An Act to amend the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act and the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act and to make consequential amendments to other Acts (S.C. 2024, c. 20)
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Assented to 2024-10-03
PART 21988, c. 28Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act (continued)
Amendments to the Act (continued)
135 (1) Subsection 57(1) of the Act is replaced by the following:
Marginal note:Prohibition orders — petroleum
57 (1) Subject to sections 32 to 37, the Regulator may, except in a case referred to in subsection (2), by order, for any purposes and under any conditions set out in the order, prohibit the issuance of petroleum-related interests in respect of any portions of the offshore area specified in the order.
Marginal note:Prohibition orders — offshore renewable energy
(1.1) The Federal Minister and the Provincial Minister may, except in a case referred to in subsection (2), issue a joint direction to the Regulator to, by order, for any purposes and under any conditions set out in the order, prohibit the issuance of submerged land licences in respect of any portions of the offshore area specified in the order.
(2) Subsection 57(2) of the French version of the Act is replaced by the following:
Marginal note:Décision du ministre fédéral
(2) Le ministre fédéral peut, en cas de désaccord sur le tracé des frontières avec un gouvernement étranger, interdire, par arrêté, aux conditions qu’il y indique, l’octroi de titres à l’égard de telle partie de la zone extracôtière visée.
(3) Section 57 of the Act is amended by adding the following after subsection (2):
Marginal note:Directions deemed not to be statutory instruments
(3) Directions issued under subsection (1.1) shall be deemed not to be statutory instruments for the purposes of the Statutory Instruments Act.
136 (1) Subsections 59(1) and (2) of the Act are replaced by the following:
Marginal note:Prohibition orders
59 (1) Subject to subsections (2) and (2.1), the Regulator may, by order, prohibit any interest owner specified in the order from commencing or continuing any work or activity on all or any portion of the offshore area subject to the interest, in the case of
(a) an environmental or social problem of a serious nature; or
(b) dangerous or extreme weather conditions affecting the health or safety of people or the safety of equipment.
Marginal note:Fundamental decision
(2) The making of an order by the Regulator in a case referred to in paragraph (1)(a) with respect to a petroleum-related interest is subject to sections 32 to 37.
Marginal note:Ministerial decision
(2.1) The making of an order by the Regulator in a case referred to in paragraph (1)(a) with respect to a submerged land licence is subject to sections 38.1 to 38.3.
(2) Subsection 59(4) of the French version of the Act is replaced by the following:
Marginal note:Suspension des obligations
(4) Est suspendue, tant que l’arrêté est valide, toute obligation liée à un titre et rendue de ce fait inexécutable.
137 The Act is amended by adding the following after section 59:
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.
138 The heading “General Rules Relating to Issuance of Interests” before section 60 of the Act is replaced by the following:
General Rules Relating to Issuance of Petroleum-Related Interests
139 Section 60 of the Act is replaced by the following:
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).
140 (1) Subsections 61(1) to (3) of the Act are replaced by the following:
Marginal note:Calls for bids
61 (1) Subject to section 64, the Regulator shall not issue a petroleum-related interest in relation to Crown reserve areas unless
(a) prior to issuing the interest, 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 66; and
(b) the interest is issued to the person who submitted, in response to the call, the bid selected by the Regulator in accordance with subsection 62(1).
Marginal note:Fundamental decision
(2) The making of a call for bids for the issuance of a petroleum-related interest is subject to sections 32 to 37.
Marginal note:Requests for call for bids
(3) Any request received by the Regulator to make a call for bids for the issuance of a petroleum-related interest in relation to particular portions of the offshore area shall be considered by the Regulator in selecting the portions of the offshore area to be specified in such a call for bids.
(2) The portion of subsection 61(4) of the English version of the Act before paragraph (a) is replaced by the following:
Marginal note:Contents of call for bids
(4) The call for bids shall specify
(3) Paragraph 61(4)(b) of the Act is replaced by the following:
(b) if applicable, the geological formations and substances to which the interest is to apply;
141 (1) The portion of subsection 62(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Selection of bid
62 (1) A bid submitted in response to a call for bids for the issuance of a petroleum-related interest shall not be selected unless
(2) Subsections 62(2) to (4) of the Act are replaced by the following:
Marginal note:Publication of bid selected
(2) If the Regulator selects a bid submitted in response to the call for bids, the Regulator shall publish a notice in accordance with section 66 setting out the terms and conditions of that bid.
Marginal note:Interest to be consistent with call
(3) If a petroleum-related interest is to be issued as a result of a call for bids, the terms and conditions of the interest shall be substantially consistent with any terms and conditions in respect of the interest specified in the call.
Marginal note:Publication of terms and conditions of interest
(4) The Regulator shall publish a notice in accordance with section 66 setting out the terms and conditions of any petroleum-related interest issued as a result of a call for bids as soon as practicable after its issuance.
- Date modified: