News Releases 2013

C-NLOPB Announces 2013 Call for Nominations and Improvements to the Land Tenure System

For Immediate Release
December 19, 2013

The Canada-Newfoundland and Labrador Offshore Petroleum Board
(C-NLOPB) is announcing the implementation of a new scheduled land tenure system, proposed changes to the terms of exploration licences and the 2013 Call for Nominations.

A scheduled land tenure system has been developed by the C-NLOPB to improve transparency, predictability and input. The system provides additional time for exploration companies to conduct geoscientific assessments of the hydrocarbon prospectivity in the lesser explored basins of the Newfoundland and Labrador offshore area. Companies may then nominate Areas of Interest, which may be included in a Call for Bids. The system will now operate in four year, two year and one year cycles and is designed to take into account variances in the volume of data collection in basins and geoscientific knowledge.

Under the new system, the Newfoundland and Labrador Offshore Area will be subdivided into three categories based on level of oil and gas activity. Low Activity regions generally have few exploratory wells and limited seismic data acquisition. High Activity regions typically have elevated activity levels including 2D and 3D seismic data acquisition and exploration drilling. A Mature region would have substantial 2D and 3D seismic data coverage, in addition to extensive exploration/delineation drilling and production activities.

The different time cycles and the schedules are as follows:

  • The four-year cycle will be implemented for all regions that fall within the Low Activity category. In this cycle, a Call for Nominations (Areas of Interest) will be announced in the fall of the year and the Call for Bids (Parcels) will close in the fall, four years later. This cycle will be announced every two years and will provide interested parties with as much as 48 months to explore and assess the region.
  • The two-year cycle is designed for regions classified as High Activity. In this cycle, a Call for Nominations (Areas on Interest) will be announced in the fall of the year and the Call for Bids (Parcels) will close in the fall, two years later. This cycle will be announced every year and will provide interested parties with as much as 24 months to explore and assess the location defined in the call.
  • The one-year cycle will be maintained for the Mature region. As has been the case in the past, a Call for Nominations (Areas of Interest) in the Mature region (e.g. the Jeanne d’Arc Basin) may go out every year in the fall, the Call for Bids (Parcels) will be announced in the spring of the following year, and the Call for Bids (Parcels) will close in the fall of the same year. This cycle will proceed annually based on nominations from interested parties and assessment by the C-NLOPB.
  • The one-year cycle will also be maintained for any lands not publically announced in the scheduled system. Any Call for Nominations (Areas of Interest) and Call for Bids (Parcels) will proceed annually based on industry nominations and assessments by the C-NLOPB. This model will mirror the schedule discussed for the Mature region.

Effective immediately, for licences under the new system, “allowable expenditures” are defined as those respecting an exploration licence incurred from the initial announcement of the Call for Nominations (Areas of Interest) for that scheduled round, up to and including the effective date of an exploration licence issued from that round. This is in addition to the traditional allowable expenditure terms and conditions which can be found in the sample exploration licences offered in the Calls for Bids 2013 on the C-NLOPB website.

The following changes to the terms and conditions of licences will take effect pending Ministerial ratification:

  • An increase of the minimum bid to $10 million, for all offshore regions.
  • All exploration licences will now have a consistent and uniform Period I, which shall be of 6 years followed by Period II. Period I can be extended by payment of a drilling deposit and upon validation of the licence; Period II will be the remainder of the exploration licence. The full length of the licence term remains at 9 years.
  • Exploration licence terms will provide for escalating drilling deposits to extend Period I. If a drilling deposit is posted, it will be refunded in full if the well commitment is met during the respective extension period. Otherwise, the drilling deposit will be forfeited to the Receiver General upon termination of that period extension. The escalating drilling deposits for Period I extensions are as follows:
    • Period I A (Year 6 to Year 7): 1 year extension –
      $5 million
    • Period I B (Year 7 to Year 8): 1 year extension –
      $10 million, forfeiture of $5 million deposit paid in the year previous.
    • Period I C (Year 8 to Year 9): 1 year extension –
      $15 million, forfeiture of the $10 million paid in the year previous.

    The 2013 Call for Nominations (Areas of Interest) include the Labrador South Region (NL 13-01LS – 4 year cycle) and Eastern Newfoundland Region (NL 13-01EN – 2 year cycle). Further details regarding the Call for Nominations (Areas of Interest) process are available in the Scheduled Land Tenure document. Interested parties are advised that work is underway to prepare the Eastern Newfoundland Strategic Environmental Assessment report.

    There will be no call for nominations regarding non-scheduled regions at this time.

    Media Contact:
    Sean Kelly M.A., APR, FCPRS
    Manager of Public Relations
    (709) 778-1418 – office
    (709) 689-0713 – cellular
    skelly@cnlopb.nl.ca


News Releases 2013

DateUpdate
2013, Dec 19C-NLOPB Announces 2013 Call for Nominations and Improvements to the Land Tenure System
2013, Dec 13Statement to the Media – Shoal Point Energy Licence Extension Request
2013, Nov 18Statement to the Media – Updated Reserves/Resources
2013, Oct 28North Amethyst Development Plan Amendment Approved (North Amethyst Hibernia Formation)
2013, Oct 4Statement to the Media
2013, Sep 17C-NLOPB Clarifies Roles and Responsibilities with Respect to Information Release in the July 2011 Cougar Helicopter Incident
2013, Aug 30C-NLOPB announces public consultation sessions for the Eastern Newfoundland Offshore Area Strategic Environmental Assessment
2013, Jul 12Deadline Extended for Public Review of Draft Western Newfoundland and Labrador Strategic Environmental Assessment (SEA) Update Report
2013, Jul 12Report de la date limite pour l’examen public de l’ébauche du rapport de mise à jour de l’évaluation environnementale stratégique (EES) de l’Ouest de Terre Neuve et du Labrador
2013, Jun 21C-NLOPB Invites Comments on Western Newfoundland and Labrador Offshore Area Strategic Environmental Assessment Update Report
2013, Jun 21Invitation de l’OCTNLHE à commenter le rapport de mise à jour de l’évaluation environnementale stratégique du secteur extracôtier de l’Ouest de Terre-Neuve et Labrador.
2013, Jun 5White Rose Development Plan Amendment Approved (South White Rose Extension)
2013, Jun 3Request for Proposals for the Eastern Newfoundland and Labrador Offshore Area Strategic Environmental Assessment
2013, May 16C-NLOPB Announces 2013 Calls for Bids
2013, Apr 2C-NLOPB Updates Terra Nova Reserve & Resources Estimates
2013, Feb 28Environmental assessment underway for offshore oil and gas activity in the Gulf of St. Lawrence
2013, Feb 28évaluation environnementale en cours pour les activités d’exploration pétrolière et gazière dans le golfe du Saint Laurent
2013, Feb 5Opportunity for Public Comment White Rose Development Plan Amendment Application (South White Rose Extension Tie-Back Project)
2013, Feb 5C-NLOPB says more will be done to prepare for major oil spills, but spill prevention must remain the priority
2013, Jan 31Return to Night Passenger Transport Operations – Operator Response Update