New Alberta Petroleum Land Regulations are expected to be tabled in the House by next week. It is believed that two major, adjustments to the regulations will involve a five year lease term, and horizontal separation of rights. Both would be very significant changes, as the standard lease term is presently ten years, and existing lease cover all subsurface rights, When horizontal separation comes into force, the leases will earn only rights to formation tested. The government, as noted previously, is planning to implement the new regulations by July 1 of this year.
Changes have been under discussion with industry for the past couple of years. Major adjustments are expected to add impetus, to an already active exploration and development program within the province.
Apparently the Department of Energy and Natural Resources is also presently reviewing its existing program of drilling incentives. The evaluations underway are considered of a regular nature and are not likely to result. in any major adjustments the ALPEP program (Alberta Petroleum Exploration Program) initiated in early 1975.
It is also understood that the Energy and Natural Resources Department is continuing its review of work requirements related to Bituminous Sands Leases and in view of this study and contemplated discussions with interested industry parties, no firm deadline on tar sands work program have been established.