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

Act current to 2014-09-15 and last amended on 2014-04-01. Previous Versions

Significant Discovery Licences

Marginal note:Rights under significant discovery licence

 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.

Marginal note:Significant discovery licence in relation to lands subject to exploration licences
  •  (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.

  • Marginal note: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.

  • Marginal note: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.

Marginal note:Reduction of lands subject to significant discovery licence
  •  (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.

  • Marginal note: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.

Marginal note:Exploration licence ceases to have effect
  •  (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.

  • Marginal note:Effective date of significant discovery licence

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

  • Marginal note: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.

  • Marginal note: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.