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

Act current to 2014-10-27 and last amended on 2014-04-01. Previous Versions

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.