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

Regional Security of Supply

Definition of shortfall of petroleum deliveries in the Province

• 39 (1) In this section, shortfall of petroleum deliveries in the Province means deliveries of petroleum that are inadequate to supply, on commercial terms,

  • (a) the end use consumption demands of all consumers in the Province;

  • (b) feedstock requirements of industrial facilities that are in place in the Province on January 31, 1986; and

  • (c) the feedstock requirements of any refining facility located in the Province that was not in place on January 31, 1986 if the feedstock requirements required to satisfy the demand of industrial capacity, as of January 31, 1986, 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 consumers and facilities referred to 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) Notwithstanding any other provision of this Act, 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.

• Marginal note:Regulations

  (7) Subject to section 6, 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 governing the enforcement of arbitration orders and appeals from those orders; and

  • (c) prescribing the manner of exercising a first option to acquire that is granted pursuant to a notice given under subsection (2).

Nova Scotia Trunkline

Definition of Nova Scotia trunkline

• 40 (1) In this section, Nova Scotia trunkline means a trunkline for the transmission of petroleum in the offshore area or from the offshore area to and within the Province, and includes all tanks, reservoirs, storage facilities, pumps, racks, compressors, loading facilities, interstation systems of communication by telephone, telegraph or radio, and real and personal property connected therewith that are located within the Province or the offshore area, but does not include laterals, gathering lines, flow lines, structures, or facilities for the production and processing of petroleum.

• Marginal note:Certificate

  (2) No certificate shall be issued under Part 3 of the Canadian Energy Regulator Act in respect of a Nova Scotia trunkline, unless the Commission of the Canadian Energy Regulator is satisfied that the Government of Nova Scotia has been given a reasonable opportunity to acquire on a commercial basis at least 50%, or any lesser percentage that the Government proposes to acquire as a result of the opportunity, ownership interest in the trunkline.

• Marginal note:Authorization

  (3) Where a certificate referred to in subsection (2) is not required in respect of a Nova Scotia trunkline, no authorization shall be issued under paragraph 142(1)(b) in respect of that trunkline, unless the Board is satisfied that the Government of Nova Scotia has been given a reasonable opportunity to acquire on a commercial basis at least fifty per cent, or such lesser percentage as the Government proposes to acquire as a result of the opportunity, ownership interest in the trunkline.

Ministerial Directives

Marginal note:Directives issued jointly by both Ministers

• 41 (1) The Federal Minister and the Provincial Minister may jointly issue to the Board written directives in relation to

  • (a) fundamental decisions;

  • (b) Canada-Nova Scotia benefits plans and any provisions thereof;

  • (c) public reviews conducted pursuant to section 44;

  • (d) studies to be conducted by the Board; and

  • (e) 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

  (2) 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 written directives in relation to

  • (a) the development of guidelines and interpretation notes with respect to occupational health and safety matters; and

  • (b) the implementation of any recommendations made by an auditor under section 210.121 or made following an inquiry under section 210.122.

• Marginal note:Directives of either Minister

  (3) If a request is received during any calendar year by the Board or the Federal Minister or the Provincial Minister to make a call for bids under Part II in relation to particular portions of the offshore area, the Federal Minister or the Provincial Minister may, after having reviewed the plan of the anticipated decisions of the Board during the calendar year submitted under section 43, issue to the Board a written directive to specify those portions of the offshore area in a call for bids made under Part II.

• Marginal note:Directives of Provincial Minister

  (4) The Provincial Minister may issue to the Board written directives with respect to any fundamental decision relating to the Bay of Fundy or Sable Island.

• Marginal note:Directives binding

  (5) The Board shall comply with any directive issued under this section.

• Marginal note:Directives deemed not to be statutory instruments

  (6) Directives issued under this section shall be deemed not to be statutory instruments for the purposes of the Statutory Instruments Act.

Public Notice

Marginal note:Public notice

• 42 (1) Where the Federal Minister

  • (a) issues or jointly issues a directive under section 41,

  • (b) suspends the implementation of a fundamental decision pursuant to section 34, or

  • (c) sets aside a fundamental decision or overrules the setting aside of a fundamental decision pursuant to section 35,

  the Minister shall cause a notice of the Minister’s action and of the fundamental decision in relation to which it is exercised to be published in the Canada Gazette.

• Marginal note:Text of directive to be made available

  (2) Where a directive is issued under section 41, the notice thereof published pursuant to subsection (1) shall indicate that the text of the directive is available for inspection by any person on request made to the Board.

Strategic Plan for Interests, Exploration and Development

Marginal note:Strategic plan

43 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

• (a) 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; and

• (b) exploration and development of the offshore area.

Public Review

Marginal note:Public review

• 44 (1) Subject to any directives issued under subsection 41(1), the Board may conduct a public review in relation to the exercise of any of its powers or the performance of any of its duties where the Board is of the opinion that it is in the public interest to do so.

• Marginal note:Powers of Board

  (2) Where a public review is conducted pursuant to subsection (1) in relation to any matter, the Board may

  • (a) establish terms of reference and a timetable that will permit a comprehensive review of all aspects of the matter, 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 matter;

  • (c) 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; and

  • (d) where the public review is conducted in relation to any potential development of a pool or field, require the person who proposed the potential development to submit and make available for public distribution a preliminary development plan, an environmental impact statement, a socio-economic impact statement, a preliminary Canada-Nova Scotia benefits plan and any other plan specified by the Board.

• 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 Board or 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)(d) 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.

Public Hearings

Marginal note:Public hearings

44.1 The Board may conduct a public hearing in relation to the exercise of any of its powers or the performance of any of its duties and functions as a responsible authority as defined in subsection 2(1) of the Canadian Environmental Assessment Act, 2012.

Marginal note:Confidentiality

44.2 At any public hearing conducted under section 44.1, the Board may take any measures and make any order that it considers necessary to ensure the confidentiality of any information likely to be disclosed at the hearing if the Board is satisfied that

• (a) disclosure of the information could reasonably be expected to result in a material loss or gain to a person directly affected by the hearing, or to prejudice the person’s competitive position, and the potential harm resulting from the disclosure outweighs the public interest in making the disclosure; or

• (b) the information is financial, commercial, scientific or technical information that is confidential information supplied to the Board and

  • (i) the information has been consistently treated as confidential information by a person directly affected by the hearing, and

  • (ii) the person’s interest in confidentiality outweighs the public interest in its disclosure.

Marginal note:Confidentiality —  security

44.3 At any public hearing conducted under section 44.1, the Board may take any measures and make any order that it considers necessary to ensure the confidentiality of information that is likely to be disclosed at the hearing if the Board is satisfied that

• (a) there is a real and substantial risk that disclosure of the information will impair the security of pipelines, as defined in section 138, installations, vessels, aircraft or systems, including computer or communication systems, or methods employed to protect them; and

• (b) the need to prevent disclosure of the information outweighs the public interest in its disclosure.

Marginal note:Exception

44.4 The Board shall not take any measures or make any order under section 44.2 or 44.3 in respect of information or documentation referred to in paragraphs 122(5)(a) to (e) and (i).

Canada-Nova Scotia Benefits Plan

Definition of Canada-Nova Scotia benefits plan

• 45 (1) In this section, Canada-Nova Scotia benefits plan means a plan for the employment of Canadians and, in particular, members of the labour force of the Province and, subject to paragraph (3)(d), for providing manufacturers, consultants, contractors and service companies in the Province and other parts of Canada with a full and fair opportunity to participate on a competitive basis in the supply of goods and services used in any proposed work or activity referred to in the benefits plan.

• Marginal note:Canadian and Nova Scotian participation

  (2) Before the Board may approve any development plan pursuant to subsection 143(4) or authorize any work or activity under paragraph 142(1)(b), a Canada-Nova Scotia benefits plan shall be submitted to and approved by the Board, unless the Board waives that requirement in accordance with subsection (6).

• Marginal note:Particular provisions of plan

  (3) A Canada-Nova Scotia benefits plan shall contain provisions intended to ensure that

  • (a) before carrying out any work or activity in the offshore area, the corporation or other body submitting the plan shall establish in the Province an office where appropriate levels of decision-making are to take place;

  • (b) consistent with the Canadian Charter of Rights and Freedoms, individuals resident in the Province shall be given first consideration for training and employment in the work program for which the plan was submitted and any collective agreement entered into by the corporation or other body submitting the plan and an organization of employees respecting terms and conditions of employment in the offshore area shall contain provisions consistent with this paragraph;

  • (c) a program shall be carried out and expenditures shall be made for the promotion of education and training and of research and development in the Province in relation to petroleum resource activities in the offshore area; and

  • (d) first consideration shall be given to services provided from within the Province and to goods manufactured in the Province, where those services and goods are competitive in terms of fair market price, quality and delivery.

• Marginal note:Affirmative action programs

  (4) The Board may require that any Canada-Nova Scotia benefits plan include provisions to ensure that disadvantaged individuals or groups have access to training and employment opportunities and to enable such individuals or groups or corporations owned or cooperatives operated by them to participate in the supply of goods and services used in any proposed work or activity referred to in the benefits plan.

• Marginal note:Duties of Board in reviewing plans

  (5) In reviewing any Canada-Nova Scotia benefits plan, the Board shall consult with both Ministers on the extent to which the plan meets the requirements set out in subsections (1), (3) and (4).

• Marginal note:Directives

  (6) The Board may, pursuant to subsection (2),

  • (a) subject to any directives issued under subsection 41(1), approve any Canada-Nova Scotia benefits plan; or

  • (b) with the consent of both Ministers, waive the requirement for any Canada-Nova Scotia benefits plan.

• Marginal note:Regulations

  (7) Subject to section 6, the Governor in Council may make regulations prescribing the time and manner of submission of any Canada-Nova Scotia benefits plan and the form and information to be contained therein.