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)
39 The headings before section 97 of the Act are replaced by the following:
DIVISION VIRoyalties and Revenues
Reservation of Royalties and Revenues
40 (1) Subsection 97(2) of the English version of the Act is replaced by the following:
Marginal note:Royalties
(2) There is reserved to His Majesty in right of Canada, and each holder of a share in a production licence is liable for and shall pay to His Majesty in right of Canada, in accordance with subsection (4), the royalties, interest and penalties that would be payable in respect of petroleum under the Petroleum and Natural Gas Act if the petroleum were produced from areas within the Province.
(2) Subsection 97(5) of the Act is replaced by the following:
Marginal note:No Crown share
(5) No provision of the Petroleum and Natural Gas Act or any regulation made under that 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.
41 The Act is amended by adding the following after section 97:
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.
42 (1) Subsections 98(1) to (3) of the Act are replaced by the following:
Marginal note:Power to collect
98 (1) Subject to subsection (6), if an agreement is entered into under subsection (3), royalties, interest and penalties payable under section 97 or revenues, interest and penalties payable under section 97.1, 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 97; 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 97.1.
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 under which the Regulator shall, on behalf of the Government of Canada, collect and administer the royalties, interest and penalties payable under section 97 or the revenues, interest and penalties payable under section 97.1, as the case may be, and grant refunds or make 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 98(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 97, or under both section 97 and the Petroleum and Natural Gas 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 97.1, or under both section 97.1 and any Act of the Province and any regulations made under that Act, 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 those regulations, 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 97 or the revenues, interest, penalties or other sums payable by a person under section 97.1, 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 that payment; and
(b) shall be deemed to have been applied in accordance with a direction made by that person.
43 Sections 99 and 100 of the Act are replaced by the following:
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.
44 Subsections 101(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 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.
45 The definitions court and operator’s lien in subsection 102(1) of the Act are replaced by the following:
- 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)
46 Section 103 of the Act is replaced by the following:
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.
47 (1) The definition engineering research or feasibility study in subsection 119(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 119(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 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 119(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 119(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 since the completion of the study or, in the absence of regulations, if three years have passed since the completion of that study.
(5) The portion of subsection 119(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 119(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 138(1) or authorization under subsection 138.01(1) or in respect of the scope, purpose, location, timing and nature of the proposed work or activity for which the licence or authorization is sought.
(6.1) Section 119 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 119(11) of the Act before paragraph (a) is replaced by the following:
Marginal note:Safety or environmental protection
(11) Subject to section 119.1, 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 138(1) or authorization under subsection 138.01(1), or to an operating licence or authorization that is issued under one of those subsections or provided in accordance with any regulations 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 119(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 135, 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.
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