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The Mines Act
This is an unofficial archived version of The Mines Act
as enacted by SM 1987-88, c. 9 on July 17, 1987.

R.S.M. 1987, c. M160

The Mines Act

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:

Definitions.

1

In this Act,

"adjoining claims" means those which come into contact one with the other at some point on the boundary lines, or which share a common boundary; ("claims adjacents")

"agent" where used in relation to any mine, means any person having, on behalf of the owner, care or direction of any mine, or of any part thereof, and includes the words "manager" and "superintendent"; ("responsable")

"assessment" has the same meaning as "representation"; ("travaux requis")

"board" where used in Part I, means The Mining Board and, where used in Parts II and III means The Oil and Natural Gas Conservation Board; ("Commission")

"boring claim" means a tract of land, containing minerals that have been reserved to the Crown, acquired for the purpose of boring for coal, oil shale, or salt; ("claim de forage")

"Crown" means Her Majesty the Queen in right of the Province of Manitoba; ("Couronne")

"Crown lands" means Crown lands as defined in The Crown Lands Act; ("terres domaniales")

"department" means the department of the executive government of the province through which the minister administers this Act; ("ministère")

"director" means the Director of Mines appointed by the minister; ("directeur")

"disposition" means disposition as defined in The Crown Lands Act; ("aliénation")

"documents" means any assignment, transfer, bill of sale or other writing, which may in any way affect the title to a mineral location; ("documents")

"entry" means not only the record of a claim in the books of the mining recorder, but also the grant which may be issued for the claim; ("inscription")

"gas" means natural gas both before and after it has been subjected to any processing and includes all fluid hydrocarbons that are not oil; ("gaz")

"in place" where used in reference to mineral means in the place or position where originally formed in the solid rock as distinguished from being in loose, fragmentary or broken rock, boulders, float, beds or deposits of gold or platinum bearing sand, earth, clay or gravel, or placer; ("dans son état")

"inspector" means the director or any person designated by the minister as an inspector for the purposes of this Act and the regulations; ("inspecteur")

"licensee" means any person, firm or corporation holding a miner's licence or renewal thereof issued under this Act; ("titulaire de licence" )

"machinery" includes steam and other engines, boilers, furnaces, stamps, and other crushing apparatus, winding or pumping gear, chains, trucks, tramways, tackle, blocks, ropes or tools, and all appliances used in or about or in connection with the mine; ("machines")

"mine" when used as a noun, includes any opening, excavation or well in, or working of, the ground for the purpose of searching for, winning, opening up, removing, proving, or storing underground, any mineral or mineralbearing substance, and includes all ways, works, engines, machinery, plant, buildings, furnaces, roast yards, and premises, below or above the surface of the ground, belonging to, or used in connection with the operations carried on in and about the operation of mining, or about a mine; ("mine")

"mine" and "mining" when used as a verb or in a verbal sense, include any mode of working whereby the soil or earth is disturbed, removed, carted, carried, washed, sifted, roasted, smelted, refined, crushed, or otherwise dealt with, for the purpose of obtaining any mineral or metal therefrom, whether it has been previously disturbed or not, and also includes the boring, drilling for any mineral and the working of the ground for the purpose of storing underground any mineral or mineral-bearing substance and the drilling of a well; ("mine")

"mineral" means all non-living substances formed by the processes of nature which occur on or under the surface of the ground irrespective of chemical or physical state, and includes peat, but does not include agricultural soil, surface water or ground water except such ground water as is obtained from a well; ("minéral")

"mineral location" means a tract of Crown land containing minerals or land upon or under which the minerals have been reserved to the Crown and in respect of which a grant has been made for the purpose of mining, and includes a boring claim, a mining claim, a placer claim, and a quarrying claim, and an oil and natural gas tract; ("emplacement minier")

"mining claim" means a plot of Crown land containing a mineral and staked out for mining purposes, other than that contained in a boring claim, a placer claim, or a quarrying claim; ("claim minier")

"mining district" means any tract of territory declared to be a mining district under this Act; ("district minier")

"mining division" means any tract of territory declared to be a mining division under this Act, which tract shall constitute a part of a mining district; ("division minière")

"mining lands" includes lands and mining rights leased under or by authority of any statute, regulation or order in council, respecting mines, minerals or mining, and also lands or mining rights located, staked out, used or intended to be used for mining purposes; ("biens-fonds miniers")

"mining property" includes every mineral location, ditch, mill site, tramway, aerial tramway, transmission line, or water right used for mining purposes, and all rights acquired and powers exercised under this Act relating to surface rights, timber rights, water rights, roads and rights-of-way and sites and works included under the definition of "mine" herein, and all property rights, easements and things belonging or appertaining thereto or used in the working thereof for mining purposes or connected with or incidental thereto; ("biens miniers")

"mining rights" or "mineral rights" means and includes the right to the ores, minerals, and mines upon or under the surface rights; ("droits miniers")

"minister" means the member of the Executive Council charged by the Lieutenant Governor in Council with the administration of this Act; ("ministre")

"oil" means crude oil and all other hydrocarbons regardless of gravity, that are or can be recovered in liquid form through a well by ordinary production methods from a natural underground reservoir containing an accumulation of oil or oil and gas; ("pétrole")

"operator" means a person, company, syndicate, or partnership, entitled to conduct mining operations, including the exploration for, or production of, oil and natural gas, and includes an agent of such an operator ; ("exploitant")

"owner" where used in relation to any mine, means except in Parts II and III, any person or body corporate who is the immediate proprietor, or lessee, or occupier of any mine, or of any part thereof, and does not include a person or body corporate who merely receives a royalty, rent, or fine from a mine, or is merely the proprietor of a mine subject to any lease, grant or licence for the working thereof, or is merely the owner of the soil, and not interested in the minerals of the mine; ("propriétaire")

"quarrying claim" means a tract of land containing minerals that have been reserved to the Crown, that gives a person the right to recover sand, gravel, gypsum, peat, clay, marl, granite, limestone, marble, sandstone, slate or any building stone; ("claim d'exploitation de carrière")

"record" "register" and "registration" have the same meaning and mean an entry in some official book kept for that purpose; ("enregistrement")

"recorder" means the person appointed as mining recorder of the mining district under the provisions of this Act in which the land in respect of which an act, matter or thing is to be done, is situated; ("registraire minier")

"representation" means the work to be done in each year to entitle the owner of a claim to maintain the claim in good standing; ("travaux obligatoires")

"resident engineer" means an officer appointed under this Act for Manitoba, or for a mining district or any part thereof in Manitoba, or any member of his staff duly authorized by him to perform his duties or part thereof, or any person authorized by the minister to perform temporarily those duties; ("ingénieur résident")

"surface rights" includes lands granted, leased or otherwise disposed of for any purpose and in respect of which the ores, mines and minerals thereupon or under the surface thereof are by statute, grant, lease or disposition reserved to the Crown; and, where the context so requires or permits, includes lands granted, leased, or otherwise disposed of, for any purpose and in respect of which ores, mines, and minerals, thereupon or under the surface thereof have been, by grant, lease, or other disposition, reserved to or by the owner or a former owner of the freehold; ("droits de surface")

"well" means an opening in the ground, except a seismic shot hole or structure test hole less than 500 feet in depth,

(i) made or being made by drilling, boring or in any other manner and from which any oil or gas is obtainable or for the purpose of obtaining oil or gas, or

(ii) made or being made by drilling or boring for the purpose of obtaining water at a depth greater than 500 feet below the surface of the ground to inject into an underground formation to assist in the production of oil or gas, or

(iii) used, drilled or being drilled for the purpose of injecting, or disposing of, gas, air, water or other substance into an underground formation to assist in the production of oil or gas or for the storage of gas; or

(iv) drilled for the purpose of delineating an area for the storage of gas. ("puits")

Meaning of "oil and gas", etc., in Parts II and III.

2

In Parts II and III

(a) where the expression "oil and gas" is used it also means "oil or gas": and

(b) where the expression "oil or gas" is used it also means "oil and gas".

APPLICATION OF ACT

Mines and minerals reserved in grant from Crown.

3(1)

Unless the contrary appears to be the intent of the instrument wherein a disposition of the surface rights in respect of any Crown lands is granted or reserved, the grant or reservation shall be construed to convey or reserve the land therein described with the exception of the ores, mines, and minerals on or under the land, and such right of access for the purpose of winning the ores and minerals as is incidental to a grant of ores and minerals; and the ores and minerals and the right of access shall be leased or otherwise disposed of only under this Act.

Mines, etc., under highways vested in Crown.

3(2)

The mines, minerals, and mining rights in, on, or under all common and public highways and road allowances shall be and are hereby vested in the Crown, and may be leased or otherwise disposed of under the regulations; but this subsection does not apply to roads or highways in which the mines and minerals were expressly reserved in the grant or transfer of the road or highway or expressly excepted from the expropriation of the road or highway.

Reservation of travel on roads, etc.

3(3)

In every lease or other disposition of mines, minerals and mining rights in, on, or under all common and public highways and road allowances there shall be implied a reservation protecting the highways and road allowances for public travel, and preventing any user of the mines, minerals, or mining rights so leased or otherwise disposed of which would interfere with public travel, unless and until a road in lieu thereof has been provided and accepted by the municipal or other authority having jurisdiction over the highway or road allowance.

MINES BRANCH

Mines Branch.

4(1)

There is hereby continued a branch of the department to be known as the Mines Branch, which shall be under the control of the minister and through which he shall manage and administer mines and minerals and carry out the provisions of this Act.

Annual report of Mines Branch.

4(2)

The minister shall annually lay before the Legislative Assembly, within 15 days after the first day of meeting thereof, a report of the proceedings and affairs of the Mines Branch during the year next preceding.

Administration by Minister of Mines.

5

The minister may employ any person to investigate the mineral resources of Manitoba or for any special work in connection with the Mines Branch, and may pay for such services out of any money appropriated by the Legislature for that purpose.

POWERS OF MINISTER

Withdrawal of land from prospecting.

6(1)

The minister may withdraw any lands or mining rights or any mining right, the property of the Crown, from prospecting and staking out and from lease.

Re-opening withdrawn land.

6(2)

The minister may re-open for prospecting and staking out and for lease any lands or mining rights so withdrawn.

Working on behalf of Crown.

6(3)

The minister may by order direct that the mines and minerals or mining rights so withdrawn or any part thereof may be prospected, staked out, occupied or worked by or on behalf of the Crown or a Crown agency, subject to such terms and conditions as the minister may prescribe.

Sand and gravel on withdrawn land.

6(4)

Notwithstanding anything in this section, where the minister has directed that the mines and minerals in land or mining rights so withdrawn may be worked by or on behalf of the Crown, the director may in writing authorize the removal of not more than 2,000 cubic yards of sand and gravel subject to the payment of the royalty fixed in the regulations for the removal of sand and gravel belonging to the Crown and to such other terms and conditions as he may prescribe.

Effect of withdrawal.

6(5)

Subject to subsections (3) and (6) lands or mining rights or any mining right withdrawn under subsection (1), until re-opened by the minister, shall remain withdrawn, and shall not be prospected, staked out, occupied or worked except by or on behalf of the Crown.

Dispositions with respect to withdrawn lands.

6(6)

Land or mining rights staked out on behalf of the Crown, and land or mining rights reserved or withdrawn from prospecting, staking out, or acquiring as mineral locations, may be leased by the Crown or worked under an agreement or arrangement with the Crown in such manner, and upon such terms and conditions, and for such price, as may be provided by the Lieutenant Governor in Council.

Imposition of terms and conditions by minister.

6(7)

The minister may, subject to such terms and conditions as he may impose or as may be imposed by the regulations

(a) permit mining to be commenced or continued; or

(b) prohibit the commencement or continuation of mining operations when in his opinion the operations would be against the interest of the public, taking into account resources management and protection of the environment.

Cancellation of surface rights.

6(8)

Where, in the opinion of the minister, the surface rights of a mining claim are required for a townsite, subdivision, summer resort areas or any public purpose or where he considers it in the public interest, he may, by notice in writing, addressed to the claim owner at his last known place of abode, cancel his right to enter upon, use and occupy the surface of the claim and to cut timber thereon; in which case, if he grants a lease of the claim, it shall not convey any right to enter upon, use, or occupy the surface thereof nor to cut timber thereon, unless it so provides.

POWERS OF

LIEUTENANT GOVERNOR IN COUNCIL

Regulations.

7(1)

For the purpose of carrying out the provisions of this Act or The Manitoba Natural Resources Transfer Act according to their intent, the Lieutenant Governor in Council may make such regulations and orders as are ancillary thereto and are not inconsistent therewith; and every regulation or order made under, and in accordance with the authority granted by, this section has the force of law; and, without restricting the generality of the foregoing, the Lieutenant Governor in Council may make regulations and orders

(a) subject to subsection (2), for the leasing of mineral locations;

(b) prescribing the land subject to be staked or acquired as mineral locations, the size, manner of staking, and their tenure, the method of recording and granting the title thereto, the mode of transfer thereof, and the recording of the documents affecting the title thereof, the work required to be done thereon to obtain title, the question of appeals to the minister from the decision of the officers administering this Act, and the extension of time for the doing of the work required;

(c) for the disposal of the surface rights or any part thereof on any mineral location;

(d) subject to subsection (3), prescribing the respective rights of persons holding, or claiming to hold, land, or any estate, interest, or right therein from the Crown under The Crown Lands Act, The Forest Act, The Water Power Act, The Water Rights Act or this Act, where separate rights acquired under two or more of those Acts in the same land are held by different persons;

(e) creating mining districts and mining divisions;

(f) respecting the licensing of persons, firms, or corporations to prospect for, stake out, acquire, or mine any mineral location, and prescribing the number of locations that may be staked out or acquired under any licence in any one year or in any one mining division;

(g) for the appointment of arbitrators or mining boards to hear and determine appeals from the decisions of resident engineers or of recorders;

(h) prescribing, defining, and establishing the powers, duties, and mode of practice or procedure of arbitrators or mining boards appointed as provided in clause (g):

(i) for the opening, construction, maintenance, and use, of roads, power transmission lines, tramways, and aerial tramways through or over mineral locations or lands before July 15, 1930, sold, leased or granted, or after that date leased as mining lands, or recorded as mineral locations, and the opening, construction, maintenance and use of ditches, aqueducts or raceways through or over any such locations or lands for the conveyance and passage of water for mining purposes;

(j) determining the reservations as to timber that shall be inserted in all leases or patents of Crown lands disposed of as mining lands under this Act;

(k) fixing the royalties, fees, dues, or charges to be paid for any leases, permits, mining or mineral rights applied for under this Act or for any other privilege granted in pursuance of this Act;

(l) prescribing terms and conditions subject to which leases of and permits relating to mineral locations, or certain classes of leases of and permits relating to mineral locations, shall be issued;

(m) prescribing certificates or other means of identification for inspectors;

(n) prescribing equipment and type and number of personnel required for mine rescue stations, the mode of operation and maintenance of, mine rescue stations and equipment, and the method of and courses for training mine rescue crews;

(o) for the safety and health of workmen engaged or employed in and about mines;

(p) for the inspection of mines, mine works, and all matters in connection therewith, and setting fees payable for such inspections;

(q) regulating the age and sex of persons who may be employed and setting the maximum number of working hours during which they may be employed in or about a mine;

(r) requiring fencing off or other safety precautions in connection with unworked mines that may be closed down;

(s) prescribing forms to be used under this Act;

(t) requiring from the holder, owner or occupier of any mineral location, reports and statements respecting the work and operations carried on at any mine or on any mineral location;

(u) requiring the owner or operator of a mine to submit plans, schedules and information with respect to the orderly working of the mines and the rehabilitation and protection of the environment during mining operations at the mines and after mining operations are discontinued at the mines;

(v) prescribing things and work to be done with respect to rehabilitation and protection of the environment during mining and after mining operations are discontinued;

(w) fixing the amounts of deposits, assessments and charges to cover the cost of carrying out work relating to rehabilitation and protection of the environment and safety of the public during mining and after mining operations are discontinued;

(x) respecting the issuing of certificates for the use of explosives in mining operations and the operation of hoists at mines and prescribing the terms and conditions to which such certificates are subject;

(y) prescribing the terms and conditions applicable to the Crown or a Crown agency for the purposes of section 6.

Protection and compensation of holders of surface rights.

7(2)

In cases where surface rights of mineral locations have been disposed of, provision shall be made in any regulation or order to which clause (l)(a) applies for the protection and compensation of the holders of the surface rights in so far as they may be prejudicially affected by the regulation or order.

Saving of existing rights.

7(3)

No regulation to which clause (l)(d) applies prejudicially affects existing rights acquired under this Act or under the former Dominion Lands Act (Canada), now repealed.

Retroactive regulation.

7(4)

Notwithstanding The Regulations Act or the provisions of any other Act of the Legislature, the Lieutenant Governor in Council may make regulations under clause (l)(k) to amend or vary the royalties payable under leases of oil and gas rights or Crown mineral interests to yield a royalty thereon that is equivalent or nearly equivalent to the royalty payable under leases of oil and gas rights or mineral interests held by private persons together with the tax and incremental tax imposed under sections 4 and 4.1 of The Oil and Natural Gas Tax Act, or the mill rates imposed under that Act, and such a regulation may be made retroactive to be effective to a date prior to the date on which it is made.

Discovery of minerals by officer of department.

8(1)

Every officer and employee of the department who while holding his office or employment makes an original discovery of valuable mineral upon any lands or any mining rights open to prospecting and staking out as a mining claim shall, in accordance with the regulations, stake out and record a parcel thereof of the size and form of a mining claim on behalf of the Crown, and no licence is required for that purpose.

Effect of purchase by officer of department.

8(2)

Every officer and employee of the department who, either directly or indirectly, purchases or is or becomes proprietor of, or interested in, any mineral location shall forfeit his office and is guilty of an offence and is liable, on summary conviction, to a fine of $500. for each such offence; and any such purchase or interest is void.

PART I

TREATMENT OF ORES IN CANADA

Ores and minerals to be treated in Canada.

9(1)

All permits or leases shall be subject to the provision that all ores or minerals mined from locations described in those permits or leases shall be treated and refined within Canada, so as to yield refined metal or other product suitable for direct use in the arts without further treatment; in default whereof the permit or lease issued for the lands is and shall become void, and the lands forthwith revert to, and become revested in, the Crown, freed and discharged of any interest or claim of any other person, and are open to disposal in such manner as the minister may decide.

Exemption.

9(2)

The Lieutenant Governor in Council may exempt any lands from the operation of this section for such period of time as to him may seem proper.

ADMINISTRATION OF THE ESTATES OF DECEASED OR INSANE MINERS

Provisions of Act not to apply in case of death or insanity.

10

Where the owner of, or of an interest in, a mineral location for which a lease has not been issued, dies or is adjudged to be insane, the provisions of this Act as to forfeiture for nonperformance of work or payment of fees do not apply, except as hereinafter provided, in the first case, either during his last illness or after his decease, and in the second case, either after he has been so adjudged insane, or, if it appears that the neglect or omission on account or by reason of which the mineral location would otherwise have been deemed to be forfeited was attributable to his insanity, then during such period prior to his having been adjudged insane as he may have been shown to have been insane.

Period of exemption may be limited.

11

The minister may limit the period during which all or any interest in any mineral location, the property of such a deceased or insane person, is exempt from the provisions of this Act that require annual performance of work and payment of fees, and may fix the date upon which it shall again become subject to all the provisions of this Act.

Claim to be subject to Act at end of period.

12(1)

At the termination of the period fixed, and subject to the next recording date, the mineral location shall become subject to all the provisions of this Act; and if those provisions are not complied with the title thereto is absolutely forfeited in the event of the estate of the deceased person being the sole owner of the mineral location, and it is forthwith open for relocation without any declaration of cancellation or forfeiture on the part of the Crown.

Where estate a co-owner.

12(2)

Where such an estate is a co-owner, the interest of the estate thereupon becomes vested in the other co-owners who have complied with this Act, in proportion to their respective interests.

Minister may extend period of exemption.

13

The minister may, by order, extend the period of such an exemption as the necessity of the case may in his opinion demand; but, in the case of deceased persons, the period during which such an exemption applies does not extend beyond three years from the date of the death of the deceased.

Public Trustee may administer estate.

14

Where there is no other legal representative of the estate of any such deceased or insane person, the minister may cause the Public Trustee, or such responsible officer as he may name, to take possession of the property and administer it subject to any statute in force respecting the administration of the estates of deceased or insane persons in this province.

Exemptions not to apply to co-owner.

15

No exemption of the interest of a deceased or insane owner in any mineral location applies to, or exempts, any co-owner's interest from the provisions of this Act as to the annual performance of work and payment of fees; and the rights of the co-owners are entitled to protection provided they do, or cause to be done, the prescribed representation work and pay the prescribed fees necessary in connection with those interests not exempted from performance of work and payment of fees.

Failure of co-owner to perform work and pay fees.

16

Where the estate of the deceased or insane person owns an interest in a mineral location, and the co-owners who are required to perform work and pay fees, during the period of the exemption, fail to perform the work required to be done thereon, the interest of the co-owners may, upon the failure being proved to the satisfaction of the mining recorder, after notice of hearing has been served upon all persons interested in the manner prescribed by him, be vested by order of the mining recorder in the estate.

Assignment of mineral location from estate to be recorded.

17(1)

Any person receiving from the Public Trustee or other legal representative of the estate of a deceased or insane person an assignment of a mineral location that has been exempted from the provisions of this Act as to performance of work and payment of fees, because of the death or insanity of the owner thereof, shall record the assignment within two months from the date thereof; and after the assignment has been recorded the mineral location again becomes subject to all the provisions of this Act.

Failure to record assignment.

17(2)

Where the assignment is not so recorded, the provisions exempting the mineral location cease to apply, and the mineral location, at the expiration of the two months, becomes absolutely forfeited and is open to relocation and entry.

Recording of assignment when there are co-owners.

18(1)

Any person receiving from the Public Trustee or other legal representative of the estate of a deceased or insane person, an assignment of an interest in a mineral location that has been exempted from the provisions of this Act as to performance of work and payment of fees because of the death or insanity of the owner thereof, and on which the other co-owner or co-owners are required to perform work and pay fees, shall, within two months from the date of the assignment, record it and comply with the provisions of this Act in respect of representation from the day of the recording of the transfer.

Non-compliance, effect of.

18(2)

Where the assignment is not so recorded, and if the regulations are not otherwise complied with, the interest in question thereupon becomes vested in the other co-owner or co-owners in proportion to their respective interests.

Vesting of interest of co-owner.

18(3)

Where the co-owners who are required to perform work and pay fees fail to do so, the interest of those co-owners may, upon the failure being proved to the satisfaction of the mining recorder, after notice of hearing has been served upon all persons interested, become vested in the co-owner who has acquired the interest of the estate in the mineral location, and who has complied with this Act.

ARBITRATION

Where surface covered by timber licence or boring permit.

19

Where the surface of a mining claim, or any portion of it, is covered by a timber licence, or by a boring claim, or by a grazing permit, or any other form of terminable grant, the lease does not authorize entry upon the land so covered, without the permission of the minister being first had and obtained; and the permission shall be given subject to such conditions for the protection of the rights of such lessee or licensee as it may be considered necessary to impose.

Certain matters subject to The Surface Rights Act.

20

Notwithstanding any provision of this Act, The Mining Board has no jurisdiction with respect to and shall not hear or determine any matter or thing dealing with or having reference to any matter or thing falling within the jurisdiction or powers of The Surface Rights Board established by The Surface Rights Act, including without limiting the generality of the foregoing

(a) the acquisition, granting or utilization of surface rights; or

(b) the payment of compensation for the acquisition, granting or utilization of surface rights; or

(c) the maintenance, preservation or restoration of the surface of land acquired in connection with surface rights; or

(d) the resolution of disputes between operators, occupants and owners arising out of the entry upon, use or restoration of the surface of land;

to the extent that they relate to the exploration, drilling, production, storage, transportation or removal of oil and gas, but those matters shall be dealt with with such modifications as the circumstances require, in accordance with and subject to the provisions of The Surface Rights Act.

Prohibition of entry, etc., on surface.

21(1)

No operator shall enter on, use, or take the surface of any land

(a) for the removal of minerals contained in, or underlying the surface of, the land; or

(b) for mining or drilling operations or any purpose incidental thereto; or

(c) for laying pipelines used for or in connection with mining or drilling operations or the production of minerals; or

(d) for the erection of tanks, stations, and structures, on the land;

unless he has obtained the consent of the owner of the surface rights, and of the occupant thereof, or is entitled to enter on, use, or take, the surface of the land under an order of The Mining Board made under this Act.

Entry on land for gaining access to other land.

21(2)

No person shall enter on any land for the purpose of gaining access to other land for the purpose of doing anything mentioned in subsection (1), unless he has obtained the consent of the owner of the surface rights in the land first mentioned, and of the occupant thereof, or unless he has obtained an order of The Mining Board permitting him to do so, made under this Act.

Application to board for interest in surface rights.

22(1)

Where surface rights required by an operator for any purpose mentioned in this Act are vested in a person other than the Crown, if the operator cannot acquire by agreement the right of entry upon those surface rights, he may make application to the board for the acquisition of such interest in the surface rights as may be necessary for the efficient and economical performance of his operations; and he shall serve a copy of the application upon the owner of the land and upon any occupant thereof, if it is occupied other than by the owner.

Application to board for interest in surface rights in Crown lands.

22(2)

Where the surface rights required by an operator are held under a lease, or other form of terminable grant from the Crown, or have been disposed of by the Crown pursuant to any Act or regulation that contemplates the issue of a conveyance for the surface rights, the operator, before beginning mining operations thereon, shall make an application to the board for the acquisition of such interest in the surface rights as may be necessary for the efficient and economical performance of the operations; and he shall serve a copy of the application upon the occupant of the land and file a copy thereof with the Director of Crown Lands.

Operations where surface rights held by Crown.

22(3)

Where the surface rights required by an operator are held by the Crown and no person other than the Crown has any interest therein, or are lands within the boundaries of a forest reserve or a district established under The Forest Act, or are lands set aside for any public purpose under The Crown Lands Act or any other Act, the operator, before beginning mining operations thereon, shall obtain the written authority of the director; and, in carrying on those operations, he shall comply with such stipulations and conditions as may be prescribed by the director.

Hearing and notice thereof.

23(1)

Upon the receipt of any such application, the board shall fix a date for a hearing, and may require the operator to give to any person having or claiming an interest in the land that is registered in, or notice of which is filed in, the land titles office, and to any lessee or occupant of the land, and to any other person who may appear to be interested therein, notice of the hearing.

Notice to director.

23(2)

Notice in writing shall be given to the Director of Crown Lands at least five days before the hearing of any application relating to Crown lands, or to lands held under lease or other form of terminable grant from the Crown, or to lands disposed of by the Crown under any Act or regulation that contemplates the issue of a conveyance.

Procedure on hearing.

23(3)

The board shall proceed in accordance with its rules of procedure and practice to hear the application.

Evidence.

23(4)

The board is not bound by the rules of legal evidence.

Submissions by minister.

23(5)

At any hearing submissions or evidence by or on behalf of the minister may be given either orally by a person present at the hearing or may be submitted in writing.

Adjournment of hearing.

23(6)

The board may adjourn the hearing of an application from time to time for such length of time as it deems expedient or advisable.

Application for leave for immediate entry.

24(1)

Notwithstanding anything in this Act or in the rules of procedure and practice of the board, at any time after the filing of an application with the board, an operator may, upon giving all parties affected seven clear days' notice thereof, apply to the board for leave to enter forthwith upon and use the surface of any land for any or all purposes set forth in section 21; and the board may, if it deems it proper so to do, grant the leave for which application is made upon the operator providing security sufficient, in the opinion of the board, to protect all the rights and privileges of the owner and occupant thereof; and it may be a term of any leave so granted that the operator shall proceed without any unnecessary delay with his application to the board.

Where required notice cannot be given.

24(2)

Where the operator is unable to give all parties affected thereby seven clear days' notice of his application as required by subsection (1), he may make his application to the board after giving such notice to the parties affected as may be required in writing by the board.

Determination of rights and compensation by the board.

25(1)

The board shall determine

(a) what portion of the surface rights the operator requires for or incidental to the efficient and economical performance of his operations;

(b) the exact location thereof;

(c) the amount of the compensation that is payable, and the person or persons to whom that compensation shall be paid;

(d) what portion of the surface rights of other lands the operator requires to gain access to the land on which his operations are being conducted; and

(e) such other conditions as the board deems necessary in connection with the granting of the right of entry.

Factors in determining compensation.

25(2)

In determining the compensation the board may consider

(a) the value of the land for the purpose for which it is used by the owner of the surface rights irrespective of any enhancement thereof from the existence of minerals thereunder;

(b) the amount of land that may be permanently damaged by the operator's operations;

(c) the adverse effect of the right of entry on the remaining land;

(d) the compensation to be paid for severance;

(e) the compensation to be paid for the nuisance, inconvenience, and noise, that may be caused by, or arise from or in connection with, the operations; and

(f) such other factors as the board may from time to time deem proper, relevant, or applicable.

Re-hearing of application.

26

The board may re-hear an application before deciding it, and may review, rescind, change, alter, or vary, any decision or order made by it.

Contents of order.

27

An order of the board need not show upon its face that any proceedings were taken or notice was given, or that any circumstances existed, necessary to give the board jurisdiction to make the order.

Dispute as to surface rights.

28(1)

An owner or occupant of surface rights or the operator interested in minerals thereunder, may at any time apply to the board to arbitrate any dispute arising between the parties interested in the surface rights arising as a result of the acquisition of surface rights for any purpose, whether the surface rights were acquired by an agreement or pursuant to an order of the board.

Procedure of board.

28(2)

Upon receiving an application under subsection (1), the board shall fix a time and place for a hearing, and shall proceed as in the case of an application for right of entry to determine the dispute.

Services of assistants.

28(3)

The board may obtain the services of such persons as the board considers necessary to assist the board in the determination of the dispute.

Costs.

28(4)

The board in its absolute discretion may fix the costs of, and incidental to, the arbitration at a sum not less than $40. and not more than $100., and may order the costs to be paid by any or all of the parties to the arbitrations.

Definitions.

29(1)

In this section

"minerals" does not include oil or gas; ("minéraux")

"tract" means a contiguous area of land within which

(a) two or more persons jointly have; or

(b) two or more persons have an undivided interest in;

the right to mine for and remove minerals either because of having joint or common title to those minerals or under a lease or licence from a person or persons having individual, or joint or common, title to those minerals. ("parcelle")

Application for pooling order.

29(2)

Where the persons having joint or undivided interests in the right to mine for and remove minerals from a tract cannot agree to pool their interests for the purpose of mining the minerals in the tract, one or more of those persons may apply to the board to order all those persons having interests in the right to mine for and remove minerals from the tract to pool their interests for the purpose of mining those minerals and subsections 68(2) to (8) and sections 69 to 73 apply thereto, with such modifications as the circumstances require.

MINING BOARD

Continuation of Mining Board.

30(1)

The Mining Board, consisting of not more than five members, of whom one shall be designated as chairman and another as deputy chairman is continued.

Membership.

30(2)

The members of the board shall be appointed by order of the Lieutenant Governor in Council, and each member of the board, unless he resigns, shall hold office during the pleasure of the Lieutenant Governor in Council.

Vacancies.

30(3)

If a vacancy occurs in the membership of the board, the Lieutenant Governor in Council may fill the vacancy.

Acting members.

30(4)

In the case of illness or absence of any member of the board, the minister may appoint another person to act in his place and stead; and the person so appointed shall have and exercise all the powers of a member of the board.

Quorum.

30(5)

A majority of the board constitutes a quorum at any meeting.

Personal interest in matters before board.

30(6)

A member of the board who has any monetary interest, directly or indirectly, in any boring claim, mine, mineral location, mining claim, mining lands, mining property, mineral rights, quarrying claim, or surface rights, shall not act or vote as a member of the board when any question affecting that interest, or in which he is interested by reason of that interest, is before the board.

Records of the board.

30(7)

The board shall keep a record of its proceedings in which shall be entered

(a) a copy of each application to the board;

(b) a copy of each order made by the board;

(c) a report of each decision made by the board; and

(d) a report of each matter heard or considered by the board.

Powers of board.

30(8)

The board may perform, execute and carry out all the duties, powers, and. functions, imposed or conferred upon it under this Act or any other Act; and for that purpose the board may make such just and reasonable orders as it deems necessary; and it may do all or any acts and things that are necessary for, or incidental to, the performance, execution, or carrying out, of any such duty, power, or function.

Rules and regulations.

31(1)

The Lieutenant Governor in Council may make rules and regulations

(a) prescribing the practice and procedure before the board;

(b) respecting the officers of the board;

(c) respecting the sittings of the board and the places at which the sittings shall be held; and

(d) generally for the better carrying out of the provisions of this Act relating to the board.

Substitutional service.

31(2)

Where in any application or matter before the board, whether under this Act or under any other Act of the Legislature, it is made to appear, to the satisfaction of the board, that personal service of any notice or document required to be served on any person under this Act or under any other Act of the Legislature, or under any regulations made thereunder, cannot conveniently be made, the board may order and allow service to be made

(a) by publication in The Manitoba Gazette;

(b) by publication in a newspaper;

(c) by registered mail; or

(d) by service upon the Public Trustee;

and such service shall be conclusively deemed to be equivalent to personal service; and where service is made by registered mail, the service shall be conclusively deemed to have been effected on the day that the notice or document is mailed to the person.

Filing of orders with recorder.

32

Forthwith after making any order or decision, the board shall file a copy thereof with the recorder and send a copy thereof, by registered mail, to each person of whom it has notice who is affected by the order or decision.

Recorder to issue certificate of decision.

33

Every person affected by the decision is entitled, upon payment of the prescribed fee, to receive from the recorder a certificate thereof which shall contain the entry of the decision in the books of the recorder.

Decision of board to be final.

34

The decision of the board is final and binding, unless appealed from as in this Act provided.

Costs.

35

Subject to subsection 28(4), the board shall not award costs but may, in its discretion, allow the fees and conduct money of witnesses and may direct by whom they shall be paid.

Witnesses and enforcement of attendance.

36

A subpoena may issue out of the Court of Queen's Bench, for the purpose of compelling the attendance of witnesses, and the production of documents and things, in any proceeding before the board; and the board also has, with respect to matters that may be dealt with by it under this Act, all the powers of summoning and enforcing the attendance of witnesses and compelling them to give evidence and produce documents and things that a judge of a Court of Queen's Bench has in civil cases.

Exclusion of questions involving validity of patents or leases.

37

The board shall not declare forfeited and void, or cancel or annul, any Crown patent, transfer, or lease issued for lands, mining lands, mineral locations, or mining rights; but every action or other proceeding to declare forfeited or void or to cancel or annul any such Crown patent, transfer or lease may be brought or taken in the Court of Queen's Bench, and shall be heard and determined in the same manner as if this Act had not been passed.

Transfer of proceedings to Court of Queen's Bench.

38

A party to any proceedings under this Act brought before the board and involving any right, privilege or interest in, or in connection with, any mining lands, mineral locations, or mining rights, may at any stage of the proceeding apply to the Court of Queen's Bench for an order transferring the proceeding to the Court of Queen's Bench.

Order of Mining Board as judgment of court.

39

A duplicate of any order made by the board may be filed in the office of the Registrar or a deputy registrar of the Court of Queen's Bench and, upon being so filed, becomes an order or judgment of the court and is enforceable as an order or judgment of the court; but the court or a judge thereof may stay proceedings thereon if an appeal is brought from the order.

APPEALS FROM MINING BOARD

Appeals from board.

40(1)

A person affected by any decision or order of the board, whether ministerial or judicial, may appeal the decision or order to the Court of Queen's Bench which shall decide the matter and make such order in the matter as it deems just.

Evidence on appeal.

40(2)

Upon an appeal from a decision or order of the board, the court may require or admit new or additional evidence or may retry the matter.

Procedure on appeal.

40(3)

The appeal shall be by originating notice of motion filed in the office of the court and served upon all parties interested in the order or decision

(a) where the appellant has been notified of the decision or order, within 15 days of the date on which he was notified; and

(b) where the order or decision is published in an issue of The Manitoba Gazette, within 15 days of the date of publication of that issue; and

(c) where the appellant has not been notified of the decision or order, and the decision or order has not been published in The Manitoba Gazette, within 30 days of the date on which the decision or order was entered in the records of the board;

or within such further time as the court may allow.

Extension of time for service.

40(4)

Where an originating notice of motion in an appeal of a decision or order of the board has been filed in the office of the court within the time specified in this section, if, after reasonable effort any of the parties entitled to notice cannot be served within the time specified in this section, the court may extend the time for service and make such order for substitutional service or other service as may be deemed just.

Where notice not given.

40(5)

Where a person whose interests are affected by a decision or order of the board has not been notified thereof as provided in section 32, if the court is satisfied that he has suffered substantial injustice and has not been guilty of undue delay, it may allow the person to appeal the decision or order after the expiry of the period within which the appeal is required to be taken under subsection (3).

Address for service to be on notice of motion.

40(6)

The originating notice of motion shall have endorsed upon it an address for service at some place in Manitoba; and any notice or document relating to the appeal shall be sufficiently served upon the appellant if left with an adult person at that place, or, if no such person can there be found, if mailed by registered mail to the appellant at that address.

Mode of service when no address given.

40(7)

Where no address for service is endorsed on the originating notice of motion as provided in subsection (6), any such notice or document may be served upon the appellant by posting it up in the office of the court in the judicial centre which is closest to the land affected.

Further appeal.

40(8)

An appeal lies from the decision or order of the court as in the case of any other action or proceeding in the court.

PLANS OF MINES

Keeping of up-to-date plans.

41(1)

At every mine, the owner or operator, thereof shall keep or cause to be kept, up-to-date and on a scale acceptable to the chief mining engineer, the following plans:

(a) a surface plan showing the boundaries of the mineral location or parcels of land on which mining operations extend, the co-ordinates of the section of property under which mining has been done, all lakes, streams, roads, railways, electric power transmission lines, main pipe lines, buildings, adits, open surface workings, exploration drill holes collared on surface, outcroppings of rock, dumps, tailings disposal sites, and shafts, the latter having been geographically located by connection with a registered survey;

(b) underground plans of each level showing all underground workings, including shafts and tunnels, diamond drill holes, dams and bulkheads and each level plan shall be shown on a separate drawing;

(c) vertical mine sections at suitable intervals and at suitable azimuths, showing all shafts, tunnels, drifts, stopes, backfilled workings and other mine workings in relation to the surface, including the location of the top of the bedrock, surface of the overburden and surface of any adjacent watercourse or body of water, and each section shall be shown on a separate drawing;

(d) ventilation plans, showing the direction and volume of the main air currents, the location of permanent fans, ventilation doors and stoppings, and connections with adjacent mines.

Production of plans.

41(2)

On any examination or inspection of a mine, the owner or operator thereof shall, if required, produce to the inspector or other authorized person all plans and sections of the workings referred to in subsection (1), and shall, if required by the inspector or other authorized person, cause to be marked on such plans and sections the progress of the mine up to the time of the examination or inspection, and shall furnish him with a copy or tracing thereof.

Copies to chief mining engineer.

41(3)

A copy of the plans required by clause (1)(b), and mine sections as required by clause (1)(c), certified by the owner or operator of the mine shall be submitted to the chief mining engineer on or before March 31 in each year, showing the workings of the mine up to and including December 31 next preceding.

Submission of underground plans before closure of mine.

41(4)

Before a mine or a part of a mine is abandoned, closed down or otherwise rendered inaccessible, all underground plans and sections with respect to that mine shall be brought up-to-date by the owner or operator, thereof and a copy thereof, certified by the owner or operator, shall be submitted to the chief mining engineer.

Submission of surface plans.

41(5)

Before work at a mine ceases, the surface plan referred to in clause (1)(a) showing all openings to underground workings and the outline of the top limit of all stopping areas less than 150 feet from the top of bedrock, shall be brought up-to-date and two certified copies thereof submitted to the chief mining engineer.

Permanent record.

41(6)

Plans submitted in accordance with subsections (4) and (5) shall be preserved by the department as permanent records.

Access to plans.

41(7)

Subject to subsection (8), no person other than an official of the department, shall have access to the plans submitted in accordance with subsections (3) and (4).

Access to plans in certain uses.

41(8)

Notwithstanding subsection (7), a person may be permitted access to plans submitted in accordance with subsections (3) and (4) where

(a) the owner or operator of the mine consents thereto in writing; or

(b) in the opinion of the chief mining engineer it is necessary in the interest of safety to show the plans to the owner or operator of an adjacent mine or of surface rights; or

(c) the mine is abandoned or the mineral location cancelled; or

(d) the minister considers it necessary to determine whether or not the mine can be reopened.

Safekeeping of plans, etc.

41(9)

All mine plans, survey notes and computations shall be kept at the mine office away from risk of damage by fire or any other cause.

MINE RESCUE STATIONS AND CREWS

Establishment of mine rescue stations.

42(1)

The minister may, in writing, order the owner, manager or agent of a mine to establish, equip, operate and maintain a mine rescue station in respect of the mine.

Application of Regulations Act.

42(2)

An order made under subsection (1) is not a regulation under The Regulations Act and that Act does not apply to it.

Costs.

42(3)

The owner of the mine is responsible for the cost of establishing, equipping, operating and maintaining a mine rescue station and for providing, and assuring that employees attend, courses of training in mine rescue work.

Employee in charge of station.

42(4)

The owner, manager or agent of a mine in respect of which an order has been made under subsection (1) shall appoint an official or employee of the owner of the mine to be responsible for and in charge of the operation, equipment and maintenance of the mine's rescue station and that official or employee shall keep the equipment in efficient and workable condition so that it may at any time be used.

Mine rescue crews.

42(5)

Where the minister has made an order under subsection (1) in respect of a mine, the owner, manager or agent of the mine shall cause such workmen and supervisors as the director may deem necessary to be trained, under the supervision of an inspector designated by the minister for the purpose, in the use and maintenance of mine rescue equipment.

Supervision of mine rescue crews.

42(6)

The manager of a mine in respect of which an order has been made under subsection (1) is responsible for, and shall supervise and direct, the mine rescue crews in all rescue or recovery operations conducted at the mine.

STATISTICAL RETURNS

Owner or agent to file annual returns.

43(1)

For the purpose of their tabulation under the instructions of the minister, the owner or agent of every mine or other works to which this Act or regulations apply shall, on or before January 31 in every year, send to the Mines Branch a correct return for the year that ended on December 31 next preceding, showing the number of persons ordinarily employed below and above ground respectively, and distinguishing the different classes and ages of the persons so employed whose hours of labour are regulated by the regulations, the average rate of wages of each class, and the total amount of wages paid during the year, the quantity in standard weight of the mineral dressed, and of the undressed mineral that has been sold, treated, or used during that year, and the value or estimated value thereof, and such other particulars as the minister may prescribe.

Metalliferous mines to make monthly returns.

43(2)

The owner or agent of every metalliferous mine shall, if required, make a similar return for the month or quarter at the end of each month or quarter of the calendar year.

Forms.

43(3)

The return shall be in such form as may be from time to time prescribed by the minister, who shall furnish forms for the purpose of the returns.

Non-compliance and false returns.

43(4)

Every owner or agent of a mine who fails to comply with this section, or makes any return which is to his knowledge false in any particular, is guilty of an offence.

Appointment of inspectors.

44

The minister may appoint persons as inspectors for the purpose of enforcing this Act and the regulations.

POWERS AND DUTIES OF INSPECTORS

Powers of inspectors.

45(1)

An inspector may,

(a) make such examination and inquiry as he may deem necessary to ascertain whether the provisions of this Act or the regulations are complied with, and give notice to the owner or agent in writing of any particulars in which he considers a mine or any portion thereof, or any matter, thing or practice, to be dangerous or defective, or contrary to this Act or the regulations, and require them to be remedied within the time named in such notice and to give written notice to the inspector of the completion of any work;

(b) enter, inspect, and examine any mine, and any portion thereof, at all reasonable times by day and night, but so as not to impede unnecessarily or obstruct the working of the mine;

(c) order the immediate cessation of work in, and the departure of all persons from, any mine or portion thereof that he considers unsafe, or allow persons to continue to work therein on such precautions being taken as he deems necessary;

(d) exercise such other powers as he may deem necessary for ensuring the health and safety of miners and all other persons employed in or about mines, smelters, metallurgical and mining works.

Offences.

45(2)

Every owner, or operator of a mine, who

(a) fails, refuses or neglects to comply with a notice under clause (1)(a) ; or

(b) fails, refuses or neglects to give written notice to an inspector of the completion of any work under clause (1)(a); or

(c) fails, refuses or neglects to comply with an order under clause (1)(c);

is guilty of an offence and on summary conviction is liable to a fine not exceeding $5,000. and is guilty of a continuing offence for every day thereafter that the offence continues and is liable on summary conviction to a fine not exceeding $500. for each day that the offence continues.

Production of identification.

45(3)

Where an inspector in carrying out his duties under this Act or the regulations is requested by the owner or operator of a mine, to produce a certificate or other means of identification or authorization, the inspector shall comply with the request.

Report and inquiry re accidents in mines.

46(1)

The minister may direct an inspector to make a special inquiry and report with respect to any accident in or about any mine, that has caused or that, in the opinion of the minister, could have caused loss of life or personal injury to any person.

Power of inspector in conducting inquiry.

46(2)

In conducting the inquiry, the inspector may compel the attendance of witnesses and the production of books, documents, and things and take evidence upon oath.

Report of dangerous conditions by employee.

47(1)

Where an employee in or about a mine has reason to believe, and does believe, that conditions exist that are dangerous to his health or safety in the performance of his work, and he has reported those conditions to and examined the site with his supervisor or person in a responsible capacity at the mine, if the conditions remain uncorrected, he shall in writing, report the conditions to an inspector.

Inspector to examine.

47(2)

Where an inspector receives a report under subsection (1), he shall forthwith make an examination and inquiry and make such order as he deems necessary to achieve the remedying of the conditions.

Employee not to be dismissed, etc. for reporting conditions.

47(3)

No employer of employees in or about a mine, shall dismiss, discharge, suspend, transfer, lay-off or otherwise discriminate against an employee solely for the reason

(a) that the employee made a report under subsection (1); or

(b) that the employee refused to work or continue to work under the conditions that he reported under subsection (1) and where a report of an inspector made under subsection (2) indicates that the employee had reasonable and probable grounds for believing that those conditions were dangerous to his health and safety.

Reinstatement of employee.

47(4)

Where an employer is convicted of a violation of subsection (3), in addition to any other penalties authorized by law, the convicting magistrate or justice of the peace may order the employer to pay to the employee a sum not exceeding the amount of wages, salary or other remuneration that would have accrued to the employee up to the date of the conviction if the employee had not been dismissed, discharged, suspended, transferred, laid-off or otherwise discriminated against, and may order the employer to reinstate the employee at such date as the magistrate or justice of the peace thinks just and proper in the circumstances in the position that the employee would have held if he had not been dismissed, discharged, suspended, transferred, laid-off or otherwise discriminated against.

Dangerous or unsafe condition.

47(5)

For the purpose of this section any condition existing at a mine that constitutes a risk to an employee that is not normal to the usual risks of a job that an employee is required to do from time to time, shall be deemed to be a condition that is dangerous to the health of the employee or to the safety of the employee in the performance of his work.

Supervisor not to require employee to work under unsafe conditions.

47(6)

Where an owner or operator or a supervisor or a person in a responsible capacity at a mine knows or ought to have known that any condition exists at the mine that is dangerous to the health or safety of the employee, he shall not require or permit the employee to engage in, carry on or continue to work at the mine under that condition.

Offence and penalty.

47(7)

Any person mentioned in subsection (6) who violates the provisions of that subsection is guilty of an offence and in addition to any penalty to which he may be subject, he shall not work in a supervisory capacity underground at any mine for a period of six months from the date of his conviction.

Employee subject to certain discipline.

47(8)

Where an employee takes unfair advantage of this section for frivolous reasons he may be subject to such discipline as is available to be imposed upon him by his employer subject to the contractual relationship between the employer and his employee or a bargaining agent on behalf of the employee.

OFFENCES, PENALTIES AND PROSECUTIONS

Description of offences.

48

Every person who

(a) prospects, occupies or works any Crown lands or mining rights for minerals otherwise than in accordance with this Act; or

(b) defaces, alters, removes, or disturbs any post, stake, picket, boundary line, figure, writing, or other mark lawfully placed, standing, or made;

or

(c) pulls down, injures, or defaces any rules or notice posted up by the owner or agent of a mine; or

(d) unlawfully marks or stakes out in whole or in part a mineral location;

is guilty of an offence and is liable, on summary conviction, to a fine not exceeding $200.

Offence and penalty.

49(1)

Every person who is guilty of an offence against section 42 or any regulation or order made under clause 7(1)(o), (q), (r), (u), (v) or (w), is liable on summary conviction to a fine not exceeding $5,000.

Further offences.

49(2)

Any person who

(a) knowingly makes a false statement to an inspector while the inspector lawfully carries out his duties under the Act or the regulations; or

(b) knowingly makes a false entry in any document, book, record, plan or section recorded or kept in compliance with the Act or the regulations or knowingly acquiesces in or orders the making of any such false entry; or

(c) obstructs an inspector or officer of the department in the execution of his duty ; or

(d) being the owner or operator of a mine refuses or neglects to furnish to an inspector or officer of the department, the means necessary for making an entry, inspection, examination or inquiry in relation to any issue under this Act;

is guilty of an offence and on summary conviction is liable to a fine not exceeding $5,000.

General offence.

49(3)

Any person who violates any provision of this Act or the regulations for which no specific penalty is provided, is guilty of an offence and on summary conviction is liable to a fine not exceeding $500.

Additional penalty.

49(4)

Notwithstanding any other provision of this Act where the violation of any of the provisions of this Act or the regulations for which a person is convicted resulted in death or serious personal injury or caused a dangerous accident, in addition to the pecuniary penalty to which that person is subject, he is liable to imprisonment to a term not exceeding six months.

Laying informations.

50

Any person may lay information in respect of any offence or alleged offence against this Act or the regulations.

MISCELLANEOUS

Minister may grant relief from forfeiture.

51

Where forfeiture or loss of rights has occurred, the minister within six months after default, or the Lieutenant Governor in Council at any time after such six months, may, upon such terms as he may deem just, make an order relieving the person in default from the forfeiture or loss of rights; and upon compliance with the terms, if any, so imposed, the interests or rights forfeited or lost shall be revested in the person so relieved, but subject however, to any intervening right of any person arising subsequent to the default sought to be remedied and prior to the date on which the application for relief is made.

Damage to claims of others.

52

In mining operations no person shall, without right or authority, cause damage or injury to the holder of any location other than his own by throwing earth, clay, stones, or other material upon the other location, or by causing or allowing water that may be pumped or baled from his own location to flow into or upon the other location; and a person who contravenes this section is guilty of an offence and, in addition to any civil liability, is liable, on summary conviction, to a fine of not more than $50., and, in default of the payment of the fine, to imprisonment for a period of not more than one month; and if the default continues, the lease may be cancelled.

Program for protection of surface of lands.

53(1)

The owner or operator of a mine shall, in accordance with the regulations institute and carry out a program for the protection and rehabilitation of the surface of lands used during the course of mining operations at that mine.

Condition of environment on abandonment of mine.

53(2)

Where a mine is abandoned, or mining operations thereat are discontinued the owner or operator of the mine, shall leave the lands affected by the mining operations in a condition that meets the requirements of the regulations.

Inspector may cause rehabilitation work.

53(3)

Where the owner or operator of a mine, does not carry out or complete a program of protection and rehabilitation as required under subsection (1), or fails to leave lands affected by mining in a condition that meets the requirements of the regulations, the minister may cause work to be done to carry out or complete the program or to bring the lands to a condition that meets the requirements of the regulations.

Dangerous conditions at abandoned mine.

53(4)

Where a mine has been abandoned or work at a mine has been discontinued, if an inspector is satisfied that a dangerous condition exists in or about the mine or in connection with any building, equipment, or material in or about the mine, he may, in writing, order the owner or operator of the mine to correct the condition.

Minister may correct dangerous condition.

53(5)

Where an inspector orders a condition to be corrected under subsection (4), and the condition is not corrected within the time specified in the order, the minister may cause work to be done to correct the condition.

Where minerals vested in Crown.

53(6)

Where a mine located on lands, the mining rights in respect of which are vested in the Crown, is abandoned or work thereat has been discontinued, and the owner or operator of the mine is unknown or is no longer within the province, if an inspector is satisfied that dangerous conditions exist in or about the mine, or in connection with any building, equipment or material in or about the mine, the minister may, without an order being made under subsection (4), cause work to be done to correct the condition.

Costs as debt to Crown.

53(7)

Any costs incurred by the government in respect of work caused to be done by the minister under this section shall be charged against the owner or operator of the mine concerned and the costs are a debt due by the owner or operator to the Crown in right of Manitoba.

Interest on debt.

53(8)

A person indebted to the Crown under subsection (7) shall pay interest on the amount of the debt at a rate of 7% per year calculated from a date 30 days after the date on which he is notified by the minister in writing, of the debt.

Charging debt against deposit.

53(9)

Where a person who is indebted to the Crown under this section has made a deposit or paid an assessment or charge that is held by the government as security for the completion of any work or program by the debtor, the government may charge the debt of that person together with interest thereon calculated in accordance with subsection (8), against the deposit, assessment or charge so held by the government.

Certification of debt

53(10)

The minister may issue a certificate showing the name and address of any person liable for a debt due to the government under this section and certifying the amount of the debt; and he may register this certificate in the land titles office of any land titles district and with the recorder of any mining district, and, from the time of the registration the certificate binds and forms a lien and charge in favour of the government for the amount so certified on all lands and interests therein of the person, that are situated in that land titles district or mining district, as the case may be.

Realization of lien.

53(11)

A certificate under subsection (10) shall be registered on its mere production without an affidavit of execution; and the lien and charge thereby created may be realized in the same manner as if it were a mortgage on the land or interests therein executed by the person liable for this debt.

Insolvency of debtor.

53(12)

In case of the insolvency of any person, or the liquidation of any company, that is indebted to the government under this section, the amount of the debt is a lien and charge upon the estate and assets of the person or company, subject to any statute of Canada and to any lawful costs and charges that may be incurred in connection with the insolvency or liquidation proceeding.

Non-cancellation of right to operate mineral location.

53(13)

Where a mineral location or any interest therein, is subject to a lien registered under this section, the record of the right granted to a person to operate that mineral location shall not be cancelled except where the minister is of the opinion that it is in the interest of the public to cancel the right and grant it to another person.

Release of lien.

53(14)

The minister, with or without payment, or under such terms and conditions as he deems proper, may release a lien registered under this section; and the release may be registered on production in the appropriate land titles office of any land titles district or with the recorder of any mining district.

Cancellation not to relieve debt.

53(15)

The owner or operator of a mineral location does not cease to be responsible for any matter under this section by reason only of the abandonment of the mineral location or cancellation of the right to operate the mineral location under subsection (13).

Ex officio justices of the peace.

54

The director or any inspector, recorder, or resident engineer, appointed under this Act is, ex officio, a justice of the peace for every district in Manitoba, and it is not necessary that any of them should possess any residential or property qualifications; and any such officer may appoint any number of constables, not exceeding four, for the territory of which he is appointed as such an officer, and the persons so appointed from time to time shall be respectively constables and peace officers for the purposes of this Act for and during the term, and within the territory, for which they are appointed respectively.

Director not to divulge certain information.

55

The director, provincial geologist, provincial assayer, or any inspector, resident engineer, recorder, or other officer appointed under this Act is not bound to disclose any information obtained by him in his official capacity which the minister certifies ought not in the public interest to be divulged or cannot without prejudice to the interests of persons not concerned, in the litigation be divulged; and all such information is privileged.

Previously acquired rights not affected.

56

Nothing herein, save where such an intention is expressly stated, affects prejudicially any mining rights and interests acquired before July 15, 1930; and all mining rights and privileges before that date and hereunder acquired shall, without it being expressly so stated, be deemed to be taken and held subject to the rights of the Crown and to the public rights of way and water.

Affidavits.

57

All affidavits, oaths, statutory declarations, or solemn affirmations, required to be taken or made under this Act or the regulations, may be taken or made before any person authorized by The Manitoba Evidence Act, or any officer of the Mines Branch, or by any other person authorized by the Lieutenant Governor in Council.

Right to construct public roads not affected.

58

Nothing herein limits the right of the proper authorities in any district or territory containing Crown lands, to lay out and construct, from time to time, public roads across, through, along, or under any ditch, water right, or mineral location.

Rights-of-way for transmission lines.

59

The minister may grant authority to lay out rights-of-way for electrical transmission lines and tramways, aerial or otherwise, pipe lines, flumes or water ditches, across, through, along, over, or under any mining property, together with full right to enter upon the mining property, or such portion thereof as the minister may deem necessary, for the construction, maintenance, and repair of any such works, subject to full compensation being made to the owner of the mining property for any damage or loss that he may sustain by reason of the entry; and the compensation, in case of dispute, shall be determined by the Court of Queen's Bench.

PART II

OIL AND GAS CONSERVATION

Definitions.

60

In this Part and Part III

"field" means the general area underlain by one or more pools; ("champ")

"just and equitable share"

(a) where used in relation to the share of the owner of a spacing unit or tract in the oil and gas production from a field, pool, or a part thereof, means, unless the owner agrees otherwise with the other owners of spacing units or tracts in the field, pool, or parts thereof, and subject to reasonable variation for the prevention of waste and for structural position, that portion of the total allowable production of oil and gas from the field, pool, or part thereof that bears the same proportion to that total allowable production as the quantity of oil and gas recoverable from that spacing unit or tract bears to the total quantity of oil and gas recoverable from the field, pool, or part thereof if that quantity of oil and gas recoverable were produced in such a manner as to prevent reasonably avoidable drainage from other spacing units in the field, pool, or part thereof and to enable the working interest owners of each developed spacing unit to use his fair share of reservoir energy ;

(b) where used in relation to the share of the owner of a tract within a spacing unit, means that portion of the total allowable or allocated production of oil and gas from the spacing unit that bears the same proportion to that total allowable or allocated production as the quantity of oil and gas recoverable from that tract bears to the total quantity of oil and gas recoverable from the spacing unit, if each tract within the spacing unit were developed separately and the oil and gas therefrom were produced in such a manner as to prevent reasonably avoidable drainage from other tracts and to enable the owner of each tract to use his fair share of reservoir energy;

(c) where used in relation to a person who has a joint interest in the rights of the royalty owners of a tract or of a spacing unit that is comprised of not more than one tract or a part of not more than one tract, or in the rights of the working interest owners of a tract or of a spacing unit that is comprised of not more than one tract or a part of not more than one tract, means an amount obtained by dividing the portion of the total allowable or allocated production of oil and gas from the tract or spacing unit allocated to the royalty owners or working interest owners, as the case may be, by the number of persons having such a joint interest: and

(d) where used in relation to a person who has an undivided interest in the rights of the royalty owners of a tract or of a spacing unit that is comprised of not more than one tract or of part of not more than one tract, or in the rights of the working interest owners of a tract or of a spacing unit that is comprised of not more than one tract or of part of not more than one tract, means that portion of the portion of total allowable or allocated production of oil and gas from the tract or spacing unit allocated to the royalty owners or working interest owners, as the case may be, that bears the same proportion to that total allowable or allocated production so allocated as the interest of that person bears to the total interest of all the royalty owners or all the working interest owners, as the case may be; ("part juste et équitable")

"owner" means a working interest owner or a royalty owner and when used in the plural means both working interest owners and royalty owners; ("propriétaire")

"pool" means a natural underground reservoir containing, or appearing to contain, an accumulation of oil or gas separated, or appearing to be separated, from any other such reservoir or accumulation in the general structure: ("gisement")

"pooling agreement" means an agreement made under section 67 whereby the owners of separate tracts or interests within a spacing unit agree to pool their interests; ("accord de mise en commun")

"pooling order" means an order of the board made under subsection 68(4) ordering the owners of separate tracts and interests within a spacing unit to pool their interests; ("ordonnance de mise en commun")

"royalty owner" means a person, other than a working interest owner, who has any interest in a right to receive a portion of the oil and gas produced from any lands or a portion of the proceeds from the sale thereof, including a reversionary interest, a royalty interest reserved to the lessors named in any subsisting oil and gas lease, and any over-riding royalty interest, or an interest in a payment under, or encumbrance on, a lease or other contract relating to oil and gas that does not carry with it the right to search for or produce the oil and gas; ("titulaire de redevance")

"spacing unit" means

(a) an area allocated to a well for the purpose of drilling for and producing oil and gas; or

(b) an area designated as an area that may be allocated to a well if a well is drilled;

and the subsurface regions vertically beneath an area so allocated or designated but, where a well is drilled to, or producing from, a specified pool, geological formation, or strata, or member, the subsurface regions vertically beneath the area allocated or designated for that well are limited to that specified pool, geological formation, or strata, or member; ("unité d'espacement")

"tract" means a contiguous area within a spacing unit or pool, as the case may be, within which

(a) one person has; or

(b) two or more persons jointly have; or

(c) two or more persons have an undivided interest in;

the right or an interest in the right to drill for and produce oil or gas either because of having individual, joint, or common title to the oil and gas or under an oil and gas lease from a person or persons having such an individual, joint, or common title to the oil and gas; ("parcelle")

"unit area" means an area described in a unitization agreement or a unitization order, and where such an agreement or order applies to the unit operation of only certain strata or zones under an area described therein, means only those strata or zones under that area; ("espace d'exploitation unitaire")

"unit operation" means the operation of an area for the purposes of drilling for and producing oil and gas in accordance with an agreement approved under subsection 74(2) or with an order made under subsection 76(3) or subsection 79(3) or section 81; (" exploitation unitaire")

"unitization agreement" means an agreement made by the working interest owners in a pool or field to consolidate, merge or otherwise combine their interests in a unit operation; ("accord d'union")

"unitization order" means an order of the board made under subsection 76(3), or subsection 79(3), or section 81 ordering that a pool, field, or part thereof be operated as a unit; ("ordonnance d'union")

"waste" includes the underground and surface loss of oil and gas through wasteful operations with respect to potentially recoverable oil and gas; ("gaspillage")

"wasteful operations" means

(a) the location, spacing, drilling, equipping, completion, or operation of, or production from, a well in a manner that results or tends to result in reducing the quantity of oil and gas ultimately recoverable from a pool under sound principles of engineering and economy;

(b) the location, drilling, equipping, completion, or operation of, or production from, a well in a manner that causes or tends to cause excessive surface loss or destruction of oil or gas;

(c) the inefficient, excessive, or improper use or dissipation of reservoir energy however caused;

(d) the failure to use artificial, secondary, or supplementary recovery methods in a pool where it appears probable to the board that, on the basis of available information, such methods would result in increasing the quantity of oil or gas ultimately recoverable from the pool under sound principles of engineering and economy;

(e) the escape or the flaring of gas, if it is estimated by the board, after consideration of the risk involved, that, in the interest of the public, and under sound principles of engineering and economy, the gas could be gathered, processed if necessary, and it or the products therefrom marketed, stored for future marketing, or beneficially injected into an underground reservoir;

(f) the inefficient storing of oil or gas on the surface or underground:

(g) the production of oil or gas in excess of proper storage, transportation, or marketing facilities or of market demand therefor; or

(h) the use of gas for purposes other than gas lift, repressuring, recycling, pressure maintenance, light or fuel, unless such other use is beneficial in the interest of the public and efficient; ("opération génératrice de gaspillage")

"working interest owner" means a person who has the right, in whole or in part, to search for and produce oil and gas from any lands and to appropriate the production therefrom either for himself or for others having an interest therein or for both, whether such right is derived from ownership in fee simple, from a lease, or from any other disposition. ("titulaire d'un intérêt économique direct")

Intention, purpose, and object of Part.

61(1)

The intent, purpose, and object of this Part and Part III is

(a) to effect the conservation of the oil and gas resources of the province;

(b) to prevent waste in the production of oil and gas;

(c) to regulate all operations for the production of oil or gas in such manner that the greatest economically practicable recovery thereof by prudent and proper operations and practices may be realized;

(d) to give to each owner the opportunity of obtaining his just and equitable share of the production of any pool;

(e) to afford to each owner a reasonable opportunity to recover or receive the oil and gas in which he has an interest or the equivalent thereof, without being required to drill unnecessary wells or to incur other unnecessary expense therefor; and

(f) to regulate all operations for the injection, storage and recovery of gas so stored, notwithstanding that the origin of the gas may be within or without the province.

Application of Part.

61(2)

This Part and Part III apply to every well situated in the province, and applies to the Crown; and Her Majesty is bound thereby and entitled to the benefit thereof.

OIL AND GAS CONSERVATION BOARD

Continuation of board.

62(1)

"The Oil and Natural Gas Conservation Board", consisting of not more than five members, of whom one shall be designated as chairman and another as deputy chairman, is continued.

Membership.

62(2)

The members of the board shall be appointed by order of the Lieutenant Governor in Council, and each member of the board, unless he resigns, shall hold office during the pleasure of the Lieutenant Governor in Council.

Vacancies.

62(3)

If a vacancy occurs in the membership of the board, the Lieutenant Governor in Council may fill the vacancy.

Acting members.

62(4)

In the case of illness or absence of any member of the board, the minister may appoint another person to act in his place and stead; and the person so appointed shall have and exercise all the powers of a member of the board.

Quorum.

62(5)

A majority of the board constitutes a quorum at any meeting.

Personal interest of member in matter before board.

62(6)

A member of the board who has any monetary interest, directly or indirectly, in any oil and gas underlying any part of the province or in any property, real or personal, used in the connection with production of oil or gas in the province, or in any business or undertaking carried on for the purpose of searching for, winning, or getting, or for the purpose of gathering, collecting, processing, handling, or distributing, any oil or gas in the province, shall not act or vote as a member of the board when any question affecting that interest, or in which he is interested by reason of that interest, is before the board.

Records of board.

62(7)

The board shall keep a record of its proceedings in which shall be entered

(a) a copy of each application to the board;

(b) a copy of each order made by the board;

(c) a report of each decision made by the board; and

(d) a report of each matter heard or considered by the board.

Powers of board.

62(8)

The board may perform, execute and carry out all the duties, powers, and functions imposed or conferred upon the board under this Act or under any other Act; and for that purpose the board, with the approval of the minister, may make such just and reasonable orders as it deems necessary; and it may do all and any acts and things that are necessary for, or incidental to, the performance, execution, or carrying out, of any such duty, power, or function.

Specific powers.

62(9)

Without restricting the generality of subsection (8) the board, with the approval of the minister, may make orders

(a) respecting the designation and delineation of areas within the province as fields and pools;

(b) respecting the designation of the area that shall be allocated to a well in connection with fixing allowable production;

(c) requiring the extraction of natural gasoline, other hydrocarbons, or other substances, from any gas produced where economically feasible;

(d) requiring the repressuring, recycling, or pressure maintenance, of any pool or portion thereof where it is economical so to do, and for that purpose where necessary requiring the introduction or injection into any pool or portion thereof of gas, air, water, or other substance;

(e) requiring the storage in an underground formation, in accordance with such terms and conditions as the board may prescribe, of any gas produced that is in excess of the reasonable market demand, where it is economical so to do;

(f) requiring the disposal into an underground formation or otherwise, in accordance with such terms and conditions as the board may prescribe, of any water produced:

(g) providing for the control and regulation of the production of oil and gas by restriction, proration, or prohibition, for the purpose of giving each producer of oil or gas the opportunity of producing or receiving his just and equitable share of oil or gas in the pool.

Order to shut down well.

62(10)

Subject to subsection (11), where the board is satisfied that any well is being operated in contravention of any provision of this Act or of any order of the board made under this Act, the board, with the approval of the minister, may order that, on and after a date fixed in the order, no production from the well shall be permitted or take place, and that the well shall be shut down and remain shut down until the board otherwise directs; and the owner of the well and every person responsible for, or concerned in, the operation or management of the well shall comply with the order.

Inquiry before making of order.

62(11)

An order shall not be made under subsection (10) unless the board has held an inquiry respecting the alleged contravention and has given reasonable notice thereof to such persons as the board deems should receive notice.

Order without notice.

62(12)

The board may, with the approval of the minister and without the notice required under subsection (11), order that, on or after the making of the order, no production from the well specified in the order shall be permitted to take place or that such other steps as may be specified shall be taken in respect of the well for the purpose

(a) of preventing damage to an oil or gas producing formation or any other natural resources or to any property; or

(b) of removing any hazard to life or health.

Expiry of order.

62(13)

An order made under subsection (12) expires 14 days after the date upon which it is made unless prior to the expiry the board has held an inquiry as required under subsection (11) and made an order under subsection (10).

Inquiries and investigation.

62(14)

The board may make inquiries and investigation into any matter or thing in relation to the drilling for, and the occurrence, production, transportation, distribution, disposition, and processing, of oil or gas or products derived therefrom in the province, at such places, and at such times, and in such manner, as may seem advisable to the board.

Statistical returns.

62(15)

Every person engaged in the business of drilling for, producing, transporting, distributing, selling, disposing of, or processing, oil or gas, or products derived therefrom, shall make such returns and reports to the minister respecting the drilling for, production, transportation, distribution, sale, disposition of, or processing of, oil or gas, or products derived therefrom, as may be required under the regulations.

Jurisdiction.

62(16)

Subject as herein provided, the board may examine, inquire into, hear, and determine, matters and questions arising under the regulations made under this Part or with respect to which jurisdiction is conferred on it under this Part or Part III.

Indemnity.

62(17)

No action or proceeding shall be brought against the board, or any member of the board, or any officer or employee of the board, in respect of any Act or thing in good faith done pursuant to, or purporting to be done pursuant to, this Act.

Notices required.

62(18)

Where a matter or question before the board is contentious, the board shall require notice of any application to the board, or of any hearing by the board, to be given to such other interested parties as the board deems requisite.

Substitutional service.

62(19)

Where in any application or matter before the board, whether under this Act or under any other Act of the Legislature, it is made to appear, to the satisfaction of the board, that personal service of any notice or document required to be served on any person under this Act or under any other Act of the Legislature, or under any regulations made thereunder, cannot conveniently be made, the board may order and allow service to be made

(a) by publication in The Manitoba Gazette;

(b) by publication in a newspaper:

(c) by registered mail; or

(d) by service upon the Public Trustee;

and such service shall be conclusively deemed to be equivalent to personal service; and, where service is made by registered mail, the service shall be conclusively deemed to have been effected on the day when the notice or document is mailed to that person.

Application to vary order where notice not given.

62(20)

Any person interested in. or affected by, an order of the board to whom notice of application for the order or of a hearing by the board was not given except by way of publication in a newspaper or The Manitoba Gazette, may at any time within 10 days after becoming aware of the order, apply to the board to vary, amend, or rescind he order; and the board, in its discretion and after notice to other parties interested, and after hearing oral or written representations that may be made by the applicant and any person interested in or affected by the order, may either amend, alter, or rescind, the order or dismiss the application, as to the board may seem just.

Application of sections 35, 36, 38 and 39.

62(21)

Except as otherwise specifically provided herein, sections 35, 36, 38, and 39 apply, with such modifications as the circumstances require, to the decisions, powers, and rights of, and to hearings by or before, the board.

Access to wells and records, etc.

62(22)

Every member of the board, and every person authorized in writing for the purpose by the board, shall, at any reasonable time,

(a) have access to any well, and to the equipment, plant, and records of the producer;

(b) be entitled to enter upon the premises appurtenant to any well or to any place at which oil or gas is refined, handled, processed, or treated, or any place used or occupied in connection with a well or with a place at which oil or gas is refined, handled, processed, or treated;

(c) be entitled to inspect all books, documents, records, plant, and equipment, pertaining to any well or place to which clause (b) refers and found upon the premises appurtenant thereto;

(d) be entitled to take from any well or place to which clause (b) refers, or the premises appurtenant thereto, any samples of oil or gas or any other thing;

(e) be entitled to carry out on the premises appurtenant to any well or place to which clause (b) refers any test or examination desired by the board.

Production of authority.

62(23)

Every person authorized by the board to exercise any of the powers conferred upon him pursuant to subsection (22) shall produce on demand his authority from the board at any time during which he is exercising any of such powers.

Duty of operators, etc.

62(24)

Any person who is the operator of, or who is in charge of, any well, place, equipment, plant, or records mentioned in subsection (22) shall permit or assist any member of the board, or any person authorized by the board, in the exercise of the powers conferred by subsection (22).

Offence.

62(25)

Every person who prevents, hinders, or obstructs, or who fails to permit or assist, any member of the board or any person authorized by the board under subsection (22) in the exercise of the powers conferred by subsection (22) is guilty of an offence.

Board's decision final.

62(26)

The decision of the board on any matter within its jurisdiction is final and binding unless varied by the board or appealed from as provided in this Part.

REGULATIONS

Powers of Lieutenant Governor in Council.

63(1)

For the purpose of carrying out the provisions of this Part and Part III according to their intent, the Lieutenant Governor in Council may make such regulations and orders as are ancillary thereto, and are not inconsistent therewith; and every such regulation or order made under, and in accordance with the authority granted by, this section has the force of law; and, without restricting the generality of the foregoing, the Lieutenant Governor in Council may make regulations and orders

(a) respecting the office and business practices of the board;

(b) prescribing the practice and procedure before the board;

(c) respecting the officers of the board;

(d) respecting the sittings of the board, and the times and places at which those sittings shall be held;

(e) respecting voluntary pooling and voluntary unitization of mineral rights in individual fields for purposes of conservation and elimination of waste;

(f) prescribing spacing units and the size and shape of spacing units;

(g) forbidding or permitting the commencement of the drilling of a well at any point within a prescribed distance of any boundary, road, road allowance, road diversion, right-of-way, buildings of any specified type, or any specified works either public or private;

(h) prohibiting the completion of a well drilled into a pool within a prescribed distance of the boundary of its spacing unit;

(i) requiring notice of intention and approval of the minister before

(i) the beginning of drilling operations: or

(ii) the suspension of drilling operations; or

(iii) the abandonment of a well: or

(iv) the reconditioning of a well; or

(v) the resumption of drilling operations after a previous completion or suspension thereof or after the abandonment of the well:

(j) prescribing the conditions under which drilling operations may be carried out in water covered areas, and any special measures to be taken in such operations;

(k) prescribing the measures to be adopted to confine any gas, oil, or water, encountered during drilling operations to the original strata and to protect the contents of the strata from infiltration, inundation, and migration;

(l) prescribing the methods, tools, equipment, and materials to be used in drilling, completing, recompleting, operating, and abandoning oil, gas, injection, or salt water disposal wells, in order that operations are conducted in accordance with good oil field practice and in such a manner as to prevent waste and any undue hazard to life, property, wild life, or natural resources:

(m) prescribing and regulating the construction, alteration, or use of any works, fittings, machinery, plant, and appliances, in and for the development, production, transmission, supply, distribution, measurement, consumption, or handling, of any gas or oil;

(n) providing for the registration and licensing of all persons having charge of any drilling operations, unless registered or certified by a responsible person as competent, and prohibiting the carrying on of any drilling operations unless they are conducted under the continuous personal supervision of a person registered as having charge thereof;

(o) prohibiting the drilling through oil, gas, water, coal, or other minerals without taking adequate measures to confine the oil, gas, or water to its own stratum and to protect any coal seam or other valuable mineral deposit or any workings therein from injury, and prescribing the nature and extent of such measures either generally or in any specified case;

(p) requiring and prescribing the taking, and method of taking, of samples of any kind and their submission to the board;

(q) requiring and prescribing any tests, surveys, and logs, and the submission of the information so obtained to the board;

(r) prescribing returns and reports required to be made to the minister by persons engaged in the business of drilling for, producing, transporting, distributing, selling, disposing of, or processing, oil or gas, or products derived therefrom, and the form and contents thereof;

(s) as to the records to be kept, the manner and form thereof, and the persons by whom, and the place at which, they shall be kept, and providing for their submission to the board;

(t) as to the reports to be made, the persons to make them, the authority or person to whom they are to be made, the time of making them, and the form, nature, and extent thereof;

(u) as to the time and method of shooting wells or chemical treatment of wells, and as to the notices to be given of intention to shoot or chemically treat any well;

(v) as to the inspection of oil or gas wells, both during and after drilling;

(w) providing for the capping of, or otherwise closing in of, wells for the purpose of preventing waste;

(x) respecting the naming and registration of wells;

(y) providing for the approval by the board of any scheme initiated by owners for repressuring, recycling, or pressure maintenance, in any field or pool, or the processing, storage, or recovery, or disposal of gas, or the disposal of water, in any field or pool before the scheme is proceeded with;

(z) generally for the conservation of gas and oil and for the prevention of waste or wasteful operations, and respecting the doing of any other matter reasonably incidental to the development and drilling of any oil or gas wells, the operation and management thereof and any production therefrom, for the purpose of preventing waste in accordance with good operating practice, and generally for the better carrying out of the provisions of this Part and Part III.

Orders to enforce regulations.

63(2)

The board may make all necessary orders to enforce any regulations made under subsection (1), or that may be necessary to carry out the intent, purpose, and object of any such regulation.

APPEALS

Appeals from board.

64(1)

A person affected by any decision or order of the board, whether ministerial or judicial, may appeal the decision or order to the Court of Queen's Bench which shall decide the matter and make such order in the matter as it deems just.

Evidence on appeal.

64(2)

Upon an appeal from a decision or order of the board, the court may require or admit new or additional evidence or may retry the matter.

Procedure on appeal.

64(3)

The appeal shall be by originating notice of motion filed in the office of the court and served upon all parties interested in the order or decision

(a) where the appellant has been notified of the decision or order, within 15 days of the date on which he was notified; and

(b) where the order or decision is published in an issue of The Manitoba Gazette, within 15 days of the date of publication of that issue; and

(c) where the appellant has not been notified of the decision or order, and the decision or order has not been published in The Manitoba Gazette, within 30 days of the date on which the decision or order was entered in the records of the board;

or within such further time as the court may allow.

Extension of time for service.

64(4)

Where an originating notice of motion in an appeal of a decision or order of the board has been filed in the office of the court within the time specified in this section, if, after reasonable effort any of the parties entitled to notice cannot be served within the time specified in this section, the court may extend the time for service and make such order for substitutional service or other service as may be deemed just.

Where notice not given.

64(5)

Where a person whose interests are affected by a decision or order of the board has not been notified thereof as provided in section 32, if the court is satisfied that he has suffered substantial injustice and has not been guilty of undue delay, it may allow the person to appeal the decision or order after the expiry of the period within which the appeal is required to be taken under subsection (3).

Address for service to be on notice of motion.

64(6)

The originating notice of motion shall have endorsed upon it an address for service at some place in Manitoba: and any notice or document relating to the appeal shall be sufficiently served upon the appellant if left with an adult person at that place, or, if no such person can there be found, if mailed by registered mail to the appellant at that address.

Mode of service when no address given.

64(7)

Where no address for service is endorsed on the originating notice of motion as provided in subsection (6), any such notice or document may be served upon the appellant by posting it up in the office of the court in the judicial centre which is closest to the land affected.

Further appeal.

64(8)

An appeal lies from the decision or order of the court as in the case of any other action or proceeding in the court.

COMMON PURCHASERS

Designation of common purchasers and requirements respecting them.

65(1)

The Lieutenant Governor in Council may

(a) subject to subsection (2), declare any person who purchases, produces, or otherwise acquires oil or gas produced from any pool in the province designated by the board to be a common purchaser of oil or gas from that pool;

(b) make regulations to ensure that, upon order of the board,

(i) every common purchaser purchases oil or gas, as the case may be, offered for sale to him without discrimination in favour of one producer or owner as against another in the same pool;

(ii) every common purchaser purchases without discrimination between the pools in the province with respect to which he is designated a common purchaser; and

(iii) no common purchaser discriminates in favour of his own production, or production in which he is directly or indirectly interested, either in whole or in part;

(c) relieve any common purchaser, after due notice and hearing, from the duty of purchasing oil or gas of inferior or different quality or grade.

Saving clause.

65(2)

Any producer who sells or delivers all his production to a purchaser or user at the wellhead or at a place within the province at which a price is posted for the pool is not liable to be named a common purchaser under this section.

TAKING OVER WELLS

Seizure and control of wells.

66(1)

The board, for the enforcement of any order made by it for the purpose of preventing damage to an oil or gas producing formation, or to remove an undue hazard to life, property, or natural resources, may

(a) take such steps and employ such persons as it considers necessary;

(b) forcibly or otherwise enter upon, seize, and take possession of, any well together with the whole or part of the movable and immovable property in, on, or about the well or used in connection therewith or appertaining thereto, together with the books and offices of the owner thereof;

(c) either discontinue all production or take over the management and control thereof;

(d) plug the well at any depth; and

(e) take such steps as it considers necessary to prevent the flow or escape of oil, gas, or water, from any stratum that is entered by the well.

Duty of employees.

66(2)

Upon the board taking possession of any well, and so long as the possession continues, every officer and employee of the owner thereof shall obey the orders of the board or of such person as the board places in charge and control thereof.

Disposal of oil and gas and accounting therefor.

66(3)

Upon taking possession of any well, the board may take, deal with, and dispose of, all oil and gas produced at the well as if it were the property of the board, subject to the obligation to account for the net proceeds thereof to the persons who, in the opinion of the board, are entitled thereto.

Cost.

66(4)

The costs and expenses of and incidental to proceedings taken by the board under this section shall be in the discretion of the board, and the board may direct by whom, and to what extent, they shall be paid.

Payments by board from proceeds of production.

66(5)

Without restricting the generality of subsections (1) to (4) the board may pay, from the proceeds of the oil and gas produced at the well,

(a) all costs and expenses of and incidental to the proceedings taken by the board under this section, including the costs and expenses of the management, operation, and control of the well by the board:

(b) all costs and expenses of carrying out investigations and conservation measures that the board deems necessary in connection with the well:

(c) all claims against the owner of the well arising, directly or indirectly, from the production or operation of the well, whether recoverable as debts, damages, or otherwise howsoever, and that the owner authorizes the board to pay;

(d) such other claims against the owner of the well arising, directly or indirectly, from the production or operation of the well, whether recoverable as debts, damages, or otherwise, that the board, in its discretion, may order to be paid to persons who, in the opinion of the board, are entitled thereto.

Payment of proceeds.

66(6)

The net proceeds of the oil and gas produced at the well remaining after the payment of the costs, expenses, and claims paid under subsection (5) may be paid by the board to the owner of the well or to such other persons as, in the opinion of the board, are entitled thereto.

Balance of costs.

66(7)

Where the proceeds of the oil and gas produced at the well are not sufficient to pay all costs and expenses of and incidental to the proceedings, investigations, and measures, taken by the board, the board may direct that the balance of the costs and expenses or any part thereof shall be paid by the owner of the well.

PART III

POOLING AND UNITIZATION

Pooling agreement.

67

Where two or more, or parts of two or more, tracts are within a spacing unit, or where there are separately owned interests in all or parts of a spacing unit, the owners of such tracts or interests may agree to pool their interests for the purpose of the development and operation of the spacing unit or for the purpose of the spacing unit being included in the unit area under an order made under subsection 76(3) or subsection 79(3) or section 81 or under a unitization agreement.

Application for pooling order.

68(1)

Where the owners of tracts or interests in a spacing unit within which there are two or more, or parts of two or more, tracts, or within which, or parts of which, there are separately owned interests, cannot agree to pool their interests under section 67, a working interest owner of a tract in the spacing unit may apply to the board to order the owners of the tracts or interests in the spacing unit to pool their tracts or interests for the purpose of the development and operation of the spacing unit or for the purpose of the spacing unit being included in the unit area under an order made under subsection 76(3) or subsection 79(3) or section 81 or under a unitization agreement.

Applications.

68(2)

A person applying for an order under subsection (1) shall state in his application

(a) the legal description of each tract or part thereof within the spacing unit and the owners thereof;

(b) that the owners cannot come to a reasonable agreement under section 67;

(c) what efforts have been made to obtain agreement of the owners under section 67 together with particulars thereof;

(d) if there is a well on the spacing unit, the name of the well and the strata from which it produces oil or gas; and

(e) if there is not a well on the spacing unit, that if an order is made by the board and if the . spacing unit is not included in a unit area, he will drill a well to a specified depth or strata and in the event that no production of oil or gas is obtained, he will pay all the costs incurred in the drilling and abandonment of the well;

and shall provide such further information as the board may require.

Hearing and notice.

68(3)

The board shall fix a time and place at which the application shall be heard and shall require notice of the hearing to be given to such persons as the board deems should receive notice thereof.

Order.

68(4)

After hearing the application the board, with the approval of the minister, may order that the owners of the tracts or interests of both in the spacing unit pool their interests for the purpose of the development and operation of the spacing unit, or for the purpose of the spacing unit being included in a unit area under an order made under subsection 76(3) or subsection 79(3) or section 81.

Provisions of order.

68(5)

The board shall provide in an order under subsection (4)

(a) for the drilling and operation of a well on the spacing unit, or, where a well that is capable of, or that can be made capable of, producing oil or gas has been drilled on the spacing unit, for the future operation of that well, or for the inclusion of the spacing unit in a unit area under an order made under subsection 76(3) or subsection 79(3) or section 81 or under a unitization agreement;

(b) for the appointment of an operator of the spacing unit who shall be responsible for the drilling, operation, or abandonment of any well drilled on the spacing unit;

(c) for the allocation to each owner of a tract or interest in the spacing unit his just and equitable share of the oil or gas produced therefrom or the proceeds from the sale thereof, or allocated to the spacing unit under an order made under subsection 76(3) or subsection 79(3) or section 81 or under a unitization agreement, which allocation shall be made on an acreage basis unless the board is satisfied that such basis is inequitable;

(d) for the apportionment among the working interest owners of the tracts in the spacing unit of the cost of drilling a well thereon, whether drilled before or after the making of the order, if a well is drilled, and of the cost of operation and abandonment of any such well, or of the portion of the capital or operational cost of a unit area in which the spacing unit is included, allocated to the spacing unit, and for the payment of the amounts so apportioned; and

(e) for the sale by the operator of the share of oil or gas allocated under the provisions of the order to the working interest owner of a tract who does not take or dispose of such oil or gas and for deductions to be made by the operator out of the proceeds of such sale for the cost thereof;

and the board may provide in the order

(f) that the operator may agree to an order of the board made under subsection 76(3) or enter a unitization agreement on behalf of the working interest owners of the tracts in the spacing unit;

(g) that the operator or any royalty owner specified in the order may agree to an order of the board made under subsection 76(3) or enter a unitization agreement on behalf of the royalty owners of the tracts in the spacing unit;

(h) in respect of each lease of a tract in the spacing unit that does not contain provision for the payment of shut-in or capped well royalties, for the annual payment by the lessee to the lessor of an amount that shall be conclusively deemed to be a royalty and that shall be payable until royalties on actual oil or gas produced on the spacing unit or allocated to the spacing unit under an order made under subsection 76(3) or subsection 79(3), or section 81 or under a unitization agreement become payable;

(i) that, in the event that oil or gas is produced from the spacing unit or allocated to the spacing unit under an order made under subsection 76(3) or subsection 79(3) or section 81 or under a unitization agreement, the share

(i) of the cost of drilling the well if one is drilled; or

(ii) of the portion of capital cost of a unit area allocated to the spacing unit under the order or agreement;

payable by a working interest owner of a tract in the spacing unit who refuses to agree to pool his interests for the development and operation of the spacing unit or for the inclusion thereof in a unit area shall be an amount exceeding the amount that would be payable by that working interest owner if the cost of drilling the well or the portion of the capital cost of a unit area in which the spacing unit is included allocated to the spacing unit were apportioned among the working interest owners on the same basis as the share of production is allocated to each tract but not exceeding one and one-half times that amount.

Owner's share of cost not recoverable from other owners.

68(6)

The share of the cost of the drilling, operation, and abandonment of a well or of the portion of the capital or operational cost of a unit area allocated to the spacing unit, apportioned to a working interest owner under an order made under subsection (4) is recoverable from, or from the share of production of, that working interest owner, but is not recoverable from, or from the share of production of, any other working interest owner of a tract in the spacing unit.

Effect of shut-in or capped well royalty.

68(7)

Where an order made under subsection (4) provides for the matters mentioned in clause (5)(h), the annual payment by the lessee to the lessor of the amount fixed under the order until royalties on production become payable shall continue the lease in full force and effect as if the amounts so paid were royalties on actual production.

Determination of shut-in or capped well royalties.

68(8)

In determining the amounts to be paid by the lessee to the lessor under a provision relating to the matters mentioned in clause (5)(h), the board shall consider the shut-in or capped well royalties payable under other leases relating to tracts in the spacing unit or, if there are no other such leases providing for the payment of shut-in or capped well royalties, to other leases relating to tracts in the same pool or field as the spacing unit.

Effect of pooling order.

69(1)

Where an order is made under subsection 68(4), the drilling for, or the production of, oil or gas from the spacing unit, or the obtaining of oil and gas allocated to the spacing unit under an order made under subsection 76(3) or subsection 79(3) or section 81 or under a unitization agreement, and all operations incidental thereto, carried on by the operator of the spacing unit or the operator of a unit area in which the spacing unit is included shall be conclusively deemed to be carried on or produced by each working interest owner with respect to his tract in fulfilment of all the express or implied obligations of that working interest owner under any lease or contract affecting the tract in so far as that lease or contract affects part of the spacing unit.

Deemed production.

69(2)

Where an order is made under subsection 68(4), the portion of oil and gas or the proceeds from the sale thereof allocated to each tract, and only that portion, shall be conclusively deemed to have been produced from that tract.

Pooling order on capped wells.

70(1)

Where a well capable of production has been drilled and is capped or shut-in, the board, upon application, may order the owners of the tracts within the spacing unit to pool their interests as a unit for future operations, and the provisions of section 68 apply, with such modifications as the circumstances require.

Effect of order.

70(2)

Where a well capable of production has been drilled and is capped or shut-in and the well is subject to an order made under subsection 68(4) or subsection (1), the well shall at all times be conclusively deemed to be located on each tract within the spacing unit irrespective of when the future operations are conducted.

Application to vary pooling order.

71(1)

Where the working interest owners of over half of the area of a spacing unit apply to the board to amend or cancel an order made under subsection 68(4), or subsection 70(1), relating to that spacing unit, the board shall hear the application; and where the working interest owners of less than half of the area of the spacing unit so apply, the board may in its absolute discretion hear the application.

Order an application to amend.

71(2)

Upon hearing an application made under subsection (1), the board, with the approval of the minister, may

(a) subject to subsection 68(5), amend the order in any respect including the rescinding of certain provisions; or

(b) cancel the order.

Actual cost of drilling well.

72

For the purpose of apportioning the cost of drilling a well under an order made under subsection 68(4) or subsection 70(1), that cost shall include the cost of drilling the well to, and completing it in, any strata specified in the order.

Dispute as to cost.

73

Where a dispute arises as to the costs to be apportioned under an order made under subsection 68(4) or subsection 70(1), the board may determine the costs.

UNITIZATION AGREEMENTS

Board to encourage unitization.

74(1)

The board shall encourage efforts initiated by working interest owners in a pool or field or part thereof to consolidate, merge, or otherwise combine their interests for the purpose of accomplishing the more efficient and more economical development and production of the oil and gas resources of that pool or field, or part thereof, irrespective of whether that purpose is accomplished by unit operation under a unitization agreement, co-operative development, or joint participation.

Approval of board for unitization agreement.

74(2)

The drilling, production and other field operations provided for in a unitization agreement for the unit operation of a pool or field, or part thereof, shall not be put into effect unless the agreement has been approved by the board.

Agreement of royalty owners.

74(3)

The board shall not approve a unitization agreement for the unit operation of a pool or field, or part thereof, unless the royalty owners of the tracts within the pool or field, or part thereof, agree to the unit operation thereof, either as parties to the unitization agreement or by separate agreement.

Performance by unit operator.

74(4)

If by a unitization agreement approved by the board the working interest owners agree that a designated person shall be their agent with respect to their functions, powers, duties, obligations, and responsibilities under this Act, the performance or non-performance thereof by the person so designated shall be deemed conclusively to be the performance or non-performance by the working interest owners otherwise responsible therefor under this Act.

Crown as party to unitization agreement.

75(1)

Where the Crown is a working interest owner or royalty owner of a tract of land, the Lieutenant Governor in Council may authorize the minister, on behalf of the Crown, to enter into a unitization agreement for the unit operation of the pool or field, or part thereof, within which the tract is situated.

Crown royalty agreement.

75(2)

Notwithstanding any other provision of this Act or of an agreement or other disposition made under this Act, the Lieutenant Governor in Council may authorize the minister, on behalf of the Crown, to enter into an agreement for the calculation of the royalty payable to the Crown on the oil and gas produced from a unit area that includes a tract that is subject to the payment of a royalty to the Crown.

UNITIZATION ORDERS

Hearing with respect to unitization.

76(1)

The board, upon its own motion, may, or, upon the application of a working interest owner of a tract that exceeds a spacing unit in area, and that is within the pool, field, or part thereof, shall hold a hearing to consider the advisability or necessity for the operation of a pool, field, or part thereof, as a unit.

Application to be accompanied by plan.

76(2)

A working interest owner applying to the board under subsection (1) shall apply in writing and shall submit to the board a proposed plan of unit operation of the proposed unit area containing the terms and conditions that the applicant desires to be included in the order, together with such number of copies of the plan and such other information as the board may require.

Unitization order.

76(3)

If the board is of the opinion that the operation of the pool, field, or part thereof, as a unit would prevent waste therein having regard

(a) to the production and recovery of oil and gas;

(b) to the gathering and processing of gas;

(c) to the disposal of salt water produced;

(d) to the rights of each owner to a reasonable opportunity of recovering or receiving the oil and gas in which he has an interest or the equivalent thereof without being required to drill unnecessary wells or to incur other unnecessary expenses therefor; and

(e) to any other circumstance pertaining to the drilling for or production of oil and gas;

the board may, with the approval of the Lieutenant Governor in Council, order that the pool, field, or part thereof, be operated as a unit.

Provisions of order.

76(4)

The board shall set out in an order made under subsection (3)

(a) the date on which it comes into force;

(b) a legal description of the unit area;

(c) a legal description of each tract included in the unit area;

(d) a description of the operations to be conducted in the unit area;

(e) the method of allocating to each tract in the unit area the just and equitable share of the owners thereof in the oil and gas produced from the unit area and not unavoidably lost;

(f) provisions for allowing credit to be given or made for the wells, tanks, pumps, machinery, materials, and other equipment contributed to the unit operation by working interest owners;

(g) provisions for allocating to each working interest owner of a tract in the unit area a share of the cost of the capital investment in the unit area at the effective date of the order, including the cost of wells, tanks, pumps, machinery, materials, and equipment contributed to the operation of the unit area;

(h) provisions for allocating to each working interest owner of a tract in the unit area a share of the cost of the unit operation, including the cost of wells, tanks, pumps, machinery, materials, and equipment, drilled or obtained after the effective date of the order;

(i) provisions for the establishment of a committee of operators and for fixing the number of votes allowed to each member thereof, the method of voting on matters before the committee, and the percentage of votes required to carry a motion;

(j) provisions for the appointment by the committee of operators, within a specified time, of a unit operator who shall be responsible, subject to the direction and supervision of the committee of operators, for the management of the unit area and the conduct of the unit operation;

(k) that, if a working interest owner fails to pay his share of the cost of capital investment or of the cost of unit operation, the unit operator

(i) may appropriate and sell the share of oil and gas produced from the unit area and allocated to that working interest owner excluding

(A) in the case of oil or gas rights owned by the Crown, any royalty payable to the Crown, and

(B) in the case of oil and gas rights subject to a lease from the freehold owner thereof, the royalty payable under the lease to the lessor or to his heirs, executors, administrators, assigns, or successors, to the extent necessary to recover the amount of such share of the costs; and

(ii) shall have a lien on the interest of that working interest owner in the equipment that belongs to the unit area to secure the payment of the amount of such share of the cost;

(l) provisions for the termination of the unit operation including the manner of such termination and the circumstances under which the unit operation shall terminate;

(m) such further provisions, terms, and conditions as are necessary to provide for the efficient operation of the unit area, securing the greatest economic recovery of oil and gas therefrom in accordance with sound engineering practice, the conservation of gas produced, disposal in a proper manner of salt water produced, and the protection of the interests in the unit area of the respective owners of oil and gas.

Appointment of unit operator by board.

76(5)

If the committee of operators fails to appoint a unit operator within the time specified in the order, the board shall appoint a unit operator.

Limitation on board in making unitization order.

77

The board shall not make an order under subsection 76(3) unless

(a) the working interest owners of over 75% of the area of the proposed unit area have agreed in writing to the proposed plan of unit operation, or, if one working interest owner is the working interest owner of 75% or more, but less than 100%, of the area of the proposed unit area, that working interest owner and at least one other working interest owner of a tract in the proposed unit area, have agreed in writing to the proposed plan of unit operation; and

(b) the royalty owners having 75% of the royalty interests of the head lessors in the oil and gas produced from the unit area have agreed in writing to the proposed plan of unit operation, or, if one royalty owner has 75% or more of the royalty interests of the head lessors in the oil and gas produced from the unit area but does not have all such royalty interests, that royalty owner and at least one other royalty owner having such royalty interests, have agreed in writing to the proposed plan of unit operation.

Provisions for limiting re-hearings.

78(1)

In an order made under subsection 76(3) the board may provide that no application for re-hearing of the matter or for amendments to the order in any respect or in specified respects shall be received before a specified date.

Application for re-hearing where no limitation.

78(2)

Where an order contains no provision as to limitation on a further application with respect to the order, any working interest owner may apply for, or the board may of its own motion hold, a re-hearing of the matters covered by the order, or a working interest owner may apply for, or the board of its own motion may hold a hearing to consider, amendments to the order.

Application for re-hearing where limitations set.

78(3)

Where an order contains provisions limiting further applications with respect to the order, a working interest owner may, subject to those provisions, apply for, or the board may, subject to those provisions, of its own motion hold, a re-hearing of the matters covered by the order, or a working interest owner may, subject to those provisions, apply for, or the board may, subject to those provisions, of its own motion, hold a hearing to consider, amendments to the order.

Re-hearing on application.

78(4)

Upon receiving an application from a working interest owner under subsection (2) or (3), the board shall hold a re-hearing of the matters covered in, or hold a hearing to consider amendments to, the order.

Amending order.

78(5)

After holding a re-hearing of the matters covered in an order, or a hearing to consider amendments to an order, the board may, subject to the approval of the Lieutenant Governor in Council, make an order amending the order in any way or revoking the order and substituting a further order therefor, or revoking the order without any substitution.

Application to add to unit area.

79(1)

Notwithstanding section 78, the unit operator of a unit area, or the working interest owner of a tract adjoining a unit area, may apply to the board at any time to add to the unit area tracts that adjoin the unit area and that, in the opinion of the board, are in the same pool or Held as the unit area.

Hearing.

79(2)

Upon receiving an application under subsection (1), or upon its own motion, the board may hold a hearing to consider adding further tracts to the unit area.

Order adding to unit area.

79(3)

Upon holding a hearing under subsection (2), the board may, with the approval of the Lieutenant Governor in Council, order that tracts that adjoin a unit area and that, in the opinion of the board, are within the same pool or Held, be added to the unit area.

Provisions of order.

79(4)

In an order made under subsection (3), the board may provide that the unit area previously established be deemed to be a single tract, and the portion of the oil and gas produced that is allocated to the previously established unit area be allocated to the owners of the tracts therein in accordance with the order establishing it.

Joining unit areas.

80

In an order made under subsection 76(3), or subsection 79(3), or section 81, the board may include in a new unit area any previously established unit area and subsection 79(4) applies thereto with such modifications as the circumstances require.

Order on motion of board.

81

Notwithstanding any other provision of this Act, when the board has of its own motion held a hearing under subsection 76(1), or a re-hearing under subsection 78(2) or (3), it may, with the approval of the Lieutenant Governor in Council, order that a pool, field, or part thereof be operated as a unit for carrying out of the intent, purpose, and object of this Part and subsection 76(4) applies to such an order, with such modifications as the circumstances require.

Operation in unit area.

82(1)

From the date on which an order for the unit operation of a unit area comes into effect until such time as the order is cancelled or revoked, no person, except the unit operator, shall carry on any operations within the unit area for the purpose of drilling for or producing oil or gas.

Unit operator to comply with order.

82(2)

A unit operator of a unit area shall exercise generally all the powers incidental to the proper conduct of the unit operation in accordance with the provisions of the order.

Unit operator may act in his own name.

82(3)

A unit operator of a unit area may contract, sue, and be sued in his own name with respect to his duties, functions, powers, actions, and conduct, in respect of the unit area.

Property acquired by unit operator.

82(4)

All property acquired by the unit operator of a unit area the cost of which is charged to the operational expenses of the unit area shall be held by him as trustee and agent for, and on behalf of, the working interest owners responsible for the payment of such expenses and shall be used by the unit operator only in the unit operation.

Effect of unitization orders and agreements.

83(1)

Orders providing for the unit operation of a unit area and unitization agreements shall be construed as operating arrangements and not as transferring title to the unit operator, or as entitling an owner of a tract in the unit area to an undivided interest in any other tract in the unit area.

Recovery of owner's share of cost.

83(2)

Unless a unitization order that applies to the unit area provides otherwise, the share of the cost of capital investment in or of the cost of unit operation of, a unit area allocated to a working interest owner under a unitization order, is recoverable only from, or from the share of production of, that working interest owner.

Operator of spacing unit may agree to unitization.

84(1)

Where an order of the board made under subsection 67(4) provides that the operator of a spacing unit may agree to an order of the board made under subsection 76(3), or enter a unitization agreement, on behalf of the working interest owners of the tract in the spacing unit, that operator shall be, for all purposes relating to agreeing to the inclusion of the spacing unit in a unit area and the allocation of costs of the operation of the unit area, conclusively deemed to be the working interest owner of that spacing unit as though that spacing unit were a single separately owned tract.

Operator etc. deemed sole royalty owner.

84(2)

Where an order of the board made under subsection 67(4) provides that the operator of a spacing unit, or a royalty owner of a tract in the spacing unit, may agree to an order of the board made under subsection 76(3), or enter into a unitization agreement, on behalf of the royalty owners of tracts in the spacing unit, that operator or royalty owner, as the case may be, shall be, for all purposes relating to agreeing to the inclusion of the spacing unit in a unit area, conclusively deemed to be the only royalty owner of that spacing unit.

Pooled spacing unit in unit area.

85

Where a spacing unit that is covered by an agreement made under section 67 or an order of the board made under subsection 68(4) is included in a unit area, the unitization agreement or order establishing the unit area shall provide that the spacing unit be conclusively deemed to be a single tract, and the portion of oil and gas produced that is allocated to that spacing unit be allocated to the owners of the tracts within the spacing unit in accordance with the agreement made under section 67 or the order of the board made under subsection 68(4).

Effect of unitization orders.

86(1)

Where an order is made under subsection 76(3), or subsection 79(3), or section 81, the drilling for, or the production of, oil or gas from the unit area, and all operations incidental thereto, carried on by the unit operator shall be conclusively deemed to be carried on or produced by each working interest owner of a tract in the unit area with respect to his tract in fulfilment of all the express or implied obligations of that working interest owner under any lease or contract respecting oil and gas and affecting the tract in so far as that lease or contract affects part of the unit area.

Deemed production.

86(2)

Where an order is made under subsection 76(3), or subsection 79(3), or section 81, the portion of oil and gas allocated to each tract in the unit area, and only that portion, shall be conclusively deemed to have been produced from that tract.

GENERAL

Missing owner's share.

87

Where the owner to whom a share of the oil or gas produced from a unit area or spacing unit has been allocated or apportioned is missing or untraceable, the board may order that the unit operator or the operator of the spacing unit shall

(a) sell the share to which the owner is entitled;

(b) pay the share of the costs and expenses allocated or apportioned to the owner out of the proceeds; and

(c) pay the balance of the proceeds to a trust company to be held for the owner.

Disputed share.

88

Where a dispute arises as to the person entitled to receive the share of oil or gas produced from a unit area or spacing unit allocated or apportioned to the owner of a tract therein, the unit operator or the operator of the spacing unit shall

(a) sell the share in respect of which the dispute arises;

(b) pay the portion of the costs and expenses allocated or apportioned to the person entitled to the share out of the proceeds of the sale; and

(c) pay the balance of the proceeds to a trust company to be held by it until settlement has been reached by the parties interested therein or until a judge of Her Majesty's Court of Queen's Bench for Manitoba has made an order with respect thereto.

Effect of payment to trust co.

89

Where moneys are paid to and held by a trust company under section 87 or 88, the person entitled to the moneys is not solely by reason of such payment entitled to any interest or penalty with respect thereto and the payment to the trust company shall be deemed to be payment of the moneys to the person entitled thereto under any contract or lease relating thereto.

Filing agreements or orders.

90(1)

Where an agreement is approved or an order is made by the board under this Part, a copy of the agreement or order certified as being a true copy by the chairman or the deputy chairman of the board may be filed with the district registrar of each land titles district in which land affected by the agreement or order is situated and, if the land contains oil or gas that is the property of the Crown, with the chief mining recorder.

Duty of registrar.

90(2)

Upon a certified copy of an agreement or order being filed under subsection (1) and upon the proper fees being paid, the district registrar, or chief mining recorder, shall make such entries in his records and do such other things as are necessary to give effect to the filing of the agreement or order.

Effect of filing.

90(3)

Where an agreement approved by, or an order made by, the board under this Part, is filed under subsection (1)

(a) in so far as it affects oil and gas that are the property of the Crown, with the chief mining recorder; and

(b) in so far as it affects other oil and gas, with a district registrar;

any interest in the oil and gas in land affected thereby is subject to, and each owner of a land affected thereby is bound by, the approved agreement or order as long as it is in effect.

Filing cancellation order.

90(4)

When an approval of an agreement or an order of the board under this Part is rescinded, the board shall send copies of the rescinding order to the chief mining recorder and the district registrar of each land titles district, within which the land affected there is situated; and if the approved agreement or order under this Part has been filed under subsection (1), the chief mining recorder or district registrar shall file the rescinding order and do such other things as are necessary to give effect to the filing thereof.

Filing amending orders.

90(5)

Where an agreement or order is filed under subsection (1) and the agreement or order is amended or the area of the unit area is altered, the operator or the unit operator named in, or appointed under the agreement or order shall file in the same manner as in the case of an agreement or order,

(a) in the case of an amendment of the agreement or order, a copy of the amendment certified by the chairman or the deputy chairman of the board; or

(b) in the case of an alteration in the area of the unit area, a certificate of the chairman or the deputy chairman of the board describing the unit area as altered;

and subsections (2) and (3) apply thereto, with such modifications as the circumstances require.

Agreement for injection, etc.

91

The Lieutenant Governor in Council may authorize the minister to enter into an agreement for the injection, storage, recycling, or reproduction, in or from an underground formation of any mineral substance or water.

Offence and penalty.

92

Every person who contravenes or neglects, fails, or omits to observe or comply with, any provision of Part II or Part III or any regulations made under Part II or Part III or of any order of the board made under Part II or Part III and within its jurisdiction and powers, is guilty of an offence and liable, on summary conviction, to a fine of not more than $1,000. in respect of each such offence; and, in the case of a continuing offence to a fine of not more than $1,000. for the first day upon which the offence occurs, and of not more than $500. for each subsequent day on which the offence continues.

Injunction against committing offence.

93(1)

Where by material filed or evidence adduced a judge of Her Majesty's Court of Queen's Bench is satisfied that an offence against this Act or the regulations or an order of the board has been, is being, or is about to be, committed, the judge, upon application of the Attorney-General, may enjoin any owner, operator, or persons implicated with any of them in the matters in question, or all of them, or any of them, against committing or continuing to commit the offence; and the injunction suspends any permit or licence issued under this Act to that owner, operator, or person.

Method of bringing motion for injunction.

93(2)

The Attorney-General may make an application under subsection (1)

(a) by way of an ex parte motion for an interim injunction that, if granted, remains in full force for 10 days from the date thereof, unless that period is extended or an originating notice of motion mentioned in clause (b) is served and the motion sooner heard and determined; or

(b) by way of an originating notice of motion that, if an interim injunction has been granted, shall be served within five days and returnable within 10 days from the date of the interim injunction.

Injunction not substitution for prosecution.

93(3)

The remedy for which provision is made in this section is in addition to, and not in substitution for, the penalties for which provision is made in section 92.

Repeal.

94

Section 55 of this Act is repealed.

Commencement.

95

Section 94 of this Act comes into force on a day fixed by proclamation.