Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act (S.C. 1988, c. 28)

Act current to 2019-06-20 and last amended on 2017-06-22. Previous Versions

PART IIPetroleum Resources (continued)

DIVISION IIIExploration (continued)

Significant Discoveries

Marginal note:Application for declaration of significant discovery

  •  (1) Subject to section 127, where a significant discovery has been made on any portion of the offshore area that is subject to an interest or a share therein held in accordance with section 69, the Board shall, on the application of the interest holder of the interest or share made in the form and manner and containing such information as may be prescribed, make a written declaration of significant discovery in relation to those portions of the offshore area in respect of which there are reasonable grounds to believe that the significant discovery may extend.

  • Marginal note:Declaration on initiative of Board

    (2) Where a significant discovery has been made on any portion of the offshore area, the Board may, by order subject to section 127, make a declaration of significant discovery in relation to those portions of the offshore area in respect of which there are reasonable grounds to believe the significant discovery may extend.

  • Marginal note:Description of offshore area subject to declaration

    (3) A declaration made pursuant to subsection (1) or (2) shall describe the portions of the offshore area to which the declaration applies.

  • Marginal note:Amendment or revocation of declaration

    (4) Subject to subsection (5), where a declaration of significant discovery is made pursuant to subsection (1) or (2) and, based on the results of further drilling, there are reasonable grounds to believe that a discovery is not a significant discovery or that the portions of the offshore area to which the significant discovery extends differ from the significant discovery area, the Board may, subject to section 127 and as appropriate in the circumstances,

    • (a) amend the declaration of significant discovery by increasing or decreasing the significant discovery area; or

    • (b) revoke the declaration.

  • Marginal note:Idem

    (5) A declaration of significant discovery shall not be amended to decrease the significant discovery area or revoked earlier than

    • (a) in the case of a significant discovery area that is subject to a significant discovery licence issued pursuant to subsection 76(1), the date on which the exploration licence referred to in that subsection expires; and

    • (b) in the case of a significant discovery area that is subject to a significant discovery licence issued pursuant to subsection 76(2), three years after the effective date of the significant discovery licence.

  • Marginal note:Notice

    (6) A copy of a declaration of significant discovery and of any amendment or revocation thereof made under this section in relation to any portion of the offshore area subject to an interest shall be sent by registered mail to the interest owner of that interest.

Significant Discovery Licences

Marginal note:Rights under significant discovery licence

 A significant discovery licence confers, with respect to the portions of the offshore area to which the licence applies,

  • (a) the right to explore for, and the exclusive right to drill and test for, petroleum;

  • (b) the exclusive right to develop those portions of the offshore area in order to produce petroleum; and

  • (c) the exclusive right, subject to compliance with the other provisions of this Part, to obtain a production licence.

Marginal note:Significant discovery licence in relation to areas subject to exploration licences

  •  (1) Where a declaration of significant discovery is in force and all or a portion of the significant discovery area is subject to an exploration licence or a share therein held in accordance with section 69, the Board shall, on application of the interest holder of the exploration licence or the share made in the form and manner and containing such information as may be prescribed, issue to the interest holder a significant discovery licence in respect of all portions of the significant discovery area that are subject to the exploration licence or the share.

  • Marginal note:Significant discovery licence in relation to Crown reserve areas

    (2) Where a declaration of significant discovery is in force and the significant discovery area extends to a Crown reserve area, the Board may, after making a call for bids in relation to that Crown reserve area or any portion thereof and selecting a bid submitted in response to the call in accordance with subsection 62(1), issue a significant discovery licence to the person who submitted that bid in relation to the Crown reserve area specified in the call.

  • Marginal note:Fundamental decision

    (3) The making of a call for bids and the issuance of a significant discovery licence by the Board pursuant to subsection (2) is subject to sections 32 to 37.

  • Marginal note:Terms and conditions of significant discovery licence

    (4) A significant discovery licence shall be in the form prescribed and may contain any other terms and conditions, not inconsistent with this Part or the regulations, as may be agreed on by the Board, subject to sections 32 to 37, and the interest owner of the significant discovery licence.

Marginal note:Reduction of area subject to significant discovery licence

  •  (1) Where a significant discovery area in relation to a declaration of significant discovery is decreased pursuant to an amendment made under subsection 74(4), any significant discovery 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 area subject to significant discovery licence

    (2) Where a significant discovery area in relation to a declaration of significant discovery is increased pursuant to an amendment made under subsection 74(4), any significant discovery licence that was issued on the basis of that declaration shall be amended to include all portions of the amended significant discovery area that are subject to any exploration licence held by the interest owner of that significant discovery licence at the time the significant discovery area is so increased.

Marginal note:Exploration licence ceases to have effect

  •  (1) On the issuance of a significant discovery licence pursuant to subsection 76(1) with respect to a significant discovery area, any exploration licence ceases to have effect in relation to that significant discovery area.

  • Marginal note:Effective date of significant discovery licence

    (2) The effective date of a significant discovery licence is the date of application for the licence.

  • Marginal note:Term of significant discovery licence

    (3) Subject to subsection 88(1), a significant discovery licence continues in force, in relation to each portion of the offshore area to which the licence applies, during such period as the declaration of significant discovery on the basis of which the licence was issued remains in force in relation to that portion.

  • Marginal note:Crown reserve area on expiration of licence

    (4) On the expiration of a significant discovery licence, any portion of the offshore area to which the significant discovery licence related and that is not subject to a production licence becomes a Crown reserve area.

Drilling Orders

Marginal note:Drilling orders

  •  (1) Subject to subsections (2) to (4) and sections 32 to 37, the Board may, at any time after making a declaration of significant discovery, by order subject to section 127, require the interest owner of any interest in relation to any portion of the significant discovery area to drill a well on any portion of the significant discovery area that is subject to that interest, in accordance with such directions as may be set out in the order, and to commence the drilling within one year after the making of the order or within such longer period as the Board specifies in the order.

  • Marginal note:Exception

    (2) No order may be made under subsection (1) with respect to any interest owner who has completed a well on the relevant portion of the offshore area within six months after the completion of that well.

  • Marginal note:Condition

    (3) No order may be made under subsection (1) within the three years immediately following the well termination date of the well indicating the relevant significant discovery.

  • Marginal note:Idem

    (4) No order made under subsection (1) may require an interest owner to drill more than one well at a time on the relevant portion of the offshore area.

  • Definition of well termination date

    (5) For the purposes of subsection (3), well termination date means the date on which a well has been abandoned, completed or suspended in accordance with any applicable drilling regulations.

  • 1988, c. 28, s. 79
  • 2015, c. 4, s. 78

Marginal note:Information may be disclosed

  •  (1) The Board may, notwithstanding section 122, provide information or documentation relating to a significant discovery to any interest owner who requires such information or documentation to assist the interest owner in complying with an order made under subsection 79(1).

  • Marginal note:Idem

    (2) An interest owner shall not disclose any information or documentation provided to that interest owner under subsection (1) except to the extent necessary to enable the interest owner to comply with an order made under subsection 79(1).

 
Date modified: