Energy, Mines and Resources

Oil and Gas Resources

Active Disposition

Beyond the Disposition Process

Although the disposition process results in the granting of rights to oil and gas, regulatory authorizations are needed to proceed with oil and gas activities. Prior to any oil and gas exploration or development, companies must obtain a licence pursuant to Yukon’s Oil and Gas Act  1.1 MB and associated regulations. If companies want to conduct oil and gas activities on land with other surface rights, they will require the permission of the landholder.  Most licences will trigger a public environmental screening process under the Yukon Environmental and Socio-economic Assessment Act (YESAA). Companies are encouraged to examine Yukon's Oil and Gas Best Management Practices before deciding on the type and timing of activities. Other authorizations such as a Land Use Permit or a Water Licence may also be required, depending on the nature and scope of the project.


Active Disposition

The period when there is a valid oil and gas permit or oil and gas lease.


Issuance of an Oil and Gas Permit

An oil and gas permit confers the right to explore and remove oil and gas for the purpose of testing in the permitted location. Subject to other provisions, a permit also confers the right to obtain an oil and gas lease for productive zones in the location. A standard version of the oil and gas permit is available here.


Grouping of Permits

Permits may be temporarily grouped for the purpose of drilling a qualifying well. An application to group Yukon permits must be made before the expiry of the permits' initial terms and before drilling of the proposed well has commenced. Permittees must also provide evidence that the proposed well will evaluate oil or gas in each of the permit locations. In order to be included in a group, permits must be contiguous and cannot form part of another group.  For more information about grouping permits see Guidelines: Grouping Permits and the Application to Group Yukon Permits.


Renewal of an Oil and Gas Permit

The initial term of a permit is six years. A permit may be renewed for all or part of the location if a qualifying well is drilled during the initial term. Permit holders must remain in compliance with the terms of the permit, licences, and the Oil and Gas Act and its regulations. The maximum duration of a permit cannot exceed 10 years.


Conversion of a Permit to Lease

An oil and gas lease grants exclusive rights to recover oil and gas in the location of the lease. Application for an oil and gas lease can be made by the permit holders at any time during the term of a permit. Leases will only be issued for productive zones, and holders must provide evidence to support the application. Application must be made at least 60 days in advance of a permit expiring. For more information see Guidelines: Application for Oil and Gas Lease.


Renewal of an Oil and Gas Lease

The first term of an oil and gas lease is 10 years. Leases may be renewed for further terms of five years for spacing areas with proven productive zones.


Designated Representative and Official Service Address

When a permit or lease is held by two or more holders, one of the holders or another person must be designated as the representative for the disposition. The designated representative shall provide an official service address.


Statutory Notices

Statutory notices are documents notifying Oil and Gas Resources about security instruments pertaining to Yukon oil and gas dispositions. Statutory notices may be registered with Oil and Gas Resources, however, there is no legal obligation to do so.

With the exception of a court order or judgment, these statutory notices, and all the guidelines, can be downloaded from Guidelines and Forms.

The list of statutory notices are as follows:


Transfer

A disposition transfer changes the ownership of an oil and gas disposition. There are two ways that a disposition can be transferred. The Minister has the authority to transfer a disposition if a holder is ineligible.  However, most disposition transfers occur at the discretion of the holder(s). Transfers can be registered with Oil and Gas Resources. Pursuant to the Yukon Oil and Gas Royalty Regulations, disposition holders are royalty clients and are responsible for royalty payments. Guidelines and forms pertaining to transfers are available.


Surrender and Partial Surrender

A disposition surrender relinquishes a disposition, in whole or in part, to the Government of Yukon. Sometimes certain stipulations or obligations apply, and must be fulfilled before a surrender will be authorized. Under specific conditions, a disposition may be reinstated within 90 days of a surrender. Guidelines and forms pertaining to surrenders are available.

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