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

Act current to 2019-06-20 and last amended on 2019-01-01. Previous Versions

PART IIIPetroleum Operations (continued)

DIVISION IRegulation of Operations (continued)

Spills and Debris (continued)

Marginal note:Financial resources — certain activities

  •  (1) An applicant for an authorization under paragraph 138(1)(b) for the drilling for or development or production of petroleum shall provide proof, in the prescribed form and manner, that it has the financial resources necessary to pay the greatest of the amounts of the limits of liability referred to in subsection 162(2.2) that apply to it. If the Board considers it necessary, it may determine a greater amount and require proof that the applicant has the financial resources to pay that greater amount.

  • Marginal note:Financial resources — other activities

    (2) An applicant for an authorization under paragraph 138(1)(b) for any other work or activity shall provide proof, in the prescribed form and manner, that it has the financial resources necessary to pay an amount that is determined by the Board.

  • Marginal note:Loss of non-use value not considered

    (3) When the Board determines an amount under subsection (1) or (2), the Board is not required to consider any potential loss of non-use value relating to a public resource that is affected by a spill or the authorized discharge, emission or escape of petroleum or as a result of debris.

  • Marginal note:Continuing obligation

    (4) The holder of an authorization under paragraph 138(1)(b) shall ensure that the proof referred to in subsections (1) and (2) remains in force for the duration of the work or activity in respect of which the authorization is issued.

  • Marginal note:Extended obligation

    (5) The holder of an authorization under paragraph 138(1)(b) shall also ensure that the proof referred to in subsection (1) remains in force for a period of one year beginning on the day on which the Board notifies the holder that it has accepted a report submitted by the holder indicating that the last well in respect of which the authorization is issued is abandoned. The Board may reduce that period and may decide that the proof that is to remain in force during that period is proof that the holder has the financial resources necessary to pay an amount that is less than the amount referred to in subsection (1) and that is determined by the Board.

  • 2015, c. 4, s. 61

Marginal note:Financial responsibility

  •  (1) An applicant for an authorization under paragraph 138(1)(b) shall provide proof of financial responsibility in the form of a letter of credit, guarantee or indemnity bond or in any other form satisfactory to the Board,

    • (a) in the case of the drilling for or development or production of petroleum in the offshore area, in the amount of $100 million or, if the Board considers it necessary, in a greater amount that it determines; or

    • (b) in any other case, in an amount that is satisfactory to, and determined by, the Board.

  • Marginal note:Pooled fund

    (1.01) An applicant to which paragraph (1)(a) applies may, rather than provide proof of financial responsibility in the amount referred to in that paragraph, provide proof that it participates in a pooled fund that is established by the oil and gas industry, that is maintained at a minimum of $250 million and that meets any other requirements that are established by regulation.

  • Marginal note:Increase in amount by regulation

    (1.02) Subject to section 7, the Governor in Council may, by regulation, increase the amount referred to in subsection (1.01).

  • Marginal note:Continuing obligation

    (1.1) The holder of an authorization under paragraph 138(1)(b) shall ensure that the proof of financial responsibility referred to in subsection (1) or (1.01) remains in force for the duration of the work or activity in respect of which the authorization is issued.

  • Marginal note:Extended obligation

    (1.2) The holder of an authorization under paragraph 138(1)(b) shall also ensure that the proof referred to in paragraph (1)(a) or subsection (1.01) remains in force for a period of one year beginning on the day on which the Board notifies the holder that it has accepted a report submitted by the holder indicating that the last well in respect of which the authorization is issued is abandoned. The Board may reduce that period and may decide — other than in the case of a holder that participates in a pooled fund — that the proof that is to remain in force during that period is for an amount that is less than the amount referred to in paragraph (1)(a) and that is determined by the Board.

  • Marginal note:Payment of claims

    (2) The Board may require that moneys in an amount not exceeding the amount prescribed for any case or class of cases, or determined by the Board in the absence of regulations, be paid out of the funds available under the letter of credit, guarantee or indemnity bond or other form of financial responsibility provided under subsection (1), or be paid out of the pooled fund referred to in subsection (1.01), in respect of any claim for which proceedings may be instituted under section 162, whether or not those proceedings have been instituted.

  • Marginal note:Manner of payment

    (3) Where payment is required under subsection (2), it shall be made in such manner, subject to such conditions and procedures and to or for the benefit of such persons or classes of persons as may be prescribed by the regulations for any case or class of cases, or as may be required by the Board in the absence of regulations.

  • Marginal note:Deduction

    (4) Where a claim is sued for under section 162, there shall be deducted from any award made pursuant to the action on that claim any amount received by the claimant under this section in respect of the loss, damage, costs or expenses claimed.

  • Marginal note:Reimbursement of pooled fund

    (5) The holder of an authorization under paragraph 138(1)(b) that is liable for a discharge, emission or escape of petroleum that is authorized by regulation or for any spill or debris in respect of which a payment has been made under subsection (2) out of the pooled fund, shall reimburse the amount of the payment in the prescribed manner.

  • 1987, c. 3, s. 163
  • 1992, c. 35, s. 76
  • 2015, c. 4, s. 62

Marginal note:Lesser amount

  •  (1) The Federal Minister may, by order, on the recommendation of the Board and with the Provincial Minister’s approval, approve an amount that is less than the amount referred to in paragraph 162(2.2)(a) or (b) or 163(1)(a) in respect of an applicant for, or a holder of, an authorization under paragraph 138(1)(b).

  • Marginal note:Financial resources — exception

    (2) If the Federal Minister approves an amount that is less than the amount referred to in paragraph 162(2.2)(a) or (b) in respect of an applicant for an authorization under paragraph 138(1)(b), that applicant, for the purposes of subsection 162.1(1), shall only provide proof that it has the financial resources necessary to pay the adjusted amount approved by the Federal Minister.

  • Marginal note:No contravention

    (3) No applicant for an authorization under paragraph 138(1)(b) contravenes paragraph 163(1)(a) if that applicant provides proof of financial responsibility in the amount that is approved by the Federal Minister under this section.

  • 2015, c. 4, s. 63

Marginal note:Review committee

  •  (1) A committee, consisting of members appointed by each government and by representatives of the petroleum industry and of the fisheries industry, is established by the joint operation of this Act and the Provincial Act to review and monitor the application of sections 162 and 163 and any claims and the payment thereof made under those sections.

  • Marginal note:Dissolution of committee

    (2) The committee referred to in subsection (1) may be dissolved only by the joint operation of an Act of Parliament and an Act of the Legislature of the Province.

  • Marginal note:Promotion of compensation policies

    (3) The Board shall promote and monitor compensation policies for fishermen sponsored by the fishing industry respecting damages of a non-attributable nature.

Pricing for Greenhouse Gas Emissions

Marginal note:Definitions

 The following definitions apply in sections 164.2 and 164.3.

greenhouse gas

greenhouse gas has the same meaning as the definition of greenhouse gas in paragraph 2(f) of the Management of Greenhouse Gas Act, S.N.L. 2016, c. M-1.001. (gaz à effet de serre)

Management of Greenhouse Gas Act

Management of Greenhouse Gas Act means the Management of Greenhouse Gas Act, S.N.L. 2016, c. M-1.001, and its regulations, as amended from time to time. (texte provincial)

  • 2018, c. 27, s. 177

Marginal note:Application

  •  (1) Subject to subsection (2), the provisions of the Management of Greenhouse Gas Act relating to greenhouse gas emissions pricing apply, with any modifications that the circumstances require and that may be prescribed, to a work or activity authorized under this Part that is carried out within the offshore area.

  • Marginal note:Limitation

    (2) Subsection (1) does not apply to any provision of the Management of Greenhouse Gas Act that imposes a tax.

  • Marginal note:Statutory Instruments Act

    (3) The Statutory Instruments Act does not apply to any instrument made by a provincial official or body under the authority of the provisions of the Management of Greenhouse Gas Act that are incorporated by reference under subsection (1).

  • Marginal note:Service Fees Act

    (4) For greater certainty, the Service Fees Act does not apply to any fee, charge or levy that is fixed under the provisions of the Management of Greenhouse Gas Act that are incorporated by reference under subsection (1).

  • Marginal note:Federal Courts Act

    (5) Any official or body that exercises a power or performs a duty or function under the provisions of the Management of Greenhouse Gas Act that are incorporated by reference under subsection (1) is not a federal board, commission or other tribunal for the purposes of the Federal Courts Act.

  • Marginal note:Review or appeal in Provincial courts

    (6) If a power is conferred or a duty or function is imposed by the provisions of the Management of Greenhouse Gas Act that are incorporated by reference under subsection (1), the exercise of the power or the performance of the duty or function is subject to review by, or appeal to, the courts of the Province in the same manner and to the same extent as if the laws of the Province applied.

  • Marginal note:Amounts collected

    (7) Payments collected by an official or body under the provisions of the Management of Greenhouse Gas Act that are incorporated by reference under subsection (1) belong to Her Majesty in right of the Province and are not public money for the purposes of the Financial Administration Act.

  • 2018, c. 27, s. 177
 
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