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Bill C-50

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RELATED AMENDMENTS

R.S., c. O-7; 1992, c. 35, s. 2

Canada Oil and Gas Operations Act

11. (1) Paragraph 3(a) of the Canada Oil and Gas Operations Act is replaced by the following:

    (a) the Northwest Territories and Sable Island, and

(2) Section 3 of the Act is amended by adding the following after paragraph (b):

other than of oil and gas in the adjoining area, as defined in section 2 of the Yukon Act.

1994, c. 43, s. 90

12. Subsections 5.01(2) to (4) of the Act are replaced by the following:

Restriction

(2) Where a person occupies land in an area to which this Act applies under a lawful right or title, other than an authorization under paragraph 5(1)(b) or an interest as defined in section 2 of the Canada Petroleum Resources Act, no person may enter on or use the surface of that land for a purpose mentioned in subsection (1) except with the consent of the occupier or, where consent has been refused, in accordance with the terms and conditions of a decision of an arbitrator made in accordance with the regulations.

R.S., c. 36 (2nd Supp.)

Canada Petroleum Resources Act

13. (1) Paragraph (a) of the definition ``frontier lands'' in section 2 of the Canada Petroleum Resources Act is replaced by the following:

      (a) the Northwest Territories or Sable Island, or

(2) The definition ``frontier lands'' in section 2 of the Act is amended by adding the following after paragraph (b):

    but does not include the adjoining area, as defined in section 2 of the Yukon Act;

14. The Act is amended by adding the following after section 117:

Division of exploration licence 329

117.1 (1) Exploration licence numbered 329, in effect on the coming into force of this section, is divided into two licences, one applicable to the portion of the lands described in that licence that is landward of the northern limit of the adjoining area described in Schedule II to the Yukon Act and one applica ble to the portion of those lands that is seaward of that northern limit.

Division of significant discovery licence 12

(2) Significant discovery licence numbered 12, in effect on the coming into force of this section, is divided into two licences, one applicable to the portion of the lands described in that licence that is situated in the Yukon Territory and one applicable to the portion of those lands situated in the Northwest Territo ries.

Division of oil and gas lease 411-68

(3) Oil and gas lease numbered 411-68, in effect on the coming into force of this section, is divided into two leases, one applicable to the portion of the lands described in that lease that is situated in the Yukon Territory and one applicable to the portion of those lands situated in the Northwest Territories.

Division of oil and gas lease 442-R-68

(4) Oil and gas lease numbered 442-R-68, in effect on the coming into force of this section, is divided into two leases, one applicable to the portion of the lands described in that lease that is situated in the Yukon Territory and one applicable to the portion of those lands situated in the Northwest Territories.

Registration of divided interests

(5) The Registrar referred to in section 87 may assign new numbers, in the register established under that section, to the interests resulting from the division of an interest under this section.

Interpreta-
tion

(6) The division of an interest and the assignment of new numbers under this section shall be construed as a continuation of that interest and not as the issuance of new interests.

1994, c. 43

Yukon Surface Rights Board Act

15. Subparagraph 40(c)(ii) of the French version of the Yukon Surface Rights Board Act is replaced by the following:

      (ii) concernant les circonstances pouvant justifier la dérogation au tarif.

16. Section 65 of the Act is replaced by the following:

Order resolving disputes

65. In the case of a dispute respecting access to non-settlement land between

    (a) a person, other than Government, who has an interest or right in the surface of the land, and

    (b) a person, other than Government, who has, in relation to a mineral right, a right of access on the land under

      (i) any provision of an ordinance of the Yukon Territory identified in regulations made pursuant to paragraph 78(f.1), or

      (ii) section 17 of the Yukon Placer Mining Act or section 12, as restricted by section 14, of the Yukon Quartz Mining Act,

the Board shall, on application by either of those persons , make an order interpreting that provision or that section in relation to the right of access for purposes of the dispute .

17. Subsection 75(1) of the French ver sion of the Act is replaced by the following:

Révision par l'Office

75. (1) Sous réserve du paragraphe (2), l'Office peut réviser toute ordonnance qu'il a rendue, même en vertu du présent article, à la demande de toute partie à l'instance y ayant donné lieu ou des ayants droit d'une telle partie visés à l'article 72, lorsque les faits et circonstances à l'origine de l'ordonnance paraissent avoir évolué de manière impor tante ; il rend alors l'une des décisions sui vantes :

    a) s'il est convaincu que l'évolution des faits et circonstances invoquée est impor tante et justifie la modification demandée, il modifie l'ordonnance en conséquence, à moins que la modification n'ait des réper cussions défavorables importantes pour la première nation ou ses terres désignées, auquel cas il annule l'ordonnance et en rend une nouvelle en conséquence;

    b) dans le cas contraire, il rejette la demande.

18. Section 78 of the Act is amended by adding the following after paragraph (f):

    (f.1) identifying, for the purposes of section 65, any provision of an ordinance of the Yukon Territory that confers a right of access for purposes of the exercise of a mineral right relating to oil and gas;

TRANSITIONAL AND COMING INTO FORCE

Interpretation

Definitions

19. The definitions in this section apply in sections 20 to 28.

``adjoining area''
« zone adjacente »

``adjoining area'' has the meaning provided by section 2 of the Yukon Act.

``existing federal interest''
« titres fédéraux existants »

``existing federal interest'' means

      (a) an interest, within the meaning of section 2 of the Canada Petroleum Resources Act, in oil and gas in the Yukon Territory or the adjoining area in effect immediately before the trans fer date; or

      (b) a production licence issued on or after the transfer date by virtue of section 22.

``transfer date''
« date de transfert »

``transfer date'' means the effective date of the first order of the Governor in Council made pursuant to section 47.1 of the Yu kon Act, as amended by this Act, after this section comes into force that transfers the administration and control of oil and gas in the Yukon Territory or the adjoining area to the Commissioner of the Yukon Territory.

``Yukon oil and gas laws''
« ordonnance s pétrolières et gazières »

``Yukon oil and gas laws'' means ordinances made in respect of oil or gas pursuant to section 17 or 17.1 of the Yukon Act, as amended by this Act.

Transitional

Continuation of existing interests

20. (1) Every existing federal interest remains in effect on and after the transfer date until it expires or is cancelled, until it is surrendered by the holder of the interest or until otherwise agreed to by the holder of the interest and the territorial oil and gas minister, as defined in section 2 of the Yukon Act.

Application of Yukon laws

(2) On and after the transfer date and subject to subsection (3), Yukon oil and gas laws apply in respect of every existing federal interest, except that

    (a) rights under an existing federal inter est, within the meaning of subsection (4), may not be diminished; and

    (b) the term of an existing federal interest may not be reduced.

Cancellation or suspension

(3) An existing federal interest may be cancelled or rights under it suspended, in accordance with Yukon oil and gas laws, if the interest could have been cancelled or the rights suspended in like circumstances prior to the transfer date.

Rights

(4) For the purposes of subsection (2), rights under an existing federal interest are the following:

    (a) in the case of an exploration licence issued under the Canada Petroleum Re sources Act,

      (i) the rights described in paragraphs 22(a) and (b) of that Act, in respect of the lands described in the licence, and

      (ii) in lieu of the right described in paragraph 22(c) of that Act, the exclu sive right to obtain, pursuant to Yukon oil and gas laws, production rights in respect of any part of the lands de scribed in the licence in which oil or gas is determined, pursuant to those laws, to be commercially producible;

    (b) in the case of a significant discovery licence issued under the Canada Petro leum Resources Act,

      (i) the rights described in paragraphs 29(a) and (b) of that Act, in respect of the lands described in the licence other than any part of the lands for which a determination has been made under Yukon oil and gas laws to the effect that there is no potential for sustained production of oil or gas, and

      (ii) in lieu of the right described in paragraph 29(c) of that Act, the exclu sive right to obtain, pursuant to Yukon oil and gas laws, production rights in respect of any part of those lands in which oil or gas is determined, pur suant to those laws, to be commercially producible;

    (c) in the case of a production licence issued under the Canada Petroleum Re sources Act,

      (i) the rights described in subsection 37(1) of that Act, in respect of the lands described in the licence, and

      (ii) a right to the extension of the term of the licence, as provided by subsec tion 41(3) of that Act; and

    (d) in the case of a lease issued under the Canada Oil and Gas Land Regulations, C.R.C., c. 1518,

      (i) the rights described in section 58 of those Regulations, as that section read on the transfer date, in respect of the lands described in the lease, and

      (ii) a right to the reissuance of the lease, as provided by section 63 of those Regulations, as that section read on the transfer date.

Confirmation of interests by Yukon laws

(5) Yukon oil and gas laws must include provisions corresponding to the provisions of this section for as long as any existing federal interest remains in effect.

Exercise of access rights

21. Where Yukon oil and gas laws confer a right of access to lands for purposes of exploration for or production or trans portation of oil and gas, and provide for the resolution of disputes between persons ex ercising that right and persons, other than the Governments of Canada and the Yukon Territory, having rights or interests in the surface of those lands, those laws shall provide for such resolution to be by means of access orders of the Yukon Surface Rights Board made in accordance with the Yukon Surface Rights Board Act.

Pending applications under Canada Petroleum Resources Act

22. (1) Where an application for a decla ration of commercial discovery or a pro duction licence under the Canada Petro leum Resources Act in relation to lands in the Yukon Territory or the adjoining area was made but not disposed of before the transfer date, the application shall be dis posed of in accordance with that Act as if it continued to apply in respect of those lands after the transfer date.

Applications made after transfer date

(2) Where a declaration of commercial discovery under the Canada Petroleum Resources Act is in effect immediately before the transfer date, or is made on or after the transfer date by virtue of subsec tion (1), in relation to any lands that immediately before that date were subject to an existing federal interest,

    (a) the owner of that interest may apply for a production licence in relation to those lands in accordance with that Act at any time within 30 days after the transfer date or after the making of the declara tion, whichever is later, and

    (b) an application so made shall be disposed of in accordance with that Act,

as if that Act continued to apply in respect of those lands after the transfer date.

Pending applications under Yukon Surface Rights Board Act

23. Where an application was made but not disposed of before the transfer date under section 65 of the Yukon Surface Rights Board Act in respect of a mineral right with a right of access under subsection 5.01(1) of the Canada Oil and Gas Opera tions Act, the application shall be disposed of as if section 65 of the Yukon Surface Rights Board Act continued to apply in respect of the right of access after the transfer date.

Indemnifi-
cation by Yukon

24. (1) The Government of the Yukon Territory shall indemnify the Government of Canada against any claim, action or other proceeding for damages brought against the Government of Canada, or any of its employees or agents, arising out of any acts or omissions of the Government of the Yukon Territory in respect of the operation of Yukon oil and gas laws on and after the transfer date.

Indemnifi-
cation by Canada

(2) The Government of Canada shall indemnify the Government of the Yukon Territory against any claim, action or other proceeding for damages brought against the Government of the Yukon Territory, or any of its employees or agents, after the transfer date in respect of the operation of the Canada Oil and Gas Operations Act, the Canada Petroleum Resources Act or Part II.1 of the National Energy Board Act before the transfer date.

Exception

(3) A Government is not entitled to be indemnified under this section by the other Government if it has settled the claim, action or proceeding without the approval of the other Government.

Transfer of oil and gas

25. No order made pursuant to section 47.1 of the Yukon Act, as amended by this Act, that transfers the administration and control of oil and gas in the Yukon Territory or the adjoining area may come into force before July 1, 1997.

Publication of transfer date

26. The Minister of Indian Affairs and Northern Development shall cause notice of the transfer date to be published in the Canada Gazette.

Coming into force of Yukon oil and gas laws

27. Yukon oil and gas laws may be made at any time after this Act has been assented to, notwithstanding the application of the Canada Petroleum Resources Act and the Canada Oil and Gas Operations Act in the Yukon Territory until the transfer date, but those laws have no effect before the transfer date.

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