Canada Oil and Gas Land Regulations (C.R.C., c. 1518)

116 (1) Any person who, on August 3, 1977, is a permittee described in paragraph 114(b) and has not been granted an oil and gas lease may, at his option, instead of maintaining his application for a lease under section 54, within 90 days after the day that would have been the next anniversary date of his permit if it had not expired, either

• (a) withdraw his application for an oil and gas lease and surrender in writing his right to receive the oil and gas lease, whereupon he shall be entitled to be repaid any sums he paid as rental; or

• (b) withdraw his application for an oil and gas lease and apply instead for a special renewal permit, whereupon he shall be entitled to be repaid any sums he paid as rental except that sum tendered with the lease application in respect of the first year thereof, and the Minister may grant to that person a special renewal permit for such term and subject to such conditions, including the payment of deposits, as the Minister may determine.

(2) Notwithstanding anything in this section, where a person who applies for a special renewal permit pursuant to paragraph (1)(b) and the Minister have not agreed on the terms and conditions for the special renewal permit within 30 days after the expiry of the period within which Petro-Canada Limited is required to give the notice specified in subsection 121(6) or within 30 days after Petro-Canada Limited gives any such notice, whichever occurs first, that person shall for 30 days thereafter have the right to reinstate his application for an oil and gas lease under section 54 as if it had not been withdrawn and he were still a permittee, whereupon he shall be entitled to be repaid any sums he paid as rental except that sum tendered with the lease application in respect of the first year thereof, and that sum shall be deemed to satisfy all rental obligations under that lease up to the first anniversary date thereof following August 3, 1977.

(3) Where a person referred to in subsection (2) fails to exercise his right to reinstate his application for an oil and gas lease under section 54, the lands that he held pursuant to the permit referred to in paragraph 114(b) shall be deemed to be surrendered and shall become Crown reserve lands.