Why is compulsory unitization being proposed now?
A3. Today, increased interest in continental energy security as well as political development and the settlement of land claims in the North are generating new oil and gas exploration and production activity in Canada. This is particularly the case in the North where land claim agreements have created new land ownership models, including the creation of large tracts of private Aboriginal owned lands adjoining federal Crown lands. Compulsory unitization would establish and support an environment for a competitive production process, avoiding waste and improving economic outcomes.
