Public Lands Mineral Regulations

Regulations Respecting the Leasing of Mineral Rights on Certain Public Lands His Excellency the Governor General in Council, on the recommendation of the Minister of Natural Resources and the Treasury Board, pursuant to paragraphs 16(2)(a) and (j) of the Federal Real Property Act*, is pleased hereby to repeal the Public Lands Mineral Regulations, C.R.C., c. 1325, and to make the annexed Regulations respecting the leasing of mineral rights on certain public lands in substitution therefor. S.C. 1991, c. 50 These Regulations may be cited as the Public Lands Mineral Regulations. In these Regulations, lease means a lease granted under section 3; (bail) mineral means any naturally occurring homogeneous constituent of the lithosphere, but does not include petroleum, natural gas or related hydrocarbons, soil, peat, groundwater or non-hydrocarbon gases; (minéral) Minister means the Minister of Natural Resources. (ministre) Subject to these Regulations, the Minister may, by way of lease, grant to any person the exclusive right to search for, win and take one or more minerals, the property of the Crown in right of Canada, within, upon or under lands in any province. Subject to subsection (2), no lease shall be granted by the Minister unless the Minister has called for tenders and the grantee is the person making the highest tender. The Minister may grant a lease without calling for tenders where the grantee is the registered owner of the surface rights of the lands under which the minerals are situated. Subject to this section, every lease shall be in the form set out in Schedule I and shall provide for the payment by the lessee of a rental of not less than $1 per acre per year. A lease may provide that the lessee’s exclusive right to search for, win and take a mineral or minerals specified in the lease, is limited to a geological zone or other volume of rock within, upon or under the lands in the province described in the lease. Where a lease grants an exclusive right to search for, win and take two or more minerals, the lease may limit such right to those minerals when found in conjunction with each other. Where, in the opinion of the Minister, special circumstances make a lease in the form set out in Schedule I inappropriate, the Minister may enter into a lease that differs from the form set out in Schedule I to such extent and in such manner as in the Minister’s opinion is necessary to take into account the special circumstances, except that the rental payable under the lease shall not be less than the minimum rental specified in subsection (1); and the lease may provide for the payment of a royalty other than as provided in the form of lease set out in Schedule I, only when the Minister deems it necessary in order to implement an agreement entered into pursuant to section 6. In order to conserve mineral resources and to secure the orderly and regular development and the most efficient economic recovery thereof, the Minister may from time to time enter into an agreement with persons entitled to search for, win and take minerals for the consolidation, merger or combination of their interest, whether such purpose is accomplished by unit operations, cooperative development or joint participation. For the purpose of implementing an agreement entered into pursuant to subsection (1), the Minister may, with the consent of the lessee, amend any lease in any manner that the Minister deems necessary, except that the lease shall not be amended to provide for payment of a rental that is less than the minimum rental specified in subsection 5(1). Fees in accordance with Schedule II shall be charged for the execution of documents. THIS LEASE made in duplicate this day of , 19 BETWEEN: HER MAJESTY THE QUEEN in right of Canada (hereinafter called “Her Majesty”), OF THE FIRST PART, AND (hereinafter called “the Lessee”), OF THE SECOND PART. WITNESSETH that in consideration of the rents and royalties hereinafter reserved and subject to the covenants and agreements hereinafter contained and subject to the Public Lands Mineral Regulations, Her Majesty grants unto the Lessee, insofar as the Crown has the right to grant the same, for a period of 10 years commencing on the day of , 19, the exclusive right to search for, win and take the following minerals, namely: (hereinafter called “the designated minerals”) within, upon and under the lands situated in the Province of (hereinafter called “the said Province”), described as follows: (hereinafter called “the said lands”), the Lessee paying therefor unto Her Majesty, at the Office of the Chief: an annual rental of per acre, payable in advance on the day of in each year during the said period, the first of these payments being made on or before the execution of these presents; and a royalty in respect of any and all designated minerals taken from the said lands, calculated and payable according to the laws of Canada in force in the said Province with respect to the payment of royalties for minerals taken from Federal lands except that, where there are no such laws in force in the said Province on January 1st in any year during the term hereby created, the amount of royalty payable for that year to Her Majesty and the time or times at which it shall be paid to Her Majesty shall be determined according to the laws of the said Province in force in that year in respect of the taking of minerals from lands owned by the said Province as though the designated minerals had been taken from lands leased from Her Majesty in right of the said Province. The parties covenant and agree as follows: The Lessee will duly pay the said rental and royalty. The Lessee will use the said lands only for the purpose of searching for, winning and taking the designated minerals and for that purpose will open, use and work all wells, boreholes, mines and works made, opened or carried on by the Lessee on the said lands in such manner only as is usual and customary in skillful and proper operations of similar character when conducted by proprietors themselves on their own lands, and when working the same shall keep and preserve the said wells, boreholes, mines and works from all avoidable injury and damage, and will maintain the works, erections and fixtures therein and thereon in good repair and condition to the satisfaction of the Minister, and will make safe all abandoned openings or excavations made in connection with or for the purpose of mining or other operations on the said lands, and in such state and condition will deliver peaceable possession thereof and of the said lands to Her Majesty on the termination of this lease. The Lessee will at all times comply with the laws and regulations of the said Province, as they apply to the operations conducted under this lease. The Lessee will not enter upon or use the said lands without the permission in writing of all persons in whom are vested the surface rights of the said lands or without otherwise complying with the laws of the said Province. The Lessee will dispose of all waste material in a manner that will not harm any private or public interest. The Lessee will keep an accurate record in proper books of account of the quantity, weight, pitmouth volume and amount derived from the sale of all designated minerals taken from the said lands. The Lessee will at all reasonable times permit the Minister to examine the books referred to in section 6. Whenever requested to do so by the Minister, the Lessee will, during the period of this lease, deliver to the Minister or to any person appointed by the Minister a statement in writing verified by the affidavit or statutory declaration of the Lessee or the Lessee’s lawful attorney, setting out such information with respect to any operation or proceeding of the Lessee in respect of any well, borehole, mine or work constructed or operated under the authority of this lease as the Minister may from time to time specify. The Lessee will permit the Minister, and any assistants that the Minister considers necessary, at all reasonable times during the period of this lease, to enter into and upon any part or parts of the said lands and any buildings, structures and erections thereon, and to survey and examine the state and conditions thereof, but no unnecessary interference will be caused by the Minister or the Minister’s assistants with the carrying on of the work of the Lessee, who will aid and facilitate such entry, survey and examination by all reasonable means. The Lessee will keep Her Majesty indemnified against all actions, claims and demands that may be brought or made against Her Majesty by reason of anything done by the Lessee or the Lessee’s servants or agents in the exercise or purported exercise of the rights hereby granted. The Lessee may not transfer, sublet or part with the possession of the rights described herein, or any part of them, without the prior consent in writing of the Minister. Any transfer made under subsection (1) shall be unconditional and no sublease granted under that subsection shall contain any covenant or agreement not contained in this lease. Where a transfer under subsection (1) of the rights described herein, or any part of them, is made to a group of two or more persons or corporations, one of such persons or corporations shall be appointed (under corporate seal where the appointment is made by a corporation) by the others as their agent with full power and authority to act on their behalf for the purposes of this lease, including the authority to receive on their behalf any notice, request, direction or the like that may be given by the Minister pursuant to this lease. If the Lessee at any time makes default in the due payment of any sum or sums of money payable to Her Majesty for which the Lessee may be liable pursuant to any of the provisions of this lease, whether such default be on account of rent, royalty, interest, penalty or otherwise, at any of the days or times fixed or appointed for the payment thereof, Her Majesty may, by any person authorized by the Minister in writing, enter and distrain therefor upon the said lands or any part thereof and by distress levied upon any goods and chattels which may be found upon the said lands or any part thereof, recover any such sum or sums of money together with all costs and expenses of and incidental to any such distress. If the rent or royalty or any part thereof is in arrears and unpaid for a period of more than 30 days, or the Lessee continues or fails to rectify any default in the performance or observance of any of the covenants on the part of the Lessee herein contained for a period of 90 days from the date of the sending by mail of a notice by or on behalf of the Minister to the Lessee of such default, the Minister may, in writing, declare this lease to be terminated and thereupon this lease shall terminate. The Lessee will pay all rates, assessments and taxes imposed by the said Province or by any municipal improvement, school, irrigation or drainage district, that shall at any time be charged upon the rights to designated minerals within, upon or under the said lands. The Lessee will deliver, to the Minister at his request, a copy of each and every return, plan, daily report and other document that the Lessee is required to file or otherwise does file with the Government of the said Province. If the Lessee has fully complied with all the covenants and agreements of this lease, the Lessee may at any time surrender this lease, or with the consent of the Minister, any portion thereof. If the Lessee has fully complied with all the covenants and agreements of this lease, the Lessee may at any time within 60 days of the termination or surrender thereof remove any buildings, erections, fixtures and equipment from the said lands, except that the Lessee shall not remove or impair any of the supports, pillars, timbers, frameworks or casings that are necessary to the use, maintenance or safety of the shafts, tunnels or other openings in or underlying the said lands and the approaches thereto, or any article, matter or thing the removal of which might cause any such opening to cave in, give way or become hazardous, and in default of removal within such period of 60 days, all such tools and machinery, buildings, erections, fixtures and equipment shall be absolutely forfeited and shall become and be the property of Her Majesty. Notwithstanding subsection (1), buildings and works erected on the surface of the lands under an agreement with the owner of the surface rights, and used in connection with the general operations of the Lessee in the area and not directly in connection with the openings in the said lands, shall remain the property of the Lessee. Subsections (1) and (2) apply to any portion of the said lands surrendered pursuant to section 16. Any notice with respect to or pursuant to this lease that the Minister may desire to serve upon the Lessee shall be sufficiently served on the Lessee if sent to the Lessee. A notice sent by registered mail shall be deemed to be given at the time when in due course of mail it would be delivered to the address to which it is sent. No waiver on behalf of Her Majesty of any breach of any condition, covenant, proviso, restriction or stipulation herein contained whether negative or positive in form, shall take effect or be binding upon Her Majesty unless the same be expressed in writing under the authority of the Minister, and any waiver so expressed shall not limit or affect Her Majesty’s rights with respect to any other or future breach. If the Lessee’s goods and chattels on the said lands that are liable to distress shall be at any time seized or taken in execution, or in attachment by any creditor of the Lessee, or if the Lessee shall make any assignment for the benefit of creditors or becoming bankrupt or insolvent shall take the benefit of any Act that may be in force for bankrupt or insolvent debtors, the then current year’s rent shall immediately become due and payable and this lease shall immediately terminate. At the expiration of the said period of 10 years, if, in the opinion of the Minister, the said lands are capable of producing designated minerals in commercial quantity and the Lessee has complied with all the covenants and agreements herein contained, the Minister shall, at the request of the Lessee, renew the lease for a further term of 10 years, and the Minister may renew it thereafter as long as production is maintained to the Minister’s satisfaction for one or more further terms of 10 years upon such terms and conditions as the Minister may specify. Wherever in this lease the context so requires, the singular includes the plural and the masculine includes a body politic or corporate. In this lease: Lessee includes the heirs, executors, administrators, successors and assigns of the Lessee; Minister means the Minister of Natural Resources of the Government of Canada, Ottawa, Ontario, and any person authorized to act on the Minister’s behalf. IN WITNESS WHEREOF the Minister of Natural Resources, on behalf of Her Majesty, and have executed these presents. SIGNED, SEALED AND DELIVERED by the Minister of Natural Resources in the presence of WitnessMinister Natural Resources and by the Lessee, in the presence of Witness as to LesseeLessee Lease $10.00 Transfer of Lease 5.00 Renewal of Lease 5.00 Certified Copy of Lease 10.00