An Act to regulate interests in petroleum in relation to frontier lands, to amend the Oil and Gas Production and Conservation Act and to repeal the Canada Oil and Gas Act
Marginal note:Short title
2 In this Act,
- call for bids
call for bids means a call for bids made in accordance with section 14; (appel d’offres)
- commercial discovery
commercial discovery means a discovery of petroleum that has been demonstrated to contain petroleum reserves that justify the investment of capital and effort to bring the discovery to production; (découverte exploitable)
- commercial discovery area
commercial discovery area means, in relation to a declaration of commercial discovery made pursuant to subsection 35(1) or (2), those frontier lands described in the declaration; (périmètre de découverte exploitable)
- Crown reserve lands
Crown reserve lands means frontier lands in respect of which no interest is in force; (réserves de l’État)
- former exploration agreement
former exploration agreement means an exploration agreement under the Canada Oil and Gas Land Regulations; (ancien accord d’exploration)
- former lease
former lease means an oil and gas lease under the Canada Oil and Gas Land Regulations; (ancienne concession)
- former permit
former permit means an exploratory permit under the Canada Oil and Gas Land Regulations; (ancien permis)
- former special renewal permit
former special renewal permit means a special renewal permit under the Canada Oil and Gas Land Regulations; (ancien permis spécial de renouvellement)
- frontier lands
frontier lands means lands that belong to Her Majesty in right of Canada, or in respect of which Her Majesty in right of Canada has the right to dispose of or exploit the natural resources, and that are situated in
(a) that part of the onshore that is under the administration of a federal minister,
(c) Sable Island,
(d) the submarine areas in that part — of the internal waters of Canada or the territorial sea of Canada — that is not situated
(i) in a province other than the Northwest Territories, or
(ii) in that part of the onshore that is not under the administration of a federal minister, or
(e) the continental shelf of Canada,
but does not include the adjoining area, as defined in section 2 of the Yukon Act; (terres domaniales)
gas means natural gas and includes all substances, other than oil, that are produced in association with natural gas; (gaz)
holder or interest holder means, in respect of an interest or a share therein, the person indicated, in the register maintained pursuant to Part VIII, as the holder of the interest or the share;
interest means any former exploration agreement, former lease, former permit, former special renewal permit, exploration licence, production licence or significant discovery licence; (titre)
- interest owner
interest owner means the interest holder who holds an interest or the group of interest holders who hold all of the shares in an interest;
(a) in relation to any lands in respect of which the Minister of Natural Resources has administrative responsibility for the natural resources therein, the Minister of Natural Resources, and
(b) in relation to any lands in respect of which the Minister of Northern Affairs has administrative responsibility for the natural resources therein, the Minister of Northern Affairs; (ministre)
(a) crude oil, regardless of gravity, produced at a well head in liquid form, and
(b) any other hydrocarbons, except coal and gas, and, without limiting the generality of the foregoing, hydrocarbons that may be extracted or recovered from deposits of oil sand, bitumen, bituminous sand, oil shale or from any other types of deposits on the surface or subsurface or the seabed or its subsoil of any frontier lands; (pétrole)
onshore has the same meaning as in section 2 of the Northwest Territories Act; (région intracôtière)
petroleum means oil or gas; (hydrocarbures)
(a) in the case of a form or the information to be given on a form, prescribed by the Minister, and
(b) in any other case, prescribed by regulations made by the Governor in Council;
share means, with respect to an interest, an undivided share in the interest or a share in the interest held in accordance with section 23; (fraction)
- significant discovery
significant discovery means a discovery indicated by the first well on a geological feature that demonstrates by flow testing the existence of hydrocarbons in that feature and, having regard to geological and engineering factors, suggests the existence of an accumulation of hydrocarbons that has potential for sustained production; (découverte importante)
- significant discovery area
significant discovery area means, in relation to a declaration of significant discovery made pursuant to subsection 28(1) or (2), those frontier lands described in the declaration. (périmètre de découverte importante)
- R.S., 1985, c. 36 (2nd Supp.), s. 2
- 1993, c. 28, s. 78
- 1994, c. 41, s. 13
- 1996, c. 31, s. 58
- 1998, c. 5, s. 13, c. 15, s. 49
- 2014, c. 2, s. 35
- 2019, c. 29, s. 374
Marginal note:Aboriginal rights
3 Nothing in this Act shall be construed so as to abrogate or derogate from any existing aboriginal or treaty rights of the aboriginal peoples of Canada under section 35 of the Constitution Act, 1982.
Manner of Giving Notices
Marginal note:Giving notice
4 Where a notice is required to be given under this Act or the regulations, it shall be given in such form and manner as may be prescribed and shall contain such information as may be prescribed.
- R.S., 1985, c. 36 (2nd Supp.), s. 4
- 1992, c. 1, s. 144(F)
Application of Act
5 This Act applies to all frontier lands.
Marginal note:Binding on Her Majesty
6 This Act is binding on Her Majesty in right of Canada or a province.
Designations and Appointments
7 The Minister may designate any person to exercise the powers and perform the duties and functions under this Act that are specified in the designation and on that designation that person may exercise those powers and shall perform those duties and functions subject to such terms and conditions, if any, as are specified in the designation.
Marginal note:Advisory bodies
8 (1) The Minister may from time to time appoint and fix the terms of reference of such advisory bodies as the Minister considers appropriate to advise the Minister with respect to such matters relating to the administration or operation of this Act or the Canada Oil and Gas Operations Act as are referred to them by the Minister.
(2) The members of any advisory body appointed under subsection (1) may be paid for their services such remuneration and expenses as are fixed by the Governor in Council.
- R.S., 1985, c. 36 (2nd Supp.), s. 8
- 1992, c. 35, s. 34
Marginal note:Appointment of representative
9 (1) Where an interest owner consists of two or more holders, those holders shall, in the manner prescribed, appoint one of their number to act as representative of the interest owner for the purposes of this Act, but the holders may, with the consent of the Minister, appoint different representatives for different purposes.
Marginal note:Designation of representative
(2) In the event that an interest owner consisting of two or more holders fails to appoint a representative for any of the purposes of this Act, the Minister may designate one of those holders as the representative of the interest owner for those purposes.
Marginal note:Acts or omissions of representative binding
(3) An interest owner is bound by the acts or omissions of the appointed or designated representative of that interest owner with respect to any matter to which the authority of the representative extends.
Marginal note:Duties of representative
(4) A representative of an interest owner appointed or designated under this section shall perform the duties in respect of the purposes for which he has been appointed or designated, and any operating agreement or other similar arrangement in force in respect of the relevant interest of that interest owner stands varied or amended to the extent necessary to give effect to this subsection.
General Rules Respecting Interests
Marginal note:No issuance of interests in respect of certain lands
10 (1) The Governor in Council may, by order, for such purposes and under such conditions as may be set out in the order, prohibit the issuance of interests in respect of such frontier lands as are specified in the order.
(2) Where any frontier lands are, pursuant to the Territorial Lands Act, withdrawn from disposition or set apart and appropriated for any purposes and under any conditions, the issuance of interests in relation to such lands is deemed to be prohibited pursuant to subsection (1) for those purposes and under those conditions.
Marginal note:Surrender of interests
11 (1) An interest owner may, in the manner prescribed and subject to any requirements that may be prescribed respecting the minimum geographical area to which an interest may relate, surrender an interest in respect of all or any portion of the frontier lands subject to the interest.
Marginal note:Debts due to Her Majesty not affected
(2) Any liability of an interest owner or interest holder to Her Majesty in right of Canada, either direct or by way of indemnity, that exists at the time of any surrender under subsection (1) is not affected by the surrender.
Marginal note:Orders to prohibit activities in certain circumstances
12 (1) The Governor in Council may, by order, prohibit any interest owner or any other person from commencing or continuing any work or activity authorized under the Canada Oil and Gas Operations Act on the frontier lands, or any portion of them, if the Governor in Council considers that it is in the national interest to do so or that it is necessary in any of the following circumstances:
(a) a disagreement with any government concerning the location of an international boundary;
(b) an environmental or social problem of a serious nature;
(c) dangerous or extreme weather conditions affecting the health or safety of people or the safety of equipment; or
(d) the designation of a marine protected area under subsection 35(3) or 35.1(2) of the Oceans Act.
Marginal note:Suspension of requirements in relation to interest
(2) Where, by reason of an order made under subsection (1), any requirement in relation to an interest cannot be complied with while the order is in force, compliance with the requirement is suspended until the order is revoked.
Marginal note:Extension of term of interest
(3) Notwithstanding any other provision in this Act, the term of an interest that is subject to an order under subsection (1) and the period provided for compliance with any requirement in relation to the interest are extended for a period equal to the period that the order is in force.
Marginal note:Relieving authority not affected
(4) Nothing in this section affects the authority of the Minister to relieve a person from any requirement in relation to an interest or under this Act or the regulations.
Marginal note:Negotiations for compensation
12.1 (1) The Minister may enter into negotiations with an interest owner, in respect of all or any portion of the frontier lands subject to the interest, for a determination of any compensation that may be granted to the interest owner for the surrender of the interest to Her Majesty in right of Canada, if
(a) the interest is located in a marine protected area that is designated under the Oceans Act or in an area of the sea that, in the opinion of the Minister of Fisheries and Oceans, may be designated as a marine protected area under that Act; and
(b) the Minister of Fisheries and Oceans recommends that the interest be cancelled to give effect to the purpose of the designation or proposed designation of the marine protected area under section 35 of the Oceans Act.
(2) For the purposes of subsection (1), the Minister shall send a notice to the interest owner informing the interest owner of the Minister’s intent to enter into negotiations with the interest owner within the period specified in the notice.
Marginal note:Power to cancel
(3) The Minister may, by order, cancel the interest in respect of all or any portion of the frontier lands, if
(a) the interest owner did not enter into negotiations with the Minister within the period specified in the notice sent to the interest owner;
(b) in the opinion of the Minister, the compensation to be granted to the interest owner for the surrender of the interest has not been determined during the negotiations within a reasonable time; or
(c) in the opinion of the Minister, the negotiations do not result in the surrender of the interest by the interest owner within a reasonable time even though the compensation to be granted to the interest owner has been determined during the negotiations.
Marginal note:Amount of compensation
(4) The Minister shall, in the order, specify the amount of the compensation to be granted to the interest owner in respect of the cancellation of the interest.
Marginal note:Interest becomes reserve lands
(5) If the interest referred to in subsection (1) is surrendered or cancelled in respect of all or any portion of the frontier lands, the lands or portions of lands that are subject to the interest become Crown reserve lands.
Marginal note:Return of deposit
(6) If the interest referred to in subsection (1) is surrendered or cancelled, any deposit balance with respect to the interest held by Her Majesty in right of Canada on behalf of the interest owner shall be returned to the interest owner, less any liability, either direct or by way of indemnity, owed by the interest owner to Her Majesty in right of Canada at the time of the surrender or cancellation.
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