Saskatchewan Modernizes Its Oil And Gas Conservation Act

On May 10, 2011, Saskatchewan passed changes to its Oil and Gas Conservation Act (OGCA), the act governing the regulation of resource development operations in the province. The aim of the amendments is to provide resource companies investing in Saskatchewan's energy and resource industries with the best support services and business and regulatory systems available.¹ The amended legislation also introduces vicarious liability and liability for directors, officers and agents of a corporation in certain circumstances. The amendments additionally require, on a retroactive basis, that all vendors of a well or facility apply for a transfer of a licence within 14 days after the signing of a purchase and sale agreement, or within 14 days of the relevant section coming into force if an agreement has already been signed. Companies that fail to do so face the potential for Saskatchewan's Minister of Energy and Resources to shut down a well or facility. Resource companies need to