Yukon Oil & Gas Licensing ProcessYukon Oil and Gas Licensing Process 19 KB Under the Yukon’s Oil and Gas Act, a licence is required to carry out all oil and gas activity in the territory. Oil and gas activity includes:
A Geoscience Exploration Licence is required for any oil and gas exploration activity. This includes investigations of the subsurface of the earth using direct or indirect methods. A direct method would be to conduct geological mapping over an area of interest. An indirect method would be to complete a seismic survey. A Geoscience Exploration Licence may be obtained in Yukon without an oil and gas disposition. A Well Licence is required to drill an oil or gas well. A company must hold a disposition which grants subsurface oil and gas rights before it can obtain this licence. A Pipeline Licence is required for the construction and operation of a pipeline that is wholly contained in Yukon Territory. (A transboundary pipeline falls under the jurisdiction of the federal government.) A Gas Processing Plant Licence is required for any activity related to the construction and operation of a plant that extracts hydrogen sulphide, helium, natural gas liquids and other substances from natural gas. A Field Facility Licence is required for activity related to the construction and operation of an oil and gas facility such as a battery, an oil treater, a pumping station, a waste disposal facility or a compressor station. Prior to issuance of a licence, a three-step process is undertaken that consists of:
The operations review ensures the proposed project will be conducted safely and to accepted industry standards. The application is examined by the Oil and Gas Management Branch to ensure that the proposed operations comply with the Oil and Gas Act and the appropriate regulations. Adherence to other territorial legislation and standards from the Department of Environment, the Department of Community Services, the Yukon Worker's Compensation Health and Safety Board and the Heritage Branch of the Department of Tourism is also verified. The operations review is complete when all the required information has been received and examined and the program operations deemed as acceptable or unacceptable. Conditions to the licence regarding operations may be stipulated or the licence may be denied. Step 2: Environmental Assessment All jurisdictions review proposed oil and gas activities to determine the risk of an activity before it starts. The proposed activity is then accepted, rejected, or permitted - subject to conditions - to minimize the environmental impact. The following illustrates the reviews and processes in the Yukon.
Step 3: Consent from First Nations In areas where land claims have not been settled, the Oil and Gas Act stipulates that a licence authorizing any oil and gas activity in the traditional territory of the Yukon First Nation cannot be issued without the consent of that First Nation. Issuing a licence Once the operations review and environmental assessment are completed to the satisfaction of the Oil and Gas Management Branch and consent from appropriate First Nations is received, a licence is issued to the applicant. The licence may have conditions or terms attached which could specify the timing and duration of operations, environmental protection measures, equipment, procedures, tests, analyses, and notification requirements to trappers, outfitters and other resource users in the area before commencement of activity. Once the licence is issued, First Nations and territorial and federal government departments with an interest in the oil and gas activity are notified. The issuance of an oil and gas licence does not necessarily mean that activity can immediately begin. Oil and gas activities require a Land Use Permit. In addition, proposed activities may fall under the jurisdiction of other territorial government departments and be subject to their regulations. Finally, if the estimated expenditures for the proposed project are greater than $1 million, a benefits agreement must be in place before any activity can commence. Issuance of a Land Use Permit where required Under the Territorial Lands Act (Canada) and the associated regulations, most oil and gas exploration activities require a Land Use Permit and an assessment under YESAA. The Land Use Permit application review also includes an operations review. Development of a benefits agreement where required A benefits agreement is required for all projects with estimated expenditures of over one million dollars in the Yukon. A benefits agreement identifies employment and training opportunities for Yukon residents including Yukon First Nations and residents of communities affected by oil and gas activity. It also identifies opportunities for Yukon businesses to supply goods and services to the licensee and the licensee's contractors. The agreement is negotiated by the licensee, the Minister on behalf of the Yukon government and the Yukon First Nation(s) on whose settlement land or traditional territory the oil and gas activity will be conducted. Inspection of oil and gas activity Once the company has been issued a licence and obtains the necessary agreements and permits, work can begin on the project. Any incidents that result in injury to workers or damage to the environment or equipment must be reported immediately to the Government of Yukon. In addition, the territorial and federal governments can at any time inspect the operation to ensure compliance with the regulations.
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