License vs Lease

Our government downplays citizen concerns, saying not to worry about seismic testing, because it is only exploration.

thumpertrucksAre exploration licenses and production leases of shale gas really separate things?

NB’s Oil and Gas Act – 26(3), explains how to change from exploration to production.

“A license to search may be converted to a lease in its entirety at the end of the license term, if in the opinion of the Minister, all exploration commitments under the license have been met.”  

So, as long as a company simply spends a required amount during exploration, it is guaranteed a production lease – there is no process in between.