Indian Mining Regulations (C.R.C., c. 956)

19 Where a permittee has made an application for a lease in accordance with sections 17 and 18 and has complied with these Regulations and with the terms and conditions of his permit, the Division Chief shall issue a lease to him.

Entitlement

20 Every lessee who has complied with the provisions of these Regulations is entitled to all minerals found within his lease area, subject to any condition of his permit or lease acquired under section 5 or 6.

Surveys

21 Where, in the opinion of the Division Chief, it is necessary that lands in respect of which a lease is desired be surveyed for the purpose of issuing a lease pursuant to section 19, the Division Chief may require the applicant for the lease to have the boundaries of such lands surveyed by a commissioned land surveyor acting under instructions from the Surveyor General of Canada.

• 22 (1) Where a lease area is not surveyed before the issuance of a lease, but is subsequently surveyed by a land surveyor acting under the instructions of the Surveyor General of Canada, the Division Chief may amend the description in the lease to conform to the description supplied by the Surveyor General of Canada.

• (2) Where the description in a lease is amended under subsection (1), the Division Chief shall forward to the lessee, by registered mail, a copy of the amended description.

• (3) The description of lands in a lease referred to in subsection (1) shall be deemed to have been amended on the 30th day after a copy of the amended description was forwarded to the lessee by registered mail.

Term of Lease

• 23 (1) Subject to subsection (2), every lease expires 10 years from the date upon which it was issued unless otherwise provided in the invitation to tender under section 5 or in the lease issued under section 6 or pursuant to section 19.

• (2) Where, before the expiration of a lease or a renewal thereof, a lessee applies to the Division Chief for a renewal or further renewal of the lease, and where the lessee has complied with these Regulations and with the terms and conditions of the lease or renewal thereof, the Division Chief shall issue the renewal or further renewal of the lease

  • (a) for such renewal term as may be specified in the lease or, if no renewal term is specified in the lease, for a term of 10 years; or

  • (b) for such shorter term than that specified in paragraph (a) as the lessee may request.

• (3) For the purposes of subsection (2), the Division Chief may allow a lessee to group two or more of his leases within any one reserve.

• (4) [Revoked, SOR/90-468, s. 1]

• (5) Every application for renewal of a lease shall be accompanied by the fee therefor set out in the schedule payable to the Receiver General.

Rental

24 A lessee shall pay annual rental in advance to the Receiver General at the rate of $2 for each acre in the lease area or at such other rate as may be specified in the invitation to tender under section 5 or in the lease issued under section 6 or pursuant to section 19.

Security Deposit

• 25 (1) No lease shall be issued to any person unless that person has deposited with the Division Chief a security deposit in such amount or at such rate, if any, as may be specified in the invitation to tender under section 5 or in the lease to be issued under section 6 or pursuant to section 19.

• (2) A security deposit shall be in the form of money, bonds or promissory notes payable to the Receiver General on demand at a chartered bank or in such other form as the Division Chief deems proper.

26 Where the Division Chief is satisfied that a lessee has complied with these Regulations and with the terms and conditions of his lease or any renewal thereof, he may, during the term of the lease, and shall, on the expiry or surrender thereof, direct that the security deposit or a portion thereof deposited pursuant to subsection 25(1) be returned to the lessee.

Assessment Work

• 27 (1) During each year of the term of his lease and any renewal thereof, every lessee shall perform assessment work acceptable to the Supervisor of the value of $2 for each acre in the lease area, or of such other value as may be specified in the invitation to tender under section 5 or in the lease issued under section 6 or pursuant to section 19.

• (2) Where in his opinion assessment work performed near a lease area serves to evaluate the mineral potential of the lease area, the Supervisor may deem the whole or any part of the value of that work to be assessment work performed in the lease area.

• 28 (1) Where, during any year of a lease, assessment work of the value required under subsection 27(1) is not performed, the lessee shall make a cash payment to the Receiver General in an amount equal to the difference between the value of assessment work performed during that year and the value of the assessment work required to be performed.

• (2) Where the value of assessment work performed during any year of a lease exceeds the value of assessment work required to be performed under subsection 27(1), the Supervisor may credit the excess value of the assessment work performed to the value of the assessment work required to be performed pursuant to subsection 27(1) in any succeeding year or years up to 10 years from the year in which the assessment work was performed.

• 29 (1) Every lessee shall, within 90 days following the completion of each year of the term of his lease or any renewal thereof, forward to the Supervisor a certified statement in duplicate itemizing the assessment work performed and the cost of performing such work during the year most recently completed, together with any cash payment that may be required pursuant to subsection 28(1).

• (2) Every lessee shall, within six months following the completion of each year of the term of his lease or any renewal thereof, forward to the Supervisor copies in duplicate of all maps and technical information that serve to record the assessment work performed for the year most recently completed, together with a report of the results obtained from the performance of that assessment work.

30 [Revoked, SOR/90-468, s. 2]

Royalties

31 Unless otherwise specified in the invitation to tender under section 5 or in the lease issued pursuant to section 6 or 19, every lessee shall pay royalties on all minerals to which he is entitled that have been obtained from his lease area at the rate of five per cent of

• (a) the gross revenue from the mineral output at the pithead, where the minerals are sold at the lease area before treatment; or

• (b) the market value of the mineral output at the pithead, where the minerals are not sold at the lease area before treatment.

32 Notwithstanding section 31, the rate of royalty may be altered by agreement between the Division Chief and the lessee from a rate based on a percentage of the gross revenue or of the market value to the equivalent rate per ton or per cubic yard of the mineral output at the pithead.

33 Any royalty rate based upon a weight or measure of mineral output shall be adjusted annually to conform to changes in a price index or other index that is published by Statistics Canada and is chosen by the Division Chief.

• 34 (1) During the term of his lease and any renewal thereof, a lessee shall forward to the Supervisor within 30 days after the expiry of each period of production a royalty payment in favour of the Receiver General in respect of that period together with a statement in duplicate showing the production and sales figures upon which the payment has been calculated.

• (2) Where the Supervisor is not satisfied with the amount of a royalty payment or with a statement forwarded by a lessee pursuant to subsection (1), he may require the lessee to submit further particulars in relation to the statement and, if then required by the Supervisor, the lessee shall adjust the amount of the royalty payment.

• (3) A period of production consists of the three calendar months ending on the last day of March, June, September and December or of such other period of time as the Supervisor may determine.

Notice of Production

35 Every lessee, within 10 days from the commencement of production of any mineral from his lease area, shall

• (a) notify the Supervisor of the commencement of production; and

• (b) submit to the Supervisor such information with respect to his mining operations and production as the Supervisor may require.

Penalty and Cancellation

• 36 (1) Where a lessee fails to pay rental as required by section 24 or to surrender his lease within 30 days from the date on which the rental becomes payable, he is liable to a penalty of five per cent of the amount of his rental.

• (2) Notwithstanding subsection (1), where in the opinion of the Division Chief a lessee has failed in respect of his lease to comply with any provision of these Regulations, the Division Chief may forward to the lessee written notice by registered mail advising him that unless he commences to remedy the failure within 30 days from the date of the mailing of the notice and continues diligently to remedy the failure his lease may be cancelled by the Minister.

• (3) Where a lessee has received a notice pursuant to subsection (2), he may, within 30 days from the date of the mailing of the notice, make written application to the Minister for a hearing to consider reasons why his lease should not be cancelled.

• (4) Upon receipt of an application made pursuant to subsection (3), the Minister shall appoint a time and place for a hearing and shall notify the lessee by registered mail of the time and place of the hearing not less than 10 days before the date thereof.

• (5) Where, in the opinion of the Minister, a lessee has failed to comply with the requirements of a notice mailed to him pursuant to subsection (2), or at a hearing held pursuant to this section does not show adequate reason why his lease should not be cancelled, the Minister shall cancel his lease.

General

Grouping

37 The Division Chief may authorize the grouping of

• (a) a permit area or a lease area within a reserve with other permit areas or lease areas within the same reserve for the purpose of

  • (i) providing a security deposit required under section 11 or 25, and

  • (ii) assessment work required to be performed under sections 13 and 27; and

• (b) a lease area within a reserve with other lease areas within the same reserve for the purpose of qualifying for a renewal under subsection 23(2) or (3).

38 The Minister may authorize the grouping of a permit area or a lease area in a reserve with a permit area or lease area in another reserve or with a tract of land outside a reserve for the purpose of development or production of minerals under these Regulations, where councils of the bands for whose use and benefit the lands have been set apart in which the permit areas or lease areas are located, have approved a formula for determining the participation of the bands in revenues and other benefits derived from such development or production of minerals.

Assignment

• 39 (1) A permittee or lessee may assign his permit or lease or any interest therein with the approval of the Minister.

• (2) Where an assignment of a permit or lease

  • (a) has been approved by the Minister,

  • (b) is unconditional, and

  • (c) is accompanied by the registration fee set out in the schedule payable to the Receiver General,

  the assignment shall be registered in the register kept pursuant to section 55 of the Act.

Surrender

• 40 (1) Where a permittee or lessee has complied with these Regulations and with the terms and conditions of his permit or lease, he may at any time surrender all or part of his permit area or lease area.

• (2) Subject to subsection 10(2), where a permit or lease is surrendered under subsection (1), no rental paid in relation to that permit or lease shall be returned to the permittee or lessee.

Use of Land Surface

41 Where a person requires entry to a reserve in respect of which minerals have been surrendered or where a permittee or lessee requires use of land surface in a reserve for the purpose of development or production of minerals, he shall obtain a right of entry or right to use the land in accordance with any provisions that may be made by the Minister under the Act.

Inspection

• 42 (1) The Supervisor may

  • (a) enter upon and inspect any permit area, lease area or buildings and equipment thereon;

  • (b) require a permittee or lessee to produce any technical, financial and other records relating to the exploration for or production of minerals from his permit area or lease area; and

  • (c) take samples of minerals being produced and carry out any examination that, in his opinion, is necessary.

• (2) Every permittee or lessee shall render such assistance as the Supervisor may require in the performance of his duties.

Plans

• 43 (1) Upon the termination of his permit or extension thereof or of his lease or renewal thereof and at such other times as the Supervisor may request, a permittee or lessee, as the case may be, shall submit to the Supervisor plans and sections that show

  • (a) the location of all mine workings;

  • (b) the average valuable mineral content of all mine headings, backs and faces not currently being worked; and

  • (c) the surface and underground plant, roads, railways, buildings and other structures or works situated in the permit area or lease area.

• (2) All plans and sections submitted pursuant to subsection (1) shall be submitted in duplicate and shall be drawn on a scale of one inch to 100 feet or on such other scale as the Supervisor may determine.

• (3) Where plans and sections submitted pursuant to subsection (1) are not satisfactory to the Supervisor, the Supervisor may require the permittee or lessee to submit further plans and sections.