Canada Oil and Gas Land Regulations (C.R.C., c. 1518)

63. Where, during the term of an oil and gas lease, commercial exploitation begins and the lessee has complied with

• (a) the terms of the oil and gas lease, and

• (b) the provisions of these Regulations in force at the date on which the oil and gas lease was granted,

the Minister shall, at the request of the lessee, reissue the lease for a term of 21 years from the date of the commencement of commercial exploitation.

• 64. (1) Subject to subsection (2), an oil and gas lease renewed pursuant to section 62 or reissued pursuant to section 63 shall be renewed or reissued as the case may be upon the conditions that the Minister may order and shall be subject to the provisions of these Regulations in force at the date of the renewal.

• (2) The royalty payable under an oil and gas lease reissued pursuant to section 63 shall be the same as the royalty required to be paid under the original oil and gas lease.

65. The Chief may at any time order that a well within a permit area contains oil or gas in commercial quantity.

• 66. (1) A copy of the order referred to in section 65 shall be sent by registered mail addressed to the permittee at his last known address.

• (2) The permittee shall, within one year from the date of the mailing to him of the order made pursuant to section 65, apply for an oil and gas lease of the area within which the well is located.

• 67. (1) A permittee may, within 90 days from the date of mailing the order, serve on the Minister a notice of objection setting out the reason for the objection and all relevant facts.

• (2) A notice of objection under this section shall be served by being sent by registered mail addressed to the Minister at Ottawa.

• (3) Upon receipt of the notice of objection, the Minister shall consider the order and vacate, confirm or vary the order and the Minister shall thereupon notify the permittee of his decision by registered mail.

68. Where an order has been made pursuant to section 65 and no application has been made pursuant to section 66, no person shall drill a well in that permit area within 4 1/2 miles of the well to which the order refers.

• 69. (1) Where an oil and gas lease is granted subsequent to an order made pursuant to section 65 or 67, all sections within the permit area contiguous to, but not cornering, the lease area shall be surrendered to Her Majesty.

• (2) Where an oil and gas lease is granted subsequent to an order made under section 65 or 67, all that part of the permit area not included in the oil and gas lease and not surrendered pursuant to subsection (1) may be retained under permit by the permittee.

• (3) Where part of the permit area is retained under permit pursuant to subsection (2), the permittee shall send the permit to the Chief for amendment.

• 70. (1) Where Canada lands have been held under a permit or an oil and gas lease, which permit or oil and gas lease or any part thereof has expired, been cancelled or been surrendered, the Minister shall publish in the Canada Gazette a notice of the expiration, cancellation or surrender of that permit or oil and gas lease.

• (2) The notice referred to in subsection (1) shall state

  • (a) the number of the permit or oil and gas lease; and

  • (b) whether the permit or oil and gas lease has expired, been cancelled or been surrendered.