HomeS.M. 1993, c. 4
The Oil and Gas and Consequential Amendments Act
| Back to the Act |
| PART 1 | |
| INTERPRETATION OBJECTS AND PURPOSES APPLICATION | |
| 1(1) | Definitions |
| (2) | Regulations included |
| 2(1) | Objects and purposes of Act |
| (2) | Principles of sustainable development |
| 3(1) | Application of Act |
| (2) | "Oil and gas primary production" |
| 4 | Crown bound |
| PART 2 | |
| ADMINISTRATION | |
| 5 | General authority of the minister |
| 6 | Annual report |
| 7 | Assistance agreement |
| 8(1) | Minister may refer matter to board |
| (2) | Application to resolve matter |
| (3) | Content of application |
| 9 | Minister may extend time |
| 10 | Petroleum Branch established |
| 11(1) | Appointment of Director of Petroleum |
| (2) | Acting director |
| (3) | Duties of the director |
| (4) | Additional powers of the director |
| 12(1) | Establishment of office of registrar |
| (2) | Filing and registering in office of registrar |
| (3) | Payments made at office of registrar |
| 13(1) | Appointment of registrar |
| (2) | Acting registrar |
| 14(1) | Duties of registrar |
| (2) | Registrar may conduct audit |
| (3) | Registrar has powers of inspector |
| 15(1) | Records and documents open to public |
| (2) | Evidence of record or document |
| 16 | Note of decision on record of disposition |
| 17 | Appointment of inspectors |
| 18(1) | Powers of inspector |
| (2) | Operator and employees to assist inspector |
| (3) | Identification card |
| 19(1) | Definition |
| (2) | Disclosure and divestment of interest |
| 20 | Confidential information |
| 21 | Offence and penalty |
| 22(1) | Application for restitution |
| (2) | Limitation period for application |
| 23 | L.G. in C. may appoint person |
| PART 3 | |
| OIL AND GAS CONSERVATION BOARD | |
| 24(1) | Establishment of board |
| (2) | Qualification of members |
| (3) | Term of office |
| (4) | Presiding member and deputy |
| (5) | Remuneration and reimbursement |
| (6) | Quorum |
| (7) | Appointment of acting member |
| (8) | Deputy presiding member |
| (9) | Appointment of another person in case of interest |
| (10) | Secretary, staff and other assistance |
| 25(1) | Board to submit report on referred matter |
| (2) | Powers under The Evidence Act |
| (3) | No power to summon witnesses |
| 26(1) | Rules of practice and procedure |
| (2) | Regulations Act does not apply |
| (3) | Transcript of oral evidence |
| (4) | Presentation of evidence |
| (5) | Record of proceedings before board |
| 27 | Board may seek expert assistance |
| 28 | Board and expert have power of inspector |
| 29 | Recommendation as to costs |
| 30(1) | Notice of hearing |
| (2) | Board may proceed in absence of a party |
| (3) | Submission of report by board |
| (4) | Minister's powers |
| (5) | Documents to be filed with registrar |
| (6) | Registrar to serve copies of order |
| (7) | Minister's order as to costs filed in Q.B. |
| 31(1) | Appeal to Queen's Bench |
| (2) | Judge may stay enforcement |
| 32 | Minister may extend or abridge time |
| PART 4 | |
| 33(1) | Definitions |
| (2) | Deemed size of areas |
| 34 | Disposition in accordance with Act |
| 35 | Issuance of disposition by minister |
| 36 | Refusal to issue disposition |
| 37 | Additional terms and conditions |
| 38 | Form and execution of disposition |
| 39 | Registration of executed disposition |
| 40 | Right of access to oil and gas |
| EXPLORATION RESERVATIONS | |
| 41 | Rights granted |
| 42 | Size of reservation area |
| 43(1) | Effective date of exploration reservation |
| (2) | Term of exploration reservation |
| (3) | Extension of term |
| 44 | Annual rent |
| 45(1) | Conversion of exploration reservation to lease |
| (2) | Expiry of exploration reservation |
| (3) | Size of lease area not restricted |
| 46(1) | Offset area drilling requirements |
| (2) | Where offset area produces oil and gas |
| (3) | Exploration reservation continues |
| 47 | Prohibition |
| 48 | Surrender of exploration reservation |
| LEASE | |
| 49 | Rights granted by lease |
| 50 | Size of lease area |
| 51(1) | Effective date of lease |
| (2) | Term of lease |
| 52(1) | Application to registrar for renewal of lease |
| (2) | Registrar to issue five year renewal |
| (3) | When lease may be renewed |
| 53(1) | Application to director for one year extension |
| (2) | Conditions for one year extension |
| (3) | Further extension if commitment honoured |
| (4) | Maximum of five extensions |
| (5) | Renewal of lease after extension period |
| 54 | Annual rent |
| 55 | Division of lease area into parts |
| 56 | Surrender of lease area |
| 57 | Amendment of holder's copy of lease |
| 58(1) | Offset area drilling requirement |
| (2) | Compensatory royalty, surrender, substitution |
| (3) | Drilling of offset well may be deferred |
| 59(1) | Requirement for survey |
| (2) | Costs of survey |
| 60 | Implied reservations to the Crown |
| 61(1) | Notice to holder of failure to comply |
| (2) | Cancellation of disposition |
| (3) | Rights forfeited to Crown |
| 62 | Cancellation on misrepresentation, bankruptcy |
| 63 | Service of notice of cancellation |
| 64(1) | Well to be abandoned |
| (2) | Seizure for failure to comply |
| 65 | Waiver of term or condition by minister |
| 66 | Disposal of Crown rights in Northern Manitoba |
| 67 | Agreements on helium and oil shale |
| PART 5 | |
| REGISTRATION OF TRANSFERS AND INSTRUMENTS | |
| 68 | Holder may transfer disposition |
| 69(1) | Effect of transfer |
| (2) | Effect of registration |
| (3) | Effect of not registering transfer |
| 70(1) | Registration of transfer |
| (2) | Duplicate copy of transfer to transferee |
| 71(1) | Transfer of part of a lease area |
| (2) | Registrar to amend lease area description |
| 72(1) | Transfer on death, bankruptcy, insolvency |
| (2) | Additional documents |
| (3) | Registrar to register transferee's name |
| 73(1) | Registration of instruments against disposition |
| (2) | Registrar to give notice to holder |
| (3) | Effect of registration |
| (4) | Crown rights not affected |
| 74(1) | Security given under the Bank Act |
| (2) | Bank to file discharge |
| 75 | Cancellation of registration |
| PART 6 | |
| OIL AND GAS LEASE AGENTS | |
| 76 | Definitions |
| 77 | Prohibition |
| 78(1) | Application for registration |
| (2) | Registration and renewal |
| 79(1) | Validity of acquisition agreement |
| (2) | Validation by order of the minister |
| 80 | Inquiry into misrepresentation by agent |
| 81 | Minister may declare agreement invalid |
| 82 | Reinstatement of oil and gas lease agent |
| PART 7 | |
| GEOPHYSICAL OPERATIONS | |
| 83 | Definition |
| 84(1) | No geophysical operation without licence |
| (2) | Application for geophysical licence |
| (3) | Director may issue geophysical licence |
| (4) | Geophysical operation on highway |
| 85 | Application of Surface Rights Act |
| 86 | Licensee to comply with licence and Act |
| 87 | Director to approve transfer of licence |
| PART 8 | |
| WELL LICENCES | |
| 88 | Definition |
| 89(1) | Requirement for well licence |
| (2) | Survey of site for well |
| 90(1) | Application for well licence |
| (2) | Issuance of licence |
| 91(1) | Applicant must have surface rights |
| (2) | Applicant must have right to produce oil and gas |
| (3) | Restricted right to produce oil and gas for testing |
| (4) | Application for purpose other than oil and gas |
| 92 | Licence void where licensee does not have rights |
| 93 | Director may refuse to issue well licence |
| 94(1) | Director may amend well licence |
| (2) | Cancellation of well licence where no drilling |
| 95 | Drilling to be done at authorized location |
| 96 | Licensee responsible for operations |
| 97 | Re-entry of abandoned well |
| 98(1) | Well abandoned because of mechanical difficulties |
| (2) | New well licence required |
| 99(1) | Director to name each well |
| (2) | Registration in Well Name Register |
| 100(1) | Director to approve transfer of licence |
| (2) | Transfer where licensee not located |
| (3) | Registrar to transfer permit, licence |
| PART 9 | |
| OIL AND GAS PRODUCTION AND CONSERVATION | |
| 101 | Definitions |
| SPACING UNITS AND TARGET AREAS | |
| 102 | Size and shape may be prescribed and varied |
| 103(1) | Effect of completion outside target area |
| (2) | Director may waive reduction |
| DRILLING, COMPLETION AND SERVICING | |
| 104 | Duty of licensee re equipment and methods |
| MAXIMUM PRODUCTION RATE | |
| 105(1) | Prescribed maximum production rates |
| (2) | Application for variation or removal |
| (3) | Order where gas or water reduces oil recovery |
| 106 | Restriction of production |
| 107 | New well in spacing unit already producing |
| 108 | Approval for commingled production or injection |
| DISPOSAL OF SALT WATER | |
| 109(1) | Disposal in accordance with permit or order |
| (2) | Application for disposal permit |
| (3) | Director may issue permit or refer application |
| 110 | Transportation of salt water |
| CONSTRUCTION AND OPERATION OF BATTERIES AND GAS PLANTS | |
| 111(1) | No construction of battery without approval |
| (2) | Application for battery operating permit |
| (3) | No construction until application made for permit |
| (4) | Powers of director on application |
| (5) | Inspector to approve modification to battery |
| 112 | Director to name each battery |
| 113(1) | No construction or operation without approval |
| (2) | Application for gas plant permit |
| (3) | Consideration of application by minister |
| (4) | Minister may issue gas plant permit |
| 114(1) | Operator to limit discharge of pollutants |
| (2) | Director's powers respecting pollutants |
| 115 | Minister may require gas conservation |
| ENHANCED RECOVERY | |
| 116(1) | Minister's approval required |
| (2) | Application to minister |
| 117 | Report on feasibility of enhanced recovery |
| 118(1) | Minister may refer matter to board |
| (2) | Minister may suspend or restrict production |
| SPILLS | |
| 119(1) | Prevention |
| (2) | Duties of operator on spill |
| (3) | Duty to rehabilitate after spill |
| (4) | Power of inspector re spill procedure |
| (5) | Continuing duty of operator and successor |
| (6) | Minister may relieve operator from application |
| (7) | Liability for costs |
| 120(1) | Definition |
| (2) | Environmental protection plan |
| (3) | Exemption of members of oil spill cooperative |
| (4) | Minister may require oil spill cooperative |
| (5) | Duties of oil spill cooperative |
| EMERGENCY, FIRE, BLOWOUT, ACCIDENT | |
| 121(1) | Operator to report fire, blowout or accident |
| (2) | Declaration of state of emergency |
| ABANDONMENT AND REHABILITATION | |
| 122(1) | Application to abandon well or battery |
| (2) | Approval of application to abandon |
| (3) | Operator to abandon well or battery |
| 123(1) | Abandonment of well or battery |
| (2) | Director's powers on show cause |
| 124 | Well or battery may be seized |
| 125 | Operator must rehabilitate site |
| PART 10 | |
| POOLING ORDERS | |
| 126(1) | Application to minister |
| (2) | Minister may make pooling order |
| (3) | Provisions of pooling order |
| (4) | Production allocation to each tract |
| (5) | Penalty for not sharing drilling costs |
| (6) | Penalty not to exceed one-half of cost |
| (7) | Recovery of share of costs and penalty |
| (8) | Pooling order binding on owners |
| 127 | Operation deemed to be on respective tracts |
| 128(1) | Application to amend or revoke pooling order |
| (2) | Minister may amend or revoke pooling order |
| (3) | Consent of owners required for certain changes |
| (4) | Minister may revoke order if no drilling |
| 129 | Minister to determine costs |
| 130 | Inclusion of spacing unit in unit area |
| 131 | Sharing of production and costs of unit production |
| PART 11 | |
| UNIT OPERATIONS | |
| 132 | Unit agreement in force only on registration |
| 133 | Crown may be party to unit agreement |
| UNIT ORDERS | |
| 134 | Application by working interest owner |
| 135(1) | Minister may make unit order |
| (2) | Provisions of unit order |
| (3) | Owner's share of the cost of unit operation |
| 136 | Minister may appoint unit operator |
| 137 | Right of unit operator to recover costs |
| 138(1) | Application to amend unit order |
| (2) | Order to amend unit order |
| (3) | Amendment not to affect allocations |
| (4) | Allocation if spacing unit added or unit areas joined |
| 139 | Unit operator is agent of owners |
| 140(1) | Unit operator deemed to be licensee and permittee |
| (2) | New unit operator deemed to be licensee and permittee |
| 141 | Transfer of disposition not required |
| 142 | Effect of unit order and unit agreement |
| 143 | Unit operation satisfies lease obligation |
| 144 | Allocated production deemed from unit tract |
| PART 12 | |
| FLOW LINES AND PIPELINES | |
| FLOW LINES | |
| 145 | Director may designate flow line |
| 146(1) | No construction of flow line without approval |
| (2) | Application for flow line licence |
| (3) | No approval until application made for licence |
| (4) | Powers of inspector on application |
| (5) | Applicant must have surface rights |
| (6) | Inspector to approve modification to flow line |
| 147(1) | Notice re abandonment of flow line |
| (2) | Inspector's powers on show cause |
| PIPELINES | |
| 148 | Definitions |
| PIPELINE CONSTRUCTION | |
| 149(1) | Pipeline construction permit required |
| (2) | Application for construction permit |
| (3) | Consideration of application by minister |
| (4) | Minister may issue construction permit |
| (5) | Minister to fix route of pipeline |
| 150(1) | Modification of pipeline requires approval |
| (2) | Repair or maintenance not included |
| ACCESS TO LAND | |
| 151(1) | When permittee may enter land |
| (2) | Construction or relocation only after consent or order |
| (3) | Application of Surface Rights Act |
| PIPELINE OPERATION | |
| 152(1) | Pipeline operating licence required |
| (2) | Application for pipeline operating licence |
| (3) | Issuance of pipeline operating licence |
| (4) | Reports and information to the director |
| (5) | Licensee subject to prohibitions |
| (6) | Notice re abandonment of pipeline |
| (7) | Minister's powers on show cause |
| COMMON CARRIERS | |
| 153(1) | Definition |
| (2) | Common carrier must carry oil and gas supplied |
| (3) | Application to declare common carrier |
| (4) | Consideration of application by minister |
| (5) | Order declaring or revoking common carrier |
| (6) | When licensee may reduce products carried |
| (7) | Minister may require plan respecting reductions |
| (8) | Minister may determine reduction |
| GENERAL | |
| 154 | Public safety and the environment |
| 155 | Constructing pipeline or flow line over highway |
| 156(1) | Relocation of pipeline or flow line |
| (2) | Allocation of costs |
| 157(1) | Surface improvement or work on right of way |
| (2) | Copy of consent to director |
| (3) | Order to remove or modify improvement or work |
| 158 | Transfer of permit or licence |
| PART 13 | |
| STORAGE RESERVOIRS | |
| 159 | Definitions |
| STORAGE PERMIT | |
| 160(1) | No storage reservoir without storage permit |
| (2) | Effect of storage permit |
| 161 | Application of Public Utilities Board Act |
| 162(1) | Application to the minister |
| (2) | Consideration of application by minister |
| (3) | Minister may issue storage permit |
| 163 | Minister must approve transfer of storage permit |
| 164 | Holder of permit to report to director |
| COMPENSATION | |
| 165 | Subsurface operation in designated storage area |
| 166(1) | Compensation for adverse effect on access |
| (2) | Application to minister |
| (3) | Compensation payable to Crown |
| PART 14 | |
| PERFORMANCE SECURITY | |
| 167(1) | No licence or permit without performance security |
| (2) | Refund where licence or permit not issued |
| PERFORMANCE DEPOSIT | |
| 168(1) | Use of performance deposit |
| (2) | Performance deposit to be maintained |
| 169(1) | Refund respecting geophysical operation |
| (2) | Refund on abandonment or transfer |
| 170(1) | Persons entitled to refund |
| (2) | Where person cannot be found |
| ABANDONMENT | |
| 171(1) | Certificate of Abandonment |
| (2) | Inspector may issue Certificate of Abandonment |
| (3) | Effect of Certificate on performance deposit |
| (4) | Liability for rehabilitation |
| (5) | No waiver of The Surface Rights Act |
| ABANDONMENT FUND | |
| 172(1) | Prescribed non-refundable levy |
| (2) | Payment of levy |
| (3) | Abandonment Fund Reserve Account |
| (4) | Authority to pay |
| (5) | Expenditure commitment not to lapse |
| (6) | Recovery of expenditure from reserve account |
| PART 15 | |
| ENFORCEMENT | |
| 173 | Definitions |
| 174 | Notice of non-compliance |
| SHUT DOWN | |
| 175 | Application of sections 176 to 179 |
| 176(1) | Shut down notice re well or oil and gas facility |
| (2) | Content of shut down notice |
| (3) | Shut down order |
| 177(1) | Emergency shut down of well or facility |
| (2) | Inspector to notify operator and director |
| (3) | Notification constitutes shut down order |
| (4) | Shut down of geophysical operations |
| 178 | Authorization to resume operation |
| 179(1) | Appeal of shut down order to minister |
| (2) | Powers of the minister on appeal |
| (3) | Appeal does not stay shut down order |
| 180(1) | Definitions |
| (2) | Shut down notice re pipeline, storage reservoir |
| (3) | Content of shut down notice |
| (4) | Shut down order |
| (5) | Emergency shut down of pipeline, storage reservoir |
| (6) | Director to notify minister |
| (7) | Authorization to resume operations |
| 181(1) | Shut down order suspends rights |
| (2) | Removal of equipment after shut down order |
| SEIZURE | |
| 182(1) | Seizure on failure to comply |
| (2) | Director to supervise seized well or facility |
| (3) | Payment of royalty |
| 183(1) | Surface rights vest in Crown |
| (2) | Crown not subject to penalty |
| 184(1) | Holder responsible for costs and expenses |
| (2) | Recovery by Crown |
| (3) | Priority of purchase money security interest |
| (4) | Costs are recoverable and a debt to Crown |
| (5) | Recovered money to be paid into fund |
| (6) | Surplus proceeds |
| (7) | Where person cannot be found |
| 185(1) | Application for review of seizure order |
| (2) | Application does not stay seizure order |
| (3) | Review powers of minister |
| 186 | Application for accounting |
| 187(1) | Appeal of seizure order to Queen's Bench |
| (2) | Appeal does not stay seizure order |
| PART 16 | |
| ROYALTIES | |
| 188(1) | Royalties reserved to Crown |
| (2) | Subsection (1) is implied term and condition |
| 189(1) | L.G. in C. regulations |
| (2) | Method may be varied by order |
| 190 | Crown is owner of royalty |
| 191 | Minister may recalculate Crown's royalty |
| PART 17 | |
| COLLECTION | |
| 192(1) | Charges are recoverable as debt to Crown |
| (2) | Deduction of debt owing to Crown |
| 193(1) | Interest on debt |
| (2) | Interest on refund |
| 194(1) | Crown has lien for debt due |
| (2) | Priority of Crown's claim |
| 195(1) | Minister may issue certificate of default |
| (2) | Filing of certificate in Queen's Bench |
| (3) | Costs of filing recoverable |
| PART 18 | |
| RECORDS AND REPORTS CONFIDENTIAL INFORMATION | |
| RECORDS AND REPORTS | |
| 196(1) | Operator and holder to keep information |
| (2) | Holder of well licence to provide data |
| (3) | Holder of well licence to obtain information |
| (4) | Purchaser, transporter to provide information |
| 197 | Information to be produced on request |
| CONFIDENTIAL INFORMATION | |
| 198(1) | Information is confidential |
| (2) | Information with application |
| (3) | Exception by written authorization |
| PART 19 | |
| OFFENCES AND PENALTIES | |
| 199(1) | Offences |
| (2) | Penalties |
| (3) | Continuing offence |
| (4) | Penalties for continuing offence |
| (5) | Default of payment of fine |
| (6) | Order to comply |
| 200(1) | Corporate officers and directors |
| (2) | Liability of corporation not affected |
| (3) | Constructive corporate acts |
| 201 | Further prosecution or civil action after conviction |
| 202 | Three year limitation on prosecution |
| 203 | Laying information |
| 204(1) | Director's certificate |
| (2) | Reasonable notice to other party |
| (3) | Cross-examination on certificate |
| 205 | Application for injunction |
| 206 | Remedies for enforcement |
| PART 20 | |
| GENERAL PROVISIONS | |
| 207 | Corporation must be registered |
| 208 | Applicant to provide address for service |
| 209(1) | Service of notices and other documents |
| (2) | Effective date of service by mail |
| (3) | Posting of document constitutes service |
| (4) | Service on agent |
| 210(1) | Orders to be filed and served on persons affected |
| (2) | Effective date of order |
| 211 | Notification of acquisition of interest |
| 212 | Right of entry not granted to land |
| 213(1) | Minister's power in ownership dispute |
| (2) | Money deemed paid according to arrangement |
| 214(1) | Minister may authorize for missing royalty owner |
| (2) | Public notice of application |
| (3) | Money payable to Minister of Finance |
| (4) | Application to court re royalty |
| (5) | Court to order money paid out |
| (6) | Deduction for costs and services |
| (7) | Crown not liable for court costs |
| (8) | Reversion of rights to the Crown |
| 215 | Measurement of oil, gas or water |
| 216 | Immunity for acts or omissions in good faith |
| REGULATIONS | |
| 217(1) | L.G. in C. regulations |
| (2) | Adoption of code or standard by reference |
| PART 21 | |
| TRANSITIONAL C.C.S.M. REFERENCE | |
| 218 | Definition of "former Act" |
| 219 | Crown oil and gas dispositions continued |
| 220 | Licences and permits continued |
| 221 | Approvals under former Act |
| 222 | Orders by board or minister under former Act |
| 223 | Registration of oil and gas lease agent |
| 224(1) | Lapse of registration under Real Property Act and Registry Act |
| (2) | Notice to be given within six months |
| (3) | District registrar and assurance fund not liable |
| PART 22 | |
| CONSEQUENTIAL AMENDMENTS | |
| The Builders' Liens Act | |
| 225(1) | C.C.S.M. c. B91 amended |
| (2) | |
| (3) | |
| (5) | Registration of claim document re disposition |
| The Crown Lands Act | |
| 226 | C.C.S.M. c. C340 amended |
| The Forest Act | |
| 227(1) | C.C.S.M. c. F150 amended |
| (2) | |
| (3) | |
| (4) | |
| The Gas Pipe Line Act | |
| 228(1) | C.C.S.M. c. G50 amended |
| (2) | |
| (3) | |
| The Gas Storage and Allocation Act | |
| 229(1) | C.C.S.M. c. G52 amended |
| (2) | |
| (3) | |
| 1 | Definitions |
| (4) | |
| (5) | |
| (6) | |
| 24 | Crown bound |
| (7) | |
| 26 | Regulations |
| The Ground Water and Water Well Act | |
| 230 | C.C.S.M. c. G110 amended |
| (3) | No application to well |
| The Mines and Minerals Act | |
| 231 | C.C.S.M. c. M162 amended |
| The Municipal Act | |
| 232(1) | C.C.S.M. c. M225 amended |
| (2) | |
| (3) | |
| (4) | |
| (5) | |
| The Oil and Gas Production Tax Act | |
| 233 | C.C.S.M. c. O37 amended |
| The Provincial Park Lands Act | |
| 234 | C.C.S.M. c. P20 amended |
| The Public Utilities Board Act | |
| 235(1) | C.C.S.M. c. P280 amended |
| (2) | |
| (3) | |
| (2) | Pipeline under Oil and Gas Act |
| (4) | |
| (4) | L.G. in C. may declare public utility |
| The Real Property Act | |
| 236(1) | C.C.S.M. c. R30 amended |
| (2) | |
| 66.1(1) | Instrument affecting Crown oil and gas rights |
| (2) | Correction by district registrar |
| (3) | |
| The Registry Act | |
| 237 | C.C.S.M. C. R50 amended |
| The Securities Act | |
| 238 | C.C.S.M. c. S50 amended |
| The Surface Rights Act | |
| 239(1) | C.C.S.M. c. S235 amended |
| (2) | |
| (3) | |
| (4) | |
| (5) | |
| (6) | |
| PART 23 | |
| REPEALS, CITATION AND COMING INTO FORCE | |
| The Mines Act | |
| 240 | C.C.S.M. c. M160 repealed |
| The Pipe Line Act | |
| 241 | C.C.S.M. c. P70 repealed |
| 242 | C.C.S.M. reference |
| 243 | Coming into force |
