I emailed CIC today to see if you needed to apply for both extension and OWP or just OWP to keep status, Here is the reply
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Thank you for contacting Citizenship and Immigration Canada. I am pleased to follow up on your request:
Maintaining a Legal Status During the Process of the Permanent Residence Application
When you are in Canada, you must always keep a legal status until you become a permanent resident. If you do not, you could be removed from Canada. If an immigration document was issued by Citizenship and Immigration Canada (Work
Permit, Study Permit or a stamp in your passport), this document states for how long you can stay in Canada. Having a legal status means that your document or authorization to stay in Canada is still valid.
You have two options available in order to maintain a legal status in Canada until you become a permanent resident:
1. Depending under which immigration program you apply, you could apply for an extension of your status as a visitor, student or worker, while applying for your permanent resident status. If you choose this option, complete both an application to extend your status and an application for permanent residence and mail them before your current status expires. Be sure to include both applications and all the necessary supporting documents and payment for each application in the same envelope.
If you stay in Canada during the processing of your application, you will only have to extend your status once because this option will allow you to keep a legal status in Canada up until the time your application for permanent residence is *approved in principle. If your status expires before your application for permanent residence is approved in principle, you will still have a legal status in Canada. This is known as implied status.
2. You can apply to extend your status as a visitor, student or worker separately from the application for permanent residence; you must do it before the expiry date of your current status. You may have to extend your status more than once.
The application is available on our Web site. You can fill out the application on-line and print it or fill it out by hand.
*Approved in principle means that you received a letter from the Case Processing Centre or the local office stating that you are eligible to apply for permanent resident status but that a final decision will not be made until all requirements for becoming a permanent resident have been met. These requirements include medical, security and background verifications for you and, if applicable, your family members. "
I am panicking right now as my hubby went for his medical on Fri, shwed the Dr. his passport, gave the forms and pics had the medical and left. Sat he realized he did not have his passport. The Dr. can't seem to find it. Fortunately I have a photocopy in order to send with PR application. However, getting a new one is going to be a hassle from here.