54. (1) On application to the Minister, a permittee, the holder of an exploration agreement or the holder of a special renewal permit shall be granted an oil and gas lease.

(2) An oil and gas lease shall not be granted under this section

• (a) to a person unless the Minister is satisfied that he is a Canadian citizen over 21 years of age, and that he will be the beneficial owner of the interest to be granted;

• (b) to a corporation incorporated outside Canada; or

• (c) to a corporation unless the Minister is satisfied

  • (i) that at least 50 per cent of the issued shares of the corporation is beneficially owned by

    • (A) persons who are Canadian citizens,

    • (B) corporations that meet the qualifications set out in subparagraph (ii), or

    • (C) both such persons and corporations,

  • (ii) that the shares of the corporation are listed on a recognized Canadian stock exchange and that Canadians will have an opportunity of participating in the financing and ownership of the corporation, or

  • (iii) that the shares of the corporation are wholly owned, directly or indirectly, by a corporation that meets the qualifications outlined in subparagraph (i) or (ii).

55. (1) The land to be included in an oil and gas lease granted pursuant to section 54 shall be selected by the permittee from his permit area.

(2) The Minister shall not grant an oil and gas lease pursuant to section 54 for more than one-half of the number of sections in the permit area held by the applicant.

(3) An oil and gas lease granted pursuant to section 54 shall commence on the day the application is received by the Chief.

56. (1) Every application for an oil and gas lease shall be made on a form approved by the Chief and shall be accompanied by

• (a) the fee set out in Schedule I;

• (b) the rental required by section 78; and

• (e) a diagram and description of the area for which the application is made.

(2) The application shall be delivered in person or be sent by registered mail to the office of the Chief in Ottawa.

(3) The Chief shall cause to be endorsed on each application the date and time that the application is received.

57. (1) The Minister may grant an oil and gas lease or call tenders for the purchase of an oil and gas lease for Canada lands

• (a) that have been held under a permit or oil and gas lease, which permit or oil and gas lease has expired, been cancelled or been surrendered;

• (b) referred to in subsection 17(3); or

• (c) that are a combination of the lands referred to in paragraphs (a) and (b) or either of them.

(2) All oil and gas lease granted pursuant to this section may be granted upon such terms and conditions as the Minister may order.

(3) A call for tenders under this section shall

• (a) be advertised in the Canada Gazette and in such other manner as the Minister considers advisable at least 30 days before the date fixed for the closing of tenders; and

• (b) state the terms and conditions upon which the tender is called and upon which the oil and gas lease is to be granted.

(4) Where tenders are called pursuant to this section and

• (a) no tender is received, or

• (b) a tender has been received and the Minister has refused to accept that tender,

the Minister may dispose of those lands by an oil and gas lease pursuant to this section in such manner and upon such terms as the Minister may determine.