Energy, Mines, and Resources

Oil and Gas Resources

Disposition Process

Pre-Disposition

The disposition process leading up to the issuance of an oil and gas permit or an oil and gas lease.

Oil and Gas Rights Disposition Process – Overview

Rights to oil and gas are obtained through a competitive process. The oil and gas disposition process is initiated when a Request for Posting (RFP) is received by Oil and Gas Resources.

If the Minister accepts the location, a disposition process is launched, and an RFP Review will take place. Based on the submissions from the RFP Review, the Division Head will write a report to the Minister with a recommendation regarding the requested location.

Following the RFP Review, the next step is a Call for Bids (CFB). The disposition process then concludes with Oil and Gas Permits being issued to qualified successful bidders.

The disposition of oil and gas rights in Yukon is governed by the Yukon's Oil and Gas Act 1.3 MB and its regulations.

Request for Postings (RFP)

An RFP is an expression of interest to acquire oil and gas rights in a specific location. Permits grant oil and gas rights in Yukon lands which are sold pursuant to a Call for Bids (CFB). The disposition process has been designed so that the oil and gas industry is able to request locations for which they intend to submit bids. It is the expectation of the Government of Yukon that companies will bid on locations that they have requested in their RFPs.

Persons wishing to submit an RFP are required to complete a Request for Posting (RFP) form 42 KB in accordance with the instructions set out in the Guidelines: Request for Posting 330 KB.

Requests for Postings (RFPs) may be made on Yukon oil and gas lands in which oil and gas is under the administration and control of the Government of Yukon. Invitations for RFPs do not apply to Category 'A' Settlement Lands of Yukon First Nations, or lands belonging to the Government of Canada. For an indication of lands available for the acquisition of oil and gas rights, please refer to the Maps and Data page.

At the closing date for RFPs, and upon receipt of an RFP, Oil and Gas Resources will initiate the disposition process. If an RFP has not been received by the deadline set out in the Schedule of RFP Closing Dates, the disposition process will not proceed. The Minister is not obligated to accept any or all RFPs submitted, or to proceed with a Call For Bids.

In the event one or more RFPs are submitted for locations that overlap, or that include areas not available for the issuance of oil and gas rights, staff at Oil and Gas Resources will resolve any conflicts prior to the publication of a call for bids. Areas or locations that are not available for the issuance of rights will not be included in a CFB.

The size of a requested location may not exceed 500 square kilometres, or the equivalent of 160 sections, or 2 grid areas. For additional information about the Yukon oil and gas land division system see the Oil and Gas Land Division System Poster under the Rights Management Maps and Data section.

Important RFP Documents:

If you have any questions contact us at oilandgasdisposition@gov.yk.ca or call (867) 667-5087.

Peel Watershed Region

A land use plan for the Peel Watershed Region is currently in development. The Government of Yukon has suspended the issuance of new oil and gas rights in this region until September 4, 2012. This was done in order to provide certainty during the ongoing regional land use planning process. The Government of Yukon will continue to facilitate regulatory approvals for surface activities required to access and explore current dispositions. This does not predetermine any outcomes in the planning process. Maps of Yukon showing information related to oil and gas can be found here.

For more information, visit the Regional Land Use Planning website.

Initiative to Open Southeast Yukon for Oil and Gas Development

The Liard Basin located in southeast Yukon is not included in the oil and gas rights disposition process. The Government of Yukon is required to obtain consent of a Yukon First Nation without a final land claim agreement prior to issuing rights and prior to authorizing an activity within its traditional territory (see Oil and Gas Act, Section 13). Once a consent agreement is reached, the Government of Yukon will include this basin in subsequent rights dispositions processes in accordance with the Schedule of RFP Closing Dates.

Schedule of RFP Closing Dates

Requests for Postings can be submitted any time, and will be reviewed semi-annually in accordance with the following schedule.

Date of Disposition	RFP Closing Date	RFP Review	Call for Bids
Fall 2011	closed	N/A	N/A
Spring 2012	January 18, 2012	February and March 2012	End April to mid-June 2012
Fall 2012	July 11, 2012	August and September, 2012	End October to mid-December, 2012
Spring 2013	January 16, 2013	February and March 2013	May to mid-June 2013
Fall 2013	July 3, 2013	August and September 2013	mid-October to mid-December 2013

The Request for Posting Review (RFP Review)

When Requests for Postings (RFPs) are received, the Government of Yukon formally initiates an oil and gas rights disposition by conducting an RFP Review. This process is scheduled for approximately 60 days. Submissions are referred to Yukon First Nations having traditional lands in requested locations. Government departments and agencies are also asked to review the submissions. Notices are published inviting the Yukon public to review the RFPs and provide input. Comments received during the RFP review provide the Division Head with valuable information about environmental, socio-economic, and surface access concerns. This information will be utilized to prepare a report and make a recommendation to the Minister regarding the requested locations.

To participate in the RFP Review Contact:
RFP Review
Government of Yukon
Department of Energy, Mines and Resources
Oil and Gas Resources
Suite 300, 211 Main Street
Whitehorse, Yukon, Canada
Y1A 2B2
Fax: 867.393.6262
E-mail: oilandgasdisposition@gov.yk.ca

Members of the public may also make arrangements to meet with staff at Oil and Gas Resources to discuss RFPs and submit representations by calling 867.667.5087. Written submissions become the property of the Government of Yukon and will be posted on this website.

Links to Important Documents:

Those wishing to make representation regarding RFPs may find the following reference material useful:

Call For Bids (CFB)

The Call for Bids Process

A Call for Bids is an invitation to submit bids for posted locations. The Call for Bids is scheduled for a period of approximately 45 days.

The Government of Yukon has adopted a work bid process for most areas of Yukon. Work bids indicate the dollar amount of expenditures that proponents will commit over the initial term of a permit. The minimum work bid that will be accepted is $400,000. An oil and gas permit is awarded to the successful bidder submitting the highest work bid.

Work Deposits

The successful bidder is required to deposit 25 percent (25%) of the work commitment with the Government of Yukon when submitting the bid. Unsuccessful bidders will have their work deposits and permit issuance fees returned.

Work deposits may be replaced by an irrevocable letter of credit or any other form of negotiable financial instrument acceptable to the Minister. The work deposit is held by the Government of Yukon as security for carrying out the work outlined in the successful bid.

Refund of Allowable Expenditures

As work progresses, the work deposit is refunded to the person who originally furnished it. Refunds are proportionate to the allowable expenditures on work as it is completed. Refunds for expenditures and purchases are based on the Schedule of Allowable Expenditures included in the Oil and Gas Permit, and Supplemental Guidelines for the Schedule of Allowable Expenditures in oil and Gas Permits.

Links to Other Important CFB Documents

Persons submitting a bid may be interested in reviewing previous disposition documents.