Regulating onshore petroleum activities

There are no freehold petroleum rights in Nova Scotia. All petroleum in or under Nova Scotia lands belongs to the Crown.

The Nova Scotia Department of Energy administers onshore petroleum rights as set out in the Petroleum Resources Act and regulations.

Rights are issued either as exploration or production agreements, each with different periods of tenure. Coal bed methane is currently issued as a separate right with a different tenure period and applicable royalty.

The documents and forms offered here help industry understand the regulatory requirements of working in Nova Scotia. Guidance notes and codes of practice allow more flexibility for industry and identify the outcomes the regulations require.

In February 2026, the government introduced new legislation, the Subsurface Energy Resource Extraction Act, which will replace the existing Petroleum Resources Act once it comes into force. The new act modernizes the Province's regulatory framework for oil and gas activities and expands it to include other developing subsurface energy resources like natural hydrogen, deep geothermal energy and carbon sequestration.

Call for Bids

Lands may be nominated by industry at any time. Usually, this results in a competitive Call for Exploration Proposals.

The Department of Energy reviews the requested parcel(s) and may modify the original parcel size and configuration in consultation with the company that has made the nomination.

Public notice is given for a Call for Exploration Proposals in the Royal Gazette, posted in industry media and through direct mailings.

The call remains open for a minimum period of 60 days. Applicants submit a bid based on work commitment, information sufficient to judge their technical and financial capability, evidence of past experience in exploration, and a commitment to meet or exceed minimum work expenditures. They must also indicate their ability to post a bond to guarantee the performance of all work obligations.

Applications for the Onshore Call for Exploration Proposals are evaluated by the Department of Energy based on criteria established in the call document.

A selection committee is established to review the applications, and an evaluation sheet issued to help determine the successful proponent.

Documents and Forms

Tenure

Seismic

Drilling