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

Regulations are current to 2017-11-20

Survey Plans

  •  (1) Every survey plan that is required under these Regulations shall

    • (a) be prepared in accordance with the requirements of the Canada Lands Surveys Act and any instructions issued by the Surveyor General of Canada for such surveys;

    • (b) be subject to review by the Surveyor General of Canada; and

    • (c) be recorded in the Canada Lands Surveys Records.

  • (2) If a dispute arises under a contract regarding the location of a well, facility or boundary, the Executive Director, in consultation with the band council, may in writing direct the contract holder to promptly arrange for a survey to be made.

  • 1998, c. 14, s. 101(F).

Pooling, Projects and Unit Operations

  •  (1) A permittee or lessee may, with the approval in writing of the Executive Director, pool a permit or lease area, a portion of a permit or lease area or one or more geological zones that underlie a permit or lease area with any other oil or gas rights, including oil or gas rights that are not governed by these Regulations.

  • (2) The oil or gas that is attributable to a lease area is

    • (a) where the lease area is included in a spacing unit, the portion of production of wells in the spacing unit that is equal to the portion that the lease area constitutes of the total area of the spacing unit; or

    • (b) where a compulsory pooling agreement is in effect, the portion of production determined on the basis set out in the compulsory pooling agreement.

  • (3) The Executive Director shall advise the band council of any lease areas pooled pursuant to subsection (1).

  •  (1) The Executive Director may, with the approval of the band council, in writing and on such terms and conditions as the Executive Director may consider advisable, authorize the inclusion of one or more lease areas, or portions thereof, in a unit or project that is established for the development of all or part of a field or pool.

  • (2) The portion of the production from a unit or project that is allocated to a lease area included in a unit or project pursuant to subsection (1) shall, for the purposes of these Regulations, be deemed to be produced from that lease area.

  • (3) Under an authorization made under subsection (1), a lessee may carry out any activities in a unit or project that are consistent with the effective operation of the unit or project, including measures that are designed to enhance recovery, such as the flooding, cycling and injecting of water or other substances.

 Every agreement that authorizes pooling, projects, units or unit operations and that was entered into under the former Regulations continues according to its terms.

Surrender of a Contract

  •  (1) A contract holder who is not in default under the contract, these Regulations or a direction made under these Regulations may at any time, by notice in writing sent to the band council and to the Executive Director, surrender the contract rights and interests in respect of

    • (a) a permit or lease area;

    • (b) part of a permit or lease area, if the boundaries of the remainder are acceptable to the Executive Director; or

    • (c) with the approval in writing of the Executive Director, all or a part of the area of a surface lease.

  • (2) Approval of the surrender of contract rights or interests in respect of a surface lease is subject to

    • (a) inspection by the band council of the surface of the area to be surrendered and confirmation by it that the restoration of the surface is satisfactory; and

    • (b) such terms as the Executive Director may specify as conditions of the approval.

  • (3) Where rights and interests in respect of a part of a contract area are surrendered, the Executive Director shall amend the description of the contract area in the contract accordingly.

  • (4) No portion of any rental fee paid in advance shall be refunded to a contract holder on the surrender of any rights or interests in the contract.

  • (5) Where rights and interests in respect of a part of a contract area are surrendered, the total of the annual rental fee and any other consideration that is payable for the remainder of the contract area shall not be less than $100.

  • (6) A notice under subsection (1) shall be in such form as the Executive Director may prescribe.

Suspension of Operation

 Where the Executive Director determines that an operation that is conducted under these Regulations presents a danger to persons or property or may waste oil or gas or disturb or damage a reservoir, the surface or the environment or that an emergency exists, the Executive Director may, in writing and, if possible, with prior notice to the band council, direct the operator to suspend any operations or to take such remedial action as the Executive Director considers necessary.

Cancellations

  •  (1) Where a contract holder has not paid an amount due under a contract and has not surrendered the contract pursuant to section 44 within 30 days after the amount became due, or where the Executive Director determines that a contract holder has failed to comply with the contract or with these Regulations, the Executive Director may direct the contract holder to take action immediately to remedy the situation.

  • (2) Where the Executive Director determines that a contract holder has not commenced to remedy a situation within 30 days after the date of receipt of a direction given under subsection (1) or, having commenced to remedy the situation within that period, has failed to continue to diligently remedy the situation, the Executive Director may cancel the contract.

  • (3) The cancellation of a contract under subsection (2) does not relieve the contract holder from any liabilities arising under the contract, including any liability for abandonment and reclamation costs.

  • (4) The Executive Director shall advise the band council of any directions given, or cancellations made, under this section.

Inspections

  •  (1) The band council or the Executive Director may, at any reasonable time,

    • (a) inspect the wells, plant, equipment and operations of an operator that are related to production from a contract area;

    • (b) examine the records of an operator at the operation location or at the office of the operator;

    • (c) attend at the drilling, testing and completion of any well that is related to a contract area; or

    • (d) attend at any location on Indian lands where exploratory work is being conducted pursuant to these Regulations.

  • (2) Where facilities for the processing of oil and gas are located outside the contract area and are operated by a person other than the contract holder, the contract holder shall make all reasonable efforts to ensure that the band council and the Executive Director have access to those facilities for inspection purposes.

Confidential Information

  •  (1) Subject to the Access to Information Act, except as otherwise provided in this section, the band council and the Executive Director shall, for a period in keeping with the practice of the province in which the work is performed or for any other period agreed to by the contract holder, the Executive Director and the band council, keep confidential information that is contained in a report submitted by a contract holder pursuant to these Regulations other than information in respect of

    • (a) a contract that has been terminated or has expired; or

    • (b) any part of the area of a contract that has been surrendered.

  • (2) Information in a report in respect of a contract or area referred to in paragraph (1)(a) or (b) shall not be released before the earlier of

    • (a) one year after the date on which the contract terminated or expired or the area was surrendered, as the case may be, and

    • (b) the expiration of any applicable period established in accordance with the practice of the province in which the work is performed.

  • (3) Subject to subsections (4) and (5), seismic information that is specific to a permit or lease area and that is submitted pursuant to subparagraph 9(2)(c)(ii) by, or on behalf of, a contract holder or reviewed pursuant to subsection 9(5) shall be kept confidential by the band council and by the Executive Director until the earlier of

    • (a) either

      • (i) where the permit has not been converted to a lease under section 20, the expiration of the permit, or

      • (ii) in any other case, the expiration of the lease or of any lease into which the permit was converted under section 20, and

    • (b) five years after completion of the seismic field work.

  • (4) Interpretations of seismic data, including maps, that are provided by the contract holder shall not be released without the consent of the contract holder.

  • (5) Information contained in a report provided by the contract holder pursuant to these Regulations may be released at any time with the consent of the contract holder.

  • (6) Any information that is obtained under section 47 shall be kept confidential, except where its disclosure is necessary to ensure compliance with the contract or these Regulations.

 
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