Territorial Coal Regulations — 39
39 (1) Subject to subsection (4), prior to commencement of each year in which a licence is in force, the licensee shall deposit with the Chief for each acre of land in respect of which his licence was issued (a) $0.05 in respect of the first year; (b) $0.10 in respect of the second year; and (c) $0.20 in respect of the third year. (2) The deposit referred to in subsection (1) may be made in cash by means of an approved note or in bonds guaranteed by the Government of Canada or of a province. (3) Subject to subsections (4) and (5), during each year in respect of which a deposit has been made pursuant to subsection (1), a licensee shall spend on exploration for coal on the land for which his licence was issued the amount of money deposited in respect of that year with the Chief. (4) Where in any one year a licensee spends more money on exploration than that required by subsection (3), the amount by which such expenditures exceed the required expenditures is deemed to have been spent in the subsequent year, and the deposit required by subsection (1) for that subsequent year is decreased by that amount. (5) Where in any one year a licensee spends less money on exploration than that required by subsection (3), the Chief may, for sufficient reasons and upon receipt of an application not later than the date on which the deposit mentioned in subsection (1) is payable, permit the licensee to spend during the subsequent year the amount by which the required expenditures exceed the actual expenditures. (6) In this section, “approved note” means a promissory note payable on demand that a chartered bank has agreed, in terms acceptable to the Chief, to honour on presentment for payment. (7) Notwithstanding anything in these Regulations, where a licensee through circumstances beyond the licensee’s control is prevented from, or delayed in, spending money on exploration as required by subsection (3), the Chief, or a person designated by the Chief, shall extend the period within which the money may be spent and the term of the licence, and make such further extensions as are necessary, to enable the licensee to spend the money on exploration for coal on the land for which the licence was issued. (8) Where a person has been issued a licence pursuant to section 35 (in this subsection referred to as the new licence) following the expiration of a licence issued to that person pursuant to that section (in this subsection referred to as the former licence) for the same area of land described in the new licence, (a) any amount of money expended on exploration for coal on the land for which the former licence was issued during the currency of the former licence that exceeded, at the time the former licence expired, the expenditure required by subsection (3) in respect of that land is deemed to have been spent in the first year in which the new licence is in force, and the deposit required by subsection (1) for the first year is decreased by that amount; and (b) where that person has, during the currency of the former licence, spent less money on exploration than the amount required to be spent by subsection (3), that person may, notwithstanding section 44, on submission to the Chief, not later than the date on which the deposit referred to in subsection (1) is payable, of (i) an application, (ii) the deposit referred to in subsection (1), and (iii) a deposit equal to the amount by which the exploration expenditures required under the former licence exceed the actual expenditures under that licence, spend the amount referred to in subparagraph (iii), in addition to the amount required to be spent by subsection (3), during the first year in which the new licence is in force. SOR/81-328, s. 1; SOR/92-119, s. 2; SOR/93-244, s. 2(F)