Oil and Gas Land Order No. 1-1962 (C.R.C., c. 1521)

Short Title

1 This Order may be cited as Oil and Gas Land Order No. 1-1962.

Interpretation

2 In this Order, Regulations means the Canada Oil and Gas Land Regulations, and all words and phrases used in this Order have the same meaning as in those Regulations.

Exploratory Permits

3 Tenders for an exploratory permit of the lands referred to in subsection 32(1) of the Regulations will, pursuant to that subsection, be called upon one of the following terms and conditions;

• (a) a cash bonus whereby the permittee will, in addition to complying with all provisions of the Regulations, pay to Her Majesty a fixed sum of money; or

• (b) an exploratory work bonus whereby the permittee will, in addition to complying with all the provisions of the Regulations, deposit with the Chief money, bonds or an approved note of value equal to the amount that the permittee undertakes to expend for exploratory work on the permit area within the first term of the permit as set out in section 36 of the Regulations.

• 4 (1) Tenders for exploratory permits of the lands referred to in subsection 32(1) of the Regulations may be called either for a single permit or a block of permits.

• (2) Where tenders are called for a block of permits, none of the permits in that block may be granted singly.

• (3) The notice calling for tenders shall state whether the permits are to be granted singly or as a block.

• 5 (1) Where a permit or block of permits is granted on the condition of an exploratory work bonus,

  • (a) the amount of expenditure made by the permittee under the condition shall be determined in the same way as the allowable expenditure referred to in section 43 of the Regulations is determined;

  • (b) the portion of the deposit equal to the allowable expenditure made during the period set out in the condition shall be returned to the permittee;

  • (c) the portion of the deposit not returned to the permittee is forfeited to Her Majesty; and

  • (d) the expenditures made to fulfil the work bonus tender shall be made for exploratory work within the boundaries of the permit or block of permits.

• (2) Where permits or blocks of permits are granted pursuant to the same call for tenders on the condition of an exploratory work bonus and the whole or greater part of each permit area so granted is, in the opinion of the Chief, covered by seacoast waters, a permittee, notwithstanding paragraph (1)(d), may apply to the Chief to group those permit areas for the purpose of fulfilling the work bonus tenders, and, in such case, the grouping shall be governed by sections 48 to 50 of the Regulations.

Operations

6 Where drilling operations have commenced prior to the end of the period set out in the condition and, in the opinion of the Chief, the operations will continue beyond the end of the period, the Chief may extend the period for such time as he considers necessary for the operation to be completed, but in no case beyond the term of the permit or the term of any renewal of the permit.