MNR's Role

Objectives of the Ministry’s oil, gas and salt resources program are to:

• Promote the safe, orderly and responsible exploration and development of Ontario’s oil, natural gas, salt-solution mining and underground storage resources;
• Ensure compliance with legislation, regulation and operating standards through licensing, monitoring, inspection and reporting of drilling and production operations for oil and gas, salt-solution mining, underground storage and oil-field fluid disposal wells and works;
• Ensure public and environmental health and safety through compliance assurance, emergency management technical support, public education and information, and responding to public complaints or inquiries;
• Provide resource assessment and information management for both the Crown and the public; and
• Ensure fair market return is received for Crown resources.

Pump Jack on Oil Well

The Integration Branch, Regional Operations Division, is responsible for delivering MNR’s Petroleum Resources Program, including implementation of new or changed policies and legislation. The Petroleum Operations Section of the Branch is located in London, Ontario and houses geological, engineering, inspection and support staff. The Petroleum Operations Section is responsible for delivering the following activities, consistent with policy direction.

1. Oil and gas reservoir assessment to ensure equitable division and optimal utilization of the resource, to protect correlative rights and prevent waste.
2. Licence and permits for wells and operations for the purposes described below. Approved licence and permit applications are subject to terms and conditions as defined by the Section, and include financial security (as required by regulation)
   
   1. Exploration and development/production for oil and gas wells: this regulatory responsibility relates to the activities associated with drilling the wells and once constructed, the surface well head and all aspects of the well below ground level and any related surface works including gathering pipelines and any field treatment and storage facilities but does not include the transmission or distribution of oil or gas produced from a well;
   2. Salt-solution mining, underground storage and oil-field fluid disposal wells for oilfield fluid (drilling fluids and formation water).
   3. Underground geologic storage of oil and gas including salt cavern and depleted oil or gas reservoir storage; and
   4. Other drilling associated with geological evaluation or testing rocks of Cambrian or more recent age.
3. Monitor and inspect wells and works associated with oil and gas, salt-solution mining, underground storage and oil-field fluid disposal, and other drilling activities associated with geological evaluations.  Records are filed and maintained for all inspections, orders and required follow-on actions.
4. Ensure proper decommissioning of wells that are not developed and wells no longer in production, including inspection and filing of required reports.
5. Administer the Abandoned Works Program, targeting wells that pose greatest risk to public safety and potential for environmental damage and provide oversight of contracts awarded to decommission selected wells;
6. Record management of all production and exploration records (e.g. preparation of periodic/annual summary reports).  Records are maintained and accessible to the public via the Ontario Oil, Gas & Salt Resources Library.
7. Geological and technical (engineering) assessment and related expert advice to the Ministry of Northern Development, Mines and Forestry and other internal/external clients and government agencies. This would include input and support related to policy development for program delivery.
8. Technical standards are developed and maintained for the safe design, construction, operation, maintenance and decommissioning of wells and works.
9. Technical support for emergency management, participation in activities associated with public awareness and education, and provision of advice to numerous agencies in regard to oil and gas management in Ontario, including related technical support provided to the Ontario Energy Board.
10. Disposition and administration of resource rights including the tenure for Crown resources; collection of royalties and fees; tendering of Crown oil, natural gas and storage rights; and other activities related to the general administration of the OGSRA and Part IV of the Mining Act.  As an example, wells located on beds of lakes which are Crown lands (e.g. the Great Lakes) require land tenure (i.e. lease) in addition to a licence to drill.