Bill C-15

62-63 ELIZABETH II

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CHAPTER 2

An Act to replace the Northwest Territories Act to implement certain provisions of the Northwest Territories Lands and Resources Devolution Agreement and to repeal or make amendments to the Territorial Lands Act, the Northwest Territories Waters Act, the Mackenzie Valley Resource Management Act, other Acts and certain orders and regulations

[Assented to 25th March, 2014]

Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

SHORT TITLE

1. This Act may be cited as the Northwest Territories Devolution Act.

PART 1

NORTHWEST TERRITORIES ACT

Enactment of Act

2. The Northwest Territories Act is enacted as follows:

An Act respecting the Northwest Territories

SHORT TITLE

1. This Act may be cited as the Northwest Territories Act.

INTERPRETATION

2. The following definitions apply in this Act.

“Aboriginal party” means an Aboriginal organization that is a party to the Agreement.

“Agreement” means the Northwest Territories Lands and Resources Devolution Agreement that was made on June 25, 2013, as amended from time to time.

“federal appurtenant undertaking” means an undertaking in relation to which a use of waters or a deposit of waste is permitted by a licence and that is

(a) related to remediation that is performed by or on behalf of Her Majesty in right of Canada

(i) under the Agreement, or

(ii) in respect of an Excepted Waste Site as defined in section 1.1 of the Agreement; or

(b) located on public lands that are under the administration of a federal minister.

“former Act” means the Northwest Territories Act, chapter N-27 of the Revised Statutes of Canada, 1985.

“gas” means natural gas — including coal-bed methane — and all substances other than oil that are produced in association with natural gas.

“Gwich’in Agreement” means the Agreement as defined in section 2 of the Gwich’in Land Claim Settlement Act.

“Inuvialuit Final Agreement” means the Agreement as defined in section 2 of the Western Arctic (Inuvialuit) Claims Settlement Act.

“line of delimitation” means the Line of Delimitation that is described in Schedule 18 to the Agreement.

“minerals” means precious or base metals or other non-living naturally occurring substances— including coal, but not including oil, gas or water — that are, or were before their production, part of the land, whether solid, liquid or gaseous.

“Minister” means the Minister of Indian Affairs and Northern Development.

“Northwest Territories” means that part of Canada that is north of the 60th parallel of north latitude, west of the boundary described in Schedule I to the Nunavut Act and not within Yukon.

“oil” means

(a) crude petroleum — regardless of gravity — that is produced at a well-head in liquid form; or

(b) any other hydrocarbons — except coal and gas — including hydrocarbons that may be extracted or recovered from surface or subsurface deposits, including deposits of oil sand, bitumen, bituminous sand or oil shale and other types of deposits.

“onshore” means that part of Canada that is north of the 60th parallel of north latitude, west of the boundary described in Schedule I to the Nunavut Act and not within Yukon that consists of the following lands:

(a) lands, including lands under water, that lie landward of the low-water line — or in respect of Inuvialuit lands as defined in section 2 of the Inuvialuit Final Agreement, landward of the mean or ordinary high-water mark — of the sea coast of the mainland or of the sea coast of any naturally occurring permanent island;

(b) lands under water that are within small enclosed bays along the sea coast of the mainland or the sea coast of any naturally occurring permanent island; and

(c) lands, including lands under water, that lie landward of the line of delimitation and seaward of the low-water line — or in respect of lands that are contiguous with the sea coast of Inuvialuit lands as defined in section 2 of the Inuvialuit Final Agreement, seaward of the mean or ordinary high-water mark — of the sea coast of the mainland.

It does not include lands that lie seaward of the line of delimitation, other than those lands— including lands under water — that lie landward of the low-water line of the sea coast of those naturally occurring permanent islands and those lands under water that are within small enclosed bays along the sea coast of those islands.

“public lands” means

(a) lands — including minerals, oil, gas, timber or wood and buildings, structures, improvements or other fixtures — that are situated in the onshore and that belong to Her Majesty in right of Canada; or

(b) interests — in lands that are situated in the onshore — that belong to Her Majesty in right of Canada.

“Sahtu Agreement” means the Agreement as defined in section 2 of the Sahtu Dene and Metis Land Claim Settlement Act.

“self-government agreement” means an agreement between Her Majesty in right of Canada and an Aboriginal people of the Northwest Territories that is implemented by an Act of Parliament and that recognizes

(a) the legal status and capacity of a governing body to represent that Aboriginal people; and

(b) the authority of that governing body to enact laws.

“settlement agreement” means an agreement that is listed in Schedule 1 to the Agreement.

“settlement lands” means lands in the Northwest Territories whose title is vested in an Aboriginal organization under a settlement agreement.

“small enclosed bay” means any coastal indentation that meets the following conditions:

(a) the distance of a straight line across the entrance of the indentation at the low-water line measures four kilometres or less; and

(b) the area of the indentation, including any islands or parts of islands lying within the indentation, is greater than that of a semicircle whose diameter is the distance of the straight line referred to in paragraph (a).

“Tlicho Agreement” means the Agreement as defined in section 2 of the Tlicho Land Claims and Self-Government Act.

“waters” means any inland waters — whether in a liquid or frozen state — that are on or below the surface of lands that are situated in the onshore.

3. Wherever in this Act a reference is made, in relation to any matter, to a duty to consult, that duty must be exercised

(a) by providing the person to be consulted with the following:

(i) notice of the matter in sufficient form and detail to allow the person to prepare their views on the matter,

(ii) a reasonable period for the person to prepare those views, and

(iii) an opportunity to present those views to the person having that duty; and

(b) by considering, fully and impartially, any views so presented.

EXECUTIVE POWER

4. (1) A Commissioner of the Northwest Territories must be appointed by order of the Governor in Council.

(2) The order appointing the Commissioner must be published in the Canada Gazette.

(3) The Commissioner must act in accord-ance with any written instructions given to him or her by the Governor in Council or the Minister.

(4) The Commissioner must, as soon as possible after receiving written instructions, make them available to the Executive Council of the Northwest Territories and cause them to be laid before the Legislative Assembly of the Northwest Territories, but the written instructions are effective when they are made.

5. (1) The Governor in Council may appoint a Deputy Commissioner to act as Commissioner during the Commissioner’s absence or inability or when that office is vacant.

(2) The senior judge, within the meaning of subsection 22(3) of the Judges Act, of the Supreme Court of the Northwest Territories is authorized to act as Deputy Commissioner during the Deputy Commissioner’s absence or inability or when that office is vacant.

6. Before assuming office, the Commissioner and the Deputy Commissioner must take and subscribe the oath of office and the oath of allegiance prescribed by the Governor in Council.

7. The salary of the Commissioner and of the Deputy Commissioner are to be fixed by the Governor in Council and paid out of the Consolidated Revenue Fund of Canada.

8. An Executive Council of the Northwest Territories is established, the members of which are to be appointed by the Commissioner.

9. The seat of the Government of the Northwest Territories is at Yellowknife or at another place in the Northwest Territories that is designated by the Legislature.

LEGISLATIVE POWER

Legislative Assembly of the Northwest Territories

10. The Council of the Northwest Territories established under the former Act is continued as the Legislative Assembly of the Northwest Territories. Each member of the Legislative Assembly is elected to represent an electoral district in the Northwest Territories.

11. (1) No Legislative Assembly is to continue for longer than five years after the day on which the writs are returned for a general election, but the Commissioner may dissolve it before then.

(2) Writs for the election of members of the Legislative Assembly are to be issued on the Commissioner’s instructions.

12. Before assuming office, each member of the Legislative Assembly must take and subscribe before the Commissioner the oath of office prescribed by the Legislature of the Northwest Territories and the oath of allegiance set out in the Fifth Schedule to the Constitution Act, 1867.

13. The Legislative Assembly must sit at least once every 12 months.

14. (1) The Legislative Assembly must elect one member as Speaker to preside over the Legislative Assembly when it is sitting.

(2) The Speaker may vote in the Legislative Assembly only in the case of a tie.

15. A majority of the members of the Legislative Assembly, including the Speaker, constitutes a quorum.

16. The Legislative Assembly may make rules for its operations and procedures, except in relation to the subjects set out in paragraph 18(1)(b).

Legislature of the Northwest Territories

17. The Commissioner in Council as defined in section 2 of the former Act is continued as the Legislature of the Northwest Territories; the Legislature consists of the Commissioner and the Legislative Assembly.

Legislative Powers

18. (1) The Legislature may make laws in relation to the following subjects in respect of the Northwest Territories:

(a) the election of members of the Legislative Assembly, including the name and number of electoral districts and the qualifications of electors and candidates;

(b) the disqualification of persons from sitting or voting as members of the Legislative Assembly and the privileges, indemnities and expenses of those members;

(c) the Executive Council;

(d) the establishment and tenure of public offices and the appointment, conditions of employment and payment of office-holders;

(e) municipal and local institutions;

(f) direct taxation and licensing in order to raise revenue for territorial, municipal or local purposes;

(g) the levying of a tax on furs — or any other parts of fur-bearing animals — that are to be shipped or taken from the Northwest Territories to any place outside the Northwest Territories;

(h) the incorporation of companies with territorial objects, except railway — other than street railway —, steamship, air transport, telegraph and telephone companies;

(i) the solemnization of marriage;

(j) property and civil rights;

(k) the administration of justice, including the constitution, maintenance and organization of territorial courts — of both civil and criminal jurisdiction — and procedure in civil matters in those courts;

(l) the establishment, maintenance and management of prisons and other places of confinement;

(m) the conservation of wildlife and its habitat;

(n) waters — the rights in respect of which are under the administration and control of the Commissioner — including the disposition under subsection 52(3) of those rights, the deposit of waste in those waters and what constitutes waste;

(o) education, but any law respecting education must provide that

(i) a majority of the ratepayers of any part of the Northwest Territories may establish any school in that part that they think fit and make the necessary assessment and collection of rates for it, and

(ii) the minority of the ratepayers of that part of the Northwest Territories — whether Protestant or Roman Catholic — may establish separate schools in that part and, if they do so, are liable to assessments of only the rates that they impose on themselves in respect of those schools;

(p) immigration;

(q) those public lands that are under the administration and control of the Commissioner, including their disposition under subsection 51(1);

(r) intoxicants, including what constitutes an intoxicant;

(s) hospitals and charities;

(t) agriculture;

(u) the entering into of intergovernmental agreements by the Commissioner or any other official of the Government of the Northwest Territories;

(v) the expenditure of money for territorial purposes;

(w) the adoption and use of an official seal;

(x) generally, all matters of a merely local or private nature;

(y) the imposition of fines, penalties, impris-onment or other punishments in respect of a contravention of a provision of a law of the Legislature; and

(z) any other subject that may be designated by order of the Governor in Council.

(2) The Legislature may make laws relating to the importation of intoxicants into the Northwest Territories from another part of Canada or elsewhere and defining what constitutes an intoxicant for the purposes of those laws.

19. (1) The Legislature may make laws in relation to the following subjects in respect of the onshore:

(a) exploration for non-renewable natural resources;

(b) the development, conservation and management of non-renewable natural resources and forestry resources, including the rate of primary production from those resources;

(c) oil and gas pipelines that are situated entirely in the onshore;

(d) the development, conservation and management of sites and facilities for the production of electrical energy; and

(e) the export, from the onshore to another part of Canada, of the primary production from non-renewable natural resources and forestry resources and of the electrical energy that is produced in the onshore.

(2) A law that is made under paragraph (1)(e) is not to authorize or provide for discrimination in prices or in supplies that are exported.

(3) The Legislature may make laws in relation to the raising of money by any mode of taxation in respect of resources referred to in paragraph (1)(b) and the primary production from those resources and in respect of sites and facilities referred to in paragraph (1)(d) and the production of electrical energy from those sites and facilities. The Legislature may make those laws even if the production is exported.

(4) A law that is made under subsection (3) is not to authorize or provide for taxation that differentiates between production that is exported and that which is not.

(5) In this section, “primary production” means

(a) production from a non-renewable natural resource if

(i) it is in the form in which the resource exists on its recovery or severance from its natural state, or

(ii) it results from processing or refining the resource and is not

(A) a manufactured product, or

(B) a product that results from refining crude oil, refining upgraded heavy crude oil, refining gases or liquids derived from coal or refining a synthetic equivalent of crude oil; and

(b) production from a forestry resource if the product consists of sawlogs, poles, lumber, wood chips, sawdust or any other primary wood product — or of wood pulp — and is not manufactured from wood.

(6) Nothing in subsections (1) to (5) derogates from any powers that the Legislature has under this Act.

20. The Legislature may make laws in relation to access to the public lands that are under the administration of a federal minister and to the waters overlying those lands, including the compensation that is to be paid in respect of that access.

21. Laws of the Legislature that are made in relation to public highways apply to roads identified in the Tlicho Agreement — as if they were on public lands — if the Tlicho Agreement provides that those laws apply to those roads.

22. (1) Despite sections 18 and 19, the Legislature must not amend a law of the Legislature without the consent of the Governor in Council if the law as amended would

(a) affect the unitization of those straddling resources that are referred to in the Agreement for Coordination and Cooperation in the Management and Administration of Petroleum Resources in the Inuvialuit Settlement Region that was made on June 25, 2013, as amended from time to time; or

(b) limit how that agreement applies to or is implemented by the Government of the Northwest Territories.

(2) Despite sections 18 and 19, during the period of 20 years beginning on the day on which section 1 comes into force, the Legislature must not amend a law of the Legislature without the consent of the Governor in Council if the law as amended would affect the regulatory functions of the National Energy Board in that part of the Inuvialuit Settlement Region — as defined in section 2 of the Inuvialuit Final Agreement — that is situated in the onshore.

23. Only a federal minister may, in relation to a federal appurtenant undertaking, exercise the following powers and functions under a law of the Legislature:

(a) approve the issuance, renewal or amendment of a licence permitting the use of waters or the deposit of waste in waters;

(b) consent to a declaration by a water board that an amendment to such a licence — as a result of which the use, flow or quality of waters would be altered — is required on an emergency basis;

(c) approve the form of any security posted in respect of such a licence;

(d) hold and apply the security;

(e) exercise powers that are substantially the same as those set out in section 39 of the Northwest Territories Waters Act, as it read immediately before the coming into force of section 1;

(f) issue policy directions to a water board that may issue, renew or amend such a licence; and

(g) designate inspectors and grant them powers that are substantially the same as those set out in section 37 or 44.02 of the Northwest Territories Waters Act, as they read immediately before the coming into force of section 1.

24. For every five members who are appointed to a water board that may — under a law of the Legislature — issue, renew or amend a licence permitting the use of waters or the deposit of waste in waters, one must be nominated by a federal minister.

25. (1) Nothing in subsection 18(1) or section 19 must be construed as giving the Legislature greater powers than are given to legislatures of provinces under sections 92, 92A and 95 of the Constitution Act, 1867.

(2) Despite subsection 18(1) and sections 19 and 20, the Legislature must not make laws in respect of the right to the use and flow of waters for the production or generation of water power to which the Dominion Water Power Act applies.

26. Despite subsection 25(1), the Legislature may, in exercising its powers under sections 18 and 19 for the purpose of implementing an Aboriginal land claim agreement or a self-government agreement, make laws that are in relation to the matters coming within class 24 of section 91 of the Constitution Act, 1867.

27. Despite subsection 25(1), any law of the Legislature that is in relation to the conservation of wildlife applies, unless the contrary intention appears in it, to and in respect of Aboriginal people.

28. (1) The Legislature may make laws for the

(a) borrowing of money by the Commissioner on behalf of the Northwest Territories for territorial, municipal or local purposes;

(b) making of loans to persons; and

(c) investing by the Commissioner of surplus money standing to the credit of the Consolidated Revenue Fund of the Northwest Territories.

(2) The aggregate of all borrowings is not to exceed the maximum amount set under subsection (4).

(3) The repayment of money borrowed under a law made under paragraph (1)(a) — and the payment of interest on that money — is a charge on and is payable out of the Consolidated Revenue Fund of the Northwest Territories.

(4) The Governor in Council may, on the recommendation of the Minister of Finance, set the maximum amount of the aggregate of all borrowings.

(5) The Governor in Council may, on the recommendation of the Minister of Finance, make regulations respecting borrowings for the purposes of subsections (2) and (4), including regulations

(a) respecting what constitutes, or is deemed to constitute, borrowing;

(b) respecting the entities, or classes of entities, whose borrowings are to be taken into account; and

(c) respecting the manner in which the value of a borrowing must be determined.

29. (1) The Governor in Council may, in writing, direct the Commissioner to withhold his or her assent to a bill that has been introduced in the Legislative Assembly.

(2) A bill in respect of which a direction is given must not become law without the Governor in Council’s assent, which is not to be given later than one year after the day on which the bill is adopted by the Legislative Assembly.

30. (1) A copy of every law of the Legislature must be transmitted by the Clerk of the Legislative Assembly to the Governor in Council within 30 days after the day on which it is made.

(2) The Governor in Council may disallow any law of the Legislature or any provision of such a law at any time within one year after the day on which it is made.

31. In the event of a conflict between a law of the Legislature and a federal enactment, the federal enactment prevails to the extent of the conflict.

32. (1) The ordinance entitled the Official Languages Act — made on June 28, 1984 by the Commissioner in Council, as amended on June 26, 1986 or by an Act referred to in section 33 — must not be amended, repealed or rendered inoperable by the Legislature without the concurrence of Parliament by way of an amendment to this Act.

(2) Nothing in subsection (1) is to be construed as preventing the Commissioner, the Legislature or the Government of the Northwest Territories from granting rights in respect of, or providing services in, English, French or a language of an Aboriginal people of Canada — in addition to the rights and services provided for in the Official Languages Act referred to in subsection (1) — whether by amendment, without the concurrence of Parliament, or by any other means.

33. (1) Parliament concurs in An Act to amend the Official Languages Act, made on October 29, 1990 by the Commissioner in Council.

(2) Parliament concurs in An Act to amend the Official Languages Act, made on March 12, 1992 by the Commissioner in Council.

CONSOLIDATED REVENUE FUND OF THE NORTHWEST TERRITORIES

34. (1) All public moneys over which the Legislature has the power of appropriation are to form a fund to be known as the Consolidated Revenue Fund of the Northwest Territories.

(2) The member of the Executive Council designated for that purpose by a law of the Legislature must establish, in the name of the Government of the Northwest Territories, accounts for the deposit of public moneys with

(a) banks as defined in section 2 of the Bank Act; or

(b) authorized foreign banks, as defined in section 2 of the Bank Act, that are not subject to the restrictions and requirements referred to in subsection 524(2) of that Act.

35. The Legislative Assembly must not adopt or pass any vote, resolution, address or bill — for the appropriation of public moneys, or of any tax, for any purpose — that has not been first recommended to the Legislative Assembly by message of the Commissioner in the session in which the vote, resolution, address or bill is proposed.

36. If a sum of money is granted to Her Majesty in right of Canada by Parliament to defray expenses for a specified public service in the Northwest Territories, the power of appropriation by the Legislature over that sum is subject to the purpose for which it is granted.

PUBLIC ACCOUNTS OF THE NORTHWEST TERRITORIES

37. The fiscal year of the Government of the Northwest Territories is the period beginning on April 1 in one year and ending on March 31 in the next year.

38. The Commissioner, with the consent of the Executive Council, must lay before the Legislative Assembly — on or before the day of each fiscal year that the Legislative Assembly fixes — a report called the Public Accounts of the Northwest Territories for the preceding fiscal year; the Legislative Assembly must consider the report.

39. The Public Accounts of the Northwest Territories must be prepared in any form that the Commissioner, with the consent of the Executive Council, directs and are to include

(a) consolidated financial statements for the Government of the Northwest Territories, prepared in accordance with Canadian public sector accounting standards;

(b) any other information or statements that are required in support of those consolidated financial statements under any law of the Legislature; and

(c) the opinion of the Auditor General of Canada that is referred to in subsection 40(1).

40. (1) The Auditor General of Canada must audit the accounts — including those related to the Consolidated Revenue Fund of the Northwest Territories — and financial transactions of the Government of the Northwest Territories in each fiscal year in accordance with Canadian generally accepted auditing standards and must express his or her opinion as to whether

(a) the consolidated financial statements present fairly — in all material respects and in accordance with Canadian public sector accounting standards — the financial situation of the Government of the Northwest Territories as at the end of the fiscal year; and

(b) the transactions of the Government of the Northwest Territories that have come to the notice of the Auditor General in the course of the audit are within the powers of that Government under this or any other Act of Parliament.

(2) The Auditor General must report to the Legislative Assembly any matter falling within the scope of the audit that, in his or her opinion, ought to be reported to the Assembly.

41. The Auditor General of Canada may, at any time, inquire into and submit a supplementary report to the Legislative Assembly about any matter relating to the activities of the Government of the Northwest Territories, including whether

(a) accounts have not been faithfully and properly maintained or public money has not been fully accounted for or paid, if so required by law, into the Consolidated Revenue Fund;

(b) essential records have not been maintained or the rules and procedures applied have been insufficient to safeguard and control public property, to secure an effective check on the assessment, collection and proper allocation of the revenue and to ensure that expenditures have been made only as authorized;

(c) money has been expended for purposes other than those for which it was appropriated by the Legislature or has been expended without due regard to economy or efficiency; or

(d) satisfactory procedures have not been established to measure and report the effectiveness of programs, if such procedures could appropriately and reasonably be implemented.

42. At the Commissioner’s request, made with the consent of the Executive Council, the Auditor General of Canada may — if in his or her opinion it does not interfere with the Auditor General’s primary responsibilities — inquire into and report to the Legislative Assembly on any

(a) matter relating to the financial affairs of the Government of the Northwest Territories or to public property in the Northwest Territories; or

(b) person or organization that has received or is seeking financial aid from the Government of the Northwest Territories.

43. (1) For the purposes of carrying out his or her functions under this Act, the Auditor General of Canada has all the powers that he or she has under the Auditor General Act.

(2) Except as provided by any law of the Legislature that expressly refers to this subsection, the Auditor General is entitled to free access at all convenient times to information that relates to the fulfilment of his or her responsibilities and is entitled to require and receive from the public service of the Northwest Territories any information, reports and explanations that he or she considers necessary for that purpose.

ADMINISTRATION OF JUSTICE

Judicature

44. The Governor in Council must appoint the judges of any superior, district or county courts in the Northwest Territories.

45. The judges of the superior, district and county courts in the Northwest Territories hold office during good behaviour but are removable by the Governor General on address of the Senate and House of Commons and cease to hold office on attaining the age of 75 years.

Supreme Court of the Northwest Territories

46. A judge — other than a deputy judge— of the Yukon Supreme Court or the Nunavut Court of Justice is, by reason of holding that office, a judge of the Supreme Court of the Northwest Territories.

47. (1) The Governor in Council may appoint any person who is or has been a judge of a superior, district or county court of a province or a barrister or advocate of at least 10 years standing at the bar of a province to be a deputy judge of the Supreme Court of the Northwest Territories and fix his or her remuneration and allowances.

(2) A deputy judge may be appointed for any particular case or cases or for any specified period.

(3) A deputy judge holds office during good behaviour but is removable by the Governor General on address of the Senate and House of Commons.

(4) A deputy judge must be sworn to the faithful performance of his or her duties in the same manner as a judge of the Supreme Court of the Northwest Territories and, during his or her appointment, has and may exercise and perform all the powers, duties and functions of a judge of that Court.

48. The Supreme Court of the Northwest Territories has and may exercise and perform— in Yukon or Nunavut — all of its powers, duties and functions with respect to a civil case other than one for which the Court sits with a jury.

49. (1) A judge of the Supreme Court of the Northwest Territories has and may exercise and perform — anywhere in Canada — all of its powers, duties and functions with respect to any criminal offence committed or charged to have been committed in the Northwest Territories.

(2) All laws applicable to criminal proceedings held in the Northwest Territories apply in like manner to proceedings held under this section elsewhere in Canada.

(3) Any judgment, conviction, sentence or other order pronounced or made in any proceedings held under this section outside the Northwest Territories may be enforced at the place at which it is pronounced or made — or elsewhere, either in or outside the Northwest Territories, as the judge may direct — and the proper officers of the Northwest Territories have and may exercise all powers and authority necessary for its enforcement at the place where it is directed to be enforced, even if that place is not in the Northwest Territories.

Court of Appeal of the Northwest Territories

50. The Court of Appeal of the Northwest Territories may sit in the Northwest Territories or, unless a law of the Legislature provides otherwise, elsewhere in Canada.

PUBLIC LANDS AND WATERS

Administration and Control

51. (1) The Commissioner has the administration and control of public lands and may use, sell or otherwise dispose of those lands and retain the proceeds of the disposition.

(2) Despite subsection (1), the Commissioner does not have the administration and control of the following public lands unless they are transferred to him or her under section 54:

(a) those listed under subsection (3);

(b) those in respect of which the administration and control is relinquished by the Commissioner under section 53;

(c) those in respect of which the administration and control is taken by the Governor in Council under section 55; and

(d) those acquired by Her Majesty in right of Canada after the coming into force of section 1.

(3) The Governor in Council must, on the day on which section 1 comes into force, list the public lands that are excluded from the administration and control of the Commissioner.

52. (1) All rights in respect of waters belong to Her Majesty in right of Canada.

(2) Subsection (1) is subject to any rights granted by or under an Act of Parliament in respect of waters.

(3) The Commissioner has the administration and control of all rights in respect of waters and may exercise those rights or sell or otherwise dispose of them and may retain the proceeds of the disposition.

(4) Despite subsection (3), the Commissioner does not have the administration and control of

(a) the right to the use and flow of waters for the production or generation of water power to which the Dominion Water Power Act applies; and

(b) the following rights in respect of waters unless the administration and control of them is transferred to him or her under section 54:

(i) those listed under subsection (5),

(ii) those in respect of which the administration and control is relinquished by the Commissioner under section 53,

(iii) those in respect of which the administration and control is taken by the Governor in Council under section 55, and

(iv) those acquired by Her Majesty in right of Canada after the coming into force of section 1.

(5) The Governor in Council must, on the day on which section 1 comes into force, list the rights in respect of waters that are excluded from the administration and control of the Commissioner.

53. The Commissioner may, with the Governor in Council’s consent, relinquish — in perpetuity or for any lesser term — the administration and control of public lands and of rights in respect of waters.

54. The Governor in Council may, with the Commissioner’s consent, transfer to the Commissioner — in perpetuity or for any lesser term — the administration and control of public lands and of rights in respect of waters.

Restrictions

55. (1) The Governor in Council may, on the Minister’s recommendation, take from the Commissioner the administration and control of public lands and rights in respect of waters if, subject to subsection (2), the Governor in Council considers it necessary to do so for the purposes of

(a) the national interest, including

(i) national defence or security,

(ii) establishing — or changing the boundaries of — a national park as defined in subsection 2(1) of the Parks Canada Agency Act, a national historic site as defined in that subsection or another area that is protected under an Act of Parliament, and

(iii) the creation of the infrastructure required for initiatives in respect of transportation or energy;

(b) the fulfilment of an obligation in respect of an Aboriginal or treaty right that is referred to in section 35 of the Constitution Act, 1982; or

(c) the settlement of an Aboriginal land claim or the implementation of an Aboriginal land claim agreement or other treaty, a settlement agreement or a self-government agreement.

(2) The Minister must — before recommending the taking of the administration and control other than for a purpose related to national defence or security — consult the member of the Executive Council who is responsible for those public lands or those rights in respect of waters and any affected Aboriginal party on the boundaries of the lands that, and the location of the waters the rights in respect of which, are subject to the taking.

56. The Governor in Council may, by order and on the Minister’s recommendation, prohibit the issuance under a law of the Legislature of interests in — or the authorization under a law of the Legislature of the conduct of activities on — the public lands that are specified in the order if the Governor in Council considers that the prohibition is required

(a) before the taking of the administration and control of those lands under paragraph 55(1)(a) or (b); or

(b) for the purposes of the settlement of an Aboriginal land claim or the implementation of an Aboriginal land claim agreement or other treaty, a settlement agreement or a self-government agreement.

57. The Governor in Council may, by order and on the Minister’s recommendation, prohibit any use of waters that is specified in the order — or the deposit of waste directly or indirectly into those waters — if the Governor in Council considers

(a) that the use or deposit would be incompatible with or would interfere with a particular undertaking that is in the national interest; or

(b) that the prohibition is required for the purposes of the settlement of an Aboriginal land claim or the implementation of an Aboriginal land claim agreement or other treaty, a settlement agreement or a self-government agreement.

58. The Minister must — before recommending that the Governor in Council make a prohibition order under section 56 or 57 — consult the member of the Executive Council who is responsible for those public lands or those waters and any affected Aboriginal party on

(a) the boundaries of the lands — and the interests or activities — that are the subject of the order to be made under section 56; and

(b) the location of the waters that are the subject of the order to be made under section 57.

Compensation

59. (1) Subject to subsection (2), the following are to be done without expenditures by or compensation to the Government of the Northwest Territories:

(a) a relinquishment under section 53;

(b) a taking under section 55; and

(c) the making of a prohibition order under section 56 or 57.

(2) If the Commissioner relinquishes to the Governor in Council, or the Governor in Council takes, the administration and control of public lands, the Government of Canada must compensate the Government of the Northwest Territories for any improvements that it has made to those lands.

(3) As soon as practicable after the relinquishment or the taking, the Government of Canada and the Government of the Northwest Territories are to attempt to reach an agreement on the amount of compensation.

(4) If the Government of Canada and the Government of the Northwest Territories are unable to reach an agreement, they are to refer the matter to an agreed upon person with expertise in determining the value of improvements to land.

(5) That person must determine that value on a basis similar to the determination of the fair actual value of the improvements — at the time the Governor in Council takes or has relinquished to it the administration and control of the lands — calculated in accordance with the method for calculating the fair actual value of improvements to land set out in a law of general application of the Legislature relating to the assessment of taxes on real property. That value is the amount of compensation.

Agreements

60. With the approval of the Governor in Council and subject to any agreement entered into under section 5 or 11 of the Canada Water Act, the Minister may, on behalf of the Government of Canada, enter into an agreement with a provincial government providing for the management of any waters that

(a) are

(i) partially on lands situated in the Northwest Territories that are under the administration of a federal minister, and

(ii) partially on lands that are not under the administration of a federal minister; or

(b) flow between

(i) lands situated in the Northwest Territories that are under the administration of a federal minister, and

(ii) lands that are not under the administration of a federal minister.

AMENDING THIS ACT

61. (1) Before a bill that amends or repeals this Act is introduced in the House of Commons by a federal minister, the Minister must consult the Executive Council with respect to the proposed amendment or repeal.

(2) The Legislative Assembly may make any recommendations to the Minister that it considers appropriate with respect to the amendment or the repeal of this Act.

TRANSITIONAL PROVISIONS

62. An ordinance, as defined in section 2 of the former Act, is continued as a law of the Legislature of the Northwest Territories.

63. (1) The Commissioner, as defined in section 2 of the former Act, who is in office immediately before the coming into force of section 1 continues in office.

(2) The Deputy Commissioner — appointed under subsection 4(1) of the former Act — who is in office immediately before the coming into force of section 1 continues in office.

64. The members of the Executive Council — chosen or appointed under subsection 61(1) of the Legislative Assembly and Executive Council Act, S.N.W.T. 1999, c. 22 — who are in office immediately before the coming into force of section 1 continue in office as members of the Executive Council established under section 8.

65. Despite subsection 11(1), the members of the Council — as defined in section 2 of the former Act — who are in office immediately before the coming into force of section 1 continue in office as members of the Legislative Assembly for the remainder of the period provided under subsection 9(3) of the former Act, but the Commissioner may dissolve the Legislative Assembly before then.

66. The Speaker, elected under subsection 12(1) of the former Act, who is in office immediately before the coming into force of section 1 continues in office.

67. (1) Judges, appointed under section 32 of the former Act, who are in office immediately before the coming into force of section 1 continue in office.

(2) Deputy judges, appointed under subsection 35(1) of the former Act, who are in office immediately before the coming into force of section 1 continue in office.

68. The following definitions apply in sections 69 to 71, 73 and 74.

“encumbering right” means a right referred to in section 7(94) of the Inuvialuit Final Agreement, an interest referred to in section 18.5 of the Gwich’in Agreement, section 19.5 of the Sahtu Agreement or section 18.6 of the Tlicho Agreement or a similar right or interest referred to in another settlement agreement.

“existing interest” means

(a) a right or interest that exists — immediately before the coming into force of section 1 — under an Act of Parliament that is repealed or rendered inapplicable to such a right or interest by an Act of Parliament that implements the Agreement;

(b) a right or interest that exists — immediately before that coming into force — under an access order, a permit, licence or other authorization, a lease or an agreement for lease or sale that is issued, granted or otherwise obtained under an Act of Parliament that is repealed or rendered inapplicable to such a right or interest by an Act of Parliament that implements the Agreement;

(c) a right or interest that exists immediately before that coming into force under a licence — as defined in section 51 of the Mackenzie Valley Resource Management Act as it read immediately before that coming into force — other than a licence that is in relation to a federal area as defined in section 51 of the Mackenzie Valley Resource Management Act;

(d) a right or interest that is a renewal, replacement or successor of a right or interest referred to in paragraph (a), (b) or (c) if a right to that renewal, replacement or successor exists immediately before that coming into force; or

(e) a licence that

(i) is valid immediately before the coming into force of section 1 and the giving of which was subject to the Federal Real Property and Federal Immovables Act, or

(ii) is a renewal, replacement or successor of such a licence if a right to that renewal, replacement or successor exists immediately before that coming into force.

For greater certainty, it includes a right or interest referred to in paragraph (a), (b), (c), (d) or (e) that is an encumbering right, as well as an interest referred to in subsection 117.2(1) of the Canada Petroleum Resources Act that is in respect of the portion of those lands situated in the onshore.

69. (1) An existing interest must, subject to subsections (2) to (4), be administered and governed in accordance with any law of the Legislature.

(2) A law of the Legislature may provide for additional conditions in respect of the exercise of an existing interest only if those conditions are applicable to similar rights or interests that are issued, granted or otherwise obtained under a law of the Legislature.

(3) A law of the Legislature may, in respect of an existing interest, provide for its limitation, suspension or cancellation only if

(a) the circumstances for its limitation, suspension or cancellation are identical to those that would have applied immediately before the coming into force of section 1; or

(b) subject to subsection (4), its limitation, suspension or cancellation is for a failure to comply with a condition in respect of the exercise of the existing interest and the law applies to all similar rights or interests.

(4) A law of the Legislature must not provide for the limitation, suspension or cancellation of an existing interest under paragraph (3)(b) if it arose from

(a) a recorded claim, a lease or a permit, as those terms are defined in subsection 2(1) of the Northwest Territories and Nunavut Mining Regulations; or

(b) an interest as defined in section 2 of the Canada Petroleum Resources Act.

(5) An existing interest — other than one described in paragraph (c) of the definition “existing interest” in section 68 — continues in full force and effect until the earliest of the following takes place:

(a) it expires or is surrendered,

(b) with the agreement of the holder, it is cancelled and replaced by a right or interest issued or granted by the Government of the Northwest Territories,

(c) in the case of an encumbering right, it is — with the agreement of the holder and the relevant Aboriginal organization — cancelled under a settlement agreement,

(d) it is limited, suspended or cancelled under a law of the Legislature referred to in subsection (3), or

(e) it is expropriated and its holder is compensated under a law of the Legislature.

70. Any reference to the Government of Canada or the Minister in an instrument evidencing an existing interest must be read as a reference to the Government of the Northwest Territories.

71. Every proceeding — other than a civil or criminal one that is before a court — with respect to a right or interest that is referred to in paragraph (a), (b), (c) or (e) of the definition “existing interest” in section 68 that is in progress immediately before the coming into force of section 1 must be taken up and continued under and in conformity with the laws of the Legislature without any further formality.

72. A law of the Legislature that specifically provides that it applies to matters governed by section 45, 46, 47, 57, 58 or 59 of the Northwest Territories Act, the Canada Oil and Gas Operations Act, the Territorial Lands Act, the Canada Petroleum Resources Act, the Federal Real Property and Federal Immovables Act, the Northwest Territories Waters Act or the Northwest Territories Surface Rights Board Act — as they read immediately before the coming into force of section 1 — is considered for all purposes to have been validly made if it is made before that coming into force and would have been valid if made after that coming into force. However, it has no force and effect before that coming into force.

73. (1) The Government of the Northwest Territories must indemnify the Government of Canada, or any of its employees or agents, against all costs, charges and expenses, including amounts paid to settle an action or to satisfy a judgment, that are reasonably incurred in respect of any claim, action or other proceeding brought against the Government of Canada, or any of its employees or agents, arising out of any act or omission of the Government of the Northwest Territories, or any of its employees or agents, occurring

(a) after the coming into force of section 1, in respect of

(i) public lands that are under the administration and control of the Commissioner other than those that are under his or her administration and control immediately before that coming into force,

(ii) rights in respect of waters that are under the administration and control of the Commissioner, or

(iii) existing interests;

(b) in respect of security that is assigned to the Government of the Northwest Territories under the Agreement;

(c) in respect of records that are copied, loaned or transferred under the Agreement unless the act or omission is made under the Agreement; or

(d) in respect of remediation that is performed under the Agreement.

(2) The Government of the Northwest Territories must indemnify the Government of Canada, or any of its employees or agents, against all costs, charges and expenses, including amounts paid to settle an action or satisfy a judgment, that are reasonably incurred in respect of any claim, action or other proceeding brought against the Government of Canada, or any of its employees or agents, arising out of a failure by the Government of the Northwest Territories, or any of its employees or agents, to meet its obligations under the Agreement in respect of a federal employee.

74. (1) The Government of Canada must indemnify the Government of the Northwest Territories, or any of its employees or agents, against all costs, charges and expenses, including amounts paid to settle an action or satisfy a judgement, that are reasonably incurred in respect of any claim, action or other proceeding brought against the Government of the Northwest Territories, or any of its employees or agents, arising out of any act or omission of the Government of Canada, or any of its employees or agents, occurring

(a) before the coming into force of section 1, in respect of

(i) public lands that are under the administration and control of the Commissioner other than those that were under his or her administration and control before that coming into force,

(ii) rights in respect of waters that are under the administration and control of the Commissioner, or

(iii) existing interests;

(b) in respect of a taking under section 55 or the making of a prohibition order under section 56 or 57;

(c) in respect of security that is assigned to the Government of the Northwest Territories under the Agreement;

(d) in respect of records that are copied, loaned or transferred under the Agreement; or

(e) in respect of remediation that is performed under the Agreement.

(2) The Government of Canada must indemnify an Aboriginal party, or any of its employees or agents, against all costs, charges and expenses, including amounts paid to settle an action or satisfy a judgement, that are reasonably incurred in respect of any claim, action or other proceeding brought against that Aboriginal party, or any of its employees or agents, arising out of any act or omission of the Government of Canada, or any of its employees or agents, occurring in respect of remediation performed under the Agreement on that Aborig-inal party’s settlement lands.

75. The Government of Canada, the Government of the Northwest Territories or an Aboriginal party — or an employee or agent of any of them — is not entitled to be indemnified under section 73 or 74 if the claim, action or proceeding is settled out of court without the written consent of the Government that is required to provide the indemnity.

76. After the coming into force of section 1, the Government of the Northwest Territories may, despite section 71 and to the exclusion of any other person or entity, commence or continue enforcement actions — under an Act of Parliament that is repealed or rendered inapplicable in respect of the onshore on the coming into force of that section — other than one that is before a court on the coming into force of that section.

77. (1) Communication under the Agreement by the Government of Canada to the Government of the Northwest Territories of information, however recorded, that is subject to solicitor-client privilege does not constitute a waiver of that privilege.

(2) No employee or agent of the Government of the Northwest Territories is, except with the Minister’s written permission, to knowingly communicate or make available any information referred to in subsection (1) — or permit it to be communicated or made available — to a person who is not an employee or agent of that Government.

78. (1) In the case of a contract that is to be assigned by the Government of Canada to the Government of the Northwest Territories under the Agreement, the contract must be assigned even if

(a) the contract does not allow for the assignment; or

(b) a party’s consent to the assignment is required under the contract and the party does not consent.

(2) The Government of Canada must compensate the parties for costs or losses arising from an assignment referred to in subsection (1).

79. (1) Section 61 of the Financial Administration Act does not apply to a transfer of public property, as defined in section 2 of that Act, that is made under the Agreement.

(2) The Federal Real Property and Federal Immovables Act does not apply to a disposition that is made under the Agreement of

(a) federal real property as defined in section 2 of that Act; or

(b) federal immovables as defined in that section.

AMENDMENT TO THIS ACT

80. Subsections 4(3) and (4) are repealed 10 years after the day on which section 1 comes into force.

Amendments to Other Acts

Access to Information Act

3. Schedule I to the Access to Information Act is amended by striking out the following under the heading “OTHER GOVERNMENT INSTITUTIONS”:

Northwest Territories Surface Rights Board

Northwest Territories Water Board

Arctic Waters Pollution Prevention Act

4. The definition “analyst” in section 2 of the Arctic Waters Pollution Prevention Act is replaced by the following:

“analyst” means a person designated as an analyst under the Canada Water Act, the Mackenzie Valley Resource Management Act or the Nunavut Waters and Nunavut Surface Rights Tribunal Act;

Canada Evidence Act

5. Subsection 22(2) of the Canada Evidence Act is replaced by the following:

(2) Evidence of any proclamation, order, regulation or appointment made by the Lieu-tenant Governor or Lieutenant Governor in Council of the Northwest Territories, as constituted prior to September 1, 1905, or by the Legislature of Yukon, of the Northwest Territories or for Nunavut, may be given by the production of a copy of the Canada Gazette purporting to contain a copy of the proclamation, order, regulation or appointment, or a notice of it.

Canada Water Act

6. The definition “federal waters” in subsection 2(1) of the Canada Water Act is replaced by the following:

“federal waters” means — other than in Yukon and the Northwest Territories — waters under the exclusive legislative jurisdiction of Parliament and

(a) in Yukon, waters in a federal conservation area as defined in section 2 of the Yukon Act, and

(b) in the Northwest Territories, waters other than those in respect of which the Legislature of the Northwest Territories may make laws under paragraph 18(1)(n) of the Northwest Territories Act;

Crown Liability and Proceedings Act

7. The definition “servant” in section 2 of the Crown Liability and Proceedings Act is replaced by the following:

“servant” includes agent, but does not include any person appointed or employed by or under the authority of a law of the Legislature of Yukon, of the Northwest Territories or for Nunavut;

Electoral Boundaries Readjustment Act

8. Section 30 of the Electoral Boundaries Readjustment Act is replaced by the following:

30. In each of Yukon, the Northwest Territories and Nunavut, there shall be one electoral district respectively named and described as follows, each of which shall return one member:

Yukon: consisting of Yukon as bounded and described in Schedule 1 to the Yukon Act.

Western Arctic: consisting of the Northwest Territories as bounded and described in the definition “Northwest Territories” in section 2 of the Northwest Territories Act.

Nunavut: consisting of Nunavut as bounded and described in section 3 of the Nunavut Act.

Excise Tax Act

9. Subsection 2(2) of the Excise Tax Act is replaced by the following:

(2) For the purposes of this Act, the expression “Her Majesty in right of a province” includes the governments of Yukon, the Northwest Territories and Nunavut and the expression “legislature of any province” includes the Legislative Assembly of Yukon, the Northwest Territories or Nunavut.

Federal-Provincial Fiscal Arrangements Act

10. (1) The portion of section 4.7 of the French version of the Federal-Provincial Fiscal Arrangements Act before paragraph (a) is replaced by the following:

(2) Section 4.7 of the Act is renumbered as subsection 4.7(1) and is amended by adding the following:

(2) The Minister may recover, from any amount payable under this Part to the Northwest Territories, the amount, as determined by the Minister, that is computed under section 10.2 of the Northwest Territories Lands and Resources Devolution Agreement that was made on June 25, 2013, as amended from time to time.

Canadian Human Rights Act

11. Subsection 66(3) of the Canadian Human Rights Act is repealed.

Importation of Intoxicating Liquors Act

12. The definition “province” in section 2 of the Importation of Intoxicating Liquors Act is replaced by the following:

“province” means any province — other than Yukon and the Northwest Territories — in which there is in force an Act giving the government of the province or any board, commission, officer or other governmental agency control over the sale of intoxicating liquor in that province;

Department of Indian Affairs and Northern Development Act

13. Section 6 of the Department of Indian Affairs and Northern Development Act is replaced by the following:

6. (1) The Minister has the administration of lands situated in Nunavut belonging to Her Majesty in right of Canada except those lands

(a) that are under the administration of any other minister of the Government of Canada or any agent corporation as defined in subsection 83(1) of the Financial Administration Act; or

(b) that are under the administration and control of the Commissioner of Nunavut under the Nunavut Act.

(2) The Minister has the administration of public real property as defined in section 2 of the Yukon Act — and public lands as defined in section 2 of the Northwest Territories Act — except that public real property or those public lands, as the case may be, that are under

(a) the administration of another minister of the Government of Canada or any agent corporation as defined in subsection 83(1) of the Financial Administration Act; or

(b) the administration and control of the Commissioner of Yukon or the Commissioner of the Northwest Territories, as the case may be, under the applicable Act.

Interpretation Act

14. (1) The definition “legislative assembly”, “legislative council” or “legislature” in subsection 35(1) of the Interpretation Act is repealed.

(2) The definitions “Act” and “lieutenant governor in council” in subsection 35(1) of the Act are replaced by the following:

“Act”, in respect of an Act of a legislature, includes a law of the Legislature of Yukon, of the Northwest Territories or for Nunavut;

“lieutenant governor in council” means

(a) the lieutenant governor of the province indicated by the enactment acting by and with the advice of, by and with the advice and consent of, or in conjunction with, the executive council,

(b) in Yukon, the Commissioner of Yukon acting with the consent of the Executive Council of Yukon,

(c) in the Northwest Territories, the Commissioner of the Northwest Territories acting with the consent of the Executive Council of the Northwest Territories, and

(d) in Nunavut, the Commissioner;

(3) Subsection 35(1) of the Act is amended by adding the following in alphabetical order:

“legislative assembly” or “legislature” includes the Lieutenant Governor in Council and the Legislative Assembly of the Northwest Territories, as constituted before September 1, 1905, and the Legislature of Yukon, of the Northwest Territories or for Nunavut;

Canada Lands Surveys Act

15. Paragraph (b) of the definition “Commissioner” in subsection 2(1) of the Canada Lands Surveys Act is replaced by the following:

(b) in respect of lands under his or her administration and control under the Northwest Territories Act, the Commissioner of the Northwest Territories, and

16. Section 22 of the Act is replaced by the following:

22. The provisions of sections 17, 18 and 23 apply, with any modifications that the circumstances require, to surveys under any other Act of Parliament, or any regulation made under such an Act, or any law of the Legislature of Yukon, of the Northwest Territories or for Nunavut if the Act, regulation or law requires the surveys to be made by a Canada Lands Surveyor.

17. Subsection 32(2) of the French version of the Act is replaced by the following:

National Energy Board Act

18. The National Energy Board Act is amended by adding the following after section 12:

12.1 (1) The Board shall, for a period of 20 years beginning on the day on which this section comes into force, be the regulator —under any law of the Legislature of the Northwest Territories that is made under paragraph 19(1)(a), (b) or (c) of the Northwest Territories Act — in respect of that portion of the Inuvialuit Settlement Region, as defined in section 2 of the Canada Oil and Gas Operations Act, that is situated in the onshore as defined in section 2 of the Northwest Territories Act.

(2) The Government of Canada and the Government of the Northwest Territories may agree that the Board shall be the regulator for successive periods of 20 years each; they may also, before the expiry of each successive period, agree to its earlier termination.

Northern Pipeline Act

19. Paragraph 10(c) of the Northern Pipeline Act is replaced by the following:

(c) enter into such agreements with the government of a province, or with the government of Yukon or the Northwest Territories after consultation with the Legislature of Yukon or the Northwest Territories, as may be necessary to facilitate the attainment of the objects of this Act and to provide for coordination and review of the activities of the Agency and those governments in relation to the pipeline;

Canada Oil and Gas Operations Act

20. Section 2 of the Canada Oil and Gas Operations Act is amended by adding the following in alphabetical order:

“Agreement” means the Agreement for Coordination and Cooperation in the Management and Administration of Petroleum Resources in the Inuvialuit Settlement Region that was made on June 25, 2013, as amended from time to time.

“Inuvialuit Settlement Region” has the same meaning as in section 2 of the Agreement — as defined in section 2 of the Western Arctic (Inuvialuit) Claims Settlement Act — excluding any area in Yukon or in the adjoining area as defined in section 2 of the Yukon Act.

“onshore” has the same meaning as in section 2 of the Northwest Territories Act;

“straddling resource” means a pool or field that the National Energy Board determines under section 48.02

(a) is wholly or partly in the Inuvialuit Settlement Region, other than in Inuvialuit lands as defined in Article 2.1 of the Agreement, and

(b) straddles the offshore, as defined in section 48.01, and the onshore;

21. Paragraphs 3(a) and (b) of the Act are replaced by the following:

(a) that part of the onshore that is under the administration of a federal minister,

(b) Nunavut,

(c) Sable Island,

(d) that part — of the internal waters of Canada or the territorial sea of Canada — that is not situated

(i) in a province other than the Northwest Territories, or

(ii) in that part of the onshore that is not under the administration of a federal minister, and

(e) the continental shelf of Canada and the waters superjacent to the seabed of that continental shelf,

22. Subsection 5.01(2) of the Act is amended by striking out “and” at the end of paragraph (a) and by adding the following after that paragraph:

(a.1) in the case of land in the Northwest Territories, an order made by a territorial tribunal that is competent to resolve matters in dispute relating to access to the surface of lands; and

23. Section 5.1 of the Act is amended by adding the following after subsection (6):

(6.1) Despite subsection (4), the National Energy Board may approve a development plan in relation to developing a straddling resource, subject to

(a) the consent of the Governor in Council and the Executive Council of the Northwest Territories in relation to Part I of the plan; and

(b) any requirements that the Board considers appropriate or that may be prescribed.

(6.2) If the Governor in Council and the Executive Council of the Northwest Territories do not consent in relation to Part I of the plan, the Minister or the Government of the Northwest Territories may notify the other of their intention to refer the matter to an independent expert for a decision in accordance with section 48.095.

(6.3) The expert’s decision in relation to the development plan is deemed to be a development plan that is approved by the National Energy Board and in relation to Part I of the plan is deemed to be one that is consented to by the Governor in Council and the Executive Council of the Northwest Territories.

(6.4) If a development plan is approved under subsection (6.1) or deemed to be approved under subsection (6.3), no amendment is to be made to the plan unless it is approved by the National Energy Board and, in the case of an amendment to Part I of the plan, consented to by the Governor in Council and the Executive Council of the Northwest Territories.

(6.5) Subsections (6.1) to (6.4) apply, with any modifications that the circumstances require, in respect of a proposed amendment to a development plan.

24. The definition “unitization order” in section 29 of the Act is replaced by the following:

“unitization order” means an order that is made under section 41 or issued under section 48.092;

25. The Act is amended by adding the following after section 48:

Straddling Resources — Inuvialuit Settlement Region

Definitions

48.01 The following definitions apply in this section and in sections 48.02 to 48.096.

“notification area” means the following:

(a) that part of the offshore that is situated within 20 kilometres of the onshore; and

(b) that part of the onshore that is situated within 20 kilometres of the offshore.

“offshore” means that part of the Inuvialuit Settlement Region that is not situated in the onshore.

Determination

48.02 If the data obtained from conducting a survey or drilling an exploratory well — as defined in subsection 101(1) of the Canada Petroleum Resources Act — in the notification area provide sufficient information for the National Energy Board to determine that a pool or field exists, the Board shall

(a) determine whether the pool or field is a straddling resource;

(b) without delay notify the Minister and the Government of the Northwest Territories of its determination and the reasons for it; and

(c) on request, provide that Minister or that Government with the information that is in the Board’s possession and pertinent to that determination.

48.03 The Minister and the Government of the Northwest Territories shall, on request, provide the other with the information that is in their possession and is relevant to the proper and efficient exploration for and the management, administration and exploitation of the straddling resource.

Exploitation of Straddling Resources

48.04 (1) A straddling resource may be exploited as a single pool or field, as the case may be.

(2) An exploration or drilling program related to a straddling resource is, to the extent practicable, to be managed as a single exploration or drilling program.

48.05 (1) If an interest owner, as defined in section 2 of the Canada Petroleum Resources Act, advises the Minister or the National Energy Board — including by way of an application under section 38 of the Canada Petroleum Resources Act or paragraph 5(1)(b) of this Act, as the case may be — that it intends to start production of a straddling resource, the Minister shall, without delay, notify the Government of the Northwest Territories of the interest owner’s intention.

(2) If, after production commences, the National Energy Board determines that a pool or field is a straddling resource

(a) the Minister or the Government of the Northwest Territories — depending on the jurisdiction in which production com-menced — shall, without delay, notify the other of that determination; and

(b) either of them may give notice under section 48.06.

48.06 The Minister or the Government of the Northwest Territories may, by notice, require of the other that a pool or field that is a straddling resource be exploited as a single pool or field, as the case may be.

48.07 (1) The royalty owners and the working interest owners in respect of a straddling resource may enter into a unit agreement and, if it is approved under subsection 48.09(1), they shall operate their interests in accordance with it or any amendment to it.

(2) The working interest owners in respect of a straddling resource may enter into a unit operating agreement and, if it is approved under subsection 48.09(1), they shall operate their interests in accordance with it or any amendment to it.

(3) Unless the Minister and the Government of the Northwest Territories agree to an earlier termination, a unit agreement or a unit operating agreement remains in force until the later of

(a) the day on which commercial production from the straddling resources to which the agreement applies ends, and

(b) the day on which there are no outstanding obligations in respect of the decommissioning or the abandonment of the production system for a straddling resource to which the agreement applies.

48.08 If a straddling resource is required to be exploited as a single pool or field under section 48.06 and the working interest owners have not entered into a unit agreement and a unit operating agreement, the Minister shall order the working interest owners in the portion of the pool or field that is in the Minister’s jurisdiction to do so.

48.09 (1) A unit agreement and a unit operating agreement are subject to the approval of the Minister and the Government of the Northwest Territories. They are to be approved only if all royalty owners and working interest owners referred to in subsection 48.07(1) or all working interest owners referred to in subsection 48.07(2), as the case may be, are parties to the agreement.

(2) No authorization is to be issued under paragraph 5(1)(b) — and no development plan is to be approved under subsection 5.1(4) — in relation to the exploitation of a straddling resource if the unit agreement and the unit operating agreement are not approved under subsection (1).

48.091 If the royalty owners and the working interest owners in respect of a straddling resource do not enter into a unit agreement— and, in the case of the working interest owners, a unit operating agreement — within 90 days after the day on which the Minister orders the working interest owners to enter into those agreements under section 48.08, the Minister or the Government of the Northwest Territories may notify the other of their intention to refer the matter to an independent expert for a decision in accordance with section 48.095.

48.092 (1) The Minister shall issue a unitization order in accordance with the independ-ent expert’s final decision.

(2) The unit agreement and the unit operating agreement have the effect given them by the Minister’s order.

(3) A unitization order becomes effective only if the Government of the Northwest Territories issues an equivalent order.

(4) The issuance of a unitization order by the Minister and of an equivalent order by the Government of the Northwest Territories is deemed to be their joint approval of the unit agreement and the unit operating agreement.

(5) Subject to subsection (3), a unitization order becomes effective on the day established in the order, but that day is not to be less than 30 days after the day on which the order is issued.

48.093 The Minister, the Government of the Northwest Territories or a working interest owner may — in respect of future production — request a redetermination of

(a) the apportionment of the production from the straddling resource; or

(b) one or more of the elements set out in the unit agreement or the unit operating agreement.

48.094 If the royalty owners and the working interest owners in respect of a straddling resource do not enter into an agreement in respect of the redetermination under section 48.093 within 90 days after the day on which the request is made, the Minister or the Government of the Northwest Territories may notify the other of their intention to refer the matter to an independent expert for a decision in accordance with section 48.095.

48.095 (1) Within 90 days after the day on which the Minister or the Government of the Northwest Territories is notified under subsection 5.1(8) or section 48.091 or 48.094, the Minister and the Government shall appoint the independent expert.

(2) The independent expert must be impartial and independent and have knowledge or experience relevant to the matter.

(3) If the Minister and the Government of the Northwest Territories do not appoint the expert in accordance with subsection (1), each shall — within 30 days after the day on which the time to appoint an expert expires — submit to the other the names of up to two persons with the qualifications set out in subsection (2); they shall within 30 days after the day of submission select the independent expert from those persons by drawing lots and appoint that person as the independent expert.

(4) If the Minister or the Government of the Northwest Territories does not submit, select or appoint as required by subsection (3), they are deemed to make the same submission, selection or appointment — as the case may be — as the other and are bound by the decision of the independent expert.

(5) Within 90 days after the day on which they are seized of the matter or within any other period agreed to by the Minister and the Government of the Northwest Territories, the independent expert shall render a preliminary decision and the Minister and the Government are to be provided with it and the reasons for it, including any supporting documentation.

(6) The Minister or the Government of the Northwest Territories may — within 60 days after being provided with the preliminary decision — request the independent expert to clarify or reconsider that decision and make additional submissions to the independent expert.

(7) If the Minister or the Government of the Northwest Territories does so request and make such submissions, they shall provide the other with a copy of those submissions. The other may — within 15 days after the day on which they receive that copy — make further submissions and shall provide the other with a copy of them.

(8) Within 120 days after the day on which they render a preliminary decision, the independent expert shall render a final decision and the Minister and the Government of the Northwest Territories are to be provided with it and the reasons for it, including any supporting documentation.

(9) An independent expert’s final decision is final and binding on the Minister and the Government of the Northwest Territories and is not to be challenged on appeal or judicial review in any court except on the ground that the independent expert erred in law or exceeded the independent expert’s jurisdiction.

(10) If a person acts as an independent expert,

(a) the person is not to be called to give evidence, and is not compellable as a witness, in any legal proceedings related to the matter; and

(b) the person’s records related to the matter are not admissible as evidence in any legal proceedings related to the matter.

48.096 The Governor in Council may, if the Inuvialuit Regional Corporation agrees in writing under subsection 3.3(b) of the Agreement to be bound by a provision of Article 5 of the Agreement, make regulations adapting the definitions “Agreement”, “Inuvialuit Settlement Region” and “straddling resource” in section 2 and sections 48.01 to 48.095 accordingly.