CHAPTER 4 – SUBSURFACE RESOURCES

4.1.0  GENERAL
4.2.0  TENURED SUBSURFACE RESOURCES

4.1.0  GENERAL

4.1.1  On the Effective Date, each Maa‑nulth First Nation owns Subsurface Resources on or under its Maa‑nulth First Nation Lands, except for the Subsurface Resources identified for illustrative purposes as "Subject Lands" and legally described in Appendix G relating to the Maa‑nulth First Nation Lands of Uchucklesaht Tribe.

4.1.2  Subject to 4.2.7, each Maa‑nulth First Nation, as owner of Subsurface Resources, has the authority to set fees, rents, royalties and other charges, except taxes, for exploration, development, extraction and production of Subsurface Resources owned by that Maa‑nulth First Nation.

4.1.3  For greater certainty, nothing in this Agreement confers authority on a Maa‑nulth First Nation Government to make laws in respect of the exploration for, development, production, use or application of, nuclear energy and atomic energy or the production, possession or use, for any purpose, of nuclear substances, prescribed substances, prescribed equipment and prescribed information.

4.1.4  Nothing in this Agreement confers authority on a Maa‑nulth First Nation Government to make laws in respect of:

a. spacing and target areas related to Petroleum and Natural Gas, or conservation or allocation of Petroleum and Natural Gas among parties having interests in the same reservoir; or

b. Subsurface Tenures or Tenured Subsurface Resources.

4.1.5  Notwithstanding 13.14.2, Federal Law or Provincial Law prevails to the extent of a Conflict with a Maa‑nulth First Nation Law relating to Subsurface Resources.

4.2.0  TENURED SUBSURFACE RESOURCES

4.2.1  For greater certainty, each Maa‑nulth First Nation's ownership of Subsurface Resources described in 4.1.1 is subject to the applicable Subsurface Tenures listed in Appendices E-12, E-13 and E-15.

4.2.2  The Subsurface Tenures:

a. continue, as contemplated in 2.7.1.c., in accordance with Provincial Law and this Agreement; and

b. are administered by British Columbia in accordance with Provincial Law and this Agreement.

4.2.3  Provincial Law applies to the exploration, development, extraction and production of Tenured Subsurface Resources as if the Tenured Subsurface Resources were owned by British Columbia.

4.2.4  In administering the Subsurface Tenures and Tenured Subsurface Resources, British Columbia may grant, as necessary, any related extensions, renewals, continuations or replacements and issue any further rights as the Tenured Subsurface Resources are developed.

4.2.5  British Columbia will:

a. ensure that any rents or royalties applicable to Tenured Subsurface Resources that British Columbia would have been 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, will be paid to the applicable Maa‑nulth First Nation; and

b. retain any fees, charges or other payments for administrative purposes applicable to Subsurface Tenures and Tenured Subsurface Resources under Provincial Law.

4.2.6  In administering the Subsurface Tenures and Tenured Subsurface Resources, British Columbia will notify the applicable Maa‑nulth First Nation before changing or eliminating any rents or royalties applicable to the Tenured Subsurface Resources.

4.2.7  A Maa‑nulth First Nation 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.

4.2.8  Maa‑nulth First Nation Lands are treated as private lands under Provincial Law respecting Subsurface Resources for the purposes of determining access rights and compensation rights associated with any proposed entrance, occupation or use of the surface by holders of Subsurface Tenures. For greater certainty, any disagreements between holders of Subsurface Tenures and owners of Maa‑nulth First Nation Lands respecting entrance, occupation or use of an area of Maa‑nulth First Nation Lands may be resolved under Provincial Law relating to entrance and compensation disputes involving Subsurface Resources.

4.2.9  If a Subsurface Tenure forfeits, is abandoned or surrendered to British Columbia under Provincial Law, the Tenured Subsurface Resources and the Maa‑nulth First Nation Lands are no longer subject to that Subsurface Tenure.

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