Energy, Mines, and Resources

Rights

 

Update July 16, 2008

Government of Yukon Oil and Gas Rights Disposition
Fall 2008 Request for Postings

RESULTS

The Fall 2008 RFP closed on July 16, 2008.
No RFPs were received and this disposition in now concluded.

For more information contact Debra Wortley, Rights and Royalties Manager at 867.667.3512

 

Spring 2009 Oil and Gas Rights Disposition

The Spring 2009 Oil and Gas Rights Disposition
closes on January 14, 2009 at 11:00 a.m. Pacific Standard Time


Members of the public are welcome to meet with officials from Oil and Gas Resources to discuss the disposition process at any time.  Please call 867.667.3427 to arrange a meeting, or e-mail us at oilandgasdisposition@gov.yk.ca.

 

Yukon's Oil and Gas Rights Disposition Process

Pursuant to Yukon's Oil and Gas Act  1.3 MB and the Oil and Gas Disposition Regulations  202 KB (OGDR), and the February 2008 amendments to the Oil and Gas Disposition Regulations, rights to oil and gas are granted by the Minister through a competitive disposition process. The disposition process is initiated by persons submitting for consideration a Request for Posting (RFP).  RFPs are expressions of interest to acquire oil and gas rights in specific Locations.  This is followed by an RFP Review, through which the public, First Nations and government agencies may submit representations in respect of environmental, socio-economic and surface access concerns related to the requested Locations.  A Call for Bids (CFB) is the next step in the process and involves persons submitting bids on posted Locations.  The disposition process concludes with Oil and Gas Permits issued to the successful bidders.

The maximum size of a Location submitted in an RFP is limited by the size of a Permit Location, and 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  250 KB.

In the event Oil and Gas Resources receives RFPs that overlap with one another or with Locations that are not available for the disposition of oil and gas rights, the branch will examine the overlap and resolve any conflicts prior to the areas being posted in a CFB. The branch will not post a Location in areas that are not available for disposition. The Minister is not obligated to accept any or all RFPs submitted, or to proceed with a CFB.

At the closing date for RFPs, and upon receipt of an RFP, Oil and Gas Resources will initiate the oil and gas rights disposition process.

If Oil and Gas Resources has not received an RFP by the deadline set out in the Schedule of RFP Closing Dates, or if no RFPs are accepted by the Minister , that disposition will not proceed.

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Request for Postings

Spring 2009 Disposition
Closing Date and Time:
January 14, 2009 - 11:00 a.m. Pacific Standard Time

The Minister of Energy, Mines and Resources of Yukon invites expressions of interest in the form of Requests for Postings (RFPs) for the identification of Locations for Oil and Gas Permits.  Permits grant oil and gas rights in Yukon lands which are sold pursuant to a Call for Work Bids (CFB). “Yukon oil and gas lands” are lands in which oil and gas is under the administration and control of the Government of Yukon. Thus, the invitation for RFPs does not apply to lands such as the Settlement Lands of Yukon First Nations or lands belonging to the Government of Canada.

RFPs should be delivered to:
Request for Postings
Government of Yukon
Department of Energy, Mines and Resources
Oil and Gas Resources
Suite 300, 211 Main Street
Whitehorse, Yukon, Canada
Y1A 2B2

Links to Important RFP Documents:
Persons wishing to submit an RFP are required to complete a Request for Posting Form  42 KB in accordance with the instructions set out in the Guidelines: Request for Posting  268 KB.

Maps
The Yukon Land Status with Oil and Gas Interests map  1.2 MB describes areas available for the disposition of oil and gas rights.

Other useful reference maps are listed in the Guidelines, and may also be found on the Oil and Gas Maps and Data page.

In addition, the Yukon Department of Environment website hosts the Wildlife Key Areas (map) Series.

Other Documents
In addition, persons submitting an RFP may also find useful reference information in the following:

If you have any questions contact us at oilandgasdisposition@gov.yk.ca or call (867) 667-3427.

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Turner Wetland Ecodistrict

Persons interested in obtaining oil and gas rights within the Turner Wetland Ecodistrict should be aware that all or parts of the requested location may not be included in a Call for Bids.  The Yukon Land Status with Oil and Gas Interests shows a representation of the Ecodistrict.  Energy Mines and Resources is currently examining how oil and gas development may occur within this area.  Guidance from research conducted on historical oil and gas exploration practices in the northern Yukon (report expected in 2008), the Peel Watershed Land Use Plan (expected in 2009) and the Wetlands Oil and Gas Best Management Practices (expected in 2008) will assist in determining the type and extent of development.  

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  1.3 MB). The Government of Yukon and Liard First Nation are in the midst of discussions to develop a consent arrangement to open this basin for future oil and gas development. Once a consent arrangement is concluded, the Government of Yukon will include this basin in subsequent rights dispositions processes in accordance with the Schedule of RFP Closing Dates.

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Schedule of RFP Closing Dates 

Submitted Requests for Postings (RFPs) will be reviewed semi-annually in accordance with the following schedule which sets out seasonal deadlines for submission of RFPs for a two-year period.

Date of Disposition RFP Closing Date RFP Review  Call for Bids
Fall 2008

Closed
July 16, 2008

 Not Applicable Not Applicable
Spring 2009 January 14, 2009 February and March 2009 May to mid-June 2009
Fall 2009 July 15, 2009 August and September 2009 Mid-October to November 2009
Spring 2010 January 20, 2010 February and March 2010 May to mid-June 2010

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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.  In the event RFPs are not received, or the requested Locations are not accepted by the Minister, a disposition process is not conducted.

During the RFP Review, RFPs are referred to Yukon First Nations having traditional lands in the RFP Location; and government departments and agencies. Notices of the postings are published and invite the Yukon public to review the RFPs and provide representations related to environmental, socio-economic, and surface access concerns to Oil and Gas Resources.

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
Y1A 2B2
Fax: 867.393.6262
E-mail: oilandgasdisposition@gov.yk.ca

Members of the public may also make arrangements to meet with Oil and Gas Resources to discuss RFPs and submit representations by calling (867) 667-3427. Written submissions will be posted on this web site.

Links to Important Documents:
Those wishing to make representations regarding RFPs may find the following reference material useful:

The Government of Yukon in cooperation with other government agencies, First Nations resource management boards and councils, and other stakeholder groups, has compiled comprehensive regional Biophysical Information.

During the disposition process that took place between 2002 and 2004, Oil and Gas Resources worked with First Nations, government agencies and stakeholder groups to develop the following document: Significant Values and Mitigative Measures Options: A Document for Discussion  for oil and gas activities  1 MB.  This and the biophysical information are important components used in the development of Yukon's Oil and Gas Best Management Practices.

Input received during the RFP review provides 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 recommendations to the Minister regarding the inclusion of requested Locations in a Call for Bids.

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Call For Bids (CFB)

The Call for Bids Process

A Call for Bids may be posted by Oil and Gas Resources following the RFP Review, and is an invitation to persons to submit bids for posted Locations. The Call for Bids is scheduled for a period of approximately 45 days.

In southeast Yukon, where there is a producing gas field and gas distribution infrastructure, the bid system is based on a cash bid.  (Note: this basin is not yet included in Yukon's oil and gas rights disposition process.)

In the North Yukon and Whitehorse Trough regions, the Government of Yukon has adopted a work bid process that requires bidders to bid the amount of expenditures they will commit to the Location over the initial term of a Permit. The minimum work bid that will be accepted is $400,000.

Links to Other Important CFB Documents

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

An Oil and Gas Permit is awarded to the successful bidder having the highest work bid.  In addition, the successful bidder is required to deposit 25 per cent (25%) of the work commitment with the Government of Yukon at the time of the bid. Unsuccessful bidders will have their work deposits and permit issuance fees returned.

The work deposit is returned to the Permit holder(s) proportionately as the funds are spent and work is completed. Refunds for expenditures and purchases are based on the Schedule of Allowable Expenditures included in the Oil and Gas Permit, and the Supplemental Guidelines for the Schedule of Allowable Expenditures in Oil and Gas Permits issued after January 1, 2007.

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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  1.3 MB and associated regulations. Most licences will trigger a public environmental screening process under the Yukon Environmental and Socio-economic Assessment Act (YESAA). Companies are invited 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.

Surrenders

A surrender relinquishes a disposition, in whole or in part, to the Government  of Yukon.  Disposition holders have the legal authority to surrender a disposition.  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.

Transfers

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.  Holders have no legal obligation to register a transfer, however it is highly recommended.  Pursuant to the Yukon Oil and Gas Royalty Regulations, disposition holders are royalty clients and are responsible for royalty payments.

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For additional information please contact:


Debra Wortley
Rights and Royalties Manager
Oil and Gas Resources
Phone: 867.667.3512
Fax: 867.393.6262

Email: debra.wortley@gov.yk.ca or oilandgasroyalties@gov.yk.ca