Forms

2  The minister may prescribe forms for use under this Act.

 Interpretation for Part

6  (1)  In this Part, "Crown land" means Crown land not used or occupied by or on behalf of the government and includes

(a) land granted to a railway company under an Act and used or occupied by or on behalf of the company, and

(b) land used or occupied by or on behalf of a railway company subsidized by the government.

(2)  In this Part, if a disposition of surface rights of Crown land is made under the Land Act, the person to whom the disposition is made is deemed to be the owner of land in respect of those surface rights.

(3)  Despite subsection (2), for the purposes of this Part, a person is not deemed to be the owner of land in respect of surface rights acquired under a disposition of surface rights of Crown land made by

(a) a permit under section 14 of the Land Act, or

(b) a licence under section 39 of the Land Act

under which the person is granted the non-intensive occupation or use or occupation and use of an extensive area of Crown land for commercial recreational purposes.

(4)  For the purpose of subsection (3), the Lieutenant Governor in Council may make regulations defining "non-intensive", "extensive" or both.

 Entry on Crown land

7  Subject to section 9, the written consent of the commission and filing, with the minister charged with the administration of the Land Act and with any other members of the Executive Council the Lieutenant Governor in Council designates, a plan of the Crown land the operator intends to enter, a person may enter, occupy or use, subject to terms the commission determines, Crown land to explore for, develop or produce petroleum or natural gas or explore for, develop or use a storage reservoir under this Act.

 Development roads

8  (1)  The commission, on terms it may specify, may designate portions of Crown land, whether or not they are in a location, to be a development road for the purposes of exploring for, developing or producing petroleum or natural gas or exploring for, developing or using a storage reservoir.

(2)  A holder of a location may apply for a designation under subsection (1).

(3)  An application must be accompanied by the application fee, prepayment of the prescribed annual rental, and further information required by the commission.

(4)  A person may not construct or use a development road except under the regulations and the terms that apply to it.

(5)  Despite section 73 of the Assessment Act, a development road designated under subsection (1) must not, under another Act, be assessed or taxed as an improvement or as land or property.

 Agreement to enter land

9  (1)  A person may not enter, occupy or use land, other than Crown land, to explore for, develop or produce petroleum or natural gas or explore for, develop or use a storage reservoir unless

(a) the person makes, with each owner of the land, a surface lease in the form and content prescribed authorizing the entry, occupation or use,

(b) the board authorizes the entry, occupation or use, or

(c) as a result of a hearing under section 20, the board makes an order specifying terms of entry, occupation and use, including payment of rent and compensation.

(2)  A person who enters, occupies or uses land to explore for, develop or produce petroleum or natural gas or explore for, develop or use a storage reservoir is liable,

(a) to pay compensation to the land owner for loss or damage caused by the entry, occupation or use, and

(b) if the board so orders, to pay rent for the duration of the occupation or use.

(3)  For the purposes of subsection (2) (a), if a certificate of restoration is required after the entry, occupation or use, the liability for payment of compensation ends on the date stated in the certificate.

 Record of entry agreements

10  A person who has, under a surface lease containing rental provisions, the right to enter, occupy or use land other than Crown land to explore for, develop or produce petroleum or natural gas or explore for, develop or use a storage reservoir must, not more than 90 days after the date the person acquires the right, submit to the board his or her name, address, a description of the land and a copy of the surface lease.

 Renegotiation

11  (1)  This section applies despite a surface lease containing rental provisions made, order made or an authority given, before or after July 1, 1974, or anything done under the surface lease, order or authority.

(2)  If a person has, for a continuous period of 4 years, been entering, occupying or using land to explore for, develop or produce petroleum or natural gas or explore for, develop or use a storage reservoir, that person may, or an owner of the land may, on or after the next anniversary of the making of the lease, order or authority, on giving 60 days' notice in the prescribed form by registered mail to each owner of the land and to each person who is entering or occupying the land for the purpose stated or for a connected or incidental purpose, require renegotiation of rental provisions in the surface lease, order or authority.

(3)  Subsection (2) also applies if 4 years have elapsed since

(a) the completion of the last renegotiation of rentals under subsection (4), or

(b) the effective date of an order under section 12 (2).

(4)  If notice is given under subsection (2) or (3), the persons giving and receiving the notice may renegotiate the rental provisions by mutual agreement.

 Arbitration: other provisions

12  (1)  If rental provisions are not renegotiated under section 11 (4) within 6 months after the expiration of the notice, an owner of the land or person entering, occupying or using the land for a purpose referred to in section 11 (2) may apply in writing to the board for arbitration under section 17 (3).

(2)  If an application is made for arbitration, an order may be made varying the rental provisions, or may be refused.

(3)  A renegotiation or order under section 11 or this section is effective from the immediate past anniversary date of the surface lease preceding the notice and is retroactive to the extent necessary to give effect to this subsection, but in all other respects the surface lease, order or authority remains in force.

(4)  Despite anything in a subsisting surface lease made before or after July 1, 1974 or the termination of the surface lease, the rentals payable under it continue to be payable until the commission has issued a certificate of restoration for the leasehold, and this subsection is retroactive to the extent necessary to give effect to its provisions.

 Mediation and Arbitration Board

13  (1)  The Mediation and Arbitration Board is continued consisting of up to 9 individuals appointed as follows by the Lieutenant Governor in Council after a merit based process:

(a) one member designated as the chair;

(b) one member designated as the vice chair after consultation with the chair;

(c) other members appointed after consultation with the chair.

(2)  A vacancy in the board's membership does not impair the right of the remaining board members or member to act.

(3)  The Lieutenant Governor in Council may provide the following:

(a) the number of members to constitute a quorum;

(b) the board's duties and those of a member;

(c) [Repealed 2003-47-53.]

(d) the rules of procedure for board applications and hearings.

(4)  The board may, subject to the Public Service Act, appoint employees, and designate their title, office and responsibilities, as may be required to carry out the proper business of the board, and may, despite the Public Service Act, appoint casual and temporary employees when necessary for the proper functioning of the board.

(5)  [Repealed 2004-45-142.]

(6)  Sections 1 to 11, 14, 17, 19 to 21, 29, 30, 32, 34 (3) and (4), 36, 38 to 42, 44, 46.3, 47 to 49, 55 to 57, 59, 60 (a), (b) and (d) to (f) and 61 of the Administrative Tribunals Act apply to the board.

 Repealed

14  [Repealed 2004-45-143.]

 Powers and duties of board

15  (1)  The board may sit at any place in British Columbia, and for any of its proper business purposes, enter and inspect, or authorize a board member or employee to enter and inspect, a facility, land, location or record.

(2)  The board must

(a) prepare a record of every proceeding before it, and

(b) provide any person, on application during normal business hours and payment of the fee, with copies of a record in the custody of the board.

(2.1)  If the board transcribes or tape records a proceeding, the transcription or tape recording constitutes part of the record of the proceeding and is deemed to be correct.

(2.2)  If, because of a mechanical or human failure or other accident, the transcription or tape recording is destroyed, interrupted or incomplete, the validity of the proceeding is not affected.

(3)  The board has custody of its records and of documents filed with the board in the board's proceedings.

(4)  The board is responsible for drawing orders and rulings of the board, and for filing those orders and rulings with their appropriate records.

 Application for mediation and arbitration

16  (1)  A person may apply to the board for mediation and arbitration under this section if the person

(a) requires land to explore for, develop or produce petroleum or natural gas or explore for, develop or use a storage reservoir or for a connected or incidental purpose, and an owner of the land refuses to grant a surface lease satisfactory to that person authorizing entry, occupation or use for that purpose,

(b) is the owner of land that is entered, occupied or used for a purpose referred to in paragraph (a), and damage to the land or suffering to the owner is caused by the entry or occupation, or

(c) is a person referred to in section 129.

(2)  Subject to the board's rules of procedure, the application must be made in the form the board requires and must be accompanied by

(a) an affidavit of the applicant, listing the name and address of each person directly affected, or who could reasonably be expected to be directly affected, by an order on the application, and verifying service of the application by registered mail on each person,

(b) if Crown land could reasonably be expected to be affected by an order, an affidavit verifying service of the application by registered mail on the commission and the minister responsible for the Land Act, and

(c) if the application is for the purposes of a development road or conservation scheme, a copy of the commission's approval of, or order for, the road or scheme.

(3)  Subsection (1) does not apply in respect of geophysical exploration.

 Further information and dates

17  (1)  If the board believes that further information is required to hear and consider the application, or that the applicant has not served every person who would be directly affected, the board may require the applicant to provide further information or serve those persons.

(2)  The application is deemed not to be received until the applicant provides the board with the further information or submits an affidavit verifying service of the application on the other persons directly affected.

(3)  The chair must, promptly after the board receives an application under section 12, 16 or this section, set, after consultation with the applicant and the persons most likely to be directly affected by an order on the application, the places and dates of mediation and arbitration hearings, as the case may be.

 Mediation hearing

18  (1)  The chair, or a member the chair designates, must summarily hear representation by or on behalf of the applicant and persons likely to be directly affected, and must act as mediator for the purpose of resolving the complaint specified in the application.

(2)  If, after the first mediation hearing, the application is not withdrawn and the complaint or issue specified in the application is not resolved, the mediator may

(a) dismiss the application,

(b) set one or more mediation hearings, or

(c) if the mediator believes that the complaint or issue cannot be summarily resolved by mediation, make an order refusing further mediation hearings.

(3)  If an application is made under section 16 (1), and if the mediator believes, as a result of a mediation hearing, that the applicant should be permitted to enter, occupy or use the land, the mediator may make an order under section 19.

(4)  If an applicant alleges in an application made under section 16 (1) that money is due to the applicant, the mediator may, as a result of a mediation hearing, order that the amount the mediator determines be paid to the applicant by the person or persons, and in the proportions the mediator may specify.

(5)  An order of the mediator under subsection (4) is not final unless every person directly affected by the order approves of it or the board confirms the order.

 Entry, occupation or use order

19  (1)  A mediator may make an order permitting, subject to the terms the mediator may specify in the order, an applicant under section 16 to enter, occupy or use the land for a purpose stated in that section.

(2)  Before making an order, a mediator must

(a) require the applicant to deposit with the board security in the amount, form and manner that the mediator considers necessary for the purpose of ensuring that the owners of the land will be paid any amount ordered subsequently to be paid to them,

(b) require the applicant to pay to the owners, as partial payment of the amount subsequently ordered by the board to be paid to them, an amount of money not less than 1/2 the amount of security required to be deposited, and

(c) require the applicant to serve a copy of the order on each owner of the land, and direct the manner of service.

(3)  Despite subsection (2), the board, on application at any time, may require the applicant to pay to the owners under subsection (2) (b) additional amounts the board considers proper.

(4)  In determining an amount of money to be paid, the board is not bound by an order of the mediator under section 18 (4) or by a requirement of the mediator under subsection (2).

 Arbitration hearing

20  (1)  Unless the application is withdrawn or the applicant and the person who will likely be directly affected by an order approve the order of the mediator, the board must hear representation by or on behalf of the applicant and persons likely to be directly affected by an order, and must arbitrate for the purpose of resolving the complaint specified in the application.

(2)  Unless the applicant and the other persons otherwise agree, the board must review an order of the mediator made under section 19, and may confirm or vary the order, subject to the terms it considers proper.

(3)  Unless the applicant and the other persons otherwise agree, the board,

(a) if a mediator has made an order under section 18 (4), must review the order, confirm it or vary it in the manner and subject to the terms the board considers proper,

(b) if a mediator has not made an order under section 18 (4), must determine the amount of money to be paid to a person, as rent for occupation or use, or for damage caused, up to the date stated in a certificate of restoration, for the entry, occupation or use, and

(c) may determine the disposition of the amount remaining of the deposit required under section 19 (2) as between the applicant and the owner.

 Determining amount

21  (1)  In determining an amount to be paid periodically or otherwise on an application made under section 12 or 16 (1), the board may consider

(a) the compulsory aspect of the entry, occupation or use,

(b) the value of the land and the owner's loss of a right or profit with respect to the land,

(c) temporary and permanent damage from the entry, occupation or use,

(d) compensation for severance,

(e) compensation for nuisance and disturbance from the entry, occupation or use,

(f) money previously paid to an owner for entry, occupation or use,

(g) other factors the board considers applicable, and

(h) other factors or criteria established by regulation.

(2)  In determining an amount to be paid on an application under section 12, the board must consider any change in the value of money and of land since the date the surface lease, order or authority was originally or last granted.

 Termination of order

22  (1)  If 2 years have expired since an order made by the mediator or the board authorizing entry, occupation or use of land, the applicant for the order may, on not less than 90 days' notice to the land owner, apply to the board for an order terminating the previous order.

(2)  Subject to the board's rules of procedure, an application must be made in the form the board requires.

(3)  On receiving the application, the chair must without delay set, after consulting the applicant and the persons likely to be directly affected by an order, a date and place of hearing.

(4)  The chair, or other board members the chair designates, must summarily hear representation by or on behalf of the applicant and persons who will likely be directly affected by an order resulting from the application, and may dismiss the application, or dismiss it subject to the terms and conditions he or she considers appropriate, or make an order terminating the previous order, conditional on

(a) the removal of all equipment and facilities used in respect of and the restoration of all land directly affected by the entry, occupation or use, and

(b) obtaining from the commission a certificate of restoration in respect of the land.

(5)  An application is not required if all persons likely to be directly affected by termination of the previous order agree to the termination and so long as the conditions in subsection (4) are complied with.

 Repealed

23–24  [Repealed 2004-45-150.]

 Service and registration of order

25  (1)  If an order is made by the board, the board must provide notice of the order to the applicant and to any other persons directly affected by that order.

(2)  If the board makes an order on an application under section 16 (1) (a), the applicant must not enter, occupy or use the land until the owner of the land has received a certified copy of the order.

(3)  If the board makes an order authorizing or terminating entry, occupancy or use of land, the applicant for the order must file a certified copy of the order with the registrar of the appropriate land title district, who, on payment of the appropriate fees, must endorse his or her records accordingly.

(4)  An order made by the board is effective on the date it is issued by the board unless the order specifies otherwise.

(5)  If the board is of the opinion that because there are so many parties to an application or for any other reason it is impracticable to give notice of its final order to all or any of the parties individually, the board may give notice of its final order by public advertisement or otherwise as the board directs.

(6)  If the board gives notice under subsection (5) of a final order, the notice must inform the parties where copies of the final order may be obtained.

(7)  The board must provide for public access to its orders.

 Review and enforcement of order

26  (1)  An order of the mediator or board granting the right to enter, occupy or use land may be enforced in the same manner as a writ of possession issued by a court.

(2)  The board may, on its own motion or on application,

(a) rehear an application before making a determination, and

(b) review, rescind, amend or vary a direction or order made by it, the chair or a board member.

 Repealed

27  [Repealed 2004-45-152.]

 Certified copies

28  A certified copy of an order of the board signed by the chair, or the secretary of the board if appointed, must be admitted as evidence of the order by the board.

 Assignment

29  An order by the board may be assigned by

(a) serving notice of the assignment on the other parties named in the order,

(b) filing a certified copy of the assignment with the board, and

(c) filing the assignment with the registrar of the appropriate land title district, who, on payment of the appropriate registration fee, must endorse against the indefeasible or absolute title of the land affected by the assignment.

 Failure to pay money

30  If the owner of land in respect of which an order was made by a mediator or the board refuses to comply with the order, the applicant for the order may apply to the board to deduct from any compensation to be determined and awarded to the owner under the order an amount covering the cost of and incidental to obtaining entry on, or occupancy and use of, the land according to the order, which amount is at the sole discretion of the board.

 Regulations for this Part

31  The Lieutenant Governor in Council may prescribe the following:

(a) the form, manner and content of a surface lease;

(b) the form and manner of making an application to the board;

(c) factors or criteria to be used in determining compensation;

(d) development road rentals.

7  Subject to section 9, the written consent of the commission and filing, with the Minister of Lands, Parks and Housing and with any other members of the Executive Council the Lieutenant Governor in Council designates, a plan of the Crown land the operator intends to enter, a person may enter, occupy or use, subject to terms the commission determines, Crown land to explore for, develop or produce petroleum or natural gas or explore for, develop or use a storage reservoir under this Act and the regulations.

 Entry on Crown land

7  Subject to section 9, the written consent of the commission and filing, with the Minister of Lands, Parks and Housing and with any other members of the Executive Council the Lieutenant Governor in Council designates, a plan of the Crown land the operator intends to enter, a person may enter, occupy or use, subject to terms the commission determines, Crown land to explore for, develop or produce petroleum or natural gas or explore for, develop or use a storage reservoir under this Act.

 Evidence

14  (1)  Each board member has, for the board's proper business purposes, the power and authority of a commissioner under the Inquiry Act, and the power and authority that may be conferred on a commissioner under sections 12, 15 and 16 of that Act.

(2)  The board may receive and accept evidence and information on oath, affidavit or otherwise as in its discretion it considers proper, whether or not the evidence is admissible in a court.

 Adjournment

23  The board may, at any time, adjourn a hearing for the period of time it considers appropriate.

 Supreme Court

24  (1)  The board may, at any stage of a hearing, submit a question of law to the Supreme Court, and may reserve its decision until the court has given an answer.

(2)  An appeal lies from an order of the board to the Supreme Court on any point or question of law raised before the board.

 Costs

27  (1)  The board may award costs of or incidental to any proceedings before the board, the chair or a board member, and may fix the amount of the costs and determine who must pay those costs.

(2)  The board may prescribe a scale for awarding costs.

 Regulations for this Part

36  The commission may make regulations as follows:

(a) governing the methods and manner and places in which geophysical exploration may be carried out and empowering designated employees of the commission to

(i)  require persons carrying out the exploration to clean up, restore and reclaim land and improvements affected by the exploration,

(ii)  require those persons to post performance bonds for the due performance of the cleanup, restoration and reclamation, and

(iii)  deduct or recover the costs of the cleanup, restoration and reclamation from those performance bonds;

(b) providing for reports to the commission.

 Geophysical licence

32  (1)  A person, on the person's own behalf or for or on behalf of others, must not undertake geophysical exploration unless he or she is the holder of a subsisting geophysical licence.

(2)  An application for a licence must be made to the commission.

(3)  The commission may issue or renew a geophysical licence for the prescribed term on receiving an application and on payment of the prescribed fee or may refuse to issue or renew a geophysical licence.

(4) and (5)  [Repealed 2002-26-26.]

 Approval of geophysical exploration project

33  (1)  The holder of a geophysical licence must not undertake geophysical exploration unless the commission, subject to conditions it may impose, approves of the holder's application in the prescribed form for the particular geophysical exploration project.

(2)  The commission may revoke an approval given under subsection (1) or may vary conditions imposed by it if it considers that the conditions or regulations have not been complied with.

(3)  Despite the granting of an approval under subsection (1), an employee of the commission designated by the commission may order work on a geophysical exploration project to stop if the designated employee considers that unreasonable damage to the terrain or environment will be caused by continuation of the project.

(4)  Unless confirmed or varied by the commission within 14 days after the making of an order under subsection (3), the order ceases to have effect.

(5)  [Repealed 1998-39-33.]

 Licence not transferable

34  A geophysical licence is not transferable except in cases of corporate merger, amalgamation or succession, and then only with the written consent of the commission.

 Cancellation of licence

35  (1)  The commission may cancel a geophysical licence for failure to comply with this Act or the regulations.

(2)  Unless a condition exists that the commission considers a danger to any person or to public or private property, the commission must not cancel a geophysical licence until the commission has given the holder at least 30 days' notice to rectify the default and the default is not rectified within the notice period.

 Regulations for this Part

36  (1)  The commission may make regulations as follows:

(a) governing the methods and manner of geophysical exploration and the places in which it may be carried out;

(b) empowering designated employees of the commission to

(i)  require persons carrying out geophysical exploration to clean up, restore and reclaim land and improvements affected by the exploration,

(ii)  require those persons to post performance bonds for the due performance of the clean-up, restoration and reclamation, and

(iii)  deduct or recover the costs of the clean-up, restoration and reclamation from those performance bonds;

(c) providing for reports to the commission;

(d) setting the terms for geophysical licences and renewals of geophysical licences.

(2)  A regulation made under this section may provide that commission employees designated by the commission may, in writing, exempt a person from the application of all or part of the regulation, in relation to a particular geophysical exploration project and subject to specified conditions.

Permit: dimensions of location

37   The location for which a permit is issued must be a block, except if the location is

(a) adjacent to a boundary of British Columbia,

(b) in an area in which petroleum and natural gas is reserved by the government,

(c) less than a block and approved by the minister, or

(d) in the Peace River Block or as provided for in section 124.

 Rights conferred by permit

38  (1)  Subject to subsection (2) and to section 32, the holder of a permit has the exclusive right to do geological work and geophysical exploration work and exploratory drilling for petroleum or natural gas, or both, on land owned by the government and in the boundaries of the location of the permit.

(2)  The issue or existence of a permit does not prohibit a person other than the holder of the permit from

(a) carrying out test hole drilling in the boundaries of the location of the permit, or

(b) carrying out geological work or geophysical exploration other than test hole drilling in accordance with any regulations.

(3)  A person who does test hole drilling described in subsection (2) must not interfere with the operations of the holder of the permit for the location on which the drilling is done.

Excess work

48   If a permittee has, in any year, done or caused to be done and recorded work in excess of that required under the regulations, and details of expenditure for it made have been included in an affidavit filed under section 47, the excess work is deemed to have been done in one or more of the 3 years immediately following the year in which it was done.

Excess work

48   If a permittee has, in any year, done or caused to be done and recorded work in excess of that required under the regulations, and details of expenditure made for it have been included in an affidavit filed under section 47, the excess work is deemed to have been done in one or more of the 3 years immediately following the year in which it was done.

Right to reduce permit

49   At the request in writing of a permittee, on renewal of a permit the location may be reduced

(a) to a block or blocks described in section 124, or

(b) if the location is not made up of blocks, to an area approved by the minister.

  The Lieutenant Governor in Council may make regulations respecting

Rental and reductions

54   Without limiting section 133, the Lieutenant Governor in Council may make regulations respecting

(a) annual rental payments for leases,

(b) the circumstances under which and the amounts by which reductions in lease rental payments may be made,

(c) the manner of making applications for a reduction, and

(d) the powers of the minister and the director in relation to the circumstances referred to in paragraph (b).

Dimensions of locations

55   (1) The location of a lease must have 4 boundaries, and the dimensions of the lease must be 2 units by 2 units, 2 units by 4 units, 4 units by 4 units, 4 units by 6 units, 4 units by 8 units or 6 units by 6 units, unless the location is

(a) in the Peace River Block or in an area provided for in section 124, or

(b) to be the location of a lease issued under section 71 or 72.

(2) The boundaries of the location of a lease to which subsection (1) applies must, unless otherwise approved by the director, coincide with the boundaries of natural gas well spacing areas.

(3) The location of a lease must either corner, or be separated from, the location of every other lease issued from the same permit by a distance not less than the width or length of 2 units.

(4) The permittees of adjoining permits may agree to a lease, or concentration of leases, along the mutual boundaries of the locations of 2 or more permits, but the lease, or concentration of leases, must not exceed the dimensions set out in subsection (1).

(5) A permittee and the holder of an adjoining location may agree to a concentration of leases along the common boundaries of their locations but the dimensions of the lease issued from the permit must not exceed 3 units by 4 units.

(6) Despite subsection (4), if the boundary of the location of a permit coincides with a boundary of British Columbia, a boundary of the location of any lease derived from the location of the permit may coincide with that boundary of British Columbia.

(7) If, because of the shape and dimensions of the location of a permit, the permittee is unable to apply for leases with locations that enable the permittee to obtain the area to which he or she is entitled under this Act, the minister may grant leases with locations that do not meet those requirements but that do not exceed in size the largest location that may otherwise be specified in a lease.

Work specified

56   (1) This section applies only to a petroleum and natural gas lease the location of which

(a) was derived from a location of a permit for which the requirements have not been fulfilled under sections 43, 44 and 45 for the fourth renewal, or

(b) was not in a location of a permit held by the applicant for the lease.

(2) There must be included in every lease specified in subsection (1) a requirement that, during the time specified in the lease, the lessee will complete the work required to be completed during the first 5 years of a permit having a minimum sized location and of the same classification as those in the immediately surrounding area.

(3) This section does not apply to a disposition made under

(a) section 71 or 72, or

(b) a regulation under section 133 (2) (e).

Grouping

57   (1) If a grouping notice in the prescribed form has been recorded with the director, exploratory work done on the location of a petroleum and natural gas lease may be considered to have been done anywhere in that location and the location of other petroleum and natural gas leases, each of which lies partially or wholly within a circle having a 20 km radius, and all of which occupy not more than 144 units.

(2) If a program of exploratory work beyond the boundaries of locations described in the grouping notice has been approved by the director before the commencement of the work, that work may be considered to have been done within the boundaries of the locations.

(3) The identity of the locations on which it is intended to do work under subsection (1) must be included in the notice to the director, and the same location must not be included in more than one notice during the period that elapses between anniversaries of the date of lease issue.

(4) Subsection (1) does not apply after the holder of a lease the location of which is comprised in a notice under that subsection notifies the director that the notice is no longer effective.

(5) A location on which exists a well capable of production must not be included in a grouping notice.

(6) This section does not apply to a lease after the initial term of the lease expires.

 Stratigraphic reversion

59  (1)  If at the relevant time referred to in this section, a lease is continued under section 58, the petroleum and natural gas rights granted by the lease that are stratigraphically below the base of the deepest zone known by the director to be capable of production in the lease or the part of the lease reverts to the government and does not continue under the lease

(a) in the case of a 5 year lease, on the expiration of its initial term,

(b) in the case of a 10 year lease, on the expiration of its initial term,

(c) in the case of a 10 year lease that is a renewal of a 21 year lease, on the expiration of its term, and

(d) in the case of a 21 year lease, on the expiration of its initial term.

(2)  If at the relevant time referred to in this section, all or part of the lease is being continued under section 61 or 62, subsection (1) applies to that lease for the part so continued on the date on which the continuation ceases under section 61 or 62, as the case may be.

Continuation with penalty

62   (1) In this section, "10 year lease" means a lease that, under section 58 (2), expires on the 10th anniversary of the date it is issued.

(2) The term of a 10 year lease not continued under section 58, 61 or 61.1 may be continued in respect of all or part of its location for a maximum of 3 years on payment to the government of the rental in accordance with the regulations, and of a penalty of $15 for the first year or $25 for the second and third years multiplied in each case by the number of hectares in the lease location.

Continuation with penalty

62   (1) Subject to regulations, if any, made under section 133 (2) (n.1), the term of a lease not continued under section 58 (3), 61 or 61.1 may be continued, on payment to the government of the prescribed rental and the prescribed penalty, for one year in respect of all or part of its location.

(2) A lease

(a) may not be continued under subsection (1) more than 3 times, and

(b) may be continued under subsection (1) immediately after

(i) the expiry of a previous continuation under that subsection, or

(ii) a continuation under section 58 (3), 61 or 61.1.

63  Despite sections 58, 61 and 62, if a lessee fails to pay the rental or do work required under section 56, the lease expires 60 days after the date the rental was payable unless on or before the 60 days have elapsed, the lessee pays

Default in rental or work

63   Despite sections 58, 61, 61.1 and 62, if a lessee fails to pay the rental or do work required under section 56, the lease expires 60 days after the date the rental was payable unless on or before the 60 days have elapsed, the lessee pays

(a) the rental and does the work, and

(b) in addition, as a penalty for each 30 day period or portion of a period that he or she is in default, a sum equal to 1.5% of the rental and value of the work.

Surrender of leases

64   With the approval of the minister, a lease may be surrendered in whole or in part at any time, and a new lease issued.

 Prohibition

67  If a location contains other than a normal spacing area for a natural gas well, the commission may issue a well authorization for the drilling of a natural gas well on it, but production may not be taken from the location until it is pooled with adjoining areas to form a normal spacing area or a spacing area prescribed under section 133 (2) (r).

 No production unless other than normal spacing areas pooled with adjoining areas

67  (1)  If a location contains other than a normal spacing area for a natural gas well, the commission may issue a well authorization for the drilling of a natural gas well on it, but production may not be taken from the location until it is pooled with adjoining areas to form a normal spacing area or a spacing area prescribed or ordered under section 65.1.

(2)  Subsection (1) applies to land referred to in section 85 (c) (ii) as if it were a location.

 Disposal of Crown reserves

71  (1)  The minister may dispose of Crown reserves of petroleum and natural gas, oil sand, oil sand products, oil shale and oil shale products under terms the minister sees fit, and a disposition must be at public auction or public tender not sooner than 2 weeks after publication of a notice of the intended disposal in the Gazette.

(2)  Unless otherwise directed by the minister,

(a) a lease issued under this section is subject to the terms of this Act as though it had been applied for and issued under Part 6, and

(b) a permit issued under this section is subject to the terms of this Act as though it had been issued under Part 5.

(3)  Section 56 does not apply to a disposition under this section or under any regulation made under section 133 (2) (e).

 Withdrawal from disposition

72  (1)  The minister may, by order, withdraw Crown reserves of petroleum or natural gas from disposition under section 71.

(2)  Crown reserves withdrawn under subsection (1) remain withdrawn until the withdrawal order is cancelled by the minister and may be developed, managed or disposed of by the minister in accordance with the terms and for the price approved by the Lieutenant Governor in Council.

77  (1)  If the administrator has knowledge or suspects that a person is or is about to become indebted or liable to make a payment to a producer, the administrator may demand that the person pay all or part of the money otherwise payable to the producer to the administrator on account of the producer's liability under this Act.

(2)  Without limiting subsection (1), if the administrator has knowledge or suspects that a person is about to advance money to, or make a payment on behalf of, or make a payment in respect of a negotiable instrument issued by a producer, the administrator may demand that the person pay to the administrator on account of the producer's liability under this Act the money that would otherwise be advanced or paid.

(3)  If under this section the administrator demands that a person pay to the administrator, on account of the liability under this Act of a producer, money otherwise payable by that person to the producer as interest, rent, remuneration, a dividend, an annuity or other periodic payment, the demand

(a) applies to all of those payments to be made by the person to the producer until the liability under this Act is satisfied, and

(b) operates to require payments to the administrator, out of each payment, of the amount stipulated by the administrator in that demand.

(4)  Money or a beneficial interest in money in a savings institution

(a) on deposit to the credit of a producer at the time a demand is served, or

(b) deposited to the credit of a producer after a demand is served

is money for which the savings institution is indebted to a producer within the meaning of this section, but money on deposit or deposited to the credit of a producer as described in paragraph (a) or (b) does not include money on deposit or deposited to the credit of a producer in the producer's capacity as a trustee.

(5)  A demand under this section continues in effect until

(a) the demand is satisfied, or

(b) 90 days after the demand is mailed or served,

whichever is earlier.

(6)  Despite subsection (5), a demand made in respect of a periodic payment referred to in subsection (3) continues in effect until it is satisfied unless no periodic payment is made or is liable to be made within 90 days after the demand is mailed or served, in which case the demand ceases to have effect on the expiration of that period.

(7)  A person who fails to comply with a demand under subsection (1) or (3) is liable to pay to the government an amount equal to the amount that the person was required under subsection (1) or (3), as the case may be, to pay to the administrator.

(8)  A person who fails to comply with a demand under subsection (2) is liable to pay to the government an amount equal to the lesser of

(a) the aggregate of the money advanced or paid, and

(b) the amount that the person was required under subsection (2) to pay to the administrator.

(9)  The receipt of the administrator for money paid under this section is a good and sufficient discharge of the original liability to the extent of the payment.

(10)  Money paid by any person to the administrator in compliance with a demand under this section is deemed to have been paid by that person to the producer in respect of which the demand was made.

(11)  If a person carries on business under a name or style other than the person's own name, a demand under subsection (1), (2) or (3) may be addressed to the name or style under which the person carries on business and, in the case of personal service, is deemed to be validly served if it is left with an adult person employed at the addressee's place of business.

(12)  If persons carry on a business in partnership, a demand under subsection (1), (2) or (3) may be addressed to the partnership in its name and, in the case of personal service, is deemed to be validly served if served on one of the partners or left with an adult person employed at the partnership's place of business.

 Agreement establishing royalty

78  Despite section 73 and the regulations under that section, the minister may make an agreement establishing the amount of royalty to be paid to the government, and the method of calculating the royalty, on petroleum and natural gas produced from a unitized operation or as the result of a conservation plan, scheme or project, including, but not limited to, injection or pressurization schemes.

Agreement establishing royalty

78   Despite section 73 and the regulations under that section, the minister may make an agreement establishing the amount of royalty to be paid to the government, and the method of calculating the royalty, on petroleum and natural gas produced from a unitized operation or as the result of a conservation plan or a special project under section 75 of the Oil and Gas Activities Act.

 Conservation: application

82  This Part and Parts 7 and 8 apply to every well located in British Columbia whenever drilled.

 Well authorization

83  A person must not begin to drill, or drill or operate, a well except under a subsisting well authorization.

 Certificate of restoration

84  (1)  A person must be considered not to have abandoned a well, test hole or production facility until the commission issues, on application, a certificate of restoration respecting the well, test hole or production facility.

(2)  By issuing a certificate of restoration in the form the commission determines, the commission may certify that it is satisfied, on the basis of the information known to the commission at the time of certification, that a well, test hole or production facility has been abandoned in accordance with the regulations.

(3)  In respect of any matter that was not known to the commission at the time a certificate of restoration was issued, the issue of a certificate of restoration does not absolve the holder of a well authorization or test hole authorization or the owner of a production facility from their obligation to abandon the well, test hole or production facility in accordance with the regulations.

 Environmental Management Act requirements must be met

84.1  (1)  This section applies to an application for a certificate of restoration with respect to a well, test hole or production facility in accordance with section 84.

(2)  The commission must not approve an application referred to in subsection (1) with respect to a site where a site profile is required under section 40 of the Environmental Management Act unless at least one of the following is satisfied:

(a) the commission has received a site profile required under section 40 of the Environmental Management Act with respect to the site and the commission is not required to forward a copy of the site profile to a director under section 40 (4) (b) of that Act;

(b) the commission has received a site profile under section 40 of the Environmental Management Act with respect to the site, has forwarded a copy of the site profile to a director under section 40 (4) (b) of that Act and has received notice from the director that a site investigation under section 41 of that Act will not be required by the director;

(c) the commission has received a final determination under section 44 of the Environmental Management Act that the site is not a contaminated site;

(d) the commission has received notice from a director under the Environmental Management Act that the commission may approve an application under this section because, in the opinion of the director, the site would not present a significant threat or risk if the application were approved;

(e) the commission has received notice from a director under the Environmental Management Act that the director has received and accepted a notice of independent remediation with respect to the site;

(f) the commission has received notice from a director under the Environmental Management Act that the director has entered into a voluntary remediation agreement with respect to the site;

(g) the commission has received a valid and subsisting approval in principle or certificate of compliance under section 53 of the Environmental Management Act with respect to the site.

 Applications

85  An application for a well authorization must be made to the commission and is not valid unless

(a) it is accompanied by the fee and prescribed drilling deposit,

(b) it is made in accordance with the regulations,

(c) the applicant is entitled

(i)  to drill the well for which the authorization is requested,

(ii)  to drill for and produce petroleum or natural gas, or both, or

(iii)  to drill for and operate a storage reservoir,

as one of the following:

(iv)  the holder of the location of a permit, drilling licence or lease under section 50 on which the well is to be drilled, or by agreement with the holder, if the application relates to land in which the petroleum and natural gas rights are held by the government;

(v)  the holder of the location of a storage reservoir lease under section 130 on which the well is to be drilled, or by agreement with the holder of the location;

(vi)  the owner of the petroleum and natural gas rights, or by agreement with the owner, if the application relates to land in which the petroleum and natural gas rights are not held by the government;

(d) it contains the number or other accurate identification of the location held by the applicant in which the well is to be drilled and, when an agreement exists, a letter of consent from the holder of the location, and

(e) there is a program of drilling operations proposed to be followed under the authorization.

 Cancellation

86  A well authorization may be cancelled by the commission

(a) if the drilling of the well for which the authorization was issued is not begun within 90 days of the date of issue of the authorization,

(b) at the request of the person to whom the authorization was issued,

(c) if it appears to the commission that there has been a contravention of this Act or a regulation or order made for the well for which the authorization was issued,

(d) if the commission has mailed to the person to whom the authorization was issued a notice requiring that person to prove to the satisfaction of the commission that he or she is entitled to drill the well for which the authorization was issued or to drill for and extract petroleum or natural gas, or both, through the well, and the person has not, on or before the 30th day after the day on which the notice was mailed, complied with the requirement, or

(e) if the commission is satisfied that the holder of the well authorization is not entitled to drill the well for which the authorization was issued or to drill for and extract petroleum or natural gas, or both, through the well

(i)  as the holder of the location, or by agreement with the holder, if the well authorization relates to land in which the petroleum and natural gas rights are held by the government,

(i.1)  as the holder of the location of a storage reservoir lease under section 130 on which the well is to be drilled, or by agreement with the holder of the location, or

(ii)  as the owner of the petroleum and natural gas rights, or by agreement with the owner, if the well authorization relates to land in which the petroleum and natural gas rights are not held by the government.

 Suspension

87  The commission may suspend a well authorization for a definite time or indefinitely if satisfied that a contravention of this Act or a regulation or order has occurred regarding the well for which the authorization was granted.

 Obligations on abandonment of a well or cancellation of a well authorization

88  If any of the following circumstances exist, a person who drills a well, produces petroleum or natural gas from a well or operates a storage well must complete or abandon the well, or suspend operations, in accordance with the regulations and directions that may be given by the commission:

(a) the person drills or operates the well without a valid well authorization;

(b) the person is the holder of a well authorization but ceases to be the holder of the location;

(c) the person fails to maintain a required agreement referred to in section 85 (c);

(d) the commission cancels the well authorization.

 Test hole authorization

89  A person must not begin to drill or drill a test hole except under a subsisting test hole authorization under this Act.

 Application

90  An application for a test hole authorization must be made to the commission and is not valid unless all of the following requirements are met:

(a) it is accompanied by the fee;

(b) it is made in accordance with the regulations;

(c) if the application is in respect of land in which the petroleum and natural gas rights are not held by the government, the applicant is the owner or has an agreement with the owner of the petroleum and natural gas rights to drill the test hole.

 Cancellation

91  A test hole authorization may be cancelled by the commission for any of the following reasons:

(a) the drilling of the test holes for which the authorization is issued is not begun within 90 days of the day on which the authorization was issued;

(b) the holder of the authorization requests the cancellation;

(c) it appears to the commission that a contravention of this Act or of a regulation or order has occurred with respect to a test hole for which the authorization was issued;

(d) the holder of the authorization fails to maintain ownership of the petroleum and natural gas rights or an agreement referred to in section 90 (c) with the owner of the petroleum and natural gas rights.

 Suspension

92  The commission may suspend a test hole authorization for a definite time or indefinitely if satisfied that a contravention of this Act or of a regulation or order has occurred with respect to a test hole for which the authorization was issued.

 Water source well authorization

92.1  A person must not begin to drill, or drill or operate, a water source well except under a subsisting water source well authorization under this Act.

 Scope of water source well authorization

92.2  A water source well authorization may authorize the holder to drill one or more test holes in a specified area.

 Application of Divisions 2, 3 and 4 to water source wells

92.3  Sections 90 (a) and (b), 91 (b) and (c), 92 to 95 and any other provision of this Act specified by regulation apply to water source well authorizations, and for that purpose a reference in those sections to a test hole or well must be read as a reference to a water source well and a reference to a test hole authorization or well authorization must be read as a reference to a water source well authorization.

 Power to suspend use of water source well that injuriously affects other uses

92.4  The commission may suspend the operation of a water source well if satisfied that its continuing use by the water source well authorization holder injuriously affects use of the water source for domestic or other purposes.

 Grant and refusal of authorizations

93  (1)  The commission may grant, subject to conditions, restrictions and stipulations, or refuse to grant a well authorization or test hole authorization.

(2)  The commission must keep a record of each well authorization and test hole authorization.

 Transfer

94  (1)  A well authorization or test hole authorization must not be transferred unless

(a) the commission consents in writing to the transfer,

(b) the document that is the evidence of the transfer is filed with the commission, and

(c) the fee has been paid to the Minister of Finance.

(2)  The commission must keep a record of each transfer to which it has given consent.

 Well register

95  The commission must maintain a record of each well drilled, to be known as the well register, and in which the following must be entered for each well

(a) the name of the well, changes in name and the location of the well;

(b) the well authorization number;

(c) the name of the person to whom the authorization was issued or transferred and his or her agents;

(d) the name of the drilling contractor.

 Regulations and orders of commission

96  (1)  The commission may make regulations of general application or may make an order related to a specific location or well, governing the drilling, operation or abandonment of wells and the production, conservation and processing of petroleum, natural gas and sulphur produced from natural gas or the development or use of a storage reservoir and, without limiting that power, the commission may do the following:

(a) [Repealed 1998-39-45.]

(b) prohibit the drilling of a well at any point within a specified distance of any boundary, roadway, road allowance, right of way, building of any specified type or any specified works, either public or private;

(c) specify and describe the part of a spacing area in which a well is to be completed, and provide penalties for and prohibitions against completing the well in other parts of the spacing area;

(d) require the submission of an application and the obtaining of the approval of the commission before

(i)  deepening a well beyond the formation from which production is being taken or has been taken,

(ii)  recompleting a well by perforating any casing with a view to producing from any formation other than that from which production is being taken or has been taken,

(iii)  suspending normal drilling operations,

(iv)  ceasing normal producing operations,

(v)  resuming drilling operations after a previous completion, suspension or abandonment of a well,

(vi)  resuming production operations after a cessation of production,

(vii)  reworking a well to alter its producing characteristics, or

(viii)  abandoning a well,

and authorizing the division to specify the conditions under which approval is granted in any such case, and the methods to be employed in a drilling or abandonment operation;

(e) specify the conditions under which drilling operations may be carried out in water covered areas, and any special measures to be taken;

(f) specify the measures to be adopted to confine petroleum, natural gas or water encountered during drilling operations to its original stratum, and to protect the contents of the stratum from infiltration, inundation and migration;

(g) establish, adopt or specify the minimum standards of tools, casing, equipment, materials and procedures that may be used for drilling, development, production or storage of petroleum or natural gas or for injecting or disposing of petroleum, natural gas, water produced in relation to the production of petroleum or natural gas, waste or any other prescribed substance into a storage reservoir;

(h) make regulations respecting test hole drilling or experimental schemes and defining different depths and requirements for different kinds of test holes;

(h.1) make regulations respecting water source wells and the requirements for applications for water source wells;

(i) govern the drilling of multizone wells, prohibit completion of a well as a multizone well without the permission of the commission, prohibit the use of a well for the production from or injection to more than one zone without the approval of the commission, and authorize the commission to specify the conditions under which it grants its approval;

(j) prohibit the drilling through petroleum, natural gas, water, coal or other minerals without taking adequate measures to confine petroleum, natural gas or water to its own stratum, and to protect any coal seam or other mineral deposit or any workings in it from injury, and specify the nature and extent of the measures;

(k) require the provision of adequate well casing and the proper anchorage and cementation;

(l) require and specify samples, tests, analyses, surveys, logs, records, other necessary information, the method of taking samples and submission of the records and information to the commission;

(m) specify the measures to be taken before drilling begins and during drilling and production to conserve petroleum, natural gas or water likely to be encountered;

(n) specify or limit the methods of operation to be observed during drilling and in the subsequent management of a well and the conduct of an operation for any purpose, including

(i)  protection of life, property and wildlife,

(ii)  prevention and extinguishment of fires,

(iii)  prevention of wells flowing out of control, and

(iv)  prevention of pollution of water, air or land;

(o) regulate the location, equipping, deactivation, decommissioning and reclamation of production facilities;

(p) regulate the conditioning or reconditioning of wells by mechanical, chemical or explosive means;

(q) regulate the inspection of wells both during and after drilling;

(r) provide for the capping or otherwise closing in of wells for the purpose of preventing waste;

(s) require the cleaning out or abandonment of a well;

(t) [Repealed 1998-39-45.]

(u) regulate the release of well and test hole records and data, geological and geophysical reports and reports other than well reports and well data, and regulate the naming of wells and production facilities;

(v) and (w) [Repealed 1998-39-45.]

(x) specify measures to contain and eliminate spillage;

(y) exempt a person or equipment or class of person or equipment from measures to contain and eliminate spillage;

(z) regulate general conservation of petroleum, natural gas and sulphur produced from natural gas, their waste or improvident disposition, and any matter incidental to petroleum or natural gas wells' development, drilling, operation and production.

(2)  A regulation or order made under this section may provide that employees of the commission designated by it may exempt in writing a person from the application of all or part of the regulation or order, in relation to a particular site or installation and subject to specified conditions.

(3)  The commission may by regulation specify that, in addition to the provisions referred to in section 92.3, any other provision of this Act applies to a water source well or water source well authorization.

 Commission regulations and orders

97  The commission may, by regulation of general application or by order related to a specific location or well, do the following:

(a) designate a field by describing its surface area;

(b) designate a pool by describing the surface area vertically above the pool and by naming the geological formation and the zone in which the pool occurs;

(c) determine whether a field or pool described in paragraph (a) or (b) may be operated for the production of petroleum or natural gas, or both;

(d) designate the area that is to be allocated to a well in connection with fixing allowable production;

(e) control and regulate the production of petroleum, natural gas and water by restriction, proration or prohibition;

(f) require the disposal of water produced into an underground formation or otherwise, under terms the commission may specify.

 Minister's regulations and orders

98  The minister may, by regulation of general application or by order related to a specific location or well, restrict the amount of petroleum or natural gas, or both, that may be produced in British Columbia by doing the following:

(a) to (c) [Repealed 2003-1-23.]

(d) limiting the total amount of natural gas that may be produced from a pool without waste, having regard to the market demand for natural gas, as determined by the minister, to an amount required for the efficient use of natural gas for the production of petroleum, and for the efficient utilization of the natural gas reserves of British Columbia;

(e) distributing the amount of natural gas that may be produced from a pool in a manner among the wells in the pool that each owner may produce or receive his or her fair share of the natural gas in the pool.

 Prevention of waste

99  In order to prevent waste, the commission may

(a) require the repressuring, recycling or pressure maintenance of any pool or portion of it, or require the use of any other enhanced recovery technique, and for or incidental to that purpose require the introduction or injection into any pool or part of it of natural gas, air, water or other substance, and

(b) require that any natural gas be gathered, processed if necessary and that the natural gas or liquid hydrocarbons extracted be marketed or injected into an underground reservoir for storage or for any other purpose.

 Approval of schemes

100  (1)  A scheme for any of the following must not be proceeded with unless the commission, by order, approves the scheme on terms the commission specifies:

(a) the development or production of petroleum or natural gas, or both, from a field or pool or portion of a field or pool;

(b) the experimental application of oil field technology as defined by regulation;

(c) the processing, storage or disposal of natural gas;

(d) the gathering, storage and disposal of water produced from a field or pool.

(2)  For the purposes of subsection (1), "development or production" includes the use of repressuring, recycling, pressure maintenance or any other enhanced recovery technique.

(3)  On approving a scheme under subsection (1), the commission may, by order, waive or modify the operation of section 65 if the scheme would facilitate development and production operations or the conservation of petroleum or natural gas, or both.

(4)  The commission may cancel or suspend the approval of a scheme

(a) at the request of the person to whom the approval was given, or

(b) if it appears to the commission that there has been a contravention of this Act, the regulations, an order respecting the approval or a condition of the approval.

 Escape of petroleum, gas or water

101  If at any time an escape of petroleum, natural gas, water produced in relation to the production of petroleum or natural gas or other substances from a well is not prevented or if a flow of water is not controlled, the commission may take the means it considers necessary or expedient in the public interest to control and prevent the escape.

 Discontinuance of operations

102  (1)  If the commission is satisfied, after an inquiry held on the notice and to the persons it believes proper, that a well is being operated in a way that contravenes this Act, the regulations or an order made under this Act, the commission may order that on and after a date to be set by the order no production or disposal is to be permitted from or into the well and that it is to be shut in and kept shut in until the commission orders to the contrary.

(2)  If the commission believes waste, damage to property or pollution can be prevented, the commission may order the well to be shut down pending the inquiry, which must be held within 15 days after the order.

(3)  If it appears to the commission that a method or practice being employed in a drilling, completion, suspension, abandonment, production, storage or disposal operation is in any way inadequate, improper or hazardous, the commission may order orally, confirmed by a note in the daily drilling report book, that the operation be discontinued until methods approved by the commission are adopted.

 Prescribing methods of measurement

103  (1)  The commission may prescribe the methods to be used for the measurement of petroleum, natural gas, water produced in relation to the production of petroleum or natural gas and other substances, and the standard conditions to which the measurements are to be converted.

(2)  If methods of measurement and standard conditions are prescribed under this section, they must be used whenever the measurement of petroleum, natural gas, water produced in relation to the production of petroleum or natural gas or other substances is required under this Act.

 Access and inspection

104  (1)  At any reasonable time, persons authorized by the commission

(a) have access to all wells, equipment, plants and records,

(b) are entitled to enter on and inspect any well or place at which petroleum or natural gas is refined, handled, processed or treated, or place used or occupied for those purposes,

(b.1) are entitled to enter on and inspect any well or place at which substances are collected, processed, handled or treated for purposes of storage in or disposal into a storage reservoir,

(c) are entitled to inspect all books, documents, records, plant and equipment pertaining to or found at any such well or place, and

(d) may take samples or particulars or carry out tests or examinations desired.

(2)  A person authorized by the commission to exercise any of the powers referred to in subsection (1) must, before doing so, produce on demand his or her identification card issued by the commission.

 Wild well control

105  (1)  When the commission believes that, because of hazardous conditions in a field or at a well, it is necessary or expedient to close an area and to shut out all persons except those specifically authorized, the commission may make an order in writing setting out and delimiting the closed area.

(2)  During the time the order is in effect, a person may not enter, travel about or remain in the area without a travel permit from the commission.

(3)  The order may contain terms that the commission considers necessary to prevent fire in the closed area.

(4)  The commission may provide for notice that is practicable under the circumstances, and may publish the order setting out the area closed in those newspapers that the commission believes will give adequate publicity.

(5)  In addition to the notice, the commission must advise an appropriate representative of the Department of Transport of Canada of the contents of the order.

 Enforcement of orders and costs

106  (1)  Without restricting section 105, if the commission considers that the control of a well or any completion, suspension or abandonment is not in accordance with the commission's order, direction or requirement, any person authorized by the commissioner has access to and may enter the well site or any structures and do whatever the commission believes necessary because of the failure to comply with the order, direction or requirement.

(2)  The Minister of Finance may use or spend all or any part of the deposit made by the owner to defray the costs, determined by the commission, of or incidental to the work of control, completion, suspension or abandonment of the well to the satisfaction of the commission.

(3)  The return of the deposit or a part of it does not relieve the owner of the well of liability for any costs of or incidental to the control, completion, suspension or abandonment of a well and does not reduce the owner's liability for those costs.

(4)  The costs incurred by the commission under this section remaining unpaid after applying a deposit held by the Minister of Finance are a debt payable by the owner of the well to the Minister of Finance.

 Spillage

107  (1)  In this section and section 108, "spillage" means petroleum, natural gas, brine or other substances escaping, leaking or spilling from a well, field flow lines or production facility or from any source apparently associated with them.

(2)  An owner of a well, field flow lines or production facility must do the following:

(a) make every reasonable effort to prevent spillage;

(b) if spillage occurs, promptly remedy the cause or source of the spillage, contain and eliminate the spillage and restore and reclaim any land or watercourse affected by the spillage;

(c) promptly report to the commission the location and severity of a spillage, break, leak or malfunction that is causing or contributing or is likely to cause or contribute to spillage, and any action taken or proposed under this paragraph or paragraph (b).

(3)  A person who is aware that spillage is occurring, or is likely to occur, must make every reasonable effort to prevent or assist in preventing the spillage and, if the spillage, break, leak or malfunction has not been reported to the commission, promptly report it.

 Measures to contain and eliminate spillage

108  (1)  In this section, "measures to contain and eliminate spillage" include preventing spillage, repairing or remedying its cause or source, containing and eliminating it and restoring and reclaiming land or a watercourse affected by spillage.

(2)  If spillage occurs or is, in the opinion of the commission, likely to occur, and appropriate measures to contain and eliminate spillage satisfactory to the commission are not being carried out, the commission may do the following:

(a) order any person who the commission believes is responsible for the spillage or the source or cause of likely spillage to do the things the commission considers necessary to implement and carry out measures to contain and eliminate spillage;

(b) enter any land or watercourse and do the things the commission considers necessary;

(c) order the use of any equipment, or order a person between the age of 16 and 60 years who is not physically unfit or exempt by regulation, to assist in measures to contain and eliminate spillage;

(d) order that any spillage be disposed of or sold as the commission directs, and that any proceeds of the sale be applied to the cost of the measures to contain and eliminate spillage.

(3)  The commission may order any owner to prepare and implement, in a form and manner satisfactory to the commission, a program of measures to contain and eliminate spillage.

(4)  If costs or expenses are incurred by the commission in implementing or carrying out the measures to contain and eliminate spillage, the commission must do the following:

(a) order a person to pay or contribute to the costs or expenses;

(b) order that a person indemnify the government or any other person for costs or expenses paid by them;

(c) direct the manner of payment or indemnification.

 Further powers of commission for enforcement

109  (1)  Under this Division, the commission, for the enforcement of any order made by the commission, may

(a) take the steps and employ the persons the commission considers necessary,

(b) forcibly or otherwise enter, seize and take possession of any well, together with all or part of the movable and immovable property in, on or about the well or used in connection with it together with any of the records pertinent to it,

(c) either discontinue all production or take over the management and control of it,

(d) plug the well at any depth, and

(e) take the steps the commission considers necessary to prevent the flow or escape of petroleum, natural gas or water from any stratum that the well enters.

(2)  On the commission taking possession of a well and so long as that possession continues, every officer and employee of the owner of the well, agent or contractor must obey the orders concerning the well given by the commission, or by a person placed in charge or control of the well.

(3)  On possession being taken of any well, the minister may take, deal with and dispose of all petroleum and natural gas produced at the well as if it were the property of the government, subject to the payment of the net proceeds of it as provided in this section.

(4)  The costs and expenses of and incidental to proceedings taken under this section are in the discretion of the minister, who, after consulting with the commission, may direct by whom and to what extent the costs are to be paid.

(5)  Without restricting subsections (1) to (4), the minister may pay, from the proceeds of the petroleum and natural gas produced at the well,

(a) all costs and expenses of and incidental to the proceedings taken under this section, including the costs and expenses of the commission's management, operation and control of the well, and

(b) all costs and expenses of carrying out investigations and conservation measures that the minister believes necessary in connection with the well.

(6)  The net proceeds of the petroleum and natural gas produced at the well remaining after payment of the costs and expenses under subsection (5) must be paid by the minister into the Supreme Court, and must be paid out to the persons and in the amounts as may be determined by the court on application of a person claiming to be entitled to any of the proceeds.

(7)  If the proceeds of the petroleum and natural gas produced at the well are not sufficient to pay all costs and expenses of and incidental to the proceedings, investigations and measures taken, and the minister directs that the balance of the costs and expenses or any part of it is to be paid by the owner of the well, then the provisions of section 106 regarding the use of the deposit and regarding the further liability of the owner of the well with respect to the costs referred to in that section apply to the use of the deposit, and to the further liability of the owner, to defray the balance of the costs and expenses that are incurred under this section.

 Certificate of restoration

84  (1)  A person is deemed not to have abandoned a well, test hole or production facility until the commission issues, on application, a certificate of restoration respecting the well, test hole or production facility.

(2)  The commission may determine the form of a certificate of restoration.

 Siteprofiles and compliance under the Waste Management Act

84.1  The commission must not approve an application for a certificate of restoration respecting a well, test hole or production facility in accordance with section 84 if the commission

(a) has not received a site profile under section 26.1 of the Waste Management Act,

(b) has received a site profile but has not sent it to the manager under section 26.1 (5) (b) of the Waste Management Act,

(c) has sent a site profile to the manager under section 26.1 (5) (b) of the Waste Management Act but the commission has not received notice that a site investigation under section 26.2 of that Act will not be required,

(d) has not received a valid and subsisting approval in principle, conditional certificate of compliance or certificate of compliance under section 27.6 of the Waste Management Act from the person making an application for a certificate of restoration respecting a well, test hole or production facility in accordance with section 84, or

(e) has not received notice of a final determination under section 26.4 of the Waste Management Act that the site is not a contaminated site.

 Waste Management Act requirements must be met

84.1  (1)  This section applies to an application for a certificate of restoration with respect to a well, test hole or production facility in accordance with section 84.

 Invalid authorization

88  A well authorization held by a person who is not entitled as a holder of the location or by agreement with a holder of a location to drill the well for which the authorization was granted or to produce petroleum or natural gas, or both, through the well is invalid for all purposes, except that the person remains liable to complete or abandon any well or suspend operations in accordance with directions that may be given by the commission.

 Obligations on abandonment of a well or cancellation of a well authorization

88  If any of the following circumstances exist, a person who drills a well or produces petroleum or natural gas from a well must complete or abandon the well, or suspend operations, in accordance with the regulations and directions that may be given by the commission:

 Application

90  An application for a test hole authorization must be made to the commission and is not valid unless

(a) it is accompanied by the fee,

(b) it is made in accordance with the regulations,

(c) it sets out a statement showing

(i)  the maximum number of test holes proposed,

(ii)  the areas where the test holes are to be drilled,

(iii)  the approximate depth of the test holes, and

(iv)  the formation, stratum or zone in which drilling is to terminate, and

(d) it sets out a program of drilling operations proposed to be followed under the authorization.

 Cancellation

91  A test hole authorization may be cancelled by the commission

(a) if the drilling of the test holes for which the authorization is issued is not begun within 90 days of the day on which the authorization was issued,

(b) at the request of the person to whom the authorization was issued, or

(c) if it appears to the commission that a contravention of this Act or a regulation or order has occurred with respect to a test hole for which the authorization was issued.

 Approval of schemes

100  A scheme for

(a) repressuring, recycling or pressure maintenance in a field or pool, or for using any other enhanced recovery technique,

(b) the experimental application of oil field technology as defined by regulation,

(c) the processing, storage or disposal of natural gas, or

(d) the gathering, storage and disposal of water produced from a field or pool

must not be proceeded with unless the commission, by order, approves the scheme on terms the commission specifies.

 Escape of petroleum, gas or water

101  If at any time an escape of petroleum or natural gas from a well is not prevented or if a flow of water is not controlled, the commission may take the means it considers necessary or expedient in the public interest to control and prevent the escape.

 Prohibition

110  A person must not, except under this Act and the regulations,

  A person must not, except under this Act,

  With the approval of the minister, a permittee or licensee may produce petroleum or natural gas from one or more wells on his or her location in accordance with whatever terms are specified.

 Notification of work

116  A person must not begin geological or geophysical work until the person has notified the commission of the person's intention to do so.

Abandonment

120   A person may abandon a permit, drilling licence or lease by surrendering it to the director and after the surrender, the permittee, licensee or lessee has, subject to section 119, no further interest in it and he or she is not entitled to a refund of rental payments or fees.

 Dangerous operations

123  (1)  The commission may order summarily an operation under this Act to be carried on or stopped so as not to interfere with or endanger the safety of the public, a public work or highway or a petroleum or natural gas property, and may order any abandoned works to be safeguarded to its satisfaction at the cost of the owner or the parties who constructed the works, or both.

(2)  If the owner or the parties who constructed the works cannot be found, the minister may direct that the work be done and payment be made from the consolidated revenue fund.

Electronic form

125.1   A permit, lease and drilling licence may be issued in electronic form.

Designation of storage area

127   (1) On the recommendation of the minister, the Lieutenant Governor in Council may by regulation designate land as a storage area.

(2) Notice of the designation under subsection (1) must be published in 2 consecutive issues of a newspaper circulated in the area in which the storage area is situated.

Vesting of storage reservoir

128   (1) Ninety days after designation of land as a storage area, a right, title and interest in a storage reservoir in or under the storage area and in any water inside the storage reservoir is vested in the government free of encumbrances unless, before the expiry of the 90 days, the Lieutenant Governor in Council rescinds the designation.

(2) A right, title or interest in anything other than water that is found, naturally occurring, inside the storage reservoir is not vested in the government merely because of the vesting under subsection (1).

(3) If a right, title or interest in land has vested in the government under subsection (1), that interest, for the purposes of the application of section 23 (2) (a) of the Land Title Act, is deemed to be held by the government pursuant to a subsisting exception and reservation contained in the original grant of that land from the government.

 Compensation

129  A person who had a right, title or interest in land that vested in the government under section 128 may apply under section 16 (1) (c) for compensation for the loss of that right, title or interest.

Compensation

129   (1) A person who had a right, title or interest in land that vested in the government under section 128 may apply to the board for arbitration in respect of compensation for the loss of that right, title or interest.

(2) Part 17 applies to an application under subsection (1).

Lease of storage reservoir

130   (1) The holder of a petroleum or natural gas permit, drilling licence or lease or an exploration licence granted under section 126 may apply to the minister for a lease of a storage reservoir that is owned by the government.

(2) An applicant for a lease under subsection (3) must make the application to the minister in a form suitable to the minister.

(3) The minister may lease a storage reservoir that is owned by the government to a person who applies under subsection (1), and the minister may grant a lease that is different than the one applied for or may refuse to grant a lease.

 Storage licence

131  (1)  A person must not develop or use a storage reservoir for the storage of petroleum or natural gas unless the person has been granted a licence by the commission under subsection (3).

(2)  An applicant for a licence under subsection (3) must make the application to the commission in a form suitable to the commission.

(3)  The commission may grant a licence to a person to develop or use a storage reservoir for the storage of petroleum or natural gas, grant the licence for a period of time he or she determines and subject to conditions he or she determines, or the commission may refuse to grant the licence.

  The Lieutenant Governor in Council may make regulations respecting

Regulations for this Part

132   Without limiting section 133, the Lieutenant Governor in Council may make regulations respecting

(a) [Repealed 1998-39-54.]

(b) and (c) [Repealed 2008-36-194.]

(d) licences and conditions that may attach to licences,

(e) the form and content of leases or classes of leases,

(f) applications for licences or leases including the publication of applications,

(g) rents charged under a lease and the payment or collection of rents,

(h) the non-application of any or all of the provisions of this Part to land or to a person or operation or to a class of land, person or operation, and

(i) the application of any or all of the provisions of the Fire Services Act or of regulations made under the Fire Services Act to a storage reservoir or to a person who explores for, develops or uses a storage reservoir.

135  If a holder of a permit, licence, or lease fails to comply with a provision of this Act, the regulations, a notice or an order under this Act or the regulations, or a term, promise or condition of the holder's permit, licence or lease, the minister or the commission, depending on which of them is authorized under this Act to issue the permit, licence or lease, may, after giving 60 days' notice to the holder of the location, cancel the permit, licence or lease.

 Cancellation

135  If a holder of a permit, licence, or lease fails to comply with a provision of this Act, the regulations, a notice or an order under this Act, or a term, promise or condition of the holder's permit, licence or lease, the minister or the commission, depending on which of them is authorized under this Act to issue the permit, licence or lease, may, after giving 60 days' notice to the holder of the location, cancel the permit, licence or lease.

 Regulations Act applies

137  The Regulations Act applies to regulations under this Act that are made by the commission.

Application of the Administrative Tribunals Act

148   Sections 1 to 11, 13 to 15, 17 to 21, 26, 27, 28 (1), 29 to 33, 34 (3) and (4), 35 to 42, 44, 46.3, 48 to 52, 53 (1) to (3) and (5), 55 to 57, 59, 60 (a) to (c) and 61 of the Administrative Tribunals Act apply to the board.