C.C.S.M. c. O34
The Oil and Gas Act
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Table of Contents
| PART 1 | ||
| INTERPRETATION OBJECTS AND PURPOSES APPLICATION |
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| 1 | Definitions | |
| (2) | Regulations included | |
| 2 | Objects and purposes of Act | |
| (2) | Principles of sustainable development | |
| 3 | 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 | 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 | Appointment of Director of Petroleum | |
| (2) | Acting director | |
| (3) | Duties of the director | |
| (4) | Additional powers of the director | |
| 12 | Establishment of office of registrar | |
| (2) | Filing and registering in office of registrar | |
| (3) | Payments made at office of registrar | |
| 13 | Appointment of registrar | |
| (2) | Acting registrar | |
| 14 | Duties of registrar | |
| (2) | Registrar may conduct audit | |
| 15 | 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 | Powers of inspector | |
| (2) | Operator and employees to assist inspector | |
| (3) | Identification card | |
| 19 | Definition | |
| (2) | Disclosure and divestment of interest | |
| 20 | Use or disclosure of confidential information | |
| 21 | Offence and penalty | |
| 22 | Application for restitution | |
| (2) | Limitation period for application | |
| 23 | L.G. in C. may appoint person | |
| PART 3 | ||
| OIL AND GAS CONSERVATION BOARD | ||
| 24 | 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 | Board to submit report on referred matter | |
| (2) | Powers under The Evidence Act | |
| (3) | No power to summon witnesses | |
| 26 | 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 | 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 | Appeal to Queen's Bench | |
| (2) | Judge may stay enforcement | |
| 32 | Minister may extend or abridge time | |
| PART 4 | ||
| DISPOSITIONS | ||
| 33 | 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 | Effective date of exploration reservation | |
| (2) | Term of exploration reservation | |
| (3) | Extension of term | |
| 44 | Annual rent | |
| 45 | Conversion of exploration reservation to lease | |
| (2) | Expiry of exploration reservation | |
| (3) | Size of lease area not restricted | |
| 46 | 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 | Effective date of lease | |
| (2) | Term of lease | |
| 52 | Application to registrar for renewal of lease | |
| (2) | Registrar to issue five year renewal | |
| (3) | When lease may be renewed | |
| 53 | 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 | Offset area drilling requirement | |
| (2) | Compensatory royalty, surrender, substitution | |
| (3) | Drilling of offset well may be deferred | |
| 59 | Requirement for survey | |
| (2) | Costs of survey | |
| 60 | Implied reservations to the Crown | |
| 61 | 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 | 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 | Effect of transfer | |
| (2) | Effect of registration | |
| (3) | Effect of not registering transfer | |
| 70 | Registration of transfer | |
| (2) | Duplicate copy of transfer to transferee | |
| 71 | Transfer of part of a lease area | |
| (2) | Registrar to amend lease area description | |
| 72 | Transfer on death, bankruptcy, insolvency | |
| (2) | Additional documents | |
| (3) | Registrar to register transferee's name | |
| 73 | Registration of instruments against disposition | |
| (2) | Registrar to give notice to holder | |
| (3) | Effect of registration | |
| (4) | Crown rights not affected | |
| 74 | Security given under the Bank Act | |
| (2) | Bank to file discharge | |
| 75 | Cancellation of registration | |
| PART 6 | ||
| 76 to 82 | [Repealed] | |
| PART 7 | ||
| GEOPHYSICAL OPERATIONS | ||
| 83 | Definition | |
| 84 | 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 | Requirement for well licence | |
| (2) | Survey of site for well | |
| 90 | Application for well licence | |
| (2) | Issuance of licence | |
| 91 | 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 | 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 | Well abandoned because of mechanical difficulties | |
| (2) | New well licence required | |
| 99 | Director to name each well | |
| (2) | [Repealed] | |
| 100 | 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 | 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 | 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 | 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 |
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| 111 | 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 | 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 | Operator to limit discharge of pollutants | |
| (2) | Director's powers respecting pollutants | |
| 115 | Minister may require gas conservation | |
| ENHANCED RECOVERY | ||
| 116 | Minister's approval required | |
| (2) | Application to minister | |
| 117 | Report on feasibility of enhanced recovery | |
| 118 | Minister may refer matter to board | |
| (2) | Minister may suspend or restrict production | |
| SPILLS | ||
| 119 | 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 | 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 |
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| 121 | Operator to report fire, blowout or accident | |
| (2) | Declaration of state of emergency | |
| ABANDONMENT AND REHABILITATION | ||
| 122 | Application to abandon well or battery | |
| (2) | Approval of application to abandon | |
| (3) | Operator to abandon well or battery | |
| 123 | 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 | 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 | 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 | 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 | 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 | 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 | 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 | Notice re abandonment of flow line | |
| (2) | Inspector's powers on show cause | |
| PIPELINES | ||
| 148 | Definitions | |
| PIPELINE CONSTRUCTION | ||
| 149 | 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 | Modification of pipeline requires approval | |
| (2) | Repair or maintenance not included | |
| ACCESS TO LAND | ||
| 151 | When permittee may enter land | |
| (2) | Construction or relocation only after consent or order | |
| (3) | Application of Surface Rights Act | |
| PIPELINE OPERATION | ||
| 152 | 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 | 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 | Relocation of pipeline or flow line | |
| (2) | Allocation of costs | |
| 157 | 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 | No storage reservoir without storage permit | |
| (2) | Effect of storage permit | |
| 161 | Application of Public Utilities Board Act | |
| 162 | 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 | Compensation for adverse effect on access | |
| (2) | Application to minister | |
| (3) | Compensation payable to Crown | |
| PART 14 | ||
| PERFORMANCE SECURITY | ||
| 167 | No licence or permit without performance security | |
| (2) | Refund where licence or permit not issued | |
| PERFORMANCE DEPOSIT | ||
| 168 | Use of performance deposit | |
| (2) | Performance deposit to be maintained | |
| 169 | Refund respecting geophysical operation | |
| (2) | Refund on abandonment or transfer | |
| 170 | Persons entitled to refund | |
| (2) | Where person cannot be found | |
| ABANDONMENT | ||
| 171 | 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 | 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 | Shut down notice re well or oil and gas facility | |
| (2) | Content of shut down notice | |
| (3) | Shut down order | |
| 177 | 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 | Appeal of shut down order to minister | |
| (2) | Powers of the minister on appeal | |
| (3) | Appeal does not stay shut down order | |
| 180 | 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 | Shut down order suspends rights | |
| (2) | Removal of equipment after shut down order | |
| SEIZURE | ||
| 182 | Seizure on failure to comply | |
| (2) | Director to supervise seized well or facility | |
| (3) | Payment of royalty | |
| 183 | Surface rights vest in Crown | |
| (2) | Crown not subject to penalty | |
| 184 | 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 | Application for review of seizure order | |
| (2) | Application does not stay seizure order | |
| (3) | Review powers of minister | |
| 186 | Application for accounting | |
| 187 | Appeal of seizure order to Queen's Bench | |
| (2) | Appeal does not stay seizure order | |
| PART 16 | ||
| ROYALTIES | ||
| 188 | Royalties reserved to Crown | |
| (2) | Subsection (1) is implied term and condition | |
| 189 | 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 | Charges are recoverable as debt to Crown | |
| (2) | Deduction of debt owing to Crown | |
| 193 | Interest on debt | |
| (2) | Interest on refund | |
| 194 | Crown has lien for debt due | |
| (2) | Priority of Crown's claim | |
| 195 | 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 | 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 | Information is confidential | |
| (2) | Information with application | |
| (3) | Exception by written authorization | |
| PART 19 | ||
| OFFENCES AND PENALTIES | ||
| 199 | Offences | |
| (2) | Penalties | |
| (3) | Continuing offence | |
| (4) | Penalties for continuing offence | |
| (5) | [Repealed] | |
| (6) | Order to comply | |
| 200 | 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 | 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 | Service of notices and other documents | |
| (2) | Effective date of service by mail | |
| (3) | Posting of document constitutes service | |
| (4) | Service on agent | |
| 210 | 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 | Minister's power in ownership dispute | |
| (2) | Money deemed paid according to arrangement | |
| 214 | 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 | 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 | [Repealed] | |
| 224 | Lapse of registration under Real Property Act and Registry Act | |
| (2) | Notice to be given within six months | |
| (3) | District registrar not liable | |
| PART 22 | ||
| CONSEQUENTIAL AMENDMENTS | ||
| 225 to 239 | [amendments to other Acts] | |
| PART 23 | ||
| REPEALS, CITATION AND COMING INTO FORCE |
||
| 240 | C.C.S.M. c. M160 repealed | |
| 241 | C.C.S.M. c. P70 repealed | |
| 242 | C.C.S.M. reference | |
| 243 | Coming into force | |
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