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Canada–Newfoundland and Labrador Atlantic Accord Implementation Act (S.C. 1987, c. 3)

Act current to 2019-08-28 and last amended on 2019-08-28. Previous Versions

PART IIPetroleum Resources (continued)

DIVISION IVProduction (continued)

Issuance of Production Licences (continued)

Marginal note:Lapsing of other interests

  •  (1) On the issuance of a production licence, any interest in relation to the portions of the offshore area in respect of which the production licence is issued held immediately prior to the issuance of the production licence ceases to have effect in relation to such portions of the offshore area, but otherwise continues to have effect according to its terms and the provisions of this Act.

  • Marginal note:Areas become Crown reserve areas on expiration of term

    (2) On the expiration of a production licence, the portions of the offshore area in relation to which the production licence was issued become Crown reserve areas.

Subsurface Storage Licences

Marginal note:Licence for subsurface storage

  •  (1) The Board may, subject to any terms and conditions the Board considers appropriate, issue a licence for the purpose of subsurface storage of petroleum or any other substance approved by the Board in portions of the offshore area at depths greater than twenty metres.

  • Marginal note:Prohibition

    (2) No portion of the offshore area shall be used for a purpose referred to in subsection (1) without a licence referred to therein.

Qualification for Production Licence

Marginal note:Qualification for production licence

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

  • 1987, c. 3, s. 87
  • 1993, c. 47, s. 7

DIVISION V[Repealed, 1993, c. 47, s. 8]

DIVISION VIRoyalties

Interpretation

Definition of Petroleum and Natural Gas Act

  •  (1) In this Division, Petroleum and Natural Gas Act means Part II of the Petroleum and Natural Gas Act, R.S.N.L. 1990, c. P-10, as amended from time to time.

  • Marginal note:Royalties

    (2) There is hereby reserved to Her Majesty in right of Canada and each holder of a share in a production licence is liable for and shall pay to Her 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.

  • Marginal note:Exception

    (3) Notwithstanding subsection (2), where petroleum is subject to a royalty under the Petroleum and Natural Gas Act, that petroleum is not subject to a royalty under subsection (2).

  • Marginal note:Application of Newfoundland and Labrador legislation

    (4) Subject to this Act and the regulations, the Petroleum and Natural Gas Act and the regulations referred to in subsection (4.1) apply, with any modifications that the circumstances require, for the purposes of this section and, without limiting the generality of the foregoing,

    • (a) a reference in that Act to Her Majesty in Right of the province is to be read as a reference to Her Majesty in right of Canada; and

    • (b) a reference in that Act to the province is to be read as a reference to the offshore area.

  • Marginal note:Application of Newfoundland and Labrador regulations

    (4.1) The following regulations apply for the purposes of subsection (4):

    • (a) any regulations made under the Petroleum and Natural Gas Act; and

    • (b) any regulations made under an Act that was replaced by the Petroleum and Natural Gas Act, to the extent that those regulations remain in force in accordance with the laws of the Province and are not inconsistent with the Petroleum and Natural Gas Act.

  • Marginal note:No Crown share

    (5) No provision of the Petroleum and Natural Gas Act or any regulation made thereunder shall apply so as to reserve to Her Majesty a Crown share in any interest issued in respect of any portion of the offshore area.

  • 1987, c. 3, s. 97
  • 1988, c. 28, s. 257(F)
  • 2014, c. 13, s. 17

Marginal note:Power to collect

  •  (1) Subject to subsection (6), where an agreement is entered into pursuant to subsection (3), royalties, interest and penalties payable under section 97 may be collected and administered and refunds in respect thereof 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 pursuant to subsection (4).

  • Marginal note:Negotiation of agreement

    (2) The Federal Minister shall, on the request of the Government of the Province or the Board, negotiate an agreement with the Provincial Minister and the Board with respect to the collection and administration of the royalties, interest and penalties payable under section 97.

  • Marginal note:Agreement

    (3) On completion of the negotiation of an agreement pursuant to 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 Board pursuant to which the Board shall, on behalf of the Government of Canada, collect and administer the royalties, interest and penalties payable under section 97 and, without limiting the generality of the foregoing, grant refunds or make other payments in respect of those royalties, interest and penalties in accordance with the terms and conditions set out in the agreement.

  • Marginal note:Amendments to the agreement

    (4) The Federal Minister, with the approval of the Governor in Council, may, on behalf of the Government of Canada, enter into an agreement amending the terms and conditions of any agreement entered into pursuant to subsection (3).

  • Marginal note:Proof of provision of agreement

    (5) A document purporting to be an agreement entered into pursuant to subsection (3) or (4) that is

    • (a) published in the Canada Gazette, or

    • (b) certified as such by, or on behalf of, the Minister of National Revenue, the Receiver General, the Deputy Receiver General or the Federal Minister

    is, in the absence of evidence to the contrary, evidence of the contents thereof and is admissible in evidence without proof of the signature or official character of the person purporting to have certified it.

  • Marginal note:No further liability

    (6) An administration agreement may provide that, where 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

    • (a) section 97, or

    • (b) both

      • (i) section 97, and

      • (ii) the Petroleum and Natural Gas Act,

    the payment so received may be applied by the Government of the Province towards the royalties, interest, penalties or other sums payable by the person under any such provision or Act in such manner as is specified in the agreement, notwithstanding that the person directed that the payment be applied in any other manner or made no direction as to its application.

  • Marginal note:Idem

    (7) Any payment or part thereof applied by the Government of the Province in accordance with an administration agreement towards the royalties, interest, penalties or other sums payable by a person under section 97,

    • (a) relieves that person of liability to pay such royalties, interest, penalties or other sums to the extent of the payment or part thereof so applied; and

    • (b) shall be deemed to have been applied in accordance with a direction made by that person.

  • 1987, c. 3, s. 98
  • 1988, c. 28, s. 258(F)
  • 2014, c. 13, s. 18(F)

Marginal note:Remittance to Receiver General

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

  • Marginal note:Consolidated Revenue Fund

    (2) On the collection or receipt of any royalties, interest and penalties by the Board pursuant to this section, the royalties 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.

  • 1987, c. 3, s. 99
  • 2015, c. 4, s. 44(F)

Liability and Collection of Royalties

Marginal note:Debts due to Her Majesty

 All royalties, interest and penalties payable under section 97 are debts due to Her Majesty in right of Canada and are recoverable as such from the person required to pay the royalties in accordance with this Division.

DIVISION VIIEnvironmental Studies Revolving Funds

Marginal note:Fund continued

  •  (1) Part VII of the Canada Petroleum Resources Act applies, with such modifications as the circumstances require, within the offshore area.

  • Marginal note:Rates subject to Board’s approval

    (2) The rates fixed by the Federal Minister pursuant to section 80 of the Canada Petroleum Resources Act, as they apply to the offshore area, are subject to approval by the Board.

  • Marginal note:Appointment by Board of one of members of Environmental Studies Management Board

    (3) Notwithstanding 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 Board on the recommendation of the Provincial Minister.

  • Marginal note:Reports and recommendations to Board

    (4) The Environmental Studies Management Board referred to in subsection (3) shall submit to the Board a copy of every annual report and recommendation submitted to the Federal Minister pursuant to 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.

 
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