GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
Indian Oil and Gas Regulations — 46
Granting of contract 46 (1) The Minister must grant the contract if he or she receives the following within 90 days after the day on which a copy of the contract has been received by both the applicant and the council: (a) a written resolution of the council approving the terms and conditions of the contract and stating that the council has chosen to have the rights or interests described in the contract granted by way of negotiation rather than public tender; (b) the bonus and first year’s rent; and (c) two original copies of the contract — as well as an original copy for each future contract holder — all of which are signed by each of them. Effective date (2) The contract takes effect on the day on which it is granted, unless it provides otherwise.
Indian Oil and Gas Regulations — 47
Rights conferred by contract 47 A subsurface contract holder has the exclusive right to exploit the oil and gas in the lands in the contract area, to treat that oil, to process that gas and to dispose of that oil and gas.
Indian Oil and Gas Regulations — 48
Initial term of permit 48 (1) If the lands in a permit area are located in a province set out in column 1 of the table to Schedule 2 and in a region set out in column 2, the initial term of the permit is the term set out in column 3. Otherwise, the initial term is five years. More than one region (2) If the lands in a permit area are located in more than one region set out in column 2 of the table to Schedule 2, the initial term is the term for the region in which the greatest portion of the lands is located. If the portion of lands in each region is the same, the initial term is the longer of the terms set out in column 3. Intermediate term of permit (3) The intermediate term of a permit is three years.
Indian Oil and Gas Regulations — 49
Term of lease 49 The term of an oil and gas lease is three years.
Indian Oil and Gas Regulations — 50
Term — exception 50 (1) Despite subsections 48 (1) and (2) and section 49 , with the consent of the applicant and the council, the Minister may fix the initial term of a permit or the term of a lease at a number of years that is greater than the number established by those provisions, to a maximum of five years. Amended term (2) With the consent of the holder, the term of a subsurface contract may be amended, in accordance with subsection 20 (1), to a maximum of five years.
Indian Oil and Gas Regulations — 51
Annual rent 51 The annual rent for a subsurface contract is $5 per hectare or $100, whichever is greater.
Indian Oil and Gas Regulations — 52
Lands earned 52 (1) A permit holder earns lands, and may select from those lands for the intermediate term of the permit, if, during the initial term, they have, in accordance with the earning provisions of their permit, (a) drilled a new well in the permit area; or (b) re-entered an existing well in the permit area and drilled at least 150 m of new wellbore. Failure to comply with earning provisions (2) If a holder fails to meet a deadline set out in an earning provision of their permit, the permit terminates on the day of the deadline with respect to all lands that have not been earned on or before that day. Selection of lands (3) A holder that has earned lands may select from those lands down to the base of the deepest zone into which they have drilled, as identified in accordance with Schedule 3. Constraints on selection (4) The lands selected under subsection (3) must (a) be contiguous, if their configuration permits; and (b) include the entire spacing unit in which the earning well is located.
Indian Oil and Gas Regulations — 53
Area less than 75% 53 (1) A permit holder that has drilled a well in a spacing unit whose area is composed of less than 75% First Nation lands may select only lands in the section in which the well is located, down to the base of the deepest zone into which they have drilled. Reduced earnings — new well (2) A holder that has drilled a new well, but has not drilled to the extent required by the earning provisions of their permit, may select only lands in the section in which the well is located, down to the base of the deepest zone into which they have drilled. Reduced earnings — re-entered well (3) A holder that has re-entered and completed a well, but has not drilled to the extent referred to in paragraph 52 (1)(b) and the earning provisions of their permit, may select only lands in the spacing unit in which the well is completed.
Indian Oil and Gas Regulations — 54
Application for approval 54 (1) A holder that wants a grant of oil and gas rights or interests for the intermediate term of their permit must apply to the Minister for approval of their selection of lands before the day on which the initial term of the permit expires or (a) if the permit has terminated under subsection 52 (2), within 15 days after the day referred to in that subsection; or (b) if the deadline for applying has been extended under subsection 62 (2), before the extension expires. Late application (2) A holder that fails to apply within the relevant deadline referred to in subsection (1) may apply for approval if the application is submitted within 15 days after the deadline and is accompanied by a late application fee of $5,000. Content of application (3) The application must be in the prescribed form and include (a) an identification and description of each well that has been drilled and each well that has been re-entered and completed; (b) a description of the lands, including the zones, selected for the intermediate term of the permit; and (c) the rent for the first year of the intermediate term. Additional information (4) Information about a well that is drilled, or re-entered and completed, within 30 days before the relevant deadline may be submitted up to 15 days after that deadline, unless the holder has received an extension under subsection 62 (2). Approval (5) On receiving an application, the Minister must (a) approve the selection of lands if the requirements of section 52 are met; and (b) grant the holder the oil and gas rights or interests in the selected lands for the intermediate term of the permit if the holder has complied with the requirements of the Act, these Regulations and their permit. Notice to holder and council (6) If the selection is approved and the oil and gas rights or interests are granted, the Minister must send the holder and the council a notice of the approval and a description of the lands, including the zones, selected for the intermediate term of the permit. If the selection is not approved, the Minister must send the holder a notice of refusal that sets out the reasons for the refusal.
Indian Oil and Gas Regulations — 55
Transitional provision 55 Sections 47 to 54 do not apply to a contract that was granted under the Indian Oil and Gas Regulations, 1995 .
Indian Oil and Gas Regulations — 56
Application for approval 56 (1) A subsurface contract holder may apply to the Minister for approval of a bitumen recovery project if they have achieved the minimum level of evaluation and have applied to the provincial authority for approval of the project. Minimum level of evaluation (2) The minimum level of evaluation is achieved when (a) one well is drilled on each section of the lands that are subject to the contract — if the section is in the proposed bitumen recovery project area — and at least 25% of those wells are cored; or (b) one well is drilled on at least 60% of the sections of the lands that are subject to the contract — if the sections are in the proposed bitumen recovery project area — at least 25% of those wells are cored and seismic data are obtained over at least 3.2 km in each undrilled section.
Indian Oil and Gas Regulations — 58
Approval 58 (1) The Minister must approve the bitumen recovery project if (a) the applicant has achieved the minimum level of evaluation of the lands in the project area; (b) a written resolution of the council approving the project has been submitted; (c) the application meets the requirements of subsections 57 (1) and (2); (d) the project has been approved by the provincial authority; and (e) the project can be carried out without causing irremediable damage to the First Nation lands. Terms and conditions of approval (2) The approval may include any terms and conditions that are necessary to permit the Minister to verify the progress of operations carried out under the project, payment of the approved royalty and implementation and compliance with the environmental protection measures.
Indian Oil and Gas Regulations — 59
Surface contract required 59 (1) The operations under a bitumen recovery project must not begin until the subsurface contract holder has obtained the surface contracts required by these Regulations. Compliance with measures (2) The holder must ensure that all environmental protection measures included in the approval are implemented and complied with.
Indian Oil and Gas Regulations — 60
Minimum level of production 60 (1) The annual minimum level of production of bitumen from the lands that are subject to a bitumen recovery project is equal to an average of 2 400 m 3 per section in the project area. Compensation — bitumen (2) If the annual minimum level of production of bitumen from the lands that are subject to the bitumen recovery project is not achieved in any year following the month in which that level was to be achieved, the subsurface contract holder must pay compensation equal to 25% of the difference between the value of the minimum level of production and the value of the actual level of production. Deemed price (3) For the purpose of calculating the compensation, the price of bitumen is deemed to be the monthly Bitumen Floor Price published by the Alberta provincial authority for the relevant time period. Exception (4) This section does not apply if the lands that are subject to the bitumen recovery project are the subject of an authorization under section 42 of the Indian Oil and Gas Regulations, 1995 .
Indian Oil and Gas Regulations — 61
Additional lands, wells or facilities 61 Once a bitumen recovery project has been approved, the subsurface contract holder must obtain the approval of the Minister and the council before adding lands, wells or facilities to the project.
Indian Oil and Gas Regulations — 62
Application for extension 62 (1) A subsurface contract holder may apply to the Minister, in the prescribed form, for an extension of the deadline for applying for approval of a selection of lands under subsection 54 (1) or for continuation under section 64 if (a) the holder has spudded or re-entered a well for the purpose of deepening it or completing a new zone, but cannot finish the operation before the relevant term expires; (b) the application is submitted before the relevant term expires; (c) the application identifies the well and indicates when it was spudded or re-entered; and (d) the application includes the rent for the following year. Approval of extension (2) If an application is submitted in accordance with subsection (1), the Minister must extend the deadline for applying for approval of a selection of lands or for continuation to the 30th day after the day on which the spudded or re-entered well is rig-released. The Minister must send the council a notice of the extension. Rights during extension (3) During an extension, the holder may continue to produce from any wells in the contract area that are already producing, but must not spud or re-enter any other wells in that area. Transitional provision (4) This section applies to a permit or lease granted under the Indian Oil and Gas Regulations, 1995 .
Indian Oil and Gas Regulations — 63
Qualifying lands 63 (1) A subsurface contract may be continued with respect to the zones, identified in accordance with Schedule 4, that are in a spacing unit (a) that contains a productive well; (b) that is subject, in whole or in part, to a unit agreement that includes lands in which a productive well is located, or to an oil or gas storage agreement that has been approved by the provincial authority; (c) that is subject to a bitumen recovery project that has been approved by the Minister; (d) that is subject to a project, other than a bitumen recovery project, that has been approved by the provincial authority and includes lands in which a productive well is located; (e) in respect of which an offset notice has been received in the six months before the day on which the application for continuation is submitted or in respect of which a compensatory royalty is being paid; (f) that is not producing but is shown by mapping to be capable of producing from the same pool from which a well on an adjoining spacing unit is productive; or (g) that is potentially productive. Horizontal and deviated wells (2) For the purposes of subsection (1), each spacing unit from which a horizontal well or deviated well is productive is deemed to contain a productive well. Potentially productive (3) For the purpose of paragraph (1)(g), a spacing unit is potentially productive if (a) it contains a well that is in a mapped pool, is neither productive nor abandoned and (i) was previously producing, or (ii) contains evidence of the presence of hydrocarbons whose potential productivity has not been conclusively determined; (b) it contains an abandoned well and any zone penetrated by the well has remaining oil or gas reserves; or (c) it has not been drilled, there is evidence that it may be part of a productive pool and it is within a quarter-section in the case of oil — or a section in the case of gas — that adjoins any spacing unit referred to in paragraphs (1)(a) to (e).
Indian Oil and Gas Regulations — 64
Application for continuation 64 (1) An application for the continuation of a subsurface contract may be made to the Minister before the day on which the lease or the intermediate term of the permit expires. Content of application (2) The application must be in the prescribed form and include (a) a description of the lands, including the zones, with respect to which continuation is sought; (b) an indication of the basis for continuation under subsection 63 (1) along with evidence of that basis; and (c) the rent for the first year of the continuation.
Indian Oil and Gas Regulations — 65
Determination 65 (1) On receiving an application for continuation, the Minister must determine which lands described in the application are in a spacing unit referred to in any of paragraphs 63 (1)(a) to (e) and must continue the contract with respect to those lands. Offer to continue (2) If the Minister determines that lands described in the application are in a spacing unit referred to in paragraph 63 (1)(f) or (g), he or she must send the holder an offer to continue the contract with respect to those lands. Continuation (3) The Minister must continue the contract with respect to lands in a spacing unit referred to in paragraph 63 (1)(f) or (g) if, within 30 days after the day on which the offer of continuation is received, the holder pays the Minister a bonus equal to the greater of (a) $2,000, and (b) $400 for each full or partial legal subdivision or, if the lands have not been divided into legal subdivisions, $400 for each unit of land equivalent to 16 hectares, rounded up to the nearest whole number of units. Notice to holder and council (4) The Minister must send the holder and the council a notice of his or her determination and — if the contract is continued — a description of the lands, including the zones, with respect to which it is continued as well as the basis for continuation. Rights before determination (5) Before notice of the Minister’s determination is received, the holder may continue to produce from any wells in the contract area that are already producing, but must not spud or re-enter any other wells in that area. Refund (6) If the contract is not continued, the Minister must refund the rent submitted with the application. If the contract is continued only in part, the Minister must refund the rent for the lands with respect to which the contract is not continued.
Indian Oil and Gas Regulations — 66
Continuation requested by council 66 (1) The Minister may continue, for a maximum period of five years, a contract in respect of lands for which continuation was not granted under subsection 65 (1) or lands for which continuation was granted under subsection 65 (3) if (a) the council requests the Minister to do so in a written resolution sent to the Minister that describes the lands, including the zones, to which the request relates and the requested period of continuation; (b) a request for continuation under this subsection has not previously been made in respect of those lands; (c) the written consent of the holder is sent to the Minister; (d) the resolution and consent are sent (i) in the case of a contract in respect of lands for which continuation was not granted under subsection 65 (1), within 30 days after the day on which the notice referred to in subsection 65 (4) is received, and (ii) in the case of a contract in respect of lands for which continuation was granted under subsection 65 (3), within 30 days after the day on which the continuation expires; and (e) the holder has paid the rent for the first year of the continuation. Additional bonus (2) If the Minister determines that an additional bonus must be paid to reflect the fair value, determined in accordance with section 38 , of the rights or interests to be continued, the Minister must not continue the contract unless that additional bonus is paid.
Indian Oil and Gas Regulations — 67
Failure to apply for continuation 67 (1) If a holder has not applied for continuation before the deadline referred to in subsection 64 (1), the Minister must determine, as soon as the circumstances permit and on the basis of the information in his or her possession, whether their contract is eligible for continuation under any of paragraphs 63 (1)(a) to (e). Notice of eligibility (2) If the contract is eligible for continuation, the Minister must send the holder a notice that includes the following information: (a) a description of the lands, including the zones, with respect to which the contract is eligible for continuation; (b) the basis for continuation; and (c) the requirements for an application for continuation, as well as the deadline for submission. Application for continuation (3) A holder that has received a notice of eligibility may, within 30 days after the day on which the notice is received, apply to the Minister, in the prescribed form, for continuation of the contract with respect to any of the lands described in the notice. Content of application (4) The application must include a description of the lands, including the zones, with respect to which continuation is sought, the rent for the first year of the continuation and a late application fee of $5,000. Continuation to be granted (5) If the holder pays the required rent and fee, the Minister must continue the contract with respect to the lands described in the application and send the holder and the council a notice of the continuation that describes the lands, including the zones, with respect to which it is continued as well as the basis for continuation.
Indian Oil and Gas Regulations — 68
Indefinite continuation 68 (1) A contract that is continued on the basis of any of paragraphs 63 (1)(a) to (e) continues so long as the lands that are subject to the contract continue to be eligible on that basis or until the contract is surrendered or cancelled. Continuation for one year (2) A contract that is continued under subsection 65 (3) continues for a period of one year after the day on which the contract would have expired had it not been continued.
Indian Oil and Gas Regulations — 69
Non-productivity — oil and gas 69 (1) If a contract that is continued in respect of lands on the basis of paragraph 63 (1)(a), (b), (d) or (e) ceases to be eligible for continuation on that basis, the Minister must send the holder a notice of non-productivity that describes those lands and indicates the basis on which the contract has ceased to be eligible. Non-productivity — expiry (2) A contract referred to in subsection (1) expires with respect to the lands described in the notice of non-productivity one year after the day on which the notice is received. Non-productivity — continuation (3) Before the expiry of a contract with respect to lands described in a non-productivity notice, the holder may apply under section 64 to have the contract continued with respect to those lands on the basis of any of paragraphs 63 (1)(a) to (e) other than the basis mentioned in the notice. Application for continuation (4) Before the expiry of a contract continued under subsection 65 (3) or section 66 , the holder may apply under section 64 to have the contract continued on the basis of any of paragraphs 63 (1)(a) to (e).
Indian Oil and Gas Regulations — 70
Inadequate productivity — bitumen 70 (1) In the case of a contract continued under paragraph 63 (1)(c), if the annual minimum level of production of bitumen from the lands that are subject to the bitumen recovery project is not achieved in any three years, whether or not the years are consecutive, the Minister must send the holder a notice of inadequate productivity with respect to those lands. Termination and expiry (2) If the annual minimum level of production of bitumen from the lands that are subject to the bitumen recovery project is not achieved in any year following the day on which the notice of inadequate productivity is received, (a) the project terminates on the final day of that year; and (b) the contract expires on the final day of that year, unless it is continued under subsection (3). Minister’s determination (3) When the Minister becomes aware that the annual minimum level of production of bitumen from the lands that are subject to a bitumen recovery project will not be achieved in a year and the contract may expire under paragraph (2)(b), he or she must determine, as soon as the circumstances permit and on the basis of the information in his or her possession, whether the contract is eligible for continuation under any of paragraphs 63 (1)(a), (b), (d) or (e) and, if so, must continue the contract on that basis.
Indian Oil and Gas Regulations — 71
Transitional provision — continuation 71 (1) Sections 63 to 68 apply to the continuation of any subsurface lease that was granted under the Indian Act or the Act before these Regulations came into force. Transitional provision — non-productivity (2) Section 69 applies to a subsurface lease that was continued under the Indian Act or the Act before these Regulations came into force if the lands in the lease area cease to be eligible for continuation on the basis on which the lease was continued. Transitional provision — inadequate productivity (3) Section 70 does not apply if the lands that are subject to the bitumen recovery project are the subject of an authorization under section 42 of the Indian Oil and Gas Regulations, 1995 .
Indian Oil and Gas Regulations — 72
Authorization 72 (1) A person may carry out surface operations on First Nation lands for the purpose of exploiting oil and gas if (a) in the case of operations that require crossing over or going through First Nation lands, they hold a right-of-way in those lands; and (b) in the case of operations that require the exclusive occupation and use of the surface of First Nation lands, they hold a surface lease in respect of those lands. Right of entry (2) A person that intends to apply for a surface contract in respect of First Nation lands to carry out operations referred to in subsection (1) may, with the authorization of the council and any First Nation member in lawful possession of those lands, enter on the lands to determine the location of proposed facilities, conduct surveys and carry out any operation necessary to submit an application under section 75 .