ministry of the economy october 27, 2016 the oil and gas ......the oil and gas tenure registry...

Ministry of the Economy of 299

October 27, 2016 The Oil and Gas Tenure Registry Regulations SIDE BY SIDE

• Effective October 27, 2016 the OGTRR replaced the oil and gas and spaces disposition acquisition and administration regulations

set in The Petroleum and Natural Gas Regulations, 1969, The Helium and Associated Gases Regulations, 1964, The Oil Shale Regulations, 1964, and The Lease of Spaces Regulations. The Oil and Gas Tenure Registry Regulations were filed with the Registrar of Regulations on October 27, 2016 – RRS C-50.2 Reg 31 – OC 479/2016

• The new regulations govern the operation of the Oil and Gas Tenure Registry in the Integrated Resource Information System

(IRIS), allowing industry to take full advantage of industry self-service capabilities in IRIS, replacing over 20 service fees with a single, one-time application fee for new dispositions, and transferring the legal representation of a disposition from a paper disposition to the electronic entity in IRIS.

IMPORTANT NOTE: This side by side is provided for comparison purposes only and is not meant to be relied upon for decision making or to replace The Oil and Gas Tenure Registry Regulations.

FORMER PROVISION(S)

THE OIL AND GAS TENURE REGISTRY

REGULATIONS PROVISION

EXPLANATION

1

PART I

Title, Definitions and Application

The Petroleum and Natural Gas Regulations, 1960 (PNG regulations)

Title

1 These regulations may be cited as The Petroleum and Natural Gas Regulations,

PART 1

Preliminary Matters

Title 1-1 These regulations may be cited as The Oil and Gas Tenure Registry Regulations.

Repeal and replace The Petroleum and Natural Gas Regulations, 1969, The Helium and Associated Gases Regulations, 1964, The Oil Shale Regulations, 1964 and The Lease of Spaces Regulations with a single electronic tenure regulation. The new regulation takes full advantage of the shift to an electronic registry for issuing and administering oil and gas tenure and provides for a new fee schedule.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

1969.

The Helium and Associated Gases Regulations, 1964 (HELIUM regulations)

1 These regulations may be cited as The Helium and Associated Gases Regulations, 1964.

The Oil Shale Regulations, 1964

(OIL SHALE regulations)

1 These regulations may be cited as The Oil Shale Regulations, 1964.

The Lease of Spaces Regulations

(SPACES regulations)

1 These regulations may be cited as The Lease of Spaces Regulations.

Replacing “Petroleum and Natural Gas” with “Oil and Gas” is consistent with The Oil and Gas Conservation Act and Regulations nomenclature, and using the generic “Gas” rather than “Natural Gas” accommodates both helium and associated gases and natural gas.

2

PNG regulations

Definitions

3 In these regulations the expression:

Definitions

1-2 In these regulations:

Consistent with The Mineral Tenure Registry Regulations.

3 PNG regulations “Act” means The Crown Minerals Act; No change from The Petroleum and Natural Gas Regulations, 1969.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

3(a) “Act” means The Crown Minerals Act;

4

PNG regulations

3(a.01) “adjoin” or “adjoining” where used in connection with subdivisions of land means touching at one or more points, and subdivisions that are separated by a correction line, road allowance, railway or other right of way shall be deemed to be adjoining;

HELIUM regulations

3(1)(b) “adjoin” or “adjoining” where used in connection with subdivisions of land means touching at one or more points, and subdivisions that are separated by a correction line, road allowance, railway or other right of way shall be deemed to be adjoining;

OIL SHALE regulations

3(a) “adjoin” or “adjoining” where used in connection with subdivisions of land means touching at one or more points, and subdivisions that are separated by a correction line, road allowance, railway or

“adjoin” or “adjoining”, when used in connection with subdivisions of land, means lands that are touching at one or more points and subdivisions that are separated by a correction line, road allowance, railway or other right of way;

No change from The Petroleum and Natural Gas Regulations, 1969, The Helium and Associated Gases Regulations, 1964, and The Oil Shale Regulations, 1964.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

other right of way shall be deemed to be adjoining;

5

PNG regulations

3(a.1) “administrator” means the Administrator of Petroleum Lands in the Petroleum Tenure Branch of the ministry;

“administrator” means the Administrator of Oil and Gas Tenure in the Lands and Mineral Tenure Branch of the ministry;

Changes from The Petroleum and Natural Gas Regulations, 1969:

Changed from Petroleum Lands to Oil and Gas Tenure to more accurately reflect the administrator’s responsibilities under these regulations.

6

NEW “annual work commitment bid” means the amount of money that a bidder agrees to spend in eligible work on permit lands during each of the first two years of the term of the permit as set out in a bid submitted in accordance with section 10-1;

Added for clarification.

7

PNG regulations

3(b) “approved” means approved by the minister;

“approved”, except in sections 9-5, means approved by the minister;

No change from The Petroleum and Natural Gas Regulations, 1969.

8

SPACES regulations

2(a) “assigned surface area” means the surface area of the land that:

is described in the lease of a space; and

Includes the area of the land directly above the space.

Delete Changed from The Lease of Spaces Regulations. Not required as “assigned surface area” is not used in the regulation.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

9

HELIUM regulations

3(1)(b) “associated gases” means naturally occurring gas or gases excluding helium and hydrocarbon gases.

“associated gases” means naturally occurring non-hydrocarbon gas or gases but does not include helium and natural gases;

No change from The Helium and Associated Gases, 1964 regulations. Included to distinguish associated gases from the definition of natural gas.

10 NEW “business day” means a day other than a Saturday, Sunday or holiday;


11

PNG regulations

Interpretation of Part 104 In this Part:

(a) “collateral” means:

(i) the interest of a holder in a Crown disposition that is subject to a security interest; or

(ii) an interest in a Crown disposition that is:

(A) derived directly or indirectly from a holder or former holder of the Crown disposition; and

(B) subject to a security interest;

and includes any interest that the administrator approves as an interest in a

“collateral” means:

(a) the interest of a holder in a mineral disposition that is subject to a security interest; or

(b) an interest in a mineral disposition that is:

(i) derived directly or indirectly from a holder or former holder of the mineral disposition; and

(ii) subject to a security interest;

and includes any interest that the holder of the interest satisfies the administrator is an interest in a mineral disposition;


Moved definitions to Part I.

Deleted (f) as “registered” is defined later in this section.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

Crown disposition;

(f) “registered” means, except where a contrary intention is expressed, registered pursuant to this Part;

12

PNG regulations

3(d) “commercial quantities” means the production from a well of that quantity of oil or gas, oil sands products or oil shale products that would, in the opinion of the minister, economically warrant undertaking a similar well in the vicinity of that well for the taking of oil or gas, oil sands products or oil shale products, consideration having been given to:

(i) the cost of drilling, mining and production operations;

(ii) available markets; and

the value, nature and quality of the oil or gas, oil sands products or oil shale products;

“commercial quantities” means the production from a well or mining operation of a quantity of oil or natural gas, oil sands products, oil shale products or helium and associated gases that would, in the opinion of the minister, economically warrant drilling a similar well or carrying out a similar mining operation in the vicinity of that first-mentioned well or mining operation to produce the oil or natural gas, oil sands products, oil shale products or helium and associated gases, taking into consideration:

(a) the cost of drilling, mining and production operations;

(b) available markets for the oil or natural gas, oil sands products, oil shale products

Changes from The Petroleum and Natural Gas Regulations, 1969 and The Helium and Associated Gases Regulations, 1964:

Added “mining operations” to accommodate possible oil sands or oil shale mining. Definition of gas is inclusive of natural gas and helium and associated gases.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

HELIUM regulations

3(1)(c) “commercial quantities” means the production from a well of such quantity of helium or associated gases as would, in the opinion of the minister, economically warrant the drilling of a like well in the vicinity thereof for the taking of such production, consideration having been given to the cost of drilling and production operations, available market and the value of helium or associated gases;

or helium and associated gases, as the case may be; and

(c) the value, nature and quality of the oil or natural gas, oil sands products, oil shale products or helium and associated gases;

13

PNG regulations

3(d.1) “court” means Her Majesty’s Court of Queen’s Bench for Saskatchewan;

Delete Changes from The Petroleum and Natural Gas Regulations, 1969:

Not required.

14

PNG regulations

3(e) “Crown lands” means oil and gas, and oil sands and oil shale, rights, the property of the Crown in the right of Saskatchewan, that are designated in the ministry as Crown lands;

ELIUM regulations

3(1)(c.1) “Crown lands” means Crown

Delete Changes from The Petroleum and Natural Gas Regulations, 1969 and The Helium and Associated Gases Regulations, 1964:

Not required as Crown mineral lands is defined in The Crown Minerals Act.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

minerals and Crown mineral lands that consist of helium or associated gases;

15

PNG regulations

56.1(a) “designated heavy oil area” means an area designated by the minister pursuant to subsection 56.2(1);

“designated heavy oil area” means an area designated by the minister pursuant to subsection 9-19(2);


16

HELIUM regulations

3(1)(d) “director” means the Director of Mineral Lands of the department;


3(c) “director” means the Director of Geology and Petroleum Lands of the department;

Delete Changes from The Helium and Associated Gases Regulations, 1964 and The Oil Shale Regulations, 1964:

Deleted. Housekeeping. Removed reference to director.

17

PNG regulations

3(h) “drainage unit” means the area allocated to a well for the purpose of drilling for and producing oil or gas and includes subsurface areas bounded by the vertical planes in which surface boundaries lie;

HELIUM regulations

3(1)(e) “drainage unit” means the area

“drainage unit”, with respect to the zone of an oil, natural gas or helium and associated gases well, as the case may be, means the area established as a drainage unit pursuant to Part III of The Oil and Gas Conservation Act;


Revised for consistency with the definition for “drainage unit” in The Oil and Gas Conservation Act.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

allocated to a well for the purpose of drilling for and producing helium and associated gases and includes subsurface areas bounded by the vertical planes in which surface boundaries lie;

18

PNG regulations

56.1 (b) “EOR oil” means EOR oil as defined in The Crown Oil and Gas Royalty Regulations;

“EOR oil” means EOR oil as defined in The Crown Oil and Gas Royalty Regulations, 2012;


19

PNG regulations

56.1 (c) "EOR project" means, subject to subsection (3), and EOR project as defined in The Crown Oil and Gas Royalty Regulations;

"EOR project" means, subject to subsection 9-19(1), an EOR project defined in The Crown Oil and Gas Royalty Regulations, 2012;

No change from The Petroleum and Natural Gas Regulatiions, 1969.

20

PNG regulations

23.1(a) “expenditure deposit” means a deposit by a permittee pursuant to section 23.41;

“expenditure deposit” means a deposit made by a holder of a permit pursuant to subsection 7-3(1);


21

NEW “exploration licence” means an exploration licence issued pursuant to these regulations and includes an exploration licence that was issued before the implementation date and that is continued pursuant to these regulations as a legacy disposition;

Added definition for exploration licence for consistency, as have definitions for the other disposition types, namely leases and permits.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

22

HELIUM regulations

3(1)(f) “grantee” means the holder of a permit, lease or other disposition in respect of Crown lands issued under these regulations;


3(d) “grantee” means the holder of a permit, lease or other disposition issued under these regulations;

Delete Changes from The Helium and Associated Gases Regulations, 1964 and The Oil Shale Regulations, 1964:

Housekeeping. Removed for consistency with The Mineral Tenure Registry Regulations.

23

PNG regulations

3(i.1) “horizontal section” means the portion of a wellbore:

(i) with an angle of at least 80°, measured between the line connecting the initial point of penetration into the productive zone and the end point of the wellbore in the productive zone and the line extending vertically downward from the initial point of penetration into the productive zone; and

(ii) with a minimum length of 100 metres, measured from the initial point of penetration into the productive zone to the

Delete Change from The Petroleum and Natural Gas Regulations, 1969:

Deleted this definition as The Oil and Gas Conservation Regulations are not defining a horizontal section in their amendment regulations. While we use “horizontal section” for offsets, there is no requirement that it be defined.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

end point of the wellbore in the productive zone;

24 NEW “helium and associated gases permit”

means a permit with rights with respect to helium and associated gases;

Added to distinguish between special exploratory permits for oil and gas and helium and associated gases permits.

25

PNG regulations

3(i.2) “horizontal well” means:

(i) a well with a horizontal section, including any subsequent horizontal sections drilled in the same zone, that is approved as a horizontal well by an order of the minister pursuant to section 17.1 of The Oil and Gas Conservation Act; or

(ii) any other well approved by the minister as a horizontal well;

“horizontal well” means a horizontal well as defined in The Oil and Gas Conservation Regulations, 2012;


Changed definition for consistency with The Oil and Gas Conservation Regulations, 2012.

26

NEW “implementation date” means the implementation date as defined in Part VII of the Act;

Required for electronic tenure. The Oil and Gas Tenure Registry Regulations were filed with the Registrar of Regulations on October 27, 2016 – RRS C-50.2 Reg 31 – OC 479/2016

27 NEW “instrument” , except in Part 2 of the

Appendix, means an instrument as defined in Part VII of the Act;

Required for electronic tenure.

28 NEW “instrument number” means the unique

alphanumeric identifier assigned to each registered instrument;

Added to accommodate a numbering system for instruments in the Integrated Resource Information System (IRIS), the


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

province’s online business system that supports the development and regulation of Saskatchewan’s energy and resources industry.

29

PNG regulations

56.1(d) “investment” means an investment as defined in Part IV of The Crown Oil and Gas Royalty Regulations, but does not include any amount credited, granted or paid to any person pursuant to any oil incentive scheme of the Government of Canada or the Government of Saskatchewan;

“investment” means an investment as defined in section 30 of The Crown Oil and Gas Royalty Regulations, 2012;


Changed for consistency with The Crown Oil and Gas Royalty Regulations, 2012.

30

PNG regulations

23.1(b) “lease” means a lease entered into by a permittee pursuant to section 23.71 or 23.8;


3(e) “lease” means “oil shale lease”;

“lease” means a lease issued pursuant to these regulations and includes a lease that was issued before the implementation date and that is continued pursuant to these regulations as a legacy disposition;

Changes from The Petroleum and Natural Gas Regulations, 1969 and The Oil Shale Regulations, 1964:

Changed to “issued” as once the minister issues a lease in the electronic registry there is no requirement for the lessee to execute the lease. Consistent with The Mineral Tenure Registry Regulations.

Includes oil and natural gas, helium and associated gases, oil sands and oil shale leases, including oil shale leases issued under The Oil Shale Regulations, 1964.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

31

PNG regulations

23.71(1) In this section, “lease block” means:

(a) a block of permit land with minimum surface dimensions of 1.6 kilometres by 1.6 kilometres and maximum surface dimensions of 4.8 kilometres by 4.8 kilometres for petroleum, natural gas, or petroleum and natural gas permits, but only if all lands in the lease are adjoining; or

(b) a block of permit land with minimum surface dimensions of 1.6 kilometres by 1.6 kilometres and maximum surface dimensions of 9.7 kilometres by 9.7 kilometres for oil sands or oil shale permits, but only if all lands in the lease are adjoining.

“lease block” means:

(a) for leases converted from permits with rights with respect to petroleum and natural gas or helium and associated gases permits, a solid block of permit lands with minimum surface dimensions of 1.6 kilometres by 1.6 kilometres and maximum surface dimensions of 4.8 kilometres by 4.8 kilometres, more or less; or

(b) for leases converted from permits with rights with respect to oil sands or oil shale, a solid block of permit lands with minimum surface dimensions of 1.6 kilometres by 1.6 kilometres and maximum surface dimensions of 9.7 kilometres by 9.7 kilometres, more or less;

Changes from The Petroleum and Natural Gas Regulations, 1969 and NEW to The Helium and Associated Gases Regulations, 1964:

Clarify that lease blocks must be solid blocks of permit land. Removed “adjoining” to eliminate any ambiguity. There is No change in policy as the ministry has always required lease selections to conform to solid blocks.

Made specific to petroleum and natural gas, not petroleum or natural gas, as not issuing natural gas-only leases from permits anymore.

Added helium and associated gases permits for consistency. No change to size of lease block that can be selected from helium and associated gases permit.

Added “more or less” to allow for correction lines, corner-to-corner distances across surveyed sections, and any other unusual situations of a similar nature.

32 NEW “lease lands” means the Crown mineral lands or spaces that are the subject of a

Added for clarity.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

lease;

33

SPACES regulations

2(b) “lease of a space” means a lease of a space entered into pursuant to section 27.2 of The Crown Minerals Act.

“lease of spaces” means a lease of spaces entered into pursuant to Part VI of the Act;

Change from The Lease of Spaces Regulations:

Changed "a space" to "spaces" as references to spaces in the regulations are in the plural.

34 NEW “legacy disposition” means a legacy

disposition as defined in Part VII of the Act;

Required for electronic tenure transition.

35

NEW “mineral disposition” means a Crown mineral disposition registered pursuant to a permit, exploration licence or lease, and includes the rights pursuant to any legacy disposition registered in accordance with Part 5, by which the Crown has granted any rights with respect to the Crown minerals and spaces and whose boundaries conform to the SaskGrid system, with any necessary modification;

Modified from The Mineral Tenure Registry Regulations. Definition required to accommodate legacy dispositions and to reference the system used to describe boundaries for mineral dispositions. Potential modifications to the SaskGrid system include the subdivision of legal subdivisions to accommodate leases less than one legal subdivision in size that are not portions.

36

NEW “mineral disposition area” means the surface area of the mineral disposition lands expressed in hectares to which the rights constituting a mineral disposition relate;

Added to clarify area of mineral dispositions for consistency with The Mineral Tenure Registry Regulations.

37

NEW “mineral disposition lands” means the Crown mineral lands that are the subject of a mineral disposition;

Added to provide for more detailed descriptions of the lands as opposed to “area”. For example, the mineral disposition area may equal 259 hectares,


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

but the mineral disposition lands would be described as Section 12, Township 22, Range 2, West of the Second Meridian. Consistent with The Mineral Tenure Registry Regulations.

38

NEW “mineral disposition number” means the unique alphanumeric identifier assigned to each registered mineral disposition;

Added to accommodate a numbering system for mineral dispositions in IRIS. Consistent with The Mineral Tenure Registry Regulations.

39

NEW “mining operations” means tunneling, shaft-sinking, cross-cutting, drifting, raising, stoping, open-pit mining and surface and underground drilling operations;

Required for possible mining of oil sands and oil shale.

40

NEW “month” means any period calculated from a date in one calendar month to the same date in the preceding or succeeding calendar month, as the case may be, unless there is no corresponding date in the preceding or succeeding month, in which case the period ends on the last day of that month;

The IRIS system is built to calculate a month by adding a month to the day that is the starting point for the calculation. For example, the obligation reporting requirements for permits are one month for the estimate and 4 months for the actual expenditures. Therefore, if the permit anniversary date is Nov 15th, the estimates must be reported no later than Dec 15th and the actuals must be reported no later than Mar 15th of the following year.

41 PNG regulations

3(i) “gas” or “natural gas” means natural

“natural gas” means natural gas, including casinghead, solution or dissolved gas and all hydrocarbons not



October 27, 2016

FORMER PROVISION(S)



EXPLANATION

gas, including casinghead gas and all hydrocarbons not defined as oil in clause (k), but does not include oil sands products or oil shale products;

defined as oil, oil sands products or oil shale products in these regulations, but does not include helium and associated gases;

Clarified that casinghead gas is synonymous with solution and dissolved gas.

Removed “gas” to eliminate confusion between “associated gases” and hydrocarbon gases.

42

NEW “new oil shale” means oil shale that is the subject of a lease issued pursuant to “The Petroleum and Natural Gas Regulations, 1969”, being Saskatchewan Regulations 8/69, or these regulations;

Added to distinguish between oil shale leases issued under The Oil Shale Regulations, 1964 and The Petroleum and Natural Gas Regulations, 1969.

43

PNG regulations

3(k) “oil”, “crude”, “crude oil” or “petroleum” means crude petroleum oil and all other hydrocarbons, regardless of density, that are produced at a well in liquid form by ordinary production methods and that are not:

(i) oil sands products or oil shale products; or

(ii) the result of condensation of gas;

“oil”or “petroleum” means crude petroleum oil and all other hydrocarbons, regardless of density, that are produced at a well in liquid form by ordinary production methods and that are not:

(i) oil sands products or oil shale products; or

(ii) the result of condensation of gas;

Changes from The Petroleum and Natural Gas Regulations, 1969: Deleted “crude” and “crude oil” as these terms are no longer used in the regulations.

44

PNG regulations

3(l) “oil and gas”, “oil or gas”, “petroleum and natural gas” and

“oil and natural gas”, “oil or natural gas”, “petroleum and natural gas”, “petroleum or natural gas”, “helium and associated gases” or “helium or



October 27, 2016

FORMER PROVISION(S)



EXPLANATION

“petroleum or natural gas” means both or either of them;

HELIUM regulations

3(2) For the purposes of these regulations, in the expressions “helium and associated gases” and “helium or associated gases”, the word “and “ includes “or” and the word “or” includes “and”.

associated gases” means, with respect to the two substances in each pair of terms, both or either of them;

Added “natural” for consistency with definition of “natural gas”.

Added helium and associated gases.

45

PNG regulations

3(l.1) “oil sands” means all sands and rocks that:

(i) contain a highly viscous mixture, composed mainly of hydrocarbons heavier than pentanes, that will not normally flow, in its natural state, to a well;

(ii) lie above the top of the Devonian System; and

(iii) lie north of Township 73;

“oil sands” means all sands and rocks that:

(a) contain a highly viscous mixture, composed mainly of hydrocarbons heavier than pentanes, that will not normally flow, in its natural state, to a well;

(b) lie above the top of the Devonian System; and

(c) lie north of Township 73;


46

PNG regulations

3(l.2) “oil sands products” means oil and associated hydrocarbon gas that may be recovered when processing oil sands;

“oil sands products” means oil, associated natural gas and all minerals and substances that may be recovered when processing oil sands;


Revised to include minerals and substances that may be recovered during


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

the processing of oil sands to avoid diverse ownership of substances that may be destroyed, recovered or altered during the normal course of operations. Also replaced “hydrocarbon” with “natural” for consistency with definition of natural gas.

47

PNG regulations

3(l.3) “oil shale” means a compact rock of sedimentary origin containing disseminated organic matter from which oil shale products can be extracted through destructive distillation;


3(g) “oil shale” means shale or tar sands from which oil shale products as hereinafter defined may be produced or any such other substance that the minister may define as oil shale;

“oil shale” means a compact rock of sedimentary origin containing disseminated organic matter from which oil shale products can be extracted through destructive distillation;


Modernized definition of oil shale from the definition that was in The Oil Shale Regulations, 1964.

48

PNG regulations

3(l.4) “oil shale products” means oil and associated hydrocarbon gas that can be extracted through the destructive distillation of oil shale;

“oil shale products” means oil and associated natural gas that can be extracted through the destructive distillation of oil shale and includes all minerals and substances that may be recovered when processing oil shale;


Revised and modernized to include minerals and substances that may be recovered during the processing of oil sands to avoid diverse ownership of


October 27, 2016

FORMER PROVISION(S)



EXPLANATION


3(g) “oil shale products” means hydrocarbon gas or oil and includes all minerals and substances that may be produced from oil shales or tar sands in association with the production of hydrocarbon gas or oil.

substances that may be destroyed, recovered or altered during the normal course of operations. Also replaced “hydrocarbon” with “natural” for consistency with definition of “natural gas”.

49

NEW “old oil shale” means oil shale that is the subject of a lease issued pursuant to The Oil Shale Regulations, 1964, being Saskatchewan Regulations 555/64;

Added to distinguish between oil shale leases issued under The Oil Shale Regulations, 1964 and those issued under The Petroleum and Natural Gas Regulations, 1969.

50

PNG regulations

23.1 (c) “permit” means a special exploratory permit to explore for oil or gas, or oil sands or oil shale, as the case may be, in permit lands;

“permit” means a permit issued pursuant to these regulations with rights with respect to oil and natural gas, oil sands, oil shale or helium and associated gases, as the case may be, and includes a permit with rights with respect to petroleum, natural gas, petroleum and natural gas, petroleum or natural gas, oil sands, oil shale or helium and associated gases, as the case may be, that was issued before the implementation date and that is continued pursuant to these regulations as a legacy disposition;


Consistent with changes to the definition of a lease and an exploration licence, and with The Mineral Tenure Registry Regulations.

Made applicable to oil and gas and helium and associated gases permits.

51 HELIUM regulations

3(1)(g) “permit area” means an area so

“permit area” means the surface area of the permit lands expressed in hectares to which the rights constituting a permit

Changes from The Helium and Associated Gases Regulations 1964:


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

designated on the permit within which the lands under the permit and any other lands are located and which forms a solid block;

relate; Changed wording for consistency with The Mineral Tenure Registry Regulations.

52

PNG regulations

23.1 (d) “permit land” means land for which a permit has been issued or is proposed to be issued and:

(i) is in the special exploration area; and

(ii) is a minimum of 10 000 hectares and a maximum of:

(A) 200 000 hectares for petroleum, natural gas, or petroleum and natural gas rights; or

(B) 100 000 hectares for oil sands rights or oil shale rights;

“permit lands” means the Crown mineral lands that are the subject of a permit;


Particulars of permit land areas are addressed elsewhere in the regulations and are not required for this definition.

53 NEW "person" includes a partnership; Clarify that the definition of a person as

referenced in these regulations is inclusive of partnerships.

54

NEW “Petrinex” means the organization of which the Government of Saskatchewan is a member along with petroleum producer associations and that is recognized by the minister as the organization that provides information to and about petroleum

Referenced in Parts 2 and 11.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

producers and includes any successor to that organization that is recognized by the minister;

55

NEW "pre-authorized debit" means a withdrawal from a person's account at a financial institution that is initiated by the minister on the authority of the person.

Defined "pre-authorized debit" since the minister's preference may be to accept payments in this manner for rentals and other fees.

56

PNG regulations

56.1 (e) “primary recovery methods” includes horizontal well technology;

“primary recovery methods” includes horizontal well technology;


57

PNG regulations

56.1(f) “primary term” means the term of a Crown lease set out in subsection 43(4).

“primary term” means the term of a lease set out in subsection 9-5(3);


58

PNG regulations

23.1(e) “proposed annual work” means one-half of the total amount of money that:

(i) the bidder will spend in eligible work on the permit land during the first two years of the term of the permit pursuant to section 23.4; and

(ii) is set out in the bid submitted in accordance with subsection 37(3);


This definition is not required as the term “proposed annual work” has been replaced in the new regulations with the description “… the amount of the annual work commitment bid made by the holder…”.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

59 NEW “registered”, except in sections 11-10

and 11-13, means registered as defined in Part VII of the Act

Required for electronic registry.

60 NEW “registry” means the registry as defined in Part VII of the Act;

Required for electronic registry.

61

PNG regulations

23.1 (f) “rent” means the rent payable pursuant to section 23.3;

“rent” means the rent payable pursuant to these regulations;


Made definition less specific as there are several situations where rents are modified (e.g. Designated Heavy Oil Areas, Helium, etc).

62

PNG regulations

3(m) “reservation” or “drilling reservation” means a reservation of oil and gas rights made pursuant to these regulations or any former petroleum and natural gas regulations;

Deleted Changes from The Petroleum and Natural Gas Regulations, 1969:

No longer issuing this disposition type.

63

HELIUM regulations

3(1)(g.1) “royalty payer” means a person who owns a working interest;

“royalty payer” means a person who owns a working interest;

No change from The Helium and Associated Gases Regulations, 1964.

Require this definition as there is a royalty section for helium and associated gases in the new regulations.

64

NEW “SaskGrid” means the collection of geomatics feature layers established in accordance with the SaskGrid system, with any necessary modification;

Definition required to reference the system used to describe boundaries for mineral dispositions. Modifications required for dispositions less than one


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

legal subdivision in size.


65

NEW “SaskGrid system” means the geographic information reference system established and maintained by Information Services Corporation or its successors;

Establish ownership of the SaskGrid.


66

PNG regulations

Interpretation of Part

104 In this Part:

(g) “secured party” means a person who has a security interest;

“secured party” means a person who has a security interest;


Moved definitions to Part 1.

67

PNG regulations


(h) “security instrument” means a contract or other agreement that creates or provides for a security interest, and includes a short description of a security interest in writing and a document evidencing a security interest;

“security instrument” means a contract or other agreement that creates or provides for a security interest and that includes a short description of the security interest in writing and a document evidencing the security interest;



68 PNG regulations “security interest” means an interest in or charge on collateral that secures

Changes from The Petroleum and Natural


October 27, 2016

FORMER PROVISION(S)



EXPLANATION


(i) “security interest” means an interest in or charge on collateral that secures payment or the performance of an obligation and includes an assignment pursuant to section 177 of the Bank Act (Canada), as amended from time to time.

payment or the performance of an obligation and includes an assignment pursuant to the Bank Act (Canada);

Gas Regulations, 1969:


Remove the section and leave it as Bank Act (Canada).

69

PNG regulations


(j) “security notice” means a notice in Form A of Schedule D to these regulations.

“security notice” means a security instrument registered with respect to a security interest;



Changed wording to reference the registry.

70

NEW “spaces” means the spaces occupied or formerly occupied by a Crown mineral;

Added to ensure that spaces are defined in a similar manner in these regulations as they are defined in section 27.2(1) of The Crown Minerals Act.

71

PNG regulations

23.1 (g) “special exploration area” means:

(i) Crown oil and gas and oil shale rights lying within:

(A) Township 20 north to the Precambrian Shield and from Range 30, West 1 to

“special exploration area” means:

(a) Crown oil and natural gas and oil shale rights lying within:

(i) Township 20 north to the Precambrian Shield and from Range 30, West 1 to Range 27, West 2, inclusive;

(ii) Township 1 north to the Precambrian


Changed to allow for minister discretion in allowing permits outside this area.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

Range 27, West 2, inclusive;

(B) Township 1 north to the Precambrian Shield and from Range 28, West 2 to Range 3, West 3, inclusive; and

(C) Township 4 north to the Precambrian Shield and from Range 4, West 3 to Range 11, West 3, inclusive; and

(ii) Crown oil sands rights lying within Township 74 north to the Precambrian Shield, and from the Fourth Meridian east to the Precambrian Shield.

Shield and from Range 28, West 2 to Range 3, West 3, inclusive; and

(iii) Township 4 north to the Precambrian Shield and from Range 4, West 3 to Range 11, West 3, inclusive; and

(b) Crown oil sands rights lying within Township 74 north to the Precambrian Shield, and from the Fourth Meridian east to the Precambrian Shield; or

(c) any:

(i) approved area; and

(ii) approved zone;

72

NEW “special exploratory permit” means a permit with rights with respect to oil and natural gas, oil sands or oil shale that is with respect to Crown mineral lands that are situated within the special exploration area

Added for consistency with lease and exploration licence definitions.

73

NEW “surveyed section” means a section of land as described in the SaskGrid system and includes both surveyed and theoretic sections;

Added to clarify that surveyed sections are referenced to the SaskGrid.

74 OIL SHALE regulations Deleted Change from The Oil Shale Regulations,


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

3(i) “tar sands” means all sands and rocks in the sedimentary basin of Saskatchewan lying north of fifty-five degrees and twenty minutes north latitude, and west of the third meridian, and lying above the top of the Devonian formation.

1964.

Modernized definition from “tar” to “oil” for consistency with The Petroleum and Natural Gas Regulations, 1969 definition of that commodity.

75

PNG regulations


(d) “transfer” means an instrument by which a holder conveys a specific interest in a Crown disposition to another person and includes:

(i) an unconditional assignment; and

(ii) a surrender that is carried out or approved pursuant to these regulations of all or part of a Crown disposition;

but does not include farm-out agreements, sub-leases and security notices.

“transfer” means an instrument, other than a farmout agreement, a sublease or a security notice, by which a holder conveys a specific interest in a mineral disposition to another person and includes:

(a) an unconditional assignment; and

(b) a surrender that is carried out or approved pursuant to these regulations of all or part of a mineral disposition;


Definitions moved to Part 1.

76

PNG regulations

3(m.1) “vertical well” means a well that is not a horizontal well;

“vertical well” means a well that is not a horizontal well;


77 PNG regulations “well” means: Changes from The Petroleum and Natural Gas Regulations, 1969 and The Helium


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

3(n) “well” means any opening in the ground, except seismic shot holes or structure test holes, made or being made by drilling or boring, or in any other manner, for the purpose of:

(i) obtaining oil or gas, oil sands or oil sands products or oil shale or oil shale products; or

(ii) injecting any fluid into an underground reservoir;

HELIUM regulations

3(1)(h) “well” means any opening in the ground, except seismic shot holes or structure test holes, made or being made by drilling or boring, or in any other manner through which helium or associated gases are obtained or are obtainable;

(a) any opening in the ground made within Saskatchewan from which any oil, natural gas or helium and associated gases are, have been or are capable of being produced from a reservoir;

(b) any opening in the ground that is made for the purpose of:

(i) obtaining water to inject into an underground formation;

(ii) injecting any substance into an underground formation;

(iii) storing oil, natural gas or other hydrocarbons, helium or associated gases underground; or

(iv) monitoring reservoir performance and obtaining geological information; or

(c) any opening in the ground made for informational purposes pursuant to The Subsurface Mineral Conservation Regulations;

but does not include seismic shot holes,

and Associated Gases Regulations, 1964:

Province adopted the Professional Petroleum Data Management (PPDM) standards for wells, so aligning definition with PPDM definition of a well.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

structure test holes or oil shale core holes;

78


3(j) “work” means geological and geophysical surveys, drilling, coring, logging, mining, constructing and operating a pilot plant for experimentation and testing, constructing processing plant and any other work approved by the minister for the purpose of exploring for, developing or mining oil shales and carried on in the disposition area or, with the written consent of the minister, carried on in any other place;

Delete. Change from The Oil Shale Regulations, 1964.

Housekeeping. Delete definition of work for consistency with the oil shale leases issued under The Petroleum and Natural Gas Regulations, 1969.

79

PNG regulations

3(o) “wellbore” means an artificial opening in the ground other than a seismic shot hole or structure test hole.

Delete. Changes from The Petroleum and Natural Gas Regulations, 1969.

Not required as term not used in new regulation.

80

HELIUM regulations

3(1)(h) “working interest” means an interest acquired pursuant to a Crown lease, including an interest acquired from the person who is the holder of the Crown lease, where the interest:

(i)entitles a person to share in the helium and associated gases produced from or

“working interest” means an interest acquired pursuant to a Crown lease or exploration licence, or a lease associated with acquired oil and gas rights as defined in subsection 23(1) of the Act, including an interest acquired from the person who is the holder of the lease or exploration licence, that:

(a) entitles a person to share in the

Changes from The Helium and Associated Gases Regulations, 1964:

Clarified that this definition is specific to helium and associated gases leases.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

allocated to the Crown lands that are the subject of the lease or in the proceeds from the disposition of the helium and associated gases; and

(ii)requires a person to bear or contribute to the costs associated with producing helium and associated gases from or allocated to the Crown lands that are the subject of the lease.

oil and gas or helium and associated gases produced from or allocated to the Crown mineral lands that are the subject of the lease or exploration licence or in the proceeds from the disposition of the oil or gas or helium and associated gases; and

(b) requires a person to bear or contribute to the costs associated with producing oil or gas or helium and associated gases from or allocated to the Crown mineral lands that are the subject of the lease or exploration licence.

81


3(k) “year” means the twelve month period from the date of issue of the permit, lease or other disposition from the Crown or from the anniversary date thereof, as the case may be.

Deleted Change from The Oil Shale Regulations, 1964.

Housekeeping. Repeal definition of year for consistency with modern regulations that do not define year.

82

PNG regulations

Application

4(1) These regulations apply to all oil and gas rights, and oil sands and oil shale rights, that are the property of the Crown

Application of Act and regulations

1-3(1) These regulations apply to all Crown minerals and spaces other than any Crown minerals and spaces that are subject to:

The Crown Minerals Amendment Act, 2010, the Act these regulations are subject to, defines the “implementation date” as the date prescribed by regulation on which the electronic registry part shall apply to the minerals or Crown mineral lands


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

in right of Saskatchewan and that are:

(a) disposed of pursuant to these regulations; or

(b) deemed to be Crown dispositions issued pursuant to The Crown Minerals Act by virtue of section 11 of that Act.

(2) These regulations do not apply to dispositions issued pursuant to The Oil Shale Regulations, 1964, being Saskatchewan Regulations 555/64.


Application

4(1) Subject to subsections (1.1) and (2), these regulations shall apply to the rights to oil shales that are the property of the Crown in the right of Saskatchewan and to the disposition thereof as follows: (a) Part II shall apply to dispositions of Crown rights to oil shales made heretofore or hereafter by means of permits under these or any other regulations; (b) Part III shall apply to dispositions of Crown rights to oil shales by means of leases; (c) Part IV

(a) The Mineral Tenure Registry Regulations;

(b) The Coal Disposition Regulations, 1988;

(c) The Quarrying Regulations, 1957, being Saskatchewan Regulations 553/67; or

(d) The Subsurface Mineral Tenure Regulations.

(2) These regulations do not apply to palaeontological objects as defined in The Heritage Property Act.

(3) For the purposes of section 27.31 of the Act:

(a) the date prescribed as the implementation date is the date on which these regulations are filed with the Registrar of Regulations; and

(b) on and after the implementation date, Part VII of the Act applies to all Crown minerals and spaces

governed by those regulations.

The Oil and Gas Tenure Registry Regulations were filed with the Registrar of Regulations on October 27, 2016 – RRS C-50.2 Reg 31 – OC 479/2016

Changed for consistency with The Mineral Tenure Registry Regulations.

Include oil and natural gas, helium and associated gases, oil sands, oil shale, and spaces.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

shall apply to all permits, leases or other dispositions of Crown rights to oil shales granted heretofore or hereafter. (1.1) These regulations do not apply to dispositions issued pursuant to The Petroleum and Natural Gas Regulations, 1969, being Saskatchewan Regulations 8/69. (2) Notwithstanding subsection (1), Part V shall apply to all lands situated in Saskatchewan except freehold lands where the owner of the surface rights is also the owner of all the rights to the oil shales thereunder.

HELIUM regulations

Application

4(1) These regulations shall apply to the rights to helium and associated gases that are the property of the Crown in the right of Saskatchewan and to the disposition thereof as follows: (a) Part II shall apply to dispositions of Crown rights to helium and associated gases made heretofore or hereafter by means of permits; (b) Part III shall apply to dispositions of Crown rights to helium and associated gases by means of leases; (c) Part IV shall apply to all permits, leases or other dispositions of

mentioned in subsection (1).


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

Crown rights to helium and associated gases granted heretofore or hereafter. (2) Notwithstanding subsection (1), Part V shall apply to all lands situated in Saskatchewan except in the following cases: (a) freehold lands where the owner of the surface rights is also the owner of all the rights to the helium and associated gases thereunder; (b) freehold lands in respect of which an agreement for the use of the surface for a well site has been made prior to the first day of November, 1953, as long as such right to use the surface is held continuously from that date whether or not under the same agreement.

83

PNG regulations

PART II

Petroleum and Natural Gas Permits

Deleted PART II – Petroleum and Natural Gas Permits in its entirety


Ceased issuing permits under this Part on April 30, 1998 and replaced with Special Exploratory Permits. Those sections within this Part addressing expenditures that remained valid for Special Exploratory Permits (Sections 12, 13, 15 and 16) have been revised and added to the new regulations.

84 OIL SHALE regulations Deleted PART II –Permits in its entirety Changes from The Oil Shale Regulations,

1964:


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

PART II

Permits

Ceased issuing permits under this Part on April 30, 1998 and began issuing as Special Exploratory Permits in The Petroleum and Natural Gas Regulations, 1969.

85

PNG regulations

No new permits to be issued

4.1(1) In this section, “existing permit” means a permit issued under Part II of these regulations that was still in effect immediately before the coming into force of this section. (2) Notwithstanding any other provision of these regulations, on the coming into force of this section: (a) no person may apply for a permit pursuant to Part II of these regulations; and (b) the minister shall not issue any new dispositions pursuant to these regulations other than a lease issued in accordance with section 27 to the holder of an existing permit that has not expired, been surrendered or otherwise terminated in accordance with these regulations.

Deleted Change from The Oil Shale Regulations, 1964.

Housekeeping. No longer required with repeal of these regulations.

86


Granting of lease

Deleted Change from The Oil Shale Regulations, 1964: Not required as not issuing new


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

20 The minister may grant to an applicant a lease of the rights to oil shales in accordance with these regulations.

dispositions under the old regulations.

87

SPACES regulations

Rental rate

3 The rental rate for the lease of a space is $3.50 per hectare of the assigned surface area for each year, payable in advance.

Deleted Change from The Lease of Spaces Regulations.

Housekeeping. No longer required with repeal of these regulations. The rental rate will be accommodated in the new regulations with no change to the rate.

88

PNG regulations

PART VII

Registry

PART 2

Registry

Revised for electronic registry and consistency with the Act.

89

PNG regulations

Interpretation of Part 89 In this Part and in section 84, “document” means:

(a) a document within the meaning of Part VIII; or

(b) a security notice, notice of amendment, notice of assignment, notice of discharge or notice of partial discharge within the meaning of Part IX

Deleted Interpretations and definitions moved to Part 1.

90 HELIUM regulations Contact information Required for electronic registry.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

Company registered in Saskatchewan

45 No permit or lease shall be granted to a corporation or partnership and no consent to the assignment of a permit or lease to a corporation or partnership shall be given unless the laws of Saskatchewan respecting registration of corporations or partnerships have been complied with.


Company registered in Saskatchewan 39 No permit or lease shall be granted to a corporation or partnership and no consent to the assignment of a permit or lease to a corporation or partnership shall be given unless the laws of Saskatchewan respecting registration of corporations or partnerships have been complied with.

2-1 For the purposes of these regulations, if the minister is required or authorized to provide documents or information to a person pursuant to the Act or these regulations, the minister:

(a) shall provide those documents or that information to the person by using the contact information, if any, that is supplied by the person to Petrinex; and

(b) may provide those documents and that information to the person in any other manner that the minister considers appropriate to ensure that the documents and information are brought to the person's attention.

Changes from The Helium and Associated Gases Regulations, 1964, and The Oil Shale Regulations, 1964:

This section requires users to be registered in Petrinex in order to acquire mineral dispositions and administer their holdings.

91

PNG regulations

Registrable document

98(1) A document that conveys:

(a) the entire interest of the holder in a

Registrable instrument

2-2(1) Subject to payment of the fee set out in Part 1 of the Appendix, an instrument may be registered that transfers:

(a) the entire interest of the holder

Changes from The Petroleum and Natural Gas Regulations, 1969, The Helium and Associated Gases Regulations, 1964, and The Oil Shale Regulations, 1964:

Changed “document” to “instrument”.

Moved instruments from section 96 to this


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

Crown disposition;

(b) subject to subsection (2), a specified percentage of the interest of the holder in the Crown disposition;

(c) all or part of the interest of the holder in a formation, stratum or zone of the Crown lands contained in the Crown disposition; or

(d) a part of the area included in a Crown disposition; may be registered.

(2) A document that conveys an interest that is less than 1% of an interest in a Crown disposition is not registrable.

PNG regulations


(a) “registered” means, subject to section 97, registered pursuant to this Part;

(b) “document” means:

(i) a document that evidences:

in a mineral disposition;

(b) subject to subsection (2), a specified percentage of the interest of the holder in a mineral disposition;

(c) all or part of the interest of the holder in a formation, stratum or zone of the Crown mineral lands contained in the mineral disposition; or

(d) a part of the area included in a mineral disposition.

(2) No instrument is to be registered that conveys an interest that is less than 1% of an interest in a mineral disposition.

(3) Subject to subsections (1) and (2), the following instruments may be registered:

(a) an instrument that evidences:

(i) a transfer; or

(ii) a change of name;

section.

Delete 96(a) as “registered” is defined in Part 1.

Applicable to helium and associated gases and old oil shale in the new electronic tenure system.

Removed indemnification agreement and dissolution as in new system they will not be registered – they will attached to the disposition as supporting documents.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

(A) a transfer;

(B) a change of name;

(C) a power of attorney;

(D) a revocation of a power of attorney;

(E) an indemnification agreement mentioned in clause 101(2)(b); or

(F) a court order;

(ii) a certificate of:

(A) amalgamation;

(B) amendment; or

(C) dissolution;

issued pursuant to The Business Corporations Act or the Canada Business Corporations Act, as amended from time to time; or

(iii) a notice of sub-lease;

(c) “notice of sub-lease” means a Notice

(b) a court order;

(c) a certificate issued pursuant to The Business Corporations Act or the Canada Business Corporations Act of:

(i) amalgamation; or

(ii) amendment;

(d) a notice of sublease;

(e) an Order in Council.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

in Form F of Schedule D to these regulations:

HELIUM regulations

Assignments, subleases and transfers

43(1) Every grantee of an assignment, sublease or transfer of a lease or permit shall submit to the department for registration such assignment, sublease or transfer within sixty days of the date of execution thereof. (2) Two signed copies of the assignment, sublease or transfer shall be submitted to the department. (3) Upon registration one signed copy of the assignment, sublease or transfer shall be retained by the department. (4) No assignment, sublease or transfer shall be registered in the department unless it is submitted by or on behalf of a person or company who or which has registered in the department an interest in the lease or permit assigned, subleased or transferred. (5) The minister may in his discretion refuse to register an assignment, sublease or transfer.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

HELIUM regulations

New lease where partial surrender, etc

44 Where an assignment, transfer, surrender or cancellation of a lease affects or relates to only a portion of the lands, formations, strata or zones included in the lease: (a) the minister may, upon registration of the assignment, transfer, surrender or cancellation grant to the assignee, transferee or lessee a new lease in respect of the lands, formations, strata or zones included in the assignment or transfer or excepted from the assignment, transfer, surrender or cancellation, for the unexpired term of the original lease and these regulations shall mutatis mutandis apply to the new lease; or (b) the minister may, upon registration of the assignment or transfer, permit all formations, strata or zones to be included in the original lease provided that the obligations under such lease continue to remain with the original lessee and the whole lease is subject to cancellation upon default.



October 27, 2016

FORMER PROVISION(S)



EXPLANATION


37(1) Every grantee of an assignment, sublease or transfer of a lease or permit shall submit to the department for registration such assignment, sublease or transfer within sixty days of the date of execution thereof. (2) Two signed copies of the assignment, sublease or transfer shall be submitted to the department. (3) Upon registration one signed copy of the assignment, sublease or transfer shall be retained by the department. (4) No assignment, sublease or transfer shall be registered in the department unless it is submitted by or on behalf of a person or company who or which has registered in the department an interest in the lease or permit assigned, subleased or transferred. (5) The minister may in his discretion refuse to register an assignment, sublease or transfer.


ew lease where partial surrender, etc. 38 N Where an assignment, transfer, surrender or cancellation of a lease affects or relates to only a portion of the lands included in the lease the minister shall,


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

upon registration of the assignment, transfer, surrender or cancellation grant to the assignee, transferee or lessee a new lease in respect of the lands, included in the assignment or transfer or excepted from the assignment, transfer, surrender or cancellation, for the unexpired term of the original lease and these regulations shall mutatis mutandis apply to the new lease.

PNG regulations

Copies, searches, etc.

84(1) Subject to subsection (2), on request and on payment of the appropriate fee prescribed in Schedule A, any person may:

(a) inspect or obtain a copy of any document registered pursuant to Part VIII or any security notice, notice of amendment, notice of assignment, notice of discharge or notice of partial discharge registered pursuant to Part IX;

(b) obtain a copy, certified by the administrator as a true copy, of any:


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

(i) Crown disposition;

(ii) document registered pursuant to Part VIII; or

(iii) security notice, notice of amendment, notice of assignment, notice of discharge or notice of partial discharge registered pursuant to Part IX;

(c) subject to the conditions prescribed in this section, require a search of all documents registered pursuant to Part VIII or security notices, notices of amendment, notices of assignment, notices of discharge and notices of partial discharge registered pursuant to Part IX to be made with respect to a Crown disposition and a search report to be provided; or

(d) do all or any combination of the things described in clauses (a) to (c).

(2) The administrator may refuse to allow the inspection or copying of a document submitted prior to the coming into force of Part VIII or Part IX if, in the administrator’s opinion, the circumstances


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

warrant that refusal.

(3) Search reports are provided solely as a convenience to the persons who request them, and the minister, the ministry and employees, officers and agents of the ministry are not liable for any:

(a) error, omission or inaccuracy in; or

(b) loss, damages or other consequence arising from the reliance of any person on;

a search report provided pursuant to clause (1)(c), including any matter described in clause (a) or (b) that results, directly or indirectly, from the negligence or other act or omission of the minister, the ministry or any employee, officer or agent of the ministry.

(4) Every person who requests a search or search report pursuant to clause (1)(c) is deemed to have agreed to the following conditions respecting the search or search report:

(a) that the Crown, the minister, the ministry and any officer, employee or


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

agent of the ministry are not responsible for any loss or damage resulting from any error or omission in the search or search report;

(b) that any person requesting, making use of or relying on a search or search report releases the Crown, the minister, the ministry and any officer, employee or agent of the ministry from any liability for loss or damage described in clause (a).

92

PNG regulations

Copies, searches, etc. 84(1) Subject to subsection (2), on request and on payment of the appropriate fee prescribed in Schedule A, any person may:

(a) inspect or obtain a copy of any document registered pursuant to Part VIII or any security notice, notice of amendment, notice of assignment, notice of discharge or notice of partial discharge registered pursuant to Part IX;

(b) obtain a copy, certified by the administrator as a true copy, of any:

Searches

2-3 Subject to payment of the fee set out in Part 1 of the Appendix, a user of the registry may:

(a) conduct a search of the information and mineral dispositions and instruments registered;

(b) obtain a copy, certified by the minister, of a search report of any instrument or mineral disposition contained in the registry; or

(c) make any other search request not included in clause (a) or (b).


Establishes legal authority for a person to search the public tenure registry and to search information not registered. Subsection 84(2) deleted as no longer required. Removed liability clauses 84(3) and 84(4) as the Act addresses these matters.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

(i) Crown disposition;

(ii) document registered pursuant to Part VIII; or

(iii) security notice, notice of amendment, notice of assignment, notice of discharge or notice of partial discharge registered pursuant to Part IX;

(c) subject to the conditions prescribed in this section, require a search of all documents registered pursuant to Part VIII or security notices, notices of amendment, notices of assignment, notices of discharge and notices of partial discharge registered pursuant to Part IX to be made with respect to a Crown disposition and a search report to be provided; or

(d) do all or any combination of the things described in clauses (a) to (c).

(2) The administrator may refuse to allow the inspection or copying of a document submitted prior to the coming into force of Part VIII or Part IX if, in the administrator’s opinion, the circumstances


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

warrant that refusal.

(3) Search reports are provided solely as a convenience to the persons who request them, and the minister, the ministry and employees, officers and agents of the ministry are not liable for any:

(a) error, omission or inaccuracy in; or

(b) loss, damages or other consequence arising from the reliance of any person on;

a search report provided pursuant to clause (1)(c), including any matter described in clause (a) or (b) that results, directly or indirectly, from the negligence or other act or omission of the minister, the ministry or any employee, officer or agent of the ministry.

(4) Every person who requests a search or search report pursuant to clause (1)(c) is deemed to have agreed to the following conditions respecting the search or search report:

(a) that the Crown, the minister, the ministry and any officer, employee or


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

agent of the ministry are not responsible for any loss or damage resulting from any error or omission in the search or search report;

(b) that any person requesting, making use of or relying on a search or search report releases the Crown, the minister, the ministry and any officer, employee or agent of the ministry from any liability for loss or damage described in clause (a).

93

PNG regulations

Fees

87 The fees payable to the ministry in respect of work or service pursuant to these regulations shall be payable in advance and in accordance with Schedule “A” to these regulations.

HELIUM regulations

Fees

55 The fees payable to the department in respect of work or services pursuant to these regulations are the fees set out in Table 2 of the Appendix and are payable

Fees for services and other matters

2-4(1) Subject to payment of the fee set out in Part I of the Appendix, a user of the registry may request that the ministry:

(a) provide a service that is otherwise available on a self-service basis; or

(b) prepare:

(i) a historical abstract; or

(ii) a copy of a record, including a certified copy of a record.

Changes from The Petroleum and Natural Gas Regulations, 1969 and The Helium and Associated Gases Regulations:

Removed “in advance” as certain fees are invoiced after the service is provided.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

in advance. (2) If a user fails to pay any fee required pursuant to these regulations, the minister may issue a notice of cancellation in accordance with section 9 of the Act.

94

PNG regulations

Correction or cancellation of registration

93(1) The administrator may correct or cancel the registration of any document:

(a) that was registered in error;

(b) that was registered on the basis of incorrect information supplied to the administrator;

(c) if the provisions of the Act and these regulations respecting registration have not been complied with respecting that document; or

(d) on the request of the person who submitted the document for registration.

(2) Before cancelling the registration of any document pursuant to subsection (1), the administrator shall provide at least 3

Deletion from registry or correction of entry in registry

2-5(1) On application by a holder, or on the initiative of the administrator, the administrator may:

(a) amend an entry in the registry; or

b) cancel or discharge an entry made in error in the registry.

(2) The administrator shall record the reason for any amendment, cancellation or discharge made to the registry pursuant to this section.

(3) The administrator shall notify parties affected by the amendment, cancellation or discharge:

(a) before the amendment, cancellation or discharge unless the administrator is of the opinion that a


This section sets out the rules for correcting errors in the registry.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

days’ notice to the person who registered the document and to any person who registered a document subsequent to that document.

delay in making the amendment, cancellation or discharge would have a deleterious effect on the registry; or

(b) as soon as is reasonably possible after making the amendment, cancellation or discharge.

95

PNG regulations

Document register

92(1) The administrator shall keep a book called the document register in which the administrator shall enter a record of each document that:

(a) is received by the administrator pursuant to clause 90(1)(a); and

(b) in the administrator’s opinion, is registrable.

(2) A record of a document entered in the document register is to contain:

(a) a short description of the document;

Registration of mineral dispositions and instruments

2-6(1) The administrator shall register a mineral disposition granting rights or interests in petroleum and natural gas, oil sands, oil shale or helium and associated gases.

(2) The administrator shall register any instrument that is:

(a) received by the ministry pursuant to section 2-2; and

(b) in the administrator’s opinion, registrable.

(3) A record of a mineral disposition or instrument entered in the registry must


Changed to align with registry as described in Part VII of the Act.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

and

(b) the date of receipt of the document.

(3) The entering of a record of a document in the document register constitutes registration of the document.

HELIUM regulations

Document register

48(1) The director shall be responsible for registering in the department assignments and other documents pertaining to Crown lands that have been approved and he shall keep a book to be called the “Document Register” in which he shall make an entry of each assignment and each other document received by him that is in proper form. Such entry shall contain a short description of the assignment or other document, together with the day, hour and minute of the receipt thereof. (2) For purposes of priority between assignees and transferees the time entered pursuant to subsection (1) with respect to assignments and transfers shall be taken as

contain:

(a) a short description of the mineral disposition or instrument; and

(b) the date of registration of the mineral disposition or instrument.

(4) The assignment of a mineral disposition number or instrument number in the registry constitutes registration of the mineral disposition or instrument.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

the time of registration.

(3) In addition to documents registered pursuant to this section the director may accept for filing but not for approval or registration certain other documents such as trust agreements that are in proper form. (4) The director shall make such other entries and keep such other records of assignments and other documents registered or filed pursuant to these regulations as he may deem necessary.


Document register

42(1) The director shall be responsible for registering in the department assignments and other documents pertaining to Crown lands that have been approved and he shall keep a book to be called the “Document Register” in which he shall make an entry of each assignment and each other document received by him that is in proper form. Such entry shall contain a short description of the assignment or other document, together with the day, hour and minute of the receipt thereof. (2)


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

For purposes of priorities among assignees and transferees the time entered pursuant to subsection (1) with respect to assignments and transfers shall be taken as the time of registration. (3) In addition to the documents registered pursuant to this section, the director may accept for filing but not for approval or registration certain other documents such as trust agreements that are in proper form. (4) The director shall make such other entries and keep such other records of assignments and other documents registered or filed pursuant to these regulations as he may deem necessary.

96

PNG regulations

Other records

94 The administrator may make any other entries and keep any other records that the administrator considers necessary with respect to documents registered pursuant to these regulations.

Other records

2-7 The administrator may make any other entries and keep any other records that the administrator considers necessary with respect to mineral dispositions and instruments registered pursuant to these regulations.


Changed “documents” to “instruments”

97

PNG regulations

No action from reliance on registry

95(1) The registry system provided


Section 27.52 of the Act provides for limitations of liability in regards to use of


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

pursuant to these regulations on registry is provided solely as a convenience to persons who use the system, and the minister, the ministry and employees, officers and agents of the ministry are not liable for any:

(a) error, omission or inaccuracy of or in; or

(b) loss, damages or other consequences arising from the reliance of any person on;

the registry system, including any matter described in clause (a) or (b) that results directly or indirectly from the negligence or other act or omission of the minister, ministry or any employee, officer or agent of the ministry.

(2) Every person who registers a document is responsible for insuring, by obtaining a search report, that the registration has been done in accordance with that person’s instructions.

the registry. Search requirement in (2) is not necessary as registry users have view and search access of the registry.

98

PART VIII

Registration of Documents

PART 3

Registration of Instruments


Changed “Documents” to “Instruments”


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

99

PNG regulations


(a) “registered” means, subject to section 97, registered pursuant to this Part;

(b) “document” means:

(i) a document that evidences:

(A) a transfer;

(B) a change of name;

(C) a power of attorney;

(D) a revocation of a power of attorney;

(E) an indemnification agreement mentioned in clause 101(2)(b); or

(F) a court order;

(ii) a certificate of:

(A) amalgamation;


Interpretations and definitions moved to Part 1 and Part 2. Registrable instruments described in Part 2.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

(B) amendment; or

(C) dissolution;

issued pursuant to The Business Corporations Act or the Canada Business Corporations Act, as amended from time to time; or

(iii) a notice of sub-lease;

(c) “notice of sub-lease” means a Notice in Form F of Schedule D to these regulations:

(d) “transfer” means an instrument by which a holder conveys a specific interest in a Crown disposition to another person and includes:

(i) an unconditional assignment; and

(ii) a surrender that is carried out or approved pursuant to these regulations of all or part of a Crown disposition;

but does not include farm-out agreements, sub-leases and security notices.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

100

PNG regulations

Prior registrations continued

97 Subject to subsection 105(2), documents that, on the day before the coming into force of this Part, were registered pursuant to section 80, as that section existed on the day before the coming into force of this Part, are deemed to be registered pursuant to this Part.


Part VII of the Act addresses legacy dispositions.

101

PNG regulations

Document number

90(1) The administrator shall:

(a) receive all documents submitted for registration pursuant to Parts VIII and IX; and

(b) immediately on receipt of a document for registration, assign to it a document number.

(2) Document numbers are to be assigned consecutively in the order in which documents are received.

Instrument number

3-1 The administrator shall assign instrument numbers consecutively in the order in which instruments are registered.


Changed to describe process for numbering instruments in the registry.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

102

PNG regulations

Order of registration

91(1) Subject to subsection (2), the order of registration is determined by the document number.

(2) Document numbers assigned to documents that are received and subsequently refused registration are deemed to be cancelled.

(3) For purposes of priority among and between transfers and security notices, the document number may be referred to.

Priority of registration

3-2(1) The order of registration is determined by the registration date assigned an instrument on registration in the registry.

(2) The registration date of an instrument establishes priority among and between transfers and security notices.


Changed “document” to “instrument”

103

PNG regulations

Submission for registration 99(1) A

holder shall submit to the administrator every document that affects a Crown disposition of the holder:

(a) on execution of the document; and

(b) in the case of a document executed prior to the coming into force of clause

Submission for registration

3-3(1) A holder of a mineral disposition shall submit to the registry every instrument, together with its supporting documentation, that affects a mineral disposition of the holder on execution of the instrument.

(2) Nothing in subsection (1) prevents any other person from submitting an instrument for registration.



Modified to meet the new IRIS system process. For example, the necessary checks will be in place in regards to net royalty leases, which eliminates need for intent to transfer.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

(a), on the request of the administrator.

(2) Nothing in subsection (1) prevents any other person from submitting a document for registration.

(3) A person who submits a document for registration shall provide to the administrator:

(a) one original and one copy of the document to be registered;

(b) the holder’s copy of the Crown disposition; and

(c) the appropriate fee set out in Schedule A.

(4) Where a document is executed on behalf of a person by an attorney or agent, the person who wishes to register the document shall submit to the administrator, in addition to the items mentioned in subsection (1), written proof of the authority of the attorney or agent that is satisfactory to the administrator.

(5) In the case of a transfer of a net royalty

(3) A person shall apply to register an instrument and must submit with the application an electronic version of the executed copy of the instrument to be registered.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

lease, the person who wishes to register the transfer shall submit to the administrator, in addition to the items mentioned in subsection (1), the prior consent of the minister on an approved form.

(6) Notwithstanding clause (3)(b), the administrator may accept a document for registration where the holder’s copy of the Crown disposition has not been submitted if:

(a) arrangements, satisfactory to the administrator, have been made for the holder’s copy of the Crown disposition to be submitted within a time considered by the administrator to be reasonable; and

(b) the person submitting the document pays the appropriate fee set out in Schedule A to these regulations.

(7) Notwithstanding clause (3)(a), the administrator may accept a copy of a document for registration if the administrator is provided with an affidavit which satisfies the administrator that:


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

(a) all reasonable efforts to locate the original of the document have been made and have not been successful; and

(b) the copy submitted to the administrator is a true copy of the original document, insofar as that can be determined in the circumstances.

HELIUM regulations


43(1) Every grantee of an assignment, sublease or transfer of a lease or permit shall submit to the department for registration such assignment, sublease or transfer within sixty days of the date of execution thereof. (2) Two signed copies of the assignment, sublease or transfer shall be submitted to the department. (3) Upon registration one signed copy of the assignment, sublease or transfer shall be retained by the department. (4) No assignment, sublease or transfer shall be registered in the department unless it is submitted by or on behalf of a person or company who or which has registered in the department an interest in the lease or


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

permit assigned, subleased or transferred. (5) The minister may in his discretion refuse to register an assignment, sublease or transfer.

HELIUM regulations

New lease where partial surrender, etc

44 Where an assignment, transfer, surrender or cancellation of a lease affects or relates to only a portion of the lands, formations, strata or zones included in the lease: (a) the minister may, upon registration of the assignment, transfer, surrender or cancellation grant to the assignee, transferee or lessee a new lease in respect of the lands, formations, strata or zones included in the assignment or transfer or excepted from the assignment, transfer, surrender or cancellation, for the unexpired term of the original lease and these regulations shall mutatis mutandis apply to the new lease; or (b) the minister may, upon registration of the assignment or transfer, permit all formations, strata or zones to be included in the original lease provided that the obligations under such lease continue to remain with the original lessee and the whole lease is subject to


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

cancellation upon default.

HELIUM regulations

Failing to register

47 Failure to register in the department any assignment or transfer of a permit or lease, whether by way of mortgage or otherwise, shall not invalidate the same as between the parties thereto, but such documents as to other assignees and transferees shall take effect from the date of registration and not from the date of the document.



37(1) Every grantee of an assignment, sublease or transfer of a lease or permit shall submit to the department for registration such assignment, sublease or transfer within sixty days of the date of execution thereof. (2) Two signed copies of the assignment, sublease or transfer shall be submitted to the department. (3) Upon registration one signed copy of the


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

assignment, sublease or transfer shall be retained by the department. (4) No assignment, sublease or transfer shall be registered in the department unless it is submitted by or on behalf of a person or company who or which has registered in the department an interest in the lease or permit assigned, subleased or transferred. (5) The minister may in his discretion refuse to register an assignment, sublease or transfer.


New lease where partial surrender, etc.

38 Where an assignment, transfer, surrender or cancellation of a lease affects or relates to only a portion of the lands included in the lease the minister shall, upon registration of the assignment, transfer, surrender or cancellation grant to the assignee, transferee or lessee a new lease in respect of the lands, included in the assignment or transfer or excepted from the assignment, transfer, surrender or cancellation, for the unexpired term of the original lease and these regulations shall


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

mutatis mutandis apply to the new lease.


Failure to register

41 Failure to register in the department any assignment or transfer of a permit or lease, whether by way of mortgage or otherwise, shall not invalidate the same as between the parties thereto, but such documents as to other assignees and transferees shall take effect from the date of registration and not from the date of the document.

104

PNG regulations

Registration procedure 100

Where the administrator accepts a document for registration, the administrator shall register the document by:

(a) recording on both copies of the document and the Crown disposition to which the document relates the date on which the document was received by the

Registration procedure

3-4 Subject to section 27.46 of the Act, when the administrator accepts an application for registration, the administrator shall register the instrument by:

(a) identifying on the mineral disposition or on the instrument to which the instrument relates the date on which the instrument was received by the registry;


Changed “document” to` “instrument”.

Moved 100(b) ahead of 100(c) to accurately reflect the new process in the IRIS system.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

administrator;

(b) endorsing both copies of the Crown disposition with a memorandum of the registration and return one copy to the person who submitted it; and

(c) recording the registration of the document in the document register pursuant to section 92.

(b) recording the registration of the instrument in the registry; and

(c) notifying the applicant of the outcome of the application for registration.

105

PNG regulations

Refusal of registration 101(l)

The administrator may refuse to register a document if:

(a) the document is not unconditional;

(b) the document is not:

(i) executed in a manner; and

(ii) accompanied by proof of execution; that is satisfactory to the administrator;

(c) the document is made with respect to:

(i) an interest that is greater than the


Not required as section 27.46 of The Crown Minerals Act provides this discretion.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

interest that the holder possesses;

(ii) an interest that is not a registered or recorded interest as indicated by the records of the ministry; or

(iii) a person who, according to the records of the ministry, has no registered interest in the interest with respect to which the document is made;

(d) the document conveys an interest that is less than 1% of an interest in a Crown disposition;

(e) the holder, or person who would become the holder on registration of the document, has not paid all outstanding arrears against any Crown disposition, including any rents and royalties;

(f) the person who becomes the holder as a result of registration does not submit an address for service in Saskatchewan;

(g) the appropriate fee prescribed in Schedule A is not paid;

(h) the Crown disposition of the holder is


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

not submitted;

(i) the person who submitted the document for registration has not otherwise complied with the Act, these regulations or the terms of any Crown disposition affected by the document; or

(j) in the opinion of the minister, it is not in the interest of the Crown or in the public interest to register the document.

(2) Where a document is submitted for registration or executed by or on behalf of a trustee, receiver, receiver-manager, liquidator, executor, administrator, property guardian appointed pursuant to The Adult Guardianship and Co-decision-making Act or other person acting in a similar capacity, the administrator may refuse to register the document unless it is accompanied by:

(a) one or more orders of the court that:

(i) appoint or confirm the appointment in Saskatchewan of the trustee, receiver, receiver-manager, liquidator, executor, administrator, property guardian or other


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

person acting in a similar capacity; and

(ii) authorize the transaction evidenced by the document;

(b) an indemnification agreement in favour of the minister, the ministry and the employees, officers and agents of the ministry that is:

(i) in a form; and

(ii) provided by a person;

that is satisfactory to the administrator; or

(c) in the case of a transfer, an order of the court vesting in the transferee the interest evidenced by the document.

(3) Notwithstanding any order of the court mentioned in subsection (2), in any case to which subsection (2) applies, the administrator may refuse to register the document if:

(a) the minister has made a determination pursuant to clause (1)(j); or


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

(b) for any other reason, the administrator is not satisfied that there has been compliance with the Act, these regulations and the terms of any Crown disposition affected by the document by any person with respect to the Crown disposition affected by the document.

(4) An applicant for an order mentioned in clause (2)(a) or (2)(c) shall serve notice of the application on the administrator not less than three days before the day fixed for the hearing of the application.

106

PNG regulations

Effect of registration 102(1) A

document that is not registered pursuant to this Part is not valid as against the Crown and is not recognized by the Crown for any purpose.

(2) A document that is registered pursuant to this Part is valid as against the Crown only from the day of registration.

Effect of registration

3-5(1) An instrument that is not registered pursuant to this Part does not bind the Crown.

(2) An instrument that is registered pursuant to this Part binds the Crown on and from the day of registration.



107

PNG regulations

Effect of transfer on Crown disposition

Effect of transfer on mineral disposition

3-6(1) The administrator may amend an original mineral disposition and issue a


Made 3-6(b), (c) and (d) specific to leases


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

103 The minister may amend an original Crown disposition and issue a new Crown disposition to a transferee in accordance with the terms and conditions of the original Crown disposition and subject, if applicable, to any registrations against the original Crown disposition if the administrator registers a transfer of:

(a) a specified percentage of an interest in a Crown disposition;

(b) part of the area of a Crown disposition;

(c) a specified strata of a Crown disposition; or

(d) any other divided interest in a Crown disposition.

new mineral disposition to a transferee in accordance with the terms and conditions of the original mineral disposition if the administrator registers a transfer of:

(a) a specified percentage of an interest in a mineral disposition;

(b) part of the area of a lease;

(c) a specified stratum of a lease; or

(d) any other divided interest in a lease.

(2) A new mineral disposition issued pursuant to subsection (1) is subject to any instruments registered with respect to the original mineral disposition.

as we do not accept transfers of these elements for permits and exploration licences.

108

PNG regulations

PART IX

Security Notices

PART 4

Registration of Notices


Made generic to cover the registration of all notices, not just security notices.

109

PNG regulations

Interpretation of Part 104


Interpretations and definitions moved to


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

In this Part:

(a) “collateral” means:

(i) the interest of a holder in a Crown disposition that is subject to a security interest; or

(ii) an interest in a Crown disposition that is:

(A) derived directly or indirectly from a holder or former holder of the Crown disposition; and

(B) subject to a security interest;

and includes any interest that the administrator approves as an interest in a Crown disposition;

(b) “notice of amendment” means a notice in Form B of Schedule D to these regulations;

(c) “notice of assignment” means a notice in Form C of Schedule D to these regulations;

Part 1.

104(b), (c), (d) and (e) moved to “Registration of security notice” section below.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

(d) “notice of discharge” means a notice in Form D of Schedule D to these regulations;

(e) “notice of partial discharge” means a notice in Form E of Schedule D to these regulations;

(f) “registered” means, except where a contrary intention is expressed, registered pursuant to this Part;

(g) “secured party” means a person who has a security interest;

(h) “security instrument” means a contract or other agreement that creates or provides for a security interest, and includes a short description of a security interest in writing and a document evidencing a security interest;

(i) “security interest” means an interest in or charge on collateral that secures payment or the performance of an obligation and includes an assignment pursuant to section 177 of the Bank Act (Canada), as amended from time to time.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

(j) “security notice” means a notice in Form A of Schedule D to these regulations.

110

PNG regulations

Prior submission or registration

105(1) A document evidencing a security interest or notice of a security interest that was:

(a) submitted to the administrator; and

(b) accepted by the administrator;

prior to the coming into force of this Part is deemed to be registered as a security notice pursuant to this Part with the document number previously assigned to it.

(2) An assignment pursuant to section 177 of the Bank Act (Canada), as amended from time to time, that, on the day before the coming into force of this Part, was registered pursuant to section 78, as that section existed on the day before the coming into force of this Part, is deemed to be registered as a security notice


Legacy Dispositions Part addresses legacy dispositions and instruments recorded against these dispositions.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

pursuant to this Part.

111

PNG regulations

Registration of security notice

106(1) A security notice may be registered pursuant to this Part with respect to a security interest.

(2) A person who wishes to register a security notice shall submit to the administrator:

(a) one original security notice;

(b) one copy of the original security notice mentioned in clause (a); and

(c) the appropriate fee prescribed in Schedule A to these regulations.

Registration of notices

4-1(1) Subject to payment of the fee set out in Part 1 of the Appendix and subject to section 27.46 of the Act, the following notices may be registered:

(a) a notice of amendment;

(b) a notice of assignment;

(c) a notice of discharge;

(d) a security notice;

(e) a notice of sublease.

(2) Subject to payment of the fee set out in Part 1 of the Appendix a person that intends to register a notice shall submit to the registry:

(a) an application for registration;

(b) a copy of the original notice with the application mentioned in clause (a).


Made generic – not just specific to security notices.

Fees will be invoiced on a monthly basis.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

112

PNG regulations

Refusal of registration

107 The administrator may refuse to register a security notice if:

(a) the appropriate fee prescribed in Schedule A to these regulations is not paid;

(b) the notice is not in Form A of Schedule D to these regulations;

(c) in the opinion of the administrator, the instructions in Form A of Schedule D to these regulations have not been fully complied with; or

(d) the person who submitted the security notice has not otherwise complied with the provisions of this Part.


Not required as section 27.46 of The Crown Minerals Act provides this discretion.

113

PNG regulations


108 On acceptance of a security notice for registration, the administrator shall:


4-2 On acceptance of a notice for registration, the administrator shall:

(a) record in the registry the day on which the notice was submitted to


Changed to match process in IRIS system.



October 27, 2016

FORMER PROVISION(S)



EXPLANATION

(a) record on both copies of the security notice the day on which the security notice was received by the administrator;

(b) assign to the security notice the next sequential document number and record the registration of the security notice in the document register pursuant to section 92; and

(c) record on the Crown disposition:

(i) the date of the security notice;

(ii) the name of the secured party;

(iii) the name of the debtor;

(iv) the document number assigned to the security notice pursuant to clause (b); and

(v) the day on which the security notice was received by the administrator.

the registry;

(b) assign to the notice the next consecutive unused instrument number and record the registration of the notice in the registry; and

(c) record on the mineral disposition with respect to which the notice is registered any other information that in the opinion of the administrator is relevant to the registration of that notice.

114

PNG regulations

Amended Crown dispositions

109(1) Where the minister or a person authorized by the minister, on the motion

Amended mineral dispositions

4-3(1) Subject to subsections (2) and (3), when the minister, on the initiative of the minister, subdivides a mineral disposition and, as a result of that subdivision, the


Deleted (4) to more accurately reflect process in IRIS system.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

of the minister or that person, subdivides a Crown disposition and, as a result of that subdivision:

(a) amends the Crown disposition; or

(b) issues one or more new Crown dispositions for all or part of the Crown lands affected by the subdivision;

the registration of the security notice against the Crown disposition is continued in accordance with subsection (2).

(2) The registration of a security notice mentioned in subsection (1) is continued:

(a) as against the original Crown disposition where the collateral to which the security notice relates remains in the original Crown disposition; and

(b) as against the amended or new Crown disposition where the collateral to which the security notice relates is in the amended or new Crown disposition.

(3) The administrator shall:

minister amends the mineral disposition or issues one or more new mineral dispositions for all or part of the Crown mineral lands affected by the subdivision, any notice that is registered with respect to the new mineral disposition continues to be registered with respect to:

(a) the mineral disposition; and

(b) any new mineral disposition created by the subdivision.

(2) The registration of a security notice is continued:

(a) with respect to the original mineral disposition if the collateral to which the security notice relates remains in the original mineral disposition; and

(b) with respect to the amended or new mineral disposition if the collateral to which the security notice relates is in the amended or new mineral disposition.

Clarified that security notices have a specific process in regards to amendments.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

(a) endorse an amended or new Crown disposition mentioned in subsection (1) with a registration that is continued pursuant to clause (2)(b); and

(b) subject to subsection (4), cancel the registration of the security notice against all or any part of the Crown disposition against which it:

(i) was originally registered; and

(ii) no longer relates.

(4) Before cancelling the registration of the security notice pursuant to subsection (3), the administrator shall provide at least three days written notice of the intention to cancel to the person who registered the security notice.

(3) The administrator shall:

(a) endorse an amended or new mineral disposition mentioned in subsection (1) with a registration that is continued pursuant to clause (2)(b); and

(b) cancel the registration of the security notice with respect to all or any part of the mineral disposition with respect to which it:

(i) was originally registered; and

(ii) no longer relates.

115

PNG regulations

Grouped Crown dispositions 110

A security notice registered against a Crown disposition that is grouped pursuant to section 14 continues to be registered against that Crown disposition and only that Crown disposition,

Grouped mineral dispositions

4-4 Notwithstanding the approval of a grouping pursuant to subsection 6-11(9), 7-7(2), 8-11(6) or 9-11(2), a notice registered with respect to a mineral disposition that is grouped continues to be registered with respect to that mineral disposition only.



Deleted “certificate” as we don’t have such an instrument today.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

notwithstanding the issuance of a grouping certificate.

Included grouping of permits and exploration licences.

116

PNG regulations

Amended security interest 111(1)

A notice of amendment to a registered security notice may be registered with respect to a registrable amendment described in clause (3)(a).

(2) A notice of amendment to a registered security notice shall be registered with respect to a registrable amendment described in clauses (3)(b) to (d).

(3) For the purposes of subsection (1), the following are registrable amendments:

(a) a change in the Crown disposition number assigned by the ministry to a Crown disposition against which a security notice is registered;

(b) a change in the secured party’s address for service as set out in a registered security notice;

(c) a change in the secured party’s name

Amended security interest

4-5(1) The administrator may register a notice of amendment with respect to a registered security notice described in clause (3)(a).

(2) The administrator shall register a notice of amendment with respect to a registered security notice described in clauses (3)(b) to (d).

(3) For the purposes of subsections (1) and (2), the following are registrable amendments:

(a) a change in the mineral disposition number assigned by the ministry to a mineral disposition with respect to which a security notice is registered;

(b) a change in the secured party’s address for service as set out in a registered security notice;

(c) a change in the secured party’s

No changes from The Petroleum and Natural Gas Regulations, 1969.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

as set out in a registered security notice, if the identity of the secured party has not changed despite the name change;

(d) a change in the debtor’s name as set out in a registered security notice, if the identity of the debtor has not changed despite the name change.

name as set out in a registered security notice, if the party that is the secured party has not changed despite the name change;

(d) a change in the debtor’s name as set out in a registered security notice, if the party that is the debtor has not changed despite the name change

117

PNG regulations

Assignment of security interest 112(1)

A notice of assignment may be registered with respect to an assignment of a security interest for which a security notice has been registered.

(2) Section 108 applies, with any necessary modification, to a notice of assignment.

HELIUM regulations

Assignment to bank 46(1)

Notwithstanding anything contained in these regulations, a copy of an assignment

Assignment of security interest

4-6 A notice of assignment may be registered with respect to an assignment of a security interest for which a security notice has been registered.


Simplified helium and associated gases and oil shale assignment sections for consistency with petroleum and natural gas.

Deleted 112(2) as administrator would not modify assignment. It would be rejected and resubmitted.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

of a permit or lease by way of security given to a chartered bank under section 82 of the Bank Act, certified by an officer of the bank to be a true copy, may be registered in the department. (2) Except as provided for in subsection (3) a bank shall not sell or assign or otherwise dispose of any interest of any person, including itself, in a permit or lease without the prior written consent of the minister. (3) Where the moneys borrowed have been repaid to the bank by the assignor together with such other sums as the bank may be entitled thereto, as soon as may be possible thereafter the bank shall execute and the assignor shall register in the department a disclaimer of interest under the assignment or a reassignment of the permit or lease, or such other document as may be necessary to effectually place the original assignor with respect to the permit or lease in the same position in relation to the bank as he was before the assignment to the bank was executed. Such disclaimer of interest, reassignment or other document shall be in such form as may be approved by the minister.



October 27, 2016

FORMER PROVISION(S)



EXPLANATION

Assignment to bank 40(1)

Notwithstanding anything contained in these regulations, a copy of an assignment of a permit or lease by way of security given to a chartered bank under section 427 of the Bank Act (Canada), certified by an officer of the bank to be a true copy, may be registered in the department. (2) Except as provided for in subsection (3) a bank shall not sell or assign or otherwise dispose of any interest of any person, including itself, in a permit or lease without the prior written consent of the minister.

(3) Where the moneys borrowed have been repaid to the bank by the assignor together with such other sums as the bank may be entitled thereto, as soon as may be possible thereafter the bank shall execute and the assignor shall register in the department a disclaimer of interest under the assignment or a reassignment of the permit or lease, or such other document as may be necessary to effectually place the original assignor with respect to the permit or lease in the same position in relation to the bank as he was before the assignment to the bank was executed. Such disclaimer


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

of interest, reassignment or other document shall be in such form as may be approved by the minister.

118

PNG regulations

Discharge of security interest

113(1)

PA notice of discharge may be registered with respect to a discharge of a security interest for which a security notice has been registered.

(2) A notice of partial discharge may be registered with respect to a partial discharge of a security interest for which a security notice has been registered.

Discharge of security interest

4-7 A notice of discharge may be registered with respect to a discharge of a security interest for which a security notice has been registered.


119

PNG regulations

Registration procedure for discharge

114 On acceptance of a notice of discharge or notice of partial discharge for registration, the administrator shall:

(a) record the discharge or partial discharge on:

Registration procedure for discharge

4-8 On acceptance of a notice of discharge for registration, the administrator shall:

(a) record the discharge on the mineral disposition; and

(b) record on the registered instrument to which the discharge




October 27, 2016

FORMER PROVISION(S)



EXPLANATION

(i) the Crown disposition; and

(ii) the security notice;

(b) record on both copies of the notice of discharge or notice of partial discharge the day on which the notice was received by the administrator;

(c) assign to the notice of discharge or notice of partial discharge the next sequential document number and record the registration of the notice of discharge or notice of partial discharge in the document register pursuant to section 91; and

(d) record on the Crown disposition:

(i) the day on which the notice of discharge or notice of partial discharge was received by the administrator; and

(ii) the document number assigned to the notice of discharge or notice of partial discharge.

applies the day on which the notice of discharge was received by the registry.

120 PNG regulations Notice to lapse

4-9(1) In this section, "court" means the



October 27, 2016

FORMER PROVISION(S)



EXPLANATION

Notice to lapse 115(1)

Any person who claims an interest in:

(a) a Crown disposition affected by a registered security notice; or

(b) the collateral mentioned in a registered security notice;

or the administrator, on his or her own motion, may serve the secured party at the address set out in the security notice with a notice to lapse in accordance with subsection (2).

(2) The notice to lapse shall set out:

(a) whether the security notice is to be lapsed:

(i) in its entirety; or

(ii) only with respect to a portion of the Crown disposition or collateral to which the security notice relates, and the notice to lapse shall contain a clear description of the portion;

Court of Queen's Bench.

(2) A notice to lapse may be served on a secured party that has registered a security notice at the address set out in the registered security notice by:

(a) the administrator, on his or her own initiative; or

(b) by any person that claims an interest in:

(i) a mineral disposition affected by the registered security notice; or

(ii) the collateral mentioned in the registered security notice.

(3) The notice to lapse mentioned in subsection (2) must specify that at the expiration of one month after the date of receipt of the notice to lapse, the registration of the security notice is discharged unless the secured party files with the administrator before the expiration of that one-month period an


Specifically, changed “cancel” to “discharge”.

Will no longer register security notices against land – only against dispositions – so 115(2)(a) was deleted.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

(b) that at the expiration of 30 days after the date of receipt of the notice to lapse, the registration of the security notice is cancelled in whole or in part, as the case may be, unless the secured party files with the administrator before the expiration of that 30-day period an order of the court that provides for the continuation of the registration beyond that period.

(3) The person mentioned in subsection (1) shall, at the same time he or she serves the secured party pursuant to that section, serve the administrator with a copy of the notice to lapse.

(4) Where an order of the court mentioned in subsection (2) has not been filed with the administrator, the administrator shall:

(a) on proof satisfactory to the administrator that:

(i) the secured party has been served with a notice to lapse; and

(ii) 30 days have expired since that notice to lapse was received by the secured party;

order of the court that provides for the continuation of the registration beyond that period.

(4) The person mentioned in clause (2)(a) or (b) shall, at the same time that person serves the secured party pursuant to this section, submit to the registry a copy of the notice to lapse.

(5) If an order of the court mentioned in subsection (3) has not been submitted to the registry, the administrator shall discharge the registration of the security notice in accordance with the notice to lapse:

(a) on evidence satisfactory to the administrator that:

(i) the secured party has been served with the notice to lapse; and

(ii) one month has expired since that notice to lapse was received by the secured party; and


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

and

(b) on request of the person who has served the notice to lapse; cancel the registration of the security notice in accordance with the notice to lapse.

(5) Where:

(a) an order of the court mentioned in subsection (2) has not been filed with the administrator; and

(b) the administrator has served the notice to lapse:

the administrator may cancel the registration of the security notice on the expiration of 30 days from the date of receipt of the notice to lapse by the secured party.

(6) The judge of the court to whom the application for an order mentioned in subsection (2) is made:

(a) after any notice and hearing that the judge considers proper; and

(b) on request of the person who served the notice to lapse.

(6) The administrator may discharge the registration of the security notice on the expiration of one month from the date of receipt of the notice to lapse by the secured party if:

(a) an order of the court mentioned in subsection (3) has not been submitted to the registry; and

(b) the administrator has served the notice to lapse.

(7) The judge of the court to whom the application for an order mentioned in subsection (3) is made may continue, discharge or substitute, in whole or in part, the registration of the security notice:

(a) after any notice and hearing that the judge considers proper; and

(b) on any terms and conditions that the judge may make.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

(b) on any terms and conditions that the judge may make;

may continue, cancel or substitute, in whole or in part, the registration of the security notice.

121 NEW PART 5

Legacy Dispositions

This Part sets out the rules governing the transition from the old regulations to the new registry system.

122

NEW Registration of legacy dispositions

5-1(1) On the implementation date, the minister shall register a legacy disposition on behalf of a holder in accordance with this Part.

(2) On registration of a legacy disposition, the administrator, on behalf of the legacy disposition holder, shall register any information, document, notice or other matter that is recorded by the ministry with respect to a legacy disposition on the implementation date if that information, document, notice or other recorded matter would have been an instrument if it were registered on or after the implementation date.

(3) A holder of a legacy disposition may

This section sets out the rules for registering legacy dispositions in the new system.

Added notwithstanding clause to accommodate certain dispositions that do not conform to the new registry system.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

verify and, if necessary, advise the administrator of any error that occurs in the registration of the legacy disposition.

(4) With respect to each legacy disposition in the register, the minister shall register:

(a) the legacy disposition containing any information that the minister is required to provide to meet the requirements of the registry; and

(b) if the minister considers it necessary to do so, an instrument that sets out the correct ownership information for that legacy disposition.

(5) If there is any conflict between the information in the legacy disposition set out in clause (4)(a) and the instrument set out in clause (4)(b), the information in the instrument prevails.

123

NEW Term of legacy disposition

5-2(1) The term of a legacy disposition:

This section confirms that the term of the legacy disposition will be governed by the new regulations.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

(a) commences on the date the legacy disposition was issued; and

(b) expires pursuant to the provisions of these regulations governing the term of a mineral disposition.

(2) The provisions of these regulations respecting termination of dispositions apply, with any necessary modification, to a legacy disposition as if that disposition had been issued on or after the implementation date.

124

PNG regulations

PART II.1

Special Exploratory Permits

PART 6

Permits

Changed title to more general “Permits” to include helium and associated gases permits.

125

PNG regulations

INTERPRETATION

Interpretation

23.1 In this Part:

(a) “expenditure deposit” means a deposit


Definitions all moved to Part 1 of the registry regulations for consistency with The Mineral Tenure Registry Regulations.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

by a permittee pursuant to section 23.41;

(b) “lease” means a lease entered into by a permittee pursuant to section 23.71 or 23.8;

(c) “permit” means a special exploratory permit to explore for oil or gas, or oil sands or oil shale, as the case may be, in permit lands;

(d) “permit land” means land for which a permit has been issued or is proposed to be issued and:

(i) is in the special exploration area; and

(ii) is a minimum of 10 000 hectares and a maximum of:

(A) 200 000 hectares for petroleum, natural gas, or petroleum and natural gas rights; or

(B) 100 000 hectares for oil sands rights or oil shale rights;

(e) “proposed annual work” means one-


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

half of the total amount of money that:

(i) the bidder will spend in eligible work on the permit land during the first two years of the term of the permit pursuant to section 23.4; and

(ii) is set out in the bid submitted in accordance with subsection 37(3);

(f) “rent” means the rent payable pursuant to section 23.3;

(g) “special exploration area” means:

(i) Crown oil and gas and oil shale rights lying within:

(A) Township 20 north to the Precambrian Shield and from Range 30, West 1 to Range 27, West 2, inclusive;

(B) Township 1 north to the Precambrian Shield and from Range 28, West 2 to Range 3, West 3, inclusive; and

(C) Township 4 north to the Precambrian Shield and from Range 4, West 3 to Range


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

11, West 3, inclusive; and

(ii) Crown oil sands rights lying within Township 74 north to the Precambrian Shield, and from the Fourth Meridian east to the Precambrian Shield.

126

NEW Bid for special exploratory permit

6-1 Any person that intends to obtain a special exploratory permit shall submit a bid to the minister pursuant to section 10-1.

Clarified that permit acquisition requires a bid through the land sale process.

127

HELIUM regulations

Application for permit 5

An application for a permit to explore for helium and associated gases may be submitted to the department, and the minister may issue such permits in accordance with these regulations for any area of land not exceeding one hundred thousand acres in respect of which the rights to helium and associated gases are the property of the Crown in the right of Saskatchewan.

HELIUM regulations

Application for helium and associated gases permit

6-2(1) Any person that intends to obtain a helium and associated gases permit shall apply to the minister.

(2) An application for a helium and associated gases permit must be accompanied by all of the following:

(a) a plan and description of the lands applied for that are satisfactory to the minister;

(b) a program of work that the applicant intends to carry out with


Converted from acres to hectares.

Combined application and requirements sections.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

Requirements for application 6

An application for a permit shall be accompanied by: (a) a plan and description of the lands applied for satisfactory to the minister; (b) a program of work that the applicant intends to carry out in respect thereof; (c) a statement providing the applicant’s ability to have the proposed work done where such proof is not already on record in the department; (d) the rent for the first year, and such rent shall be retained by the department if the permit is granted, or returned to the applicant if the application is rejected; and (e) the names and addresses of the directors and officers of the applicant if the applicant is a corporation and if such information is not on record in the department.

respect to the lands mentioned in clause (a);

(c) a statement that is satisfactory to the minister establishing the applicant’s ability to have the proposed work done if a statement to that effect is not already on record in the ministry;

(d) the names and addresses of the directors and officers of the applicant if the applicant is a corporation and that information is not on record in the ministry.

(3) The rent for the first year required by section 6-8 is to be invoiced by the minister if the permit is issued.

128

HELIUM regulations

Application for permit

5 An application for a permit to explore for helium and associated gases may be submitted to the department, and the minister may issue such permits in accordance with these regulations for any

Issuance of special exploratory permit

6-3(1) The minister may issue a special exploratory permit to a person who:

(a) the minister is satisfied has complied with the requirements of this Part;


Changed “application” in 6-3(b)(i) to “work commitment bid” and to “a bid” in 6-3(b)(ii) to reflect actual process.

Added requirement to pay an application fee as per the new fee schedule.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

area of land not exceeding one hundred thousand acres in respect of which the rights to helium and associated gases are the property of the Crown in the right of Saskatchewan.

HELIUM regulations

Requirements for application

6 An application for a permit shall be accompanied by: (a) a plan and description of the lands applied for satisfactory to the minister; (b) a program of work that the applicant intends to carry out in respect thereof; (c) a statement providing the applicant’s ability to have the proposed work done where such proof is not already on record in the department; (d) the rent for the first year, and such rent shall be retained by the department if the permit is granted, or returned to the applicant if the application is rejected; and (e) the names and addresses of the directors and officers of the applicant if the applicant is a corporation and if such information is not on record in the department.

(b) submits a bid acceptable to the minister pursuant to section 10-1 specifying:

(i) in the case of an annual work commitment bid for a permit respecting oil and natural gas or oil shale, as the case may be, the amount of money that the person agrees to spend in eligible work on the permit lands during the first two years of the term of the special exploratory permit in accordance with the minimum expenditure requirements for that permit set out in Part 7; or

(ii) in the case of a bid respecting oil sands, the amount the person agrees to pay to acquire a special exploratory permit with rights for oil sands; and

(c) submits the application fee set out in Part 1 of the Appendix; and


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

PNG regulations

PERMIT RIGHTS

Issuance of permit

23.11 The minister may issue a permit to an applicant who:

(a) complies with this Part;

(b) submits a bid acceptable to the minister pursuant to subsection 37(3) specifying:

(i) in the case of an application for a permit respecting oil or gas or oil shale, as the case may be, the amount of money that the applicant will spend in eligible work on the permit land during the first two years of the term of the permit in accordance with the minimum expenditure requirements of subsection 23.4(1), (2) or (3), as the case may be; or

(ii) in the case of an application respecting oil sands, the bonus amount the applicant is willing to pay to acquire an oil sands

(d) agrees to accept the permit and to be bound by its terms and conditions and by the Act and any regulations made pursuant to the Act.

(2) The area of Crown mineral lands for which a special exploratory permit may be issued is:

(a) a minimum of 36 surveyed sections or 9 324 hectares, more or less; and

(b) a maximum of:

(i) 720 surveyed sections or 186 500 hectares, more or less, for petroleum and natural gas rights; or

(ii) 360 surveyed sections or 93 240 hectares, more or less, for oil sands rights or oil shale rights.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

permit; and

(c) agrees to accept the permit and to be bound by its terms and by the Act and any regulations made pursuant to the Act.

129

NEW Issuance of helium and associated gases permit

6-4(1) On receipt of an application pursuant to section 6-2, the minister may issue the helium and associated gases permit applied for if:

(a) the minister is satisfied that the applicant has complied with the requirements of this Part; and

(b) the applicant has submitted the application fee set out in Part 1 of the Appendix.

(2) The area of Crown mineral lands for which a helium and associated gases permit may be issued is a maximum of 156.25 surveyed sections or 40 468 hectares, more or less.

Added for consistency with special exploratory permit issuance section 6-3.

Clarified that helium and associated gases permits will now require an application fee as per the new fee schedule.

130 PNG regulations Powers of minister

6-5(1) The minister may determine the

Changes from The Petroleum and Natural Gas Regulations, 1969 and The Helium


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

Powers of minister

23.9(1) The minister may determine the form of any permit or lease issued pursuant to this Part.

(2) The minister may place environmental or drilling restrictions on a permit or lease.

(3) Where a permittee violates any of the terms, conditions, stipulations or restrictions placed on a permit or lease by the minister, the minister may cancel that permit or lease and all interests in any lands affected revert to the Crown.

configuration of the permit area for any permit issued pursuant to this Part.

(2) The minister may place any environmental, drilling or developmental restrictions on a permit.

(3) If the minister is satisfied that a holder of a permit has contravened any terms or conditions of the permit, the minister may, after giving the holder written notice of the minister’s intention and an opportunity to be heard, cancel the permit, and all interests in any lands affected by the permit revert to the Crown.

and Associated Gases Regulations, 1969:

Combined oil and natural gas and helium and associated gases.

131

PNG regulations

Rights granted

23.21(1) Subject to The Seismic Exploration Regulations, 1999, a permittee has the right, licence, privilege and authority to explore for oil and gas or oil sands or oil shale, as the case may be, within the permit lands.

(2) The permittee may not remove, produce, recover or extract any oil and gas, oil shale or oil shale products or oil

Rights granted by and condition of permit

6-6(1) Subject to The Seismic Exploration Regulations, 1999, a permit grants to the holder the exclusive right to explore the permit lands for oil and natural gas, oil sands, oil shale or helium and associated gases, as the case may be.

(2) Subject to subsection (3), no holder of a permit shall remove, produce, recover or extract any oil and natural gas, oil shale or oil shale products, oil sands or oil sands


Combined oil and natural gas and helium and associated gases.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

sands or oil sands products discovered by exploration under a permit until a lease is granted to the permittee pursuant to this Part.

(3) On the application of the permittee, the minister may waive the requirement to obtain a lease for a specified period on those terms that the minister considers appropriate to enable the permittee:

(a) to place a well on production for production test purposes; or

(b) to remove, produce, recover or extract for test purposes:

(i) oil shale and oil shale products; or

(ii) oil sands and oil sands products.

(4) The permittee shall comply with section 84 of The Oil and Gas Conservation Regulations, 1985.

HELIUM regulations

Rights granted

products or helium and associated gases, as the case may be, discovered by exploration pursuant to a permit until a lease is issued to the holder pursuant to this Part.

(3) The holder of a permit may apply to the minister:

(a) to place a well on the permit lands for production test purposes; or

(b) to remove, produce, recover or extract from the permit lands for test purposes or for the purpose of analyzing and testing the samples and for mineralogical or other scientific studies:

(i) oil shale and oil shale products; or

(ii) oil sands and oil sands products.

(4) On receipt of an application pursuant to clause (3)(a) or (b) and if the minister is satisfied that it is advisable to do so, the


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

7(1) Subject to the Geophysical exploration Regulations made under The Mineral Resources Act, 1959, the permit shall grant to the permittee the right, licence, privilege and authority to explore the permit lands for helium and associated gases but not to remove, produce or recover such helium and associated gases until a lease pursuant to these regulations has been applied for and the granting thereof approved by the minister. (2) Notwithstanding subsection (1), upon application of the permittee, the minister may, if he deems it advisable, waive for a specified period the requiremheliument to lease upon such terms and conditions as he may designate in order that the permittee may place a well on production for production test purposes.

minister, by order, may grant the permission for a period specified in the order and on any terms and conditions that the minister may set out in the order.

(5) During the term of the permit, no holder of a permit shall fail to comply with:

(a) section 89 of The Oil and Gas Conservation Regulations, 2012; and

(b) the terms and conditions:

(i) set out in this Part; and

(ii) of the permit.

132

PNG regulations

Term of permit

23.2(1) Subject to subsections (2) and (3), the term of a permit is for a maximum of five years from the date it is issued.

(2) The minister may grant up to three one-year extensions to the term of a

Term of permit

6-7(1) Unless sooner surrendered or cancelled and subject to subsections (2) to (6), the maximum term of a permit is five years from the date on which it is issued.

(2) The minister may grant a one-year extension to the term of a permit if the


Simplified helium and associated gases term to match that for oil and gas permits.

Added extensions for drilling operations and drilling licence for consistency with exploration licences and leases. Also


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

permit if the minister approves an exploration program that:

(a) is submitted in an application to the minister at least 30 days before the expiration of the permit; and

(b) is to be performed by the person who applied for the extension.

(3) On the request of a permittee, the minister may extend the term of the permit if:

(a) the exploratory work required to be carried out pursuant to these regulations is delayed by an action of a government agency or a member of the Executive Council for environmental, regulatory, jurisdictional or consultation purposes with respect to the surface of the land; and

(b) the delay is greater than 60 days.

(4) In accordance with subsection (3), the minister may extend the term of the permit for a period equivalent to the length of the delay.

holder of the permit:

(a) applies in the registry to the minister for approval of an exploration program at least one month before the permit expires; and

(b) submits evidence that the holder has performed the minimum exploratory work required by the permit.

(3) The minister may grant up to three one-year extensions of the term of the permit pursuant to subsection (2).

(4) On the application of a holder of a permit, the minister may extend the term of the permit:

(a) if the exploratory work required to be carried out pursuant to these regulations is delayed:

(i) by an action taken by a government agency or a member of the Executive Council for environmental,

added extension for mining operations.

Added ministerial discretion for extensions for consistency with exploration licences and leases.

Clarified that no extension fee or rentals required to be paid for extensions.

Added “or any longer period” to 6-7(5) to accommodate situations where the delay occurs during winter drilling period, but end of term is during break-up.

Added 6-7(7) for consistency with exploration licences and leases - no fee or rent for extension period.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

HELIUM regulations

Term of permit

8(1) The term of the permit shall be a maximum of five years from the date of issue provided that if the permit is issued between the first day of October and the first day of March next following the term shall commence on the first day of March or such other earlier date within the said period as the applicant may specify.

(2) Notwithstanding subsection (1), the minister may, if he considers it to be in the public interest, grant upon written application up to three one-year extensions to the term of the permit; and all conditions applicable in the fifth year of the permit shall mutatis mutandis apply in each year of the extension period. In any extension so granted the minister may impose such other terms and conditions as he deems advisable.

regulatory, jurisdictional or consultation purposes with respect to the surface of the land; or

(ii) for any reason that is satisfactory to the minister; and

(b) the delay mentioned in clause (a) is greater than two consecutive months.

(5) In accordance with subsection (4), the minister may extend the term of the permit for a period equivalent to the length of the delay or any longer period that the minister may determine.

(6) On the application of a holder of a permit, the minister may extend the term of a permit for a period not to exceed three months if the holder of the permit is in compliance with these regulations and the terms and conditions of the permit and:

(a) the holder of the permit is carrying out drilling or mining


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

operations on the permit lands when the period for which the permit is valid expires; or

(b) a well licence has been issued to the holder of the permit but drilling operations have not begun for reasons beyond the control of the holder of the licence.

(7) If the term of a permit is extended pursuant to subsection (4), the holder of the permit is not required to pay rent with respect to the period of the extension of the term of the permit.

133

PNG regulations

OBLIGATIONS OF PERMITTEE

Rent

23.3(1) During the term of the permit, the permittee shall pay rent of $0.25 per hectare to the ministry annually.

(2) During the term of any lease, the permittee shall pay rent to the ministry in accordance with subsection 44(1).

Annual permit rent

6-8(1) During the term of the permit, the holder of the permit shall pay to the ministry an annual rent as follows:

(a) for a special exploratory permit, $0.25 per hectare of permit lands for each year of the term of the permit;

(b) for a helium and associated gases permit:


Added helium and associated gases and converted rates for hectares.

Clarified that rentals will not be required for extensions.

Removed section that requires payments in advance of the anniversary date. In new system, permittees and lesses will be invoiced electronically, but not


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

(3) Rents are due and payable to the ministry in advance of the anniversary date of the permit or the lease.

(4) Rent is not refundable where lands are surrendered or the permit or lease is terminated.

(5) Where a permittee or lessee fails to pay rent in accordance with this section, the minister shall terminate the permit or lease, and all interest in any land affected reverts to the Crown.

HELIUM regulations

Permit rent

9 The rent shall be payable annually in advance as follows: (a) for the first and second years of the term of the permit, at the rate of two cents an acre for each year; (b) for the third year of the term of the permit, at the rate of five cents an acre; (c) for the fourth and fifth years of the term of the permit, at the rate of ten cents an acre for each year.

(i) for the first and second years of the term of the permit, $0.05 per hectare of permit lands for each year;

(ii) for the third year of the term of the permit, $0.12 per hectare of permit lands; and

(iii) for the fourth, fifth and any extension years of the term of the permit, $0.25 per hectare of permit lands for each year.

(2) If a holder of a permit fails to pay rent in accordance with this section, the minister shall cancel the permit in accordance with section 9 of the Act, and all interests in any lands affected by the permit revert to the Crown.

(3) If the minister cancels the permit, no refund of rent is to be made to the holder of the permit.

necessarily in advance of anniversary date.


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FORMER PROVISION(S)



EXPLANATION

HELIUM regulations

Cancellation of permit or lease

49(1) If the grantee fails to fulfill, perform or observe any term or condition by these regulations required to be fulfilled, performed or observed by him, the minister may give the grantee written notice of his intention to cancel the permit or lease and if the grantee fails to remedy or commence to remedy the default to the satisfaction of the minister within sixty days after receiving such notice the minister may cancel the permit or lease. (2) The notice shall be sent by registered mail addressed to the grantee at his last known address according to the records of the department, and shall be deemed to have been received by the grantee within three days after the mailing thereof.


Cancellation of permit or lease

43(1) If the grantee fails to fulfill, perform or observe any provision of these regulations, the minister may give the


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

grantee written notice of his intention to cancel the permit or lease and if the grantee fails to remedy or commence to remedy the default to the satisfaction of the minister within sixty days after receiving such notice the minister may cancel the permit or lease. (2) The notice shall be sent by registered mail addressed to the grantee at his last known address according to the records of the department, and such notice shall be deemed to have been received by the grantee within three days after the mailing thereof.

134

NEW Drilling commitment and expenditure requirements for permit

6-9(1) Every holder of a permit shall satisfy the drilling commitment and permit expenditure requirements set out in Part 7 during the term of the permit, and a holder who fails to do so forfeits the right to convert the permit to a lease pursuant to section 6-11.

(2) Expenditures claimed for the purposes of satisfying drilling commitments and expenditure requirements with respect to the permit must comply with Part 7.

References a new Part created for expenditure requirements, similar to The Mineral Tenure Registry Regulations.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

135

PNG regulations

Surrender

23.61(1) The permittee may surrender all or part of any permit land at any time during the term of the permit.

(2) Where permit land is surrendered:

(a) no refund of rent is to be made;

(b) the minimum annual expenditure requirement for the lands surrendered is the amount C calculated as follows:

C = ((D/365)x(S/P)) x ER

where:

D is the number of days in the current year of the permit prior to the date of surrender;

S is the size of the permit lands surrendered, in hectares;

P is the original size of the permit lands, in hectares; and

Surrender of all or part of a permit

6-10(1) The holder of a permit may surrender all or any part of the permit lands at any time during the term of the permit.

(2) If the holder of the permit surrenders permit lands:

(a) no refund of rent is to be made to the holder; and

(b) the adjusted work expenditure requirement for the year for the permit lands is the amount C calculated as follows:

C = ER – (((D/365)x(S/P)) x ER)

where:

ER is the work expenditure requirement for the year for the total area of the permit lands at the time of the surrender;

D is the number of days in the current year of the permit subsequent to the date


Changed formula to remove ambiguity in regards to expenditures that are required to be made for the calendar year. The current formula only calculates the expenditures required on the surrendered lands, while the revised formula calculates the expenditures required on the entire permit for the calendar year, adjusted for the reduction for the surrendered portion.

Clarified that the formula applies to situations where a permit goes to lease selection.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

ER is the minimum annual expenditure requirements for the total area of permit lands at the beginning of the current year of the term of the permit, in accordance with subsection 23.4(1), (2) or (3), as the case may be.

HELIUM regulations

Surrender 16

The permittee shall have the right to surrender all or any part of the permit lands at any time during the term of the permit, but no refund of rent shall be made and the expenditure requirements shall be based upon the acreage of permit lands at the commencement of each rental year.

of surrender;

S is the area of the permit lands surrendered, in hectares; and

P is the original area of the permit lands before the surrender, in hectares.

136

PNG regulations

Information and material to be submitted

15(1) The permittee shall, within four months after the end of each year of the term of the permit, submit to the minister a detailed statement setting forth full particulars of the work and operations conducted on the permit lands and on any

Moved to Appendices. Changes from The Petroleum and Natural Gas Regulations, 1969 and The Helium and Associated Gases Regulations, 1964:

Moved to Appendices.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

lands in respect of which work credit is claimed during the preceding year and specifically setting forth the expenditure information and accompanied by the expenditure material:

(a) the nature of the operations and work performed;

(b) the extent to which drilling operations were carried out;

(c) where a gravity meter survey has been made:

(i) a clear sepia copy of a map showing the location and ground elevation of each station;

(ii) a clear sepia copy of a map showing the final corrected value at each station contoured on 0.5 milligals or less; and

(iii) a translucent copy of the complete report on the survey signed by a qualified geophysicist, geologist or engineer;

(d) where an approved geophysical survey or an aerial magnetometer or ground


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

magnetometer survey has been made:

(i) a clear sepia copy of a map contoured on a suitable scale, showing the location of each station and the corresponding observed value; and

(ii) a translucent copy of the complete report on the survey signed by a qualified geophysicist, geologist or engineer;

(e) where a seismic survey has been made;

(i) a clear sepia copy of a map showing on the map, or in suitable translucent tabular form, the location and ground elevation of each shot hole and the depth of the overburden, glacial drift, water, sand, gravel, coal, clay and other minerals encountered;

(ii) clear sepia copies of maps for the most dependable and continuous reflecting horizon above, at and below the top of the Palaeozoic group where information at such levels is available, based on the best current interpretation of all the seismograms obtained in the permit area, indicating the correction data and velocity


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

functions applied, showing at each shot point the corrected time values or corresponding depths and contoured on the basis of these values, employing a contour interval of 0.010 seconds or less if the value at the shot point is represented in corrected time and 15 metres or less if the value at the shot point is given in metres; and

(iii) a translucent copy of the complete report on the survey submitted by the contracting seismograph company to the operator or by the operator’s own seismograph department;

(f) in addition to the information requested under subclause (ii) of clause (e), the minister may request clear copies of the seismograms taken at each shot point, with the necessary computational data included on the face of each record and an employee authorized by him may at any time examine the original seismograms and any pertinent data related to them.

(2) Notwithstanding anything contained in subsection (1), the permittee may delay the submission of the information required


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

by clause (c), (d) or subclause (ii) or (iii) of clause (e) of subsection (1) upon depositing with the ministry the sum of $10,000 to guarantee the submission of the required information not later than four months after the termination of the permit. If such information is submitted before the expiration of four months after the termination of the permit the deposit shall be returned to the permittee, but if the information is not so submitted the deposit shall be forfeited to the Crown upon giving notice of intended forfeiture to the permittee.

HELIUM regulations


14(1) The permittee shall, within six months after the end of each year of the term of the permit submit to the minister a detailed statement setting forth full particulars of the work and operations conducted on the permit lands and on any lands in respect of which work credit is claimed during the preceding year and specifically setting forth the following information and accompanied by the


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

following material: (a) the nature of the operations and work performed; (b) the extent to which drilling operations were carried out; (c) where a gravity meter survey has been made: (i) a clear sepia copy of a map showing the location and ground elevation of each station; (ii) a clear sepia copy of a map showing the final corrected value at each station contoured on 0.5 milligals or less; and (iii) a translucent copy of the complete report on the survey signed by a qualified geophysicist, geologist or engineer; (d) where a geophysical survey approved by the minister or an aerial magnetometer or ground magnetometer survey has been made: (i) a clear sepia copy of a map contoured on a suitable scale, showing the location of each station and the corresponding observed value; and (ii) a translucent copy of the complete report on the survey signed by a qualified geophysicist, geologist or engineer; (e) where a seismic survey has been made: (i) a clear sepia copy of a map showing on the map, or in suitable translucent tabular form, the location and ground elevation of each shot hole and the depth of the overburden, glacial drift, water, sand, gravel, coal, clay, and other minerals


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

encountered; (ii) a clear sepia copy of maps for the most dependable and continuous reflecting horizon above, at and below the top of the Palaeozoic group where information at such levels is available, based on the best current interpretation of all the seismograms obtained in the permit area indicating the correction datum and velocity functions applied, showing at each shot point the corrected time values or corresponding depths and contoured on the basis of these values, employing a contour interval of 0.010 seconds or less if the value at the shot point is represented in corrected time and fifty feet or less if the value at the shot point is given in feet; and (iii) a translucent copy of the complete report on the survey submitted by the contracting seismograph company to the operator or by the operator’s own seismograph department;

137

PNG regulations

LEASES

Conversion to lease based on commercial discovery

Conversion of permit to lease

6-11(1) If the holder of a permit makes a discovery on permit lands of commercial quantities of oil or natural gas or helium and associated gases or of oil sands or oil shale capable of producing oil sands


Definition of “lease block” moved to ‘Definitions” section.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

23.71(1) In this section, “lease block” means:

(a) a block of permit land with minimum surface dimensions of 1.6 kilometres by 1.6 kilometres and maximum surface dimensions of 4.8 kilometres by 4.8 kilometres for petroleum, natural gas, or petroleum and natural gas permits, but only if all lands in the lease are adjoining; or

(b) a block of permit land with minimum surface dimensions of 1.6 kilometres by 1.6 kilometres and maximum surface dimensions of 9.7 kilometres by 9.7 kilometres for oil sands or oil shale permits, but only if all lands in the lease are adjoining.

(2) If a well made on permit land pursuant to section 23.31 results in the discovery of commercial quantities of oil or gas or results in the discovery of oil sands or oil shale capable of producing oil sands products or oil shale products in commercial quantities, as the case may be, and the permittee wishes to obtain a lease for that land, the permittee shall, if the permit is in good standing, within 180

products or oil shale products in commercial quantities, as the case may be, on permit lands, and the holder of the permit intends to obtain a lease for that land, the holder shall, if the holder has complied with the terms and conditions of the permit, within six months after the discovery:

(a) select one or more lease blocks; and

(b) apply for a lease of the selected lease blocks in accordance with these regulations.

(2) The lease blocks selected pursuant to subsection (1) must include the well whose drilling or mining operations whose making resulted in the discovery of oil or natural gas, helium and associated gases, or of oil sands or oil shale capable of producing oil sands products or oil shale products, as the case may be, in commercial quantities.

(3) In addition to any lease selected pursuant to subsection (1), the holder of the permit has the exclusive right at the

Confirming that zone-specific leases selected in a random configuration for a gas discovery are in addition to the 25% selection of 100% of the remaining rights.

Added “more or less” to allow for irregular surveyed sections.

Removed “petroleum, natural gas” as no longer issuing natural gas-only leases from permits.

Helium and associated gases timeframe extended from three months to six months and helium and associated gases lease requirements added to 6-11(4).

For consistency with exploration licences, subsections 6-11(8) to (12) added to provide permit owners with the option to group lease selection areas between commonly-owned permits to accommodate large-scale operations (eg. oil sands or oil shale mining).


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

days after the discovery:

(a) select one or more lease blocks; and

(b) apply for a lease or leases of the selected lease blocks in accordance with these regulations.

(3) The lease blocks selected pursuant to subsection (2) must include the well whose making resulted in the discovery of oil or gas, or of oil sands or oil shale capable of producing oil sands products or oil shale products, in commercial quantities.

(4) In addition to any lease or leases obtained pursuant to subsection (2), the permittee has the exclusive right at the expiry of the term of the permit or within 60 days after the expiry to select one or more lease blocks and apply for a lease or leases of the areas included in the lease blocks if the permittee:

(a) complies with sections 23.31, 23.4 and 23.51; and

(b) applies for the lease or leases in

expiry of the term of the permit or within two months after the expiry to select one or more lease blocks and apply for a lease of the areas included in the lease blocks if the holder of the permit:

(a) complies with sections 6-9 and 7-1; and

(b) applies for the lease in accordance with these regulations.

(4) Subject to subsection (11) and notwithstanding the maximum area set out in a permit issued pursuant to clause 4(b) of the Act, the total area of the lease blocks selected by a holder of a permit pursuant to this section is to comprise:

(a) in the case of a petroleum and natural gas permit, not more than 25% of the permit lands covered by the permit on the day on which the permit is issued;

(b) in the case of an oil shale permit, not more than 25% of the permit lands covered by the permit on the day on which the permit is


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

accordance with these regulations.

(5) The total area of the lease blocks selected by a permittee pursuant to this section is not to comprise more than:

(a) 25% of the permit land covered by the petroleum, natural gas, or petroleum and natural gas permit on the day on which the permit is issued;

(b) 25% of the permit land covered by the oil shale permit on the day on which the permit is issued; or

(c) 50% of the permit land covered by the oil sands permit on the day on which the permit is issued.

(6) If a permittee selects more than one lease block from a petroleum, natural gas, or petroleum and natural gas permit, each lease block is to be situated so that any side of one block is at least 1.6 kilometres perpendicularly distant from any side of another block except that the blocks may be diagonally situated so as to have a common corner.

issued;

(c) in the case of an oil sands permit, not more than 50% of the permit lands covered by the permit on the day on which the permit is issued;

(d) in the case of a helium and associated gases permit:

(i) if the conversion to a lease is based on a commercial discovery of helium and associated gases:

(A) at least nine surveyed sections or 2 331 hectares, more or less, but only if all lands in the lease are adjoining; or

(B) if the permit lands are fewer than nine surveyed sections or 2 331 hectares, more or less, 100% of the


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FORMER PROVISION(S)



EXPLANATION

(7) If a permittee selects more than one lease block from an oil sands or oil shale permit and that permittee has not discovered oil sands or oil shale capable of producing oil sands products or oil shale products in commercial quantities within the area covered by the permit, each lease block is to be situated so that any side of one block is at least 4.8 kilometres perpendicularly distant from any side of another block except that the blocks may be diagonally situated so as to have a common corner.

(8) If a permittee selects more than one lease block from an oil sands or oil shale permit and the permittee has discovered oil sands or oil shale capable of producing oil sands products or oil shale products in commercial quantities in the area covered by the permit, the permittee may select each lease block at random.

HELIUM regulations

Conversion to lease upon commercial discovery

17 Where a well drilled on any land

permit lands;

(ii) if the conversion to a lease is not based on a commercial discovery of helium and associated gases and occurs during the first three years of the term of the permit, 100% of the helium and associated gases permit lands; or

(iii) if the conversion to a lease is not based on a commercial discovery of helium and associated gases and occurs during the fourth year of the term of the permit and the holder of the permit has expended in actual drilling on the permit lands an amount equal to at least $0.40 per hectare of permit lands, 100% of the helium and associated gases permit lands; or

(iv) if the conversion to a lease is not based on a commercial discovery of


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

within the permit area has determined the presence of helium or associated gases in commercial quantities the permittee shall, within ninety days after being notified by the department, apply for a lease or leases of at least nine sections of Crown rights to helium or associated gases within a rectangular area containing within its boundaries the well or, if the permit lands comprise nine sections or less, lease of all of the permit lands.

HELIUM regulations

Right to lease

18 The permittee shall, subject to prior compliance with section 10 or subsection (3) of section 11 in addition to any lease or leases that he may obtain pursuant to the foregoing provisions, have the exclusive right, at any time during the term of the permit and during the period of sixty days after the termination of the permit unless it is terminated for any default on the part of the permittee, to apply for and obtain a lease or leases of permit lands provided that no lease shall be granted in the fourth year of the term of the permit unless the permittee has, prior

helium and associated gases and occurs during in the fifth year of the term of the permit and the holder of the permit has expended in actual drilling on the permit lands an amount equal to at least $0.75 per hectare of permit lands, 100% of the helium and associated gases permit lands.

(5) If a holder of a permit selects more than one lease block from a petroleum and natural gas permit, each lease block is to be situated so that any side of one block is at least 1.6 kilometres, more or less, perpendicularly distant from any side of another block except that the blocks may be diagonally situated so as to have a common corner.

(6) If a holder of a permit selects more than one lease block from an oil sands or oil shale permit and that holder has not discovered oil sands or oil shale capable of producing oil sands products or oil shale products in commercial quantities within the permit area, each lease block is to be situated so that any side of one block is at least 4.8 kilometres, more or less,


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

to the time of application for lease, expended in actual drilling an amount attributable to the permit lands as work credit equivalent to at least fifteen cents for each acres of permit lands; and provided further that no lease shall be granted in the fifth year of the term of the permit or in the sixty day period after the termination of the permit unless the permittee has, prior to the time of application for lease, expended in actual drilling an amount attributable to the permit lands as work credit equivalent to at least thirty cents for each acre of permit lands in accordance with these regulations.

perpendicularly distant from any side of another block except that the blocks may be diagonally situated so as to have a common corner.

(7) If a holder of a permit selects more than one lease block from an oil sands or oil shale permit and the holder has discovered oil sands or oil shale capable of producing oil sands products or oil shale products in commercial quantities in the permit area, the holder may select each lease block in a random configuration.

(8) For the purpose of selecting lease blocks for conversion to lease pursuant to this section, a holder of a permit may request that the minister group all or a part of the total area of lease blocks that may be selected as set out in clause (4)(a), (b) or (c) or as set out in a permit issued pursuant to clause 4(b) of the Act with all or a part of the total area of lease blocks that may be selected from not more than two other permits.

(9) The minister may approve a request made pursuant to subsection (8) to group all or a part of the total area of lease


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

blocks mentioned in that subsection if:

(a) the ownership of the permits to be grouped is common;

(b) the rights granted are common; and

(c) the permit lands covered by the other permit or permits are not more than 10 kilometres, more or less, distant from at lease one other permit that is the subject of the application.

(10) If the holder of a permit groups all or a part of the total area of lease blocks mentioned in subsection (8), the holder shall not include any of the grouped lease blocks in another application pursuant to this section.

(11) Permits that are grouped pursuant to this section may exceed the total area of lease blocks set out in clause (4)(a), (b) or (c).

(12) If the permits within the group have different expiry dates, the holder of the


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

permits may:

(a) choose not to convert to lease any or all of the permit lands with respect to a permit with an earlier expiry date than other permits in the group; and

(b) apply any or all of the total area of permit lands that was eligible for conversion to lease with respect to a permit mentioned in clause (a) to the conversion to lease with respect to a permit in the group with a later expiry date.

138

PNG regulations

Gas rights

23.8(1) Where a permittee with petroleum, natural gas, or petroleum and natural gas rights has determined the presence of gas in commercial quantities in a zone of a formation within the permit land, the permittee may select at random for lease up to 25% of the gas rights owned by the Crown within the zone of the formation in which the discovery is made.

Natural gas discovery

6-12(1) If a holder of a permit with oil and natural gas rights has determined that natural gas is present in commercial quantities in a zone of a formation in the permit lands, the holder may select in a random configuration for lease up to 25% of the oil and natural gas rights owned by the Crown within the zone of the formation in which the discovery is made in addition to any leases selected pursuant to subsection 6-11(3).


Changed to gas “discovery” and including the oil rights along with the natural gas rights when making a lease selection to avoid diverse ownership of substances.

Clarified that the 25% zone-specific selection for a natural gas discovery is in addition to the 25% selection for the entire column of rights in the permit.

Clarified that oil sands or oil shale


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

(2) Where a permittee leases Crown gas rights pursuant to this section, the permittee relinquishes to the Crown any right to Crown oil within the permit land in that zone, unless those same lands have also been selected pursuant to subsection 23.71(4).

(3) Where a permittee with oil sands or oil shale rights has determined the presence of gas in commercial quantities in a zone of a formation within the permit land, the permittee shall not remove, produce or recover the gas.

(2) No holder of a permit with oil sands or oil shale rights who has determined that oil or natural gas is present in commercial quantities in a zone of a formation in the permit lands shall remove, produce or recover the oil or natural gas.

permittees do not have a right to any oil or natural gas that may be encountered.

139

PNG regulations

Lease deposit

23.81 Any application for a lease made by a permittee pursuant to this Part is to be accompanied by the rent for the lease lands for the first year of the lease term.

PNG regulations

Application

42 Every application for a lease shall be

Application for lease selection from permit

6-13 Every application for a lease selection from a permit must include:

(a) a legal description of the lands whose boundaries conform to the SaskGrid system, with any necessary modification;

(b) subject to section 6-14, the rent for the period from the effective date of the lease to April 1 of the next year at the rate of the greater


Permittees will enter their selection directly into registry so no map requirement.

Modernized to reference SaskGrid system, added minimum rental of $50.00, and deleted 42(e) as unnecessary for lease selection from permits.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

accompanied by:

(a) a plan showing the area applied for and the lands in the area within which the petroleum, natural gas, petroleum and natural gas, oil sands or oil shale rights are the property of the Crown in the right of Saskatchewan;

(b) either:

(i) a legal description of those lands if they are in a surveyed territory; or

(ii) if those lands are in unsurveyed territory, Global Positioning System (GPS) coordinates describing those lands or a plan and land description satisfactory to the minister;

(c) subject to section 23, the rent at the rate of 25¢ per hectare for each month or portion thereof, if any, between the effective date of the lease and the first day of April next following;

(d) an application fee as required by SCHEDULE ‘A’; and

of:

(i) $0.25 per hectare of permit lands for each calendar month or portion of a calendar month; and

(ii) $50; and

(c) the application fee set out in Part 1 of the Appendix.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

(e) the names and addresses of the directors and officers of the applicant if the applicant is a corporation and if such information is not already on record in the ministry.

HELIUM regulations

Application

24 Every application for a lease shall be accompanied by: (a) a plan showing the area applied for and the lands in the area within which the rights to helium or associated gases are the property of the Crown in the right of Saskatchewan; (b) a legal description of such lands if they are in a surveyed territory; (c) subject to section 20, the rent at the rate of five cents an acre for each month or portion thereof, if any, between the effective date of the lease and the first day of April next following; (d) an application fee as set out in item 1 of Table 2 of the Appendix; and (e) the names and addresses of the directors and officers of the applicant if the applicant is a corporation and if such information is not already on record in the department.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

140

PNG regulations

Lease rent credits

23 The minister shall, if he is satisfied that the permittee has during the term of the permit fulfilled all the requirements of these regulations, credit the permittee with the amount by which the expenditures approved pursuant to section 13 in respect of the term of the permit exceed the expenditures required to be made pursuant to section 11 and such credit shall be applied toward the rent for the first twenty-four months or, at the option of the permittee, the first twenty-four months of the term commencing from the first day of April, of any lease or leases that may have been, or may thereafter be, granted to the permittee in respect of the permit lands: provided that no credit for excess expenditures shall be applied toward the rent for a lease or leases taken out in the first, second or third year of the term of the permit unless the permittee has spent on actual drilling and prior to the conversion of the permit to such lease or leases an amount equal to at least 40¢ per hectare of permit lands.

Credit for lease rent

6-14(1) If the minister is satisfied that the holder of a permit has during the term of the permit fulfilled all the requirements of these regulations, the minister shall grant a credit to the holder in an amount equal to the positive difference between:

(a) the expenditures made by the holder and approved pursuant to Part 7 with respect to the term of the permit; and

(b) the expenditures required to be made by the holder pursuant to section 6-9.

(2) Any credit granted pursuant to subsection (1) must be applied against the rent:

(a) for the first 24 calendar months of the term of the lease; or

(b) at the option of the holder, commencing from the first April 1 after the issuing of the lease, for the first 24 calendar months of the term


Removed minimum expenditure requirement of drilling and changed to “making a well” to accommodate potential mining operations for oil sands or oil shale.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

HELIUM regulations

Lease rent credits

20 The minister shall, if he is satisfied that the permittee has during the term of the permit fulfilled all the requirements of these regulations, credit the permittee with the amount by which the expenditures approved pursuant to section 12 in respect of the term of the permit exceed the expenditures required to be made pursuant to section 10 and such credit shall be applied against the rent for the first twenty-four months or, at the option of the permittee, the first twenty-four months of the term commencing from the first day of April, of any lease or leases that may have been, or may thereafter be, granted to the permittee in respect of any permit lands: provided that no credit for excess expenditures shall be applied against the rent for a lease or leases taken out in the first, second, third or fourth year of the term of the permit unless the permittee has spent on actual drilling and prior to the conversion of the permit to such lease or leases an amount equal to at least fifteen cents for each acre of permit lands.

of any lease that was or is issued to the holder with respect to the permit lands.

(3) Notwithstanding subsections (1) and (2), no credit for excess expenditures is to be applied against the rent for a lease taken out in the first, second, third or fourth year of the term of the permit unless the holder of the permit has incurred expenditures on drilling a well before the conversion of the permit to the lease.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

141

NEW PART 7

Drilling Commitment and Permit Expenditure Requirements

Separate Part for expenditures

142

PNG regulations

Work Commitment

23.31(1) The permittee shall make a minimum of one well per permit to a depth that is satisfactory to the minister.

(2) Where the petroleum, natural gas or petroleum and natural gas permit land exceeds 100,000 hectares, the permittee shall make at least two wells to depths that are satisfactory to the minister.

(3) Wells made in satisfaction of the requirements of this section are to be separated by at least eight kilometres.

HELIUM regulations

Right to lease

18 The permittee shall, subject to prior compliance with section 10 or subsection (3) of section 11 in addition to any lease

Drilling commitment

7-1(1) The holder of a special exploratory permit shall drill at least one well on the permit lands per permit with rights with respect to petroleum, natural gas or petroleum and natural gas to a depth that is satisfactory to the minister.

(2) If the permit lands covered by a special exploratory permit with rights with respect to petroleum, natural gas or petroleum and natural gas exceed 100 000 hectares, the holder of the permit shall drill at least two wells on the permit lands to depths that are satisfactory to the minister.

(3) Wells drilled in satisfaction of the requirements of subsections (1) and (2) are to be separated by a distance of at least eight kilometres.

(4) If a helium and associated gases permit includes a fourth year of the term


Changed from “Work” to “Drilling”.

No drilling commitment for oil sands or oil shale permits.

Given that the permittee cannot go to lease in years four or five unless they have drilled wells at proscribed rates, added that requirement here for clarity.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

or leases that he may obtain pursuant to the foregoing provisions, have the exclusive right, at any time during the term of the permit and during the period of sixty days after the termination of the permit unless it is terminated for any default on the part of the permittee, to apply for and obtain a lease or leases of permit lands provided that no lease shall be granted in the fourth year of the term of the permit unless the permittee has, prior to the time of application for lease, expended in actual drilling an amount attributable to the permit lands as work credit equivalent to at least fifteen cents for each acres of permit lands; and provided further that no lease shall be granted in the fifth year of the term of the permit or in the sixty day period after the termination of the permit unless the permittee has, prior to the time of application for lease, expended in actual drilling an amount attributable to the permit lands as work credit equivalent to at least thirty cents for each acre of permit lands in accordance with these regulations.

of the permit and the holder of the permit applies for a lease selection, the holder shall:

(a) drill a well not later than during the fourth year of the term of the permit; and

(b) expend an amount in actual drilling with respect to the permit equal to at least $0.40 per hectare of permit lands.

(5) If a helium and associated gases permit includes a fifth year of the term of the permit and the holder of the permit applies for a lease selection, the holder shall:

(a) drill a well not later than during the fifth year of the term of the permit; and

(b) expend an amount in actual drilling with respect to the permit equal to at least $0.75 per hectare of permit lands.

(6) A holder of a helium and associated


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

gases permit who fails to comply with the requirements set out in subsection (4) or (5) forfeits the right to convert the permit to a lease.

143

PNG regulations

Expenditure requirements

23.4(1) In the case of a permit issued to explore for oil and gas, the permittee shall expend at least the following amounts exploring for petroleum and natural gas in the permit land during the term of the permit:

(a) the greater of the amount of the proposed annual work and $2 per hectare for each of the first two years;

(b) $4 per hectare for each of the last three years;

(c) $6 per hectare for each year the permit has been extended.

(2) In the case of a permit issued to explore for oil sands, the permittee shall expend at least the following amounts exploring for oil sands in the permit land

Expenditure requirements

7-2(1) In the case of a permit issued to explore for oil and natural gas, the holder of the permit shall explore for oil and natural gas in the permit lands and expend at least the following amounts each year in exploring for oil and natural gas:

(a) during each of the first and second years of the term of the permit, the greater of:

(i) the amount of the annual work commitment bid made by the holder; and

(ii) $2 per hectare of permit lands;

(b) during each of the third, fourth and fifth years of the term of the permit, $4 per hectare of permit lands;


Clarify that exploration work must be conducted during term of permit.

Provided helium and associated gases permits with ability to apply a portion of excess expenditures to extension years.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

during the term of the permit:

(a) $1 per hectare for each of the first two years;



(3) In the case of a permit issued to explore for oil shale in the permit land, the permittee shall expend at least the following amounts exploring for oil shale in the permit land during the term of the permit:

(a) the greater of the amount of the proposed annual work and $1 per hectare for each of the first two years;



(3.1) Expenditures made in excess of

(c) if the permit has been extended pursuant to subsection 6-7(2), $6 per hectare of permit lands for each year that the permit is extended.

(2) In the case of a permit issued to explore for oil sands, the holder of the permit shall explore for oil sands in the permit lands and expend at least the following amounts each year in exploring for oil sands:

(a) during each of the first and second years of the term of the permit, $1 per hectare of permit lands;


c) if the permit has been extended pursuant to subsection 6-7(2), $3 per hectare of permit lands for each year that the permit is extended.

(3) In the case of a permit issued to explore for oil shale, the holder of the


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

those allowed for credit purposes in accordance with subsection (1), (2) or (3) may, at the option of the permittee:

(a) be applied for credit towards lease rents pursuant to section 23; or

(b) be deemed to have been expended in any year the permit has been extended to a maximum of:

(i) $2 per hectare for a permit issued to explore for oil and gas; or

(ii) $1 per hectare for a permit issued to explore for oil sands or oil shale.

(4) The provisions respecting proof of eligible expenditures and credit for expenditures in sections 12 and 13 apply to permits, with any necessary modification.

(5) Subject to section 23.51, if a permittee fails to meet the permittee’s minimum annual expenditure requirements, the minister shall cancel the permit and all interest in the permit lands reverts to the

permit shall explore for oil shale in the permit lands and expend at least the following amounts each year in exploring for oil shale:


(i) the amount of the annual work commitment bid made by the holder of the permit; and

(ii) $1 per hectare of permit lands;


(c) if the permit has been extended pursuant to subsection 6-7(2), $3 per hectare of permit lands for each year that the permit is extended.

(4) In the case of a permit issued to explore for helium and associated gases,


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

Crown.

HELIUM regulations

Minimum expenditure requirements

10(1) The permittee shall, during each of the first and second years of the term of the permit, expend in exploring for helium and associated gases in and upon the permit lands a sum of money equivalent to at least twenty cents for each acre of such lands or $10,000, whichever is the greater. (2) The permittee shall, during the third year of the term of the permit, expend in exploring for helium and associated gases in and upon the permit lands a sum of money equivalent to at least forty cents for each acre of such lands or $15,000, whichever is the greater. (3) The permittee shall, during each of the fourth and fifth years of the term of the permit expend in exploring for helium and associated gases in and upon the permit lands a sum of money equivalent to at least sixty cents for each acre of such lands or $20,000 whichever is the greater.

the holder of the permit shall explore for helium and associated gases in the permit lands and expend at least the following amounts each year in exploring for helium and associated gases:


(i) $0.50 per hectare of permit lands; and

(ii) $10,000;

(b) during the third year of the term of the permit, the greater of:

(i) $1 per hectare of permit lands; and

(ii) $15,000;

(c) during each of the fourth and fifth years of the term of the permit, and if the permit has been extended pursuant to subsection 6-7(2) for each year that the permit is


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

HELIUM regulations

Credit for expenditures

12(1) The amount of expenditures approved by the minister in respect of the work and operations carried out by the permittee during any year of the term of the permit shall be credited to the permittee against the amount of the expenditures required to be made during such year.

(2) If the permittee expends during any year an amount of money greater than he is required to expend pursuant to section 10, such excess expenditures shall be deemed to have been expended in work in succeeding years of the permit or may, at the option of the permittee, be applied for credit against lease rents pursuant to section 26

extended, the greater of:

(i) $1.50 per hectare of permit lands; and

(ii) $20,000.

(5) At the option of the holder of the permit, excess expenditures made pursuant to subsections (1), (2), (3) or (4) may:

(a) be applied for credit towards lease rents pursuant to section 6-14; or

(b) be deemed to have been expended in any year the permit has been extended to a maximum of:

(i) $2 per hectare of permit lands for a permit issued to explore for oil and natural gas; or

(ii) $1 per hectare of permit lands for a permit issued to explore for oil sands, oil shale or helium and associated


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

gases.

(6) Subject to section 7-8, if a holder of a permit fails to meet the holder’s work expenditure requirement during the year, the minister shall cancel the permit, and all interests in any lands affected by the permit revert to the Crown.

144

PNG regulations

Expenditure deposit

23.41(1) The expenditure deposit for each of the first two years of the term of the petroleum, natural gas or petroleum and natural gas permit is 25% of the proposed annual work.

(2) The expenditure deposit for the third and subsequent years of the term of the petroleum, natural gas or petroleum and natural gas permit is $1 per hectare.

(3) Expenditure deposits are due and payable to the ministry in advance of the anniversary date of the petroleum, natural gas or petroleum and natural gas permit.

(4) Expenditure deposits are to be

Expenditure deposit

7-3(1) The holder of a permit with rights with respect to petroleum, natural gas or petroleum and natural gas shall submit an expenditure deposit with respect to the work expenditure requirement for the year pursuant to the permit as follows:

(a) for each of the first and second years of the term of the permit, the expenditure deposit is 25% of the work expenditure requirement for the year;

b) for the third year and each subsequent year of the term of the permit, the expenditure deposit is $1 per hectare of permit lands.

(2) An expenditure deposit is due and


Clarify that deficiency payments do not qualify as exploration expenditures. Refund of expenditure deposits will only be made where actual exploration is conducted on the permit lands.


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EXPLANATION

refunded to the permittee at a rate of 25% of eligible expenditures if proof of those expenditures is submitted to and accepted by the ministry.

(5) Where a permittee fails to submit an expenditure deposit pursuant to this section, the minister shall cancel the permit and all interest in the permit lands reverts to the Crown.

payable to the ministry in advance of the anniversary date of the permit.

(3) If the holder of a permit with rights with respect to petroleum, natural gas or petroleum and natural gas submits evidence satisfactory to the minister of actual exploration expenditures to the minister, the minister shall refund 25% of the allowable expenditures for the work carried out, but the refund is not to exceed the amount of the expenditure deposit submitted pursuant to subsection (1).

(4) For the purposes of subsection (3), a deficiency payment is not an exploration expenditure.

(5) If a holder of a permit with rights with respect to petroleum, natural gas or petroleum and natural gas fails to submit an expenditure deposit, the minister shall cancel the permit, and all interests in any lands affected by the permit revert to the Crown.

145

PNG regulations

Proof of expenditures

Evidence of expenditures

7-4(1) A holder of a permit shall, not later than one month after each



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FORMER PROVISION(S)



EXPLANATION

12(1) The permittee shall, within thirty days next following the anniversary date of each year of the term of the permit, submit to the minister a statement setting forth the estimated sums of money expended during such year in carrying out the work and operations on the permit lands and on any lands in respect of which work credit is claimed by the permittee.

(2) The permittee shall, within four months next following the anniversary date of each year of the term of the permit, submit to the minister a detailed statement setting forth the sums of money expended in carrying out the work and operations during such year on the permit lands and on any lands in respect of which work credit is claimed by the permittee, and such statement shall be certified by a member in good standing of a recognized accounting profession that is regulated by an Act who is satisfactory to the minister or verified by statutory declaration by a person with personal knowledge of the facts and accompanied by original vouchers or certified copies thereof, verifying the expenditures provided that, if the minister in any particular case so requires, the statement shall be certified

anniversary date of the permit, file with the administrator a statement setting out the estimated sums of money expended during that year in carrying out work and operations on:

(a) the permit lands; and

(b) any other lands with respect to which credit for work expenditures is claimed by the holder.

(2) A holder of a permit shall, not later than four months after each anniversary date of the permit, file with the administrator a detailed statement setting out the sums of money expended during that year in carrying out work and operations on:

(a) the permit lands; and

(b) any other lands with respect to which credit for work expenditures is claimed by the holder.

(3) Every statement mentioned in subsection (2) must be:

Changed title of section to more accurately reflect requirement.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

by a member in good standing of a recognized accounting profession that is regulated by an Act who is satisfactory to the minister.

(3) If there is a deficiency in the amount of expenditures required to be made pursuant to section 11, the permittee may at the discretion of the minister:

(a) make a cash payment equivalent to the amount of such deficiency in order to maintain the permit in good standing; or

(b) make a cash deposit equivalent to the amount of such deficiency and such deposit shall be refunded upon proof by the permittee that he has expended in the year following such deficiency an amount equivalent to the cash deposit together with the expenditures required to be made by section 11 for such following year: provided that the minister may, if the permittee has expended the amount required to be made by section 11 for the year following the deficiency but has not expended an additional amount equivalent to the cash deposit, refund a portion of the cash deposit equivalent to the expenditures made over and above the

(a) certified by a member in good standing of a recognized accounting profession that is regulated by an Act who is satisfactory to the minister; or

(b) verified by a statutory declaration by a person with personal knowledge of the facts and accompanied by original vouchers or certified copies of those vouchers, verifying the expenditures.

(4) The minister may require that all or any part of a statement verified by a statutory declaration in accordance with clause (3)(b) be certified by a member in good standing of a recognized accounting profession that is regulated by an Act who is satisfactory to the minister.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

expenditures required to be made under section 11 and forfeit the remainder of the deposit to the Crown.

HELIUM regulations

Proof of expenditures

11(1) The permittee shall, within thirty days next following the anniversary date of each year of the term of the permit, submit to the minister a statement setting forth the estimated sums of money expended during such year in carrying out the work and operations on the permit lands and on any lands in respect of which work credit is claimed by the permittee. (2) The permittee shall, within four months next following the anniversary date of each year of the term of the permit, submit to the minister a detailed statement setting forth the sums of money expended in carrying out the work and operations during such year on the permit lands and on any lands in respect of which work credit is claimed by the permittee, and such statement shall be certified by a member in good standing of a recognized accounting profession that is regulated by an Act who is satisfactory to the minister


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

or verified by statutory declaration by a person with personal knowledge of the facts and accompanied by original vouchers or certified copies thereof, verifying the expenditures provided that, if the minister in any particular case so requires, the statement shall be certified by a member in good standing of a recognized accounting profession that is regulated by an Act who is satisfactory to the minister. (3) If there is a deficiency in the amount of expenditures required to be made pursuant to section 10, the permittee may: (a) make a cash payment equivalent to the amount of such deficiency in order to maintain the permit in good standing; or (b) make a cash deposit equivalent to the amount of such deficiency and such deposit shall be refunded upon proof by the permittee that he has expended in the year following such deficiency an amount equivalent to the cash deposit together with the expenditures required by section 10 for such following year: provided that the minister may, if the permittee has expended the amount required by section 10 for the year following the deficiency but has not expended an additional amount equivalent to the cash deposit, refund a portion of the cash deposit equivalent to


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

the expenditures made over and above the expenditures required under section 10 and forfeit the remainder to the Crown.

146

PNG regulations


15(1) The permittee shall, within four months after the end of each year of the term of the permit, submit to the minister a detailed statement setting forth full particulars of the work and operations conducted on the permit lands and on any lands in respect of which work credit is claimed during the preceding year and specifically setting forth the following information and accompanied by the following material:

(a) the nature of the operations and work performed;

(b) the extent to which drilling operations were carried out;

(c) where a gravity meter survey has been made:

Holder of a permit to submit annual statements

7-5(1) Within four months after the end of each year of the term of a permit, every holder of a permit shall submit to the minister:

(a) a detailed statement setting forth full particulars of the work and operations carried out on the permit lands and on any lands with respect to which a credit for work expenditures is claimed during the preceding year; and

(b) the evidence set out in Part 2 of the Appendix.

(2) The minister may request copies of the seismograms taken at each shot point, with the necessary computational data included on the face of each record submitted in accordance with subsection (1), and the minister may, at any time, examine the original seismograms and any


Details of expenditures moved to appendix.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

(i) a clear sepia copy of a map showing the location and ground elevation of each station;

(ii) a clear sepia copy of a map showing the final corrected value at each station contoured on 0.5 milligals or less; and

(iii) a translucent copy of the complete report on the survey signed by a qualified geophysicist, geologist or engineer;

(d) where an approved geophysical survey or an aerial magnetometer or ground magnetometer survey has been made:

(i) a clear sepia copy of a map contoured on a suitable scale, showing the location of each station and the corresponding observed value; and

(ii) a translucent copy of the complete report on the survey signed by a qualified geophysicist, geologist or engineer;

(e) where a seismic survey has been made;

(i) a clear sepia copy of a map showing on the map, or in suitable translucent tabular

pertinent data related to them.

(3) Seismograms submitted pursuant to subsection (2) are not to be made available to the public.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

form, the location and ground elevation of each shot hole and the depth of the overburden, glacial drift, water, sand, gravel, coal, clay and other minerals encountered;

(ii) clear sepia copies of maps for the most dependable and continuous reflecting horizon above, at and below the top of the Palaeozoic group where information at such levels is available, based on the best current interpretation of all the seismograms obtained in the permit area, indicating the correction data and velocity functions applied, showing at each shot point the corrected time values or corresponding depths and contoured on the basis of these values, employing a contour interval of 0.010 seconds or less if the value at the shot point is represented in corrected time and 15 metres or less if the value at the shot point is given in metres; and

(iii) a translucent copy of the complete report on the survey submitted by the contracting seismograph company to the operator or by the operator’s own seismograph department;


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FORMER PROVISION(S)



EXPLANATION

(f) Repealed.

(g) in addition to the information requested under subclause (ii) of clause (e), the minister may request clear copies of the seismograms taken at each shot point, with the necessary computational data included on the face of each record and an employee authorized by him may at any time examine the original seismograms and any pertinent data related to them.

(2) Notwithstanding anything contained in subsection (1), the permittee may delay the submission of the information required by clause (c), (d) or subclause (ii) or (iii) of clause (e) of subsection (1) upon depositing with the ministry the sum of $10,000 to guarantee the submission of the required information not later than four months after the termination of the permit. If such information is submitted before the expiration of four months after the termination of the permit the deposit shall be returned to the permittee, but if the information is not so submitted the deposit shall be forfeited to the Crown upon giving notice of intended forfeiture


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FORMER PROVISION(S)



EXPLANATION

to the permittee.

Permittee to submit annual statements

23.6(1) Every permittee shall submit annual statements to the minister pursuant to section 15.

(2) Section 16 applies to the release of any information submitted pursuant to section 15.

HELIUM regulations


14(1) The permittee shall, within six months after the end of each year of the term of the permit submit to the minister a detailed statement setting forth full particulars of the work and operations conducted on the permit lands and on any lands in respect of which work credit is claimed during the preceding year and specifically setting forth the following information and accompanied by the following material: (a) the nature of the operations and work performed; (b) the


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

extent to which drilling operations were carried out; (c) where a gravity meter survey has been made: (i) a clear sepia copy of a map showing the location and ground elevation of each station; (ii) a clear sepia copy of a map showing the final corrected value at each station contoured on 0.5 milligals or less; and (iii) a translucent copy of the complete report on the survey signed by a qualified geophysicist, geologist or engineer; (d) where a geophysical survey approved by the minister or an aerial magnetometer or ground magnetometer survey has been made: (i) a clear sepia copy of a map contoured on a suitable scale, showing the location of each station and the corresponding observed value; and (ii) a translucent copy of the complete report on the survey signed by a qualified geophysicist, geologist or engineer; (e) where a seismic survey has been made: (i) a clear sepia copy of a map showing on the map, or in suitable translucent tabular form, the location and ground elevation of each shot hole and the depth of the overburden, glacial drift, water, sand, gravel, coal, clay, and other minerals encountered; (ii) a clear sepia copy of maps for the most dependable and


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

continuous reflecting horizon above, at and below the top of the Palaeozoic group where information at such levels is available, based on the best current interpretation of all the seismograms obtained in the permit area indicating the correction datum and velocity functions applied, showing at each shot point the corrected time values or corresponding depths and contoured on the basis of these values, employing a contour interval of 0.010 seconds or less if the value at the shot point is represented in corrected time and fifty feet or less if the value at the shot point is given in feet; and (iii) a translucent copy of the complete report on the survey submitted by the contracting seismograph company to the operator or by the operator’s own seismograph department;

(f) where maps are required to be submitted to the minister or copies thereof under this subsection, the paper on which such maps are printed shall not be larger in size than forty inches by forty-eight inches; and (g) in addition to the information requested under subclause (ii) of clause (e), the minister may request clear copies of the seismograms taken at


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

each shot point with the necessary computational data included on the face of each record, and a departmental employee authorized by him may at any time examine the original seismograms and any pertinent data related to them. (2) Notwithstanding anything contained in subsection (1), the permittee may delay the submission of the information required by clause (c), (d) or sub-clause (ii) or (iii) of clause (e) of subsection (1) upon depositing with the department the sum of $10,000 to guarantee the submission of the required information not later than six months after the termination of the permit. If such information is submitted before the expiration of six months after the termination of the permit the deposit shall be returned to the permittee, but if the information is not so submitted the deposit shall be forfeited to the Crown upon giving notice thereof to the permittee.

147

PNG regulations


13(1) The amount of expenditures approved by the minister in respect of the work and operations carried out by the


7-6(1) The amount of approved expenditures with respect to the work and operations carried out by the holder of a permit during any year of the term of the permit must be credited to the holder


7-6(7) only applies to helium and associated gases permits.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

permittee during any year of the term of the permit shall be credited to the permittee toward the amount of expenditures required to be made during such year.

(2) If the permittee expends during any year an amount of money greater than that which is required to be made pursuant to section 11, such excess expenditures shall be deemed to have been expended in work in succeeding years of the permit.

(3) Expenditures made in excess of those allowed for credit purposes in accordance with subsection (2) may, at the option of the permittee, be applied for credit toward lease rents pursuant to section 23.

(4) For the purpose of determining from time to time the amount of expenditures made pursuant to section 11:

(a) the maximum capital charges shall not exceed the maximum capital cost allowance as provided for in the Income Tax Act (Canada);

(b) the cost of unrecovered casing may be

against the work expenditures required to be made during that year.

(2) If the holder of a permit expends during any year an amount of money greater than the holder is required to expend during that year pursuant to section 7-2, the excess expenditures:

(a) are deemed to have been expended in work and operations in succeeding years of the permit; or

(b) at the option of the holder, may be applied for credit against lease rents pursuant to section 6-14.

(3) For the purpose of determining the amount expended from time to time by the holder of the permit:

(a) only direct expenditures applicable to exploration are allowable;

(b) the maximum capital charges must not exceed the maximum capital cost allowance as provided

Provided details on expenditures that are not allowable.


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FORMER PROVISION(S)



EXPLANATION

accepted as an expenditure; and

(c) if the permit area is in an unsurveyed territory the cost of a recognized legal survey of the area shall be accepted as an expenditure in the year in which any work in connection with such survey was done, but the total credit for the cost of such survey shall not exceed twenty per cent of the expenditures required to be made during the second year of the term of the permit.

(5) Where any area of permit lands is surrendered in accordance with these regulations, expenditures in excess of those required to be made by section 11 shall be proportionately reduced in the ratio of the area surrendered to the area held prior to the surrender.

(6) If the permittee drills a well on freehold lands or on Crown lands other than his permit lands, he may claim credit for the expenditures made in drilling such well to the extent that the amount of such credit bears to the actual expenditures as the area of all Crown lands in an eight kilometre by eight kilometre square area centred by the section in which the well is

for in the Income Tax Act (Canada);

(c) if the permit lands are in land that is not the subject of a plan of survey as defined in The Land Surveys Act, 2000, the cost of a recognized legal survey of the area lands must be accepted by the minister as an expenditure in the year in which any work in connection with the survey was done, but the total credit for that survey must not exceed 20% of the expenditure required to be made during the permit year.

(4) The following expenditures are not allowable pursuant to clause (3)(a):

(a) administrative overhead and office expenses;

(b) well levy payment;

(c) legal fees or the fees and expenses of procuring the surface lease;

(d) equipment required to put a


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

located bears to the total area of lands in such square area, provided that the well is located within the permit area and not more than 1.6 kilometres from his permit lands.

HELIUM regulations


12(1) The amount of expenditures approved by the minister in respect of the work and operations carried out by the permittee during any year of the term of the permit shall be credited to the permittee against the amount of the expenditures required to be made during such year.

(2) If the permittee expends during any year an amount of money greater than he is required to expend pursuant to section 10, such excess expenditures shall be deemed to have been expended in work in succeeding years of the permit or may, at the option of the permittee, be applied for credit against lease rents pursuant to section 26. (3) For the purpose of determining the amount expended from

well in production or salvageable equipment used in drilling the well, including the following equipment:

(i) recoverable casing;

(ii) liner;

(iii) float equipment;

(iv) endless tubing;

(v) casing bowl;

(vi) wellhead;

(vii) unsalvageable packers;

(viii) plugs and downhole equipment;

(e) any recoverable equipment not mentioned in clause (d);

(f) any Goods and Services Tax paid pursuant to the Excise Tax Act (Canada) on the items listed in clauses (a) to (e).


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

time to time as required by section 10: (a) the maximum capital charges shall not exceed the maximum capital cost allowance as provided for in the Income Tax Act (Canada); (b) the cost of unrecovered casing may be accepted as an expenditure; and (c) if the permit lands are in an unsurveyed territory the cost of a recognized legal survey of the lands shall be accepted as an expenditure in the year in which any work in connection with such survey was done, but the total credit for such survey shall not exceed twenty per cent of the expenditures required to be made during the third year of the term of the permit. (4) Where any acreage of permit lands is surrendered in accordance with these regulations, expenditures in excess of those required by section 10 shall, for the purpose of credit for expenditures, be proportionately reduced in the ratio of the acreage surrendered to the acreage held prior to surrender. (5) If the permittee drills a well on freehold lands or on Crown lands other than his permit lands, he may claim credit for the expenditures made in drilling such well to the extent that the amount of such credit bears to the actual expenditures as the acreage of all Crown lands in a three miles

(5) If any part of the permit lands is surrendered in accordance with these regulations, expenditures in excess of those required by section 7-2 must, for the purpose of calculating credit for expenditures, be reduced proportionately by the ratio of the area of the permit lands surrendered to the area of the permit lands held before the surrender.

(6) Subject to subsection (7), if the holder of a helium and associated gases permit drills a well on freehold lands or on Crown mineral lands other than the holder’s permit lands, the holder may claim a credit for the expenditures made in drilling that well in the amount CR calculated in accordance with the following formula:

CR = EX x (ACL/AL)

where:

EX is the amount of the expenditure in drilling the well;

ACL is the area in hectares of all Crown mineral lands in an eight-kilometre-square


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

by three miles square area centered by the section in which the well is located bears to the total acreage of lands in such square area, provided that the well is located within the permit area and not more than one mile from his permit lands and provided further that such credit shall not apply to any well that is drilled after a well producing in commercial quantities has been drilled within such three miles by three miles square area.

area centred by the surveyed section in which the well is located;

AL is the area in hectares of all lands in the eight-kilometre-square area centred by the surveyed section in which the well is located.

(7) A holder of a helium and associated gases permit may claim a credit pursuant to subsection (6) only if:

(a) the well is located within the holder’s permit area and not more than 1.6 kilometres from the holder’s permit lands; and

(b) no other well producing in commercial quantities has been previously drilled within the eight-kilometre-square area centred by the surveyed section in which the well is located.

148

PNG regulations

Grouping of permits

23.5(1) For the purpose of grouping expenditures, a permittee may group the

Grouping of permit work expenditures

7-7(1) For the purpose of meeting the work expenditure requirement during the year, a holder of a permit may request that


Removed “and the interests” for consistency with administration of other


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

permit lands covered by up to three permits as long as:

(a) the ownership and the interests of each owner is common to all of the permits to be grouped;

(b) those lands are not separated by more than 10 kilometres;

(c) the grouping includes all lands covered by those permits; and

(d) none of the permits to be grouped is a permit that has been extended.

(2) Excess expenditures credited pursuant to section 13 will be prorated to the permit lands in the group.

(3) For the purpose of determining expenditures and credits, any work performed on lands grouped pursuant to this section subsequent to the grouping that is attributable to those lands as work credit is deemed to be work conducted on the permit lands in the group.

the minister group:

(a) up to three special exploratory permits; or

(b) two or more helium and associated gases permits.

(2) The minister may approve a request made pursuant to subsection (1) to group the permits mentioned in that subsection if:

(a) the ownership of the permits to be grouped is common;

(b) the permit lands are not separated by more than 10 kilometres, more or less;

(c) the grouping includes all lands covered by the permits concerned; and

(d) none of the permits to be grouped is a permit the term of which has been extended.

(3) Excess expenditures credited pursuant

disposition types, and clarified that the minister has discretion in approving a grouping request.

Added “more or less” to allow for correction lines, corner-to-corner distances across surveyed sections, and any other unusual situations of a similar nature.

Clarify that the grouping is continuous until such time as the permittee requests that the grouping be dissolved or until a permit within the group has been extended.

Added helium and associated gases permits.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

HELIUM regulations

Grouping of permits

13(1) The permittee may group his permit lands covered by two or more permits provided that such lands are not separated by more than six miles, and provided further that such grouping includes all lands covered by the permits concerned. (2) The minister may authorize the grouping of two or more permits held by different permittees upon such terms as he deems to be in the public interest. (3) No grouping shall be valid for more than one rental year. (4) Excess expenditures credited pursuant to section 12 shall be prorated to the permit lands in the group on an acreage basis. (5) Where permit lands are grouped pursuant to this section, any work performed upon such lands subsequent to the grouping or that portion of the work performed subsequent to the grouping and attributable to such lands as work credit shall, for the purpose of determining expenditures and credits, be deemed to be operations conducted on the permit lands in the group.

to subsection 7-6(2) must be prorated among all the permit lands in each permit in the grouping, including those permits that have met the work expenditure requirement during the year.

(4) If permit lands are grouped pursuant to this section, any work or operations performed on those permit lands subsequent to the grouping that is attributable to those permit lands as credit for work expenditures must, for the purposes of determining expenditures and credits, be deemed to be work and operations carried out on the permit lands in the grouping.

(5) A grouping for a helium and associated gases permit continues for one year.

(6) A grouping for a special exploratory permit continues:

(a) until the holder of the permit requests that the grouping be cancelled; or

(b) until the ownership of the


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

permit changes.

149

PNG regulations

Deficiency payments

23.51(1) Where the permittee does not meet the permittee’s minimum annual expenditure requirements pursuant to subsection 23.4(1), (2) or (3), as the case may be, the minister may allow the permittee to make a non-refundable cash payment in the amount of the deficiency in order to maintain the permit in good standing.

(2) Subsection (1) does not apply where the permittee fails to meet the minimum annual expenditure requirements in consecutive years.

(3) Subsection (1) does not apply with respect to a permit that has been extended.

Deficiency payments

7-8(1) Subject to subsections (2) and (3), if the holder of a special exploratory permit does not meet the holder’s work expenditure requirement during the year pursuant to section 7-2, the holder may make a non-refundable payment in the amount of the deficiency in order to maintain the permit in good standing.

(2) Subsection (1) does not apply if the holder of the permit fails to meet the work expenditure requirement in two or more consecutive years.

(3) Subsection (1) does not apply with respect to a permit that has been extended pursuant to subsection 6-7(2).


Made specific to special exploratory permits.

Deleted "cash" from 23.51(1) as minister has discretion to prescribe payment method as per new clause 11-16

150

PNG regulations

Release of information

16(1) No information submitted pursuant to clause (g) of subsection (1) of section

Confidentiality of information

7-9 Notwithstanding The Oil and Gas Conservation Act and the regulations made pursuant to that Act or any provisions of these regulations, the minister shall not make information or


Applies to all permits.

Wells drilled have confidentiality clause


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

15 shall be made available to the public.

(2) No information submitted pursuant to subclauses (ii) and (iii) of clause (c), clause (d) and subclauses (ii) and (iii) of clause (e) of subsection (1) of section 15 shall be made available to the public for one year after the termination of the permit.

HELIUM regulations

Release of information

15(1) No information submitted pursuant to clause (g) of subsection (1) of section 14 shall be made available to the public. (2) No information submitted pursuant to subclauses (ii) and (iii) of clause (c), clause (d) and subclauses (ii) and (iii) of clause (e) of subsection (1) of section l4 shall be made available to the public for one year after the termination of the permit.

material submitted pursuant to section 7-5 and described in Part 2 of the Appendix available to the public until one year after the permit expires, is surrendered in its entirety or is cancelled.

in The Oil and Gas Conservation Act and Regulations.

151

PNG regulations

Termination

23.7 Where a permit is terminated,

Expenditure deposit forfeiture

7-10 If a special exploratory permit is surrendered or cancelled pursuant to subsection 6-5(3), 6-8(2), 7-2(6) or 7-3(5)


Made specific to special exploratory permit.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

cancelled or surrendered pursuant to subsections 23.3(5), 23.4(5) or 23.41(5) or section 23.61, any remaining expenditure deposit held by the ministry is forfeited by the permittee.

or section 6-10, any remaining expenditure deposit held by the ministry is forfeited to the Crown by the holder of the permit.

152

HELIUM regulations

Part III to apply in lease selections

19 An application for and granting of a lease pursuant to the rights acquired under this part shall be in accordance with Part III.

Deleted Changes from The Helium and Associated Gases Regulations, 1964:

Not required in new regulations.

153

NEW PART 8

Exploration Licences

Bid for exploration licence

8-1 Any person that intends to obtain an exploration licence shall submit a bid to the minister pursuant to section 10-1.

Added to clarify that exploration licences acquired in land sale.

154

PNG regulations

PART III.1

Exploration Licences

Issuance of exploration licence

8-2(1) The minister may issue an exploration licence to a person who:

(a) the minister is satisfied has complied with the requirements of


Specified hectares for maximum and minimum sizes.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

Issuance of exploration licence

36.1(1) The minister may issue an exploration licence to an applicant who:

(a) complies with this Part;

(b) submits a bonus amount acceptable to the minister along with the bid submitted pursuant to subsection 37(3);

(c) submits an application fee of $250; and

(d) agrees to accept the exploration licence and to be bound by its terms and by the provisions of the Act and the regulations made pursuant to the Act.

(2) The maximum area that may be the subject of an exploration licence is 36 sections of Crown land and the minimum area is one section of Crown land.

this Part;

(b) submits a bid acceptable to the minister pursuant to section 10-1;


(d) agrees to accept the exploration licence and to be bound by its terms and conditions and by the Act and any regulations made pursuant to the Act.

(2) The area of Crown mineral lands for which an exploration licence may be issued is:

(a) a minimum of one surveyed section or 259 hectares, more or less; and

(b) a maximum of 36 surveyed sections or 9 324 hectares, more or less.

155

PNG regulations

Powers of minister

Powers of minister

8-3(1) The minister may determine the configuration of the lands covered by the


Changed “form” to “configuration” for


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

36.6(1) The minister may determine the form of an exploration licence issued pursuant to this Part.

(2) The minister may place any environmental, drilling or developmental restrictions on an exploration licence.

exploration licence for any exploration licence issued pursuant to this Part.

(2) The minister may place any environmental, drilling or developmental restrictions on an exploration licence.

(3) If the minister is satisfied that a holder of an exploration licence has contravened any terms or conditions of the exploration licence, the minister may, after giving the holder written notice of the minister’s intention and an opportunity to be heard, cancel the exploration licence, and all interests in any lands affected by the exploration licence revert to the Crown.

clarity.

156

PNG regulations

Rights granted under licence

36.2 Subject to these regulations and unless otherwise specifically stated in the exploration licence, an exploration licence grants to the licensee the exclusive right to:

(a) search, dig, bore and drill for oil and gas or oil sands, as the case may be, within the lands described in the

Rights granted to holder and condition of exploration licence

8-4(1) Subject to these regulations and unless otherwise specifically stated in the exploration licence, an exploration licence grants to the holder the exclusive right to:

(a) search, dig, bore and drill for oil and natural gas or oil sands, as the case may be, within the lands covered by the exploration licence;


Clarified compliance requirement.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

exploration licence; and

(b) win, get, recover, extract, procure, carry away, dispose of and sell the oil and gas or oil sands products found within the lands described in the exploration licence.

and

(b) win, get, recover, extract, procure, carry away, dispose of and sell the oil and natural gas or oil sands products found within the lands covered by the exploration licence.

(2) During the term of the exploration licence, no holder of an exploration licence shall fail to comply with the terms and conditions:

(a) set out in this Part; and

(b) of the exploration licence.

157

PNG regulations

Term of licence

36.4(1) Unless sooner surrendered or cancelled and subject to subsections (2) to (4), an exploration licence is valid for:

(a) two years after the date of its issuance, if any of the lands with respect to which the licence is issued are located south of

Term of exploration licence

8-5(1) Unless sooner surrendered, cancelled or terminated and subject to subsections (2) to (4), an exploration licence is valid for:

(a) two years after the date of its issuance, if any of the lands with respect to which the exploration licence is issued are located south


Combined 36.4(4) and (5) and deleted 36.4(5)(c) since well licence terms changed to one year since last amendment regulations in 2011.

Clarified that 2 month delay must be consecutive.

Provide minister with discretion to add


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

Township 55;

(b) three years after the date of its issuance, if:

(i) all of the lands with respect to which the licence is issued are located north of Township 54 but south of Township 66; or

(ii) some of the lands with respect to which the licence is issued are located north of Township 54 but south of Township 66 and the remainder of the lands are located north of Township 65;

(c) four years after the date of its issuance, if all of the lands with respect to which the licence is issued are located north of Township 65; or

(d) five years after the date of its issuance if the rights are for oil sands.

(2) On the request of a licensee, the minister may extend the term of the licensee’s exploration licence where:

(a) the exploratory work required to be carried out pursuant to these regulations is

of Township 55;

(b) three years after the date of its issuance, if:

(i) all of the lands with respect to which the exploration licence is issued are located north of Township 54 but south of Township 66; or

(ii) some of the lands with respect to which the exploration licence is issued are located north of Township 54 but south of Township 66 and the remainder of the lands are located north of Township 65;

(c) four years after the date of its issuance, if all of the lands with respect to which the exploration licence is issued are located north of Township 65; or

(d) five years after the date of its issuance, if the rights pursuant to

extra time to the extension to accommodate situations where, for example, the delay occurs during winter drilling season but the term ends April 4, which is during spring break-up with restricted access.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

delayed by an action of a government agency or a member of the Executive Council for environmental, regulatory, jurisdictional or consultation purposes with respect to the surface of the land; and

(b) the delay is greater than 60 days.

(3) In accordance with subsection (2), the minister may extend the term of the exploration licence for a period equivalent to the length of the delay.

(4) Where the holder of an exploration licence is conducting drilling operations on a well within the land covered by the exploration licence when the period for which the licence is valid expires, the minister may extend the term of the exploration licence for a period not to exceed three months after the finished drilling date of the well.

(5) The minister may extend the term of an exploration licence for a period not to exceed three months where:

(a) the holder of the exploration licence is in compliance with these regulations and

the exploration licence are for oil sands.

(2) On the application of a holder of an exploration licence, the minister may extend the term of the exploration licence:

(a) if the exploratory work required to be carried out pursuant to these regulations is delayed:

(i) by an action taken by a government agency or a member of the Executive Council for environmental, regulatory, jurisdictional or consultation purposes with respect to the surface of the land; or

(ii) for any reason that is satisfactory to the minister; and

(b) the delay mentioned in clause (a) is greater than two consecutive months.

(3) In accordance with subsection (2), the


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

the terms of the licence;

(b) a well licence has been issued to the holder of the exploration licence but drilling operations have not begun due to events beyond the control of the holder of the licence; and

(c) the well with respect to which the well licence was issued has a finished drilling date that falls within the extended term of the exploration licence.

(6) Where the term of an exploration licence is extended pursuant to subsection (2), no rent is required to be paid by the licensee for the period of the extended term.

minister may extend the term of the exploration licence for a period equivalent to the length of the delay or any longer period that the minister may determine.

(4) On the application of a holder of an exploration licence the minister may extend the term of an exploration licence for a period not to exceed three months if:

(a) the holder of the exploration licence is in compliance with these regulations and the terms of the exploration licence; and

(b) any of the following apply:

(i) the holder of the exploration licence is carrying out drilling operations on a well within the land covered by the exploration licence when the period for which the licence is valid expires;

(ii) a well licence has been issued to the holder of the exploration licence but


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

drilling operations have not begun for reasons beyond the control of the holder;

(iii) if the rights pursuant to the exploration licence are for oil sands, mining operations have been delayed for reasons beyond the control of the holder of the exploration licence.

158

PNG regulations

Exploration licence deemed to be Crown lease

36.21 An exploration licence is deemed to be a Crown lease within the meaning of the Act for the purpose of determining royalties payable on oil and gas or oil sands products produced from or allocated to the lands with respect to which the licence is issued.

Exploration licence deemed to be Crown lease

8-6 An exploration licence is deemed to be a Crown lease within the meaning of the Act for the purpose of determining royalties payable on oil and natural gas or oil sands products produced from or allocated to the Crown mineral lands with respect to which the exploration licence is issued.


159

PNG regulations

Rent

36.3(1) During the term of an exploration licence, the licensee shall pay annually to

Annual exploration licence rent

8-7(1) During the term of an exploration licence, the holder of the exploration licence shall pay annually to the ministry a rent of $1.75 per hectare of land covered


Clarified that failure to pay rental will result in cancellation of the exploration licence.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

the ministry a rent of $1.75 per hectare of land described in the exploration licence.

(2) Rents are due and payable to the ministry in advance of the anniversary of the exploration licence.

(3) Rent is not refundable where lands are surrendered or the exploration licence is cancelled.

(4) Where the term of an exploration licence is extended pursuant to section 36.4 for a period that is three months or longer, the holder of the exploration licence shall pay the full amount of the annual rent required pursuant to this section for the extended term even though the extended term is less than a full year.

by the exploration licence.

(2) If the holder of an exploration licence surrenders the lands covered by the exploration licence or the minister cancels the exploration licence, no refund of rent is to be made.

(3) If the term of an exploration licence is extended pursuant to subsection 8-5(2) for a period that is three months or longer, the holder of the exploration licence shall pay the full amount of the annual rent required pursuant to this section for the extended term even if the extended term is less than a full year.

(4) If a holder of an exploration licence fails to pay rent in accordance with this section, the minister shall cancel the exploration licence in accordance with section 9 of the Act, and all interests in any lands affected by the exploration licence revert to the Crown.

160

PNG regulations

Surrender

36.7(1) The holder of an exploration

Surrender of all or part of an exploration licence

8-8 The holder of an exploration licence may surrender all or any part of the lands



October 27, 2016

FORMER PROVISION(S)



EXPLANATION

licence may surrender the lands covered by the exploration licence at any time or may surrender part of those lands from time to time.

(2) No rent or fee paid by the holder of an exploration licence is refundable to the holder if the holder surrenders his or her exploration licence.

covered by the exploration licence at any time during the term of the exploration licence.

161

PNG regulations

Exploration licence terminated when lease issued

36.8 If the holder of an exploration licence obtains a lease pursuant to Part V for lands covered by the exploration licence prior to the end of the term of the exploration licence, the exploration licence is deemed to be terminated at the time the lease is issued.

Exploration licence terminated when lease issued

8-9 If the holder of an exploration licence obtains a lease pursuant to Part 9 for lands covered by the exploration licence before the end of the term of the exploration licence, the exploration licence terminates at the time the lease is issued.


162

PNG Regulations

Application

42 Every application for a lease shall be accompanied by:

(a) a plan showing the area applied for and

Application for lease from exploration licence

8-10 Every application for a lease selection from an exploration licence must include:

(a) a legal description of the lands


Modernized to reference SaskGrid system, added minimum rental of $50.00, and deleted 42(e) as unnecessary for lease selection from exploration licences.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

the lands in the area within which the petroleum, natural gas, petroleum and natural gas, oil sands or oil shale rights are the property of the Crown in the right of Saskatchewan;

(b) either:

(i) a legal description of those lands if they are in a surveyed territory; or

(ii) if those lands are in unsurveyed territory, Global Positioning System (GPS) coordinates describing those lands or a plan and land description satisfactory to the minister;

(c) subject to section 23, the rent at the rate of 25¢ per hectare for each month or portion thereof, if any, between the effective date of the lease and the first day of April next following;

(d) an application fee as required by SCHEDULE ‘A’; and

(e) the names and addresses of the directors and officers of the applicant if the applicant is a corporation and if such

whose boundaries conform to the SaskGrid system, with any necessary modification;

(b) subject to section 6-14, the rent for the period from the effective date of the lease to April 1 of the next year at the rate of the greater of:

(i) $0.25 per hectare of lease lands for each calendar month or portion of a calendar month; and

(ii) $50; and

(c) the application fee set out in Part 1 of the Appendix.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

information is not already on record in the ministry.

163

PNG regulations

Conversion to lease

36.5(1) In this section and in sections 36.8 and 36.9, “lease” means a lease issued pursuant to Part V.

(2) The holder of an exploration licence may apply to convert the exploration licence to a lease or leases, but only if the holder is in compliance with section 84 of The Oil and Gas Conservation Regulations, 1985.

(3) The holder of an exploration licence who wishes to apply to convert the exploration licence to a lease or leases shall apply on or before 60 days after the expiry of the exploration licence.

(4) The maximum area that may be covered by a lease resulting from a conversion pursuant to subsection (2) is equal to the sum of area factors for all wells made within the area covered by the

Conversion of exploration licence to lease

8-11(1) If the holder of an exploration licence is in compliance with section 89 of The Oil and Gas Conservation Regulations, 2012, the holder may apply to convert the exploration licence to one or more leases.

(2) The holder of an exploration licence who intends to apply to convert the exploration licence to a lease shall apply on or before the day that is two months after the expiry of the exploration licence.

(3) Subject to subsection (5), the maximum area that may be covered by a lease resulting from a conversion pursuant to subsection (1) is equal to the sum of area factors for all wells drilled or mining operations made within the area covered by the exploration licence.

(4) The area factor mentioned in subsection (3) for a well or mining operation is calculated in accordance with


Added “more or less” in 8-11(6)(b)to allow for correction lines, corner-to-corner distances across surveyed sections, and any other unusual situations of a similar nature.

Accommodating activities related to oil sands mining operations.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

exploration licence.

(5) The area factor mentioned in subsection (4) for a well is equal to the amount calculated in accordance with the following formula:

A = TD X F

where:

A is:

(a) equal to 1 in the case of a well made on exploration licences for oil sands but only if:

(i) the well is made sufficiently deep, in the minister’s opinion, to intersect the oil sands zone; and

(ii) any core recovered from the well is in compliance with The Oil and Gas Conservation Regulations, 1985; or

(b) in the case of a well made on exploration licences for petroleum, natural gas, or petroleum and natural gas, the area factor in sections rounded to the nearest

whichever of the following formulas applies:

(a) in the case of a well drilled or mining operation made on exploration licences the rights pursuant to which are for oil sands, the area factor, measured in surveyed sections, is the amount AF calculated in accordance with the following formula:

AF = 1

but only if:

(i) the well is drilled or mining operation is made sufficiently deep, in the minister’s opinion, to completely intersect or access the oil sands zone; and

(ii) any core recovered from the well is in compliance with section 89 of The Oil and Gas Conservation Regulations, 2012;


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

quarter section;

TD is the total measured depth, as expressed in metres, for the well;

F is 0.004 sections, if the well is drilled to 1,800 metres or less, and 0.006 sections, if the well is drilled to more than 1,800 metres.

(6) Notwithstanding subsection (4), the holder of an exploration licence may group the area factors of any or all wells made in one other area covered by another exploration licence if:

(a) the other exploration licence is held by the same holder; and

(b) the other area covered by the other exploration licence is not more than 3.2 kilometres distant from the area that is the subject of the application.

(7) If the holder of an exploration licence groups the area factors of wells made in another area pursuant to subsection (6), the holder may not include the area factors that were grouped in any other application

(b) in the case of a well drilled on exploration licences the rights pursuant to which are for petroleum, natural gas or petroleum and natural gas, the area factor, in surveyed sections rounded to the nearest one-quarter of a surveyed section, is the amount AF calculated in accordance with the following formula:

AF = TD x F

where:

TD is the total measured depth, as determined by the minister, expressed in metres, for the well; and

F is:

(i) 0.004 surveyed sections, if the well is drilled to 1 800 metres or less; or

(ii) 0.006 surveyed sections, if the well is drilled to more


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

pursuant to this section. than 1 800 metres.

(5) For the purpose of determining the area that may be covered by a lease pursuant to this section, a holder of an exploration licence may request that the minister group the area factor for wells drilled or mining operations made within the area covered by the exploration licence with the area factor of any or all wells drilled or mining operations made in the area covered by one other exploration licence.

(6) The minister may approve a request made pursuant to subsection (5) to group the area factors mentioned in that subsection if:

(a) the other exploration licence is held by the same holder; and

(b) the area covered by the other exploration licence is not more than 3.2 kilometres, more or less, distant from the area that is the subject of the application.

(7) If the holder of an exploration licence


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

groups the area factor of wells drilled or mining operations made in another area pursuant to subsection (5), the holder shall not include the grouped area factors in any another application pursuant to this section.

164

PNG regulations

Effective date of leases

36.9 Where leases are issued pursuant to Part V respecting lands covered by an exploration licence, the effective date of those leases is the date on which the lease is issued.

Effective date of lease selected from exploration licence

8-12 The effective date of a lease that is issued pursuant to this Part respecting lands covered by an exploration licence is the date on which the lease is registered.


165

PNG regulations

Part V Leases of Crown Lands

Helium regulations & Oil Shale regulations

Part III Leases of Crown Lands

PART 9

Leases


Combined into one Part.

166 New DIVISION 1

Basic Rights

Added Division

167 New Bid for lease for petroleum and natural Clarify that these disposition types require


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

gas, oil sands or oil shale rights

9-1 Subject to sections 6-11, 8-11 and 10-2, every person that intends to obtain a lease for petroleum and natural gas, oil sands or oil shale rights shall submit a bid pursuant to section 10-1.

land sale bids.

168

HELIUM regulations

Granting of lease

22 The minister may grant to applicants leases of rights to helium or associated gases in accordance with these regulations.

Application for lease for helium and associated gases or use of spaces

9-2 Any person that intends to obtain a lease for the following shall apply to the minister:

(a) helium and associated gases rights;

(b) the use of spaces.

Changes from The Helium and Associated Gases Regulations, 1964 and The Lease of Spaces regulations:

Added application requirement for spaces.

169

PNG regulations

PART V

Leases of Crown Lands

Granting of lease

40 The minister may, upon application, grant leases of petroleum, natural gas, petroleum and natural gas, oil sands or oil

Issuance of lease

9-3(1) The minister may issue a lease to person who:

(a) the minister is satisfied has complied with the requirements of this Part;

(b) for petroleum, natural gas, petroleum and natural gas, oil sands

Changes from The Petroleum and Natural Gas Regulations, 1969, The Helium and Associated Gases Regulations, 1964, The Oil Shale Regulations, 1964, and The Lease of Spaces Regulations:

Consistent with issuance of permit and exploration licence.

Helium and associated gases and spaces leases do not require bids. They are


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

shale rights in accordance with these regulations.

HELIUM regulations

Granting of lease

22 The minister may grant to applicants leases of rights to helium or associated gases in accordance with these regulations.


Granting of lease

20 The minister may grant to an applicant a lease of the rights to oil shales in accordance with these regulations.

PNG regulations

Size of lease

41(1) The area that may be included in any one lease for petroleum, natural gas, or petroleum and natural gas rights is to be:

or oil shale rights, submits a bid amount acceptable to the minister pursuant to subsection 10-1(7) or clause 10-2(1)(a), (d) or (f);


(d) agrees to accept the lease and to be bound by its terms and conditions and by the Act and any regulations made pursuant to the Act.

(2) The area that may be the subject of a lease for petroleum, natural gas, or petroleum and natural gas rights, unless otherwise approved, must be:

(a) a minimum of one legal subdivision or 16.18 hectares, more or less, as described in the SaskGrid legal subdivision feature layer; and

(b) a maximum of 12.25 surveyed sections or 3 173 hectares, more or less, but only if all lands in the lease are adjoining.

application-based.

Added “more or less” to 9-3(2) and (3) to provide for flexibility when determining configuration of leases.

Added “unless otherwise approved by the minister” to accommodate portions – e.g, water portions that are piecemeal in a section

No longer issuing ‘old oil shale’ leases under The Oil Shale Regulations, 1964 so no need to mention them in this section.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

(a) a minimum of one legal subdivision, unless otherwise approved by the minister; and

(b) a maximum of 49 quarter sections or 3 173 hectares, but only if all lands in the lease are adjoining.

(2) The area that may be included in any one lease for oil sands or oil shale rights is to be:

(a) a minimum of one legal subdivision, unless otherwise approved by the minister; and

(b) a maximum of 36 sections or 9 324 hectares in the configuration as described in section 23.71, but only if all lands in the lease are adjoining.

HELIUM regulations

Size of lease

23 The area that may be included in any one lease shall be a minimum of one legal subdivision, unless otherwise approved by the minister, and a maximum of forty-nine

(3) The area that may be the subject of a lease for oil sands or oil shale rights, unless otherwise approved, must be:


(b) a maximum of 36 surveyed sections or 9 324 hectares, more or less, in the configuration described in subsection 6-11(5) or (6), as the case may be, but only if all lands in the lease are adjoining.

(4) The area that may be the subject of a lease for helium and associated gases rights, unless otherwise approved, must be:


(b) a maximum of 12.25 surveyed sections or 3 173 hectares, more or less, but only if all lands in the lease


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

quarter sections or seven thousand eight hundred and forty acres, provided that all lands in the lease are adjoining.

are adjoining.

(5) The minister shall determine the area that may be the subject of a lease for spaces.

170

SPACES regulations

Application

22 An application for a lease shall be accompanied by: (a) a plan showing the area applied for and the lands in the area within which the rights to oil shales are the property of the Crown in the right of Saskatchewan; (b) a legal description of such lands if they are in a surveyed territory; (c) subject to section 18, the rent at the rate of $0.25 per hectare for each month or portion thereof, if any, between the effective date of the lease and the first day of April next following;

SPACES regulations

Maximum lease area

27(1) Notwithstanding anything contained in these regulations but subject to subsections (2) to (6), the maximum

Deleted Changes from The Oil Shale Regulations, 1964:

Not accepting applications for leases under The Oil Shale Regulations, so do not need these clauses in new regulations.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

area that the permittee may lease from the permit lands in any one permit is 2 023 hectares. (2) If the necessary arrangements for custom processing of oil shales have been made to the satisfaction of the minister by the permittee with another person for producing oil shale products in a processing plant or production and upgrading facility located in Saskatchewan, the maximum area that the permittee may lease from the permit lands in any one permit is 10 117 hectares. (3) The maximum area that the permittee may lease is the area mentioned in subsection (4), if: (a) the permittee has expended at least $30 million towards the construction of a processing plant or production and upgrading facility in Saskatchewan for commercial production of oil shale products that is satisfactory to the minister; or (b) the permittee: (i) has satisfied the minister that a plant or facility described in clause (a) will be built by the permittee; and (ii) undertakes in writing to expend, within three years after the effective date of the lease that was applied for, not less than $30 million towards the construction of the plant or facility described in clause (a), unless the permittee has already expended that sum


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

of money for that purpose.

171

PNG regulations

What lease conveys

50 Subject to these regulations, each lease, unless otherwise specifically provided for in the lease, grants to the lessee the exclusive right, licence, privilege and authority to:

(a) search, dig, bore and drill for oil and gas, oil sands or oil shale, as the case may be, within the lands described in the lease; and

(b) win, get, recover, extract, procure, carry away, dispose of and sell the oil and gas, oil sands or oil sands products or oil shale or oil shale products, as the case may be, found within those lands.

HELIUM regulations

What lease conveys

29 Subject to these regulations, each lease shall grant to the lessee the exclusive right, licence, privilege and authority to

Rights granted to holder and condition of lease

9-4(1) Subject to the other provisions of these regulations, each lease, unless otherwise specifically provided for in the lease, grants to the holder of the lease the exclusive right:

(a) to search, dig, bore and drill for oil and natural gas, oil sands, oil shale or helium and associated gases, as the case may be, within the lease lands; and

(b) to win, get, recover, extract, procure, carry away, dispose of and sell the oil and natural gas, oil sands or oil sands products, oil shale or oil shale products, or helium and associated gases, as the case may be, found within the lease lands; or

(c) to use the spaces within the lease lands.

(2) During the term of the lease, no holder of a lease shall fail to comply with


Combined rights into a single section.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

search, dig, bore and drill for helium and associated gases within the lands described in the lease and to win, get, recover, procure, carry away, dispose of and sell the helium and associated gases found within such land.


What lease conveys

25 Subject to these regulations, the lease shall grant to the lessee the exclusive right, licence, privilege and authority to search, dig, bore and drill for and work the oil shales within the lands described in the lease and to win, get, recover, procure, work, carry away, dispose of and sell the oil shale or oil shale products extracted from the oil shales found within such lands.

the terms and conditions:

(a) set out in this Part; and

(b) of the lease.

172

PNG regulations

Term of lease

43(1) In this section and in section 43.1, “deeper rights” means deeper rights as determined by the minister.

Term of lease

9-5(1) In this section and in section 9-12, “deeper rights” means deeper rights on leases with rights with respect to petroleum, natural gas or petroleum and natural gas as determined by the minister


Clarified that deeper rights only applies to


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

(2) This section and section 43.1 apply on and after April 1, 1998.

(3) The minister may, by order, determine deeper rights for the purposes of section 37, this section and section 43.1 and, if the minister issues an order determining deeper rights, shall cause that order to be published in the Gazette within 30 days after the date the order is issued.

(4) A lease is effective on the date stated in the lease and continues:

(a) for five years if the rights are for petroleum, natural gas, or petroleum and natural gas, beginning on the first day of April following the effective date of the lease or, if the effective date of the lease is April 1, for five years from that date; or

(b) for 15 years if the rights are for oil sands or oil shale, beginning on the first day of April following the effective date of the lease or, if the effective date of the lease is April 1, for 15 years from that date.

(5) Subject to subsections (6), (7), (8) and

pursuant to section 16.1 of the Act.

(2) The minister may, by order pursuant to section 16.1 of the Act, determine deeper rights for the purposes of this section and sections 9-12 and 10-1 and, if the minister issues an order determining deeper rights, shall cause that order to be published on the ministry’s website.

(3) A lease is effective on the effective date entered in the registry and continues:

(a) if the rights are for petroleum, natural gas or petroleum and natural gas, for five years, beginning on the first day of April following the effective date of the lease, or, if the effective date of the lease is April 1, for five years from that date;

(b) if the rights are for oil sands or new oil shale, for 15 years, beginning on the first day of April following the effective date of the lease or, if the effective date of the lease is April 1, for 15 years from that date;

petroleum and natural gas rights.

Replaced requirement to publish in the Saskatchewan Gazette with requirement to place on ministry website.

Deleted 43(2) as no transitional dispositions remaining from 1998.

Changed continuance for oil sands and oil shale leases from surveyed section to entire lease to accommodate mining operations.

Replaced 43(5)(g)(ii) and (iii) with a generic provision that would capture these situations as well as any others that may arise, and clarified that length of extension will equal that of the delay, consistent with permits and exploration licences.

Deleted 43(6) as surveyed section defined in Part I.

Provide minister with discretion to add extra time to the extension to accommodate situations where, for example, the delay occurs during winter drilling season but the term ends March


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

(10) and to the termination of any deeper rights pursuant to section 16.1 of The Crown Minerals Act, a lease continues past the period mentioned in subsection (4) if the holder of the lease is in compliance with these regulations and the terms of the lease and if:

(a) a well is being made at the time of the expiration of the period mentioned in subsection (4);

(b) there are one or more producing wells on the lease lands, but, in that case, the lease continues only for that portion of the lease lands in each surveyed section that contains the producing well or wells and only for a period ending:

(i) 90 days after production from that portion of the lease lands ceases; or

(ii) on any later date approved by the minister;

(c) any part of the lease lands is under unit operation approved by the minister or by an order of the Lieutenant Governor in Council, but, in that case, the lease

(c) if the rights are for old oil shale or helium and associated gases, for 21 years, beginning on the first day of April following the effective date of the lease or, if the effective date of the lease is April 1, for 21 years from that date; or

(d) if the rights are for the use of spaces, for 20 years, beginning on the first day of April following the effective date of the lease or, if the effective date of the lease is April 1, for 20 years from that date.

(4) Subject to subsections (5), (6), (7), (9) and (11) and to the termination of any deeper rights pursuant to section 16.1 of the Act, a lease continues after the period mentioned in subsection (3) if:

(a) the holder of the lease is in compliance with these regulations and the terms and conditions of the lease; and

(b) any of the following circumstances apply:

31, which is during spring break-up with restricted access.

Added clause providing for continuance for old oil shale leases.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

continues only for that part or whole of the lease lands and only for a period ending six months after that part is no longer subject to that unit operation;

(d) any part of the lease lands is included within a designated gas area pursuant to section 56, but, in that case, the lease continues only for that part of the lease lands that is within the designated gas area;

(e) the lease is continued pursuant to sections 56.3 to 56.9;

(f) compensatory royalty payments are being made pursuant to subsection 52.1(1) respecting a location designated by the minister pursuant to subsection 52(2) on the lease lands, but, in that case, the lease continues only for that portion of the lease lands in the surveyed section containing the location; or

(g) access to the lease lands has been denied:

(i) by an action of a government agency or by a member of the Executive Council for

(i) a well is being drilled or mining operations are taking place at the time that the period mentioned in subsection (3) expires;

(ii) there are one or more producing wells or producing mining operations on the lease lands, but, in that case, the lease continues only for that portion of the lease lands in each surveyed section that contains the producing well or wells or mining operations and only for a period ending:

(A) three months after production from that portion of the lease lands ceases; or

(B) on any later date approved by the minister;

(iii) any part of the lease lands is under unit operation approved by the minister or


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

environmental, regulatory, jurisdictional or consultation reasons;

(ii) if the lease lands are in a potash restricted drilling area, by the minister or by a potash disposition holder pursuant to section 20 of The Oil and Gas Conservation Regulations, 1985; or

(iii) by an action of the beneficial owner of the surface rights of the area overlying the lease lands where those surface rights are not subject to The Surface Rights Acquisition and Compensation Act.

(6) In clause (5)(b), “surveyed section” means a complete section:

(a) as determined pursuant to The Land Surveys Act; or

(b) if there is no survey pursuant to that Act for the area to be covered by a lease, as determined by the minister.

(7) Unless otherwise specified in this section, a lease is continued pursuant to subsection (5) for one year beyond the expiry of the period mentioned in sub-

by an order of the Lieutenant Governor in Council, but, in that case, the lease continues only for that part or all of the lease lands and only for a period ending six months after that part is no longer subject to that unit operation;

(iv) any part of the lease lands is included within a natural gas area designated pursuant to section 9-18, but, in that case, the lease continues only for that part of the lease lands that is within the designated natural gas area;

(v) the lease is continued pursuant to sections 9-20 to 9-25;

(vi) compensatory royalty payments are being made pursuant to section 9-16 respecting a location designated by the minister pursuant to section 9-15 on the lease lands, but, in that


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

section (4).

(8) Subject to the termination of any deeper rights pursuant to section 16.1 of The Crown Minerals Act, a lease continues past the period mentioned in subsection (4) if the holder of the lease is in compliance with these regulations and the terms of the lease and if a well licence has been issued but drilling operations have not begun due to events beyond the control of the holder.

(9) A lease is continued pursuant to subsection (8) for three months, or any longer period that the minister may determine, beyond the expiry of the period mentioned in subsection (4).

(10) Where a lease is continued pursuant to this section, the holder of the lease shall pay the full amount of the annual rent payable pursuant to section 44 even though the lease may be continued for less than a full year.

(11) A lease is continued pursuant to this section only to the base of the deepest productive zone for that lease as

case, the lease continues only for that portion of the lease lands in the surveyed section containing the location;

(vii) access to the lease lands has been denied:

(A) by an action taken by a government agency or a member of the Executive Council for environmental, regulatory, jurisdictional or consultation reasons; or

(B) for any reason that is satisfactory to the minister; and

(C) the denial has resulted in a delay in exercising rights of more than two consecutive months.

(5) Unless otherwise specified in this section, a lease is continued pursuant to


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

determined by the minister.

HELIUM regulations

Term of lease

25(1) The lease shall be for a term commencing on the effective date thereof and extending to the first day of April next following and thenceforth for a period of twenty-one years unless the effective date of the lease is the first day of April in which case the term of the lease shall be twenty-one years from the effective date of the lease. (2) Upon the expiration of the twenty-one year period mentioned in subsection (1), the lease shall, subject to compliance with these regulations and the terms of the lease, continue notwithstanding subsection (1): (a) if drilling operations are being conducted and continuously and diligently being carried on to the satisfaction of the minister and without cessation of operations for more than thirty days; or

if there is a producing well or wells in the lease lands, for that portion of the leased lands in each surveyed section containing

subsection (4) for one year after the period mentioned in subsection (3) expires.

(6) Subject to the termination of any deeper rights pursuant to section 16.1 of the Act, a lease continues after the period mentioned in subsection (3) if:

(a) the holder of the lease is in compliance with these regulations and the terms and conditions of the lease; and

(b) a well licence has been issued but drilling operations have not begun.

(7) A lease is continued pursuant to subsection (6) for three months, or any longer period that the minister may determine, after the expiry of the period mentioned in subsection (3).

(8) Unless otherwise specified in this section, if a lease is continued pursuant to this section, the holder of the lease shall pay the full amount of the annual rent payable even if the lease continues for less


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

such producing well or wells until ninety days after production from such portion of the lease lands ceases; or (c) if any part or whole of the leased lands is under unit operation approved by the minister for that part or whole of the leased lands until six months after it is no longer subject to such unit operation.

HELIUM regulations

Advertise

52 Where permits or leases for helium and associated gases are available for certain specified areas, the minister may cause permits or leases to be advertised in The Saskatchewan Gazette and in such newspapers and periodicals as he may designate.


Term of lease

23(1) The lease shall be for a term commencing on the effective date thereof and extending to the first day of April next following and thenceforth for a period of

than a full year.

(9) A lease with rights with respect to petroleum, natural gas, or petroleum and natural gas is continued pursuant to this section only to the base of the deepest productive zone for that lease as determined by the minister.

(10) In accordance with subclause (4)(b)(vii), the minister may extend the term of the lease:

(a) for a period equivalent to the length of the delay; or

(b) for any longer period that the minister may determine.

(11) On the expiration of the 21-year period mentioned in clause (3)(c) for a lease with rights with respect to old oil shale and the 20-year period mentioned in clause (3)(d) for a lease of spaces, the lease is renewable for successive terms of 21 or 20 years, as the case may be, each on the application of the holder of the lease, if the holder has complied fully


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

twenty-one years unless the effective date of the lease is the first day of April in which case the term of the lease shall be twenty-one years from the effective date of the lease. (2) Upon the expiration of the twenty-one year period mentioned in subsection (1), the lease shall be renewable for successive terms of twenty-one years each upon the application of the lessee, provided that the lessee has complied fully with the conditions of the lease or renewal thereof and with the provisions of these regulations as amended or substituted from time to time.

with:

(a) the terms and conditions of the lease or renewal of the lease; and

(b) the Act and these regulations.

173

PNG regulations

Net royalty leases

39(1) Subject to subsections (2) and (3) but notwithstanding any other provision, net royalty leases shall be in the form and contain the terms and conditions approved by the Lieutenant Governor in Council.

(2) Notwithstanding section 55, a lessee of a net royalty lease may surrender an interest in the whole or any part of the lands covered by the net royalty lease if:

Net royalty leases

9-6(1) Notwithstanding section 9-14, a holder of a net royalty lease may surrender an interest in all or any part of the lands covered by the net royalty lease if:

(a) the surrender meets the requirements of section 9-17;

(b) the holder of the net royalty lease applies pursuant to subsection (2) for a standard lease of the lands to be surrendered pursuant to this


Deleted 39(1) as not necessary since not issuing new net royalty leases.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

(a) the surrender meets the requirements of section 53;

(b) the lessee applies pursuant to subsection (3) for a standard lease of the lands to be surrendered pursuant to this subsection; and

(c) the minister approves the lessee’s application for a standard lease.

(3) Where a lessee who has surrendered an interest pursuant to subsection (2):

(a) applies pursuant to this section for a standard lease of the surrendered lands;

(b) pays a cash bonus in an amount acceptable to the minister; and

(c) makes a commitment, in a form acceptable to the minister, with respect to the conditions that the minister may require;

the minister may grant a standard lease of the surrendered lands to the lessee in accordance with Part V.

subsection; and

(c) the minister approves the application of the holder of the net royalty lease for a standard lease.

(2) The minister may issue a standard lease of the surrendered lands to the holder of the net royalty lease in accordance with this Part if a holder of the net royalty lease who has surrendered an interest pursuant to subsection (1):

(a) applies pursuant to this section for a standard lease of the surrendered lands;

(b) submits a bid in an amount acceptable to the minister; and

(c) makes a commitment, in a form acceptable to the minister, with respect to the terms and conditions that the minister may require.

(3) If a holder of a net royalty lease fails to comply with a commitment made pursuant to clause (2)(c) within any period determined by the minister, the minister


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

(4) If a lessee fails to comply with a commitment made pursuant to clause (3)(c) within any period determined by the minister, the minister may cancel the lease in accordance with section 9 of The Crown Minerals Act.

may cancel the lease in accordance with section 9 of the Act.

(4) Notwithstanding any other provision of these regulations, the minister shall not issue any new net royalty leases pursuant to these regulations.

174

PNG regulations

Production after January 1, 1994

39.02 Notwithstanding anything to the contrary in a net royalty lease:

(a) the cash proceeds of production from any of the following are not to be included for the purposes of determining the net royalty payable as specified in the net royalty lease:

(i) all oil and gas production from or allocated to a well with a finished drilling date on or after January 1, 1994;

(ii) incremental oil and gas production:

(A) with respect to an enhanced recovery project approved pursuant to The Oil and Gas Conservation Act that has an

Production after January 1, 1994

9-7 Notwithstanding anything to the contrary in a net royalty lease:

(a) the cash proceeds of production from any of the following are not to be included for the purpose of determining the net royalty payable as specified in the net royalty lease:

(i) all oil and natural gas production from or allocated to a well with a finished drilling date on or after January 1, 1994;

(ii) incremental oil and natural gas production:

(A) with respect to an enhanced recovery

No changes


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

operation commencement date on or after January 1, 1994; and

(B) that is determined by the same method that is used in determining incremental waterflood oil pursuant to The Crown Oil and Gas Royalty Regulations; and

(b) payments, costs, charges, expenses or allowances, as determined by the minister, that relate to the oil and gas production mentioned in clause (a) are not to be deducted when determining the net proceeds of production for the net royalty lease.

project approved pursuant to The Oil and Gas Conservation Act that has an operation commencement date on or after January 1, 1994; and

(B) that is determined by the same method as is used in determining incremental waterflood oil pursuant to The Crown Oil and Gas Royalty Regulations, 2012; and

(b) payments, costs, charges, expenses or allowances, as determined by the minister, that relate to the oil and natural gas production mentioned in clause (a) are not to be deducted when determining the net proceeds of production for the net royalty lease.

175

PNG regulations

Farmout agreements

Farmout agreements

9-8(1) Subsections 9-6(1) to (3) and section 9-7 apply, with any necessary


Clarified that not issuing any new farmout


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

39.01 Subsections 39(2) to (4) apply, with any necessary modification, to the termination or surrender of a farmout agreement with respect to Crown lands and the granting of a standard lease in substitution for the farmout agreement.

modification, to:

(a) the termination or surrender of a farmout agreement with respect to Crown mineral lands;

(b) the issuing of a standard lease in substitution for the farmout agreement mentioned in clause (a); and

(c) net royalty payable determinations for farmout agreements.

(2) Notwithstanding any other provision of these regulations, the minister shall not issue any new farmout agreements pursuant to these regulations.

agreements

176

PNG regulations

Application to farmout agreements

39.03 Section 39.02 applies, with any necessary modification, to a farmout agreement.


Not accepting applications for new farmout agreements.

177 PNG regulations Annual lease rent

9-9(1) Subject to subsections (2) to (4)

Changes from The Petroleum and Natural Gas Regulations, 1969, The Helium and Associated Gases Regulations, 1964, The


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

Annual rent

44(1) The rent subsequent to the rent referred to in clause (c) of section 42 shall be at the rate of $3.50 per hectare per year, except as may otherwise be provided herein and subject to section 23, is payable yearly in advance on or before the first day of April.

(2) Notwithstanding subsection (1), when a lessee elects to apply credits in lieu of cash rent covering the first twenty-four months of the lease as provided for in section 23, the rent for that portion of the year from the termination of the credit period to the next succeeding rent anniversary date of April 1 shall be due and payable on the termination date of such credit period.

HELIUM regulations

Annual rent

26(1) The rent subsequent to the rent referred to in clause (c) of section 24 shall be at the rate of fifty cents an acre per annum, except as may otherwise be

and section 6-14, during the term of a lease, the holder of a lease shall pay to the minister an annual rent of the greater of:

(a) $3.50 per hectare of lease lands per year; and

(b) $50 per year.

(2) If the holder of a lease elects to apply credits granted pursuant to section 6-14 instead of paying rent for the first 24 calendar months of the lease, the rent for that portion of the rental year after the termination of the credit period to the commencement of the next rental year is due and payable on the termination date of the credit period.

(3) If the minister is satisfied that, for a rental year, an adequate market for helium or associated gases in which the holder of a lease with rights with respect to helium and associated gases may participate is not available, the minister may reduce the rent with respect to that rental year for that lease.

(4) If a holder of a lease fails to pay rent

Oil Shale Regulations, 1964, and The Lease of Spaces Regulations:

Modernized rental for helium and associated gases leases to align with oil and gas and spaces lease rentals.

Established a minimum rental of $50.00 per year, or portion of year, to ensure cost recovery for administration of leases that are portions.

Retained minister’s ability to reduce rentals if market conditions are not favourable for helium and associated gases.

Invoicing will occur after the anniversary date in the new IRIS system, so removed that requirement to ‘pay in advance’ throughout these draft regulations.

Leave the rental reduction amount to the discretion of the minister in (4) rather than prescribing a rate.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

provided herein and subject to section 20, is payable yearly in advance on or before the first day of April. (2) Notwithstanding subsection (1), when a lessee elects to apply credits in lieu of cash rent covering the first twenty-four months of the lease as provided for in section 20, the rent for that portion of the year from the termination of the credit period to the next succeeding rent anniversary date of April 1 shall be due and payable on the termination date of such credit period. (3) Notwithstanding subsection (1), while an adequate market for helium or associated gases in which the lessee may participate is not available, the minister may, upon being satisfied of such facts, reduce the rent in respect of such lease to a rent of twenty-five cents an acre per annum payable yearly in advance.


Annual rent

24(1) The rent subsequent to the rent referred to in clause (c) of section 22 shall be at the rate of $3.50 per hectare per annum, and subject to section 18, is payable yearly in advance on or before the first day of April of each year. (2)

in accordance with this section, the minister shall cancel the lease in accordance with section 9 of the Act, and all interests in any lands affected by the lease reverts to the Crown.

(5) If the minister cancels the lease, no refund of rent is to be made to the holder of the lease.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

Notwithstanding subsection (1), if a lessee elects to apply rental credits in lieu of cash rent covering the first twenty-four months of the lease or portion thereof as provided for in section 18, the rent for that portion of the year from the termination of the credit period to the next succeeding rent anniversary date of April 1 shall be due and payable on the termination date of such credit period on a pro rata basis.

SPACES regulations

Rental rate

3 The rental rate for the lease of a space is $3.50 per hectare of the assigned surface area for each year, payable in advance.

178

HELIUM regulations

Refund of rent

27(1) If the lessee during or within six months after the first year of the term of the lease commencing on the first day of April submits evidence to the director that during such year actual drilling operations for helium or associated gases have been conducted on the lease, a refund of rent or

Helium and associated gases lease refund of rent

9-10(1) Subject to subsections (6) and (7), if, during or within six months after the first year of the term of a lease with rights with respect to helium and associated gases commencing on April 1, the holder of the lease submits evidence satisfactory to the minister that during that rental year actual drilling operations for


Replaced director with minister.

Changed depths from feet to equivalent metres.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

a portion thereof paid in advance for such year may be made to the lessee. (2) If drilling operations for helium or associated gases are conducted during the second year of the term of the lease and evidence is submitted to the director as required by subsection (1), refunds of rent may be allowed during or within six months following the second year in the same manner as for the first year provided that such refund shall not exceed the rent for the second year. (3) If drilling operations for helium or associated gases are conducted during the third year of the term of the lease and evidence is submitted to the director as required by subsection (1), refunds of rent may be allowed during or within six months following the third year in the same manner as for the first year provided that such refund shall not exceed the rent for the third year.

(4) If drilling operations for helium or associated gases are conducted during the forth and succeeding years of the term of the lease and the wells drilled prove to be nonproducers, and evidence is submitted to the director as required under subsection (1), rent may be refunded

helium or associated gases have been carried out on the lease lands, a refund of all or any portion of the rent paid in advance for that rental year may be made to the holder.

(2) Subject to subsections (6) and (7), if, during or within six months after the second year of the term of a lease described in subsection (1), the holder of the lease submits evidence satisfactory to the minister that actual drilling operations for helium or associated gases have been carried out on the lease lands during that rental year, a refund of all or any portion of the rent paid in advance for that rental year may be made to the holder.

(3) Subject to subsections (6) and (7), if, during or within six months after the third rental year of the term of a lease described in subsection (1), the holder of the lease submits evidence satisfactory to the minister that actual drilling operations for helium or associated gases have been carried out on the lease lands during that rental year, a refund of all or any portion of the rent paid in advance for that rental year may be made to the holder.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

within six months following such year as follows: (a) for a well in the leased lands that is drilled beyond four thousand feet, refunds are applicable up to the forth year of the term of the lease; (b) for a well in the leased lands that is drilled beyond five thousand feet, refunds are applicable up to the fifth year of the term of the lease; (c) for a well in the leased lands that is drilled beyond six thousand feet, refunds are applicable up to the sixth year of the term of the lease; (d) for a well in the leased lands that is drilled beyond seven thousand feet, refunds are applicable up to the seven year of the term of the lease; (e) for a well in the lease lands that is drilled beyond eight thousand feet, refunds are applicable up to the eighth year of the term of the lease; (f) for a well in the leased lands that is drilled beyond nine thousand feet, refunds are applicable up to the ninth year of the term of the lease; (g) for a well in the leased lands that is drilled beyond ten thousand feet, refunds are applicable up to the tenth year: provided that no refund shall exceed the amount of rent for the lease year in which the drilling was done. (5) Where in the opinion of the minister certain geophysical work performed on the leased lands in an

(4) Subject to subsections (5) to (7), if, during or within six months after the fourth and subsequent years of the term of a lease described in subsection (1), the holder of the lease submits evidence satisfactory to the minister that actual drilling operations for helium or associated gases have been carried out on the lease lands during that rental year and that the wells drilled do not produce commercial quantities of helium or associated gases, a refund of all or any portion of rent paid in advance for that rental year may be made to the holder.

(5) For the purposes of subsection (4), the eligibility for a refund is to be determined as follows:

(a) for a well in the lease lands that is drilled beyond 1 220 metres, a refund may be made only for the fourth rental year of the term of the lease;

(b) for a well in the lease lands that is drilled beyond 1 524 metres, a refund may be made only for the fourth and fifth rental years of the


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

acceptable and necessary form of preliminary development prior to drilling, the minister may, if he deems it advisable and in the public interest, approve a rent refund in such amount as he may determine. (6) The amount of refund shall be the amount of approved expenditures or the amount of rent for the year, whichever is the lesser. (7) The evidence to be submitted to the director for establishing rent refunds shall include an itemized statement of amounts expended in drilling verified by the statutory declaration of a person having personal knowledge of the facts. (8) The cost of machinery, production casing and such other items that, in the opinion of the minister, do not constitute actual drilling expenditures shall not be approved. (9) If a well is drilled in any year of the lease or group of leases on which rent has been satisfied by previous credits or otherwise, the minister may approve for credit purposes the expenditures made in drilling the well and the expenditures so made may be credited against any one subsequent year’s rent on such lease or group of leases as shall qualify for rent refund at the beginning of such year on the basis of subsection (4).

term of the lease;

(c) for a well in the lease lands that is drilled beyond 1 829 metres, a refund may be made only for the fourth to sixth rental years of the term of the lease;

(d) for a well in the lease lands that is drilled beyond 2 134 metres, a refund may be made only for the fourth to seventh rental years of the term of the lease;

(e) for a well in the lease lands that is drilled beyond 2 439 metres, a refund may be made only for the fourth to eighth rental years of the term of the lease;

(f) for a well in the lease lands that is drilled beyond 2 743 metres, a refund may be made only for the fourth to ninth rental years of the term of the lease;

(g) for a well in the lease lands that is drilled beyond 3 048 metres, a refund may be made only for the


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

fourth to tenth rental years of the term of the lease.

(6) The amount of a refund pursuant to this section is not to exceed the lesser of:

(a) the rent paid for the rental year for which the refund is applied for; and

(b) the amount of expenditures approved pursuant to subsection (8).

(7) Subject to subsection (6), if, in the opinion of the minister, certain geophysical work performed by the holder of a lease on the lease lands is in an acceptable and necessary form of preliminary development before drilling a well, the minister may, if the minister considers it advisable and in the public interest to do so, approve a refund of rent paid in advance in an amount that the minister may determine.

(8) For the purposes of this section:

(a) the holder of a lease shall submit as evidence to the minister


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

an itemized statement of amounts expended in drilling verified by the statutory declaration of a person having personal knowledge of the facts; and

(b) subject to subsection (9) and based on the evidence submitted to the minister, the minister may approve an amount of expenditures.

(9) In determining the amount of expenditures to approve pursuant to subsection (8), the minister shall not consider:

(a) the cost of machinery;

(b) the cost of production casing; or

(c) any other item that, in the opinion of the minister, does not constitute an actual drilling expenditure.

(10) If a well is drilled in any rental year of the lease or grouping of leases for which the rent has been satisfied by previous credits granted pursuant to


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

section 6-14 or otherwise, the minister may, instead of making a refund, approve for a credit an amount not to exceed the expenditures incurred in drilling the well.

(11) A credit approved pursuant to subsection (10) may be used in a subsequent rental year on the lease or grouping of leases for which the credit is granted

179

HELIUM regulations

Grouping and regrouping

28(1) The minister may authorize the grouping or regrouping of Crown lands, or portions thereof, covered by two or more leases of helium or associated gases. Where lands are grouped or regrouped pursuant to this section the operations conducted upon any lands so grouped or regrouped shall, for the purpose of section 27 be deemed to be operations conducted upon the lands in the group. (2) No land shall be included in the group if it is separated by more than six miles from any other land to be included in the group. (3) The maximum area to be included in a group shall be as follows: (a) for an area

Grouping and regrouping of helium and associated gases leases

9-11(1) For the purpose of section 9-10, a holder of a helium and associated gases permit may request that the minister group or regroup all or any portion of Crown mineral lands covered by two or more leases with respect to helium and associated gases.

(2) The minister may approve a request made pursuant to subsection (1) to group or regroup all or any portion of Crown mineral lands covered by the leases mentioned in that subsection.

(3) If lands are grouped or regrouped pursuant to this section, the operations


Changed miles to kilometers.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

containing a well that does not penetrate into any part of a formation older than the Devonian formation, on hundred and forty-four quarter sections or twenty-three thousand and forty acres; (b) for an area containing a well that penetrates into any part of a formation older than the Devonian formation, two hundred and eighty-eight quarter sections or forty-six thousand and eighty acres. (4) Regrouping shall cancel all previously established groups in respect of any lands included in the new group. (5) Every assignment, surrender or cancellation of part of the area included in a group shall decrease the size of the group accordingly without the necessity of regrouping unless the areas remaining in the group are required to be regrouped in order to comply with subsection (2). (6) Every approval of an application for grouping shall be at the discretion of the minister who may consider, among other things the size and shape of the proposed groups and the location of any well to be drilled for rent refund purposes within the group. (7) An application for grouping shall be in writing and accompanied by: (a) a plot map showing the lands to be included in the group and the leases so involved; (b) a

carried out on the lands grouped or regrouped are deemed to be operations carried out on the lands in the grouping.

(4) No land is to be included in the grouping if it is separated by more than 10 kilometres, more or less, from any other land to be included in the grouping.

(5) The maximum area to be included in a grouping is as follows:

(a) for an area containing a well that does not penetrate into any part of a formation older than the Devonian System, 36 surveyed sections or 9 324 hectares, more or less;

(b) for an area containing a well that penetrates into any part of a formation older than the Devonian System, 72 surveyed sections or 18 648 hectares, more or less.

(6) If lease lands are regrouped into a new grouping pursuant to this section, the regrouping cancels all previously established groupings with respect to any


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

detailed list of the lands or leases and the acreage for each parcel or lease; and (c) fees required by Schedule “B”.

lease lands included in the new grouping.

(7) Every assignment, surrender or cancellation of part of the area included in a grouping decreases the size of the group accordingly without the necessity of regrouping unless the areas remaining in the grouping must be regrouped in order to comply with subsection (4).

(8) When considering whether or not to approve a grouping or regrouping, the minister may consider:

(a) the size and shape of the proposed groupings;

(b) the location of any well to be drilled for rent refund purposes within the grouping; and

(c) any other matters the minister considers relevant.

180

PNG regulations

Continuation of deeper rights

43.1(1) In accordance with section 16.1 of The Crown Minerals Act, the holder of a

Continuation of deeper rights

9-12(1) In accordance with section 16.1 of the Act, the holder of a lease may apply to the minister for approval to have the


Added “consultation” to 43.1(2)(a) to accommodate situations that require consultation, and for consistency with


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

Crown lease may apply to the minister for approval to have the deeper rights continue as part of the lease.

(2) The application is to be in a form acceptable to the minister and is to contain information that demonstrates to the minister’s satisfaction that access to the lease lands has been denied by:

(a) an action of a government agency or a member of the Executive Council for environmental, regulatory or jurisdictional reasons; or

(b) an action of the beneficial owner of the surface rights of the area overlying the lease lands where those surface rights are not subject to The Surface Rights Acquisition and Compensation Act.

deeper rights continue as part of the lease.

(2) The application mentioned in subsection (1) must:

(a) be in a form acceptable to the minister; and

(b) contain information that demonstrates to the minister’s satisfaction that access to the lease lands has been denied:

(i) by an action taken by a government agency or a member of the Executive Council for environmental, regulatory, jurisdictional or consultation reasons; or

(ii) for any reason that is satisfactory to the minister

similar clauses elsewhere in the regulations.

Replaced 43.1(2)(b) with a generic provision to provide the minister with discretion, and clarified that the length of extension will equal that of the delay, consistent with permits and exploration licences.

181

Commence work

51(1) Within six months after receiving a written request from the minister to do so, the lessee shall commence drilling operations on the lands described in the lease or group of leases, and he shall

When work must commence

9-13(1) Subject to subsection (3), within six months after receiving a written request from the minister to do so, the holder of a lease with rights with respect to petroleum, natural gas or petroleum and


Clarify that this section only applies to leases beyond their primary term.

Not applicable to helium or associated


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

continue such drilling operations with reasonable diligence to the satisfaction of the minister with a view to the discovery of oil or gas.

(2) If the lessee does not commence drilling operations within the time prescribed or, having commenced such operations, does not continue operations with reasonable diligence to the satisfaction of the minister or, without the consent of the minister, ceases to carry on such operations for a period of more than six months, the lease or group of leases shall be subject to cancellation on sixty days’ notice in the discretion of the minister.

(3) Notwithstanding anything contained in subsection (1), the minister may extend the time therein specified for such period as he may deem expedient.

(4) Subsections (1), (2) and (3) shall not apply to five year leases, 15-year leases or to the first five years of ten year leases.

natural gas shall:

(a) commence drilling operations on the lands described in the lease or grouping of leases; and

(b) continue the drilling operations mentioned in clause (a) with reasonable diligence to the satisfaction of the minister with a view to the discovery of oil or natural gas.

(2) The minister may cancel a lease or grouping of leases with rights with respect to petroleum, natural gas or petroleum and natural gas after giving the holder of the lease two months’ written notice if the holder of the lease:

(a) does not commence drilling operations within the time specified pursuant to subsection (1);

(b) having commenced drilling operations, does not continue those operations with reasonable diligence to the satisfaction of the

gases, oil sands, oil shale, or spaces leases.

Rewrote (3) for clarity.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

minister; or

(c) without the consent of the minister, ceases to carry on those operations for a period of more than six months.

(3) The minister may extend the time specified pursuant to subsection (1) for any period the minister considers appropriate.

(4) This section does not apply to a lease in its primary term.

182

PNG regulations

Operations continuous if oil or gas or oil shale products or oil sands products being produced

55 If the lands described in a lease produce oil or gas in commercial quantities, or produce oil sands products or oil shale products from an active EOR project, the lessee shall produce and work the wells on those lands:

(a) in accordance with these regulations;

Operations continuous if reporting production

9-14 If the lands described in a lease produce oil or natural gas or helium and associated gases in commercial quantities, or produce oil sands products or oil shale products from an active EOR project, the holder of the lease shall produce and work the wells on those lands:

(a) in accordance with these regulations; and

(b) to the satisfaction of the


Included both oil and natural gas and helium and associated gases.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

and

(b) to the satisfaction of the minister.

HELIUM regulations

Operations continuous if helium found

33 If the lands described in a lease produce helium or associated gases in commercial quantities, the lessee shall produce and work the wells thereon in accordance with these regulations and to the satisfaction of the minister.

minister.

183

PNG regulations

Offset obligation

52(1) If the lands covered by a lease adjoin lands that are not Crown mineral lands and the adjoining lands contain a vertical well or any portion of the horizontal section of a horizontal well producing oil or gas from a zone or formation to which the lease applies, the lessee, within one year after receiving a written notification from the minister or any other person authorized by the minister, shall be required to comply with

Offset obligation

9-15(1) In this section and in section 9-16, “non-Crown mineral lands” means lands in which the Crown holds less than a 50% interest.

(2) If the lands covered by a lease adjoin lands that are non-Crown mineral lands and the adjoining lands contain a vertical well or any portion of the horizontal section of a horizontal well producing oil or natural gas or helium and associated gases from a zone or formation to which the lease applies, the holder of the lease,


Incorporated helium and associated gases offset requirement. Note that helium and associated gases do not have the option to pay compensatory royalty.

Clarified in (1)(a) that if the well is capable of commercial production, the well must produce in a manner satisfactory to the minister.

Modernized notification process – offset


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

an offset obligation to:

(a) commence drilling a well on the location designated by the minister to a depth sufficient to test that producing zone or formation;

(b) pay to the Crown a compensatory royalty in accordance with section 52.1; or

(c) surrender to the Crown the drainage unit on which the well is required pursuant to clause (a), including all the zones or formations covered by the lease except any zone or formation with respect to which oil or gas is being produced by the lessee to the satisfaction of the minister.

(2) For the purposes of subsection (1), a location designated by the minister must be:

(a) a lateral location on the lands covered by the lease in the case of spacing areas of one-quarter, one, four or 16 legal subdivisions;

(b) a diagonal location on the lands covered by the lease in the case of spacing

within one year after receiving notification of an offset obligation from the minister, comply with one of the following:

(a) commence drilling a well on the location designated by the minister to a depth sufficient to test that producing zone or formation and, if the well is capable of commercial production in the opinion of the minister, shall ensure that the well enters into production and continues to report production in a manner satisfactory to the minister;

(b) in the case of a lease with rights with respect to petroleum, natural gas or petroleum and natural gas, pay to the Crown a compensatory royalty in accordance with section 9-16;

(c) surrender to the Crown the drainage unit on which the well is required pursuant to clause (a), including all the zones or formations or stratigraphic units covered by the lease except any zone or formation with respect to

notifications are sent electronically in new IRIS system.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

areas of one-half, two or eight legal subdivisions; or

(c) a lateral location or a diagonal location on the lands covered by the lease in special circumstances.

(3) For the purposes of subsection (1), a written notification addressed to the lessee at the last known address on record in the ministry is deemed to have been received by the lessee within three days after the notification is mailed.

(4) Notwithstanding subsection (1), where an application for relief from an offset obligation is submitted in writing and supported by necessary maps, reports and other pertinent information, the minister, under special circumstances, may cancel that obligation;

(5) In this section and in section 52.1, “Crown mineral lands” means lands in which the Crown holds at least a 50% interest.

HELIUM regulations

which oil or natural gas or helium and associated gases are being produced by the holder of the lease to the satisfaction of the minister.

(3) For the purposes of subsection (2), a location designated by the minister may be:

(a) in the case of spacing areas of one-quarter, one, four or 16 legal subdivisions, as described in the SaskGrid legal subdivision feature layer, a lateral location on the lands covered by the lease; or

(b) in the case of spacing areas of one-half, two or eight legal subdivisions, as described in the SaskGrid legal subdivision feature layer, a diagonal location on the lands covered by the lease.

(4) Notwithstanding subsection (2), if the holder of the lease mentioned in subsection (2) submits an application for relief from an offset obligation that is supported by maps, reports and other pertinent information satisfactory to the


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

Offset requirements

30(1) If the lands covered by a lease adjoin privately owned mineral lands in which helium and associated gases are being obtained from a formation to which the lease applies, the lessee shall, within ninety days after receiving a written request from the minister or such other person authorized by him to comply with this section: (a) commence drilling an offset well on the location designated by the minister to a sufficient depth to test such producing zone; or (b) surrender to the Crown the drainage unit on which the offsetting well is required, such surrender to be in respect of all formations covered by the lease except any zone in respect of which helium and associated gases are being obtained by the lessee to the satisfaction of the minister. (2) For the purpose of subsection (1) a location for an offsetting well shall be designated by the minister as follows: (a) the lateral offset location or locations in case of ten, forty, one hundred and sixty or six hundred and forty acre spacing; (b) the diagonal offset location or locations in the case of twenty, eighty or three hundred and twenty acre spacing. (3) For the purpose of subsection

minister, the minister may cancel that offset obligation.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

(1) a written request addressed to the lessee at his last known address on record in the department shall be deemed to have been received by the lessee within three days after the mailing thereof. (4) Notwithstanding subsection (1), consideration may be given by the department for cancelling or deferring an offset obligation under special circumstances, provided that an application for relief from such obligation is submitted in writing and supported by necessary maps, reports and other pertinent information.

184

PNG regulations

Calculation of compensatory royalty

52.1(1) Subject to subsection (1.1), for the purposes of clause 52(1)(b), the compensatory royalty is equal to the amount of the royalty that would be payable pursuant to The Crown Oil and Gas Royalty Regulations as if:

(a) in the case of a vertical well creating the offset obligation, the oil and gas produced from the vertical well were actually produced from a vertical well on

Calculation of compensatory royalty

9-16(1) Subject to subsection (2), for the purposes of clause 9-15(2)(b), the compensatory royalty is equal to the amount of the royalty that would have been payable pursuant to The Crown Oil and Gas Royalty Regulations, 2012 if:

(a) either:

(i) in the case of a vertical well creating the offset obligation, the oil or natural gas produced from the


Deleted section 52.1(3) and clarified in (2) that there is no requirement to notify the lessee when switching the offending well. New IRIS system automatically switches to the highest producing offending well.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

the location designated by the minister;

(b) in the case of a horizontal well creating the offset obligation, the percentage A, calculated in accordance with the following formula, of oil and gas produced from the horizontal well were actually produced from a vertical well on the location designated by the minister:

A = (L/T) x 100

where:

L is the length of the portion of the horizontal well that:

(i) is located within the drainage unit creating the offset obligation; and

(ii) is, in the opinion of the minister, capable of producing oil or gas; and

T is the portion of the total length of the horizontal well that is, in the opinion of the minister, capable of producing oil or gas;

(c) Parts III and VI of The Crown Oil and

vertical well had actually been produced from a vertical well on the location designated by the minister; or

(ii) in the case of a horizontal well creating the offset obligation, the percentage A, calculated in accordance with the following formula, of oil or natural gas produced from the horizontal well had actually been produced from a vertical well on the location designated by the minister:

A= (L/T) x 100

where:

L is the length of the portion of the horizontal well that:

(A) is located within the drainage unit creating the offset obligation; and

(B) is, in the opinion of the minister, capable of


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

Gas Royalty Regulations did not exist; and

(d) the well-head value of the oil or gas is the fair value determined by the minister.

(1.1) The compensatory royalty calculated pursuant to subsection (1) is to be prorated in accordance with the following formula:

FCR = CR(100% - CI)

where:

FCR is the compensatory royalty payable pursuant to clause 52(1)(b);

CR is the compensatory royalty calculated pursuant to subsection (1);

CI is the percentage interest of the Crown in the adjoining lands that are not Crown mineral lands.

(2) The royalty payable to the Crown is to be based on the production from the well creating the offset obligation with respect to which a written notification was first given pursuant to subsection 52(1).

producing oil or natural gas; and

T is the portion of the total length of the horizontal well that is, in the opinion of the minister, capable of producing oil or natural gas; and

(b) Parts III and V of The Crown Oil and Gas Royalty Regulations, 2012 did not exist; and

(c) the wellhead value of the oil or natural gas is the fair value determined by the minister.

(2) The compensatory royalty calculated pursuant to subsection (1) is to be prorated in accordance with the following formula:

FCR = CR (100% - CI)

where:

FCR is the compensatory royalty payable pursuant to clause 9-15(2)(b);

CR is the compensatory royalty


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

(3) Notwithstanding subsection (2), the minister may give written notification to a lessee that the royalty payable to the Crown is to be based on the production from a well other than the well for which notification was first given.

(4) The minister may exempt any lessee from the payment of compensatory royalty for a specified period.

calculated pursuant to subsection (1); and

CI is the percentage interest of the Crown in the adjoining lands that are non-Crown mineral lands.

(3) The royalty payable to the Crown is to be based on the well generating the greatest revenue among any wells that create an offset obligation pursuant to subsection 9-15(2).

(4) Notwithstanding clause 9-15(2)(b), the minister may exempt any holder of a lease from the payment of a compensatory royalty if the holder of the lease satisfies the minister that the holder is prevented from drilling the well at the location designated pursuant to clause 9-15(2)(a) for reasons beyond the control of the holder of the lease for:

(a) a period equivalent to the length of the delay; or

(b) any longer period that the minister may determine.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

185

PNG regulations

Surrender whole or part of a lease

53(1) Subject to sections 39, 55 and 56, a lessee may surrender the whole or part of the lands covered by his lease provided that:

(a) the surrendered portions conform to legally described parcels of land and include all the rights granted in the original lease; and

(b) the retained portion of the lease is not less than a legal subdivision.

(2) Where lands are surrendered there shall be no refund of rent.

(3) Where a lessee holds the gas rights and not the oil rights from the Crown under the lease and he discovers oil in the gas lease lands, he may surrender to the Crown all his gas rights leased from the Crown in the surveyed section except in the legal subdivision in which the discovery well is located and the lessee may acquire the Crown oil rights to such

Surrender of all or part of a lease

9-17(1) Subject to section 9-14, a holder of a lease may surrender all or any part of the lands covered by the holder’s lease during the term of the lease if:

(a) the surrendered portions conform to legally described parcels of land in the SaskGrid system and include all the rights in the lease at the time of surrender; and

(b) any retained portion of the lease is at least one legal subdivision as described in the SaskGrid legal subdivision feature layer.

(2) If a holder of a lease surrenders the lease, no refund of rent is to be made to the holder.

(3) Notwithstanding subsection (1), the minister has the unqualified right to refuse to grant an application to surrender.


Clarified that the land descriptions conform to the SaskGrid system.

Deleted 53(3) as providing for negotiation for the rights to stranded substances outside the land sale process in Part 10.

Added right of minister to deny surrenders. Situations that may require denial include lands with active wells, or portions of lease of space agreements subject to on-going disposal/injection operations, for example.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

legal subdivision provided that such oil rights are undisposed or are not committed for disposition by an application for posting, notice of sale or otherwise at the time the application for acquisition of the oil rights is made by the lessee.

HELIUM regulations


31(1) Subject to sections 33 and 34, the lessee may surrender the whole or part of the lands covered by his lease provided that: (a) the surrendered portions conform to legally described parcels of land and include all the rights granted in the original lease; and (b) the retained portion of the lease is not less than a legal subdivision. (2) Where lands are surrendered there shall be no refund of rent except as provided for in section 27.



26(1) The lessee may surrender the whole or part of the lands covered by his lease


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

provided that: (a) the surrendered portions conform to legally described parcels of land and include all the rights granted in the original lease with respect to the surrendered portions; and (b) the retained portion of the lease is not less than one legal subdivision or 16 hectares. (2) Where lands are surrendered there shall be no refund of rent

186

PNG regulations

Form of lease

54 The minister shall prescribe the form of lease in accordance with these regulations.

HELIUM regulations

Form of lease

32 The minister shall determine the form of lease in accordance with these regulations.


Form of lease

28 The minister shall prescribe the form

Deleted Not required as the new IRIS system standardizes the format.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

of lease in accordance with these regulations.

187

PNG regulations

Designation of gas areas

56(1) A lessee who:

(a) claims to have made a discovery of gas in an area; and

(b) delimits the area mentioned in clause (a) by drilling wells that are adequately spaced to the satisfaction of the minister within the confines of his lease or leases;

may apply to the minister to have the area mentioned in clause (a) designated as a gas area.

(2) The minister may designate an area as a gas area where he is satisfied that:

(a) the wells drilled pursuant to clause (1)(b) by the lessee sufficiently delimit the area for which designation is sought; and

(b) further development and production of

Designation of natural gas areas

9-18(1) A holder of a lease may apply to the minister to have an area designated as a natural gas area if the holder:

(a) submits evidence satisfactory to the minister to establish that the holder has made a discovery of natural gas in the area; and

(b) delimits the area mentioned in clause (a) by drilling wells that are adequately spaced to the satisfaction of the minister within the confines of the lease.

(2) An application pursuant to subsection (1) must be received by the minister at least one month before the lease expires.

(3) The minister may designate an area as a natural gas area for a period of one year beyond the expiry date of the lease if the minister is satisfied that:

a) the wells drilled pursuant to


Changed title to “natural gas areas” to clarify that helium and associated gases cannot apply for a ‘gas area’.

Added requirement for application to be submitted no later than one month before expiry of lease to provide sufficient time to process application.

Clarified the natural gas area is only valid for one year beyond the expiry date.

Deleted 56(4) through (7) as no longer necessary given the clarification that a natural gas area is only valid for one year beyond expiry.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

gas from the area:

(i) is not warranted because of:

(A) economic considerations;

(B) lack of accessible transportation for gas or an adequate market for gas;

(C) environmental considerations; or

(ii) is not consistent with good oil and gas conservation practices.

(3) Notwithstanding anything contained in these regulations, where an area has been designated as a gas area pursuant to subsection (2), the lessee is relieved from the development and production requirements of the lease or leases set forth in subsection 43(5) with respect to the gas area.

(4) Where:

(a) an area has been designated as a gas area; and

(b) the minister subsequently determines

clause (1)(b) by the holder of the lease sufficiently delimit the area for which designation is sought; and

(b) further development and production of natural gas from the area:

(i) is not warranted because of any or all of the following:

(A) economic considerations;

(B) lack of accessible transportation for natural gas or an adequate market for natural gas;

(C) environmental considerations; or

(ii) is not consistent with good oil and natural gas conservation practices.

(4) Notwithstanding any other provision of these regulations, if an area has been


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

that circumstances warrant the further development and production of gas from the area designated as a gas area;

the minister may give notice to the lessee rescinding the designation of the area as a gas area.

(5) Subject to subsection (6), on and from the anniversary date of the lease or leases next following the date set forth in a notice mentioned in subsection (4), the lease or leases affected by the rescission of a designation of a gas area shall be subject to the requirements of subsection 43(5).

(6) Where the date set forth in a notice mentioned in subsection (4) falls within the period beginning on January 1 and ending on March 31 in any year, the leases affected by the rescission of a designation of a gas area shall be subject to the requirements of subsection 43(5) on and from June 30 of that year.

(7) All lease rental reductions for designated gas areas that were effected prior to the coming into force of this

designated as a natural gas area pursuant to subsection (3), the holder of the lease is relieved from the development and production requirements of the lease set out in clause 9-5(4)(b) with respect to the natural gas area.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

section are rescinded.

188 New DIVISION 2

Heavy Oil and EOR

Created new Division for Heavy Oil and EOR

189

PNG regulations

Interpretation on section 56.1 to 56.9

56.1(1) In this section and in sections 56.2 to 56.9:

(a) “designated heavy oil area” means an area designated by the minister pursuant to subsection 56.2(1);

(b) “EOR oil” means EOR oil as defined in The Crown Oil and Gas Royalty Regulations;

(c) “EOR project” means, subject to subsection (3), an EOR project as defined in The Crown Oil and Gas Royalty Regulations;

(d) “investment” means an investment as defined in Part IV of The Crown Oil and Gas Royalty Regulations, but does not include any amount credited, granted or paid to any person pursuant to any oil


Definitions moved to Part 1.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

incentive scheme of the Government of Canada or the Government of Saskatchewan;

(e) “primary recovery methods” includes horizontal well technology;

(f) “primary term” means the term of a Crown lease set out in subsection 43(4).

(2) Crown-acquired lands within the meaning of Part IV of The Crown Oil and Gas Royalty Regulations are deemed to be Crown lands for the purposes of this section and sections 56.2 to 56.9.

(3) Where the minister has determined that two or more EOR projects are to be treated as one EOR project for the purposes of The Crown Oil and Gas Royalty Regulations, each EOR project is to be considered a separate project for the purposes of this section and sections 56.2 to 56.9.

190

PNG regulations

Designation of heavy oil area

56.2(1) For the purposes of sections 56.1

Designation of heavy oil area

9-19(1) In this Division, notwithstanding that the minister has determined that two or more EOR projects are to be treated as


Deleted 56.2(1)(a) to provide minister with discretion in regards to areas that


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

to 56.9, the minister may, on application by the lessee, designate an area:

(a) that is located in the Lloydminster or the Kindersley-Kerrobert heavy crude area, the oil sands area north of Township 73, or the oil shale area in east-central Saskatchewan;

(b) that contains one or more oil, oil sands or oil shale deposits that:

(i) in the opinion of the minister, are not economically recoverable through primary recovery methods;

(ii) are defined:

(A) by wells spaced at a frequency of not less than one well per section; or

(B) by other means that, in the opinion of the minister, are adequate;

(c) that is, in the opinion of the minister, suited to the application of enhanced recovery methods;

(d) that contains not less than one quarter

one EOR project for the purposes of The Crown Oil and Gas Royalty Regulations, 2012, each of the EOR projects is to be considered a separate project for the purposes of these regulations.

(2) For the purposes of this Division, the minister may, on application by the holder of a lease, designate as a heavy oil area an area:

(a) that contains one or more oil, oil sands or oil shale deposits that:

(i) in the opinion of the minister, are not economically recoverable through primary recovery methods; and

(ii) are defined:

(A) by wells spaced at a frequency of at least one well per surveyed section; or

(B) by other means that, in the opinion of

qualify.

Deleted 56.2(3) as no longer necessary in new regulations.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

section and not more than 36 sections of Crown lands, unless the minister approves otherwise;

(e) that is wholly contained within a square measuring 16.1 kilometres by 16.1 kilometres unless the minister approves otherwise; and

(f) in which each of the Crown leases has the same lessee or lessees;

as a heavy oil area.

(2) The minister may, from time to time, amend the boundaries of a designated heavy oil area.

(3) An area designated or purported to be designated by the minister as a heavy oil area prior to the coming into force of sections 56.1 to 56.9 is deemed to have been designated pursuant to subsection (1).

the minister, are adequate;

(b) that is, in the opinion of the minister, suited to the application of enhanced recovery methods;

(c) that contains at least one-quarter of a surveyed section or 64.75 hectares, more or less, and not more than 36 surveyed sections or 9 324 hectares, more or less, of Crown mineral lands, unless the minister approves otherwise;

(d) that is wholly contained within a square measuring 16.1 kilometres by 16.1 kilometres, more or less; and

(e) in which the ownership is common for each of the leases.

(3) The minister may, from time to time, amend the boundaries of a designated heavy oil area.

191 PNG regulations Power to grant or refuse continuances

9-20(1) Notwithstanding any other



October 27, 2016

FORMER PROVISION(S)



EXPLANATION

Power to grant or refuse continuances

56.3(1) Notwithstanding any other provision of these regulations, the minister may, on the application of a lessee, grant a continuance of a Crown lease in accordance with sections 56.1 to 56.9.

(2) Applications to the minister pursuant to sections 56.1 to 56.9 are to be submitted to the administrator.

(3) A lessee who applies for a continuance of a Crown lease pursuant to sections 56.1 to 56.9 shall submit with the application a workplan that sets out in detail the lessee’s plans to undertake one or more of the activities mentioned in subsection 56.5(2).

(4) The minister may refuse to grant a continuance of a Crown lease for any reason that the minister considers sufficient, including, without limiting the generality of the foregoing, any failure of the lessee to comply with the Act, these regulations or the terms and the conditions of the Crown lease.

(5) Where a term or condition of a Crown

provision of these regulations, the minister may, on the application of a holder of a lease, grant a continuance of a lease in accordance with this Division.

(2) Any holder of a lease who intends to obtain a continuance of the lease must apply in the registry to the minister.

(3) The holder of the lease mentioned in subsection (2) shall submit with the application a work plan that sets out in detail the holder’s plans to carry out one or more of the activities mentioned in subsection 9-22(3).

(4) The minister may refuse to grant a continuance of a lease for any reason that the minister considers sufficient, including any failure of the holder of the lease to comply with the Act, these regulations or the terms or conditions of the lease.

(5) If a term or condition of a lease continued pursuant to sections 9-21 to 9-25 is inconsistent with a provision of those sections, that provision supersedes the term or condition of the lease.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

lease continued pursuant to sections 56.1 to 56.9 is inconsistent with a provision of those sections, that provision supersedes the term or condition of the Crown lease.

192

PNG regulations

Continuance before designation

56.4(1) Where a lessee who needs additional time to define an area and apply for designation of the area pursuant to subsection 56.2(1) submits an application not less than 30 days before the end of the primary term of the Crown lease, the minister may grant a continuance of the Crown lease for a period of one year, commencing on the day immediately following the last day of the primary term, at a rent of $7 per hectare.

(2) Where a lessee who is granted a continuance pursuant to subsection (1) submits an application not less than 30 days before the end of the year of continuance, the minister may grant a continuance of the Crown lease for a period of one additional year, commencing on the day immediately following the last day of the year of

Continuance before designation

9-21(1) If a holder of a lease who needs additional time to define an area and apply for designation of the area pursuant to subsection 9-19(2) submits an application at least one month before the end of the primary term of the lease, the minister may grant a continuance of the lease:

(a) for a period of one year, commencing on the day immediately following the last day of the primary term; and

(b) at an annual rent of the greater of:

(i) $7 per hectare of the lands to which the continuance applies per year; and

(ii) $50 per year.

(2) If a holder of a lease who is granted a




October 27, 2016

FORMER PROVISION(S)



EXPLANATION

continuance, at a rent of $10.50 per hectare.

continuance of a lease pursuant to subsection (1) submits an application at least one month before the end of the year of continuance, the minister may grant a continuance of the lease:

(a) for a period of one additional year, commencing on the day immediately following the last day of the year of continuance; and

(b) at an annual rent of the greater of:

(i) $10.50 per hectare of the lands to which the continuance applies per year; and

(ii) $50 per year.

193

PNG regulations

Continuance after designation

56.5(1) Where:

(a) a heavy oil area has been designated on leased Crown lands; and

Continuance after designation

9-22(1) The minister may grant a continuance of a lease if:

(a) a heavy oil area has been designated on the leased Crown mineral lands; and



Removed “cash” to allow for electronic


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

(b) the lessee submits an application not less than 30 days before the expiration of the Crown lease;

the minister may grant a continuance of the Crown lease with respect only to the leased Crown lands included in the designated heavy oil area for a period of five years, commencing on the day immediately following the last day of the previous term of the Crown lease, at a rent of $5 per hectare per year.

(2) A lessee who is granted a continuance pursuant to subsection (1) shall expend not less than $25 per hectare of the lands to which the continuance applies per year during the period of the continuance on:

(a) reservoir studies;

(b) combustion tube studies;

(c) injectivity tests;

(d) a pilot EOR project related to a specific oil, oil sands or oil shale deposit;

(e) any other activity approved by the

(b) the holder of the lease submits an application at least one month before the expiry of the lease.

(2) A continuance granted pursuant to subsection (1) is:

(a) with respect only to the leased Crown mineral lands included in the designated heavy oil area mentioned in subsection (1);

(b) for a period of five years, commencing on the day immediately following the last day of the previous term of the lease; and

(c) at an annual rent of the greater of:

(i) $5 per hectare of the lands to which the continuance applies per year; or

(ii) $50 per year.

(3) A holder of a lease who is granted a continuance pursuant to subsection (1)

payments.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

minister for the purposes of this section; or

(f) any combination of the matters and activities described in clauses (a) to (e).

(3) An expenditure for drilling to further define an oil, oil sands or oil shale deposit does not qualify as an expenditure pursuant to subsection (2).

(4) A lessee who is granted a continuance pursuant to subsection (1) shall, not later than 60 days after each anniversary date of the Crown lease, file with the administrator expenditure statements containing any information that the minister may require.

(5) Where, in any year of a continuance granted pursuant to subsection (1), the lessee has expended more than the amount described in subsection (2), the minister may permit the lessee to carry forward any expenditures in excess of that amount to be applied against the expenditure requirements for subsequent years of the period of the continuance.

shall expend at least $25 per hectare of the lands to which the continuance applies per year during the period of the continuance on:

(a) reservoir studies;

(b) combustion tube studies;

(c) injectivity tests;

(d) a pilot EOR project related to a specific oil, oil sands or oil shale deposit;

(e) any other activity approved for the purposes of this section; or

(f) any combination of the studies, tests, projects and activities described in clauses (a) to (e).

(4) An expenditure for drilling to further define an oil, oil sands or oil shale deposit does not qualify as an expenditure pursuant to subsection (3).

(5) A holder of a lease who is granted a continuance pursuant to subsection (1)


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

(6) Where, in any year of a continuance granted pursuant to subsection (1):

(a) the lessee has expended less than the amount described in subsection (2); and

(b) there are not sufficient expenditures carried forward from previous years pursuant to subsection (4) to satisfy the expenditure requirement for that year;

the minister may, on the application of the lessee made within the period mentioned in subsection (4), permit the lessee to make a cash payment, within the time specified by the minister, to maintain the Crown lease in good standing.

(7) The amount of a cash payment required pursuant to subsection (6) is equal to the difference between:

(a) the amount described in subsection (2) for the year in question; and

(b) the sum of:

(i) the amount of actual expenditures made pursuant to subsection (2) for the year in

shall, not later than two months after each anniversary date of the lease, file with the administrator expenditure statements containing any information that the minister may require.

(6) If, in any year of a continuance granted pursuant to subsection (1), the holder of the lease has expended more than the amount described in subsection (3), the minister may permit the holder to carry forward any expenditures in excess of that amount to be applied against the expenditure requirements for subsequent years of the period of the continuance.

(7) On the application of the holder of a lease made within the period mentioned in subsection (5), the minister may permit the holder to make a payment, within the time specified by the minister, to maintain the lease in good standing if, in any year of a continuance granted pursuant to subsection (1):

(a) the holder has expended less than the amount described in subsection (3); and


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

question; and

(ii) the amount of expenditures carried forward from previous years pursuant to subsection (5) that have not been applied against the expenditure requirements of other years.

(8) On proof by the lessee of the amount of expenditures pursuant to subsection (2) made by the lessee in the year following the year in which the deficiency of expenditures occurred, the minister shall refund to the lessee:

(a) the entire amount of a cash payment made by the lessee pursuant to subsection (6) if the amount of expenditures proved is equal to or greater than the sum of:

(i) the amount required pursuant to subsection (2) for the year next following the year in which the deficiency occurred; and

(ii) the amount of the cash payment; and

(b) the portion of a cash payment made by the lessee pursuant to subsection (6) equal

(b) there are not sufficient expenditures carried forward from previous years pursuant to subsection (6) to satisfy the expenditure requirement for that year.

(8) The amount of payment required pursuant to subsection (7) is equal to the difference between:

(a) the amount described in subsection (3) for the year in question; and

(b) the sum of:

(i) the amount of actual expenditures made pursuant to subsection (3) for the year in question; and

(ii) the amount of expenditures carried forward from previous years pursuant to subsection (6) that have not been applied against the expenditure requirements of


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

to the difference between:

(i) the amount of expenditures proved; and

(ii) the amount required pursuant to subsection (2) for the year next following the year in which the deficiency occurred;

if the amount of expenditures proved is less than the sum described in clause (a).

(9) Where a portion of a cash payment is refunded pursuant to subsection (8), the balance of the cash payment is forfeited to the Crown.

(10) Where no expenditures have been made by the lessee pursuant to subsection (2) in the year following the year in which the deficiency of expenditures occurred, the entire cash payment is forfeited to the Crown.

(11) Where, in any year of a continuance granted pursuant to subsection (1):

(a) the lessee has expended less than the amount described in subsection (2);

other years.

(9) On the holder of the lease submitting evidence satisfactory to the minister of the amount of expenditures pursuant to subsection (3) made by the holder in the year following the year in which the deficiency of expenditures mentioned in subsection (7) occurred:

(a) if the amount of expenditures evidenced is equal to or greater than the sum of the following, the minister shall refund to the holder the entire amount of a payment made by the holder pursuant to subsection (7):

(i) the required expenditures pursuant to subsection (3) for the year following the year in which the deficiency occurred;

(ii) the amount of the payment made pursuant to subsection (7); or

(b) if the amount of expenditures


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

(b) expenditures carried forward from previous years pursuant to subsection (4) are not sufficient to satisfy the expenditure requirement for that year; and

(c) the lessee has not made a cash payment pursuant to subsection (6);

the Crown lease terminates at the end of that year of continuance with respect to that portion of the designated heavy oil area, in hectares rounded off to the nearest quarter section, that bears the same proportional relationship to the total of the leased Crown lands as the deficiency in expenditures for the year bears to the expenditure requirement for that year.

(12) Where a Crown lease terminates pursuant to subsection (11):

(a) the lessee may, within 60 days after the expiry of the time for filing expenditure statements, designate the portion of the designated heavy oil area with respect to which the Crown lease terminates; and

(b) if the lessee fails to designate a portion of the leased Crown lands within the

evidenced is less than the sum determined pursuant to clause (a), the minister shall refund to the holder the portion of a cash payment made by the holder pursuant to subsection (6) that is equal to the difference between:

(i) the amount of expenditures evidenced; and

(ii) the amount required to be expended pursuant to subsection (3) for the year next following the year in which the deficiency occurred.

(10) If a portion of a payment made pursuant to subsection (7) is refunded pursuant to subsection (9), the balance of the payment is forfeited to the Crown.

(11) If no expenditures are made by the holder of the lease pursuant to subsection (3) in the year following the year in which the deficiency of expenditures occurred, the entire payment made pursuant to


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

period set out in clause (a), the minister shall designate the portion of the designated heavy oil area with respect to which the Crown lease terminates.

subsection (7) is forfeited to the Crown.

(12) In any year of a continuance granted pursuant to subsection (1), the lease terminates at the end of that year of continuance with respect to that portion of the designated heavy oil area, in hectares rounded off to the nearest one-quarter of a surveyed section, that bears the same proportional relationship to the total of the leased Crown mineral lands as the deficiency in expenditures for the year bears to the expenditure requirement for that year if:

(a) the holder of the lease has expended less than the amount described in subsection (3);

(b) expenditures carried forward from previous years pursuant to subsection (6) are not sufficient to satisfy the expenditure requirement for that year; and

(c) the holder of the lease has not made a payment pursuant to subsection (7).


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

(13) If a lease terminates pursuant to subsection (12):

(a) the holder of the lease may, within two months after the expiry of the time for filing expenditure statements, designate the portion of the designated heavy oil area with respect to which the lease terminates; and

(b) if the holder of the lease fails to designate a portion of the leased Crown mineral lands within the period set out in clause (a), the minister shall designate the portion of the designated heavy oil area with respect to which the lease terminates.

194

PNG regulations

Continuance – no EOR project

56.6(1) Where:

(a) a continuance is granted pursuant to subsection 56.5(1);

(b) no EOR project is in operation in the

Continuance - no EOR project in operation

9-23(1) The minister may grant a continuance of a lease if:

(a) a continuance was granted pursuant to subsection 9-22(1);

(b) no EOR project is in operation




October 27, 2016

FORMER PROVISION(S)



EXPLANATION

designated heavy oil area at the end of the period of the continuance; and

(c) the lessee submits an application not less than 30 days before the end of the period of the continuance;

the minister may grant a continuance of the Crown lease with respect only to the leased Crown lands included in the designated heavy oil area for a further period of five years, commencing on the day immediately following the last day of the previous continuance, at a rent of $7 per hectare per year.

(2) A lessee who is granted a continuance pursuant to subsection (1) shall expend not less than $50 per hectare of the lands to which the continuance applies per year during the period of the continuance on any of the matters and activities mentioned in clauses 56.5(2)(a) to (f).

(3) No expenditures claimed pursuant to section 56.5 may be claimed as expenditures pursuant to this section.

(4) Subsections 56.5(3) to (11) apply, with

in the designated heavy oil area at the end of the period of the continuance; and

(c) the holder of the lease submits an application at least one month before the end of the period of the continuance.



(b) for a further period of five years, commencing on the day following the last day of the previous continuance; and




October 27, 2016

FORMER PROVISION(S)



EXPLANATION

any necessary modification, to lessees, Crown lease continuances and expenditures mentioned in subsections (1) and (2).

(5) At the expiry of a continuance granted pursuant to subsection (1), no further continuance shall be granted except in accordance with section 56.7 or 56.8.

(ii) $50 per year.

(3) A holder of a lease who is granted a continuance pursuant to subsection (1) shall expend at least $50 per hectare of the lands to which the continuance applies per year during the period of the continuance on any of the studies, tests, projects and activities mentioned in clauses 9-22(3)(a) to (f).

(4) No person shall claim as an expenditure pursuant to this section an expenditure claimed pursuant to section 9-22.

(5) Subsections 9-22(4) to (12) apply, with any necessary modification, to holders of leases and continuances granted pursuant to subsection (1).

(6) At the expiry of a continuance granted pursuant to subsection (1), no further continuance is to be granted except in accordance with section 9-24 or section 9-25.

195 PNG regulations

Continuance – EOR project in

Continuance - EOR project in operation



October 27, 2016

FORMER PROVISION(S)



EXPLANATION

operation

56.7(1) Where, on the expiry of the primary term of a Crown lease or of the period of any continuance of a Crown lease granted or deemed to be granted pursuant to sections 56.1 to 56.9:

(a) an EOR project on leased Crown lands included in a designated heavy oil area has been approved by the minister; and

(b) operations are being carried out on those lands pursuant to that project:

the Crown lease is continued with respect only to the leased Crown lands included in the designated heavy oil area at the rent provided for in section 44 for a period of two years, commencing on the day immediately following the last day of the primary term or previous continuance, as the case may be, and, after the expiry of that period, for as long as EOR oil is produced from the EOR project.

(2) Where, on the coming into force of sections 56.1 to 56.9, operations are being carried out pursuant to an EOR project

9-24(1) A lease continuance granted pursuant to this Division may be continued if, on the expiry of the primary term of that lease or of the period of any continuance of that lease:

(a) the minister has approved an EOR project on leased Crown mineral lands included in the designated heavy oil area; and

(b) operations are being carried out on those lands pursuant to that project.

(2) A continuance continued pursuant to subsection (1) is:

(a) with respect only to the leased Crown mineral lands included in the designated heavy oil area mentioned in clause (1)(a);

(b) for a period of two years, commencing on the day following the last day of the primary term or previous continuance, as the case may be, and, after the expiry of that period, for as long as EOR oil is


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

previously approved by the minister on leased Crown lands within a designated heavy oil area, the Crown lease is continued with respect only to the leased Crown lands included in that area at the rent provided for in section 44 for as long as EOR oil is produced from the EOR project.

(3) Subject to subsections (4) and (5), where a Crown lease is continued pursuant to subsection (1) or (2), the minister may, with respect to leased Crown lands included in designated heavy oil areas other than the one in which the EOR project is located, grant a continuance of a Crown lease in which an owner of a working interest in the EOR project holds an interest recorded on the Crown lease kept by the ministry that, in the opinion of the minister, is a sufficient interest if those designated heavy oil areas:

(a) contain oil, oil sands or oil shale deposits with characteristics similar to those of the deposits in the designated heavy oil area in which the EOR project is located; and

(b) are wholly contained within a square

produced from the EOR project; and

(c) at the rent provided for in section 9-9.

(3) Subject to subsections (4) and (5), if a lease is continued pursuant to subsection (1), the minister may, with respect to leased Crown mineral lands included in designated heavy oil areas other than the one in which the EOR project is located, grant a continuance of a lease in which an owner of a working interest in the EOR project holds an interest recorded on the lease kept by the ministry that, in the opinion of the minister, is a sufficient interest if those designated heavy oil areas:

(a) contain oil, oil sands or oil shale deposits with characteristics similar to those of the deposits in the designated heavy oil area in which the EOR project is located; and

(b) are wholly contained within a square measuring 16.1 kilometres by 16.1 kilometres unless the


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

measuring 16.1 kilometres by 16.1 kilometres unless the minister approves otherwise.

(4) No continuance shall be granted pursuant to subsection (3) with respect to any part of the designated heavy oil area in excess of the number of hectares equal to the product of:

(a) the lessee’s percentage interest in the EOR project; and

(b) either:

(i) 9 324; or

(ii) if the rights are for oil sands or oil shale, 18 648.

(5) No continuance shall be granted by the minister pursuant to this section with respect to any area of leased Crown lands in excess of the number of sections equal to:

(a) the greater of:

(i) the number of wells on Crown lands in

minister approves otherwise.

(4) The minister shall not grant a continuance pursuant to subsection (3) with respect to any part of the designated heavy oil area in excess of the area equal to the product of:

(a) the holder of the lease’s percentage interest in the EOR project; and

(b) either:

(i) 9 324; or

(ii) if the rights are for oil sands or oil shale, 18 648.

(5) The minister shall not grant a continuance pursuant to this section with respect to any area of leased Crown mineral lands in excess of the number of surveyed sections equal to:

(a) the greater of:

(i) the number of wells on Crown mineral lands in the


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

the EOR project; and

(ii) the number obtained by dividing the investment on Crown lands in the EOR project by $250,000, rounded to the nearest quarter section; or

(b) an area otherwise determined by the minister.

EOR project; and

(ii) the number obtained by dividing the investment on Crown mineral lands in the EOR project as evidenced in a manner satisfactory to the minister by $250,000, rounded to the nearest one-quarter of a surveyed section; or

(b) any other area that the holder satisfies the minister is appropriate for the purposes of these regulations and that is not contrary to the public interest.

196

PNG regulations

Continuance – EOR project suspended

56.8(1) Where, after the expiry of the primary term of a Crown lease or of the period of any continuance of a Crown lease granted or deemed to be granted pursuant to sections 56.1 to 56.9, operations pursuant to an EOR project located in a designated heavy oil area are suspended for reasons that, in the opinion

Continuance - EOR project suspended

9-25(1) The minister may grant a continuance of a lease granted pursuant to this Division if, after the expiry of the primary term of the lease or of the period of any continuance of the lease, operations pursuant to an EOR project located in a designated heavy oil area are suspended for reasons that, in the opinion of the minister, are:




October 27, 2016

FORMER PROVISION(S)



EXPLANATION

of the minister, are:

(a) beyond the control of the lessee; and

(b) sufficient to justify the suspension of the project;

the minister may grant a continuance of the Crown lease with respect only to the leased Crown lands included in the designated heavy oil area at a rent of $5 per hectare for a period specified by the minister that does not exceed five years from the day on which EOR oil was last produced from the project or from any other day specified by the minister.

(2) A lessee who is granted a continuance of a Crown lease pursuant to subsection (1) shall maintain the equipment of the EOR project in an operable state to the satisfaction of the minister.

(3) Where a lessee fails to maintain the equipment of an EOR project in accordance with subsection (2), the minister may rescind the designation of the designated heavy oil area in which the EOR project is located.

(a) beyond the control of the holder of the lease; and

(b) sufficient to justify the suspension of the project.



(b) for a period specified by the minister that does not exceed five years from the day on which EOR oil was last produced from the project or from any other day specified by the minister; and




October 27, 2016

FORMER PROVISION(S)



EXPLANATION

(ii) $50 per year.

(3) A holder of a lease who is granted a continuance of a lease pursuant to subsection (1) shall maintain the equipment of the EOR project in an operable state to the satisfaction of the minister.

(4) If a holder of a lease fails to maintain the equipment of an EOR project in accordance with subsection (3), the minister, may after giving the holder written notice of the minister’s intention and an opportunity to be heard, rescind the designation of the designated heavy oil area in which the EOR project is located.

197

PNG regulations

Continuances prior to coming into force

56.9(1) A continuance of a Crown lease granted or purported to be granted by the minister or the ministry prior to the coming into force of sections 56.1 to 56.9 is deemed to be granted pursuant to sections 56.1 to 56.9 for the period


Legacy Dispositions addressed in Legacy Dispositions Part.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

specified in the continuance.

(2) The minister may grant a further continuance of a Crown lease mentioned in subsection (1) pursuant to any provision of sections 56.1 to 56.9 that the minister considers appropriate.

(3) A Crown lease mentioned in subsection (1) shall not be continued after the expiry of the deemed continuance except in accordance with subsection (2).

198 New DIVISION 3

Helium and Associated Gases Royalties

Created new Division for Helium and Associated Gases

199

HELIUM regulations

Helium and associated gases royalties

34(1) In this section:

(a) “allowable transportation expenses” means:

(i) transportation expenses actually incurred by the royalty payer in transporting helium and associated gases to the delivery point specified in an arm’s-length agreement for sale of the helium

Helium and associated gases royalties

9-26(1) In this section:

“allowable transportation expenses” means:

(a) transportation expenses actually incurred by the royalty payer in transporting helium and associated gases to the delivery point specified in an arm’s-length agreement for sale of the helium and associated

Changes to The Helium and Associated Gases Regulations, 1964.

Note: this section was last amended in December, 2013.

Deleted 34(9) as adding clause 11-16 prescribing payment methods and moved definition of pre-authorized debit to definition part.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

and associated gases; and

(ii) any other reasonable transportation expenses that are approved by the minister as allowable transportation expenses;

(b) “month of production” means the month in which the helium and associated gases are allocated to Crown lands and produced from a well;

(c) “pre-authorized debit” means a withdrawal from a royalty payer’s account at a financial institution that is initiated by the minister on the authority of the royalty payer pursuant to subsection (11);

(d) “SRC” means the Saskatchewan Resource Credit, which equals:

(i) with respect to helium and associated gases produced before April 1, 2013, 1%; and

(ii) with respect to helium and associated gases produced on or after April 1, 2013, 0.75%.

(2) Subject to subsection (3), the well-

gases; and

(b) any other reasonable transportation expenses that are approved as allowable transportation expenses;

“month of production” means the calendar month in which the helium and associated gases are allocated to Crown mineral lands and produced from a well;

“SRC” means the Saskatchewan Resource Credit, which equals:

(a) with respect to helium and associated gases produced before April 1, 2013, 1%; and

(b) with respect to helium and associated gases produced on or after April 1, 2013, 0.75%.

(2) Subject to subsection (3), the wellhead price of helium and associated gases is the amount by which the price of that helium and any associated gases, expressed in dollars per thousand cubic metres, received by a royalty payer


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

head price of helium and associated gases is the amount by which the price of that helium and any associated gases, expressed in dollars per thousand cubic metres, received by a royalty payer pursuant to the first arm’s-length agreement for the sale of helium and associated gases exceeds allowable transportation expenses, expressed in dollars per thousand cubic metres, with respect to that helium and any associated gases.

(3) The well-head price of helium and associated gases is the fair price determined by the minister if:

(a) the minister is satisfied that there is no agreement for the sale of the helium and associated gases or that no arm’s-length transaction has occurred;

(b) the minister is satisfied that there was an agreement for the sale of the helium and associated gases but that the royalty payer did not receive the price set out in the agreement;

(c) there is a consideration for the sale of

pursuant to the first arm’s-length agreement for the sale of helium and associated gases exceeds allowable transportation expenses, expressed in dollars per thousand cubic metres, with respect to that helium and any associated gases.

(3) The wellhead price of helium and associated gases is the fair price determined by the minister if:

(a) the minister is satisfied that there is no arm’s length agreement for the sale of the helium and associated gases or that no arm’s-length transaction has occurred;

(b) the minister is satisfied that there was an arm’s length agreement for the sale of the helium and associated gases but that the royalty payer did not receive the price set out in the agreement;

(c) there is a consideration for the sale of helium and associated gases in addition to or instead of the price specified in an arm’s-length


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

helium and associated gases in addition to or instead of the price specified in an arm’s-length agreement; or

(d) the minister believes that one of the purposes of a transaction evidenced by an agreement for sale of the helium and associated gases is to reduce, unduly or artificially, the liability of a royalty payer to pay royalty on the production of helium and associated gases.

(4) Before determining a fair price pursuant to subsection (3), the minister shall consider the following:

(a) the arm’s-length prices received by the royalty payer for the sale of similar quality gases in similar markets;

(b) the arm’s-length prices received by other royalty payers for the sale of similar quality gases in similar markets;

(c) the arm’s-length prices received by the royalty payer for sales of similar quality gases in other markets;

(d) any other price information provided

agreement; or

(d) the minister is satisfied that one of the purposes of a transaction evidenced by an agreement for sale of the helium and associated gases is to reduce, unduly or artificially, the liability of a royalty payer to pay royalty on the production of helium and associated gases.

(4) Before determining a fair price pursuant to subsection (3), the minister shall consider the following:

(a) the arm’s-length prices received by the royalty payer for the sale of similar quality gases in similar markets;

(b) the arm’s-length prices received by other royalty payers for the sale of similar quality gases in similar markets;

(c) the arm’s-length prices received by the royalty payer for sales of similar quality gases in other


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

by the royalty payer that the minister considers appropriate in the circumstances.

(5) If the minister determines a fair price pursuant to subsection (3), the minister shall provide notice of the price to the royalty payer

. (6) For the purposes of these regulations:

(a) related persons, as determined in accordance with the Income Tax Act (Canada), are deemed not to deal with each other at arm’s length; and

(b) it is a question of fact whether persons not related to each other, as determined in accordance with the Income Tax Act (Canada), were at a particular time dealing with each other at arm’s length.

(7) The royalty excepted and reserved and the payments to be made with respect to helium and associated gases that are produced from or allocated to any Crown lands on or after January 1, 1994 must be determined for each well, for each month,

markets;

(d) any other price information provided by the royalty payer that the minister considers appropriate in the circumstances.

(5) If the minister determines a fair price pursuant to subsection (3), the minister shall provide notice of the price to the royalty payer.

(6) For the purposes of this Division:

(a) related persons or partnerships, as determined in accordance with the Income Tax Act (Canada), are deemed not to deal with each other at arm’s length; and

(b) it is a question of fact whether persons or partnerships not related to each other, as determined in accordance with the Income Tax Act (Canada), were at a particular time dealing with each other at arm’s length.

(7) The royalty excepted and reserved


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

by:

(a) determining the Crown royalty share of helium and associated gases produced from a well for the month by applying a rate equal to the amount by which 5% exceeds the SRC to the total monthly production of helium and associated gases allocated to Crown lands and produced from the well;

(b) determining each royalty payer’s share of the Crown royalty share, as determined pursuant to clause (a), of the helium and associated gases allocated to Crown lands and produced from the well for the month by applying the royalty payer’s proportionate share to the Crown royalty share; and

(c) calculating the payment required to be made by each royalty payer for the month with respect to helium and associated gases allocated to Crown lands and produced from the well for the month by applying the royalty payer’s well-head price for the month, as determined pursuant to subsections (2) and (3), to the royalty payer’s share of the Crown royalty

and the payments to be made with respect to helium and associated gases that are produced from or allocated to any Crown mineral lands on or after January 1, 1994 must be determined for each well, for each month, by:

(a) determining the Crown royalty share of helium and associated gases produced from a well for the calendar month by applying a rate equal to the amount by which 5% exceeds the SRC to the total production in the calendar month of helium and associated gases allocated to Crown mineral lands and produced from the well;

(b) determining each royalty payer’s share of the Crown royalty share, as determined pursuant to clause (a), of the helium and associated gases allocated to Crown mineral lands and produced from the well for the calendar month by applying the royalty payer’s proportionate share to the Crown royalty share; and

(c) calculating the payment


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

share as determined pursuant to clause (b).

(8) The minister shall, on a monthly basis:

(a) determine the royalties required by these regulations in accordance with subsection (7); and

(b) provide to every royalty payer an invoice that sets out the royalties mentioned in clause (a) applicable to that royalty payer.

(9) The royalties required by these regulations shall be paid:

(a) subject to clause (b), by one of the following methods:

(i) pre-authorized debit;

(ii) electronic transfer of funds; or

(b) in the case of any exceptional circumstances that, in the opinion of the minister, prevent payment by one of the methods mentioned in clause (a), by any other method acceptable to the minister.

required to be made by each royalty payer for the calendar month with respect to helium and associated gases allocated to Crown mineral lands and produced from the well for the calendar month by applying the royalty payer’s wellhead price for the calendar month, as determined pursuant to subsections (2) and (3), to the royalty payer’s share of the Crown royalty share as determined pursuant to clause (b).

(8) For each calendar month, the minister shall:

(a) determine the royalties required by these regulations in accordance with subsection (7); and

(b) provide to every royalty payer an invoice that sets out the royalties mentioned in clause (a) applicable to that royalty payer.

(9) The royalties required by these regulations must be paid:

(a) on or before the 15th day of the


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

(10) The royalties required by these regulations shall be paid:

(a) on or before the 15th day of the second month following the month of production; or

(b) if the day mentioned in clause (a) is not a business day, on or before the last business day before the 15th day of the second month following the month of production.

(11) Every royalty payer who pays by pre-authorized debit pursuant to subclause (9)(a)(i) or by electronic transfer of funds pursuant to subclause 9(a)(ii) shall provide the minister with the information required to enable payment by the applicable method. (12) For the purposes of these regulations, a remittance of royalty is deemed to have been received by the minister on the date shown in the department’s records.

second month following the month of production; or

(b) if the day mentioned in clause (a) is not a business day, on or before the last business day before the 15th day of the second calendar month following the month of production.

(10) For the purposes of these regulations, a remittance of royalty is deemed to have been received by the minister on the date shown in the ministry’s records.

200

PNG regulations

PART IV

Acquiring Crown Dispositions

PART 10

Acquiring Mineral Dispositions

Changed to ‘Mineral’ from ‘Crown’ for consistency with definitions


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

201

PNG regulations

Advertisement for bids and offers

37(1) On the application of an interested person or on the minister’s own motion, the minister may advertise for sale any Crown disposition that may be granted pursuant to these regulations.

(1.1) The maximum area that may be the subject of any application for a lease pursuant to subsection (1) is four sections of Crown land.

(1.2) The minister may reject any application for a lease where, in the opinion of the minister, the applicant has not complied with subsection (1.1).

(1.3) No land is to be advertised for petroleum, natural gas, or petroleum and natural gas rights under a permit to be issued pursuant to Part II.1 if the land is:

(a) within 40 kilometres of any well that is cased for petroleum and natural gas production purposes at the time of the

Sale of petroleum and natural gas, oil sands or oil shale rights

10-1(1) On the application of an interested person in the manner required by the minister or on the minister’s own initiative, the minister may advertise for sale any mineral disposition with rights with respect to petroleum and natural gas, oil sands or oil shale that may be granted pursuant to these regulations.

(2) The maximum area that may be the subject of any application for a lease pursuant to subsection (1) is four surveyed sections or 1 036 hectares, more or less, of Crown mineral lands.

(3) The minister reserves the unqualified right to refuse any application made pursuant to this section.

(4) No land is to be advertised for petroleum, natural gas or petroleum and natural gas rights pursuant to a permit to be issued pursuant to Part 6 if the land is:

(a) within 40 kilometres of any well that is cased for petroleum and


Made the sale specific to oil and natural gas, oil sands and oil shale rights. Helium and Associated Gases and Spaces dispositions will continue to be issued through the application process.

Expanded 37(1.2) to ‘unqualified right’ to clarify that the Minister may refuse posting requests.

Added “more or less” to provide flexibility in configuring permit lands for posting.

Removed reference to The Oil Shale Regulations, 1964 as they are to be replaced by these regulations.

Removed requirement for publication of notice and results in the Gazette in (2).

Housekeeping: Deleted “offers” as no longer issuing net royalty leases.

Deleted refund reference in 37(4) as no


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

advertisement; or

(b) disposed for oil sands or oil shale rights pursuant to these regulations or The Oil Shale Regulations, 1964, being Saskatchewan Regulations 555/64.

(1.4) No land is to be advertised for oil shale or oil sands rights under a permit to be issued pursuant to Part II.1, if the land is within 10 kilometres of any active oil shale or oil sands EOR project at the time of advertisement.

(2) An advertisement for the purposes of subsection (1) is to:

(a) be published in the Gazette; and

(b) contain:

(i) the date of the sale;

(ii) the date and time after which the minister will not receive bids or offers; and

(iii) the address to which interested persons may write or to which they may

natural gas production purposes at the time of the advertisement; or

(b) the subject of a disposition for oil sands or oil shale rights.

(5) No land is to be advertised for oil shale or oil sands rights pursuant to a permit to be issued pursuant to Part 6 if the land is within 10 kilometres of any active oil shale or oil sands mining operation or EOR project at the time of advertisement.

(6) An advertisement for the purposes of subsection (1) must contain:

(a) the date of the sale;

(b) the date and time after which the minister will not receive bids;

(c) the pertinent terms and conditions under which the bids may be made;

(d) a list of the petroleum, natural gas, petroleum and natural gas, oil sands or oil shale rights available

longer required in electronic registry.

Made10-1(10) generic to accommodate any projects that could be affected by deeper drilling, including thermal EOR, oil shale or oil sands mining operations, CO2 storage/injection projects, etc.

Added confidentiality clause (11) to clarify that the identity of bidders is confidential.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

go to obtain:

(A) the pertinent terms and conditions under which the bids or offers may be made;

(B) a list of the petroleum, natural gas, petroleum and natural gas, oil sands or oil shale rights available for disposition at the sale; and

(C) any other information that the minister considers relevant.

(3) Sealed bids or offers submitted to the minister are to be in accordance with the terms and conditions mentioned in paragraph (2)(b)(iii)(A).

(3.1) to (3.4) Repealed.

(4) The unqualified right to refuse any or all bids or offers and the unqualified right to refuse to issue a disposition to any or all persons submitting bids or offers shall be reserved to the minister and the money submitted with the bids or offers by the unsuccessful applicants shall be refunded.

for disposition at the sale; and

(e) any other information that the minister considers relevant.

(7) Bids submitted to the registry must be in accordance with the terms and conditions mentioned in clause (6)(c).

(8) The minister reserves the unqualified right to refuse any or all bids and the unqualified right to refuse to issue a mineral disposition to any or all persons submitting bids.

(9) The rights set out in subsection (8) are terms or conditions under which all bids are made.

(10) If there are any activities on Crown mineral lands that, in the opinion of the minister, may be adversely affected by the development of rights above or below these activities, as determined by the minister, in those Crown mineral lands, the minister shall withdraw those rights from mineral disposition.

(11) The identity of applicants and


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

(4.1) The rights set out in subsection (4) are terms or conditions under which all bids or offers may be made.

(5) Repealed. 17 Aug 90 SR 63/90 s3.

(6) The minister may determine the form of any Crown disposition issued pursuant to these regulations.

(7) If there are ongoing thermal enhanced oil recovery activities on Crown lands that, in the opinion of the minister, may be adversely affected by the development of the deeper rights, as determined by the minister, in those Crown lands, the minister shall withdraw those deeper rights from disposition.

bidders is confidential and is not to be made available to the public.

202

PNG regulations

Disposition of interest without advertisement

38(1) Notwithstanding section 37, the minister may, without advertising, lease interests in oil and gas rights:

(a) in any area of less than 16 hectares that

Disposition of interest without advertisement

10-2(1) Notwithstanding section 10-1, the minister may, without advertisement, lease interests in oil or natural gas, oil and natural gas, oil sands, oil shale or helium and associated gases rights:

(a) in any area of less than 16 hectares that is required to complete


Expanded (1) to include oil sands, oil shale, or helium and associated gases.

Provide lessees of petroleum only or natural gas only leases with the option to negotiate the excluded substance provided it is currently not disposed.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

is required to complete a drainage unit;

(b) to the lessee under a lease issued by Her Majesty in right of Canada before the transfer of the leased Crown mineral lands to Her Majesty in right of Saskatchewan, in accordance with subsection (2); or

(c) to the lessee under a lease respecting acquired oil and gas rights that applies to convert that lease to a Crown lease pursuant to subsection 23(11) of the Act, in accordance with subsection (3).

(2) The minister may issue a lease pursuant to clause (1)(b) if the lessee:

(a) submits an application for a Crown lease that demonstrates to the satisfaction of the minister that the lessee is in good standing under the lease issued by Her Majesty in right of Canada;

(b) surrenders the lease issued by Her Majesty in right of Canada; and

(c) meets any other requirements determined by the minister.

a drainage unit in accordance with subsection (2);

(b) to the holder of a lease issued by the Crown in right of Canada before the transfer of the leased Crown mineral lands to the Crown in right of Saskatchewan, in accordance with subsection (3);

(c) to the holder of a lease respecting acquired oil and natural gas rights as defined in subsection 23(1) of the Act who applies to convert that lease to a Crown lease pursuant to subsection 23(11) of the Act, in accordance with subsection (4);

(d) to the holder of a lease whose lease includes the rights to only petroleum or only natural gas and if the excluded substance is owned by the Crown and is not the subject of an intervening right, in accordance with subsection (5);

(e) to the holder of an old oil shale lease who applies to convert that

Accommodate those oil shale lessees that wish to convert their “old oil shale” leases issued under The Oil Shale Regulations, 1964 to standard oil shale leases. Similar to Crown Acquired, this would remove requirement to go through Order in Council.

Accommodate helium and associated gases.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

(3) The minister may issue a lease pursuant to clause (1)(c) if the lessee:

(a) submits an application for a Crown lease that:

(i) describes the acquired oil and gas rights to be converted to a Crown lease;

(ii) includes a copy of the mineral titles for the acquired oil and gas rights that are the subject of the lease demonstrating that the mineral titles are free and clear of all registered interests pertaining to that lease; and

(iii) demonstrates to the satisfaction of the minister that the lease of acquired oil and gas rights is still in effect and that the lessee is in good standing under the lease;

(b) surrenders the lease of acquired oil and gas; and

(c) meets any other requirements determined by the minister.

(4) No bids or offers are required for the issuance of a lease pursuant to clause

lease to a new oil shale lease, in accordance with subsection (6); or

(f) to the holder of a lease whose lease includes the rights to helium and associated gases or oil and natural gas, or oil or natural gas, as the case may be, and is capable of producing commercial quantities of both helium and associated gases and oil and natural gas or oil or natural gas, in the opinion of the minister, simultaneously from the same zone, in accordance with subsection (7).

(2) The minister may issue a lease pursuant to clause (1)(a) if the applicant:

(a) submits an application for a lease that demonstrates to the satisfaction of the minister that the applicant requires the lease to complete a drainage unit;

(b) submits an application fee and bid in accordance with subsections 10-1(8) and (11); and


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

(1)(b) or (c).

(5) A lease issued pursuant to this section:

(a) is to be in the form of a standard Crown lease;

(b) shall include any additional terms and conditions that the minister considers appropriate; and

(c) is subject to Part V

(c) meets any other reasonable requirements determined by the minister.

(3) The minister may issue a lease pursuant to clause (1)(b) if the holder of the lease:

(a) submits an application for a lease that demonstrates to the satisfaction of the minister that the holder has complied with the terms and conditions of the lease issued by the Crown in right of Canada;

(b) surrenders the lease issued by the Crown in right of Canada; and


(4) The minister may issue a lease pursuant to clause (1)(c) if the holder of the lease:

(a) submits an application for a lease that:


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

(i) describes the acquired oil and natural gas rights to be converted to a lease;

(ii) includes a copy of the mineral titles for the acquired oil and natural gas rights that are the subject of the lease demonstrating that the mineral titles are free and clear of all registered interests pertaining to that lease; and

(iii) demonstrates to the satisfaction of the minister that the lease of acquired oil and natural gas rights is still in effect and that the holder has complied with the terms and conditions of the lease;

(b) surrenders the lease of acquired oil and natural gas; and


(5) The minister may issue or amend a


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

lease pursuant to clause (1)(d) if the holder of the lease:

(a) submits an application for a lease that surrenders or requests an amendment of the lease that includes any rights specific to only petroleum or only natural gas in exchange for a lease that includes rights with respect to both petroleum and natural gas for all zones;

(b) submits an application fee and bid in accordance with subsections 10-1(8) and (11); and


(6) The minister may issue a new oil shale lease pursuant to clause (1)(e) if the holder of the old oil shale lease:

(a) submits an application for a new oil shale lease that surrenders the old oil shale lease; and


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

(b) meets any other reasonable requirements determined by the minister.

(7) The minister may issue a lease pursuant to clause (1)(f) if the holder of the lease:

(a) submits an application for a lease that includes any rights specific to either helium and associated gases or oil and natural gas, as the case may be;

(b) submits an application fee and bid in accordance with subsections 10-1(8) and (11);


(8) No bids or offers are required for the issuance of a lease pursuant to clause (1)(b), (c) or (e).

(9) A lease issued pursuant to this section:


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

(a) must be in the form of a standard Crown lease;

(b) if the minister considers that any additional terms and conditions are appropriate, must include those additional terms and conditions; and

(c) is subject to Part 9.

203

PNG Regulations

Advertisement for bids and offers

37(6) The minister may determine the form of any Crown disposition issued pursuant to these regulations.

Powers of minister

10-3(1) The minister may determine the configuration of the lands covered by the lease for any lease issued pursuant to this Part.

(2) The minister may place any environmental, drilling or developmental restrictions on a lease.

(3) If the minister is satisfied that a holder of a lease has contravened any term or condition of the lease, the minister may, after giving the holder written notice of the minister's intention and an opportunity to be heard, cancel the lease, and all interests in any lands affected by the lease revert to the Crown.


Changed "form" to "configuration" and clarified powers of minister to place restrictions on a lease and to cancel a lease.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

204 PART VI

General

PART 11

General

No change to title.

205

NEW SaskGrid system to be used

11-1 The SaskGrid system, with any necessary modification, is to be used to determine the boundaries of mineral disposition parcels.

Added to identify boundary system.

206

NEW Deemed areas

11-2(1) In this section, “agreement” means any agreement governed by these regulations.

(2) Notwithstanding any Act or law or provision in an agreement to the contrary, in an agreement a surveyed section, surveyed quarter-section and legal subdivision as described in the SaskGrid legal subdivision feature layer, of land are deemed to contain 259.000 hectares, 64.750 hectares and 16.188 hectares respectively, unless the minister directs otherwise in a particular case.

Added to clarify that the ministry will deem acreages where no revenue allocation implications exist.

207

PNG regulations

Failure to remit royalties

No lease or assignment for royalty payer in default

11-3 No royalty payer who owes to the

Changes from The Petroleum and Natural Gas Regulations, 1969, The Helium and Associated Gases Regulations, 1964, The Oil Shale Regulations, 1964, and The


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

64(1) No person who owes to the Crown any royalty in respect of a lease of petroleum, natural gas, petroleum and natural gas, oil sands or oil shale rights shall be entitled to acquire any further lease from the Crown or acquire any further Crown lease by assignment unless settlement of such royalty is made in full.

(2) No person who owes to the Crown any royalty in respect of a lease of petroleum, natural gas, petroleum and natural gas, oil sands or oil shale rights shall assign such lease unless settlement of such royalty is made in full.

HELIUM regulations

No lease or assignment for person in default

35(1) No person who owes to the Crown any royalty shall be entitled to acquire any further lease from the Crown or acquire any further Crown lease by assignment unless settlement of such royalty is made in full.

(2) No person who owes to the Crown any

Crown any royalty with respect to a lease of petroleum, natural gas, petroleum and natural gas, oil sands, oil shale or helium and associated gases rights is entitled, until the royalty payer has paid all of that royalty:

(a) to acquire any further lease from the Crown or acquire any further lease by assignment; or

(b) to assign all or any of the royalty payer’s leases.

Lease of Spaces Regulations:

Applied to oil and natural gas, helium and associated gases, and old oil shale.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

royalty in respect of an operation for helium or associated gases shall assign any lease unless settlement of such royalty is made in full.


Royalties

29 A lessee shall pay a royalty on all oil shale products produced from any lease in accordance with The Crown Oil and Gas Royalty Regulations, and those regulations apply, with any necessary modification to the calculation and payment of royalties.


No lease or assignment for person in default

30(1) No person who owes to the Crown any royalty shall be entitled to acquire any further lease from the Crown or acquire any further Crown lease by assignment unless settlement of such royalty payment is made in full except as provided herein. (2) No person who owes to the Crown any royalty in respect of an operation for oil


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

shale products shall assign any lease unless settlement of such royalty payment is made in full except as provided herein.

208

NEW Pooling and royalties payable

11-4(1) The holder of an exploration licence or a lease, as the case may be, may pool the licensed or leased area or part of the licensed or leased area with other mineral disposition lands to complete a drainage unit.

(2) If the licensed or leased area or part of the licensed or leased area is pooled in accordance with subsection (1):

(a) the minister shall calculate the quantity of production from the mineral disposition lands in the pooled drainage unit to be allocated to the mineral disposition area on the basis of the ratio that the surface area of the mineral disposition area included in the pooled drainage unit bears to the total surface area of the mineral disposition lands in the pooled drainage unit; and

(b) the holder of the exploration

Added clause to provide details on pooling in regulation. Simplification of the drainage unit designation for pooled lands by the Petroleum and Natural Gas Division eliminated the need for addendum agreements. The minister will assign the royalty allocation.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

licence or the lease shall pay the royalties excepted and reserved in the exploration licence or the lease based on the allocation in clause (a).

209

PNG regulations

Disposition of undisposed rights by permit, exploration licence or lease

65 Notwithstanding anything contained in these regulations, undisposed Crown oil or gas rights may be disposed of by permit, exploration licence or lease whether the Crown oil or gas rights in the lands above or below the lands containing the undisposed Crown oil or gas rights are under disposition or not..

Disposition of undisposed rights by permit, exploration licence or lease

11-5 Notwithstanding anything in these regulations, undisposed rights with respect to Crown oil or gas, helium and associated gases, oil sands, oil shale or spaces may be disposed of pursuant to these regulations by permit, exploration licence or lease whether or not the rights with respect to Crown oil or gas, helium and associated gases, oil sands, oil shale or spaces in the mineral disposition lands above or below the mineral disposition lands containing the undisposed Crown rights are disposed of.


Made applicable to oil and gas, helium and associated gases, and spaces.

210

PNG regulations

Manner of applying

68 An application for a permit, exploration licence, lease or other disposition may be filed by the applicant in person or by his agent or may be sent

Deleted Changes from The Petroleum and Natural Gas Regulations, 1969, The Helium and Associated Gases Regulations, 1964, and The Oil Shale Regulations, 1964:

The new Registry part will describe the application process.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

by mail to the ministry.

HELIUM regulations

Manner of applying

36 The application for a permit or lease may be filed by the applicant in person or by his agent or may be sent by mail to the department.


Manner of applying

31 The application for a permit or lease may be filed by the applicant in person or by his agent or may be sent by mail to the department.

211

PNG regulations

Not binding until documents executed

69 No application for disposition of Crown lands shall be binding on the Crown until the document of disposition in respect of the rights applied for has been executed by the minister or any


Not relevant to the new electronic registry.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

person authorized by the minister.

HELIUM regulations


37 No application for disposition of Crown lands shall be binding on the Crown until the document of disposition in respect of the rights applied for has been executed by the minister.



32 No application for disposition of Crown lands shall be binding on the Crown until the document of disposition in respect of the rights applied for has been executed by the minister.

212

PNG regulations

Application in unsurveyed territory

70 An application for disposition in respect of Crown lands situated in an unsurveyed territory shall contain a plan and land description satisfactory to the


The SaskGrid includes a projected township grid over unsurveyed territory.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

minister.

HELIUM regulations


38 An application for disposition in respect of Crown lands situated in an unsurveyed territory shall contain a plan and land description satisfactory to the minister.



33 An application for disposition in respect of Crown lands situated in an unsurveyed territory shall contain a plan and land description satisfactory to the minister.

213

PNG regulations

Comply with Acts and regulations

71 The holder shall at all times fulfil, perform, observe and comply with The Crown Minerals Act and The Oil and Gas Conservation Act and the regulations

Compliance with Acts and regulations required

11-6 No holder of a mineral disposition shall fail to comply with:

(a) the Act and the regulations


Use the modernized version from The Petroleum and Natural Gas Regulations, 1969.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

under the Acts, and every other statute or regulation that is or may, by future enactment or amendment in any manner whatsoever, be applicable to his operation, plant, works, business or undertaking.

HELIUM regulations

Comply with Acts and regulations

39 The grantee shall at all times fulfil, perform, observe and comply with the surface rights provisions of The Petroleum and Natural Gas Regulations, 1963, The Oil and Gas Conservation Act and the regulations thereunder and every other statute or regulation that is or may be by future enactment or amendment in any manner whatsoever applicable to his operation, plant, works, business or undertaking.

made pursuant to the Act;

(b) The Oil and Gas Conservation Act and the regulations made pursuant to that Act; and

(c) any other Act or regulation that applies to the holder’s operation, plant, works, business or undertaking.

214

PNG regulations

Good practices

72 The holder shall carry out all his operations in accordance with the best accepted geological, geophysical and engineering practices applicable to such

Good practices required

11-7 No holder of a mineral disposition shall:

(a) interfere with:

(i) other oil and natural gas,


Clarified that the holder will not interfere with other exploration and development activities such as coal, potash or alkali


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

operations.

HELIUM regulations

Good practices

40 The grantee shall carry out all his operations in accordance with the best accepted geological, geophysical and engineering practices applicable to such operations.


Good practices

34 The grantee shall carry out all his operations in accordance with the best accepted geological, geophysical and engineering practices applicable to such operations.

helium and associated gases, oil sands or oil shale operations or any storage, injection or disposal operations; or

(ii) any other development operations including mining operations; or

(b) in any manner cause:

(i) damage to public or private property; or

(ii) inconvenience or nuisance.

mining activities and subsurface storage operations.

215

PNG regulations

Accurate records

73 The holder shall at all times keep accurate and detailed records, books and accounts of his operations hereunder and of the expenditures made in connection

Accurate records required

11-8 No holder of a mineral disposition shall fail:

(a) to keep accurate and detailed records, books and accounts of the holder’s operations and of the

No changes from The Petroleum and Natural Gas Regulations, 1969, The Helium and Associated Gases Regulations, 1964, and The Oil Shale Regulations, 1964.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

with such operations and shall, whenever requested by the minister to do so, submit to the administrator true copies of such records verified by affidavit.

HELIUM regulations

Accurate records

41 The grantee shall at all times keep accurate and detailed records, books and accounts of his operations hereunder and of the expenditures made in connection with such operations and shall, whenever requested by the minister to do so, furnish to the director with true copies of such records verified by affidavit.


Accurate records

41 The grantee shall at all times keep accurate and detailed records, books and accounts of his operations hereunder and of the expenditures made in connection with such operations and shall, whenever requested by the minister to do so, furnish to the director with true copies of such

expenditures made in connection with those operations; or

(b) when requested to do so by the administrator, to provide to the administrator true copies of the records, books and accounts verified by affidavit within the period specified by the administrator.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

records verified by affidavit.

216

PNG regulations

Examine records

74(1) The minister or any person authorized by him may at any time and from time to time enter upon the lands of the holder and into the office or other place where the holder’s books and records are kept and inspect and examine the operations of the holder and the plant, works, books and records used or kept in connection with or having any reference to the operations, examine samples of mineral and other substances encountered during the operations and make copies of such books and records or of any part thereof.

(2) The holder shall give or cause to be given all such assistance as the minister or the person authorized by him may reasonably require for the purpose of effecting subsection (1).

HELIUM regulations

Examination of records

11-9(1) Every holder of a mineral disposition shall make available to the minister during normal business hours at the address of the holder, or at any other place identified by the holder as a place where the records are kept, records related to:

(a) any samples of mineral or other substances encountered during the operations carried out pursuant to the terms and conditions of a permit, exploration licence, lease or other mineral disposition;

(b) the quantity and place of origin of the oil and natural gas, helium and associated gases, oil sands or oil shale produced, used, saved and marketed from the lands covered by the permit, exploration licence or lease; and

(c) any work reported in accordance with these regulations, including expenditures related to


Added consent clause from The Oil Shale Regulations, 1964 to keep old oil shale rights whole.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

Examine records

42(1) The minister or any person authorized by him may at any time and from time to time enter upon the lands of the grantee and into the office or other place where the grantee’s books and records are kept and inspect and examine the operations of the grantee and the plant, works, books and records used or kept in connection with or having any reference to the operations, examine samples of mineral and other substances encountered during the operations and make copies of such books and records or of any part thereof.

(2) The grantee shall give or cause to be given all such assistance as the minister or the person authorized by him may reasonably require for the purpose of effecting subsection (1).


Examine records

36(1) The minister or any person authorized by him may at any time and

the work.

(2) No information obtained pursuant to subsection (1) with respect to old oil shale leases shall be made available to the public without the consent of the holder of the lease.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

from time to time enter upon the lands of the grantee and into the office or other place where the grantee’s books and records are kept and inspect and examine the operations of the grantee and the plant, works, books and records used or kept in connection with or having any reference to the operations, examine samples of mineral and other substances encountered during the operations and make copies of such books and records or of any part thereof.

(2) The grantee shall give or cause to be given all such assistance as the minister or the person authorized by him may reasonably require for the purpose of effecting subsection (1).

(3) No information obtained pursuant to subsection (1) shall be made available to the public without the consent of the grantee.

217

PNG regulations

Minister’s discretion

77 The minister may refuse to:

Minister’s discretion

11-10 Unless a holder of a mineral disposition satisfies the minister that the holder is properly registered pursuant to a relevant Act to carry on business in



October 27, 2016

FORMER PROVISION(S)



EXPLANATION

(a) grant; or

(b) consent to or register the assignment or transfer of;

a permit, exploration licence, lease or other Crown disposition to a corporation or partnership unless the laws of Saskatchewan respecting the registration of corporations or partnerships have been complied with.

Saskatchewan, the minister may refuse to:

(a) issue a permit, exploration licence, lease or any other mineral disposition to the holder of the mineral disposition;

(b) consent to the assignment or transfer of a permit, exploration licence, lease or other mineral disposition to the holder of the mineral disposition; or

(c) register the assignment or transfer of a permit, exploration licence, lease or other mineral disposition to the holder of the mineral disposition.

218

NEW Ineligible disposition owners

11-11(1) The administrator may approve a transfer of an inactive or insolvent mineral disposition holder’s interest in a mineral disposition, in a manner determined by the administrator, to redistribute that interest among the remaining holders if:

(a) the status of the holder of the

Added to address situations of stranded ownership in dispositions due to bankruptcy.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

mineral disposition on the Saskatchewan Corporate Registry, or any other corporate registry as determined by the administrator, has changed from “Active” to “Inactive”, “Struck”, “Dissolved” or “Cancelled”; and

(b) an application has been made for transfer of the mineral disposition holder’s interest.

(2) On receipt of the application for transfer pursuant to clause (1)(b), the administrator shall:

(a) provide two months’ written notice to the inactive or insolvent mineral disposition holder in accordance with Section 11-13; and

(b) require the inactive or insolvent holder of the mineral disposition holder to rectify or begin to rectify the mineral disposition holder’s status on the corporate registry.

(3) If the inactive or insolvent mineral disposition holder mentioned in


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

subsection (2) does not comply with this section within two months after receiving notice pursuant to this section, the administrator may redistribute the interest of the inactive or insolvent mineral disposition holder.

219

PNG regulations

Address for service

82 Every holder shall file with the ministry an address for service in Saskatchewan unless otherwise approved.

HELIUM regulations

Address for service

50 Every grantee shall file with the department an address for service in Saskatchewan unless otherwise approved by the minister.


Address for service

44 Every grantee shall file with the department an address for service in


BA registration in the IRIS system requires contact information, so this clause not necessary.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

Saskatchewan unless otherwise approved by the minister.

220

PNG regulations

Change of name

82.1(1) A holder whose name is changed shall:

(a) give written notice of the change of name to the administrator; and

(b) provide the administrator with evidence of the change of name in a form satisfactory to the administrator;

(c) Repealed.

(2) Where a holder that is a corporation amalgamates with another corporation, the holder shall:

(a) give written notice of the amalgamation to the administrator; and

(b) provide the administrator with a certified copy of the certificate of amendment or certificate of amalgamation

Change of name

11-12(1) To ensure timely service in the registry, a holder of a mineral disposition whose name is changed shall:

(a) give written notice immediately of the change of name to the minister; and

(b) provide the minister immediately with evidence of the change of name in a form satisfactory to the minister.

(2) If a holder of a mineral disposition that is a corporation amalgamates with another corporation, the holder shall:

(a) give written notice immediately of the amalgamation to the minister; and

(b) provide the minister immediately with a certified copy of the certificate of amendment or


Changed administrator to minister.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

that:

(i) is issued to the holder pursuant to the statute that governs the corporation; and

(ii) is in a form satisfactory to the administrator;

certificate of amalgamation that:

(i) is issued to the holder pursuant to the statute that governs the corporation; and

(ii) is in a form satisfactory to the minister.

221

PNG regulations

Service of documents

83(1) Any notice or other document required by these regulations or by section 9 of the Act to be given or served is to be served, unless otherwise provided, by personal service or registered mail.

(2) Any notice or other document served on a holder by registered mail is to be addressed:

(a) in the case of a holder, to the address for service filed pursuant to section 82; and

(b) in the case of a secured party, to the address for service set out in the security

Service of notices or documents

11-13(1) Any notice or other document required by these regulations to be served may be served on a holder of a mineral disposition or on a secured party by sending a copy of the notice or document by registered mail addressed:

(a) in the case of a holder, to the address for service supplied to Petrinex; and

(b) in the case of a secured party, to the address for service set out in the security notice.

(2) A notice or other document served by registered mail is conclusively deemed to have been received on the seventh day following the day of its mailing.


The new IRIS system will allow for electronic notices to be served, but in certain situations such as notices of termination under section 9 of the Act, the administrator’s preference would be to send the notice via registered mail. Changed (1) to provide flexibility at the discretion of the administrator.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

notice.

(3) A notice or other document served by registered mail is conclusively deemed to have been received on the seventh day following the day of its mailing.

HELIUM regulations

Service of communication

51(1) In this section, “business day” means a day other than a Saturday, Sunday or holiday. (2) Any communication required by these regulations to be given or served may be given or served: (a) by personal service; (b) by ordinary or registered mail to the last known address of the person being served; or (c) on a person described in subsection (5), by electronic means. (3) A communication served by ordinary mail or registered mail is deemed to have been received on the fifth business day following the day of its mailing, unless the person to whom it is mailed establishes that through no fault of the person, the person did not receive it or that the person received it at a later date. (4) A


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

communication served by electronic means is deemed to have been received on the second business day after it is sent.


Delivery of notices

45 Any notice, document or communication required to be given or delivered pursuant to these regulations shall be sufficiently given if served upon or delivered personally to the minister or the grantee, as the case may be, or if it is mailed to the minister at Regina, Saskatchewan, or if it is left at the address filed pursuant to section 44 or mailed to the grantee at such address.

222

PNG regulations

Lost Crown dispositions

84.1(1) A holder who is unable to locate his or her copy of a Crown disposition may apply for a duplicate copy of the Crown disposition by filing with the administrator an affidavit of lost Crown disposition in a form satisfactory to the administrator, together with the fee


Once registered in the IRIS system, any disposition owner can print a search of their disposition. Regarding legacy dispositions, the hard-copy dispositions are no longer the legal entity as section 27.49 of The Crown Minerals Act confirms that the electronic information in the registry prevails over other


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

prescribed in Schedule A.

(2) The administrator may issue a duplicate copy of a Crown disposition to a holder who complies with subsection (1).

information regardless of whether the other information is contained in a document that contains an original signature or seal. However, there is the option to request certified copies of searches.

223

PNG regulations

Land description under The Land Surveys Act

85 Where reference is made to a section, quarter section or other subdivision, such section, quarter section or other subdivision shall be construed in accordance with The Land Surveys Act.

HELIUM regulations

Described under “The Land Surveys Act”

53 Where reference is made to a section, quarter section or other subdivision, such section, quarter section or other subdivision shall be construed in accordance with The Land Surveys Act.

Deleted Changes from The Petroleum and Natural Gas Regulations, 1969 and The Helium and Associated Gases Regulations, 1964:

Not required as SaskGrid is defined in Part 1.

224 PNG regulations Deleted The Crown Minerals Act provides authority for Orders.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

Orders

86 The minister or any person authorized by the minister may from time to time issue such orders as he may deem necessary for the interpretation and effective administration of these regulations.

HELIUM regulations

Orders

54 The minister from time to time may issue such orders as he may deem necessary for the interpretation and effective administration of these regulations

225

NEW Certified copies of search reports

11-14 For the purposes of section 27.55 of the Act, the minister may certify a copy of a search report requested pursuant to section 2-3 by:

(a) affixing the minister’s seal to the printout;

Added to clarify the certification process.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

(b) signing the printout; and

(c) affixing to the printout the date on which it was prepared

226

PNG regulations

Right of entry not authorized

88 A permit, exploration licence, lease or other disposition to which these regulations apply shall not authorize the holder to enter upon or use the surface of the lands described therein.

HELIUM regulations


56 A permit or lease to which these regulations apply shall not authorize the grantee to enter upon or use the surface of the lands described therein for the purpose of a well site or roadway except as provided for in Part V.

HELIUM regulations

PART V


11-15 No permit, exploration licence, lease or other mineral disposition to which these regulations apply authorizes the holder to enter on or use the surface of the lands described in the permit, exploration licence, lease or other mineral disposition.


Used The Petroleum and Natural Gas Regulations, 1969 version of this clause.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

Surface Rights

Surface

57 The surface rights regulations set forth in Part VII of The Petroleum and Natural Gas Regulations, 1963, shall be deemed to be a part of these regulations.


PART V

Surface Rights

No surface rights conveyed by disposition

46 A disposition under these regulations shall not convey any right or interest in the surface of the land under which the oil shales occur.


Compensation for surface rights

47 The grantee shall pay compensation to the owner of the surface rights for any loss


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

or damage that may be caused to the surface of the land by the grantee entering upon, locating, using or occupying such surface for his purposes.


Restricted or prohibited areas

48(1) No operator shall conduct any work with respect to oil shales on: (a) patented land, without the consent of the person named in the title issued with respect to the surface of the land as the registered owner or of any person who has the right of possession to the surface of the land; (b) land owned or occupied by the Crown in the right of Canada, without the consent of the Government of Canada; (c) occupied public land, without the consent of the person who has a right of possession under a disposition made by the Crown; (d) land within a provincial park designated pursuant to The Parks Act, without the consent of the minister responsible for the administration of that Act; (e) land within a provincial forest designated pursuant to The Forest Resources Management Act, without the consent of the minister responsible for the


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

administration of that Act; (f) land within the boundaries of a community, without the consent of the community concerned; (g) land owned or occupied by the Crown, without the consent of the Crown; (h) land defined as a restricted area by the minister. (2) In obtaining any consent required by clause (a), (c) or (g) of subsection (1), the operator shall describe accurately on a plan the location of all his operations thereon.

227

HELIUM Regulations

Royalties

34(9) The royalties required by these regulations shall be paid:

(a) subject to clause (b), by one of the following methods:


(ii) electronic transfer of funds; or

(b) in the case of any exceptional circumstances that, in the opinion of the minister, prevent payment by one of the methods mentioned in clause (a), by any

Methods of payment

11-16 Any payments required to be paid pursuant to these regulations must be paid:

(a) subject to clause (b), by one of the following methods that is chosen by the minister:


(ii) electronic transfer of funds:

(iii) cash or cash equivalent; or

Changes from The Helium and Associated Gases Regulations, 1964: Made the methods of payment clause applicable to any payments required by these regulations.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

other method acceptable to the minister. (b) in the case of exceptional circumstances that, in the opinion of the minister, prevent payment by the method or methods chosen by the minister in clause (a), by any other method acceptable to the minister.

228

New PART 12

Repeal, Transitional and Coming into Force

Similar to PART XII of The Mineral Tenure Registry Regulations.

229

NEW Sask. Reg. 559/64 repealed

12-1 The Helium and Associated Gases Regulations, 1964, being Saskatchewan Regulations 559/64, are repealed.

R.R.S. c.C-50.2 Reg 7 repealed

12-2 The Lease of Spaces Regulations are repealed.

Sask. Reg. 555/64 repealed

12-3 The Oil Shale Regulations, 1964, being Saskatchewan Regulations 555/64, are repealed.

Repealing regulations.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

Sask. Reg. 8/69 repealed

12-4 “The Petroleum and Natural Gas Regulations, 1969”, being Saskatchewan Regulations 8/69, are repealed.

230

NEW Mineral dispositions continued

12-5(1) A permit issued pursuant to “The Petroleum and Natural Gas Regulations, 1969” or The Helium and Associated Gases Regulations, 1964 that was valid on the day before the coming into force of this section is a legacy disposition as defined in clause 27.3(i) of the Act.

(2) An exploration licence issued pursuant to “The Petroleum and Natural Gas Regulations, 1969” that was valid on the day before the coming into force of this section is a legacy disposition as defined in clause 27.3(i) of the Act.

(3) A lease issued pursuant to “The Petroleum and Natural Gas Regulations, 1969”, The Helium and Associated Gases Regulations, 1964, The Oil Shale Regulations, 1964 or The Lease of Spaces Regulations that was valid on the day before the coming into force of this

Deems legacy dispositions. Similar to Section 95 of The Mineral Tenure Registry Regulations.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

section is a legacy disposition as defined in clause 27.3(i) of the Act.

231

NEW Applications received before implementation date

12-6(1) In this section, “the former regulations” means “The Petroleum and Natural Gas Regulations, 1969”, The Helium and Associated Gases Regulations, 1964 or The Lease of Spaces Regulations.

(2) The minister shall evaluate any application for a mineral disposition received pursuant to the former regulations but not processed before the implementation date in accordance with the requirements of the former regulations.

(3) Notwithstanding the repeal of the former regulations, the former regulations remain in force for the purposes of evaluating applications for a mineral disposition described in subsection (2) and issuing the mineral disposition.

(4) A mineral disposition issued in accordance with subsection (3) may be

Clarifies legacy disposition definition. Similar to Section 96 of The Mineral Tenure Registry Regulations.

Did not include The Oil Shale Regulations, 1964 as not issuing new dispositions under these regulations.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

registered as a legacy disposition.

232

NEW Coming into force

12-7 These regulations come into force on the day on which they are filed with the Registrar of Regulations

Clarifying when these regulations come into force.

233

PNG regulations

SCHEDULE “A”

HELIUM regulations

Table 1


Schedule B

Replaced. Combined fee schedules into single fee schedule in Appendix.

234

PNG regulations

SCHEDULE “D”

Forms


SCHEDULE “C”


Deleted. Changes from The Petroleum and Natural Gas Regulations, 1969 and The Oil Shale Regulations, 1964:

Forms not to be included in regulations. Will be managed on-line in new IRIS system or on website.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

SCHEDULE “D”

235

PNG regulations, Helium regulations and Oil Shale regulations

Schedules

Appendix

PART 1

Fees

New fee structure replaces over 20 service fees with a single application fee for new dispositions, confirms that self-service activities in the registry are free-of-charge, and that any services provided by the ministry that could otherwise be obtained through self-service or require historical searches are not free-of-charge.

236 Provision Description Amount ($)

237

6-3(1)

6-4(1)

6-13

8-2(1)(c)

8-10(c)

9-3(1)(c)

10-2(1)(a), (d) and (f)

Application fee for disposition $600

238

2-2

2-3

4-1

Self-service activities in the registry, including transfers, registrations and searches

No charge


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

239

2-2

2-3

2-4

4-1

11-14

Time spent by the ministry in providing a service requested by a person that is not otherwise provided for in this Appendix, including:

(i) providing a service that is otherwise a self-service activity in the registry;

(ii) preparing a historical abstract; and

(iii) preparing a copy of a record, including a certified copy of a record.

A minimum fee of $50 per application or record plus $50 for each half hour or portion of a half hour after the first hour, plus the cost of any good (DVD, flash drive, etc) and $0.25 per photocopy page or computer printout page.

240 New Part 2

Evidence of Permit Expenditures

Moved from body of regulations to Appendix

241 Activity Supporting Document Requirements Title

242

Airborne geophysical survey (a) full operational data, including types and specifications of instruments used, type of aircraft, ground and altitude control used and terrain clearance;

(b) position of all flight lines indicating direction of flight shown on a map;

(c) presentation of data in either profile or contour form or any other form best suited

Details of expenditure.


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

to determine its significance;

(d) a map including, if appropriate, indications of all anomalous instrument readings with a key to the symbols used; and

(e) a complete digital listing, as received by the holder from the contractor, unless a different format or additional data or metadata are requested by the minister.

243

Drilling and logging For wells drilled that are not subject to The Oil and Gas Conservation Act and The Oil and Gas Conservation Regulations, 2012:

(a) maps showing the location of drill holes and collars;

(b) information respecting the type of drilling and hole or core size;

(c) the collar locations;

(d) information respecting total depth, bearing and dip of the drill holes and any down hole surveys;

(e) information respecting location of

Details of expenditure


October 27, 2016

FORMER PROVISION(S)



EXPLANATION

core storage;

(f) complete geological drill logs and the name of the person who logged the core or samples;

(g) assays or analyses clearly identified as to hole or core intervals, and if no assays or analyses are provided, the reason for their absence;

(h) complete geophysical logs if run, identified as to type of equipment used; and

(i) any other type of technical information obtained from core, cuttings or logging and copies of sections.

244

Geochemical survey (a) a detailed description of field sampling and analytical techniques;

(b) relevant analytical values plotted at the sample locations on a map and contoured or presented in some other manner best suited to determine their significance;

(c) sample locations with corresponding sample identification numbers shown on a



October 27, 2016

FORMER PROVISION(S)



EXPLANATION

map; and

(d) a complete listing of final corrected topographic coordinates and associated attributes in digital form with metadata and other information as requested by the minister.

245

Geophysical ground survey (a) full operational data, including the type of instruments used, spacing of readings and ground control used;

(b) a map showing the value of each instrument reading, whether anomalous or not, plotted at the location of the corresponding observation point;

(c) a complete listing of final corrected topographic coordinates of shot-hole locations and associated attributes (e.g., shot-hole lithology) in a manner acceptable to the minister; and

(d) a presentation of data in profile or contour or any other form best suited to determine its significance, including contour maps on the most dependable and continuous reflecting horizon above, at and below the top of the Palaeozoic must be submitted if information at such levels



October 27, 2016

FORMER PROVISION(S)



EXPLANATION

is available.

246

Prospecting (a) a map of the area prospected showing locations of all traverses made and the locations at which samples were taken;

(b) a description of specialized equipment employed and the nature and level of any instrument readings taken; and

(c) a detailed description of observations made with respect to overburden, bedrock and mineralization, results obtained for all samples assayed or analysed, and conclusions arrived at.


247

Trenching and stripping (a) maps showing locations of trenched or stripped areas, the dimensions of trenches or stripped areas and the locations from which any samples were taken;

(b) a geological description of the exposed rock; and

(c) assays or analyses clearly identified with sample locations within the trenched or stripped area.
