PART IJoint Management (continued)
Decisions in Relation to Offshore Management (continued)
Marginal note:Supply shortfall
40 (1) Notwithstanding any other provision of this Act, in the event of a sudden domestic or import supply shortfall of suitable crude oil and equivalent substances, the Board shall, on request by the Federal Minister, cause production of suitable crude oil and equivalent substances to be increased, consistent with good oil field practice.
Marginal note:Canada’s obligations under IEA
(2) Notwithstanding any other provision of this Act, where the Government of Canada has obligations with respect to the allocation of petroleum pursuant to the Agreement On An International Energy Program dated November 18, 1974, the Board shall, where directed to do so by the Federal Minister and during the period that those obligations continue, take such measures as are necessary to comply with those obligations and as are fair and equitable in relation to other hydrocarbon producing regions of Canada.
Regional Security of Supply
Definition of shortfall of petroleum deliveries in the Province
(a) the end use consumption and feedstock requirements of industrial facilities that are in place in the Province on the day of the coming into force of this Act;
(b) the feedstock requirements of the refining facilities at Come-by-Chance if those facilities were operating at capacity on the day of the coming into force of this Act or any refining facility constructed in the Province to replace those facilities; or
(c) the feedstock requirements of any refining facility located in the Province that was not in place on the coming into force of this Act, other than a facility referred to in paragraph (b), if the feedstock requirements required to satisfy the demand of industrial capacity, on the day of the coming into force of this Act, in Nova Scotia, New Brunswick, Prince Edward Island and Newfoundland and Labrador have been met.
Marginal note:Notice by Provincial Minister to holders of production licences
(2) Where there is a shortfall of petroleum deliveries in the Province, the Provincial Minister may, after consulting with the Federal Minister, give notice to holders of production licences in the offshore area that the facilities in paragraphs (1)(a), (b) and (c) that are specified in the notice have, during the term of the notice, the first option to acquire, on commercial terms, petroleum produced in the offshore area unless a sales contract with respect to that petroleum has been entered into prior to the giving of the notice.
Marginal note:Later contracts subject to notice
(3) Any contract entered into after the giving of the notice referred to in subsection (2) shall be deemed to be varied or suspended to the extent necessary to give effect to that notice.
Marginal note:Term of notice
(4) The term of a notice given under subsection (2) is the period during which a shortfall of petroleum deliveries in the Province continues to exist.
Marginal note:Arbitration in case of dispute whether shortfall exists
(5) Where the Federal Minister or a holder of a production licence to whom a notice has been given under subsection (2) does not agree with the Provincial Minister that a shortfall of petroleum deliveries in the Province exists or continues to exist, the matter shall be referred to arbitration in the manner prescribed.
Marginal note:Notice ceases to have effect
(6) Where it is determined pursuant to arbitration that a shortfall of petroleum deliveries in the Province does not exist or continue to exist, the notice given under subsection (2) shall be deemed to be revoked and ceases to have effect on the date on which the determination is made.
(7) Subject to section 7, the Governor in Council may make regulations for carrying out the purposes and provisions of this section and, without limiting the generality of the foregoing, may make regulations
(a) defining the expression commercial terms or providing for arbitration to establish commercial terms in any particular case;
(b) governing, for the purposes of this section, arbitration and the making of arbitration orders and appeals from and enforcement of arbitration orders; and
(c) prescribing the manner of exercising a first option to acquire that is granted pursuant to a notice given under subsection (2).
- 1987, c. 3, s. 41
- 2014, c. 13, s. 11
Marginal note:Ministerial directives
(a) fundamental decisions;
(b) decisions made by the Board respecting the exercise of a power pursuant to paragraph 56(1)(b);
(c) public reviews conducted pursuant to section 44;
(d) Canada–Newfoundland and Labrador benefits plans and any of their provisions; and
(e) studies to be conducted by the Board and advice with respect to policy issues to be given by the Board to the Federal Minister and the Provincial Minister.
Marginal note:Occupational health and safety directives
(1.1) The Federal Minister, on the recommendation of the Minister of Labour, and the minister of the government of the Province who is responsible for occupational health and safety, may jointly issue to the Board written directives in relation to
Marginal note:Directives binding
(2) The Board shall comply with a directive issued under this section.
Marginal note:Directives not statutory instruments
Marginal note:Notice in Canada Gazette
(4) When a directive is issued under this section, a notice shall be published in the Canada Gazette that the directive has been issued and that the text of it is available for inspection by any person on request made to the Board.
- 1987, c. 3, s. 42
- 2014, c. 13, s. 12
Plan for interests
Marginal note:Plan for interests
43 (1) During the first month of each calendar year, the Board shall submit to the Federal Minister and the Provincial Minister a plan outlining the anticipated decisions of the Board during that calendar year respecting the making of calls for bids pursuant to Part II with respect to interests to be issued in relation to portions of the offshore area and the issuance and terms and conditions of such interests.
Marginal note:Revised plan
(2) Where the Minister having authority in relation to fundamental decisions, as determined under subsection 34(1) or (4), is of the opinion that a plan referred to in subsection (1) does not provide adequately for the attainment or maintenance of self-sufficiency and security of supply within the meaning of section 33, that Minister may reject the plan and where that Minister does so, shall inform the Board of the reasons for so doing.
(3) Where the Board is informed of a Minister’s rejection of its plan and the reasons therefor, the Board shall, within sixty days after being so informed, prepare a revised plan outlining the anticipated decisions of the Board referred to in subsection (1), taking into account those reasons, and submit the revised plan to the Federal Minister and the Provincial Minister.
Marginal note:Application of subsections (2) and (3) to revised plan
(4) Subsections (2) and (3) apply, with such modifications as the circumstances require, with respect to a revised plan submitted pursuant to subsection (3).
Marginal note:Public review
44 (1) Subject to any directives issued under subsection 42(1), the Board shall conduct a public review in relation to any potential development of a pool or field unless the Board is of the opinion that it is not required on any ground the Board considers to be in the public interest.
Marginal note:Powers of Board
(2) Where a public review is conducted in relation to any potential development of a pool or field, the Board may
(a) establish terms of reference and a timetable that will permit a comprehensive review of all aspects of the development, including those within the authority of Parliament or of the Legislature of the Province;
(b) appoint one or more commissioners and, where there is to be more than one commissioner, appoint as commissioners persons nominated by each of the governments in recognition of the authority of Ministers of the Crown in right of Canada or of the Province under any Act of Parliament or of the Legislature of the Province, other than this Act or the Provincial Act, in relation to the development;
(c) if the potential development has been proposed to the Board by any person, require that person to submit and make available for public distribution a preliminary development plan, an environmental impact statement, a socio-economic impact statement, a preliminary Canada–Newfoundland and Labrador benefits plan and any other plan specified by the Board; and
(d) cause the commissioners to hold public hearings in appropriate locations in the Province or elsewhere in Canada and report thereon to the Board, the Federal Minister and the Provincial Minister.
Marginal note:Powers of commissioners
(3) On the request of the Board, the Federal Government may, subject to such terms and conditions as it considers necessary, confer on the commissioners appointed pursuant to paragraph (2)(b) all or any of the powers conferred on persons appointed as commissioners under Part I of the Inquiries Act.
Marginal note:Time limit for Board’s recommendations on a plan
(4) The commissioners shall make their recommendations respecting any preliminary plan or statement submitted pursuant to paragraph (2)(c) within two hundred and seventy days after their receipt of the plan or statement or such shorter period as may be set by the Board.
- 1987, c. 3, s. 44
- 2014, c. 13, s. 13(E)
- 2015, c. 4, s. 40(E)
- Date modified: