Territorial Coal Regulations (C.R.C., c. 1522)

1 [Repealed, SOR/2003-116, s. 2]

Interpretation

2 In these Regulations,

Chief

Chief means the chief of the Resource Management Division of the Resource and Economic Development Group of the Department of Indian Affairs and Northern Development; (chef)

lessee

lessee means the holder of a lease of a location for coal mining purposes; (concessionnaire)

licence

licence means a licence issued by the Chief to explore for coal on territorial lands; (permis)

licensee

licensee means the holder of a licence to explore for coal on territorial lands; (détenteur de permis)

location

location means a tract of land containing coal, or believed to contain coal, located or staked in accordance with these Regulations; (emplacement)

mineral claim staking sheet

mineral claim staking sheet means

• (a) with respect to lands between 60° and 68° north latitude, a map of an area bounded on the north and south by a line drawn at 15-minute intervals of latitude and on the east and west by a line drawn at 30-minute intervals of longitude, or

• (b) with respect to lands north of 68° north latitude, a map of an area bounded on the north and south by a line drawn at 15-minute intervals of latitude and on the east and west by a line drawn at one degree intervals of longitude; (feuille de jalonnement de claims)

Minister

Minister means the Minister of Indian Affairs and Northern Development; (ministre)

permittee

permittee means the holder of a permit issued under these Regulations; (titulaire de permis)

recorder

recorder means a person designated by the Minister to perform the duties of a recorder for a mining district established under the Territorial Lands Act for the Northwest Territories; (registraire)

territorial lands

territorial lands[Repealed, SOR/2003-116, s. 3]

year

year means a period of 12 consecutive months. (année)

Application

3 These Regulations apply only to territorial lands under the control, management and administration of the Minister, pursuant to the Territorial Lands Act.

General

• 4 (1) Subject to subsection (2), no person shall mine coal on territorial lands except under the authority of these Regulations.

• (2) Nothing contained in these Regulations shall, except where such intention is expressly stated, be so construed as to affect prejudicially any rights and interests acquired prior to December 16, 1954.

• 5 (1) Any person 18 years of age or over on his own behalf or on behalf of any other person or persons, or a corporation, is entitled, subject to subsection (2), to stake out a location under the provisions of these Regulations for the mining of coal on territorial lands.

• (2) The following lands are not available for staking under these Regulations:

  • (a) land used as a cemetery;

  • (b) land within the limits of a municipal district, a municipality or a local improvement district;

  • (c) land reserved for an Indian Reserve, a national park or game sanctuary or for military or other public purpose;

  • (d) land reserved under the Dominion Water Power Act; or

  • (e) land lawfully occupied for mining purposes.

• 6 (1) Where the surface rights of any land are owned or lawfully occupied by another, no person shall stake a location until he has deposited with the recorder,

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

  • (b) security in an amount that in the opinion of the recorder is adequate for any loss or damage which may result from staking on such land, the security to be in money or in the form of bearer bonds of Canada or bearer bonds of the Canadian National Railway Company unconditionally guaranteed as to principal and interest by Canada or bonds of Canada and such Railway Company registered in the name of the Minister of Finance and the Receiver General.

• (2) A person staking a location pursuant to subsection (1) shall compensate the owner or lawful occupant of the surface rights for any loss or damage caused by such staking.

Staking Location

• 7 (1) A person desiring to obtain a lease or a permit of a location under these Regulations shall stake out such location as nearly as possible in the form of a rectangle of which the length shall not exceed four times the width.

• (2) The area of a location shall not exceed 640 acres where it is intended to apply for a lease, or more than one acre where it is intended to apply for a permit.

• 8 (1) Every location shall be marked upon the ground by

  • (a) a post at each of the four corners of the claim, which posts shall be,

    • (i) of sound timber, firmly placed in or on the ground, or a stump of a tree left rooted in the ground in an upright position extending not less than four feet above the ground,

    • (ii) squared or faced at least 18 inches from the top, with each side so squared or faced measuring at least three inches across its face, and

    • (iii) mounded with stone, such mound to be constructed by the person staking and to consist of not less than four stones, or mounded with earth, any such mound to be conical in shape and to be not less than two feet in diameter at the base and one foot high; or

  • (b) a metal tube at each of the four corners of the location and each metal tube shall be

    • (i) not less than four inches in length and 1/2 inch in diameter,

    • (ii) closed at both ends, and

    • (iii) placed in the centre of a mound of stone, which mounds shall be constructed by the person staking and shall consist of not less than four stones or placed in the centre of a mound of earth, any such mound to be conical in shape and not less than three feet in diameter at the base and two feet high.

• (2) The post or metal tube at the northeast corner shall be numbered one, at the southeast corner, two, at the southwest corner, three, and at the northwest corner, four.

• (3) A person staking a location shall write on each post or write on waterproof paper or fabric and insert such paper or fabric in the metal tube, the number of the post or metal tube, the name of the person on whose behalf the location is staked, the date and time of staking, and

  • (a) where it is intended to apply for a lease, the letters “CML”; or

  • (b) where it is intended to apply for a permit, the letters “CMP”.

• 9 (1) Prior to applying for a lease or permit, a person who has staked a location shall mark the boundaries of such location so that each boundary can be definitely recognized throughout its entire length.

• (2) In timbered areas, such boundaries shall be marked at intervals not exceeding 100 feet apart by placing on trees adjoining the boundary, three blazes, one blaze to be placed on the side of the tree facing the boundary and one blaze on each of the two sides of the tree in the direction of the boundary, and where necessary the underbrush along such boundary shall be cleared.

• (3) In non-timbered areas the boundaries shall be marked by clearing brush where necessary and by erecting cairns of stone, which cairns shall be constructed by the person staking and shall consist of not less than four stones, or mounds of earth, and such cairns or mounds shall be conical in shape and not less than two feet in diameter at the base and not less than one foot high.

• 10 (1) An application for a lease or permit shall be made,

  • (a) if the location is situated within a distance of 10 miles in a straight line from the nearest corner of the location to the office of the recorder to which application is made, within 15 days of the staking; or

  • (b) if the location is situated more than 10 miles in a straight line from the location to the office of the recorder to which application is made, within a period of 15 days from the date of the staking plus one day for each 10 miles or fraction thereof of such distance beyond the first 10 miles.

• (2) If the last day for making application falls on a Sunday or upon a day on which the office of the recorder is not open to receive applications, the application may be made on the next day such office is open.

• (3) An application made after the period fixed by these Regulations shall not be considered.

11 In the case of any dispute as to the time of staking a location, entitlement shall be recognized according to the priority of the placing of the post or tube, at the northeast corner, subject to any questions as to the validity of the record itself, and subject to the applicant having complied with all the terms and conditions of these Regulations.

Application for Lease

• 12 (1) A person may apply for a lease by filing with the recorder an application in Form 1 of the schedule.

• (2) An application for a lease shall be accompanied by

  • (a) a fee of $5;

  • (b) a sketch of the location; and

  • (c) the amount of the rental for the first year of the lease.

13 Upon receipt of an application for a licence, the recorder may cause the location to be inspected and if satisfied that the application is in order shall forward such application to the Chief.

• 14 (1) The Minister may, in such form as he determines, issue a lease of a location for a term of 21 years at an annual rental of $1 per acre payable yearly in advance.

• (2) A lease is renewable for a further term of 21 years where the lessee furnishes evidence satisfactory to the Minister to show that during the term of the lease he has complied with the conditions of such lease, and may be renewed for additional periods of 21 years subject to the regulations at that time in force.

15 In addition to the annual rental, a lessee shall pay annually a royalty at the rate of $0.10 per ton on merchantable coal mined on lands acquired by lease under these Regulations.

16 A lessee shall not assign, transfer or sublet the rights granted by his lease or any part thereof without the consent in writing of the Minister.

17 A lessee shall not mine or excavate within 60 feet from a boundary line of the location leased to him.

• 18 (1) A lessee is entitled to the coal upon or in the land included in such lease, and has the right to enter upon and use and occupy the surface of such location or such portion thereof and to such extent as the Minister considers necessary for efficient coal mining operations but for no other purpose.

• (2) A lessee shall compensate the owner or lawful occupant of the surface rights for any loss or damage caused by the coal mining operations of the lessee.

19 Within one month following the last day of each year of the term of the lease, a lessee shall submit to the recorder a sworn statement showing the amount of coal extracted and removed during the year from the location under lease, and shall pay the amount of accrued royalties to the recorder.

• 20 (1) A lessee shall commence active operations on his leasehold within one year following the day he is notified by the Minister to commence operations and shall produce from such operations the quantity of coal specified in the said notification.

• (2) Such notification shall not be given until the expiration of at least one year from the commencement date of the lease and shall set out the quantity of coal which the lessee is required to mine and produce at the pit’s mouth ready for shipment, which quantity, however, may be increased from time to time, upon 30 days notice to that effect being given to the lessee, but in no case shall the maximum quantity required to be mined exceed 10 tons per annum for each acre leased.

• (3) Where operations are not commenced within the time specified in the notice or where the required quantity of coal is not mined during each year, the lease shall be subject to cancellation in the discretion of the Minister.

21 A person who has been granted a lease for a location and who has paid all amounts due the Crown in respect of the area under lease including amounts due for rent or royalty,

• (a) to the date of consent to the assignment by the Minister pursuant to section 16, may assign the lease; or

• (b) to the date the Minister is notified in writing of the proposed abandonment, may abandon the lease.

• 22 (1) Where a lessee holds a lease of a location acquired by assignment or otherwise under the provisions of these Regulations, on land situated more than 10 miles from a railway when the lease was issued, and where the lessee can show that he has expended in actual prospecting and developing operations on such location by recognized methods during any year, prior to railway communication with any such location having been established, an amount equal to or in excess of the prescribed yearly rental of such location, the Minister, upon proof satisfactory to him that such expenditure was incurred for the purpose and in the manner specified, may waive payment of the rental for the year of the term during which such expenditure may be shown to have been incurred, or in case the rental has already been paid, he may apply such payment or such portion thereof as to him seems reasonable on account of future payments of the rental of any such location, such expenditure, however, shall not be accepted as rental for a total of more than five years during the term of any lease.

• (2) Where a lessee holds leases on two or more adjoining locations, any amount expended on actual prospecting and developing operations on one or more of such locations, not otherwise applied in respect of rental, may, with the approval of the Minister, be applied against rental due on any other such location, to the same extent as if such operations had been performed on such other location.

Application for Permit

• 23 (1) A person may apply for a permit by filing with the recorder an application in Form 2 of the schedule.

• (2) Subject to section 24, each application for a permit shall be accompanied by,

  • (a) a fee of $1;

  • (b) a payment of estimated royalty on the quantity of coal to be mined under the permit; and

  • (c) a sketch of the location.

• 24 (1) Where a recorder is satisfied that an applicant for a permit has complied with the regulations respecting staking of the location and that the permit should be issued, he shall issue a permit to the applicant in Form 3 of the schedule.

• (2) A permit issued to

  • (a) a department of the Government of Canada,

  • (b) a municipal district, a local improvement district or a municipality, or

  • (c) an educational, religious or charitable institution,

  shall be issued free of charge and shall authorize the applicant to mine a quantity of coal not exceeding 100 tons of 2,000 pounds each for the applicant’s own use, without payment of any royalty.

25 Subject to these Regulations, a permittee is entitled

• (a) to enter upon the surface of the location covered by his permit, or such portion thereof and to such extent as the Minister may consider necessary for efficient coal mining and for no other purpose; and

• (b) to mine the quantity of coal set out in his permit subject to payment of a royalty on the merchantable output of the mine of $0.25 per ton of 2,000 pounds or such other royalty as may be fixed from time to time by the Minister with the approval of the Governor in Council.

• 26 (1) A permit expires upon March 31st next following the date of issue, and within one month thereafter the permittee shall furnish the recorder with a statement of the amount of coal taken under such permit in Form 4 of the schedule.

• (2) Where the amount of coal taken under the permit is less than that authorized by the permit, any excess royalty shall be refunded to the permittee.

27 Where a permittee wishes to obtain a further permit covering the same location for the ensuing year, he may at any time prior to expiry of his current permit, apply to the recorder for a further permit, and where satisfied that the permittee has complied with all applicable provisions of these Regulations and of his current permit, the recorder may, upon receipt of the required fee and estimated royalty, if any, issue a further permit without requiring such permittee to restake such location.

• 28 (1) An agent of territorial lands or a member of the Royal Canadian Mounted Police stationed in the area may, where it appears to him that the operations of any permittee are being carried on in an unsafe or improper manner, direct that such operations be suspended forthwith until such time as he is satisfied that such operations can be carried on in a satisfactory manner.

• (2) Every suspension made under subsection (1) shall be reported immediately to the Chief.

29 No person shall apply for, or hold, at one time, more than one location under permit.

30 The boundaries beneath the surface of a location shall be the vertical planes or lines in which their surface boundaries lie.

31 A recorder or other person designated by him may enter upon any land under lease or permit or the workings thereon, examine all records and books of account of the lessee or operator of such location, and make such other examination as may be deemed necessary.

32 Where default is made in payment of royalty or in furnishing statements or returns required by these Regulations and the default continues for 30 days after notice demanding payment has been posted at the mine or conspicuously on the property in respect of which it is demanded or sent to the lessee or the permittee by registered mail to his last recorded address, the lease or permit may be cancelled.

33 Where the Minister is of the opinion that a lessee or permittee has defrauded or attempted to defraud the Crown by withholding the royalty or any part thereof or has made false statements in any return or statement furnished by him, the Minister may cancel the lease or permit.

Indians and Eskimos

34 In isolated portions of the Northwest Territories, Indians and Eskimos who apply for permission to mine small quantities of coal may be granted permission so to do by an agent of territorial lands or a member of the Royal Canadian Mounted Police stationed in the area, free of charge, without being required to make application under the provisions of these Regulations.

Exploration Licence

35 The Chief may, upon receipt of an application in Form 5 of the schedule, issue a licence in Form 6 of the schedule, to explore for coal on territorial lands other than those mentioned in subsection 5(2).

36 The area of land in respect of which a licence may be issued shall be equal to one-quarter of the area of the land shown on a mineral claim staking sheet and shall be described by reference to the geographical position of the quarter of such sheet.

37 Every application for a licence shall be accompanied by

• (a) a description of the land;

• (b) a fee of $10; and

• (c) a deposit in the amount required by subsection 39(1) to secure expenditures on exploration during the first year the licence is in force.

38 Unless terminated earlier, a licence is in force for three years commencing on the day of the application.

• 39 (1) Subject to subsection (4), prior to commencement of each year in which a licence is in force, the licensee shall deposit with the Chief for each acre of land in respect of which his licence was issued

  • (a) $0.05 in respect of the first year;

  • (b) $0.10 in respect of the second year; and

  • (c) $0.20 in respect of the third year.

• (2) The deposit referred to in subsection (1) may be made in cash by means of an approved note or in bonds guaranteed by the Government of Canada or of a province.

• (3) Subject to subsections (4) and (5), during each year in respect of which a deposit has been made pursuant to subsection (1), a licensee shall spend on exploration for coal on the land for which his licence was issued the amount of money deposited in respect of that year with the Chief.

• (4) Where in any one year a licensee spends more money on exploration than that required by subsection (3), the amount by which such expenditures exceed the required expenditures is deemed to have been spent in the subsequent year, and the deposit required by subsection (1) for that subsequent year is decreased by that amount.

• (5) Where in any one year a licensee spends less money on exploration than that required by subsection (3), the Chief may, for sufficient reasons and upon receipt of an application not later than the date on which the deposit mentioned in subsection (1) is payable, permit the licensee to spend during the subsequent year the amount by which the required expenditures exceed the actual expenditures.

• (6) In this section, “approved note” means a promissory note payable on demand that a chartered bank has agreed, in terms acceptable to the Chief, to honour on presentment for payment.

• (7) Notwithstanding anything in these Regulations, where a licensee through circumstances beyond the licensee’s control is prevented from, or delayed in, spending money on exploration as required by subsection (3), the Chief, or a person designated by the Chief, shall extend the period within which the money may be spent and the term of the licence, and make such further extensions as are necessary, to enable the licensee to spend the money on exploration for coal on the land for which the licence was issued.

• (8) Where a person has been issued a licence pursuant to section 35 (in this subsection referred to as the new licence) following the expiration of a licence issued to that person pursuant to that section (in this subsection referred to as the former licence) for the same area of land described in the new licence,

  • (a) any amount of money expended on exploration for coal on the land for which the former licence was issued during the currency of the former licence that exceeded, at the time the former licence expired, the expenditure required by subsection (3) in respect of that land is deemed to have been spent in the first year in which the new licence is in force, and the deposit required by subsection (1) for the first year is decreased by that amount; and

  • (b) where that person has, during the currency of the former licence, spent less money on exploration than the amount required to be spent by subsection (3), that person may, notwithstanding section 44, on submission to the Chief, not later than the date on which the deposit referred to in subsection (1) is payable, of

    • (i) an application,

    • (ii) the deposit referred to in subsection (1), and

    • (iii) a deposit equal to the amount by which the exploration expenditures required under the former licence exceed the actual expenditures under that licence,

    spend the amount referred to in subparagraph (iii), in addition to the amount required to be spent by subsection (3), during the first year in which the new licence is in force.

40 Within 90 days after the end of each year in which a licence is in force, the licensee shall submit to the Chief, in triplicate and in a form satisfactory to the Chief,

• (a) a statement of expenditures made for exploration,

• (b) a report on all exploration,

• (c) geological, geochemical or geophysical reports,

• (d) maps, and

• (e) assay reports,

in respect of the land for which the licence is issued.

41 At the end of any year, during the term of a licence, a licensee, upon application to the Chief, may relinquish his rights under that licence in respect of a portion or all of the land for which he holds a licence.

42 An application to relinquish rights under a licence in respect of land for which a licence has been issued shall be made in a form satisfactory to the Chief and shall be accompanied by a sketch and a description

• (a) of those lands or that portion of those lands that the licensee wishes to relinquish, and

• (b) of that portion of those lands, if any, that the licensee wishes to retain,

in such form as the Chief may require.

• 43 (1) Subject to subsection (2), where in any one year the amount of money spent by a licensee on exploration for coal in respect of land for which his licence was issued is equal to or greater than that required by subsection 39(3), upon receipt of the statement of expenditures referred to in section 40, the Chief shall return the deposit required by subsection 39(1) to the licensee.

• (2) Where under subsection 39(5) the Chief has permitted a licensee to spend money on exploration work in any one year applicable to the prior year of the term of the licence, upon receipt of the statement of expenditures referred to in section 40, the Chief shall return to the licensee that portion of the deposit or deposits required by subsection 39(1) that corresponds to the amount of money spent by the licensee on exploration work on the land for which the licence was issued and the balance of the deposit or deposits, if any, shall forfeit to Her Majesty in right of Canada.

44 Subject to subsections 39(4) and (5), where a licensee does not spend in each year on exploration for coal on land for which his licence is issued the amount of money referred to in subsection 39(3), only that portion of the deposit that corresponds to the amount of money spent on exploration by the licensee on the land for which his licence was issued shall be returned by the Chief and the balance of the deposit, if any, shall forfeit to Her Majesty in right of Canada.

45 At the end of any year during the term of a licence and not later than 90 days after the expiration of the term of a licence, a licensee may apply to the recorder for a lease under section 12 or a permit under section 23.

46 No person other than the licensee may obtain a permit or lease in respect of lands for which a licence was issued until the expiration of 90 days after the end of the term of the licence, unless the licensee has relinquished his licence in respect of those lands under section 41.