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

124. (1) Where the Minister or a person designated by the Minister is satisfied that a significant discovery has been made on any Canada lands in respect of which a permit or a special renewal permit has been granted or an exploration agreement has been entered into, he may make a declaration in writing that a significant discovery has been made on those lands and on any adjacent lands into or under which he has reasonable grounds to believe that the discovered deposit may extend and the declaration shall specify the grid area or areas overlying the lands on which the significant discovery was made and into or under which the discovered deposit extends.

(2) A person who has reason to believe that a significant discovery has been made on or adjacent to any Canada lands in respect of which he has entered into an exploration agreement or holds a permit or a special renewal permit may apply to the Minister or a person designated by the Minister for a declaration that a significant discovery has been made on those lands, and if the Minister or the person designated by the Minister is satisfied that a significant discovery has been made, he shall make a declaration thereof in writing, and the declaration shall specify the grid area or areas overlying the lands on which the significant discovery was made.

(3) Where, based on the results of further drilling, the Minister is satisfied that a discovery in respect of which a declaration has been made pursuant to subsection (1) or (2) is not a significant discovery in respect of the whole or any part of the area to which it relates, the Minister may revoke in writing the declaration in respect of the whole or such part of the area.

(4) A copy of a declaration of a significant discovery made under subsection (1) or (2) and of any revocation made under subsection (3) shall be published in the Canada Gazette and

• (a) shall be sent by registered mail to each person who has entered into an exploration agreement or to whom a special renewal permit or permit has been issued in respect of lands to which the declaration relates;

• (b) may be sent by registered mail to any person who has entered into an exploration agreement or to whom a special renewal permit or permit has been issued in respect of land adjacent to the land to which the declaration relates; and

• (c) in the ease of a special renewal permit in respect of which Petro-Canada Limited might otherwise have had the right accorded to it by section 121, shall be sent by registered mail to Petro-Canada Limited.

(5) Before making any revocation under subsection (3), the Minister or a person designated by the Minister shall give notice in writing to the persons intended to be affected thereby of not less than 14 days or of such longer period as he considers appropriate in the circumstances, specifying the revocation proposed to be made.

(6) Within 14 days after a notice is given under subsection (5), any person receiving the notice may, in writing, request a hearing and on receipt of such request the Minister or a person designated by the Minister shall appoint a time and place for a hearing and give notice thereof of not less than 7 days to the person who requested the hearing.

(7) Any person to whom notice is required to be given under subsection (5) may make representations and introduce documents and witnesses at any hearing held under this section, whether or not such person has been given notice thereof and in making any revocation on which a hearing has been held, the Minister or a person designated by the Minister shall consider any representations made and evidence introduced at the hearing and shall make available on request by any such person the reasons for the revocation.

(8) Any declaration under subsection (1) or (2) is final and conclusive.

(9) Where a hearing is not requested within the 14-day period specified in subsection (6) or is held under this section, any revocation made under this section is final and conclusive.

(10) Where applications affecting the same Canada lands are pending at the same time under subsection (2) and under section 116 or 117, the application under subsection (2) shall be disposed of first and, if any delay arising from the operation of this subsection adversely affects the right of any person to apply or maintain an application for a special renewal permit or a lease under section 54, such right shall be deemed not to be so affected.