Marginal note:Notice of order to reduce term of interest
36. (1) The Minister may, at any time after making a declaration of commercial discovery, give notice to the interest owner of any interest in relation to any portion of the commercial discovery area where commercial production of petroleum has not commenced before that time stating that, after such period of not less than six months as may be specified in the notice, an order may be made reducing the term of that interest.
Marginal note:Opportunity for submissions
(2) During the period specified in a notice sent to an interest owner under subsection (1), the Minister shall provide a reasonable opportunity for the interest owner to make such submissions as the interest owner considers relevant to determining whether the Minister should make an order reducing the term of the relevant interest.
Marginal note:Order reducing term of interest
(3) Notwithstanding any other provision of this Act, where the Minister is of the opinion that it is in the public interest, he may, at any time not later than six months after the expiration of the period specified in a notice in respect of an interest sent under subsection (1), by order subject to section 106, reduce the term of the interest to three years after the date the order is made or such longer period as may be specified in the order.
Marginal note:All interests cease
(4) Notwithstanding any other provision of this Act but subject to subsections (5) and (6), where an order is made under subsection (3), any interest in respect of frontier lands within the area to which the interest that is the subject of the order applied on the date the order was made ceases to have effect at the end of the period specified in the order.
Marginal note:Order ceases to have effect where production commences
(5) Where commercial production of petroleum on any portion of the frontier lands referred to in subsection (4) commences before the expiration of the period specified in an order made under subsection (3) or the period extended pursuant to subsection (6), the order ceases to have effect and is deemed to have been vacated.
Marginal note:Extension of period
(6) The Minister may extend the period specified in an order made under subsection (3) or may revoke the order.
Issuance of Production Licences
Marginal note:Rights under production licence
37. (1) A production licence confers, with respect to the frontier lands to which the licence applies,
(a) the right to explore for, and the exclusive right to drill and test for, petroleum;
(b) the exclusive right to develop those frontier lands in order to produce petroleum;
(c) the exclusive right to produce petroleum from those frontier lands; and
(d) title to the petroleum so produced.
(2) Notwithstanding subsection (1), the Minister may, subject to such terms and conditions as the Minister deems appropriate, authorize any interest holder of an interest or a share therein to produce petroleum on the frontier lands subject to the interest or share for use in the exploration or drilling for or development of petroleum on any frontier lands.
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