Acts and Regulations

2016-16 - Oil and Natural Gas Act

Full text
NEW BRUNSWICK
REGULATION 2016-16
under the
Oil and Natural Gas Act
(O.C. 2016-37)
Filed February 25, 2016
1 Section 2 of New Brunswick Regulation 2001-66 under the Oil and Natural Gas Act is amended
(a) by repealing the definition “grid area”;
(b) by adding the following definition in alphabetical order:
“producing well” means a well for which a licensee or a lessee, as the case may be, is required to pay royalties for oil or natural gas, or was required to pay royalties for oil or natural gas at any time during the previous 12 months, but does not include a well that produces oil for the purposes of a production test;(puits producteur)
2The heading “Loyer annuel en vertu du permis de recherche” preceding section 7 of the French version of the Regulation is repealed and the following is substituted:
Loyer applicable au permis de recherche
3Section 7 of the Regulation is repealed and the following is substituted:
7(1)Subject to subsection (7), the annual rental fee prescribed in Schedule A for different sections of a licence area is due and payable in the second year and third year of the term of the licence to search and in each year of an extended period of a licence to search at least 30 days before the anniversary date of the granting of the licence to search.
7(2)Any annual rental fee that is paid before the date of the commencement of this section for the year of the term of the licence to search in progress on that date and that relates to a section of a licence area on which there are no producing wells shall be refunded on a pro-rated basis for the period beginning on the commencement of this section and ending on the next anniversary date of the granting of the licence to search, both dates inclusive.
7(3)On the request of the Minister, a licensee shall file with the Minister a record containing any information the Minister may require with respect to a well located on a section of the licence area.
7(4)If a well ceases to be a producing well on a section of a licence area that does not have any other producing wells located on it, the licensee shall, within 10 days after the well ceased to be a producing well, notify the Minister in writing that there are no producing wells located on that section.
7(5)If, on or after the commencement of this section, a well ceases to be a producing well on a section of a licence area that does not have any other producing wells located on it, any annual rental fee paid for the section for the year of the term of the licence to search in progress on the date the well ceased to be a producing well shall be refunded on a pro-rated basis for the period beginning on that date and ending on the next anniversary date of the granting of the licence to search, both dates inclusive.
7(6)If a well becomes a producing well on a section of a licence area that, immediately before the well became a producing well, had no producing wells located on it, the licensee shall, within 10 days after the well becomes a producing well, notify the Minister in writing that a producing well is located on that section.
7(7)If a well becomes a producing well on a section of a licence area that, immediately before the well became a producing well, had no producing wells located on it, the licensee shall, within 60 days after the well becomes a producing well, pay a pro-rated portion of the annual rental fee for the section for the period beginning on the date the well becomes a producing well and ending on the next anniversary date of the granting of the licence to search, both dates inclusive.
4Section 16 of the Regulation is repealed and the following is substituted:
16(1)Subject to subsection (7), the annual rental fee prescribed in Schedule A for different sections of a lease area is due and payable in the second year and subsequent years of the term of the lease and in each year of an extended period of a lease at least 30 days before the anniversary date of the granting of the lease.
16(2)Any annual rental fee that is paid before the date of the commencement of this section for the year of the term of the lease in progress on that date and that relates to a section of a lease area on which there are no producing wells shall be refunded on a pro-rated basis for the period beginning on the commencement of this section and ending on the next anniversary date of the granting of the lease, both dates inclusive.
16(3)On the request of the Minister, a lessee shall file with the Minister a record containing any information the Minister may require with respect to a well located on a section of the lease area.
16(4)If a well ceases to be a producing well on a section of a lease area that does not have any other producing wells located on it, the lessee shall, within 10 days after the well ceased to be a producing well, notify the Minister in writing that there are no producing wells located on that section.
16(5)If, on or after the commencement of this section, a well ceases to be a producing well on a section of a lease area that does not have any other producing wells located on it, any annual rental fee paid for the section for the year of the term of the lease in progress on the date the well ceased to be a producing well shall be refunded on a pro-rated basis for the period beginning on that date and ending on the next anniversary date of the granting of the lease, both dates inclusive
16(6)If a well becomes a producing well on a section of a lease area that, immediately before the well became a producing well, had no producing wells located on it, the lessee shall, within 10 days after the well becomes a producing well, notify the Minister in writing that a producing well is located on that section.
16(7)If a well becomes a producing well on a section of a lease area that, immediately before the well became a producing well, had no producing wells located on it, the lessee shall, within 60 days after the well becomes a producing well, pay a pro-rated portion of the annual rental fee for the section for the period beginning on the date the well becomes a producing well and ending on the next anniversary date of the granting of the lease, both dates inclusive.
5Section 18.2 of the Regulation is repealed and the following is substituted:
18.2(1)Subject to subsection (7), the annual rental fee prescribed in Schedule A for different sections of a lease area is due and payable in the second year and subsequent years of the term of the consolidated lease at least 30 days before the anniversary date of the granting of the consolidated lease.
18.2(2)Any annual rental fee that is paid before the date of the commencement of this section for the year of the term of the consolidated lease in progress on that date and that relates to a section of a lease area on which there are no producing wells shall be refunded on a pro-rated basis for the period beginning on the commencement of this section and ending on the next anniversary date of the granting of the consolidated lease, both dates inclusive.
18.2(3)On the request of the Minister, a lessee shall file with the Minister a record containing any information the Minister may require with respect to a well located on a section of the lease area.
18.2(4)If a well ceases to be a producing well on a section of a lease area that does not have any other producing wells located on it, the lessee shall, within 10 days after the well ceased to be a producing well, notify the Minister in writing that there are no producing wells located on that section.
18.2(5)If, on or after the commencement of this section, a well ceases to be a producing well on a section of a lease area that does not have any other producing wells located on it, any annual rental fee paid for the section for the year of the term of the lease in progress on the date the well ceased to be a producing well shall be refunded on a pro-rated basis for the period beginning on that date and ending on the next anniversary date of the granting of the consolidated lease, both dates inclusive.
18.2(6)If a well becomes a producing well on a section of a lease area that, immediately before the well became a producing well, had no producing wells located on it, the lessee shall, within 10 days after the well becomes a producing well, notify the Minister in writing that a producing well is located on that section.
18.2(7)If a well becomes a producing well on a section of a lease area that, immediately before the well became a producing well, had no producing wells located on it, the lessee shall, within 60 days after the well becomes a producing well, pay a pro-rated portion of the annual rental fee for the section for the period beginning on the date the well becomes a producing well and ending on the next anniversary date of the granting of the consolidated lease, both dates inclusive.
6Section 3 of Schedule A of the Regulation is repealed and the following is substituted:
3The rental fee for each year of a licence to search or a lease is as follows:
(a)rental of a licence area
 
(i)for those sections of a licence area on which one or more producing wells are located
$0.15 per hectare per year
 
(ii)for those sections of a licence area on which there are no producing wells
$0 per hectare per year
 
(b)rental of a lease area
 
(i)for those sections of a lease area on which one or more producing wells are located
$4 per hectare for each year
 
(ii)for those sections of a lease area on which there are no producing wells
$0 per hectare for each year