Canada Petroleum Resources Act (R.S.C., 1985, c. 36 (2nd Supp.))

Marginal note:Replacement of rights

• 111 (1) Subject to section 110 and subsections 112(2) and 114(4) and (5), the interests provided for under this Act replace all petroleum rights or prospects thereof acquired or vested in relation to frontier lands prior to the coming into force of this section.

• Marginal note:No compensation

  (2) No party shall have any right to claim or receive any compensation, damages, indemnity or other form of relief from Her Majesty in right of Canada or from any servant or agent thereof for any acquired, vested or future right or entitlement or any prospect thereof that is replaced or otherwise affected by this Act, or for any duty or liability imposed on that party by this Act.

Marginal note:Regulations continue in force

• 112 (1) The Canada Oil and Gas Land Regulations remain in force to the extent that they are consistent with this Act until they are revoked or replaced by regulations made under this Act.

• Marginal note:Former interests

  (2) All interests provided by the Canada Oil and Gas Land Regulations that are in force on the coming into force of this section continue in force subject to sections 113 to 116.

• (3) to (7) [Repealed, 1991, c. 10, s. 20]

Marginal note:Former permits, former special renewal permits and former exploration agreements

• 113 (1) Subject to sections 115 and 116, the interest owner of a former permit, former special renewal permit or former exploration agreement shall, on or before the first anniversary date of any such interest following March 5, 1982 or on or before the day that is six months after that date, whichever is the later, negotiate an exploration licence with the Minister.

• Marginal note:Surrender

  (2) Where an interest owner referred to in subsection (1) does not comply with that subsection, the frontier lands under the relevant interest are deemed to be surrendered and become Crown reserve lands.

• Marginal note:Extension

  (3) Notwithstanding anything in this Act, an exploration licence under subsection (1) may be extended to include all or any portion of the frontier lands under the preceding interest and any related frontier lands that, immediately prior to that extension, were Crown reserve lands.

• Marginal note:Where drilling commitment exists

  (4) Where a former special renewal permit or former exploration agreement contains provisions for the drilling of one or more wells, the Minister shall offer to issue an exploration licence to the interest owner for a term equal to the balance of the term of the former special renewal permit or former exploration agreement remaining on March 5, 1982 and having the same drilling provisions.

Marginal note:Former leases

• 114 (1) Subject to sections 115 and 116, the interest owner of a former lease, other than a lease referred to in subsection (4), shall, on or before the first anniversary date of the former lease following March 5, 1982 or on or before the day that is six months after that date, whichever is the later, negotiate an exploration licence with the Minister.

• Marginal note:Surrender

  (2) Where the interest owner referred to in subsection (1) does not comply with that subsection, the frontier lands under the former lease are deemed to be surrendered and become Crown reserve lands.

• Marginal note:Application

  (3) Subsection 113(3) applies, with such modifications as the circumstances require, to lands that may be included in an exploration licence under subsection (1).

• Marginal note:Exception

  (4) Oil and Gas Leases numbered 529-R, 703, 704, 705, 707-R, 708-R, 709-R, 710-R, 838, 702, 411, 412, 442-R, 443-R and 444-R, issued pursuant to the Canada Oil and Gas Land Regulations shall continue in force in accordance with their terms and conditions.

• Marginal note:Idem

  (5) Notwithstanding any other provision of this Act, the Norman Wells Agreement of 1944 and the Norman Wells Expansion Agreement of 1983 shall continue in force in accordance with the terms and conditions of those Agreements, as amended by the Norman Wells Amending Agreement of 1994, and sections 1 to 117 do not apply to any of those Agreements.

Marginal note:Extension of time

115 Where an exploration licence required to be negotiated under section 113 or 114 cannot be negotiated within the period provided in those sections for any reason not attributable to the interest owner, the Minister shall extend that period to allow for that negotiation within a reasonable time.

Marginal note:Consolidated exploration licence

• 116 (1) One or more interest owners of former permits, former special renewal permits, former exploration agreements or former leases may, for the purposes of complying with subsection 113(1) or 114(1), negotiate together a single exploration licence that would consolidate any number or combination of such interests held by those interest owners.

• Marginal note:Terms and conditions of exploration licence

  (2) An exploration licence negotiated pursuant to subsection (1) shall contain any terms and conditions that may be agreed on by the Minister and the interest owners thereof.

Marginal note:Crown share abrogated

• 117 (1) Subject to subsection (2), for greater certainty, the reservation to Her Majesty in right of Canada of a Crown share in any interest granted or entered into under the Canada Oil and Gas Act prior to the coming into force of this section is abrogated on and after the day this section comes into force.

• Marginal note:Inuvialuit claims unaffected

  (2) For greater certainty, nothing in this Act affects any right, privilege or benefit set out in the agreement approved, given effect and declared valid by the Western Arctic (Inuvialuit) Claims Settlement Act, chapter 24 of the Statutes of Canada, 1984.

Marginal note:Division of exploration licence 329

• 117.1 (1) Exploration licence numbered 329, in effect on the coming into force of this section, is divided into two licences, one applicable to the portion of the lands described in that licence that is landward of the northern limit of the adjoining area described in Schedule 2 to the Yukon Act and one applicable to the portion of those lands that is seaward of that northern limit.

• Marginal note:Division of significant discovery licence 12

  (2) Significant discovery licence numbered 12, in effect on the coming into force of this section, is divided into two licences, one applicable to the portion of the lands described in that licence that is situated in the Yukon Territory and one applicable to the portion of those lands situated in the Northwest Territories.

• Marginal note:Division of oil and gas lease 411-68

  (3) Oil and gas lease numbered 411-68, in effect on the coming into force of this section, is divided into two leases, one applicable to the portion of the lands described in that lease that is situated in the Yukon Territory and one applicable to the portion of those lands situated in the Northwest Territories.

• Marginal note:Division of oil and gas lease 442-R-68

  (4) Oil and gas lease numbered 442-R-68, in effect on the coming into force of this section, is divided into two leases, one applicable to the portion of the lands described in that lease that is situated in the Yukon Territory and one applicable to the portion of those lands situated in the Northwest Territories.

• Marginal note:Registration of divided interests

  (5) The Registrar referred to in section 87 may assign new numbers, in the register established under that section, to the interests resulting from the division of an interest under this section.

• Marginal note:Interpretation

  (6) The division of an interest and the assignment of new numbers under this section shall be construed as a continuation of that interest and not as the issuance of new interests.

Marginal note:Northwest Territories

• 117.2 (1) An interest in respect of lands that straddle the onshore and the offshore — that is in effect on the coming into force of this section — is divided into two interests: one in respect of the portion of those lands that is situated in the onshore and one in respect of the portion that is situated in the offshore. Only the offshore interest is to be under the administration of a federal minister.

• Marginal note:Assignment of new numbers

  (2) The Registrar referred to in subsection 87(2) may assign new numbers to the interests resulting from the division of the interest.

• Marginal note:Interpretation

  (3) The division of the interest and assignment of new numbers is to be construed as a continuation of the interest and not as the issuance of new interests.

• Marginal note:Definition of offshore

  (4) In this section, offshore has the same meaning as in section 48.01 of the Canada Oil and Gas Operations Act.

Consequential Amendments

118 to 130 [Amendments and repeal]

Coming into Force

Marginal note:Coming into force

• Footnote ^*131 (1) Subject to subsection (2), this Act or any provision thereof shall come into force in any frontier lands or portion thereof on a day or days to be fixed by proclamation with respect to those lands or portion thereof.

  • Return to footnote ^*[Note: Certain provisions in force in certain frontier lands, see SI/87-63, SI/87-244 and SI/88-86.]

• Marginal note:Idem

  (2) Section 116 shall be deemed to have come into force on March 5, 1982.