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Canada Oil and Gas Land Regulations (C.R.C., c. 1518)

Regulations are current to 2020-06-17

Canada Oil and Gas Land Regulations

C.R.C., c. 1518



Regulations Respecting the Administration and Disposition of Oil and Gas Belonging to Her Majesty in Right of Canada Under all Lands Forming Part of Canada but not Within any Province

Short Title

 These Regulations may be cited as the Canada Oil and Gas Land Regulations.


  •  (1) In these Regulations,

    allowable expenditure

    allowable expenditure means the expenditure referred to in section 43; (dépenses admissibles)


    arbitrator means the arbitrator referred to in section 97; (arbitre)


    bond means bond or other securities of or guaranteed by the Government of Canada; (titre or garantie)

    Canada lands

    Canada lands means

    • (a) territorial lands as defined in the Territorial Lands Act, and

    • (b) public lands as defined in the Public Lands Grants Act for the sale, lease or other disposition of which there is no provision in the law,

    and includes land under water; (terres du Canada)


    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)

    Crown reserve lands

    Crown reserve lands means Canada lands in respect of which no interest granted or issued by or pursuant to these Regulations is in force and includes the submerged lands described in Schedule IV; (terres de réserve de la Couronne)


    Department means,

    • (a) in respect of Canada lands located in that part of Canada described in Schedule VI, the Department of Indian Affairs and Northern Development, and

    • (b) in respect of Canada lands other than those lands located in that part of Canada described in Schedule VI, the Department of Energy, Mines and Resources; (ministère)

    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)

    development well

    development well means a well

    • (a) drilled pursuant to an order made under section 93, or

    • (b) the location of which is, in the opinion of the Chief, so related to the location of producible wells that there is every probability that it will produce from the same pool as the producible wells; (puits d’extension)

    exploration agreement

    exploration agreement means an exploration agreement entered into by the Minister or a person designated by the Minister pursuant to section 30; (contrat d’exploration)

    exploratory well

    exploratory well means any well that is not a development well; (puits de sondage)

    exploratory work

    exploratory work includes test drilling, aerial mapping, surveying, bulldozing, geological, geophysical and geochemical examinations and other investigations relating to the subsurface geology and all work, including the construction and maintenance of those facilities necessarily connected therewith and the building and maintenance of airstrips and roads required for the supply of or access to exploratory operations; (travaux de sondage)

    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 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)


    holder means, in relation to any interest granted or issued under these Regulations, the person or persons registered as holder or holders of the interest; (titulaire)


    interest includes an exploration agreement; (intérêt)

    legal survey

    legal survey means a survey referred to in section 10; (arpentage officiel)


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


    licence means an exploratory licence issued pursuant to section 24; (licence)


    licensee means a person holding a licence; (titulaire de licence or détenteur de licence)


    Minister means,

    • (a) in respect of Canada lands located in that part of Canada described in Schedule VI, the Minister of Indian Affairs and Northern Development, and

    • (b) in respect of Canada lands other than those lands located in that part of Canada described in Schedule VI, the Minister of Energy, Mines and Resources; (ministre)


    monument means a post, stake, peg, mound, pit, trench or other device used to mark a boundary or the location of a well as set out in a plan of survey approved pursuant to section 11; (borne)


    offshore means with respect to a drill site, a location within a water-covered area of Canada lands; (au large des côtes)


    oil means

    • (a) crude petroleum and other hydrocarbons regardless of gravity that are produced at a well head in liquid form by ordinary production methods,

    • (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

    • (c) any other hydrocarbons except coal and gas; (pétrole)

    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)


    permit means an exploratory permit issued pursuant to section 30 or 32 or renewed pursuant to section 40, as those sections read before August 3, 1977; (permis)


    permittee means a person holding a permit; (titulaire de permis or détenteur de permis)

    Petro-Canada Limited

    Petro-Canada Limited means the corporation established by section 4 of the Petro-Canada Limited Act; (Petro-Canada Limitée)

    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)

    special renewal permit

    special renewal permit means a special renewal permit granted pursuant to section 116 or 117; (permis avec clause spéciale de renouvellement)

    Surveyor General

    Surveyor General means the person designated as Surveyor General under the Canada Lands Surveys Act; (arpenteur général)

    target area

    target area[Repealed, SOR/80-590, s. 1]


    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,

    • (c) for the purpose of obtaining water to inject into an underground formation,

    • (d) for the purpose of injecting gas, air, water or other substance into an underground formation, or

    • (e) for any purpose through sedimentary rocks to a depth of at least 500 feet. (puits)

  • (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.

  • (3) Commercial exploitation shall be deemed to begin, with respect to a well or extraction plant, on the day on which the Minister, having considered the economic conditions, decides that a market exists commensurate to the productive capacity of the well or extraction plant.

  • SOR/80-590, s. 1
  • SOR/82-663, s. 1
  • 1991, c. 10, s. 19
  • 1998, c. 14, s. 101(F)
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