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

Regulations are current to 2019-06-20

Exploration Wells (continued)

 Every licensee permittee, lessee or holder shall, as soon as possible after an exploratory well is completed, send to the Oil Conservation Engineer three prints of a legal survey, approved by the Surveyor General showing the surface position of the well and the boundaries of the unit and section in which the well is located.

  • SOR/80-590, s. 3
  • 1998, c. 14, s. 101(F)

Development Wells

  •  (1) Every permittee, lessee or holder shall, before drilling a development well, send to the Oil Conservation Engineer three prints of a tentative plan showing the approximate surface position of the proposed well and the proposed location of the well at total depth.

  • (2) In the case of a development well on land, the permittee, lessee or holder shall

    • (a) within sixty days of commencing drilling, submit to the Surveyor General for approval a plan of legal survey showing the surface position of the well and the boundaries of the unit and section in which the well is located; and

    • (b) on request of the Chief, submit three prints of a plan showing the locus of the drillhole with respect to the unit and section boundaries.

  • (3) In the case of a fixed offshore development structure, the permittee, lessee or holder shall

    • (a) as soon as possible after the erection of the development structure, submit to the Surveyor General for approval a plan of legal survey showing the unit and section in which the structure is situated and the positions of at least two monuments of the legal survey permanently fixed to the structure; and

    • (b) on request of the Chief, submit three prints of a plan showing the locus of the drillhole with respect to the unit and section boundaries and the position of the monuments of the legal survey.

  • SOR/80-590, s. 3
  • 1998, c. 14, s. 101(F)
  •  (1) A tentative plan shall be approved by the Chief prior to the construction, alteration or extension of any work or works in the offshore that will, on completion thereof form all or part of an undertaking for the production, gathering, storing, processing transmission or other handling of oil and gas and such plans shall show the proposed work or works and the system of survey to be used in positioning the work or works.

  • (2) A final plan satisfactory to the Chief shall, on his request, be submitted to him within six months from the completion of any part of an undertaking described in subsection (1).

  • SOR/80-590, s. 3

Prohibition

  •  (1) No person shall, for the purpose of searching for oil or gas, carry out exploratory work on Canada lands except as authorized by these Regulations.

  • (2) No person shall produce, mine, quarry or extract from Canada lands any oil, gas or other minerals or substances that are produced, mined, quarried or extracted in association with any oil or gas except as authorized by these Regulations.

PART ILicences, Exploration Agreements and Permits

Exploratory Licences

  •  (1) Any individual who is 21 years of age or over may submit an application for a licence.

  • (2) Any corporation that is registered with the Registrar of companies pursuant to the Companies Ordinance of the Northwest Territories may submit an application for a licence with respect to Canada lands within the Northwest Territories.

  • (3) Any corporation that is entitled to carry on business in any province may submit an application for a licence with respect to Canada lands outside the Northwest Territories.

  • (4) Every person who submits an application for a licence shall forward his application to the Chief or Oil Conservation Engineer, together with the fee set out therefor in Schedule I.

  •  (1) Upon receipt of an application referred to in section 24, the Chief or the Oil Conservation Engineer may issue a licence to the applicant.

  • (2) Every licence issued under subsection (1) expires on March 31st next following the date on which it was issued.

  • (3) No person shall assign or transfer a licence and any purported assignment or transfer of a licence is void.

  •  (1) Subject to subsection (2), a licensee may, for the purpose of searching for oil or gas enter upon and use the surface of any Canada lands in order to

    • (a) make geological or geophysical examinations;

    • (b) carry out aerial mapping; or

    • (c) investigate the subsurface.

  • (2) No licensee shall enter upon Canada lands that have been disposed of in any way by Her Majesty, except Canada lands that are included in a permit or oil and gas lease granted under these Regulations, unless the licensee has obtained

    • (a) the consent of the occupier thereof; or

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

 No licensee shall drill on any Canada lands a hole deeper than 1,000 feet unless

  • (a) in the case of Canada lands included in a permit or lease, the licensee has obtained the written consent of the permittee or lessee; or

  • (b) in the case of Canada lands not included in a permit or lease, the licensee has obtained the written consent of the Chief.

 Every licensee who carries out work on Canada lands not held by him under permit or lease shall, upon completion of the work, furnish the Chief with three copies of

  • (a) a map on a scale of not less than 4 miles to 1 inch showing the area covered by the examination and indicating the location of all roads and airstrips:

  • (b) information obtained as to the presence of water, coal, gravel, sand or other potentially useful minerals; and

  • (c) all reports, photographs, maps and data referred to in section 53.

 A licensee shall upon request by the Oil Conservation Engineer report the location and progress of any field party employed by the licensee.

Exploration Agreements

  •  (1) The Minister may, subject to this section, enter into an exploration agreement with any person relating to Crown reserve lands.

  • (2) An exploration agreement may provide for any matter relating to exploration for or development of oil or gas and, in particular, but without restricting the generality of the foregoing, may provide terms and conditions for

    • (a) payment and disposition of deposits,

    • (b) work programs and drilling requirements,

    • (c) reporting and disclosure of information,

    • (d) grouping of land areas described in exploration agreements, and

    • (e) surrender, cancellation and transfer of rights under the agreement,

    but so long as this section is in force and unless otherwise specified in this section or section 31 or 32 or in the exploration agreement, the provisions of these Regulations relevant to a permit shall apply to an exploration agreement.

  • (3) Subject to subsection (7), before entering into any exploration agreement, the Minister shall publish a notice in the Canada Gazette and in any other publication he considers appropriate calling for the submission of proposals in respect of the interests to be conferred by the agreement.

  • (4) A notice calling for the submission of proposals under subsection (3) shall be published at least 60 days before the closing date fixed in the notice for the submission of proposals and shall set out any requirement or matter applicable to persons submitting proposals, including

    • (a) the amount of any deposit required and the conditions for its return;

    • (b) any work requirements, the term of the agreement and any rental payable;

    • (c) the royalty payable in respect of any oil or gas produced under a lease granted under section 54 if different from that payable under section 85;

    • (d) any requirements for

      • (i) Canadian equity participation,

      • (ii) participation by the Government of Canada or any department, branch or agency thereof, or

      • (iii) employment of Canadian goods and services; and

    • (e) such other terms and conditions as the Minister may determine.

  • (5) In selecting any proposal submitted pursuant to this section for the purpose of negotiating an exploration agreement, the Minister shall take into account any factors he considers appropriate in the public interest but is not bound to select any particular proposal submitted.

  • (6) Where no proposal is submitted before the closing date specified in a notice calling for the submission of proposals, the Minister may, within 90 days after that closing date, enter into an exploration agreement with any person on such terms and conditions as the Minister may determine.

  • (7) An exploration agreement may be entered into without a notice calling for the submission of proposals where

    • (a) the Minister does not consider it to be in the public interest to give such a notice owing to the limited area or the location of land available or owing to the need to act expeditiously; or

    • (b) the agreement is to be with Petro-Canada in respect of lands selected by Petro-Canada Limited for exploration and development pursuant to section 33.

  • 1991, c. 10, s. 19
 
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