2023-2025 Report to Parliament on the Indian Oil and Gas Act, RSC 1985, c I-7

Environment status

Surface status

Continuous improvement status

Exploration (seismic) status

Royalty status

Conservation status

Moneys management status

Compliance and enforcement status

Regulations provision

1 (1)  Horizontal well means a well that has been approved by the provincial authority or a well with a horizontal section that has been approved by the provincial authority.

Descriptions/variations from province to province

Nation lands are in that province to ensure First Nations get their equitable share of the oil or gas.

Regulations provision

1 (1) provincial authority means the office, department or body that is authorized by law to make decisions, grant approvals, receive information or keep records respecting the exploration for, or the exploitation or conservation of oil and gas in the province in which the relevant First Nation lands are located.

Descriptions/variations from province to province

Defines provincial authority as the province in which the relevant First Nation lands are located.

Regulations provision

1 (1) Spacing unit means an area in a zone that is designated as a spacing unit, a spacing area, a drainage unit or other similar unit by the provincial authority.

Descriptions/variations from province to province

Each provincial jurisdiction has its own definition and description of a spacing unit. There is alignment with provincial definitions and descriptions on First Nation lands to ensure First Nations receive their equitable share of the oil or gas.

Regulations provision

6 A person is eligible to be granted a contract if

1. they are a corporation that is authorized by the laws of the relevant province to carry on business in that province or an individual who has reached the age of majority in that province;

Descriptions/variations from province to province

A company can be federally incorporated but they must be extra-provincially registered to do business in the province in which First Nation lands are located.

Regulations provision

12 (1) The boundaries of a contract area must correspond to the boundaries of the legal land divisions of the relevant province if the lands in the contract area have been surveyed, or to the anticipated boundaries of those divisions if the lands have not been surveyed.

Descriptions/variations from province to province

Each provincial jurisdiction has its own survey plans and Indian Oil and Gas Canada must align with them when First Nation lands are in that province to ensure First Nations get their equitable share of the oil or gas.

Regulations provision

21 An operator that carries out operations in connection with a well must submit the following documents and information to the Minister and the council within the following time limits:

1. before the day on which the well is spudded,
   1. a copy of the provincial licence authorizing the drilling of the well and a copy of the licence application,

Descriptions/variations from province to province

Each province has its own well licensing process, and that process applies to wells being drilled on First Nation lands in each province.

Regulations provision

21 An operator that carries out operations in connection with a well must submit the following documents and information to the Minister and the council within the following time limits:

6. within 30 days after the day on which the well is surface abandoned, all daily operations reports of the cut and cap operation and a copy of the final abandonment report submitted to the provincial authority.

Descriptions/variations from province to province

Each province has its own well licensing reporting requirements and Indian Oil and Gas Canada requires the submission of provincial reports for wells being drilled on First Nation lands.

Regulations provision

27 (1) Every contract granted by the Minister under these Regulations includes the holder's undertaking to comply with

3. the laws of the relevant province, as amended from time to time, that relate to the environment or to the exploration for, or the exploitation, treatment, processing or conservation of, oil and gas, including equitable production, if those laws are not in conflict with the Act or any regulations or orders made under that Act.

Descriptions/variations from province to province

These laws vary from province to province and apply to First Nation lands in the province in which it is located.

Regulations provision

28 A person may carry out exploration work on First Nation lands if they

2. have obtained from the provincial authority an approval that is required to carry out exploration work in the province; and

Descriptions/variations from province to province

Provincial requirements apply to First Nation lands in the province where they are located.

Regulations provision

29 (2) The application must be submitted to the Minister in the prescribed form and include

2. if the approval of the provincial authority is required to carry out exploration work, a statement that the approval has been received;

Descriptions/variations from province to province

Each province has their own exploration licence application process, and that licence is required to conduct seismic on First Nation lands in that province.

Regulations provision

33 (2) The report must comply with any exploration reporting requirements of the relevant province and must include, in addition to the documents and information referred to in paragraph 32 (2) (f),

Descriptions/variations from province to province

Each province has exploration reporting requirements and Indian Oil and Gas Canada requires the submission of provincial reports for wells being drilled on First Nation lands.

Regulations provision

48 (1) If the lands in a permit area are located in a province set out in column 1 of the table to Schedule 2 and in a region set out in column 2, the initial term of the permit is the term set out in column 3. Otherwise, the initial term is five years.

Descriptions/variations from province to province

Each province has its own initial term provisions for subsurface permits. This provision levels the playing field between the provincial lands and First Nation lands.

Regulations provision

56 (1) A subsurface contract holder may apply to the Minister for approval of a bitumen recovery project if they have achieved the minimum level of evaluation and have applied to the provincial authority for approval of the project.

Descriptions/variations from province to province

An applicant is required to complete a sufficient evaluation to earn the right to submit an application and they must have submitted their application for the project to the provincial authority.

Regulations provision

57 (1)

3. A statement that the subsurface contract holder has applied for or received the provincial authority's approval of the project.

Descriptions/variations from province to province

Each province has their own rule set for bitumen projects and First Nation lands in that province must align to attract investment.

Regulations provision

58 (1)

4. the provincial authority has approved The project; and

Descriptions/variations from province to province

Prior to review and approval of a bitumen recovery project, the applicant must have provincial approval.

Regulations provision

63 (1)

2. that is subject, in whole or in part, to a unit agreement that includes lands in which a productive well is located, or to an oil or gas storage agreement that has been approved by the provincial authority;

Descriptions/variations from province to province

Lands qualify for continuance if the lands a) form part of a unit agreement and b) are included in an oil or gas storage agreement. The rules vary by province so First Nation lands must align with the associated provincial jurisdiction.

Regulations provision

63 (1)

4. that is subject to a project, other than a bitumen recovery project, which has been approved by the provincial authority and includes lands in which a productive well is located;

Descriptions/variations from province to province

There are secondary and tertiary recovery methods for oil that are approved by each provincial jurisdiction and if it is, the lands in the lease qualify for continuance. This does not apply to bitumen recovery projects.

Regulations provision

77 (1) Unless a surface lease provides otherwise, the holder must renegotiate the amount of the rent with the Minister, the council and any First Nation member in lawful possession of lands in the lease area at the end of the shorter of

2. any period fixed by the laws of the relevant province for the renegotiation of surface lease in lands that are not First Nation lands.

Descriptions/variations from province to province

Surface leases are reviewed for rent increases every five years or as per provincial requirements of the province that First Nation lands are located within.

Regulations provision

94 (3) If, on the day on which an offset notice is required to be sent, any information about a triggering well is confidential under the laws of the relevant province

Descriptions/variations from province to province

Wells are classified as developmental or confidential. Confidential wells require certain information to be kept confidential and not be included in the offset notice. The level of confidential information varies from province to province.

Regulations provision

96 (1)

4. the offset zone of the triggering well has been abandoned, as shown in the records of the provincial authority;

Descriptions/variations from province to province

The definition of abandoned varies from province to province, and First Nation lands must align with the province it is located in.

Regulations provision

96 (1)

6. the triggering well is subject to a storage agreement that has been approved by the provincial authority.

Descriptions/variations from province to province

There is no obligation to pay compensatory royalty where the well on provincial lands (outside of First Nation lands) is part of a storage agreement project approval.

Regulations provision

96 (3) A holder is not obliged to pay a compensatory royalty if, during the offset period, they surrender their rights or interest down to the base of the offset zone in the spacing unit to which the offset notice applies, except for any rights or interests in a zone from which a well is productive or that is subject to a unit agreement or to a storage agreement that has been approved by the provincial authority.

Descriptions/variations from province to province

Requirements for offset notices on First Nation lands align with the associated provincial jurisdiction.

Regulations provision

97 (3) For the purpose of calculating the monthly compensatory royalty,

1. The volume of oil, gas or condensate to be used in the royalty formula is the volume of oil, raw gas or condensate that was produced in the month by the triggering well, as shown by the records of the provincial authority; and

Descriptions/variations from province to province

Provincial jurisdictions have different definitions for oil, gas, condensate and volume, and those factors apply to First Nation lands in that province when calculating compensatory royalty.

Regulations provision

97 (3) For the purpose of calculating the monthly compensatory royalty,

2. the price to be used, in respect of that month, is
   1. in the case of oil, in Saskatchewan, the price indicated in the Monthly Crude Oil Royalty/Tax Factor History, published by the Ministry of Energy and Resources, and, in the other provinces, the monthly par price for light, medium, have or ultra heavy oil, as the case may be, published by Alberta's Department of Energy,

Descriptions/variations from province to province

Each province has its own price bulletins, and this sets the Saskatchewan Bulletin and applies the Alberta Bulletin to all other provinces.

Regulations provision

97 (3) For the purpose of calculating the monthly compensatory royalty,

2. the price to be used, in respect of that month, is
   2. in the case of gas, in Saskatchewan, the price indicated in the Monthly Natural Gas Royalty/Tax Factor History, published by the Ministry of Energy and Resources, and, in the other provinces, the Gas Reference Price in the monthly information letter Natural Gas Royalty Prices and Allowances, published by Alberta's Department of Energy, and

Descriptions/variations from province to province

Each province has its own price bulletins, and this sets the Saskatchewan Bulletin and applies the Alberta Bulletin to all other provinces.

Regulations provision

97 (3) For the purpose of calculating the monthly compensatory royalty,

2. the price to be used, in respect of that month, is
   2. in the case of condensate, the Pentanes Plus Reference Price in the monthly information letter Natural Gas Royalty Prices and Allowances, Published by Alberta's Department of Energy.

Descriptions/variations from province to province

Each province has its own price bulletins, and this sets the Saskatchewan bulletin and applies Alberta bulletins to all other provinces.

Regulations provision

100 (1) The obligation to pay a compensatory royalty ends if the subsurface contract holder,

1. surrenders their rights or interests down to the base of the offset zone in the spacing unit to which the offset notice applies, except for any rights or interests in a zone from which a well is productive or that is subject to a unit agreement or to a storage agreement that has been approved by the provincial authority.

Descriptions/variations from province to province

In relation to the lands in the leases, an obligation to pay compensatory royalty would end if there were a:

1. producing agreement,
2. unit agreement, or
3. storage agreement.

Each agreement has its own set of rules in each province.

Regulations provision

103 (2) The application for approval must be in the prescribed form be accompanied by a copy of the provincial authority's approval of the service well and include the following information:

1. a description of the well;
2. detailed description of the proposed uses of the well and the proposed uses of any related facilities; and
3. the bonus and the annual compensation to be paid for any disposal rights.

Descriptions/variations from province to province

Prior to applying to Indian Oil and Gas Canada, the initial review and approval of a well to be used as a service well is required by the provincial authority and each First Nations' lands conforms with the associated provincial jurisdiction.

Regulations provision

107 (1) If a well is producing from more than one spacing unit and the lands from which it is producing are not entirely First Nation lands or are not subject to a single contract, the Minister must determine the percentage of production from the well to be allocated to the First Nation lands and to each contract, based on the criteria used by the provincial authority in making such allocations.

Descriptions/variations from province to province

Each oil well and  gas well is given a production spacing unit. The lessee/contract holder company must have under lease 100% of the spacing unit. Percentages can be shared with provincial lands. This means that the Minister will use the same criteria as the associated province in which First Nation lands are located within.

Regulations provision

78 If the lands in a surface contract area are no longer used for the uses for which the contract was granted, the holder must abandon any well and facilities in the area and remediate and reclaim those lands.

Descriptions/variations from province to province

The provincial methods for liability clean up vary to some degree (which apply on First Nation lands) to reduce the number of oil and gas liabilities. Alberta has a closure nomination program, British Columbia has a Dormancy Regulation, and Saskatchewan has the Financial Security and Site Closure Regulations Section 78 implementation is currently under policy development.

Descriptions/variations from province to province

In some cases, the zones are defined differently throughout the provinces and by industry. In the provinces, the zones are identified by the geological surveyors of that province, and not laid out in provincial regulation. Example: Alberta Geologic Table of Formations.

Descriptions/variations from province to province

In some cases, the zones are defined differently throughout the provinces and by industry. In the provinces, the zones are identified by the geological surveyors of that province, and not laid out in provincial regulation. Example: Alberta Geologic Table of Formations.