This consolidation is unofficial and is for reference only.  For the official version of the regulations, consult the original documents on file with the Registry of Regulations, or refer to the Royal Gazette Part II.
Regulations are amended frequently.  Please check the list of Regulations by Act to see if there are any recent amendments to these regulations filed with the Registry that are not yet included in this consolidation.
Although every effort has been made to ensure the accuracy of this electronic version, the Registry of Regulations assumes no responsibility for any discrepancies that may have resulted from reformatting.
This electronic version is copyright © 2011, Province of Nova Scotia, all rights reserved.  It is for your personal use and may not be copied for the purposes of resale in this or any other form.


Petroleum Resources Regulations

made under Section 27 of the

Petroleum Resources Act

R.S.N.S. 1989, c. 342

O.I.C. 85-1180 (October 29, 1985), N.S. Reg. 178/85

as amended up to O.I.C. 2013-105 (March 28, 2013, effective April 1, 2013), N.S. Reg. 147/2013

 

Text does not include amendments made by N.S. Reg. 184/2014.

 

1     These regulations may be cited as the Petroleum Resources Regulations.


Definitions

2     (1)    In these regulations

 

                (a)    “Act” means the Petroleum Resources Act;

 

                (b)    “agreement holder” means, collectively, the interest holders in an exploration agreement;

 

                (c)    “delineation well” means a well that, in the opinion of the Minister, is located in such a manner that there is a reasonable expectation that it will intersect another portion of a petroleum accumulation penetrated by a prior well drilled in the geologic structure;

 

                (d)    “development well” means a well that, in the opinion of Minister, is located in relation to another well or wells for the purpose of production, or observation, or for the injection or disposal of fluid into or from an accumulation of petroleum;

 

                (e)    “emergency conditions” means circumstances which may constitute a hazard to life or property, or which may result in personal injury or damage to the environment;

 

                (f)    “exploration agreement” means an agreement entered into pursuant to Section 14 of the Act to explore for petroleum and includes an agreement entered into pursuant to Section 16 of the Act to explore for coal gas;

 

                (g)    “exploration well” means a well that is drilled to a depth greater than ninety meters for the purpose of petroleum exploration;

 

                (h)    “interest holder” means any person or partnership, as defined in the Partnerships and Business Names Registration Act, having an interest pursuant to any right;

 

                (i)     “lands” means Nova Scotia lands to which the Act applies;

 

                (j)     “lease” means a production lease granted pursuant to the Act and includes a coal gas production agreement;

 

                (k)    “lessee” means a holder of a lease whether or not production has commenced;

 

                (l)     “licensee” means a holder of an exploration license;

 

                (m)   “production facilities” means production equipment at a field site and includes separating, treating, processing and support facilities;

 

                (n)    “representative” means a person designated pursuant to Section 3;

 

                (o)    “right holder” means, collectively, the interest holders in a right.

Subsection 2(1) replaced: O.I.C. 93-330, N.S. Reg. 61/93.

 

       (2)    The definitions contained in the Act apply to these regulations except where the context otherwise requires.


Part I


General

3     (1)    Every right holder shall designate a representative acceptable to the Minister.

 

       (2)    A designated representative shall have sole responsibility on behalf of the right holder for

 

                (a)    corresponding with the Minister and the Department of Natural Resources;

 

                (b)    the payment of any monies payable on behalf of the right holder to the Province;

 

                (c)    the distribution of any monies refunded by the Province to the right holder;

 

                (d)    renegotiation of an exploration agreement, for surrender of lands, and any other obligation under an agreement on behalf of the agreement holder; and

 

                (e)    such other duties as may be specified in the right.

 

       (3)    In the event that a right holder fails to appoint a representative, the Minister may designate one of the interest holders as the representative.

 

       (4)    A right holder and any interest holder shall be jointly and severally liable for the acts or omissions of the appointed or designated representative with respect to any matter to which the authority of the representative extends.


Land division

4     (1)    Maps shall be prepared by and kept at the office of the Registrar.

 

       (2)    Such maps shall be the only official depiction of rights.

 

       (3)    The maps shall be drawn to the following specifications:

 

                (a)    east and west boundaries shall be true meridians of longitude;

 

                (b)    north and south boundaries shall be straight lines, parallel to the chord of one-half of the part of the parallel of latitude that represents the boundary of each map sheet;

 

                (c)    the angle of intersection of each chord on either side of the median meridian of longitude for each map sheet shall be ninety degrees.

 

       (4)    Each map shall depict an area bounded by thirty minutes of longitude and fifteen minutes of latitude.

 

5     Each map shall be called a “map sheet”.

 

6     (1)    The lands represented by each map sheet shall be considered as subdivided into four quarters, by median lines corresponding to the median longitude and latitude lines of the map sheet.

 

       (2)    Each of the four quarters thus produced shall be lettered as shown in the following Figure 1:


  

62°30'

North

62°00'

 

46°00'




West




45°45'


C


D

46°00'




East




45°45'


B


A

 

62°30'

   South

62°00'

 

Figure 1

Standard Map Sheet

Showing Reference Maps

 

       (3)    Each quarter shall be called a “reference map”.

 

7     (1)    The lands represented by each reference map shall be considered as subdivided into one hundred and eight tracts.

 

       (2)    Each tract shall be deemed to contain two hundred and fifty-nine hectares.

 

       (3)    The one hundred and eight tracts so determined shall be numbered as shown in the following Figure 2:


             

62°15'

 

 

 

North

 

 

 

 

62°00'

45°52'30"






West








45°45'00"

108

107

106

105

104

103

102

101

100

99

98

97

45°52'30"






East








45°45'00"

85

86

87

88

89

90

91

92

93

94

95

96

84

83

82

81

80

79

78

77

76

75

74

73

61

62

63

64

65

66

67

68

69

70

71

72

60

59

58

57

56

55

54

53

52

51

50

49

37

38

39

40

41

42

43

44

45

46

47

48

36

35

34

33

32

31

30

29

28

27

26

25

13

14

15

16

17

18

19

20

21

22

23

24

12

11

10

9

8

7

6

5

4

3

2

1

 

62°15'

 

 

 

South

 

 

 

 

62°00'

Figure 2

Reference Map Showing Tracts

 

8     (1)    Each reference map shall also be divided into six equal units.

       (2)    Each unit shall be called a “reservation” which shall consist of eighteen tracts.

       (3)    Each reservation shall be deemed to contain four thousand six hundred and sixty-two

hectares.

       (4)    Each reservation shall be designated as shown in the following Figure 3:


             

62°15'

 

 

 

North

 

 

 

 

62°00'

45°52'30"






West







45°45'00"

108

107

106

105

104

103

102

101

100

99

98

97

45°52'30"






East







45°45'00"

85

86

87 W 88

89

90

91

92

93 V 94

95

96

84

83

82

81

80

79

78

77

76

75

74

73

61

62

63

64

65

66

67

68

69

70

71

72

60

59

58 T 57

56

55 A 54

53

52 U 51

50

49

37

38

39

40

41

42

43

44

45

46

47

48

36

35

34

33

32

31

30

29

28

27

26

25

13

14

15 S 16

17

18

19

20

21 R 22

23

24

12

11

10

9

8

7

6

5

4

3

2

1

 

62°15'

 

 

 

South

 

 

 

 

62°00'

Figure 3

Reference Map Showing Reservations

 

9     (1)    Each tract shall be subdivided into sixteen equal units.

 

       (2)    Each unit shall be called a “section” and shall be lettered as shown in the following Figure 4:


 

North

 

 

45o45'50"






West






45o45'00"

N

O

P

Q

45o45'50"






East






45o45'00"

M

L

K

J

E

F

G

H

D

C

B

A

 

62o01'15"

South

62°00'00"

 

Figure 4

Tract Showing Sections

 

       (3)    Each section shall be deemed to contain sixteen point one eight seven five hectares.

 

10   All rights shall be defined and described in terms of the divisions of land prescribed herein.

 

11   (1)    All boundaries shall extend downward vertically without limit.

 

       (2)    All surface measurements shall be horizontal.


Exploration licenses

12   (1)    Any person may apply for an exploration license by submitting an application in Form A to the Minister.

 

       (2)    Every application shall include a statement setting out the extent and character of the exploration to be carried out, including

 

                (a)    the location of the proposed exploration;

                (b)    the type of exploration;

                (c)    the equipment to be used to carry out the exploration; and

                (d)    the dates during which it is anticipated that the exploration will be carried out.

 

       (3)    The applicant shall notify the Minister forthwith of any changes in the information included in the statement.

 

13   (1)    Every exploration license shall contain a description of the lands to which it applies.

 

       (2)    The exploration license may be in the form set out as Form B.

 

14   (1)    No licensee shall disrupt or interfere with any activities performed pursuant to any other right.

 

       (2)    Where the Minister is of the opinion that a licensee is in breach of the requirements of subsection (1), the Minister may, at any time, order the licensee to terminate or modify his exploration program in such manner or to such extent as the Minister may deem necessary.

 

       (3)    Every licensee shall report to the Minister the location of the exploration, the equipment used, and personnel to be employed in the exploration, at such intervals and upon such terms as specified in the license.

 

       (4)    Subject to subsection (5), every licensee shall deliver to the Minister, within sixty days of the end of the term of his exploration license or such greater period as the Minister may allow, copies of all data obtained pursuant to the program of exploration.

 

       (5)    Every licensee shall deliver to the Minister, within six months of the end of the term of his license or such greater period as the Minister may allow, copies of all seismic data and interpretations thereof obtained pursuant to the program of exploration.

 

       (6)    No licensee shall drill a well to a depth greater than ninety metres.

 

       (7)    Every licensee shall notify the Minister of the completion of the exploration program undertaken pursuant to his license.

 

15   Every licensee shall notify the Minister prior to the commencement of a seismic exploration to be undertaken pursuant to his exploration license.

 

16   The Minister may amend an exploration license at the request of the licensee.


Royalties

17   It shall be, and shall be deemed to be, a term of every lease that all petroleum produced under the authority of the lease is subject to such royalties payable to the Province in the nature and amount as may be prescribed from time to time.

 

18   (1)    Where a lessee consists of two or more interest holders

 

                (a)    each holder is liable for the royalty in respect of the petroleum production imputable to his share;

 

                (b)    the royalty shall be collected and remitted on behalf of the holders by the representative;

 

                (c)    the representative shall file such consolidated returns as the Minister directs in respect of each holder liable for royalty; and

 

                (d)    all the holders shall provide that representative with the information necessary to file the returns.

 

       (2)    Notwithstanding subsection (1), the Minister may audit an interest holder or may require him to file such reports as may be specified from time to time.

 

       (3)    The Minister may, in any particular case, make an order determining the fair market value of petroleum for the purposes of the calculation of a royalty.

 

       (4)    No royalty is payable for petroleum that

 

                (a)    is consumed for drilling, producing, extracting, testing or treating purposes within the lands under the production lease; or

 

                (b)    is injected into a formation for conservation purposes in accordance with good oilfield practice.

 

       (5)    Unless the Minister otherwise orders, no royalty is payable for petroleum that is consumed for the operation or maintenance of production facilities, or that is flared, vented or otherwise destroyed.

 

       (6)    The Governor in Council may suspend or reduce any royalty payable for such periods, by such amounts, and subject to such conditions as may be specified in any case where the Governor in Council is of the opinion that such suspension or reduction would enable production of petroleum to be commenced or continued for a longer period or would facilitate the implementation of conservation measures.

 

       (7)    The Minister may order that all or part of any royalty be paid in kind or in money in a form acceptable to the Minister.

 

       (8)    The amount of any royalty required to be paid in money shall be paid as follows:

 

                (a)    for coal gas extracted from the Donkin coal block, as defined in the Donkin Coal Block Development Opportunity Act (Canada), at the same time intervals prescribed in the Mineral Resources Act for payment of royalties on coal;

 

                (b)    for all other petroleum, on or before the twenty-fifth day of the month next following the month of production.

Subsection 18(8) replaced: O.I.C. 2008-143, N.S. Reg. 120/2008.

 

       (9)    The amount of any royalty required to be paid in kind shall be delivered in kind at the time and place specified by the Minister and in condition and quality acceptable to the Minister.

 

       (10)  Where a royalty has not been paid when due, the interest holder is liable for interest on the amount outstanding at an annual rate of eighteen percent.

 

       (11)  The Minister may require a lessee to furnish bonds in a form satisfactory to the Minister in such amounts as the Minister considers appropriate to ensure performance of obligations with respect to royalty.

 

       (12)  The provisions of Sections 46 and 47 shall apply mutatis mutandis to a bond given under subsection (11).

 

19   All fees, rentals, royalties, accrued interest and other amounts due and owing to the Crown under the Act and these regulations may be recovered by the Crown as a debt in any court of competent jurisdiction.


Goods and services

20   (1)    Every reference to goods in these regulations includes significant structures and construction, plant, equipment, and all other facilities required by a right holder in the exploration, development, production, transportation, processing, and marketing of petroleum.

 

       (2)    In acquiring goods and services for work relating to the exercise of his right, every right holder shall make all reasonable attempts to utilize

 

                (a)    services provided from within Nova Scotia; and

 

                (b)    goods manufactured in Nova Scotia or where not so manufactured, provided from within Nova Scotia

 

but only if such goods and services are competitive in terms of fair market price, quality and delivery.

 

21   In hiring employees and independent contractors, every right holder shall make all reasonable attempts to hire qualified persons normally resident in Nova Scotia.

 

22   Every right holder shall require and ensure that his contractors and main subcontractors similarly comply with the provisions and requirements specified in Sections 20 and 21.

 

23   Nothing in these regulations relieves the right holder, his contractors, and main subcontractors of responsibility for the selection of employees, independent contractors, goods, services and suppliers.


Information reporting

24   Every lessee and, upon commencement of drilling operations, every agreement holder shall create and maintain an establishment in Nova Scotia where the representative

 

                (a)    can be reached during normal business hours;

 

                (b)    shall keep at least one copy of all information and samples of all material obtained or recovered from the lands held under exploration agreement or production lease, including well cuttings, core material, fluid samples and production records, as required from time to time by the Minister;

 

                (c)    shall keep at least one copy of all reports and records directly related to the exercise of his right;

 

                (d)    shall ensure that during normal business hours there shall be at least one individual qualified to assist the Minister; and

 

                (e)    is in continuing contact with the activities under the right and with all participating persons responsible for the obligations contained in the right.

 

25   Any person having reason to believe that an emergency condition exists, or is likely to occur, shall inform the Minister forthwith.

 

26   Every right holder shall forthwith inform the Minister of any discovery of petroleum, coal, minerals or other valuable substance.

 

27   Every right holder shall submit to the Minister any information obtained as a result of the exercise of his right which is of importance to the understanding or safety of the environment, renewable resources, geology or history.

 

28   Volumes of petroleum shall be reported at surface conditions [of] 15o Centigrade and 1 atmosphere pressure.

 

29   Every right holder shall use due diligence and care to ensure that the information submitted to the Minister is not misleading, false or incomplete.


Inspection

30   Every right holder shall allow the Minister to inspect anything done in relation to the exercise of his right and shall assist the Minister in so doing.

 

31   The Minister may intervene directly in the exercise of the rights of a right holder and may take all necessary measures, including ordering a permanent or temporary halt to any activities, where in the opinion of the Minister the exercise of the right

 

                (a)    could cause serious injury or death to any person;

 

                (b)    is causing or may cause serious damage to the environment, natural resources or property;

 

                (c)    is not managed in accordance to good oilfield practice; or

 

                (d)    is in contravention of any enactment, the terms and conditions of his right, or any order or direction of the Minister.


Force majeure

32   (1)    Where, in the opinion of the Minister, there exists

 

                (a)    an environmental or social problem of a serious nature;

 

                (b)    dangerous or extreme weather conditions affecting the health or safety of people or the safety of equipment; or

 

                (c)    any other special circumstance

 

which necessitates the prohibition or restriction of work or activity on any lands, the Minister may extend the term of a right or the period provided for performing an obligation in relation to a right, or diminish, moderate or cancel any obligation or requirement in relation to a right.

 

       (2)    For the purpose of subsection (1), special circumstances shall not include any prohibition or restriction of work due to the right holders’ financial difficulties or lack of funds.


Recording and transfer

33   (1)    Every right and interest in a right shall be recorded in the office of the Registrar.

 

       (2)    Where an interest holder sells, transfers, assigns or otherwise disposes of a right or interest in a right, the interest holder shall give notice forthwith to the Minister in Form D of the sale, transfer, assignment or other disposition.

 

       (3)    Information submitted pursuant to subsection (2) shall be held in confidence by the Minister.

 

       (4)    The Minister may consent to a sale, transfer, assignment, or other disposition of a right or interest in a right.

 

       (5)    No sale, transfer, assignment, or other disposition of any right or interest in a right shall be of any effect unless

 

                (a)    duly consented to by the Minister;

 

                (b)    three copies of Form D, completed by the parties to the sale, transfer, assignment or other disposition, are submitted to the Registrar together with the required fee; and

 

                (c)    the Registrar has duly recorded a copy of the document specified in clause (b).

 

       (6)    The Registrar shall not record any sale, transfer, assignment, or disposition of a right or interest in a right covering land comprising less than one section.

 

       (7)    No right or interest in a right shall, as against any person claiming for valuable consideration and without notice under any subsequent sale, transfer, assignment or disposition affecting that right or interest, be valid or effective unless notice of the sale, transfer, assignment or disposition or approved summary thereof is recorded in the manner prescribed in this Section before the recording of such subsequent sale, transfer, assignment or disposition of the right or interest.

 

       (8)    The recorded documents or photographic copies thereof shall be open for inspection by the public on payment of the prescribed fee between the hours of ten o’clock in the forenoon and four o’clock in the afternoon every day excepting Saturday, Sunday and statutory holidays.


Surrender, termination and cancellation

34   (1)    A licensee may surrender his license or any portion thereof provided he has paid full compensation for all damage to persons, property or the environment resulting from, or that may result from, the exercise of the rights under his exploration license.

 

       (2)    An agreement holder or lessee may apply to the Minister to surrender his right or any portion of the lands thereunder provided he has paid all penalties, royalties, taxes and other levies and has paid full compensation for all damage to persons, property or the environment resulting from, or that may result from, the exercise of his right.

 

       (3)    The Minister may accept the surrender of a right where he is satisfied that the applicable conditions of subsections (1) and (2) have been met.

 

35   Where the Minister proposes to cancel a right, he shall give the right holder at least thirty days written notice stating in full the reason for the proposed cancellation and the right holder shall, within thirty days from the receipt of such notice, correct or commence to correct to the satisfaction of the Minister the cause of the proposed cancellation.

 

36   The Minister may, with the approval of the Governor in Council, cancel a right

 

                (a)    if in the opinion of the Minister the right holder repeatedly or seriously fails to comply with an obligation under the Act, the regulations, the Energy Resources Conservation Act, regulations made thereunder, or his right and has not complied with a notice given pursuant to Section 35; or

 

                (b)    if the right holder becomes insolvent, or is declared bankrupt or commits an act of bankruptcy.

 

37   Where a lease is cancelled, the Minister may require the lessee to transfer to the Province or its nominee at no cost and in good working order any such production and transportation facility which in the opinion of the Minister is used or useful for the production of petroleum under the lease.


Part II


Application

38   This Part does not apply to the exploration for, or the development and production of coal gas.


Exploration agreements

39   The Minister may give notice in the Royal Gazette and in such other manner as he considers appropriate that he will receive suggestions for specific lands to be included in future calls for exploration proposals.

 

40   (1)    The Minister may publish a call for exploration proposals for such lands as are specified in the call.

 

       (2)    The call shall be published in the Royal Gazette, and in such other publications as the Minister considers will best advertise the call, not less than sixty days prior to the last date for submission of proposals.

 

41   (1)    The call shall include

 

                (a)    a description of the lands to be explored;

 

                (b)    the manner of submitting the proposals;

 

                (c)    the last date for submission of proposals; and

 

                (d)    the criteria by which the Minister will evaluate the proposals.

 

42   An applicant for an exploration agreement shall submit to the Minister a proposal in Form C and a statement setting out

 

                (a)    information sufficient to enable the Minister to judge the technical capability of the applicant and the applicant’s experience in the exploration, production and transportation of petroleum, including the applicant’s past experience in Nova Scotia or in other areas that pose similar technical problems;

 

                (b)    information sufficient to enable the Minister to judge the financial capability of the applicant; and

 

                (c)    the address of the applicant.

 

43   The Minister may at any time require an applicant for an exploration agreement to submit such further technical or financial information as is necessary to enable the Minister to judge the proposal submitted by the applicant, but no applicant shall otherwise revise the contents of his proposal without leave of the Minister.

 

44   (1)    The Minister shall, within ninety days of the date by which the proposals were required to be submitted, select a proposal or reject all proposals on the basis of the criteria established in the call for proposals.

 

       (2)    Where the Minister has selected a proposal, he shall, subject to subsection (1) of Section 46, enter into an exploration agreement with the applicant who submitted that proposal upon such terms and conditions as the Minister may deem appropriate.

 

45   Where

 

                (a)    no proposal has been submitted;

 

                (b)    no proposal has been selected; or

 

                (c)    where the Minister considers that a call is not advisable,

 

the Minister may enter into an exploration agreement with any person upon such terms and conditions as the Minister may deem appropriate.

 

46   (1)    The Minister may require any person with whom he intends to enter into an exploration agreement to furnish bonds in a form satisfactory to the Minister in such amounts as the Minister may deem appropriate to ensure performance of obligations under the Act, these regulations and the exploration agreement.

 

       (2)    The bond shall be forfeited in whole if the agreement holder does not fulfil the obligations for which the bond is posted.

 

       (3)    The forfeiture of the bond shall not impair or otherwise affect the rights of the Province under the Act, these regulations and exploration agreement.

 

       (4)    An agreement holder may apply to the Minister for reduction of the amount of the performance bond and, upon being satisfied that the holder has, since being granted the exploration agreement, or since the date of a previous bond reduction, fulfilled a portion of his exploration program and that the portion has a certain value, the Minister may authorize the amount of bond to be reduced by such amount as the Minister considers appropriate.

 

47   The Minister may return the performance bond where

 

                (a)    in the opinion of the Minister a failure to fulfil the obligations under an exploration agreement is the result of technical difficulties beyond the agreement holder’s control despite adherence to good oilfield practices;

 

                (b)    further performance under an exploration agreement would not be reasonable in the Minister’s opinion; or

 

                (c)    the obligations for which the bond is posted have been performed to the satisfaction of the Minister.

 

48   Subject to the Act and regulations, an exploration agreement may be amended by the mutual consent of the Minister and the agreement holder.

 

49   An agreement holder shall deliver to the Minister annually within sixty days after the anniversary date of the exploration agreement

 

                (a)    a progress report including interpretations based on work conducted;

 

                (b)    two copies of all information and data obtained pursuant to the program of exploration; and

 

                (c)    a statement of expenditures, verified by statutory declaration, setting forth the items of expenditures and the specific purpose for which each item of expenditure was made.


Exploration agreement renewal

50   (1)    Subject to subsections (2) and (3), where an agreement holder has complied with all statutory and contractual provisions and conditions of his exploration agreement, the Minister shall, subject to those provisions and conditions of such exploration agreement, renew the agreement for a succeeding three year term or such shorter term as the holder may request.

 

       (2)    The Minister shall not renew an exploration agreement for more than two successive terms.

 

       (3)    In no instance shall the aggregate of the terms, including renewals thereof, of an exploration agreement exceed nine years.


Drilling renewal

51   Notwithstanding Section 50, an exploration agreement shall be renewed for such period as the Minister deems is required to complete and appraise a well which is drilling at the time of expiry of a term of the exploration agreement, and any such renewal shall be deemed to extend the term of the exploration agreement which, but for this Section, would have expired.


Development programs

52   (1)    An applicant for a lease shall submit a development program to the Minister which shall include

 

                (a)    the tracts of lands to which the development program applies;

 

                (b)    general descriptions of lands sufficient to identify any surface rights the applicant proposes to acquire in order to carry out commercial production;

 

                (c)    the name and address of the occupiers and owners, so far as they can be ascertained, of

 

                         (i)     lands referred to in clause (b),

 

                         (ii)    lands adjacent to those lands;

 

                (d)    the address of the applicant;

 

                (e)    where the applicant is a company

 

                         (i)     the names of the directors of the company, and

 

                         (ii)    the names of the senior managers of the company;

 

                (f)    an estimate of the proven, probable, and possible reserves of the lands;

 

                (g)    a description of the reservoir characteristics and other geological data regarding the lands;

 

                (h)    a description of the techniques and equipment by which it is proposed the petroleum will be produced and the predicted recovery factor;

 

                (i)     a projection of the production levels over the period of commercial production of the lands;

 

                (j)     a description of techniques and equipment by which petroleum will be marketed;

 

                (k)    an impact statement describing the possible environmental, economic and social effects of the proposed program including a description of the existing biological and renewable resource systems;

 

                (l)     a description of the technical and economic feasibility of alternate methods of development and production;

 

                (m)   a description of the applicant’s plan to minimize any environmental or other damage; and

 

                (n)    any other information the Minister may require.

 

       (2)    No person other than an agreement holder shall submit a development program pursuant to this Section.

 

53   The Minister shall, within thirty days of his receipt of a development program, give notice in the Royal Gazette and at least two newspapers of major circulation in the Province that a development program has been presented to him for his approval.

 

54   (1)    The Minister shall approve the development program unless the Minister is of the opinion that

 

                (a)    the technology of petroleum production that the applicant proposes to use is not safe;

 

                (b)    the development program does not comply with an enactment of the Province;

 

                (c)    the applicant’s costs of development and production are significantly higher than the costs normally incurred by lessees using good oil field practices in similar operating environments;

 

                (d)    the development program will not result in the optimum recovery of the resource;

 

                (e)    the development program is not adequately detailed to enable the Minister to either reject or accept the development program; or

 

                (f)    the development program is not in the best interests of the people of Nova Scotia.

 

       (2)    Subject to subsection (1), the Minister may approve the development program in principle subject to compliance with such conditions as he deems appropriate.

 

       (3)    The Minister may only reject a development program on the basis of the criteria set out in subsection (1) and such rejection shall not affect the right of the applicant to submit another development program.

 

55   Where the Minister makes no decision to approve, or to approve in principle, or to reject a development program within one hundred and eighty days of receipt of the proposal, or last revision thereof, the proposal shall be deemed to be approved.

 

56   (1)    Where the Minister rejects a development program, he shall, within thirty days of the rejection, provide the applicant with written reasons for the rejection.

 

       (2)    With leave of the Minister, the applicant may submit a revised development program for reconsideration on the basis of the criteria set out in subsection (1) of Section 54.

 

57   (1)    Notwithstanding Section 50, where a development program is under consideration by the Minister and the term of the exploration agreement in respect of the lands to which the development program applies is about to expire, the term shall be renewed for the period during which the development program is under consideration by the Minister and, if the development program is approved or approved in principle, until a lease is issued to the applicant.

 

       (2)    Notwithstanding Section 50, where

 

                (a)    the Minister has given leave pursuant to subsection (2) of Section 56; and

 

                (b)    the term of the exploration agreement is about to expire,

 

the term shall be renewed for a maximum of one hundred and eighty days or until a revised development program is presented by the applicant for approval, whichever occurs first.


Lease

58   The Minister shall not grant a lease to any person other than an applicant under subsection (1) of Section 15 of the Act.

 

59   The lessee shall diligently perform his approved development program.

 

60   The Minister may, upon application by a lessee, approve changes in the development program.

 

61   The lessee shall, upon request by the Minister, surrender the lease, whether production has commenced or not if, in the opinion of the Minister, he has failed to diligently perform the approved development program.

 

62   Any part of lands held under an exploration agreement and not leased shall continue under the exploration agreement according to the terms of the exploration agreement.

 

63   (1)    All petroleum produced under the authority of a lease is subject to, and each lessee is liable for and shall pay to the Province, a royalty of ten percent of the petroleum that is produced in each month.

 

       (2)    Royalty shall be based on the fair market value of petroleum at the wellhead.

 

       (3)    In determining the royalty to be paid on any petroleum other than oil, there shall be deducted an allowance for the cost of processing or separation as determined in any particular case by the Minister.


Regulation of production and marketing

64   Notwithstanding Section 63, no royalty shall be calculated or paid under these regulations with respect to any oil or gas that is produced from the first lease that is granted with respect to lands subject to an exploration agreement, for a period of two years from the date of commencement of the lease.

 

65   During the term of the lease or any renewal thereof, the lessee shall submit to the Minister, upon request, forecasts of production from the leased lands in the form and manner specified.

 

66   Unless the Minister otherwise directs, a lessee may use any petroleum produced from his leased lands in his operations in the leased lands or may reinject such petroleum into the reservoir.

 

67   Except in emergency conditions, a lessee shall not flare or destroy any petroleum produced without the prior written approval of the Minister and upon such terms and conditions as the Minister may consider appropriate.

 

68   The Minister may from time to time designate the type of instruments and methods used in the determination of the volumes of petroleum produced by the lessee and may test such instruments and methods from time to time.

 

69   The transportation of petroleum by the lessee shall be subject to all applicable laws of the Parliament of Canada and laws of Nova Scotia.

 

70   It shall be deemed a term of every lease that the Minister may, upon six months written notice, prohibit the removal of petroleum from Nova Scotia where an equivalent market for such petroleum for Nova Scotian consumption, refining, further processing or storage exists or is projected to exist, unless a contract for the removal of such petroleum has been approved by the Minister in writing prior to such notice.


Information

71   (1)    Unless otherwise specified herein or in the right, every right holder shall submit to the Minister in a form acceptable to he Minister the following data and information at the following intervals:

 

                (a)    within sixty days after the anniversary date of such right

 

                         (i)     annual progress reports,

 

                         (ii)    geological and geophysical data and interpretations as requested,

 

                         (iii)   reports of all surveys not referred to in subclauses (i) and (ii) that were conducted in the lands subject to the right, and

 

                         (iv)   a statement of expenditures; and

 

                (b)    upon the abandonment, suspension or completion of a well, a complete well history report, including rock cutting samples and description thereof, gas and fluid samples, core and any other data as is specified in his right.

 

       (2)    The geological data referred to in subclause (ii) of clause (a) of subsection (1) shall include

 

                (a)    copies of all aerial photographs taken by the right holder; and

 

                (b)    a geological report of any area investigated, including geological maps, cross-sections, stratigraphic, and structural data.

 

       (3)    The geophysical data referred to in subclause (ii) of clause (a) of subsection (1) shall include

 

                (a)    where a gravity survey has been conducted, maps showing

 

                         (i)     the location and ground elevation of every station,

 

                         (ii)    the final corrected gravity value at each station,

 

                         (iii)   the gravity contours drawn on the gravity values, and

 

                         (iv)   the boundaries of the land subject to the right;

 

                (b)    where a seismic survey has been conducted, maps on a scale of not less than 1:50 000 showing

 

                         (i)     the location and ground elevation of each shot hole,

 

                         (ii)    the corrected time value at each shot for all horizons determined during the course of the survey,

 

                         (iii)   contours and isochrons drawn on the corrected values with a contour value of not more than thirty metres of the equivalent in time, and

 

                         (iv)   the boundaries of the lands subject to the right;

 

                (c)    where a magnetic survey is conducted, maps showing

 

                         (i)     the location of the flight lines,

 

                         (ii)    the magnetic contour lines at intervals of 10 gamma, and

 

                         (iii)   the boundaries of the land subject to the right.


Confidentiality

72   (1)    All data and information submitted pursuant to these regulations and pertaining to the exploration, development or production of petroleum shall be kept confidential by the Minister

 

                (a)    in respect of factual and interpretive geological, geochemical and photogeological data and information, for a period of three years following its filing with the Minister;

 

                (b)    in respect of factual and interpretive geophysical data and information, for a period of five years following the field acquisition of such data;

 

                (c)    in respect of information and data relating to the prognosis, drilling and completion of an exploration well, for a period of two years following the completion or abandonment of the well;

Clause 72(1)(c) amended: O.I.C. 93-330, N.S. Reg. 61/93.

 

                (d)    in respect of information and data relating to a development or production well, for a period of one year following completion or abandonment of the well.

 

       (2)    Subsection (1) does not apply to

 

                (a)    information and data relating to environmental or social matters, which shall not be kept confidential for any period of time;

 

                (b)    information and data that has a period of confidentiality which is provided for elsewhere in these regulations or by any other enactment; and

 

                (c)    information, access to which is provided for pursuant to these regulations or the Act.

 

       (3)    Notwithstanding subsection (1), the Minister may at any time

 

                (a)    publish reports and summaries in general form based on geological, economic or technical information and data submitted by a right holder;

 

                (b)    publish detailed reports of any blowout, accident or other occurrence resulting in personal injury or damage to the environment and need not keep confidential any information and data used in preparing such report;

 

                (c)    divulge to any right holder any information or data which he considers may help prevent a blowout, accident or other occurrence resulting in personal injury or damage to the environment;

 

                (d)    release general topographic information, legal surveys and elevations of well locations, the current depths of wells, and the current status of wells; or

 

                (e)    release any other information with the consent of the right holder.


Part III

 

73   This Part applies to coal gas only.

Section 73 added: O.I.C. 87-1435, N.S. Reg. 246/87.

 

74   In this Part

 

                (a)    “coal gas exploration agreement” means an agreement entered into pursuant to subsection (2) of Section 16 of the Act to explore for and develop coal gas on specified lands;

 

                (b)    “coal gas production agreement” means an agreement entered into pursuant to subsection (2) of Section 16 of the Act to produce coal gas on specified lands;

 

                (c)    “coal rights” means any right to explore, work, mine or produce coal existing in its natural condition in strata;

 

                (d)    “development program” means a plan for development and production of coal gas from the lands subject to a coal gas production agreement;

 

                (e)    “drainage hole” means a boring or other opening made from a coal mine into an underground formation for the purpose of draining or venting coal gas;

 

                (f)    “surface outlet” means the point where coal gas is brought to the surface and includes a wellhead;

 

                (g)    “well” means a boring or other opening made from a surface location into an underground formation;

 

                (h)    “work program” means a plan for the exploration and evaluation of the coal gas potential of the lands subject to a coal gas exploration agreement and without restricting the generality of the foregoing may include

 

                         (i)     geophysical activity and exploratory drilling to be conducted on the lands subject to the coal gas exploration a agreement,

 

                         (ii)    experimental recovery schemes and pilot projects carried out on the lands subject to the coal gas exploration agreement, and

 

                         (iii)   research and development work performed in the Province in relation to coal gas.

Section 74 added: O.I.C. 87-1435, N.S. Reg. 246/87.


Work approval

75   A right holder shall obtain the approval of the Minister prior to commencing drilling, stimulation or fracturing of a well on the lands subject to his right.

Section 75 added: O.I.C. 87-1435, N.S. Reg. 246/87.


Coal gas exploration agreement

76   (1)    Any person may apply for a coal gas exploration agreement by submitting an application in Form E to the Minister.

 

       (2)    Every application for a coal gas exploration agreement shall include

 

                (a)    a work program;

 

                (b)    a description of the lands for which application is made;

 

                (c)    a description of the anticipated geological and technical effects of the work program on right holders or coal rights holders;

 

                (d)    a description of the work which will be carried out on the lands;

 

                (e)    a description of the equipment to be used to carry out the work program;

 

                (f)    the proposed starting date and duration of the work program;

 

                (g)    any other information requested by the Minister.

 

       (3)    The applicant shall notify the Minister forthwith of any changes in the information included in his application.

Section 76 added: O.I.C. 87-1435, N.S. Reg. 246/87.

 

77   (1)    Within sixty days of receiving an application for a coal gas exploration agreement, the Minister shall, if he has not already done so, publish a notice in the Royal Gazette and any other publications he considers appropriate calling for the submission of competing applications in respect of the lands applied for pursuant to Section 76.

 

       (2)    The Minister shall consider all applications he receives in respect of the lands described in the notice required by subsection (1) and, not less than sixty days following publication of the notice, may enter into a coal gas exploration agreement with the applicant who, in the Minister’s opinion, submitted the application which will maximize both the general public benefit and the exploration and evaluation of the coal gas potential of the lands subject to the agreement.

Section 77 added: O.I.C. 87-1435, N.S. Reg. 246/87.

 

78   Every coal gas exploration agreement shall include

 

                (a)    a description of the lands to which it applies;

 

                (b)    the work program that the agreement holder shall carry out during the term of the agreement;

 

                (c)    such other terms and conditions the Minister deems appropriate.

Section 78 added: O.I.C. 87-1435, N.S. Reg. 246/87.

 

79   A coal gas exploration agreement confers upon the agreement holder the right to explore for coal gas on the specified lands and the exclusive right to apply for a coal gas production agreement for those lands.

Section 79 added: O.I.C. 87-1435, N.S. Reg. 246/87.

 

80   The Minister may authorize an agreement holder to produce coal gas for experimental or developmental purposes and the Minister may attach terms and conditions to his authorization including terms and conditions for the conservation and utilization of the coal gas which is produced.

Section 80 added: O.I.C. 87-1435, N.S. Reg. 246/87.

 

81   The term of a coal gas exploration agreement shall be for such period, not exceeding five years, as is specified in the agreement.

Section 81 added: O.I.C. 87-1435, N.S. Reg. 246/87.

 

82   Notwithstanding Section 81, where, prior to the expiration of the term of a coal gas exploration agreement, the drilling of any well has been commenced on any lands subject to the agreement, the term of the agreement shall be extended for so long as the drilling of that well is being pursued diligently and for so long thereafter as may reasonably be required to test and evaluate the well, but in no case shall the term be extended more than ninety days beyond its expiry.

Section 82 added: O.I.C. 87-1435, N.S. Reg. 246/87.

 

83   Notwithstanding Section 81, where an agreement holder has complied with all statutory and contractual provisions and conditions of his coal gas exploration agreement, the Minister may renew the agreement for a succeeding term of not more than five years.

Section 83 added: O.I.C. 87-1435, N.S. Reg. 246/87.

 

84   (1)    It shall be and shall be deemed to be a term of every coal gas exploration agreement that the Minister may, in the interests of resource conservation or mine safety, amend or suspend the coal gas exploration agreement without compensation to any person where activities pursuant to that coal gas exploration agreement may adversely affect the activities of a coal rights holder and, without limiting the generality of the foregoing, the Minister may by order

 

                (a)    revise the work program so as to prevent interference with the activities of the coal rights holder;

 

                (b)    require that the coal gas exploration agreement holder obtain the written approval of the Minister prior to undertaking or continuing any work or activity specified in the order;

 

                (c)    declare that certain lands specified in the order are no longer subject to the coal gas exploration agreement and that those lands are deemed to have been surrendered by the agreement holder.

 

       (2)    Every order pursuant to subsection (1) shall be made in accordance with Section 21 of the Act.

Section 84 added: O.I.C. 87-1435, N.S. Reg. 246/87.


Coal gas production agreement

85   (1)    Subject to the rights of the holder of a coal gas exploration agreement, any person may apply for a coal gas production agreement by submitting an application in Form F to the Minister.

 

       (2)    Every application for a coal gas production agreement shall include a development program to be carried out on the lands described in the application including

 

                (a)    the tracts of lands to which the development program applies;

 

                (b)    general land descriptions sufficient to identify any surface rights the applicant proposes to acquire in order to carry out commercial production;

 

                (c)    the name and address of the occupiers and owners, so far as they can be ascertained, of

 

                         (i)     lands referred to in clause (b),

 

                         (ii)    lands adjacent to those lands;

 

                (d)    the address of the applicant;

 

                (e)    where the applicant is a company

 

                         (i)     the names of the directors of the company, and

 

                         (ii)    the names of the senior managers of the company;

 

                (f)    an estimate of the proven, probable, and potential coal gas reserves of the lands;

 

                (g)    a description of the coal deposit characteristics and other geological data regarding the lands;

 

                (h)    a description of the techniques and equipment by which it is proposed the coal gas will be produced and the estimated recovery factor;

 

                (i)     a projection of the production levels over the period of commercial production of the lands;

 

                (j)     a description of techniques and equipment by which coal gas will be marketed;

 

                (k)    an impact statement describing the possible environmental, economic and social effects of the proposed development program including a description of the existing biological and renewable resource systems;

 

                (l)     a description of the technical and economic feasibility of alternate methods of development and production;

 

                (m)   a description of the applicant’s plan to minimize any deleterious environmental effects including a contingency plan for environmental emergencies;

 

                (n)    an impact statement describing the possible effects the proposed development program will have on coal mines and coal deposits; and

 

                (o)    any other information the Minister may require.

 

       (3)    The applicant shall notify the Minister forthwith of any changes in the information included in his application.

Section 85 added: O.I.C. 87-1435, N.S. Reg. 246/87.

 

86   Where the Minister receives an application for a coal gas production agreement in respect of lands which are not subject to a coal gas exploration agreement, he shall, if he has not already done so, within sixty days of receiving the application publish a notice in the Royal Gazette and any other publications he considers appropriate calling for the submission of competing applications in respect of the lands described in the application.

Section 86 added: O.I.C. 87-1435, N.S. Reg. 246/87.

 

87   The Minister shall consider all applications he receives in respect of the lands described in the notice required by Section 86 and, not less than ninety days following the publication of the notice, may enter into a coal gas production agreement with the applicant who, in the Minister’s opinion, submitted the application which will result in the optimum development, production and conservation of the resources of the Province and all other applications shall be rejected.

Section 87 added: O.I.C. 87-1435, N.S. Reg. 246/87.

 

88   (1)    Where the Minister fails to enter into a coal gas production agreement within one hundred and eighty days following publication of the notice referred to in Section 86, all applications shall be rejected.

 

       (2)    Where the Minister rejects an application for a coal gas production agreement, he shall, within thirty days of the rejection, provide the applicant with written reasons for his decision.

Section 88 added: O.I.C. 87-1435, N.S. Reg. 246/87.

 

89   (1)    Where all applications have been rejected, an applicant whose application has been rejected may submit a revised application within sixty days of receipt of the Minister’s reasons for his decision.

 

       (2)    The Minister shall either enter into a coal gas production agreement or reject a revised application for a coal gas production agreement within ninety days of receipt of a revised application.

 

       (3)    Where the Minister rejects a revised application for a coal gas production agreement, he shall, within thirty days of the rejection, provide the applicant with written reasons for his decision.

Section 89 added: O.I.C. 87-1435, N.S. Reg. 246/87.

 

90   Notwithstanding any other provision of these regulations, the Minister shall not issue a coal gas production agreement if the Minister is of the opinion that

 

                (a)    the technology of coal gas production that the applicant proposes to use is not safe;

 

                (b)    the applicant’s proposed development program does not comply with an enactment of the Province;

 

                (c)    the applicant’s proposed development program will not result in the optimum public benefit from petroleum and mineral resource development;

 

                (d)    the applicant’s proposed development program is not adequately detailed;

 

                (e)    the proposed development program is not in the best interest of the people of Nova Scotia.

Section 90 added: O.I.C. 87-1435, N.S. Reg. 246/87.

 

91   Notwithstanding Section 81, where an applicant for a coal gas production agreement is the holder of a coal gas exploration agreement and his application relates to all or a portion of the lands subject to his coal gas exploration agreement, the Minister may extend the term of the coal gas exploration agreement for the period during which the application for a coal gas production agreement or a revised application for a coal gas production agreement is under consideration.

Section 91 added: O.I.C. 87-1435, N.S. Reg. 246/87.

 

92   A coal gas production agreement confers upon the lessee the exclusive right to develop the lands subject to the agreement for the production of coal gas and the exclusive right to produce coal gas from those lands for commercial purposes.

Section 92 added: O.I.C. 87-1435, N.S. Reg. 246/87.

 

93   Every coal gas production agreement shall include

 

                (a)    a description of the lands to which it applies;

 

                (b)    a statement of the development program that the lessee shall carry out during the term of the agreement;

 

                (c)    such other terms and conditions as the Minister deems appropriate.

Section 93 added: O.I.C. 87-1435, N.S. Reg. 246/87.

 

94   (1)    The term of a coal gas production agreement shall be for such period, not exceeding ten (10) years, as is specified in the agreement.

 

       (2)    Notwithstanding subsection (1), where, on the expiration of the term of a coal gas production agreement, coal gas is being produced commercially from lands subject to the agreement, the agreement shall be renewed in respect of those portions of the lands subject to the agreement from which commercial production is being obtained for such period thereafter during which commercial production of coal gas continues.

 

       (3)    Notwithstanding subsection (1), where, on the expiration of the term of a coal gas production agreement, coal gas is not being produced commercially from lands subject to the agreement but, in the Minister’s opinion, the lands or a portion thereof are capable of commercial production, the Minister may renew the agreement in respect of those portions of the lands subject to the agreement which are capable of commercial production for such a period or periods as the Minister deems advisable.

Section 94 added: O.I.C. 87-1435, N.S. Reg. 246/87.

 

95   Sections 65, 66, 67, 68, 69 and 70 of these regulations shall apply mutatis mutandis to coal gas production agreements.

Section 95 added: O.I.C. 87-1435, N.S. Reg. 246/87.

 

96   (1)    It shall be and shall be deemed to be a term of every coal gas production agreement that the Minister may, in the interests of resource conservation or mine safety, amend or suspend the coal gas production agreement without compensation to any person where activities pursuant to that coal gas production agreement may adversely affect the activities of a coal rights holder and, without limiting the generality of the foregoing, the Minister may by order

 

                (a)    revise the development program so as to prevent interference with the activities of the coal rights holder;

 

                (b)    require that the coal gas production agreement holder obtain the written approval of the Minister prior to undertaking or continuing any work or activity specified in the order on the lands;

 

                (c)    declare that certain lands specified in the order are no longer subject to the coal gas production agreement and that those lands are deemed to have been surrendered by the lessee;

 

                (d)    require the lessee to cease production for a period specified in the order.

 

       (2)    Every order pursuant to subsection (1) shall be made in accordance with the provisions of Section 21 of the Act.

Section 96 added: O.I.C. 87-1435, N.S. Reg. 246/87.

 

97   (1)    All coal gas produced under the authority of a coal gas production agreement is subject to, and each lessee is liable for and shall pay to the Province, a royalty of five percent of the coal gas that is produced in each month.

 

       (2)    Royalty shall be based on the fair market value of coal gas at the surface outlet.

Section 97 added: O.I.C. 87-1435, N.S. Reg. 246/87.

 

98   Sections 46, 47, 48 and 49 of these regulations shall apply mutatis mutandis to this Part and shall be read as if a reference to “exploration agreement” includes a coal gas production agreement and “agreement holder” includes the holder of a coal gas production agreement.

Section 98 added: O.I.C. 87-1435, N.S. Reg. 246/87.


Information reporting requirements

99   Unless otherwise specified herein or in the right, every right holder shall submit to the Minister in a form acceptable to the Minister the following data and information at the following intervals:

 

                (a)    within sixty days after the anniversary date of such right,

 

                         (i)     annual progress reports, including a summary of operations, activities and findings related to the right, and a prognosis for the subsequent reporting period,

 

                         (ii)    any geological and geophysical data and interpretations related to the right, other than those supplied in the well history reports required by clause (b),

 

                         (iii)   a statement of expenditures;

 

                (b)    upon the abandonment, suspension or completion of a well, a well history report, including rock cutting samples and descriptions, core samples, core analysis and core gas content data, gas detection unit and other mud logging data, and electric and mechanical wireline log data;

 

                (c)    where coal gas is produced from a well, at a reporting period not to exceed three months and a collection period to be specified in the right,

 

                         (i)     gas and liquid production volumes,

 

                         (ii)    gas composition,

 

                         (iii)   well pressures,

 

                         (iv)   wireline and other downhole production survey results, and

 

                         (v)    operating time;

 

                (d)    where coal gas is produced from a production facility other than a well, at reporting and collection periods to be specified in the right,

 

                         (i)     total gas, and where applicable, total gas and air production volumes,

 

                         (ii)    average produced gas composition,

 

                         (iii)   operating pressures of the gas collection system,

 

                         (iv)   operating time, and

 

                         (v)    if coal gas is produced from a coal mine, the status and location of each gas drainage hole and gas collection point.

Section 99 added: O.I.C. 87-1435, N.S. Reg. 246/87.


Confidentiality

100   (1)  All data and information submitted to the Minister pursuant to this Part and pertaining to the exploration and development of coal gas shall be kept confidential by the Minister for a period of five years from the date following its filing with the Minister.

 

         (2)  Subsection (1) does not apply to

 

                (a)    information and data relating to environmental or social matters, which shall not be kept confidential for any period of time;

 

                (b)    information and data that has a period of confidentiality which is provided for elsewhere in these regulations or by any other enactment;

 

                (c)    information and data, other than financial information and data, relating to the production of coal gas for commercial purposes; and

 

                (d)    information, access to which is provided for pursuant to these regulations or the Act.

 

         (3)  Notwithstanding subsection (1), the Minister may at any time

 

                (a)    publish reports and summaries in general form based on geological, economic or technical information and data submitted by a right holder;

 

                (b)    publish detailed reports of any accident or other occurrence resulting in personal injury or damage to the environment and need not keep confidential any information and data used in preparing such report;

 

                (c)    divulge to any right holder or the holder of any coal rights any information or data which he considers may help prevent an accident or other occurrence which may result in personal injury or damage to the environment;

 

                (d)    release general topographic information, legal surveys and elevations of well locations, the current depths of wells, and the current status of wells;

 

                (e)    release any other information with the consent of the right holder;

 

                (f)    release information relating to volumes of coal gas produced for sale or otherwise.

Section 100 added: O.I.C. 87-1435, N.S. Reg. 246/87.


 

Schedule I—Fees and Rentals

Petroleum Resources Regulations

 

1       The following fees shall be payable at the time of filing:

 

         (a)   exploration license application.......................................................................$121.00

 

         (b)  exploration agreement proposal (this filing fee shall be refunded

by the Minister if the proposal is not accepted)............................................$1210.60

 

         (c)   exploration agreement renewal......................................................................$121.00

 

         (d)  drilling renewal permit...................................................................................$121.00

 

         (e)   development program submission.......................................................no fee required

 

         (f)   lease application............................................................................................$121.00

 

         (g)  lease renewals................................................................................................$121.00

 

         (h)  transfers.........................................................................................................$121.00

 

         (i)   surrender.............................................................................................no fee required

 

         (j)   termination.........................................................................................no fee required

 

2       The following rentals shall be payable in advance annually:

 

         (a)   exploration agreements....................................................................$0.15 per hectare

 

         (b)  lease................................................................................................$0.15 per hectare

 

3       The following inspection fees shall be payable in advance:

 

         (a)   exploration license.............................................................................................$6.05

 

         (b)  exploration agreement.......................................................................................$6.05

 

         (c)   lease..................................................................................................................$6.05

 

         (d)  notice of transfer................................................................................................$6.05

Schedule I replaced: O.I.C. 2013-105, N.S. Reg. 147/2013.

 ________________________________________________________________ 

Form A - Application for a Petroleum Exploration License


Application is hereby made by _____________________ of ____________________ for a Petroleum Exploration License under the Petroleum Resources Act in respect of lands situated at ___________________ in the County of _____________________ and described as follows:

 

Reservation                                 Reference map                        Hectares

 

 



State the extent and character of the examination to be made and an estimate of cost:

 

 


 

Signed at _______________Date _____________ Tel. no. ______________

 

 

Signature of applicant                                      Address

 

Note: If the applicant is not a resident of Nova Scotia, state the name and address of a resident of Nova Scotia upon whom service may be made.


Service may be made upon ______________________, at the following address:

_______________________________________________ Tel. no. ______________.


Petroleum Resources Act - Subsection 12(1) - No holder of a petroleum right may enter upon any Nova Scotia lands, including lands owned by the Province, to explore for or develop petroleum, without the consent of the owner or lawful occupier of the surface of such lands.


Petroleum Resources Act - Section 20 - No person shall transfer, assign, or otherwise dispose of a petroleum right except in the prescribed manner.


Application for Petroleum Exploration License

 

Received ______________ 19______. Application no.                                      

at ______________________ AM/PM  License no.                                                     

Amount of app. fees $_____________   Received    Plotted Recorded

Receipt no. _____________________

                                                                         Name & address                                              

 

 

 


 

REGISTRAR                                                                                                                            

 

                                                                         Accepted                                                          

                                                                         Rejected                                                           

                                                                                                                       19              

 

 

Deputy Minister of Natural Resources

 ________________________________________________________________ 

Form B - License to Explore for Petroleum

 

No. _________


LICENSE is hereby granted under the Petroleum Resources Act to ______________

of ______________________to undertake exploratory work for petroleum on the lands described as follows and on a plan filed in the Office of the Minister of Natural Resources.

 

                   Reservation                                                   Reference Map








Hectares:


This license is subject to the terms and conditions set forth on the reverse hereof.


In witness whereof this license is duly executed in the name of the said Minister and under his seal of office this _____ day of ______________ 19_____, at Halifax in the County of Halifax.

 

SIGNED, SEALED AND            )

DELIVERED IN THE                 )

PRESENCE OF                           )

)

_________________________     )       ________________________________

Witness                                                   Minister of Natural Resources


Terms and Conditions

 

1.    The licensee acknowledges that the rights granted by this license under the Petroleum Resources Act are non-exclusive rights and are subject to:

 

                        (a)    the Petroleum Resources Act and regulations thereunder;

 

                        (b)    all enactments of the Legislature or Governor in Council in effect during the term of this license.

 

2.    The company hereby undertakes and agrees to indemnify and save harmless the Province from any and all claims, demands, losses, damages, actions or suits which may now or hereafter arise out of or as a result of the exercise of any right given by this license.

 

3.    The licensee shall not sell, transfer, assign, or otherwise dispose of any right or interest except in accordance with the Petroleum Resources Act and regulations thereunder.

 

4.    (1)    Notice required pursuant to this license, the Petroleum Resources Act or Petroleum Resources Regulations shall be effective if given by personal service or by registered mail to the representative designated pursuant to Section 3 of the Petroleum Resources Regulations.

 

       (2)    Any notice given by registered mail shall be deemed served on the third business day following that upon which the notice is posted.

 

       (3)    The licensee shall maintain an accurate address for service and shall forthwith notify the Minister of any change therein.

 ________________________________________________________________ 

Form C - Application for a Petroleum Exploration Agreement


Application is hereby made by _________________ of ____________________ for a Petroleum Exploration Agreement under the Petroleum Resources Act in respect of lands situated at ___________________ in the County of _________________ and described as follows:

 

Reservation                                 Reference map                        Hectares

 

 



State the extent and character of the examination to be made and an estimate of its cost:

 

First year                                                                                                                                    

 

Second year                                                                                                                               

 

Third year                                                                                                                                  

Details as attached.

 

Signed at _______________ Date ______________        Tel. no. ____________

 

 

Signature of applicant                                                         Address

 

Note:  If the applicant is not a resident of Nova Scotia, state the name and address of a resident of Nova Scotia upon whom service may be made.


Service may be made upon _____________________, at the following address:

___________________________________________      Tel. no.__________.


Petroleum Resources Act - Subsection 12(1) - No holder of a petroleum right may enter upon any Nova Scotia lands, including lands owned by the Province, to explore for or develop petroleum, without the consent of the owner or lawful occupier of the surface of such lands.


Petroleum Resources Act - Section 20 - No person shall transfer, assign, or otherwise dispose of a petroleum right except in the prescribed manner.


Application for Petroleum Exploration Agreement

 

Received ______________ 19______.     Application no. _____________________

at ______________________ AM/PM     License no. ________________________

Amount of app. fees $_____________      Received         Plotted               Recorded


Receipt no. _____________________

                                                                         Name & address                                              

 

 

 

 


 

REGISTRAR                                                                                                                           

 

                                                                         Accepted                                                         

                                                                         Rejected                                                          

19_____

 

 

Deputy Minister of Natural Resources



Form D - Notice of Transfer


Part 1

Notice is hereby given that ___________________ of ____________________ (or _____________________________, a body corporate duly incorporated under the laws of _______________________ with head office at _____________________ ) (hereinafter called the Transferor) has, subject to compliance with Regulation 33 of the Petroleum Resources Regulations, sold, transferred, assigned or disposed of the right, or interest in a right, described below to _____________________ of ____________________ (or _____________________________, a body corporate duly incorporated under the laws of _______________________ with head office at _____________________ ) (hereinafter called the Transferee):


SIGNED by the Transferor this _______day of __________________, 19_____.

 

 

Witness

 

Witness


Part 2

The Transferee hereby acknowledges the transaction referred to in Part 1.

SIGNED by the Transferee this _______day of _______________, 19_____.

 

 

Witness

 

Witness


Part 3

I, ________________________, Minister of Natural Resources, hereby consent to the transaction referred to in Part 1.


SIGNED by the Minister of Natural Resources this ____day of __________19____.

 

 

           Witness                                                                             Minister


Part 4

Recorded at the Office of the Registrar this _____day of ______________, 19 _____ at ___________ a.m./p.m. as instrument _____________, page number __________.


____________________________

Registrar

 

Number                                                                      Fee $                                                      

Subject                                                                       Receipt no.                                             

 

FROM                                                               

 

TO                                                                     

 

DATED                                                            

 

R E G I S T E R E D


THIS _____ DAY OF _____________

19 ____ AT ______________ M.

PAGE                                                         

 

MINISTER OF NATURAL RESOURCES     REGISTRAR OF MINERAL AND

PETROLEUM TITLES

 ________________________________________________________________ 

Form E - Application for a Coal Gas Exploration Agreement


Application is hereby made by __________________ of ____________________ for a Coal Gas Exploration Agreement under the Petroleum Resources Act in respect of lands situated at _________________ in the County of __________________ and described as follows:

 

Reservation                           Reference map                   Hectares

 

 


 

Summary of work to be carried out on lands (a detailed work program must be attached):     

 

 


 

Equipment to be utilized:                                                                                                          

 


 

Proposed starting date and duration of work:                                                                            


 

Signed at ___________________  Date _______________      Tel. no.___________

 

 

Signature of applicant                                       Address

 

Note:  If the applicant is not a resident of Nova Scotia, state the name and address of a resident of Nova Scotia upon whom service may be made.


Service may be may upon ________________________ at the following address:

__________________________________________________, Tel. no. ___________


Petroleum Resources Act - Subsection 12(1) - No holder of a petroleum right may enter upon any Nova Scotia lands, including lands owned by the Province, to explore for or develop petroleum, without the consent of the owner or lawful occupier of the surface of such lands.


Petroleum Resources Act - Section 20 - No person shall transfer, assign, or otherwise dispose of a petroleum right except in the prescribed manner.

Form E added: O.I.C. 87-1435, N.S. Reg. 246/87.

 ________________________________________________________________ 

Form F - Application for a Coal Gas Production Agreement


Application is hereby made by _______________ of _____________ for a Coal Gas Production Agreement under the Petroleum Resources Act in respect of lands situated at _____________ in the County of ___________ and described as follows:

 

Reservation                           Reference map                   Hectares

 

 



If lands described above are subject to a Coal Gas Exploration Agreement, state particulars of the Agreement:

 

 



A development program prepared in accordance with Section 85(2) of the Petroleum Resources Regulations must accompany this application.

 

Signed at _____________________         Date _______________    Tel. no.___________

 

________________________________          ______________________________

Signature of applicant                                                Address

 

Note:  If the applicant is not a resident of Nova Scotia, state the name and address of a resident of Nova Scotia upon whom service may be made.


Service may be may upon ________________________, at the following address:

_____________________________________________, Tel. no. __________


Petroleum Resources Act - Subsection 12(1) - No holder of a petroleum right may enter upon any Nova Scotia lands, including lands owned by the Province, to explore for or develop petroleum, without the consent of the owner or lawful occupier of the surface of such lands.


Petroleum Resources Act - Section 20 - No person shall transfer, assign, or otherwise dispose of a petroleum right except in the prescribed manner.

Form F added: O.I.C. 87-1435, N.S. Reg. 246/87.