Canada Oil and Gas Operations Act (R.S.C., 1985, c. O-7)

Act current to 2017-10-13 and last amended on 2016-06-19. Previous Versions

Determination

Marginal note:National Energy Board’s obligations

 If the data obtained from conducting a survey or drilling an exploratory well — as defined in subsection 101(1) of the Canada Petroleum Resources Act — in the notification area provide sufficient information for the National Energy Board to determine that a pool or field exists, the Board shall

  • (a) determine whether the pool or field is a straddling resource;

  • (b) without delay notify the Minister and the Government of the Northwest Territories of its determination and the reasons for it; and

  • (c) on request, provide that Minister or that Government with the information that is in the Board’s possession and pertinent to that determination.

  • 2014, c. 2, s. 25.
Marginal note:Information sharing

 The Minister and the Government of the Northwest Territories shall, on request, provide the other with the information that is in their possession and is relevant to the proper and efficient exploration for and the management, administration and exploitation of the straddling resource.

  • 2014, c. 2, s. 25.

Exploitation of Straddling Resources

Marginal note:Single pool or field
  •  (1) A straddling resource may be exploited as a single pool or field, as the case may be.

  • Marginal note:Single exploration or drilling program

    (2) An exploration or drilling program related to a straddling resource is, to the extent practicable, to be managed as a single exploration or drilling program.

  • 2014, c. 2, s. 25.
Marginal note:Notice — intention to start production
  •  (1) If an interest owner, as defined in section 2 of the Canada Petroleum Resources Act, advises the Minister or the National Energy Board — including by way of an application under section 38 of the Canada Petroleum Resources Act or paragraph 5(1)(b) of this Act, as the case may be — that it intends to start production of a straddling resource, the Minister shall, without delay, notify the Government of the Northwest Territories of the interest owner’s intention.

  • Marginal note:Notice — after production commences

    (2) If, after production commences, the National Energy Board determines that a pool or field is a straddling resource

    • (a) the Minister or the Government of the Northwest Territories — depending on the jurisdiction in which production commenced — shall, without delay, notify the other of that determination; and

    • (b) either of them may give notice under section 48.06.

  • 2014, c. 2, s. 25.
Marginal note:Requirement — exploitation as single unit

 The Minister or the Government of the Northwest Territories may, by notice, require of the other that a pool or field that is a straddling resource be exploited as a single pool or field, as the case may be.

  • 2014, c. 2, s. 25.
Marginal note:Unit agreement
  •  (1) The royalty owners and the working interest owners in respect of a straddling resource may enter into a unit agreement and, if it is approved under subsection 48.09(1), they shall operate their interests in accordance with it or any amendment to it.

  • Marginal note:Unit operating agreement

    (2) The working interest owners in respect of a straddling resource may enter into a unit operating agreement and, if it is approved under subsection 48.09(1), they shall operate their interests in accordance with it or any amendment to it.

  • Marginal note:Termination

    (3) Unless the Minister and the Government of the Northwest Territories agree to an earlier termination, a unit agreement or a unit operating agreement remains in force until the later of

    • (a) the day on which commercial production from the straddling resources to which the agreement applies ends, and

    • (b) the day on which there are no outstanding obligations in respect of the decommissioning or the abandonment of the production system for a straddling resource to which the agreement applies.

  • 2014, c. 2, s. 25.
Marginal note:Order to enter into agreements

 If a straddling resource is required to be exploited as a single pool or field under section 48.06 and the working interest owners have not entered into a unit agreement and a unit operating agreement, the Minister shall order the working interest owners in the portion of the pool or field that is in the Minister’s jurisdiction to do so.

  • 2014, c. 2, s. 25.
Marginal note:Approval of agreements
  •  (1) A unit agreement and a unit operating agreement are subject to the approval of the Minister and the Government of the Northwest Territories. They are to be approved only if all royalty owners and working interest owners referred to in subsection 48.07(1) or all working interest owners referred to in subsection 48.07(2), as the case may be, are parties to the agreement.

  • Marginal note:Condition precedent

    (2) No authorization is to be issued under paragraph 5(1)(b) — and no development plan is to be approved under subsection 5.1(4) — in relation to the exploitation of a straddling resource if the unit agreement and the unit operating agreement are not approved under subsection (1).

  • 2014, c. 2, s. 25.
Marginal note:Referral to independent expert

 If the royalty owners and the working interest owners in respect of a straddling resource do not enter into a unit agreement — and, in the case of the working interest owners, a unit operating agreement — within 90 days after the day on which the Minister orders the working interest owners to enter into those agreements under section 48.08, the Minister or the Government of the Northwest Territories may notify the other of their intention to refer the matter to an independent expert for a decision in accordance with section 48.095.

  • 2014, c. 2, s. 25.
Marginal note:Unitization order
  •  (1) The Minister shall issue a unitization order in accordance with the independent expert’s final decision.

  • Marginal note:Effect

    (2) The unit agreement and the unit operating agreement have the effect given them by the Minister’s order.

  • Marginal note:Government of the Northwest Territories

    (3) A unitization order becomes effective only if the Government of the Northwest Territories issues an equivalent order.

  • Marginal note:Joint approval

    (4) The issuance of a unitization order by the Minister and of an equivalent order by the Government of the Northwest Territories is deemed to be their joint approval of the unit agreement and the unit operating agreement.

  • Marginal note:Effective date

    (5) Subject to subsection (3), a unitization order becomes effective on the day established in the order, but that day is not to be less than 30 days after the day on which the order is issued.

  • 2014, c. 2, s. 25.
Marginal note:Redetermination

 The Minister, the Government of the Northwest Territories or a working interest owner may — in respect of future production — request a redetermination of

  • (a) the apportionment of the production from the straddling resource; or

  • (b) one or more of the elements set out in the unit agreement or the unit operating agreement.

  • 2014, c. 2, s. 25.
Marginal note:No agreement — royalty owners and working interest owners

 If the royalty owners and the working interest owners in respect of a straddling resource do not enter into an agreement in respect of the redetermination under section 48.093 within 90 days after the day on which the request is made, the Minister or the Government of the Northwest Territories may notify the other of their intention to refer the matter to an independent expert for a decision in accordance with section 48.095.

  • 2014, c. 2, s. 25.
Marginal note:Independent expert
  •  (1) Within 90 days after the day on which the Minister or the Government of the Northwest Territories is notified under subsection 5.1(8) or section 48.091 or 48.094, the Minister and the Government shall appoint the independent expert.

  • Marginal note:Qualifications

    (2) The independent expert must be impartial and independent and have knowledge or experience relevant to the matter.

  • Marginal note:Appointment — drawing lots

    (3) If the Minister and the Government of the Northwest Territories do not appoint the expert in accordance with subsection (1), each shall — within 30 days after the day on which the time to appoint an expert expires — submit to the other the names of up to two persons with the qualifications set out in subsection (2); they shall within 30 days after the day of submission select the independent expert from those persons by drawing lots and appoint that person as the independent expert.

  • Marginal note:Absence of submission, selection or appointment

    (4) If the Minister or the Government of the Northwest Territories does not submit, select or appoint as required by subsection (3), they are deemed to make the same submission, selection or appointment — as the case may be — as the other and are bound by the decision of the independent expert.

  • Marginal note:Preliminary decision

    (5) Within 90 days after the day on which they are seized of the matter or within any other period agreed to by the Minister and the Government of the Northwest Territories, the independent expert shall render a preliminary decision and the Minister and the Government are to be provided with it and the reasons for it, including any supporting documentation.

  • Marginal note:Clarification or reconsideration

    (6) The Minister or the Government of the Northwest Territories may — within 60 days after being provided with the preliminary decision — request the independent expert to clarify or reconsider that decision and make additional submissions to the independent expert.

  • Marginal note:Further submissions

    (7) If the Minister or the Government of the Northwest Territories does so request and make such submissions, they shall provide the other with a copy of those submissions. The other may — within 15 days after the day on which they receive that copy — make further submissions and shall provide the other with a copy of them.

  • Marginal note:Final decision

    (8) Within 120 days after the day on which they render a preliminary decision, the independent expert shall render a final decision and the Minister and the Government of the Northwest Territories are to be provided with it and the reasons for it, including any supporting documentation.

  • Marginal note:Decision is final and binding

    (9) An independent expert’s final decision is final and binding on the Minister and the Government of the Northwest Territories and is not to be challenged on appeal or judicial review in any court except on the ground that the independent expert erred in law or exceeded the independent expert’s jurisdiction.

  • Marginal note:Legal proceedings

    (10) If a person acts as an independent expert,

    • (a) the person is not to be called to give evidence, and is not compellable as a witness, in any legal proceedings related to the matter; and

    • (b) the person’s records related to the matter are not admissible as evidence in any legal proceedings related to the matter.

  • 2014, c. 2, s. 25.
 
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