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Canada Oil and Gas Operations Act (R.S.C., 1985, c. O-7)

Act current to 2020-06-17 and last amended on 2020-02-26. Previous Versions

PART IIProduction Arrangements (continued)

Straddling Resources — Inuvialuit Settlement Region (continued)

Exploitation of Straddling Resources (continued)

Marginal note:Regulations — Inuvialuit lands

 The Governor in Council may, if the Inuvialuit Regional Corporation agrees in writing under subsection 3.3(b) of the Agreement to be bound by a provision of Article 5 of the Agreement, make regulations adapting the definitions Agreement, Inuvialuit Settlement Region and straddling resource in section 2 and sections 48.01 to 48.095 accordingly.

  • 2014, c. 2, s. 25

Transboundary Pools or Fields

Delineation

Marginal note:Appropriate regulator

 For the purposes of sections 48.11 to 48.14, the appropriate regulator is any regulator that has jurisdiction in an area

  • (a) adjoining the portion of the perimeter where the drilling took place or where an accumulation of oil or gas exists; or

  • (b) into which there is reason to believe that, based on the data obtained from any drilling, an accumulation of oil or gas extends.

  • 2015, c. 4, s. 24

Marginal note:Information

  •  (1) If an exploratory well, as defined in subsection 101(1) of the Canada Petroleum Resources Act, is drilled in the perimeter, the Commission of the Canadian Energy Regulator shall provide each appropriate regulator, within the prescribed time and in the prescribed manner, with any information in its possession, including any prescribed information, that is relevant to the determination of whether a pool is transboundary and its delineation.

  • Marginal note:Additional information

    (2) The Commission of the Canadian Energy Regulator shall, on request, provide the regulator with any additional information in its possession, that is relevant to the determination of whether a pool is transboundary and its delineation.

  • 2015, c. 4, s. 24
  • 2019, c. 28, s. 142

Marginal note:Notice — as soon as feasible

  •  (1) If the data obtained from any drilling in the perimeter provides sufficient information for the Commission of the Canadian Energy Regulator to determine whether a pool exists, the Commission shall notify each appropriate regulator as soon as feasible of its determination.

  • Marginal note:Notice — after three drillings

    (2) If no notice is given under subsection (1), the Commission of the Canadian Energy Regulator shall, no later than one year after the day on which it receives data from the last of three drillings of the same geological feature in the perimeter, notify each appropriate regulator of its determination or that there is insufficient information to make a determination based on the data from those drillings.

  • Marginal note:Notice — transboundary pool

    (3) If the Commission of the Canadian Energy Regulator determines that a pool exists, the Commission shall also specify in the notice whether or not there is, in its opinion, reason to believe that the pool is transboundary.

  • Marginal note:Reasons

    (4) The Commission of the Canadian Energy Regulator shall provide each appropriate regulator and the Minister with the reasons for its determination and opinion.

  • 2015, c. 4, s. 24
  • 2019, c. 28, s. 142

Marginal note:Notice from Canadian Energy Regulator

  •  (1) If the Canadian Energy Regulator receives a notice from a regulator indicating the regulator’s determination as to whether a pool exists in an area adjoining the perimeter and, if applicable, whether there is reason to believe the pool extends into the perimeter, the Commission of the Canadian Energy Regulator shall, within 90 days after the day on which the notice is received, inform the regulator of its agreement or disagreement with the content of the notice.

  • Marginal note:Reasons

    (2) If the Commission of the Canadian Energy Regulator disagrees with the content of the notice, it shall provide the regulator with the reasons for its disagreement.

  • 2015, c. 4, s. 24
  • 2019, c. 28, s. 136
  • 2019, c. 28, s. 142

Marginal note:Delineation

  •  (1) If, after receiving a notice under section 48.12 or 48.13, the Commission of the Canadian Energy Regulator and the regulator in question agree that a pool exists, the Commission and that regulator shall jointly determine whether that pool is transboundary and, if so, they shall jointly delineate its boundaries.

  • Marginal note:Disagreement

    (2) The Commission of the Canadian Energy Regulator or the regulator may, if they disagree about whether a pool exists, whether the pool is transboundary or its delineation, refer the matter to an expert, no later than 180 days after the day on which the Commission issues a notice under section 48.12, or the regulator issues an equivalent notice.

  • 2015, c. 4, s. 24
  • 2019, c. 28, s. 142

Agreements Relating to Development

Marginal note:Appropriate regulator

 For the purposes of sections 48.16 to 48.27, the appropriate regulator is the regulator that has jurisdiction in an area into which the transboundary pool or field in question extends.

  • 2015, c. 4, s. 24

Marginal note:Joint exploitation agreement

 The Minister and the appropriate regulator may enter into a joint exploitation agreement providing for the development of a transboundary pool or field as a single field. The agreement shall include any matters provided for by regulation.

  • 2015, c. 4, s. 24

Marginal note:Development as a single field

  •  (1) If a joint exploitation agreement has been entered into, the transboundary pool or field may only be developed as a single field. The development of that field is subject to the following agreements having been entered into and subsequently approved under subsection 48.2(2) or 48.23(4):

    • (a) a unit agreement that includes the details referred to in paragraphs 40(2)(a) to (d); and

    • (b) a unit operating agreement that includes the details referred to in paragraphs 40(3)(a) to (e).

  • Marginal note:Joint exploitation agreement prevails

    (2) The joint exploitation agreement prevails over the unit agreement and the unit operating agreement to the extent of any inconsistency between them.

  • 2015, c. 4, s. 24

Marginal note:Intention to start production

  •  (1) If an interest owner — as defined in the Canada Petroleum Resources Act — advises the Minister or the Canadian Energy Regulator, including by way of an application under paragraph 5(1)(b) of this Act or under section 38 of the Canada Petroleum Resources Act, that it intends to start production from a transboundary pool or field, the Minister shall notify the appropriate regulator as soon as feasible of the interest owner’s intention.

  • Marginal note:Referral to expert

    (2) If the Minister and the regulator have attempted to enter into a joint exploitation agreement but have been unsuccessful, the Minister or the regulator may, 180 days after the day on which the Minister gives notice under subsection (1), refer the matter to an expert to determine the particulars of the agreement. They may, however, agree to refer the matter to an expert at any time before the end of those 180 days.

  • 2015, c. 4, s. 24
  • 2019, c. 28, s. 142

Marginal note:Unit agreement

  •  (1) The royalty owners and the working interest owners in a transboundary pool or field that is to be developed as a single field may enter into a unit agreement and, once approved, shall operate their interests in accordance with it, including any amendment to it.

  • Marginal note:Applicable provisions

    (2) Subsections 37(2) and (3) apply to the unit agreement.

  • 2015, c. 4, s. 24

Marginal note:Condition precedent

  •  (1) A unit agreement and unit operating agreement are to be jointly approved by the Minister and the appropriate regulator before an authorization is issued under paragraph 5(1)(b) for a work or activity proposed to be carried on in relation to the development of a transboundary pool or field as a single field.

  • Marginal note:Approval

    (2) The Minister and the appropriate regulator may approve the unit agreement if all the royalty owners and all the working interest owners in the pool or field are parties to it; the Minister and the appropriate regulator may approve the unit operating agreement if all the working interest owners in the pool or field are parties to it.

  • 2015, c. 4, s. 24
 
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