Indian Oil and Gas Regulations, 1995 (SOR/94-753)

Regulations are current to 2017-09-27

Indian Oil and Gas Regulations, 1995

SOR/94-753

INDIAN OIL AND GAS ACT

FINANCIAL ADMINISTRATION ACT

Registration 1994-12-06

Regulations Respecting the Exploitation of Oil and Gas in Indian Lands

P.C. 1994-2008 1994-12-06

His Excellency the Governor General in Council, on the recommendation of the Minister of Indian Affairs and Northern Development and the Treasury Board, pursuant to section 3 of the Indian Oil and Gas Act and subsection 19(1)Footnote * of the Financial Administration Act, is pleased hereby to revoke the Indian Oil and Gas Regulations, C.R.C., c. 963, and to make the annexed Regulations respecting the exploitation of oil and gas in Indian lands in substitution therefor, effective January 1, 1995.

Short Title

 These Regulations may be cited as the Indian Oil and Gas Regulations, 1995.

Interpretation

 In these Regulations,

Act

Act means the Indian Oil and Gas Act; (Loi)

approval of the band council

approval of the band council means approval evidenced by a written resolution signed by a quorum of a band council or, where pursuant to paragraph 3(1)(b) a band council has delegated its authority to a person, approval in writing signed by that person; (autorisation du conseil de bande)

band council

band council means the council of a band that has the use and benefit of the Indian lands that are being used or from which oil or gas is being produced; (conseil de bande)

band member in lawful possession

band member in lawful possession, in respect of land, means a member of a band who is lawfully in possession of the land within the meaning of subsection 20(1) or section 22 of the Indian Act; (membre de bande occupant légalement une terre)

commercial quantity

commercial quantity, in respect of oil and gas, means a quantity of oil or gas produced from a well that economically warrants the drilling of a similar well in the immediate area, taking into consideration the cost of drilling and production operations, the quantity of production and the availability of markets; (quantité commerciale)

condensate

condensate means a liquid mixture, consisting mainly of pentanes and heavier hydrocarbons, that is condensed from gas and is recoverable at a well; (condensat)

continuance

continuance, in respect of a lease, means an extension of the term of the lease; (prolongation)

contract

contract means a permit, lease, surface rights contract, option or other disposition issued, made or granted under these Regulations or the former Regulations; (contrat)

crude bitumen

crude bitumen means a naturally occurring viscous mixture, consisting mainly of hydrocarbons heavier than pentane, that in its natural viscous state is not recoverable through a well in commercial quantity; (bitume brut)

Executive Director

Executive Director means the Executive Director of Indian Oil and Gas Canada, Department of Indian Affairs and Northern Development; (directeur exécutif)

exploratory licence

exploratory licence means a licence to conduct exploratory work issued under section 6; (licence d’exploration)

exploratory work

exploratory work includes mapping, surveying, geological, geophysical or geochemical examinations, test drilling and other investigations, conducted by air, land or water, that are related to the exploration for oil and gas; (travaux d’exploration)

field

field means the surface area of land that is or appears to be underlain by one or more pools and the subsurface vertically beneath that area; (champ)

former Regulations

former Regulations means the Indian Oil and Gas Regulations, C.R.C., c. 963, or any previous regulations made under the Indian Act respecting dispositions of oil or gas on Indian lands; (ancien règlement)

lease

lease means a lease of oil or gas rights granted under section 10 or a lease of oil or gas rights that is deemed, pursuant to section 5 of the Act, to be subject to these Regulations; (bail)

marketable gas

marketable gas means gas, consisting mainly of methane, that meets industry or utility specifications for use as a domestic, commercial or industrial fuel or as an industrial raw material; (gaz commercialisable)

operator

operator means a person who is engaged in an activity related to the exploitation of oil or gas on Indian lands, including a person who is acting on behalf of, or as an employee or agent of, a contract holder; (exploitant)

paying quantity

paying quantity means

  • (a) in respect of a well that has been drilled but not completed and equipped, an anticipated output from the well of a quantity of oil or gas that would reasonably warrant incurring the completion and equipping costs of the well, and

  • (b) in respect of a well that has been completed for the taking of production, an anticipated output from the well of a quantity of oil or gas that would reasonably warrant the taking of production from the well; (quantité rentable)

permit

permit means a permit in respect of oil and gas rights granted under section 10 or a permit that is deemed, pursuant to section 5 of the Act, to be subject to these Regulations; (permis)

person

person means a corporation or an individual who is at least 18 years of age; (personne)

pool

pool means a natural underground reservoir that appears to contain an isolated accumulation of oil or gas or of both; (gisement)

pooling

pooling means the combining of oil or gas rights for the purpose of forming a spacing unit; (mise en commun)

project

project means a part of one or more pools that is within the area of an operation undertaken in accordance with a plan approved in writing by the Executive Director pursuant to section 42; (chantier)

right of entry

right of entry means a right to enter and use surface land; (droit d’entrée)

right-of-way

right-of-way means an easement in land, or a right to cross over land, that is granted under section 27 or that is deemed, pursuant to section 5 of the Act, to be subject to these Regulations; (droit de passage)

service well

service well means a well that is operated for observation, fluid injection or disposal purposes; (puits de service)

spacing unit

spacing unit means an area that is designated as such by a provincial authority that is responsible for the drilling for, or production of, oil or gas on non-Indian lands; (unité d’espacement)

surface lease

surface lease means a right of exclusive use and occupation of land that is granted under section 27 or that is deemed, pursuant to section 5 of the Act, to be subject to these Regulations; (bail de superficie)

surface rights contract

surface rights contract means a right-of-way, a surface lease or an exploratory licence; (contrat de droits de superficie)

unit

unit means a part of one or more pools that is within the area of a unit operation; (unité)

unit operation

unit operation means an operation that is undertaken in accordance with a plan for combining the interests of all owners of a common source of oil or gas in a field or pool, or in a part thereof, so that the operation may be conducted as if there were only one operator and one tract. (exploitation collective)

Delegation of Authority

  •  (1) The band council may, by resolution in writing, delegate

    • (a) to the Executive Director, in whole or in part, the authority to act on its behalf for the purposes of these Regulations; or

    • (b) to any person the authority to act on its behalf in respect of subsection 10(4), 38(2) or 47(1).

  • (2) The Executive Director may, in writing, delegate to an employee of Indian Oil and Gas Canada any of the powers, duties and functions of the Executive Director under these Regulations.

Contract Terms and Conditions

 It is a condition of every contract that the operator will comply with

  • (a) the applicable provisions of the Indian Act and any applicable orders and regulations made under that Act;

  • (b) these Regulations and any directions made pursuant thereto; and

  • (c) unless otherwise agreed to by the Minister and specified in the contract, all provincial laws applicable to non-Indian lands that relate to the environment or to the exploration for, or development, treatment, conservation or equitable production of, oil and gas and that are not in conflict with the Act or these Regulations.

  •  (1) Every exploratory licence is subject to rights granted

    • (a) under a surface lease or right-of-way; or

    • (b) in respect of the exploration for, or production of, minerals.

  • (2) Every permit and lease is subject to the right of the holder of an exploratory licence to conduct exploratory work in, or the right of another permittee or lessee to work through, the permit or lease area.

 
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