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Territorial Coal Regulations (C.R.C., c. 1522)

Regulations are current to 2021-03-23

Staking Location (continued)

 In the case of any dispute as to the time of staking a location, entitlement shall be recognized according to the priority of the placing of the post or tube, at the northeast corner, subject to any questions as to the validity of the record itself, and subject to the applicant having complied with all the terms and conditions of these Regulations.

Application for Lease

  •  (1) A person may apply for a lease by filing with the recorder an application in Form 1 of the schedule.

  • (2) An application for a lease shall be accompanied by

    • (a) a fee of $5;

    • (b) a sketch of the location; and

    • (c) the amount of the rental for the first year of the lease.

 Upon receipt of an application for a licence, the recorder may cause the location to be inspected and if satisfied that the application is in order shall forward such application to the Chief.

  •  (1) The Minister may, in such form as he determines, issue a lease of a location for a term of 21 years at an annual rental of $1 per acre payable yearly in advance.

  • (2) A lease is renewable for a further term of 21 years where the lessee furnishes evidence satisfactory to the Minister to show that during the term of the lease he has complied with the conditions of such lease, and may be renewed for additional periods of 21 years subject to the regulations at that time in force.

 In addition to the annual rental, a lessee shall pay annually a royalty at the rate of $0.10 per ton on merchantable coal mined on lands acquired by lease under these Regulations.

 A lessee shall not assign, transfer or sublet the rights granted by his lease or any part thereof without the consent in writing of the Minister.

 A lessee shall not mine or excavate within 60 feet from a boundary line of the location leased to him.

  •  (1) A lessee is entitled to the coal upon or in the land included in such lease, and has the right to enter upon and use and occupy the surface of such location or such portion thereof and to such extent as the Minister considers necessary for efficient coal mining operations but for no other purpose.

  • (2) A lessee shall compensate the owner or lawful occupant of the surface rights for any loss or damage caused by the coal mining operations of the lessee.

 Within one month following the last day of each year of the term of the lease, a lessee shall submit to the recorder a sworn statement showing the amount of coal extracted and removed during the year from the location under lease, and shall pay the amount of accrued royalties to the recorder.

  •  (1) A lessee shall commence active operations on his leasehold within one year following the day he is notified by the Minister to commence operations and shall produce from such operations the quantity of coal specified in the said notification.

  • (2) Such notification shall not be given until the expiration of at least one year from the commencement date of the lease and shall set out the quantity of coal which the lessee is required to mine and produce at the pit’s mouth ready for shipment, which quantity, however, may be increased from time to time, upon 30 days notice to that effect being given to the lessee, but in no case shall the maximum quantity required to be mined exceed 10 tons per annum for each acre leased.

  • (3) Where operations are not commenced within the time specified in the notice or where the required quantity of coal is not mined during each year, the lease shall be subject to cancellation in the discretion of the Minister.

 A person who has been granted a lease for a location and who has paid all amounts due the Crown in respect of the area under lease including amounts due for rent or royalty,

  • (a) to the date of consent to the assignment by the Minister pursuant to section 16, may assign the lease; or

  • (b) to the date the Minister is notified in writing of the proposed abandonment, may abandon the lease.

  • SOR/92-119, s. 1
  •  (1) Where a lessee holds a lease of a location acquired by assignment or otherwise under the provisions of these Regulations, on land situated more than 10 miles from a railway when the lease was issued, and where the lessee can show that he has expended in actual prospecting and developing operations on such location by recognized methods during any year, prior to railway communication with any such location having been established, an amount equal to or in excess of the prescribed yearly rental of such location, the Minister, upon proof satisfactory to him that such expenditure was incurred for the purpose and in the manner specified, may waive payment of the rental for the year of the term during which such expenditure may be shown to have been incurred, or in case the rental has already been paid, he may apply such payment or such portion thereof as to him seems reasonable on account of future payments of the rental of any such location, such expenditure, however, shall not be accepted as rental for a total of more than five years during the term of any lease.

  • (2) Where a lessee holds leases on two or more adjoining locations, any amount expended on actual prospecting and developing operations on one or more of such locations, not otherwise applied in respect of rental, may, with the approval of the Minister, be applied against rental due on any other such location, to the same extent as if such operations had been performed on such other location.

Application for Permit

  •  (1) A person may apply for a permit by filing with the recorder an application in Form 2 of the schedule.

  • (2) Subject to section 24, each application for a permit shall be accompanied by,

    • (a) a fee of $1;

    • (b) a payment of estimated royalty on the quantity of coal to be mined under the permit; and

    • (c) a sketch of the location.

  •  (1) Where a recorder is satisfied that an applicant for a permit has complied with the regulations respecting staking of the location and that the permit should be issued, he shall issue a permit to the applicant in Form 3 of the schedule.

  • (2) A permit issued to

    • (a) a department of the Government of Canada,

    • (b) a municipal district, a local improvement district or a municipality, or

    • (c) an educational, religious or charitable institution,

    shall be issued free of charge and shall authorize the applicant to mine a quantity of coal not exceeding 100 tons of 2,000 pounds each for the applicant’s own use, without payment of any royalty.

 Subject to these Regulations, a permittee is entitled

  • (a) to enter upon the surface of the location covered by his permit, or such portion thereof and to such extent as the Minister may consider necessary for efficient coal mining and for no other purpose; and

  • (b) to mine the quantity of coal set out in his permit subject to payment of a royalty on the merchantable output of the mine of $0.25 per ton of 2,000 pounds or such other royalty as may be fixed from time to time by the Minister with the approval of the Governor in Council.

  •  (1) A permit expires upon March 31st next following the date of issue, and within one month thereafter the permittee shall furnish the recorder with a statement of the amount of coal taken under such permit in Form 4 of the schedule.

  • (2) Where the amount of coal taken under the permit is less than that authorized by the permit, any excess royalty shall be refunded to the permittee.

 Where a permittee wishes to obtain a further permit covering the same location for the ensuing year, he may at any time prior to expiry of his current permit, apply to the recorder for a further permit, and where satisfied that the permittee has complied with all applicable provisions of these Regulations and of his current permit, the recorder may, upon receipt of the required fee and estimated royalty, if any, issue a further permit without requiring such permittee to restake such location.

  •  (1) An agent of territorial lands or a member of the Royal Canadian Mounted Police stationed in the area may, where it appears to him that the operations of any permittee are being carried on in an unsafe or improper manner, direct that such operations be suspended forthwith until such time as he is satisfied that such operations can be carried on in a satisfactory manner.

  • (2) Every suspension made under subsection (1) shall be reported immediately to the Chief.

 No person shall apply for, or hold, at one time, more than one location under permit.

 The boundaries beneath the surface of a location shall be the vertical planes or lines in which their surface boundaries lie.

 A recorder or other person designated by him may enter upon any land under lease or permit or the workings thereon, examine all records and books of account of the lessee or operator of such location, and make such other examination as may be deemed necessary.

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