Energy, Mines, and Resources

Legislative and Regulatory Framework

  • Legislative and Regulatory FrameworkCommon Oil and Gas Legislative Regime
    • The Legislation
    • YOGA Applies to Oil and Gas operations
    • Adoption of Laws by Reference
    • Integrated Management
  • Regulations
    • Oil and Gas Transfer Regulations
    • Oil and Gas Disposition Regulations
    • Oil and Gas Licence Administration Regulations
    • Oil and Gas Geoscience Exploration Regulations
    • Oil and Gas Drilling and Production Regulations
    • Draft Oil and Gas Royalty Regulations
    • Draft Oil and Gas Pipeline Regulations
    • Contact

Common Oil and Gas Legislative Regime

Since 1997 the Yukon Government and Yukon First Nations have worked together to coordinate the development of an oil and gas regime in Yukon.

The objective of the common oil and gas regime is to provide a consistent regulatory process throughout Yukon. This cooperative effort has many advantages:

  • It clearly defines the rules, thereby creating more certainty for industry.
  • Common conservation rules make it easier to deal with deposits that straddle boundaries.
  • Common management of data makes it easier and quicker to learn about the Yukon’s oil and gas resources.
  • Adoption of Yukon legislation and regulations by First Nations is a cost-effective method of developing their respective oil and gas regimes.
  • Common administration of oil and gas activity is more efficient and less costly.
  • Adoption of a common regime avoids legal disputes.

 

The Legislation

The Yukon Oil and Gas Act  1.3 MB (YOGA), which consists of five parts, is the nucleus of the regime and addresses:

  • Part 1: administration
  • Part 2: oil and gas rights
  • Part 3: operations
  • Part 4: general matters such as audits, offences and penalties, and evidence, and
  • Part 5: transitional and commencement matters

 

YOGA Applies to Oil and Gas Operations

YOGA was structured and written to apply to all oil and gas operations in the territory. For example, Part 3 of the Act  1.3 MB, dealing with oil and gas operations, applies throughout Yukon. It is a law of general application under which approved operations apply to both Yukon First Nations and Yukon oil and gas lands. If the operations relate to Yukon First Nations lands, an agreement may be concluded with the relevant Yukon First Nation respecting the coordinated management and regulation of oil and gas activities, and the recovery of oil or gas from a field or pool.

 

Adoption of Laws by Reference

To ensure that the same rules apply throughout Yukon, Yukon First Nations have the option of incorporating by reference the Yukon Oil and Gas Act  1.3 MB or parts of it relating to the disposition and management of oil and gas rights. At this time, Yukon First Nations have not passed any legislation relating to oil and gas.


Integrated Management

The Act  1.3 MB allows for the possibility that Yukon First Nations oil and gas interests form part of an overall, integrated management approach. Three examples of such provisions are:

  • Grouping of Yukon government and Yukon First Nation permits.
  • Negotiating joint benefits agreements that pertain to both Yukon lands and Yukon First Nation settlement lands between the Yukon Government, affected Yukon First Nations and the licensee.
  • Potential for pooling and unitization which could involve both Yukon Government and Yukon First Nations settlement lands.

Regulations

To date the Yukon Government has enacted five regulations under YOGA. In addition, Royalty and Pipeline regulations are under development.

Regulation Enacted/Drafted
Oil and Gas Transfer Regulations  258 KB November 1998
Oil and Gas Disposition Regulations  201 KB Under Review
Oil and Gas Drilling and Production Regulations  1.5 MB July 2004
Oil and Gas Geoscience Exploration Regulations  126 KB July 2004
Oil and Gas License Administration Regulations  223 KB July 2004
Oil and Gas Royalty Regulations (Draft) Draft March 2007
Oil and Gas Pipeline Regulations (Draft) In progress

 

Oil and Gas Transfer Regulations

The Oil and Gas Transfer Regulations  258 KB are currently in existence but are under review.

 

Oil and Gas Disposition Regulations

The Oil and Gas Disposition Regulations  201 KB establish the rules regarding the issuance and management of oil and gas rights in Yukon. They outline:

  • The methods and rules for land division and surveying.
  • How oil and gas rights in the territory can be issued.
  • The management of dispositions (grouping, conversion, amendment, cancellation, surrender).
  • The requirements for permits and leases, fees and rentals.
  • The reporting requirements and confidentiality.
  • The process for registering transfers and security notices of Yukon oil and gas dispositions.

 

Oil and Gas Licence Administration Regulations

The Oil and Gas License Administration Regulations  223 KB establish the rules for obtaining licences to conduct oil and gas operations in Yukon. They outline:

  • Administrative procedures for the licensing of oil and gas activity in Yukon.
  • The levels of liability and financial responsibility.
  • Application fees for oil and gas licences.
  • The rules for appeals to the Minister with respect to oil and gas activity on First Nation Category A Settlement Lands.
  • The rules for surveying and survey monuments.
  • The threshold level for benefits agreements.
  • The rules for gas export licences that must be in place before gas can be removed from the territory.

 

Oil and Gas Geoscience Exploration Regulations

The Oil and Gas Geoscience Exploration Regulations  126 KB regulate petroleum exploration activities throughout the territory. Geoscience involves all aspects of preliminary surface and near-surface exploration such as:

  • Geological field studies.
  • Aerial magnetic and gravity surveys.
  • Seismic programs.

The regulations describe licensing and reporting requirements, penalties, geophysical and geological operations, safety and health as well as environmental safeguards.

 

Oil and Gas Drilling and Production Regulations

The Oil and Gas Drilling and Production Regulations  1.5 MB regulate drilling operations, well operations, field facility construction and operations, and production and conservation activities in Yukon. They cover:

  • Well licensing and well operations approval processes.
  • Safety and environmental protection.
  • Inspection and investigations.
  • Reporting, compliance and enforcement.
  • Well evaluation and abandonment requirements.

 

Draft Oil and Gas Royalty Regulations

The draft Oil and Gas Royalty Regulations regulate the payment of royalties. Royalty revenues are the principal fiscal means by which the resource owner is compensated for the extraction of its oil and gas resources.

These regulations will play a pivotal role in creating a competitive fiscal environment necessary to attract new investment and activity.

An ad valorem royalty is proposed with a base rate of 10 per cent. The royalty regime is intended to be both competitive and administratively simple.

 

Draft Oil and Gas Pipeline Regulations

The draft Oil and Gas Pipeline Regulations regulate the design, construction, operation and abandonment of oil and gas pipelines wholly within Yukon.

Contact Us:

Debra Wortley – Rights Disposition Manager
Phone: 867.667.3512
E-mail: debra.wortley@gov.yk.ca

Richard Corbet – Chief Operations Officer
Phone: 867.667.3565
E-mail: richard.corbet@gov.yk.ca

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