3(1)All bituminous shale, bituminous shale products and bituminous shale by-products, are hereby declared to be, and to have been at all times prior hereto property separate from the soil and vested in the Crown in right of the Province and no other lease, licence, grant or other disposition of mines, minerals or oil and natural gas shall be construed as to include rights to bituminous shale, bituminous shale products and bituminous shale by-products, except any licence agreements granted by the Crown under the authority of the Bituminous Shale Act, chapter B-4 of the Revised Statutes, 1973.

3(2)Notwithstanding anything to the contrary in any licence agreement issued under the Bituminous Shale Act, chapter B-4 of the Revised Statutes 1973, all those licence agreements are subject to this Act and the regulations.

4(1)No person shall explore for, or cause to be explored for, bituminous shale unless he has a geophysical licence, a licence to search, a development permit or a lease.

4(2)No person shall

5(1)The provisions of the Oil and Natural Gas Act and the regulations thereunder with respect to the drilling of a well apply, mutatis mutandis, to a bituminous shale evaluation well.

5(2)Notwithstanding subsection (1), the Minister may vary the requirements for a bituminous shale evaluation well, where in his opinion, the conditions warrant.

7(1)No employee of the Province responsible for the administration and enforcement of this Act and the regulations shall have monetary interest of any description, directly or indirectly, in any bituminous shale property in the Province, or in any business engaged in any phase of the bituminous shale industry in the Province.

7(2)An employee who violates or fails to comply with subsection (1) commits an offence punishable under Part II of the Provincial Offences Procedure Act as a category F offence and in addition to any sentence that may be imposed, the employee shall forfeit the employee’s office.

8(1)A summons to witness shall not issue out of any court requiring the attendance of the Minister or any employee of the Province in his official capacity under this Act, nor shall any document in his official custody or possession be produced without an order of the court or a judge thereof.

8(2)Any employee responsible for the administration and enforcement of this Act shall not disclose any information obtained by him in his official capacity that the Minister certifies is not in the public interest to be divulged.

10(1)No licensee, permittee, lessee or geophysical licensee shall enter on and use, or cause entry upon any lands other than Crown lands, for the purpose of exploring in any manner whatsoever for bituminous shale, or for the doing of any other act thereon, unless he has obtained the right to enter and use that land either

10(2)Subject to this Act and the regulations a licensee, permittee, lessee, or geophysical licensee, or his agent, has the right to the use and possession of whatever part of the surface of the licence area, permit area or lease area that is necessary for the purpose of exploring for bituminous shale or for conducting bituminous shale production operations.

10(3)A person who enters upon Crown land for the purpose of exploring for bituminous shale or conducting bituminous shale production operations is liable to pay compensation to the Crown in the right of the Province for any loss or damage caused by reason of the entry or operations, or both, in an amount to be determined by agreement, or failing an agreement by The Court of King’s Bench of New Brunswick or any judge thereof acting under Part II of the Expropriation Act, on application by the Minister, which amount, if any, shall upon determination be paid to the Minister of Finance and Treasury Board.

10(4)A person who enters upon any land other than Crown land for the purpose of exploring for bituminous shale or conducting bituminous shale production operations is liable to pay compensation to a person having an interest therein for any loss or damage to land or chattels caused by reason of the entry, occupation or operation, and if the parties cannot agree as to the amount of the compensation, the amount shall be determined by The Court of King’s Bench of New Brunswick or any judge thereof acting under Part II of the Expropriation Act on application by either of the parties.

11(1)A licensee, a geophysical licensee, a permittee or a lessee who is unable to make an agreement with the owner, tenant or occupant of private land for the right to enter and use the land covered by his licence to search, approved geophysical plan, permit or lease, or any part thereof, may apply in writing to the Minister for a special order to enter and use such land.

11(2)No application shall be made under subsection (1) unless the applicant has served upon the owner, tenant or occupier of the land, five clear days prior to the making of the application, written notice of the intention to make the said application.

11(3)Upon receipt by the Minister of an application and of evidence that notice of the application has been served and delivered as required by subsection (2), the Minister

11(4)If the parties have not agreed to the amount of compensation at the time of the granting of the special order, the determination of the compensation shall be referred to The Court of King’s Bench of New Brunswick or any judge thereof acting under Part II of the Expropriation Act by either party.

11(5)Notwithstanding subsection (3), the special order is effective upon the date of issue, and the Minister may require the licensee, geophysical licensee, permittee or lessee to give security in the form as prescribed in section 34 to ensure payment of the compensation agreed to or to be determined under subsection (4) before entry may be effected on the land subject to that special order.

11(6)Where there are several owners, tenants or occupants of the land to be entered and used and there are in the opinion of the Minister, special difficulties in effecting service of any notice under this section, the Minister may order substituted service in such manner as he determines.

12(1)All provisions and regulations of the Oil and Natural Gas Act with respect to geophysical exploration and the granting of geophysical licenses apply mutatis mutandis to any geophysical exploration for bituminous shale under this Act and to the granting of geophysical licences.

12(2)A person who performs geophysical exploration for the purposes of bituminous shale shall not interfere with the operations of any holder of a mining or mineral claim or mining lease under the Mining Act, any holder of a mining licence or mining lease continued under the Mining Act, any holder of a mining right granted under the Ownership of Minerals Act or section 25 of the Mining Act or any predecessor of that section, or any licensee or lessee under the Oil and Natural Gas Act, of the areas upon which the activities are conducted.

13(1)Subject to subsections (2) and (3), the Minister may in accordance with the regulations grant a licence to search for bituminous shale within areas of the Province specified in the licence to search upon such terms and conditions as are prescribed by the regulations.

13(2)Not more than one such licence to search shall be granted and be in force at the same time covering the same area or part of an area, nor shall any such licence to search be granted for land for which a permit or a lease is in force.

13(3)Before granting any licence to search the Minister shall call for tenders for the purchase of the licence to search in the manner prescribed by regulation.

15(1)A licence to search is valid for an initial term of three years and may be renewed by the Minister in accordance with the regulations at the licensee’s option for a maximum of two consecutive annual periods with each renewal subject to such terms and conditions as are prescribed by the regulations.

15(2)An application for renewal of a licence to search shall be made in writing to the Minister at least thirty days prior to the expiry date of the licence to search or any renewal thereof and shall be accompanied by the fee and deposit prescribed by regulation.

16(1)The licensee shall each year during the term and continuation of the licence to search do or cause to be done on the area for which the licence to search was granted, exploratory work to the satisfaction of the Minister in an amount prescribed by regulation.

16(2)Before a licence to search is granted, the Minister shall require the licensee to deposit with the Minister of Finance and Treasury Board in accordance with section 34 an amount at least equivalent to the work requirement prescribed by regulation for the initial term of the licence to search.

16(3)Every renewal of a licence to search is subject to the licensee maintaining his deposit with the Minister in an amount at least equivalent to the work requirement for the term of the renewal period.

17(1)When a licensee wishes to conduct in his licence area bituminous shale development work up to and including pilot plant tests or schemes, he may apply to the Minister in the manner prescribed by regulation for a development permit, the area of which is to include any pilot operation site.

17(2)The licensee may select to be included in his development permit all of his licence area, or a portion of his licence area which shall consist of a single block.

17(3)The Minister may in accordance with the regulations grant a development permit upon such terms and conditions as are prescribed by the regulations.

17(4)Notwithstanding subsection 15(1), upon the granting of a development permit, the permittee’s licence to search expires with respect to the permit area.

17(5)A development permit is valid for an initial term of one year and may be renewed by the Minister in accordance with the regulations at the permittee’s option for a maximum of four consecutive annual periods with each renewal subject to such terms and conditions as are prescribed by the regulations.

17(6)An application for renewal of a development permit shall be made in writing to the Minister at least thirty days prior to the expiry date of the development permit or any renewal thereof and shall be accompanied by the fee and deposit prescribed by regulation.

17.1(1)The permittee shall each year during the term and continuation of the development permit carry out or cause to be carried out on the permit area development to the satisfaction of the Minister in an amount prescribed by regulation.

17.1(2)Before a development permit is granted, the Minister shall require the licensee to deposit with the Minister of Finance and Treasury Board in accordance with section 34 an amount at least equivalent to the work requirement prescribed by regulation for the initial term of the development permit.

17.1(3)Every renewal of a development permit is subject to the permittee maintaining his deposit with the Minister in an amount at least equivalent to the work requirement for the term of the renewal period.

18(1)A permittee may apply to the Minister in the manner prescribed by regulation for a lease.

18(2)The area to be included in a lease shall be determined by the Minister after consultation with the permittee and after taking into consideration the extent and nature of the bituminous shale proven by the permittee’s examination, the proposed capacity of the plant or other works to be constructed and the requirements for operation of the plant for a period of at least thirty years.

18(3)The Minister may in accordance with the regulations grant a lease on such terms and conditions as are prescribed by the regulations.

18(4)Notwithstanding subsection 17(5), upon the granting of a lease the lessee’s development permit expires.

18(5)Notwithstanding any other provision of this Act, a lease granted under this Act prior to September 1, 1981, shall on the coming into force of this section be deemed to be a development permit granted under section 17 on the same day that the lease was granted and subject to the same terms and conditions to which the lease was subject.

19(1)The Minister, upon written application, may grant a lease for Crown lands where the application is made by the permittee for the lands for which the application is made.

19(2)Notwithstanding subsection (1) the Minister may, upon written application by the lessee, approve the transfer of the whole or part of the lease area to another lessee, and shall upon such transfer grant a new lease to such transferee upon such terms and conditions as are prescribed by the Minister, but each transfer shall not be for less than one section in area.

20(1)A permittee or a lessee may, at any time, abandon and release to the Crown, in whole sections only, any part of the demised area, and shall not thereafter be bound to explore or develop such portion of the area so released.

20(2)No release shall be allowed to be made under subsection (1) if the release reduces the permit area or the lease area to less than one section, unless total surrender of the permit area or the lease area is effected.

21(1)The permittee or lessee has the exclusive right to produce or cause to be produced from the permit area or the lease area, as the case may be, bituminous shale, bituminous shale products and bituminous shale by-products.

21(2)Where bituminous shale and commercial quantities of oil or natural gas occur in the same or contiguous areas, such that if the bituminous shale were produced first the oil or natural gas would not be subsequently recoverable in commercial quantity by conventional oil and natural gas production techniques then the oil and natural gas shall be produced first, in a manner approved by the Minister.

23(1)Before commercial production commences from any lease area, the Minister may, upon written application, order the reduction of the rental payable under lease by an amount not exceeding the allowable expenditures, as determined by the Minister, that have been made by the lessee on exploration work within the lease area during the previous year if

23(2)Where any part of the amount referred to in subsection (1) is not credited to the rental of the year preceding, the rental for any subsequent year shall be reduced subject to paragraph (c) by the amount of that part.

23(3)Notwithstanding subsection (2), the rental shall not be reduced pursuant to subsection (1) for any year following a year in which commercial production has commenced.

24(1)Where a lessee, permittee or licensee does not make the deposit or pay the rental required by regulation within thirty days from the date the deposit or rental is due, the Minister shall give written notice to the lessee, permittee or licensee as the case may be, specifying the default.

24(2)If the default referred to in subsection (1) is not remedied within thirty days of the date of the Minister’s notice under subsection (1), the licence to search, development permit or lease, as the case may be, shall be cancelled by the Minister.

24(3)Where a lessee, permittee or licensee violates any provision of this Act or the regulations, other than those referred to in subsection (1), the Minister may give written notice to the lessee, permittee or licensee, as the case may be, specifying the violation.

24(4)Unless the lessee, permittee or licensee, as the case may be, remedies or prepares to remedy the violation to the satisfaction of the Minister within thirty days from the date of the Minister’s notice referred to in subsection (3), or such earlier time as is provided by regulation, the Minister shall cancel the lease, development permit or licence to search.

26(1)If in the opinion of the Minister, the operation of a bituminous shale production operation is not in accordance with a direction or requirement of the Minister, the Minister, or any person duly authorized by him, shall have access to and may enter upon the location and into any structure thereon and do whatever he considers necessary because of the failure to comply with the direction or requirement.

26(2)The Minister of Finance and Treasury Board may use or expend all or any part of a security deposit furnished by the licensee, permittee or lessee to defray the cost of, as determined by the Minister, or the cost incidental to the work of control, completion, suspension, or abandonment of the operation to the satisfaction of the Minister.

26(3)The return of the deposit or any part thereof, does not relieve the licensee, permittee or lessee of liability for any cost of or the cost incidental to the control, completion, suspension or abandonment of an operation and does not reduce his liability for such cost.

26(4)The cost incurred by the Minister under this section remaining unpaid after applying thereto the security deposit of the licensee, permittee or lessee held by the Minister of Finance and Treasury Board is a debt payable by the licensee, permittee or lessee to the Crown.

27(1)The Minister, for the enforcement of any direction or requirement prescribed by him under section 26 may

27(2)Upon the Minister taking possession of a bituminous shale production operation and as long as such possession continues, every officer and employee of the licensee, permittee or lessee, his agent, or contractor shall obey the directions or requirements concerning the operation given by the Minister, or by such person placed in charge or control of the operation by the Minister.

27(3)Upon possession being taken of any operation, the Minister may take, deal with, and dispose of all bituminous shale, bituminous shale products or bituminous shale by-products produced at the operation as if it were the property of the Crown, subject to the payment of the net proceeds thereof as provided in this section.

27(4)The costs and expenses of, and the costs and expenses incidental to, a proceeding taken by the Minister under this section are at the discretion of the Minister, and he may direct by whom, to whom and to what extent they are to be paid.

27(5)Without restricting the generality of the foregoing subsections, the Minister may pay, from the proceeds of the bituminous shale, bituminous shale products and bituminous shale by-products produced at the operation

27(6)The net proceeds of the bituminous shale, bituminous shale products and bituminous shale by-products produced at the operation remaining after the payment of the costs and expenses under subsection (5) shall be paid by the Minister into The Court of King’s Bench of New Brunswick in accordance with the Rules of The Court of King’s Bench of New Brunswick.

27(7)If the proceeds of the bituminous shale, bituminous shale products and bituminous shale by-products produced at the operation are not sufficient to apply all costs and expenses of, and the costs and expenses incidental to, a proceeding, investigation, or measure taken, and the Minister directs that the balance of the costs and expenses or any part of thereof is to be paid by the licensee, permittee or lessee then the provisions of section 26 regarding the use of the security deposit and regarding the further liability of the licensee, permittee or lessee with respect to the costs referred to in that section apply, mutatis mutandis, to the use of such security deposit, and to the further liability of the licensee, permittee or lessee to defray the balance of the costs and expenses that are incurred under this section.

28(1)No person shall commence exploratory work until he has notified the Minister in writing of his intention to do so.

28(2)No scheme or operation for the production of bituminous shale or bituminous shale products, whether on a commercial, pilot or smaller scale, shall be commenced without the approval of the Minister.

28(3)An approval given pursuant to subsection (2) may be made subject to any conditions or limitations the Minister considers necessary.

29(1)A licensee, permittee or lessee shall not assign, transfer, sublet or abandon the possession of the rights described in his licence to search, development permit or lease, or any part thereof without the approval of the Minister.

29(2)No transfer, assignment, agreement, or instrument affecting the title to a licence to search, development permit or lease shall be recorded or effective unless

29(3)Upon approval by the Minister a transfer, assignment, agreement, or instrument affecting the title to a licence to search, development permit or lease is deemed to be recorded and be effective from and after the time that the application to record the transfer, assignment, agreement, or instrument is received by the Minister.

29(4)Failure to record a transfer, assignment, agreement or instrument affecting the title to a licence to search, development permit or lease does not invalidate the transfer, assignment, agreement or instrument as between the parties thereto, but subsection (2) governs the effectiveness thereof with respect to another person.

29(5)No transfer, assignment, agreement or instrument affecting title to a licence to search, development permit or lease shall be recorded unless it is accompanied by the fee as prescribed by regulation.

29(6)Every transfer, assignment, agreement, or instrument affecting title to a licence to search, development permit or lease made by an individual under this Act shall be witnessed, signed by the individual with his name and address, and where made by a corporation shall be properly executed under the seal of the corporation or its duly authorized attorney.

29(7)Where, by an instrument made pursuant to section 177 of the Bank Act, as enacted by section 2 of the Banks and Banking Law Revision Act, 1980, chapter 40 of the Statutes of Canada, 1980-81-82-83, a bituminous shale lease or any interest in such lease, is assigned, transferred, or set over as security to a Canadian chartered bank by the lessee, or by a person having an interest in the lease, there shall be registered with the Minister upon payment of the fee as prescribed by regulation,

29(8)A holder of a licence to search, development permit or lease may make a valid transfer of his licence to search, development permit or lease, directly to himself, jointly with another, or to another, and where the licence to search, development permit or lease is held by more than one person, they may make a transfer directly to one or more of their number either alone or jointly with some other person, and a trustee, executor, or administrator may make a valid transfer of a licence to search, development permit or lease to himself individually where the making of the transfer is otherwise within his power.

30(1)Subject to subsection (2), any record or instruments relating to a bituminous shale title recorded pursuant to this Act shall, during normal office hours, be open to public inspection free of charge.

30(2)Geological, geophysical, analyses, reports, and other data received by the Minister in the course of the administration of this Act, and designated as confidential by the Minister or by the owner with the Minister’s approval, shall not be released by the Minister sooner than the time period specified in the regulations, unless written permission is obtained from the owner.

30(3)If subsection (2) is inconsistent with or in conflict with a provision of the Right to Information and Protection of Privacy Act, subsection (2) prevails.

36(1)A deduction may be allowed when computing the royalty on bituminous shale, bituminous shale products, bituminous shale by-products and oil and natural gas for the cost, charge and expense incurred in production or processing as specified by the Minister.

36(2)Notwithstanding section 35 the Lieutenant-Governor in Council may authorize the Minister to enter into an agreement establishing the amount of royalty to be paid and the method of calculating the royalty on bituminous shale, bituminous shale products and bituminous shale by-product produced from a unitized operation, or as a result of a conservation scheme, plan or project.

37(1)A person who violates or fails to comply with any provision of the regulations commits an offence that is, subject to subsection (2), punishable under Part II of the Provincial Offences Procedure Act as a category B offence.

37(2)A person who violates or fails to comply with a provision of the regulations in respect of which a category has been prescribed under paragraph 39(j.1) commits an offence of the category prescribed by regulation.

37(3)A person who violates or fails to comply with section 31 commits an offence punishable under Part II of the Provincial Offences Procedure Act as a category C offence.

37(4)A person who violates or fails to comply with

37(5)A person who violates or fails to comply with subsection 8(2) or 12(2) commits an offence punishable under Part II of the Provincial Offences Procedure Act as a category F offence.

37(6)A person who violates or fails to comply with subsection 27(2) commits an offence punishable under Part II of the Provincial Offences Procedure Act as a category I offence.