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Indian Oil and Gas Regulations (SOR/2019-196)

Regulations are current to 2021-06-28 and last amended on 2019-08-01. Previous Versions

General Rules (continued)

Marginal note:Holder’s responsibility

 A contract holder must ensure that any requirement that is related to their contract and is imposed by these Regulations on a person other than the holder is satisfied.

Marginal note:Liability — holders and persons with working interest

  •  (1) Every contract holder and person with a working interest in a contract is absolutely liable for any damage to the environment that is caused by operations carried out under the contract.

  • Marginal note:Liability — operators and licensees

    (2) Every operator, well licensee, pipeline licensee and facility licensee is absolutely liable for any damage to the environment that is caused by operations they carry out under the contract.

Marginal note:Insurance required

  •  (1) A contract holder must obtain, and maintain during the term of the contract, an insurance policy that is adequate to cover all risks resulting from the operations to be carried out under the contract.

  • Marginal note:Minimum coverage

    (2) The insurance policy must provide the following minimum coverage:

    • (a) comprehensive general liability insurance that covers the risks of damage caused by operations carried out under the contract with an inclusive bodily injury, death and property damage limit of at least $5,000,000 per occurrence, including occupier’s liability or liability for damage caused by immovables, employer’s liability, employer’s contingent liability, contractual liability, contractor’s protective liability, products liability, completed operations liability and contractor’s liability insurance;

    • (b) automobile liability insurance that covers all vehicles used in operations carried out under the contract with an inclusive bodily injury, death and property damage limit of at least $5,000,000 per occurrence; and

    • (c) if aircraft are to be used in operations carried out under the contract, aircraft liability insurance with an inclusive bodily injury, death and property damage limit of at least $10,000,000 per occurrence.

  • Marginal note:Subrogation

    (3) Every insurance policy obtained by the holder must provide that the insurer’s right of subrogation is waived in favour of the Minister.

  • Marginal note:Notice of cancellation

    (4) The holder must send the Minister notice without delay if any coverage under their insurance policy is terminated and at least 30 days before the last day of coverage if the holder intends to cancel any of their coverage.

  • Marginal note:Maximum deductible

    (5) The deductible of every insurance policy must not exceed 5% of the amount of insurance.

Marginal note:Self-insurance

 A holder may satisfy the requirement imposed by subsection 9(1) by providing the Minister with a letter of self-insurance in the prescribed form in which the holder

  • (a) acknowledges liability for any damage caused by operations carried out under the contract; and

  • (b) declares that their financial resources are adequate to cover that liability.

Marginal note:Contractor’s insurance

 A contract holder must ensure that any person that carries out operations under the contract, other than an employee, obtains and maintains an insurance policy that is adequate to cover all risks resulting from those operations.

Marginal note:Contract area boundaries

  •  (1) The boundaries of a contract area must correspond to the boundaries of the legal land divisions of the relevant province if the lands in the contract area have been surveyed, or to the anticipated boundaries of those divisions if the lands have not been surveyed.

  • Marginal note:Unsurveyed lands

    (2) If the lands in a contract area are surveyed during the term of the contract, the Minister must, after consulting with the holder and the council, amend the contract so that the description of the contract area complies with subsection (1).

  • Marginal note:Exception

    (3) Subsections (1) and (2) do not apply if the lands in the contract area are First Nation lands whose configuration prevents compliance with those subsections.

Marginal note:Survey plan

  •  (1) Every survey plan that is required under these Regulations must be

  • Marginal note:Exception

    (2) Subsection (1) does not apply to

    • (a) an exploration work survey plan; or

    • (b) a survey of lands under a treaty land entitlement agreement or a specific claim settlement agreement.

Marginal note:Dispute

 If a dispute arises regarding the location of a well, facility or boundary referred to in a contract, the Minister may order the contract holder to have a survey carried out as soon as the circumstances permit.

Marginal note:Annual meeting request

  •  (1) A council whose First Nation lands are subject to a contract may, no more than once a year, submit a request to the Minister in the prescribed form for a meeting with the contract holder for the purpose of discussing the operations that have been carried out, or are planned to be carried out, in the contract area.

  • Marginal note:Minister’s notice

    (2) The Minister must send the holder notice of a meeting request.

  • Marginal note:Arrangement of meeting

    (3) The holder must organize the meeting and ensure that it takes place within 90 days after the day on which the Minister’s notice is received. In the case of multiple holders, they may designate one of their number to attend as their representative.

  • Marginal note:Multiple contracts

    (4) If the holder has more than one contract in the First Nation lands, operations carried out under all the contracts may be discussed at the same meeting.

  • Marginal note:Expenses

    (5) Any expense relating to the request for, preparation for or attendance at a meeting must be borne by the party that incurs the expense.

Marginal note:Unforeseen incident

 An operator must, in the most expeditious manner possible, notify the Minister and the council of any unforeseen incident that occurs during operations carried out under a contract and that results, or could result, in bodily injury or death or in damage to First Nation lands or property. The operator must report the details of the incident, in the prescribed form, as soon as the circumstances permit.

Marginal note:Person accompanying inspector

 For the purpose of monitoring compliance with the Act and these Regulations, a person may accompany an inspector who is inspecting a contract holder’s facilities and operations on First Nation lands if the person is authorized to do so by a written resolution of the council and the person has the certifications, and complies with the occupational health and safety requirements, required or imposed by the holder or by law.

Marginal note:Payment of rent

  •  (1) The annual rent that is payable under a contract must be paid on or before the anniversary of the effective date of the contract.

  • Marginal note:Refund

    (2) The rent that is payable for the year in which a contract ends must be paid and is not refundable. However, any rent that has been paid for a subsequent year must be refunded.

  • Marginal note:Exception

    (3) Subsection (1) does not apply to a contract that provides otherwise and was granted before the day on which these Regulations came into force.

Marginal note:Payment to Receiver General

  •  (1) All money that is owed to Her Majesty under these Regulations or a contract must be paid to the Receiver General for Canada.

  • Marginal note:Purpose of payment

    (2) The money must be accompanied by a statement, in the prescribed form, indicating the purpose for which it is paid.

Marginal note:Amendments

  •  (1) Any amendment to a contract or a bitumen recovery project requires the prior approval of the council and the Minister.

  • Marginal note:Limits

    (2) The Minister must not approve an amendment unless

    • (a) an additional bonus is paid, if necessary, to reflect the fair value, determined in accordance with section 38, of the rights or interests granted by the amendment; and

    • (b) additional surface rates are paid, if necessary, in accordance with subsections 73(2) and (3).

  • Marginal note:Exception

    (3) Subsection (1) does not apply to an amendment referred to in subsection 12(2) or to one that reduces the area of lands that are subject to a subsurface contract or a bitumen recovery project.

 
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