HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

Oil and Gas Activities Act

1 Section 1 (2) of the Oil and Gas Activities Act, S.B.C. 2008, c. 36, is amended

(a) by adding the following definition:

"operating area" means an area, identified in a permit, within which a permit holder is permitted to carry out an oil and gas activity; , and

(b) in paragraph (b) of the definition of "related activity" by adding "or facilitates" after "is required for".

2 Section 7 (4) is amended by striking out "provisions of this Act specified by the commissioner in the designation." and substituting "provisions, specified by the commissioner in the designation, of this Act or the regulations made under this Act."

3 Section 24 (4) is amended by adding "other than a water source well," after "drill or operate a well,".

4 Section 25 (4) is amended by striking out "an oil and gas activity is permitted to be carried out under the permit." and substituting "an operating area is located."

5 Section 26 (7) is amended by striking out "on which the applicant for the permit intended to carry out an oil and gas activity." and substituting "notified by the applicant under section 22 (2)."

6 Section 30 is amended by adding ", by order or by imposition of a condition under section 25 (2) (b)," after "The commission".

7 Section 31 is amended

(a) in subsection (1) by striking out "an oil and gas activity is permitted to be carried out under the permit," and substituting "an operating area is located,",

(b) by repealing subsection (9) and substituting the following:

(9) If the commission amends a permit under subsection (7), the commission must provide notice to the land owner referred to in subsection (1) in accordance with subsection (10). , and

(c) in subsection (10) (b) by adding "if the amendment changes the effect of the permit on the land of the land owner" after "amend the permit".

8 Section 44 is amended by adding the following definitions:

"former permit holder" means a person who held a permit that

(a) was cancelled under section 26 or 33,

(b) was declared spent under section 27, or

(c) expired under section 32;

"interest holder", in relation to a permit, means a person who is the owner of the petroleum and natural gas rights or is the holder of the location;

"parties" means a permit holder, a former permit holder and an interest holder; .

9 Section 45 is amended

(a) by repealing subsection (2) (a) and substituting the following:

(a) a well, facility, pipeline, or oil and gas road if

(i) the permit holder or former permit holder with respect to the well, facility, pipeline, or oil and gas road is insolvent, or

(ii) the commission has not been able to identify the permit holder or former permit holder in respect to the well, facility, pipeline, or oil and gas road, or ,

(b) in subsection (6) by striking out "an operator" and substituting "a permit holder or former permit holder" and by striking out "the operator" and substituting "the permit holder or former permit holder", and

(c) in subsection (7) by striking out "operator referred to in subsection (2)" and substituting "parties, jointly and severally," and by striking out "against the operator" and substituting "against the parties".

10 Section 46 is amended

(a) in subsection (1) by striking out "operator" and substituting "permit holder or former permit holder", and

(b) by repealing subsection (4) and substituting the following:

(4) If the commission provides compensation to a land owner, the compensation is a debt payable by the parties, jointly and severally, to the commission and the commission has a right of action against the parties for the recovery of that debt.

11 Section 69 (1) is amended in paragraph (b) of the definition of "determination" and in paragraph (c) of the definition of "eligible person" by striking out "an oil and gas activity is permitted to be carried out under this Act," and substituting "an operating area is located,".

12 Section 70 (1) is amended by striking out "an oil and gas activity is permitted to be carried out under this Act," and substituting "an operating area is located,".

13 Section 71 (2) (b) is repealed and the following substituted:

(b) a permit is issued that locates an operating area on the land of a land owner, .

14 Section 72 is amended

(a) in subsections (2) and (5) (b) by striking out "an oil and gas activity is permitted to be carried out under this Act" and substituting "an operating area is located",

(b) in subsection (5) (c) by striking out "the land owner of the land on which the applicant for the permit intended to carry out an oil and gas activity" and substituting "a land owner notified by the applicant under section 22 (2)", and

(c) in subsection (5) (d) by striking out "oil and gas activity is permitted to be carried out under the permit" and substituting "operating area is located".

15 Section 99 is amended

(a) in subsections (1) (q) and (2) by striking out ", as defined in section 47.4 (1) of the Forest Act,", and

(b) by adding the following subsection:

(3) In this section, "master licence to cut" has the same meaning as in the Forest Act.

16 Section 106 (3) is amended by adding "(c)," after "(b),".

17 Section 117 (2) is amended by adding the following paragraph:

(d) a certificate issued under section 2 of the former Act and in effect immediately before the repeal of the former Act.

18 Section 118.1 is amended by adding "on private land" after "permit to maintain".

Petroleum and Natural Gas Act

19 Section 1 of the Petroleum and Natural Gas Act, R.S.B.C. 1996, c. 361, is amended

(a) by adding the following definition:

"Crown reserve" means petroleum and natural gas reserved to the government under section 70; ,

(b) by repealing the definition of "cubic meter" and substituting the following:

"cubic metre" means a cubic metre of a substance measured at 101.325 kPa and 15°C; , and

(c) by repealing the definition of "plant liquids".

20 The following section is added to Part 2:

Delegation

5.1  (1) The director may

(a) delegate the exercise of any power or performance of any duty conferred or imposed on the director under this Act to an employee of the ministry of the minister, and

(b) provide, in making a delegation, directions that are binding on the delegate respecting the exercise of the power or the performance of the duty.

(2) A delegation under subsection (1) may be made by name or by designation of the office.

21 Section 37 is repealed.

22 Section 38 (1) is amended by striking out "petroleum, natural gas or both on land" and substituting "petroleum or natural gas, or both,".

23 Section 47 (7) is amended

(a) by striking out "a penalty of" and substituting "a prescribed penalty.", and

(b) by repealing paragraphs (a) and (b).

24 Section 49 is amended

(a) by adding "to an area approved by the minister." after "may be reduced", and

(b) by repealing paragraphs (a) and (b).

25 The following Part is added:

Part 5.1 — Drilling Licences

Drilling licence

49.1  (1) The holder of a drilling licence has the exclusive right to apply under the Oil and Gas Activities Act to drill for the Crown reserves referred to in the licence.

(2) The issuance of a drilling licence does not prohibit a person other than the holder of the drilling licence from carrying out, in accordance with the Oil and Gas Activities Act, geological work or geophysical exploration in the location described in the licence.

(3) An application for a drilling licence must be made in accordance with the regulations.

(4) The minister may

(a) refuse to issue a drilling licence, or

(b) issue a drilling licence, on payment of the prescribed fee and rent.

(5) The minister's refusal under subsection (4) is final.

Rent

49.2  (1) A holder of a drilling licence must pay the prescribed rent in accordance with the regulations.

(2) If a holder of a drilling licence fails to comply with subsection (1), the drilling licence expires on the prescribed date.

(3) If a drilling licence expires under subsection (2), the minister may reinstate the licence if

(a) the minister is satisfied that the former licensee's failure to comply was inadvertent or the result of circumstances, other than financial circumstances, beyond the control of the former licensee, and

(b) the former licensee makes an application under section 49.1 and pays the prescribed reinstatement fee.

(4) If the minister reinstates a drilling licence under subsection (3), the licence is conclusively deemed not to have expired under subsection (2).

Issuance of lease to holder of drilling licence

49.3  Despite section 71, the minister, in the prescribed circumstances, may issue under section 53 a lease to a holder of a drilling licence.

26 Section 50 is amended

(a) in subsection (2) (a) by striking out "from the location of the lease," and substituting "referred to in the lease,", and

(b) in subsection (3) by adding "or drilling licence" after "a permit".

27 Section 52 (1) is repealed and the following substituted:

(1) A permittee who meets the prescribed requirements may apply, during the term of the permit, for a lease respecting all or part of the location of the permit.

28 Section 54 is repealed and the following substituted:

Rentals

54  (1) Without limiting section 133, the Lieutenant Governor in Council may make regulations respecting annual rental payments for leases.

(2) A lessee must pay the prescribed rent in accordance with the regulations.

29 Sections 55 to 57 are repealed.

30 Section 58 is amended

(a) in subsection (1) (b) by adding "prescribed" after "subject to a", and

(b) by repealing subsection (2).

31 Section 62 is repealed and the following substituted:

Continuation with penalty

62  (1) Subject to regulations, if any, made under section 133 (2) (n.1), the term of a lease not continued under section 58 (3), 61 or 61.1 may be continued, on payment to the government of the prescribed rental and the prescribed penalty, for one year in respect of all or part of its location.

(2) A lease

(a) may not be continued under subsection (1) more than 3 times, and

(b) may be continued under subsection (1) immediately after

(i) the expiry of a previous continuation under that subsection, or

(ii) a continuation under section 58 (3), 61 or 61.1.

32 Section 63 is amended

(a) by renumbering the section as section 63 (1),

(b) in subsection (1) by striking out "or do work required under section 56",

(c) in subsection (1) (a) by striking out "and does the work",

(d) in subsection (1) (b) by striking out "and value of the work", and

(e) by adding the following subsections:

(2) If a lease expires under subsection (1), the minister may reinstate the lease if

(a) the minister is satisfied that the lessee's failure referred to in subsection (1) was inadvertent or the result of circumstances, other than financial circumstances, beyond the control of the lessee,

(b) there has been, during the period starting on the date of the expiry and ending on the date of the reinstatement, no disposition under this Act of rights to petroleum and natural gas that were subject to the lease, and

(c) the former lessee makes an application under section 51 and pays the prescribed reinstatement fee.

(3) If the minister reinstates a lease under subsection (2), the lease is conclusively deemed not to have expired under subsection (1).

33 Section 64 is amended

(a) by renumbering the section as section 64 (1),

(b) in subsection (1) by striking out "a new lease issued," and substituting "one or more new leases issued,", and

(c) by adding the following subsection:

(2) A new lease issued under subsection (1)

(a) must be for an area that

(i) falls within the boundaries identified in the surrendered lease, and

(ii) is at least one spacing area in size,

(b) must have the same expiry date as the surrendered lease, and

(c) must not result in a spacing area being divided.

34 Section 65.1 is amended by adding the following subsection:

(2.1) Despite any applicable order made under subsection (2), a pool or a portion of a pool on a parcel of land, or a location, must be considered, for the purposes of section 58, to be divided into normal spacing areas in accordance with section 65, unless the minister orders otherwise.

35 Section 117 (4) and (6) is repealed.

36 The following sections are added to Part 13:

Electronic form

125.1  A permit, lease and drilling licence may be issued in electronic form.

Relief respecting rental payments

125.2  (1) On application under subsection (2), the minister may exempt a person from an obligation under this Act to make a rental payment, or relieve the person from a consequence under this Act on failure to make a rental payment, if the minister is satisfied that the person is in the prescribed circumstances.

(2) An application for a reduction under subsection (1) must be made in accordance with the regulations.

37 Section 133 is amended

(a) in subsection (2) by repealing paragraphs (c), (d), (e), (n) and (o) and substituting the following:

(c.1) prescribe penalties for the purposes of section 47 (7);

(c.2) make regulations respecting drilling licences and, without limiting this, prescribe fees and rents for the purposes of sections 49.1 and 49.2, dates for the purposes of section 49.2 (2), reinstatement fees for the purposes of section 49.2 (3) (b) and circumstances for the purposes of section 49.3;

(d.2) make regulations respecting the dimensions of locations of permits and leases;

(d.3) prescribe requirements for the purposes of section 52 (1);

(d.4) prescribe rents for the purposes of section 54 (2);

(d.5) prescribe special projects for the purposes of section 58 (1) (b);

(e.1) make regulations respecting the expiry of leases and drilling licences, including, without limiting this, regulations authorizing the minister, in the prescribed circumstances, to extend expiry dates for leases and drilling licences;

(n.1) make regulations respecting eligibility for continuation under section 62;

(n.2) prescribe rentals and penalties for the purposes of section 62, including different penalties for different continuations;

(x) prescribe circumstances for the purposes of section 125.2 (1) and make regulations respecting applications under section 125.2 (2);

(y) make regulations exempting, with or without conditions, a person or a class of persons from a provision of this Act or the regulations. , and

(b) by repealing subsection (3).

38 Section 134 (1) is amended by striking out "$500 or more than $5 000." and substituting "$5 000 or more than $100 000."

Strata Property Act

39 Section 1 (1) of the Strata Property Act, S.B.C. 1998, c. 43, is amended

(a) in the definition of "contingency reserve fund" by striking out "that usually occur less often than once a year or that do not usually occur", and

(b) in the definition of "operating fund" by striking out "that usually occur either once a year or more often than once a year".

40 Section 35 (1) (c) (i) is amended by striking out "parking stall numbers," and substituting "parking stall and storage locker numbers,".

41 Section 89 (1), (2) and (5) is amended by striking out "the purchaser" and substituting "the purchaser or, if the strata lot is conveyed to the purchaser and the purchaser becomes the owner of the strata lot, that owner".

42 Section 92 (a) is repealed and the following substituted:

(a) an operating fund for common expenses that

(i) usually occur either once a year or more often than once a year, or

(ii) are necessary to obtain a depreciation report under section 94, and .

43 Section 96 is repealed and the following substituted:

Expenditures from contingency reserve fund

96  The strata corporation must not spend money from the contingency reserve fund unless the expenditure is

(a) consistent with the purposes of the fund as set out in section 92 (b), and

(b) approved or authorized as follows:

(i) the expenditure is first approved by a resolution passed by

(A) a majority vote at an annual or special general meeting if the expenditure is

(I) necessary to obtain a depreciation report under section 94, or

(II) related to the repair, maintenance or replacement, as recommended in the most current depreciation report obtained under section 94, of common property, common assets or the portions of a strata lot for which the strata corporation has taken responsibility under section 72 (3), or

(B) a 3/4 vote at an annual or special general meeting if the expenditure is not described in clause (A) (I) or (II);

(ii) the expenditure is authorized under section 98.

44 Section 109 is amended

(a) in paragraph (a) by striking out "the seller owes" and substituting "the person who is the owner of the strata lot immediately before the date the strata lot is conveyed owes", and

(b) in paragraph (b) by striking out "the purchaser owes" and substituting "the person who is the owner of the strata lot immediately after the date the strata lot is conveyed owes".

Commencement

45  The provisions of this Act referred to in column 1 of the following table come into force as set out in column 2 of the table: