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Volume 59, No. 13

198/2016

The British Columbia Gazette,

Part II

July 26, 2016

B.C. Reg. 198/2016 , deposited July 21, 2016, under the NATURAL GAS DEVELOPMENT STATUTES AMENDMENT ACT, 2014 [section 45] and the PETROLEUM AND NATURAL GAS ACT [section 133]. Order in Council 550/2016, approved and ordered July 20, 2016.

On the recommendation of the undersigned, the Lieutenant Governor, by and with

the advice and consent of the Executive Council, orders that

(

a) sections 19 to 24, 26 to 29, 31 to 36, 37 (

a) insofar as it enacts paragraphs

(c.1), (d.2), (d.3), (d.4), (d.5), (n.1), (n.2), (

x) and (

y) of

section 133 (2) of

the Petroleum and Natural Gas Act, R.S.B.C. 1996, c. 361, 37 (

b) and 38 of the Natural

Gas Development Statutes Amendment Act, 2014, S.B.C. 2014, c. 10, are brought into

force effective August 1, 2016,

(

b) section 30 (

a) of the Natural Gas Development Statutes Amendment Act, 2014,

S.B.C. 2014, c. 10, is brought into force effective August 1, 2017,

(

c) effective August 1, 2017, the Petroleum and Natural Gas General Regulation,

B.C. Reg. 357/98, is amended as set out in the attached Appendix 1,

(

d) effective August 1, 2016, the Petroleum and Natural Gas Drilling Licence Regulation,

B.C. Reg. 10/82, is amended as set out in the attached Appendix 2, and

(

e) effective August 1, 2016, the Petroleum and Natural Gas Act Fee, Rental and

Work Requirement Regulation, B.C. Reg. 378/82, is amended as set out in the attached

Appendix 3.

— R. COLEMAN, Minister of Natural Gas Development and Minister Responsible for Housing and Deputy

Premier ; J. RUSTAD, Presiding Member of the Executive Council .

Appendix 1

1 The Petroleum and Natural Gas General Regulation, B.C. Reg. 357/98, is amended

by adding the following section:

Special projects

9 The following special projects are prescribed for the purposes of

section 58 (1)

(

b) of the Act:

(

a) development or production of petroleum or natural gas, or both, from a field

or pool or portion of a field or pool, using repressuring, recycling or pressure maintenance

to enhance recovery;

(

b) operation or use of a storage reservoir, including the disposal of produced

water or acid gases;

(

c) the disposal of petroleum, natural gas, water produced in relation to the

production of petroleum or natural gas or waste.

Appendix 2

1 The title of the Petroleum and Natural Gas Drilling Licence Regulation, B.C. Reg. 10/82,

is amended by adding “ AND LEASE ” after “ DRILLING LICENCE ”.

Section 1 is amended by adding the following

definitions:

“5 year lease” means a lease that has a term of 5 years under

section 58 (2) of the Act;

“10 year lease” means a lease that has a term of 10 years under

section 58 (2) of the Act; .

Section 2 (4) and (5) is repealed.

Section 3 is amended

(

a) in subsection (5.3) (

d) by striking out “ a scheme under

section 100 of the Act for the development or production of natural gas from a stratum or strata that mainly contain coal ” and substituting “ a special project designated under

section 75 of the Oil and Gas Activities Act for the development or production of coalbed gas ”,

(

b) in subsections (5.4) (

a) and (5.4) (

c) by striking out “ scheme ” and substituting “ special project ”, and

(

c) in subsection (7) by adding “ a well eligible for designation as ” after “ extended to the date the drilling of ”.

Section 3.1 (2) (

a) is repealed and the following substituted:

(

a) either

(

i) is drilled in a spacing area, all or part of which is in a location described

in a drilling licence that is either in effect on the date of designation or that

ceased to be in effect not more than 60 days before the date of designation, or

(ii) was drilled in a spacing area, all or a part of which was in a location described in a

(

A) permit,

(

B) drilling licence, or

(

C) lease

that is not in effect and the well is re-entered and reworked under a drilling

licence that is in effect or that ceased to be in effect not more than 60 days before

the date of designation, and .

Section 4.1 (1) (

c) is amended by striking out “ does not exceed 4 kilometres at their closest point ” and substituting “ is not more than 4 kilometres at their closest point from the location of the drilling

licence that contains the spacing area for which the earning well was designated ”.

7 The following sections are added:

Lease continuation with penalty

(1) The term of a 5 year lease may be continued under

section 62 (1) of the Act in

respect of all or part of its location if the leaseholder

(

a) requests the continuation no later than 60 days after the expiry of the lease,

and

(

b) pays the penalty set out in

section 7.

(2) A 5 year lease may be continued under

section 62 (1) of the Act only once.

(3) The term of a 10 year lease may be continued under

section 62 (1) of the Act

in respect of all or part of its location if the leaseholder

(

a) requests the continuation no later than 60 days after the expiry of the lease,

and

(

b) pays the penalty set out in

section 7.

Penalty amount

7 The penalty prescribed for the purposes of

section 62 (1) of the Act is

(a) $15 for the first year, and

(b) $25 for the second and third years, if applicable,

multiplied by the number of hectares in the location.

Appendix 3

Section 8 of the Petroleum and Natural Gas Act Fee, Rental and Work Requirement

Regulation, B.C. Reg. 378/82, is amended by adding the following subsection:

(4) The prescribed fee for the purposes of

section 63 (2) (

c) of the Act is $500.

Section 10 (

a) and (

b) is repealed.

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