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 11987, c. 3; 2014, c. 13, s. 3Canada–Newfoundland and Labrador Atlantic Accord Implementation Act (continued)
Amendments to the Act (continued)
30 Section 57 of the Act is replaced by the following:
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).
31 (1) Subsections 58(1) to (3) of the Act are replaced by the following:
Marginal note:Calls for bids
58 (1) Subject to section 61, 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 63; 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 59(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 31 to 40.
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 58(4) of the English version of the Act before paragraph (a) is replaced by the following:
Marginal note:Contents of call
(4) The call for bids shall specify
(3) Paragraph 58(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;
32 (1) The portion of subsection 59(1) of the English version of the Act before paragraph (a) is replaced by the following:
Marginal note:Selection of bid
59 (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 59(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 63 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 63 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.
33 Section 60 of the Act is replaced by the following:
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.
34 (1) The portion of subsection 61(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Exception to call for bids — petroleum
61 (1) Subject to sections 31 to 40, the Regulator may issue a petroleum-related interest, in relation to any Crown reserve area, without making a call for bids if
(2) Paragraph 61(1)(a) of the English version of the Act is replaced by the following:
(a) the portion of the offshore area to which the interest is to apply has, through error or inadvertence, become a Crown reserve area and the interest owner who last held an interest in relation to such portion of the offshore area has, within one year after the time it became a Crown reserve area, requested the Regulator to issue an interest; or
35 Section 62 of the Act is replaced by the following:
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.
36 Subsection 75(3) of the Act is replaced by the following:
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.
37 Subsection 80(2) of the Act is replaced by the following:
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.
38 The Act is amended by adding the following after section 87:
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.
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