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Convert a Net Royalty Oil and Gas Lease Application

Apply to the Ministry of Energy and Resources to convert a net royalty lease to a standard petroleum and natural gas lease to reduce administration.


1. Guidance

Section 39 of The Petroleum and Natural Gas Regulations, 1969, provides authority to the Minister to convert, on a case-by-case basis, an entire net royalty lease to a standard petroleum and natural gas lease in return for an appropriate cash bonus amount to the Crown.

Approval depends on the Minister being satisfied the conversion will not result in a net revenue loss to the province. The cash bonus amount must reflect the estimated present value of future payments to the Crown which would otherwise accumulate if the net royalty lease continued.


2. Eligibility

All current net royalty lease holders are eligible as long as consent to convert the lease is provided by all lessees.

The applicant must have an Integrated Resource Information System (IRIS) account and the appropriate permissions assigned by their IRIS Security Administrator.


3. How to Apply

Log into IRIS and submit a written offer along with all pertinent production, cost, and price assumptions through the net royalty lease conversion application.


4. Apply


5. Further Information

Contact Petroleum and Natural Gas Services at or 1-855-219-9373 for more information or assistance.

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