Canada Oil and Gas Operations Act

Marginal note:Hearing on application

• 41 (1) Where an application made under section 39 is referred by the Minister to the Committee, the Committee shall hold a hearing thereon at which all interested persons shall be afforded an opportunity to be heard.

• Marginal note:Unitization order

  (2) If the Committee finds that

  • (a) at the date of the commencement of a hearing referred to in subsection (1)

    • (i) the unit agreement and the unit operating agreement have been executed by one or more working interest owners who own in the aggregate sixty-five per cent or more of the total working interests in the unit area, and

    • (ii) the unit agreement has been executed by one or more royalty owners who own in the aggregate sixty-five per cent or more of the total royalty interests in the unit area, and

  • (b) the unitization order applied for would accomplish the more efficient or more economical production of oil or gas or both from the unitized zone,

  the Committee may order

  • (c) that the unit agreement be a valid contract enuring to the benefit of all the royalty owners and working interest owners in the unit area and binding on and enforceable against all such owners, and

  • (d) that the unit operating agreement be a valid contract enuring to the benefit of all the working interest owners in the unit area and binding on and enforceable against all such owners,

  and, subject to section 42, the unit agreement and the unit operating agreement have the effect given them by the order of the Committee.

• Marginal note:Variation by unitization order

  (3) In a unitization order, the Committee may vary the unit agreement or the unit operating agreement by adding provisions or by deleting or amending any provision thereof.