Canada Petroleum Resources Act

 

The Canada Petroleum Resources Act governs the lease of federally owned oil and gas rights on ‘frontier lands’ to oil and gas companies that wish to find and produce the oil and gas.  In BC, ‘frontier lands’ include the ‘territorial sea’ (12 nautical miles beyond the low water mark of the outer coastline), and the ‘continental shelf’ (beyond the territorial sea).  They do not include areas controlled by the provincial government (‘internal waters’ such as the Straits of Georgia and Juan de Fuca).  The Minister of Indian Affairs and Northern Development and the Minister of Natural Resources jointly administer the statue. 

 

The Act does not directly relate to planning watershed governance—except insofar as it enables oil and gas activities that can have adverse impacts on watersheds.  It is the statute under which the federal government must first give permission for oil and gas exploration to occur on frontier lands; and it does provide an opportunity for the federal government to protect the environment by attaching exploration restrictions when leasing rights or by stopping work if there is an environmental problem.

 

Rights leased to a company under the Act give the company the right to explore, and if successful, produce oil and gas owned by the federal government.  The manner in which a company must explore, produce, and transport that oil and gas is governed by the Canada Oil and Gas Operations Act

 

Under the Act, subsurface oil and gas rights in unexplored areas are issued during a ‘public call for bids’ and the Minister may attach conditions to the transfer of rights (including conditions for protecting the environment).  For each right issued, the successful oil and gas company must pay a royalty to the federal government.

 

If there is an environmental problem of a ‘serious nature,’ the federal Cabinet (through the Governor in Council) can stop a company from beginning or continuing any work.

 

The CPRA establishes an ‘Environmental Studies Research Fund’ to pay for environmental and social studies necessary to determine whether oil and gas exploration or development should be carried out in a particular area.  See Environmental Studies Research Fund Regions Regulation.

 

Related Guide Pages:

·          Oil & Gas Extraction

·          Canada Oil & Gas Operations Act

For more information on the Canada Petroleum Resources Act, and federal oil and gas regulation, see

·          Electronic copy of the Canada Petroleum Resources Act

·          Electronic text of regulations and guidelines

·          Frontier Lands Management Division of the Natural Resources Canada