Petroleum Resources Act

(1) The Minister may delegate any of the Minister’s powers, duties or functions under this Act or the regulations to any employee of the public service, and that person shall exercise those powers and shall perform those duties or functions in accordance with the terms of the delegation.

(2) The Minister, on behalf of the Government of the Northwest Territories, may enter into a contract with the Government of Canada, the government of a province or territory, an agency of any of those governments, or another person, respecting the provision of services of employees of that government, agency or person for the purpose of assisting the Minister in the administration of this Act. SNWT 2019,c.26,s.3.

(1) The Minister may appoint and establish the terms of reference of such advisory bodies as he or she considers appropriate to advise the Minister with respect to such matters relating to the administration or operation of this Act or the Oil and Gas Operations Act as are referred to them by the Minister.

(2) The members of an advisory body appointed under subsection (1) may be paid such remuneration and expenses for their services as may be fixed by the Commissioner in Executive Council.

(1) Where an interest owner consists of two or more holders, those holders shall, in the manner prescribed, appoint one of their number to act as representative of the interest owner for the purposes of this Act, but the holders may, with the consent of the Minister, appoint different representatives for different purposes.

(2) In the event that an interest owner consisting of two or more holders fails to appoint a representative for any of the purposes of this Act, the Minister may designate one of those holders as the representative of the interest owner for those purposes.

(3) An interest owner is bound by the acts or omissions of the appointed or designated representative of that interest owner with respect to any matter to which the authority of the representative extends.

(4) A representative of an interest owner appointed or designated under this section shall perform the duties in respect of the purposes for which he or she has been appointed or designated, and any operating agreement or other similar arrangement in force in respect of the relevant interest of that interest owner stands varied or amended to the extent necessary to give effect to this subsection.

(1) The Commissioner in Executive Council may, by order, for such purposes and under such conditions as may be set out in the order, prohibit the issuance of interests in respect of such petroleum lands as are specified in the order.

(2) Where any petroleum lands are, under the Northwest Territories Lands Act, withdrawn from disposition or set apart and appropriated for any purposes and under any conditions, the issuance of interests in relation to such lands is deemed to be prohibited pursuant to subsection (1) for those purposes and under those conditions.

(1) An interest owner may, in the manner prescribed and subject to any requirements that may be prescribed respecting the minimum geographical area to which an interest may relate, surrender an interest in respect of all or any portion of the petroleum lands subject to the interest.

(2) Any liability of an interest owner or interest holder to the Government of the Northwest Territories, either direct or by way of indemnity, that exists at the time of any surrender under subsection (1), is not affected by the surrender.

(1) The Commissioner in Executive Council may, in the case of

by order, prohibit any interest owner specified in the order from commencing or continuing any work or activity on the petroleum lands or any portion of those lands that are subject to the interest of that interest owner.

(2) Where, by reason of an order made under subsection (1), any requirement in relation to an interest cannot be complied with while the order is in force, compliance with the requirement is suspended until the order is revoked.

(3) Notwithstanding any other provision in this Act, the term of an interest that is subject to an order under subsection (1) and the period provided for compliance with any requirement in relation to the interest, are extended for a period equal to the period that the order is in force.

(4) Nothing in this section affects the authority of the Minister to relieve a person from any requirement in relation to an interest or under this Act or the regulations.

PART 2 GENERAL RULES RELATING TO ISSUANCE

(1) The Minister may issue interests in respect of any petroleum lands in accordance with this Act and the regulations.

(2) Subject to subsection (3), the application of any interest may be restricted to such geological formations and to such substances as may be specified in the interest.

(3) Subsection (2) does not apply to any interest

(1) Subject to section 16, the Minister shall not issue an interest in relation to Territorial reserve lands unless

(2) Any request received by the Minister to make a call for bids in relation to particular petroleum lands shall be considered by the Minister in selecting the petroleum lands to be specified in a call for bids.

(3) A call for bids must specify

(4) Unless otherwise prescribed, a call for bids must be published at least 120 days before the closing date for the submission of bids specified in the call.

(1) A bid submitted in response to a call for bids must not be selected unless

(2) Where the Minister selects a bid submitted in response to a call for bids, the Minister shall publish a notice in accordance with section 18 setting out the terms and conditions of that bid.

(3) Where an interest is to be issued as a result of a call for bids, the terms and conditions of the interest must be substantially consistent with any terms and conditions in respect of the interest specified in the call.

(4) The Minister shall publish a notice in accordance with section 18 setting out the terms and conditions of any interest issued as a result of a call for bids as soon as is practicable after the issuance of the interest.

(1) The Minister is not required to issue an interest as a result of a call for bids.

(2) Subject to section 16, where the Minister has not issued an interest with respect to a particular portion of the petroleum lands specified in a call for bids within six months after the closing date specified in the call for the submission of bids, the Minister shall, before issuing an interest in relation to that portion of the petroleum lands, make a new call for bids.

(1) The Minister may issue an interest, in relation to any Territorial reserve lands, without making a call for bids where

(2) Where the Minister proposes to issue an interest under subsection (1), he or she shall, no later than 90 days before issuing the interest, publish a notice in accordance with section 18 setting out the terms and conditions of the proposed interest.

(1) An exploration licence must be in the prescribed form and may contain any other terms and conditions, not inconsistent with this Act or the regulations, as may be agreed on by the Minister and the interest owner of the licence. SNWT 2019,c.26,s.6.

(2) Repealed, SNWT 2019,c.26,s.6(2).

(1) The Minister and the interest owner of an exploration licence may, by agreement, amend any provision of the exploration licence in a manner not inconsistent with this Act or the regulations, and without limiting the generality of the foregoing but subject to subsection (2), may amend the licence to include any other petroleum lands.

(2) The Minister shall not amend an exploration licence to include petroleum lands that were Territorial reserve lands immediately prior to the inclusion, unless the Minister would be able to issue an interest to that interest owner in relation to those lands under subsection 16(1), and a notice has been published in accordance with section 18 no later than 90 days before making the amendment, setting out the terms and conditions of the amendment.

(3) The Minister may, on the application of the interest owners of two or more exploration licences, consolidate those exploration licences into a single exploration licence, subject to any terms and conditions that may be agreed on by the Minister and those interest owners.

(1) The effective date of an exploration licence is the date specified as such in the licence.

(2) Subject to section 26, the term of an exploration licence must not exceed nine years from the effective date of the licence, and may not be extended or renewed.

(3) On the expiration of an exploration licence, any petroleum lands to which the exploration licence related and that are not subject to a production licence or a significant discovery licence become Territorial reserve lands.

(1) Where, prior to the expiration of the term of an exploration licence, the drilling of a well has been commenced on any petroleum lands to which the exploration licence applies, the exploration licence continues in force while the drilling of that well is being pursued diligently and for so long thereafter as may be necessary to determine the existence of a significant discovery based on the results of that well.

(2) Where the drilling of a well referred to in subsection (1) is suspended by reason of dangerous or extreme weather conditions or mechanical or other technical problems encountered in the drilling of the well, the drilling of that well is deemed, for the purposes of subsection (1), to be being pursued diligently during the period of suspension.

(3) Where the drilling of a well referred to in subsection (1) cannot be completed by reason of mechanical or other technical problems, and if within 90 days after the cessation of drilling operations with respect to that well or such longer period as the Minister determines, the drilling of another well is commenced on any petroleum lands that were subject to the exploration licence, the drilling of that other well is deemed, for the purposes of subsection (1), to have commenced prior to the expiration of the term of the exploration licence.

(1) Where a significant discovery has been made on any petroleum lands that are subject to an interest or a share in an interest held in accordance with section 22, the Regulator shall, on the application of the interest holder of the interest or the share made in the form and manner and containing such information as may be prescribed, make a written declaration of significant discovery in relation to those petroleum lands in respect of which there are reasonable grounds to believe that the significant discovery may extend.

(2) Where a significant discovery has been made on any petroleum lands, the Regulator may, by order, make a declaration of significant discovery in relation to those petroleum lands in respect of which there are reasonable grounds to believe the significant discovery may extend.

(3) A declaration made under subsection (1) or (2) must describe the petroleum lands to which it applies.

(4) Subject to subsection (5), where a declaration of significant discovery is made under subsection (1) or (2), and based on the results of further drilling, there are reasonable grounds to believe that a discovery is not a significant discovery or that the petroleum lands to which the significant discovery extends differ from the significant discovery area, the Regulator may, as appropriate in the circumstances,

(5) A declaration of significant discovery shall not be amended to decrease the significant discovery area or be revoked earlier than

(6) A copy of a declaration of significant discovery and of any amendment or revocation made under this section in relation to any petroleum lands subject to an interest, must be sent by registered mail to the interest owner of that interest.

(7) The Regulator may delegate any of its powers under this section to any person, who shall exercise the powers in accordance with the terms of the delegation.

(1) This section applies to any decision of the Regulator to make, amend or revoke a declaration of significant discovery under section 27.

(2) At least 30 days before making a decision to which this section applies, the Regulator shall give written notice of its intention to make the decision to any person the Regulator considers to be directly affected by the decision.

(3) A person to whom notice is given may, in writing, request a hearing in respect of the decision, but the request must be received by the Regulator within 30 days after the notice is given.

(4) If no request is received in accordance with subsection (3), the Regulator may make the decision.

(5) If a request is received in accordance with subsection (3), the Regulator shall fix a suitable time and place for the hearing and notify each person who requested the hearing.

(6) Each person who requests a hearing may make representations and introduce witnesses and documents at the hearing.

(7) At or after the conclusion of the hearing the Regulator shall make its decision, give notice to each person who requested the hearing, and if the person requests reasons for the decision, publish the reasons or otherwise make them available.

(1) The Minister shall issue a significant discovery licence to an interest holder in respect of all portions of a significant discovery area that are subject to an exploration licence or a share in an exploration licence held in accordance with section 22, if

(2) Where a declaration of significant discovery is in force and the significant discovery area extends to Territorial reserve lands, the Minister may, after making a call for bids in relation to those Territorial reserve lands or any portion of those lands and selecting a bid submitted in response to the call in accordance with subsection 14(1), issue a significant discovery licence to the person who submitted that bid in relation to the Territorial reserve lands specified in the call.

(3) A significant discovery licence must be in the prescribed form, and may contain any other terms and conditions, not inconsistent with this Act or the regulations, as may be agreed on by the Minister and the interest owner of the significant discovery licence.

(4) The Minister shall publish a notice in accordance with section 18 upon the issuance of a significant discovery licence. SNWT 2019,c.26,s.7.

(1) Where a significant discovery area in relation to a declaration of significant discovery is decreased pursuant to an amendment made under subsection 27(4), any significant discovery licence issued on the basis of that declaration shall be amended by decreasing accordingly the petroleum lands subject to that licence.

(2) Where a significant discovery area in relation to a declaration of significant discovery is increased pursuant to an amendment made under subsection 27(4), any significant discovery licence that was issued on the basis of that declaration shall be amended to include all portions of the amended significant discovery area that are subject to any exploration licence held by the interest owner of that significant discovery licence at the time the significant discovery area is so increased.

(3) The Minister shall publish a notice in accordance with section 18 upon the amendment of a significant discovery licence in accordance with this section. SNWT 2019,c.26,s.8.

(1) On the issuance of a significant discovery licence under subsection 30(1) with respect to a significant discovery area, any exploration licence ceases to have effect in relation to that significant discovery area.

(2) The effective date of a significant discovery licence is the date of application for the licence.

(3) Subject to subsections (4) and (5), a significant discovery licence is effective from the date it is issued and shall be issued for a term of 15 years.

(4) The Minister may, on such terms and conditions as may be specified, extend the term of a significant discovery licence, for one or more terms of 15 years, if

(5) The Minister shall publish a notice in accordance with section 18 upon the extension of the term of a significant discovery licence in accordance with this section.

(6) On the expiration of a significant discovery licence, any petroleum lands to which the significant discovery licence related that are not subject to a production licence become Territorial reserve lands. SNWT 2019,c.26,s.9.

(1) Subject to subsections (2) to (4) and at any time after making a declaration of significant discovery, the Minister may by order subject to section 95, require the interest owner of any interest in relation to any portion of the significant discovery area to drill a well on any portion of the significant discovery area that is subject to that interest, in accordance with such directions as may be set out in the order, and to commence the drilling within one year after the making of the order or within such longer period as the Minister may specify in the order.

(2) No order may be made under subsection (1) with respect to any interest owner who has completed a well on the relevant petroleum lands within six months prior to the making of the order.

(3) No order may be made under subsection (1) within the three years immediately following the well termination date of the well indicating the relevant significant discovery.

(4) No order made under subsection (1) may require an interest owner to drill more than one well at a time on the relevant petroleum lands.

(5) For the purposes of subsection (3), "well termination date" means the date on which a well has been abandoned, completed or suspended in accordance with any applicable drilling regulations.

(1) Notwithstanding section 91, the Minister may provide information relating to a significant discovery to any interest owner who requires such information to assist the interest owner in complying with an order made under subsection 33(1).

(2) An interest owner shall not disclose any information provided to that interest owner under subsection (1), except to the extent necessary to enable the interest owner to comply with an order made under subsection 33(1). SNWT 2019,c.26,s.10

(1) Where a commercial discovery has been made on any petroleum lands that are subject to an interest or a share in an interest held in accordance with section 22, the Regulator shall, on the application of the interest holder of the interest or the share, made in the form and manner and containing such information as may be prescribed, make a written declaration of commercial discovery in relation to those petroleum lands in respect of which there are reasonable grounds to believe that the commercial discovery may extend.

(2) Where a commercial discovery has been made on any petroleum lands, the Regulator may, by order, make a declaration of commercial discovery in relation to those petroleum lands in respect of which there are reasonable grounds to believe that the commercial discovery may extend.

(3) Subsections 27(3), (4) and (5) apply, with such modifications as the circumstances require, with respect to a declaration made under subsection (1) or (2).

(4) The Regulator may delegate any of its powers under this section to any person, who shall exercise the powers in accordance with the terms of the delegation.

(1) This section applies to any decision of the Regulator to make, amend or revoke a declaration of commercial discovery under section 35.

(2) At least 30 days before making a decision to which this section applies, the Regulator shall give written notice of its intention to make the decision to any person the Regulator considers to be directly affected by the decision.

(3) A person to whom notice is given may, in writing, request a hearing in respect of the decision, but the request must be received by the Regulator within 30 days after the notice is given.

(4) If no request is received in accordance with subsection (3), the Regulator may make the decision.

(5) If a request is received in accordance with subsection (3), the Regulator shall fix a suitable time and place for the hearing and notify each person who requested the hearing.

(6) Each person who requests a hearing may make representations and introduce witnesses and documents at the hearing.

(7) At or after the conclusion of the hearing the Regulator shall make its decision, give notice to each person who requested the hearing, and if the person requests reasons for the decision, publish the reasons or otherwise make them available.

(1) The Minister may, at any time after making a declaration of commercial discovery, give notice to the interest owner of any interest in relation to any portion of the commercial discovery area where commercial production of petroleum has not commenced before that time, stating that after such period of not less than six months as may be specified in the notice, an order may be made reducing the term of that interest.

(2) During the period specified in a notice sent to an interest owner under subsection (1), the Minister shall provide a reasonable opportunity for the interest owner to make such submissions as the interest owner considers relevant to determining whether the Minister should make an order reducing the term of the relevant interest.

(3) Notwithstanding any other provision of this Act, where the Minister is of the opinion that it is in the public interest, he or she may, at any time not later than six months after the expiration of the period specified in a notice in respect of an interest sent under subsection (1), by order subject to section 95, reduce the term of the interest to three years after the date the order is made or such longer period as may be specified in the order.

(4) Notwithstanding any other provision of this Act but subject to subsections (5) and (6), where an order is made under subsection (3), any interest in respect of petroleum lands within the area to which the interest that is the subject of the order applied on the date the order was made ceases to have effect at the end of the period specified in the order.

(5) Where commercial production of petroleum on any portion of the petroleum lands referred to in subsection (4) commences before the expiration of the period specified in an order made under subsection (3) or the period extended under subsection (6), the order ceases to have effect and is deemed to have been vacated.

(6) The Minister may extend the period specified in an order made under subsection (3) or may revoke the order.

(1) A production licence confers, with respect to the petroleum lands to which the licence applies,

(2) Notwithstanding subsection (1), the Minister may, subject to such terms and conditions as he or she considers appropriate, authorize any interest holder of an interest or a share in an interest to produce petroleum on the petroleum lands subject to the interest or share for use in the exploration or drilling for or development of petroleum on any petroleum lands.

(1) Subject to section 45, the Minister, on application made in the form and manner and containing such information as may be prescribed,

(2) Where a declaration of commercial discovery is in force and the commercial discovery area extends to Territorial reserve lands, the Minister may, after making a call for bids in relation to those Territorial reserve lands or any portion of those lands and selecting a bid submitted in response to the call in accordance with subsection 14(1), issue a production licence to the person who submitted that bid in relation to the Territorial reserve lands specified in the call.

(3) A production licence must be in the prescribed form, and may contain any terms and conditions, not inconsistent with this Act or the regulations, as may be agreed on by the Minister and the interest owner of the production licence.

(4) The Minister shall publish a notice in accordance with section 18 upon the issuance of a production licence. SNWT 2019,c.26,s.11.

(1) The Minister may, on the application of the interest owners of two or more production licences, consolidate those production licences into a single production licence, on such terms and conditions as may be agreed on by the Minister and those interest owners.

(2) The Minister shall publish a notice in accordance with section 18 upon the consolidation of production licences in accordance with this section. SNWT 2019,c.26,s.12.

(1) Where a commercial discovery area in respect of a declaration of commercial discovery is decreased as a result of an amendment made under subsections 27(4) and 35(3), any production licence that was issued on the basis of that declaration shall be amended by decreasing accordingly the petroleum lands subject to that licence.

(2) Where a commercial discovery area in respect of a declaration of commercial discovery is increased as a result of an amendment made under subsections 27(4) and 35(3), any production licence that was issued on the basis of that declaration shall be amended to include all portions of the amended commercial discovery area that are subject to an exploration licence or a significant discovery licence held by the interest owner of that production licence at the time the commercial discovery area is increased. SNWT 2019,c.26,s.13.

(1) Subject to subsections (2) to (4), a production licence is effective from the date it is issued and shall be issued for a term of 25 years.

(2) Where a declaration of commercial discovery on the basis of which a production licence was issued is, under subsections 27(4) and 35(3), revoked or amended to exclude all portions of the commercial discovery area in respect of which the production licence was issued, the production licence ceases to be in force.

(3) Where, on the expiration of the term of a production licence, petroleum is being produced commercially, the term is extended for the period during which commercial production of petroleum continues.

(4) The Minister may, on such terms and conditions as may be specified, extend the term of a production licence if

(5) The Minister shall publish a notice in accordance with section 18 upon the extension of the term of a production licence in accordance with this section. SNWT 2019,c.26,s.13.

(1) On the issuance of a production licence, any interest in relation to the petroleum lands in respect of which the production licence is issued held immediately prior to the issuance of the production licence ceases to have effect in relation to those petroleum lands, but otherwise continues to have effect according to its terms and the provisions of this Act.

(2) On the expiration of a production licence, the petroleum lands in relation to which the production licence was issued become Territorial reserve lands.

(1) The Minister may, subject to any terms and conditions he or she considers appropriate, issue a licence for the purpose of subsurface storage of petroleum or any other substance approved by the Minister in petroleum lands at depths greater than 20 m.

(2) No petroleum lands shall be used for a purpose referred to in subsection (1) without a licence referred to in that subsection.

(1) There are hereby reserved to the Commissioner, and each holder of a share in a production licence is liable for and shall pay, in accordance with the regulations, such royalties as may be prescribed, at the rates prescribed, in respect of petroleum produced from petroleum lands and in respect of the periods prescribed.

(2) The Minister may require all or part of any royalty payable under this Part to be paid in money or in kind in accordance with the regulations.

(3) The Commissioner in Executive Council may, by order, authorize the reduction of, or the exemption from the payment of, any royalty payable under this Part for such periods, in such amounts and subject to such conditions as may be specified in the order.

(1) Each holder of a share in a production licence shall file, at the time and in the manner prescribed, reports and returns in such form and containing such information as may be prescribed, and shall submit such documentation in connection with the reports and returns as may be prescribed.

(2) Where the interest owner of a production licence consists of two or more interest holders, the representative of the interest owner shall, where required by the regulations,

(3) Interest holders of a production licence shall provide their representative with the information necessary to file reports and returns under paragraph (2)(b).

(1) Each holder of a share in a production licence shall, subject to such terms and conditions as may be prescribed, keep books, records, accounts, documents and other information necessary for or incidental to the calculation and verification of the amounts of royalties payable by the holder under this Part, including such books, records, accounts, documents and other information as may be prescribed.

(2) Books, records, accounts, documents and other information required to be kept under subsection (1) must be kept at the place, in the manner and during the periods prescribed.

(1) The Minister shall, as soon as is practicable, examine a report or return filed under subsection 50(1), assess the royalty payable for the period in respect of which the report or return was filed and the interest and penalties, if any, payable, and send a notice of assessment to the person by whom the report or return was filed.

(2) The Minister may, at any time, assess the royalty, interest or penalties payable under this Part in respect of any period, and give a notice of the assessment to the interest holder required to pay the royalty.

(3) Liability for the royalty payable under this Part and the interest and penalties, if any, payable under this Part is not affected by an incorrect or incomplete assessment or by the fact that no assessment has been made.

(4) In making an assessment under subsection (1) the Minister is not bound by any report or return filed by or on behalf of an interest holder, and in making an assessment the Minister may, notwithstanding a report or return so filed or that no such report or return has been filed, assess the royalty, interest and penalties payable under this Part.

(5) An assessment, subject to being varied or vacated on an objection or appeal under this Part and subject to a reassessment, is valid and binding notwithstanding any error, defect or omission in the assessment or in any proceeding under this Part relating to the assessment.

(1) An interest holder who objects to an assessment may, within 90 days after the date of mailing of the notice of assessment, give a notice of objection to the Minister by registered mail, in such form and manner as may be prescribed, setting out the reasons for the objection and all the relevant facts.

(2) On receipt of a notice of objection, the Minister shall, as soon as is practicable, reconsider the assessment and confirm, vary or vacate the assessment and give notice of the decision by registered mail to the interest holder who gave the notice of objection.

(1) Where the Minister confirms or varies an assessment under subsection 54(2) or fails, within 90 days after the date of mailing by the interest holder of the notice of objection, to notify the interest holder that the Minister has confirmed, varied or vacated the assessment, the interest holder may appeal to the Supreme Court in the manner set out in the Rules of the Supreme Court to have the assessment varied or vacated.

(2) No appeal under subsection (1) may be instituted after the expiration of 90 days after the date of mailing of a notice confirming or varying an assessment, or where no such notice is given, after the expiration of 180 days after the date of mailing of the notice of objection.

(3) Where an appeal is taken under subsection (1) the Minister shall, at the order of the Supreme Court, forward to the Court copies of all reports or returns, notices of assessment, notices of objection and other documents, if any, that are relevant to the appeal.

(4) The Supreme Court may dispose of an appeal under subsection (1) by dismissing it or by allowing it and vacating or varying the assessment, and may make such orders as are necessary for giving effect to any such disposition.

(5) Proceedings in an appeal to the Supreme Court under subsection (1) may be held in private on request made to the Court by a party to the appeal.

(1) Notwithstanding subsections 54(1) and 55(2), the Supreme Court may, on application, make an order, subject to any terms it considers appropriate, extending the time within which a notice of objection to an assessment may be given under subsection 54(1) or an appeal to the Supreme Court may be instituted under subsection 55(2) where, in the opinion of the Court, the circumstances of the case are such that it would be just and equitable to do so.

(2) Where notice of objection to an assessment is given under subsection 54(1) or an appeal to the Supreme Court is instituted under subsection 55(1), the Minister may suspend, pending disposition of the objection or appeal, the requirement to pay any amount on account of royalty, interest or penalty payable under this Part, the liability for which the interest holder disputes in the notice of objection or on appeal.

(3) The Minister may, as a condition of suspending payment of any amount in dispute, require the relevant interest holder to provide security for such payment in a form and amount acceptable to the Minister.

(1) Where, in the opinion of the Minister, the holder of a share in a production licence is attempting to avoid payment of royalties under this Part, the Minister may, in writing, direct that all royalties, interest and penalties payable by that holder be paid forthwith on assessment.

(2) Where the Minister orders the cancellation of a production licence under subsection 94(2), all royalties, interest and penalties payable under this Part in respect of that production licence shall be paid forthwith on assessment.

(1) Where an interest holder (in this subsection referred to as the "successor") acquires a production licence or a share in a production licence from another interest holder (in this subsection referred to as the "predecessor"), the successor is jointly and severally liable with the predecessor for all royalties, interest and penalties that have been assessed under this Part and that are payable by the predecessor at the time of the acquisition, unless the successor has obtained prior to the acquisition a certificate from the Minister certifying that

(2) Every assignee, liquidator, administrator, executor and other like person, other than a trustee in bankruptcy, shall, before distributing any property under his or her control belonging to the holder of a share in a production licence, obtain a certificate from the Minister certifying that all royalties, interest and penalties that have been assessed under this Part and are payable by the interest holder have been paid or that security for such payment has been accepted by the Minister.

(3) Distribution of property without a certificate required by subsection (2) renders the person required to obtain the certificate personally liable for the unpaid royalties, interest and penalties.

(1) The Commissioner in Executive Council may

provisions of this Part, and without restricting the generality of the foregoing, may make regulations

(2) Regulations under subsection (1) may be made in respect of all petroleum produced from petroleum lands or in respect of any class of petroleum.

(3) Regulations made under subsection (1) may apply generally to all petroleum lands or to any portion of those lands.

PART 7 ENVIRONMENTAL STUDIES RESEARCH

(1) The Environmental Studies Research Fund, a special purpose fund as defined in the Financial Administration Act,

(2) The purpose of the Fund is to finance environmental and social studies pertaining to the manner in which, and the terms and conditions under which, exploration, development and production activities on petroleum lands authorized under this Act or any other Act should be conducted.

(1) All amounts deposited for payment into a sub-account under this Part must be credited to that sub-account, and all amounts paid out of the Consolidated Revenue Fund under this section must be charged against that sub-account.

(2) The total amount of the Fund must not, at any time, exceed $15,000,000, and every levy under this Part for the Fund or a sub-account included in the Fund is inoperative during any period that the Fund exceeds that total amount.

(3) The following may be paid out of the Consolidated Revenue Fund and charged against the balance standing to the credit of the Fund:

(4) Where an environmental or social study relates to one prescribed region exclusively, the costs of that study shall be charged against the sub-account for that region.

(5) Where an environmental or social study relates to more than one prescribed region, the costs of that study shall be charged against the sub-accounts for those regions in accordance with the allocation made by the Board.

(6) All other costs and expenses payable from the Fund in any year shall be allocated to and be charged against any sub-account in the manner determined by the Board.

(1) The Environmental Studies Management Board is established, consisting of the number of members fixed by the Commissioner in Executive Council.

(2) Subject to the regulations, members of the Board are appointed by the Minister and hold office during pleasure.

(3) Members of the Board are to be selected for appointment under subsection (2) from

(4) No person may be appointed under subsection (2) unless the person demonstrates that he or she has specialized technical knowledge or expertise, or Indigenous traditional knowledge and experience, relevant to the purpose of the Fund.

(5) Notwithstanding subsections (2) to (4), if the number of members of the Board is fixed

(6) The chairperson of the Board is to be appointed by the Minister from among the members of the Board.

(7) Each member of the Board is entitled to be reimbursed for the travel and living expenses incurred by the member while he or she is absent from his or her ordinary place of residence in the course of performing the member’s functions, in an amount consistent with allowable expenses set out in the terms and conditions of employment for public servants of the Government of the Northwest Territories.

(8) The Conflict of Interest Act applies to members of the Board. SNWT 2019,c.26,s.14.

(1) Unless otherwise provided in an agreement entered into under section 74, the Board shall

(2) A budget for the Fund submitted under paragraph (1)(c) must, in respect of that fiscal year, contain

(3) The annual report submitted under paragraph (1)(d) must contain the following information with respect to the activities and finances of the Fund:

(4) The Board may make bylaws respecting

(5) A bylaw made under subsection (4) is not effective until the Minister has approved it in writing.

(6) The Board shall, in the exercise of its powers and the performance of its duties and functions under this Part, comply with any directives the Minister has issued to the Board. SNWT 2019,c.26,s.15.

(1) The Minister may, for the purposes of this Part and after considering any recommendations made by the Board under paragraph 71(1)(e), fix a rate for each prescribed region of petroleum lands.

(2) In fixing a rate under subsection (1), the Minister is not bound by a recommendation of the Board.

(1) Every interest owner of an interest in relation to petroleum lands situated in a prescribed region shall deposit for payment into the sub-account for that region, at the times and in the manner determined by the Board, an amount equal to the product of the number of hectares of petroleum lands that are subject to the interest and situated in the region, and the rate fixed under subsection 72(1) in respect of that region.

(2) Subject to subsection (3), where an interest is issued at any time in relation to petroleum lands that were Territorial reserve lands immediately before that time, the interest owner shall deposit for payment into the applicable sub-accounts, at the times and in the manner determined by the Board, an amount equal to the aggregate of the amounts that would have been payable by the interest owner in respect of a Fund under this Part or in respect of a fund under the Canada Oil and Gas Act, as it read immediately before the coming into force of section 73 of the former Act, during the year in which the interest is issued and the two years immediately preceding that year had such petroleum lands been subject to an interest held by the interest owner during such period.

(3) The amount payable by an interest owner under subsection (2) shall be reduced by the amount, if any, deposited for payment under subsection (1) or (2) in respect of the same petroleum lands by a prior interest owner during the period referred to in subsection (2).

(4) The Minister may, on the recommendation of the Board, exempt an interest owner from the payment under this section of any amount into a sub-account in respect of petroleum lands subject to the interest of that interest owner in areas where, by virtue of an order under subsection 11(1), any work or activity has been prohibited.

(5) An interest owner is not liable to pay any amount under this section in respect of any petroleum lands in relation to which the interest owner has surrendered its interest prior to the time for payment of the amount determined under subsection (1).

(6) Where an interest owner consists of two or more holders, amounts payable under this Part shall be collected and remitted on behalf of the interest owner by the representative of the interest owner for that purpose.

(1) The Commissioner in Executive Council may authorize the Minister to enter into an agreement with any person appointing that person to act as administrator of the Fund.

(2) An agreement entered into under subsection (1) must provide for

(1) In this Part,

"assignment of security interest" means a notice of the assignment of a security interest or any part of the interest in respect of which a security notice has been registered under this Part; (cession de sûreté)

"Deputy Registrar" means the person designated as such by the Minister; (directeur adjoint)

"discharge" means a notice of the discharge of a security notice or postponement, and includes a partial discharge; (mainlevée)

"instrument" means a discharge, postponement, security notice, transfer or an assignment of a security interest; (acte)

"operator’s lien" means any charge on or right in relation to an interest or a share in an interest,

"postponement" means a document evidencing the postponement of a security notice or operator’s lien; (cession de priorité)

"register" means the register referred to in subsection 78(1); (registre) "Registrar" means the person designated as such by the Minister; (directeur)

"secured party" means the person claiming a security interest under a security notice; (partie garantie)

"security interest" means any charge on or right in relation to an interest or a share in an interest that secures

and includes a security given under section 426 of the Bank Act (Canada), but does not include an operator’s lien; (sûreté)

"security notice" means a notice of a security interest (version anglaise seulement);

"transfer" means a transfer of an interest or a share in an interest. (transfert)

(2) Where an assignment of security interest is registered under this Part, a reference in this Part to a secured party shall, in respect of the security notice to which the assignment of security interest relates, be read as a reference to the assignee named in the assignment of security interest.

(1) A public register of all interests and instruments registered under this Part must be established and maintained in accordance with this Part and the regulations.

(2) The Registrar and Deputy Registrar shall exercise such powers and perform such duties and functions in respect of the register and the system of registration established under this Part as may be prescribed.

(1) No document other than an interest or instrument may be registered under this Part.

(2) No instrument may be registered under this Part unless it has been submitted for registration in the form prescribed for that instrument, in such manner and containing such information as may be prescribed, and meets any other requirement for registration prescribed by this Act and the regulations.

(1) No security notice may be registered under this Part unless it specifies

(2) No instrument may be registered under this Part unless a notice of official address for service in respect of that instrument is filed with the Registrar in the prescribed form.

(3) The official address for service in respect of an instrument may be changed by filing with the Registrar another notice of official address for service in the prescribed form.

(1) Every document submitted for registration under this Part shall be examined by the Registrar, and where he or she determines that the document is an instrument that meets all the requirements for its registration prescribed by this Act and the regulations, the Registrar shall register the instrument in accordance with this Act and the regulations.

(2) If the Registrar refuses to register any document under this Part, he or she shall return the document to the person submitting the document for registration and provide that person with the reasons for the refusal.

(3) An instrument is registered under this Part by the endorsement of a memorandum of registration on the instrument specifying the registration number of the instrument and the time and date of registration.

(4) Instruments accepted for registration under this Part must be registered in the chronological order in which such instruments are received by the Registrar.

(1) Subject to subsection (2), any particular right, in relation to an interest or a share in an interest, in respect of which an instrument has been registered under this Part at any time has priority over and is valid against any other right, in relation to that interest or share,

(2) An operator’s lien, in relation to an interest or share in an interest shall, without registration of any document evidencing the operator’s lien, have priority over and be valid against any other right, in relation to that interest or share, in respect of which an instrument may be registered under this Part, whether an instrument in respect of that other right was registered before or after the acquisition of the operator’s lien or the operator’s lien was acquired before or after that other right, unless the operator’s lien is postponed with respect to such other rights by the registration under this Part of a postponement in respect of the operator’s lien and a discharge in respect of that postponement has not been registered under this Part.

(1) In this section, "document" includes any amendment to the document.

(2) A person may, in accordance with this section, serve a demand for information in respect of a security notice that has been registered under this Part in relation to an interest or a share in an interest, where that person

(3) A demand for information, in respect of a security notice, may be served under subsection (2) by serving on the secured party under the security notice a demand notice, in the prescribed form, requiring the secured party

(4) A demand for information is served for the purposes of this section if it is sent by registered mail or delivered to the official address for service in respect of the security notice according to the records of the Registrar.

(5) A demand for information served under subsection (2) may be complied with by mailing or delivering to the person serving the demand notice a true copy of the documents referred to in the demand notice.

(6) Where a secured party fails without reasonable excuse to comply with a demand for information in respect of a security notice in relation to an interest or share in an interest served on the secured party in accordance with this section, the Supreme Court may, on application by the person who served the demand notice, make an order requiring the secured party to comply with the demand for information within the time and in the manner specified in the order.

(7) Where a secured party fails to comply with an order made under subsection (6), the Supreme Court may, on the application of the person who applied for the order,

(1) A person who may serve a demand for information in respect of a security notice in relation to an interest or a share in an interest under subsection 85(2), may

(2) The Supreme Court may, by order, on the ex parte application of a person who proposes to serve a notice to take proceedings under subsection (1), shorten the 60-day period referred to in paragraph (1)(a), and if the order is made,

(3) The Supreme Court may, on the application of a secured party served with a notice to take proceedings, extend the period for applying to the Court, whether or not that period has been shortened under subsection (2).

(4) A notice to take proceedings is served for the purposes of this section if it is sent by registered mail or delivered to the secured party at the official address for service in respect of the security notice according to the records of the Registrar.

(5) The registration of a security notice shall be cancelled on submission to the Registrar of a statutory declaration showing that

(6) Where the registration of a security notice in respect of a security interest is cancelled under subsection (5) or (7), the secured party under the security notice may not submit for registration under this Part another security notice in respect of that security interest without leave of the Supreme Court.

(7) The registration of a security notice shall be cancelled on submission to the Registrar of a certified copy of an order or judgment of the Supreme Court directing the Registrar to do so, whether as a result of proceedings taken under this Part or otherwise.

(1) In this section,

"delineation well" means a well that is so located in relation to another well penetrating an accumulation of petroleum that there is a reasonable expectation that another portion of that accumulation will be penetrated by the first-mentioned well and that the drilling is necessary in order to determine the commercial value of the accumulation; (puits de délimitation)

"development well" means a well that is so located in relation to another well penetrating an accumulation of petroleum that it is considered to be a well or part of a well drilled for the purpose of production or observation or for the injection or disposal of fluid into or from the accumulation; (puits d’exploitation)

"engineering research or feasibility study" includes work undertaken to facilitate the design or to analyze the viability of engineering technology, systems or schemes to be used in the exploration for or the development, production or transportation of petroleum on petroleum lands; (recherches ou études techniques)

"environmental study" means work pertaining to the measurement or statistical evaluation of the physical, chemical and biological elements of the lands, lakes, rivers and other surface or ground water, oceans or coastal zones, including winds, waves, tides, currents, precipitation, ice cover and movement, icebergs, pollution effects, flora and fauna both onshore and offshore, human activity and habitation and any related matters; (études de l’environnement)

"experimental project" means work or activity involving the utilization of methods or equipment that are untried or unproven; (opération expérimentale) "exploratory well" means a well drilled on a geological feature on which a significant discovery has not been made; (puits d’exploration)

"geological work" means work, in the field or laboratory, involving the collection, examination, processing or other analysis of lithological, paleontological or geochemical materials recovered from the surface or subsurface or the seabed or its subsoil of any petroleum lands, and includes the analysis and interpretation of mechanical well logs; (travaux de géologie)

"geophysical work" means work involving the indirect measurement of the physical properties of rocks in order to determine the depth, thickness, structural configuration or history of deposition of the rocks, and includes the processing, analysis and interpretation of material or data obtained from such work; (travaux de géophysique)

"geotechnical work" means work, in the field or laboratory, undertaken to determine the physical properties of materials recovered from the surface or subsurface or the seabed or its subsoil of any petroleum lands; (travaux de géotechnique)

"hydraulic fracturing fluid" means the fluid, including the applicable base fluid and all additives, used to perform a particular hydraulic fracturing treatment; (fluide de fracturation hydraulique)

"hydraulic fracturing fluid information" means, in respect of a well in which hydraulic fracturing fluid has been used,

"hydraulic fracturing treatment" means the treatment of a well by the application of hydraulic fracturing fluid under pressure in order to create or propagate fractures in a geological formation to enhance production of petroleum; (traitement de fracturation hydraulique)

"non-exclusive survey" means geophysical work that is conducted to acquire data for the purpose of sale to the public; (étude non exclusive)

"well site seabed survey" means a survey pertaining to the nature of the surface or subsurface or the seabed or its subsoil of any petroleum lands in the area of the proposed drilling site in respect of a well, and to the conditions of those lands that may affect the safety or efficiency of drilling operations; (levé marin)

"well termination date" means the date on which a well or test hole has been abandoned, completed or suspended in accordance with any applicable regulations respecting the drilling for petroleum made under the Oil and Gas Operations Act. (date d’abandon du forage)

(2) Subject to subsection (9), the Minister and the Regulator shall make available to the public any information disclosed to the Minister or the Regulator, as the case may be, pursuant to a requirement of this Act or the regulations, unless that information contains financial, commercial, scientific or technical information and

(3) At any hearing conducted under this Act or the regulations, the Regulator or the Committee, as the case may be, may take any measures and make any order that it considers necessary to ensure the confidentiality of any information likely to be disclosed at the hearing, if the Regulator or the Committee is satisfied that

(4) For the purposes of this Act and the regulations, the Regulator or the Minister may take any measures and make any order that the Regulator or the Minister considers necessary to ensure the confidentiality of any information likely to be disclosed under this Act or the regulations, if the Regulator or the Minister is satisfied that

(5) Subject to this section, information that the Minister, the Regulator or the Committee determines is confidential under subsection (2), (3) or (4) shall not knowingly be disclosed without the consent in writing of the person who provided the information, except for the purposes of the administration or enforcement of this Act or the regulations, or for the purposes of legal proceedings respecting the administration or enforcement of this Act or the regulations.

(6) No person shall be required to produce or give evidence relating to any information that the Minister, the Regulator or the Committee determines is confidential under subsection (2), (3) or (4) in connection with any legal proceedings, other than proceedings respecting the administration or enforcement of this Act or the regulations.

(7) Information that the Minister, the Regulator or the Committee determines is confidential under subsection (2), (3) or (4) may be disclosed to the Government of Canada, the government of a province or territory or any organization representing any Indigenous people of Canada, if such disclosure is made in accordance with an agreement between the Government of the Northwest Territories and that government or organization respecting resource management and revenue sharing in relation to activities respecting the exploration for or the production of petroleum carried out on any petroleum lands.

(8) The recipient of information disclosed in accordance with an agreement referred to in subsection (7) shall not disclose that information except as provided in this section.

(9) The Minister and the Regulator shall make the following information available to the public in accordance with this subsection:

(10) A report prepared by the Minister under section 98 shall include a list of the information made available to the public by the Minister under this section.

(11) The Regulator may disclose any information obtained under this Act or the regulations to the Government of the Northwest Territories, the Government of Canada, the government of a province, territory or foreign government, or to the representatives of any of their agencies, for the purposes of Northwest Territories, federal, provincial, territorial or foreign law, as the case may be, that deals primarily with a petroleum-related work or activity, including the exploration for and the management, administration and exploitation of petroleum resources, if

(12) The Regulator may disclose to the Minister information that the Regulator has disclosed or intends to disclose under subsection (11), but the Minister must not further disclose that information unless the Regulator consents in writing to that disclosure or the Minister is required by an Act of the Northwest Territories to disclose that information.

(13) Where there is a conflict or inconsistency between this section and any provision of the Access to Information and Protection of Privacy Act, this section prevails to the extent of the conflict or inconsistency.

(14) Information of the type that is described in subsection (9), that was received by the Minister or the Regulator before this subsection came into force and that is required to be made available to the public under subsection (9), shall be made available to the public by the Minister or the Regulator, as the case may be, after the expiry of the time period set out in subsection (9), unless the information has already been made available to the public by the Minister or the Regulator. SNWT 2019,c.26,s.16.

(1) Where a dispute of a prescribed class arises between two or more interest holders of an interest in respect of any operations conducted in carrying out a work or activity on petroleum lands authorized under the Oil and Gas Operations Act, and an operating agreement or other similar arrangement that extends to that work or activity is not in force or was made prior to March 5, 1982, the matters in dispute may, by order of the Minister, be submitted to arbitration conducted in accordance with the regulations.

(2) Subsection (1) applies only in respect of

(3) An order of an arbitrator made pursuant to arbitration under subsection (1) is binding on all interest holders specified in the order from the date specified in the order, and the terms and conditions of the order are deemed to be terms and conditions of the interest to which the matters relate.

(1) The Commissioner in Executive Council may make regulations for carrying out the purposes and provisions of section 92, and without restricting the generality of the foregoing, may make regulations

(2) Regulations made under subsection (1) may apply generally to all petroleum lands or any portion of those lands.

(1) Where the Minister has reason to believe that an interest owner or holder is failing or has failed to meet any requirement of or under this Act or the Oil and Gas Operations Act or any regulation made under either Act, the Minister may give notice to that interest owner or holder requiring compliance with the requirement within 90 days after the date of the notice or within such longer period as the Minister considers appropriate.

(2) Notwithstanding anything in this Act, where an interest owner or holder fails to comply with a notice under subsection (1) within the period specified in the notice and the Minister considers that the failure to comply warrants cancellation of the interest of the interest owner or holder or any share in the interest held by the holder with respect to a portion only of the petroleum lands subject to the interest, the Minister may, by order subject to section 95, cancel that interest or share, and where the interest or share is so cancelled, the petroleum lands to which that interest or share relate become Territorial reserve lands.

(1) Repealed, SNWT 2019,c.26,s.17.

(2) The Minister shall, not less than 30 days before making any order or decision or taking any action in respect of which it is expressly stated in this Act to be subject to this section, give notice in writing to the persons the Minister considers to be directly affected by the proposed order, decision or action.

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(3) Any person receiving a notice under subsection (2) may, in writing, request a hearing within the 30-day period referred to in that subsection, and on receipt of such a request, the Minister shall direct the Committee to appoint a time and place for a hearing and give notice of the hearing to the person who requested it.

(4) Any person requesting a hearing under subsection (3) may make representations and introduce witnesses and documents at the hearing.

(5) For the purposes of a hearing requested under subsection (3), the Committee has, regarding the attendance, swearing and examination of witnesses and the production and inspection of documents, all such powers, rights and privileges as are vested in a superior court of record.

(6) On the conclusion of the hearing, the Committee shall submit to the Minister its recommendations concerning the proposed order, decision or action of the Minister, together with the evidence and other material that was before the Committee.

(7) Before making any order or decision or taking any action in respect of which a hearing has been held, the Minister shall consider the recommendations of the Committee.

(8) Where an order, decision or action referred to in subsection (2) is made or taken, the Minister shall notify the person who requested a hearing in respect of the order, decision or action under subsection (3), and on request by that person, publish or make available to that person the reasons for the order, decision or action.

(9) An order, decision or action referred to in subsection (2) takes effect as of

(10) Any order, decision or action in respect of which a hearing is held under this section is subject to judicial review. SNWT 2019,c.26,s.17.

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(1) The Commissioner in Executive Council may

provisions of this Act, and without restricting the generality of the foregoing, may make regulations

(2) Subject to subsection (3), a copy of each regulation that the Commissioner in Executive Council proposes to make under this Act shall be published in the Northwest Territories Gazette, and a reasonable opportunity shall be afforded to interested persons to make representations to the Minister in respect of the proposed regulations.

(3) No proposed regulation need be published more than once under subsection (2), whether or not it is altered or amended after such publication as a result of representations made by interested persons as provided in that subsection.

(4) Subsection (2) does not apply to any regulation made under this Act by the Commissioner in Executive Council if it is registered under the Statutory Instruments Act before April 1, 2014.

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(1) The Minister may prescribe any form or any information to be given on a form that is by this Act or the regulations to be prescribed, and may include on any form so prescribed a declaration, to be signed by the person completing the form, declaring that the information given by that person on the form is, to the best of his knowledge, true, accurate and complete.

(2) Every form purporting to be a form prescribed or authorized by the Minister is deemed to be a form prescribed by the Minister under this Act, unless called in question by the Minister or some person acting for the Minister or for the Government of the Northwest Territories.

(3) Where a form or information to be given on a form is prescribed by the Minister under this Act, it is deemed not to be a regulation within the meaning of the Statutory Instruments Act.

(1) This Act applies to all matters respecting petroleum lands that were governed by the Canada Petroleum Resources Act before the coming into force of this Act.

(2) The rights and duties accrued or accruing under, and the matters governed by the Canada Petroleum Resources Act before certain frontier lands under that Act become petroleum lands under this Act, continue in effect as rights and duties under and subject to the provisions of this Act.

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(3) Any authorization in respect of frontier lands that was in force under the Canada Petroleum

force of this Act and that relates to lands that become petroleum lands under this Act, continues in force in relation to those lands as if the authorization had been issued in accordance with this Act.

(1) The Oil and Gas Land Regulations remain in force to the extent that they are consistent with this Act, until they are revoked or replaced by regulations made under this Act.

(2) Oil and Gas Leases numbered 703, 704, 705, 707-R, 708-R, 709-R, 710-R and 838, issued under the Canada Oil and Gas Land Regulations, continue in force in accordance with their terms and conditions.