Consolidation Frequently Asked Questions

The consolidated agreement will assume one of the agreement numbers from the group of agreements being consolidated, based on term dates.

If the agreements being consolidated all have the same term date, the resulting consolidated agreement will be assigned the lowest agreement number from the group.

If the agreements being consolidated have different term dates, the resulting consolidated agreement will be assigned the agreement number with the earliest expiring term date.  Refer to IL 2010-10.

“Be in the same term” means that the agreements being consolidated must all either be in their intermediate term, primary term, or same continued term, such as all under a Section 15, or all under a Section 16 or all under a Section 17 or all under Section 82.1. 

In the case of shallow rights reversion (Section 82.1 of the Mines and Minerals Act) agreements, would the following be considered in the ‘same term’?

• Agreement A is continued indefinitely under Section 15; and
• Agreement B was continued indefinitely under Section 15 but was served a notice under Section 82.1 or Section 18. 

These agreements are not considered to be in the same term.  Both agreements have to be continued indefinitely under Section 15 or both under notice pursuant to Section 82.1.  Agreements under notice pursuant to Section 18 may not be consolidated because to do so may remove the obligation under notice from one agreement. That is not the purpose of consolidation.

Rights in the context of  IL 2010-10 refers to the areal lands held in an agreement and the vertical petroleum and natural gas rights. 

For stacked consolidations, contiguous rights means the agreements being consolidated must have no break in the vertical rights. For example:

• Agreement A is comprised of sections 2; 3; PNG to base Viking.
• Agreement B is comprised of sections 2; 3 PNG below base Viking to base Mannville.

These agreements can be consolidated.

No. Once a consolidation is finalized, it cannot be reversed. These are your options:

• If the consolidation is areal, a partial land Transfer can be done.
• If the consolidation is stacked, it cannot be transferred out.  Once a consolidation of stacked agreements occurs, it cannot be reversed as the legislation does not provide for a partial transfer of rights.