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• 34 (1) Where the band council and the Executive Director jointly determine that there may be production or drainage of oil or gas from a permit or lease area by a well outside that area, the Executive Director, in consultation with the band council, may, by notice in writing, direct the permittee or lessee

  • (a) to commence drilling, within 90 days after the notice or such longer period as is specified in the notice, one or more wells into the zone or formation from which the production or drainage may be occurring and thereafter to continuously and diligently work to place those wells on production; or

• (2) The Executive Director may direct a permittee or lessee referred to in subsection (1) to submit a development and production plan in respect of the permit or lease area to the Executive Director, in the form specified in the notice, within 90 days after receipt of the notice or within such longer period as may be specified in the notice.

• (3) On receipt of a development and production plan submitted pursuant to subsection (2), the band council and the Executive Director shall jointly consider it and the Executive Director shall forthwith notify the permittee or lessee in writing that the development and production plan

  • (a) is approved as submitted; or

  • (b) is approved subject to such modifications as are specified in the notice.

• (4) A permittee or lessee whose development and production plan is approved pursuant to subsection (3) shall, within 90 days after the approval or within such longer period as may be specified in the approval, complete the development and production of the permit or lease area in accordance with that plan or pay the compensatory royalty referred to in paragraph (1)(b).

• 10 (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.

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• (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

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

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• (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

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

2 In these Regulations,

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)

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)

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)

• 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.

• 24 (1) Except as otherwise specified in a lease or in a permit in respect of which a lease was granted pursuant to section 20, the initial term of a lease granted under subsection 10(1) or 20(1) shall be five years.

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• (8) Where the Executive Director is of the opinion that all or a part of a lease area in respect of which an application for a continuance is made does not meet the requirements of paragraphs (2)(a) to (e) or subsection (5), the Executive Director may, after consulting with the band council, grant a continuance of the term of the lease in respect of that area for such a period and on such terms and conditions as the Executive Director may specify in writing for the purpose of giving the lessee an opportunity to obtain and submit to the Executive Director additional information in support of the application.

• (9) On receipt of any additional information submitted pursuant to subsection (8), the Executive Director shall consider the information and notify the lessee in writing as to whether the term of the lease in respect of the lease area referred to in that subsection qualifies for continuance.

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• (11) Notwithstanding anything in this section, the Executive Director may, with the approval of the band council, by agreement with the lessee, extend the term of a lease in respect of all or a part of the lease area that does not meet the requirements of paragraphs (2)(a) to (e) and subsection (5), on such terms and conditions as are specified in the agreement, for a period not exceeding five years.