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

Regulations are current to 2019-06-20

Oil and Gas Leases (continued)

Grouping of Leases (continued)

 Where a group is terminated by the discovery of oil or gas, the oil and gas leases previously included in the group shall be subject to the provisions of sections 88 and 89.

 A lessee may from time to time group or regroup any of his lease areas in accordance with section 90.

Development Drilling

 Where a lessee is producing oil or gas in commercial quantity, the Chief may order the lessee to drill further wells on the lease area and to continue producing oil or gas so long as that area continues to yield oil or gas in commercial quantity.

Entry on Lands

 Where the surface rights to the whole or any part of the Canada lands described in a permit or oil and gas lease have been disposed of by Her Majesty under a timber licence, grazing lease, coal mining lease, mining claim or other form of terminable grant, the permittee or lessee shall not enter upon such lands unless he has obtained

  • (a) the consent of the person holding the timber licence, grazing lease, coal mining lease, mining claim or other form of terminable grant;

  • (b) the consent of the occupier of the land; or

  • (c) an order for entry from the arbitrator.

Entry on Patented Lands

 Where the surface rights to the whole or any part of the Canada lands described in a permit or oil and gas lease have been granted by Her Majesty under letters patent or sold under an agreement for sale, the permittee or lessee shall not enter upon the lands that have been so disposed of unless he has obtained

  • (a) the consent of the owner of the surface rights;

  • (b) the consent of the occupier of the lands; or

  • (c) an order for entry from the arbitrator.

Arbitration

  •  (1) A licensee, permittee or lessee who has not been able to obtain the consent to enter referred to in section 26, 94 or 95 may apply to an arbitrator for an order permitting entry on to those lands and fixing the compensation therefor.

  • (2) Ten days notice of the application referred to in subsection (1) shall be given by the applicant to the owner, occupier or lessee as may be required by section 26, 94 or 95.

 The magistrate of the district in which the lands mentioned in the application lie shall, upon receipt of the application referred to in section 96, become the arbitrator for determining the compensation and permitting entry on to the lands.

  •  (1) The arbitrator shall fix a date for the hearing and may require the operator to give notice of the hearing in such manner and to such persons as the arbitrator may direct.

  • (2) The arbitrator shall determine the compensation to be paid or awarded and make such order as he deems fit, including the disposition of costs.

 Where an applicant posts with the arbitrator a bond, in an amount satisfactory to the arbitrator, the arbitrator shall thereupon make an interim order permitting the applicant to enter upon and use the lands.

Appeal From Arbitrator

 Either party, within one month after the arbitrator has made an order pursuant to section 98, may appeal from the order on any question of the law or fact, or upon other ground of objection to the superior court for the district in which the land is located.

 The superior court may set aside, confirm or vary the order or remit it to the arbitrator for reconsideration with such directions as it deems proper.

 Upon such an appeal, the practice and proceedings shall be as nearly as possible the same as upon an appeal from the decision of an inferior court to the superior court, subject to any rules or orders from time to time made by the superior court in respect of such an appeal.

 The order of the superior court is final and no appeal lies from any order made by the superior court.

Enforcement of Order

  •  (1) Where any resistance or forcible opposition is made by any person to enforcement of any order or interim order made pursuant to section 98, 99 or 101, the magistrate or judge may issue his warrant to the sheriff of the district, or to a bailiff, to put down such resistance or opposition.

  • (2) Every licensee, permittee or lessee shall comply promptly with any order made pursuant to section 98 or 101.

Reports

  •  (1) Every lessee shall, within 60 days after

    • (a) the third, sixth, ninth, twelfth, fifteenth and eighteenth anniversaries of the date on which the lease was granted or renewed, and

    • (b) the expiration, cancellation, surrender or renewal of the lease,

    forward to the Chief, in triplicate, copies of all reports, photographs, maps and data referred to in section 53.

  • (2) When the information referred to in this section has been sent by the lessee to the Chief pursuant to section 28, 44 or 53, the lessee is not required to send that same information to the Chief pursuant to this section.

Information to be Confidential

  •  (1) Except as provided in this section, the information furnished under these Regulations shall not be released.

  • (2) Information furnished pursuant to paragraph 28(a) or (b) may be released at any time.

  • (3) Information submitted by a permittee or lessee concerning a development well may be released 30 days after the completion, suspension or abandonment of that well.

  • (4) Information submitted by a permittee or lessee concerning an exploratory well may be released two years after the completion, suspension or abandonment of that well.

  • (5) Information submitted by a permittee or lessee concerning a surface geological or photogeological survey and factual information obtained from a magnetometer, gravity, seismic or other survey may, in the discretion of the Minister, be released

    • (a) two years after the cancellation, surrender or expiry of

      • (i) the permit of the area on which the work was done, or

      • (ii) all oil and gas leases granted pursuant to section 54 within the permit area on which the work was done,

    whichever is the later; or

    • (b) two years after the cancellation, surrender or expiry of the oil and gas lease of the area on which the work was done.

  • (6) Information submitted by a licensee, permittee or lessee may, in the discretion of the Minister, be released at any time with the consent of the licensee, permittee or lessee.

  • (7) General topographical information, legal surveys and elevations of well locations, the current depths of wells and the current status of wells may be released at any time.

Inspection

  •  (1) The Minister, or a person authorized by him, may at any time enter upon a permit area or lease area and

    • (a) inspect all wells, technical records, plants and equipment;

    • (b) take samples and particulars; and

    • (c) carry out tests or examinations not detrimental to the operations of the permittee or lessee for determining the production of oil or gas that may be reasonable or proper.

  • (2) The permittee or lessee shall give the Minister or person authorized by him such assistance as may be necessary.

Enforcement

  •  (1) Where a permittee fails to make a deposit required by section 40, the Chief shall, unless he is required to give notice to the permittee by subsection 38(3), give written notice to the permittee informing him that if he does not make the deposit required by section 40 within 90 days of the date of the notice his permit will be deemed to be cancelled without further notice.

  • (2) Where a permittee does not make a deposit in accordance with a notice given pursuant to subsection (1), his permit shall forthwith be deemed to be cancelled.

  • (3) Where a lessee does not pay the rental required by these Regulations within 30 days after the date on which the rental is to be paid, the Minister shall give written notice to the lessee specifying the default and unless the default is remedied within 30 days of the date of the notice, the lease may be cancelled by the Minister.

  • (4) Where a licensee, permittee or lessee violates any provision of these Regulations, other than those referred to in subsection (1) or (2), the Minister may give written notice to the licensee, permittee or lessee and unless the licensee, permittee or lessee remedies or prepares to remedy the violation, to the satisfaction of the Minister, within 90 days from the date of the notice the Minister may cancel the licence, permit or oil and gas lease.

Publication of Orders

 Every order made pursuant to these Regulations shall be published in the Canada Gazette within 30 days after it is made.

Notice

 For the purposes of sections 38 and 108, written notice shall be deemed to be given by the Chief or Minister, as the case may be, to a licensee, permittee or lessee when the notice is sent by registered mail to the licensee, permittee or lessee or his agent at his address on record with the Department.

 
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