Indian Oil and Gas Canada Surface Lease Application Instructions
In order for the First Nation to be fully informed, Indian Oil and Gas Canada (IOGC) has a two step application approval process. The first step of the process is a review of the application information and environmental assessment by IOGC prior to the applicant obtaining the signatures of Chief and Council. The second step of the approval process will occur after the review where IOGC will advise the applicant that the information is correct and that all environmental conditions have been satisfied. At this point, the applicant can seek Band Council approval. Once a quorum of signatures has been obtained, the applicant can forward the package to IOGC, Lease Administration for final execution.
Step One: Information Requirements - To be submitted to IOGC with the $50.00 application fee in a cheque payable to the Receiver General for Canada.
1. Completed Application Section of surface lease - (this consists of pages 3 and 4 of the surface lease).
2. A legal survey plan (one copy only) prepared in accordance with the Canada Lands Survey Act.
3. An environmental review is required for approval for oil and gas projects on First Nation reserve lands. For complete information and procedures regarding environmental requirements, please refer to the Environment section of the Steps in the Business Cycle.
Once the applicant has met all of the above informational requirements to the satisfaction of IOGC, the applicant will be advised to proceed to step two of the process.
Step Two: Information Requirements - To be submitted to IOGC.
1. Four completed surface lease documents including four original signed and dated Band Council Signatures pages (attached to surface lease document as Band Council Resolution), and Four Applicant’s signature - (attached to surface lease document as Execution By Parties page).
2. Five paper prints of the survey plan (signed by the company and the surveyor).
3. Initial Consideration in a cheque payable to the Receiver General for Canada.
Upon execution by the applicant, Band Council and the Executive Director, Indian Oil and Gas Canada, the applicant will be notified and surface lease with appendices will be issued.
If you have any questions regarding this surface lease application procedure, please call IOGC at (403) 292-5625 and ask for the Lease Administrator who looks after the reserve of interest.
CALGARY#326049 - v1
ABORIGINAL AFFAIRS AND NORTHERN DEVELOPMENT CANADA
INDIAN OIL AND GAS CANADA
INDIAN OIL AND GAS ACT AND REGULATIONS
SURFACE LEASE NO. OS- ______
THIS LEASE is made as of the Effective Date.
BETWEEN:
HER MAJESTY THE QUEEN IN RIGHT OF CANADA, REPRESENTED IN THIS LEASE BY THE EXECUTIVE DIRECTOR OF INDIAN OIL AND GAS CANADA
(“LESSOR”)
and -
COMPANY
(“LESSEE”)
and -
APPROVED BY:
(OFFICIAL BAND NAME)
SURFACE LEASE APPLICATION &TERM SHEET
______
RECITALS
Lessor, with the approval of the Band Council, is authorized by the Regulations to grant surface leases in respect of use and occupancy of Indian lands for operations related to the exploitation of oil and gas. The terms of this Lease have been approved by the Band Council and include terms not expressly provided for in the Regulations but which are jointly considered advisable by the Band Council and Lessor.
1. LEASE COMPONENTS
This Lease consists of the Surface Lease Application and Term Sheet, the Regulations and the following Appendices:
GENERAL TERMS (Appendix “A”)
ENVIRONMENTAL PROTECTION TERMS LETTER (Appendix “B”)
REGISTERED CANADA LANDS SURVEY RECORDS PLAN (Appendix “C”)
NON-OPERATING APPLICANT FORM (Appendix “D”)
AMENDING FORM FOR ACREAGE REVISION (Appendix “E”)
2. SURFACE LEASE APPLICATION PROCESS
Refer to the separate instruction sheet for directions on applying for Indian Oil and Gas Canada surface lease approvals. The instruction sheet has been included with the distribution of this form.
Note: For information on completing this form contact IOGC’s Lease Administration Unit at (403) 292-5625.
3. APPLICANT INFORMATION & LANDS
APPLICANT/LESSEE ______(Insert name) (“Lessee”)
Address ______
City ______Province ______Postal Code______
Phone: ______Fax: ______Place (Province) of Incorporation ______
AGENT (if applicable) ______
Address ______
City ______Province ______Postal Code______
Phone: ______Fax: ______Place of Incorporation______
Lessee is the holder of, or entitled to an interest in one of the following:
Indian Oil and Gas Canada Permit or Lease Number: ______
If the Lessee is not one of the recorded holders of the above oil and gas dispositions, Appendix “D” (attached) must be completed and signed under Corporate Seal or an Affidavit of Execution.
4. FIRST NATION/BAND: (insert name) ______
RESERVE: (insert name and number) ______
5. BAND MEMBERS IN LAWFUL POSSESSION
Lessee shall in accordance with section 27 of the Regulations obtain the signature(s) on the sheet attached to this application, of the band members in lawful possession who are located on the Lands.
6. WELL AND SURFACE LEASE INFORMATION
WELL
Well Target is for Oil ______Gas ______Other ______(specify)
Depth of Well Metres ______Formation ______
Well Surface Location LSD____SEC____TWP____RGE_____W_ M
Target Bottom Hole Location LSD____SEC____TWP____RGE____W_ M
Well will be drilled: conventionally ______directionally ______horizontally ______
Well Name and Location:______
Anticipated Spud Date:______
WELLSITE
Surface Location 1/4____SEC____TWP____RGE_____W_ M
ACCESS ROAD
Surface Location 1/4____SEC____TWP____RGE_____W_ M
1/4____SEC____TWP____RGE_____W_ M
(add more lines as required)
TEMPORARY WORKSPACE
Will temporary working space be required? YES ____ or NO_____.
If YES, indicate location and amount of land required on plans.
OTHER (SPECIFY i.e. borrow pit)
Surface Location 1/4____SEC____TWP____RGE_____W_ M
1/4____SEC____TWP____RGE_____W_ M
Area required for: Hectares
Wellsite ______
Access Road ______
Other (specify) ______
Total ______
Temporary Takings ______
Other (specify) ______
Total: ______
Temporary takings shall be permitted for a period of no more than one year from the Effective Date. Yearly extensions will require written authorization of Lessor and payment of additional rent calculated on a hectares times dollars per hectare basis.
The leased area will be described on Appendix “C” based on the land survey supplied by the applicant Lessee. When the Canada Land Survey plan is received, it will be delivered to Lessee and the Band by Lessor, for inclusion as a revision to Appendix “C” in accordance with Article 4.00 of the General Terms and as such and at such time, will form part of this Lease as a replacement of the land survey supplied by Lessee.
7. LEASE TERMS
7.1 The following initial payment* is payable in compensation for damage to the surface of the land, severance, inconvenience, loss of use, and disturbance (non-annual) together with first year’s Annual Rental, calculated as follows:
(i) Initial Consideration (1st year rental included): $ ______
(ii) Entry Fee $ ______
(iii) Other (specify, eg., TWSP) $ ______
TOTAL INITIAL PAYMENT $ ______
(Payment to be made in favour of Receiver General for Canada, issuance fee paid with application).
(*This may change on receipt of the Canada Lands Survey per clause 4.03 of General Terms)
Annual Rental Payment (2nd and subsequent years) $ ______
7.2 Issuance Fee: $50.00
8. RENT REVIEW
Lessee shall initiate with the Band a rent review prior to the end of each period of ______years (period fixed by the applicable provincial authority or negotiated) from the Effective Date, based on the factors set out in Section 27(2)(b)(ii) of the Regulations. Lessee shall provide Lessor with copies of any correspondence relating to rent reviews.
9. EFFECTIVE DATE & TERM
The Term of the Lease commences on the day of , 20___ (“Effective Date”) and continues (subject to default) until it is terminated either in accordance with section 29 of the Regulations (requiring a band council resolution) or, where Lessor expressly accepts a surrender in accordance with section 44 of the Regulations. In either case, the obligations to abandon the well(s) and reclamation shall survive such termination until fulfilled to the requirements of the Regulations and the satisfaction of Lessor.
10. NOTICES Addresses for Notice:
Lessor: Indian Oil and Gas Canada
Suite 100, 9911 Chiila Blvd.
Tsuu T’ina (Sarcee), Alberta T2W 6H6
Attention: Director, Lease and Royalty Administration
Lessee: (insert name)
(insert address)
Attention:
Fax:
Council: (insert name)
(insert address)
Attention: Chief and Council
Fax:
11. CONDITIONS
Lessee shall use reasonable best efforts to maximize employment and training opportunities to Band members through all phases of exploration and development, using methods developed co-operatively with the Chief and Council.
BAND COUNCIL RESOLUTION AND SIGNATURES OF A QUORUM OF COUNCIL
DATED the ______day of ______20____ BCR No.______
Province______
BAND COUNCIL RESOLUTION OF ______BAND
RECITALS:
A. The Lessee has applied for a surface lease on the terms of the Surface Lease Term Sheet, which have been negotiated with the Council and with Band members in lawful possession (if any), and this Surface Lease represents and sets out those negotiated terms.
B. The Council has reviewed the terms of this Surface Lease, approves its terms and resolves that it shall be executed and issued on these terms.
C. Council wishes this Band Council Resolution to be both the approval of Council, and the Band Council Resolution, as required by section 27 of the Regulations.
NOW THEREFORE CHIEF AND COUNCIL RESOLVE AS FOLLOWS:
1. Indian Oil and Gas Canada be hereby authorised to issue the Surface Lease OS______to which this Band Council Resolution is attached, as of the Effective Date, to the Lessee, on the terms and conditions of the Surface Lease attached.
2. This Band Council Resolution is both the approval required by subsection 27(2)(c)of the Regulations and the resolution of Council required by subsection 27(5) of the Regulations.
______
CHIEF
______
Councillor Councillor Councillor
______
Councillor Councillor Councillor
______
Councillor Councillor Councillor
______
Councillor Councillor Councillor
______
Names of persons in lawful possession (Certificate of Possession) Signature(s)
______
Names of persons in lawful possession (Certificate of Possession) Signature(s)
EXECUTION BY PARTIES
THIS SURFACE LEASE IS EXECUTED AND DELIVERED AS OF
Approved this / day of / 20EXECUTIVE DIRECTOR
INDIAN OIL AND GAS CANADA
Per:______
[insert Lessee name]
Signed in the presence of: Per ______C/S*
Per______
______
WITNESS (If by Power of Attorney**)
*Lessee is required to affix a corporate seal unless the Lease is executed by way of Power of Attorney. If the lease is executed by Power of Attorney, the signature is to be witnessed and the attached affidavit of execution is to be completed before a notary public.
**Lessee must provide an original Power of Attorney to Lessor if one has not already been provided.
AFFIDAVIT OF EXECUTION
CANADA I, ______, of
( witness name)
PROVINCE OF______, ______
(insert province) (city) (province)
TO WIT
______
(insert occupation)
MAKE OATH AND SAY THAT:
1. I was personally present and did see ______named in
(signatory name)
the instrument to which this affidavit is annexed, who is personally known to me to be the person
so named and to hold the position with Lessee as therein indicated, duly sign the said instrument
for the purposes described therein.
2. The aforesaid instrument was executed at______, ______
( insert city/town) (insert province)
and I am the subscribing witness thereto.
3. I know the above party and (s)he is in my belief 18 years of age or more.
SWORN BEFORE ME at______
This ______day of ______20___.
______
A Notary Public in and for the Province of ______
APPENDIX “A”
GENERAL TERMS
(SURFACE LEASE)
______
RECITALS.
A. Lessee has made application for a surface lease under section 27of the Regulations for purposes related to the exploitation of oil or gas on Indian Lands and the approved and executed application form is attached to this Lease as the Term Sheet.
B. Lessee has delivered to Band Council and to any band member in lawful possession of the Lands a copy of its application and a copy of the applicable land survey, has obtained approval of the Band Council and the consent of any band member in lawful possession of the Lands, and that approval and consent is attached to the Term Sheet. A Band Council Resolution has been signed and is attached to the Term Sheet.
C. An environmental review has been completed and environmental terms have been set out, and a copy of these terms is attached as Appendix “B”.
D. A Survey Plan has been obtained and is attached as Appendix “C”, which will subsequently be replaced by a revised final survey plan approved by Canada Lands Survey, when received by Lessor.
LESSOR AND LESSEE AGREE AS FOLLOWS:
1.00 DEFINITIONS AND INTERPRETATION
1.01 The definitions in the Regulations or the Indian Act of terms used in this Lease are incorporated in this Lease, unless the contrary is stated and, where applicable in this Lease,
Annual Rental is described in the Term Sheet;
Appendix means one of the Appendices attached to the Term Sheet;
Band has the meaning given “band” in the Indian Act and where used in this agreement is the band named in the Term Sheet;
Band Council has the meaning given “band council” in the Indian Oil and Gas Regulations, 1995;
Canada Land Survey (CLS) Plan has been approved by the Canada Land Survey Records;
Effective Date is described in the Term Sheet;
Environmental Event means any event on or about the Lands such as without limitation, a leak, spill, emission, escape, deposit or contamination resulting in harm or the reasonable apprehension of harm to the Environment;
Environment means the air, the land and the water, all organic and inorganic matter and living organisms therein and the interacting natural systems variously involving these components;
Federal Crown means her Majesty the Queen in Right of Canada;
General Terms means these Appendix “C” General Terms;
Initial Consideration means compensation for damage to the surface of the land, severance, inconvenience, loss of use, and disturbance (non-annual) and includes first year’s annual rental, as set out in Section 7 of the Term Sheet;
Issuance Fee is the fee prescribed in Schedule II to the Indian Oil and Gas Regulations, 1995 for the issuance of an agreement;
Lands are shown in bold on the plan attached as Appendix “C” and are described in the Term Sheet;
Lease Operations means any operations conducted by or on behalf of Lessee which are related in any way to this Lease including without limitation, Lessee’s operations under any related exploratory licences, mineral dispositions, right of way agreements, or other related agreements;