GNWT Introduces Rental Fees to Onshore Significant Discovery Licences

Press Release

June 12, 2025

Effective immediately, the Government of the Northwest Territories (GNWT) is implementing rental fees on lands held under onshore Significant Discovery Licences (SDLs).

SDLs are issued under the Petroleum Resources Act (PRA) to companies that have successfully bid for the exclusive right to develop oil and gas resources on specific lands. Unlike other Canadian jurisdictions, the NWT has, until now, not required rental fees for SDLs, nor have companies been obligated to advance resource development to retain their licences.

This change brings the NWT in line with other jurisdictions and encourages companies to actively invest in their SDL interests. Fees will be refundable on a 1:1 basis for approved work expenditures undertaken on the licensed lands.

SDLs issued after July 2020 are valid for a fixed 15-year term. SDLs issued prior to this date remain valid indefinitely.

Rental Fee Schedule:

• $8.00 per hectare, due March 31, 2026
• $10.50 per hectare, due March 31, 2027
• $13.00 per hectare, due March 31, 2028
• Thereafter, fees will increase by $2.50 per hectare annually for the remainder of the licence term

Quick Facts

• The new rental fees will be applied to all onshore SDLs issued from 2000 to present, all of those that signaled that rental fees may be payable, and any new SDLs issued going forward.
• The implementation of rentals will apply to 34 of 80 active SDLs – a total of 437,563 hectares (72% of the total land area under SDLs in the NWT).
• It is estimated that SDL rental revenue will be up to $3.5 million in year 1, up to $4.6 million in year 2, and up to $5.7 million per year for years 3-10.
• Rental fees will be refundable at a 1:1 ratio based on allowable work expenditures on each SDL to encourage SDL holders to conduct work on their SDLs.
• Any companies choosing to release their SDLs will result in a reduction in SDL rental revenue and make the associated land available for other companies who may be interested in developing them.
• Revenues from rentals will flow to the GNWT, the federal government, and Indigenous Governments and Organizations that are signatories to the Devolution Agreement, according to the resource revenue sharing formula of that agreement.
• Implementing SDL rental fees aligns with the 20th Assembly’s priority of building a strong economic foundation and its fiscal sustainability mandate by increasing revenues to reduce debt.

Related Links

• Petroleum Resources Act (PRA)
• 20th Assembly’s fiscal sustainability mandate
• Mandate of the Government of the Northwest Territories

For media requests, please contact:
Melvin Leonard
Assistant Director, Strategic Communication
Industry, Tourism and Investment
Government of the Northwest Territories
Phone: (867) 767-9202 ext. 63038
Email: ITIcommunications@gov.nt.ca

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