Common use of Subsurface Resources Clause in Contracts

Subsurface Resources. General 1. Kitselas will own Subsurface Resources on or under Kitselas Lands where, before the Effective Date, Canada or British Columbia owns the Subsurface Resources. 2. Kitselas ownership of Subsurface Resources is subject to the Subsurface Tenures listed in Appendix C-3. 3. Subject to paragraph 12, Kitselas, as owner of Subsurface Resources, has authority to set fees, rents, royalties and other charges, except taxes, for exploration, development, extraction and production of Subsurface Resources owned by Kitselas. 4. Nothing in the Final Agreement confers authority on Kitselas to make laws in relation to the exploration for, development, production, use and application of nuclear energy and atomic energy and the production, possession and use, for any purpose, of nuclear substances, prescribed substances, prescribed equipment and prescribed information. 5. Nothing in the Final Agreement confers authority on Kitselas to make laws in respect of: a) spacing and target areas related to Petroleum and Natural Gas and Geothermal Resources, and conservation and allocation of Petroleum and Natural Gas and Geothermal Resources among parties having interests in the same reservoir; and b) Subsurface Tenures listed in Appendix C-3 and related Tenured Subsurface Resources. 6. Before the Final Agreement, British Columbia and Kitselas will address the relationship between Provincial Law with respect to Subsurface Resources and Kitselas Law with respect to land use. 7. Subject to paragraph 11, the Subsurface Tenures: a) continue in accordance with Provincial Law and the Final Agreement; and b) will be administered by British Columbia in accordance with Provincial Law and the Final Agreement. 8. Provincial Law applies to any exploration, development, extraction and production of Tenured Subsurface Resources as if the Tenured Subsurface Resources were owned by British Columbia. 9. In administering the Subsurface Tenures and Tenured Subsurface Resources, British Columbia may grant, as necessary, any related extensions, renewals, continuations, replacements or issue any further rights as the Tenured Subsurface Resources are developed. 10. In administering the Subsurface Tenures and Tenured Subsurface Resources, British Columbia will notify the Kitselas Government before changing or eliminating any rents or royalties applicable to the Tenured Subsurface Resources. 11. British Columbia will: a) ensure that any rents and royalties applicable to Tenured Subsurface Resources that British Columbia would be entitled to receive after the Effective Date if those Tenured Subsurface Resources were owned by British Columbia, and any interest earned on those rents and royalties, are paid to Kitselas; and b) retain for administrative purposes any fees, charges or other payments applicable to Subsurface Tenures and Tenured Subsurface Resources under Provincial Law. 12. Kitselas does not have the authority to establish fees, rents, royalties or other charges in relation to Subsurface Tenures, or the exploration, development, extraction or production of Tenured Subsurface Resources. 13. Kitselas Lands will be treated as private lands under Provincial Law relating to Subsurface Resources for the purposes of resolving any access issues and compensation rights associated with any proposed entrance, occupation or use of Kitselas Lands by holders of Subsurface Tenures. For greater certainty, a holder of a Subsurface Tenure must obtain the agreement of the owner of Kitselas Lands before entering, occupying or using an area of Kitselas Lands, and any disagreements may be resolved under Provincial Law relating to access and compensation disputes involving Subsurface Resources. 14. If a Subsurface Tenure forfeits, or is abandoned or surrendered, to British Columbia under Provincial Law, the Tenured Subsurface Resources and Kitselas Lands will no longer be subject to that Subsurface Tenure.