Marginal note:Term of production licence
41. (1) Subject to subsections (2) to (4), a production licence is effective from the date it is issued and shall be issued for a term of twenty-five years.
(2) Where a declaration of commercial discovery on the basis of which a production licence was issued is, pursuant to subsections 28(4) and 35(3), revoked or amended to exclude all portions of the commercial discovery area in relation to which the production licence was issued, the production licence ceases to be in force.
Marginal note:Automatic extension of term
(3) Where, on the expiration of the term of a production licence, petroleum is being produced commercially, the term is extended for such period thereafter during which commercial production of petroleum continues.
Marginal note:Discretionary extension of term
(4) The Minister may, by order, on such terms and conditions as may be specified in the order, extend the term of a production licence where
(a) commercial production of petroleum from the frontier lands subject to the licence ceases before or on the expiration of the twenty-five year term of the production licence and the Minister has reasonable grounds to believe that commercial production from those lands will recommence; or
(b) the Minister has reasonable grounds to believe that commercial production of petroleum from those lands will, at any time before or after the expiration of the term of the licence, cease during any period and thereafter recommence.
Marginal note:Lapsing of other interests
42. (1) On the issuance of a production licence, any interest in relation to the frontier lands in respect of which the production licence is issued held immediately prior to the issuance of the production licence ceases to have effect in relation to those frontier lands, but otherwise continues to have effect according to its terms and the provisions of this Act.
Marginal note:Lands become Crown reserve lands on expiration of term
(2) On the expiration of a production licence, the frontier lands in relation to which the production licence was issued become Crown reserve lands.
Subsurface Storage Licences
Marginal note:Licence for subsurface storage
43. (1) The Minister may, subject to any terms and conditions the Minister considers appropriate, issue a licence for the purpose of subsurface storage of petroleum or any other substance approved by the Minister in frontier lands at depths greater than twenty metres.
(2) No frontier lands shall be used for a purpose referred to in subsection (1) without a licence referred to therein.
Qualification for Production Licence
Marginal note:Qualification for production licence
44. No production licence or share in a production licence may be held by any person other than a corporation incorporated in Canada.
- R.S., 1985, c. 36 (2nd Supp.), s. 44;
- 1993, c. 47, s. 2.
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