28. Notwithstanding subsection 27(1), where the Executive Director has decided to grant a surface lease or right-of-way pursuant to subsection 27(4), the Executive Director may, in writing, authorize the commencement of surface operations prior to the issuance of the surface lease or right-of-way.

29. Where the Executive Director determines that surface rights in respect of all or a part of the area of a surface lease or right-of-way are no longer required for the extraction, transportation or treatment of oil or gas, the Executive Director may, with the approval of the band council, terminate the surface lease or right-of-way in respect of that area by notice in writing to the contract holder and may direct the contract holder to conduct reclamation and abandonment operations in respect of any well or surface facility within that area.

• 30. (1) Where in negotiations under subparagraphs 27(2)(b)(i) to (iii) an agreement cannot be reached in respect of the rent or compensation referred to in those subparagraphs, at the request of the band council, the applicant or any band member in lawful possession of the land, the Minister may determine the rent or compensation.

• (2) A determination made under subsection (1) shall set out the terms and conditions of the surface lease on which the determination was based and may provide for periodic reviews of the rent or compensation determined and the manner in which further reviews are to be conducted.

• (3) Where an agreement cannot be reached in a renegotiation of rent under subsection 27(6), at the request of the band council, the applicant or any band member in lawful possession of the land, the Minister may determine the rent.

31. Notwithstanding sections 6 and 27, with the permission of the band council and any band member in lawful possession of the land in respect of which surface rights are required, a person may enter on that land to locate proposed facilities or conduct surveys or for any other purpose necessary for the completion of an application under that section.

• 32. (1) Notwithstanding subsection 27(1), where an applicant

  • (a) has applied for surface rights pursuant to section 27,

  • (b) requests a right of entry onto the land in advance of the granting of a surface lease, and

  • (c) posts security in an amount that, in the opinion of the Executive Director, is sufficient to compensate for the use of the land before the granting of the surface lease and for any potential damages,

  the Executive Director may grant to that applicant a right of entry onto the land for such time, in such a manner and on such terms and conditions as the Executive Director may in writing specify.

• (2) The security posted under paragraph (1)(c) shall be applied to payments agreed on pursuant to section 27 or determined pursuant to section 30, or to payment for the use of the land, on the same basis as that set out in subparagraph 27(2)(b)(i).

• (3) The Executive Director shall return to the applicant any portion of the security that is in excess of the amount applied to payments under subsection (2).

• 33. (1) Except as otherwise provided in a special agreement under subsection 4(2) of the Act, a lessee shall pay a royalty on oil and gas obtained from or attributable to a lease area in the preceding month, in an amount calculated in accordance with Schedule I.

• (2) A lessee shall pay a royalty referred to in subsection (1) or set out in a special agreement under subsection 4(2) of the Act on or before the twenty-fifth day of each month or at such other intervals as are specified in the lease.

• (3) At the time a royalty is paid pursuant to subsection (1), or within such a period thereafter as the Executive Director may permit, a lessee shall submit to the band council and to the Executive Director a report and a financial statement, in such form as the Executive Director may require.

• (4) Subject to subsection (5), every sale of oil or gas that is obtained from or attributable to a lease area shall include the sale on behalf of the Crown of any oil or gas that is the royalty payable under this section.

• (5) At any time after giving reasonable notice in writing to the operator and giving due consideration to any obligations that the operator may have in respect of the sale of oil or gas, the Executive Director may, with the approval of the band council, direct that all or a part of the oil or gas that is a royalty payable under this section be paid in kind for a specified or indefinite period or until the Executive Director directs otherwise.

• (6) Where the Executive Director determines that oil or gas that is a royalty payable under this section was sold at a price that was less than the fair market value at the time and place of production, the Executive Director, in consultation with the band council, may direct that compensation be paid, at the time that the next royalty payment is paid pursuant to subsection (1), in an amount that is equal to the royalty on the difference between the price at which the oil or gas was sold and its fair market value.