Tenure

Posting/Land Sale Schedule

Interested parties have an opportunity to post lands for sale of licence to search for bituminous shale.

Application/Nominations

Posting lands for an area designated in the application occurs when the Minister of Natural Resources receives and endorses an application/nomination, triggering a call for tender, for the exclusive right to the bituminous shale resource for the described area.

Call for Tenders Notice

The call for tender notice, listing the area(s) posted and conditions of sale, is published in the Royal Gazette and other publications deemed appropriate as well as on this website 30 days prior to the closing/sale dates.

An “Information to Tenderers” package, advising prospective bidders of requirements for submission will be available from the date the sale notice is published free of charge from the Manager of Petroleum Tenure.

Any company that intends to purchase an agreement must be registered to do business in New Brunswick. Registration may be made by application to: Corporate Affairs, Department of Justice, P.O.Box 6000, Fredericton, New Brunswick, Canada E3B 5H1.

Submission of Tender Offerings

All bids are submitted under sealed tenders as directed in the Information to Tenderer  package. Click here to view the list of successful bids recorded to 2001.

Publication of Sale Results

The Sale Results of a "Call for Tenders" for a bituminous shale licence to search is published the next day following the date of the sale on this website, and are also distributed to all bidders and interested parties on the Client Mailing List.

Granting of Rights

Licence to Search

A licence to search  entitles the holder to explore for bituminous shale in the area granted under the licence. The licensee must pay an annual rent of $0.25/ha/yr and undertake exploratory work equal to the tendered value of the work.

A licence to search is issued for an initial term of three years and may be renewed for a maximum of two consecutive annual periods. During the term of the licence, a licensee wishing to conduct bituminous shale development work, up to and including pilot plant tests or schemes within the licence area, may select to be included in his development permit, all or a portion of his licence area which shall consist of a single block.

Development Permit

A development permit provides the holder with the exclusive right to produce or cause to be produced bituminous shale, bituminous shale products and bituminous shale by-products on the selected portion of the licence area. The permittee must pay an annual rent of $1.25/ha/yr and undertake development work equal to the amount prescribed by regulation.

A development permit is valid for an initial term of one year and may be renewed for a maximum of four consecutive annual periods.

Lease

A permittee may apply for a lease after taking into consideration the extent and nature of the bituminous shale proven, the proposed capacity of the plant or other works to be constructed and the requirements for operation of the plant for a period of at least thirty years. The lessee must pay an annual rental fee of $2.50/ha.

A lease is granted for an initial term of ten years with the right of renewal for consecutive ten year periods.

The following table provides highlights on the types of rights granted, fees and terms.

Reporting Requirements

The holder of a licence to search or a development permit shall submit, within the time frame established by regulations, a report containing a statement with respect to the total expenditures made by the licensee or development permittee and other information obtained during the term of their agreements.

Transfer

An agreement holder may transfer all or a portion of his/her agreement by submitting a completed application to transfer as provided for in the regulation.

For additional information, please contact the Petroleum Tenure Manager.