Bill 1 (Legislature 8, Session 7)

L8 S7 7969

Alberta — Bills

BILL No.1 of 1938 (2nd Session). An Aot for the Oonservation of the Oil and Gas Resources of the Province of Alberta. (Assented to , 1938.) HIS MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of Alberta, enacts as follows: 1. This Act may be cited as "The Oil and Gas Resources Conservation Act." 2.

In this Act unless the context requires a contrary meaning,- (a) "Board" means the Board constituted by this Act and appointed pursuant thereto; (b) "Owner" when used in connection with any well in addition to its ordinary meaning, includes the person who is entitled to dispose of any production of any petroleum from such well or property, or who would be so entitled in the absence of any contract governing the disposition of such pro duction; (c) "Petroleum" in addition to its ordinary meaning includes any mineral oil or relative hydrocarbon and natural gas existing in its natural condition in strata, but does not include coal or bituminous shales or other stratified deposits from which oil can be extracted by destructive distillation; (d) "Well" means any made orifioe in the ground made !by drilling, boring or in any other manner, from which any petroleum is obtained or obtainable or which is !being so made for the purpose of obtaining any petroleum. 3.

The intent, purpose and object of this Act is to effect the conservation of oil resources and gas resources or both in the Province by the control or regulation of the produc tion of oil or gas or both, whether by restriction or prohibition and whether generaUy or with respect to any specified area or any specified well or wells or by repressur ing of any oil field, gas field or oil gas field and, incidentally thereto, providing for the compulsory purchase of any well or wells. .

2 4. This Act applies to every well as defined in this Act situate in ,the Province whether made before or after the coming into force of this Act from which any petroleum is obtained or is 'Obtainable or which is being made for the purpose of obtaining or producing any petroleum.

PART I. RELATING TO THE CONSERVATION OF OIL RESOURCES AND GAS RESOURCES. 5. In order to effect the intent, purpose and object of this Act there is hereby constituted a Board to be called "The Petroleum and Natural Gas Conservation Board," which shall be a body politic and corporate. 6.-

(1) The Board shall consist of not more than three members of whom one 'shall be the chairman.

(2) The first members of the Board shall be William F. Knode, Fred G. Cottle and Charles W. Dingman, of whom the first named shall be the chairman; the said WHliam F. Knode shall hold office until the 30th day 'Of June, 1939, and thereafter during the pleasure of the Lieutenant Governor in Council; the said Fred G. Cottle and Charles W. Dingman shall hold office until the 30th day of June, 1943, and there after during the pleasure of the Lieutenant Governor in Council.

(3) In the event of any vacancy occurring in the mem bership of the Board the Lieutenant Governor in Council may appoint a person to fill such vacancy; and in case the office of chairman becomes vacant, the Lieutenant Governor in Council shall appoint such person or any other member of the Board as chairman thereof; and every person so appointed shall hold office for the term of five years from the date of his appointment and thereafter during the pleasure of the Lieutenant Governor in Council.

(4) Notwithstanding anything contained in this

section the chairman, as well as any other member of the Boa'rd, may be removed from office by the Lieutenant Governor in Council at any time upon the address of the Legislative Assembly. 7. The chairman and each other member of the Board shall receive such remuneration as may be fixed by the Lieutenant Governor in Council. 8. Neither the chairman nor any other member of the Board shall have any monetary interest of any description, directly or indirectly, in any property or in any business or undertaking carried on for the purpose of searching for, winning or getting, or for the purpose of gathering, collect ing, processing, handling or distributing any petroleum in the Province.

3 9. The Lieutenant Governor in Council may from time to time,- (

a) designate any member .of the Board as the deputy chairman thereof; (

b) in the case .of death, illness or absence from the Province of Alberta .of a member of the Board or of his inabili.ty to act from any cause, appoint s.ome person to act pro tempore in his 'stead and the person so appointed shall during the period for which he is so appointed have all the powers and perform all the duties.of a member .of the Board. 10. The office of the Board shall be at such place as may from time to time be approved by the Lieutenant Governor in Council. 11.-

(1) Meetings of the B.oard shall be held at the call of the chairman, or in his absence the deputy chairman, at such place or places and upon such notice as to the chairman seems proper.

(2) The chairman, or in his absence the deputy chair man, shall call a meeting of the Board immediately upon being requested so to do in writing Iby the other members .of the Board.

(3) The chairman, or in his absence the deputy chair man, and one other member of the Board shall cDnstitute a qUDrum at any meeting of the Board. 12. The chairman shall be the executive officer .of the B.oard and shall sign all .order,s Dr directions issued by authority of the Board and shall have full pDwer tD act for, .on behalf of, and in the name of the Board in the execu tion, performan~e and carrying out .of any act, matter Dr thing which is within the power .of the Board subject .only tD such express directiDns .or decisiDns as may have been given Dr made by a resolutiDn .of the Board passed at a regularly held meeting thereof.

(2) At any time during which the .office .of ,chairman is vacant, Dr the chairman is absent from the Province, Dr is incapacitated for any rea'SDn from executing his functions as chairman, the deputy chairman shall have and exercise all the pDwers, duties and functions whi~h are by this Act conferred upDn the chairman.

(3) Any order or directiDn Dr .other document purport ing to be issued by authDrity .of the BDard shall when signed by the chairman or deputy chairman be admitted as evidence of the cDntents thereDf without any pr.oDf .of the signature of the chairman Dr deputy chairman, as the case may be, Dr of the authority of the chairman or deputy chairman, as the case may be, to sign the same. 13. The Board is hereby authorized and empowered to perf.orm, execute and carry out all the duties, powers and

4 functi'Ons imp'Osed 'Or conferred upon the Board by this Act, and for that purpose to do all and any acts and things which are necessary f'Or or incidental to the performance, execu tion or carrying out of any such duty, power or function. 14.-

(1) The Board shall keep at its office,- (

a) full and complete minute-s o.f all business transacted at its meetings; (

b) full and complete aC,counts and rec'Ords o.f all the finanCial business 'Of the B'Oard.

(2) All such minutes, accounts and records shall be deemed to be of so public a nature as to be admissible in evidence by the mere production there'Of by the Board or by any employee thereof authorized by the Board to produce the same. 15. The Board is hereby authorized and empowered,- (

a) to appoint such 'Officers, servants and employees as the Board deems necessary for the transaction of its business and to prescribe their duties, conditi'Ons of employment and remunerati'On; (

b) to obtain the services of such engineers, account ants and o.ther professi'Onal' persons as the Board deems necessary for the proper and c'Onvenient transaction 'Of its business; (

c) to make fr'Om time to ,time such enquiries and investigations into all 'Or any of the following matters, namely; the production, transportation and distribution 'Of petr'Oleum or any classification there 'Of in the Province at such places and at such times and in such manner as may seem advisable to the Board. 16.-

(1) In order to effect the intent, purpose and o.bject o.f this Act, the Board is hereby authorized and em powered with the approval of the Lieutenant Governor in Council to control and regulate the pr'Oduction o.f petroleum either by restriction or prohibition or both, or t'O repressure any oil field, gas field or oil gas field and, incidentally there to., to provide for the compulsory purchase of any well or wells, and for such purposes t'O make such orders and regulations as the Board deems requisite.

(2) The Lieutenant Governor in Council may revoke any order or regulation made pursuant to this section. 17.-

(1) Every person who is the owner of any well in the Province may register with the Board an address for service in the Province of Alberta of all notices and orders made pursuant to this Act affecting or respecting any well o.f which such person is the owner.

(2) All notices and orders affecting or respecting any well shall be deemed to have been served upon the 'Owner of

5 such well upon the delivery thereof at his registerd address for service or in case the same is sent by mail upon the expiration of twenty-four hours, exclusive of Sundays and holidays, from the time of sending such notice or order by prepaid mail to such owner at his regis·tered address for service. 18.

If there be no registered address foil' service as afore said, in respect of any well, all notices and orders respecting such well shaN be posted up in any part of the office of the Board to which the public has access and shall be kept so posted up for twenty-four hours, exclusive of Sundays and holidays, and upon the expiration of the said period shall be deemed to have been duly served upon the owner of such well. 19.-

(1) Every person who is the owner of a producing well, shall keep at his office or other place of business within the Province, complete and accurate records of the produc tion of all petroleum from his wen and of the disposition made thereof.

(2) Every person who is the owner or who has the control or management of any refinery in the Province shall keep at his office or other place of business in the Province records of all petroleum received into such refinery and of the names and addresses of the persons from whom such petroleum was so received, the quantity and quality of the petroleum received from -each such person, and the price payable in respect thereof, and the disposition of all products obtained from refining the same, and every dis poStition made thereof.

(3) Every person who is by this

section required to keep records shall produce such records at all reasonable times when requested so to do by any member of the Board, or a;ny person authorized by the Board, and shall afford such member or person facilities for inspecting the same and making copies thereof and taking extracts therefrom. 20.

The Board shall be entitled to require from any Department of the Government Service any information required by the Board for the purpose of carrying out the duties and exercising the powers imposed or conferred upon the Board by this Act, and every official of every such Department shall, subject to the approval of the Minister presiding .over the same, give to the Board such assistance as he is able to afford and the Board may require.

PART II. POWERS AND DUTIES OF THE BOARD IN RESPECT OF THE OIL AND GAS WELLS ACT, 1931. 21.-

(1) It shall be the duty of the Board and it shall have the power to undertake the enforcement of any regu lations made pursuant to The Oil and Gas Wells Act, 1931, whenever the Lieutenant Governor in Council directs the Board so to do or designates the Board in any such regula tions as the person by whom the regulations shall be en forced or by whom any act or thing, the doing of which is authorized or required by any such r,egulation shall be done.

(2) The expenditures incurred by the Board in respect of the enforcement of any such regulations shall be payable to the Board by the Provincial Treasurer out of such sums as may be appropriated by the Legislature for the purpose.

PART III. ASSESSMENT AND TAXATION OF PETROLEUM PROPERTIES. 22. In this part of this Act unless the context otherwise requires, the expression "petroleum property" means the right, title, estate or interest of any person to or in any petroleum which is in the earth in the Province, and includes,- (

i) every kind and description of right of any ,person to search for, win, get and retain any such petroleum, whether such right is inci dental to the ownership of any land or is created by any lease, permit, contract or other wise howsoever, and includes all buildings, structures, and erections, used for the pur1?ose of searching for, winning, getting and retain ing any such petroleum; and (ii) every right, title, estate, interest or benefit reserved, acquired or retained upon the making of any sale, lease, sublease, assign ment, license or any other arrangement relating to the disposition of any right, title, estate or interest to or in any such petroleum, and any interest of the Crown under any sale, grant, lease, license, or permit made or issued by the Crown in respect of any such petroleum. 23.

All petroleum property in the Province which is not by this Act expressly exempted, shall be liable to assessment and taxation fm the purposes of this Act.

7 24. All petr,oleum p110perty situate in any part of the Province for the time being designated by any order of the Lieutenant Governor in Council as a part of the Province in which such property is exempt f110m assessment under this Act shall so long as such order remains in force be exempt from assessment and taxation under this Act. 25.-

(1) Every person who is the owner of any petroleum property liable to assessment and taxation under this Act shall not later than the thirty-first day of December in the year 1938, and not later than the thirtieth day of June in every year thereafter, without any notice or demand, deliver to the Board a detailed statement in wI1iting which shall be in such form as the Board may require, setting out,- (

a) the legal description of the land to which such petroleum p'l\operty relates; (

b) the right, estate, or interest of the owner, with sufficient particulars of the title of such person to such petroleum property; (

c) the rentals and royalties payable by such person in respect of such petroleum property to any other person or persons and the name and address of each such person; (

d) particulars of all bqildings, structures and erec tions used for the purpose of searching for, winning, getting and retaining any petroleum product to which the petroleum property relates; (e.) the fair actual value in cash of the petroleum property; (

f) in case the owner of the petroleum property is a corporate body, the last balance sheet prepared pur suant to the provisions of The C()mpanies Act, 1929, or any other statute applicable to the corporation; (

g) such further or additional information as the Board may require.

(2) In the case of a corporation, association or other corporate body, every such return shall be made and signed by the President, Secretary, Treasurer or other responsible officer having knowledge of the affairs of such corporation, association, or other body, or by such other person or per sons employed thereby or connected with its business as the Board may require.

(3) The Board may prescribe the forms on which such returns shall be made or furnished, and may enlarge the time for making any return under this Act. 26.-

(1) The Lieutenant Governor in Council may fro~ time to time appoint an assessor for the purposes of thIS part, who may be a member of the Board, and prescribe his remuneration which shall be payable by the Board.

(2) In the year 1939 as soon as is practicable after the first day of February and in each subsequent year as soon as is practicable after the thirtieth day of June, the assessor shall proceed to assess at its fair actual value each petroleum property liable to assessment and taxation, and shall prepare an assessment roll setting out thereon a brief description of each petroleum property assessed, the name and address of the owners thereof, and the assessed value thereof.

(3) In making such assessments the assessor may accept or disregard either wholly or in part any statements fur nished pursuant to

section 25, and may take any steps which he in his discretion considers necessary for the purpose of ascertaining the fair actual value of the assessed property, and for that purpose may resort to all sources of avaHable information, and may fix such amount as appears to him to be just and equitable. 27. Upon the completion of the assessment roll the assessor shall endorse thereon or attach thereto a certificate setting out the date upon which the roll was so completed, and sign the same and deliver the same to the Board. 28.

The Board shall as soon as may be after the delivery of the assessment roll, fix a day, time and place for the revision of the assessment roll which shall not be earlier than the thirtieth day af.ter the day upon which the assess ment roll is SiO delivered, and shall cause a copy of the assess ment roll and the certificate endorsed thereon togethe'r with 'a notice of the day, time and place so fixed for the revision of the assessment roll to be posted up in a conspicuous place in any part of the offices of the Board to which the public have access and shall keep the same so posted up for twenty days, and shall within ten days after the posting up of the assessment roll cause to be sent by mail to every person whose name appears on the assessment roll as the owner of any petroleum property, an assessment notice containing the particulars appearing in the roll with respect to such petroleum property, and a notice setting out the day, time and place fixed for the revision of the assessment roll, to gether with a copy of the next ensuing section. 29.

Any perSlOn whose name appears upon the assess ment roll as a person assessed may apply to the Board to vary .the assessment roll and to alter any assessment shown thereon which he alleges to be improperly assessed, or to assess any property which he alleges is liable to be and has not been assessed, and to include the same in the assessment roll, upon giving the Board notice in writing within twenty days after the date upon which the assessment roll was first posted up pursuant to the l'ast section. 30.

At the time and place fixed for the revision of the assessment roll or at any adjournment thereof, the Boord shall proceed to hear and determine every application of

9 which notice has been given in conf.ormity to the last pre ceding section, and to make such disposition thereof as the Board may in its discretion deem fit and proper. 31.-

(1) As soon as the Board shall have disposed of all such applications 'as aforesaid, it shall proceed to revise the assessment r.oll in acc.ordance with the dispositions made by the Board of such applioations and thereupon shall oause to be attached to the assessment roll so revised a certificate which may be in the following form: "This is to certify that the assessment r.oll hereto annexed is the aiS,sessment roll for the year 19 ........ as revised by the Petroleum and Natural Gas Conservation Board.

"Dated at the office of the Board this " ... , ... , ...................... .. day of ........................................ , 19 ........ . "The Petroleum and Natural Gas Conservation Board, by Chairman."

(2) The assessment roll so revised and every assessment matter and thing set .out therein and the certificate attached thereto shall be conclusive and binding upon all persons mentioned therein or affected thereby, and shall not be questioned in any proceedings in any Court as to any state ment, matter or thing contained therein whatsoever. 32.-

(1) In the year 1939 and as soon as may be after the 30th day of June and not later than the 30th day of September, the Board shall proceed to levy a tax at the rate of ten mills on the dollar upon the assessed value of all properties on the assessment roll as certified by the Board or at such lesser uniform rate as will produce a sufficient sum to meet the expenditures incurred by the Board under this Act in the year ending the 30th day of June, 1939, together with the expenditures incurred by the Board con stituted by The Oil and Gas Wells Act, 1938, under that Act in the year ending the 30th day of June, 1939, but exclusive of expenditures in respect of any of the matters set out in

Part II of this Act.

(2) In every year thereafter the Board shaH as soon as may be after the 30th day of June and not later than the 30th day of Septemiber proceed to levy a tax at the rate of ten mills on the dollar upon the assessed value of all properties on the assessment roll as certified by the Board in that year or at such lesser uniform rate as will produce a sufficient sum to defray the expenditures incurred by the Board under this Act in the year ending on the 30th day of June in that year, exclusive of expenditures in respect of any matters set out in

Part II of this Act.

10 33. As soon as may be after the Board has struck the rate it shall cause to be sent by mail to every person whose name appears on the assessment roOll as the owner of any assessable petroleum property a notice oontaining a brief description of the petroleum proOperty in respect to which such person is assessed, the amount of the tax payable in respect thereof, and a demand foOr the payment of the tax. 34.-

(1) In the event of any of the taxes imposed under this Act remaining unpaid after the expiration of the sixty days after the date of mailing the notice referred toO in

section 33, there oghall be added thereto, by way of penalty, a sum equal to five per cent of the amount of taxes unpaid, and in the event of any taxes or penalties, or any part thereof remaining unpaid after the expiration of one hundred and twenty days after the date of such mailing, there shall be added thereto, by way of penalty, an additional sum equal to five per cent of the amount of such taxes and penalties at that date remaining unpaid, and such amount or amounts so added shall form part of the taxes which are created a special lien upon the petroleum property in respect of which the same are payable under the provisions of this Act.

(2) Nothing in this

section contained shall be construed to extend the time for payment of the said taxes, nor in any way to. impair the right of diogtress, nor any other remedy provided by this Am, foOr the collection of said taxes. 35.

In any (lase where the tax payable to the Board in reS'pect of any petroleum property or any interest therein is not paid within thirty days after the date of mailing the n'Otice referred to in s'ectioOn 33 the Board may order that fr.om and after a date fixed by the Board all petroleum or any specified kind or kinds thereof produced from any well owned or. operated by a person who is liable to the payments of su.ch tax shall be delivered to the Board or to such person 'Or personog who may be designated by the Board, and shall be soOld in such manner and at such price as the Bo~rd may dir,ect until such time as the Board has received out of the proceeds of sale or otherwise the full amount of the tax together with any penalties thereon and ,such further amount as the Board may fix as the amount of the expenses of the Board in relation to any act, matter or thing done in pursuance of this section. 36.

Upon the making of any order pursuant to

section 35, from the date so fixed by the Board until such time as the Board has received the full amount of the tax together with any penalties thereon and the expenses of the Board, the petroleum to which the order relates shall become the property of the Board, and shall be freed and discharged from all claims and demands of every other person howso ever and whensoever created.

11 37. The tax payable in respect of any petroleum property shall be a charge thereon having priority over all other claims and demands of any person other than the Crown. 38. In ease any person who is required under the pro visions .of

section 25 hereof to make or furnish any state ment or information does not comply with the provisions of the said section, the Board may by order impose upon any such person a penalty of not mOlle than $10.00 per day f.or each day during which such default is made, which penalty or sum shall be added to and become a part of the tax imposed by this Act, and may further order that any such person shall pay a tax of double the amount of the tax payable in respect of the petroleum property to which such' statement or information relrutes. 39.-

(1) In case any question of law arises with respect to any decision of the Board made pursuant to any pro vision of this Part, any person affected thereby may within thirty days after the date upon whi,ch such decision was made give notice in writing to the Board requiring the question to be referred to a Judge of the Supreme Court of Alberta.

(2) Upon the receipt of any such notice the Board shall cause an application to be made to a Judge to fix the day, time and place for proceeding with the reference and for directions as to the notice thereof to be given and the persons to he given notice and the manner in which such notice is to be Kiven.

(3) Upon the day; time and place so fixed or at any other day, time and. place to which the hearing is from time to time adj ourned the Judge shallpro,ceed to determine the question in a

summary manner, and for that purpose may take evidence either orally or by affidavit and shall make such orner to determine such question as he deems proper.

(4) Ev,ery order made by a Judge under this

section shall be final and conclusive and there shall be no appeal there from. 40. The Board is hereby empowered to borrow from time to time on the security of the taxes for the current year which are fOT the time being uncollected, such sums as may be required for the defrayal of the current expendi tures of the Board. 41. The Lieutenant Governor in Council may authorize and empower the Provincial Treasurer,- (

a) to guarantee on behalf of the Province the due payment of any money borrowed pursuant to the last preceding section, together with the interest payable thereon, upon such terms and conditions as may be prescribed by the Lieutenant Governor in Council;

12 (

b) to advance to the Board from time to time out of the General Revenue Fund such sums as may be deemed advisable upon such security, at such rate of interest and such terms and conditions as may be prescribed by the Lieutenant Governor in Council.

PART IV. PROVISIONS OF GENERAL ApPLICATION. 42. The procedure to be followed and the forms to be used in any inquiry, hearing, meeting, proceeding or other transaction of the Board or upon the making of any order shall be such as the Board may from time to time determine, and as are not inconsistent with any express provision of this Act. 43.

Save and except only in cases where it is otherwise expressly ,provided by this Act the Board shall have the exclusive jurisdiction to examine, inquire into, hear and determine all matters and questions arising under this Act, and every action, decision, and order of the Board with respect to any such matter or question shall be final and conclusive and shall not be open to question or review in any court, and no proceeding of or by or before the Board shall be restrained by injunction, prohibition or other process or proceedings in any court or be removable by certiorari or otherwise into any court, nor shall any action or proceeding be brought against the Board or any member of the Board or any officer or employee of the Board in respect of any act or thing done in purported pursuance of this Act. 44.

In case the Board is satisfied after an inquiry held upon such notice and to such persons as the Board deems proper, that any well is being operated in such a way that any provision of this Act or of any order or regulation of the Board made pursuant to this A,ct is contravened or not complied with the Board may order that on and from a date to be fixed by the order no production shall be permitted at such well and that the same shall be shut down and kept shut down until such time as the Board may order to the contrary. 45.-

(1) The Board may take such steps and employ such persons.as the Board considers necessary for the en forcement of any order made by it and for the purposes thereof may forcibly or otherwise enter upon, seize and take possession of the whole or part of the movable and immovable property in on or about any well or used in con nection therewith or appertaining thereto together with the books and offices of the owner thereof, and may, until

13 such order has been complied with, either discontinue all production or may take over the management and control thereof. .

(2) Upon the Board so taking possession of any well and so long 'as such possession continues, it shall be the duty of every officer and employee of the owner therof to obey the orders of the Board or of such person or persons as it places in charge and control thereof.

(3) Upon possession being so taken of any well the Board may take, deal with and dispose of all petroleum produced at such well as if the same were the property of the Board, subject to the obligation to account for the net proceeds thereof to the persons entitled thereto.

(4) The costs and expenses of and incidental to pro ceedings taken by the Board under this

section shall be in the discretion of the Board, and the Board may direct by whom and to what extent they shall be paid. 46.-

(1) Unless it is otherwise expressly provided by this Act to the contrary, any order or regulation which the Board is authorized by this Act to make may be made upon its own motion or initiative, and without the giving of any notice, and without holding any hearing.

(2) The Board may direct in any order that the same or any portion or provision thereof shall come into force at a future fixed time or upon the happening of any con tingency, event, or condition in such order specified, or upon the performance to the satisfaction of the Board or of any person named by it of any terms which the Board may impose upon any party interested, and the Board may direct that the whole or any portion of such order shall have force for a limited time or until the happening of any specified event.

(3) When any work, act, matter or thing is by any orde·r or regulation of the Board required to be done, performed or completed within a specified time, the Board may, if it thinks proper so to do, extend the time so specified.

(4) An order of the Board need not show upon its face that any proceeding or notice was had or taken, or that any circumstances existed necessary to give it jurisdiction to make such order. 47.

The Board and every member thereof and every other person authorized by the Board to make any inquiry or investigation pursuant to any of the provisions of this Act shall for the purpose of any such investigation or inquiry have all the powers which may be conferred upon a commissioner appointed pursuant to The Public Inquiries Act for the purpose of taking evidence on oath or affirma tion and compelling the attendance of witnesses and the production of documents. 48. The Board and every member thereof and every person authorized by the Board to make any inspection shall

14 be entitled to enter upon and inspect any place which is a well or a place at which any petroleum is refined or is occupied or used in connection with any well or any pl'ace at whi,ch petroleum is refined at any time between the hour of eight o'clock in the forenoon and six o'clock in the after noon and at any other time during which any business or operation is being carried on thereat, and to inspect such place and every matter and thing thereon and all books, records and documents found ther'eon, and every person who prevents or hinders or obstructs the Board or any member thereof or any person so authorized as aforesaid whilst making any such entry and inspection shall be guilty of an offence against this Act. 49.

Every person who whether as a principal or other wise contravenes or makes default in complying with any provisions of this Act or of any order or regulation made pursuant to this Act or who causes either alone or in con junction or participation with others any owner of any well to contravene or to make default in complying with any such provision as last afoTesaid or who instructs, order,s, di'rects, or causes any officer, agent 01' employee of any owner of any well to contravene or to make default in complying with any such provision, shall be guilty of an offence against this Act. 50.

Every person who contravenes or makes default in complying with any of the provisions of this Act shall be guilty of an offence and shall be liable on

summary con viction therefor to a fine of not less than one hundred dollars nor more than one thousand dollars in respect of each such offence and in the case of a continuing offence to a fine of not less than one hundred dollar;; nor more than one thousand dollars for the first day upon which such offence occurs and of not less than fifty dollars nor more than five hundred dollars for each subsequent day during which the offence continues. 51. All sums of money collected by the Board pursuant to any of the provisions of this Act on account of taxes and all fines imposed pursuant to

section 50 shall be the property of the Board and shall be expended in defraying the ex penditures of the Board under

Part 1. 52. The Board shall be entitled to recover any moneys payable to the Board pursuant to any provision of this Act as if the same were a debt by action in any court of com petent civil jurisdiction. 53. In any case where the Board has pursuant to this Act more than one remedy for the enforcement of any order or for the payment of any money payable pursuant to any order of the Board, the Board may resort to any or all such remedies as it may from time to time think proper, either concurrently or successively until such time as the order

15 has been complied with or the money payable thereunder together with all costs and expenses has been paid and satisfied. 54.-

(1) Incidentally to the conservation of oil re sources or gas resources or both or to repressuring of any oil field, gas field or oil gas field, and for the purpose of carrying out any order or regulation made by the Board in relation to such conservation or repressuring, the Board is hereby authorized and empowered to purchase any well or wells together with any property or right appurtenant thereto or used in connection therewith which the Board considers requisite.

(2) The Board may at any time give notice to the owner of any property which is a well or any real property or any peI'lSonal property or any right which is used in connection with a well or is appurtenant thereto that the Board requires the same under this

section and such notice shall set out the description of the same; and upon the expiration of 30 days from the service of such notice the property mentioned therein shall become and be the absolute property of the Board freed and discharged from all claims and demands whatsoever of all persons other than the Crown.

(3) The price payable by the Board for such property shall be such price as may be agreed upon and in default of agreement, the price shall be determined by arbitration under the provisions of The Arbitration Act relating to arbitration by two aroitrators one of whom shall be ap pointed by the Board and one by the person who was the owner of the property set out in the notice.

(4) In determining the price to be paid by the Board for any property the arbitrators shall ascertain the amount of money at which the property would be accepted in the pay ment of a just debt and in so doing shall not take into account any loss of production o,ccasioned by any order or regulation of the Board made pursuant to this Act.

(5) In case any doubt arises as to the persons entitled to receive any money payable for any such property, or as to the amount payable thereout to any person, the Board shall pay the amount payable by the Board into the Supreme Court of Albe,rta and thereupon the same shall be paid out to such persons and in such amount as may be determined by the Court or a judge thereof upon the application of any person claiming to be entitled thereto.

(6) A certificate signed by the Board to the effect that it has acquired any property pursuant to this

section shall be: conclusive evidence of all facts stated therein. 55. Incidentally to any orders or regulations of the Board made pursuant to

section 16, the Board is hereby authorized and empowered,-

16 (

a) to provide for the voluntary surrender to the BO'ard of the right to' produce such amount of prO'ductiO'n as may be prescribed by the Board and for the resale by the Board of the right so surrendered, upon such terms, in such manner, and to' such extent as the Board deems proper, to' the O'wners or O'per ators of other wells, and fO'r the payment of the proceeds of such resales intO' a compensation fund and for the payment out of such fund O'f compensa tion to the persO'ns surrendering such right to pro duce, having regard to the amount O'f production so surrendered; (

b) to negotiate agreements from time to time with the O'wners of producing wells for the purpose of pro viding for the payment to' the owners of wells who have surrendered to' the Board any right to produce from such wells, such ,compensation as the Board considers fair and reasonable; (

c) in case the BO'ard is unable to prO'vide cO'mpensa tion to such extent as the BO'ard considers to be fair and reasO'nable for the owners O'f wells who have surrendered to the Board the right to produce from such wells, to provide by_ regulation or O'rder fO'r the payment of compensation to such owners in such amO'unt as the Board considers fair and reasonable, and fo,r the levying of the amount required to' pay such cO'mpensation by means of a special uniform rate upon the assessed value of such petroleum prO'perties in the Province as to the Board seems proper, and fO'r the assessment of such prO'perties and for the levying of any such rate. 56.

The Oil and Gas Conservation Act, 1938, being chapte'r 15 of the Statutes of Alberta, 1938, is hereby repealed. 57. This Act shall come into force on the day upon which it is assented to.

SEVENTH SESSION EIGHTH 'LEGISLATURE 2 GEORGE VI 1938 (SECOND SESSTON) BILL

An Act for the Conservation of the Oil and Gas Resources of the Province of Alberta. Received and read the First time ....................................... . Second time ..................................... . Third time ....................................... . HON. MR. TANNER EDMONTON: A. Shnitka, King's Printer 1938 Title: 1938 (8th, 7th) Bill 1,

An Act for the Conservation of the Oil and Gas Resources of the Province of Alberta

Document details

Collection	Alberta — Bills
Citation	L8 S7 7969
Type	bill
Volume / chapter	L8 S7 7969
Language	en
Format	json
Source	PROVINCIAL
Identifier	882da342777dac1f63dd3fe52caebe492e63f924

Source file is stored in the law ingest library (json).