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

Regulations are current to 2017-09-27

Exploratory Licence

  •  (1) Every person who proposes to conduct exploratory work on Indian lands, including land in a permit or lease area, shall first obtain an exploratory licence.

  • (2) An applicant for an exploratory licence shall submit an application, in a form approved by the Executive Director, to the Executive Director and deliver a copy thereof to the band council.

  • (3) An application submitted pursuant to subsection (2) shall contain

    • (a) a statement that certifies that the applicant has been granted permission by a provincial authority to conduct exploratory work in the province, if such permission is required by the law of that province to conduct exploratory work on non-Indian lands;

    • (b) a description of the nature of the work to be performed by the applicant, the area to be covered, the names of any contractors to be engaged, the equipment to be used, the approximate number of employees to be employed and the anticipated duration of the proposed operations; and

    • (c) an undertaking by the applicant to do the following if the licence is granted:

      • (i) to pay, on completion of the exploratory work, an amount equivalent to the compensation received by other licensors in the locality for similar operations conducted on lands of similar area and character,

      • (ii) to pay compensation for any damage that is caused by the exploratory work, including surface and crop damage,

      • (iii) to repair and recondition any roads or road allowances that are damaged as a result of the exploratory work as soon as possible after the damage occurs,

      • (iv) to mark the location of, and to identify, every test hole or shot hole drilled under the exploratory licence and to plug all holes that collapse or emit gas, water or other substances during or after the exploratory work, and

      • (v) to submit to the band council and to the Executive Director, within 90 days after the completion of the exploratory work,

        • (A) a clear mylar sepia and a legible paper copy of a map, on a scale of not less than 1:50 000, that shows the location and ground elevation of every vibrating equipment station, shot hole and test hole,

        • (B) a copy of a statement that contains summaries of geologists’ and drillers’ logs, indicating depths and thicknesses of formations bearing water, sand, gravel, coal and other minerals of possible economic value, and

        • (C) a copy of a statement that contains all of the technical information obtained from the drilling of each test hole.

  • (4) The Executive Director may, with the approval of the band council, approve an application for an exploratory licence and, on payment by the applicant of the fee set out in Schedule II, issue an exploratory licence to the applicant for such a period and on such terms and conditions as may be agreed on by the Executive Director, the applicant and the band council.

  •  (1) The holder of an exploratory licence may conduct exploratory work in accordance with the terms of the exploratory licence.

  • (2) An operator may exercise rights under an exploratory licence, permit or lease in an area that is subject to another contract if the exercise of those rights does not interfere with the operations of the holder of that contract.

 Unless expressly authorized by an exploratory licence, the holder of an exploratory licence may not drill within the exploratory licence area to a depth of more than 50 m.

  •  (1) Every lessee or permittee shall submit a report on exploratory work carried out in the permit or lease area to the Executive Director within 90 days after the continuance of a lease under section 24, the expiration of a permit or lease or the conversion of a permit to one or more leases.

  • (2) Every report submitted pursuant to subsection (1) shall conform to provincial exploratory work report requirements and shall include, in addition to the material referred to in subparagraph 6(3)(c)(v),

    • (a) a copy of every aerial photograph taken during the period of exploration;

    • (b) two copies of a geological report on the area investigated, including stratigraphic data and structural and isopach maps on a scale of not less than 1:50 000; and

    • (c) a geophysical report on the area investigated, including

      • (i) if a gravity survey has been conducted, two legible copies of a map, on a scale of not less than 1:50 000, that shows the location and ground elevation of each station, the final corrected gravity value at each station and gravity contour lines drawn on that value with a contour line interval of 2.5 µm/sec2 or less,

      • (ii) if a seismic survey has been conducted,

        • (A) a mylar sepia and two legible paper copies of a map, on a scale of not less than 1:50 000, that shows contour lines drawn on the corrected time value at each source point for all significant reflecting horizons investigated, with a contour line interval of not more than 10 ms,

        • (B) a mylar sepia and two legible prefolded paper copies for each stacked seismic cross-section (including migrated displays if such processing has been conducted), with all significant reflecting horizons clearly labelled at both ends on one of the copies, and

        • (C) two microfilm copies of all basic recording data, including survey notes, chaining notes and observer reports, and

      • (iii) if a magnetic survey has been conducted, two legible copies of a map of the area, on a scale of not less than 1:50 000, that shows the location of the flight lines or grid stations and magnetic contour lines, with a contour line interval of not more than 5 Nt.

  • (3) Notwithstanding subsection (2), the Executive Director may, in writing, authorize a person to include in a report submitted pursuant to that subsection

    • (a) maps at contour line intervals or scales other than those specified in that subsection; or

    • (b) information other than that specified in that subsection.

  • (4) Any information that is submitted to the Executive Director pursuant to subsections (2) and (3) shall be made available by the Executive Director to the band council.

  • (5) In addition to any information submitted pursuant to this section, the Executive Director may, at the office of the permittee or lessee, review any paper or magnetic digital display of raw data, interpreted seismic data and any information that is obtained as a result of exploratory work carried out on the permit or lease area, after the greater of

    • (a) 90 days after the expiration or continuance of a lease or the conversion of a permit to one or more leases, and

    • (b) one year after the completion of the seismic field work.

Granting of Permits and Leases

  •  (1) The Executive Director may, with the approval of the band council and on payment of the fee set out in Schedule II, grant a permit or lease, or an option to acquire a permit or lease, in respect of oil and gas rights in Indian lands on such terms and conditions as the band council and the Executive Director jointly consider advisable.

  • (2) The grant of a permit, lease or option under subsection (1) shall be preceded by

    • (a) a public call for tenders;

    • (b) a call for proposals; or

    • (c) direct negotiations.

  • (3) A call for tenders made pursuant to paragraph (2)(a) shall be made jointly by the band council and the Executive Director by public advertisement, or by such other method as they consider advisable, in respect of each parcel of land for which a permit, lease or option is to be granted and shall

    • (a) set out the terms and conditions under which the permit or lease is to be granted;

    • (b) state that the cash bonus price will be the only competitive element that will be considered in evaluating the tenders submitted; and

    • (c) state that the tender is subject to such other terms and conditions as are set out in these Regulations.

  • (4) On receipt of tenders submitted pursuant to a call for tenders made under paragraph (2)(a), the Executive Director and the band council shall

    • (a) jointly accept the highest tender; or

    • (b) reject all tenders.

  • (5) A call for proposals made pursuant to paragraph (2)(b) shall be made jointly by the band council and the Executive Director by public advertisement, or by such other method as they consider advisable, and shall

    • (a) set out any terms and conditions, other than those set out in these Regulations, to which the proposals are subject;

    • (b) specify the competitive elements that will be considered in evaluating and accepting the proposals;

    • (c) state that the proposals that are received will form the basis for negotiation of a permit or lease with the band council and with the Executive Director; and

    • (d) state that any terms and conditions not specifically negotiated shall be as set out in these Regulations.

  • (6) A permit, lease or option granted under subsection (1) shall include the signatures of a quorum of the band council.

 
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