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

• 90. (1) For the purposes of sections 80, 88 and 89, a lessee may upon giving written notice in triplicate, in a form approved by the Chief, group lease areas that

  • (a) are within a circle having a radius of 24 miles; and

  • (b) cover an area of not more than 250,000 acres.

• (2) The notice of grouping shall indicate the lease areas that are to be included in the group.

• (3) Where a lessee complies with an order made pursuant to section 88 or 89 on one lease area in a group, he shall be deemed to have complied with all orders that have been or may be made pursuant to section 88 or 89 in respect of any lease area within that group for as long as that group remains in effect.

• (4) A grouping shall commence on the day on which the notice of grouping is approved by the Chief and shall terminate upon the discovery of oil or gas in commercial quantity.

91. Where a group is terminated by the discovery of oil or gas, the oil and gas leases previously included in the group shall be subject to the provisions of sections 88 and 89.

92. A lessee may from time to time group or regroup any of his lease areas in accordance with section 90.

93. Where a lessee is producing oil or gas in commercial quantity, the Chief may order the lessee to drill further wells on the lease area and to continue producing oil or gas so long as that area continues to yield oil or gas in commercial quantity.

94. Where the surface rights to the whole or any part of the Canada lands described in a permit or oil and gas lease have been disposed of by Her Majesty under a timber licence, grazing lease, coal mining lease, mining claim or other form of terminable grant, the permittee or lessee shall not enter upon such lands unless he has obtained

• (a) the consent of the person holding the timber licence, grazing lease, coal mining lease, mining claim or other form of terminable grant;

• (b) the consent of the occupier of the land; or

• (c) an order for entry from the arbitrator.

95. Where the surface rights to the whole or any part of the Canada lands described in a permit or oil and gas lease have been granted by Her Majesty under letters patent or sold under an agreement for sale, the permittee or lessee shall not enter upon the lands that have been so disposed of unless he has obtained

• (a) the consent of the owner of the surface rights;

• (b) the consent of the occupier of the lands; or

• (c) an order for entry from the arbitrator.

• 96. (1) A licensee, permittee or lessee who has not been able to obtain the consent to enter referred to in section 26, 94 or 95 may apply to an arbitrator for an order permitting entry on to those lands and fixing the compensation therefor.

• (2) Ten days notice of the application referred to in subsection (1) shall be given by the applicant to the owner, occupier or lessee as may be required by section 26, 94 or 95.