Indian Oil and Gas Act — I-7 4.1
Regulations 4.1 (1) The Governor in Council may make regulations respecting exploration for and exploitation of oil or gas situated in first nation lands, including regulations (a) respecting contracts and classes of contracts, including regulations in relation to (i) the granting, amendment, renewal, assignment and consolidation of contracts, (ii) the terms and conditions of contracts and the rights and obligations of contract holders, and (iii) the determination of rents or other amounts payable in respect of contracts, including by means of arbitration; (b) respecting the suspension and cancellation of contracts, and authorizing the Minister to suspend or cancel contracts in specified circumstances; (c) respecting the surrender of rights and interests under contracts, subject to any conditions that the Minister may specify; (d) respecting the conversion of contracts from one class to another or the continuation of contracts, subject to any conditions that the Minister may specify, and authorizing the Minister to convert or continue a contract when the Minister is satisfied that conditions specified by regulation have been met; (e) respecting the determination of the quantity or quality of oil or gas recovered under a contract; (f) respecting the determination of the value of oil or gas recovered under a contract, including its determination where oil or gas is the subject of a transaction between related parties and, for that purpose, defining “related parties”; (g) respecting royalties on any class of oil or gas recovered from first nation lands, including regulations (i) determining the share of oil or gas that constitutes a royalty and determining the value of that royalty, (ii) prescribing the costs and allowances that may be taken into account in determining the royalty or the value of the royalty, (iii) respecting the payment of royalties in cash or in kind, and authorizing the Minister to direct payment of a royalty in kind, (iv) specifying the circumstances in which the payment of a royalty is waived on oil or gas that is consumed as fuel in drilling for, producing, recovering, treating or processing oil or gas, (v) respecting the sale or other disposition of the share of oil or gas that constitutes a royalty, and (vi) respecting the assessment by the Minister of royalties owing by a contract holder; (h) respecting the payment of interest on amounts owing under this Act and establishing the rate of interest or the manner of determining it, including the application of compound interest; (i) specifying the circumstances in which a compensatory royalty is payable and prescribing the amount of the royalty or the manner of determining it; (j) respecting the order in which payments received in respect of a contract will be applied towards royalties, rents, interest, penalties or other amounts owing by the contract holder; (k) respecting the security to be provided for the performance of obligations under this Act or a contract, including the amount of the security or the manner of determining the amount, and specifying the circumstances and manner in which it will be returned or realized; (l) prescribing measures that contract holders may be required to take when the Minister determines that there is a risk of drainage of oil or gas by a well outside a contract area, whether the well is in or outside first nation lands; (m) authorizing the Minister in specified circumstances to order the submission of plans for the exploitation of oil or gas situated in first nation lands, respecting the content of such plans and their approval by the Minister, requiring contract holders to comply with plans approved by the Minister and authorizing the Minister to order the modification of such plans; (n) respecting surveys of first nation lands for the purposes of this Act and authorizing the Minister to require surveys to be carried out in prescribed circumstances; (o) respecting the keeping, or the submission to the Minister or the co