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 VIIDrilling Fund (continued)

Drilling Assistance (continued)

Marginal note:Transitional assistance

 The Federal Minister may, on application, make payments to Nova Scotia Resources (Ventures) Limited equal, in the aggregate, to the amount of interest incurred by Nova Scotia Resources (Ventures) Limited on money borrowed in order to finance activities in relation to the exploration or development of oil or gas in the offshore area to the extent that

  • (a) the cost of the interest is reasonable in the circumstances;

  • (b) the interest was incurred during the period commencing on August 27, 1986 and ending on the date on which this Part comes into force; and

  • (c) the interest is in respect of borrowed money that, in the aggregate, is equal to or less than the aggregate of all amounts payable by the Federal Minister pursuant to section 240 in respect of expenses incurred during the period referred to in paragraph (b).

Appropriation

Marginal note:Appropriation

 There may be paid out of the Consolidated Revenue Fund, for the purpose of making payments pursuant to sections 240 and 241, amounts not exceeding, in the aggregate, the sum of twenty-five million dollars.

Administration

Marginal note:Documents, records and books

 Nova Scotia Resources (Ventures) Limited shall keep documents, records and books of account at a place of business or other prescribed place in Canada in such form and containing such information as will enable the Federal Minister to determine the amount of any payment that should be made pursuant to section 240 or 241.

Marginal note:Audit or examination

 Nova Scotia Resources (Ventures) Limited shall, for the purpose of audit or examination,

  • (a) make the documents, records and books of account kept pursuant to section 243 available at all reasonable times to any person authorized by the Federal Minister for the purpose; and

  • (b) give all reasonable assistance to a person authorized by the Federal Minister to carry out the audit or examination, provide access to all relevant sites, answer, orally or in writing, as required, all questions relating to the audit or examination and provide all information, documentation and copies required for the purpose of the audit or examination.

Regulations

Marginal note:Regulations

 Subject to section 6, the Governor in Council may make regulations for carrying out the purposes and provisions of this Part and, without restricting the generality of the foregoing, may make regulations

  • (a) prescribing the manner of making an application for payment under this Part and the time when it is to be made;

  • (b) where the Federal Minister has made an overpayment under this Part, requiring Nova Scotia Resources (Ventures) Limited to repay such overpayment and interest thereon to the Federal Minister in accordance with the regulations and prescribing the amount of interest to be paid in respect of such an overpayment and the manner in which and time when the amount of any such overpayment and any interest thereon is to be repaid; and

  • (c) permitting, in the calculation of Canadian development expenses or Canadian exploration expenses, any expense to be included that would otherwise be excluded pursuant to paragraph (a) of the definition of that term in section 239.

  • 1988, c. 28, s. 245
  • 1994, c. 26, s. 17(F)

PART VIIICrown Share Adjustment Payments

Interpretation

Marginal note:Definitions

  •  (1) In this Part,

    average annual cost to the Province of borrowing money

    average annual cost to the Province of borrowing money means the average annual rate of interest, determined in the manner prescribed, that would be incurred by the Province on borrowed money if the money were borrowed during the period of twelve months immediately preceding the date of the determination of the threshold rate of return; (coût d’emprunt annuel moyen)

    deemed profit

    deemed profit[Repealed, 2009, c. 31, s. 47]

    fiscal incentive

    fiscal incentive[Repealed, 2009, c. 31, s. 47]

    former Act

    former Act[Repealed, 2009, c. 31, s. 47]

    offshore revenue threshold

    offshore revenue threshold[Repealed, 2009, c. 31, s. 47]

    project

    project means a work or activity resulting in the production of petroleum in the offshore area that is required to be authorized pursuant to paragraph 142(1)(b). (projet)

    threshold rate of return

    threshold rate of return[Repealed, 2009, c. 31, s. 47]

  • (2) [Repealed, 2015, c. 4, s. 105]

  • 1988, c. 28, s. 246
  • 2009, c. 31, s. 47
  • 2015, c. 4, s. 105

Adjustment Payments

Marginal note:Adjustment payment

  •  (1) Subject to this section, the Federal Minister may, on behalf of Her Majesty in right of Canada, pay an amount to Her Majesty in right of the Province equal to seventy-five per cent of the profit realized on or after April 1, 2010, and determined in the manner prescribed, in respect of a project.

  • Marginal note:Restriction

    (2) No payment shall be made pursuant to subsection (1) in respect of a project unless the Provincial Minister demonstrates to the satisfaction of the Federal Minister that the rate of return in respect of that project that would have been obtained on behalf of Her Majesty in right of the Province, calculated in the manner prescribed, is equal to or greater than an annual rate of return on invested capital that is equal to the lesser of 20% and the aggregate of 7% and the average annual cost to the Province of borrowing money.

  • Marginal note:Exception

    (2.1) Subsection (2) does not apply in respect of the Sable Offshore Energy Project and the Deep Panuke Offshore Gas Development Project.

  • Marginal note:Reduction for fiscal incentives

    (3) The aggregate amount of payments made pursuant to subsection (1) in respect of any project shall be reduced by the aggregate amount, determined in the manner prescribed, of all fiscal incentives and any other benefits that are

    • (a) established by or pursuant to an Act of Parliament;

    • (b) prescribed for the purposes of this Part or approved in the manner prescribed; and

    • (c) received in respect of the project.

  • Marginal note:Exception

    (3.1) Subsection (3) does not apply in respect of fiscal incentives and other benefits generally prevailing in Canada.

  • Marginal note:Time of payments

    (4) Subject to the regulations, a payment made pursuant to subsection (1) shall be made annually, not later than six months after the end of each fiscal year.

  • Marginal note:Exception

    (5) If the per capita fiscal capacity of the Province in respect of any fiscal year is equal to or greater than the national average per capita fiscal capacity in respect of that fiscal year, no payment shall be made under subsection (1) in respect of that fiscal year. The per capita fiscal capacity of the Province and the national average per capita fiscal capacity shall be determined in accordance with section 247.1.

  • (6) [Repealed, 2009, c. 31, s. 48]

  • 1988, c. 28, s. 247
  • 2009, c. 31, s. 48
  • 2015, c. 4, s. 106

Marginal note:Definitions

  •  (1) The following definitions apply in this section.

    Fiscal Arrangements Act

    Fiscal Arrangements Act means the Federal-Provincial Fiscal Arrangements and Federal Post-Secondary Education and Health Contributions Act, 1977. (loi de 1977)

    national average per capita fiscal capacity

    national average per capita fiscal capacity means the per capita fiscal capacity of all of the provinces. (moyenne nationale)

    province

    province does not include Yukon, the Northwest Territories or Nunavut. (province)

  • Marginal note:Per capita fiscal capacity of Province and national average

    (2) For the purposes of subsection 247(5), the per capita fiscal capacity of the Province and the national average per capita fiscal capacity in respect of any fiscal year shall be determined by the Minister of Finance by dividing the aggregate of the estimated revenues of the Province or of all provinces, as the case may be, in respect of the fiscal year, as determined in accordance with subsection (3), by the population of the Province or of all provinces, as the case may be, in respect of the fiscal year.

  • Marginal note:Estimated revenues

    (3) The aggregate of the estimated revenues of the Province or of all provinces, as the case may be, in respect of any fiscal year shall be determined by

    • (a) describing the sources from which are or may be derived the aggregate of the following revenues, namely:

      • (i) the aggregate of the revenues derived by all provinces in respect of the fiscal year from all sources described in the definition revenue source in subsection 4(2) of the Fiscal Arrangements Act as it read on April 1, 1982,

      • (ii) the aggregate of the revenues that are

        • (A) derived by all municipalities, boards, commissions and other local authorities from the sources described in paragraphs (z) and (bb) of the definition revenue source in subsection 4(2) of the Fiscal Arrangements Act as it read on April 1, 1982, and

        • (B) deemed by virtue of subsection 4(5) of the Fiscal Arrangements Act as it read on April 1, 1982 to be derived by a province in respect of the fiscal year, and

      • (iii) the aggregate of the revenues derived by all provinces in respect of the fiscal year and by all municipalities, boards, commissions and other local authorities in respect of their financial years ending in the fiscal year that

        • (A) are not included in subparagraph (i) or (ii), and

        • (B) are included in the computation of fiscal equalization payments for the fiscal year under the Fiscal Arrangements Act;

      as those sources are described in the definition revenue source in subsection 4(2) of the Fiscal Arrangements Act, varying the description of such sources to take into account the changes and factors referred to in subsection (4);

    • (b) defining the expression revenue base, in respect of each distinct source described in paragraph (a), for a province in respect of the fiscal year, that relates to the measure of the relative capacity of the province to derive revenue from that source for that fiscal year,

    • (c) estimating the amount of each revenue base defined in paragraph (b), in respect of each source described in paragraph (a), for the Province or all provinces, as the case may be, for the fiscal year;

    • (d) estimating the amount of the revenues of the Province or all provinces, as the case may be, in respect of each source described in paragraph (a) for the fiscal year by multiplying

      • (i) the national average rate of tax for the fiscal year in respect of that source, and

      • (ii) the amount of the revenue base estimated under paragraph (c) in respect of that source for the Province or all provinces, as the case may be, for the fiscal year; and

    • (e) adding the amounts of the revenues of the Province or of all provinces, as the case may be, estimated under paragraph (d) in respect of all sources described in paragraph (a).

  • Marginal note:Changes and factors

    (4) For the purposes of paragraph (3)(a) and subparagraph (3)(b)(ii), the following changes and factors should be taken into account, namely,

    • (a) changes in any laws of a province relating to taxation that apply in respect of fiscal years subsequent to the fiscal year beginning on April 1, 1982;

    • (b) changes to improve the accuracy of comparisons among provinces of relative capacity to derive revenue from any source described in paragraph (3)(a);

    • (c) changes made by statistical agencies to statistical data or methods used to measure the relative capacities of provinces to derive revenue from any such source; and

    • (d) any other factors that, in the opinion of the Minister of Finance, are relevant to the circumstances.

  • Marginal note:Average rate of tax

    (5) For the purposes of paragraph (3)(d) the national average rate of tax for a fiscal year in respect of a source is the quotient obtained by dividing

    • (a) the aggregate of the total revenues, as determined by the Minister of Finance, derived by all provinces for the fiscal year from that source, whether or not the total revenues or any portion thereof are included in the computation of the fiscal equalization payments to provinces for the fiscal year under Part I of the Fiscal Arrangements Act

    by

    • (b) the revenue base estimated under paragraph (3)(c) in respect of that source for all provinces for that fiscal year.

  • Marginal note:Determination of population

    (6) For the purposes of this section, the population of a province for a fiscal year is the population of that province for that fiscal year, as determined for the purposes of Part I of the Fiscal Arrangements Act.

  • 2015, c. 4, s. 107
 
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