Canada Oil and Gas Land Regulations (C.R.C., c. 1518)

71. No transfer of a permit or oil and gas lease shall pass any interest in the permit or oil and gas lease until the transfer is registered in accordance with these Regulations.

• 72. (1) No oil and gas lease shall be transferred to

  • (a) a person to whom the granting of an oil and gas lease is prohibited under subsection 54(2); or

  • (b) to a corporation unless the corporation satisfies the Minister that persons who are Canadian citizens will have an opportunity of participating in the beneficial ownership of the corporation.

• (2) A transfer made contrary to the provisions of subsection (1) is void.

73. No transfer of a permit or oil and gas lease shall be registered without the approval of the Chief.

• 74. (1) Subject to subsection (2), where a transfer is executed in a manner satisfactory to the Chief and is accompanied by the transfer fee set out in Schedule I, the Chief may approve the transfer of

  • (a) the whole or any sections of a lease area;

  • (b) the whole or one-half of a permit area;

  • (c) a specified undivided interest in a permit or oil and gas lease to not more than five transferees; or

  • (d) a specified undivided interest in a permit or oil and gas lease to more than five transferees upon such terms and conditions as the Chief may require.

• (2) The Chief shall not approve the transfer of

  • (a) a lease area smaller than one section; or

  • (b) a permit area of other than one grid area or one-half of a grid area.

• (3) Paragraph (2)(a) does not apply to an oil and gas lease that has been granted for an area smaller than one section.

• (4) Paragraph (2)(b) does not apply to a permit that has been issued for an area smaller than one grid area or one-half of a grid area.

• 75. (1) The Chief shall maintain a transfer register.

• (2) Where the Chief has approved the transfer of a permit or oil and gas lease, he shall enter the transfer in the register.

• (3) The Chief shall endorse on the transfer the date and time of registration.

76. Subject to section 72, as soon as registered, a transfer shall become operative according to its tenor and intent.

• 77. (1) A lessee may at any time surrender the whole or part of his oil and gas lease, but no lessee shall surrender a part thereof smaller than one section except in the case of an oil and gas lease that has been granted for an area smaller than one section.

• (2) Where an oil and gas lease has been surrendered, no rental shall be refunded to the lessee.

• 78. (1) Subject to sections 79 to 84, a lessee shall pay to Her Majesty

  • (a) for the first year of the oil and gas lease a rental of $0.50 for each acre of land under lease; and

  • (b) for each year after the first year of the oil and gas lease a rental of $1 for each acre of land under lease.

• (2) The rental required by subsection (1) shall be paid before the commencement of the year for which the rental is payable.