Canada Petroleum Resources Act (R.S.C., 1985, c. 36 (2nd Supp.))

Marginal note:Remedies for unpaid royalties

71. Notwithstanding any other provision of this Act or the Canada Oil and Gas Operations Act, where a person is in default in accordance with the regulations in the payment of any amount payable under this Part in respect of any interest issued in relation to any frontier lands, the Minister may, for so long as the amount remains unpaid, refuse

• (a) to issue to that person any interest in relation to any frontier lands; and

• (b) to authorize, pursuant to the Canada Oil and Gas Operations Act, that person to carry on any work or activity related to the exploration for or the production of petroleum on any frontier lands and may suspend any such authorization already given.

Marginal note:Application of provisions of Income Tax Act

72. Sections 231 to 231.5 of the Income Tax Act apply, with such modifications as the circumstances require, in respect of the administration and enforcement of this Part and, without restricting the generality of the foregoing, as if

• (a) the references therein to “tax” were read as a reference to “royalty”;

• (b) the references therein to “Minister” were read as a reference to “Minister” as defined in section 2 of this Act;

• (c) the references therein to the “Canada Revenue Agency” were read as a reference to the “Department of Natural Resources” or the “Department of Indian Affairs and Northern Development”, whichever is applicable in the circumstances;

• (d) the references therein to the “Tax Court of Canada” were read as a reference to the “Federal Court”; and

• (e) the references therein to a “return of income or a supplementary return” were read as a reference to “a report or return” filed pursuant to this Part.

Marginal note:Remedies not exhaustive

73. The existence or exercise of any remedy that Her Majesty in right of Canada has under this Part does not affect any other remedy that Her Majesty has at law, including any remedy that the Minister may exercise under section 105.

Marginal note:Regulations

• 74. (1) The Governor in Council may make regulations for carrying out the purposes and provisions of this Part and, without restricting the generality of the foregoing, may make regulations

  • (a) prescribing royalties payable under this Part and the rates at which such royalties are payable;

  • (b) prescribing the manner of calculating or determining any royalty prescribed under paragraph (a) and any component thereof or value in relation thereto, including the valuation of petroleum produced and any costs, expenses, allowances, credits and other amounts that may be deducted in calculating or determining the amount of royalty payable and generally providing for any other matter or thing necessary for or incidental to such calculation or determination;

  • (c) exempting, conditionally or unconditionally, any person or persons of any class from the payment of, in whole or in part, any royalty under this Part or exempting any petroleum produced from frontier lands from the application of this Part;

  • (d) prescribing the circumstances in which and the terms and conditions subject to which the Minister may require all or part of any royalty payable under this Part to be paid in money or in kind and prescribing the manner of calculating or determining the payment in kind;

  • (e) prescribing or prescribing the manner of calculating or determining penalties for failure to comply with section 57 or 58;

  • (f) prescribing the rate at which interest on arrears of royalties, interest and penalties owing to Her Majesty in right of Canada under this Part or on amounts of refunds payable by the Minister under this Part is payable and the manner of determining or calculating the interest payable; and

  • (g) prescribing anything that, by this Part, is to be prescribed.

• Marginal note:Regulations relating to class of petroleum

  (2) Regulations under subsection (1) may be made in respect of all petroleum produced from frontier lands or any class thereof.

• Marginal note:Application of regulations

  (3) Regulations made under subsection (1) may apply generally to all frontier lands or any portion thereof.