Regulations Respecting the Leasing of Oil and Gas Rights Located on Certain Public Lands
2 In these Regulations,
Director means the Director, Resource Management and Conservation Branch, Department of Energy, Mines and Resources; (directeur)
gas means all natural gas including casinghead gas and all hydrocarbons not defined as oil herein; (gaz)
lease means an oil and gas lease described in section 3; (bail)
Minister means the Minister of Energy, Mines and Resources; (ministre)
oil means crude petroleum oil and all other hydrocarbons, regardless of gravity, that are produced at a well in liquid form by customary production methods; (pétrole)
product means a substance recovered through or by the customary means of production of oil and gas; (produit)
- spacing unit
spacing unit means an area designated by the appropriate provincial authority for drilling or production purposes for oil or gas; (unité d’espacement)
- unit operation
unit operation means exploration and development on areas included within a unit agreement entered into pursuant to section 6; (exploitation unitaire)
zone means any stratum or sequence of strata that is identified by the Director as a zone. (zone)
3 Subject to these Regulations, the Minister may, by way of lease, grant to any person the exclusive right to search for and take oil and gas, the property of Her Majesty in right of Canada, within and under lands in the Provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Quebec.
4 (1) Subject to subsection (2), no lease shall be granted unless the Minister has called for tenders and the grantee is the person making the highest tender.
(2) The Minister may, without calling for tenders, grant a lease of natural gas rights for zones in lands that are required
(a) to complete a spacing unit; or
(b) for a unit operation.
5 A lease granted under these Regulations shall be in such form as the Minister may approve.
6 In order to conserve oil and gas resources and to secure the orderly and regular development and the most efficient, economic recovery thereof, the Minister may from time to time enter into an agreement with persons entitled to search for and take oil and gas for the consolidation, merger or combination of their interests, whether such purpose is accomplished by unit operations, cooperative development or joint participation.
7 The fee for a service described in Column I of an item of the schedule shall be that set out in Column II of that item.
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