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

Act current to 2015-11-16 and last amended on 2015-06-19. Previous Versions

Marginal note:Technical defects in unitization order

 A unitization order is not invalid by reason only of the absence of notice or of any irregularities in giving notice to any owner in respect of the application for the order or any proceedings leading to the making of the order.

  • R.S., c. O-4, s. 32.
Marginal note:Amending unitization order
  •  (1) A unitization order may be amended on the application of a working interest owner, but before amending a unitization order the Committee shall hold a hearing at which all interested parties shall have an opportunity to be heard.

  • Marginal note:Voluntary proposal for amendment by owners

    (2) If the Committee finds that, at the date of the commencement of a hearing of an application for the amendment of a unitization order, one or more working interest owners who own, in the aggregate, sixty-five per cent or more of the total working interests and one or more royalty interest owners who own, in the aggregate, sixty-five per cent or more of the total royalty interests in the unit area have consented to the proposed amendment, the Committee may amend the unitization order in accordance with the amendment proposed.

  • R.S., c. O-4, s. 33.
Marginal note:Protection of tract participation ratios

 No amendment shall be made under section 44 that will alter the ratios between the tract participations of those tracts that were qualified for inclusion in the unit area before the commencement of the hearing, and, for the purposes of this section, the tract participations shall be those indicated in the unit agreement when it became subject to a unitization order.

  • R.S., c. O-4, s. 34.
Marginal note:Production prohibited except in accord with unitization order

 After the date on which a unitization order comes into effect and while the order remains in force, no person shall carry on any operations within the unit area for the purpose of drilling for or producing oil or gas from the unitized zone, except in accordance with the provisions of the unit agreement and the unit operating agreement.

  • R.S., c. O-4, s. 35.
Marginal note:How percentages of interests to be determined
  •  (1) The percentages of interests referred to in subsections 39(1), 41(2), 42(2) and 44(2) shall be determined

    • (a) with respect to royalty interests, on a prorated area basis; and

    • (b) with respect to working interests, on the basis of tract participations shown in the unit agreement.

  • Marginal note:Owner deemed to be royalty owner on a prorated area basis

    (2) Where a working interest in a unit tract is held as an incident of the ownership of a fee simple estate in oil or gas, the owner who holds that working interest shall, for the purposes of subsection (1), be deemed to be a royalty owner in respect of the tract on a prorated area basis under paragraph (1)(a).

  • R.S., c. O-4, s. 36;
  • 1976-77, c. 55, s. 5(E).