Licence to Search
A licence to search entitles the holder to explore, drill and recover oil and natural gas from the area granted under the agreement. The right is granted to the bidder who tenders the largest work expenditures equal or greater than the minimum specified in the tender notice over the three-year renewable term. The licence to search may be converted to a five year lease at any time during the term of the licence to search agreement.
Lease
A lease entitles the holder to the exclusive right to produce oil and natural gas from the area granted under the agreement. The right is granted to the bidder who tenders the largest non-refundable cash bonus equal to or greater than the minimum specified in the tender notice. It is issued for a period of five years. The term of a lease may be continued and extended on that portion of the lease area which, in the opinion of the Minister, is producing, or capable of producing in paying quantity or actively being drilled. A table that provides highlights on the types of rights granted, fees and terms is provided in the Links area to the right.
Reporting Requirements
The holder of a licence to search or a lease shall submit, within the time frame established by regulations, a report containing a statement with respect to the total expenditures made by the licensee or lessee and other information obtained during the term of their agreements.
Continuance and Extension of Lease
The holder of a lease may apply to continue, or extend for such period, that portion of the lease that is producing, capable of producing in paying quantity or being drilled to the satisfaction of the Minister. Application is made in a form of a letter.
Transfer
An agreement holder may transfer all or a portion of his/her agreement area by submitting a completed Application to Transfer as provided for in the regulation.
Surrender
A licence to search may be surrendered if all work requirements for the term have been met. A lease may, at any time, be abandoned and released to the Crown during the term of the lease. All areas of agreements surrendered shall be surrendered to the Crown.