2020 Oil Sands Tenure Regulation: A Summary Of Changes

Alberta's Oil Sands Tenure Regulation (OSTR), enacted under the Mines and Minerals Act (Alberta), provides for the issuance and continuation of primary oil sands leases, as well as the payment of escalating rentals when a continued lease does not meet a minimum level of production. The OSTR currently in force was introduced in 2010 (the 2010 OSTR). Typically, Alberta Energy releases a new version of the regulation every ten years. As a part of this periodic update, a new OSTR will come into force on December 1, 2020 (the 2020 OSTR).

The 2020 OSTR introduces three major changes:

1. The removal of MLE (defined below) as a requirement to convert a permit to a primary lease, or to continue a primary lease;