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PETROLEUM AND NATURAL GAS ACT
Published by Quickscribe Services Ltd.
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361
PETROLEUM AND NATURAL GAS ACT
PETROLEUM AND NATURAL GAS ACT
CHAPTER 361
[includes B.C. Reg. 341/2006 amendments (effective Dec. 4, 2006)]
Contents
PART 1 – Definitions
1. Definitions
PART 2 – General Rules
2. Forms
3. Expenditure for roads
4. Entry on location
5. Employees prohibited from investing
PART 3 – Entry, Mediation and Arbitration
6. Interpretation for Part
7. Entry on Crown land
8. Development roads
9. Agreement to enter land
10. Record of entry agreements
11. Renegotiation
12. Arbitration: other provisions
13. Mediation and Arbitration Board
14. Repealed
15. Powers and duties of board
16. Application for mediation and arbitration
17. Further information and dates
18. Mediation hearing
19. Entry, occupation or use order
20. Arbitration hearing
21. Determining amount
22. Termination of order
23. 23 and 24 Repealed
25. Service and registration of order
26. Review and enforcement of order
27. Repealed
28. Certified copies
29. Assignment
30. Failure to pay money
31. Regulations for this Part
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PART 4 – Geophysical Exploration
32. Geophysical licence
33. Approval of geophysical exploration project
34. Licence not transferable
35. Cancellation of licence
36. Regulations for this Part
PART 5 – Permits
Part 5: Division 1 – Location
37. Permit: dimensions of location
Part 5: Division 2 – Rights, Issue, Fees, Rental
38. Rights conferred by permit
39. Application for permit
40. Fees and rent
41. Minister's powers and duties
Part 5: Division 3 – Drilling Restrictions and Work Requirements
42. Classes of permits
43. Work requirements
44. Payment in place of work
45. Default
46. Grouping
Part 5: Division 4 – Term and Renewal
47. Renewal of exploration permit
48. Excess work
49. Right to reduce permit
PART 6 – Leases
Part 6: Division 1 – Rights Under Leases, Applications and Issue
50. Leases and their rights
51. Application
52. Application by permittee
53. Minister's powers and duties
Part 6: Division 2 – Rentals
54. Rental and reductions
Part 6: Division 3 – Locations
55. Dimensions of locations
Part 6: Division 4 – Work Requirement
56. Work specified
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57. Grouping
Part 6: Division 5 – Term and Continuation
58. Expiration and continuation of leases
59. Stratigraphic reversion
60. Notice to drill
61. Continuation of lease for well drilling
62. Continuation with penalty
63. Default in rental or work
64. Surrender of leases
PART 7 – Spacing Areas
65. Normal spacing areas
65.1 Other than normal spacing
66. Ministerial designations
67. No production unless other than normal spacing areas pooled with adjoining areas
PART 8 – Pooling of Locations
68. Pooling of locations to operate spacing areas
69. Pooling by board order
PART 9 – Crown Reserves
70. Crown reserves
71. Disposal of Crown reserves
72. Withdrawal from disposition
PART 10 – Royalty
72.1 Appointments
73. Royalties
74. Duty to pay, penalty for breach and refund in cases of overpayment
75. Enforcement
76. Books and records
77. Attachment
78. Agreement establishing royalty
79. Obligation to pay royalty
PART 11 – Freehold Production Tax
80. Freehold production tax
80.1 Nisga'a exemption
81. Application of Part 10 to freehold production tax
PART 12 – Conservation
82. Conservation: application
Part 12: Division 1 – Well Authorization
83. Well authorization
84. Certificate of restoration
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84.1
85.
86.
87.
88.
Environmental Management Act requirements must be met
Applications
Cancellation
Suspension
Obligations on abandonment of a well or cancellation of a well authorization
Part 12: Division 2 – Test Hole Authorizations
89. Test hole authorization
90. Application
91. Cancellation
92. Suspension
Part 12: Division 2.1 – Water Source Well Authorizations
92.1 Water source well authorization
92.2 Scope of water source well authorization
92.3 Application of Divisions 2, 3 and 4 to water source wells
92.4 Power to suspend use of water source well that injuriously affects other uses
Part 12: Division 3 – General
93. Grant and refusal of authorizations
94. Transfer
Part 12: Division 4 – Well Register
95. Well register
Part 12: Division 5 – Regulations and Orders
96. Regulations and orders of commission
97. Commission regulations and orders
98. Minister's regulations and orders
99. Prevention of waste
100. Approval of schemes
101. Escape of petroleum, gas or water
102. Discontinuance of operations
103. Prescribing methods of measurement
Part 12: Division 6 – Right of Access and Inspection
104. Access and inspection
Part 12: Division 7 – Wild Well Control
105. Wild well control
106. Enforcement of orders and costs
107. Spillage
108. Measures to contain and eliminate spillage
109. Further powers of commission for enforcement
PART 13 – General
110. Prohibition
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111.
112.
113.
114.
115.
116.
117.
118.
119.
120.
121.
122.
123.
124.
125.
Production
Saving
Affidavits
Unit agreement
Unitization order
Notification of work
Transfers and assignments
Prohibition against equipment removal
Cancelled, reverted or abandoned locations
Abandonment
Survey of lease
Reports and other instruments
Dangerous operations
Boundaries
Oil sand
PART 14 – Underground Storage
126. Exploration licence for underground storage area
127. Designation of storage area
128. Vesting of storage reservoir
129. Compensation
130. Lease of storage reservoir
131. Storage licence
132. Regulations for this Part
PART 15 – Regulations and Penalties
133. Regulations and orders
134. Offence and penalty
135. Cancellation
136. Appeal
137. Regulations Act applies
SCHEDULE
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PART 1 – Definitions
Definitions
1.
(SUB)
Nov
24/00
In this Act:
"board" means the Mediation and Arbitration Board;
"boundary" means a location's surface boundary and its vertical extension;
"certificate of restoration" means a certificate issued by the commission certifying
that, in the commission's opinion, all or part of a location is, restored;
"commission" means the commission established under section 2 of the Oil and Gas
Commission Act;
"commissioner" means the commissioner designated under section 2 of the Oil and
Gas Commission Act;
"Crown land" means ungranted Crown or public land that belongs to the government,
whether or not any water flows over or covers it;
"cubic metre" means, for a volume of
(a) natural gas, that volume measured at 101.325 kPa and 15°C, and
(b) petroleum, that volume measured at 15°C;
"director" means an officer or employee of the ministry who is designated as the
Director of Petroleum Lands by the minister;
"division" means the Energy Resources Division of the ministry;
"division head" means the assistant deputy minister designated in writing by the
minister as having charge of the division;
"field" means
(a) the surface area underlaid or appearing to be underlaid by one or more
pools, and
(b) the subsurface regions vertically beneath that surface area;
"freehold land" means land, including land comprising a right of way, station ground,
yard or terminal of a railway but not including Crown land, in respect of which
(a) petroleum and natural gas is, or may be, situated, or
(b) a person has the right to work, win or carry away petroleum or natural gas;
"gas well" means a well in which casing is run and that, in the opinion of the
commission, is producing or is capable of producing from a natural gas bearing zone;
"geophysical exploration" means investigation of the subsurface by seismic,
gravimetric, magnetic, electric and geochemical operations and by any other method
approved by the commission, but does not include the use of geophysical well logs,
vertical seismic profile surveys or other surveys obtained from a well;
"holder of a location" means, in accordance with the context, a permittee, licensee or
lessee;
"interest" means an undivided interest in a location;
"lease" means a subsisting lease issued under this Act;
"lessee" means a person in whose name a lease is recorded in the division records;
"licence" means, in accordance with the context, a drilling or geophysical licence
obtained under this Act;
"licensee" means a person in whose name a licence is recorded in the division records;
"location" means the land described in a permit, licence or lease;
"multizone well" means a well that may be used for segregated production from, or
segregated injection to, more than one zone or pool through the same well;
"natural gas" means all fluid hydrocarbons, before and after processing, that are not
defined as petroleum, and includes hydrogen sulphide, carbon dioxide and helium
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produced from a well;
"occupant" means a person, other than the owner,
(a) in actual possession of the land surface,
(b) shown on the indefeasible or absolute title to the land surface as having an
interest in the land,
(c) to whom the board has granted use of or a right of entry to or the right to
take the land surface;
"officer of the division" means a person employed in the division and authorized by
the division head to give an approval under this Act;
"oil sand" means sand or other petroliferous substance from which oil sand products
can be produced and includes any other substance defined by the Lieutenant Governor
in Council as oil sand;
"oil sand products" or "oil shale products" means petroleum or natural gas and all
other minerals and substances that can be produced from oil sand or oil shale in
association with the production of petroleum or natural gas;
"oil shale" means shale or other petroliferous substance from which oil shale products
can be produced and includes any other substance defined by the Lieutenant Governor
in Council as oil shale;
"owner" means
(a) the government for land so owned,
(b) a person registered in the land title office as the registered owner of the
land surface or as its purchaser under an agreement for sale, and
(c) a person to whom a disposition of Crown land has been issued under the
Land Act,
and, in relation to a well, includes a person entitled to produce and dispose of petroleum
or natural gas from the well;
"permit" means a subsisting exploration permit issued under this Act;
"permittee" means the person in whose name an exploration permit is recorded in the
division records;
"petroleum" means crude petroleum and all other hydrocarbons, regardless of gravity,
that are or can be recovered in liquid form from a pool through a well by ordinary
production methods or that are or can be recovered from oil sand or oil shale;
"petroleum well" means a well in which casing is run and that, in the opinion of the
commission, is producing or is capable of producing from a petroleum bearing zone;
"pipeline" includes a pipe or system or arrangement of pipes wholly in British
Columbia by which is conveyed petroleum or natural gas, or water used or obtained in
drilling for or in the production of petroleum or natural gas, and property used for, with
or incidental to their operation, but does not include a pipe or system or arrangement of
pipes to distribute natural gas in a community to ultimate consumers;
"plant liquids" means hydrocarbon liquids recovered from natural gas other than by
normal field 2 phase separation;
"pool" means an underground reservoir containing an accumulation of petroleum or
natural gas, or both, separated or apparently separated from another reservoir or
accumulation;
"production" means the flowing of petroleum fluid, natural gas or brine from a well to
the surface for the purpose of sale or trade but does not include the flowing of petroleum
fluids, natural gas or brine from a well to the surface for the purpose of evaluation of the
fluid or formation properties if the petroleum fluid, natural gas or brine is not gathered
and stored or shipped for sale or trade;
"recycling" means the injection and subsequent production of natural gas in a field or
pool, if petroleum recovery from the natural gas is the primary mode of liquid
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(AM)
Jun
20/03
(ADD)
Jun
20/03
(AM)
Jun
20/03
PETROLEUM AND NATURAL GAS ACT
hydrocarbon production from the field or pool;
"spacing area" means the drainage area required by this Act for, or allocated by
regulation to, a well for drilling for and producing petroleum or natural gas, and
includes at all depths the subsurface areas bounded by the vertical planes in which the
surface boundaries lie;
"storage reservoir" means a naturally occurring underground reservoir that is capable
of being used for the introduction, storage and recovery of petroleum or natural gas;
"surface lease" includes the lease, easement, right of way or other agreement made
about a land surface area by an owner;
"test hole" means a hole drilled or being drilled, to a depth and in a manner defined by
the regulations, to obtain information about petroleum and natural gas resources without
the production of those resources but does not include a hole drilled or being drilled for
firing an explosive charge in seismic operations;
"unitized operation" means the development or production of petroleum and natural
gas, or the implementing of a program for the conservation of petroleum and of natural
gas or the coordinated management of interests in them in, on or under a location, part
of a location or a number of locations combined for that purpose under a unitization
agreement under this Act;
"waste" in addition to its ordinary meaning, means waste as that term is understood in
the petroleum and natural gas industry, and includes wasteful operations and the
underground or surface loss of potentially recoverable petroleum or natural gas;
"water source well" means a hole in the ground drilled to obtain water for the purpose
of injecting water into an underground formation in connection with the production of
petroleum or natural gas;
"well" means a hole in the ground, other than a water source well,
(a)
(AM)
Jun
20/03
made or being made by drilling, boring or in any other manner from which
petroleum or natural gas is obtainable, or to obtain petroleum or natural gas
or to explore for, develop or use a storage reservoir for the storage of
petroleum or natural gas,
(b) used, drilled or being drilled to inject natural gas, air, water or another
substance into an underground formation in connection with the production
of petroleum or natural gas, or
(c) used, drilled or being drilled to obtain geological or geophysical
information respecting petroleum or natural gas;
"zone" means a stratum or strata designated by the commission as a zone generally or
for a designated area or a specific well, or a stratum or strata designated by the director
for the purposes of petroleum and natural gas rights administration.
RS1979−323−1; 1981−24−1; 1982−14−27; 1982−44−1; 1982−60−116; 1986−15−25; 1988−6−1; 1992−13−16; 1993−12−10;
1994−50−20; 1998−39−27; 2000−11−39; 2002−26−25; 2003−1−18.
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PART 2 – General Rules
(SUB)
May
09/02
Forms
2.
The director may establish forms to be used for the purposes of this Act.
2002−25−63.
Expenditure for roads
3.
(1) The minister may, with the approval of the Lieutenant Governor in Council,
authorize the spending of money appropriated by statute to construct, reconstruct
or repair trails, roads and bridges to facilitate exploration, development or
production of petroleum or natural gas, or both.
(REP)
(2) to (5) Repealed [1996−361−3(5)]
Mar
31/05
RS1979−323−3; 2000−22−52; 2003−54−27,Sch A; 2004−44−152.
Entry on location
4.
(1)
(2)
An employee of the ministry authorized by the minister or an employee of the
commission authorized by it may enter a location to examine and inspect for the
purposes of this Act.
A person must admit to a location an employee of the ministry or of the
commission, authorized under subsection (1), to examine or inspect, and must
provide that employee with the means and assistance necessary for the purpose.
1998−39−28.
Employees prohibited from investing
5.
(1)
(2)
A member of the ministry must not have a monetary interest of any description,
directly or indirectly, in any petroleum or natural gas property in British
Columbia or in any business engaged in any phase of the petroleum and natural
gas industry carried on in British Columbia.
A person continuously employed by the ministry must not, directly or indirectly,
have a monetary interest of a kind described in subsection (1) other than shares of
a company that are regularly quoted and dealt in on a recognized stock exchange.
RS1979−323−5.
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PART 3 – Entry, Mediation and Arbitration
Interpretation for Part
6.
(1)
(2)
(3)
In this Part, "Crown land" means Crown land not used or occupied by or on
behalf of the government and includes
(a) land granted to a railway company under an Act and used or occupied by
or on behalf of the company, and
(b) land used or occupied by or on behalf of a railway company subsidized by
the government.
In this Part, if a disposition of surface rights of Crown land is made under the
Land Act and regulations under that Act, the person to whom the disposition is
made is deemed to be the owner of land in respect of those surface rights.
Despite subsection (2), for the purposes of this Part, a person is not deemed to be
the owner of land in respect of surface rights acquired under a disposition of
surface rights of Crown land made by
(a) a permit under section 14 of the Land Act, or
(b)
(4)
a licence under section 39 of the Land Act
under which the person is granted the non−intensive occupation or use or
occupation and use of an extensive area of Crown land for commercial
recreational purposes.
For the purpose of subsection (3), the Lieutenant Governor in Council may make
regulations defining "non−intensive", "extensive" or both.
RS1979−323−6; 1999−39−54.
Entry on Crown land
7.
Subject to section 9, the written consent of the commission and filing, with the
Minister of Lands, Parks and Housing and with any other members of the
Executive Council the Lieutenant Governor in Council designates, a plan of the
Crown land the operator intends to enter, a person may enter, occupy or use,
subject to terms the commission determines, Crown land to explore for, develop
or produce petroleum or natural gas or explore for, develop or use a storage
reservoir under this Act and the regulations.
RS1979−323−7; 1988−6−2; 1998−39−29.
Development roads
8.
(1)
(2)
(3)
(4)
(5)
The commission, on terms it may specify, may designate portions of Crown land,
whether or not they are in a location, to be a development road for the purposes of
exploring for, developing or producing petroleum or natural gas or exploring for,
developing or using a storage reservoir.
A holder of a location may apply for a designation under subsection (1).
An application must be accompanied by the application fee, prepayment of the
prescribed annual rental, and further information required by the commission.
A person may not construct or use a development road except under the
regulations and the terms that apply to it.
Despite section 73 of the Assessment Act, a development road designated under
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subsection (1) must not, under another Act, be assessed or taxed as an
improvement or as land or property.
RS1979−323−8; 1983−10−21; 1988−6−3; 1992−20−1; 1998−22−24; 1998−39−30.
Agreement to enter land
9.
(1) A person may not enter, occupy or use land, other than Crown land, to explore
for, develop or produce petroleum or natural gas or explore for, develop or use a
storage reservoir unless
(a) the person makes, with each owner of the land, a surface lease in the form
and content prescribed authorizing the entry, occupation or use,
(b) the board authorizes the entry, occupation or use, or
(c) as a result of a hearing under section 20, the board makes an order
specifying terms of entry, occupation and use, including payment of rent
and compensation.
(2) A person who enters, occupies or uses land to explore for, develop or produce
petroleum or natural gas or explore for, develop or use a storage reservoir is
liable,
(SUB)
(a) to pay compensation to the land owner for loss or damage caused by the
Nov
entry, occupation or use, and
24/00
(b) if the board so orders, to pay rent for the duration of the occupation or use.
(SUB)
(3) For the purposes of subsection (2) (a), if a certificate of restoration is required
Nov
after the entry, occupation or use, the liability for payment of compensation ends
24/00
on the date stated in the certificate.
RS1979−323−9; 1983−10−21; 1988−6−2,4; 2000−26−35.
Record of entry agreements
10.
A person who has, under a surface lease containing rental provisions, the right to
enter, occupy or use land other than Crown land to explore for, develop or
produce petroleum or natural gas or explore for, develop or use a storage
reservoir must, not more than 90 days after the date the person acquires the right,
submit to the board his or her name, address, a description of the land and a copy
of the surface lease.
RS1979−323−10; 1988−6−2.
Renegotiation
11.
(1)
(2)
(3)
This section applies despite a surface lease containing rental provisions made,
order made or an authority given, before or after July 1, 1974, or anything done
under the surface lease, order or authority.
If a person has, for a continuous period of 4 years, been entering, occupying or
using land to explore for, develop or produce petroleum or natural gas or explore
for, develop or use a storage reservoir, that person may, or an owner of the land
may, on or after the next anniversary of the making of the lease, order or
authority, on giving 60 days' notice in the prescribed form by registered mail to
each owner of the land and to each person who is entering or occupying the land
for the purpose stated or for a connected or incidental purpose, require
renegotiation of rental provisions in the surface lease, order or authority.
Subsection (2) also applies if 4 years have elapsed since
(a)
the completion of the last renegotiation of rentals under subsection (4), or
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(b)
(4)
the effective date of an order under section 12 (2).
If notice is given under subsection (2) or (3), the persons giving and receiving the
notice may renegotiate the rental provisions by mutual agreement.
RS1979−323−11; 1988−6−2.
Arbitration: other provisions
12.
(1)
(2)
(3)
(4)
If rental provisions are not renegotiated under section 11 (4) within 6 months
after the expiration of the notice, an owner of the land or person entering,
occupying or using the land for a purpose referred to in section 11 (2) may apply
in writing to the board for arbitration under section 17 (3).
If an application is made for arbitration, an order may be made varying the rental
provisions, or may be refused.
A renegotiation or order under section 11 or this section is effective from the
immediate past anniversary date of the surface lease preceding the notice and is
retroactive to the extent necessary to give effect to this subsection, but in all other
respects the surface lease, order or authority remains in force.
Despite anything in a subsisting surface lease made before or after July 1, 1974 or
the termination of the surface lease, the rentals payable under it continue to be
payable until the commission has issued a certificate of restoration for the
leasehold, and this subsection is retroactive to the extent necessary to give effect
to its provisions.
RS1979−323−12; 1982−44−3; 1998−39−31.
Mediation and Arbitration Board
13. (1) The Mediation and Arbitration Board is continued consisting of up to 9
individuals appointed as follows by the Lieutenant Governor in Council after a
merit based process:
(a) one member designated as the chair;
(b) one member designated as the vice chair after consultation with the chair;
(c) other members appointed after consultation with the chair.
(2) A vacancy in the board's membership does not impair the right of the remaining
board members or member to act.
(3) The Lieutenant Governor in Council may provide the following:
(a) the number of members to constitute a quorum;
(b) the board's duties and those of a member;
(REP)
(c) Repealed. [2003−47−53]
(SUB)
Feb
13/04
Feb
13/04
(4)
(REP)
Oct
15/04
(SUB)
Oct
15/04
(5)
(6)
(d) the rules of procedure for board applications and hearings.
The board may, subject to the Public Service Act, appoint employees, and
designate their title, office and responsibilities, as may be required to carry out
the proper business of the board, and may, despite the Public Service Act, appoint
casual and temporary employees when necessary for the proper functioning of the
board.
Repealed. [2004−45−142]
Sections 1 to 11, 14, 17, 19 to 21, 29, 30, 32, 34 (3) and (4), 36, 38 to 42, 44, 47
to 49, 55 to 57, 59, 60 (a), (b) and (d) to (f) and 61 of the Administrative
Tribunals Act apply to the board.
RS1979−323−13; 1980−36−40; 2003−47−53; 2004−45−142.
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(REP)
Oct
15/04
PETROLEUM AND NATURAL GAS ACT
Repealed
14.
Repealed. [2004−45−143]
Powers and duties of board
15. (1) The board may sit at any place in British Columbia, and for any of its proper
business purposes, enter and inspect, or authorize a board member or employee to
enter and inspect, a facility, land, location or record.
(2) The board must
(a) prepare a record of every proceeding before it, and
(b) provide any person, on application during normal business hours and
payment of the fee, with copies of a record in the custody of the board.
(ADD)
(2.1) If the board transcribes or tape records a proceeding, the transcription or tape
Oct
recording constitutes part of the record of the proceeding and is deemed to be
15/04
correct.
(ADD)
(2.2) If, because of a mechanical or human failure or other accident, the transcription
Oct
or tape recording is destroyed, interrupted or incomplete, the validity of the
15/04
proceeding is not affected.
(3) The board has custody of its records and of documents filed with the board in the
board's proceedings.
(4) The board is responsible for drawing orders and rulings of the board, and for
filing those orders and rulings with their appropriate records.
RS1979−323−15; 2004−45−144.
Application for mediation and arbitration
16. (1) A person may apply to the board for mediation and arbitration under this section
if the person
(a) requires land to explore for, develop or produce petroleum or natural gas or
explore for, develop or use a storage reservoir or for a connected or
incidental purpose, and an owner of the land refuses to grant a surface lease
satisfactory to that person authorizing entry, occupation or use for that
purpose,
(b) is the owner of land that is entered, occupied or used for a purpose referred
to in paragraph (a), and damage to the land or suffering to the owner is
caused by the entry or occupation, or
(c) is a person referred to in section 129.
(2) Subject to the board's rules of procedure, the application must be made in the
form the board requires and must be accompanied by
(AM)
(a) an affidavit of the applicant, listing the name and address of each person
Oct
directly affected, or who could reasonably be expected to be directly
15/04
affected, by an order on the application, and verifying service of the
application by registered mail on each person,
(AM)
(b) if Crown land could reasonably be expected to be affected by an order, an
Nov
affidavit verifying service of the application by registered mail on the
24/00
commission and the minister responsible for the Land Act, and
(c) if the application is for the purposes of a development road or conservation
scheme, a copy of the commission's approval of, or order for, the road or
scheme.
(ADD)
(3) Subsection (1) does not apply in respect of geophysical exploration.
Nov
24/00
RS1979−323−16; 1988−6−2,5; 2000−26−36; 2004−45−145.
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(AM)
Oct
15/04
Further information and dates
17. (1) If the board believes that further information is required to hear and consider the
application, or that the applicant has not served every person who would be
directly affected, the board may require the applicant to provide further
information or serve those persons.
(2) The application is deemed not to be received until the applicant provides the
board with the further information or submits an affidavit verifying service of the
application on the other persons directly affected.
(3) The chair must, promptly after the board receives an application under section 12,
16 or this section, set, after consultation with the applicant and the persons most
likely to be directly affected by an order on the application, the places and dates
of mediation and arbitration hearings, as the case may be.
RS1979−323−17; 2004−45−146.
Mediation hearing
18. (1) The chair, or a member the chair designates, must summarily hear representation
by or on behalf of the applicant and persons likely to be directly affected, and
must act as mediator for the purpose of resolving the complaint specified in the
application.
(2) If, after the first mediation hearing, the application is not withdrawn and the
complaint or issue specified in the application is not resolved, the mediator may
(a) dismiss the application,
(b) set one or more mediation hearings, or
(c) if the mediator believes that the complaint or issue cannot be summarily
resolved by mediation, make an order refusing further mediation hearings.
(3) If an application is made under section 16 (1), and if the mediator believes, as a
result of a mediation hearing, that the applicant should be permitted to enter,
occupy or use the land, the mediator may make an order under section 19.
(4) If an applicant alleges in an application made under section 16 (1) that money is
due to the applicant, the mediator may, as a result of a mediation hearing, order
that the amount the mediator determines be paid to the applicant by the person or
persons, and in the proportions the mediator may specify.
(AM)
(5) An order of the mediator under subsection (4) is not final unless every person
Oct
directly affected by the order approves of it or the board confirms the order.
15/04
(AM)
Oct
15/04
RS1979−323−18; 1983−10−21; 2004−45−147.
Entry, occupation or use order
19.
(1)
(2)
A mediator may make an order permitting, subject to the terms the mediator may
specify in the order, an applicant under section 16 to enter, occupy or use the land
for a purpose stated in that section.
Before making an order, a mediator must
(a)
(b)
require the applicant to deposit with the board security in the amount, form
and manner that the mediator considers necessary for the purpose of
ensuring that the owners of the land will be paid any amount ordered
subsequently to be paid to them,
require the applicant to pay to the owners, as partial payment of the amount
subsequently ordered by the board to be paid to them, an amount of money
not less than 1/2 the amount of security required to be deposited, and
(c)
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(3)
(4)
require the applicant to serve a copy of the order on each owner of the land,
and direct the manner of service.
Despite subsection (2), the board, on application at any time, may require the
applicant to pay to the owners under subsection (2) (b) additional amounts the
board considers proper.
In determining an amount of money to be paid, the board is not bound by an order
of the mediator under section 18 (4) or by a requirement of the mediator under
subsection (2).
RS1979−323−19.
(AM)
Oct
15/04
Arbitration hearing
20. (1) Unless the application is withdrawn or the applicant and the person who will
likely be directly affected by an order approve the order of the mediator, the
board must hear representation by or on behalf of the applicant and persons likely
to be directly affected by an order, and must arbitrate for the purpose of resolving
the complaint specified in the application.
(2) Unless the applicant and the other persons otherwise agree, the board must review
an order of the mediator made under section 19, and may confirm or vary the
order, subject to the terms it considers proper.
(3) Unless the applicant and the other persons otherwise agree, the board,
(a) if a mediator has made an order under section 18 (4), must review the
order, confirm it or vary it in the manner and subject to the terms the board
considers proper,
(b) if a mediator has not made an order under section 18 (4), must determine
the amount of money to be paid to a person, as rent for occupation or use,
or for damage caused, up to the date stated in a certificate of restoration,
for the entry, occupation or use, and
(c) may determine the disposition of the amount remaining of the deposit
required under section 19 (2) as between the applicant and the owner.
RS1979−323−20; 2004−45−148.
Determining amount
21.
(1)
In determining an amount to be paid periodically or otherwise on an application
made under section 12 or 16 (1), the board may consider
(a) the compulsory aspect of the entry, occupation or use,
(b)
(2)
(c)
the value of the land and the owner's loss of a right or profit with respect to
the land,
temporary and permanent damage from the entry, occupation or use,
(d)
compensation for severance,
(e)
(f)
compensation for nuisance and disturbance from the entry, occupation or
use,
money previously paid to an owner for entry, occupation or use,
(g)
other factors the board considers applicable, and
(h)
other factors or criteria established by regulation.
In determining an amount to be paid on an application under section 12, the board
must consider any change in the value of money and of land since the date the
surface lease, order or authority was originally or last granted.
RS1979−323−21.
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Termination of order
22. (1) If 2 years have expired since an order made by the mediator or the board
authorizing entry, occupation or use of land, the applicant for the order may, on
not less than 90 days' notice to the land owner, apply to the board for an order
terminating the previous order.
(2) Subject to the board's rules of procedure, an application must be made in the form
the board requires.
(AM)
(3) On receiving the application, the chair must without delay set, after consulting the
Oct
applicant and the persons likely to be directly affected by an order, a date and
15/04
place of hearing.
(4) The chair, or other board members the chair designates, must summarily hear
representation by or on behalf of the applicant and persons who will likely be
directly affected by an order resulting from the application, and may dismiss the
application, or dismiss it subject to the terms and conditions he or she considers
appropriate, or make an order terminating the previous order, conditional on
(a) the removal of all equipment and facilities used in respect of and the
restoration of all land directly affected by the entry, occupation or use, and
(b) obtaining from the commission a certificate of restoration in respect of the
land.
(5) An application is not required if all persons likely to be directly affected by
termination of the previous order agree to the termination and so long as the
conditions in subsection (4) are complied with.
RS1979−323−22; 1982−44−2; 1998−39−32; 2004−45−149.
(REP)
Oct
15/04
23 and 24 Repealed
23.
Sections 23. and 24. Repealed. [2004−45−150]
Service and registration of order
25. (1) If an order is made by the board, the board must provide notice of the order to the
applicant and to any other persons directly affected by that order.
(2) If the board makes an order on an application under section 16 (1) (a), the
applicant must not enter, occupy or use the land until the owner of the land has
received a certified copy of the order.
(3) If the board makes an order authorizing or terminating entry, occupancy or use of
land, the applicant for the order must file a certified copy of the order with the
registrar of the appropriate land title district, who, on payment of the appropriate
fees, must endorse his or her records accordingly.
(ADD)
(4) An order made by the board is effective on the date it is issued by the board
Oct
unless the order specifies otherwise.
15/04
(ADD)
(5) If the board is of the opinion that because there are so many parties to an
Oct
application or for any other reason it is impracticable to give notice of its final
15/04
order to all or any of the parties individually, the board may give notice of its
final order by public advertisement or otherwise as the board directs.
(ADD)
(6) If the board gives notice under subsection (5) of a final order, the notice must
Oct
inform the parties where copies of the final order may be obtained.
15/04
(ADD)
(7) The board must provide for public access to its orders.
(SUB)
Oct
15/04
Oct
15/04
RS1979−323−25; 1982−60−117; 2004−45−151.
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Review and enforcement of order
26.
(1)
(2)
An order of the mediator or board granting the right to enter, occupy or use land
may be enforced in the same manner as a writ of possession issued by a court.
The board may, on its own motion or on application,
(a)
rehear an application before making a determination, and
(b)
review, rescind, amend or vary a direction or order made by it, the chair or
a board member.
RS1979−323−26.
(REP)
Oct
15/04
Repealed
27.
Repealed. [2004−45−152]
Certified copies
28.
A certified copy of an order of the board signed by the chair, or the secretary of
the board if appointed, must be admitted as evidence of the order by the board.
RS1979−323−28.
Assignment
29.
An order by the board may be assigned by
(a)
serving notice of the assignment on the other parties named in the order,
(b)
filing a certified copy of the assignment with the board, and
(c)
filing the assignment with the registrar of the appropriate land title district,
who, on payment of the appropriate registration fee, must endorse against
the indefeasible or absolute title of the land affected by the assignment.
RS1979−323−29; 1982−60−118.
Failure to pay money
30.
If the owner of land in respect of which an order was made by a mediator or the
board refuses to comply with the order, the applicant for the order may apply to
the board to deduct from any compensation to be determined and awarded to the
owner under the order an amount covering the cost of and incidental to obtaining
entry on, or occupancy and use of, the land according to the order, which amount
is at the sole discretion of the board.
RS1979−323−30.
Regulations for this Part
31.
The Lieutenant Governor in Council may prescribe the following:
(a)
the form, manner and content of a surface lease;
(b)
the form and manner of making an application to the board;
(c)
factors or criteria to be used in determining compensation;
(d)
development road rentals.
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RS1979−323−31.
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PART 4 – Geophysical Exploration
Geophysical licence
32. (1) A person, on the person's own behalf or for or on behalf of others, must not
undertake geophysical exploration unless he or she is the holder of a subsisting
geophysical licence.
(2) An application for a licence must be made to the commission.
(SUB)
(3) The commission may issue or renew a geophysical licence for the prescribed term
Jun
on receiving an application and on payment of the prescribed fee or may refuse to
20/03
issue or renew a geophysical licence.
(REP)
(4) and (5) Repealed. [2002−26−26]
Jun
20/03
RS1979−323−33; 1982−44−3,5; 1988−6−6; 1998−39−31; 2002−26−26.
Approval of geophysical exploration project
33.
(1)
(2)
(3)
(4)
(5)
The holder of a geophysical licence must not undertake geophysical exploration
unless the commission, subject to conditions it may impose, approves of the
holder's application in the prescribed form for the particular geophysical
exploration project.
The commission may revoke an approval given under subsection (1) or may vary
conditions imposed by it if it considers that the conditions or regulations have not
been complied with.
Despite the granting of an approval under subsection (1), an employee of the
commission designated by the commission may order work on a geophysical
exploration project to stop if the designated employee considers that unreasonable
damage to the terrain or environment will be caused by continuation of the
project.
Unless confirmed or varied by the commission within 14 days after the making of
an order under subsection (3), the order ceases to have effect.
Repealed [1998−39−33]
RS1979−323−33.1; 1986−15−26; 1993−12−11; 1998−39−33.
Licence not transferable
34.
A geophysical licence is not transferable except in cases of corporate merger,
amalgamation or succession, and then only with the written consent of the
commission.
RS1979−323−34; 1982−44−3; 1998−39−31.
Cancellation of licence
35.
(1)
(2)
The commission may cancel a geophysical licence for failure to comply with this
Act or the regulations.
Unless a condition exists that the commission considers a danger to any person or
to public or private property, the commission must not cancel a geophysical
licence until the commission has given the holder at least 30 days' notice to
rectify the default and the default is not rectified within the notice period.
RS1979−323−35; 1982−44−3; 1998−39−34.
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Regulations for this Part
36. (1) The commission may make regulations as follows:
(a)
(2)
governing the methods and manner of geophysical exploration and the
places in which it may be carried out;
(b) empowering designated employees of the commission to
(i)
require persons carrying out geophysical exploration to clean up,
restore and reclaim land and improvements affected by the
exploration,
(ii) require those persons to post performance bonds for the due
performance of the clean−up, restoration and reclamation, and
(iii) deduct or recover the costs of the clean−up, restoration and
reclamation from those performance bonds;
(c) providing for reports to the commission;
(d) setting the terms for geophysical licences and renewals of geophysical
licences.
A regulation made under this section may provide that commission employees
designated by the commission may, in writing, exempt a person from the
application of all or part of the regulation, in relation to a particular geophysical
exploration project and subject to specified conditions.
2002−26−27.
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PART 5 – Permits
Part 5: Division 1 – Location
Permit: dimensions of location
37.
The location for which a permit is issued must be a block, except if the location is
(a)
adjacent to a boundary of British Columbia,
(b)
(c)
in an area in which petroleum and natural gas is reserved by the
government,
less than a block and approved by the minister, or
(d)
in the Peace River Block or as provided for in section 124.
RS1979−323−37; 1993−12−13.
Part 5: Division 2 – Rights, Issue, Fees, Rental
Rights conferred by permit
38.
(1)
(2)
(3)
Subject to subsection (2) and to section 32, the holder of a permit has the
exclusive right to do geological work and geophysical exploration work and
exploratory drilling for petroleum or natural gas, or both, on land owned by the
government and in the boundaries of the location of the permit.
The issue or existence of a permit does not prohibit a person other than the holder
of the permit from
(a) carrying out test hole drilling in the boundaries of the location of the
permit, or
(b) carrying out geological work or geophysical exploration other than test
hole drilling in accordance with any regulations.
A person who does test hole drilling described in subsection (2) must not interfere
with the operations of the holder of the permit for the location on which the
drilling is done.
RS1979−323−38; 1986−15−27.
Application for permit
39.
An application for a permit must be made in writing in the form prescribed, to the
director at Victoria, accompanied by the prescribed fee and rental.
RS1979−323−39; 1982−44−6; 1998−39−36.
Fees and rent
40.
(1)
A permittee must pay a rent prescribed by the Lieutenant Governor in Council for
the permit and renewal of the permit, and the rent may be different for different
classes of permits and for different years while the permit or renewal of the
permit is in force.
(2)
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The Lieutenant Governor in Council may prescribe fees for obtaining a permit or
renewal of a permit.
RS1979−323−41; 1982−44−8.
Minister's powers and duties
41.
(1)
(2)
The minister may issue or refuse to issue a permit, whether or not the
requirements of this Act have been complied with, and the minister's refusal is
final.
If the minister refuses to issue a permit under this section, the fees that
accompanied the application for it may, and the rental that accompanied the
application must, be refunded to the applicant.
RS1979−323−42.
Part 5: Division 3 – Drilling Restrictions and Work Requirements
Classes of permits
42.
(1)
(2)
(3)
(4)
(5)
The director must classify each permit, when it is issued, as a Class A, Class B,
Class C or Class D permit.
The director must, in classifying each permit, have regard for the comparative
accessibility of the location for which the permit is to be issued, and the terrain of
the location as it is likely to affect exploration for petroleum and natural gas.
A permit must not be classified as a Class D permit unless not less than 3/4 of the
area of the location is continually covered by water.
An appeal lies to the minister from a classification by the director, and the
minister may confirm the classification or give the permit a different
classification.
A confirmation or classification by the minister under this section is final.
RS1979−323−44; 1998−39−36.
Work requirements
43.
(1)
The Lieutenant Governor in Council may prescribe that permittees must do or
cause to be done, work consisting of geological work, geophysical exploration or
exploratory drilling, and may make regulations respecting
(a) the approval, performance and recording of that work, or
(b)
(2)
the performance of other work in place of that work.
The regulations may prescribe the monetary value of the work, and that value
may be different for different classes of permits and for different years while the
permit or renewal of the permit is in force.
RS1979−323−45; 1982−44−9.
Payment in place of work
44.
(1)
A permittee who has not done or caused to be done the work required by the
regulations may have his or her permit renewed as if he or she had done the work
if the permittee
(a) pays to the director an amount equal to the value of the work not done, or
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(b)
(2)
submits to the director a written undertaking to do the work not done
together with the work required to be done for the next year, together with
a deposit of money or securities, or both, equal to the value of the work not
done and satisfactory to the director.
When a permittee has done the work that he or she has undertaken to do under
this section, and the work is approved, the permittee is entitled to a refund of the
money or securities, or both, deposited by the permittee.
RS1979−323−47; 1982−44−11; 1998−39−37.
Default
45.
(1)
(2)
(3)
(4)
(5)
(6)
(7)
Subject to subsections (3) to (7), if a permittee fails to do work that he or she has
undertaken in writing to do under section 44, the director may cause to be
forfeited to the government all or part of the deposit of money or securities,
submitted under that section.
The amount to be forfeited under subsection (1) must be decided by the director
in his or her sole discretion.
A permittee who has not done work that he or she has undertaken under section
44 to do may pay to the director cash in an amount equal to the sum of the value
of the work not done and a penalty equal to 1/10 of that value.
The permit of a permittee referred to in subsection (3) may, on making the
payment under that subsection, be renewed as if the permittee had done or caused
to have been done the work not done.
For the purpose of obtaining a lease, a permittee who has not done the work that
he or she has undertaken under section 44 to do may pay to the director cash in an
amount equal to the amount deposited under that section and forfeit the rental for
the period elapsed since the last anniversary of the date of issue of his or her
permit.
For the purposes of section 52, the permit is, on the making of the payment under
subsection (5), deemed to be valid, and the lease or leases must be dated and
begin as of the last anniversary of the date of issue of the permit.
For the purpose of obtaining a lease, a permittee who has not done work required
under conditions imposed by the minister under section 47 (5) may forfeit to the
director the rental for the period referred to in subsection (5) of this section with
the effect provided in subsection (6) of this section.
RS1979−323−48; 1983−10−21; 1998−39−36.
Grouping
46.
(1)
(2)
(3)
If a grouping notice in the form prescribed is recorded, work done in accordance
with the regulations on the location of a permit may be considered to have been
done in that location and locations of other permits not exceeding 30 blocks in
area and that are contiguous or each of which lies partially or wholly within a
circle having a radius of 80 km, or whatever greater area or radius may be
approved by the minister before the commencement of the work to be done.
A location must not be included in more than one grouping notice during the
period that elapses between anniversaries of the date of issue of the permit.
Subsection (1) does not apply after the permit holder whose location is comprised
in a notice under that subsection notifies the director that the notice is no longer
effective.
RS1979−323−49; 1982−44−12; 1993−12−14; 1998−39−36.
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Part 5: Division 4 – Term and Renewal
Renewal of exploration permit
47.
(1)
(2)
(3)
A permit expires at the end of the anniversary of the date of issue or of its last
renewal.
An application for renewal must be made to the director who must not accept the
application unless
(a) it is accompanied by the prescribed fee and rental for the location of the
permit for the next year, and
(b) it is received by the director before the expiration of the permit or within
the time set out in subsection (7) and is accompanied by the fee established
by that subsection.
An application is also not acceptable unless accompanied by
(a)
(4)
(5)
(6)
(7)
an affidavit of expenditure made for work done under this Part and having
as exhibits a report and map displaying the detailed factual data obtained
from the geological or geophysical examination, detailed logs, well history
report and other information as may be required on all exploratory work
referred to in the affidavit,
(b) an affidavit of estimated expenditure made for work done under this Part
together with an undertaking satisfactory to the director to file with the
director, in the time he or she sets, the documents that would otherwise
have been exhibits under paragraph (a), or
(c) a payment of money under section 44 (1) or a written undertaking and
deposit under that subsection.
A permit in Class A or Class B must not be renewed
(a)
more than 4 times except on the authorization of the minister, or
(b)
more than 7 times under any circumstances.
A permit in Class C or Class D must not be renewed more than 7 times except on
the authorization of the minister and in accordance with the rentals, terms and
conditions the minister may impose.
The minister may authorize a renewal under subsection (4) (a) or (5) for a period
of less than one year, in which case the fee and rental must be prorated.
A permit must not be renewed or converted to a lease under section 51 after the
anniversary of the date of issue or of its last renewal except on payment of a
penalty of
(a) $100 if the application is received by the director before the expiration of
10 days after that anniversary, or
(b) $500 if the application is received by the director after the expiration of 10
days but before the expiration of 60 days after that anniversary, but not
after that under any circumstances.
RS1979−323−52; 1982−44−13; 1988−6−9; 1998−39−38.
Excess work
48.
If a permittee has, in any year, done or caused to be done and recorded work in
excess of that required under the regulations, and details of expenditure for it
made have been included in an affidavit filed under section 47, the excess work is
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deemed to have been done in one or more of the 3 years immediately following
the year in which it was done.
RS1979−323−53; 1982−44−14.
Right to reduce permit
49.
At the request in writing of a permittee, on renewal of a permit the location may
be reduced
(a) to a block or blocks described in section 124, or
(b)
if the location is not made up of blocks, to an area approved by the
minister.
RS1979−323−54.
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PART 6 – Leases
Part 6: Division 1 – Rights Under Leases, Applications and Issue
Leases and their rights
50.
(1)
A lease shall be a petroleum and natural gas lease.
(2)
The holder of a petroleum and natural gas lease has the exclusive right to
produce, in accordance with this Act, both the petroleum and natural gas from the
location of the lease.
The issue of a lease terminates the validity of a permit for the location of the
lease.
(3)
RS1979−323−63; 1981−24−5.
Application
51.
An application for a lease must be made to the director in the form prescribed and
is not valid unless
(a) the application is accompanied by the prescribed fee and rental,
(b)
the applicant provides the information the minister requires,
(c)
the applicant has complied with this Act, and
(d)
the application is approved by the director.
RS1979−323−64; 1982−44−15; 1998−39−39.
Application by permittee
52.
(1)
(2)
Subject to sections 55 and 56, a permittee may, during the term of the permit,
apply for a lease with a location having a total area in and not larger than 1/2 the
area of the location of the permit.
A permittee who, in the opinion of the minister has discovered petroleum in the
course of drilling a well, when instructed by the minister to do so, must apply, on
or before a date set by the minister, which must not be earlier than 3 months after
the date of the instruction, for a lease, the location of which is to include the well
site.
RS1979−323−65; 1981−24−6.
Minister's powers and duties
53.
(1)
(2)
(3)
The minister may issue and continue leases only in accordance with this Act and
the regulations, and may refuse to issue a lease to a person other than a permittee
or licensee who has complied with this Act.
The minister's refusal under subsection (1) is final.
The minister must not issue or continue a lease to or for an applicant who, in the
belief of the minister, is indebted to the government for royalties, taxes or rental
with respect to petroleum or natural gas.
(4)
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If the minister refuses to issue or continue a lease, the fees and rental that
accompany the application must be refunded.
RS1979−323−67.
Part 6: Division 2 – Rentals
Rental and reductions
54.
The Lieutenant Governor in Council may make regulations respecting
(a)
annual rental payments for leases,
(b)
the circumstances under which and the amounts by which reductions in
lease rental payments may be made,
the manner of making applications for a reduction, and
(c)
(d)
the powers of the minister and the director in relation to the circumstances
referred to in paragraph (b).
RS1979−323−68; 1982−44−16; 1998−39−36.
Part 6: Division 3 – Locations
Dimensions of locations
55.
(1)
The location of a lease must have 4 boundaries, and the dimensions of the lease
must be 2 units by 2 units, 2 units by 4 units, 4 units by 4 units, 4 units by 6 units,
4 units by 8 units or 6 units by 6 units, unless the location is
(a) in the Peace River Block or in an area provided for in section 124, or
(b)
(2)
(3)
(4)
(5)
(6)
(7)
to be the location of a lease issued under section 71.
The boundaries of the location of a lease to which subsection (1) applies must,
unless otherwise approved by the director, coincide with the boundaries of natural
gas well spacing areas.
The location of a lease must either corner, or be separated from, the location of
every other lease issued from the same permit by a distance not less than the
width or length of 2 units.
The permittees of adjoining permits may agree to a lease, or concentration of
leases, along the mutual boundaries of the locations of 2 or more permits, but the
lease, or concentration of leases, must not exceed the dimensions set out in
subsection (1).
A permittee and the holder of an adjoining location may agree to a concentration
of leases along the common boundaries of their locations but the dimensions of
the lease issued from the permit must not exceed 3 units by 4 units.
Despite subsection (4), if the boundary of the location of a permit coincides with
a boundary of British Columbia, a boundary of the location of any lease derived
from the location of the permit may coincide with that boundary of British
Columbia.
If, because of the shape and dimensions of the location of a permit, the permittee
is unable to apply for leases with locations that enable the permittee to obtain the
area to which he or she is entitled under this Act, the minister may grant leases
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with locations that do not meet those requirements but that do not exceed in size
the largest location that may otherwise be specified in a lease.
RS1979−323−69; 1981−24−9; 1998−39−36.
Part 6: Division 4 – Work Requirement
Work specified
56.
(1)
This section applies only to a petroleum and natural gas lease the location of
which
(a) was derived from a location of a permit for which the requirements have
not been fulfilled under sections 43, 44 and 45 for the fourth renewal, or
(b) was not in a location of a permit held by the applicant for the lease.
(2)
There must be included in every lease specified in subsection (1) a requirement
that, during the time specified in the lease, the lessee will complete the work
required to be completed during the first 5 years of a permit having a minimum
sized location and of the same classification as those in the immediately
surrounding area.
RS1979−323−71; 1982−44−17.
Grouping
57.
(1)
(2)
(3)
(4)
(5)
(6)
If a grouping notice in the prescribed form has been recorded with the director,
exploratory work done on the location of a petroleum and natural gas lease may
be considered to have been done anywhere in that location and the location of
other petroleum and natural gas leases, each of which lies partially or wholly
within a circle having a 20 km radius, and all of which occupy not more than 144
units.
If a program of exploratory work beyond the boundaries of locations described in
the grouping notice has been approved by the director before the commencement
of the work, that work may be considered to have been done within the
boundaries of the locations.
The identity of the locations on which it is intended to do work under subsection
(1) must be included in the notice to the director, and the same location must not
be included in more than one notice during the period that elapses between
anniversaries of the date of lease issue.
Subsection (1) does not apply after the holder of a lease the location of which is
comprised in a notice under that subsection notifies the director that the notice is
no longer effective.
A location on which exists a well capable of production must not be included in a
grouping notice.
This section does not apply to a lease after the initial term of the lease expires.
RS1979−323−73; 1981−24−11; 1982−44−2; 1988−6−10; 1998−39−36.
Part 6: Division 5 – Term and Continuation
Expiration and continuation of leases
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58.
(1)
In this section, "eligible spacing area" means a spacing area that
(a)
contains a petroleum well or a gas well,
(b)
is subject to a scheme approved under section 100,
(c)
(2)
(3)
in the opinion of the director, covers, to the extent of at least one half of its
area, a pool of petroleum or natural gas that has been delimited, or
(d) in the opinion of the director, may be adequately drained by a petroleum
well or a gas well situated on a contiguous spacing area.
A lease issued under section 52 from a Class A permit, or issued in respect of a
location situated wholly or partly in a prescribed area, expires on the fifth
anniversary of the date it is issued, but any other lease expires on the 10th
anniversary of the date it is issued.
If a lease expires, whether after its initial term or after a continuation by the
director under this section, the director must, on application by the lessee made
not later than 60 days after the expiry of the lease,
(a) continue the lease for one year in respect of any eligible spacing area
included in the location of the expired lease,
(b) if the lease is subject to a unitization agreement under section 114 or to an
agreement under section 78 to establish the amount of royalty to be paid,
continue the lease for one year in respect of the parts of the location of the
lease that are subject to the unitization agreement,
(c) if the division head approves a yearly program of exploratory work
designed to delimit a pool, or a field of petroleum or natural gas, continue
the lease for one year in respect of all or part of its location, or
(d) if the drilling of or work on the establishment of a well is incomplete on
the expiry date of the lease and the director is satisfied that the drilling or
work will continue if the lease is continued, continue the lease for one year.
RS1979−323−74; 1988−6−11; 1993−12−15; 1998−39−40.
Stratigraphic reversion
59.
(1)
If at the relevant time referred to in this section, a lease is continued under section
58, the petroleum and natural gas rights granted by the lease that are
stratigraphically below the base of the deepest zone known by the director to be
capable of production in the lease or the part of the lease reverts to the
government and does not continue under the lease
(a) in the case of a 5 year lease, on the expiration of its initial term,
(b)
in the case of a 10 year lease, on the expiration of its initial term,
(c)
in the case of a 10 year lease that is a renewal of a 21 year lease, on the
expiration of its term, and
in the case of a 21 year lease, on the expiration of its initial term.
(d)
(2)
If at the relevant time referred to in this section, all or part of the lease is being
continued under section 61 or 62, subsection (1) applies to that lease for the part
so continued on the date on which the continuation ceases under section 61 or 62,
as the case may be.
RS1979−323−77; 1981−24−13; 1988−6−13; 1998−39−36.
Notice to drill
60.
(1)
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(2)
(3)
(4)
If the minister believes a lease location is not being developed sufficiently, the
minister may, except during the 3 years after the date of issue of the lease, require
the holder of the lease to submit, within 30 days from the date of the request, a
plan for the development of the lease location.
If the holder of a lease does not comply, or if the minister believes that a
development plan submitted is not adequate for the purposes of developing a
lease location, the minister may give notice to the holder requiring the holder to
begin the drilling of a well on the lease location.
A notice under subsection (2) may specify a spacing area in the lease location in
which the well is to be drilled, the depth to which the well is to be drilled and the
time within which the drilling of the well is to begin but in specifying the period
of time to begin the drilling, the minister will give regard to the accessibility of
the lease location, and to the availability of drilling equipment, and in no event
must the notice be less than 3 months.
On receiving the notice the lease holder must
(a)
(5)
begin drilling the well on the location of the lease and in the time specified
in the notice and after that continuously and diligently drill the well, or
(b) surrender all of the location of the lease except eligible spacing areas as
defined in section 58 (1).
If a well has been drilled pursuant to a notice and has been abandoned or
completed, the minister may at any time, except during the 6 months following
the date of the abandonment or completion, order the drilling of another well on
the lease location.
RS1979−323−78; 1988−6−14.
Continuation of lease for well drilling
61.
(1)
(2)
(3)
(4)
(5)
If, before the expiry of a lease, the lessee undertakes in writing to drill a well on
the location of the lease, the director must continue the lease for a further period
of one year.
If a lease has been continued under subsection (1), the director may, before it
expires and subject to subsection (3), again continue it for a period of one year,
beginning at the expiry of the year referred to in subsection (1).
Subsection (2) does not apply if drilling ceases during the one year continuation
under subsection (1), unless the lessee undertakes in writing, addressed to the
director, to drill another well on the location of the lease.
If the lessee fails to honour an undertaking given under subsection (1) or (3), the
director may cancel the lease.
If a well referred to in this section is completed as a petroleum well or a gas well,
section 58 (3) applies in respect of the location where the well is situated.
RS1979−323−79; 1988−6−15; 1998−39−36.
Continuation with penalty
62.
(1)
(2)
In this section, "10 year lease" means a lease that, under section 58 (2), expires
on the 10th anniversary of the date it is issued.
The term of a 10 year lease not continued under section 58 or 61 may be
continued in respect of all or part of its location for a maximum of 3 years on
payment to the government of the rental in accordance with the regulations, and
of a penalty of $15 for the first year or $25 for the second and third years
multiplied in each case by the number of hectares in the lease location.
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RS1979−323−80; 1982−44−20; 1988−6−16; 1993−12−16; 1994−50−21.
Default in rental or work
63.
Despite sections 58, 61 and 62, if a lessee fails to pay the rental or do work
required under section 56, the lease expires 60 days after the date the rental was
payable unless on or before the 60 days have elapsed, the lessee pays
(a) the rental and does the work, and
(b)
in addition, as a penalty for each 30 day period or portion of a period that
he or she is in default, a sum equal to 1.5% of the rental and value of the
work.
RS1979−323−81.
Surrender of leases
64.
With the approval of the minister, a lease may be surrendered in whole or in part
at any time, and a new lease issued.
RS1979−323−82.
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PART 7 – Spacing Areas
Normal spacing areas
65.
(1)
For the purposes of this Act, British Columbia, except where insufficient area
exists adjacent to its boundaries, is divided into normal spacing areas for
petroleum and natural gas wells as follows:
(a) each unit is a normal spacing area for petroleum wells;
(b)
(c)
the boundaries of a spacing area for a natural gas well in the Peace River
Block coincide with the boundaries of each section, and the boundaries of a
spacing area for a petroleum well coincide with the boundaries of each
quarter section;
in areas other than the Peace River Block
(i)
(2)
a normal spacing area for a natural gas well consists of an area
comprising 2 units by 2 units, and
(ii) the pattern of normal spacing areas for natural gas wells is based on
an initial 4 unit area centred on a corner common to any 4 blocks.
Subsection (1) does not apply to a well drilled only for the exploration,
development or use of a storage reservoir.
RS1979−323−83; 1988−6−17; 1993−12−17; B.C. Reg. 341/2006.
(ADD)
Jun
20/03
Other than normal spacing
65.1 (1) If the minister is satisfied that it would facilitate petroleum or natural gas
exploration and development, the minister may
(a) make regulations specifying other than normal spacing in an area of British
Columbia, or
(b) on application or on the minister’s own initiative, by order, specify other
than normal spacing for a parcel of land or location.
(2) The commission, by order, may approve or on its own initiative may specify
other than normal spacing for a pool or portion of a pool on a parcel of land or a
location if the commission is satisfied that it would facilitate drilling and
production operations.
(3) A regulation or order under subsection (1) or (2) must specify target areas within
each other than normal spacing area and may specify methods of determining and
conditions that apply to that spacing.
(4) Other than normal spacing, as specified under subsection (1) or (2), may be
varied by the commission in accordance with the terms and conditions of a
scheme approved under section 100.
2002−26−28.
Ministerial designations
66.
If a parcel of Crown reserve that contains other than a normal spacing area for a
natural gas well is acquired, the minister, on application by an owner, may
designate in that parcel other than a normal spacing area for a natural gas well.
RS1979−323−84.
No production unless other than normal spacing
areas pooled with adjoining areas
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(SUB)
Jun
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PETROLEUM AND NATURAL GAS ACT
67.
(1)
(2)
If a location contains other than a normal spacing area for a natural gas well, the
commission may issue a well authorization for the drilling of a natural gas well
on it, but production may not be taken from the location until it is pooled with
adjoining areas to form a normal spacing area or a spacing area prescribed or
ordered under section 65.1.
Subsection (1) applies to land referred to in section 85 (c) (ii) as if it were a
location.
2002−26−29.
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PART 8 – Pooling of Locations
Pooling of locations to operate spacing areas
68.
(1)
(2)
(3)
Two or more holders of locations in a spacing area may pool their locations for
purposes of joint development of the spacing area or joint operation of a well in
the spacing area, or both.
If locations are not pooled by agreement, the minister, either on the minister's
own initiative or on application by a holder, may invite submissions from
interested parties for the purpose of determining whether or not the locations
should be pooled.
After reviewing the submissions, the minister may refuse to make an order, or the
minister may
(a) order that the locations, or parts of the locations, as the minister may
designate, be pooled,
(b) order that a well be drilled and operated, or, if drilled, that it be operated,
(c)
(4)
(5)
designate a person the minister considers appropriate for the purpose of
carrying out an order, designation or requirement under this section,
(d) specify the proportions in which holders share petroleum and natural gas
produced,
(e) specify the proportions in which holders share the costs of drilling,
operating and abandoning the well, and
(f)
specify the manner and time in which, and the conditions subject to which,
petroleum and natural gas produced from the pooled locations must be
sold.
If locations are pooled, the drilling, operating and abandoning of the well, and the
production of petroleum and natural gas from the well, are deemed to be carried
out, in the proportions referred to in the pooling agreement or order, on the
location of each holder.
The minister may make a pooling agreement on behalf of the government on the
terms the minister believes proper.
RS1979−323−86; 1983−10−21.
Pooling by board order
69.
(1)
(2)
If petroleum and natural gas in a spacing area is reserved in part to persons other
than the government, those persons, or the holder of a location in the same
spacing area, may apply to the board for an order that all petroleum or natural gas
or both in that spacing area be pooled.
The board must include in the order terms and conditions respecting the pooling
that it considers necessary.
RS1979−323−86.1; 1988−6−18.
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PART 9 – Crown Reserves
Crown reserves
70.
The following petroleum and natural gas is reserved to the government:
(a)
(b)
(c)
(d)
(e)
(f)
(g)
petroleum and natural gas in fractional areas of less size than 2 units by 2
units, except in the Peace River Block;
petroleum and natural gas in fractional areas of less than a section in the
Peace River Block;
petroleum and natural gas in the location of a permit that does not become
included in the location of a lease;
petroleum and natural gas in the location of a cancelled, reverted or
abandoned permit, drilling licence and lease;
petroleum and natural gas in those areas the Lieutenant Governor in
Council may designate;
petroleum and natural gas in the location of a drilling licence that does not
become included in the location of a lease;
petroleum and natural gas rights that are surrendered, forfeited or escheated
to the government.
RS1979−323−87; 1981−24−15; 1982−44−21.
Disposal of Crown reserves
71.
(1)
(2)
The minister may dispose of Crown reserves of petroleum and natural gas, oil
sand, oil sand products, oil shale and oil shale products under terms the minister
sees fit, and a disposition must be at public auction or public tender not sooner
than 2 weeks after publication of a notice of the intended disposal in the Gazette.
Unless otherwise directed by the minister,
(a)
(3)
a lease issued under this section is subject to the terms of this Act as
though it had been applied for and issued under Part 6, and
(b) a permit issued under this section is subject to the terms of this Act as
though it had been issued under Part 5.
Section 56 does not apply to a disposition under this section or under any
regulation made under section 133 (2) (e).
RS1979−323−88.
Withdrawal from disposition
72.
(1)
(2)
The minister may, by order, withdraw Crown reserves of petroleum or natural gas
from disposition under section 71.
Crown reserves withdrawn under subsection (1) remain withdrawn until the
withdrawal order is cancelled by the minister and may be developed, managed or
disposed of by the minister in accordance with the terms and for the price
approved by the Lieutenant Governor in Council.
RS1979−323−89.
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PART 10 – Royalty
(ADD)
Apr
10/03
Appointments
72.1 (1)
(2)
The minister must appoint an employee of the ministry as the royalty
administrator.
The Minister of Provincial Revenue must appoint an employee of his or her
ministry as the royalty collector.
2003−23−73.
Royalties
73. (1)
(2)
(SUB)
Apr
10/03
(3)
(4)
Royalties are reserved to the government on petroleum and natural gas produced
from any location held under this Act.
The Lieutenant Governor in Council may prescribe the royalty that is payable to
the government for petroleum and natural gas and, without limiting that power,
the Lieutenant Governor in Council may make regulations respecting
(a) royalties in different amounts for different classes of petroleum or natural
gas,
(b) the person or class of person required to pay the royalty,
(c) the assessment and reassessment of royalty,
(d) appeals from assessment or reassessment of royalty,
(e) refunds of royalty,
(f)
exemptions from payment of royalty,
(g) time limits and time periods related to royalties including assessments,
reassessments, appeals, refunds or exemptions and including different time
limits and time periods for different classes of persons,
(h) the classification of petroleum or natural gas by any factors or
characteristics including qualities, locations or dates of initial production,
and
(i)
the calculation and payment of interest on overpayment of royalty.
For the purposes of the regulations made under subsection (2), the Lieutenant
Governor in Council may delegate powers to, and confer discretionary powers on,
one or both of the following:
(a) the royalty administrator;
(b) the royalty collector.
Section 16 of the Financial Administration Act does not apply to refunds of
petroleum and natural gas royalty payments.
RS1979−323−91; 1988−22−1,2; 1992−20−2; 1994−55−13; 2003−23−74.
(AM)
May
09/02
Duty to pay, penalty for breach and
refund in cases of overpayment
74. (1) Every person required to pay royalty must, on or before a prescribed date,
(a) pay any royalty due, and
(b) file and complete a report in the form and manner required by the director.
(2)
(3)
A person required to pay royalty who fails to pay royalty when it is due must pay
interest on the amount of the unpaid royalty as prescribed by the Lieutenant
Governor in Council.
If a person pays more money by way of royalty than the person is required to pay
under this Part, the government may calculate interest on the overpayment as
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(4)
(5)
prescribed and may
(a) refund the overpayment plus interest to the person, or
(b) credit the person's royalty account with the amount of the overpayment
plus interest.
Interest under subsection (3) (a) may be paid out of the consolidated revenue
fund.
If a person required to pay royalty fails to comply with subsection (1) (b), the
person must, in addition to any royalty payable, pay the prescribed penalty.
RS1979−323−92; 1980−36−42; 1988−22−3; 1992−20−3; 2002−25−64.
Enforcement
75.
(1)
(2)
A person authorized by the deputy minister for any purpose related to the
administration or enforcement of this Act may, by registered letter or by a
demand served personally, require from any person any information or additional
information, or the production of any records, within any reasonable time he or
she stipulates, if it is reasonable to make the demand in order to determine
liability or possible liability to pay the royalty under this Act.
If it is shown to the satisfaction of a justice on information in writing sworn by a
person authorized under subsection (1), that
(a) there are reasonable grounds to believe that any records relating to the
determination of the amount of royalty payable under this Act are kept at a
place identified in the sworn information, or
(b) any other thing that affects the amount of royalty payable under this Act is
kept or used or to be found at such place,
and that
(c)
(3)
(4)
a demand under subsection (1) has not been complied with or has not been
fully complied with or is, if made, likely to be refused, or likely to defeat
the object of the demand, or
(d) the records contain or the thing will provide or constitute evidence of an
offence under this Act or the regulations,
then the justice may by warrant under his or her signature in the form under the
Schedule to this Act authorize that person to enter that place and to search for and
seize those records, and to inspect, examine, measure and evaluate that thing.
A warrant issued under this section continues in force until the purpose for which
the entry is required has been satisfied.
An officer so authorized may take with him or her on or into the place to be
searched those other persons and equipment as may be necessary.
RS1979−323−92.1; 1988−6−19.
Books and records
76. (1) Every person carrying on business in British Columbia who is required under this
Act or the regulations to pay royalties or other amounts, must keep books or
records at his or her place of business in Canada or at another place designated by
the minister, in a form and including information that will enable the royalties
payable under this Act or the regulations to be calculated.
(AM)
(2) If, in the opinion of the royalty collector, a person has failed to keep adequate
Apr
books or records for the purposes of this Act or the regulations, the minister may
10/03
require the person to keep books or records the minister specifies, and that person
must after that keep the books or records so required.
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(3)
Every person required by this Act to keep books or records must, until written
permission for their disposal is obtained from the minister, retain every book or
record and every account or voucher necessary to verify the information in the
books or records.
RS1979−323−92.2; 1988−6−19; 1992−20−4; 2003−23−75.
(AM)
Apr
10/03
Attachment
77. (1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
If the royalty collector has knowledge or suspects that a person is or is about to
become indebted or liable to make a payment to a producer, the royalty collector
may demand that the person pay all or part of the money otherwise payable to the
producer to the royalty collector on account of the producer's liability under this
Act.
Without limiting subsection (1), if the royalty collector has knowledge or
suspects that a person is about to advance money to, or make a payment on behalf
of, or make a payment in respect of a negotiable instrument issued by a producer,
the royalty collector may demand that the person pay to the royalty collector on
account of the producer's liability under this Act the money that would otherwise
be advanced or paid.
If under this section the royalty collector demands that a person pay to the royalty
collector, on account of the liability under this Act of a producer, money
otherwise payable by that person to the producer as interest, rent, remuneration, a
dividend, an annuity or other periodic payment, the demand
(a) applies to all of those payments to be made by the person to the producer
until the liability under this Act is satisfied, and
(b) operates to require payments to the royalty collector, out of each payment,
of the amount stipulated by the royalty collector in that demand.
Money or a beneficial interest in money in a savings institution
(a) on deposit to the credit of a producer at the time a demand is served, or
(b) deposited to the credit of a producer after a demand is served
is money for which the savings institution is indebted to a producer within the
meaning of this section, but money on deposit or deposited to the credit of a
producer as described in paragraph (a) or (b) does not include money on deposit
or deposited to the credit of a producer in the producer's capacity as a trustee.
A demand under this section continues in effect until
(a) the demand is satisfied, or
(b) 90 days after the demand is mailed or served,
whichever is earlier.
Despite subsection (5), a demand made in respect of a periodic payment referred
to in subsection (3) continues in effect until it is satisfied unless no periodic
payment is made or is liable to be made within 90 days after the demand is
mailed or served, in which case the demand ceases to have effect on the
expiration of that period.
A person who fails to comply with a demand under subsection (1) or (3) is liable
to pay to the government an amount equal to the amount that the person was
required under subsection (1) or (3), as the case may be, to pay to the royalty
collector.
A person who fails to comply with a demand under subsection (2) is liable to pay
to the government an amount equal to the lesser of
(a) the aggregate of the money advanced or paid, and
(b) the amount that the person was required under subsection (2) to pay to the
royalty collector.
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(9)
The receipt of the royalty collector for money paid under this section is a good
and sufficient discharge of the original liability to the extent of the payment
(10) Money paid by any person to the royalty collector in compliance with a demand
under this section is deemed to have been paid by that person to the producer in
respect of which the demand was made.
(11) If a person carries on business under a name or style other than the person's own
name, a demand under subsection (1), (2) or (3) may be addressed to the name or
style under which the person carries on business and, in the case of personal
service, is deemed to be validly served if it is left with an adult person employed
at the addressee's place of business.
(12) If persons carry on a business in partnership, a demand under subsection (1), (2)
or (3) may be addressed to the partnership in its name and, in the case of personal
service, is deemed to be validly served if served on one of the partners or left with
an adult person employed at the partnership's place of business.
RS1979−323−92.3; 1994−50−22; 2003−23−76.
Agreement establishing royalty
78.
Despite section 73 and the regulations under that section, the minister may make
an agreement establishing the amount of royalty to be paid to the government,
and the method of calculating the royalty, on petroleum and natural gas produced
from a unitized operation or as the result of a conservation plan, scheme or
project, including, but not limited to, injection or pressurization schemes.
RS1979−323−93; 1998−11−17.
Obligation to pay royalty
79.
(1)
In this section:
"contract" means a contract for the sale and delivery of natural gas in which the
corporation is the purchaser;
"corporation" means the British Columbia Petroleum Corporation dissolved and
disestablished under section 2 of the Petroleum Corporation Repeal Act.
(2) Despite the terms of a contract entered into before July 1, 1985, the corporation is
not obliged to pay or satisfy any royalty levied by or on behalf of the government
against or in respect of natural gas produced on or after July 1, 1985.
(3) Compensation or damages are not payable by the government or the corporation,
and proceedings must not be commenced or maintained to claim compensation or
damages from, or to obtain a declaration that compensation or damages are
payable by, the government or the corporation as a direct or indirect consequence
of the enactment of this section.
(4) A contract affected by this section must not be held by a court to have been
frustrated by the operation of this section.
RS1979−323−93.1; 1985−53−13; 1994−55−14.
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PART 11 – Freehold Production Tax
Freehold production tax
80.
(1)
(2)
Every owner of freehold land must pay to the government a freehold production
tax calculated as a prescribed percentage of the value of the petroleum and natural
gas produced and disposed of from freehold land.
For the purpose of subsection (1), the Lieutenant Governor in Council may make
regulations prescribing a percentage, which percentage must not exceed 30%, and
may prescribe a different percentage for different classes of petroleum or natural
gas.
RS1979−323−93.2; 1992−13−17.
Nisga'a exemption
80.1 (1)
(2)
In this section, "Taxation Agreement" means the Nisga'a Nation Taxation
Agreement tabled in the Legislative Assembly on November 30, 1998, but does
not include any amendments made to that agreement after that date.
Despite section 80, a person is not subject to tax under this Act if and to the
extent that the Taxation Agreement provides that the person is not subject to tax
under this Act.
1999−2−59.
Application of Part 10 to freehold production tax
81.
Sections 73, 74, 75, 76, 77 and the Schedule to this Act respecting royalties
apply, in the same manner and to the same extent, to the freehold production tax
under this Part.
RS1979−323−93.3; 1992−13−17; 1993−12−18; 1994−50−23.
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PART 12 – Conservation
Conservation: application
82.
This Part and Parts 7 and 8 apply to every well located in British Columbia
whenever drilled.
RS1979−323−94.
Part 12: Division 1 – Well Authorization
Well authorization
83.
A person must not begin to drill, or drill or operate, a well except under a
subsisting well authorization.
RS1979−323−95.
(SUB)
Jun
20/03
Certificate of restoration
84. (1) A person must be considered not to have abandoned a well, test hole or
production facility until the commission issues, on application, a certificate of
restoration respecting the well, test hole or production facility.
(2) By issuing a certificate of restoration in the form the commission determines, the
commission may certify that it is satisfied, on the basis of the information known
to the commission at the time of certification, that a well, test hole or production
facility has been abandoned in accordance with the regulations.
(3) In respect of any matter that was not known to the commission at the time a
certificate of restoration was issued, the issue of a certificate of restoration does
not absolve the holder of a well authorization or test hole authorization or the
owner of a production facility from their obligation to abandon the well, test hole
or production facility in accordance with the regulations.
2003−1−20.
Environmental Management Act requirements
must be met
(SUB)
84.1 (1) This section applies to an application for a certificate of restoration with respect
Jul
to a well, test hole or production facility in accordance with section 84.
08/04
(2) The commission must not approve an application referred to in subsection (1)
with respect to a site where a site profile is required under section 40 of the
Environmental Management Act unless at least one of the following is satisfied:
(a) the commission has received a site profile required under section 40 of the
Environmental Management Act with respect to the site and the
commission is not required to forward a copy of the site profile to a
director under section 40 (4) (b) of that Act;
(b) the commission has received a site profile under section 40 of the
Environmental Management Act with respect to the site, has forwarded a
copy of the site profile to a director under section 40 (4) (b) of that Act and
has received notice from the director that a site investigation under section
41 of that Act will not be required by the director;
(c) the commission has received a final determination under section 44 of the
Environmental Management Act that the site is not a contaminated site;
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(d)
(e)
(f)
(g)
the commission has received notice from a director under the
Environmental Management Act that the commission may approve an
application under this section because, in the opinion of the director, the
site would not present a significant threat or risk if the application were
approved;
the commission has received notice from a director under the
Environmental Management Act that the director has received and accepted
a notice of independent remediation with respect to the site;
the commission has received notice from a director under the
Environmental Management Act that the director has entered into a
voluntary remediation agreement with respect to the site;
the commission has received a valid and subsisting approval in principle or
certificate of compliance under section 53 of the Environmental
Management Act with respect to the site.
2003−53−168.
Applications
85.
(SUB)
Jun
20/03
An application for a well authorization must be made to the commission and is
not valid unless
(a) it is accompanied by the fee and prescribed drilling deposit,
(b) it is made in accordance with the regulations,
(c) the applicant is entitled to drill the well for which the authorization is
requested or to drill for and produce petroleum or natural gas, or both,
through the well
(i)
as the holder of the location on which the well is to be drilled, or by
agreement with the holder, if the application relates to land in which
the petroleum and natural gas rights are held by the government, or
(ii) as the owner of the petroleum and natural gas rights, or by
agreement with the owner, if the application relates to land in which
the petroleum and natural gas rights are not held by the government,
(d) it contains the number or other accurate identification of the location held
by the applicant in which the well is to be drilled and, when an agreement
exists, a letter of consent from the holder of the location, and
(e) there is a program of drilling operations proposed to be followed under the
authorization.
RS1979−323−97; 1982−44−3; 1998−39−31; 2002−26−30.
Cancellation
86.
(AM)
Jun
20/03
A well authorization may be cancelled by the commission
(a) if the drilling of the well for which the authorization was issued is not
begun within 90 days of the date of issue of the authorization,
(b) at the request of the person to whom the authorization was issued,
(c) if it appears to the commission that there has been a contravention of this
Act or a regulation or order made for the well for which the authorization
was issued,
(d) if the commission has mailed to the person to whom the authorization was
issued a notice requiring that person to prove to the satisfaction of the
commission that he or she is entitled to drill the well for which the
authorization was issued or to drill for and extract petroleum or natural gas,
or both, through the well, and the person has not, on or before the 30th day
after the day on which the notice was mailed, complied with the
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(SUB)
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(e)
requirement, or
if the commission is satisfied that the holder of the well authorization is not
entitled to drill the well for which the authorization was issued or to drill
for and extract petroleum or natural gas, or both, through the well
(i)
as the holder of the location, or by agreement with the holder, if the
well authorization relates to land in which the petroleum and natural
gas rights are held by the government, or
(ii) as the owner of the petroleum and natural gas rights, or by
agreement with the owner, if the well authorization relates to land in
which the petroleum and natural gas rights are not held by the
government.
RS1979−323−98; 1982−44−3; 1998−39−31; 2002−26−31.
Suspension
87.
The commission may suspend a well authorization for a definite time or
indefinitely if satisfied that a contravention of this Act or a regulation or order has
occurred regarding the well for which the authorization was granted.
RS1979−323−99; 1982−44−3; 1998−39−42.
Obligations on abandonment of a well or
cancellation of a well authorization
(SUB)
88.
If any of the following circumstances exist, a person who drills a well or produces
Jun
petroleum or natural gas from a well must complete or abandon the well, or
20/03
suspend operations, in accordance with the regulations and directions that may be
given by the commission:
(a) the person drills or operates the well without a valid well authorization;
(b) the person is the holder of a well authorization but ceases to be the holder
of the location;
(c) the person fails to maintain a required agreement referred to in section 85
(c);
(d) the commission cancels the well authorization.
2002−26−32.
Part 12: Division 2 – Test Hole Authorizations
Test hole authorization
89.
A person must not begin to drill or drill a test hole except under a subsisting test
hole authorization under this Act.
RS1979−323−101.
(SUB)
Jun
20/03
Application
90.
An application for a test hole authorization must be made to the commission and
is not valid unless all of the following requirements are met:
(a) it is accompanied by the fee;
(b) it is made in accordance with the regulations;
(c) if the application is in respect of land in which the petroleum and natural
gas rights are not held by the government, the applicant is the owner or has
an agreement with the owner of the petroleum and natural gas rights to drill
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the test hole.
2002−26−33.
(SUB)
Jun
20/03
Cancellation
91.
A test hole authorization may be cancelled by the commission for any of the
following reasons:
(a) the drilling of the test holes for which the authorization is issued is not
begun within 90 days of the day on which the authorization was issued;
(b) the holder of the authorization requests the cancellation;
(c) it appears to the commission that a contravention of this Act or of a
regulation or order has occurred with respect to a test hole for which the
authorization was issued;
(d) the holder of the authorization fails to maintain ownership of the petroleum
and natural gas rights or an agreement referred to in section 90 (c) with the
owner of the petroleum and natural gas rights.
2002−26−33.
Suspension
92.
The commission may suspend a test hole authorization for a definite time or
indefinitely if satisfied that a contravention of this Act or of a regulation or order
has occurred with respect to a test hole for which the authorization was issued.
RS1979−323−104; 1982−44−3; 1998−39−42.
Part 12: Division 2.1 – Water Source Well Authorizations
(ADD)
Jun
20/03
Water source well authorization
92.1
A person must not begin to drill, or drill or operate, a water source well except
under a subsisting water source well authorization under this Act.
2003−1−21.
(ADD)
Jun
20/03
Scope of water source well authorization
92.2
A water source well authorization may authorize the holder to drill one or more
test holes in a specified area.
2003−1−21.
Application of Divisions 2, 3 and 4
to water source wells
(ADD)
92.3
Sections 90 (a) and (b), 91 (b) and (c), 92 to 95 and any other provision of this
Jun
Act specified by regulation apply to water source well authorizations, and for that
20/03
purpose a reference in those sections to a test hole or well must be read as a
reference to a water source well and a reference to a test hole authorization or
well authorization must be read as a reference to a water source well
authorization.
2003−1−21.
Power to suspend use of water source well
that injuriously affects other uses
(ADD)
92.4
The commission may suspend the operation of a water source well if satisfied that
Jun
its continuing use by the water source well authorization holder injuriously
20/03
affects use of the water source for domestic or other purposes.
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2003−1−21.
Part 12: Division 3 – General
Grant and refusal of authorizations
93.
(1)
(2)
The commission may grant, subject to conditions, restrictions and stipulations, or
refuse to grant a well authorization or test hole authorization.
The commission must keep a record of each well authorization and test hole
authorization.
RS1979−323−109; 1982−44−3; 1994−50−25; 1998−39−43.
Transfer
94.
(1)
A well authorization or test hole authorization must not be transferred unless
(a) the commission consents in writing to the transfer,
(b) the document that is the evidence of the transfer is filed with the
commission, and
(c) the fee has been paid to the Minister of Finance.
(2)
The commission must keep a record of each transfer to which it has given
consent.
(AM)
Apr
01/04
RS1979−323−110; 1982−44−3; 1994−50−26; 1998−39−44; 2003−54−27,Sch A.
Part 12: Division 4 – Well Register
Well register
95.
The commission must maintain a record of each well drilled, to be known as the
well register, and in which the following must be entered for each well
(a) the name of the well, changes in name and the location of the well;
(b)
the well authorization number;
(c)
the name of the person to whom the authorization was issued or transferred
and his or her agents;
the name of the drilling contractor.
(d)
RS1979−323−111; 1982−44−3; 1998−39−31.
Part 12: Division 5 – Regulations and Orders
(AM)
Nov
24/00
Regulations and orders of commission
96. (1) The commission may make regulations of general application or may make an
order related to a specific location or well, governing the drilling, operation or
abandonment of wells and the production, conservation and processing of
petroleum, natural gas and sulphur produced from natural gas or the development
or use of a storage reservoir and, without limiting that power, the commission
may do the following:
(a) Repealed. [1998−39−45]
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(b)
(SUB)
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(AM)
Jun
20/03
(ADD)
Jun
20/03
prohibit the drilling of a well at any point within a specified distance of any
boundary, roadway, road allowance, right of way, building of any specified
type or any specified works, either public or private;
(c) specify and describe the part of a spacing area in which a well is to be
completed, and provide penalties for and prohibitions against completing
the well in other parts of the spacing area;
(d) require the submission of an application and the obtaining of the approval
of the commission before
(i)
deepening a well beyond the formation from which production is
being taken or has been taken,
(ii) recompleting a well by perforating any casing with a view to
producing from any formation other than that from which production
is being taken or has been taken,
(iii) suspending normal drilling operations,
(iv) ceasing normal producing operations,
(v) resuming drilling operations after a previous completion, suspension
or abandonment of a well,
(vi) resuming production operations after a cessation of production,
(vii) reworking a well to alter its producing characteristics, or
(viii) abandoning a well,
and authorizing the division to specify the conditions under which approval
is granted in any such case, and the methods to be employed in a drilling or
abandonment operation;
(e) specify the conditions under which drilling operations may be carried out
in water covered areas, and any special measures to be taken;
(f)
specify the measures to be adopted to confine petroleum, natural gas or
water encountered during drilling operations to its original stratum, and to
protect the contents of the stratum from infiltration, inundation and
migration;
(g) establish, adopt or specify the minimum standards of tools, casing,
equipment, materials and procedures that may be used for drilling,
development, production or storage of petroleum or natural gas or for
injecting or disposing of water, natural gas or other substances associated
with the drilling, development, production or storage of petroleum or
natural gas;
(h) make regulations respecting test hole drilling or experimental schemes and
defining different depths and requirements for different kinds of test holes;
(h.1) make regulations respecting water source wells and the requirements for
applications for water source wells;
(i)
govern the drilling of multizone wells, prohibit completion of a well as a
multizone well without the permission of the commission, prohibit the use
of a well for the production from or injection to more than one zone
without the approval of the commission, and authorize the commission to
specify the conditions under which it grants its approval;
(j)
prohibit the drilling through petroleum, natural gas, water, coal or other
minerals without taking adequate measures to confine petroleum, natural
gas or water to its own stratum, and to protect any coal seam or other
mineral deposit or any workings in it from injury, and specify the nature
and extent of the measures;
(k) require the provision of adequate well casing and the proper anchorage and
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(l)
(m)
(n)
(SUB)
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(SUB)
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cementation;
require and specify samples, tests, analyses, surveys, logs, records, other
necessary information, the method of taking samples and submission of the
records and information to the commission;
specify the measures to be taken before drilling begins and during drilling
and production to conserve petroleum, natural gas or water likely to be
encountered;
specify or limit the methods of operation to be observed during drilling and
in the subsequent management of a well and the conduct of an operation
for any purpose, including
(i)
protection of life, property and wildlife,
(ii) prevention and extinguishment of fires,
(iii) prevention of wells flowing out of control, and
(iv) prevention of pollution of water, air or land;
(o)
(SUB)
Nov
24/00
(AM)
Nov
24/00
(2)
(ADD)
Jun
20/03
(3)
regulate the location, equipping, deactivation, decommissioning and
reclamation of production facilities;
(p) regulate the conditioning or reconditioning of wells by mechanical,
chemical or explosive means;
(q) regulate the inspection of wells both during and after drilling;
(r)
provide for the capping or otherwise closing in of wells for the purpose of
preventing waste;
(s)
require the cleaning out or abandonment of a well;
(t)
Repealed. [1998−39−45]
(u) regulate the release of well and test hole records and data, geological and
geophysical reports and reports other than well reports and well data, and
regulate the naming of wells and production facilities;
(v) and (w) Repealed. [1998−39−45]
(x) specify measures to contain and eliminate spillage;
(y) exempt a person or equipment or class of person or equipment from
measures to contain and eliminate spillage;
(z) regulate general conservation of petroleum, natural gas and sulphur
produced from natural gas, their waste or improvident disposition, and any
matter incidental to petroleum or natural gas wells' development, drilling,
operation and production.
A regulation or order made under this section may provide that employees of the
commission designated by it may exempt in writing a person from the application
of all or part of the regulation or order, in relation to a particular site or
installation and subject to specified conditions.
The commission may by regulation specify that, in addition to the provisions
referred to in section 92.3, any other provision of this Act applies to a water
source well or water source well authorization.
RS1979−323−112; 1981−24−17; 1982−44−2,3; 1983−10−21,22; 1986−15−30; 1988−6−20; 1992−20−5; 1994−50−27;
1998−39−45; 2000−26−39; 2002−26−34; 2003−1−22.
Commission regulations and orders
97.
The commission may, by regulation of general application or by order related to a
specific location or well, do the following:
(a) designate a field by describing its surface area;
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(b)
(c)
(d)
(e)
(f)
designate a pool by describing the surface area vertically above the pool
and by naming the geological formation and the zone in which the pool
occurs;
determine whether a field or pool described in paragraph (a) or (b) may be
operated for the production of petroleum or natural gas, or both;
designate the area that is to be allocated to a well in connection with fixing
allowable production;
control and regulate the production of petroleum, natural gas and water by
restriction, proration or prohibition;
require the disposal of water produced into an underground formation or
otherwise, under terms the commission may specify.
RS1979−323−113; 1982−44−3; 1983−10−21; 1998−39−31.
Minister's regulations and orders
98.
The minister may, by regulation of general application or by order related to a
specific location or well, restrict the amount of petroleum or natural gas, or both,
that may be produced in British Columbia by doing the following:
(REP)
(a) to (c) Repealed. [2003−1−23]
Jun
20/03
(d)
(e)
limiting the total amount of natural gas that may be produced from a pool
without waste, having regard to the market demand for natural gas, as
determined by the minister, to an amount required for the efficient use of
natural gas for the production of petroleum, and for the efficient utilization
of the natural gas reserves of British Columbia;
distributing the amount of natural gas that may be produced from a pool in
a manner among the wells in the pool that each owner may produce or
receive his or her fair share of the natural gas in the pool.
RS1979−323−114; 1983−10−21; 2003−1−23.
Prevention of waste
99.
In order to prevent waste, the commission may
(a)
(b)
require the repressuring, recycling or pressure maintenance of any pool or
portion of it, or require the use of any other enhanced recovery technique,
and for or incidental to that purpose require the introduction or injection
into any pool or part of it of natural gas, air, water or other substance, and
require that any natural gas be gathered, processed if necessary and that the
natural gas or liquid hydrocarbons extracted be marketed or injected into
an underground reservoir for storage or for any other purpose.
RS1979−323−115; 1998−39−29.
(SUB)
Jun
20/03
Approval of schemes
100. (1) A scheme for any of the following must not be proceeded with unless the
commission, by order, approves the scheme on terms the commission specifies:
(a) the development or production of petroleum or natural gas, or both, from a
field or pool or portion of a field or pool;
(b) the experimental application of oil field technology as defined by
regulation;
(c) the processing, storage or disposal of natural gas;
(d) the gathering, storage and disposal of water produced from a field or pool.
(2)
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(3)
(4)
For the purposes of subsection (1), "development or production" includes the
use of repressuring, recycling, pressure maintenance or any other enhanced
recovery technique.
On approving a scheme under subsection (1), the commission may, by order,
waive or modify the operation of section 65 if the scheme would facilitate
development and production operations or the conservation of petroleum or
natural gas, or both.
The commission may cancel or suspend the approval of a scheme
(a) at the request of the person to whom the approval was given, or
(b) if it appears to the commission that there has been a contravention of this
Act, the regulations, an order respecting the approval or a condition of the
approval.
2002−26−35.
Escape of petroleum, gas or water
101.
If at any time an escape of petroleum or natural gas from a well is not prevented
or if a flow of water is not controlled, the commission may take the means it
considers necessary or expedient in the public interest to control and prevent the
escape.
RS1979−323−117; 1982−44−2; 1998−39−46.
Discontinuance of operations
102. (1)
(2)
(3)
If the commission is satisfied, after an inquiry held on the notice and to the
persons it believes proper, that a well is being operated in a way that contravenes
this Act, the regulations or an order made under this Act, the commission may
order that on and after a date to be set by the order no production is to be
permitted from the well and that it is to be shut in and kept shut in until the
commission orders to the contrary.
If the commission believes waste, damage to property or pollution can be
prevented, the commission may order the well to be shut down pending the
inquiry, which must be held within 15 days after the order.
If it appears to the commission that a method or practice being employed in a
drilling, completion, suspension, abandonment or production operation is in any
way inadequate, improper or hazardous, the commission may order orally,
confirmed by a note in the daily drilling report book, that the operation be
discontinued until methods approved by the commission are adopted.
1998−39−47.
Prescribing methods of measurement
103. (1)
(2)
The commission may prescribe the methods to be used for the measurement of
petroleum, natural gas and water, and the standard conditions to which the
measurements are to be converted.
If methods of measurement and standard conditions are prescribed under this
section, they must be used whenever the measurement of petroleum, natural gas
or water is required under this Act.
RS1979−323−119; 1982−44−3; 1998−39−48.
Part 12: Division 6 – Right of Access and Inspection
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Access and inspection
104. (1) At any reasonable time, persons authorized by the commission
(a) have access to all wells, equipment, plants and records,
(b) are entitled to enter on and inspect any well or place at which petroleum or
natural gas is refined, handled, processed or treated, or place used or
occupied for those purposes,
(c) are entitled to inspect all books, documents, records, plant and equipment
pertaining to or found at any such well or place, and
(d) may take samples or particulars or carry out tests or examinations desired.
(AM)
(2) A person authorized by the commission to exercise any of the powers referred to
Nov
in subsection (1) must, before doing so, produce on demand his or her
24/00
identification card issued by the commission.
RS1979−323−120; 1982−44−3; 1998−39−31; 2000−26−40.
Part 12: Division 7 – Wild Well Control
Wild well control
105. (1)
(2)
(3)
(4)
(5)
When the commission believes that, because of hazardous conditions in a field or
at a well, it is necessary or expedient to close an area and to shut out all persons
except those specifically authorized, the commission may make an order in
writing setting out and delimiting the closed area.
During the time the order is in effect, a person may not enter, travel about or
remain in the area without a travel permit from the commission.
The order may contain terms that the commission considers necessary to prevent
fire in the closed area.
The commission may provide for notice that is practicable under the
circumstances, and may publish the order setting out the area closed in those
newspapers that the commission believes will give adequate publicity.
In addition to the notice, the commission must advise an appropriate
representative of the Department of Transport of Canada of the contents of the
order.
RS1979−323−121; 1998−39−29.
Enforcement of orders and costs
106. (1) Without restricting section 105, if the commission considers that the control of a
well or any completion, suspension or abandonment is not in accordance with the
commission's order, direction or requirement, any person authorized by the
commissioner has access to and may enter the well site or any structures and do
whatever the commission believes necessary because of the failure to comply
with the order, direction or requirement.
(AM)
(2) The Minister of Finance may use or spend all or any part of the deposit made by
Apr
the owner to defray the costs, determined by the commission, of or incidental to
01/04
the work of control, completion, suspension or abandonment of the well to the
satisfaction of the commission.
(3) The return of the deposit or a part of it does not relieve the owner of the well of
liability for any costs of or incidental to the control, completion, suspension or
abandonment of a well and does not reduce the owner's liability for those costs.
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(AM)
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01/04
(4)
The costs incurred by the commission under this section remaining unpaid after
applying a deposit held by the Minister of Finance are a debt payable by the
owner of the well to the Minister of Finance.
RS1979−323−122; 1982−44−3,4; 1998−39−49; 2003−54−27,Sch A.
(AM)
Nov
24/00
Spillage
107. (1)
(2)
(3)
In this section and section 108, "spillage" means petroleum, natural gas, brine or
other substances escaping, leaking or spilling from a well, field flow lines or
production facility or from any source apparently associated with them.
An owner of a well, field flow lines or production facility must do the following:
(a) make every reasonable effort to prevent spillage;
(b) if spillage occurs, promptly remedy the cause or source of the spillage,
contain and eliminate the spillage and restore and reclaim any land or
watercourse affected by the spillage;
(c) promptly report to the commission the location and severity of a spillage,
break, leak or malfunction that is causing or contributing or is likely to
cause or contribute to spillage, and any action taken or proposed under this
paragraph or paragraph (b).
A person who is aware that spillage is occurring, or is likely to occur, must make
every reasonable effort to prevent or assist in preventing the spillage and, if the
spillage, break, leak or malfunction has not been reported to the commission,
promptly report it.
RS1979−323−123; 1998−39−29; 2000−26−41.
Measures to contain and eliminate spillage
108. (1)
(2)
(3)
(4)
In this section, "measures to contain and eliminate spillage" include preventing
spillage, repairing or remedying its cause or source, containing and eliminating it
and restoring and reclaiming land or a watercourse affected by spillage.
If spillage occurs or is, in the opinion of the commission, likely to occur, and
appropriate measures to contain and eliminate spillage satisfactory to the
commission are not being carried out, the commission may do the following:
(a) order any person who the commission believes is responsible for the
spillage or the source or cause of likely spillage to do the things the
commission considers necessary to implement and carry out measures to
contain and eliminate spillage;
(b) enter any land or watercourse and do the things the commission considers
necessary;
(c) order the use of any equipment, or order a person between the age of 16
and 60 years who is not physically unfit or exempt by regulation, to assist
in measures to contain and eliminate spillage;
(d) order that any spillage be disposed of or sold as the commission directs,
and that any proceeds of the sale be applied to the cost of the measures to
contain and eliminate spillage.
The commission may order any owner to prepare and implement, in a form and
manner satisfactory to the commission, a program of measures to contain and
eliminate spillage.
If costs or expenses are incurred by the commission in implementing or carrying
out the measures to contain and eliminate spillage, the commission must do the
following:
(a) order a person to pay or contribute to the costs or expenses;
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(b)
(c)
order that a person indemnify the government or any other person for costs
or expenses paid by them;
direct the manner of payment or indemnification.
RS1979−323−124; 1998−39−29.
Further powers of commission for enforcement
109. (1)
Under this Division, the commission, for the enforcement of any order made by
the commission, may
(a) take the steps and employ the persons the commission considers necessary,
(b)
(c)
(d)
forcibly or otherwise enter, seize and take possession of any well, together
with all or part of the movable and immovable property in, on or about the
well or used in connection with it together with any of the records pertinent
to it,
either discontinue all production or take over the management and control
of it,
plug the well at any depth, and
(e)
(2)
(3)
(4)
(5)
(6)
(7)
take the steps the commission considers necessary to prevent the flow or
escape of petroleum, natural gas or water from any stratum that the well
enters.
On the commission taking possession of a well and so long as that possession
continues, every officer and employee of the owner of the well, agent or
contractor must obey the orders concerning the well given by the commission, or
by a person placed in charge or control of the well.
On possession being taken of any well, the minister may take, deal with and
dispose of all petroleum and natural gas produced at the well as if it were the
property of the government, subject to the payment of the net proceeds of it as
provided in this section.
The costs and expenses of and incidental to proceedings taken under this section
are in the discretion of the minister, who, after consulting with the commission,
may direct by whom and to what extent the costs are to be paid.
Without restricting subsections (1) to (4), the minister may pay, from the
proceeds of the petroleum and natural gas produced at the well,
(a) all costs and expenses of and incidental to the proceedings taken under this
section, including the costs and expenses of the commission's management,
operation and control of the well, and
(b) all costs and expenses of carrying out investigations and conservation
measures that the minister believes necessary in connection with the well.
The net proceeds of the petroleum and natural gas produced at the well remaining
after payment of the costs and expenses under subsection (5) must be paid by the
minister into the Supreme Court, and must be paid out to the persons and in the
amounts as may be determined by the court on application of a person claiming to
be entitled to any of the proceeds.
If the proceeds of the petroleum and natural gas produced at the well are not
sufficient to pay all costs and expenses of and incidental to the proceedings,
investigations and measures taken, and the minister directs that the balance of the
costs and expenses or any part of it is to be paid by the owner of the well, then the
provisions of section 106 regarding the use of the deposit and regarding the
further liability of the owner of the well with respect to the costs referred to in
that section apply to the use of the deposit, and to the further liability of the
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owner, to defray the balance of the costs and expenses that are incurred under this
section.
RS1979−323−125; 1982−44−3; 1998−39−50.
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PART 13 – General
Prohibition
110.
A person must not, except under this Act and the regulations,
(a)
(b)
do or cause to be done any geological or geophysical work or drilling by
way of or incidental to exploration for petroleum or natural gas that is the
property of the government, or
produce or cause to be produced or do or cause to be done anything for the
purpose of producing petroleum or natural gas that is the property of the
government.
RS1979−323−126.
Production
111.
With the approval of the minister, a permittee or licensee may produce petroleum
or natural gas from one or more wells on his or her location in accordance with
whatever terms are specified.
RS1979−323−127; 1981−24−18; 1983−10−21; 1993−12−19.
Saving
112.
The inclusion in a location of petroleum or natural gas that does not belong or is
not reserved to the government does not invalidate a permit, drilling licence or
lease for the remainder of the location.
RS1979−323−128; 1981−24−19.
Affidavits
113.
An affidavit required under this Act may be made before
(a)
a person authorized under the Evidence Act, or
(b)
any commissioner appointed under this Act.
RS1979−323−129.
(AM)
Nov
24/00
Unit agreement
114. (1) The minister may, on behalf of the government, enter into a unitization agreement
for the unitized operation of a field or pool or a part of it, and on its execution the
unitization agreement is, subject to compliance with section 100, and other
relevant provisions of this Act, binding on all parties to it, including the
government.
(2) Section 117 does not apply to an agreement entered into under this section.
RS1979−323−130; 2000−26−42.
Unitization order
115. (1)
On receiving an application for a unitization order from a working interest owner
or group of working interest owners who have agreed in writing to a proposed
plan of unit operations, the minister may invite submissions from interested
persons to consider the advisability or necessity for an agreement.
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(2)
After reviewing the submissions, the minister may reject the application or make
a unitization order requiring that the plan of unitized operations proposed by the
applicant be applicable to all of the proposed unit area, or any smaller area the
minister determines, and on the making of the order it is binding on all owners of
interests in the unit area.
RS1979−323−131; 1988−6−21.
Notification of work
116.
A person must not begin geological or geophysical work until the person has
notified the commission of the person's intention to do so.
1998−39−51.
Transfers and assignments
117. (1)
A transfer, assignment, agreement or instrument affecting the title to a location
must not be recorded or is not effective unless
(a) the transfer or other instrument does not conflict with this Act, and
(b)
(2)
(3)
(4)
(5)
(6)
the transfer or other instrument is made by or on behalf of the recorded
holder of the location.
A transfer or other instrument affecting the title to a location is deemed to be
recorded and be effective from the time that the application to record it is
received by the director.
Failure to record a transfer or other instrument affecting the title to a location
does not invalidate it as between the parties to it, but subsection (2) governs its
effectiveness for any other person.
A transfer or other instrument affecting title to a location must not be recorded
unless it is accompanied by the fee.
Each transfer or other instrument affecting title to a location when made by an
individual under this Act must be witnessed by a witness who must sign his or her
name and address, and when made by a corporation must be properly executed
under the seal of the corporation or its authorized attorney.
If, by an instrument made under section 426 of the Bank Act (Canada), a lease
from the government of petroleum or natural gas, or both, or any interest in the
lease, is assigned, transferred or set over as security to a chartered bank by the
lessee or by a person having an interest in the lease, there may be registered with
the director, on payment of the fee,
(a) an original or an executed copy of the instrument giving the security, or
(b)
(7)
a copy of the instrument giving the security certified by an officer or
employee of the bank to be a true copy.
A holder of a location may make a valid transfer of his or her permit, drilling
licence or lease directly to himself or herself or jointly with another person and if
the permit, drilling licence or lease is held by more than one person, they may
make a transfer directly to one or more of their number either alone or jointly
with another person and a trustee or personal representative may make a valid
transfer of a location to himself or herself individually if the making of the
transfer is otherwise within his or her power.
RS1979−323−133; 1981−24−20; 1982−44−22; 1998−39−36.
Prohibition against equipment removal
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118.
A person who has in any way failed to comply with
(a)
this Act or the regulations,
(b)
a notice given or order made under this Act or the regulations, or
(c)
a term, promise or condition of his or her permit, drilling licence or lease,
must not remove or allow to be removed equipment from a location or former
location without permission in writing from the commission.
RS1979−323−134; 1981−24−21; 1998−39−52.
Cancelled, reverted or abandoned locations
119. (1)
(2)
(3)
(4)
(5)
(6)
When a location has been cancelled, reverted or abandoned, and all claims under
this Act have been satisfied, any property on the location may be removed by the
owner of it within one year after the cancellation, reversion or abandonment, but
nothing from the location may be used for producing petroleum or natural gas on
the location during that period.
The director may extend the period for removal for not more than one year.
If property has not been removed from the location of a permit, licence or lease
by the end of the period specified in subsection (1) or (2), it vests in the
government.
Subsections (1) to (3) apply to anything remaining on a location at the time of its
cancellation, reversion or abandonment under any former petroleum and natural
gas legislation.
The minister may dispose of property vested in the government under this
section,
(a) if, in the minister's opinion, its value is not more than $500, as the minister
sees fit,
(b) if, in the minister's opinion, its value is more than $500, by sale or lease by
public tender after an advertisement of the intention to sell or lease the
property by public tender has been posted for 14 days in the office of the
director and published in not less than 2 issues of a newspaper circulating
in the district in which the location is or was situated, or
(c) if the property is not sold or leased under paragraph (a) or (b), as the
minister sees fit.
The minister may use the proceeds of any sale or lease under this section to settle,
in the manner that in his or her sole discretion the minister sees fit, just claims
made against the property or the owner before the date of the sale or lease.
RS1979−323−135; 1981−24−22; 1998−39−36.
Abandonment
120.
A person may abandon a permit, drilling licence or lease by surrendering it to the
director and after the surrender, the permittee, licensee or lessee has, subject to
section 119, no further interest in it and he or she is not entitled to a refund of
rental payments or fees.
RS1979−323−136; 1981−24−23; 1998−39−36.
Survey of lease
121. (1) The location of each lease on which petroleum or natural gas has been discovered
must be surveyed by a British Columbia land surveyor within one year from the
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(SUB)
Apr
29/04
(AM)
Jan
21/05
(2)
(3)
date of instructions by the minister to do so, and any location not surveyed within
that time may be cancelled, unless the lessee can prove to the minister that,
through no fault on his or her part, the lessee has been unable to obtain a British
Columbia land surveyor to survey the location.
A survey under this section must be made in accordance with the requirements of
the Surveyor General and the rules made under subsection (3).
The Association of British Columbia Land Surveyors may make rules under
section 75 of the Land Surveyors Act that the association considers necessary or
advisable for surveys, and all matters that relate to surveys, required under this
Act.
RS1979−323−137; 1994−50−29; 2004−21−70; 2004−21−71.
Reports and other instruments
122. (1)
(2)
(3)
(4)
Subject to subsection (2), all records and instruments relating to petroleum and
natural gas title recorded under this Act must, during normal office hours, be
open to public inspection free of charge.
Geological, geophysical and reports other than well reports and well data
received by the ministry in the course of the administration of this Act, and
designated by the minister as confidential, must not be released except under an
order of the Lieutenant Governor in Council.
With the permission in writing of the person who holds the licence, permit or
lease for a location dealt with in the report, the minister may, however, at his or
her sole discretion, release information contained in the report.
The Lieutenant Governor in Council may release factual information considered
confidential when it is considered in the public interest to do so.
RS1979−323−138.
Dangerous operations
123. (1)
(2)
The commission may order summarily an operation under this Act to be carried
on or stopped so as not to interfere with or endanger the safety of the public, a
public work or highway or a petroleum or natural gas property, and may order
any abandoned works to be safeguarded to its satisfaction at the cost of the owner
or the parties who constructed the works, or both.
If the owner or the parties who constructed the works cannot be found, the
minister may direct that the work be done and payment be made from the
consolidated revenue fund.
RS1979−323−139; 1982−44−2; 1998−39−53.
Boundaries
124.
Despite anything in this Act, the boundaries of a location in any area where the
boundaries of units and blocks do not coincide with surveyed boundaries of
sections, townships or other existing district lot system may be established to
coincide with the surveyed boundaries of sections, townships or other district lot
system.
RS1979−323−140; 1993−12−21.
Oil sand
125.
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A disposition of petroleum or natural gas made under this Act or the former Act,
before or after the coming into force of this section, is deemed not to include
petroleum or natural gas recoverable from oil sand or oil shale unless the
disposition otherwise specifically states.
RS1979−323−146.
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PART 14 – Underground Storage
Exploration licence for underground storage area
126. (1)
(2)
(3)
(4)
A person must not explore for a storage reservoir unless
(a)
the person is licensed by the division head under subsection (3), or
(b)
exploration consists only of geophysical exploration.
An applicant for a licence under subsection (3) must make the application to the
division head in a form suitable to the division head.
The division head may grant a licence to a person to explore for a storage
reservoir, grant the licence for a period of time he or she determines and subject
to conditions he or she determines, or the division head may refuse to grant the
licence.
A licensee under this section must not carry out exploration under the licence
within 3 km of a mine as defined in the Mines Act or of a storage reservoir except
with the approval of and in compliance with any conditions specified by the
division head.
RS1979−323−140.1; 1988−6−22.
Designation of storage area
127. (1)
(2)
On the recommendation of the minister, the Lieutenant Governor in Council may
by regulation designate land as a storage area.
Notice of the designation under subsection (1) must be published in 2 consecutive
issues of a newspaper circulated in the area in which the storage area is situated.
RS1979−323−140.2; 1988−6−22.
Vesting of storage reservoir
128. (1)
(2)
(3)
Ninety days after designation of land as a storage area, a right, title and interest in
a storage reservoir in or under the storage area and in any water inside the storage
reservoir is vested in the government free of encumbrances unless, before the
expiry of the 90 days, the Lieutenant Governor in Council rescinds the
designation.
A right, title or interest in anything other than water that is found, naturally
occurring, inside the storage reservoir is not vested in the government merely
because of the vesting under subsection (1).
If a right, title or interest in land has vested in the government under subsection
(1), that interest, for the purposes of the application of section 23 (2) (a) of the
Land Title Act, is deemed to be held by the government pursuant to a subsisting
exception and reservation contained in the original grant of that land from the
government.
RS1979−323−140.3; 1988−6−22.
Compensation
129.
A person who had a right, title or interest in land that vested in the government
under section 128 may apply under section 16 (1) (c) for compensation for the
loss of that right, title or interest.
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RS1979−323−140.4; 1988−6−22.
Lease of storage reservoir
130. (1)
(2)
(3)
The holder of a petroleum or natural gas permit, drilling licence or lease or an
exploration licence granted under section 126 may apply to the minister for a
lease of a storage reservoir that is owned by the government.
An applicant for a lease under subsection (3) must make the application to the
minister in a form suitable to the minister.
The minister may lease a storage reservoir that is owned by the government to a
person who applies under subsection (1), and the minister may grant a lease that
is different than the one applied for or may refuse to grant a lease.
RS1979−323−140.5; 1988−6−22.
Storage licence
131. (1)
(2)
(3)
A person must not develop or use a storage reservoir for the storage of petroleum
or natural gas unless the person has been granted a licence by the commission
under subsection (3).
An applicant for a licence under subsection (3) must make the application to the
commission in a form suitable to the commission.
The commission may grant a licence to a person to develop or use a storage
reservoir for the storage of petroleum or natural gas, grant the licence for a period
of time he or she determines and subject to conditions he or she determines, or
the commission may refuse to grant the licence.
RS1979−323−140.6; 1988−6−22; 1998−39−31.
Regulations for this Part
132.
The Lieutenant Governor in Council may make regulations respecting
(a)
Repealed. [1998−39−54]
(b)
the exploration for, development or use of storage reservoirs,
(c)
performance bonds,
(d)
licences and conditions that may attach to licences,
(e)
the form and content of leases or classes of leases,
(f)
applications for licences or leases including the publication of applications,
(g)
rents charged under a lease and the payment or collection of rents,
(h)
the non−application of any or all of the provisions of this Part to land or to
a person or operation or to a class of land, person or operation, and
the application of any or all of the provisions of the Fire Services Act or of
regulations made under the Fire Services Act to a storage reservoir or to a
person who explores for, develops or uses a storage reservoir.
(i)
RS1979−323−140.7; 1988−6−22; 1998−39−54.
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PART 15 – Regulations and Penalties
Regulations and orders
133. (1) The Lieutenant Governor in Council may make regulations referred to in section
41 of the Interpretation Act.
(2) Without limiting subsection (1), the Lieutenant Governor in Council may do the
following:
(a) make regulations to meet any difficulties that may arise by reason of the
repeal of the former Act and the substitution of this Act;
(b) order a cancellation of a reserve of petroleum or natural gas, or both,
effective not earlier than one week after publication in the Gazette of notice
to that effect signed by the minister;
(c) by regulation cancel rental and work requirements on a permit or a portion
of a permit, subject to conditions and for a period the Lieutenant Governor
in Council may prescribe;
(d) extend the time in which work required to be done on the location specified
in a permit, licence or lease may be done if the permittee, licensee or lessee
has been prevented from doing work by extraordinary physical conditions
which are completely beyond his or her control and could not be foreseen
by him or her;
(e) despite section 71 (1), make regulations
(i)
governing the exploration on Crown reserves of petroleum and
natural gas under a form of title to be known as a drilling licence,
and
(ii) setting the conditions under which that title may be converted to a
lease
with the power to adopt or amend the provisions of Part 6 to suit the
circumstances of conversion;
(f)
make regulations for the exploration, development and production of oil
sand, oil sand products, oil shale and oil shale products;
(g) order that all or part of the Mines Act applies to the exploration,
development and production of oil sand, oil sand products, oil shale and oil
shale products;
(REP)
(h) Repealed. [2003−1−24]
Jun
20/03
(SUB)
Nov
24/00
(i)
(j)
make regulations requiring a person or a class of persons who produce,
process, transport, acquire or offer to acquire, use, inject or dispose of
petroleum or natural gas or sulphur, or a class of petroleum or natural gas
or sulphur, to provide the information, relating to petroleum or natural gas
or sulphur or a class of petroleum or natural gas or sulphur, that is required
in the regulations or by a person or class of persons identified in the
regulations
(i)
to the person or class of persons specified in the regulations, and
(ii) at the time and in the form and manner specified in the regulations
or by a person or class of persons identified in the regulations;
make regulations respecting the amendment of, or limitations on the
amendment of, information or a class of information required by a
regulation prescribed under paragraph (i);
(k)
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(l)
(m)
(n)
(o)
(p)
(q)
(REP)
Jun
20/03
(r)
make regulations defining, for the purpose of this Act or the regulations,
any word or expression not defined in this Act;
make regulations defining or describing the Peace River Block;
make regulations defining the petroleum and natural gas grid by means of a
set of universal transverse mercator map projection coordinates;
for the purpose of section 58 (2), prescribe an area;
make regulations to extend the term and cancel the rental and work
requirements for a permit, drilling licence or lease, or a portion of a permit,
drilling licence or lease, if the holder of the location is prevented from
doing work during a Provincial land use study, evaluation or planning
process;
prescribe fees for
(i)
name changes and other required purposes,
(ii) under Part 4, applications for approvals to undertake geophysical
exploration,
(iii) under Part 14, applications or classes of applications,
(iv) under Part 14, licences or leases or classes of licences or leases, and
(v) a provision of this Act that refers to a fee or a prescribed fee;
prescribe annual fees for well authorizations issued under Part 12, payable
by the holders of the well authorizations;
Repealed. [2002−26−36]
(s)
(ADD)
Jun
20/03
(3)
make regulations for the unitization of a pool or field for drilling and
producing;
(t)
prescribe the amount and disposition of drilling or other deposits required
under this Act;
(u) make regulations respecting
(i)
the designation under section 8 of portions of Crown land for
development roads, and
(ii) the layout, design, construction, operation, use, maintenance and
deactivation of development roads or classes of development roads.
A regulation made under this section may provide that the commissioner or the
minister may, in writing, exempt a person from the application of all or part of the
regulation.
RS1979−323−141; 1980−28−45; 1981−24−24; 1982−44−23; 1983−10−22; 1985−51−58; 1986−15−32; 1988−22−4;
1993−12−22; 1998−39−55; 2000−26−44; 2002−26−36; 2003−1−24.
Offence and penalty
134. (1)
(2)
(3)
(4)
Every person who contravenes a provision of this Act or the regulations commits
an offence and is liable on conviction to a fine of not less than $500 or more than
$5 000.
If an offence against this Act or the regulations continues for more than one day,
each day the offence continues is deemed to be a separate offence.
If a corporation is convicted of an offence under this section, an officer, director
or agent of a corporation who authorized, permitted or acquiesced in the offence
also commits the offence and is liable to the punishment provided under
subsection (1).
Every person who
(a)
makes or participates in, assents to or acquiesces in the making of false or
deceptive statements in books or records in a return, certificate, statement
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(b)
(c)
(d)
(e)
or answer filed or made as required by or under this Act or the regulations,
destroys, alters, mutilates, secretes or otherwise disposes of books or
records to evade payment of a royalty imposed by this Act or the
regulations,
makes, or assents to or acquiesces in the making of, false or deceptive
entries in books or records required under this Act or the regulations,
omits, or assents to or acquiesces in the omission of, entries in books or
records required under this Act or the regulations, or
willfully, in a manner, evades or attempts to evade compliance with this
Act or the regulations or payment of royalties imposed by this Act or the
regulations
commits an offence and, in addition to any penalty otherwise provided, is liable on summary
conviction to
(f)
(5)
a fine of not less than 25% and not more than double the amount of the
royalty that was sought to be evaded, or
(g) both the fine described in paragraph (f) and imprisonment for a term not
exceeding 2 years.
A person does not commit an offence under subsection (3) or (4) (a) or (c) in
respect of a false or deceptive statement or entry if the person did not know that
the statement or entry was false or deceptive and, in the exercise of reasonable
diligence, could not have known that the statement or entry was false or
deceptive.
RS1979−323−142; 1988−6−23.
Cancellation
135.
If a holder of a permit, licence, or lease fails to comply with a provision of this
Act, the regulations, a notice or an order under this Act or the regulations, or a
term, promise or condition of the holder's permit, licence or lease, the minister or
the commission, depending on which of them is authorized under this Act to issue
the permit, licence or lease, may, after giving 60 days' notice to the holder of the
location, cancel the permit, licence or lease.
RS1979−323−143; 1981−24−25; 1998−39−56.
Appeal
136. (1)
(2)
If the minister or the commission cancels a permit, licence or lease under section
135, the holder, not more than 30 days after the date of the cancellation, may
appeal the minister's or the commission's decision to the Supreme Court.
An appeal from a decision of the Supreme Court lies to the Court of Appeal with
leave of a justice of the Court of Appeal.
RS1979−323−144; 1993−38−31; 1998−39−57.
Regulations Act applies
137.
The Regulations Act applies to regulations under this Act that are made by the
commission.
1998−39−58.
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[RS1979−323−Sch.; 1988−6−24.]
(section 75)
Warrant to Enter and Search
British Columbia
County of ..........................................
To [name of police constable] and other persons being police constables under the Police Act:
whereas it appears on the oath of [name] ......................................... that there are reasonable grounds to
believe that [describe records and any other things to be searched for and place to be entered and searched].
This is therefore to authorize you [here state any limit on hours of search] to enter and search the said
premises to seize the said records and to inspect, examine, measure and evaluate such other things found on
the said premises as may relate to royalty under the Petroleum and Natural Gas Act.
Dated [month, day, year] ....................................., at .......................................... .
.................................................................
A Justice of the Peace in and for
................................................................
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