety days after the date of mailing of a notice confirming or varying an assessment or, where no such notice is given, after the expiration of one hundred and eighty days after the date of mailing of the notice of objection.

Notice of appeal

(3) Where an appeal is taken under subsection (1), the Federal Court shall forthwith give notice of the appeal to the Minister who, forthwith after receiving the notice, shall forward to the Court copies of all reports or returns, notices of assessment, notices of objection and other documents, if any, that are relevant to the appeal.

Disposition of appeal

(4) The Federal Court may dispose of an appeal under subsection (1) by dismissing it or by allowing it and vacating or varying the assessment and may make such orders as are necessary for giving effect to any such disposition.

Hearing in private

(5) Proceedings in an appeal to the Federal Court under subsection (1) may be held in private on request made to the Court by a party to the appeal.

R.S., 1985, c. 36 (2nd Supp.), s. 63; 2002, c. 8, s. 182.

Previous VersionExtension of time for objection

64. (1) Notwithstanding subsections 62(1) and 63(2), the Federal Court may, on application, make an order, subject to any terms it deems just, extending the time within which a notice of objection to an assessment may be given under subsection 62(1) or an appeal to the Federal Court may be instituted under subsection 63(2) where, in the opinion of the Court, the circumstances of the case are such that it would be just and equitable to do so.

Suspension of payment of amounts in dispute

(2) Where notice of objection to an assessment is given under subsection 62(1) or an appeal to the Federal Court is instituted under subsection 63(1), the Minister may suspend, pending disposition of the objection or appeal, the requirement to pay any amount on account of royalty, interest or penalty payable under this Part, the liability for which the interest holder disputes in the notice of objection or on appeal.

Furnishing security

(3) The Minister may, as a condition of suspending payment of any amount in dispute, require the relevant interest holder to furnish security for such payment in a form and amount acceptable to the Minister.

References to Federal Court

65. Where the Minister and the holder of a share in a production licence agree in writing that a question of law, fact or mixed law and fact arising under this Part should be determined by the Federal Court, that question shall be determined by the Court pursuant to subsection 17(3) or (4) of theFederal Courts Act.

R.S., 1985, c. 36 (2nd Supp.), s. 65; 2002, c. 8, s. 182.

Previous Version

Refunds

Refunds

66. The Minister shall, at the times and in the circumstances prescribed, refund any overpayment made on account of royalties, interest or penalties payable under this Act and interest at a prescribed rate per annum shall be paid thereon in accordance with the regulations.


Special Remedies

Set-offs

67. Where a person is indebted to Her Majesty under this Part, the Minister may require the retention by way of deduction or set-off of such amount as the Minister may specify out of any amount that is or may become payable to that person by Her Majesty in right of Canada.

Direction to pay forthwith where avoidance of payment

68. (1) Where, in the opinion of the Minister, the holder of a share in a production licence is attempting to avoid payment of royalties under this Part, the Minister may, in writing, direct that all royalties, interest and penalties payable by that holder be paid forthwith on assessment.

Direction to pay forthwith on cancellation of production licence

(2) Where the Minister orders the cancellation of a production licence pursuant to subsection 105(2), all royalties, interest and penalties payable under this Part in respect of that production licence shall be paid forthwith on assessment.

Acts deemed to be at arm’s length

69. Where, in the opinion of the Minister, the result of one or more acts, agreements, arrangements, transactions or operations is to artificially or unduly reduce the amount of any royalties payable under this Part, those royalties shall, for the purposes of any assessment by the Minister under this Part, be calculated as though the act, agreement, arrangement, transaction or operation had not taken place or had taken place at fair market value between parties dealing at arm’s length.

Successors jointly liable without certificate

70. (1) Where an interest holder, in this subsection referred to as the “successor”, acquires a production licence or a share in a production licence from another interest holder, in this subsection referred to as the “predecessor”, the successor is jointly and severally liable with the predecessor for all royalties, interest and penalties that have been assessed under this Part and that are payable by the predecessor at the time of the acquisition unless the successor has obtained prior to the acquisition a certificate from the Minister certifying that

(a) all the royalties, interest and penalties have been paid;

(b) security for the payment of the royalties, interest and penalties has been accepted by the Minister; or

(c) arrangements for the payment of the royalties, interest and penalties acceptable to the Minister have been made.

Certificate of Minister required for assignees

(2) Every assignee, liquidator, administrator, executor and other like person, other than a trustee in bankruptcy, shall, before distributing any property under his control belonging to the holder of a share in a production licence, obtain a certificate from the Minister certifying that all royalties, interest and penalties that have been assessed under this Part and are payable by the interest holder have been paid or that security for the payment thereof has been accepted by the Minister.

Liability where no certificate

(3) Distribution of property without a certificate required by subsection (2) renders the person required to obtain the certificate personally liable for the unpaid royalties, interest and penalties.

Remedies for unpaid royalties

71. Notwithstanding any other provision of this Act or the Canada Oil and Gas Operations Act, where a person is in default in accordance with the regulations in the payment of any amount payable under this Part in respect of any interest issued in relation to any frontier lands, the Minister may, for so long as the amount remains unpaid, refuse

(a) to issue to that person any interest in relation to any frontier lands; and

(b) to authorize, pursuant to the Canada Oil and Gas Operations Act, that person to carry on any work or activity related to the exploration for or the production of petroleum on any frontier lands and may suspend any such authorization already given.

R.S., 1985, c. 36 (2nd Supp.), s. 71; 1992, c. 35, s. 37.

Application of provisions of Income Tax Act

72. Sections 231 to 231.5 of the Income Tax Act apply, with such modifications as the circumstances require, in respect of the administration and enforcement of this Part and, without restricting the generality of the foregoing, as if

(a) the references therein to “tax” were read as a reference to “royalty”;

(b) the references therein to “Minister” were read as a reference to “Minister” as defined in section 2 of this Act;

(c) the references therein to the “Canada Revenue Agency” were read as a reference to the “Department of Natural Resources” or the “Department of Indian Affairs and Northern Development”, whichever is applicable in the circumstances;

(d) the references therein to the “Tax Court of Canada” were read as a reference to the “Federal Court”; and

(e) the references therein to a “return of income or a supplementary return” were read as a reference to “a report or return” filed pursuant to this Part.

R.S., 1985, c. 36 (2nd Supp.), s. 72; 1994, c. 41, s. 14; 1999, c. 17, s. 113; 2005, c. 38, s. 138.

Previous VersionRemedies not exhaustive

73. The existence or exercise of any remedy that Her Majesty in right of Canada has under this Part does not affect any other remedy that Her Majesty has at law, including any remedy that the Minister may exercise under section 105.


Regulations

Regulations

74. (1) The Governor in Council may make regulations for carrying out the purposes and provisions of this Part and, without restricting the generality of the foregoing, may make regulations

(a) prescribing royalties payable under this Part and the rates at which such royalties are payable;

(b) prescribing the manner of calculating or determining any royalty prescribed under paragraph (a) and any component thereof or value in relation thereto, including the valuation of petroleum produced and any costs, expenses, allowances, credits and other amounts that may be deducted in calculating or determining the amount of royalty payable and generally providing for any other matter or thing necessary for or incidental to such calculation or determination;

(c) exempting, conditionally or unconditionally, any person or persons of any class from the payment of, in whole or in part, any royalty under this Part or exempting any petroleum produced from frontier lands from the application of this Part;

(d) prescribing the circumstances in which and the terms and conditions subject to which the Minister may require all or part of any royalty payable under this Part to be paid in money or in kind and prescribing the manner of calculating or determining the payment in kind;

(e) prescribing or prescribing the manner of calculating or determining penalties for failure to comply with section 57 or 58;

(f) prescribing the rate at which interest on arrears of royalties, interest and penalties owing to Her Majesty in right of Canada under this Part or on amounts of refunds payable by the Minister under this Part is payable and the manner of determining or calculating the interest payable; and

(g) prescribing anything that, by this Part, is to be prescribed.

Regulations relating to class of petroleum

(2) Regulations under subsection (1) may be made in respect of all petroleum produced from frontier lands or any class thereof.

Application of regulations

(3) Regulations made under subsection (1) may apply generally to all frontier lands or any portion thereof.


Part Vii. Environmental Studies Research Fund

Definitions

75. In this Part,

“Board”

« Conseil »

“Board” means the Environmental Studies Management Board established by subsection 78(1);

“Fund”

« fonds »

“Fund” means the Environmental Studies Research Fund (NR) established under subsection 76(1) or the Environmental Studies Research Fund (IAND) established under that subsection, or both, as the context requires;

“Minister”

« ministre »

“Minister” means the Minister of Natural Resources or the Minister of Indian Affairs and Northern Development, or both, as the context requires.

R.S., 1985, c. 36 (2nd Supp.), s. 75; 1994, c. 41, s. 15.

Funds established

76. (1) There shall be established in the accounts of Canada

(a) an account under the administrative responsibility of the Minister of Natural Resources, to be known as the Environmental Studies Research Fund (NR), which shall include a sub-account for each prescribed region of frontier lands within the area under that Minister’s responsibility; and

(b) an account under the administrative responsibility of the Minister of Indian Affairs and Northern Development, to be known as the Environmental Studies Research Fund (IAND), which shall include a sub-account for each prescribed region of frontier lands within the area under that Minister’s responsibility.

Purpose of Funds

(2) The purpose of the Funds is to finance environmental and social studies pertaining to the manner in which, and the terms and conditions under which, exploration, development and production activities on frontier lands authorized under this Act or any other Act of Parliament should be conducted.

R.S., 1985, c. 36 (2nd Supp.), s. 76; 1994, c. 41, s. 16.

Credits and charges

77. (1) There shall be credited to each sub-account all amounts deposited for payment into that sub-account pursuant to this Part and there shall be charged against that sub-account all amounts paid out of the Consolidated Revenue Fund under this section.

Maximum amount of Funds

(2) The total amount of each of the Funds established under subsection 76(1) shall not, at any time, exceed fifteen million dollars and every levy under this Part for the respective Fund or a sub-account included in that Fund is inoperative during any period that the Fund exceeds such total amount.

Appropriation and charges against Funds

(3) There may be paid out of the Consolidated Revenue Fund and charged against the balance standing to the credit of the Funds

(a) the reasonable costs and expenses of environmental and social studies referred to in subsection 76(2);

(b) the reasonable costs and expenses of publishing reports of environmental and social studies referred to in subsection 76(2);

(c) the reasonable travel and living expenses incurred by the members of the Board in the exercise of the powers and the performance of the duties and functions of the Board under this Part; and

(d) any other costs and expenses reasonably incurred in connection with the management, operation and administration of the Funds, including any amounts referred to in paragraph 82(3)(c).

Study relating to one region

(4) Where an environmental or social study relates to one prescribed region exclusively, the costs of that study shall be charged against the sub-account for that region.

Study relating to more than one region

(5) Where an environmental or social study relates to more than one prescribed region, the costs of that study shall be charged against the sub-accounts for such regions in accordance with the allocation made by the Board.

Allocation of other expenses

(6) All other costs and expenses payable from the Funds in any year shall be allocated to and be charged against any sub-account in the manner determined by the Board.

Establishment of Board

78. (1) There is hereby established a board, to be known as the Environmental Studies Management Board, consisting of such number of members as may be fixed by the Governor in Council.

Appointment of members

(2) Subject to the regulations, members of the Board are to be appointed jointly by both Ministers and shall hold office during pleasure.

Selection of members from federal public administration and industry

(3) Members of the Board are to be selected for appointment pursuant to subsection (2) from the federal public administration or the public service of any province or from among persons nominated by interest owners.

Idem

(4) No person may be appointed pursuant to subsection (2) unless that person appears to have specialized technical knowledge or expertise relevant to the purpose of the Fund.

Exception

(5) Notwithstanding subsections (2) to (4), each Minister may appoint from the public one member to the Board.

Chairman of the Board

(6) The chairman of the Board is to be appointed jointly by both Ministers from among the members of the Board.

Expenses

(7) Each member of the Board shall be paid reasonable travel and living expenses incurred by the member in the exercise of the powers and the performance of the duties and functions of the Board under this Part.

R.S., 1985, c. 36 (2nd Supp.), s. 78; 2003, c. 22, s. 131(E).

Previous VersionDuties and functions of Board

79. (1) Unless otherwise provided in an agreement entered into pursuant to section 82, the Board shall

(a) establish guidelines and procedures for

(i) determining the environmental and social studies referred to in subsection 76(2) that should be conducted in relation to frontier lands,

(ii) approving the costs and expenses related to such studies, and

(iii) selecting persons to carry out such studies;

(b) advise each Minister on any matter relating to the management, operation and administration of the Fund under the administrative responsibility of that Minister that the Board considers appropriate or that is referred to the Board by that Minister;

(c) submit to each Minister for approval, not later than sixty days before the end of each year, a budget for the Fund under the administrative responsibility of that Minister in respect of the year next following in relation to that Fund;

(d) submit to each Minister an annual report respecting the Fund under the administrative responsibility of that Minister not later than sixty days after the end of each year in relation to that Fund;

(e) make recommendations to the Ministers respecting the rates to be fixed pursuant to subsection 80(1); and

(f) exercise such other powers and perform such other duties and functions with respect to the management, operation and administration of the Funds as may be prescribed.

Budget

(2) A budget for a Fund submitted under paragraph (1)(c) in relation to any year shall contain

(a) an estimate of all costs and expenses related to the environmental and social studies anticipated to be approved in that year;

(b) an estimate of all costs and expenses related to the management, operation and administration of the Fund for that year; and

(c) such other information as may be required by the Minister having administrative responsibility for that Fund.

Annual report

(3) An annual report respecting a Fund submitted under paragraph (1)(d) shall contain such financial and other information as may be required by the Minister having administrative responsibility for that Fund.

By-laws of the Board

(4) The Board may make by-laws respecting

(a) the establishment of an executive committee and other committees of the Board;

(b) the calling and conduct of meetings of the Board and any committees thereof;

(c) the manner of dealing with matters and business before the Board and any committees thereof;

(d) the exercise of the powers and the performance of the duties and functions of the Board and the committees and members thereof; and

(e) any other matter or thing relating to the operation of the Board.

Effect of by-law

(5) A by-law of the Board made under subsection (4) is not effective until both Ministers have approved the by-law in writing.

Directives by Minister

(6) The Board shall, in the exercise of its powers and the performance of its duties and functions under this Part, comply with such directives as have been issued jointly by both Ministers to the Board.

Fixing rates

80. (1) Each Minister may, for the purposes of this Part, after considering any recommendations made to that Minister by the Board pursuant to paragraph 79(1)(e), fix a rate for each prescribed region of frontier lands within the area under the administrative responsibility of that Minister.

Recommendations

(2) In fixing a rate under subsection (1), the Minister is not bound by a recommendation of the Board.

R.S., 1985, c. 36 (2nd Supp.), s. 80; 1993, c. 34, s. 16.

Payment into sub-accounts

81. (1) Every interest owner of an interest in relation to frontier lands situated in a prescribed region shall deposit for payment into the sub-account for that region, at the times and in the manner determined by the Board, an amount equal to the product of the number of hectares of frontier lands that are subject to the interest and situated in the region and the rate fixed under subsection 80(1) in respect of that region.

Initial payment

(2) Subject to subsection (3), where an interest is issued at any time in relation to frontier lands that were Crown reserve lands immediately before that time, the interest owner shall deposit for payment into the applicable sub-accounts, at the times and in the manner determined by the Board, an amount equal to the aggregate of the amounts that would have been payable by the interest owner in respect of a Fund under this Part or in respect of a fund under the Canada Oil and Gas Act, as it read immediately before the coming into force of this section, during the year in which the interest is issued and the two years immediately preceding that year had such frontier lands been subject to an interest held by the interest owner during such period.

Reduction of initial payment

(3) The amount payable by an interest owner under subsection (2) shall be reduced by the amount, if any, deposited for payment pursuant to subsection (1) or (2) in respect of the same frontier lands by a prior interest owner during the period referred to in subsection (2).

Exemption

(4) Each Minister may, on the recommendation of the Board, exempt from the payment under this section of any amount into a sub-account under the administrative responsibility of that Minister an interest owner in respect of frontier lands subject to the interest of that interest owner in areas where, by virtue of an order under subsection 12(1), any work or activity has been prohibited.

No liability where surrender of lands

(5) An interest owner shall not be liable to pay any amount under this section in respect of any frontier lands in relation to which the interest owner has surrendered the interest of the interest owner prior to the time for payment of the amount determined pursuant to subsection (1).

Representative of interest owner collects

(6) Where an interest owner consists of two or more holders, amounts payable under this Part shall be collected and remitted on behalf of the interest owner by the representative of the interest owner for that purpose.

Order in Council authorizing agreement for trust

82. (1) The Governor in Council may authorize the Minister to enter into an agreement under subsection (2).

Administration agreement

(2) The Minister may, where authorized by the Governor in Council pursuant to subsection (1), enter into an agreement with any person appointing that person to act as administrator of the Fund.

Terms of agreement

(3) An agreement entered into pursuant to subsection (1) shall provide for

(a) the powers, duties and functions of the administrator with respect to the Fund;

(b) the payment of the expenses and fees of the administrator; and

(c) any other relevant matter or thing.

Regulations

83. The Governor in Council may make regulations for carrying out the purposes and provisions of this Part and, without restricting the generality of the foregoing, may make regulations

(a) prescribing the qualifications of members of the Board and prohibiting the appointment of persons as members of the Board who do not meet those qualifications;

(b) prescribing, or prescribing the manner of selecting, persons or classes of persons from among whom members of the Board are to be appointed;

(c) prescribing regions for the purposes of this Part; and

(d) prescribing any other matter or thing that by this Part is to be prescribed.


Part Viii. Transfers, Assignments And Registration

Interpretation

Definitions

84. (1) In this Part,

“assignment of security interest”

« cession de sûreté »

“assignment of security interest” means a notice of the assignment of a security interest or any part thereof in respect of which a security notice has been registered under this Part;

“court”

« tribunal »

“court” means, with respect to any frontier lands or any portion thereof, such superior court as may be prescribed and includes a judge thereof;

“Deputy Registrar”

« directeur adjoint »

“Deputy Registrar” means

(a) in relation to any area in respect of which the Minister of Natural Resources has administrative responsibility for the natural resources therein, such person as that Minister may designate, and

(b) in relation to any area in respect of which the Minister of Indian Affairs and Northern Development has administrative responsibility for the natural resources therein, such person as that Minister may designate;

“discharge”

« mainlevée »

“discharge” means a notice of the discharge of a security notice or postponement and includes a partial discharge;

“instrument”

« acte »

“instrument” means a discharge, postponement, security notice, transfer or an assignment of a security interest;

“operator’s lien”

« privilège de l’exploitant »

“operator’s lien” means any charge on or right in relation to an interest or a share in an interest

(a) that arises under a contract

(i) to which the interest owner or holder of the interest or share is a party,

(ii) that provides for the operator appointed thereunder to carry out any work or activity related to the exploration for or the development or production of petroleum in the frontier lands to which the interest or share applies, and

(iii) that requires the interest owner or holder to make payments to the operator to cover all or part of the advances made by the operator in respect of the costs and expenses of such work or activity, and

(b) that secures the payments referred to in subparagraph (a)(iii);

“postponement”

class="MarginalNoteDef« cession de priorité »

“postponement” means a document evidencing the postponement of a security notice or operator’s lien;

“Registrar”

« directeur »

“Registrar” means

(a) in relation to any area in respect of which the Minister of Natural Resources has administrative responsibility for the natural resources therein, such person as that Minister may designate, and

(b) in relation to any area in respect of which the Minister of Indian Affairs and Northern Development has administrative responsibility for the natural resources therein, such person as that Minister may designate;

“secured party”

« partie garantie »

“secured party” means the person claiming a security interest under a security notice;

“security interest”

« sûreté »

“security interest” means any charge on or right in relation to an interest or a share in an interest that secures

(a) the payment of an indebtedness arising from an existing or future loan or advance of money,

(b) a bond, debenture or other security of a corporation, or

(c) the performance of the obligations of a guarantor under a guarantee given in respect of all or any part of an indebtedness referred to in paragraph (a) or all or any part of a bond, debenture or other security of a corporation,

and includes a security given under section 426 of the Bank Act, but does not include an operator’s lien;

“security notice”

Version anglaise seulement“security notice” means a notice of a security interest;

“transfer”

« transfert »

“transfer” means a transfer of an interest or a share in an interest.

Assignees deemed secured parties

(2) Where an assignment of security interest is registered under this Part, a reference in this Part to a secured party shall, in respect of the security notice to which the assignment of security interest relates, be read as a reference to the assignee named in the assignment of security interest.

R.S., 1985, c. 36 (2nd Supp.), s. 84, c. 21 (4th Supp.), s. 3; 1991, c. 46, s. 587; 1994, c. 41, s. 17.


Transfer and Assignment

Notice of disposition of any interest

85. Where an interest holder of an interest or any share therein enters into an agreement or arrangement that is or may result in a transfer, assignment or other disposition of the interest or any share therein, the interest holder shall give notice of the agreement or arrangement to the Minister, together with a copy of the agreement or arrangement or, if the Minister approves, a summary of its terms and conditions or, on the request of the Minister, a copy of the agreement or arrangement.

86. and 86.1 (Repealed, 1993, c. 47, s. 4)


Registration

Establishment of register

87. (1) A public register of all interests and instruments registered under this Part shall be established and maintained in accordance with this Part and the regulations.

Duties of Registrar and Deputy Registrar

(2) The Registrar and Deputy Registrar shall exercise such powers and perform such duties and functions in respect of the register and the system of registration established under this Part as may be prescribed.

Prohibition against registration of documents except instruments

88. (1) No document other than an interest or instrument may be registered under this Part.

Requirements of registration

(2) No instrument may be registered under this Part unless it has been submitted for registration in the form prescribed for that instrument, in such manner and containing such information as may be prescribed, and meets any other requirement for the registration thereof prescribed by this Act and the regulations.

89. (Repealed, 1993, c. 47, s. 5)

Requirements of registering security notice

90. (1) No security notice may be registered under this Part unless the security notice specifies

(a) the nature of the security interest claimed;

(b) the person from whom the security interest was acquired;

(c) the documents giving rise to the security interest; and

(d) such other particulars in respect thereof as may be prescribed.

Notice of official address

(2) No instrument may be registered under this Part unless a notice of official address for service in respect of that instrument is filed with the Registrar in prescribed form.

Revision of notice of official address

(3) The official address for service in respect of an instrument may be changed by filing with the Registrar another notice of official address for service, in prescribed form.

Security notice carries forward to new interest

91. Where a significant discovery licence or production licence is issued at any time in respect of frontier lands that were not Crown reserve lands immediately before that time, the registration under this Part of a security notice in respect of the interest in force immediately preceding the issuance of that licence and relating to such frontier lands applies in respect of the licence as though the security notice referred to that licence and as though that licence had been issued prior to the registration of the security notice.

Registration

92. (1) Every document submitted for registration under this Part shall be examined by the Registrar and where the Registrar determines that the document is an instrument that meets all the requirements for the registration thereof prescribed by this Act and the regulations, the Registrar shall register the instrument in accordance with this Act and the regulations.

Refusal to register

(2) Where the Registrar refuses to register any document under this Part, the Registrar shall return the document to the person submitting the document for registration and provide that person with the reasons for the refusal.

Memorandum of registration

(3) An instrument is registered under this Part by the endorsement of a memorandum of registration on the instrument specifying the registration number of the instrument and the time and date of registration.

Chronological order of receipt for registration

(4) Instruments accepted for registration under this Part shall be registered in the chronological order in which such instruments are received by the Registrar.

Deemed notice

93. The registration of an instrument under this Part shall be deemed to constitute actual notice of the instrument to all persons as of the time of registration of the instrument and, in the case of a security notice, shall be deemed to constitute actual notice to all persons who may serve a demand for information under section 95 in respect of the security notice of the contents of the documents specified in the security notice.

Priority of rights

94. (1) Subject to subsections (2) and (5), any particular right, in relation to an interest or a share therein, in respect of which an instrument has been registered under this Part at any time has priority over and is valid against any other right, in relation to that interest or share,

(a) in respect of which an instrument may be registered under this Part,

(i) where the instrument was not so registered, or

(ii) where the instrument was so registered after that time,

whether that other right was acquired before or after that particular right; or

(b) in respect of which an instrument may not be registered under this Part, acquired after that time.

Transitional

(2) Where any right in respect of which an instrument may be registered under this Part was acquired before the coming into force of this Part and an instrument in respect of that right is registered under this Part not later than one hundred and eighty days after the coming into force of this Part, the priority and validity of that right shall be determined as though the instrument was registered under this Part at the time the right was acquired and as though this Part was in force at that time.

Idem

(3) Notwithstanding subsection (2), no right in respect of which that subsection applies shall have priority over and be valid against any other right in respect of which that subsection applies but in respect of which an instrument is not registered within the period referred to in that subsection, where the person claiming the right in respect of which an instrument is registered within that period acquired that right with actual knowledge of the other right.

Idem

(4) No instrument in respect of any right to which subsection (2) applies shall be registered unless it is accompanied by the statutory declaration, in prescribed form, of the person claiming that right, attesting to the time at which that right was acquired.

Operator’s lien

(5) An operator’s lien, in relation to an interest or share therein, shall, without registration of any document evidencing the operator’s lien, have priority over and be valid against any other right, in relation to that interest or share, in respect of which an instrument may be registered under this Part, whether an instrument in respect of that other right was registered before or after the acquisition of the operator’s lien or the operator’s lien was acquired before or after that other right, unless the operator’s lien is postponed with respect to such other rights by the registration under this Part of a postponement in respect of the operator’s lien and a discharge in respect of that postponement has not been registered under this Part.

Demand for information

95. (1) A person may, in accordance with this section, serve a demand for information in respect of a security notice that has been registered under this Part in relation to an interest or a share therein where that person

(a) is the holder of that interest or share;

(b) is specified in the security notice as the person from whom the security interest was acquired;

(c) is the secured party under another security notice registered under this Part in relation to that interest or share;

(d) is a member of a class of persons prescribed by the regulations for the purposes of this subsection; or

(e) obtains leave to do so from a court having jurisdiction in respect of the frontier lands subject to that interest or share.

Contents of demand notice

(2) A demand for information, in respect of a security notice, may be served pursuant to subsection (1) by serving on the secured party under the security notice a demand notice, in prescribed form, requiring the secured party

(a) to inform the person serving the demand notice, within fifteen days after service of the notice, of the place where the documents specified in the security notice or copies thereof are located and available for examination, and of the normal business hours during which the examination may be made; and

(b) to make those documents or copies thereof available for examination at that place during normal business hours, by the person serving the notice or by a person authorized by him, within a reasonable period after the demand notice is served.

Service

(3) A demand for information is served for the purposes of this section if it is sent by registered mail or delivered to the official address for service in respect of the security notice according to the records of the Registrar.

Compliance with demand

(4) A demand for information served pursuant to subsection (1) may be complied with by mailing or delivering to the person serving the demand notice a true copy of the documents referred to in the demand notice.

Court order where failure to comply

(5) Where a secured party fails without reasonable excuse to comply with a demand for information in respect of a security notice in relation to an interest or share therein served on the secured party in accordance with this section, a court having jurisdiction in respect of the frontier lands to which the interest or share applies may, on application by the person who served the demand notice, make an order requiring the secured party to comply with the demand for information within the time and in the manner specified in the order.

Where failure to comply with court order

(6) Where a secured party fails to comply with an order of a court made under subsection (5), the court may, on the application of the person who applied for the order,

(a) make any other order the court considers necessary to ensure compliance with the order made under subsection (5); or

(b) make an order directing the Registrar to cancel the registration of the security notice.

Definition of “document”

(7) In this section, “document” includes any amendment to the document.

Notice to take proceedings

96. (1) A person who may serve a demand for information in respect of a security notice in relation to an interest or a share therein pursuant to subsection 95(1) may

(a) serve on the secured party under the security notice a notice to take proceedings, in prescribed form, directing that secured party to apply to a court having jurisdiction in respect of the frontier lands to which the interest or share applies, within sixty days after the day on which the notice to take proceedings is served, for an order substantiating the security interest claimed in the security notice; or

(b) commence proceedings in the court, requiring the secured party to show cause why the registration of the security notice should not be cancelled.

Order to shorten notice to take proceedings

(2) The court may, by order, on the ex parte application of a person who proposes to serve a notice to take proceedings under subsection (1), shorten the sixty day period referred to in paragraph (1)(a) and, if the order is made,

(a) paragraph (1)(a) shall, in relation to that notice to take proceedings, be deemed to refer to the shorter period; and

(b) a certified copy of the order shall be served with that notice to take proceedings.

Order to extend notice to take proceedings

(3) The court may, on the application of a secured party served with a notice to take proceedings, extend the period for applying to the court referred to in paragraph (1)(a), whether or not that period has been shortened under subsection (2).

Service

(4) A notice to take proceedings is served for the purposes of this section if it is sent by registered mail or delivered to the secured party at the official address for service in respect of the security notice according to the records of the Registrar.

Cancellation of registration of security notice

(5) The registration of a security notice shall be cancelled on submission to the Registrar of a statutory declaration showing that

(a) a notice to take proceedings was served in accordance with this section; and

(b) no application was commenced in accordance with the notice to take proceedings or within the period extended pursuant to subsection (3) or an application so made was dismissed by the court or discontinued.

No further registration after cancellation

(6) Where the registration of a security notice in respect of a security interest is cancelled pursuant to subsection (5) or (7), the secured party under the security notice may not submit for registration under this Part another security notice in respect of that security interest without leave of the court to do so.

Cancellation of registration on order of court

(7) The registration of a security notice shall be cancelled where there is submitted to the Registrar a certified copy of an order or judgment of a court directing the Registrar to do so, whether as a result of proceedings taken under this Part or otherwise.

Transfer effective on registration

97. A transfer of an interest or a share therein is not effective against the Crown prior to the registration of the transfer.

No restriction on rights of Minister or Her Majesty

98. For greater certainty, the registration of an instrument

(a) does not restrict or in any manner affect any right or power of the Minister under this Act, the regulations or the terms of any interest; and

(b) does not derogate from any proprietary right or any right to dispose of or exploit natural resources that Her Majesty in right of Canada has in respect of frontier lands.

No action for acts done in performance of official functions

99. No action or other proceedings for damages shall be commenced against the Registrar or Deputy Registrar or anyone acting under the authority of the Registrar or Deputy Registrar for an act done or omission in good faith in the exercise of a power or the performance of a duty under this Part.

Regulations

100. The Governor in Council may make regulations for carrying out the purposes and provisions of this Part and, without restricting the generality of the foregoing, may make regulations

(a) prescribing the powers, duties and functions of the Registrar and Deputy Registrar for the purposes of this Part and the time when, and manner and circumstances in which, they are to be exercised, and providing for the designation by the Minister of any person or class of persons to exercise such powers and perform such duties and functions as may be specified in the regulations;

(b) governing the books, abstracts and indexes to be maintained as the register for the purposes of this Part and the particulars of interests, instruments and frontier lands and the orders and declarations made in relation to interests to be recorded therein;

(c) governing the filing of copies of interests, registered instruments and other documents in the register established under this Part;

(d) governing public access to and searches of the register;

(e) prescribing, for the purposes of this Part, courts having jurisdiction in respect of frontier lands or any portion thereof;

(f) governing the exclusive or concurrent jurisdiction of any court prescribed pursuant to paragraph (e);

(g) prescribing fees for the registration of instruments, making copies and certified copies of documents, searches and any other services specified in the regulations for the purposes of this Part, and requiring such fees to be paid for such services; and

(h) prescribing any other matter or thing that is by this Part to be prescribed.


Part Ix. Administration And Enforcement

Disclosure of Information

Definitions

101. (1) In this section,

“delineation well”

« puits de délimitation »

“delineation well” means a well that is so located in relation to another well penetrating an accumulation of petroleum that there is a reasonable expectation that another portion of that accumulation will be penetrated by the first-mentioned well and that the drilling is necessary in order to determine the commercial value of the accumulation;

“development well”

« puits d’exploitation »

“development well” means a well that is so located in relation to another well penetrating an accumulation of petroleum that it is considered to be a well or part of a well drilled for the purpose of production or observation or for the injection or disposal of fluid into or from the accumulation;

“engineering research or feasibility study”

« recherches ou études techniques »

“engineering research or feasibility study” includes work undertaken to facilitate the design or to analyse the viability of engineering technology, systems or schemes to be used in the exploration for or the development, production or transportation of petroleum on frontier lands;

“environmental study”

« études de l’environnement »

“environmental study” means work pertaining to the measurement or statistical evaluation of the physical, chemical and biological elements of the lands, oceans or coastal zones, including winds, waves, tides, currents, precipitation, ice cover and movement, icebergs, pollution effects, flora and fauna both onshore and offshore, human activity and habitation and any related matters;

“experimental project”

« opération expérimentale »

“experimental project” means work or activity involving the utilization of methods or equipment that are untried or unproven;

“exploratory well”

« puits d’exploration »

“exploratory well” means a well drilled on a geological feature on which a significant discovery has not been made;

“geological work”

« travaux de géologie »

“geological work” means work, in the field or laboratory, involving the collection, examination, processing or other analyis of lithological, paleontological or geochemical materials recovered from the surface or subsurface or the seabed or its subsoil of any frontier lands and includes the analysis and interpretation of mechanical well logs;

“geophysical work”

« travaux de géophysique »

“geophysical work” means work involving the indirect measurement of the physical properties of rocks in order to determine the depth, thickness, structural configuration or history of deposition thereof and includes the processing, analysis and interpretation of material or data obtained from such work;

“geotechnical work”

« travaux de géotechnique »

“geotechnical work” means work, in the field or laboratory, undertaken to determine the physical properties of materials recovered from the surface or subsurface or the seabed or its subsoil of any frontier lands;

“well site seabed survey”

« levé marin »

“well site seabed survey” means a survey pertaining to the nature of the surface or subsurface or the seabed or its subsoil of any frontier lands in the area of the proposed drilling site in respect of a well and to the conditions of those lands that may affect the safety or efficiency of drilling operations;

“well termination date”

« date d’abandon du forage »

“well termination date” means the date on which a well or test hole has been abandoned, completed or suspended in accordance with any applicable regulations respecting the drilling for petroleum made under the Canada Oil and Gas Operations Act.

Privileged information or documentation

(2) Subject to this section, information or documentation is privileged if it is provided for the purposes of this Act or the Canada Oil and Gas Operations Act, other than Part 0.1 of that Act, or any regulation made under either Act, or for the purposes of Part II.1 of the National Energy Board Act, whether or not the information or documentation is required to be provided.

Disclosure

(2.1) Subject to this section, information or documentation that is privileged under subsection (2) shall not knowingly be disclosed without the consent in writing of the person who provided it, except for the purposes of the administration or enforcement of this Act, the Canada Oil and Gas Operations Act or Part II.1 of the National Energy Board Act or for the purposes of legal proceedings relating to its administration or enforcement.

Production and evidence

(3) No person shall be required to produce or give evidence relating to any information or documentation that is privileged under subsection (2) in connection with any legal proceedings, other than proceedings relating to the administration or enforcement of this Act, theOil and Gas Production and Conservation Act or Part II.1 of the National Energy Board Act.

Registration of documents

(4) For greater certainty, this section does not apply to a document that has been registered under Part VIII.

Disclosure pursuant to resource management and revenue sharing agreements

(5) Information or documentation that is privileged under subsection (2) may be disclosed to any government of a province or to any organization representing any aboriginal people of Canada, where such disclosure is made pursuant to an agreement between the Government of Canada and the government of that province or that organization respecting resource management and revenue sharing in relation to activities respecting the exploration for or the production of petroleum carried out on any frontier lands.

Idem

(6) The recipient of information or documentation disclosed pursuant to an agreement referred to in subsection (5) shall not disclose that information or documentation except as otherwise provided in this section.

Information that may be disclosed

(7) Subsection (2) does not apply in respect of the following classes of information or documentation obtained as a result of carrying on a work or activity that is authorized under the Canada Oil and Gas Operations Act, namely, information or documentation in respect of

(a) an exploratory well, where the information or documentation is obtained as a direct result of drilling the well and if two years have passed since the well termination date of that well;

(b) a delineation well, where the information or documentation is obtained as a direct result of drilling the well and if the later of

(i) two years since the well termination date of the relevant exploratory well, and

(ii) ninety days since the well termination date of the delineation well,

have passed;

(c) a development well, where the information or documentation is obtained as a direct result of drilling the well and if the later of

(i) two years since the well termination date of the relevant exploratory well, and

(ii) sixty days since the well termination date of the development well,

have passed;

(d) geological work or geophysical work performed on or in relation to any frontier lands,

(i) in the case of a well site seabed survey where the well has been drilled, after the expiration of the period referred to in paragraph (a) or the later period referred to in subparagraph (b)(i) or (ii) or (c)(i) or (ii), according to whether paragraph (a), (b) or (c) is applicable in respect of that well, or

(ii) in any other case, after the expiration of five years following the date of completion of the work;

(e) any engineering research or feasibility study or experimental project, including geotechnical work, carried out on or in relation to any frontier lands,

(i) where it relates to a well and the well has been drilled, after the expiration of the period referred to in paragraph (a) or the later period referred to in subparagraph (b)(i) or (ii) or (c)(i) or (ii), according to whether paragraph (a), (b) or (c) is applicable in respect of that well, or

(ii) in any other case, after the expiration o five years following the date of completion of the research, study or project or after the reversion of the lands to Crown reserve lands, whichever occurs first;

(f) any contingency plan formulated in respect of emergencies arising as a result of any work or activity authorized under the Canada Oil and Gas Operations Act;

(g) diving work, weather observations or the status of operational activities or of the development of or production from a pool or field;

(g.1) accidents, incidents or petroleum spills, to the extent necessary to permit a person or body to produce and to distribute or publish a report for the administration of this Act, or of the Canada Oil and Gas Operations Act, in respect of the accident, incident or spill;

(h) any study funded from an account established under subsection 76(1), if the study has been completed; and

(i) an environmental study, other than a study referred to in paragraph (h),

(i) where it relates to a well and the well has been drilled, after the expiration of the period referred to in paragraph (a) or the later period referred to in subparagraph (b)(i) or (ii) or (c)(i) or (ii), according to whether paragraph (a), (b) or (c) is applicable in respect of that well, or

(ii) in any other case, if five years have passed since the completion of the study.

(8)�(Repealed, R.S., 1985, c. 21 (4th Supp.), s. 4)

R.S., 1985, c. 36 (2nd Supp.), s. 101, c. 21 (4th Supp.), s. 4; 1992, c. 35, s. 38; 1994, c. 10, s. 18; 2007, c. 35, s. 151.

Previous Version

Arbitration

102. (Repealed, 1992, c. 35, s. 39)

Operating agreements

103. (1) Where a dispute of a prescribed class arises between two or more interest holders of an interest in respect of any operations conducted in carrying out a work or activity on frontier lands authorized under the Canada Oil and Gas Operations Act and an operating agreement or other similar arrangement that extends to that work or activity is not in force or was made prior to March 5, 1982, the matters in dispute may, by order of the Minister, be submitted to arbitration conducted in accordance with the regulations.

Application

(2) Subsection (1) applies only in respect of

(a) interests in force on March 5, 1982 in relation to any frontier lands; and

(b) interests immediately succeeding the interests referred to in paragraph (a) in relation to those lands where those lands were not Crown reserve lands on the expiration of the interests referred to in paragraph (a).

Arbitration order

(3) An order of an arbitrator made pursuant to arbitration under subsection (1) is binding on all interest holders specified in the order from the date specified in the order, and the terms and conditions of the order are deemed to be terms and conditions of the interest to which the matters relate.

R.S., 1985, c. 36 (2nd Supp.), s. 103; 1992, c. 35, s. 40.

Regulations

104. (1) The Governor in Council may make regulations for carrying out the purposes and provisions of section 103 and, without restricting the generality of the foregoing, may make regulations

(a) governing arbitration and the making of arbitration orders;

(b) prescribing the classes of disputes that may be submitted to arbitration; and

(c) governing appeals from and enforcement of arbitration orders.

Application of regulations

(2) Regulations made under subsection (1) may apply generally to all frontier lands or any portion thereof.

R.S., 1985, c. 36 (2nd Supp.), s. 104; 1992, c. 35, s. 41.


Cancellation of Rights

Notice to comply

105. (1) Where the Minister has reason to believe that an interest owner or holder is failing or has failed to meet any requirement of or under this Act or the Canada Oil and Gas Operations Act or any regulation made under either Act, the Minister may give notice to that interest owner or holder requiring compliance with the requirement within ninety days after the date of the notice or within such longer period as the Minister considers appropriate.

Default

(2) Notwithstanding anything in this Act, where an interest owner or holder fails to comply with a notice under subsection (1) within the period specified in the notice and the Minister considers that the failure to comply warrants cancellation of the interest of the interest owner or holder or any share in the interest held by the holder with respect to a portion only of the frontier lands subject to the interest, the Minister may, by order subject to section 106, cancel that interest or share, and where the interest or share is so cancelled, the frontier lands thereunder become Crown reserve lands.

R.S., 1985, c. 36 (2nd Supp.), s. 105; 1992, c. 35, s. 42.


Hearings and Judicial Review

Definition of “Committee”

106. (1) In this section, “Committee” means the Oil and Gas Committee established by the Canada Oil and Gas Operations Act.

Notice

(2) The Minister shall, not less than thirty days before making any order or decision or taking any action in respect of which it is expressly stated in this Act to be subject to this section, give notice in writing to the persons the Minister considers to be directly affected by the proposed order, decision or action.

Request for hearing

(3) Any person receiving a notice under subsection (2) may, in writing, request a hearing within the thirty day period referred to in that subsection and, on receipt of such a request, the Minister shall direct the Committee to appoint a time and place for a hearing and give notice thereof to the person who requested the hearing.

Hearing

(4) Any person requesting a hearing under subsection (3) may make representations and introduce witnesses and documents at the hearing.

Powers of Committee

(5) For the purposes of a hearing requested under subsection (3), the Committee has, regarding the attendance, swearing and examination of witnesses and the production and inspection of documents, all such powers, rights and privileges as are vested in a superior court of record.

Recommendations of Committee

(6) On the conclusion of the hearing, the Committee shall submit to the Minister its recommendations concerning the proposed order, decision or action of the Minister, together with the evidence and other material that was before the Committee.

Order of Minister

(7) Before making any order or decision or taking any action in respect of which a hearing has been held, the Minister shall consider the recommendations of the Committee.

Notification of order and reasons

(8) Where an order, decision or action referred to in subsection (2) is made or taken, the Minister shall notify the person who requested a hearing in respect of the order, decision or action under subsection (3) and, on request by that person, publish or make available to that person the reasons for the order, decision or action.

Effective date of order

(9) An order, decision or action referred to in subsection (2) takes effect as of

(a) the day that immediately follows the last day of the thirty day period referred to in that subsection, where no hearing is requested under subsection (3); or

(b) the day that the order or decision is made or the action is taken by the Minister, where a hearing is requested under subsection (3).

Judicial review

(10) Any order, decision or action in respect of which a hearing is held under this section is subject to judicial review under the Federal Courts Act.

R.S., 1985, c. 36 (2nd Supp.), s. 106; 1990, c. 8, s. 47; 1992, c. 35, s. 43; 2002, c. 8, s. 182.

Previous Version

Regulations

Regulations

107. (1) The Governor in Council may make regulations for carrying out the purposes and provisions of this Act and, without restricting the generality of the foregoing, may make regulations

(a) not inconsistent with the Canada Lands Surveys Act authorizing or requiring the survey, division and subdivision of frontier lands and defining and describing those divisions and subdivisions;

(b) prescribing the information and documentation to be provided by interest owners and interest holders for the purposes of this Act, the time when and manner in which such information and documentation is to be provided, authorizing the Minister to prescribe the form in which it is to be provided and requiring such information and documentation to be provided in accordance with the regulations;

(c) requiring fees and deposits to be paid in respect of interests, prescribing the amounts of such fees and deposits, the time and manner of their payment and providing for the administration of such fees and deposits and the disposition and return of deposits; and

(d) prescribing any other matter or thing that by this Act is to be prescribed or that is to be done by regulations.

Publication of proposed regulations

(2) Subject to subsection (3), a copy of each regulation that the Governor in Council proposes to make under this Act shall be published in the Canada Gazette and a reasonable opportunity shall be afforded to interested persons to make representations to the Minister with respect thereto.

Single publication required

(3) No proposed regulation need be published more than once under subsection (2) whether or not it is altered or amended after such publication as a result of representations made by interested persons as provided in that subsection.

Forms

108. (1) The Minister may prescribe any form or any information to be given on a form that is by this Act or the regulations to be prescribed and may include on any form so prescribed a declaration, to be signed by the person completing the form, declaring that the information given by that person on the form is, to the best of his knowledge, true, accurate and complete.

Forms prescribed or authorized

(2) Every form purporting to be a form prescribed or authorized by the Minister shall be deemed to be a form prescribed by the Minister under this Act unless called in question by the Minister or some person acting for the Minister or Her Majesty.

Forms not regulations

(3) Where a form or information to be given on a form is prescribed by the Minister pursuant to this Act, it shall be deemed not to be a regulation within the meaning of the Statutory Instruments Act.


Report to Parliament

Report to Parliament

109. The Minister shall, within ninety days after the end of each year, cause to be prepared a report with respect to the administration of this Act during that year, and shall cause the report to be laid before each House of Parliament on any of the first fifteen days on which that House is sitting after the day the report is prepared.


Part X. Transitional, Consequential And Commencement

Transitional

Exploration agreements extant are continued

110. (1) Where an exploration agreement was entered into or negotiations in respect thereof were completed under the Canada Oil and Gas Act before the coming into force of this section, that exploration agreement shall, for the purposes of this Act, be referred to as an exploration licence and shall, subject to this Act, have effect in accordance with its terms and conditions.

Production licences extant

(2) Where a production licence was granted under the Canada Oil and Gas Act and is in force on the coming into force of this section, it shall be deemed to be a production licence issued under this Act on the coming into force of this section and is subject to this Act.

Declarations of significant discovery continued

(3) Where a declaration of significant discovery was made under section 45 of the Canada Oil and Gas Act and is in force on the coming into force of this section, it continues in force as if it was made pursuant to section 28 of this Act.

Deemed significant discovery licences

(4) Where, on the coming into force of this section, an exploration agreement is continuing in force pursuant to subsection 17(4) of the Canada Oil and Gas Act, it shall be deemed to be a significant discovery licence issued under this Act on the coming into force of this section and is subject to this Act.

Replacement of rights

111. (1) Subject to section 110 and subsections 112(2) and 114(4) and (5), the interests provided for under this Act replace all petroleum rights or prospects thereof acquired or vested in relation to frontier lands prior to the coming into force of this section.

No compensation

(2) No party shall 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 thereof for any acquired, vested or future right or entitlement or any prospect thereof that is replaced or otherwise affected by this Act, or for any duty or liability imposed on that party by this Act.

Regulations continue in force

112. (1) The Canada Oil and Gas Land Regulations remain in force to the extent that they are consistent with this Act until they are revoked or replaced by regulations made under this Act.

Former interests

(2) All interests provided by the Canada Oil and Gas Land Regulations that are in force on the coming into force of this section continue in force subject to sections 113 to 116.

(3) to (7) (Repealed, 1991, c. 10, s. 20)

R.S., 1985, c. 36 (2nd Supp.), s. 112; 1991, c. 10, ss. 19, 20.

Former permits, former special renewal permits and former exploration agreements

113. (1) Subject to sections 115 and 116, the interest owner of a former permit, former special renewal permit or former exploration agreement shall, on or before the first anniversary date of any such interest following March 5, 1982 or on or before the day that is six months after that date, whichever is the later, negotiate an exploration licence with the Minister.

Surrender

(2) Where an interest owner referred to in subsection (1) does not comply with that subsection, the frontier lands under the relevant interest are deemed to be surrendered and become Crown reserve lands.

Extension

(3) Notwithstanding anything in this Act, an exploration licence under subsection (1) may be extended to include all or any portion of the frontier lands under the preceding interest and any related frontier lands that, immediately prior to that extension, were Crown reserve lands.

Where drilling commitment exists

(4) Where a former special renewal permit or former exploration agreement contains provisions for the drilling of one or more wells, the Minister shall offer to issue an exploration licence to the interest owner for a term equal to the balance of the term of the former special renewal permit or former exploration agreement remaining on March 5, 1982 and having the same drilling provisions.

Former leases

114. (1) Subject to sections 115 and 116, the interest owner of a former lease, other than a lease referred to in subsection (4), shall, on or before the first anniversary date of the former lease following March 5, 1982 or on or before the day that is six months after that date, whichever is the later, negotiate an exploration licence with the Minister.

Surrender

(2) Where the interest owner referred to in subsection (1) does not comply with that subsection, the frontier lands under the former lease are deemed to be surrendered and become Crown reserve lands.

Application

(3) Subsection 113(3) applies, with such modifications as the circumstances require, to lands that may be included in an exploration licence under subsection (1).

Exception

(4) Oil and Gas Leases numbered 529-R, 703, 704, 705, 707-R, 708-R, 709-R, 710-R, 838, 702, 411, 412, 442-R, 443-R and 444-R, issued pursuant to the Canada Oil and Gas Land Regulations shall continue in force in accordance with their terms and conditions.

Idem

(5) Notwithstanding any other provision of this Act, the Norman Wells Agreement of 1944 and the Norman Wells Expansion Agreement of 1983 shall continue in force in accordance with the terms and conditions of those Agreements, as amended by the Norman Wells Amending Agreement of 1994, and sections 1 to 117 do not apply to any of those Agreements.

R.S., 1985, c. 36 (2nd Supp.), s. 114; 1994, c. 36, s. 1.

Extension of time

115. Where an exploration licence required to be negotiated under section 113 or 114 cannot be negotiated within the period provided in those sections for any reason not attributable to the interest owner, the Minister shall extend that period to allow for that negotiation within a reasonable time.

Consolidated exploration licence

116. (1) One or more interest owners of former permits, former special renewal permits, former exploration agreements or former leases may, for the purposes of complying with subsection 113(1) or 114(1), negotiate together a single exploration licence that would consolidate any number or combination of such interests held by those interest owners.

Terms and conditions of exploration licence

(2) An exploration licence negotiated pursuant to subsection (1) shall contain any terms and conditions that may be agreed on by the Minister and the interest owners thereof.

Crown share abrogated

117. (1) Subject to subsection (2), for greater certainty, the reservation to Her Majesty in right of Canada of a Crown share in any interest granted or entered into under the Canada Oil and Gas Act prior to the coming into force of this section is abrogated on and after the day this section comes into force.

Inuvialuit claims unaffected

(2) For greater certainty, nothing in this Act affects any right, privilege or benefit set out in the agreement approved, given effect and declared valid by the Western Arctic (Inuvialuit) Claims Settlement Act, chapter 24 of the Statutes of Canada, 1984.

Division of exploration licence 329

117.1 (1) Exploration licence numbered 329, in effect on the coming into force of this section, is divided into two licences, one applicable to the portion of the lands described in that licence that is landward of the northern limit of the adjoining area described in Schedule 2 to the Yukon Act and one applicable to the portion of those lands that is seaward of that northern limit.

Division of significant discovery licence 12

(2) Significant discovery licence numbered 12, in effect on the coming into force of this section, is divided into two licences, one applicable to the portion of the lands described in that licence that is situated in the Yukon Territory and one applicable to the portion of those lands situated in the Northwest Territories.

Division of oil and gas lease 411-68

(3) Oil and gas lease numbered 411-68, in effect on the coming into force of this section, is divided into two leases, one applicable to the portion of the lands described in that lease that is situated in the Yukon Territory and one applicable to the portion of those lands situated in the Northwest Territories.

Division of oil and gas lease 442-R-68

(4) Oil and gas lease numbered 442-R-68, in effect on the coming into force of this section, is divided into two leases, one applicable to the portion of the lands described in that lease that is situated in the Yukon Territory and one applicable to the portion of those lands situated in the Northwest Territories.

Registration of divided interests

(5) The Registrar referred to in section 87 may assign new numbers, in the register established under that section, to the interests resulting from the division of an interest under this section.

Interpretation

(6) The division of an interest and the assignment of new numbers under this section shall be construed as a continuation of that interest and not as the issuance of new interests.

1998, c. 5, s. 14.


Consequential Amendments

118. to 130. (Amendments and repeal)


Coming into Force

Coming into force

Idem

(2) Section 116 shall be deemed to have come into force on March 5, 1982.


Personal tools
Laws
Variants
Actions
Navigation
Toolbox