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) | Statutes and 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) | Repealed | |
(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 |