| Copyright (c) Queen's Printer, Victoria, British Columbia, Canada | IMPORTANT INFORMATION |
1 In this Act:
"board" means the Mediation and Arbitration Board;
"boundary" means a location's surface boundary and its vertical extension;
"certificate of restoration" means a certificate issued by the commission certifying that, in the commission's opinion, all or part of a location is, restored;
"commission" means the commission established under section 2 of the Oil and Gas Commission Act;
"commissioner" means the commissioner designated under section 2 of the Oil and Gas Commission Act;
"Crown land" means ungranted Crown or public land that belongs to the government, whether or not any water flows over or covers it;
"cubic metre" means, for a volume of
(a) natural gas, that volume measured at 101.325 kPa and 15°C, and
(b) petroleum, that volume measured at 15° C;
"director" means an officer or employee of the ministry who is designated as the Director of Petroleum Lands by the minister;
"division" means the Energy Resources Division of the ministry;
"division head" means the assistant deputy minister designated in writing by the minister as having charge of the division;
"field" means
(a) the surface area underlaid or appearing to be underlaid by one or more pools, and
(b) the subsurface regions vertically beneath that surface area;
"freehold land" means land, including land comprising a right of way, station ground, yard or terminal of a railway but not including Crown land, in respect of which
(a) petroleum and natural gas is, or may be, situated, or
(b) a person has the right to work, win or carry away petroleum or natural gas;
"gas well" means a well in which casing is run and that, in the opinion of the commission, is producing or is capable of producing from a natural gas bearing zone;
"geophysical exploration" means investigation of the subsurface by seismic, gravimetric, magnetic, electric and geochemical operations and by any other method approved by the commission, but does not include the use of geophysical well logs, vertical seismic profile surveys or other surveys obtained from a well;
"holder of a location" means, in accordance with the context, a permittee, licensee or lessee;
"interest" means an undivided interest in a location;
"lease" means a subsisting lease issued under this Act;
"lessee" means a person in whose name a lease is recorded in the division records;
"licence" means, in accordance with the context, any of the following obtained under this Act:
(a) a drilling or geophysical licence;
(b) a licence to develop or use a storage reservoir;
(c) a licence to explore for a storage reservoir;
"licensee" means a person in whose name a licence is recorded in the division records;
"location" means the land described in a permit, licence or lease;
"multizone well" means a well that may be used for segregated production from, or segregated injection to, more than one zone or pool through the same well;
"natural gas" means all fluid hydrocarbons, before and after processing, that are not defined as petroleum, and includes hydrogen sulphide, carbon dioxide and helium produced from a well;
"occupant" means a person, other than the owner,
(a) in actual possession of the land surface,
(b) shown on the indefeasible or absolute title to the land surface as having an interest in the land,
(c) to whom the board has granted use of or a right of entry to or the right to take the land surface;
"officer of the division" means a person employed in the division and authorized by the division head to give an approval under this Act;
"oil sand" means sand or other petroliferous substance from which oil sand products can be produced and includes any other substance defined by the Lieutenant Governor in Council as oil sand;
"oil shale" means shale or other petroliferous substance from which oil shale products can be produced and includes any other substance defined by the Lieutenant Governor in Council as oil shale;
"oil sand products" or "oil shale products" means petroleum or natural gas and all other minerals and substances that can be produced from oil sand or oil shale in association with the production of petroleum or natural gas;
"owner" means
(a) the government for land so owned,
(b) a person registered in the land title office as the registered owner of the land surface or as its purchaser under an agreement for sale, and
(c) a person to whom a disposition of Crown land has been issued under the Land Act,
and, in relation to a well, includes a person entitled to produce and dispose of petroleum or natural gas from the well;
"permit" means a subsisting exploration permit issued under this Act;
"permittee" means the person in whose name an exploration permit is recorded in the division records;
"petroleum" means crude petroleum and all other hydrocarbons, regardless of gravity, that are or can be recovered in liquid form from a pool through a well by ordinary production methods or that are or can be recovered from oil sand or oil shale;
"petroleum well" means a well in which casing is run and that, in the opinion of the commission, is producing or is capable of producing from a petroleum bearing zone;
"pipeline" includes a pipe or system or arrangement of pipes wholly in British Columbia by which is conveyed petroleum or natural gas, or water used or obtained in drilling for or in the production of petroleum or natural gas, and property used for, with or incidental to their operation, but does not include a pipe or system or arrangement of pipes to distribute natural gas in a community to ultimate consumers;
"plant liquids" means hydrocarbon liquids recovered from natural gas other than by normal field 2 phase separation;
"pool" means an underground reservoir containing an accumulation of petroleum or natural gas, or both, separated or apparently separated from another reservoir or accumulation;
"production" means the flowing of petroleum fluid, natural gas or brine from a well to the surface for the purpose of sale or trade but does not include the flowing of petroleum fluids, natural gas or brine from a well to the surface for the purpose of evaluation of the fluid or formation properties if the petroleum fluid, natural gas or brine is not gathered and stored or shipped for sale or trade;
"recycling" means the injection and subsequent production of natural gas in a field or pool, if petroleum recovery from the natural gas is the primary mode of liquid hydrocarbon production from the field or pool;
"spacing area" means the drainage area required by this Act for, or allocated by regulation to, a well for drilling for and producing petroleum or natural gas, and includes at all depths the subsurface areas bounded by the vertical planes in which the surface boundaries lie;
"storage reservoir" means a naturally occurring underground reservoir that is capable of being used for the introduction, disposal, storage or recovery of petroleum, natural gas, water produced in relation to the production of petroleum or natural gas, waste or any other prescribed substance;
"storage well" means a well in which casing is run and that, in the opinion of the commission, is used or is capable of being used to dispose of or produce petroleum or natural gas, water produced in relation to the production of petroleum or natural gas, waste or any other prescribed substance into or from a storage reservoir;
"surface lease" includes the lease, easement, right of way or other agreement made about a land surface area by an owner;
"test hole" means a hole drilled or being drilled, to a depth and in a manner defined by the regulations, to obtain information about a storage reservoir or petroleum and natural gas resources without the production of those resources but does not include a hole drilled or being drilled for firing an explosive charge in seismic operations;
"unitized operation" means
(a) the development or production of petroleum and natural gas, the implementation of a program for the conservation of petroleum and natural gas, or the coordinated management of interests in them, or
(b) the development and operation of a storage reservoir
in, on or under a location, part of a location or a number of locations combined for that purpose under a unitization agreement under this Act;
"waste" in addition to its ordinary meaning, means waste as that term is understood in the petroleum and natural gas industry, and includes wasteful operations and the underground or surface loss of potentially recoverable petroleum or natural gas;
"water source well" means a hole in the ground drilled to obtain water for the purpose of injecting water into an underground formation in connection with the production of petroleum or natural gas;
"well" means a hole in the ground
(a) made or being made by drilling, boring or any other method to obtain petroleum or natural gas,
(b) made or being made by drilling, boring or any other method to explore for, develop or use a storage reservoir for the storage or disposal of petroleum, natural gas, water produced in relation to the production of petroleum or natural gas, waste or any other prescribed substance,
(c) used, drilled or being drilled to inject natural gas, water produced in relation to the production of petroleum or natural gas or other substances into an underground formation in connection with the production of petroleum or natural gas,
(d) used to dispose of petroleum, natural gas, water produced in relation to the production of petroleum or natural gas, waste or any other prescribed substance into a storage reservoir, or
(e) used, drilled or being drilled to obtain geological or geophysical information respecting petroleum or natural gas,
and includes a water source well;
"zone" means a stratum or strata designated by the commission as a zone generally or for a designated area or a specific well, or a stratum or strata designated by the director for the purposes of the administration of petroleum and natural gas rights or storage and disposal rights.
3 (1) The minister may, with the approval of the Lieutenant Governor in Council, authorize the spending of money appropriated by statute to construct, reconstruct or repair trails, roads and bridges to facilitate exploration, development or production of petroleum or natural gas, or both.
(2) to (5) [Repealed RS1996-361-3 (5).]
4 (1) An employee of the ministry authorized by the minister or an employee of the commission authorized by it may enter a location to examine and inspect for the purposes of this Act.
(2) A person must admit to a location an employee of the ministry or of the commission, authorized under subsection (1), to examine or inspect, and must provide that employee with the means and assistance necessary for the purpose.
5 (1) A member of the ministry must not have a monetary interest of any description, directly or indirectly, in any petroleum or natural gas property in British Columbia or in any business engaged in any phase of the petroleum and natural gas industry carried on in British Columbia.
(2) A person continuously employed by the ministry must not, directly or indirectly, have a monetary interest of a kind described in subsection (1) other than shares of a company that are regularly quoted and dealt in on a recognized stock exchange.
Part 3 — Entry, Mediation and Arbitration
6 (1) In this Part, "Crown land" means Crown land not used or occupied by or on behalf of the government and includes
(a) land granted to a railway company under an Act and used or occupied by or on behalf of the company, and
(b) land used or occupied by or on behalf of a railway company subsidized by the government.
(2) In this Part, if a disposition of surface rights of Crown land is made under the Land Act, the person to whom the disposition is made is deemed to be the owner of land in respect of those surface rights.
(3) Despite subsection (2), for the purposes of this Part, a person is not deemed to be the owner of land in respect of surface rights acquired under a disposition of surface rights of Crown land made by
(a) a permit under section 14 of the Land Act, or
(b) a licence under section 39 of the Land Act
under which the person is granted the non-intensive occupation or use or occupation and use of an extensive area of Crown land for commercial recreational purposes.
(4) For the purpose of subsection (3), the Lieutenant Governor in Council may make regulations defining "non-intensive", "extensive" or both.
7 Subject to section 9, the written consent of the commission and filing, with the Minister of Lands, Parks and Housing and with any other members of the Executive Council the Lieutenant Governor in Council designates, a plan of the Crown land the operator intends to enter, a person may enter, occupy or use, subject to terms the commission determines, Crown land to explore for, develop or produce petroleum or natural gas or explore for, develop or use a storage reservoir under this Act.
8 (1) The commission, on terms it may specify, may designate portions of Crown land, whether or not they are in a location, to be a development road for the purposes of exploring for, developing or producing petroleum or natural gas or exploring for, developing or using a storage reservoir.
(2) A holder of a location may apply for a designation under subsection (1).
(3) An application must be accompanied by the application fee, prepayment of the prescribed annual rental, and further information required by the commission.
(4) A person may not construct or use a development road except under the regulations and the terms that apply to it.
(5) Despite section 73 of the Assessment Act, a development road designated under subsection (1) must not, under another Act, be assessed or taxed as an improvement or as land or property.
9 (1) A person may not enter, occupy or use land, other than Crown land, to explore for, develop or produce petroleum or natural gas or explore for, develop or use a storage reservoir unless
(a) the person makes, with each owner of the land, a surface lease in the form and content prescribed authorizing the entry, occupation or use,
(b) the board authorizes the entry, occupation or use, or
(c) as a result of a hearing under section 20, the board makes an order specifying terms of entry, occupation and use, including payment of rent and compensation.
(2) A person who enters, occupies or uses land to explore for, develop or produce petroleum or natural gas or explore for, develop or use a storage reservoir is liable,
(a) to pay compensation to the land owner for loss or damage caused by the entry, occupation or use, and
(b) if the board so orders, to pay rent for the duration of the occupation or use.
(3) For the purposes of subsection (2) (a), if a certificate of restoration is required after the entry, occupation or use, the liability for payment of compensation ends on the date stated in the certificate.
10 A person who has, under a surface lease containing rental provisions, the right to enter, occupy or use land other than Crown land to explore for, develop or produce petroleum or natural gas or explore for, develop or use a storage reservoir must, not more than 90 days after the date the person acquires the right, submit to the board his or her name, address, a description of the land and a copy of the surface lease.
11 (1) This section applies despite a surface lease containing rental provisions made, order made or an authority given, before or after July 1, 1974, or anything done under the surface lease, order or authority.
(2) If a person has, for a continuous period of 4 years, been entering, occupying or using land to explore for, develop or produce petroleum or natural gas or explore for, develop or use a storage reservoir, that person may, or an owner of the land may, on or after the next anniversary of the making of the lease, order or authority, on giving 60 days' notice in the prescribed form by registered mail to each owner of the land and to each person who is entering or occupying the land for the purpose stated or for a connected or incidental purpose, require renegotiation of rental provisions in the surface lease, order or authority.
(3) Subsection (2) also applies if 4 years have elapsed since
(a) the completion of the last renegotiation of rentals under subsection (4), or
(b) the effective date of an order under section 12 (2).
(4) If notice is given under subsection (2) or (3), the persons giving and receiving the notice may renegotiate the rental provisions by mutual agreement.
12 (1) If rental provisions are not renegotiated under section 11 (4) within 6 months after the expiration of the notice, an owner of the land or person entering, occupying or using the land for a purpose referred to in section 11 (2) may apply in writing to the board for arbitration under section 17 (3).
(2) If an application is made for arbitration, an order may be made varying the rental provisions, or may be refused.
(3) A renegotiation or order under section 11 or this section is effective from the immediate past anniversary date of the surface lease preceding the notice and is retroactive to the extent necessary to give effect to this subsection, but in all other respects the surface lease, order or authority remains in force.
(4) Despite anything in a subsisting surface lease made before or after July 1, 1974 or the termination of the surface lease, the rentals payable under it continue to be payable until the commission has issued a certificate of restoration for the leasehold, and this subsection is retroactive to the extent necessary to give effect to its provisions.
13 (1) The Mediation and Arbitration Board is continued consisting of up to 9 individuals appointed as follows by the Lieutenant Governor in Council after a merit based process:
(a) one member designated as the chair;
(b) one member designated as the vice chair after consultation with the chair;
(c) other members appointed after consultation with the chair.
(2) A vacancy in the board's membership does not impair the right of the remaining board members or member to act.
(3) The Lieutenant Governor in Council may provide the following:
(a) the number of members to constitute a quorum;
(b) the board's duties and those of a member;
(c) [Repealed 2003-47-53.]
(d) the rules of procedure for board applications and hearings.
(4) The board may, subject to the Public Service Act, appoint employees, and designate their title, office and responsibilities, as may be required to carry out the proper business of the board, and may, despite the Public Service Act, appoint casual and temporary employees when necessary for the proper functioning of the board.
(5) [Repealed 2004-45-142.]
(6) Sections 1 to 11, 14, 17, 19 to 21, 29, 30, 32, 34 (3) and (4), 36, 38 to 42, 44, 46.3, 47 to 49, 55 to 57, 59, 60 (a), (b) and (d) to (f) and 61 of the Administrative Tribunals Act apply to the board.
15 (1) The board may sit at any place in British Columbia, and for any of its proper business purposes, enter and inspect, or authorize a board member or employee to enter and inspect, a facility, land, location or record.
(2) The board must
(a) prepare a record of every proceeding before it, and
(b) provide any person, on application during normal business hours and payment of the fee, with copies of a record in the custody of the board.
(2.1) If the board transcribes or tape records a proceeding, the transcription or tape recording constitutes part of the record of the proceeding and is deemed to be correct.
(2.2) If, because of a mechanical or human failure or other accident, the transcription or tape recording is destroyed, interrupted or incomplete, the validity of the proceeding is not affected.
(3) The board has custody of its records and of documents filed with the board in the board's proceedings.
(4) The board is responsible for drawing orders and rulings of the board, and for filing those orders and rulings with their appropriate records.
16 (1) A person may apply to the board for mediation and arbitration under this section if the person
(a) requires land to explore for, develop or produce petroleum or natural gas or explore for, develop or use a storage reservoir or for a connected or incidental purpose, and an owner of the land refuses to grant a surface lease satisfactory to that person authorizing entry, occupation or use for that purpose,
(b) is the owner of land that is entered, occupied or used for a purpose referred to in paragraph (a), and damage to the land or suffering to the owner is caused by the entry or occupation, or
(c) is a person referred to in section 129.
(2) Subject to the board's rules of procedure, the application must be made in the form the board requires and must be accompanied by
(a) an affidavit of the applicant, listing the name and address of each person directly affected, or who could reasonably be expected to be directly affected, by an order on the application, and verifying service of the application by registered mail on each person,
(b) if Crown land could reasonably be expected to be affected by an order, an affidavit verifying service of the application by registered mail on the commission and the minister responsible for the Land Act, and
(c) if the application is for the purposes of a development road or conservation scheme, a copy of the commission's approval of, or order for, the road or scheme.
(3) Subsection (1) does not apply in respect of geophysical exploration.
17 (1) If the board believes that further information is required to hear and consider the application, or that the applicant has not served every person who would be directly affected, the board may require the applicant to provide further information or serve those persons.
(2) The application is deemed not to be received until the applicant provides the board with the further information or submits an affidavit verifying service of the application on the other persons directly affected.
(3) The chair must, promptly after the board receives an application under section 12, 16 or this section, set, after consultation with the applicant and the persons most likely to be directly affected by an order on the application, the places and dates of mediation and arbitration hearings, as the case may be.
18 (1) The chair, or a member the chair designates, must summarily hear representation by or on behalf of the applicant and persons likely to be directly affected, and must act as mediator for the purpose of resolving the complaint specified in the application.
(2) If, after the first mediation hearing, the application is not withdrawn and the complaint or issue specified in the application is not resolved, the mediator may
(a) dismiss the application,
(b) set one or more mediation hearings, or
(c) if the mediator believes that the complaint or issue cannot be summarily resolved by mediation, make an order refusing further mediation hearings.
(3) If an application is made under section 16 (1), and if the mediator believes, as a result of a mediation hearing, that the applicant should be permitted to enter, occupy or use the land, the mediator may make an order under section 19.
(4) If an applicant alleges in an application made under section 16 (1) that money is due to the applicant, the mediator may, as a result of a mediation hearing, order that the amount the mediator determines be paid to the applicant by the person or persons, and in the proportions the mediator may specify.
(5) An order of the mediator under subsection (4) is not final unless every person directly affected by the order approves of it or the board confirms the order.
19 (1) A mediator may make an order permitting, subject to the terms the mediator may specify in the order, an applicant under section 16 to enter, occupy or use the land for a purpose stated in that section.
(2) Before making an order, a mediator must
(a) require the applicant to deposit with the board security in the amount, form and manner that the mediator considers necessary for the purpose of ensuring that the owners of the land will be paid any amount ordered subsequently to be paid to them,
(b) require the applicant to pay to the owners, as partial payment of the amount subsequently ordered by the board to be paid to them, an amount of money not less than 1/2 the amount of security required to be deposited, and
(c) require the applicant to serve a copy of the order on each owner of the land, and direct the manner of service.
(3) Despite subsection (2), the board, on application at any time, may require the applicant to pay to the owners under subsection (2) (b) additional amounts the board considers proper.
(4) In determining an amount of money to be paid, the board is not bound by an order of the mediator under section 18 (4) or by a requirement of the mediator under subsection (2).
20 (1) Unless the application is withdrawn or the applicant and the person who will likely be directly affected by an order approve the order of the mediator, the board must hear representation by or on behalf of the applicant and persons likely to be directly affected by an order, and must arbitrate for the purpose of resolving the complaint specified in the application.
(2) Unless the applicant and the other persons otherwise agree, the board must review an order of the mediator made under section 19, and may confirm or vary the order, subject to the terms it considers proper.
(3) Unless the applicant and the other persons otherwise agree, the board,
(a) if a mediator has made an order under section 18 (4), must review the order, confirm it or vary it in the manner and subject to the terms the board considers proper,
(b) if a mediator has not made an order under section 18 (4), must determine the amount of money to be paid to a person, as rent for occupation or use, or for damage caused, up to the date stated in a certificate of restoration, for the entry, occupation or use, and
(c) may determine the disposition of the amount remaining of the deposit required under section 19 (2) as between the applicant and the owner.
21 (1) In determining an amount to be paid periodically or otherwise on an application made under section 12 or 16 (1), the board may consider
(a) the compulsory aspect of the entry, occupation or use,
(b) the value of the land and the owner's loss of a right or profit with respect to the land,
(c) temporary and permanent damage from the entry, occupation or use,
(d) compensation for severance,
(e) compensation for nuisance and disturbance from the entry, occupation or use,
(f) money previously paid to an owner for entry, occupation or use,
(g) other factors the board considers applicable, and
(h) other factors or criteria established by regulation.
(2) In determining an amount to be paid on an application under section 12, the board must consider any change in the value of money and of land since the date the surface lease, order or authority was originally or last granted.
22 (1) If 2 years have expired since an order made by the mediator or the board authorizing entry, occupation or use of land, the applicant for the order may, on not less than 90 days' notice to the land owner, apply to the board for an order terminating the previous order.
(2) Subject to the board's rules of procedure, an application must be made in the form the board requires.
(3) On receiving the application, the chair must without delay set, after consulting the applicant and the persons likely to be directly affected by an order, a date and place of hearing.
(4) The chair, or other board members the chair designates, must summarily hear representation by or on behalf of the applicant and persons who will likely be directly affected by an order resulting from the application, and may dismiss the application, or dismiss it subject to the terms and conditions he or she considers appropriate, or make an order terminating the previous order, conditional on
(a) the removal of all equipment and facilities used in respect of and the restoration of all land directly affected by the entry, occupation or use, and
(b) obtaining from the commission a certificate of restoration in respect of the land.
(5) An application is not required if all persons likely to be directly affected by termination of the previous order agree to the termination and so long as the conditions in subsection (4) are complied with.
25 (1) If an order is made by the board, the board must provide notice of the order to the applicant and to any other persons directly affected by that order.
(2) If the board makes an order on an application under section 16 (1) (a), the applicant must not enter, occupy or use the land until the owner of the land has received a certified copy of the order.
(3) If the board makes an order authorizing or terminating entry, occupancy or use of land, the applicant for the order must file a certified copy of the order with the registrar of the appropriate land title district, who, on payment of the appropriate fees, must endorse his or her records accordingly.
(4) An order made by the board is effective on the date it is issued by the board unless the order specifies otherwise.
(5) If the board is of the opinion that because there are so many parties to an application or for any other reason it is impracticable to give notice of its final order to all or any of the parties individually, the board may give notice of its final order by public advertisement or otherwise as the board directs.
(6) If the board gives notice under subsection (5) of a final order, the notice must inform the parties where copies of the final order may be obtained.
(7) The board must provide for public access to its orders.
26 (1) An order of the mediator or board granting the right to enter, occupy or use land may be enforced in the same manner as a writ of possession issued by a court.
(2) The board may, on its own motion or on application,
(a) rehear an application before making a determination, and
(b) review, rescind, amend or vary a direction or order made by it, the chair or a board member.
28 A certified copy of an order of the board signed by the chair, or the secretary of the board if appointed, must be admitted as evidence of the order by the board.
29 An order by the board may be assigned by
(a) serving notice of the assignment on the other parties named in the order,
(b) filing a certified copy of the assignment with the board, and
(c) filing the assignment with the registrar of the appropriate land title district, who, on payment of the appropriate registration fee, must endorse against the indefeasible or absolute title of the land affected by the assignment.
30 If the owner of land in respect of which an order was made by a mediator or the board refuses to comply with the order, the applicant for the order may apply to the board to deduct from any compensation to be determined and awarded to the owner under the order an amount covering the cost of and incidental to obtaining entry on, or occupancy and use of, the land according to the order, which amount is at the sole discretion of the board.
31 The Lieutenant Governor in Council may prescribe the following:
(a) the form, manner and content of a surface lease;
(b) the form and manner of making an application to the board;
(c) factors or criteria to be used in determining compensation;
(d) development road rentals.
Part 4 — Geophysical Exploration
32 (1) A person, on the person's own behalf or for or on behalf of others, must not undertake geophysical exploration unless he or she is the holder of a subsisting geophysical licence.
(2) An application for a licence must be made to the commission.
(3) The commission may issue or renew a geophysical licence for the prescribed term on receiving an application and on payment of the prescribed fee or may refuse to issue or renew a geophysical licence.
(4) and (5) [Repealed 2002-26-26.]
33 (1) The holder of a geophysical licence must not undertake geophysical exploration unless the commission, subject to conditions it may impose, approves of the holder's application in the prescribed form for the particular geophysical exploration project.
(2) The commission may revoke an approval given under subsection (1) or may vary conditions imposed by it if it considers that the conditions or regulations have not been complied with.
(3) Despite the granting of an approval under subsection (1), an employee of the commission designated by the commission may order work on a geophysical exploration project to stop if the designated employee considers that unreasonable damage to the terrain or environment will be caused by continuation of the project.
(4) Unless confirmed or varied by the commission within 14 days after the making of an order under subsection (3), the order ceases to have effect.
(5) [Repealed 1998-39-33.]
34 A geophysical licence is not transferable except in cases of corporate merger, amalgamation or succession, and then only with the written consent of the commission.
35 (1) The commission may cancel a geophysical licence for failure to comply with this Act or the regulations.
(2) Unless a condition exists that the commission considers a danger to any person or to public or private property, the commission must not cancel a geophysical licence until the commission has given the holder at least 30 days' notice to rectify the default and the default is not rectified within the notice period.
36 (1) The commission may make regulations as follows:
(a) governing the methods and manner of geophysical exploration and the places in which it may be carried out;
(b) empowering designated employees of the commission to
(i) require persons carrying out geophysical exploration to clean up, restore and reclaim land and improvements affected by the exploration,
(ii) require those persons to post performance bonds for the due performance of the clean-up, restoration and reclamation, and
(iii) deduct or recover the costs of the clean-up, restoration and reclamation from those performance bonds;
(c) providing for reports to the commission;
(d) setting the terms for geophysical licences and renewals of geophysical licences.
(2) A regulation made under this section may provide that commission employees designated by the commission may, in writing, exempt a person from the application of all or part of the regulation, in relation to a particular geophysical exploration project and subject to specified conditions.
37 The location for which a permit is issued must be a block, except if the location is
(a) adjacent to a boundary of British Columbia,
(b) in an area in which petroleum and natural gas is reserved by the government,
(c) less than a block and approved by the minister, or
(d) in the Peace River Block or as provided for in section 124.
Division 2 — Rights, Issue, Fees, Rental
38 (1) Subject to subsection (2) and to section 32, the holder of a permit has the exclusive right to do geological work and geophysical exploration work and exploratory drilling for petroleum or natural gas, or both, on land owned by the government and in the boundaries of the location of the permit.
(2) The issue or existence of a permit does not prohibit a person other than the holder of the permit from
(a) carrying out test hole drilling in the boundaries of the location of the permit, or
(b) carrying out geological work or geophysical exploration other than test hole drilling in accordance with any regulations.
(3) A person who does test hole drilling described in subsection (2) must not interfere with the operations of the holder of the permit for the location on which the drilling is done.
39 An application for a permit must be made in writing in the form prescribed, to the director at Victoria, accompanied by the prescribed fee and rental.
40 (1) A permittee must pay a rent prescribed by the Lieutenant Governor in Council for the permit and renewal of the permit, and the rent may be different for different classes of permits and for different years while the permit or renewal of the permit is in force.
(2) The Lieutenant Governor in Council may prescribe fees for obtaining a permit or renewal of a permit.
41 (1) The minister may issue or refuse to issue a permit, whether or not the requirements of this Act have been complied with, and the minister's refusal is final.
(2) If the minister refuses to issue a permit under this section, the fees that accompanied the application for it may, and the rental that accompanied the application must, be refunded to the applicant.
Division 3 — Drilling Restrictions and Work Requirements
42 (1) The director must classify each permit, when it is issued, as a Class A, Class B, Class C or Class D permit.
(2) The director must, in classifying each permit, have regard for the comparative accessibility of the location for which the permit is to be issued, and the terrain of the location as it is likely to affect exploration for petroleum and natural gas.
(3) A permit must not be classified as a Class D permit unless not less than 3/4 of the area of the location is continually covered by water.
(4) An appeal lies to the minister from a classification by the director, and the minister may confirm the classification or give the permit a different classification.
(5) A confirmation or classification by the minister under this section is final.
43 (1) The Lieutenant Governor in Council may prescribe that permittees must do or cause to be done, work consisting of geological work, geophysical exploration or exploratory drilling, and may make regulations respecting
(a) the approval, performance and recording of that work, or
(b) the performance of other work in place of that work.
(2) The regulations may prescribe the monetary value of the work, and that value may be different for different classes of permits and for different years while the permit or renewal of the permit is in force.
44 (1) A permittee who has not done or caused to be done the work required by the regulations may have his or her permit renewed as if he or she had done the work if the permittee
(a) pays to the director an amount equal to the value of the work not done, or
(b) submits to the director a written undertaking to do the work not done together with the work required to be done for the next year, together with a deposit of money or securities, or both, equal to the value of the work not done and satisfactory to the director.
(2) When a permittee has done the work that he or she has undertaken to do under this section, and the work is approved, the permittee is entitled to a refund of the money or securities, or both, deposited by the permittee.
45 (1) Subject to subsections (3) to (7), if a permittee fails to do work that he or she has undertaken in writing to do under section 44, the director may cause to be forfeited to the government all or part of the deposit of money or securities, submitted under that section.
(2) The amount to be forfeited under subsection (1) must be decided by the director in his or her sole discretion.
(3) A permittee who has not done work that he or she has undertaken under section 44 to do may pay to the director cash in an amount equal to the sum of the value of the work not done and a penalty equal to 1/10 of that value.
(4) The permit of a permittee referred to in subsection (3) may, on making the payment under that subsection, be renewed as if the permittee had done or caused to have been done the work not done.
(5) For the purpose of obtaining a lease, a permittee who has not done the work that he or she has undertaken under section 44 to do may pay to the director cash in an amount equal to the amount deposited under that section and forfeit the rental for the period elapsed since the last anniversary of the date of issue of his or her permit.
(6) For the purposes of section 52, the permit is, on the making of the payment under subsection (5), deemed to be valid, and the lease or leases must be dated and begin as of the last anniversary of the date of issue of the permit.
(7) For the purpose of obtaining a lease, a permittee who has not done work required under conditions imposed by the minister under section 47 (5) may forfeit to the director the rental for the period referred to in subsection (5) of this section with the effect provided in subsection (6) of this section.
46 (1) If a grouping notice in the form prescribed is recorded, work done in accordance with the regulations on the location of a permit may be considered to have been done in that location and locations of other permits not exceeding 30 blocks in area and that are contiguous or each of which lies partially or wholly within a circle having a radius of 80 km, or whatever greater area or radius may be approved by the minister before the commencement of the work to be done.
(2) A location must not be included in more than one grouping notice during the period that elapses between anniversaries of the date of issue of the permit.
(3) Subsection (1) does not apply after the permit holder whose location is comprised in a notice under that subsection notifies the director that the notice is no longer effective.
47 (1) A permit expires at the end of the anniversary of the date of issue or of its last renewal.
(2) An application for renewal must be made to the director who must not accept the application unless
(a) it is accompanied by the prescribed fee and rental for the location of the permit for the next year, and
(b) it is received by the director before the expiration of the permit or within the time set out in subsection (7) and is accompanied by the fee established by that subsection.
(3) An application is also not acceptable unless accompanied by
(a) an affidavit of expenditure made for work done under this Part and having as exhibits a report and map displaying the detailed factual data obtained from the geological or geophysical examination, detailed logs, well history report and other information as may be required on all exploratory work referred to in the affidavit,
(b) an affidavit of estimated expenditure made for work done under this Part together with an undertaking satisfactory to the director to file with the director, in the time he or she sets, the documents that would otherwise have been exhibits under paragraph (a), or
(c) a payment of money under section 44 (1) or a written undertaking and deposit under that subsection.
(4) A permit in Class A or Class B must not be renewed
(a) more than 4 times except on the authorization of the minister, or
(b) more than 7 times under any circumstances.
(5) A permit in Class C or Class D must not be renewed more than 7 times except on the authorization of the minister and in accordance with the rentals, terms and conditions the minister may impose.
(6) The minister may authorize a renewal under subsection (4) (a) or (5) for a period of less than one year, in which case the fee and rental must be prorated.
(7) A permit must not be renewed or converted to a lease under section 51 after the anniversary of the date of issue or of its last renewal except on payment of a penalty of
(a) $100 if the application is received by the director before the expiration of 10 days after that anniversary, or
(b) $500 if the application is received by the director after the expiration of 10 days but before the expiration of 60 days after that anniversary, but not after that under any circumstances.
48 If a permittee has, in any year, done or caused to be done and recorded work in excess of that required under the regulations, and details of expenditure for it made have been included in an affidavit filed under section 47, the excess work is deemed to have been done in one or more of the 3 years immediately following the year in which it was done.
49 At the request in writing of a permittee, on renewal of a permit the location may be reduced
(a) to a block or blocks described in section 124, or
(b) if the location is not made up of blocks, to an area approved by the minister.
Division 1 — Rights Under Leases, Applications and Issue
50 (1) A lease shall be a petroleum and natural gas lease.
(2) The holder of a petroleum and natural gas lease has
(a) the exclusive right to produce, in accordance with this Act, both the petroleum and natural gas from the location of the lease, and
(b) subject to any rights conferred under a storage lease issued under section 130 before the lease under this section is issued, the right to store or dispose of natural gas, water produced in relation to the production of petroleum or natural gas or other substances associated with petroleum or natural gas exploration, production or processing into an underground formation in the location of the lease.
(3) The issue of a lease terminates the validity of a permit for the location of the lease.
51 An application for a lease must be made to the director in the form prescribed and is not valid unless
(a) the application is accompanied by the prescribed fee and rental,
(b) the applicant provides the information the minister requires,
(c) the applicant has complied with this Act, and
(d) the application is approved by the director.
52 (1) Subject to sections 55 and 56, a permittee may, during the term of the permit, apply for a lease with a location having a total area in and not larger than 1/2 the area of the location of the permit.
(2) A permittee who, in the opinion of the minister has discovered petroleum in the course of drilling a well, when instructed by the minister to do so, must apply, on or before a date set by the minister, which must not be earlier than 3 months after the date of the instruction, for a lease, the location of which is to include the well site.
53 (1) The minister may issue and continue leases only in accordance with this Act and the regulations, and may refuse to issue a lease to a person other than a permittee or licensee who has complied with this Act.
(2) The minister's refusal under subsection (1) is final.
(3) The minister must not issue or continue a lease to or for an applicant who, in the belief of the minister, is indebted to the government for royalties, taxes or rental with respect to petroleum or natural gas.
(4) If the minister refuses to issue or continue a lease, the fees and rental that accompany the application must be refunded.
54 The Lieutenant Governor in Council may make regulations respecting
(a) annual rental payments for leases,
(b) the circumstances under which and the amounts by which reductions in lease rental payments may be made,
(c) the manner of making applications for a reduction, and
(d) the powers of the minister and the director in relation to the circumstances referred to in paragraph (b).
55 (1) The location of a lease must have 4 boundaries, and the dimensions of the lease must be 2 units by 2 units, 2 units by 4 units, 4 units by 4 units, 4 units by 6 units, 4 units by 8 units or 6 units by 6 units, unless the location is
(a) in the Peace River Block or in an area provided for in section 124, or
(b) to be the location of a lease issued under section 71 or 72.
(2) The boundaries of the location of a lease to which subsection (1) applies must, unless otherwise approved by the director, coincide with the boundaries of natural gas well spacing areas.
(3) The location of a lease must either corner, or be separated from, the location of every other lease issued from the same permit by a distance not less than the width or length of 2 units.
(4) The permittees of adjoining permits may agree to a lease, or concentration of leases, along the mutual boundaries of the locations of 2 or more permits, but the lease, or concentration of leases, must not exceed the dimensions set out in subsection (1).
(5) A permittee and the holder of an adjoining location may agree to a concentration of leases along the common boundaries of their locations but the dimensions of the lease issued from the permit must not exceed 3 units by 4 units.
(6) Despite subsection (4), if the boundary of the location of a permit coincides with a boundary of British Columbia, a boundary of the location of any lease derived from the location of the permit may coincide with that boundary of British Columbia.
(7) If, because of the shape and dimensions of the location of a permit, the permittee is unable to apply for leases with locations that enable the permittee to obtain the area to which he or she is entitled under this Act, the minister may grant leases with locations that do not meet those requirements but that do not exceed in size the largest location that may otherwise be specified in a lease.
56 (1) This section applies only to a petroleum and natural gas lease the location of which
(a) was derived from a location of a permit for which the requirements have not been fulfilled under sections 43, 44 and 45 for the fourth renewal, or
(b) was not in a location of a permit held by the applicant for the lease.
(2) There must be included in every lease specified in subsection (1) a requirement that, during the time specified in the lease, the lessee will complete the work required to be completed during the first 5 years of a permit having a minimum sized location and of the same classification as those in the immediately surrounding area.
(3) This section does not apply to a disposition made under
(a) section 71 or 72, or
(b) a regulation under section 133 (2) (e).
57 (1) If a grouping notice in the prescribed form has been recorded with the director, exploratory work done on the location of a petroleum and natural gas lease may be considered to have been done anywhere in that location and the location of other petroleum and natural gas leases, each of which lies partially or wholly within a circle having a 20 km radius, and all of which occupy not more than 144 units.
(2) If a program of exploratory work beyond the boundaries of locations described in the grouping notice has been approved by the director before the commencement of the work, that work may be considered to have been done within the boundaries of the locations.
(3) The identity of the locations on which it is intended to do work under subsection (1) must be included in the notice to the director, and the same location must not be included in more than one notice during the period that elapses between anniversaries of the date of lease issue.
(4) Subsection (1) does not apply after the holder of a lease the location of which is comprised in a notice under that subsection notifies the director that the notice is no longer effective.
(5) A location on which exists a well capable of production must not be included in a grouping notice.
(6) This section does not apply to a lease after the initial term of the lease expires.
Division 5 — Term and Continuation
58 (1) In this section, "eligible spacing area" means a spacing area that
(a) contains a petroleum well or a gas well,
(b) is subject to a scheme approved under section 100,
(c) in the opinion of the director, covers, to the extent of at least one half of its area, a pool of petroleum or natural gas that has been delimited, or
(d) in the opinion of the director, may be adequately drained by a petroleum well or a gas well situated on a contiguous spacing area.
(2) A lease issued under section 52 from a Class A permit, or issued in respect of a location situated wholly or partly in a prescribed area, expires on the fifth anniversary of the date it is issued, but any other lease expires on the 10th anniversary of the date it is issued.
(3) If a lease expires, whether after its initial term or after a continuation by the director under this section or section 61.1, the director must, on application by the lessee made not later than 60 days after the expiry of the lease,
(a) continue the lease for one year in respect of any eligible spacing area included in the location of the expired lease,
(b) if the lease is subject to a unitization agreement under section 114 or to an agreement under section 78 to establish the amount of royalty to be paid, continue the lease for one year in respect of the parts of the location of the lease that are subject to the unitization agreement,
(c) if the division head approves a yearly program of exploratory work designed to delimit a pool, or a field of petroleum or natural gas, continue the lease for one year in respect of all or part of its location, or
(d) if the drilling of or work on the establishment of a well is incomplete on the expiry date of the lease and the director is satisfied that the drilling or work will continue if the lease is continued, continue the lease for one year.
59 (1) If a lease or part of a lease is continued under section 58 (3) (a) or (b), the petroleum and natural gas rights granted by the lease that are stratigraphically outside the zone or zones known by the director to be capable of production in the lease or part of the lease revert to the government when that continuation begins.
(2) If a lease or part of a lease is continued under section 58 (3) (c) or (d), the petroleum and natural gas rights not continued revert to the government when that continuation begins, subject to the lease or part of the lease being continued under section 58 (3) (a) or (b) and the application of subsection (1) of this section.
59.1 (1) Despite section 59, this section continues to apply to a lease
(a) that was issued under section 64 or 71 before March 29, 2007,
(b) that is issued from a permit or a drilling licence that was issued before March 29, 2007, if the location of the lease is within or coincides with the location of the permit or the drilling licence, or
(c) that is issued under section 64 from a lease described in paragraph (a) or (b) of this subsection.
(2) If, at the relevant time referred to in this subsection, a lease is continued under section 58, the petroleum and natural gas rights granted by the lease that are stratigraphically below the base of the deepest zone known by the director to be capable of production in the lease or the part of the lease revert to the government and do not continue under the lease
(a) in the case of a 5 year lease, on the expiration of its initial term,
(b) in the case of a 10 year lease, on the expiration of its initial term,
(c) in the case of a 10 year lease that is a renewal of a 21 year lease, on the expiration of its term, and
(d) in the case of a 21 year lease, on the expiration of its initial term.
(3) If, at the relevant time referred to in subsection (2), all or part of the lease is being continued under section 61 or 62, subsection (2) applies to that lease for the part so continued on the date on which the continuation ceases under section 61 or 62, as the case may be.
60 (1) If the minister believes a lease location is not being developed sufficiently, the minister may, except during the 3 years after the date of issue of the lease, require the holder of the lease to submit, within 30 days from the date of the request, a plan for the development of the lease location.
(2) If the holder of a lease does not comply, or if the minister believes that a development plan submitted is not adequate for the purposes of developing a lease location, the minister may give notice to the holder requiring the holder to begin the drilling of a well on the lease location.
(3) A notice under subsection (2) may specify a spacing area in the lease location in which the well is to be drilled, the depth to which the well is to be drilled and the time within which the drilling of the well is to begin but in specifying the period of time to begin the drilling, the minister will give regard to the accessibility of the lease location, and to the availability of drilling equipment, and in no event must the notice be less than 3 months.
(4) On receiving the notice the lease holder must
(a) begin drilling the well on the location of the lease and in the time specified in the notice and after that continuously and diligently drill the well, or
(b) surrender all of the location of the lease except eligible spacing areas as defined in section 58 (1) or 61.1 (1).
(5) If a well has been drilled pursuant to a notice and has been abandoned or completed, the minister may at any time, except during the 6 months following the date of the abandonment or completion, order the drilling of another well on the lease location.
61 (1) If, before the expiry of a lease, the lessee undertakes in writing to drill a well on the location of the lease, the director must continue the lease for a further period of one year.
(2) If a lease has been continued under subsection (1), the director may, before it expires and subject to subsection (3), again continue it for a period of one year, beginning at the expiry of the year referred to in subsection (1).
(3) Subsection (2) does not apply if drilling ceases during the one year continuation under subsection (1), unless the lessee undertakes in writing, addressed to the director, to drill another well on the location of the lease.
(4) If the lessee fails to honour an undertaking given under subsection (1) or (3), the director may cancel the lease.
(5) If a well referred to in this section is completed as a petroleum well or a gas well, section 58 (3) applies in respect of the location where the well is situated.
61.1 (1) In this section:
"eligible disposal well" means a well that is used or planned to be used to dispose of water, carbon dioxide or other waste fluids associated with petroleum or natural gas exploration, production or processing;
"eligible lease" means a lease for a location that includes all or part of an eligible spacing area;
"eligible spacing area" means a spacing area, other than a spacing area that is subject to a scheme approved under section 100, that
(a) contains an eligible disposal well,
(b) is, in the opinion of the director, planned to contain an eligible disposal well, or
(c) is, in the opinion of the director, likely to be needed in relation to an existing or planned eligible disposal well that is situated on a nearby spacing area.
(2) If an eligible lease expires, whether after its initial term or after a continuation under this section or under section 58, 61 or 62, on application by the lessee made not later than 60 days after the expiry of the lease, the director may continue that lease for one year in respect of one or more zones in the eligible spacing area that the director considers are appropriate in relation to the relevant existing or planned eligible disposal well.
(3) If all or part of an eligible lease is continued under this section, the petroleum and natural gas rights granted by the lease that are stratigraphically outside the zone or zones identified by the director under subsection (2) revert to the government when that continuation begins, subject to any continuation under section 58.
62 (1) In this section, "10 year lease" means a lease that, under section 58 (2), expires on the 10th anniversary of the date it is issued.
(2) The term of a 10 year lease not continued under section 58, 61 or 61.1 may be continued in respect of all or part of its location for a maximum of 3 years on payment to the government of the rental in accordance with the regulations, and of a penalty of $15 for the first year or $25 for the second and third years multiplied in each case by the number of hectares in the lease location.
63 Despite sections 58, 61, 61.1 and 62, if a lessee fails to pay the rental or do work required under section 56, the lease expires 60 days after the date the rental was payable unless on or before the 60 days have elapsed, the lessee pays
(a) the rental and does the work, and
(b) in addition, as a penalty for each 30 day period or portion of a period that he or she is in default, a sum equal to 1.5% of the rental and value of the work.
64 With the approval of the minister, a lease may be surrendered in whole or in part at any time, and a new lease issued.
65 (1) For the purposes of this Act, British Columbia, except where insufficient area exists adjacent to its boundaries, is divided into normal spacing areas for petroleum and natural gas wells as follows:
(a) each unit is a normal spacing area for petroleum wells;
(b) the boundaries of a spacing area for a natural gas well in the Peace River Block coincide with the boundaries of each section, and the boundaries of a spacing area for a petroleum well coincide with the boundaries of each quarter section;
(c) in areas other than the Peace River Block
(i) a normal spacing area for a natural gas well consists of an area comprising 2 units by 2 units, and
(ii) the pattern of normal spacing areas for natural gas wells is based on an initial 4 unit area centred on a corner common to any 4 blocks.
(2) Subsection (1) does not apply to a well drilled only for the exploration, development or use of a storage reservoir.
65.1 (1) If the minister is satisfied that it would facilitate petroleum or natural gas exploration and development, the minister may
(a) make regulations specifying other than normal spacing in an area of British Columbia, or
(b) on application or on the minister's own initiative, by order, specify other than normal spacing for a parcel of land or location.
(2) The commission, by order, may approve or on its own initiative may specify other than normal spacing for a pool or portion of a pool on a parcel of land or a location if the commission is satisfied that it would facilitate drilling and production operations.
(3) A regulation or order under subsection (1) or (2) must specify target areas within each other than normal spacing area and may specify methods of determining and conditions that apply to that spacing.
(4) Other than normal spacing, as specified under subsection (1) or (2), may be varied by the commission in accordance with the terms and conditions of a scheme approved under section 100.
66 If a parcel of Crown reserve that contains other than a normal spacing area for a natural gas well is acquired, the minister, on application by an owner, may designate in that parcel other than a normal spacing area for a natural gas well.
67 (1) If a location contains other than a normal spacing area for a natural gas well, the commission may issue a well authorization for the drilling of a natural gas well on it, but production may not be taken from the location until it is pooled with adjoining areas to form a normal spacing area or a spacing area prescribed or ordered under section 65.1.
(2) Subsection (1) applies to land referred to in section 85 (c) (ii) as if it were a location.
68 (1) Two or more holders of locations in a spacing area may pool their locations for purposes of joint development of the spacing area or joint operation of a well in the spacing area, or both.
(2) If locations are not pooled by agreement, the minister, either on the minister's own initiative or on application by a holder, may invite submissions from interested parties for the purpose of determining whether or not the locations should be pooled.
(3) After reviewing the submissions, the minister may refuse to make an order, or the minister may
(a) order that the locations, or parts of the locations, as the minister may designate, be pooled,
(b) order that a well be drilled and operated, or, if drilled, that it be operated,
(c) designate a person the minister considers appropriate for the purpose of carrying out an order, designation or requirement under this section,
(d) specify the proportions in which holders share petroleum and natural gas produced,
(e) specify the proportions in which holders share the costs of drilling, operating and abandoning the well, and
(f) specify the manner and time in which, and the conditions subject to which, petroleum and natural gas produced from the pooled locations must be sold.
(4) If locations are pooled, the drilling, operating and abandoning of the well, and the production of petroleum and natural gas from the well, are deemed to be carried out, in the proportions referred to in the pooling agreement or order, on the location of each holder.
(5) The minister may make a pooling agreement on behalf of the government on the terms the minister believes proper.
69 (1) If petroleum and natural gas in a spacing area is reserved in part to persons other than the government, those persons, or the holder of a location in the same spacing area, may apply to the board for an order that all petroleum or natural gas or both in that spacing area be pooled.
(2) The board must include in the order terms and conditions respecting the pooling that it considers necessary.
70 The following petroleum and natural gas is reserved to the government:
(a) petroleum and natural gas in fractional areas of less size than 2 units by 2 units, except in the Peace River Block;
(b) petroleum and natural gas in fractional areas of less than a section in the Peace River Block;
(c) petroleum and natural gas in the location of a permit that does not become included in the location of a lease;
(d) petroleum and natural gas in the location of a cancelled, reverted or abandoned permit, drilling licence and lease;
(e) petroleum and natural gas in those areas the Lieutenant Governor in Council may designate;
(f) petroleum and natural gas in the location of a drilling licence that does not become included in the location of a lease;
(g) petroleum and natural gas rights that are surrendered, forfeited or escheated to the government.
71 (1) The minister may dispose of Crown reserves of petroleum and natural gas, oil sand, oil sand products, oil shale and oil shale products under terms the minister sees fit.
(2) A disposition under this section must be by public auction or public tender, not sooner than 2 weeks after publication of a notice of the intended disposal in the Gazette.
(3) Unless otherwise directed by the minister,
(a) a lease issued under this section is subject to the terms of this Act as though it had been applied for and issued under Part 6, and
(b) a permit issued under this section is subject to the terms of this Act as though it had been issued under Part 5.
72 (1) The minister may, by order, withdraw Crown reserves referred to in section 71 (1) from disposition under that section.
(2) Crown reserves withdrawn under subsection (1)
(a) remain withdrawn until the withdrawal order is cancelled by the minister, and
(b) may be
(i) developed, managed or disposed of by the minister in accordance with the terms and for the price approved by the Lieutenant Governor in Council, or
(ii) disposed of in accordance with regulations under subsection (3).
(3) The Lieutenant Governor in Council may make regulations for the purposes of subsection (2) (b) (ii), including regulations respecting one or more of the following:
(a) who is authorized to make a disposition;
(b) the process by which all or part of a reserve is to be offered for disposition;
(c) criteria that must or may be applied in making dispositions, including criteria respecting
(i) environmental values,
(ii) technological innovation,
(iii) community interests,
(iv) First Nations considerations,
(v) long-term economic planning,
(vi) the purpose for which the spacing area is to be used, and
(vii) other matters that the Lieutenant Governor in Council considers are in the public interest;
(d) the manner and form of dispositions;
(e) the price to be recovered by the government from a disposition or how that price is to be determined;
(f) restrictions and conditions on which the authority to make dispositions may be exercised;
(g) terms and conditions that must or may be included in the disposition.
(4) Regulations under subsection (3) may do one or more of the following:
(a) confer a discretion;
(b) provide authority for a person authorized under subsection (3) (a) to delegate that authority to another person;
(c) be different for different areas, types of reserves, zones, proposed purposes of a spacing area and proposed uses of a reserve.
72.1 (1) The minister must appoint an employee of the ministry as the royalty administrator.
(2) The Minister of Provincial Revenue must appoint an employee of his or her ministry as the royalty collector.
73 (1) Royalties are reserved to the government on petroleum and natural gas produced from any location held under this Act.
(2) The Lieutenant Governor in Council may prescribe the royalty that is payable to the government for petroleum and natural gas and, without limiting that power, the Lieutenant Governor in Council may make regulations respecting
(a) royalties in different amounts for different classes of petroleum or natural gas,
(b) the person or class of person required to pay the royalty,
(c) the assessment and reassessment of royalty,
(d) appeals from assessment or reassessment of royalty,
(e) refunds of royalty,
(f) exemptions from payment of royalty,
(g) time limits and time periods related to royalties including assessments, reassessments, appeals, refunds or exemptions and including different time limits and time periods for different classes of persons,
(h) the classification of petroleum or natural gas by any factors or characteristics including qualities, locations or dates of initial production, and
(i) the calculation and payment of interest on overpayment of royalty.
(3) For the purposes of the regulations made under subsection (2), the Lieutenant Governor in Council may delegate powers to, and confer discretionary powers on, one or both of the following:
(a) the royalty administrator;
(b) the royalty collector.
(4) Section 16 of the Financial Administration Act does not apply to refunds of petroleum and natural gas royalty payments.
74 (1) Every person required to pay royalty must, on or before a prescribed date,
(a) pay any royalty due, and
(b) file and complete a report in the form and manner required by the director.
(2) A person required to pay royalty who fails to pay royalty when it is due must pay interest on the amount of the unpaid royalty as prescribed by the Lieutenant Governor in Council.
(3) If a person pays more money by way of royalty than the person is required to pay under this Part, the government may calculate interest on the overpayment as prescribed and may
(a) refund the overpayment plus interest to the person, or
(b) credit the person's royalty account with the amount of the overpayment plus interest.
(4) Interest under subsection (3) (a) may be paid out of the consolidated revenue fund.
(5) If a person required to pay royalty fails to comply with subsection (1) (b), the person must, in addition to any royalty payable, pay the prescribed penalty.
75 (1) A person authorized by the deputy minister for any purpose related to the administration or enforcement of this Act may, by registered letter or by a demand served personally, require from any person any information or additional information, or the production of any records, within any reasonable time he or she stipulates, if it is reasonable to make the demand in order to determine liability or possible liability to pay the royalty under this Act.
(2) If it is shown to the satisfaction of a justice on information in writing sworn by a person authorized under subsection (1), that
(a) there are reasonable grounds to believe that any records relating to the determination of the amount of royalty payable under this Act are kept at a place identified in the sworn information, or
(b) any other thing that affects the amount of royalty payable under this Act is kept or used or to be found at such place,
and that
(c) a demand under subsection (1) has not been complied with or has not been fully complied with or is, if made, likely to be refused, or likely to defeat the object of the demand, or
(d) the records contain or the thing will provide or constitute evidence of an offence under this Act,
then the justice may by warrant under his or her signature in the form under the Schedule to this Act authorize that person to enter that place and to search for and seize those records, and to inspect, examine, measure and evaluate that thing.
(3) A warrant issued under this section continu