Marginal note:Short title

1 This Act may be cited as the Canada–Newfoundland and Labrador Atlantic Accord Implementation and Offshore Renewable Energy Management Act.

Marginal note:Offshore renewable energy project

2.1 Subject to section 7, the Governor in Council may make regulations amending the definition offshore renewable energy project, as defined in section 2, to add or remove any work or activity related to renewable energy that is carried out in the offshore area.

Marginal note:Regulations

• 5 (1) Subject to section 7, the Governor in Council may make regulations

  • (a) prescribing lines enclosing areas adjacent to the Province for the purpose of subparagraph (a)(i) of the definition offshore area in section 2; and

  • (b) amending paragraph (b) of that definition.

agreement

agreement means an agreement between the Government of Canada and the government of a province respecting resource management and revenue sharing in relation to activities respecting the exploration for or the production of petroleum, or respecting offshore renewable energy projects, carried out on any frontier lands; (accord)

Marginal note:Provincial Minister’s approval

• 7 (1) Before a regulation is made under section 2.1, subsection 5(1), section 29.1, subsection 41(7), section 56.1 or section 64, subsection 67(2), section 96.1, subsection 96.2(2), section 118, subsection 122(1), 125(1), 149(1), 162(2.3), 163(1.02), 183.19(6) or 183.25(1), section 183.29, subsection 183.3(3) or 202.01(1) or section 203, the Federal Minister shall consult the Provincial Minister with respect to the proposed regulation and the regulation shall not be made without the Provincial Minister’s approval.

Non-Application of Atlantic Accord

Marginal note:Non-application of Atlantic Accord

7.1 For greater certainty, the Atlantic Accord does not apply to offshore renewable energy resources.

• Marginal note:Excluded legislation

  (2) Subject to section 101, the Canada Petroleum Resources Act and the Canada Oil and Gas Operations Act and Part 5 of the Canadian Energy Regulator Act and any regulations made under them do not apply within the offshore area.

Marginal note:Jointly established Regulator

• 9 (1) There is established by the joint operation of this Act and the Provincial Act a board to be known as the Canada–Newfoundland and Labrador Offshore Energy Regulator.

• Marginal note:References

  (1.2) A reference in any contract, document, instrument, proclamation, by-law or order in council to the Canada-Newfoundland Offshore Petroleum Board or the Canada–Newfoundland and Labrador Offshore Petroleum Board is, unless the context otherwise requires, to be read as a reference to the Canada–Newfoundland and Labrador Offshore Energy Regulator.

Marginal note:Terms of office

• 15 (3) The Chairperson and members of the Regulator shall be appointed for terms of six years.

Marginal note:Consultation with Indigenous peoples of Canada

17.1 His Majesty in right of Canada or in right of the Province may rely on the Regulator for the purposes of consulting with the Indigenous peoples of Canada respecting any potential adverse impact of a work or activity in the offshore area on existing Aboriginal and treaty rights recognized and affirmed by section 35 of the Constitution Act, 1982 and the Regulator may, on behalf of His Majesty, if appropriate, accommodate any adverse impacts on those rights.

Marginal note:Access to information

• 18 (1) The Federal Minister and the Provincial Minister are entitled to access to any information or documentation relating to petroleum resource and renewable energy activities in the offshore area that is provided for the purposes of this Act or any regulation made under it and such information or documentation shall, on the request of either Minister, be disclosed to that Minister without requiring the consent of the party who provided the information or documentation.

Marginal note:Storage of information

22 The Regulator shall establish, maintain and operate a facility in the Province for the storage and curatorship of

• (a) all petroleum-related geophysical records and geological and hydrocarbon samples relating to the offshore area; and

• (b) all geological, geophysical, geotechnical and environmental records and geological and geotechnical samples relating to offshore renewable energy.

• Marginal note:Mobility of staff

  (4) For the purpose of being eligible for appointment to a position in the public service by an appointment process under the Public Service Employment Act,

  • (a) any person who, immediately prior to being employed by the Regulator, was employed in the public service shall be deemed to be a person employed in the public service in the Department of Natural Resources in the location where that person is performing duties for the Regulator and in a position of an occupational nature and at a level equivalent to the position in which that person is employed by the Regulator; and

  • (b) any person who, immediately prior to being employed by the Regulator, was not employed in the public service shall, two years after being employed by the Regulator, be deemed to be a person employed in the public service in the Department of Natural Resources in the location where that person is performing duties for the Regulator and in a position of an occupational nature and at a level equivalent to the position in which that person is employed by the Regulator.

• Marginal note:Payment of operating costs

  (4) Subject to subsection (4.1), the Government of Canada shall pay one-half of the aggregate of the expenditures set out in the budget or revised budget in respect of each fiscal year.

• Marginal note:Payment of specific activities

  (4.1) The Chief Executive Officer may include in the budget or revised budget expenditures associated with specific requirements of one government that are to be paid entirely by that government.

Petroleum-related Decisions

Decisions Related to Offshore Renewable Energy

Marginal note:Regulator’s recommendation

• 40.1 (1) The Regulator shall notify the Federal Minister and the Provincial Minister in writing of its offshore renewable energy recommendation as soon as practicable after deciding to make the recommendation.

• Marginal note:Ministers’ decisions

  (2) The Federal Minister and the Provincial Minister shall, within 60 days after receiving the recommendation, notify the Regulator in writing of their respective decision to approve the recommendation, with or without variations, or to reject it.

• Marginal note:Additional 30 days

  (3) Despite subsection (2), on written notice by either Minister to the Regulator and the other Minister, both Ministers shall have an additional 30 days to notify the Regulator of their respective decision under that subsection.

• Marginal note:No time limit

  (4) Despite subsection (2), the Federal Minister or the Provincial Minister may notify the Regulator of their respective decision with respect to an offshore renewable energy recommendation to make a call for bids beyond the period of 60 days referred to in that subsection.

Marginal note:Publication

40.2 The Regulator shall publish in the Canada Gazette any notice of decision referred to in subsection 40.1(2), unless the decision is to reject an offshore renewable energy recommendation to make a call for bids.

Marginal note:Implementation of Ministers’ approval

40.3 The Regulator shall only exercise a power or perform a duty subject to this section and sections 40.1 and 40.2 if it has been the subject of an offshore renewable energy recommendation that was approved by both Ministers and with the same variations, if any. In that case, the Regulator shall exercise the power or perform the duty as soon as practicable after it receives the notices referred to in subsection 40.1(2).

Marginal note:Public hearings

44.1 The Regulator may conduct a public hearing in relation to the exercise of any of its powers or the performance of any of its duties and functions under this Act.

• (a) there is a real and substantial risk that disclosure of the information will impair the security of pipelines, as defined in section 135, installations, facilities, vessels, aircraft or systems, including computer or communication systems, or methods employed to protect them; and

• Marginal note:Transboundary pool

  (7) The definitions in section 166 also apply in subsections (8) and (9).

• Marginal note:Approval subject to agreement

  (8) A Canada-Newfoundland and Labrador benefits plan submitted for approval in respect of a work or activity to be carried out in a transboundary pool that is the subject of a joint exploitation agreement is not to be approved under this section unless the Regulator and the appropriate authority have agreed on its content.

• Marginal note:Disagreement

  (9) The Regulator or the appropriate authority — or in respect of any transboundary pool extending into the jurisdiction of a foreign government, the Federal Minister, after having consulted the Minister of Foreign Affairs and the Provincial Minister — may, if they disagree about the content of the plan submitted for approval, refer the matter to an expert in accordance with section 183.16. The expert’s decision is deemed to be approval of the plan by the Regulator.

Petroleum and Offshore Renewable Energy Resources

call for bids

call for bids means a call for bids made in accordance with

• (a) in the case of petroleum, section 58, and

• (b) in the case of offshore renewable energy, section 93; (appel d’offres)

Crown reserve area

Crown reserve area means

• (a) in relation to petroleum, portions of the offshore area in respect of which no petroleum-related interest is in force, and

• (b) in relation to offshore renewable energy, portions of the offshore area in respect of which no submerged land licence is in force respecting a particular renewable energy resource; (réserves de l’État)

interest

interest means

• (a) in relation to petroleum, any former exploration agreement, former lease, former permit, former special renewal permit, exploration licence, production licence or significant discovery licence, and

• (b) in relation to offshore renewable energy, any submerged land licence; (titre)

significant discovery

significant discovery means a discovery indicated by a well on a geological feature that

• (a) demonstrates, through any formation flow test approved by the Regulator, the existence of hydrocarbons in that feature, and

• (b) having regard to geological and engineering factors, suggests the existence of an accumulation of hydrocarbons that has potential for sustained production; (découverte importante)

Marginal note:Prohibitions — regulations

56.1 Subject to section 7, the Governor in Council may, for the purpose of the protection of the environment, make regulations prohibiting, in respect of any portion of the offshore area that is specified in those regulations and that is located in an area that is or, in the opinion of the Governor in Council, may be identified under an Act of Parliament or of the Legislature of the Province as an area for environmental or wildlife conservation or protection,

• (a) the commencement or continuation of

  • (i) any work or activity relating to the exploration or drilling for or the production, conservation, processing or transportation of petroleum, or

  • (ii) an offshore renewable energy project; or

• (b) the issuance of interests.

Marginal note:Negotiations for compensation

• 56.2 (1) The Federal Minister may enter into negotiations with an interest owner for a determination of any compensation that may be granted to the interest owner for the surrender of the interest in respect of all or any portion of the offshore area subject to the interest, if all or any portion of the offshore area in respect of which the surrender is negotiated is

  • (a) located in an area that is identified under an Act of Parliament as an area for environmental or wildlife conservation or protection; or

  • (b) subject to regulations made under section 56.1.

• Marginal note:Notice to Provincial Minister

  (2) The Federal Minister shall, not later than 60 days before entering into the negotiations, give written notice to the Provincial Minister of the Federal Minister’s intention to enter into negotiations with the interest owner within the period specified in the notice referred to in subsection (3).

• Marginal note:Notice to interest owner

  (3) The Federal Minister shall, not later than 30 days before entering into the negotiations, give written notice to the interest owner, and forward a copy of the notice to the Regulator, indicating the Federal Minister’s intention to enter into negotiations with the interest owner within the period specified in the notice.

• Marginal note:Power to cancel

  (4) The Federal Minister and the Provincial Minister may, by order, jointly cancel the interest in respect of all or any portion of the offshore area that is subject to the interest and that is located in an area that is or, in the opinion of the Governor in Council, may be identified under an Act of Parliament as an area for environmental or wildlife conservation or protection, if

  • (a) the interest owner did not enter into negotiations with the Federal Minister within the period specified in the notice given to the interest owner;

  • (b) in the opinion of the Federal Minister, the compensation to be granted to the interest owner for the surrender of the interest has not been determined during the negotiations within a reasonable time; or

  • (c) in the opinion of the Federal Minister, the negotiations have not resulted in the surrender of the interest by the interest owner within a reasonable time even though the compensation to be granted to the interest owner has been determined during the negotiations.

• Marginal note:Amount of compensation

  (5) The Federal Minister shall, in the order, specify the amount of the compensation to be granted to the interest owner under subsection 56.3(2) in respect of the cancellation of the interest.

• Marginal note:Crown reserve areas

  (6) The portion of the offshore area subject to the interest referred to in subsection (1) that has been surrendered or the interest referred to in subsection (4) that has been cancelled becomes a Crown reserve area.

• Marginal note:Return of deposit

  (7) If an interest referred to in subsection (1) is surrendered or if an interest referred to in subsection (4) is cancelled, the deposit balance with respect to the interest held by the person holding that deposit balance on behalf of the interest owner, calculated in accordance with the regulations, shall be returned to the interest owner, less any liability, either direct or by way of indemnity, owed by the interest owner to that person at the time of the surrender or cancellation.

Marginal note:Compensation — surrender

• 56.3 (1) If an interest owner surrenders an interest referred to in subsection 56.2(1), His Majesty in right of Canada may grant any compensation that is determined by negotiations with the Federal Minister for the surrender of the interest.

• Marginal note:Compensation — cancellation

  (2) If an interest is cancelled by an order made under subsection 56.2(4), His Majesty in right of Canada may grant an interest owner the compensation that is specified in the order. If the order cancels a petroleum-related interest, it is subject to section 124 in respect of the amount of that compensation, and, for the purposes of this subsection, any reference to the Regulator in that section is to be read as a reference to the Federal Minister.

• Marginal note:No compensation

  (3) A person shall not have any right to claim or receive any compensation, damages, indemnity or other form of relief from His Majesty in right of Canada or from any servant or agent of His Majesty in right of Canada for any acquired, vested, future or potential right or entitlement that is affected by a surrender of an interest referred to in subsection 56.2(1) or a cancellation of an interest referred to in subsection 56.2(4), other than compensation that may be granted to an interest owner under this section.

Marginal note:Negotiations for compensation

• 56.4 (1) The Provincial Minister may enter into negotiations with an owner of a petroleum-related interest for a determination of any compensation that may be granted to the interest owner for the surrender of the interest in respect of all or any portion of the offshore area subject to the interest, if all or any portion of the offshore area in respect of which the surrender is negotiated is

  • (a) located in an area that is identified under an Act of the Legislature of the Province as an area for environmental or wildlife conservation or protection; or

  • (b) subject to regulations made under section 56.1.

• Marginal note:Notice to Federal Minister

  (2) The Provincial Minister shall, not later than 60 days before entering into the negotiations, give written notice to the Federal Minister of the Provincial Minister’s intention to enter into negotiations with the interest owner within the period specified in the notice referred to in subsection (3).

• Marginal note:Notice to interest owner

  (3) The Provincial Minister shall, not later than 30 days before entering into the negotiations, give written notice to the interest owner, and forward a copy of the notice to the Regulator, indicating the Provincial Minister’s intent to enter into negotiations with the interest owner within the period specified in the notice.

• Marginal note:Power to cancel

  (4) The Provincial Minister and the Federal Minister may, by order, jointly cancel the interest in respect of all or any portion of the offshore area that is subject to the interest and that is located in an area that is or, in the opinion of the lieutenant governor in council of the Province, may be identified under an Act of the Legislature of the Province as an area for environmental or wildlife conservation or protection, if

  • (a) the interest owner did not enter into negotiations with the Provincial Minister within the period specified in the notice given to the interest owner;

  • (b) in the opinion of the Provincial Minister, the compensation to be granted to the interest owner for the surrender of the interest has not been determined during the negotiations within a reasonable time; or

  • (c) in the opinion of the Provincial Minister, the negotiations have not resulted in the surrender of the interest by the interest owner within a reasonable time even though the compensation to be granted to the interest owner has been determined during the negotiations.

• Marginal note:Amount of compensation

  (5) The Provincial Minister shall specify in the order the amount of the compensation to be granted to the interest owner under subsection 56.5(2) in respect of the cancellation of the interest.

• Marginal note:Crown reserve areas

  (6) The portion of the offshore area subject to the interest referred to in subsection (1) that has been surrendered or the interest referred to in subsection (4) that has been cancelled becomes a Crown reserve area.

• Marginal note:Return of deposit

  (7) If an interest referred to in subsection (1) is surrendered or if an interest referred to in subsection (4) is cancelled, the deposit balance with respect to the interest held by the person holding that deposit balance on behalf of the interest owner, calculated in accordance with the regulations, shall be returned to the interest owner, less any liability, either direct or by way of indemnity, owed by the interest owner to that person at the time of the surrender or cancellation.

Marginal note:Compensation — surrender

• 56.5 (1) If an interest owner surrenders an interest referred to in subsection 56.4(1), His Majesty in right of the Province may grant any compensation that is determined by negotiations with the Provincial Minister for the surrender of the interest.

• Marginal note:Compensation — cancellation

  (2) If an interest is cancelled by an order made under subsection 56.4(4), His Majesty in right of the Province may grant an interest owner the compensation that is specified in the order. The order is subject to section 124 in respect of the amount of that compensation, and, for the purposes of this subsection, any reference to the Regulator in that section is to be read as a reference to the Provincial Minister.

• Marginal note:No compensation

  (3) A person shall not have any right to claim or receive any compensation, damages, indemnity or other form of relief from His Majesty in right of the Province or from any servant or agent of His Majesty in right of the Province for any acquired, vested, future or potential right or entitlement that is affected by a surrender of an interest referred to in subsection 56.4(1) or a cancellation of an interest referred to in subsection 56.4(4), other than compensation that may be granted to an interest owner under this section.

General Rules Relating to Issuance of Petroleum-Related Interests

Marginal note:Authority to issue petroleum-related interests

• 57 (1) The Regulator may issue petroleum-related interests in respect of any portion of the offshore area in accordance with this Part and the regulations.

• Marginal note:Fundamental decision

  (2) The issuance of a petroleum-related interest by the Regulator is subject to sections 31 to 40 unless the issuance of the interest is mandatory under another provision of this Part.

• Marginal note:Application of interest may be limited

  (3) Subject to subsection (4), the application of any petroleum-related interest may be restricted to geological formations and to substances specified in the interest.

• Marginal note:Exception

  (4) Subsection (3) does not apply to any petroleum-related interest

  • (a) that is in force or in respect of which negotiations were completed before or on the coming into force of this section in relation to any portion of the offshore area; or

  • (b) that immediately succeeds an interest referred to in paragraph (a) in relation to that portion of the offshore area if that portion was not a Crown reserve area on the expiration of the interest referred to in paragraph (a).

Marginal note:Issuance of interest not required

• 60 (1) The Regulator is not required to issue a petroleum-related interest as a result of a call for bids.

• Marginal note:New call required

  (2) Subject to section 61, if the Regulator has not issued a petroleum-related interest with respect to a particular portion of the offshore area specified in a call for bids within six months after the closing date specified in the call for bids, the Regulator shall, before issuing a petroleum-related interest in relation to that portion of the offshore area, make a new call for bids.

Marginal note:Failure to comply with call procedures

62 If a petroleum-related interest has been issued, it is not vitiated by reason only of a failure to comply with any of the requirements set out in sections 58 to 61 respecting the form and content of, and time and manner of publishing, any notice required by those sections in relation to that interest.

• Marginal note:Term of significant discovery licence

  (3) Subject to subsection 85(1), a significant discovery licence continues in force, in relation to each portion of the offshore area to which the licence applies, for a term of 25 years.

• Marginal note:Automatic extension of term

  (3.1) If the interest owner has made an application for a declaration of commercial discovery referred to in subsection 78(1) or for the issuance of a production licence referred to in subsection 81(1), the term of the significant discovery licence is extended until the Regulator makes a decision respecting that application.

• Marginal note:Cancelling automatic extension

  (3.2) The extension to the term of the significant discovery licence remains in force after the Regulator makes a declaration of commercial discovery, but the Regulator may cancel the extension if the interest owner fails to submit an application for the issuance of a production licence within a reasonable time.

• Marginal note:Exception

  (2) Despite subsection (1), the Regulator may, subject to such terms and conditions as the Regulator deems appropriate, authorize any interest holder of a petroleum-related interest or a share in such an interest to produce petroleum on the portions of the offshore area subject to the interest or share for use in the exploration or drilling for or development of petroleum on any portion of the offshore area.

DIVISION VOffshore Renewable Energy

General Rules Relating to Issuance of Submerged Land Licences

Marginal note:Regulator’s authority to issue licences

• 88 (1) The Regulator may issue submerged land licences in respect of any portion of the offshore area in accordance with this Part and the regulations.

• Marginal note:Ministerial decision

  (2) The issuance of a submerged land licence by the Regulator is subject to sections 40.1 to 40.3.

• Marginal note:Application of licence may be limited

  (3) The application of any submerged land licence may be restricted to particular technologies or types of offshore renewable energy resources specified in the licence.

• Marginal note:Licence not required

  (4) A submerged land licence is not required for the purpose of carrying on a work or activity described in paragraph (a) of the definition offshore renewable energy project in section 2 that does not require attaching a facility or structure to the seabed.

Marginal note:Rights under submerged land licences

89 A submerged land licence confers, with respect to the portions of the offshore area to which it applies and subject to the terms and conditions it specifies, the right to carry on an offshore renewable energy project.

Marginal note:Calls for bids

• 90 (1) Subject to section 94, the Regulator shall not issue a submerged land licence in relation to Crown reserve areas unless

  • (a) prior to issuing the licence, the Regulator has made a call for bids in relation to those Crown reserve areas by publishing a notice in accordance with this section and section 96; and

  • (b) the licence is issued to the person who submitted, in response to the call, a bid selected by the Regulator in accordance with subsection 91(1).

• Marginal note:Ministerial decision

  (2) The making of a call for bids for the issuance of a submerged land licence is subject to sections 40.1 to 40.3.

• Marginal note:Contents of call

  (3) The call for bids shall specify

  • (a) the submerged land licence to be issued and the portions of the offshore area to which the licence is to apply;

  • (b) if applicable, the particular technologies or types of offshore renewable energy resources to which the licence is to apply;

  • (c) the other terms and conditions subject to which the licence is to be issued;

  • (d) any terms and conditions that a bid must satisfy to be considered by the Regulator;

  • (e) the form and manner in which a bid is to be submitted;

  • (f) the closing date for the submission of bids; and

  • (g) the criteria that the Regulator will apply in assessing bids submitted in response to the call.

Marginal note:Selection of bid

• 91 (1) A bid submitted in response to a call for bids shall not be selected unless

  • (a) the bid satisfies the terms and conditions and is submitted in the form and manner specified in the call; and

  • (b) the selection is made on the basis of the criteria specified in the call.

• Marginal note:Publication of bid selected

  (2) If the Regulator selects a bid submitted in response to a call for bids, the Regulator shall publish a notice in accordance with section 96 setting out the terms and conditions of that bid.

• Marginal note:Recommendation

  (3) The Regulator shall make an offshore renewable energy recommendation for or against the issuance of a submerged land licence under section 88 respecting all bids selected in accordance with subsection (1).

Marginal note:Issuance of licence not required

• 92 (1) The issuance of a submerged land licence is not required as a result of a call for bids.

• Marginal note:Licence to be consistent with bid

  (2) If a submerged land licence is to be issued as a result of a call for bids, the terms and conditions of the licence shall be substantially consistent with any terms and conditions specified in the call.

• Marginal note:Publication of terms and conditions — issued licence

  (3) The Regulator shall publish a notice in accordance with section 96 setting out the terms and conditions of any submerged land licence issued as a result of a call for bids as soon as practicable after the licence’s issuance.

Marginal note:New call for bids required

93 Subject to section 94, if the Regulator has not issued a submerged land licence with respect to a particular portion of the offshore area specified in a call for bids within 12 months after the closing date specified in the call for bids, the Regulator shall, before issuing a submerged land licence in relation to that portion of the offshore area, make a new call for bids.

Marginal note:Exception to call for bids — offshore renewable energy

• 94 (1) Subject to sections 40.1 to 40.3, the Regulator may issue a submerged land licence, in relation to any Crown reserve area, without making a call for bids if

  • (a) the portion of the offshore area to which the licence is to apply has, through error or inadvertence, become a Crown reserve area and the interest owner who last held a submerged land licence in relation to that portion of the offshore area has, within one year after the time it became a Crown reserve area, requested the Regulator to issue a licence;

  • (b) the Regulator is issuing the licence to an interest owner in exchange for the surrender by the interest owner, at the request of the Regulator, of any other submerged land licence or share in any other such licence, in relation to all or any portion of the offshore area subject to that other licence; or

  • (c) the Federal Minister and the Provincial Minister have directed the Regulator to review an application for the issuance of a submerged land licence that will include the terms and conditions specified by the Ministers.

• Marginal note:Conditions

  (2) The terms and conditions referred to in paragraph (1)(c) shall specify that the purpose of the offshore renewable energy project to be carried out under the submerged land licence shall be restricted to any of the following:

  • (a) to conduct research or to demonstrate a technology, approach or method related to the production, transmission or storage of renewable energy;

  • (b) to conduct a site assessment activity;

  • (c) to transmit an energy product produced from a renewable resource;

  • (d) to provide energy for a petroleum-related work or activity; or

  • (e) any other purpose set out in regulations.

• Marginal note:Notice

  (3) If the Regulator proposes to issue a submerged land licence under subsection (1), the Regulator shall, not later than 120 days before issuing the licence, publish a notice in accordance with section 96 setting out the terms and conditions of the proposed licence.

Marginal note:Failure to comply with call procedures

95 If a submerged land licence has been issued, it is not vitiated by reason only of a failure to comply with any of the requirements set out in sections 90 to 94 respecting the form and content of, and time and manner of publishing, any notice required by those sections in relation to that licence.

Marginal note:Manner of publication of notices

96 Any notice required to be published by the Regulator under subsection 90(1), 91(2), 92(3), 94(3) or 96.3(2) shall be published in the Canada Gazette and in any other publication the Regulator deems appropriate and, despite those subsections, may contain only a summary of the information required to be published and a statement that the full text of the notice is available for inspection by any person on request made to the Regulator.

Marginal note:Regulations

96.1 Subject to section 7, the Governor in Council may, for the purposes of section 90, make regulations of general application in relation to the offshore area or any portion of the offshore area, or in respect of any particular call for bids, prescribing the terms, conditions and criteria to be specified in a call for bids and the manner in which bids are to be submitted and requiring those terms, conditions and criteria and manner to be specified in the call.

Terms and Conditions

Marginal note:Terms and conditions

• 96.2 (1) A submerged land licence shall contain any terms and conditions that may be set out in regulations and may contain any other terms and conditions, not inconsistent with this Part or the regulations, that may be agreed on by the Regulator, subject to sections 40.1 to 40.3, and the interest owner of the licence.

• Marginal note:Regulations

  (2) Subject to section 7, the Governor in Council may make regulations prescribing terms and conditions required to be included in submerged land licences issued in relation to the offshore area or any portion of the offshore area.

Marginal note:Amendment of licence

• 96.3 (1) Subject to sections 40.1 to 40.3, the Regulator and the interest owner of a submerged land licence may, by agreement, amend any provision of the licence in any manner not inconsistent with this Part or the regulations and may, subject to subsection (2), amend the licence to include any other portion of the offshore area.

• Marginal note:Exception

  (2) The Regulator shall not amend a submerged land licence to include any portion of the offshore area that, immediately prior to the inclusion, was a Crown reserve area unless the Regulator would be able to issue an interest to that interest owner in relation to that area under subsection 94(1) and a notice has been published in accordance with section 96 not later than 120 days before making the amendment, setting out the terms and conditions of the amendment.

• Marginal note:Consolidation of licences

  (3) Subject to sections 40.1 to 40.3, the Regulator may, on the application of the interest owners of two or more submerged land licences, consolidate those licences into a single submerged land licence, subject to any terms and conditions that may be agreed on by the Regulator and those interest owners.

Marginal note:Effective date of licence

• 96.4 (1) The effective date of a submerged land licence is the date specified in the licence.

• Marginal note:Crown reserve areas on expiry of licence

  (2) On the expiry of the submerged land licence, the portions of the offshore area to which the licence related become Crown reserve areas.

Marginal note:Qualification for submerged land licence

96.5 No submerged land licence or share in a submerged land licence may be held by any person other than a corporation incorporated in Canada.

Principles

Marginal note:Principles

96.6 The following principles apply in this Division:

• (a) all Canadian corporations and individuals resident in Canada shall have a full and fair opportunity to participate on a competitive basis, including in the course of employment, in the supply of goods and services used in any work or activity related to an offshore renewable energy project;

• (b) importance shall be given to the development of measures that aim to increase the participation of under-represented groups, including in the course of employment, in the supply of goods and services used in any such work or activity; and

• (c) during the submerged land licence issuance process, importance shall be given to the consideration of effects on fishing activities.

DIVISION VIRoyalties and Revenues

Reservation of Royalties and Revenues

Marginal note:Revenues reserved

• 97.1 (1) There is reserved to His Majesty in right of Canada, and each holder of a share in a submerged land licence is liable for and shall pay to His Majesty in right of Canada, in accordance with subsection (2), the revenues, interest and penalties that would be payable under any Act of the Province and any regulations made under that Act in respect of any offshore renewable energy project as if that project were carried out within the Province.

• Marginal note:Application of Newfoundland and Labrador legislation

  (2) Subject to this Act and the regulations, any Act and regulations referred to in subsection (1) apply, with any modifications that the circumstances require, for the purposes of this section.

• Marginal note:Remedies for unpaid revenues

  (3) Despite any other provision of this Act or the regulations, for the purposes of this section, if a person is in default under any Act or regulations referred to in subsection (1) in the payment of any amount payable under this section, the Provincial Minister may, as long as the amount remains unpaid, direct the Regulator to

  • (a) refuse to issue to that person any submerged land licence in relation to any portion of the offshore area;

  • (b) refuse to authorize, under Part III, that person to carry on any work or activity related to an offshore renewable energy project and suspend any such authorization already given; and

  • (c) exercise the powers under subsections 123(1) and (4).

• Marginal note:No remedy pending appeals

  (4) No remedy may be exercised under subsection (3) in respect of a default in payment of an amount pending any assessment, reassessment, appeal or review in respect of that default under any Act or regulations referred to in subsection (1) or otherwise provided by law.

• Marginal note:For greater certainty

  (5) For greater certainty, for the purposes of this Division, revenues, interest and penalties payable under subsection (1) do not include taxes, interest and penalties imposed, levied and collected under Part IV.

Marginal note:Remittance to Receiver General

• 99 (1) All royalties, interests and penalties payable under section 97 and all revenues, interest and penalties payable under section 97.1, including the proceeds of any royalty or revenues payable in kind, shall be made payable and remitted to the Receiver General.

• Marginal note:Consolidated Revenue Fund

  (2) On the collection or receipt by the Regulator under this section of any amounts payable, those amounts shall be deposited as soon as practicable to the credit of the Receiver General and paid into the Consolidated Revenue Fund in the manner prescribed by the Treasury Board under the Financial Administration Act.

Liability and Collection

Marginal note:Debts due to His Majesty

100 All royalties, interest and penalties payable under section 97 and all revenues, interest and penalties payable under section 97.1 are debts due to His Majesty in right of Canada and are recoverable from the person required to pay them in accordance with this Division.

• Marginal note:Appointment

  (3) Despite subsection 78(2) of the Canada Petroleum Resources Act, one of the members of the Environmental Studies Management Board established by subsection 78(1) of that Act is to be appointed by the Regulator on the recommendation of the Provincial Minister.

• Marginal note:Reports and recommendations to Regulator

  (4) The Environmental Studies Management Board referred to in subsection (3) shall submit to the Regulator a copy of every annual report and recommendation submitted to the Federal Minister under paragraph 79(1)(d) or (e) of the Canada Petroleum Resources Act at the same time the report or recommendation is submitted to the Federal Minister.

court

court means the Supreme Court of Newfoundland and Labrador and includes any of its judges; (tribunal)

operator’s lien

operator’s lien means any charge on or right in relation to an interest or a share in an interest

• (a) that arises under a contract

  • (i) to which the interest owner or holder of the interest or share is a party,

  • (ii) that provides for the operator appointed under the contract to carry out any work or activity, in the portions of the offshore area to which the interest or share applies, related to the exploration for or the development or production of petroleum or to offshore renewable energy projects, and

  • (iii) that requires the interest owner or holder to make payments to the operator to cover all or part of the advances made by the operator in respect of the costs and expenses of such work or activity, and

• (b) that secures the payments referred to in subparagraph (a)(iii); (privilège de l’exploitant)

Marginal note:Notice of disposition of any interest

• 103 (1) If an interest holder of an interest or any share in an interest enters into an agreement or arrangement that is or may result in a transfer, assignment or other disposition of the interest or share, the interest holder shall give notice of such agreement or arrangement to the Regulator, together with a summary of its terms and conditions or, on the request of the Regulator, a copy of the agreement or arrangement.

• Marginal note:Conditions of transfer

  (2) A submerged land licence shall only be transferred, assigned or otherwise disposed of under subsection (1) if the Regulator is satisfied that the terms and conditions of the licence can be met following the transfer, assignment or other disposition.

• Marginal note:Default — petroleum

  (2) Despite anything in this Part but subject to sections 31 to 40 and subsection 123(3), if the interest owner or holder of a petroleum-related interest fails to comply with a notice under subsection (1) within the period specified in the notice and the Regulator considers that the failure to comply warrants cancellation of the interest of the interest owner or holder of or any share in the interest held by the holder with respect to a portion only of the offshore area subject to the interest, the Regulator may, by order subject to section 124, cancel that interest or share, in which case the portions of the offshore area under that interest or share become Crown reserve areas.

• Marginal note:Non-application of section 124

  (3) The Regulator’s order to cancel an exploration licence, significant discovery licence or production licence under subsection (2) is not subject to section 124 if the notice under subsection (1) relates to a failure to meet any of the terms and conditions contained in that licence.

• Marginal note:Default — offshore renewable energy

  (4) Despite anything in this Part but subject to sections 40.1 to 40.3, if the interest owner or holder of a submerged land licence fails to comply with a notice under subsection (1) within the period specified in the notice and the Regulator considers that the failure to comply warrants cancellation of the licence of the interest owner or holder or any share in the licence held by the holder, the Regulator may, by order, cancel that licence or share, in which case the portions of the offshore area under that licence or share become Crown reserve areas.

Marginal note:Replacement of rights

• 128 (1) Subject to section 127 and subsection 129(2), the petroleum-related interests provided for under this Part replace all petroleum rights or prospects of petroleum rights acquired or vested in relation to any portion of the offshore area prior to the coming into force of this section.

Marginal note:Transitional

134.1 Despite subsection 75(3) and subject to subsection 85(1), if the interest holder of an exploration licence issued before 2017 applies for a declaration of significant discovery in relation to any portion of the offshore area to which that licence applies and if the significant discovery is indicated by the first well on a geological feature that demonstrates, by flow testing, the existence of hydrocarbons in that feature, any significant discovery licence issued for that significant discovery area continues in force, in relation to each portion of the offshore area to which the licence applies, for as long as the declaration of significant discovery on the basis of which the licence was issued remains in force in relation to that portion.

Petroleum and Offshore Renewable Energy Operations

Marginal note:Purpose

135.1 The purpose of this Part is to promote

• (a) safety, particularly by encouraging persons exploring for and exploiting petroleum or carrying on an offshore renewable energy project to maintain a prudent regime for achieving safety;

• (b) the protection of the environment;

• (b.1) accountability in accordance with the “polluter pays” principle; and

• (c) in respect of the exploration for and exploitation of petroleum, the conservation of petroleum resources and joint production arrangements.

Champ d’application

Marginal note:Application

136 This Part applies in respect of the exploration and drilling for and the production, conservation, processing and transportation of petroleum, and in respect of offshore renewable energy projects, in the offshore area.

Marginal note:Prohibition — offshore renewable energy

137.01 No person shall carry on any work or activity related to an offshore renewable energy project unless

• (a) that person is the holder of an authorization issued, before the commencement of operations, under subsection 138.01(1) for the work or activity; and

• (b) if it is required, that person is authorized or entitled to carry on business in the place where that person proposes to carry on the work or activity.

Marginal note:Delegation

137.1 The Regulator may delegate any of the Regulator’s powers under section 138, 138.01, 138.2, 138.3, 139.1, 139.2, 162.1, 163, 183.2 or 183.21 to any person, and the person shall exercise those powers in accordance with the terms of the delegation.

Petroleum Operating Licences and Authorizations

Marginal note:Definition of designated project

• 138.011 (1) For the purposes of this section and sections 138.012 to 138.016, designated project means a designated project, as defined in section 2 of the Impact Assessment Act, that is a work or activity referred to in section 137 or 137.01 of this Act.

• Marginal note:Impact assessment

  (2) If an application for an authorization made under paragraph 138(1)(b) or subsection 138.01(1) or an application made under subsection 139(2) is in respect of a designated project, the Regulator may not make a determination respecting that application before

  • (a) the Impact Assessment Agency of Canada decides, under subsection 16(1) of the Impact Assessment Act, that an impact assessment of that project is not required; or

  • (b) the Minister of the Environment has issued a decision statement under section 65 of that Act.

• Marginal note:Designating a work or activity

  (3) If the Minister of the Environment considers designating, under section 9 of the Impact Assessment Act, a work or activity referred to in section 137 or 137.01 of this Act, the Chairperson of the Regulator shall provide the Minister with comments respecting this designation.

• Marginal note:Consultation with Ministers

  (4) Before providing the Minister of the Environment with comments, the Chairperson of the Regulator may consult with the Federal Minister and the Provincial Minister and, in that event, the Chairperson shall consult with both Ministers.

Marginal note:Access to information by Impact Assessment Agency

• 138.012 (1) The Regulator shall provide the Impact Assessment Agency of Canada, on request and within the period specified by the Agency under subsection 13(1) of the Impact Assessment Act, with any specialist or expert information or knowledge that the Regulator possesses.

• Marginal note:Engaging proponent

  (2) The Regulator shall, on the Agency’s request made under subsection 13(2) of the Impact Assessment Act, engage the proponent of the designated project in order to specify to the proponent the information, if any, that the Regulator may require in order to exercise its powers or perform its duties or functions with respect to that project.

• Marginal note:Comments for Agency — notice

  (3) The Chairperson of the Regulator shall provide the Agency with comments for any work or activity referred to in section 137 or 137.01 that is the subject of a notice posted under subsection 15(3) of the Impact Assessment Act in order to assist the Agency to decide whether an impact assessment of that work or activity is required.

• Marginal note:Consultation with Ministers

  (4) Before providing the Agency with comments, the Chairperson of the Regulator may consult with the Federal Minister and the Provincial Minister and, in that event, the Chairperson shall consult with both Ministers.

• Marginal note:Comments for Agency — time limits

  (5) If the Agency decides that an impact assessment of the designated project is required, the Chairperson of the Regulator shall provide the Agency with comments respecting the time limits referred to in subsections 28(2) and 37(1) of the Impact Assessment Act within which the impact assessment report shall be submitted to the Minister of the Environment and within which any recommendations shall be posted on the Internet site established by the Agency.

• Marginal note:Comments — time extension

  (6) The Chairperson of the Regulator shall provide the Minister of the Environment with comments respecting any extension to the time limits that is considered under subsection 28(6) or (7) or 37(3) or (4) of the Impact Assessment Act.

• Marginal note:Consultation with Ministers

  (7) Before providing the Minister of the Environment with comments, the Chairperson of the Regulator may consult with the Federal Minister and the Provincial Minister and, in that event, the Chairperson shall consult with both Ministers.

• Marginal note:Comments for Agency — information or studies

  (8) If the Agency decides that an impact assessment of the designated project is required, the Regulator shall provide the Agency with comments respecting

  • (a) the scope of the factors that the Agency takes into account in determining, under subsection 18(1.2) of the Impact Assessment Act, what information or which studies it considers necessary and that it may require from the proponent for the conduct of the impact assessment;

  • (b) the information or studies that the Regulator considers necessary for the conduct of the impact assessment or preparation of the impact assessment report, as the case may be, and that the Agency may require from the proponent under paragraph 18(1)(a), subsections 19(3) and 26(2) and section 38 of that Act; and

  • (c) whether the proponent has provided the Agency with all of the information or studies necessary for the conduct of the impact assessment or preparation of the impact assessment report.

Marginal note:Access to information by Agency or review panel

138.013 The Regulator shall provide the Impact Assessment Agency of Canada or a review panel, on request and within the period specified by the Agency or review panel under section 23 of the Impact Assessment Act, with any specialist or expert information or knowledge that the Regulator possesses.

Marginal note:Comments for Agency — conditions

138.014 If the Impact Assessment Agency of Canada or review panel is to make recommendations respecting a designated project to assist the Minister of the Environment in establishing conditions under section 64 of the Impact Assessment Act, including respecting mitigation measures, a follow-up program or an adaptive management plan, the Regulator shall provide the Agency or review panel, as the case may be, with comments respecting those conditions.

Marginal note:Federal authority’s obligation

138.015 Every federal authority, as defined in section 2 of the Impact Assessment Act, shall provide the Regulator, on request and within the period specified by the Regulator, with any specialist or expert information or knowledge that the authority possesses and that the Regulator may require in order to

• (a) decide whether to authorize a work or activity under subsection 138(1) or 138.01(1);

• (b) decide whether to approve a development plan under subsection 139(4) or any amendment to that plan under subsection 139(5); or

• (c) conduct a regional assessment under section 138.017 or a strategic assessment under section 138.018.

Marginal note:Access to information by authority

138.016 The Regulator shall provide an authority, as defined in section 81 of the Impact Assessment Act, on request and within the period specified by the authority under section 85 of that Act, with any specialist or expert information or knowledge that the Regulator possesses respecting a project, as defined in section 81 of that Act.

Regional Assessments and Strategic Assessments

Marginal note:Regional assessments

• 138.017 (1) The Regulator may conduct a regional assessment of the effects of any existing or future work or activity referred to in sections 137 or 137.01.

• Marginal note:Agreement between Ministers

  (2) The Federal Minister and the Provincial Minister may enter into an agreement with any jurisdiction authorized under any other federal or provincial legislation to conduct a regional assessment of the effects of any existing or future work or activity referred to in sections 137 or 137.01, including to specify the time limits and terms of that regional assessment.

Marginal note:Strategic assessments

• 138.018 (1) The Regulator may conduct a strategic assessment of any proposed or existing policy, plan or program respecting the offshore area or of any issue that is relevant to any existing or future work or activity referred to in sections 137 or 137.01.

• Marginal note:Agreement between Ministers

  (2) The Federal Minister and the Provincial Minister may enter into an agreement with any jurisdiction authorized under any other federal or provincial legislation to conduct a strategic assessment of any proposed or existing policy, plan or program respecting the offshore area or of any issue that is relevant to any existing or future work or activity referred to in sections 137 or 137.01, including to specify the time limits and terms of that strategic assessment.

Marginal note:Access to information by Agency or committee

138.019 The Regulator shall provide the Impact Assessment Agency of Canada or a committee, on request and within the period specified by the Agency or committee under section 100 of the Impact Assessment Act, with any specialist or expert information or knowledge that the Regulator possesses.

Marginal note:Comments for Minister of the Environment

138.02 If the Minister of the Environment shall, for the purposes of any regional assessment of the effects of any existing or future work or activity referred to in sections 137 or 137.01 or for the purposes of any strategic assessment in the offshore area, establish the terms of reference and appoint members of a committee or establish the terms of reference of the Impact Assessment Agency of Canada under section 96 of the Impact Assessment Act, the Federal Minister, the Provincial Minister and the Chairperson of the Regulator shall provide the Minister of the Environment with comments respecting those terms of reference or appointments.

Participant Funding Program

Marginal note:Participant funding program

138.021 The Regulator may establish a participant funding program to facilitate the participation of the public and any Indigenous peoples of Canada in consultations concerning any matter respecting the offshore area.

Right of Entry

Marginal note:Safety — petroleum operations

• 138.2 (1) The Regulator shall, before issuing an authorization for a work or activity referred to in paragraph 138(1)(b), consider the safety of the work or activity by reviewing, in consultation with the Chief Safety Officer, the system as a whole and its components, including its structures, facilities, equipment, operating procedures and personnel.

• Marginal note:Safety — offshore renewable energy operations

  (2) The Regulator shall, before a work or activity referred to in subsection 138.01(1) commences, consider the safety of the work or activity by reviewing, in consultation with the Chief Safety Officer, the system as a whole and its components, including its structures, facilities, equipment, operating procedures and personnel.

Marginal note:Compliance — petroleum

• 138.3 (1) The Regulator shall, before issuing an authorization for a work or activity referred to in paragraph 138(1)(b), ensure that the applicant has complied with the requirements of subsections 162.1(1) or (2) and 163(1) or (1.01) in respect of that work or activity.

• Marginal note:Compliance — offshore renewable energy

  (2) The Regulator shall ensure that an applicant or holder of an authorization under subsection 138.01(1) has, prior to a date determined by regulations or, in the absence of regulations, prior to commencing a work or activity under that authorization, complied with the requirements of subsections 183.2(1) and 183.21(1) in respect of that work or activity.

• Marginal note:Transboundary pool

  (7) The definitions in section 166 also apply in subsections (8) to (12).

• Marginal note:Approval subject to agreement

  (8) Despite subsection (4), a development plan submitted for approval in respect of a work or activity to be carried out in a transboundary pool that is the subject of a joint exploitation agreement is not to be approved by the Regulator unless the appropriate authority has agreed to its content. The approval of Part I of that development plan is subject to sections 31 to 40 — or in respect of any transboundary pool that extends into the jurisdiction of a foreign government, to the consent of the Federal Minister in consultation with the Provincial Minister — and any requirements that the Regulator and appropriate authority have agreed are appropriate or that may be prescribed.

• Marginal note:Disagreement

  (9) In the case of a disagreement about the content of the plan submitted for approval, or any of the requirements for approval referred to in subsection (8), the Regulator or the appropriate authority — or in respect of any transboundary pool extending into the jurisdiction of a foreign government, the Federal Minister after having consulted the Minister of Foreign Affairs and the Provincial Minister — may refer the matter to an expert in accordance with section 183.16.

• Marginal note:Submissions regarding Part I

  (10) Any submissions to the expert by the Regulator regarding Part I of the development plan are subject to sections 31 to 40. In respect of any transboundary pool extending into the jurisdiction of a foreign government, the submissions are subject to the approval of the Federal Minister in consultation with the Provincial Minister.

• Marginal note:Expert’s decision

  (11) The expert’s decision is deemed to be approval of the plan by the Regulator and approval of Part I of that plan by the Federal Minister and the Provincial Minister, or in the case of any transboundary pool extending into the jurisdiction of a foreign government, by only the Federal Minister.

• Marginal note:Amendment to development plan

  (12) Subsections (7) to (11) apply, with any necessary modifications, to a proposed amendment to a development plan to which a work or activity in a transboundary pool relates or to any requirement to which the approval of the plan is subject.

Petroleum-related Certificates

Regulation of Operations — Petroleum

Petroleum Production Arrangements

Definitions

Transboundary Pools

Determination and Delineation

Marginal note:Information

• 183.01 (1) If an exploratory well, as defined in subsection 119(1), is drilled in the perimeter, the Regulator shall provide the appropriate authority, in the prescribed time and manner, with any information in its possession, including any prescribed information, pertinent to its determination of whether a transboundary pool exists and the delineation of it.

• Marginal note:Information in advance

  (2) The Regulator shall provide the Federal Minister and the Provincial Minister with any information referred to in subsection (1) before providing it to the appropriate authority.

• Marginal note:Additional information

  (3) After providing any information referred to in subsection (1) in the prescribed time, the Regulator shall, on request, provide the appropriate authority with any additional information in its possession that is pertinent to its determination of the existence of a transboundary pool and the delineation of it.

Marginal note:Notice — pool

• 183.02 (1) If the data obtained from any drilling in the perimeter provides sufficient information for the Regulator to determine whether a pool exists, the Regulator shall notify the appropriate authority as soon as feasible of its determination.

• Marginal note:Notice — transboundary pool

  (2) If the Regulator determines that a pool exists, the Regulator shall also specify in the notice whether or not there is, in its opinion, reason to believe that the pool is transboundary.

• Marginal note:Reasons

  (3) The Regulator shall, before it notifies the appropriate authority under subsection (1), provide the Federal Minister and the Provincial Minister with the reasons for its determination and opinion, if any.

• Marginal note:Timeline

  (4) The notice shall be given no later than one year after the Regulator receives the data from three drillings of the same geological feature in the perimeter.

Marginal note:Information received by Regulator

• 183.03 (1) If the Regulator receives a notice from an authority indicating the authority’s determination as to whether a pool exists in an area adjoining the perimeter, and, if applicable, whether there is reason to believe the pool extends into the perimeter, the Regulator shall, within 90 days after receiving the notice, inform the authority of its agreement or disagreement with the determination or opinion set out in the notice.

• Marginal note:Reasons

  (2) If the Regulator disagrees with the content of the notice, it shall provide the authority with the reasons for its disagreement.

• Marginal note:Information in advance

  (3) The Regulator shall, before it informs the authority of its agreement or disagreement with the content of the notice, inform the Federal Minister and the Provincial Minister of its determination, along with the reasons for that determination if it disagrees with the content of the notice.

Marginal note:Determination and delineation

• 183.04 (1) If, after receiving a notice under section 183.02 or 183.03, the Regulator and the authority in question agree that a pool exists, the Regulator and that authority shall jointly determine whether that pool is transboundary and, if so, they shall jointly delineate its boundaries.

• Marginal note:Disagreement

  (2) The Regulator or the authority — or in respect of any transboundary pool extending into the jurisdiction of a foreign government, the Federal Minister after consultations with the Minister of Foreign Affairs and the Provincial Minister — may, if they disagree about whether a pool exists, whether the pool is transboundary or its delineation, refer the matter to an expert and shall do so no later than 180 days after the day on which the Regulator issues a notice under subsection 183.02(1) or the authority issues an equivalent notice.

• Marginal note:Notification to Ministers

  (3) The Regulator shall, with respect to subsection (2), inform the Federal Minister and the Provincial Minister

  • (a) that the Regulator intends to refer the matter to an expert; or

  • (b) that the authority has referred the matter to an expert.

• Marginal note:Notification to the Provincial Minister

  (4) The Federal Minister shall, with respect to subsection (2) and any transboundary pool extending into the jurisdiction of a foreign government, inform the Provincial Minister that the foreign government has referred the matter to an expert.

Agreements Relating to Joint Exploitation

Marginal note:Single pool

• 183.05 (1) A transboundary pool is to be exploited as a single pool.

• Marginal note:Conditions for joint exploitation

  (2) The exploitation of a transboundary pool is subject to a joint exploitation agreement having been entered into and to a unit agreement and a unit operating agreement having been entered into and approved under subsection 183.08(4) or 183.12(4).

• Marginal note:Joint exploitation agreement prevails

  (3) The joint exploitation agreement prevails over the unit agreement and the unit operating agreement to the extent of any inconsistency between them.

Marginal note:Joint exploitation agreement

• 183.06 (1) Subject to subsection (2), the Regulator and the appropriate authority may enter into a joint exploitation agreement providing for the exploitation of a transboundary pool as a single pool. The agreement shall include any matters provided for by regulation.

• Marginal note:Advice to Ministers

  (2) In the case of any transboundary pool extending into the jurisdiction of a foreign government, the Regulator shall provide advice in respect of the exploitation of that transboundary pool to the Federal Minister and the Provincial Minister, who may enter into a joint exploitation agreement with the appropriate authority.

Marginal note:Intention to start production

• 183.07 (1) If an interest owner, as defined in section 47, advises the Regulator, including by way of an application under subsection 81(1) or paragraph 138(1)(b), that it intends to start production of petroleum from the transboundary pool, the Regulator shall notify the appropriate authority as soon as feasible of the interest owner’s intention.

• Marginal note:Notification of intention

  (2) The Regulator shall, before notifying the appropriate authority of the interest owner’s intention to start production of petroleum from the transboundary pool, notify the Federal Minister and the Provincial Minister of that intention.

• Marginal note:Referral to expert

  (3) The appropriate authority or the Regulator — or in respect of any transboundary pool extending into the jurisdiction of a foreign government, the Federal Minister after consultation with the Minister of Foreign Affairs and the Provincial Minister — may, if they have not yet entered into a joint exploitation agreement within a period of 180 days after the Regulator’s notice was given under subsection (1), refer the matter of determining the particulars of the agreement to an expert. However, they may agree to refer the matter to an expert any time before the period ends.

Marginal note:Unit agreement

• 183.08 (1) The royalty owners and the working interest owners in a transboundary pool may enter into a unit agreement and, once it is approved, shall operate their interests in accordance with it or any amendment to it.

• Marginal note:Unit operating agreement

  (2) The working interest owners in a transboundary pool may enter into a unit operating agreement and, once it is approved, shall operate their interests in accordance with it or any amendment to it.

• Marginal note:Content

  (3) The unit agreement shall include the details referred to in paragraphs 175(2)(a) to (d) and the unit operating agreement shall include the details referred to in paragraphs 175(3)(a) to (e).

• Marginal note:Approval

  (4) The Regulator and the appropriate authority may approve the unit agreement if all the royalty owners and all the working interest owners in the transboundary pool are parties to it; the Regulator and the appropriate authority may approve the unit operating agreement if all the working interest owners in the transboundary pool are parties to it.

• Marginal note:Condition precedent

  (5) An authorization under paragraph 138(1)(b) for a work or activity proposed to be carried on in relation to the exploitation of a transboundary pool shall not be issued if the unit agreement and the unit operating agreement have not been jointly approved by the Regulator and the appropriate authority.

• Marginal note:Applicable provisions

  (6) Subsections 172(2) and (3) apply to the unit agreement.

Marginal note:Order to enter into agreements

183.09 When a joint exploitation agreement is entered into in respect of a transboundary pool, the Regulator shall order the working interest owners in the portion of the pool that is in its jurisdiction to enter into a unit agreement and a unit operating agreement with any other working interest owners in the pool if they have not already done so.

Marginal note:Application for unitization order

• 183.1 (1) One or more working interest owners who are parties to a unit agreement and a unit operating agreement and own 65% or more of the working interests in a transboundary pool may apply for a unitization order with respect to the agreements.

• Marginal note:Content and submission of application

  (2) The application shall be submitted to both the Regulator and the appropriate authority. It shall include the documents and statements referred to in subsection 175(1) and may be made by the unit operator or proposed unit operator on behalf of the working interest owners.

• Marginal note:Appointment of expert

  (3) The Regulator and the appropriate authority shall, for the purposes of section 183.11, appoint an expert in accordance with subsections 183.16(2) to (4).

• Marginal note:Appointment of expert

  (4) In respect of any transboundary pool extending into the jurisdiction of a foreign government, the Federal Minister shall, after consultation with the Provincial Minister, agree with the appropriate authority on the appointment of an expert in accordance with subsection 183.16(9).

Marginal note:Hearing

• 183.11 (1) Once seized of the application under section 183.1, the expert shall hold a hearing at which all interested persons shall be given an opportunity to be heard.

• Marginal note:Conclusion of hearing

  (2) On the conclusion of the hearing, the expert shall request that the Regulator and appropriate authority

  • (a) order that the unit agreement be a valid contract enuring to the benefit of all the royalty owners and working interest owners who have an interest in the unit area and binding on and enforceable against those owners, and that the unit operating agreement be a valid contract enuring to the benefit of all the working interest owners who have an interest in the unit area and binding on and enforceable against those owners; and

  • (b) include in the order any variations to the unit agreement or unit operating agreement determined necessary by the expert to allow for the more efficient or more economical production of petroleum from the unitized zone.

• Marginal note:Exception

  (3) Despite subsection (2), the expert shall end the hearing and request that the Regulator and the appropriate authority take the measures referred to in paragraph (2)(a) if the expert finds that

  • (a) on the day the hearing begins,

    • (i) the unit agreement and the unit operating agreement have been executed by one or more working interest owners who own 65% or more of the working interests in the unit area, and

    • (ii) the unit agreement has been executed by one or more royalty owners who own 65% or more of the royalty interests in the unit area; and

  • (b) the unitization order applied for would allow for the more efficient or more economical production of petroleum from the unitized zone.

• Marginal note:Measures

  (4) In respect of any transboundary pool extending into the jurisdiction of a foreign government, the interested persons referred to in subsection (1) are representatives of each country in question and, on the conclusion of the hearing, the expert shall request that the interested persons ensure that the Regulator and the appropriate authority take the measures referred to in subsection (2) or (3).

Marginal note:Unitization order

• 183.12 (1) The Regulator shall issue a unitization order in accordance with the expert’s request made under subsections 183.11(2) to (4).

• Marginal note:Effect of unitization order

  (2) The unit agreement and the unit operating agreement have the effect given to them by the unitization order.

• Marginal note:Equivalent order

  (3) A unitization order becomes effective only if the appropriate authority has issued an equivalent order.

• Marginal note:Joint approval

  (4) The issuance of a unitization order by the Regulator and of an equivalent order by the appropriate authority is deemed to be their joint approval of the unit agreement and the unit operating agreement.

• Marginal note:Effective date of unitization order

  (5) Subject to subsections (3) and (6), a unitization order becomes effective on the date established in the order, but that date shall not be less than 30 days after the day on which the order is made.

• Marginal note:Order revoked

  (6) The Regulator shall immediately revoke a unitization order varying a unit agreement or a unit operating agreement if, before the effective date of that order, the party who applied for a unitization order under subsection 183.1(1) files with the Regulator a notice withdrawing the application on behalf of the working interest owners or there are filed with the Regulator statements objecting to the order and signed

  • (a) in the case of the unit agreement, by

    • (i) one or more working interest owners who own in total more than 25% of the working interests in the unit area and are part of the group that owns 65% or more of the working interests as described in subparagraph 183.11(3)(a)(i), and

    • (ii) one or more royalty owners who own in total more than 25% of the working interest in the unit area and are part of the group that owns 65% or more of the royalty interests as described in subparagraph 183.11(3)(a)(ii); or

  • (b) in the case of the unit operating agreement, by one or more working interest owners who own in total more than 25% of the working interests in the unit area and are part of the group that owns 65% or more of the working interests as described in subparagraph 183.11(3)(a)(i).

• Marginal note:Technical defects in unitization order

  (7) A unitization order is not invalid by reason only of the absence of notice or of any irregularities in giving notice to any owner in respect of the application for the order or any proceedings leading to the making of the order.

• Marginal note:Production prohibited except in accord with unitization order

  (8) After the date on which a unitization order comes into effect and while the order remains in force, no person shall carry on any operations within the unit area for the purpose of drilling for or producing petroleum from the unitized zone, except in accordance with the provisions of the unit agreement and the unit operating agreement.

• Marginal note:Not statutory instruments

  (9) The unitization order is not a statutory instrument for the purposes of the Statutory Instruments Act.

Marginal note:Amending unitization order

• 183.13 (1) A unitization order may be amended on the application of a working interest owner submitted to both the Regulator and the appropriate authority.

• Marginal note:Appointment of expert

  (2) The Regulator and the appropriate authority shall, for the purposes of this section, appoint an expert in accordance with subsections 183.16(2) to (4). In the case of any transboundary pool extending into the jurisdiction of a foreign government, the Federal Minister, after consultation with the Provincial Minister, shall agree with the appropriate authority on the appointment of an expert in accordance with subsection 183.16(9).

• Marginal note:Hearing

  (3) Once seized of the application, the expert shall hold a hearing at which all the interested persons shall be given an opportunity to be heard.

• Marginal note:Conclusion of hearing

  (4) On the conclusion of the hearing, the expert may request that the Regulator amend the unitization order in accordance with the proposed amendment and include in the order any variations to it determined necessary by the expert to allow for the more efficient or more economical production of petroleum from the unitized zone. If the expert makes such a request, the expert shall also request that the appropriate authority amend its equivalent order in the same way.

• Marginal note:Exception — short hearing

  (5) If the expert finds that, on the day on which the hearing begins, one or more working interest owners who own 65% or more of the working interests and one or more royalty owners who own 65% or more of the royalty interests in the unit area have consented to the proposed amendment, the expert may end the hearing and request that the Regulator amend the unitization order in accordance with the amendment. If the expert makes such a request, the expert shall also request that the appropriate authority amend its equivalent order in the same way.

• Marginal note:Transboundary pools

  (6) In respect of any transboundary pool extending into the jurisdiction of a foreign government, the interested persons referred to in subsection (3) are representatives of each country in question and, on the conclusion of the hearing, the expert shall request that the interested persons ensure that the Regulator and the appropriate authority take the measures referred to in subsections (4) and (5).

Marginal note:Protection of tract participation ratios

183.14 No amendment shall be made under section 183.13 that will alter the ratios between the tract participations of those tracts that were qualified for inclusion in the unit area before the commencement of the hearing, and, for the purposes of this section, the tract participations shall be those indicated in the unit agreement when it became subject to a unitization order.

Marginal note:Determination — percentages of interests

183.15 The percentages of interests referred to in subsections 183.1(1), 183.11(3), 183.12(6) and 183.13(5) shall be determined in accordance with section 182.

Referral to Expert

Marginal note:Notice

• 183.16 (1) The party that intends to refer a matter to an expert under subsections 45(9), 139(9), 183.04(2) and 183.07(3) shall notify the other party of their intention.

• Marginal note:Appointment — single expert

  (2) Within 30 days after notice is given under subsection (1), or of the application made under subsection 183.1(1) or 183.13(1), the parties shall agree on the appointment of an expert who shall be seized of the matter.

• Marginal note:Appointment — expert panel

  (3) If the parties do not agree on the appointment of a single expert, they shall, within 30 days after the day on which the period to jointly appoint an expert under subsection (2) ends, each appoint one member to an expert panel and those experts shall, in turn, jointly appoint an additional expert as chairperson. If the members fail to agree on the appointment of a chairperson within a period of 30 days after the day of the last appointment, the chairperson shall be appointed by the Chief Justice of the Federal Court within 30 days after the end of that period. Once the chairperson is appointed, the expert panel shall be seized of the matter.

• Marginal note:Conditions for appointment of expert

  (4) An expert shall be impartial and independent and have knowledge or experience relative to the subject of disagreement between the parties.

• Marginal note:Decisions

  (5) In the case of an expert panel, decisions shall be made on the basis of a majority vote of the members. The chairperson’s vote is the deciding vote in the case of a tie.

• Marginal note:Time limit

  (6) The expert’s decisions shall be made no later than 270 days after the day on which they were seized of the matter.

• Marginal note:Decision is final and binding

  (7) Subject to judicial review, a decision made by an expert is final and binding on all parties specified in the decision from the date specified in it.

• Marginal note:Records to be kept

  (8) An expert shall cause records to be kept of their hearings and proceedings and shall deposit their records with the Regulator when their activities to which the records relate have ceased.

• Marginal note:Expert — international treaty

  (9) In the case of a transboundary pool extending into the jurisdiction of a foreign government, the appointment of an expert and the making of decisions by them are to be made in accordance with any applicable international treaty respecting the exploration and exploitation of transboundary pools, as amended from time to time.

• Marginal note:Costs

  (10) In the circumstances described in subsection (9), Canada and the foreign government shall share equally both the expert’s fees and costs and the costs of the expert’s proceedings. With respect to the portion of those costs and fees to be paid by Canada, the governments of Canada and of the Province are to share the expert’s fees and costs equally and, unless otherwise agreed, the costs of the proceedings are also to be shared equally.

• Marginal note:Expert’s powers

  (11) An expert has the powers necessary to carry out their functions under this Act.

DIVISION II.1Regulation of Operations — Offshore Renewable Energy

Debris

Marginal note:Definition of debris

• 183.17 (1) In sections 183.18 to 183.2 and 183.23, debris means

  • (a) any facility or structure that was put in place in the course of any work or activity required to be authorized under subsection 138.01(1), other than a site assessment activity, and that has been abandoned without an authorization that may be required by or under this Part, or that has been abandoned in a way that did not comply with such an authorization; or

  • (b) any material that has broken away or been jettisoned or displaced in the course of any of that work or activity or from an abandoned facility.

• Marginal note:Definition of actual loss or damage

  (2) In section 183.19, actual loss or damage includes loss of income, including future income, and, with respect to any Indigenous peoples of Canada, loss of hunting, fishing and gathering opportunities. It does not include loss of income recoverable under subsection 42(3) of the Fisheries Act.

Marginal note:Debris prohibited

• 183.18 (1) No person shall cause or permit debris to be left in any portion of the offshore area.

• Marginal note:Duty to report debris

  (2) If there is debris in any portion of the offshore area, any person carrying on any work or activity required to be authorized under subsection 138.01(1) in the area in which the debris is left shall, in the manner prescribed, report the debris to the Chief Conservation Officer.

• Marginal note:Duty to take reasonable measures

  (3) Every person required to report debris under subsection (2) shall, as soon as feasible, take all reasonable measures consistent with safety and the protection of health and the environment to prevent any further debris from accumulating, to repair or remedy any condition resulting from the debris and to reduce or mitigate any damage or danger that results or may reasonably be expected to result from the debris.

• Marginal note:Taking emergency action

  (4) The Chief Conservation Officer may take any action that is necessary, or direct that it be taken by any person, if the Chief Conservation Officer is satisfied on reasonable grounds that

  • (a) there is debris in any portion of the offshore area and immediate action is necessary in order to effect any reasonable measures referred to in subsection (3); and

  • (b) the action is not being taken or will not be taken under subsection (3).

• Marginal note:Taking over management

  (5) For the purposes of subsection (4), the Chief Conservation Officer may authorize and direct any person whose services are necessary to enter the area where the debris has been left and take over the management and control of any work or activity being carried on in that area.

• Marginal note:Managing work or activity

  (6) A person authorized and directed to take over the management and control of any work or activity under subsection (5) shall manage and control that work or activity and take all reasonable measures referred to in subsection (3) in relation to the debris.

• Marginal note:Costs

  (7) Any costs incurred under subsection (6) shall be borne by the person who obtained an authorization under subsection 138.01(1) in respect of the work or activity from which the debris originated and, until paid, constitute a debt recoverable by action in any court of competent jurisdiction as a debt due to the Regulator.

• Marginal note:Recovery of costs

  (8) If a person, other than a person referred to in subsection (7), takes a measure or an action under subsection (3) or (4), the person may recover from His Majesty in right of Canada the costs and expenses reasonably incurred by that person in taking the measure or action.

• Marginal note:Personal liability

  (9) No person required, directed or authorized to act under this section is personally liable either civilly or criminally in respect of any act or omission in the course of complying with this section unless it is shown that the person did not act reasonably in the circumstances.

Marginal note:Recovery of loss, damage, costs or expenses

• 183.19 (1) If, as a result of debris or as a result of any action or measure taken in relation to debris, there is a loss of non-use value relating to a public resource or any person incurs actual loss or damage or if His Majesty in right of Canada or the Province reasonably incurs any costs or expenses in taking any action or measure in relation to debris,

  • (a) all persons to whose fault or negligence the debris is attributable or who are by law responsible for others to whose fault or negligence the debris is attributable are jointly and severally liable, to the extent determined according to the degree of the fault or negligence proved against them, for that loss, actual loss or damage, and for those costs and expenses;

  • (b) the person who is required to obtain an authorization under subsection 138.01(1) in respect of the work or activity from which the debris originated is liable, without proof of fault or negligence, up to the applicable limit of liability established under this section, for that loss, actual loss or damage, and for those costs and expenses; and

  • (c) the person who carried out a work or activity for which an authorization under subsection 138.01(1) was required in a facility that is now an abandoned facility from which the debris originated is liable, without proof of fault or negligence, up to the applicable limit of liability established under this section, for that loss, actual loss or damage, and for those costs and expenses.

• Marginal note:Vicarious liability for contractors

  (2) A person who is required to obtain an authorization under subsection 138.01(1) and who retains, to carry on a work or activity in respect of which the authorization is required, the services of a contractor to whom paragraph (1)(a) applies is jointly and severally liable with that contractor for any actual loss or damage, costs and expenses and loss of non-use value described in subsection (1).

• Marginal note:Limit of liability

  (3) For the purposes of paragraphs (1)(b) and (c), the limit of liability is $1 billion.

• Marginal note:Lesser amount — Federal Minister’s order

  (4) Despite subsection (3), the Federal Minister may, by order, on the Regulator’s recommendation and with the Provincial Minister’s approval, establish a limit of liability that is lower than the limit referred to in that subsection in respect of persons carrying out a work or activity relating to offshore renewable energy projects that is specified in the order or of persons who carried out that work or activity in a facility that is now an abandoned facility.

• Marginal note:Lesser amount — Regulator

  (5) Despite subsections (3) and (4), the Regulator may, in the absence of regulations, establish a lower limit of liability for the purposes of paragraph (1)(c).

• Marginal note:Limits of liability — regulations

  (6) Subject to section 7, the Governor in Council may, by regulation,

  • (a) establish a limit of liability that is higher than the limit referred to in subsection (3);

  • (b) establish a limit of liability that is lower than the limit referred to in subsection (3) for the purposes of paragraph (1)(c); and

  • (c) limit the amount of time during which a person referred to in paragraph (1)(c) may be held liable under that paragraph.

• Marginal note:Liability under another law — paragraph (1)(b) or (c)

  (7) If a person is liable under paragraph (1)(b) or (c) with respect to an occurrence and the person is also liable under any other Act, without proof of fault or negligence, for the same occurrence, the person is liable up to the greater of the applicable limit of liability that is set out in subsection (3) and the limit up to which the person is liable under the other Act. If the other Act does not set out a limit of liability, the limit set out in subsection (3) does not apply.

• Marginal note:Costs and expenses not recoverable under Fisheries Act

  (8) The costs and expenses that are recoverable by His Majesty in right of Canada or the Province under this section are not recoverable under subsection 42(1) of the Fisheries Act.

• Marginal note:Action — loss of non-use value

  (9) Only His Majesty in right of Canada or the Province may bring an action to recover a loss of non-use value described in subsection (1).

• Marginal note:Claims

  (10) All claims under this section may be sued for and recovered in any court of competent jurisdiction in Canada. Claims in favour of persons incurring actual loss or damage described in subsection (1) are to be distributed pro rata and rank in priority over claims for costs and expenses described in that subsection, and the claims for costs and expenses rank in priority over claims to recover a loss of non-use value described in that subsection.

• Marginal note:Saving

  (11) Subject to subsections (8) and (9), nothing in this section suspends or limits

  • (a) any legal liability or remedy for an act or omission by reason only that the act or omission is an offence under this Division or gives rise to liability under this section;

  • (b) any recourse, indemnity or relief available at law to a person who is liable under this section against any other person; or

  • (c) the operation of any applicable law or rule of law that is not inconsistent with this section.

• Marginal note:Limitation period

  (12) Proceedings in respect of claims under this section may be instituted no later than the third anniversary of the day on which the loss, damage, costs or expenses occurred but in no case after the sixth anniversary of the day on which the facility, equipment or system in question was abandoned or the material in question broke away or was jettisoned or displaced.

Marginal note:Financial resources

• 183.2 (1) An applicant for an authorization under subsection 138.01(1) shall provide proof that they have the financial resources necessary to pay an amount that is determined by the Regulator. The proof shall be in the form and manner that are prescribed or, in the absence of regulations, that are specified by the Regulator.

• Marginal note:Loss of non-use value

  (2) In determining the amount, the Regulator is not required to consider any potential loss of non-use value relating to a public resource that is affected as a result of debris.

• Marginal note:Continuing obligation

  (3) The holder of the authorization shall ensure that the proof referred to in subsection (1) remains in force for the duration of the work or activity in respect of which the authorization is issued.

Marginal note:Proof of financial responsibility

• 183.21 (1) An applicant for an authorization under subsection 138.01(1) shall provide proof of financial responsibility in an amount that is determined by the Regulator. The proof shall be in the form of a letter of credit, guarantee or indemnity bond or in any other form satisfactory to the Regulator.

• Marginal note:Continuing obligation

  (2) The holder of the authorization shall ensure that the proof of financial responsibility remains in force for the duration of the work or activity in respect of which the authorization is issued.

• Marginal note:Payment of claims

  (3) The Regulator may require that moneys in an amount of not more than the amount prescribed for any case or class of cases, or fixed by the Regulator in the absence of regulations, be paid out of the funds available under the letter of credit, guarantee or indemnity bond or other proof provided under subsection (1) in respect of any claim for which proceedings may be instituted under section 183.19, whether or not those proceedings have been instituted.

• Marginal note:Manner of payment

  (4) A required payment shall be made in the manner, subject to any conditions and procedures, and to or for the benefit of the persons or classes of persons that may be prescribed for any case or class of cases, or that may be required by the Regulator in the absence of regulations.

• Marginal note:Deduction

  (5) If a claim is sued for under section 183.19, there shall be deducted from any award made as a result of the action on that claim any amount received by the claimant under this section in respect of the loss, damage, costs or expenses claimed.

Marginal note:Review committee

• 183.22 (1) A committee, consisting of members appointed by each government and by representatives of the offshore renewable energy industry and of the fisheries industry, is established by the joint operation of this Act and the Provincial Act to review and monitor the application of sections 183.19 and 183.21 and any claims and the payment of claims made under those sections.

• Marginal note:Dissolution

  (2) The committee may be dissolved only by the joint operation of an Act of Parliament and an Act of the Legislature of the Province.

• Marginal note:Promotion of compensation policies

  (3) The Regulator shall promote and monitor compensation policies for fishers sponsored by the fishing industry respecting damages of a non-attributable nature.

Inquiries

Marginal note:Inquiries

• 183.23 (1) If debris or an accident or incident related to any work or activity to which this Division applies occurs or is found in any portion of the offshore area and results in death or injury or danger to public safety or the environment, the Regulator may direct an inquiry to be made and may authorize any person it deems qualified to conduct the inquiry.

• Marginal note:Mandatory inquiry

  (2) If debris or an accident or incident related to any work or activity to which this Division applies occurs or is found in any portion of the offshore area and is “serious”, as defined by regulation in accordance with paragraph 183.25(1)(a), the Regulator shall direct that an inquiry referred to in subsection (1) be made and shall ensure that the person who conducts the inquiry is not employed by the Regulator.

• Marginal note:Power of person conducting inquiry

  (3) For the purposes of an inquiry under subsection (1), a person authorized by the Regulator under that subsection has and may exercise all the powers of a person appointed as a commissioner under Part I of the Inquiries Act.

• Marginal note:Report

  (4) As soon as feasible after the conclusion of an inquiry under subsection (1), the person or persons authorized to conduct the inquiry shall submit a report to the Regulator, together with the evidence and other material that was before the inquiry.

• Marginal note:Publication

  (5) The Regulator shall publish the report within 30 days after the Regulator receives it.

• Marginal note:Copies of report

  (6) The Regulator may supply copies of a report published under subsection (5) in any manner and on any terms that the Regulator considers appropriate.

General Duty

Marginal note:Reasonable care

183.24 The holder of an authorization issued under subsection 138.01(1) shall take all reasonable care to ensure the safety of persons and facilities and the protection of property and the environment.

Regulations

Marginal note:Regulations

• 183.25 (1) Subject to section 7, the Governor in Council may, for the purposes of safety, the protection of the environment and accountability, make regulations

  • (a) defining, in relation to offshore renewable energy projects, “facility” and “equipment” for the purposes of section 139.1 and “serious” for the purpose of section 183.23;

  • (b) respecting works and activities related to offshore renewable energy projects;

  • (c) authorizing the Regulator, or any person, to make any orders that are specified in the regulations and to exercise any powers and perform any duties that are necessary for the design, construction, operation or abandonment of an offshore renewable energy project within the offshore area;

  • (d) respecting arbitrations relating to offshore renewable energy projects for the purposes of subsection 138.1(2), including the costs of or incurred in relation to such arbitrations;

  • (e) respecting the approvals to be granted as terms and conditions of authorizations issued under subsection 138.01(1);

  • (f) prohibiting, in relation to offshore renewable energy projects, the introduction into the environment of substances, classes of substances and forms of energy, in prescribed circumstances;

  • (g) respecting the creation, conservation and production of records relating to offshore renewable energy projects; and

  • (h) prescribing, in relation to offshore renewable energy projects, anything that is required to be prescribed for the purposes of this Part.

• Marginal note:Incorporation by reference

  (2) Unless otherwise provided in this Part, a regulation made under subsection (1) may incorporate by reference any document, regardless of its source, either as it exists on a particular date or as it is amended from time to time.

Marginal note:Equivalent standards and exemptions

• 183.26 (1) Subject to subsection (2), the Chief Safety Officer and Chief Conservation Officer may

  • (a) authorize the use of equipment, methods, measures or standards in lieu of any required by any regulation made under section 183.25 if those Officers are satisfied that the use of that other equipment or those other methods, measures or standards would provide a level of safety and protection of the environment equivalent to that provided by compliance with the regulations; or

  • (b) grant an exemption from any requirement imposed by any regulation made under section 183.25 in respect of equipment, methods, measures or standards if those Officers are satisfied with the level of safety and protection of the environment that will be achieved without compliance with that requirement.

• Marginal note:One-officer authorizations

  (2) The Chief Safety Officer alone may exercise the powers referred to in paragraph (1)(a) or (b) if the regulatory requirement referred to in that paragraph does not relate to protection of the environment, and the Chief Conservation Officer alone may exercise those powers if the regulatory requirement does not relate to safety.

• Marginal note:No contravention

  (3) No person contravenes the regulations if that person acts in compliance with an authorization or exemption under subsection (1) or (2).

Marginal note:Guidelines and interpretation notes

• 183.27 (1) The Regulator may issue and publish, in any manner the Regulator considers appropriate, guidelines and interpretation notes with respect to the application and administration of section 138.01, any regulations respecting offshore renewable energy projects made under sections 29.1 and 183.25 and any regulations made under section 183.29 and subsection 183.3(3).

• Marginal note:Deemed not to be statutory instruments

  (2) Guidelines and interpretation notes issued under subsection (1) are deemed not to be statutory instruments for the purposes of the Statutory Instruments Act.

DIVISION II.2Safety and Protection of Persons, Property and the Environment

Marginal note:Orders

• 183.28 (1) The Regulator may, by order, direct any of the following persons or bodies to take measures in respect of an abandoned facility that the Regulator considers necessary for the safety of persons or the abandoned facility or for the protection of property or the environment:

  • (a) the holder of an authorization under paragraph 138(1)(b) or subsection 138.01(1) or any other person;

  • (b) a provincial government or a provincial Crown corporation; and

  • (c) a local authority.

• Marginal note:Measures to be taken

  (2) If a person or body does not comply with an order under subsection (1), the Regulator may

  • (a) take any action or measure the Regulator considers necessary;

  • (b) authorize an officer or employee, or class of officers or employees, of the Regulator to take the action or measure; or

  • (c) authorize a third party to take the action or measure.

• Marginal note:Orders deemed not to be statutory instruments

  (3) Orders made under subsection (1) shall be deemed not to be statutory instruments for the purposes of the Statutory Instruments Act.

Marginal note:Regulations

183.29 Subject to section 7, the Governor in Council may make regulations respecting abandoned facilities, including with respect to liability and to the proof of financial responsibility or financial resources to be provided by an applicant or holder of an authorization under subsection 138.01(1).

Marginal note:Abandoned facilities

• 183.3 (1) A person shall not make contact with, alter or remove an abandoned facility unless they are authorized to do so in an order made under subsection (2) or by regulations.

• Marginal note:Order

  (2) The Chief Safety Officer may make an order, subject to any conditions that that Officer considers appropriate, authorizing a person to make contact with, alter or remove an abandoned facility.

• Marginal note:Regulations

  (3) Subject to section 7, the Governor in Council may make regulations respecting the circumstances in which or conditions under which an order under subsection (2) is not necessary.

Marginal note:Serious bodily injury

• 193 (1) If an operational safety officer or the Chief Safety Officer, on reasonable grounds, is of the opinion that continuation of an operation in relation to the exploration or drilling for or the production, conservation, processing or transportation of petroleum or in relation to an offshore renewable energy project in any portion of the offshore area is likely to result in serious bodily injury, the operational safety officer or Chief Safety Officer, as the case may be, may order that the operation cease or be continued only in accordance with the terms of the order.

Installation or Facility Manager

Marginal note:Facility manager

• 193.3 (1) Every holder of an authorization under subsection 138.01(1) in respect of a work or activity for which a prescribed facility is to be used shall put in command of the facility a manager who meets any prescribed qualifications, and the facility manager is responsible for the safety of the facility and the persons at it.

• Marginal note:Powers

  (2) Subject to this Act and any other Act of Parliament, a facility manager has the power to do anything that is required to ensure the safety of the facility and the persons at it and, more particularly, may

  • (a) give orders to any person who is at the facility;

  • (b) order that any person who is at the facility be restrained or removed; and

  • (c) obtain any information or documents.

• Marginal note:Emergency

  (3) In a prescribed emergency situation, a facility manager’s powers are extended so that they also apply to each person in charge of a vessel, vehicle or aircraft that is at the facility or that is leaving or approaching it.

• (h) directing the offender to pay to the Regulator an amount of money that the court considers appropriate for the purpose of conducting research, education and training in matters related to the protection of the environment, conservation of petroleum resources or safety of petroleum operations or offshore renewable energy projects;

• Marginal note:Determination final

  (5) A determination made under this section is final and binding and, subject to review by the Supreme Court of Newfoundland and Labrador, is not subject to appeal or to review by any court.

Marginal note:Debt to His Majesty

• 202.9 (1) A penalty constitutes a debt due to His Majesty in right of the Province and may be recovered in the Supreme Court of Newfoundland and Labrador.

• Marginal note:Registration

  (2) Registration in the Supreme Court of Newfoundland and Labrador of a certificate of non-payment issued under subsection (1) has the same effect as a judgment of that court for a debt of the amount specified in the certificate and all related registration costs.

authorization

authorization means an authorization issued under paragraph 138(1)(b) or subsection 138.01(1). (autorisation)

declaration

declaration means a declaration referred to in subsection 139.1(1) or (2). (déclaration)

marine installation or structure

marine installation or structure

• (a) includes

  • (i) any ship, including any ship used for construction, production or diving or for geotechnical or seismic work,

  • (ii) any offshore drilling unit, including a mobile offshore drilling unit,

  • (iii) any production platform, subsea installation, pipeline as defined in section 135, pumping station or storage structure,

  • (iii.1) any facility or structure used for producing, storing or transmitting an offshore renewable energy product, including an electrical substation,

  • (iii.2) any living accommodation or loading or landing platform, and

  • (iv) any other work, or work within a class of works, prescribed under paragraph (4)(a); but

• (b) does not include

  • (i) any vessel, including any supply vessel, standby vessel, shuttle tanker or seismic chase vessel, that provides any supply or support services to a ship, installation, structure, work or anything else described in paragraph (a), unless the vessel is within a class of vessels that is prescribed under paragraph (4)(b), or

  • (ii) any ship or vessel within a class of ships or vessels prescribed under paragraph (4)(c). (ouvrage en mer)

Marginal note:Application of Part

• 205.003 (1) This Part applies to and in respect of a workplace that is situated within the offshore area for the purposes of the exploration or drilling for — or the production, conservation or processing of — petroleum, or for the purposes of offshore renewable energy projects, within the offshore area.

Marginal note:Non-application of Parts II and III of Canada Labour Code

205.004 Despite subsections 123(1) and 168(1) of the Canada Labour Code and any other Act of Parliament, Parts II and III of the Canada Labour Code do not apply to and in respect of a workplace that is situated within the offshore area for the purposes of the exploration or drilling for — or the production, conservation or processing of — petroleum, or for the purposes of offshore renewable energy projects, within the offshore area.

Marginal note:Non-application of Canadian Human Rights Act

205.005 The Canadian Human Rights Act does not apply to or in respect of a workplace that is situated within the offshore area for the purposes of the exploration or drilling for — or the production, conservation or processing of — petroleum, or for the purposes of offshore renewable energy projects, within the offshore area.

Marginal note:Non-application of Non-smokers’ Health Act

205.006 The Non-smokers’ Health Act does not apply to or in respect of a workplace that is situated within the offshore area for the purposes of the exploration or drilling for — or the production, conservation or processing of — petroleum, or for the purposes of offshore renewable energy projects, within the offshore area.

Marginal note:Application of Newfoundland and Labrador social legislation

• 205.007 (1) Newfoundland and Labrador social legislation and any regulations made under it apply to and in respect of a workplace that is situated within the offshore area for the purposes of the exploration or drilling for — or the production, conservation or processing of — petroleum, or for the purposes of offshore renewable energy projects, within the offshore area.

• Marginal note:Exception to paragraph (1)(q)

  (2) Despite paragraph (1)(q), all or part of a workplace described in paragraph (a) of the definition workplace in subsection 205.001(1) does not have to be inspected at least once a month if that workplace, or that part of the workplace, is normally unattended and is used for the purpose of carrying out an offshore renewable energy project.

• Marginal note:Exception to paragraph (1)(p)

  (1.1) Despite paragraph (1)(p), all or part of a workplace described in paragraph (a) of the definition workplace in subsection 205.001(1) does not have to be inspected at least once a month if that workplace, or that part of the workplace, is normally unattended and is used for the purpose of carrying out an offshore renewable energy project.

• Marginal note:Costs

  (5) The costs incurred by the provincial labour relations board in respect of an application made under subsection (1), including the remuneration of its members, shall be paid by the Regulator.

• Marginal note:Costs

  (5) The costs incurred by the provincial labour relations board in respect of an application made under subsection (1), including the remuneration of its members, shall be paid by the Regulator.

• Marginal note:Costs

  (7) The costs incurred by the provincial labour relations board in respect of an appeal made under subsection (1), including the remuneration of its members, shall be paid by the Regulator.

Marginal note:Non-application of Federal Courts Act

205.102 For the purposes of the Federal Courts Act, neither the Regulator, the Chief Safety Officer nor a health and safety officer, when exercising or purporting to exercise jurisdiction or powers conferred on them under this Part, is a federal board, commission or other tribunal as defined in subsection 2(1) of that Act.

• Marginal note:Witnesses

  (3) Every witness who attends and gives evidence at an inquiry under this section is entitled to be paid reasonable travel and living expenses incurred by the witness in doing so and the witness fees prescribed in the tariff of fees in use in the Supreme Court of Newfoundland and Labrador.

Marginal note:Short title

1 This Act may be cited as the Canada–Nova Scotia Offshore Petroleum Resources Accord Implementation and Offshore Renewable Energy Management Act.

Marginal note:Offshore renewable energy project

2.1 Subject to section 6, the Governor in Council may make regulations amending the definition offshore renewable energy project, as defined in section 2, to add or remove any work or activity that is carried out in the offshore area.

Marginal note:Provincial Minister’s approval

• 6 (1) Before a regulation is made under section 2.1, subsection 5(1) or 17(4), section 30.1, subsection 35(8), 39(7) or 45(7), section 59.1 or 67, subsection 70(2), section 98.2, subsection 98.3(2), section 121, subsection 125(1), 128(1), 153(1), 167(2.3), 168(1.02), 188.19(6) or 188.25(1), section 188.29, subsection 188.3(3) or 207.01(1) or section 208, 245 or 248, the Federal Minister shall consult the Provincial Minister with respect to the proposed regulation and the regulation shall not be made without the Provincial Minister’s approval.

Non-Application of Accord

Marginal note:Non-application of Accord

7.1 For greater certainty, the Accord does not apply to offshore renewable energy resources.

• Marginal note:Excluded legislation

  (2) Subject to section 103, the Canada Petroleum Resources Act, the Canada Oil and Gas Operations Act and Part 5 of the Canadian Energy Regulator Act and any regulations made under them do not apply within the offshore area.

Marginal note:Jointly established Regulator

• 9 (1) There is established by the joint operation of this Act and the Provincial Act a board to be known as the Canada–Nova Scotia Offshore Energy Regulator.

• Marginal note:Proposed amendments

  (2) The Regulator may make recommendations to both governments with respect to proposed amendments to this Act, the Provincial Act, any regulations made under those Acts and to any other legislation relating to petroleum resource and renewable energy activities in the offshore area.

Marginal note:Consultation with Indigenous peoples of Canada

18.1 His Majesty in right of Canada or in right of the Province may rely on the Regulator for the purposes of consulting with the Indigenous peoples of Canada respecting any potential adverse impact of a work or activity in the offshore area on existing Aboriginal and treaty rights recognized and affirmed by section 35 of the Constitution Act, 1982 and the Regulator may, on behalf of His Majesty, if appropriate, accommodate any adverse impacts on those rights.

Marginal note:Access to information by governments

• 19 (1) The Federal Minister and the Provincial Minister are entitled to access to any information or documentation relating to petroleum resource and renewable energy activities in the offshore area that is provided for the purposes of this Act or any regulation made under it and such information or documentation shall, on the request of either Minister, be disclosed to that Minister without requiring the consent of the party who provided the information or documentation.

Marginal note:Storage of information

• 21 (1) The Regulator shall have responsibility for the storage and curatorship, in a facility in the Province, of

  • (a) all petroleum-related geophysical and geological records and reports, reports respecting wells and materials recovered from wells in the offshore area and, without limiting the generality of the foregoing, drill cuttings, fluid samples, hydrocarbon samples and cores recovered from those wells; and

  • (b) all records and reports involving geophysical, geological or geotechnical data, data on physical environmental conditions, environmental effects monitoring data or renewable energy resource data — including data on wind, waves and currents — all environmental studies and all geological and geotechnical samples, to the extent that those records and reports, studies and samples relate to offshore renewable energy.

• Marginal note:Mobility of staff

  (4) For the purpose of being eligible for appointment to a position in the public service by an appointment process under the Public Service Employment Act,

  • (a) any person who, immediately prior to being employed by the Regulator, was employed in the public service shall be deemed to be a person employed in the public service in the Department of Natural Resources in the location where that person is performing duties for the Regulator and in a position of an occupational nature and at a level equivalent to the position in which that person is employed by the Regulator; and

  • (b) any person who, immediately prior to being employed by the Regulator, was not employed in the public service shall, two years after being employed by the Regulator, be deemed to be a person employed in the public service in the Department of Natural Resources in the location where that person is performing duties for the Regulator and in a position of an occupational nature and at a level equivalent to the position in which that person is employed by the Regulator.

• Marginal note:Payment of operating costs

  (4) Subject to subsection (4.1), the Government of Canada shall pay one-half of the aggregate of the expenditures set out in the budget or revised budget in respect of each fiscal year.

• Marginal note:Payment of specific activities

  (4.1) The Chief Executive Officer may include in the budget or revised budget expenditures associated with specific requirements of one government that are to be paid entirely by that government.

Petroleum-related Decisions

• (c) must be published without delay by the Canadian Energy Regulator.

Decisions Related to Offshore Renewable Energy

Marginal note:Regulator’s recommendation

• 38.1 (1) The Regulator shall notify the Federal Minister and the Provincial Minister in writing of its offshore renewable energy recommendation as soon as practicable after deciding to make the recommendation.

• Marginal note:Ministers’ decisions

  (2) The Federal Minister and the Provincial Minister shall, within 60 days after receiving the recommendation, notify the Regulator in writing of their respective decision to approve the recommendation, with or without variations, or to reject it.

• Marginal note:Additional 30 days

  (3) Despite subsection (2), on written notice by either Minister to the Regulator and the other Minister, both Ministers shall have an additional 30 days to notify the Regulator of their respective decision under that subsection.

• Marginal note:No time limit

  (4) Despite subsection (2), the Federal Minister or the Provincial Minister may notify the Regulator of their respective decision with respect to an offshore renewable energy recommendation to make a call for bids beyond the period of 60 days referred to in that subsection.

Marginal note:Publication

38.2 The Regulator shall publish in the Canada Gazette any notice of decision referred to in subsection 38.1(2), unless the decision is to reject an offshore renewable energy recommendation to make a call for bids.

Marginal note:Implementation of Ministers’ approval

38.3 The Regulator shall only exercise a power or perform a duty subject to this section and sections 38.1 and 38.2 if it has been the subject of an offshore renewable energy recommendation that was approved by both Ministers with the same variations, if any. In that case, the Regulator shall exercise the power or perform the duty as soon as practicable after it receives the notices referred to in subsection 38.1(2).

Marginal note:Public notice

• 42 (1) If the Federal Minister issues or jointly issues a directive under section 41, suspends the implementation of a fundamental decision under section 34, or sets aside or overrules the setting aside of a fundamental decision under section 35, the Minister shall cause a notice of the Minister’s action and, if applicable, of the fundamental decision in relation to which it is exercised, to be published in the Canada Gazette.

Marginal note:Public hearings

44.1 The Regulator may conduct a public hearing in relation to the exercise of any of its powers or the performance of any of its duties and functions under this Act.

• (a) there is a real and substantial risk that disclosure of the information will impair the security of pipelines, as defined in section 138, installations, facilities, vessels, aircraft or systems, including computer or communication systems, or methods employed to protect them; and

• Marginal note:Transboundary pool

  (8) The definitions in section 171 also apply in subsections (9) and (10).

• Marginal note:Approval subject to agreement

  (9) A Canada-Nova Scotia benefits plan submitted for approval in respect of a work or activity to be carried out in a transboundary pool that is the subject of a joint exploitation agreement is not to be approved under this section unless the Regulator and the appropriate authority have agreed on its content.

• Marginal note:Disagreement

  (10) The Regulator or the appropriate authority — or in respect of any transboundary pool extending into the jurisdiction of a foreign government, the Federal Minister, after having consulted the Minister of Foreign Affairs and the Provincial Minister — may, if they disagree about the content of the plan submitted for approval, refer the matter to an expert in accordance with section 188.16. The expert’s decision is deemed to be approval of the plan by the Regulator.

Marginal note:Notice

• 47 (1) Before a panel is constituted for the purposes of subsection 13(2), 25(3) or 37(1), the government or Minister proposing constitution of the panel shall notify the other government or Minister of the proposal.

Definition of agreement

• 48 (1) In this section, agreement means an agreement between the Government of Canada and the government of a province respecting resource management and revenue sharing in relation to activities respecting the exploration for or the production of petroleum, or respecting offshore renewable energy projects, carried out on any frontier lands.

Petroleum and Offshore Renewable Energy Resources

call for bids

call for bids means a call for bids made in accordance with

• (a) in the case of petroleum, section 61, and

• (b) in the case of offshore renewable energy, section 93; (appel d’offres)

Crown reserve area

Crown reserve area means

• (a) in relation to petroleum, portions of the offshore area in respect of which no petroleum-related interest is in force, and

• (b) in relation to offshore renewable energy, portions of the offshore area in respect of which no submerged land licence is in force respecting a particular renewable energy resource; (réserves de l’État)

interest

interest means

• (a) in relation to petroleum, any former exploration agreement, former lease, former permit, former special renewal permit, exploration licence, production licence or significant discovery licence, and

• (b) in relation to offshore renewable energy, any submerged land licence; (titre)

significant discovery

significant discovery means a discovery indicated by a well on a geological feature that

• (a) demonstrates, through any formation flow test approved by the Regulator, the existence of hydrocarbons in that feature, and

• (b) having regard to geological and engineering factors, suggests the existence of an accumulation of hydrocarbons that has potential for sustained production; (découverte importante)

Marginal note:Prohibitions — regulations

59.1 Subject to section 6, the Governor in Council may, for the purpose of the protection of the environment, make regulations prohibiting, in respect of any portion of the offshore area that is specified in those regulations and that is located in an area that is or, in the opinion of the Governor in Council, may be identified under an Act of Parliament or of the Legislature of the Province as an area for environmental or wildlife conservation or protection,

• (a) the commencement or continuation of

  • (i) any work or activity relating to the exploration or drilling for or the production, conservation, processing or transportation of petroleum, or

  • (ii) an offshore renewable energy project; or

• (b) the issuance of interests.

Marginal note:Negotiations for compensation

• 59.2 (1) The Federal Minister may enter into negotiations with an interest owner for a determination of any compensation that may be granted to the interest owner for the surrender of the interest in respect of all or any portion of the offshore area subject to the interest, if all or any portion of the offshore area in respect of which the surrender is negotiated is

  • (a) located in an area that is identified under an Act of Parliament as an area for environmental or wildlife conservation or protection; or

  • (b) subject to regulations made under section 59.1.

• Marginal note:Notice to Provincial Minister

  (2) The Federal Minister shall, not later than 60 days before entering into the negotiations, give written notice to the Provincial Minister of the Federal Minister’s intention to enter into negotiations with the interest owner within the period specified in the notice referred to in subsection (3).

• Marginal note:Notice to interest owner

  (3) The Federal Minister shall, not later than 30 days before entering into the negotiations, give written notice to the interest owner, and forward a copy of the notice to the Regulator, indicating the Federal Minister’s intention to enter into negotiations with the interest owner within the period specified in the notice.

• Marginal note:Power to cancel

  (4) The Federal Minister and the Provincial Minister may, by order, jointly cancel the interest in respect of all or any portion of the offshore area that is subject to the interest and that is located in an area that is or, in the opinion of the Governor in Council, may be identified under an Act of Parliament as an area for environmental or wildlife conservation or protection, if

  • (a) the interest owner did not enter into negotiations with the Federal Minister within the period specified in the notice given to the interest owner;

  • (b) in the opinion of the Federal Minister, the compensation to be granted to the interest owner for the surrender of the interest has not been determined during the negotiations within a reasonable time; or

  • (c) in the opinion of the Federal Minister, the negotiations have not resulted in the surrender of the interest by the interest owner within a reasonable time even though the compensation to be granted to the interest owner has been determined during the negotiations.

• Marginal note:Amount of compensation

  (5) The Federal Minister shall, in the order, specify the amount of the compensation to be granted to the interest owner under subsection 59.3(2) in respect of the cancellation of the interest.

• Marginal note:Crown reserve areas

  (6) The portion of the offshore area subject to the interest referred to in subsection (1) that has been surrendered or the interest referred to in subsection (4) that has been cancelled becomes a Crown reserve area.

• Marginal note:Return of deposit

  (7) If an interest referred to in subsection (1) is surrendered or if an interest referred to in subsection (4) is cancelled, the deposit balance with respect to the interest held by the person holding that deposit balance on behalf of the interest owner, calculated in accordance with the regulations, shall be returned to the interest owner, less any liability, either direct or by way of indemnity, owed by the interest owner to that person at the time of the surrender or cancellation.

Marginal note:Compensation — surrender

• 59.3 (1) If an interest owner surrenders an interest referred to in subsection 59.2(1), His Majesty in right of Canada may grant any compensation that is determined by negotiations with the Federal Minister for the surrender of the interest.

• Marginal note:Compensation — cancellation

  (2) If an interest is cancelled by an order made under subsection 59.2(4), His Majesty in right of Canada may grant an interest owner the compensation that is specified in the order. If the order cancels a petroleum-related interest, it is subject to section 127 in respect of the amount of that compensation, and, for the purposes of this subsection, any reference to the Regulator in that section is to be read as a reference to the Federal Minister.

• Marginal note:No compensation

  (3) A person shall not have any right to claim or receive any compensation, damages, indemnity or other form of relief from His Majesty in right of Canada or from any servant or agent of His Majesty in right of Canada for any acquired, vested, future or potential right or entitlement that is affected by a surrender of an interest referred to in subsection 59.2(1) or a cancellation of an interest referred to in subsection 59.2(4), other than compensation that may be granted to an interest owner under this section.

Marginal note:Negotiations for compensation

• 59.4 (1) The Provincial Minister may enter into negotiations with an interest owner for a determination of any compensation that may be granted to the interest owner for the surrender of the interest in respect of all or any portion of the offshore area subject to the interest, if all or any portion of the offshore area in respect of which the surrender is negotiated is

  • (a) located in an area that is identified under an Act of the Legislature of the Province as an area for environmental or wildlife conservation or protection; or

  • (b) subject to regulations made under section 59.1.

• Marginal note:Notice to Federal Minister

  (2) The Provincial Minister shall, not later than 60 days before entering into the negotiations, give written notice to the Federal Minister of the Provincial Minister’s intention to enter into negotiations with the interest owner within the period specified in the notice referred to in subsection (3).

• Marginal note:Notice to interest owner

  (3) The Provincial Minister shall, not later than 30 days before entering into the negotiations, give written notice to the interest owner, and forward a copy of the notice to the Regulator, indicating the Provincial Minister’s intent to enter into negotiations with the interest owner within the period specified in the notice.

• Marginal note:Power to cancel

  (4) The Provincial Minister and the Federal Minister may, by order, jointly cancel the interest in respect of all or any portion of the offshore area that is subject to the interest and that is located in an area that is or, in the opinion of the lieutenant governor in council of the Province, may be identified under an Act of the Legislature of the Province as an area for environmental or wildlife conservation or protection, if

  • (a) the interest owner did not enter into negotiations with the Provincial Minister within the period specified in the notice given to the interest owner;

  • (b) in the opinion of the Provincial Minister, the compensation to be granted to the interest owner for the surrender of the interest has not been determined during the negotiations within a reasonable time; or

  • (c) in the opinion of the Provincial Minister, the negotiations have not resulted in the surrender of the interest by the interest owner within a reasonable time even though the compensation to be granted to the interest owner has been determined during the negotiations.

• Marginal note:Amount of compensation

  (5) The Provincial Minister shall specify in the order the amount of the compensation to be granted to the interest owner under subsection 59.5(2) in respect of the cancellation of the interest.

• Marginal note:Crown reserve areas

  (6) The portion of the offshore area subject to the interest referred to in subsection (1) that has been surrendered or the interest referred to in subsection (4) that has been cancelled becomes a Crown reserve area.

• Marginal note:Return of deposit

  (7) If an interest referred to in subsection (1) is surrendered or if an interest referred to in subsection (4) is cancelled, the deposit balance with respect to the interest held by the person holding that deposit balance on behalf of the interest owner, calculated in accordance with the regulations, shall be returned to the interest owner, less any liability, either direct or by way of indemnity, owed by the interest owner to that person at the time of the surrender or cancellation.

Marginal note:Compensation — surrender

• 59.5 (1) If an interest owner surrenders an interest referred to in subsection 59.4(1), His Majesty in right of the Province may grant any compensation that is determined by negotiations with the Provincial Minister for the surrender of the interest.

• Marginal note:Compensation — cancellation

  (2) If an interest is cancelled by an order made under subsection 59.4(4), His Majesty in right of the Province may grant an interest owner the compensation that is specified in the order. If the order cancels a petroleum-related interest, it is subject to section 127 in respect of the amount of that compensation, and, for the purposes of this subsection, any reference to the Regulator in that section is to be read as a reference to the Provincial Minister.

• Marginal note:No compensation

  (3) A person shall not have any right to claim or receive any compensation, damages, indemnity or other form of relief from His Majesty in right of the Province or from any servant or agent of His Majesty in right of the Province for any acquired, vested, future or potential right or entitlement that is affected by a surrender of an interest referred to in subsection 59.4(1) or a cancellation of an interest referred to in subsection 59.4(4), other than compensation that may be granted to an interest owner under this section.

General Rules Relating to Issuance of Petroleum-Related Interests

Marginal note:Authority to issue petroleum-related interests

• 60 (1) The Regulator may issue petroleum-related interests in respect of any portion of the offshore area in accordance with this Part and the regulations.

• Marginal note:Fundamental decision

  (2) The issuance of a petroleum-related interest by the Regulator is subject to sections 32 to 37 unless the interest is issued under subsection 76(1) or paragraph 84(1)(a).

• Marginal note:Application of interest may be limited

  (3) Subject to subsection (4), the application of any petroleum-related interest may be restricted to geological formations and to substances specified in the interest.

• Marginal note:Exception

  (4) Subsection (3) does not apply to any petroleum-related interest

  • (a) that is in force or in respect of which negotiations were completed before or on the coming into force of this section in relation to any portion of the offshore area; or

  • (b) that immediately succeeds an interest referred to in paragraph (a) in relation to that portion of the offshore area if that portion was not a Crown reserve area on the expiration of the interest referred to in paragraph (a).

Marginal note:Issuance of interest not required

• 63 (1) The Regulator is not required to issue a petroleum-related interest as a result of a call for bids.

• Marginal note:New call required

  (2) Subject to section 64, if the Regulator has not issued a petroleum-related interest with respect to a particular portion of the offshore area specified in a call for bids within six months after the closing date specified in the call for bids, the Regulator shall, before issuing a petroleum-related interest in relation to that portion of the offshore area, make a new call for bids.

Marginal note:Exception to call for bids — petroleum

• 64 (1) Subject to sections 32 to 37, the Regulator may issue a petroleum-related interest, in relation to any Crown reserve area, without making a call for bids if

Marginal note:Failure to comply with call procedures

65 If a petroleum-related interest has been issued, it is not vitiated by reason only of a failure to comply with any of the requirements set out in sections 61 to 64 respecting the form and content of, and time and manner of publishing, any notice required by those sections in relation to that interest.

• Marginal note:Term of significant discovery licence

  (3) Subject to subsection 88(1), a significant discovery licence continues in force, in relation to each portion of the offshore area to which the licence applies, for a term of 25 years.

• Marginal note:Automatic extension of term

  (3.1) If the interest owner has made an application for a declaration of commercial discovery referred to in subsection 81(1) or for the issuance of a production licence referred to in subsection 84(1), the term of the significant discovery licence is extended until the Regulator makes a decision respecting that application.

• Marginal note:Cancelling automatic extension

  (3.2) The extension to the term of the significant discovery licence remains in force after the Regulator makes a declaration of commercial discovery, but the Regulator may cancel the extension if the interest owner fails to submit an application for the issuance of a production licence within a reasonable time.

• Marginal note:Exception

  (2) Despite subsection (1), the Regulator may, subject to such terms and conditions as the Regulator deems appropriate, authorize any interest holder of a petroleum-related interest or a share in such an interest to produce petroleum on the portions of the offshore area subject to the interest or share for use in the exploration or drilling for or development of petroleum on any portion of the offshore area.

DIVISION VOffshore Renewable Energy

General Rules Relating to Issuance of Submerged Land Licences

Marginal note:Regulator’s authority to issue licences

• 91 (1) The Regulator may issue submerged land licences in respect of any portion of the offshore area in accordance with this Part and the regulations.

• Marginal note:Ministerial decision

  (2) The issuance of a submerged land licence by the Regulator is subject to sections 38.1 to 38.3.

• Marginal note:Application of licence may be limited

  (3) The application of any submerged land licence may be restricted to particular technologies or types of offshore renewable energy resources specified in the licence.

• Marginal note:Licence not required

  (4) A submerged land licence is not required for the purpose of carrying on a work or activity described in paragraph (a) of the definition offshore renewable energy project in section 2 that does not require attaching a facility or structure to the seabed.

Marginal note:Rights under submerged land licences

92 A submerged land licence confers, with respect to the portions of the offshore area to which it applies and subject to the terms and conditions it specifies, the right to carry on an offshore renewable energy project.

Marginal note:Calls for bids

• 93 (1) Subject to section 97, the Regulator shall not issue a submerged land licence in relation to Crown reserve areas unless

  • (a) prior to issuing the licence, the Regulator has made a call for bids in relation to those Crown reserve areas by publishing a notice in accordance with this section and section 98.1; and

  • (b) the licence is issued to the person who submitted, in response to the call, a bid selected by the Regulator in accordance with subsection 94(1).

• Marginal note:Ministerial decision

  (2) The making of a call for bids for the issuance of a submerged land licence is subject to sections 38.1 to 38.3.

• Marginal note:Contents of call for bids

  (3) The call for bids shall specify

  • (a) the licence to be issued and the portions of the offshore area to which the licence is to apply;

  • (b) if applicable, the particular technologies or types of offshore renewable energy resources to which the licence is to apply;

  • (c) the other terms and conditions subject to which the licence is to be issued;

  • (d) any terms and conditions that a bid must satisfy to be considered by the Regulator;

  • (e) the form and manner in which a bid is to be submitted;

  • (f) the closing date for the submission of bids; and

  • (g) the criteria that the Regulator will apply in assessing bids submitted in response to the call.

Marginal note:Selection of bid

• 94 (1) A bid submitted in response to a call for bids shall not be selected unless

  • (a) the bid satisfies the terms and conditions and is submitted in the form and manner specified in the call; and

  • (b) the selection is made on the basis of the criteria specified in the call.

• Marginal note:Publication of bid selected

  (2) If the Regulator selects a bid submitted in response to a call for bids, the Regulator shall publish a notice in accordance with section 98.1 setting out the terms and conditions of that bid.

• Marginal note:Recommendation

  (3) The Regulator shall make an offshore renewable energy recommendation for or against the issuance of a submerged land licence under section 91 respecting all bids selected in accordance with subsection (1).

Marginal note:Issuance of licence not required

• 95 (1) The issuance of a submerged land licence is not required as a result of a call for bids.

• Marginal note:Licence to be consistent with bid

  (2) If a submerged land licence is to be issued as a result of a call for bids, the terms and conditions of the licence shall be substantially consistent with any terms and conditions specified in the call.

• Marginal note:Publication of terms and conditions

  (3) The Regulator shall publish a notice in accordance with section 98.1 setting out the terms and conditions of any submerged land licence issued as a result of a call for bids as soon as practicable after the licence’s issuance.

Marginal note:New call for bids required

96 Subject to section 97, if the Regulator has not issued a submerged land licence with respect to a particular portion of the offshore area specified in a call for bids within 12 months after the closing date specified in the call for bids, the Regulator shall, before issuing a submerged land licence in relation to that portion of the offshore area, make a new call for bids.

Marginal note:Exception to call for bids — offshore renewable energy

• 97 (1) Subject to sections 38.1 to 38.3, the Regulator may issue a submerged land licence, in relation to any Crown reserve area, without making a call for bids if

  • (a) the portion of the offshore area to which the licence is to apply has, through error or inadvertence, become a Crown reserve area and the interest owner who last held a submerged land licence in relation to that portion of the offshore area has, within one year after the time it became a Crown reserve area, requested the Regulator to issue a licence;

  • (b) the Regulator is issuing the licence to an interest owner in exchange for the surrender by the interest owner, at the request of the Regulator, of any other submerged land licence or share in any other such licence, in relation to all or any portion of the offshore area subject to that other licence; or

  • (c) the Federal Minister and the Provincial Minister have directed the Regulator to review an application for the issuance of a submerged land licence that will include the terms and conditions specified by the Ministers.

• Marginal note:Conditions

  (2) The terms and conditions referred to in paragraph (1)(c) shall specify that the purpose of the offshore renewable energy project to be carried out under the submerged land licence shall be restricted to any of the following:

  • (a) to conduct research or to demonstrate a technology, approach or method related to the production, transmission or storage of renewable energy;

  • (b) to conduct a site assessment activity;

  • (c) to transmit an energy product produced from a renewable resource;

  • (d) to provide energy for a petroleum-related work or activity; or

  • (e) any other purpose set out in regulations.

• Marginal note:Notice

  (3) If the Regulator proposes to issue a submerged land licence under subsection (1), the Regulator shall, not later than 120 days before issuing the licence, publish a notice in accordance with section 98.1 setting out the terms and conditions of the proposed licence.

Marginal note:Failure to comply with call procedures

98 If a submerged land licence has been issued, it is not vitiated by reason only of a failure to comply with any of the requirements set out in sections 93 to 97 respecting the form and content of, and time and manner of publishing, any notice required by those sections in relation to that licence.

Marginal note:Manner of publication of notices

98.1 Any notice required to be published by the Regulator under subsection 93(1), 94(2), 95(3), 97(3) or 98.4(2) shall be published in the Canada Gazette and in any other publication the Regulator deems appropriate and, despite those subsections, may contain only a summary of the information required to be published and a statement that the full text of the notice is available for inspection by any person on request made to the Regulator.

Marginal note:Regulations

98.2 Subject to section 6, the Governor in Council may, for the purposes of section 93, make regulations of general application in relation to the offshore area or any portion of the offshore area, or in respect of any particular call for bids, prescribing the terms, conditions and criteria to be specified in a call for bids and the manner in which bids are to be submitted and requiring those terms, conditions and criteria and manner to be specified in the call.

Terms and Conditions

Marginal note:Terms and conditions

• 98.3 (1) A submerged land licence shall contain any terms and conditions that may be set out in regulations and may contain any other terms and conditions, not inconsistent with this Part or the regulations, that may be agreed on by the Regulator, subject to sections 38.1 to 38.3, and the interest owner of the licence.

• Marginal note:Regulations

  (2) Subject to section 6, the Governor in Council may make regulations prescribing terms and conditions required to be included in submerged land licences issued in relation to the offshore area or any portion of the offshore area.

Marginal note:Amendment of licence

• 98.4 (1) Subject to sections 38.1 to 38.3, the Regulator and the interest owner of a submerged land licence may, by agreement, amend any provision of the licence in any manner not inconsistent with this Part or the regulations and may, subject to subsection (2), amend the licence to include any other portion of the offshore area.

• Marginal note:Exception

  (2) The Regulator shall not amend a submerged land licence to include any portion of the offshore area that, immediately prior to the inclusion, was a Crown reserve area unless the Regulator would be able to issue an interest to that interest owner in relation to that area under subsection 97(1) and a notice has been published in accordance with section 98.1 not later than 120 days before making the amendment, setting out the terms and conditions of the amendment.

• Marginal note:Consolidation of licences

  (3) Subject to sections 38.1 to 38.3, the Regulator may, on the application of the interest owners of two or more submerged land licences, consolidate those licences into a single submerged land licence, subject to any terms and conditions that may be agreed on by the Regulator and those interest owners.

Marginal note:Effective date of licence

• 98.5 (1) The effective date of a submerged land licence is the date specified in the licence.

• Marginal note:Crown reserve areas on expiry of licence

  (2) On the expiry of the submerged land licence, the portions of the offshore area to which the licence related become Crown reserve areas.

Marginal note:Qualification for submerged land licence

98.6 No submerged land licence or share in a submerged land licence may be held by any person other than a corporation incorporated in Canada.

Principles

Marginal note:Principles

98.7 The following principles apply in this Division:

• (a) all Canadian corporations and individuals resident in Canada shall have a full and fair opportunity to participate on a competitive basis, including in the course of employment, in the supply of goods and services used in any work or activity related to an offshore renewable energy project;

• (b) importance shall be given to the development of measures that aim to increase the participation of under-represented groups, including in the course of employment, in the supply of goods and services used in any such work or activity; and

• (c) during the submerged land licence issuance process, importance shall be given to the consideration of effects on fishing activities.

DIVISION VIRoyalties and Revenues

Reservation of Royalties and Revenues

• Marginal note:No Crown share

  (7) No provision of this Act or the Provincial Act or any regulation made under the Provincial Act shall apply so as to reserve to His Majesty a Crown share in any petroleum-related interest issued in respect of any portion of the offshore area.

Marginal note:Revenues reserved

• 99.1 (1) There is reserved to His Majesty in right of Canada, and each holder of a share in a submerged land licence is liable for and shall pay to His Majesty in right of Canada, in accordance with subsection (2), the revenues, interest and penalties that would be payable under the Provincial Act or any other Act of the Province and any regulations made under those Acts in respect of offshore renewable energy projects carried out on Nova Scotia lands, as defined in section 2 of the Provincial Act.

• Marginal note:Application of Nova Scotia legislation

  (2) Subject to this Act and the regulations, the Provincial Act and any other Act of the Province and any regulations made under those Acts apply, with any modifications that the circumstances require, for the purposes of this section.

• Marginal note:Remedies for unpaid revenues

  (3) Despite any other provision of this Act or the regulations, for the purposes of this section, if a person is in default under the Provincial Act or any other Act of the Province and any regulations made under those Acts in the payment of any amount payable under this section, the Provincial Minister may, as long as the amount remains unpaid, direct the Regulator to

  • (a) refuse to issue to that person any submerged land licence in relation to any portion of the offshore area;

  • (b) refuse to authorize, under Part III, that person to carry on any work or activity related to an offshore renewable energy project and suspend any such authorization already given; and

  • (c) exercise the powers under subsections 126(1) and (4).

• Marginal note:No remedy pending appeals

  (4) No remedy may be exercised under subsection (3) in respect of a default in payment of an amount pending any assessment, reassessment, appeal or review in respect of that default under the Provincial Act or any other Act of the Province or any regulations made under those Acts or otherwise provided by law.

• Marginal note:For greater certainty

  (5) For greater certainty, for the purposes of this Division, revenues, interest and penalties payable under subsection (1) do not include taxes, interest and penalties imposed, levied and collected under Part IV.

Marginal note:Remittance to Receiver General

• 101 (1) All royalties, interest and penalties payable under section 99 and all revenues, interest and penalties payable under section 99.1, including the proceeds of any royalty or revenues payable in kind, shall be made payable and remitted to the Receiver General.

• Marginal note:Consolidated Revenue Fund

  (2) On the collection or receipt by the Regulator under this section of any amounts payable, those amounts shall be deposited as soon as practicable to the credit of the Receiver General and paid into the Consolidated Revenue Fund in the manner prescribed by the Treasury Board under the Financial Administration Act.

Liability and Collection

Marginal note:Debts due to His Majesty

102 All royalties, interest and penalties payable under section 99 and all revenues, interest and penalties payable under section 99.1 are debts due to His Majesty in right of Canada and are recoverable from the person required to pay them in accordance with this Division.

• Marginal note:Appointment

  (3) Despite subsection 78(2) of the Canada Petroleum Resources Act, one of the members of the Environmental Studies Management Board established by subsection 78(1) of that Act is to be appointed by the Regulator on the recommendation of the Provincial Minister.

• Marginal note:Reports and recommendations to Regulator

  (4) The Environmental Studies Management Board referred to in subsection (3) shall submit to the Regulator, at the same time the report or recommendation referred to in paragraph (a) is submitted to the Federal Minister,

  • (a) a copy of every annual report and recommendation submitted to the Federal Minister under paragraph 79(1)(d) or (e) of the Canada Petroleum Resources Act, and

  • (b) a copy of that part of every budget submitted to the Federal Minister under paragraph 79(1)(c) of that Act that relates to the offshore area.

operator’s lien

operator’s lien means any charge on or right in relation to an interest or a share in an interest

• (a) that arises under a contract

  • (i) to which the interest owner or holder of the interest or share is a party,

  • (ii) that provides for the operator appointed under the contract to carry out any work or activity, in the portions of the offshore area to which the interest or share applies, related to the exploration for or the development or production of petroleum or to offshore renewable energy projects, and

  • (iii) that requires the interest owner or holder to make payments to the operator to cover all or part of the advances made by the operator in respect of the costs and expenses of such work or activity, and

• (b) that secures the payments referred to in subparagraph (a)(iii); (privilège de l’exploitant)

Marginal note:Notice of disposition of any interest

• 106 (1) If an interest holder of an interest or any share in an interest enters into an agreement or arrangement that is or may result in a transfer, assignment or other disposition of the interest or share, the interest holder shall give notice of such agreement or arrangement to the Regulator, together with a summary of its terms and conditions or, on the request of the Regulator, a copy of the agreement or arrangement.

• Marginal note:Conditions of transfer

  (2) A submerged land licence shall only be transferred, assigned or otherwise disposed of under subsection (1) if the Regulator is satisfied that the terms and conditions of the licence can be met following the transfer, assignment or other disposition.

• Marginal note:Default — petroleum

  (2) Despite anything in this Part but subject to sections 32 to 37 and subsection 126(3), if the interest owner or holder of a petroleum-related interest fails to comply with a notice under subsection (1) within the period specified in the notice and the Regulator considers that the failure to comply warrants cancellation of the interest of the interest owner or holder or of any share in the interest held by the holder with respect to a portion only of the offshore area subject to the interest, the Regulator may, by order subject to section 127, cancel that interest or share, in which case the portions of the offshore area under that interest or share become Crown reserve areas.

• Marginal note:Non-application of section 127

  (3) The Regulator’s order to cancel an exploration licence, significant discovery licence or production licence under subsection (2) is not subject to section 127 if the notice under subsection (1) relates to a failure to meet any of the terms and conditions contained in that licence.

• Marginal note:Default — offshore renewable energy

  (4) Despite anything in this Part but subject to sections 38.1 to 38.3, if the interest owner or holder of a submerged land licence fails to comply with a notice under subsection (1) within the period specified in the notice and the Regulator considers that the failure to comply warrants cancellation of the licence of the interest owner or holder or any share in the licence held by the holder, the Regulator may, by order, cancel that licence or share, in which case the portions of the offshore area under that licence or share become Crown reserve areas.

• Marginal note:Notification of order and reasons

  (8) If an order, decision or action referred to in subsection (2) is made or taken, the Regulator shall notify the person who requested a hearing in respect of the order, decision or action under subsection (3) and, on request by that person, publish or make available to that person the reasons for the order, decision or action.

Marginal note:Replacement of rights

• 131 (1) Subject to section 130 and subsection 132(2), the petroleum-related interests provided for under this Part replace all petroleum rights or prospects of petroleum rights acquired or vested in relation to any portion of the offshore area prior to the coming into force of this section.

Marginal note:Transitional

137.1 Despite subsection 78(3) and subject to subsection 88(1), if the interest holder of an exploration licence issued before 2017 applies for a declaration of significant discovery in relation to any portion of the offshore area to which that licence applies and if the significant discovery is indicated by the first well on a geological feature that demonstrates, by flow testing, the existence of hydrocarbons in that feature, any significant discovery licence issued for that significant discovery area continues in force, in relation to each portion of the offshore area to which the licence applies, for as long as the declaration of significant discovery on the basis of which the licence was issued remains in force in relation to that portion.

Petroleum and Offshore Renewable Energy Operations

Marginal note:Purpose

138.1 The purpose of this Part is to promote

• (a) safety, particularly by encouraging persons exploring for and exploiting petroleum or carrying on an offshore renewable energy project to maintain a prudent regime for achieving safety;

• (b) the protection of the environment;

• (b.1) accountability in accordance with the “polluter pays” principle; and

• (c) in respect of the exploration for and exploitation of petroleum, the conservation of petroleum resources and joint production arrangements.

Champ d’application

Marginal note:Application

139 This Part applies in respect of the exploration and drilling for and the production, conservation, processing and transportation of petroleum, and in respect of offshore renewable energy projects, in those portions of the offshore area not within the Province.

Marginal note:Prohibition

140.2 No person shall carry on any work or activity related to an offshore renewable energy project unless

• (a) that person is the holder of an authorization issued, before the commencement of operations, under subsection 142.011(1) for the work or activity; and

• (b) if it is required, that person is authorized or entitled to carry on business in the place where that person proposes to carry on the work or activity.

Marginal note:Delegation

141.1 The Regulator may delegate any of the Regulator’s powers under section 142, 142.011, 142.2, 142.3, 143.1, 143.2, 167.1, 168, 188.2 or 188.21 to any person, and the person shall exercise those powers in accordance with the terms of the delegation.

Petroleum Operating Licences and Authorizations

Marginal note:Definition of designated project

• 142.012 (1) For the purposes of this section and sections 142.013 to 142.017, designated project means a designated project, as defined in section 2 of the Impact Assessment Act, that is a work or activity referred to in section 140 or 140.2 of this Act.

• Marginal note:Impact assessment

  (2) If an application for an authorization under paragraph 142(1)(b) or subsection 142.011(1) or an application made under subsection 143(2) is in respect of a designated project, the Regulator may not make a determination respecting that application before

  • (a) the Impact Assessment Agency of Canada decides, under subsection 16(1) of the Impact Assessment Act, that an impact assessment of that project is not required; or

  • (b) the Minister of the Environment has issued a decision statement under section 65 of that Act.

• Marginal note:Designating a work or activity

  (3) If the Minister of the Environment considers designating, under section 9 of the Impact Assessment Act, a work or activity referred to in section 140 or 140.2 of this Act, the Chairperson of the Regulator shall provide the Minister with comments respecting this designation.

• Marginal note:Consultation with Ministers

  (4) Before providing the Minister of the Environment with comments, the Chairperson of the Regulator may consult with the Federal Minister and the Provincial Minister and, in that event, the Chairperson shall consult with both Ministers.

Marginal note:Access to information by Impact Assessment Agency

• 142.013 (1) The Regulator shall provide the Impact Assessment Agency of Canada, on request and within the period specified by the Agency under subsection 13(1) of the Impact Assessment Act, with any specialist or expert information or knowledge that the Regulator possesses.

• Marginal note:Engaging proponent

  (2) The Regulator shall, on the Agency’s request made under subsection 13(2) of the Impact Assessment Act, engage the proponent of a designated project in order to specify to the proponent the information, if any, that the Regulator may require in order to exercise its powers or perform its duties or functions with respect to that project.

• Marginal note:Comments for Agency — notice

  (3) The Chairperson of the Regulator shall provide the Agency with comments for any work or activity referred to in section 140 or 140.2 that is the subject of a notice posted under subsection 15(3) of the Impact Assessment Act in order to assist the Agency to decide whether an impact assessment of that work or activity is required.

• Marginal note:Consultation with Ministers

  (4) Before providing the Agency with comments, the Chairperson of the Regulator may consult with the Federal Minister and the Provincial Minister and, in that event, the Chairperson shall consult with both Ministers.

• Marginal note:Comments for Agency — time limits

  (5) If the Agency decides that an impact assessment of the designated project is required, the Chairperson of the Regulator shall provide the Agency with comments respecting the time limits referred to in subsections 28(2) and 37(1) of the Impact Assessment Act within which the impact assessment report shall be submitted to the Minister of the Environment and within which any recommendations shall be posted on the Internet site established by the Agency.

• Marginal note:Comments — time extension

  (6) The Chairperson of the Regulator shall provide the Minister of the Environment with comments respecting any extension to the time limits that is considered under subsection 28(6) or (7) or 37(3) or (4) of the Impact Assessment Act.

• Marginal note:Consultation with Ministers

  (7) Before providing the Minister of the Environment with comments, the Chairperson of the Regulator may consult with the Federal Minister and the Provincial Minister and, in that event, the Chairperson shall consult with both Ministers.

• Marginal note:Comments for Agency — information or studies

  (8) If the Agency decides that an impact assessment of the designated project is required, the Regulator shall provide the Agency with comments respecting

  • (a) the scope of the factors that the Agency takes into account in determining, under subsection 18(1.2) of the Impact Assessment Act, what information or which studies it considers necessary and that it may require from the proponent for the conduct of the impact assessment;

  • (b) the information or studies that the Regulator considers necessary for the conduct of the impact assessment or preparation of the impact assessment report, as the case may be, and that the Agency may require from the proponent under paragraph 18(1)(a), subsections 19(3) and 26(2) and section 38 of that Act; and

  • (c) whether the proponent has provided the Agency with all of the information or studies necessary for the conduct of the impact assessment or preparation of the impact assessment report.

Marginal note:Access to information by Agency or review panel

142.014 The Regulator shall provide the Impact Assessment Agency of Canada or a review panel, on request and within the period specified by the Agency or review panel under section 23 of the Impact Assessment Act, with any specialist or expert information or knowledge that the Regulator possesses.

Marginal note:Comments for Agency — conditions

142.015 If the Impact Assessment Agency of Canada or review panel is to make recommendations respecting a designated project to assist the Minister of the Environment in establishing conditions under section 64 of the Impact Assessment Act, including respecting mitigation measures, a follow-up program or an adaptive management plan, the Regulator shall provide the Agency or review panel, as the case may be, with comments respecting those conditions.

Marginal note:Federal authority’s obligation

142.016 Every federal authority, as defined in section 2 of the Impact Assessment Act, shall provide the Regulator, on request and within the period specified by the Regulator, with any specialist or expert information or knowledge that the authority possesses and that the Regulator may require in order to

• (a) decide whether to authorize a work or activity under subsection 142(1) or 142.011(1);

• (b) decide whether to approve a development plan under subsection 143(4) or any amendment to that plan under subsection 143(5); or

• (c) conduct a regional assessment under section 142.018 or a strategic assessment under section 142.019.

Marginal note:Access to information by authority

142.017 The Regulator shall provide an authority, as defined in section 81 of the Impact Assessment Act, on request and within the period specified by the authority under section 85 of that Act, with any specialist or expert information or knowledge that the Regulator possesses respecting a project, as defined in section 81 of that Act.

Regional Assessments and Strategic Assessments

Marginal note:Regional assessments

• 142.018 (1) The Regulator may conduct a regional assessment of the effects of any existing or future work or activity referred to in sections 140 and 140.2.

• Marginal note:Agreement between Ministers

  (2) The Federal Minister and the Provincial Minister may enter into an agreement with any jurisdiction authorized under any other federal or provincial legislation to conduct a regional assessment of the effects of any existing or future work or activity referred to in sections 140 and 140.2, including to specify the time limits and terms of that regional assessment.

Marginal note:Strategic assessments

• 142.019 (1) The Regulator may conduct a strategic assessment of any proposed or existing policy, plan or program respecting the offshore area or of any issue that is relevant to any existing or future work or activity referred to in sections 140 and 140.2.

• Marginal note:Agreement between Ministers

  (2) The Federal Minister and the Provincial Minister may enter into an agreement with any jurisdiction authorized under any other federal or provincial legislation to conduct a strategic assessment of any proposed or existing policy, plan or program respecting the offshore area or of any issue that is relevant to any existing or future work or activity referred to in sections 140 and 140.2, including to specify the time limits and terms of that strategic assessment.

Marginal note:Access to information by Agency or committee

142.02 The Regulator shall provide the Impact Assessment Agency of Canada or a committee, on request and within the period specified by the Agency or committee under section 100 of the Impact Assessment Act, with any specialist or expert information or knowledge that the Regulator possesses.

Marginal note:Comments for Minister of the Environment

142.021 If the Minister of the Environment shall, for the purposes of any regional assessment of the effects of any existing or future work or activity referred to in section 140 or 140.2 or for the purposes of any strategic assessment in the offshore area, establish the terms of reference and appoint members of a committee or establish the terms of reference of the Impact Assessment Agency of Canada under section 96 of the Impact Assessment Act, the Federal Minister, the Provincial Minister and the Chairperson of the Regulator shall provide the Minister of the Environment with comments respecting those terms of reference or appointments.

Participant Funding Program

Marginal note:Participant funding program

142.022 The Regulator may establish a participant funding program to facilitate the participation of the public and any Indigenous peoples of Canada in consultations concerning any matter respecting the offshore area.

Right of Entry

Marginal note:Safety — petroleum operations

• 142.2 (1) The Regulator shall, before issuing an authorization for a work or activity referred to in paragraph 142(1)(b), consider the safety of the work or activity by reviewing, in consultation with the Chief Safety Officer, the system as a whole and its components, including its structures, facilities, equipment, operating procedures and personnel.

• Marginal note:Safety — offshore renewable energy operations

  (2) The Regulator shall, before a work or activity referred to in subsection 142.011(1) commences, consider the safety of the work or activity by reviewing, in consultation with the Chief Safety Officer, the system as a whole and its components, including its structures, facilities, equipment, operating procedures and personnel.

Marginal note:Compliance — petroleum

• 142.3 (1) The Regulator shall, before issuing an authorization for a work or activity referred to in paragraph 142(1)(b), ensure that the applicant has complied with the requirements of subsections 167.1(1) or (2) and 168(1) or (1.01) in respect of that work or activity.

• Marginal note:Compliance — offshore renewable energy

  (2) The Regulator shall ensure that an applicant or holder of an authorization under subsection 142.011(1) has, prior to a date determined by regulations or, in the absence of regulations, prior to commencing a work or activity under that authorization, complied with the requirements of subsections 188.2(1) and 188.21(1) in respect of that work or activity.

• Marginal note:Transboundary pool

  (7) The definitions in section 171 also apply in subsections (8) to (12).

• Marginal note:Approval subject to agreement

  (8) Despite subsection (4), a development plan submitted for approval in respect of a work or activity to be carried out in a transboundary pool that is the subject of a joint exploitation agreement is not to be approved by the Regulator unless the appropriate authority has agreed to its content. The approval of Part I of that development plan is subject to sections 32 to 37 — or in respect of any transboundary pool that extends into the jurisdiction of a foreign government, to the consent of the Federal Minister in consultation with the Provincial Minister — and any requirements that the Regulator and appropriate authority have agreed are appropriate or that may be prescribed.

• Marginal note:Disagreement

  (9) In the case of a disagreement about the content of the plan submitted for approval, or any of the requirements for approval referred to in subsection (8), the Regulator or the appropriate authority — or in respect of any transboundary pool extending into the jurisdiction of a foreign government, the Federal Minister after having consulted the Minister of Foreign Affairs and the Provincial Minister — may refer the matter to an expert in accordance with section 188.16.

• Marginal note:Submissions regarding Part I

  (10) Any submissions to the expert by the Regulator regarding Part I of the development plan are subject to sections 32 to 37. In respect of any transboundary pool extending into the jurisdiction of a foreign government, the submissions are subject to the approval of the Federal Minister in consultation with the Provincial Minister.

• Marginal note:Expert’s decision

  (11) The expert’s decision is deemed to be approval of the plan by the Regulator and approval of Part I of that plan by the Federal Minister and the Provincial Minister, or in the case of any transboundary pool extending into the jurisdiction of a foreign government, by only the Federal Minister.

• Marginal note:Amendment to development plan

  (12) Subsections (7) to (11) apply, with any necessary modifications, to a proposed amendment to a development plan to which a work or activity in a transboundary pool relates or to any requirement to which the approval of the plan is subject.

Petroleum-related Certificates

Regulation of Operations — Petroleum

Marginal note:Inquiries

• 170 (1) If a spill or debris or an accident or incident related to any activity to which this Division applies occurs or is found in any portion of the offshore area and results in death or injury or danger to public safety or the environment, the Regulator may direct an inquiry to be made and may authorize any person it deems qualified to conduct the inquiry.

• Marginal note:Mandatory inquiry

  (1.1) If a spill or debris or an accident or incident related to any activity to which this Division applies occurs or is found in any portion of the offshore area and is serious, as defined by regulation, the Regulator shall direct that an inquiry referred to in subsection (1) be made and shall ensure that the person who conducts the inquiry is not employed by the Regulator.

Petroleum Production Arrangements

Definitions

Transboundary Pools

Determination and Delineation

Marginal note:Information

• 188.01 (1) If an exploratory well, as defined in subsection 122(1), is drilled in the perimeter, the Regulator shall provide the appropriate authority, in the prescribed time and manner, with any information in its possession, including any prescribed information, pertinent to its determination of whether a transboundary pool exists and the delineation of it.

• Marginal note:Information in advance

  (2) The Regulator shall provide the Federal Minister and the Provincial Minister with any information referred to in subsection (1) before providing it to the appropriate authority.

• Marginal note:Additional information

  (3) After providing any information referred to in subsection (1) in the prescribed time, the Regulator shall, on request, provide the appropriate authority with any additional information in its possession that is pertinent to its determination of the existence of a transboundary pool and the delineation of it.

Marginal note:Notice — pool

• 188.02 (1) If the data obtained from any drilling in the perimeter provides sufficient information for the Regulator to determine whether a pool exists, the Regulator shall notify the appropriate authority as soon as feasible of its determination.

• Marginal note:Notice — transboundary pool

  (2) If the Regulator determines that a pool exists, the Regulator shall also specify in the notice whether or not there is, in its opinion, reason to believe that the pool is transboundary.

• Marginal note:Reasons

  (3) The Regulator shall, before it notifies the appropriate authority under subsection (1), provide the Federal Minister and the Provincial Minister with the reasons for its determination and opinion, if any.

• Marginal note:Timeline

  (4) The notice shall be given no later than one year after the Regulator receives the data from three drillings of the same geological feature in the perimeter.

Marginal note:Information received by Regulator

• 188.03 (1) If the Regulator receives a notice from an authority indicating the authority’s determination as to whether a pool exists in an area adjoining the perimeter, and, if applicable, whether there is reason to believe the pool extends into the perimeter, the Regulator shall, within 90 days after receiving the notice, inform the authority of its agreement or disagreement with the determination or opinion set out in the notice.

• Marginal note:Reasons

  (2) If the Regulator disagrees with the content of the notice, it shall provide the authority with the reasons for its disagreement.

• Marginal note:Information in advance

  (3) The Regulator shall, before it informs the authority under subsection (1), provide the Federal Minister and the Provincial Minister of its agreement or disagreement and its reasons, if any.

Marginal note:Determination and delineation

• 188.04 (1) If, after receiving a notice under section 188.02 or 188.03, the Regulator and the authority in question agree that a pool exists, the Regulator and that authority shall jointly determine whether that pool is transboundary and, if so, they shall jointly delineate its boundaries.

• Marginal note:Disagreement

  (2) The Regulator or the authority — or in respect of any transboundary pool extending into the jurisdiction of a foreign government, the Federal Minister after consultations with the Minister of Foreign Affairs and the Provincial Minister — may, if they disagree about whether a pool exists, whether the pool is transboundary or its delineation, refer the matter to an expert and shall do so no later than 180 days after the day on which the Regulator issues a notice under subsection 188.02(1) or the authority issues an equivalent notice.

• Marginal note:Notification to Ministers

  (3) The Regulator shall, with respect to subsection (2), inform the Federal Minister and the Provincial Minister

  • (a) that the Regulator intends to refer the matter to an expert; or

  • (b) that the authority has referred the matter to an expert.

• Marginal note:Notification to the Provincial Minister

  (4) The Federal Minister shall, with respect to subsection (2) and any transboundary pool extending into the jurisdiction of a foreign government, inform the Provincial Minister that the foreign government has referred the matter to an expert.

Agreements Relating to Joint Exploitation

Marginal note:Single pool

• 188.05 (1) A transboundary pool is to be exploited as a single pool.

• Marginal note:Conditions for joint exploitation

  (2) The exploitation of a transboundary pool is subject to a joint exploitation agreement having been entered into and to a unit agreement and a unit operating agreement having been entered into and approved under subsection 188.08(4) or 188.12(4).

• Marginal note:Joint exploitation agreement prevails

  (3) The joint exploitation agreement prevails over the unit agreement and the unit operating agreement to the extent of any inconsistency between them.

Marginal note:Joint exploitation agreement

• 188.06 (1) Subject to subsection (2), the Regulator and the appropriate authority may enter into a joint exploitation agreement providing for the exploitation of a transboundary pool as a single pool. The agreement shall include any matters provided for by regulation.

• Marginal note:Advice to Ministers

  (2) In the case of any transboundary pool extending into the jurisdiction of a foreign government, the Regulator shall provide advice in respect of the exploitation of that transboundary pool to the Federal Minister and the Provincial Minister, who may enter into a joint exploitation agreement with the appropriate authority.

Marginal note:Intention to start production

• 188.07 (1) If an interest owner, as defined in section 49, advises the Regulator, including by way of an application under subsection 84(1) or paragraph 142(1)(b), that it intends to start production of petroleum from a transboundary pool, the Regulator shall notify the appropriate authority as soon as feasible of the interest owner’s intention.

• Marginal note:Notification of intention

  (2) The Regulator shall, before notifying the appropriate authority of the interest owner’s intention to start production of petroleum from the transboundary pool, notify the Federal Minister and the Provincial Minister of that intention.

• Marginal note:Referral to expert

  (3) The appropriate authority or the Regulator — or in respect of any transboundary pool extending into the jurisdiction of a foreign government, the Federal Minister after consultation with the Minister of Foreign Affairs and the Provincial Minister — may, if they have not yet entered into a joint exploitation agreement within a period of 180 days after the Regulator’s notice was given under subsection (1), refer the matter of determining the particulars of the agreement to an expert. However, they may agree to refer the matter to an expert any time before the period ends.

Marginal note:Unit agreement

• 188.08 (1) The royalty owners and the working interest owners in a transboundary pool may enter into a unit agreement and, once it is approved, shall operate their interests in accordance with it or any amendment to it.

• Marginal note:Unit operating agreement

  (2) The working interest owners in a transboundary pool may enter into a unit operating agreement and, once it is approved, shall operate their interests in accordance with it or any amendment to it.

• Marginal note:Content

  (3) The unit agreement shall include the details referred to in paragraphs 180(2)(a) to (d) and the unit operating agreement shall include the details referred to in paragraphs 180(3)(a) to (e).

• Marginal note:Approval

  (4) The Regulator and the appropriate authority may approve the unit agreement if all the royalty owners and all the working interest owners in the transboundary pool are parties to it; the Regulator and the appropriate authority may approve the unit operating agreement if all the working interest owners in the transboundary pool are parties to it.

• Marginal note:Condition precedent

  (5) An authorization under paragraph 142(1)(b) for a work or activity proposed to be carried on in relation to the exploitation of a transboundary pool shall not be issued if the unit agreement and the unit operating agreement have not been jointly approved by the Regulator and the appropriate authority.

• Marginal note:Applicable provisions

  (6) Subsections 177(2) and (3) apply to the unit agreement.

Marginal note:Order to enter into agreements

188.09 When a joint exploitation agreement is entered into in respect of a transboundary pool, the Regulator shall order the working interest owners in the portion of the pool that is in its jurisdiction to enter into a unit agreement and a unit operating agreement with any other working interest owner in the pool if they have not already done so.

Marginal note:Application for unitization order

• 188.1 (1) One or more working interest owners who are parties to a unit agreement and a unit operating agreement and own 65% or more of the working interests in a transboundary pool may apply for a unitization order with respect to the agreements.

• Marginal note:Content and submission of application

  (2) The application shall be submitted to both the Regulator and the appropriate authority. It shall include the documents and statements referred to in subsection 180(1) and may be made by the unit operator or proposed unit operator on behalf of the working interest owners.

• Marginal note:Appointment of expert

  (3) The Regulator and the appropriate authority shall, for the purposes of section 188.11, appoint an expert in accordance with subsections 188.16(2) to (4).

• Marginal note:Appointment of expert

  (4) In respect of any transboundary pool extending into the jurisdiction of a foreign government, the Federal Minister shall, after consultation with the Provincial Minister, agree with the appropriate authority on the appointment of an expert in accordance with subsection 188.16(9).

Marginal note:Hearing

• 188.11 (1) Once seized of the application under section 188.1, the expert shall hold a hearing at which all interested persons shall be given an opportunity to be heard.

• Marginal note:Conclusion of hearing

  (2) On the conclusion of the hearing, the expert shall request that the Regulator and appropriate authority

  • (a) order that the unit agreement be a valid contract enuring to the benefit of all the royalty owners and working interest owners who have an interest in the unit area and binding on and enforceable against those owners, and that the unit operating agreement be a valid contract enuring to the benefit of all the working interest owners who have an interest in the unit area and binding on and enforceable against those owners; and

  • (b) include in the order any variations to the unit agreement or unit operating agreement determined necessary by the expert to allow for the more efficient or more economical production of petroleum from the unitized zone.

• Marginal note:Exception

  (3) Despite subsection (2), the expert shall end the hearing and request that the Regulator and the appropriate authority take the measures referred to in paragraph (2)(a) if the expert finds that

  • (a) on the day the hearing begins,

    • (i) the unit agreement and the unit operating agreement have been executed by one or more working interest owners who own 65% or more of the working interests in the unit area, and

    • (ii) the unit agreement has been executed by one or more royalty owners who own 65% or more of the royalty interests in the unit area; and

  • (b) the unitization order applied for would allow for the more efficient or more economical production of petroleum from the unitized zone.

• Marginal note:Measures

  (4) In respect of any transboundary pool extending into the jurisdiction of a foreign government, the interested persons referred to in subsection (1) are representatives of each country in question and, on the conclusion of the hearing, the expert shall request that the interested persons ensure that the Regulator and the appropriate authority take the measures referred to in subsection (2) or (3).

Marginal note:Unitization order

• 188.12 (1) The Regulator shall issue a unitization order in accordance with the expert’s request made under subsections 188.11(2) to (4).

• Marginal note:Effect of unitization order

  (2) The unit agreement and the unit operating agreement have the effect given to them by the unitization order.

• Marginal note:Equivalent order

  (3) A unitization order becomes effective only if the appropriate authority has issued an equivalent order.

• Marginal note:Joint approval

  (4) The issuance of a unitization order by the Regulator and of an equivalent order by the appropriate authority is deemed to be their joint approval of the unit agreement and the unit operating agreement.

• Marginal note:Effective date of unitization order

  (5) Subject to subsections (3) and (6), a unitization order becomes effective on the date established in the order, but that date shall not be less than 30 days after the day on which the order is made.

• Marginal note:Order revoked

  (6) The Regulator shall immediately revoke a unitization order varying a unit agreement or a unit operating agreement if, before the effective date of that order, the party who applied for a unitization order under subsection 188.1(1) files with the Regulator a notice withdrawing the application on behalf of the working interest owners or there are filed with the Regulator statements objecting to the order and signed

  • (a) in the case of the unit agreement, by

    • (i) one or more working interest owners who own in total more than 25% of the working interests in the unit area and are part of the group that owns 65% or more of the working interests as described in subparagraph 188.11(3)(a)(i), and

    • (ii) one or more royalty owners who own in total more than 25% of the working interest in the unit area and are part of the group that owns 65% or more of the royalty interests as described in subparagraph 188.11(3)(a)(ii); or

  • (b) in the case of the unit operating agreement, by one or more working interest owners who own in total more than 25% of the working interests in the unit area and are part of the group that owns 65% or more of the working interests as described in subparagraph 188.11(3)(a)(i).

• Marginal note:Technical defects in unitization order

  (7) A unitization order is not invalid by reason only of the absence of notice or of any irregularities in giving notice to any owner in respect of the application for the order or any proceedings leading to the making of the order.

• Marginal note:Production prohibited except in accord with unitization order

  (8) After the date on which a unitization order comes into effect and while the order remains in force, no person shall carry on any operations within the unit area for the purpose of drilling for or producing petroleum from the unitized zone, except in accordance with the provisions of the unit agreement and the unit operating agreement.

• Marginal note:Not statutory instruments

  (9) The unitization order is not a statutory instrument for the purposes of the Statutory Instruments Act.

Marginal note:Amending unitization order

• 188.13 (1) A unitization order may be amended on the application of a working interest owner submitted to both the Regulator and the appropriate authority.

• Marginal note:Appointment of expert

  (2) The Regulator and the appropriate authority shall, for the purposes of this section, appoint an expert in accordance with subsections 188.16(2) to (4). In the case of any transboundary pool extending into the jurisdiction of a foreign government, the Federal Minister, after consultation with the Provincial Minister, shall agree with the appropriate authority on the appointment of an expert in accordance with subsection 188.16(9).

• Marginal note:Hearing

  (3) Once seized of the application, the expert shall hold a hearing at which all interested persons shall be given an opportunity to be heard.

• Marginal note:Conclusion of hearing

  (4) On the conclusion of the hearing, the expert may request that the Regulator amend the unitization order in accordance with the proposed amendment and include in the order any variations to it determined necessary by the expert to allow for the more efficient or more economical production of petroleum from the unitized zone. If the expert makes such a request, the expert shall also request that the appropriate authority amend its equivalent order in the same way.

• Marginal note:Exception — short hearing

  (5) If the expert finds that, on the day on which the hearing begins, one or more working interest owners who own 65% or more of the working interests and one or more royalty owners who own 65% or more of the royalty interests in the unit area have consented to the proposed amendment, the expert may end the hearing and request that the Regulator amend the unitization order in accordance with the amendment. If the expert makes such a request, the expert shall also request that the appropriate authority amend its equivalent order in the same way.

• Marginal note:Transboundary pools

  (6) In respect of any transboundary pool extending into the jurisdiction of a foreign government, the interested persons referred to in subsection (3) are representatives of each country in question and, on the conclusion of the hearing, the expert shall request that the interested persons ensure that the Regulator and the appropriate authority take the measures referred to in subsections (4) and (5).

Marginal note:Tract participation ratios

188.14 No amendment shall be made under section 188.13 that will alter the ratios between the tract participations of those tracts that were qualified for inclusion in the unit area before the commencement of the hearing, and, for the purposes of this section, the tract participations shall be those indicated in the unit agreement when it became subject to a unitization order.

Marginal note:Determination — percentages of interests

188.15 The percentages of interests referred to in subsections 188.1(1), 188.11(3), 188.12(6) and 188.13(5) shall be determined in accordance with section 187.

Referral to Expert

Marginal note:Notice

• 188.16 (1) The party that intends to refer a matter to an expert under subsections 45(10), 143(9), 188.04(2) and 188.07(3) shall notify the other party of their intention.

• Marginal note:Appointment — single expert

  (2) Within 30 days after notice is given under subsection (1), or of the application made under subsection 188.1(1) or 188.13(1), the parties shall agree on the appointment of an expert who shall be seized of the matter.

• Marginal note:Appointment — expert panel

  (3) If the parties do not agree on the appointment of a single expert, they shall, within 30 days after the day on which the period to jointly appoint an expert under subsection (2) ends, each appoint one member to an expert panel and those experts shall, in turn, jointly appoint an additional expert as chairperson. If the members fail to agree on the appointment of a chairperson within a period of 30 days after the day of the last appointment, the chairperson shall be appointed by the Chief Justice of the Federal Court within 30 days after the end of that period. Once the chairperson is appointed, the expert panel shall be seized of the matter.

• Marginal note:Conditions for appointment of expert

  (4) An expert shall be impartial and independent and have knowledge or experience relative to the subject of disagreement between the parties.

• Marginal note:Decisions

  (5) In the case of an expert panel, decisions shall be made on the basis of a majority vote of the members. The chairperson’s vote is the deciding vote in the case of a tie.

• Marginal note:Time limit

  (6) The expert’s decisions shall be made no later than 270 days after the day on which they were seized of the matter.

• Marginal note:Decision is final and binding

  (7) Subject to judicial review, a decision made by an expert is final and binding on all parties specified in the decision from the date specified in it.

• Marginal note:Records to be kept

  (8) An expert shall cause records to be kept of their hearings and proceedings and shall deposit their records with the Regulator when their activities to which the records relate have ceased.

• Marginal note:Expert — international treaty

  (9) In the case of a transboundary pool extending into the jurisdiction of a foreign government, the appointment of an expert and the making of decisions by them are to be made in accordance with any applicable international treaty respecting the exploration and exploitation of transboundary pools, as amended from time to time.

• Marginal note:Costs

  (10) In the circumstances described in subsection (9), Canada and the foreign government shall share equally both the expert’s fees and costs and the costs of the expert’s proceedings. With respect to the portion of those costs and fees to be paid by Canada, the governments of Canada and of the Province are to share the expert’s fees and costs equally and, unless otherwise agreed, the costs of the proceedings are also to be shared equally.

• Marginal note:Expert’s powers

  (11) An expert has the powers necessary to carry out their functions under this Act.

DIVISION II.1Regulation of Operations — Offshore Renewable Energy

Debris

Marginal note:Definition of debris

• 188.17 (1) In sections 188.18 to 188.2 and 188.23, debris means

  • (a) any facility or structure that was put in place in the course of any work or activity required to be authorized under subsection 142.011(1), other than a site assessment activity, and that has been abandoned without an authorization that may be required by or under this Part, or that has been abandoned in a way that did not comply with such an authorization; or

  • (b) any material that has broken away or been jettisoned or displaced in the course of any of that work or activity or from an abandoned facility.

• Marginal note:Definition of actual loss or damage

  (2) In section 188.19, actual loss or damage includes loss of income, including future income, and, with respect to any Indigenous peoples of Canada, loss of hunting, fishing and gathering opportunities. It does not include loss of income recoverable under subsection 42(3) of the Fisheries Act.

Marginal note:Debris prohibited

• 188.18 (1) No person shall cause or permit debris to be left in any portion of the offshore area.

• Marginal note:Duty to report debris

  (2) If there is debris in any portion of the offshore area, any person carrying on any work or activity required to be authorized under subsection 142.011(1) in the area in which the debris is left shall, in the manner prescribed, report the debris to the Chief Conservation Officer.

• Marginal note:Duty to take reasonable measures

  (3) Every person required to report debris under subsection (2) shall, as soon as feasible, take all reasonable measures consistent with safety and the protection of health and the environment to prevent any further debris from accumulating, to repair or remedy any condition resulting from the debris and to reduce or mitigate any damage or danger that results or may reasonably be expected to result from the debris.

• Marginal note:Taking emergency action

  (4) The Chief Conservation Officer may take any action that is necessary, or direct that it be taken by any person, if the Chief Conservation Officer is satisfied on reasonable grounds that

  • (a) there is debris in any portion of the offshore area and immediate action is necessary in order to effect any reasonable measures referred to in subsection (3); and

  • (b) the action is not being taken or will not be taken under subsection (3).

• Marginal note:Taking over management

  (5) For the purposes of subsection (4), the Chief Conservation Officer may authorize and direct any person whose services are necessary to enter the area where the debris has been left and take over the management and control of any work or activity being carried on in that area.

• Marginal note:Managing work or activity

  (6) A person authorized and directed to take over the management and control of any work or activity under subsection (5) shall manage and control that work or activity and take all reasonable measures referred to in subsection (3) in relation to the debris.

• Marginal note:Costs

  (7) Any costs incurred under subsection (6) shall be borne by the person who obtained an authorization under subsection 142.011(1) in respect of the work or activity from which the debris originated and, until paid, constitute a debt recoverable by action in any court of competent jurisdiction as a debt due to the Regulator.

• Marginal note:Recovery of costs

  (8) If a person, other than a person referred to in subsection (7), takes a measure or an action under subsection (3) or (4), the person may recover from His Majesty in right of Canada the costs and expenses reasonably incurred by that person in taking the measure or action.

• Marginal note:Personal liability

  (9) No person required, directed or authorized to act under this section is personally liable either civilly or criminally in respect of any act or omission in the course of complying with this section unless it is shown that the person did not act reasonably in the circumstances.

Marginal note:Recovery of loss, damage, costs or expenses

• 188.19 (1) If, as a result of debris or as a result of any action or measure taken in relation to debris, there is a loss of non-use value relating to a public resource or any person incurs actual loss or damage or if His Majesty in right of Canada or the Province reasonably incurs any costs or expenses in taking any action or measure in relation to debris,

  • (a) all persons to whose fault or negligence the debris is attributable or who are by law responsible for others to whose fault or negligence the debris is attributable are jointly and severally liable, to the extent determined according to the degree of the fault or negligence proved against them, for that loss, actual loss or damage, and for those costs and expenses;

  • (b) the person who is required to obtain an authorization under subsection 142.011(1) in respect of the work or activity from which the debris originated is liable, without proof of fault or negligence, up to the applicable limit of liability established under this section, for that loss, actual loss or damage, and for those costs and expenses; and

  • (c) the person who carried out a work or activity for which an authorization under subsection 142.011(1) was required in a facility that is now an abandoned facility from which the debris originated is liable, without proof of fault or negligence, up to the applicable limit of liability established under this section, for that loss, actual loss or damage, and for those costs and expenses.

• Marginal note:Vicarious liability for contractors

  (2) A person who is required to obtain an authorization under subsection 142.011(1) and who retains, to carry on a work or activity in respect of which the authorization is required, the services of a contractor to whom paragraph (1)(a) applies is jointly and severally liable with that contractor for any actual loss or damage, costs and expenses and loss of non-use value described in subsection (1).

• Marginal note:Limit of liability

  (3) For the purposes of paragraphs (1)(b) and (c), the limit of liability is $1 billion.

• Marginal note:Lesser amount — Federal Minister’s order

  (4) Despite subsection (3), the Federal Minister may, by order, on the Regulator’s recommendation and with the Provincial Minister’s approval, establish a limit of liability that is lower than the limit referred to in that subsection in respect of persons carrying out a work or activity relating to offshore renewable energy projects that is specified in the order or of persons who carried out that work or activity in a facility that is now an abandoned facility.

• Marginal note:Lesser amount — Regulator

  (5) Despite subsections (3) and (4), the Regulator may, in the absence of regulations, establish a lower limit of liability for the purposes of paragraph (1)(c).

• Marginal note:Limits of liability — regulations

  (6) Subject to section 6, the Governor in Council may, by regulation,

  • (a) establish a limit of liability that is higher than the limit referred to in subsection (3);

  • (b) establish a limit of liability that is lower than the limit referred to in subsection (3) for the purposes of paragraph (1)(c); and

  • (c) limit the amount of time during which a person referred to in paragraph (1)(c) may be held liable under that paragraph.

• Marginal note:Liability under another law — paragraph (1)(b) or (c)

  (7) If a person is liable under paragraph (1)(b) or (c) with respect to an occurrence and the person is also liable under any other Act, without proof of fault or negligence, for the same occurrence, the person is liable up to the greater of the applicable limit of liability that is set out in subsection (3) and the limit up to which the person is liable under the other Act. If the other Act does not set out a limit of liability, the limit set out in subsection (3) does not apply.

• Marginal note:Costs and expenses not recoverable under Fisheries Act

  (8) The costs and expenses that are recoverable by His Majesty in right of Canada or the Province under this section are not recoverable under subsection 42(1) of the Fisheries Act.

• Marginal note:Action — loss of non-use value

  (9) Only His Majesty in right of Canada or the Province may bring an action to recover a loss of non-use value described in subsection (1).

• Marginal note:Claims

  (10) All claims under this section may be sued for and recovered in any court of competent jurisdiction in Canada. Claims in favour of persons incurring actual loss or damage described in subsection (1) are to be distributed pro rata and rank in priority over claims for costs and expenses described in that subsection, and the claims for costs and expenses rank in priority over claims to recover a loss of non-use value described in that subsection.

• Marginal note:Saving

  (11) Subject to subsections (8) and (9), nothing in this section suspends or limits

  • (a) any legal liability or remedy for an act or omission by reason only that the act or omission is an offence under this Act or gives rise to liability under this section;

  • (b) any recourse, indemnity or relief available at law to a person who is liable under this section against any other person; or

  • (c) the operation of any applicable law or rule of law that is not inconsistent with this section.

• Marginal note:Limitation period

  (12) Proceedings in respect of claims under this section may be instituted no later than the third anniversary of the day on which the loss, damage, costs or expenses occurred but in no case after the sixth anniversary of the day on which the facility, equipment or system in question was abandoned or the material in question broke away or was jettisoned or displaced.

Marginal note:Financial resources

• 188.2 (1) An applicant for an authorization under subsection 142.011(1) shall provide proof that they have the financial resources necessary to pay an amount that is determined by the Regulator. The proof shall be in the form and manner that are prescribed or, in the absence of regulations, that are specified by the Regulator.

• Marginal note:Loss of non-use value

  (2) In determining the amount, the Regulator is not required to consider any potential loss of non-use value relating to a public resource that is affected as a result of debris.

• Marginal note:Continuing obligation

  (3) The holder of the authorization shall ensure that the proof referred to in subsection (1) remains in force for the duration of the work or activity in respect of which the authorization is issued.

Marginal note:Proof of financial responsibility

• 188.21 (1) An applicant for an authorization under subsection 142.011(1) shall provide proof of financial responsibility in an amount that is determined by the Regulator. The proof shall be in the form of a letter of credit, guarantee or indemnity bond or in any other form satisfactory to the Regulator.

• Marginal note:Continuing obligation

  (2) The holder of the authorization shall ensure that the proof of financial responsibility remains in force for the duration of the work or activity in respect of which the authorization is issued.

• Marginal note:Payment of claims

  (3) The Regulator may require that moneys in an amount of not more than the amount prescribed for any case or class of cases, or fixed by the Regulator in the absence of regulations, be paid out of the funds available under the letter of credit, guarantee or indemnity bond or other proof provided under subsection (1) in respect of any claim for which proceedings may be instituted under section 188.19, whether or not those proceedings have been instituted.

• Marginal note:Manner of payment

  (4) A required payment shall be made in the manner, subject to any conditions and procedures, and to or for the benefit of the persons or classes of persons that may be prescribed for any case or class of cases, or that may be required by the Regulator in the absence of regulations.

• Marginal note:Deduction

  (5) If a claim is sued for under section 188.19, there shall be deducted from any award made as a result of the action on that claim any amount received by the claimant under this section in respect of the loss, damage, costs or expenses claimed.

Marginal note:Review committee

• 188.22 (1) A committee, consisting of members appointed by each government and by representatives of the offshore renewable energy industry and of the fisheries industry, is established by the joint operation of this Act and the Provincial Act to review and monitor the application of sections 188.19 and 188.21 and any claims and the payment of claims made under those sections.

• Marginal note:Dissolution

  (2) The committee may be dissolved only by the joint operation of an Act of Parliament and an Act of the Legislature of the Province.

• Marginal note:Promotion of compensation policies

  (3) The Regulator shall promote and monitor compensation policies for fishers sponsored by the fishing industry respecting damages of a non-attributable nature.

Inquiries

Marginal note:Inquiries

• 188.23 (1) If debris or an accident or incident related to any work or activity to which this Division applies occurs or is found in any portion of the offshore area and results in death or injury or danger to public safety or the environment, the Regulator may direct an inquiry to be made and may authorize any person it deems qualified to conduct the inquiry.

• Marginal note:Mandatory inquiry

  (2) If debris or an accident or incident related to any work or activity to which this Division applies occurs or is found in any portion of the offshore area and is “serious”, as defined by regulation in accordance with paragraph 188.25(1)(a), the Regulator shall direct that an inquiry referred to in subsection (1) be made and shall ensure that the person who conducts the inquiry is not employed by the Regulator.

• Marginal note:Power of person conducting inquiry

  (3) For the purposes of an inquiry under subsection (1), a person authorized by the Regulator under that subsection has and may exercise all the powers of a person appointed as a commissioner under Part I of the Inquiries Act.

• Marginal note:Report

  (4) As soon as feasible after the conclusion of an inquiry under subsection (1), the person or persons authorized to conduct the inquiry shall submit a report to the Regulator, together with the evidence and other material that was before the inquiry.

• Marginal note:Publication

  (5) The Regulator shall publish the report within 30 days after the Regulator receives it.

• Marginal note:Copies of report

  (6) The Regulator may supply copies of a report published under subsection (5) in any manner and on any terms that the Regulator considers appropriate.

General Duty

Marginal note:Reasonable care

188.24 The holder of an authorization issued under subsection 142.011(1) shall take all reasonable care to ensure the safety of persons and facilities and the protection of property and the environment.

Regulations

Marginal note:Regulations

• 188.25 (1) Subject to section 6, the Governor in Council may, for the purposes of safety, the protection of the environment and accountability, make regulations

  • (a) defining, in relation to offshore renewable energy projects, “facility” and “equipment” for the purposes of section 143.1 and “serious” for the purpose of section 188.23;

  • (b) respecting works and activities related to offshore renewable energy projects;

  • (c) authorizing the Regulator, or any person, to make any orders that are specified in the regulations and to exercise any powers and perform any duties that are necessary for the design, construction, operation or abandonment of an offshore renewable energy project within the offshore area;

  • (d) respecting arbitrations relating to offshore renewable energy projects for the purposes of subsection 142.1(2), including the costs of or incurred in relation to such arbitrations;

  • (e) respecting the approvals to be granted as terms and conditions of authorizations issued under subsection 142.011(1);

  • (f) prohibiting, in relation to offshore renewable energy projects, the introduction into the environment of substances, classes of substances and forms of energy, in prescribed circumstances;

  • (g) respecting the creation, conservation and production of records relating to offshore renewable energy projects; and

  • (h) prescribing, in relation to offshore renewable energy projects, anything that is required to be prescribed for the purposes of this Part.

• Marginal note:Incorporation by reference

  (2) Unless otherwise provided in this Part, a regulation made under subsection (1) may incorporate by reference any document, regardless of its source, either as it exists on a particular date or as it is amended from time to time.

Marginal note:Equivalent standards and exemptions

• 188.26 (1) Subject to subsection (2), the Chief Safety Officer and Chief Conservation Officer may

  • (a) authorize the use of equipment, methods, measures or standards in lieu of any required by any regulation made under section 188.25 if those Officers are satisfied that the use of that other equipment or those other methods, measures or standards would provide a level of safety and protection of the environment equivalent to that provided by compliance with the regulations; or

  • (b) grant an exemption from any requirement imposed by any regulation made under section 188.25 in respect of equipment, methods, measures or standards if those Officers are satisfied with the level of safety and protection of the environment that will be achieved without compliance with that requirement.

• Marginal note:One-officer authorizations

  (2) The Chief Safety Officer alone may exercise the powers referred to in paragraph (1)(a) or (b) if the regulatory requirement referred to in that paragraph does not relate to protection of the environment, and the Chief Conservation Officer alone may exercise those powers if the regulatory requirement does not relate to safety.

• Marginal note:No contravention

  (3) No person contravenes the regulations if that person acts in compliance with an authorization or exemption under subsection (1) or (2).

Marginal note:Guidelines and interpretation notes

• 188.27 (1) The Regulator may issue and publish, in any manner the Regulator considers appropriate, guidelines and interpretation notes with respect to the application and administration of section 142.011, any regulations respecting offshore renewable energy projects made under sections 30.1 and 188.25 and any regulations made under section 188.29 and subsection 188.3(3).

• Marginal note:Deemed not to be statutory instruments

  (2) Guidelines and interpretation notes issued under subsection (1) are deemed not to be statutory instruments for the purposes of the Statutory Instruments Act.

DIVISION II.2Safety and Protection of Persons, Property and the Environment

Marginal note:Orders

• 188.28 (1) The Regulator may, by order, direct any of the following persons or bodies to take measures in respect of an abandoned facility that the Regulator considers necessary for the safety of persons or the abandoned facility or for the protection of property or the environment:

  • (a) the holder of an authorization under paragraph 142(1)(b) or subsection 142.011(1) or any other person;

  • (b) a provincial government or a provincial Crown corporation; and

  • (c) a local authority.

• Marginal note:Measures to be taken

  (2) If a person or body does not comply with an order under subsection (1), the Regulator may

  • (a) take any action or measure the Regulator considers necessary;

  • (b) authorize an officer or employee, or class of officers or employees, of the Regulator to take the action or measure; or

  • (c) authorize a third party to take the action or measure.

• Marginal note:Orders deemed not to be statutory instruments

  (3) Orders made under subsection (1) shall be deemed not to be statutory instruments for the purposes of the Statutory Instruments Act.

Marginal note:Regulations

188.29 Subject to section 6, the Governor in Council may make regulations respecting abandoned facilities, including with respect to liability and to the proof of financial responsibility or financial resources to be provided by an applicant or holder of an authorization under subsection 142.011(1).

Marginal note:Abandoned facilities

• 188.3 (1) A person shall not make contact with, alter or remove an abandoned facility unless they are authorized to do so in an order made under subsection (2) or by regulations.

• Marginal note:Order

  (2) The Chief Safety Officer may make an order, subject to any conditions that that Officer considers appropriate, authorizing a person to make contact with, alter or remove an abandoned facility.

• Marginal note:Regulations

  (3) Subject to section 6, the Governor in Council may make regulations respecting the circumstances in which or conditions under which an order under subsection (2) is not necessary.

Marginal note:Serious bodily injury

• 198 (1) If an operational safety officer or the Chief Safety Officer, on reasonable grounds, is of the opinion that continuation of an operation in relation to the exploration or drilling for or the production, conservation, processing or transportation of petroleum or in relation to an offshore renewable energy project in any portion of the offshore area is likely to result in serious bodily injury, the operational safety officer or Chief Safety Officer, as the case may be, may order that the operation cease or be continued only in accordance with the terms of the order.

Installation or Facility Manager

Marginal note:Facility manager

• 198.3 (1) Every holder of an authorization under subsection 142.011(1) with respect to a work or activity for which a prescribed facility is to be used shall put in command of the facility a manager who meets any prescribed qualifications, and the facility manager is responsible for the safety of the facility and the persons at it.

• Marginal note:Powers

  (2) Subject to this Act and any other Act of Parliament, a facility manager has the power to do anything that is required to ensure the safety of the facility and the persons at it and, more particularly, may

  • (a) give orders to any person who is at the facility;

  • (b) order that any person who is at the facility be restrained or removed; and

  • (c) obtain any information or documents.

• Marginal note:Emergency

  (3) In a prescribed emergency situation, a facility manager’s powers are extended so that they also apply to each person in charge of a vessel, vehicle or aircraft that is at the facility or that is leaving or approaching it.

• (h) directing the offender to pay to the Regulator an amount of money that the court considers appropriate for the purpose of conducting research, education and training in matters related to the protection of the environment, conservation of petroleum resources or safety of petroleum operations or offshore renewable energy projects;

Marginal note:Regulations

208 Subject to section 6, the Governor in Council may make such regulations not inconsistent with this Part as may be deemed necessary for carrying out the purposes of this Part, and, without limiting the generality of the foregoing, may make regulations defining and distinguishing more particularly for the purposes of Divisions I and II the terms “oil” and “gas”.

authorization

authorization means an authorization issued under paragraph 142(1)(b) or subsection 142.011(1). (autorisation)

declaration

declaration means a declaration referred to in subsection 143.1(1) or (2). (déclaration)

marine installation or structure

marine installation or structure

• (a) includes

  • (i) any ship, including any ship used for construction, production or diving or for geotechnical or seismic work,

  • (ii) any offshore drilling unit, including a mobile offshore drilling unit,

  • (iii) any production platform, subsea installation, pipeline as defined in section 138, pumping station or storage structure,

  • (iii.1) any facility or structure used for producing, storing or transmitting an offshore renewable energy product, including an electrical substation,

  • (iii.2) any living accommodation or loading or landing platform, and

  • (iv) any other work, or work within a class of works, prescribed under paragraph (4)(a); but

• (b) does not include

  • (i) any vessel, including any supply vessel, standby vessel, shuttle tanker or seismic chase vessel, that provides any supply or support services to a ship, installation, facility, structure, work or anything else described in paragraph (a), unless the vessel is within a class of vessels that is prescribed under paragraph (4)(b), or

  • (ii) any ship or vessel within a class of ships or vessels prescribed under paragraph (4)(c). (ouvrage en mer)

Marginal note:Application of Part

• 210.003 (1) This Part applies to and in respect of a workplace that is situated within the offshore area for the purposes of the exploration or drilling for — or the production, conservation or processing of — petroleum, or for the purposes of offshore renewable energy projects, within the offshore area.

Marginal note:Non-application of Parts II and III of Canada Labour Code