Oil and gas in the NWT
Overview
The Northwest Territories (NWT) has vast undeveloped oil and gas reserves. It is estimated that the NWT could hold as much as 37 percent of Canada’s marketable light crude oil resources and 35 percent of its marketable natural gas resources.
The Department of Industry, Tourism and Investment (ITI) is responsible for the administration of onshore oil and gas interests in the petroleum lands of the NWT, including the Inuvialuit Settlement Region. Petroleum lands mean lands that are under the administration and control of the Commissioner, or in respect of which the Commissioner has the right to dispose of or exploit the natural resources. Interests issued in the offshore and the Norman Wells Proven Area are the responsibility of Crown-Indigenous Relations and Northern Affairs Canada.
ITI promotes economic self-sufficiency through the responsible management and development of NWT petroleum resources to create a prosperous, diverse and sustainable economy for the benefit of all NWT residents. ITI supports the use of recognized best practices and scientific evidence to protect the environment while responsibly developing natural resources to benefit NWT residents.
ITI’s Mineral and Petroleum Resources Division develops and delivers petroleum resources policy, programs and services related to petroleum resources exploration and development, manages tenure associated with petroleum development and is responsible for benefit plans.
Download a map that depicts the line of delimitation between onshore and offshore.
PDF • 1.4MB • Dec 17, 2015
Laws and regulations
In the Northwest Territories (NWT), onshore oil and gas management and regulation is managed by the Department of Industry, Tourism and Investment (ITI).
The Petroleum Resources Act (PRA) governs how the GNWT acts as owner of petroleum resources in NWT lands within the administration and control of the Commissioner, or in respect of which the Commissioner has the right to dispose of or exploit the natural resources. The Oil and Gas Operations Act (OGOA) sets the rules for exploration and development activities.
The Office of the Regulator of Oil and Gas Operations (OROGO), an arms-length public regulatory agency, is responsible for ensuring regulatory compliance in oil and gas operations from exploration to closure.
The Canadian Energy Regulator is the Regulator in the offshore, under federal legislation, and in the Inuvialuit Settlement Region under territorial legislation.
Email us with any further questions you may have about laws and regulations surrounding oil and gas.
Land Claims
In general, there are two types of land claims that may direct oil and gas development in Canada: comprehensive claims and specific claims.
Comprehensive claims always involve land, but specific claims are not necessarily land-related. These claims arise in areas of Canada where Aboriginal land rights have not been dealt with by past treaties or through other legal means.
Land and self-government negotiations in the NWT usually involve three groups: the Government of Canada, the Government of the Northwest Territories, and one or more Indigenous government organization. Each negotiation is unique and reflects the needs and processes of the parties at the negotiation table.
Land Claims
Current Negotiations
Aboriginal rights negotiations are underway in all regions of the NWT as Aboriginal governments seek to confirm their Aboriginal and treaty rights in the NWT. The GNWT, as a full partner to these negotiations, continues to promote workable and affordable agreements that respect Aboriginal rights.
Concluding and Implementing Land Claim and Self-Government Agreements
Frequently asked questions
How are oil and gas rights administered in the Northwest Territories (NWT)?
The Department of Industry, Tourism and Investment (ITI) is responsible for the administration of oil and gas interests in the onshore NWT. Interests issued in the offshore are the responsibility of Aboriginal Affairs and Northern Development Canada (AANDC).
ITI's Petroleum Resources Division has an Oil and Gas Rights unit staffed with a Manager, a Registrar, and a Rights Administration Advisor.
Did existing Exploration Licences (EL), Significant Discovery Licences (SDL), Production Licences (PL) and Oil and Gas Leases change as a result of devolution?
Existing licences and leases continued under the same terms and conditions that were in effect as of March 31, 2014. Active licences and leases on GNWT lands are administered by ITI.
Some licences and leases (e.g., Norman Wells Proven Area Agreement) and certain waste sites were not transferred to the GNWT. All interest holders were notified by AANDC whether their licence or lease was to be transferring.
SDLs that straddle the line of delimitation between onshore and offshore have been divided. ITI now administers the portion of the SDL that is onshore and AANDC administers the portion of the SDL that is offshore under separate licences. Straddling interest holders were sent notifications by AANDC outlining how their interests would be divided.
How are oil and gas interests in the ISR administered?
The ISR is the only region in the NWT that has oil and gas interests in both the onshore and offshore, which straddle two jurisdictions. ITI has the administrative responsibility for the onshore and AANDC retained administrative responsibility for the offshore.
The GNWT, AANDC and the Inuvialuit Regional Corporation have agreed to coordinate and cooperate on their post-devolution jurisdictions in respect of oil and gas resource management in the ISR, particularly where they straddle the onshore and offshore. A Memorandum of Agreement is in place for an initial 20-year term, creating an ISR Oil and Gas Coordination Committee to facilitate information sharing and coordinate straddling resources.
Which GNWT department leads Calls for Nominations and Call for Bids?
ITI leads Calls for Bids in the onshore areas and AANDC continues to administer Calls in the offshore areas. ITI, AANDC and the IRC cooperate and coordinate on rights issuance in the Mackenzie Delta and offshore.
Which GNWT department issues Exploration Licences?
The Department of Industry, Tourism and Investment issues and manages licences in the onshore area. AANDC issues and manages licences for the offshore areas, including the Beaufort Sea.
What legislation governs oil and gas administration on territorial lands?
The Oil and Gas Operations Act (OGOA) and the Petroleum Resources Act (PRA) and their associated regulations.
Who do I talk to about administration of royalties?
ITI is responsible for the administration of the royalty regime established under the Petroleum Resources Act, through its Financial Analysis and Royalties Administration Division.
Who do I talk to about policy development?
ITI is responsible for developing programs, policies and strategies to support the development of the NWT’s petroleum resources, through the Petroleum Resources Division.