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

Marginal note:Consolidation of production licences

82 Subject to sections 31 to 40, the Regulator may, on the application of the interest owners of two or more production licences, consolidate those production licences into a single production licence, on such terms and conditions as may be agreed on by the Regulator and those interest owners.

Marginal note:Reduction of area subject to production licence

• 83 (1) Where a commercial discovery area in relation to a declaration of commercial discovery is decreased pursuant to an amendment made under subsections 71(4) and 78(3), any production licence that was issued on the basis of that declaration shall be amended by decreasing accordingly the portions of the offshore area subject to that licence.

• Marginal note:Increase in areas subject to production licence

  (2) Where a commercial discovery area in relation to a declaration of commercial discovery is increased pursuant to an amendment made under subsections 71(4) and 78(3), any production licence that was issued on the basis of that declaration shall be amended to include all portions of the amended commercial discovery area that are subject to an exploration licence or a significant discovery licence held by the interest owner of that production licence at the time the commercial discovery area is so increased.

Marginal note:Term of production licence

• 84 (1) Subject to subsections (2) to (4), a production licence is effective from the date it is issued and shall be issued for a term of twenty-five years.

• Marginal note:Idem

  (2) Where a declaration of commercial discovery on the basis of which a production licence was issued is, pursuant to subsections 71(4) and 78(3), revoked or amended to exclude all portions of the commercial discovery area in relation to which the production licence was issued, the production licence ceases to be in force.

• Marginal note:Automatic extension of term

  (3) Where, on the expiration of the term of a production licence, petroleum is being produced commercially, the term is extended for such period thereafter during which commercial production of petroleum continues.

• Marginal note:Discretionary extension of term

  (4) Subject to sections 31 to 40, the Regulator may, by order, on such terms and conditions as may be specified in the order, extend the term of a production licence where

  • (a) commercial production of petroleum from the portions of the offshore area subject to the licence ceases before or on the expiration of the twenty-five year term of the production licence and the Regulator has reasonable grounds to believe that commercial production from such portions of the offshore area will recommence; or

  • (b) the Regulator has reasonable grounds to believe that commercial production of petroleum from such portions of the offshore area will, at any time before or after the expiration of the term of the licence, cease during any period and thereafter recommence.

Marginal note:Lapsing of other interests

• 85 (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

• 86 (1) The Regulator may, subject to any terms and conditions the Regulator considers appropriate, issue a licence for the purpose of subsurface storage of petroleum or any other substance approved by the Regulator 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

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

DIVISION VOffshore Renewable Energy

General Rules Relating to Issuance of Submerged Land Licences

Marginal note:Regulator’s authority to issue licences

• 88 (1) The Regulator may issue submerged land licences in respect of any portion of the offshore area in accordance with this Part and the regulations.

• Marginal note:Ministerial decision

  (2) The issuance of a submerged land licence by the Regulator is subject to sections 40.1 to 40.3.

• Marginal note:Application of licence may be limited

  (3) The application of any submerged land licence may be restricted to particular technologies or types of offshore renewable energy resources specified in the licence.

• Marginal note:Licence not required

  (4) A submerged land licence is not required for the purpose of carrying on a work or activity described in paragraph (a) of the definition offshore renewable energy project in section 2 that does not require attaching a facility or structure to the seabed.

Marginal note:Rights under submerged land licences

89 A submerged land licence confers, with respect to the portions of the offshore area to which it applies and subject to the terms and conditions it specifies, the right to carry on an offshore renewable energy project.

Marginal note:Calls for bids

• 90 (1) Subject to section 94, the Regulator shall not issue a submerged land licence in relation to Crown reserve areas unless

  • (a) prior to issuing the licence, the Regulator has made a call for bids in relation to those Crown reserve areas by publishing a notice in accordance with this section and section 96; and

  • (b) the licence is issued to the person who submitted, in response to the call, a bid selected by the Regulator in accordance with subsection 91(1).

• Marginal note:Ministerial decision

  (2) The making of a call for bids for the issuance of a submerged land licence is subject to sections 40.1 to 40.3.

• Marginal note:Contents of call

  (3) The call for bids shall specify

  • (a) the submerged land licence to be issued and the portions of the offshore area to which the licence is to apply;

  • (b) if applicable, the particular technologies or types of offshore renewable energy resources to which the licence is to apply;

  • (c) the other terms and conditions subject to which the licence is to be issued;

  • (d) any terms and conditions that a bid must satisfy to be considered by the Regulator;

  • (e) the form and manner in which a bid is to be submitted;

  • (f) the closing date for the submission of bids; and

  • (g) the criteria that the Regulator will apply in assessing bids submitted in response to the call.

Marginal note:Selection of bid

• 91 (1) A bid submitted in response to a call for bids shall not be selected unless

  • (a) the bid satisfies the terms and conditions and is submitted in the form and manner specified in the call; and

  • (b) the selection is made on the basis of the criteria specified in the call.

• Marginal note:Publication of bid selected

  (2) If the Regulator selects a bid submitted in response to a call for bids, the Regulator shall publish a notice in accordance with section 96 setting out the terms and conditions of that bid.

• Marginal note:Recommendation

  (3) The Regulator shall make an offshore renewable energy recommendation for or against the issuance of a submerged land licence under section 88 respecting all bids selected in accordance with subsection (1).

Marginal note:Issuance of licence not required

• 92 (1) The issuance of a submerged land licence is not required as a result of a call for bids.

• Marginal note:Licence to be consistent with bid

  (2) If a submerged land licence is to be issued as a result of a call for bids, the terms and conditions of the licence shall be substantially consistent with any terms and conditions specified in the call.

• Marginal note:Publication of terms and conditions — issued licence

  (3) The Regulator shall publish a notice in accordance with section 96 setting out the terms and conditions of any submerged land licence issued as a result of a call for bids as soon as practicable after the licence’s issuance.

Marginal note:New call for bids required

93 Subject to section 94, if the Regulator has not issued a submerged land licence with respect to a particular portion of the offshore area specified in a call for bids within 12 months after the closing date specified in the call for bids, the Regulator shall, before issuing a submerged land licence in relation to that portion of the offshore area, make a new call for bids.

Marginal note:Exception to call for bids — offshore renewable energy

• 94 (1) Subject to sections 40.1 to 40.3, the Regulator may issue a submerged land licence, in relation to any Crown reserve area, without making a call for bids if

  • (a) the portion of the offshore area to which the licence is to apply has, through error or inadvertence, become a Crown reserve area and the interest owner who last held a submerged land licence in relation to that portion of the offshore area has, within one year after the time it became a Crown reserve area, requested the Regulator to issue a licence;

  • (b) the Regulator is issuing the licence to an interest owner in exchange for the surrender by the interest owner, at the request of the Regulator, of any other submerged land licence or share in any other such licence, in relation to all or any portion of the offshore area subject to that other licence; or

  • (c) the Federal Minister and the Provincial Minister have directed the Regulator to review an application for the issuance of a submerged land licence that will include the terms and conditions specified by the Ministers.

• Marginal note:Conditions

  (2) The terms and conditions referred to in paragraph (1)(c) shall specify that the purpose of the offshore renewable energy project to be carried out under the submerged land licence shall be restricted to any of the following:

  • (a) to conduct research or to demonstrate a technology, approach or method related to the production, transmission or storage of renewable energy;

  • (b) to conduct a site assessment activity;

  • (c) to transmit an energy product produced from a renewable resource;

  • (d) to provide energy for a petroleum-related work or activity; or

  • (e) any other purpose set out in regulations.

• Marginal note:Notice

  (3) If the Regulator proposes to issue a submerged land licence under subsection (1), the Regulator shall, not later than 120 days before issuing the licence, publish a notice in accordance with section 96 setting out the terms and conditions of the proposed licence.

Marginal note:Failure to comply with call procedures

95 If a submerged land licence has been issued, it is not vitiated by reason only of a failure to comply with any of the requirements set out in sections 90 to 94 respecting the form and content of, and time and manner of publishing, any notice required by those sections in relation to that licence.

Marginal note:Manner of publication of notices

96 Any notice required to be published by the Regulator under subsection 90(1), 91(2), 92(3), 94(3) or 96.3(2) shall be published in the Canada Gazette and in any other publication the Regulator deems appropriate and, despite those subsections, may contain only a summary of the information required to be published and a statement that the full text of the notice is available for inspection by any person on request made to the Regulator.

Marginal note:Regulations

96.1 Subject to section 7, the Governor in Council may, for the purposes of section 90, make regulations of general application in relation to the offshore area or any portion of the offshore area, or in respect of any particular call for bids, prescribing the terms, conditions and criteria to be specified in a call for bids and the manner in which bids are to be submitted and requiring those terms, conditions and criteria and manner to be specified in the call.

Terms and Conditions

Marginal note:Terms and conditions

• 96.2 (1) A submerged land licence shall contain any terms and conditions that may be set out in regulations and may contain any other terms and conditions, not inconsistent with this Part or the regulations, that may be agreed on by the Regulator, subject to sections 40.1 to 40.3, and the interest owner of the licence.

• Marginal note:Regulations

  (2) Subject to section 7, the Governor in Council may make regulations prescribing terms and conditions required to be included in submerged land licences issued in relation to the offshore area or any portion of the offshore area.