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The Oil and Gas Act

C.C.S.M. c. O34

The Oil and Gas 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
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 Use or disclosure of 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
DISPOSITIONS
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) Repealed
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
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
225 to 239
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