Canada Oil and Gas Land Regulations — 121
121 (1) Where an application is made for a special renewal permit pursuant to section 116 or 117 for any Canada lands in respect of which no declaration of significant discovery is in force, Petro-Canada Limited shall, on giving notice under subsection (6) that it exercises its rights under this section, have the right to be granted (a) where the Canadian participation rate of the applicant for the special renewal permit, determined pursuant to these Regulations is 25 per cent or more but not more than 35 per cent, a 10 per cent interest in the special renewal permit to be granted to the applicant; or (b) where the Canadian participation rate of the applicant for the special renewal permit, determined pursuant to these Regulations, is less than 25 per cent, a 10 per cent interest in the permit plus an additional interest therein, not exceeding 15 per cent, of one per cent for every one per cent that the Canadian participation rate falls below 25 per cent. (2) If, at the time an application is made for a special renewal permit, any well is being drilled on or adjacent to the Canada lands in respect of which the application is made, the application and the determination of the rights of Petro-Canada Limited under this section shall be held in abeyance until the results of the drilling of the well have been assessed by the Minister or a person designated by the Minister. (3) For the purposes of subsection (1), any existing interest of Petro-Canada Limited, directly or indirectly, in the lands to be included in the special renewal permit referred to therein shall be included when determining the Canadian participation rate pursuant to these Regulations. (4) On receipt of an application for a special renewal permit for Canada lands in respect of which no declaration of a significant discovery is in force, the Minister or a person designated by the Minister shall, in any case where the Canadian participation rate, determined pursuant to these Regulations, is 35 per cent or less, forthwith give notice in writing of the application to Petro-Canada Limited specifying the area to which the application relates and the identity of the applicant. (5) The Minister or a person designated by the Minister shall, as soon as possible, give notice in writing to Petro-Canada Limited of the terms and conditions of the special renewal permit that have been agreed on. (6) Within 60 days from the date of a notice given under subsection (5), Petro-Canada Limited shall give notice in writing to the Minister or a person designated by the Minister stating either that it exercises its rights under this section and, if so, to what extent, or that it chooses not to exercise those rights. (7) Where Petro-Canada Limited fails to give the notice required under subsection (6) in the time provided therefor or gives notice under that subsection that it chooses not to exercise its rights under this section, those rights are terminated with respect to the lands for which the application for the special renewal permit was made. (8) Subject to subsection (9), this section applies once only in respect of any lands that are the subject of an application for a special renewal permit. (9) Where Petro-Canada Limited has no rights under this section with respect to a particular application for a special renewal permit under section 116 or 117 because a declaration of significant discovery is in force at the time the special renewal permit is about to be granted and where that declaration is subsequently revoked with respect to that special renewal permit, Petro-Canada Limited shall, notwithstanding anything in these Regulations, have the rights granted by this section at the first time after such revocation that an application is made for renewal of the special renewal permit if at the time the renewal is about to be granted no other applicable declaration of a significant discovery is in force. 1991, c. 10, s. 19