Canada–Yukon Oil and Gas Accord Implementation Act

An Act respecting an accord between the Governments of Canada and the Yukon Territory relating to the administration and control of and legislative jurisdiction in respect of oil and gas Preamble WHEREAS the Government of Canada and the Government of the Yukon Territory, on May 28, 1993, entered into the Canada–Yukon Oil and Gas Accord, by which the Government of Canada undertook to recommend to Parliament the enactment of legislation for the purposes of the Accord; NOW, THEREFORE, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: Short title This Act may be cited as the Canada–Yukon Oil and Gas Accord Implementation Act. [Amendments] [Amendment] Definitions The definitions in this section apply in sections 20 to 28. existing federal interest means 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 on the transfer date; or a production licence issued on or after the transfer date by virtue of section 23. (titres fédéraux existants) transfer date means the effective date of the first order of the Governor in Council made pursuant to section 47.1 of the Yukon Act, as amended by this Act, after this section comes into force that transfers the administration and control of oil and gas to the Commissioner of the Yukon Territory. (date de transfert) The expressions adjoining area, gas, oil, oil and gas interest, territorial oil and gas minister and Yukon oil and gas laws in sections 20 to 28 have the same meaning as in section 2 of the Yukon Act, as it read immediately before the coming into force of this subsection. Continuation of existing interests 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. Application of Yukon laws 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 rights under an existing federal interest, within the meaning of subsection (4), may not be diminished; and the term of an existing federal interest may not be reduced. Cancellation or suspension 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 before the transfer date. Rights For the purposes of subsection (2), rights under an existing federal interest are the following: in the case of an exploration licence issued under the Canada Petroleum Resources Act, the rights described in paragraphs 22(a) and (b) of that Act, in respect of the lands described in the licence, and in lieu of the right described in paragraph 22(c) of that Act, the exclusive right to obtain, pursuant to Yukon oil and gas laws, production rights in respect of any part of the lands described in the licence in which oil or gas is determined, pursuant to those laws, to be commercially producible; in the case of a significant discovery licence issued under the Canada Petroleum Resources Act, 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 in lieu of the right described in paragraph 29(c) of that Act, the exclusive 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, pursuant to those laws, to be commercially producible; in the case of a production licence issued under the Canada Petroleum Resources Act, the rights described in subsection 37(1) of that Act, in respect of the lands described in the licence, and a right to the extension of the term of the licence, as provided by subsection 41(3) of that Act; and in the case of a lease issued under the Canada Oil and Gas Land Regulations, C.R.C., c. 1518, 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 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 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 Where Yukon oil and gas laws confer a right of access to lands for purposes of exploration for or production or transportation of oil or gas, and provide for the resolution of disputes between persons exercising that right and persons, other than the Governments of Canada and Yukon, 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. Territorial Lands Act Where any lands have been withdrawn from disposition pursuant to the Territorial Lands Act before the transfer date for any purposes and under any conditions, no oil and gas interest may be granted pursuant to Yukon oil and gas laws in relation to those lands, for those purposes and under those conditions, for as long as those lands remain withdrawn from disposition. Pending applications under Canada Petroleum Resources Act Where an application for a declaration of commercial discovery or a production licence under the Canada Petroleum 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 disposed 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 Where a declaration of commercial discovery is made before the transfer date under the Canada Petroleum Resources Act and is in effect on the transfer date, or is made on or after the transfer date by virtue of subsection (1), in relation to any lands that immediately before that date were subject to an existing federal interest, 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 declaration, whichever is later, and 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 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 Operations 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. Indemnification by Yukon The Yukon Government 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 Yukon Government in respect of the operation of Yukon oil and gas laws on and after the transfer date. Indemnification by Canada The Government of Canada shall indemnify the Yukon Government against any claim, action or other proceeding for damages brought against the Yukon Government, 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 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. Publication of transfer date 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 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. Laws of the Legislature Every reference to “Yukon oil and gas laws” in sections 20, 21, 22 and 25 shall be read so as to include any laws of the Legislature of Yukon in respect of oil and gas. Coming into force Sections 11, 12, 13, 16 and 18 come into force on the transfer date. [Note: Sections 11, 12, 13, 16 and 18 in force November 19, 1998, see P.C. 1998-2022.] Section 21 of the Act is repealed.