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)
151 (1) Subsections 100(1) to (3) of the Act are replaced by the following:
Marginal note:Power to collect
100 (1) Subject to subsection (6), if an agreement is entered into under subsection (3), royalties, interest and penalties payable under section 99 or revenues, interest and penalties payable under section 99.1, as the case may be, may be collected and administered and refunds in respect of those amounts payable may be granted on behalf of the Government of Canada in accordance with the terms and conditions of the agreement, as amended from time to time under subsection (4).
Marginal note:Negotiation of agreement
(2) The Federal Minister shall, on the request of the Government of the Province or the Regulator, negotiate
(a) an agreement with the Provincial Minister and the Regulator with respect to the collection and administration of the royalties, interest and penalties payable under section 99; and
(b) an agreement with the Provincial Minister and the Regulator with respect to the collection and administration of the revenues, interest and penalties payable under section 99.1.
Marginal note:Agreement
(3) On completion of the negotiation of an agreement under subsection (2), the Federal Minister, with the approval of the Governor in Council, shall, on behalf of the Government of Canada, enter into an agreement with the Government of the Province and the Regulator with respect to the collection and administration, on behalf of the Government of Canada, of the royalties, interest and penalties payable under section 99 or the revenues, interest and penalties payable under section 99.1, as the case may be, and with respect to the granting of refunds or the making of other payments in respect of those amounts payable, as the case may be, in accordance with the terms and conditions set out in the agreement.
(2) Subsections 100(6) and (7) of the Act are replaced by the following:
Marginal note:No further liability — petroleum
(6) An agreement entered into under subsection (3) may provide that, if any payment is received by the Government of the Province on account of any royalties, interest, penalties or other sum payable by a person under section 99, or under both section 99 and the Offshore Petroleum Royalty Act, that payment may be applied by the Government of the Province towards the royalties, interest, penalties or other sums payable by the person under that section or both that section and that Act in the manner that is specified in the agreement, even if the person directed that the payment be applied in any other manner or made no direction as to its application.
Marginal note:No further liability — offshore renewable energy
(6.1) An agreement entered into under subsection (3) may provide that, if any payment is received by the Government of the Province on account of any revenues, interest, penalties or other sum payable in respect of any offshore renewable energy project by a person under section 99.1, or under both section 99.1 and the Provincial Act or any other Act of the Province and any regulations made under those Acts, that payment may be applied by the Government of the Province towards the revenues, interest, penalties or other sums payable by the person under that section or both that section and that Act and regulations made under that Act, in the manner that is specified in the agreement, even if the person directed that the payment be applied in any other manner or made no direction as to its application.
Marginal note:Relief of liability
(7) Any payment or part of a payment applied by the Government of the Province in accordance with an agreement entered into under subsection (3) towards the royalties, interest, penalties or other sums payable by a person under section 99 or the revenues, interest, penalties or other sums payable by a person under section 99.1, as the case may be,
(a) relieves that person of liability to pay those amounts payable to the extent of the applied payment or part of the payment; and
(b) shall be deemed to have been applied in accordance with a direction made by that person.
152 Sections 101 and 102 of the Act are replaced by the following:
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.
153 Subsections 103(3) and (4) of the Act are replaced by the following:
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.
154 The definition operator’s lien in subsection 105(1) of the Act is replaced by the following:
- 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)
155 Section 106 of the Act is replaced by the following:
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.
156 (1) The definition engineering research or feasibility study in subsection 122(1) of the Act is replaced by the following:
- engineering research or feasibility study
engineering research or feasibility study includes work undertaken to facilitate the design or to analyse the viability of engineering technology, systems or schemes to be used, in the offshore area, in the exploration for or the development, production or transportation of petroleum or in offshore renewable energy projects; (recherches ou études techniques)
(2) Paragraph 122(5)(d) of the Act is amended by striking out “or” at the end of subparagraph (i) and by replacing subparagraph (ii) with the following:
(ii) in any other case relating to a petroleum-related work or activity, after the end of five years following the date of completion of the geological or geophysical work, or
(iii) in any case relating to an offshore renewable energy project, after the end of the time set out by regulations or, in the absence of regulations, three years following the date of completion of the geological or geophysical work;
(3) Paragraph 122(5)(e) of the Act is amended by striking out “or” at the end of subparagraph (i) and by replacing subparagraph (ii) with the following:
(ii) in any other case relating to a petroleum-related work or activity, after the end of five years following the date of completion of the research, study or experimental project or after the reversion of that portion of the offshore area to Crown reserve areas, whichever occurs first, or
(iii) in any case relating to an offshore renewable energy project, after the earlier of:
(A) the end of the period set out by regulations or, in the absence of regulations, three years following the date of completion of the research, study or experimental project, and
(B) the reversion of that portion of the offshore area to Crown reserve areas;
(4) Paragraph 122(5)(i) of the Act is amended by striking out “or” at the end of subparagraph (i) and by replacing subparagraph (ii) with the following:
(ii) in any other case relating to a petroleum-related work or activity, if five years have passed since the completion of the study, or
(iii) in any case relating to an offshore renewable energy project, if the period set out by regulations has passed or, in the absence of regulations, if three years have passed since the completion of that study.
(5) The portion of subsection 122(6) of the Act before paragraph (a) is replaced by the following:
Marginal note:Disclosure — governments and agencies
(6) The Regulator may disclose any information or documentation that it obtains under this Part or Part III — to officials of the Government of Canada, the Government of the Province or any other provincial government, or a foreign government or to the representatives of any of their agencies — for the purposes of a federal, provincial or foreign law, as the case may be, that deals primarily with a petroleum-related work or activity, including the exploration for and the management, administration and exploitation of petroleum resources, or with an offshore renewable energy project, if
(6) Subsection 122(9) of the Act is replaced by the following:
Marginal note:Applicant and proposed work or activity
(9) Subsection (2) does not apply in respect of information regarding the applicant for an operating licence or authorization under subsection 142(1) or authorization under subsection 142.011(1) or in respect of the scope, purpose, location, timing and nature of the proposed work or activity for which the authorization is sought.
(6.1) Section 122 of the Act is amended by adding the following after subsection (9):
Marginal note:Public notice
(9.1) The Regulator shall make public a summary of the information referred to in subsection (9) in respect of a work or activity for which the Impact Assessment Agency of Canada decided under section 16 of the Impact Assessment Act that an impact assessment is not required or which is excluded under section 112.1 of that Act.
(7) The portion of subsection 122(11) of the Act before paragraph (a) is replaced by the following:
Marginal note:Safety or environmental protection
(11) Subject to section 122.1, the Regulator may disclose, including for the purposes of the Impact Assessment Act, all or part of any information or documentation related to safety or environmental protection that is provided in relation to an application for an operating licence or authorization under subsection 142(1) or authorization under subsection 142.011(1) or to an operating licence or authorization that is issued under one of those subsections or provided in accordance with any regulation made under this Part or Part III. The Regulator is not, however, permitted to disclose information or documentation if it is satisfied that
(8) Paragraph 122(11)(c) of the English version of the Act is replaced by the following:
(c) there is a real and substantial risk that disclosure of it will impair the security of pipelines, as defined in section 138, installations, facilities, vessels, aircraft or systems, including computer or communication systems, used for any work or activity in respect of which this Act applies — or methods employed to protect them — and the need to prevent its disclosure outweighs the public interest in its disclosure.
157 Subsection 126(2) of the Act is replaced by the following:
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.
158 Subsection 127(8) of the Act is replaced by the following:
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.
159 Subsections 128(2) and (3) of the Act are repealed.
160 Subsection 131(1) of the Act is replaced by the following:
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.
161 The Act is amended by adding the following after section 137:
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.
- Date modified: