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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 IIIPetroleum Operations (continued)

DIVISION IIProduction Arrangements (continued)

Compulsory Unitization (continued)

Marginal note:Effective date of unitization order

  •  (1) Subject to subsection (2), a unitization order becomes effective on the day that the Committee determines in the order, but that day shall be not less than thirty days after the day on which the order is made.

  • Marginal note:Effective date when unit agreement or unit operating agreement varied

    (2) Where a unit agreement or unit operating agreement is varied by the Committee in a unitization order, the effective date prescribed in the order shall be a date not less than thirty days following the day the order is made, but the order becomes ineffective if, before the effective date, the applicant files with the Committee a notice withdrawing the application on behalf of the working interest owners or there are filed with the Committee statements in writing objecting to the order and signed

    • (a) in the case of the unit agreement by

      • (i) one or more working interest owners who own in the aggregate more than twenty-five per cent of the total working interests in the area and were included within the group owning sixty-five per cent or more of the total working interests as described in subparagraph 176(2)(a)(i), and

      • (ii) one or more royalty owners who own in the aggregate more than twenty-five per cent of the total royalty interests in the unit area and were included within the group owning sixty-five per cent or more of the total royalty interests as described in subparagraph 176(2)(a)(ii); or

    • (b) in the case of the unit operating agreement, by one or more working interest owners who own in the aggregate more than twenty-five per cent of the total working interests in the unit area and were included within the group owning sixty-five per cent or more of the total working interests as described in subparagraph 176(2)(a)(i).

  • Marginal note:Revocation of order

    (3) Where a unitization order becomes ineffective under subsection (2), the Committee shall forthwith revoke the order.

  • 1987, c. 3, s. 177
  • 1992, c. 35, s. 79(E)

Marginal note:Technical defects in unitization order

 A unitization order is not invalid by reason only of the absence of notice or of any irregularities in giving notice to any owner in respect of the application for the order or any proceedings leading to the making of the order.

Marginal note:Amending unitization order

  •  (1) A unitization order may be amended upon the application of a working interest owner, but before amending a unitization order the Committee shall hold a hearing at which all interested parties shall have an opportunity to be heard.

  • Marginal note:Voluntary proposal for amendment by owners

    (2) If the Committee finds that, at the date of the commencement of a hearing of an application for the amendment of a unitization order, one or more working interest owners who own in the aggregate sixty-five per cent or more of the total working interests and one or more royalty interest owners who own in the aggregate sixty-five per cent or more of the total royalty interests in the unit area have consented to the proposed amendment, the Committee may amend the unitization order in accordance with the amendment proposed.

  • 1987, c. 3, s. 179
  • 1994, c. 26, s. 15(F)

Marginal note:Protection of tract participation ratios

 No amendment shall be made under section 179 that will alter the ratios between the tract participations of those tracts that were qualified for inclusion in the unit area before the commencement of the hearing, and, for the purposes of this section, the tract participations shall be those indicated in the unit agreement when it became subject to a unitization order.

Marginal note:Production prohibited except in accord with unitization order

 After the date on which a unitization order comes into effect and while the order remains in force, no person shall carry on any operations within the unit area for the purpose of drilling for or producing petroleum from the unitized zone, except in accordance with the provisions of the unit agreement and the unit operating agreement.

Marginal note:How percentages of interests to be determined

 The percentages of interests referred to in subsections 174(1), 176(2), 177(2) and 179(2) shall be determined

  • (a) as to royalty interests, on a prorated area basis; and

  • (b) as to working interests, on the basis of tract participation shown in the unit agreement.

General

Marginal note:Pooled spacing unit included in unit area

  •  (1) A pooled spacing unit that has been pooled pursuant to a pooling order and on which a well has been drilled may be included in a unit area as a single unit tract and the Committee may make such amendments to the pooling order as it deems necessary to remove any conflict between the provisions of the pooling order and the provisions of the unit agreement, or the unit operating agreement or the unitization order, if any.

  • Marginal note:Effect of including pooled spacing unit in unit area

    (2) Where a pooled spacing unit is included in a unit area pursuant to subsection (1), the provisions of the unit agreement, the unit operating agreement and the unitization order, if any, prevail over the provisions of the pooling order in the event of a conflict.

  • Marginal note:Exceptions

    (3) Notwithstanding subsection (2),

    • (a) the share of the unit production that is allocated to the pooled spacing unit shall in turn be allocated to the separately owned tracts in the pooled spacing unit on the same basis and in the same proportion as production actually obtained from the pooled spacing unit would have been shared under the pooling order;

    • (b) the costs and expenses of the unit operation that are allocated to the pooled spacing unit shall be shared and borne by the owners of the working interests therein on the same basis and in the same proportion as would apply under the pooling order; and

    • (c) the credits allocated under a unit operating agreement to a pooled spacing unit for adjustment of investment for wells and equipment thereon shall be shared by the owners of the working interests therein in the same proportion as would apply to the sharing of production under the pooling order.

DIVISION IIIAppeals and Administration

Appeals

Marginal note:Orders and decisions final

  •  (1) Except as provided in this Division, every decision or order of the Committee is final and conclusive.

  • Marginal note:Decision or order defined

    (2) Any minute or other record of the Committee or any document issued by the Committee, in the form of a decision or order, shall for the purposes of this section be deemed to be a decision or an order of the Committee.

Marginal note:Stated case for Supreme Court of Newfoundland and Labrador

  •  (1) The Committee may of its own motion or at the request of the Board state a case, in writing, for the opinion of the Trial Division of the Supreme Court of Newfoundland and Labrador on any question that in the opinion of the Committee is a question of law or of the jurisdiction of the Committee.

  • Marginal note:Proceedings on case

    (2) The Trial Division of the Supreme Court of Newfoundland and Labrador shall hear and determine the case stated, and remit the matter to the Committee with the opinion of the Court on the matter.

  • 1987, c. 3, s. 185
  • 2014, c. 13, s. 30

Marginal note:Board may review orders of Committee

 The Board may, at any time, in its discretion, either on petition of any interested person or of its own motion, vary or rescind any decision or order of the Committee made under this Part, whether such order is made between parties or otherwise and any order that the Board makes with respect thereto becomes a decision or order of the Committee and, subject to section 187, is binding on the Committee and on all parties.

Marginal note:Appeal to Supreme Court of Newfoundland and Labrador

  •  (1) An appeal lies from a decision or order of the Committee to the Trial Division of the Supreme Court of Newfoundland and Labrador on a question of law, on leave being obtained from that Court, in accordance with the practice of that Court, on application made within one month after the making of the decision or order sought to be appealed from or within any further time that that Court may allow.

  • Marginal note:Staying order

    (2) Where leave to appeal is granted pursuant to subsection (1), any order of the Committee in respect of which the appeal is made shall be stayed until the matter of the appeal is determined.

  • Marginal note:Powers of Court

    (3) After the hearing of the appeal, the Trial Division of the Supreme Court of Newfoundland and Labrador shall certify its opinion to the Committee and the Committee shall make any order necessary to comply with that opinion.

  • Marginal note:Order subject to section 186

    (4) Any order made by the Committee pursuant to subsection (3), unless that order has already been dealt with by the Board pursuant to section 186, shall be subject to that section.

  • 1987, c. 3, s. 187
  • 2014, c. 13, s. 31

Operational Safety Officers and Conservation Officers

Marginal note:Operational safety officers

  •  (1) Subject to subsection (4), the Federal Minister and the Provincial Minister shall jointly designate as an operational safety officer for the purposes of the administration and enforcement of this Part an individual who has been recommended by the Board. The Ministers shall make the designation within 30 days after the day on which they receive the name of the individual from the Board.

  • Marginal note:Conservation officers

    (2) Subject to subsection (4), the Federal Minister and the Provincial Minister shall jointly designate as a conservation officer for the purposes of the administration and enforcement of this Part an individual who has been recommended by the Board. The Ministers shall make the designation within 30 days after the day on which they receive the name of the individual from the Board.

  • Marginal note:Notice of designation

    (3) The Ministers shall, without delay after making a designation, notify the Board, in writing, that the designation has been made.

  • Marginal note:Restriction

    (4) The Ministers shall not designate an individual if they are not satisfied that the individual is qualified to exercise the powers and carry out the duties and functions of an operational safety officer or a conservation officer, as the case may be, under this Part. If an individual is not designated, the Ministers shall without delay notify the Board of it, in writing.

  • Marginal note:Indemnification

    (5) An individual designated under subsection (1) or (2) who is not an employee of the Board is deemed to be an officer for the purposes of section 16.

  • 1987, c. 3, s. 188
  • 1992, c. 35, s. 80
  • 2014, c. 13, s. 33
 
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