GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
Canada Petroleum Resources Act — C-8.5 26
Effective date of exploration licence 26 (1) The effective date of an exploration licence is the date specified in the licence as the effective date thereof. Non-renewable term of nine years (2) Subject to subsection (3) and section 27, the term of an exploration licence shall not exceed nine years from the effective date of the licence and shall not be extended or renewed. Exception (3) Subject to subsection (5) and section 27, the term of an exploration licence entered into or in respect of which negotiations have been completed before December 20, 1985 may be renegotiated once only for a further term not exceeding four years and thereafter the term thereof shall not be renegotiated, extended or renewed. Regulations prescribing areas (4) The Governor in Council may make regulations prescribing areas in respect of which the Minister may make an order pursuant to subsection (5). Extension of exploration licences in prescribed areas (5) The Minister may, subject to such terms and conditions as the Minister deems appropriate, extend the term of an exploration licence in relation to any frontier lands within a prescribed area that has been renegotiated under subsection (3). Crown reserve lands on expiration of licence (6) On the expiration of an exploration licence, any frontier lands to which the exploration licence related and that are not subject to a production licence or a significant discovery licence become Crown reserve lands.
Canada Petroleum Resources Act — C-8.5 27
Continuation of exploration licence where drilling commenced 27 (1) Where, prior to the expiration of the term of an exploration licence, the drilling of any well has been commenced on any frontier lands to which the exploration licence applies, the exploration licence continues in force while the drilling of that well is being pursued diligently and for so long thereafter as may be necessary to determine the existence of a significant discovery based on the results of that well. Deemed pursued diligently (2) Where the drilling of a well referred to in subsection (1) is suspended by reason of dangerous or extreme weather conditions or mechanical or other technical problems encountered in the drilling of the well, the drilling of that well shall, for the purposes of subsection (1), be deemed to be being pursued diligently during the period of suspension. Drilling of second well deemed commenced (3) Where the drilling of a well referred to in subsection (1) cannot be completed by reason of mechanical or other technical problems and if, within ninety days after the cessation of drilling operations with respect to that well, or such longer period as the Minister determines, the drilling of another well is commenced on any frontier lands that were subject to the exploration licence, the drilling of that other well shall, for the purposes of subsection (1), be deemed to have commenced prior to the expiration of the term of the exploration licence.
Canada Petroleum Resources Act — C-8.5 29
Rights under significant discovery licence 29 A significant discovery licence confers, with respect to the frontier lands to which the licence applies, (a) the right to explore for, and the exclusive right to drill and test for, petroleum; (b) the exclusive right to develop those frontier lands in order to produce petroleum; and (c) the exclusive right, subject to compliance with the other provisions of this Act, to obtain a production licence.
Canada Petroleum Resources Act — C-8.5 30
Significant discovery licence in relation to lands subject to exploration licences 30 (1) Where a declaration of significant discovery is in force and all or a portion of the significant discovery area is subject to an exploration licence or a share therein held in accordance with section 23, the Minister shall, on the application of the interest holder of the exploration licence or the share made in the form and manner and containing such information as may be prescribed, issue to the interest holder a significant discovery licence in respect of all portions of the significant discovery area that are subject to the exploration licence or the share. Significant discovery licence in relation to Crown reserve lands (2) Where a declaration of significant discovery is in force and the significant discovery area extends to Crown reserve lands, the Minister may, after making a call for bids in relation to those Crown reserve lands or any portion thereof and selecting a bid submitted in response to the call in accordance with subsection 15(1), issue a significant discovery licence to the person who submitted that bid in relation to the Crown reserve lands specified in the call. Terms and conditions of significant discovery licence (3) A significant discovery licence shall be in the form prescribed and may contain any other terms and conditions, not inconsistent with this Act or the regulations, as may be agreed on by the Minister and the interest owner of the significant discovery licence.
Canada Petroleum Resources Act — C-8.5 31
Reduction of lands subject to significant discovery licence 31 (1) Where a significant discovery area in relation to a declaration of significant discovery is decreased pursuant to an amendment made under subsection 28(4), any significant discovery licence that was issued on the basis of that declaration shall be amended by decreasing accordingly the frontier lands subject to that licence. Increase in lands subject to significant discovery licence (2) Where a significant discovery area in relation to a declaration of significant discovery is increased pursuant to an amendment made under subsection 28(4), any significant discovery licence that was issued on the basis of that declaration shall be amended to include all portions of the amended significant discovery area that are subject to any exploration licence held by the interest owner of that significant discovery licence at the time the significant discovery area is so increased.
Canada Petroleum Resources Act — C-8.5 32
Exploration licence ceases to have effect 32 (1) On the issuance of a significant discovery licence pursuant to subsection 30(1) with respect to a significant discovery area, any exploration licence ceases to have effect in relation to that significant discovery area. Effective date of significant discovery licence (2) The effective date of a significant discovery licence is the date of application for the licence. Term of significant discovery licence (3) Subject to subsection 42(1), a significant discovery licence continues in force, in relation to each portion of the frontier lands to which the licence applies, during such period as the declaration of significant discovery on the basis of which the licence was issued remains in force in relation to that portion. Crown reserve lands on expiration of licence (4) On the expiration of a significant discovery licence, any frontier lands to which the significant discovery licence related and that are not subject to a production licence become Crown reserve lands.
Canada Petroleum Resources Act — C-8.5 33
Drilling orders 33 (1) Subject to subsections (2) to (4), the Minister may, at any time after the Commission of the Canadian Energy Regulator has made a declaration of significant discovery, by order subject to section 106, require the interest owner of any interest in relation to any portion of the significant discovery area to drill a well on any portion of the significant discovery area that is subject to that interest, in accordance with any directions that may be set out in the order, and to commence the drilling within one year after the making of the order or within any longer period that the Minister specifies in the order. Exception (2) No order may be made under subsection (1) with respect to any interest owner who has completed a well on the relevant frontier lands within six months after the completion of that well. Condition (3) No order may be made under subsection (1) within the three years immediately following the well termination date of the well indicating the relevant significant discovery. Idem (4) No order made under subsection (1) may require an interest owner to drill more than one well at a time on the relevant frontier lands. Definition of well termination date (5) For the purposes of subsection (3), well termination date means the date on which a well has been abandoned, completed or suspended in accordance with any applicable drilling regulations. R.S., 1985, c. 36 (2nd Supp.), s. 33; 2015, c. 4, s. 31 2019, c. 28, s. 152
Canada Petroleum Resources Act — C-8.5 34
Information may be disclosed 34 (1) The Minister may, notwithstanding section 101, provide information or documentation relating to a significant discovery to any interest owner who requires such information or documentation to assist the interest owner in complying with an order made under subsection 33(1). Idem (2) An interest owner shall not disclose any information or documentation provided to that interest owner under subsection (1) except to the extent necessary to enable the interest owner to comply with an order made under subsection 33(1).
Canada Petroleum Resources Act — C-8.5 35
Application for declaration of commercial discovery 35 (1) Where a commercial discovery has been made on any frontier lands that are subject to an interest or a share therein held in accordance with section 23, the Commission of the Canadian Energy Regulator shall, on the application of the interest holder of the interest or the share, made in the form and manner and containing such information as may be prescribed, make a written declaration of commercial discovery in relation to those frontier lands in respect of which there are reasonable grounds to believe that the commercial discovery may extend. Declaration on initiative of Commission of the Canadian Energy Regulator (2) Where a commercial discovery has been made on any frontier lands, the Commission of the Canadian Energy Regulator may, by order, make a declaration of commercial discovery in relation to those frontier lands in respect of which there are reasonable grounds to believe that the commercial discovery may extend. Application of certain provisions (3) Subsections 28(3) to (6) apply, with any modifications that the circumstances require, with respect to a declaration made under subsection (1) or (2). Procedures (4) The procedures described in section 382 of the Canadian Energy Regulator Act apply to the making, amendment or revocation of a declaration under this section. Delegation (5) The Commission of the Canadian Energy Regulator may delegate any of its powers under this section to a member, officer or employee of the Commission, who shall exercise the powers in accordance with the terms of the delegation. R.S., 1985, c. 36 (2nd Supp.), s. 35; 1994, c. 10, s. 17; 2015, c. 4, s. 32 2019, c. 28, s. 148 2019, c. 28, s. 152
Canada Petroleum Resources Act — C-8.5 36
Notice of order to reduce term of interest 36 (1) The Minister may, at any time after the Commission of the Canadian Energy Regulator has made a declaration of commercial discovery, give notice to the interest owner of any interest in relation to any portion of the commercial discovery area where commercial production of petroleum has not commenced before that time stating that, after any period of not less than six months that may be specified in the notice, an order may be made reducing the term of that interest. Opportunity for submissions (2) During the period specified in a notice sent to an interest owner under subsection (1), the Minister shall provide a reasonable opportunity for the interest owner to make such submissions as the interest owner considers relevant to determining whether the Minister should make an order reducing the term of the relevant interest. Order reducing term of interest (3) Notwithstanding any other provision of this Act, where the Minister is of the opinion that it is in the public interest, he may, at any time not later than six months after the expiration of the period specified in a notice in respect of an interest sent under subsection (1), by order subject to section 106, reduce the term of the interest to three years after the date the order is made or such longer period as may be specified in the order. All interests cease (4) Notwithstanding any other provision of this Act but subject to subsections (5) and (6), where an order is made under subsection (3), any interest in respect of frontier lands within the area to which the interest that is the subject of the order applied on the date the order was made ceases to have effect at the end of the period specified in the order. Order ceases to have effect where production commences (5) Where commercial production of petroleum on any portion of the frontier lands referred to in subsection (4) commences before the expiration of the period specified in an order made under subsection (3) or the period extended pursuant to subsection (6), the order ceases to have effect and is deemed to have been vacated. Extension of period (6) The Minister may extend the period specified in an order made under subsection (3) or may revoke the order. R.S., 1985, c. 36 (2nd Supp.), s. 36; 2015, c. 4, s. 33 2019, c. 28, s. 152
Canada Petroleum Resources Act — C-8.5 37
Rights under production licence 37 (1) A production licence confers, with respect to the frontier lands to which the licence applies, (a) the right to explore for, and the exclusive right to drill and test for, petroleum; (b) the exclusive right to develop those frontier lands in order to produce petroleum; (c) the exclusive right to produce petroleum from those frontier lands; and (d) title to the petroleum so produced. Exception (2) Notwithstanding subsection (1), the Minister may, subject to such terms and conditions as the Minister deems appropriate, authorize any interest holder of an interest or a share therein to produce petroleum on the frontier lands subject to the interest or share for use in the exploration or drilling for or development of petroleum on any frontier lands.
Canada Petroleum Resources Act — C-8.5 38
Issuance of production licence 38 (1) Subject to section 44, the Minister, on application made in the form and manner and containing such information as may be prescribed, (a) shall issue a production licence to one interest owner, in respect of any one commercial discovery area or portion thereof that is subject to an exploration licence or a significant discovery licence held by that interest owner; and (b) may, subject to such terms and conditions as may be agreed on by the Minister and the relevant interest owners, issue a production licence to (i) one interest owner, in respect of two or more commercial discovery areas or portions thereof that are subject to an exploration licence or a significant discovery licence held by that interest owner, or (ii) two or more interest owners, in respect of one or more commercial discovery areas or portions thereof that are subject to an exploration licence or a significant discovery licence held by any of those interest owners. Production licence in relation to Crown reserve lands (2) Where a declaration of commercial discovery is in force and the commercial discovery area extends to Crown reserve lands, the Minister may, after making a call for bids in relation to those Crown reserve lands or any portion thereof and selecting a bid submitted in response to the call in accordance with subsection 15(1), issue a production licence to the person who submitted that bid in relation to the Crown reserve lands specified in the call. Terms and conditions of production licence (3) A production licence shall be in the form prescribed and may contain any terms and conditions, not inconsistent with this Act or the regulations, as may be agreed on by the Minister and the interest owner of the production licence. R.S., 1985, c. 36 (2nd Supp.), s. 38; 1993, c. 47, s. 1
Canada Petroleum Resources Act — C-8.5 39
Consolidation of production licences 39 The Minister may, on the application of the interest owners of two or more production licences, consolidate those production licences into a single production licence, on such terms and conditions as may be agreed on by the Minister and those interest owners.
Canada Petroleum Resources Act — C-8.5 40
Reduction of lands subject to production licence 40 (1) Where a commercial discovery area in relation to a declaration of commercial discovery is decreased pursuant to an amendment made under subsections 28(4) and 35(3), any production licence that was issued on the basis of that declaration shall be amended by decreasing accordingly the frontier lands subject to that licence. Increase in lands subject to production licence (2) Where a commercial discovery area in relation to a declaration of commercial discovery is increased pursuant to an amendment made under subsections 28(4) and 35(3), any production licence that was issued on the basis of that declaration shall be amended to include all portions of the amended commercial discovery area that are subject to an exploration licence or a significant discovery licence held by the interest owner of that production licence at the time the commercial discovery area is so increased.
Canada Petroleum Resources Act — C-8.5 41
Term of production licence 41 (1) Subject to subsections (2) to (4), a production licence is effective from the date it is issued and shall be issued for a term of twenty-five years. Idem (2) Where a declaration of commercial discovery on the basis of which a production licence was issued is, pursuant to subsections 28(4) and 35(3), revoked or amended to exclude all portions of the commercial discovery area in relation to which the production licence was issued, the production licence ceases to be in force. Automatic extension of term (3) Where, on the expiration of the term of a production licence, petroleum is being produced commercially, the term is extended for such period thereafter during which commercial production of petroleum continues. Discretionary extension of term (4) The Minister may, by order, on such terms and conditions as may be specified in the order, extend the term of a production licence where (a) commercial production of petroleum from the frontier lands subject to the licence ceases before or on the expiration of the twenty-five year term of the production licence and the Minister has reasonable grounds to believe that commercial production from those lands will recommence; or (b) the Minister has reasonable grounds to believe that commercial production of petroleum from those lands will, at any time before or after the expiration of the term of the licence, cease during any period and thereafter recommence.
Canada Petroleum Resources Act — C-8.5 42
Lapsing of other interests 42 (1) On the issuance of a production licence, any interest in relation to the frontier lands in respect of which the production licence is issued held immediately prior to the issuance of the production licence ceases to have effect in relation to those frontier lands, but otherwise continues to have effect according to its terms and the provisions of this Act. Lands become Crown reserve lands on expiration of term (2) On the expiration of a production licence, the frontier lands in relation to which the production licence was issued become Crown reserve lands.
Canada Petroleum Resources Act — C-8.5 43
Licence for subsurface storage 43 (1) The Minister may, subject to any terms and conditions the Minister considers appropriate, issue a licence for the purpose of subsurface storage of petroleum or any other substance approved by the Minister in frontier lands at depths greater than twenty metres. Prohibition (2) No frontier lands shall be used for a purpose referred to in subsection (1) without a licence referred to therein.
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Qualification for production licence 44 No production licence or share in a production licence may be held by any person other than a corporation incorporated in Canada. R.S., 1985, c. 36 (2nd Supp.), s. 44; 1993, c. 47, s. 2
Canada Petroleum Resources Act — C-8.5 54
Definition of assessment 54 In this Part, assessment includes reassessment.
Canada Petroleum Resources Act — C-8.5 55
Royalties 55 (1) There are hereby reserved to Her Majesty in right of Canada, and each holder of a share in a production licence is liable for and shall pay, in accordance with the regulations, such royalties as may be prescribed, at the rates prescribed, in respect of petroleum produced from frontier lands and in respect of the periods prescribed. Payable in money or in kind (2) The Minister may require all or part of any royalty payable under this Part to be paid in money or in kind in accordance with the regulations. Reduction of royalties or exemptions (3) The Governor in Council may, by order, authorize the reduction of, or the exemption from the payment of, any royalty payable under this Part for such periods, in such amounts and subject to such conditions as may be specified in the order.
Canada Petroleum Resources Act — C-8.5 56
Interest and penalties 56 Each holder of a share in a production licence liable for and required to pay royalty under this Part who is in default in accordance with the regulations in the payment of any amount payable under this Part on account of that royalty shall pay interest and penalties on such amounts in accordance with the regulations.
Canada Petroleum Resources Act — C-8.5 57
Time and manner of payment 57 Each holder of a share in a production licence liable for and required to pay royalties, penalties or interest under this Part shall make payments of or on account of those royalties, penalties or interest at the time and in the manner prescribed.
Canada Petroleum Resources Act — C-8.5 58
Reports and returns 58 (1) Each holder of a share in a production licence shall file, at the time and in the manner prescribed, reports and returns in such form and containing such information as may be prescribed and shall submit such documentation in connection therewith as may be prescribed. Collection and remission of royalty by representative of two or more holders (2) Where the interest owner of a production licence consists of two or more interest holders, the representative of the interest owner shall, where required by the regulations, (a) collect and remit on behalf of those interest holders any royalty due under this Part; and (b) file on behalf of those holders, at the time and in the manner prescribed, consolidated reports and returns in the form and containing the information prescribed and submit such documentation in connection therewith as may be prescribed. Idem (3) Interest holders of a production licence shall provide their representative with the information necessary to file any reports and returns pursuant to paragraph (2)(b).
Canada Petroleum Resources Act — C-8.5 59
Books and records 59 (1) Each holder of a share in a production licence shall, subject to such terms and conditions as may be prescribed, keep books, records, accounts, documents and other information necessary for or incidental to the calculation and verification of the amounts of royalties payable by the holder under this Part, including such books, records, accounts, documents and other information as may be prescribed. Idem (2) Books, records, accounts, documents and other information required to be kept pursuant to subsection (1) shall be kept at the place and in the manner and during the periods prescribed.
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Audits and examinations 60 Persons required by this Part to file reports and returns are subject to such audit and examination as may be prescribed to be conducted at the times, in the circumstances and in the manner prescribed.