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• 2 (1) In these Regulations,

  Chief

  Chief means the administrator of the Canada Oil and Gas Lands Administration of the Department of Energy, Mines and Resources and of the Department of Indian Affairs and Northern Development; (chef)

  commercial quantity

  commercial quantity means the output of oil or gas from a well that, in the opinion of the Chief, would warrant the drilling of another well in the same area, and in determining that opinion the Chief may consider the costs of drilling and producing and the volume of production; (quantité commerciale)

  development structure

  development structure means any structure, facility or undertaking erected for the purpose of drilling an exploratory well or a development well or erected for the production, gathering, storing, processing, transmission or other handling of oil and gas; (plate-forme d’exploitation)

  extraction plant

  extraction plant means any plant or equipment, other than a well, used for the extraction of oil or other substances produced in association with oil from surface or subsurface deposits of oil sand, bitumen, bituminous sand, oil shale or other deposits from which oil may be extracted; (usine d’extraction)

  gas

  gas means natural gas and includes all other minerals or constituents produced in association therewith, other than oil, whether in solid, liquid or gaseous form; (gaz)

  lessee

  lessee means a person holding an oil and gas lease; (concessionnaire or titulaire de concession ordétenteur de concession)

  oil

  oil means

  • [...]

  • (b) any hydrocarbons except coal and gas, that may be extracted or recovered from surface or subsurface deposits of oil sand, bitumen, bituminous sand, oil shale or other deposits, and

  oil and gas lease

  oil and gas lease means an oil and gas lease granted pursuant to section 54 or 57; (concession de pétrole et de gaz)

  Oil Conservation Engineer

  Oil Conservation Engineer means an officer of the Department or other person designated by the Minister; (ingénieur en conservation du pétrole)

  significant discovery

  significant discovery means a discovery of oil or gas that justifies the drilling of any well or wells in addition to the well or wells in which the discovery was made; (découverte importante)

  well

  well means any opening in the ground that is not a seismic shot hole and that is made, or is in the process of being made, by drilling, boring or any other method,

  • (a) through which oil or gas could be obtained,

  • (b) for the purpose of searching for or obtaining oil or gas,

• (2) For the purpose of these Regulations, a well is deemed

  • (a) to be abandoned on the day that all cement plugs, as required by the Canada Oil and Gas Drilling and Production Regulations, are set to the satisfaction of the Oil Conservation Engineer;

  • (b) to be completed on the day that the well is first placed on steady or intermittent production of oil or gas or both, and appears, in the opinion of the Oil Conservation Engineer, capable of maintaining steady or intermittent production; and

  • (c) to be suspended on the day that drilling or production operations are suspended in a manner approved by the Oil Conservation Engineer but the well is not abandoned or completed.

[...]

• 57 (1) The Minister may grant an oil and gas lease or call tenders for the purchase of an oil and gas lease for Canada lands

  • (a) that have been held under a permit or oil and gas lease, which permit or oil and gas lease has expired, been cancelled or been surrendered;

• (2) All oil and gas lease granted pursuant to this section may be granted upon such terms and conditions as the Minister may order.

• (3) A call for tenders under this section shall

  • [...]

  • (b) state the terms and conditions upon which the tender is called and upon which the oil and gas lease is to be granted.

• (4) Where tenders are called pursuant to this section and

  [...]

  the Minister may dispose of those lands by an oil and gas lease pursuant to this section in such manner and upon such terms as the Minister may determine.

[...]

• 116 (1) Any person who, on August 3, 1977, is a permittee described in paragraph 114(b) and has not been granted an oil and gas lease may, at his option, instead of maintaining his application for a lease under section 54, within 90 days after the day that would have been the next anniversary date of his permit if it had not expired, either

  • (a) withdraw his application for an oil and gas lease and surrender in writing his right to receive the oil and gas lease, whereupon he shall be entitled to be repaid any sums he paid as rental; or

  • (b) withdraw his application for an oil and gas lease and apply instead for a special renewal permit, whereupon he shall be entitled to be repaid any sums he paid as rental except that sum tendered with the lease application in respect of the first year thereof, and the Minister may grant to that person a special renewal permit for such term and subject to such conditions, including the payment of deposits, as the Minister may determine.

• (2) Notwithstanding anything in this section, where a person who applies for a special renewal permit pursuant to paragraph (1)(b) and the Minister have not agreed on the terms and conditions for the special renewal permit within 30 days after the expiry of the period within which Petro-Canada Limited is required to give the notice specified in subsection 121(6) or within 30 days after Petro-Canada Limited gives any such notice, whichever occurs first, that person shall for 30 days thereafter have the right to reinstate his application for an oil and gas lease under section 54 as if it had not been withdrawn and he were still a permittee, whereupon he shall be entitled to be repaid any sums he paid as rental except that sum tendered with the lease application in respect of the first year thereof, and that sum shall be deemed to satisfy all rental obligations under that lease up to the first anniversary date thereof following August 3, 1977.

• (3) Where a person referred to in subsection (2) fails to exercise his right to reinstate his application for an oil and gas lease under section 54, the lands that he held pursuant to the permit referred to in paragraph 114(b) shall be deemed to be surrendered and shall become Crown reserve lands.

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80 Subject to sections 81 and 82, the rental shall be reduced by,

• (a) in the case of an oil and gas lease issued pursuant to section 54, the amount of allowable expenditure made by the lessee prior to the date of the oil and gas lease, on the permit area within which the oil and gas lease is located, in excess of the deposits set out in Schedule II for the periods prior to the date of the oil and gas lease, and

• (b) the amount of expenditure, as determined by the Chief, that has been made by the lessee for exploratory work on the lease area after the date of the oil and gas lease and before commercial exploitation begins,

[...]

• 70 (1) Where Canada lands have been held under a permit or an oil and gas lease, which permit or oil and gas lease or any part thereof has expired, been cancelled or been surrendered, the Minister shall publish in the Canada Gazette a notice of the expiration, cancellation or surrender of that permit or oil and gas lease.

• (2) The notice referred to in subsection (1) shall state

  • (a) the number of the permit or oil and gas lease; and

  • (b) whether the permit or oil and gas lease has expired, been cancelled or been surrendered.