2014 BILL 15

	15


Third Session, 47th General Assembly 63 Elizabeth II, 2014
BILL 15
AN ACT TO AMEND THE MINERAL ACT
Received and Read the First Time.................................................................................................
Second Reading.................................................................................................................................
Committee..........................................................................................................................................
Third Reading.....................................................................................................................................
Royal Assent......................................................................................................................................
HONOURABLE DERRICK DALLEY Minister of Natural Resources
Ordered to be printed by the Honourable House of Assembly

EXPLANATORY NOTES

This Bill would amend the Mineral Act to

· allow a mineral licence to be extended for an additional 10 year period beyond the 20 year extension period and prescribe requirements for licence holders who retain licences during that additional period; and

· amend the requirements for renewing a mining lease.

A BILL

AN ACT TO AMEND THE MINERAL ACT

Analysis

1. S.22 Amdt.
Issuing of licence

2. S.28 R&S
Extension of licence - 20 years or less

3. S.28.1 Added
Extension of licence - more than 20 years

4. S.31 Amdt.
Mining lease

5. S.41 Amdt.
Regulations

6. Sch. R&S
Schedule A
Schedule B

Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows:

RSNL1990 cM-12
as amended

1. Paragraph 22(3)(b) of the Mineral Act is repealed and the following substituted:

(b) is issued subject to this Act and the regulations, the terms and conditions set out in Schedule A and other terms and conditions that may be set out in the licence or that may be prescribed by regulation.

2. Section 28 of the Act is repealed and the following substituted:

Extension of licence - 20 years or less

28. (1) A licence issued under section 22 may be extended a maximum of 3 times for a period of 5 years each where the licensee

(a) submits to the minister before the expiry of the licence

(i) an application for extension,

(ii) the documentation prescribed by the minister, and

(iii) the fee prescribed by the minister;

(b) has complied with all the terms, provisions and conditions of the licence during its currency; and

(i) filed with the recorder a report of the assessment work and account of expenditures required by Condition 3 of Schedule A for the fifth year of the term of the licence, or

(ii) has been granted an extension under Condition 2 of Schedule A.

(2) An extension of a licence under this section may be issued

(a) for the total area of land covered by the licence; or

(b) for the lesser area that may be contained in the application for extension if the area is surrendered as provided under section 25.

(3) Notwithstanding subsection (1), a licence extended under this section is subject to the following conditions during the period of extension:

(a) that for each 12 month period of the extension, the licensee shall carry out the assessment work prescribed by regulation for the extension instead of the assessment work required for the original term of the licence; and

(b) the licensee shall fulfill all the terms and conditions of or pertaining to the licence as originally granted.

(4) The term of a licence shall expire 5 years after the date on which the original licence was granted or extended.

3. The Act is amended by adding immediately after section 28 the following:

Extension of licence - more than 20 years

28.1 (1) A licence that has been extended 3 times under section 28 may be extended under this section a maximum of 10 times for a period of one year each where the licensee

(a) submits to the minister before the expiry of the licence

(i) an application for extension,

(ii) the documentation prescribed by the minister, and

(iii) the fee prescribed by the minister;

(b) has complied with all the terms, provisions and conditions of the licence during its currency; and

(i) filed with the recorder a report of the assessment work and account of expenditures required by Condition 3 of Schedule B, or

(ii) has been granted an extension under Condition 2 of Schedule B.

(2) An extension of a licence under this section may be issued

(a) for the total area of land covered by the licence if the area is 100 coterminous map staked claims or less; or

(b) for the lesser area that may be contained in the application for extension if the area is surrendered as provided under section 25.

(3) A licence extended under this section shall

(a) be limited to 100 coterminous map staked claims;

(b) not be grouped with other licences issued under this Act; and

(4) Notwithstanding subsection (1), a licence extended under this section is subject to the following conditions during the period of the extension:

(a) the licensee shall carry out the assessment work prescribed by regulation for the extension instead of the assessment work required for the original term of the licence; and

(b) the licensee shall fulfill all the terms and conditions of or pertaining to the licence as originally granted.

(5) The term of a licence extended under this section shall expire one year after the date on which the licence was extended.

(6) A licence that had been extended 3 times under section 28 and that expired between March 12, 2014 and the coming into force of this section is considered not to have expired and shall be valid for 6 months after the coming into force of this section unless an extension under this section is granted earlier.

4. Subsection 31(6) of the Act is repealed and the following substituted:

(6) The minister shall renew a lease for a further term not exceeding 10 years from the date of expiry of the original term of the lease or prior extension of the lease where a lessee

(a) submits a written application no later than 3 months before the expiration of the term of a lease or 3 months before the expiration of a subsequent term;

(b) has complied with the terms and conditions of the lease; and

(c) has demonstrated to the satisfaction of the minister, including through the confirmation of a qualified person, the existence of a mineral resource that is of sufficient size and quality to be potentially economic.

(7) A lease renewed under subsection (6) may be subject to the terms and conditions that the minister considers appropriate.

5. Subparagraphs 41(h)(ii) and (iii) of the Act are repealed and the following substituted:

(ii) assessment work required to be carried out by licensees for the purposes of the Schedules and fixing monetary values and amounts to be spent upon different types and forms of assessment work prescribed by regulation, and

(iii) forms and values of additional assessment work required to be carried out under licences extended under section 28 or 28.1;

6. The Schedule to the Act is repealed and the following substituted:

Schedule A

Conditions of Licence - 20 years or less

Condition 1. The licensee shall spend in each 12 month period during the currency of the licence an amount of money, as is set out in the regulations, on assessment work performed on, in or under the land subject to the licence.

Condition 2. (1) Where the licensee is unable to complete the assessment work required to be done in a 12 month period, the licensee may apply to the minister for an extension of time within which the assessment work may be completed, and the minister may grant one or more extensions of time but each extension shall

(a) not relieve a licensee of obligations under this Act, the regulations or the licence;

(b) not exceed 12 months from the end of the period during which the work would, apart from the extension, have been required to be completed; and

(c) only be granted where, before the end of the year for which the extension is requested, the licensee delivers to the recorder a security deposit in cash or other form that may be prescribed by regulation in an amount equal to the deficiency in the assessment work for the period.

(2) The security deposit referred to in paragraph (1)(c) is given to ensure that the assessment work is completed and, where the work is not completed within the required time and the licensee does not obtain another extension of time, the deposit is forfeit to the Crown.

(3) Where a company has to apply for an extension of time as a result of delays caused by environmental considerations imposed under the exploration approval, the requirement for the delivery of a deposit shall be waived on the request of the licensee.

Condition 3. (1) A licensee shall submit to the recorder within 60 days after the end of each 12 month period of the currency of the licence

(a) an annual report of the assessment work performed during the preceding 12 month period on, in or under the land subject to the licence and the results; and

(b) an account of the expenditure incurred in the performance of that assessment work, which account shall be audited if required by the minister.

(2) Where a licensee is unable, for reasons satisfactory to the recorder, to submit a full annual report within the time required by subsection (1), the recorder may accept a partial report.

(3) Where the recorder accepts a partial report under subsection (2), the licensee shall submit the completed annual report within 120 days after the end of the most recent 12 month period of the currency of the licence.

(4) Where the recorder is satisfied that a licensee has performed sufficient assessment work in previous 12 month terms to cover that required for the current 12 month term, the recorder may waive the requirement of an assessment report for the current term.

Condition 4. (1) A geological, geophysical, geochemical or other scientific survey, whether ground or aerial, made by the licensee before grant of licence in, on, over or under the land subject to the licence, or of an area within which the land or part of the land subject to a licence is situated shall be considered to be assessment work performed during the first 12 month period of the licence if

(a) the survey was made not more than one year before the date of issuing of the licence; and

(b) details and results of the survey and the costs incurred are sent to the recorder with the report of assessment work and expenditures required to be submitted under Condition 3 at the end of the first 12 month period of the licence.

(2) The costs of the surveys referred to in subsection (1) shall be credited to the licensee as assessment work required to be done on the land by the licensee during the first 12 months of the licence.

Condition 5. The cost of assessment work done by a licensee on, in or under the land subject to a licence from the date the land was staked, or from the date the application for a licence was made, to the date the licence was issued may be credited as assessment work in that amount during the first 12 months of the licence if the particulars of the work done are included with the report of assessment work required for that 12 month period.

Condition 6. (1) The costs of assessment work in excess of the minimum required for any 12 month period of the licence may be applied to the costs of assessment work required for the following 12 month periods during the next 9 years with

(a) full application for the excess, if the report of the excess work and an account of expenditure of the work are filed with the recorder at the same time that the reports and accounts are submitted under Condition 3 for the 12 month period during which the excess work is carried out; or

(b) 50% application for the excess if the report of the excess work and an account of expenditure of that work are filed later than the time set out in paragraph (a).

(2) Notwithstanding subsection (1), the costs of assessment work in excess of the minimum required for any 12 month period shall not be applied to the costs of assessment work 20 years after the licence was granted.

Schedule B

Conditions of Licence - More than 20 years

Condition 1. The licensee shall spend during the currency of the licence an amount of money, as is set out in the regulations, on assessment work performed on, in or under the land subject to the licence.

Condition 2. (1) Where the licensee is unable to complete the assessment work required to be done during the licence extension period, the licensee may apply to the minister for an extension of time within which the assessment work may be completed, and the minister may grant not more than 3 consecutive extensions of time but each extension shall

(a) not relieve a licensee of obligations under this Act, the regulations or the licence;

(b) not exceed 12 months from the end of the period during which the work would, apart from the extension, have been required to be completed; and

(c) only be granted where, before the end of the licence extension period, the licensee delivers to the recorder a security deposit in cash or other form that may be prescribed by regulation in an amount equal to the deficiency in the assessment work for the period.

(3) Where a company has to apply for an extension of time as a result of delays caused by environmental considerations imposed under the exploration approval the requirement for the delivery of a deposit shall be waived on the request of the licensee.

Condition 3. (1) A licensee shall submit to the recorder within 60 days after the end of the licence extension period

(a) an annual report of the assessment work performed during the preceding 12 month period, on, in or under the land subject to the licence and the results; and

(b) an account of the expenditure incurred in the performance of that assessment work, which account shall be audited if required by the minister.

(2) Where a licensee is unable, for reasons satisfactory to the recorder, to submit a full annual report within the time required by subsection (1), the recorder may accept a partial report.

(3) Where the recorder accepts a partial report under subsection (2), the licensee shall submit the completed annual report within 120 days after the end of the licence extension period.

(4) Where the recorder is satisfied that a licensee has performed sufficient assessment work in a previous licence extension period to cover that required for the licence extension period, the recorder may waive the requirement of an assessment report for the current licence extension period.

Condition 4. The costs of assessment work in excess of the minimum required for any licence extension period may be applied to the costs of assessment work required for the following licence extension periods during the next 5 years with

(a) full application for the excess, if the report of the excess work and an account of expenditure of the work are filed with the recorder at the same time that the reports and accounts are submitted under Condition 3 for the licence extension period during which the excess work is carried out; or

(b) 50% application for the excess if the report of the excess work and an account of expenditure of that work are filed later than the time set out in paragraph (a).