Exploration Licence
Table of contents
Overview
Companies require surface access rights to First Nation reserve land to explore for oil and gas, typically by conducting a seismic program. IOGC assists First Nations in disposing of these rights through the granting of Exploration Licences, which must be approved by the First Nation's council in the form of a Band Council Resolution ("BCR").
IOGC drafts, issues and administers these contracts and collects ensuing moneys from companies on behalf of First Nations.
IOGC may grant an Exploration Licence pursuant to the Indian Act, Indian Oil and Gas Act, or the Federal Real Property and Federal Immovables Act, but regardless of the legislation it was granted under the Exploration Licence will be subject to the Indian Oil and Gas Regulations, 2019 ("Regulations"), the Canadian Environmental Assessment Act ("CEAA"), and other applicable legislation.
Exploration Licences have a prefix of "EX" followed by a 6-digit number, e.g. EX-999999.
Application Process to Obtain an Exploration Licence
Pre-Application
The applicant must first obtain permission from the First Nation to conduct surveys and collect environmental field information, including Traditional Ecological Knowledge ("TEK") and resident consultation. Any First Nation concerns, including matters of a cultural or historic nature, must be addressed prior to application.
Application
The applicant submits to IOGC: a Surface Tenure Application form; an Environmental Review form; a preliminary map prepared in accordance with applicable provincial standards; and the $25 non-refundable application fee, payable to the Receiver General for Canada. If this is the first application made by an applicant, an Address For Service form will also be required.
Preliminary map requirements are described in the Survey Plan Requirements section.
Forms are available on the IOGC Forms page, or may be requested from the Lease Administration Business Unit.
Processing
IOGC's Environment and Lease Administration units undertake a concurrent review of the application. Upon completion of this review:
- the First Nation and applicant are provided with a draft of the Exploration Licence for review and ratification that includes the environmental protection measures and estimated compensation payable; and
- the First Nation will be asked to provide a BCR
The compensation payable for the Exploration Licence is typically referenced in an existing subsurface contract. If the compensation is not predetermined, surface rates will be negotiated between the company, First Nation and IOGC.
Issuance
Upon granting the Exploration Licence, IOGC will provide the First Nation and applicant with an original copy. Exploration Licences are not registered in the Indian Lands Registry System (ILRS).
Exploration Licences are granted for a period of one (1) year.
Administration of Exploration Licences
Upon the Exploration Licence being granted, the contract holder is required to provide to IOGC:
- Notification within 48 hours of both the commencement and completion of the exploration work using the Exploration Licence Notification form; and
- Submission within 90 days after the day on which the exploration work is completed of various materials, including an exploration report, pursuant to Sections 32(2)(f) and 33(1) of the Regulations.
Forms are available on the IOGC Forms page, or may be requested from the Lease Administration Business Unit.
Payments Due under Exploration Licences
Compensation is payable to the Receiver General for Canada and is to be submitted to IOGC, which collects the funds on behalf of the First Nation.
- Compensation must be paid within 90 days after the day on which the exploration work is completed
A non-refundable $25 application fee, also payable to the Receiver General for Canada, is charged.
For matters such as crop damage or fence cuts, moneys are paid directly to the First Nation.
Environmental Requirements Related to Exploration Licences
An environmental review must be submitted upon application, which is reviewed by IOGC in consultation with the First Nation prior to granting approval.
Reclamation
Reclamation may be required for seismic areas.
For more information regarding environmental requirements, refer to the Environment section of the Business Cycle.