Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to amend the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act and the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act and to make consequential amendments to other Acts”.

This enactment amends the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act and the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act to, among other things,

(a) change their titles to the Canada–Newfoundland and Labrador Atlantic Accord Implementation and Offshore Renewable Energy Management Act and the Canada–Nova Scotia Offshore Petroleum Resources Accord Implementation and Offshore Renewable Energy Management Act, respectively;

(b) change the names of the Canada–Newfoundland and Labrador Offshore Petroleum Board and the Canada-Nova Scotia Offshore Petroleum Board to the Canada–Newfoundland and Labrador Offshore Energy Regulator and the Canada–Nova Scotia Offshore Energy Regulator, respectively (“the Regulators”);

(c) establish the Regulators as the regulating bodies for offshore renewable energy projects;

(d) establish a land tenure regime for the issuance of submerged land licences to carry out offshore renewable energy projects, as well as the revenues regime associated with those licences and projects;

(e) establish a ministerial decision-making process respecting the issuance of submerged land licences and the Regulators’ exercise of certain powers or performance of certain duties;

(f) expand the application of the safety and environmental protection regime and its enforcement powers to include offshore renewable energy projects;

(g) provide that the Governor in Council may make regulations to prohibit the commencement or continuation of petroleum resource or renewable energy activities, or the issuance of interests, in respect of any portion of the offshore area that is located in an area that has been or may be identified as an area for environmental or wildlife conservation or protection;

(h) authorize negotiations for the surrender of an interest, the cancellation of an interest if negotiations fail and the granting of compensation to an interest owner for the surrender or cancellation;

(i) establish the regulatory and liability regime for abandoned facilities relating to petroleum-related works or activities or offshore renewable energy projects;

(j) expand the application of the occupational health and safety regime to offshore renewable energy projects;

(k) allow the federal or provincial governments to unilaterally fund certain expenses incurred by the Regulators as a result of specific requests made by that government;

(l) allow new methods to demonstrate the existence of significant hydrocarbon accumulations in a geological feature and limit the duration of future significant discovery licences to 25 years;

(m) provide that the Governor in Council may make regulations to regulate access to offshore infrastructure, including to enforce tolls and tariffs;

(n) establish a new transboundary hydrocarbon management regime to regulate fields or pools that straddle domestic and international administrative boundaries, enabling the implementation of the Canada-France transboundary fields agreement;

(o) remove references to the former Canadian Environmental Assessment Act, 2012 and, to align with the Impact Assessment Act, clarify the role of the Federal and Provincial Ministers and Regulators with respect to the conduct of impact assessments of designated projects as well as regional and strategic assessments; and

(p) specify that the Crown may rely on the Regulators for the purposes of consulting with the Indigenous peoples of Canada and that the Regulators may accommodate adverse impacts to existing Aboriginal and treaty rights recognized and affirmed by section 35 of the Constitution Act, 1982.

Finally, it makes consequential and terminological amendments to other Acts.

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

An Act to implement an agreement between the Government of Canada and the Government of Newfoundland and Labrador on offshore petroleum resource management and revenue sharing, to provide for the joint management of offshore renewable energy by those Governments and to make related and consequential amendments

Short title

1 This Act may be cited as the Canada–Newfoundland and Labrador Atlantic Accord Implementation and Offshore Renewable Energy Management Act.

offshore area means

• (a) in the case of petroleum, those submarine areas lying seaward of the low water mark of the Province and extending, at any location, as far as

  • (i) any prescribed line, or

  • (ii) if no line is prescribed at that location, the outer edge of the continental margin or a distance of two hundred nautical miles from the baselines from which the breadth of the territorial sea of Canada is measured, whichever is the greater, and

• (b) in the case of offshore renewable energy, the areas referred to in paragraph (a) that are not within the Province; (zone extracôtière ou zone)

abandoned facility means any pipeline, as defined in section 135, installation, facility, equipment or system that has been abandoned in accordance with an authorization issued under Part III; (installation abandonnée)

Indigenous peoples of Canada has the meaning assigned by the definition aboriginal peoples of Canada in subsection 35(2) of the Constitution Act, 1982; (peuples autochtones du Canada)

offshore renewable energy project means any of the following works and activities:

• (a) any research or assessment conducted in relation to the exploitation or potential exploitation of a renewable resource to produce an energy product, unless it is conducted by or on behalf of a government or educational institution,

• (b) any exploitation of a renewable resource to produce an energy product,

• (c) any storage of an energy product produced from a renewable resource, and

• (d) any transmission of an energy product produced from a renewable resource; (projet d’énergie renouvelable extracôtière)

offshore renewable energy recommendation means a recommendation made by the Regulator respecting the exercise of a power or the performance of a duty under a provision of this Act that expressly provides for the exercise of the power or the performance of the duty subject to sections 40.‍1 to 40.‍3; (recommandation relative à l’énergie renouvelable extracôtière)

Regulator means the Canada–Newfoundland and Labrador Offshore Energy Regulator referred to in section 9; (Régie)

Offshore renewable energy project

2.‍1 Subject to section 7, the Governor in Council may make regulations amending the definition offshore renewable energy project, as defined in section 2, to add or remove any work or activity related to renewable energy that is carried out in the offshore area.

Regulations

5 (1) Subject to section 7, the Governor in Council may make regulations

• (a) prescribing lines enclosing areas adjacent to the Province for the purpose of subparagraph (a)‍(i) of the definition offshore area in section 2; and

• (b) amending paragraph (b) of that definition.

agreement means an agreement between the Government of Canada and the government of a province respecting resource management and revenue sharing in relation to activities respecting the exploration for or the production of petroleum, or respecting offshore renewable energy projects, carried out on any frontier lands; (accord)

Provincial Minister’s approval

7 (1) Before a regulation is made under section 2.‍1, subsection 5(1), section 29.‍1, subsection 41(7), section 56.‍1 or section 64, subsection 67(2), section 96.‍1, subsection 96.‍2(2), section 118, subsection 122(1), 125(1), 149(1), 162(2.‍3), 163(1.‍02), 183.‍19(6) or 183.‍25(1), section 183.‍29, subsection 183.‍3(3) or 202.‍01(1) or section 203, the Federal Minister shall consult the Provincial Minister with respect to the proposed regulation and the regulation shall not be made without the Provincial Minister’s approval.

Non-Application of Atlantic Accord

Non-application of Atlantic Accord

Excluded legislation

(2) Subject to section 101, the Canada Petroleum Resources Act and the Canada Oil and Gas Operations Act and Part 5 of the Canadian Energy Regulator Act and any regulations made under them do not apply within the offshore area.

Jointly established Regulator

9 (1) There is established by the joint operation of this Act and the Provincial Act a board to be known as the Canada–Newfoundland and Labrador Offshore Energy Regulator.

References

(1.‍2) A reference in any contract, document, instrument, proclamation, by-law or order in council to the Canada-Newfoundland Offshore Petroleum Board or the Canada–Newfoundland and Labrador Offshore Petroleum Board is, unless the context otherwise requires, to be read as a reference to the Canada–Newfoundland and Labrador Offshore Energy Regulator.

Terms of office

15 (3) The Chairperson and members of the Regulator shall be appointed for terms of six years.

Consultation with Indigenous peoples of Canada

17.‍1 His Majesty in right of Canada or in right of the Province may rely on the Regulator for the purposes of consulting with the Indigenous peoples of Canada respecting any potential adverse impact of a work or activity in the offshore area on existing Aboriginal and treaty rights recognized and affirmed by section 35 of the Constitution Act, 1982 and the Regulator may, on behalf of His Majesty, if appropriate, accommodate any adverse impacts on those rights.

Access to information

18 (1) The Federal Minister and the Provincial Minister are entitled to access to any information or documentation relating to petroleum resource and renewable energy activities in the offshore area that is provided for the purposes of this Act or any regulation made under it and such information or documentation shall, on the request of either Minister, be disclosed to that Minister without requiring the consent of the party who provided the information or documentation.

Storage of information

22 The Regulator shall establish, maintain and operate a facility in the Province for the storage and curatorship of

• (a) all petroleum-related geophysical records and geological and hydrocarbon samples relating to the offshore area; and

• (b) all geological, geophysical, geotechnical and environmental records and geological and geotechnical samples relating to offshore renewable energy.

Mobility of staff

(4) For the purpose of being eligible for appointment to a position in the public service by an appointment process under the Public Service Employment Act,

• (a) any person who, immediately prior to being employed by the Regulator, was employed in the public service shall be deemed to be a person employed in the public service in the Department of Natural Resources in the location where that person is performing duties for the Regulator and in a position of an occupational nature and at a level equivalent to the position in which that person is employed by the Regulator; and

• (b) any person who, immediately prior to being employed by the Regulator, was not employed in the public service shall, two years after being employed by the Regulator, be deemed to be a person employed in the public service in the Department of Natural Resources in the location where that person is performing duties for the Regulator and in a position of an occupational nature and at a level equivalent to the position in which that person is employed by the Regulator.

Payment of operating costs

(4) Subject to subsection (4.‍1), the Government of Canada shall pay one-half of the aggregate of the expenditures set out in the budget or revised budget in respect of each fiscal year.

Payment of specific activities

(4.‍1) The Chief Executive Officer may include in the budget or revised budget expenditures associated with specific requirements of one government that are to be paid entirely by that government.

• (b) respecting the fees or charges, or the method of calculating the fees or charges, in respect of any of the Regulator’s activities under this Act or the Impact Assessment Act, that are to be paid by

• (i) a person who makes an application for an authorization under paragraph 138(1)‍(b) or subsection 138.‍01(1) or an application under subsection 139(2), or

• (ii) the holder of an operating licence issued under paragraph 138(1)‍(a) or an authorization issued under paragraph 138(1)‍(b) or subsection 138.‍01(1); and

Amounts not to exceed cost

(3) The amounts of the fees or charges referred to in paragraph (1)‍(b) shall not exceed the cost of the Regulator’s activities under this Act or the Impact Assessment Act.

Petroleum-related Decisions

Decisions Related to Offshore Renewable Energy

Regulator’s recommendation

Ministers’ decisions

Additional 30 days

No time limit

Publication

Implementation of Ministers’ approval

• (a.‍1) offshore renewable energy recommendations;

• (d.‍1) the principles referred to in section 96.‍6;

• (d.‍2) the development of guidelines and interpretation notes issued under subsection 151.‍1(1) and section 183.‍27; and

Public hearings

44.‍1 The Regulator 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 under this Act.

• (a) there is a real and substantial risk that disclosure of the information will impair the security of pipelines, as defined in section 135, installations, facilities, vessels, aircraft or systems, including computer or communication systems, or methods employed to protect them; and

Transboundary pool

(7) The definitions in section 166 also apply in subsections (8) and (9).

Approval subject to agreement

(8) A Canada-Newfoundland and Labrador benefits plan submitted for approval in respect of a work or activity to be carried out in a transboundary pool that is the subject of a joint exploitation agreement is not to be approved under this section unless the Regulator and the appropriate authority have agreed on its content.

Disagreement

(9) The Regulator or the appropriate authority — or in respect of any transboundary pool extending into the jurisdiction of a foreign government, the Federal Minister, after having consulted the Minister of Foreign Affairs and the Provincial Minister — may, if they disagree about the content of the plan submitted for approval, refer the matter to an expert in accordance with section 183.‍16. The expert’s decision is deemed to be approval of the plan by the Regulator.

Petroleum and Offshore Renewable Energy Resources

call for bids means a call for bids made in accordance with

• (a) in the case of petroleum, section 58, and

• (b) in the case of offshore renewable energy, section 93; (appel d’offres)

Crown reserve area means

• (a) in relation to petroleum, portions of the offshore area in respect of which no petroleum-related interest is in force, and

• (b) in relation to offshore renewable energy, portions of the offshore area in respect of which no submerged land licence is in force respecting a particular renewable energy resource; (réserves de l’État)

interest means

• (a) in relation to petroleum, any former exploration agreement, former lease, former permit, former special renewal permit, exploration licence, production licence or significant discovery licence, and

• (b) in relation to offshore renewable energy, any submerged land licence; (titre)

significant discovery means a discovery indicated by a well on a geological feature that

• (a) demonstrates, through any formation flow test approved by the Regulator, the existence of hydrocarbons in that feature, and

• (b) having regard to geological and engineering factors, suggests the existence of an accumulation of hydrocarbons that has potential for sustained production; (découverte importante)

Prohibition orders — petroleum

54 (1) Subject to sections 31 to 40, the Regulator may, except in a case referred to in subsection (2), by order, for any purposes and under any conditions set out in the order, prohibit the issuance of petroleum-related interests in respect of any portions of the offshore area specified in the order.

Prohibition orders — offshore renewable energy

(1.‍1) The Federal Minister and the Provincial Minister may, except in a case referred to in subsection (2), issue a joint direction to the Regulator to, by order, for any purposes and under any conditions set out in the order, prohibit the issuance of submerged land licences in respect of any portions of the offshore area specified in the order.

Décision du ministre fédéral

(2) Le ministre fédéral peut, en cas de désaccord sur le tracé des frontières avec un gouvernement, interdire, par arrêté, aux conditions qu’il y indique, l’octroi de titres à l’égard de telle partie de la zone extracôtière visée.

Directions deemed not to be statutory instruments

(3) Directions issued under subsection (1.‍1) shall be deemed not to be statutory instruments for the purposes of the Statutory Instruments Act.

Prohibition orders

56 (1) Subject to subsections (2) and (2.‍1), the Regulator may, by order, prohibit any interest owner specified in the order from commencing or continuing any work or activity on the portions of the offshore area or any part of those portions that are subject to the interest of that interest owner, in the case of

• (a) an environmental or social problem of a serious nature; or

• (b) dangerous or extreme weather conditions affecting the health or safety of people or the safety of equipment.

Fundamental decisions

(2) The making of an order by the Regulator in a case referred to in paragraph (1)‍(a) with respect to a petroleum-related interest is subject to sections 31 to 40.

Ministerial decision

(2.‍1) The making of an order by the Regulator in a case referred to in paragraph (1)‍(a) with respect to a submerged land licence is subject to sections 40.‍1 to 40.‍3.

Suspension des obligations

(4) Est suspendue, tant que l’arrêté est valide, toute obligation liée à un titre et rendue de ce fait inexécutable.

Prohibitions — regulations

56.‍1 Subject to section 7, the Governor in Council may, for the purpose of the protection of the environment, make regulations prohibiting, in respect of any portion of the offshore area that is specified in those regulations and that is located in an area that is or, in the opinion of the Governor in Council, may be identified under an Act of Parliament or of the Legislature of the Province as an area for environmental or wildlife conservation or protection,

• (a) the commencement or continuation of

  • (i) any work or activity relating to the exploration or drilling for or the production, conservation, processing or transportation of petroleum, or

  • (ii) an offshore renewable energy project; or

• (b) the issuance of interests.

Negotiations for compensation

56.‍2 (1) The Federal Minister may enter into negotiations with an interest owner for a determination of any compensation that may be granted to the interest owner for the surrender of the interest in respect of all or any portion of the offshore area subject to the interest, if all or any portion of the offshore area in respect of which the surrender is negotiated is

• (a) located in an area that is identified under an Act of Parliament as an area for environmental or wildlife conservation or protection; or

• (b) subject to regulations made under section 56.‍1.

Notice to Provincial Minister

(2) The Federal Minister shall, not later than 60 days before entering into the negotiations, give written notice to the Provincial Minister of the Federal Minister’s intention to enter into negotiations with the interest owner within the period specified in the notice referred to in subsection (3).

Notice to interest owner

(3) The Federal Minister shall, not later than 30 days before entering into the negotiations, give written notice to the interest owner, and forward a copy of the notice to the Regulator, indicating the Federal Minister’s intention to enter into negotiations with the interest owner within the period specified in the notice.

Power to cancel

(4) The Federal Minister and the Provincial Minister may, by order, jointly cancel the interest in respect of all or any portion of the offshore area that is subject to the interest and that is located in an area that is or, in the opinion of the Governor in Council, may be identified under an Act of Parliament as an area for environmental or wildlife conservation or protection, if

• (a) the interest owner did not enter into negotiations with the Federal Minister within the period specified in the notice given to the interest owner;

• (b) in the opinion of the Federal Minister, the compensation to be granted to the interest owner for the surrender of the interest has not been determined during the negotiations within a reasonable time; or

• (c) in the opinion of the Federal Minister, the negotiations have not resulted in the surrender of the interest by the interest owner within a reasonable time even though the compensation to be granted to the interest owner has been determined during the negotiations.

Amount of compensation

(5) The Federal Minister shall, in the order, specify the amount of the compensation to be granted to the interest owner under subsection 56.‍3(2) in respect of the cancellation of the interest.

Crown reserve areas

(6) The portion of the offshore area subject to the interest referred to in subsection (1) that has been surrendered or the interest referred to in subsection (4) that has been cancelled becomes a Crown reserve area.

Return of deposit

(7) If an interest referred to in subsection (1) is surrendered or if an interest referred to in subsection (4) is cancelled, the deposit balance with respect to the interest held by the person holding that deposit balance on behalf of the interest owner, calculated in accordance with the regulations, shall be returned to the interest owner, less any liability, either direct or by way of indemnity, owed by the interest owner to that person at the time of the surrender or cancellation.

Compensation — surrender

56.‍3 (1) If an interest owner surrenders an interest referred to in subsection 56.‍2(1), His Majesty in right of Canada may grant any compensation that is determined by negotiations with the Federal Minister for the surrender of the interest.

Compensation — cancellation

(2) If an interest is cancelled by an order made under subsection 56.‍2(4), His Majesty in right of Canada may grant an interest owner the compensation that is specified in the order. If the order cancels a petroleum-related interest, it is subject to section 124 in respect of the amount of that compensation, and, for the purposes of this subsection, any reference to the Regulator in that section is to be read as a reference to the Federal Minister.

No compensation

(3) A person shall not have any right to claim or receive any compensation, damages, indemnity or other form of relief from His Majesty in right of Canada or from any servant or agent of His Majesty in right of Canada for any acquired, vested, future or potential right or entitlement that is affected by a surrender of an interest referred to in subsection 56.‍2(1) or a cancellation of an interest referred to in subsection 56.‍2(4), other than compensation that may be granted to an interest owner under this section.

Negotiations for compensation

56.‍4 (1) The Provincial Minister may enter into negotiations with an owner of a petroleum-related interest for a determination of any compensation that may be granted to the interest owner for the surrender of the interest in respect of all or any portion of the offshore area subject to the interest, if all or any portion of the offshore area in respect of which the surrender is negotiated is

• (a) located in an area that is identified under an Act of the Legislature of the Province as an area for environmental or wildlife conservation or protection; or

• (b) subject to regulations made under section 56.‍1.

Notice to Federal Minister

(2) The Provincial Minister shall, not later than 60 days before entering into the negotiations, give written notice to the Federal Minister of the Provincial Minister’s intention to enter into negotiations with the interest owner within the period specified in the notice referred to in subsection (3).

Notice to interest owner

(3) The Provincial Minister shall, not later than 30 days before entering into the negotiations, give written notice to the interest owner, and forward a copy of the notice to the Regulator, indicating the Provincial Minister’s intent to enter into negotiations with the interest owner within the period specified in the notice.

Power to cancel

(4) The Provincial Minister and the Federal Minister may, by order, jointly cancel the interest in respect of all or any portion of the offshore area that is subject to the interest and that is located in an area that is or, in the opinion of the lieutenant governor in council of the Province, may be identified under an Act of the Legislature of the Province as an area for environmental or wildlife conservation or protection, if

• (a) the interest owner did not enter into negotiations with the Provincial Minister within the period specified in the notice given to the interest owner;

• (b) in the opinion of the Provincial Minister, the compensation to be granted to the interest owner for the surrender of the interest has not been determined during the negotiations within a reasonable time; or

• (c) in the opinion of the Provincial Minister, the negotiations have not resulted in the surrender of the interest by the interest owner within a reasonable time even though the compensation to be granted to the interest owner has been determined during the negotiations.

Amount of compensation

(5) The Provincial Minister shall specify in the order the amount of the compensation to be granted to the interest owner under subsection 56.‍5(2) in respect of the cancellation of the interest.

Crown reserve areas

(6) The portion of the offshore area subject to the interest referred to in subsection (1) that has been surrendered or the interest referred to in subsection (4) that has been cancelled becomes a Crown reserve area.

Return of deposit

(7) If an interest referred to in subsection (1) is surrendered or if an interest referred to in subsection (4) is cancelled, the deposit balance with respect to the interest held by the person holding that deposit balance on behalf of the interest owner, calculated in accordance with the regulations, shall be returned to the interest owner, less any liability, either direct or by way of indemnity, owed by the interest owner to that person at the time of the surrender or cancellation.

Compensation — surrender

56.‍5 (1) If an interest owner surrenders an interest referred to in subsection 56.‍4(1), His Majesty in right of the Province may grant any compensation that is determined by negotiations with the Provincial Minister for the surrender of the interest.

Compensation — cancellation

(2) If an interest is cancelled by an order made under subsection 56.‍4(4), His Majesty in right of the Province may grant an interest owner the compensation that is specified in the order. The order is subject to section 124 in respect of the amount of that compensation, and, for the purposes of this subsection, any reference to the Regulator in that section is to be read as a reference to the Provincial Minister.

No compensation

(3) A person shall not have any right to claim or receive any compensation, damages, indemnity or other form of relief from His Majesty in right of the Province or from any servant or agent of His Majesty in right of the Province for any acquired, vested, future or potential right or entitlement that is affected by a surrender of an interest referred to in subsection 56.‍4(1) or a cancellation of an interest referred to in subsection 56.‍4(4), other than compensation that may be granted to an interest owner under this section.

General Rules Relating to Issuance of Petroleum-Related Interests

Authority to issue petroleum-related interests

57 (1) The Regulator may issue petroleum-related interests in respect of any portion of the offshore area in accordance with this Part and the regulations.

Fundamental decision

(2) The issuance of a petroleum-related interest by the Regulator is subject to sections 31 to 40 unless the issuance of the interest is mandatory under another provision of this Part.

Application of interest may be limited

(3) Subject to subsection (4), the application of any petroleum-related interest may be restricted to geological formations and to substances specified in the interest.

Exception

(4) Subsection (3) does not apply to any petroleum-related interest

• (a) that is in force or in respect of which negotiations were completed before or on the coming into force of this section in relation to any portion of the offshore area; or

• (b) that immediately succeeds an interest referred to in paragraph (a) in relation to that portion of the offshore area if that portion was not a Crown reserve area on the expiration of the interest referred to in paragraph (a).

Calls for bids

58 (1) Subject to section 61, the Regulator shall not issue a petroleum-related interest in relation to Crown reserve areas unless

• (a) prior to issuing the interest, the Regulator has made a call for bids in relation to those Crown reserve areas by publishing a notice in accordance with this section and section 63; and

• (b) the interest is issued to the person who submitted, in response to the call, the bid selected by the Regulator in accordance with subsection 59(1).

Fundamental decision

(2) The making of a call for bids for the issuance of a petroleum-related interest is subject to sections 31 to 40.

Requests for call for bids

(3) Any request received by the Regulator to make a call for bids for the issuance of a petroleum-related interest in relation to particular portions of the offshore area shall be considered by the Regulator in selecting the portions of the offshore area to be specified in such a call for bids.

Contents of call

(4) The call for bids shall specify

• (b) if applicable, the geological formations and substances to which the interest is to apply;

Selection of bid

59 (1) A bid submitted in response to a call for bids for the issuance of a petroleum-related interest shall not be selected unless

Publication of bid selected

(2) If the Regulator selects a bid submitted in response to the call for bids, the Regulator shall publish a notice in accordance with section 63 setting out the terms and conditions of that bid.

Interest to be consistent with call

(3) If a petroleum-related interest is to be issued as a result of a call for bids, the terms and conditions of the interest shall be substantially consistent with any terms and conditions in respect of the interest specified in the call.

Publication of terms and conditions of interest

(4) The Regulator shall publish a notice in accordance with section 63 setting out the terms and conditions of any petroleum-related interest issued as a result of a call for bids as soon as practicable after its issuance.

Issuance of interest not required

60 (1) The Regulator is not required to issue a petroleum-related interest as a result of a call for bids.

New call required

(2) Subject to section 61, if the Regulator has not issued a petroleum-related interest with respect to a particular portion of the offshore area specified in a call for bids within six months after the closing date specified in the call for bids, the Regulator shall, before issuing a petroleum-related interest in relation to that portion of the offshore area, make a new call for bids.

Exception to call for bids — petroleum

61 (1) Subject to sections 31 to 40, the Regulator may issue a petroleum-related interest, in relation to any Crown reserve area, without making a call for bids if

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

Failure to comply with call procedures

62 If a petroleum-related interest has been issued, it is not vitiated by reason only of a failure to comply with any of the requirements set out in sections 58 to 61 respecting the form and content of, and time and manner of publishing, any notice required by those sections in relation to that interest.

Term of significant discovery licence

(3) Subject to subsection 85(1), a significant discovery licence continues in force, in relation to each portion of the offshore area to which the licence applies, for a term of 25 years.

Automatic extension of term

(3.‍1) If the interest owner has made an application for a declaration of commercial discovery referred to in subsection 78(1) or for the issuance of a production licence referred to in subsection 81(1), the term of the significant discovery licence is extended until the Regulator makes a decision respecting that application.

Cancelling automatic extension

(3.‍2) The extension to the term of the significant discovery licence remains in force after the Regulator makes a declaration of commercial discovery, but the Regulator may cancel the extension if the interest owner fails to submit an application for the issuance of a production licence within a reasonable time.

Exception

(2) Despite subsection (1), the Regulator may, subject to such terms and conditions as the Regulator deems appropriate, authorize any interest holder of a petroleum-related interest or a share in such an interest to produce petroleum on the portions of the offshore area subject to the interest or share for use in the exploration or drilling for or development of petroleum on any portion of the offshore area.

DIVISION V 

Offshore Renewable Energy

General Rules Relating to Issuance of Submerged Land Licences

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

• (b) to conduct a site assessment activity;

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

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

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

Terms and Conditions

Principles

• (a) all Canadian corporations and individuals resident in Canada shall have a full and fair opportunity to participate on a competitive basis, including in the course of employment, in the supply of goods and services used in any work or activity related to an offshore renewable energy project;

• (b) importance shall be given to the development of measures that aim to increase the participation of under-represented groups, including in the course of employment, in the supply of goods and services used in any such work or activity; and

• Start of inserted block

  (c) during the submerged land licence issuance process, importance shall be given to the consideration of effects on fishing activities.

  End of inserted block

DIVISION VI 

Royalties and Revenues

Reservation of Royalties and Revenues

Royalties

(2) There is reserved to His Majesty in right of Canada, and each holder of a share in a production licence is liable for and shall pay to His Majesty in right of Canada, in accordance with subsection (4), the royalties, interest and penalties that would be payable in respect of petroleum under the Petroleum and Natural Gas Act if the petroleum were produced from areas within the Province.

No Crown share

(5) No provision of the Petroleum and Natural Gas Act or any regulation made under that Act shall apply so as to reserve to His Majesty a Crown share in any petroleum-related interest issued in respect of any portion of the offshore area.

Revenues reserved

97.‍1 (1) There is reserved to His Majesty in right of Canada, and each holder of a share in a submerged land licence is liable for and shall pay to His Majesty in right of Canada, in accordance with subsection (2), the revenues, interest and penalties that would be payable under any Act of the Province and any regulations made under that Act in respect of any offshore renewable energy project as if that project were carried out within the Province.

Application of Newfoundland and Labrador legislation

(2) Subject to this Act and the regulations, any Act and regulations referred to in subsection (1) apply, with any modifications that the circumstances require, for the purposes of this section.

Remedies for unpaid revenues

(3) Despite any other provision of this Act or the regulations, for the purposes of this section, if a person is in default under any Act or regulations referred to in subsection (1) in the payment of any amount payable under this section, the Provincial Minister may, as long as the amount remains unpaid, direct the Regulator to

• (a) refuse to issue to that person any submerged land licence in relation to any portion of the offshore area;

• (b) refuse to authorize, under Part III, that person to carry on any work or activity related to an offshore renewable energy project and suspend any such authorization already given; and

• (c) exercise the powers under subsections 123(1) and (4).

No remedy pending appeals

(4) No remedy may be exercised under subsection (3) in respect of a default in payment of an amount pending any assessment, reassessment, appeal or review in respect of that default under any Act or regulations referred to in subsection (1) or otherwise provided by law.

For greater certainty

(5) For greater certainty, for the purposes of this Division, revenues, interest and penalties payable under subsection (1) do not include taxes, interest and penalties imposed, levied and collected under Part IV.

Power to collect

98 (1) Subject to subsection (6), if an agreement is entered into under subsection (3), royalties, interest and penalties payable under section 97 or revenues, interest and penalties payable under section 97.‍1, as the case may be, may be collected and administered and refunds in respect of those amounts payable may be granted on behalf of the Government of Canada in accordance with the terms and conditions of the agreement, as amended from time to time under subsection (4).

Negotiation of agreement

(2) The Federal Minister shall, on the request of the Government of the Province or the Regulator, negotiate

• (a) an agreement with the Provincial Minister and the Regulator with respect to the collection and administration of the royalties, interest and penalties payable under section 97; and

• (b) an agreement with the Provincial Minister and the Regulator with respect to the collection and administration of the revenues, interest and penalties payable under section 97.‍1.

Agreement

(3) On completion of the negotiation of an agreement under subsection (2), the Federal Minister, with the approval of the Governor in Council, shall, on behalf of the Government of Canada, enter into an agreement with the Government of the Province and the Regulator under which the Regulator shall, on behalf of the Government of Canada, collect and administer the royalties, interest and penalties payable under section 97 or the revenues, interest and penalties payable under section 97.‍1, as the case may be, and grant refunds or make other payments in respect of those amounts payable, as the case may be, in accordance with the terms and conditions set out in the agreement.

No further liability — petroleum

(6) An agreement entered into under subsection (3) may provide that, if any payment is received by the Government of the Province on account of any royalties, interest, penalties or other sum payable by a person under section 97, or under both section 97 and the Petroleum and Natural Gas Act, that payment may be applied by the Government of the Province towards the royalties, interest, penalties or other sums payable by the person under that section or both that section and that Act in the manner that is specified in the agreement, even if the person directed that the payment be applied in any other manner or made no direction as to its application.

No further liability — offshore renewable energy

(6.‍1) An agreement entered into under subsection (3) may provide that, if any payment is received by the Government of the Province on account of any revenues, interest, penalties or other sum payable in respect of any offshore renewable energy project by a person under section 97.‍1, or under both section 97.‍1 and any Act of the Province and any regulations made under that Act, that payment may be applied by the Government of the Province towards the revenues, interest, penalties or other sums payable by the person under that section, or both that section and that Act and those regulations, in the manner that is specified in the agreement, even if the person directed that the payment be applied in any other manner or made no direction as to its application.

Relief of liability

(7) Any payment or part of a payment applied by the Government of the Province in accordance with an agreement entered into under subsection (3) towards the royalties, interest, penalties or other sums payable by a person under section 97 or the revenues, interest, penalties or other sums payable by a person under section 97.‍1, as the case may be,

• (a) relieves that person of liability to pay those amounts payable to the extent of the applied payment or part of that payment; and

• (b) shall be deemed to have been applied in accordance with a direction made by that person.

Remittance to Receiver General

Consolidated Revenue Fund

Liability and Collection

Debts due to His Majesty

Appointment

(3) Despite subsection 78(2) of the Canada Petroleum Resources Act, one of the members of the Environmental Studies Management Board established by subsection 78(1) of that Act is to be appointed by the Regulator on the recommendation of the Provincial Minister.

Reports and recommendations to Regulator

(4) The Environmental Studies Management Board referred to in subsection (3) shall submit to the Regulator a copy of every annual report and recommendation submitted to the Federal Minister under paragraph 79(1)‍(d) or (e) of the Canada Petroleum Resources Act at the same time the report or recommendation is submitted to the Federal Minister.

court means the Supreme Court of Newfoundland and Labrador and includes any of its judges; (tribunal)

operator’s lien means any charge on or right in relation to an interest or a share in an interest

• (a) that arises under a contract

  • (i) to which the interest owner or holder of the interest or share is a party,

  • (ii) that provides for the operator appointed under the contract to carry out any work or activity, in the portions of the offshore area to which the interest or share applies, related to the exploration for or the development or production of petroleum or to offshore renewable energy projects, and

  • (iii) that requires the interest owner or holder to make payments to the operator to cover all or part of the advances made by the operator in respect of the costs and expenses of such work or activity, and

• (b) that secures the payments referred to in subparagraph (a)‍(iii); (privilège de l’exploitant)

Notice of disposition of any interest

103 (1) If an interest holder of an interest or any share in an interest enters into an agreement or arrangement that is or may result in a transfer, assignment or other disposition of the interest or share, the interest holder shall give notice of such agreement or arrangement to the Regulator, together with a summary of its terms and conditions or, on the request of the Regulator, a copy of the agreement or arrangement.

Conditions of transfer

(2) A submerged land licence shall only be transferred, assigned or otherwise disposed of under subsection (1) if the Regulator is satisfied that the terms and conditions of the licence can be met following the transfer, assignment or other disposition.

engineering research or feasibility study includes work undertaken to facilitate the design or to analyse the viability of engineering technology, systems or schemes to be used, in the offshore area, in the exploration for or the development, production or transportation of petroleum or in offshore renewable energy projects; (recherches ou études techniques)

• (ii) in any other case relating to a petroleum-related work or activity, after the end of five years following the date of completion of the work, or

• (iii) in any case relating to an offshore renewable energy project, after the end of the time set out by regulations or, in the absence of regulations, three years following the date of completion of the geological or geophysical work;

• (ii) in any other case relating to a petroleum-related work or activity, after the end of five years following the date of completion of the research, study or experimental project or after the reversion of that portion of the offshore area to Crown reserve areas, whichever occurs first, or

• (iii) in any case relating to an offshore renewable energy project, after the earlier of:

  • (A) the end of the period set out by regulations or, in the absence of regulations, three years following the date of completion of the research, study or experimental project, and

  • (B) the reversion of that portion of the offshore area to Crown reserve areas;

• (ii) in any other case relating to a petroleum-related work or activity, if five years have passed since the completion of the study, or

• (iii) in any case relating to an offshore renewable energy project, if the period set out by regulations has passed since the completion of the study or, in the absence of regulations, if three years have passed since the completion of that study.

Disclosure — governments and agencies

(6) The Regulator may disclose any information or documentation that it obtains under this Part or Part III — to officials of the Government of Canada, the Government of the Province or any other provincial government, or a foreign government or to the representatives of any of their agencies — for the purposes of a federal, provincial or foreign law, as the case may be, that deals primarily with a petroleum-related work or activity, including the exploration for and the management, administration and exploitation of petroleum resources, or with an offshore renewable energy project, if

Applicant and proposed work or activity

(9) Subsection (2) does not apply in respect of information regarding the applicant for an operating licence or authorization under subsection 138(1) or authorization under subsection 138.‍01(1) or in respect of the scope, purpose, location, timing and nature of the proposed work or activity for which the licence or authorization is sought.

(6.‍1) Section 119 of the Act is amended by adding the following after subsection (9):

Safety or environmental protection

(11) Subject to section 119.‍1, the Regulator may disclose, including for the purposes of the Impact Assessment Act, all or part of any information or documentation related to safety or environmental protection that is provided in relation to an application for an operating licence or authorization under subsection 138(1) or authorization under subsection 138.‍01(1), or to an operating licence or authorization that is issued under one of those subsections or provided in accordance with any regulations made under this Part or Part III. The Regulator is not, however, permitted to disclose information or documentation if it is satisfied that

• (c) there is a real and substantial risk that disclosure of it will impair the security of pipelines, as defined in section 135, installations, facilities, vessels, aircraft, or systems, including computer or communication systems, used for any work or activity in respect of which this Act applies — or methods employed to protect them — and the need to prevent its disclosure outweighs the public interest in its disclosure.

Review

(7) Any person to whom the Regulator is required under paragraph (4)‍(b) to give a notice of a decision to disclose information or documentation may, within 20 days after the day on which the notice is given, apply to the Supreme Court of Newfoundland and Labrador for a review of the decision.

Court to take precautions against disclosing

(9) In any proceedings arising from an application under subsection (7), the Supreme Court of Newfoundland and Labrador shall take every reasonable precaution, including, when appropriate, conducting hearings in camera, to avoid the disclosure by the Court or any person of any information or documentation that, under this Act, is privileged or is not to be disclosed.

Default — petroleum

(2) Despite anything in this Part but subject to sections 31 to 40 and subsection 123(3), if the interest owner or holder of a petroleum-related interest fails to comply with a notice under subsection (1) within the period specified in the notice and the Regulator considers that the failure to comply warrants cancellation of the interest of the interest owner or holder of or any share in the interest held by the holder with respect to a portion only of the offshore area subject to the interest, the Regulator may, by order subject to section 124, cancel that interest or share, in which case the portions of the offshore area under that interest or share become Crown reserve areas.

Non-application of section 124

(3) The Regulator’s order to cancel an exploration licence, significant discovery licence or production licence under subsection (2) is not subject to section 124 if the notice under subsection (1) relates to a failure to meet any of the terms and conditions contained in that licence.

Default — offshore renewable energy

(4) Despite anything in this Part but subject to sections 40.‍1 to 40.‍3, if the interest owner or holder of a submerged land licence fails to comply with a notice under subsection (1) within the period specified in the notice and the Regulator considers that the failure to comply warrants cancellation of the licence of the interest owner or holder or any share in the licence held by the holder, the Regulator may, by order, cancel that licence or share, in which case the portions of the offshore area under that licence or share become Crown reserve areas.

Notification of order and reasons

(8) If an order, decision or action referred to in subsection (2) is made or taken, the Regulator shall notify the person who requested a hearing in respect of the order, decision or action under subsection (3) and, on request by that person, publish or make available to that person the reasons for the order, decision or action.

Judicial review

(10) Any order, decision or action in respect of which a hearing is held under this section is subject to review and to be set aside by the Supreme Court of Newfoundland and Labrador.

Replacement of rights

128 (1) Subject to section 127 and subsection 129(2), the petroleum-related interests provided for under this Part replace all petroleum rights or prospects of petroleum rights acquired or vested in relation to any portion of the offshore area prior to the coming into force of this section.

Transitional

134.‍1 Despite subsection 75(3) and subject to subsection 85(1), if the interest holder of an exploration licence issued before 2017 applies for a declaration of significant discovery in relation to any portion of the offshore area to which that licence applies and if the significant discovery is indicated by the first well on a geological feature that demonstrates, by flow testing, the existence of hydrocarbons in that feature, any significant discovery licence issued for that significant discovery area continues in force, in relation to each portion of the offshore area to which the licence applies, for as long as the declaration of significant discovery on the basis of which the licence was issued remains in force in relation to that portion.

Petroleum and Offshore Renewable Energy Operations

Purpose

135.‍1 The purpose of this Part is to promote

• (a) safety, particularly by encouraging persons exploring for and exploiting petroleum or carrying on an offshore renewable energy project to maintain a prudent regime for achieving safety;

• (b) the protection of the environment;

• (b.‍1) accountability in accordance with the “polluter pays” principle; and

• (c) in respect of the exploration for and exploitation of petroleum, the conservation of petroleum resources and joint production arrangements.

Champ d’application

Application

136 This Part applies in respect of the exploration and drilling for and the production, conservation, processing and transportation of petroleum, and in respect of offshore renewable energy projects, in the offshore area.

Prohibition — offshore renewable energy

137.‍01 No person shall carry on any work or activity related to an offshore renewable energy project unless

• (a) that person is the holder of an authorization issued, before the commencement of operations, under subsection 138.‍01(1) for the work or activity; and

• (b) if it is required, that person is authorized or entitled to carry on business in the place where that person proposes to carry on the work or activity.

Delegation

137.‍1 The Regulator may delegate any of the Regulator’s powers under section 138, 138.‍01, 138.‍2, 138.‍3, 139.‍1, 139.‍2, 162.‍1, 163, 183.‍2 or 183.‍21 to any person, and the person shall exercise those powers in accordance with the terms of the delegation.

Petroleum Operating Licences and Authorizations

Licences and authorizations

138 (1) The Regulator may, on application made in the form and containing the information fixed by it, and made in the prescribed manner, issue in relation to petroleum-related works or activities

• (b.‍1) requirements that are conditions established under the Impact Assessment Act, including those established under section 64 of that Act or by regulations made under paragraph 112(1)‍(a.‍2) of that Act; and

• (a) approvals;

• (b) deposits of money;

• (c) liability for loss, damage, costs or expenses related to debris, as defined in subsection 183.‍17(1);

• (d) the carrying out of safety studies or environmental programs or studies; and

• (e) [Deleted]

• (f) certificates of fitness and who may issue them.

• (a) a term or condition, determined by the Regulator in accordance with the provisions of this Part or Part III.‍1 or prescribed under either of those Parts, subject to which the authorization was issued;

• (b) a fee or charge payable in accordance with regulations made under section 29.‍1;

• (c) a requirement undertaken in a declaration referred to in subsection 139.‍1(2);

• (d) subsection 139.‍1(3), 183.‍2(3) or 183.‍21(2);

• (e) any provision of Part III.‍1; or

• (f) any applicable regulation.

Impact Assessment

• (d.‍1) conditions established under the Impact Assessment Act, including those established under section 64 of that Act or by regulations made under paragraph 112(1)‍(a.‍2) of that Act; and

• (a) the Impact Assessment Agency of Canada decides, under subsection 16(1) of the Impact Assessment Act, that an impact assessment of that project is not required; or

• (b) the Minister of the Environment has issued a decision statement under section 65 of that Act.

• (a) the scope of the factors that the Agency takes into account in determining, under subsection 18(1.‍2) of the Impact Assessment Act, what information or which studies it considers necessary and that it may require from the proponent for the conduct of the impact assessment;

• (b) the information or studies that the Regulator considers necessary for the conduct of the impact assessment or preparation of the impact assessment report, as the case may be, and that the Agency may require from the proponent under paragraph 18(1)‍(a), subsections 19(3) and 26(2) and section 38 of that Act; and

• (c) whether the proponent has provided the Agency with all of the information or studies necessary for the conduct of the impact assessment or preparation of the impact assessment report.

• (a) decide whether to authorize a work or activity under subsection 138(1) or 138.‍01(1);

• (b) decide whether to approve a development plan under subsection 139(4) or any amendment to that plan under subsection 139(5); or

• (c) conduct a regional assessment under section 138.‍017 or a strategic assessment under section 138.‍018.

Droit d’accès

138.‍1 (1) Sous réserve du paragraphe (2), toute personne peut pénétrer dans la zone extracôtière et y exercer les activités autorisées sous le régime de l’alinéa 138(1)b) pour la recherche et l’exploitation de pétrole ou de gaz.

Right of entry — offshore renewable energy

(1.‍1) Subject to subsection (2), any person may, for the purpose of carrying on an offshore renewable energy project, enter on and use any portion of the offshore area in order to carry on a work or activity authorized under subsection 138.‍01(1).

Right of entry — abandoned facilities

(1.‍2) Subject to subsection (2), any person may enter on and use any portion of the offshore area in order to make contact with, alter or remove an abandoned facility if they have been authorized to do so under subsection 183.‍3(2).

Restriction

(2) If a person occupies a portion of the offshore area under a lawful right or title, other than an authorization under paragraph 138(1)‍(b) or subsection 138.‍01(1) or an interest as defined in section 47, no person may enter on or use that portion for a purpose referred to in any of subsections (1) to (1.‍2) without the consent of the occupier or, if consent has been refused, except in accordance with the terms and conditions imposed by a decision of an arbitrator made in accordance with the regulations.

Safety — petroleum operations

138.‍2 (1) The Regulator shall, before issuing an authorization for a work or activity referred to in paragraph 138(1)‍(b), consider the safety of the work or activity by reviewing, in consultation with the Chief Safety Officer, the system as a whole and its components, including its structures, facilities, equipment, operating procedures and personnel.

Safety — offshore renewable energy operations

(2) The Regulator shall, before a work or activity referred to in subsection 138.‍01(1) commences, consider the safety of the work or activity by reviewing, in consultation with the Chief Safety Officer, the system as a whole and its components, including its structures, facilities, equipment, operating procedures and personnel.

Compliance — petroleum

138.‍3 (1) The Regulator shall, before issuing an authorization for a work or activity referred to in paragraph 138(1)‍(b), ensure that the applicant has complied with the requirements of subsections 162.‍1(1) or (2) and 163(1) or (1.‍01) in respect of that work or activity.

Compliance — offshore renewable energy

(2) The Regulator shall ensure that an applicant or holder of an authorization under subsection 138.‍01(1) has, prior to a date determined by regulations or, in the absence of regulations, prior to commencing a work or activity under that authorization, complied with the requirements of subsections 183.‍2(1) and 183.‍21(1) in respect of that work or activity.

Transboundary pool

(7) The definitions in section 166 also apply in subsections (8) to (12).

Approval subject to agreement

(8) Despite subsection (4), a development plan submitted for approval in respect of a work or activity to be carried out in a transboundary pool that is the subject of a joint exploitation agreement is not to be approved by the Regulator unless the appropriate authority has agreed to its content. The approval of Part I of that development plan is subject to sections 31 to 40 — or in respect of any transboundary pool that extends into the jurisdiction of a foreign government, to the consent of the Federal Minister in consultation with the Provincial Minister — and any requirements that the Regulator and appropriate authority have agreed are appropriate or that may be prescribed.

Disagreement

(9) In the case of a disagreement about the content of the plan submitted for approval, or any of the requirements for approval referred to in subsection (8), the Regulator or the appropriate authority — or in respect of any transboundary pool extending into the jurisdiction of a foreign government, the Federal Minister after having consulted the Minister of Foreign Affairs and the Provincial Minister — may refer the matter to an expert in accordance with section 183.‍16.

Submissions regarding Part I

(10) Any submissions to the expert by the Regulator regarding Part I of the development plan are subject to sections 31 to 40. In respect of any transboundary pool extending into the jurisdiction of a foreign government, the submissions are subject to the approval of the Federal Minister in consultation with the Provincial Minister.

Expert’s decision

(11) The expert’s decision is deemed to be approval of the plan by the Regulator and approval of Part I of that plan by the Federal Minister and the Provincial Minister, or in the case of any transboundary pool extending into the jurisdiction of a foreign government, by only the Federal Minister.

Amendment to development plan

(12) Subsections (7) to (11) apply, with any necessary modifications, to a proposed amendment to a development plan to which a work or activity in a transboundary pool relates or to any requirement to which the approval of the plan is subject.

Declaration by applicant — petroleum

139.‍1 (1) No authorization under paragraph 138(1)‍(b) shall be issued unless the Regulator has received, from the applicant for the authorization, a declaration in the form fixed by the Regulator that states that

Declaration by applicant or holder — offshore renewable energy

(2) An applicant or holder of an authorization under subsection 138.‍01(1) shall, prior to a date determined by regulations or, in the absence of regulations, by the Regulator, provide the Regulator with a declaration in the form fixed by it that states that

• (a) the equipment and facilities that are to be used in the work or activity to be authorized are fit for the purposes for which they are to be used, the operating procedures relating to them are appropriate for those uses, and the personnel who are to be employed in connection with them are qualified and competent for their employment; and

• (b) the applicant or holder shall ensure, so long as the work or activity that is authorized continues, that the equipment and facilities continue to be fit for the purposes for which they are used, the operating procedures continue to be appropriate for those uses, and the personnel continue to be so qualified and competent.

Changes

(3) If the equipment, an installation, a facility, the operating procedures or any of the personnel specified in a declaration changes and no longer conforms to the declaration, the holder of the authorization that provided the declaration shall provide the Regulator with a new declaration as soon as the circumstances permit after the change occurs.

Petroleum-related Certificates

Propriété

140.‍2 (1) La propriété des hydrocarbures produits au cours d’essais d’écoulement de formation prolongés revient à la personne qui les effectue conformément à une autorisation délivrée en application de l’article 138, aux approbations et conditions dont cette autorisation dépend ou aux règlements, même si elle n’est pas titulaire de la licence de production requise par la partie II.

Réserve

(3) Le présent article ne s’applique qu’aux essais d’écoulement de formation prolongés dont les résultats donnent suffisamment de renseignements pour la détermination du meilleur procédé de récupération pour le réservoir, de la capacité du réservoir ou des limites de productivité de tout puits d’exploitation du réservoir et qui ne mettent pas en danger la récupération finale pour ce réservoir.

Regulation of Operations — Petroleum

• (a) defining, in relation to petroleum-related works or activities, “oil” and “gas” for the purposes of Divisions I and II, “installation” and “equipment” for the purposes of sections 139.‍1 and 139.‍2 and “serious” for the purposes of section 165;

• (ii) the removal of petroleum from the offshore area, including in relation to the management of access by third parties to existing offshore infrastructure for the purpose of storing, processing and transporting petroleum and in relation to the amounts that may be charged for that access, and

• (d) concerning arbitration relating to petroleum-related works or activities for the purposes of subsection 138.‍1(2), including the costs of or incurred in relation to such arbitrations;

• (g) prohibiting, in relation to petroleum-related works or activities, the introduction into the environment of substances, classes of substances and forms of energy, in prescribed circumstances;

• (h.‍3) concerning the creation, conservation and production of records relating to petroleum-related works or activities; and

• (i) prescribing, in relation to petroleum-related works or activities, anything that is required to be prescribed for the purposes of this Part.

Guidelines and interpretation notes

151.‍1 (1) The Regulator may issue and publish, in any manner the Regulator considers appropriate, guidelines and interpretation notes with respect to the application and administration of sections 45, 138 and 139 and subsection 163(1.‍01) and any regulations respecting petroleum-related works or activities made under sections 29.‍1 and 149.

Réputés ne pas être des textes réglementaires

(2) Les lignes directrices et textes interprétatifs sont réputés ne pas être des textes réglementaires au sens de la Loi sur les textes réglementaires.

Petroleum Production Arrangements

Definitions

unitization order means an order made under section 176 or subsection 183.‍12(1); (arrêté d’union)

appropriate authority means

• (a) before the determination of whether a transboundary pool exists is made and, if applicable, its boundaries have been delineated, the authority that is responsible for the jurisdiction

  • (i) adjoining the portion of the perimeter where the drilling took place or where a pool exists, and

  • (ii) into which there is reason to believe that, based on the data obtained from any drilling, the pool extends, and

• (b) after that determination is made, the authority that is responsible for the jurisdiction into which the pool extends; (organisme de réglementation concerné)

authority means the Government of Canada, a government of a province, a foreign government or any of their agencies or a federal-provincial regulatory agency that has administrative responsibility for the exploration and exploitation of petroleum in the area adjoining the perimeter; (organisme de réglementation)

expert means a person who is appointed under subsection 183.‍16(2) and includes an expert panel appointed under subsection 183.‍16(3) or a person or arbitral tribunal who is appointed in accordance with any applicable treaty referred to under subsection 183.‍16(9); (expert)

perimeter, in relation to a pool, means the portion of the offshore area that is within 10 nautical miles of the limit of that offshore area; (bande limitrophe)

transboundary means extending beyond the Regulator’s jurisdiction under this Act; (transfrontalier)

Transboundary Pools

• (a) that the Regulator intends to refer the matter to an expert; or

• (b) that the authority has referred the matter to an expert.

• (a) order that the unit agreement be a valid contract enuring to the benefit of all the royalty owners and working interest owners who have an interest in the unit area and binding on and enforceable against those owners, and that the unit operating agreement be a valid contract enuring to the benefit of all the working interest owners who have an interest in the unit area and binding on and enforceable against those owners; and

• (b) include in the order any variations to the unit agreement or unit operating agreement determined necessary by the expert to allow for the more efficient or more economical production of petroleum from the unitized zone.

• (a) on the day the hearing begins,

  • (i) the unit agreement and the unit operating agreement have been executed by one or more working interest owners who own 65% or more of the working interests in the unit area, and

  • (ii) the unit agreement has been executed by one or more royalty owners who own 65% or more of the royalty interests in the unit area; and

• (b) the unitization order applied for would allow for the more efficient or more economical production of petroleum from the unitized zone.

• (a) in the case of the unit agreement, by

  • (i) one or more working interest owners who own in total more than 25% of the working interests in the unit area and are part of the group that owns 65% or more of the working interests as described in subparagraph 183.‍11(3)‍(a)‍(i), and

  • (ii) one or more royalty owners who own in total more than 25% of the working interest in the unit area and are part of the group that owns 65% or more of the royalty interests as described in subparagraph 183.‍11(3)‍(a)‍(ii); or

• (b) in the case of the unit operating agreement, by one or more working interest owners who own in total more than 25% of the working interests in the unit area and are part of the group that owns 65% or more of the working interests as described in subparagraph 183.‍11(3)‍(a)‍(i).

DIVISION II.‍1 

Regulation of Operations — Offshore Renewable Energy

Debris

• (a) any facility or structure that was put in place in the course of any work or activity required to be authorized under subsection 138.‍01(1), other than a site assessment activity, and that has been abandoned without an authorization that may be required by or under this Part, or that has been abandoned in a way that did not comply with such an authorization; or

• (b) any material that has broken away or been jettisoned or displaced in the course of any of that work or activity or from an abandoned facility.

• (a) there is debris in any portion of the offshore area and immediate action is necessary in order to effect any reasonable measures referred to in subsection (3); and

• (b) the action is not being taken or will not be taken under subsection (3).

• (a) all persons to whose fault or negligence the debris is attributable or who are by law responsible for others to whose fault or negligence the debris is attributable are jointly and severally liable, to the extent determined according to the degree of the fault or negligence proved against them, for that loss, actual loss or damage, and for those costs and expenses;

• (b) the person who is required to obtain an authorization under subsection 138.‍01(1) in respect of the work or activity from which the debris originated is liable, without proof of fault or negligence, up to the applicable limit of liability established under this section, for that loss, actual loss or damage, and for those costs and expenses; and

• (c) the person who carried out a work or activity for which an authorization under subsection 138.‍01(1) was required in a facility that is now an abandoned facility from which the debris originated is liable, without proof of fault or negligence, up to the applicable limit of liability established under this section, for that loss, actual loss or damage, and for those costs and expenses.

• (a) establish a limit of liability that is higher than the limit referred to in subsection (3);

• (b) establish a limit of liability that is lower than the limit referred to in subsection (3) for the purposes of paragraph (1)‍(c); and

• (c) limit the amount of time during which a person referred to in paragraph (1)‍(c) may be held liable under that paragraph.

• (a) any legal liability or remedy for an act or omission by reason only that the act or omission is an offence under this Division or gives rise to liability under this section;

• (b) any recourse, indemnity or relief available at law to a person who is liable under this section against any other person; or

• (c) the operation of any applicable law or rule of law that is not inconsistent with this section.

Inquiries

General Duty

Regulations

• (a) defining, in relation to offshore renewable energy projects, “facility” and “equipment” for the purposes of section 139.‍1 and “serious” for the purpose of section 183.‍23;

• (b) respecting works and activities related to offshore renewable energy projects;

• (c) authorizing the Regulator, or any person, to make any orders that are specified in the regulations and to exercise any powers and perform any duties that are necessary for the design, construction, operation or abandonment of an offshore renewable energy project within the offshore area;

• (d) respecting arbitrations relating to offshore renewable energy projects for the purposes of subsection 138.‍1(2), including the costs of or incurred in relation to such arbitrations;

• (e) respecting the approvals to be granted as terms and conditions of authorizations issued under subsection 138.‍01(1);

• (f) prohibiting, in relation to offshore renewable energy projects, the introduction into the environment of substances, classes of substances and forms of energy, in prescribed circumstances;

• (g) respecting the creation, conservation and production of records relating to offshore renewable energy projects; and

• (h) prescribing, in relation to offshore renewable energy projects, anything that is required to be prescribed for the purposes of this Part.

• (a) authorize the use of equipment, methods, measures or standards in lieu of any required by any regulation made under section 183.‍25 if those Officers are satisfied that the use of that other equipment or those other methods, measures or standards would provide a level of safety and protection of the environment equivalent to that provided by compliance with the regulations; or

• (b) grant an exemption from any requirement imposed by any regulation made under section 183.‍25 in respect of equipment, methods, measures or standards if those Officers are satisfied with the level of safety and protection of the environment that will be achieved without compliance with that requirement.

DIVISION II.‍2 

Safety and Protection of Persons, Property and the Environment

Orders

• (a) the holder of an authorization under paragraph 138(1)‍(b) or subsection 138.‍01(1) or any other person;

• (b) a provincial government or a provincial Crown corporation; and

• (c) a local authority.

Measures to be taken

• (a) take any action or measure the Regulator considers necessary;

• (b) authorize an officer or employee, or class of officers or employees, of the Regulator to take the action or measure; or

• (c) authorize a third party to take the action or measure.

Orders deemed not to be statutory instruments

Regulations

Abandoned facilities

Order

Regulations

Stated case for Supreme Court of Newfoundland and Labrador

185 (1) The Committee may of its own motion or at the request of the Regulator state a case, in writing, for the opinion of the Supreme Court of Newfoundland and Labrador on any question that in the opinion of the Committee is a question of law or of the jurisdiction of the Committee.

Proceedings on case

(2) The Supreme Court of Newfoundland and Labrador shall hear and determine the case stated, and remit the matter to the Committee with the opinion of the Court on the matter.

Appeal to Supreme Court of Newfoundland and Labrador

187 (1) An appeal lies from a decision or order of the Committee to the Supreme Court of Newfoundland and Labrador on a question of law, on leave being obtained from that Court, in accordance with the practice of that Court, on application made within one month after the making of the decision or order sought to be appealed from or within any further time that Court may allow.

Powers of Court

(3) After the hearing of the appeal, the Supreme Court of Newfoundland and Labrador shall certify its opinion to the Committee and the Committee shall make any order necessary to comply with that opinion.

Serious bodily injury

193 (1) If an operational safety officer or the Chief Safety Officer, on reasonable grounds, is of the opinion that continuation of an operation in relation to the exploration or drilling for or the production, conservation, processing or transportation of petroleum or in relation to an offshore renewable energy project in any portion of the offshore area is likely to result in serious bodily injury, the operational safety officer or Chief Safety Officer, as the case may be, may order that the operation cease or be continued only in accordance with the terms of the order.

Installation or Facility Manager

Facility manager

193.‍3 (1) Every holder of an authorization under subsection 138.‍01(1) in respect of a work or activity for which a prescribed facility is to be used shall put in command of the facility a manager who meets any prescribed qualifications, and the facility manager is responsible for the safety of the facility and the persons at it.

Powers

(2) Subject to this Act and any other Act of Parliament, a facility manager has the power to do anything that is required to ensure the safety of the facility and the persons at it and, more particularly, may

• (a) give orders to any person who is at the facility;

• (b) order that any person who is at the facility be restrained or removed; and

• (c) obtain any information or documents.

Emergency

(3) In a prescribed emergency situation, a facility manager’s powers are extended so that they also apply to each person in charge of a vessel, vehicle or aircraft that is at the facility or that is leaving or approaching it.

• (e) undertakes or carries on a work or activity without an authorization under paragraph 138(1)‍(b) or without complying with the approvals or requirements, determined by the Regulator in accordance with the provisions of this Part or granted or prescribed under this Part, of an authorization issued under that paragraph;

• (e.‍1) undertakes or carries on a work or activity without an authorization under subsection 138.‍01(1) or without complying with the terms and conditions of the authorization that were determined by the Regulator in accordance with the provisions of this Part or granted or prescribed under this Part; or

• (f) fails to comply with a direction, requirement or order of an operational safety officer, the Chief Safety Officer, a conservation officer or the Chief Conservation Officer or with an order of an installation manager, a facility manager or the Committee.

• (h) directing the offender to pay to the Regulator an amount of money that the court considers appropriate for the purpose of conducting research, education and training in matters related to the protection of the environment, conservation of petroleum resources or safety of petroleum operations or offshore renewable energy projects;

Determination final

(5) A determination made under this section is final and binding and, subject to review by the Supreme Court of Newfoundland and Labrador, is not subject to appeal or to review by any court.

Debt to His Majesty

202.‍9 (1) A penalty constitutes a debt due to His Majesty in right of the Province and may be recovered in the Supreme Court of Newfoundland and Labrador.

Registration

(2) Registration in the Supreme Court of Newfoundland and Labrador of a certificate of non-payment issued under subsection (1) has the same effect as a judgment of that court for a debt of the amount specified in the certificate and all related registration costs.

authorization means an authorization issued under paragraph 138(1)‍(b) or subsection 138.‍01(1).‍ (autorisation)

declaration means a declaration referred to in subsection 139.‍1(1) or (2).‍ (déclaration)

marine installation or structure

• (a) includes

  • (i) any ship, including any ship used for construction, production or diving or for geotechnical or seismic work,

  • (ii) any offshore drilling unit, including a mobile offshore drilling unit,

  • (iii) any production platform, subsea installation, pipeline as defined in section 135, pumping station or storage structure,

  • (iii.‍1) any facility or structure used for producing, storing or transmitting an offshore renewable energy product, including an electrical substation,

  • (iii.‍2) any living accommodation or loading or landing platform, and

  • (iv) any other work, or work within a class of works, prescribed under paragraph (4)‍(a); but

• (b) does not include

  • (i) any vessel, including any supply vessel, standby vessel, shuttle tanker or seismic chase vessel, that provides any supply or support services to a ship, installation, structure, work or anything else described in paragraph (a), unless the vessel is within a class of vessels that is prescribed under paragraph (4)‍(b), or

  • (ii) any ship or vessel within a class of ships or vessels prescribed under paragraph (4)‍(c).‍ (ouvrage en mer)

Application of Part

205.‍003 (1) This Part applies to and in respect of a workplace that is situated within the offshore area for the purposes of the exploration or drilling for — or the production, conservation or processing of — petroleum, or for the purposes of offshore renewable energy projects, within the offshore area.

Non-application of Parts II and III of Canada Labour Code

205.‍004 Despite subsections 123(1) and 168(1) of the Canada Labour Code and any other Act of Parliament, Parts II and III of the Canada Labour Code do not apply to and in respect of a workplace that is situated within the offshore area for the purposes of the exploration or drilling for — or the production, conservation or processing of — petroleum, or for the purposes of offshore renewable energy projects, within the offshore area.

Non-application of Canadian Human Rights Act

205.‍005 The Canadian Human Rights Act does not apply to or in respect of a workplace that is situated within the offshore area for the purposes of the exploration or drilling for — or the production, conservation or processing of — petroleum, or for the purposes of offshore renewable energy projects, within the offshore area.

Non-application of Non-smokers’ Health Act

205.‍006 The Non-smokers’ Health Act does not apply to or in respect of a workplace that is situated within the offshore area for the purposes of the exploration or drilling for — or the production, conservation or processing of — petroleum, or for the purposes of offshore renewable energy projects, within the offshore area.

Application of Newfoundland and Labrador social legislation

205.‍007 (1) Newfoundland and Labrador social legislation and any regulations made under it apply to and in respect of a workplace that is situated within the offshore area for the purposes of the exploration or drilling for — or the production, conservation or processing of — petroleum, or for the purposes of offshore renewable energy projects, within the offshore area.

• (a) a marine installation or structure that is situated within the offshore area in connection with the exploration or drilling for — or the production, conservation or processing of — petroleum, or in connection with offshore renewable energy projects, within the offshore area and that is in the offshore area for the purpose of becoming, or that is, permanently attached to, permanently anchored to or permanently resting on the seabed or subsoil of the submarine areas of the offshore area;

Application of Part I of Canada Labour Code

(2) Part I of the Canada Labour Code applies to and in respect of a marine installation or structure that is situated within the offshore area in connection with the exploration or drilling for — or the production, conservation or processing of — petroleum, or in connection with offshore renewable energy projects, within the offshore area if subsection (1) does not apply to or in respect of the marine installation or structure.

Exception to paragraph (1)‍(q)

(2) Despite paragraph (1)‍(q), all or part of a workplace described in paragraph (a) of the definition workplace in subsection 205.‍001(1) does not have to be inspected at least once a month if that workplace, or that part of the workplace, is normally unattended and is used for the purpose of carrying out an offshore renewable energy project.

Exception to paragraph (1)‍(p)

(1.‍1) Despite paragraph (1)‍(p), all or part of a workplace described in paragraph (a) of the definition workplace in subsection 205.‍001(1) does not have to be inspected at least once a month if that workplace, or that part of the workplace, is normally unattended and is used for the purpose of carrying out an offshore renewable energy project.

Costs

(5) The costs incurred by the provincial labour relations board in respect of an application made under subsection (1), including the remuneration of its members, shall be paid by the Regulator.

Costs

(5) The costs incurred by the provincial labour relations board in respect of an application made under subsection (1), including the remuneration of its members, shall be paid by the Regulator.

Recommendation of Chief Safety Officer

205.‍068 (1) On receipt under subsection 138(3.‍1) or 138.‍01(2) of an application for an authorization, or to amend an authorization, the Chief Safety Officer shall

• (a) consider the potential impact of the work or activity to be authorized on the health and safety of employees engaged in the work or activity; and

• (b) make a written recommendation to the Regulator on the matters considered.

Authorization — occupational health and safety

(3) In addition to any requirement, approval, term or condition determined by the Regulator under Part III to which an authorization is subject, the authorization is also subject to any requirements, approvals, terms and conditions not inconsistent with the provisions of this Act or the regulations, that the Regulator determines relate to occupational health and safety.

Costs

(7) The costs incurred by the provincial labour relations board in respect of an appeal made under subsection (1), including the remuneration of its members, shall be paid by the Regulator.

Non-application of Federal Courts Act

205.‍102 For the purposes of the Federal Courts Act, neither the Regulator, the Chief Safety Officer nor a health and safety officer, when exercising or purporting to exercise jurisdiction or powers conferred on them under this Part, is a federal board, commission or other tribunal as defined in subsection 2(1) of that Act.

Witnesses

(3) Every witness who attends and gives evidence at an inquiry under this section is entitled to be paid reasonable travel and living expenses incurred by the witness in doing so and the witness fees prescribed in the tariff of fees in use in the Supreme Court of Newfoundland and Labrador.

An Act to implement an agreement between the Government of Canada and the Government of Nova Scotia on offshore petroleum resource management and revenue sharing, to provide for the joint management of offshore renewable energy by those Governments and to make related and consequential amendments

Short title

1 This Act may be cited as the Canada–Nova Scotia Offshore Petroleum Resources Accord Implementation and Offshore Renewable Energy Management Act.

Provincial Minister means, other than for the purposes of Part III.‍1, the minister of the government of the Province who is responsible for the management of offshore energy resources; (ministre provincial)

abandoned facility means any pipeline, as defined in section 138, installation, facility, equipment or system that has been abandoned in accordance with an authorization issued under Part III; (installation abandonnée)

Indigenous peoples of Canada has the meaning assigned by the definition aboriginal peoples of Canada in subsection 35(2) of the Constitution Act, 1982; (peuples autochtones du Canada)

offshore renewable energy project means any of the following works and activities:

• (a) any research or assessment conducted in relation to the exploitation or potential exploitation of a renewable resource to produce an energy product, unless it is conducted by or on behalf of a government or educational institution,

• (b) any exploitation of a renewable resource to produce an energy product,

• (c) any storage of an energy product produced from a renewable resource, and

• (d) any transmission of an energy product produced from a renewable resource; (projet d’énergie renouvelable extracôtière)

offshore renewable energy recommendation means a recommendation made by the Regulator respecting the exercise of a power or the performance of a duty under a provision of this Act that expressly provides for the exercise of the power or the performance of the duty subject to sections 38.‍1 to 38.‍3; (recommandation relative à l’énergie renouvelable extracôtière)

Regulator means the Canada–Nova Scotia Offshore Energy Regulator established by the joint operation of section 9 of this Act and section 9 of the Provincial Act; (Régie)

Offshore renewable energy project

2.‍1 Subject to section 6, the Governor in Council may make regulations amending the definition offshore renewable energy project, as defined in section 2, to add or remove any work or activity that is carried out in the offshore area.

Provincial Minister’s approval

6 (1) Before a regulation is made under section 2.‍1, subsection 5(1) or 17(4), section 30.‍1, subsection 35(8), 39(7) or 45(7), section 59.‍1 or 67, subsection 70(2), section 98.‍2, subsection 98.‍3(2), section 121, subsection 125(1), 128(1), 153(1), 167(2.‍3), 168(1.‍02), 188.‍19(6) or 188.‍25(1), section 188.‍29, subsection 188.‍3(3) or 207.‍01(1) or section 208, 245 or 248, the Federal Minister shall consult the Provincial Minister with respect to the proposed regulation and the regulation shall not be made without the Provincial Minister’s approval.

Non-Application of Accord

Non-application of Accord

Excluded legislation

(2) Subject to section 103, the Canada Petroleum Resources Act, the Canada Oil and Gas Operations Act and Part 5 of the Canadian Energy Regulator Act and any regulations made under them do not apply within the offshore area.

Jointly established Regulator

9 (1) There is established by the joint operation of this Act and the Provincial Act a board to be known as the Canada–Nova Scotia Offshore Energy Regulator.

Proposed amendments

(2) The Regulator may make recommendations to both governments with respect to proposed amendments to this Act, the Provincial Act, any regulations made under those Acts and to any other legislation relating to petroleum resource and renewable energy activities in the offshore area.

Consultation with Indigenous peoples of Canada

18.‍1 His Majesty in right of Canada or in right of the Province may rely on the Regulator for the purposes of consulting with the Indigenous peoples of Canada respecting any potential adverse impact of a work or activity in the offshore area on existing Aboriginal and treaty rights recognized and affirmed by section 35 of the Constitution Act, 1982 and the Regulator may, on behalf of His Majesty, if appropriate, accommodate any adverse impacts on those rights.

Access to information by governments

19 (1) The Federal Minister and the Provincial Minister are entitled to access to any information or documentation relating to petroleum resource and renewable energy activities in the offshore area that is provided for the purposes of this Act or any regulation made under it and such information or documentation shall, on the request of either Minister, be disclosed to that Minister without requiring the consent of the party who provided the information or documentation.

Storage of information

21 (1) The Regulator shall have responsibility for the storage and curatorship, in a facility in the Province, of

• (a) all petroleum-related geophysical and geological records and reports, reports respecting wells and materials recovered from wells in the offshore area and, without limiting the generality of the foregoing, drill cuttings, fluid samples, hydrocarbon samples and cores recovered from those wells; and

• (b) all records and reports involving geophysical, geological or geotechnical data, data on physical environmental conditions, environmental effects monitoring data or renewable energy resource data — including data on wind, waves and currents — all environmental studies and all geological and geotechnical samples, to the extent that those records and reports, studies and samples relate to offshore renewable energy.

Mobility of staff

(4) For the purpose of being eligible for appointment to a position in the public service by an appointment process under the Public Service Employment Act,

• (a) any person who, immediately prior to being employed by the Regulator, was employed in the public service shall be deemed to be a person employed in the public service in the Department of Natural Resources in the location where that person is performing duties for the Regulator and in a position of an occupational nature and at a level equivalent to the position in which that person is employed by the Regulator; and

• (b) any person who, immediately prior to being employed by the Regulator, was not employed in the public service shall, two years after being employed by the Regulator, be deemed to be a person employed in the public service in the Department of Natural Resources in the location where that person is performing duties for the Regulator and in a position of an occupational nature and at a level equivalent to the position in which that person is employed by the Regulator.

Payment of operating costs

(4) Subject to subsection (4.‍1), the Government of Canada shall pay one-half of the aggregate of the expenditures set out in the budget or revised budget in respect of each fiscal year.

Payment of specific activities

(4.‍1) The Chief Executive Officer may include in the budget or revised budget expenditures associated with specific requirements of one government that are to be paid entirely by that government.

• (b) respecting the fees or charges, or the method of calculating the fees or charges, in respect of any of the Regulator’s activities under this Act or the Impact Assessment Act, that are to be paid by

• (i) a person who makes an application for an authorization under paragraph 142(1)‍(b) or subsection 142.‍011(1) or an application under subsection 143(2), or

• (ii) the holder of an operating licence issued under paragraph 142(1)‍(a) or an authorization issued under paragraph 142(1)‍(b) or subsection 142.‍011(1); and

Amounts not to exceed cost

(3) The amounts of the fees or charges referred to in paragraph (1)‍(b) shall not exceed the cost of the Regulator’s activities under this Act or the Impact Assessment Act.

Petroleum-related Decisions

• (c) must be published without delay by the Canadian Energy Regulator.

Decisions Related to Offshore Renewable Energy

Regulator’s recommendation

Ministers’ decisions

Additional 30 days

No time limit

Publication

Implementation of Ministers’ approval

• (a.‍1) offshore renewable energy recommendations;

• (b.‍1) the principles referred to in section 98.‍7;

• (c.‍1) the development of guidelines and interpretation notes issued under subsection 156(1) or section 188.‍27;

Public notice

42 (1) If the Federal Minister issues or jointly issues a directive under section 41, suspends the implementation of a fundamental decision under section 34, or sets aside or overrules the setting aside of a fundamental decision under section 35, the Minister shall cause a notice of the Minister’s action and, if applicable, of the fundamental decision in relation to which it is exercised, to be published in the Canada Gazette.

Public hearings

44.‍1 The Regulator 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 under this Act.

• (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, facilities, vessels, aircraft or systems, including computer or communication systems, or methods employed to protect them; and

Transboundary pool

(8) The definitions in section 171 also apply in subsections (9) and (10).

Approval subject to agreement

(9) A Canada-Nova Scotia benefits plan submitted for approval in respect of a work or activity to be carried out in a transboundary pool that is the subject of a joint exploitation agreement is not to be approved under this section unless the Regulator and the appropriate authority have agreed on its content.

Disagreement

(10) The Regulator or the appropriate authority — or in respect of any transboundary pool extending into the jurisdiction of a foreign government, the Federal Minister, after having consulted the Minister of Foreign Affairs and the Provincial Minister — may, if they disagree about the content of the plan submitted for approval, refer the matter to an expert in accordance with section 188.‍16. The expert’s decision is deemed to be approval of the plan by the Regulator.

Notice

47 (1) Before a panel is constituted for the purposes of subsection 13(2), 25(3) or 37(1), the government or Minister proposing constitution of the panel shall notify the other government or Minister of the proposal.

Definition of agreement

48 (1) In this section, agreement means an agreement between the Government of Canada and the government of a province respecting resource management and revenue sharing in relation to activities respecting the exploration for or the production of petroleum, or respecting offshore renewable energy projects, carried out on any frontier lands.

Petroleum and Offshore Renewable Energy Resources

call for bids means a call for bids made in accordance with

• (a) in the case of petroleum, section 61, and

• (b) in the case of offshore renewable energy, section 93; (appel d’offres)

Crown reserve area means

• (a) in relation to petroleum, portions of the offshore area in respect of which no petroleum-related interest is in force, and

• (b) in relation to offshore renewable energy, portions of the offshore area in respect of which no submerged land licence is in force respecting a particular renewable energy resource; (réserves de l’État)

interest means

• (a) in relation to petroleum, any former exploration agreement, former lease, former permit, former special renewal permit, exploration licence, production licence or significant discovery licence, and

• (b) in relation to offshore renewable energy, any submerged land licence; (titre)

significant discovery means a discovery indicated by a well on a geological feature that

• (a) demonstrates, through any formation flow test approved by the Regulator, the existence of hydrocarbons in that feature, and

• (b) having regard to geological and engineering factors, suggests the existence of an accumulation of hydrocarbons that has potential for sustained production; (découverte importante)

Prohibition orders — petroleum

57 (1) Subject to sections 32 to 37, the Regulator may, except in a case referred to in subsection (2), by order, for any purposes and under any conditions set out in the order, prohibit the issuance of petroleum-related interests in respect of any portions of the offshore area specified in the order.

Prohibition orders — offshore renewable energy

(1.‍1) The Federal Minister and the Provincial Minister may, except in a case referred to in subsection (2), issue a joint direction to the Regulator to, by order, for any purposes and under any conditions set out in the order, prohibit the issuance of submerged land licences in respect of any portions of the offshore area specified in the order.

Décision du ministre fédéral

(2) Le ministre fédéral peut, en cas de désaccord sur le tracé des frontières avec un gouvernement étranger, interdire, par arrêté, aux conditions qu’il y indique, l’octroi de titres à l’égard de telle partie de la zone extracôtière visée.

Directions deemed not to be statutory instruments

(3) Directions issued under subsection (1.‍1) shall be deemed not to be statutory instruments for the purposes of the Statutory Instruments Act.

Prohibition orders

59 (1) Subject to subsections (2) and (2.‍1), the Regulator may, by order, prohibit any interest owner specified in the order from commencing or continuing any work or activity on all or any portion of the offshore area subject to the interest, in the case of

• (a) an environmental or social problem of a serious nature; or

• (b) dangerous or extreme weather conditions affecting the health or safety of people or the safety of equipment.

Fundamental decision

(2) The making of an order by the Regulator in a case referred to in paragraph (1)‍(a) with respect to a petroleum-related interest is subject to sections 32 to 37.

Ministerial decision

(2.‍1) The making of an order by the Regulator in a case referred to in paragraph (1)‍(a) with respect to a submerged land licence is subject to sections 38.‍1 to 38.‍3.

Suspension des obligations

(4) Est suspendue, tant que l’arrêté est valide, toute obligation liée à un titre et rendue de ce fait inexécutable.

Prohibitions — regulations

59.‍1 Subject to section 6, the Governor in Council may, for the purpose of the protection of the environment, make regulations prohibiting, in respect of any portion of the offshore area that is specified in those regulations and that is located in an area that is or, in the opinion of the Governor in Council, may be identified under an Act of Parliament or of the Legislature of the Province as an area for environmental or wildlife conservation or protection,

• (a) the commencement or continuation of

  • (i) any work or activity relating to the exploration or drilling for or the production, conservation, processing or transportation of petroleum, or

  • (ii) an offshore renewable energy project; or

• (b) the issuance of interests.

Negotiations for compensation

59.‍2 (1) The Federal Minister may enter into negotiations with an interest owner for a determination of any compensation that may be granted to the interest owner for the surrender of the interest in respect of all or any portion of the offshore area subject to the interest, if all or any portion of the offshore area in respect of which the surrender is negotiated is

• (a) located in an area that is identified under an Act of Parliament as an area for environmental or wildlife conservation or protection; or

• (b) subject to regulations made under section 59.‍1.

Notice to Provincial Minister

(2) The Federal Minister shall, not later than 60 days before entering into the negotiations, give written notice to the Provincial Minister of the Federal Minister’s intention to enter into negotiations with the interest owner within the period specified in the notice referred to in subsection (3).

Notice to interest owner

(3) The Federal Minister shall, not later than 30 days before entering into the negotiations, give written notice to the interest owner, and forward a copy of the notice to the Regulator, indicating the Federal Minister’s intention to enter into negotiations with the interest owner within the period specified in the notice.

Power to cancel

(4) The Federal Minister and the Provincial Minister may, by order, jointly cancel the interest in respect of all or any portion of the offshore area that is subject to the interest and that is located in an area that is or, in the opinion of the Governor in Council, may be identified under an Act of Parliament as an area for environmental or wildlife conservation or protection, if

• (a) the interest owner did not enter into negotiations with the Federal Minister within the period specified in the notice given to the interest owner;

• (b) in the opinion of the Federal Minister, the compensation to be granted to the interest owner for the surrender of the interest has not been determined during the negotiations within a reasonable time; or

• (c) in the opinion of the Federal Minister, the negotiations have not resulted in the surrender of the interest by the interest owner within a reasonable time even though the compensation to be granted to the interest owner has been determined during the negotiations.

Amount of compensation

(5) The Federal Minister shall, in the order, specify the amount of the compensation to be granted to the interest owner under subsection 59.‍3(2) in respect of the cancellation of the interest.

Crown reserve areas

(6) The portion of the offshore area subject to the interest referred to in subsection (1) that has been surrendered or the interest referred to in subsection (4) that has been cancelled becomes a Crown reserve area.

Return of deposit

(7) If an interest referred to in subsection (1) is surrendered or if an interest referred to in subsection (4) is cancelled, the deposit balance with respect to the interest held by the person holding that deposit balance on behalf of the interest owner, calculated in accordance with the regulations, shall be returned to the interest owner, less any liability, either direct or by way of indemnity, owed by the interest owner to that person at the time of the surrender or cancellation.

Compensation — surrender

59.‍3 (1) If an interest owner surrenders an interest referred to in subsection 59.‍2(1), His Majesty in right of Canada may grant any compensation that is determined by negotiations with the Federal Minister for the surrender of the interest.

Compensation — cancellation

(2) If an interest is cancelled by an order made under subsection 59.‍2(4), His Majesty in right of Canada may grant an interest owner the compensation that is specified in the order. If the order cancels a petroleum-related interest, it is subject to section 127 in respect of the amount of that compensation, and, for the purposes of this subsection, any reference to the Regulator in that section is to be read as a reference to the Federal Minister.

No compensation

(3) A person shall not have any right to claim or receive any compensation, damages, indemnity or other form of relief from His Majesty in right of Canada or from any servant or agent of His Majesty in right of Canada for any acquired, vested, future or potential right or entitlement that is affected by a surrender of an interest referred to in subsection 59.‍2(1) or a cancellation of an interest referred to in subsection 59.‍2(4), other than compensation that may be granted to an interest owner under this section.

Negotiations for compensation

59.‍4 (1) The Provincial Minister may enter into negotiations with an interest owner for a determination of any compensation that may be granted to the interest owner for the surrender of the interest in respect of all or any portion of the offshore area subject to the interest, if all or any portion of the offshore area in respect of which the surrender is negotiated is

• (a) located in an area that is identified under an Act of the Legislature of the Province as an area for environmental or wildlife conservation or protection; or

• (b) subject to regulations made under section 59.‍1.

Notice to Federal Minister

(2) The Provincial Minister shall, not later than 60 days before entering into the negotiations, give written notice to the Federal Minister of the Provincial Minister’s intention to enter into negotiations with the interest owner within the period specified in the notice referred to in subsection (3).

Notice to interest owner

(3) The Provincial Minister shall, not later than 30 days before entering into the negotiations, give written notice to the interest owner, and forward a copy of the notice to the Regulator, indicating the Provincial Minister’s intent to enter into negotiations with the interest owner within the period specified in the notice.

Power to cancel

(4) The Provincial Minister and the Federal Minister may, by order, jointly cancel the interest in respect of all or any portion of the offshore area that is subject to the interest and that is located in an area that is or, in the opinion of the lieutenant governor in council of the Province, may be identified under an Act of the Legislature of the Province as an area for environmental or wildlife conservation or protection, if

• (a) the interest owner did not enter into negotiations with the Provincial Minister within the period specified in the notice given to the interest owner;

• (b) in the opinion of the Provincial Minister, the compensation to be granted to the interest owner for the surrender of the interest has not been determined during the negotiations within a reasonable time; or

• (c) in the opinion of the Provincial Minister, the negotiations have not resulted in the surrender of the interest by the interest owner within a reasonable time even though the compensation to be granted to the interest owner has been determined during the negotiations.

Amount of compensation

(5) The Provincial Minister shall specify in the order the amount of the compensation to be granted to the interest owner under subsection 59.‍5(2) in respect of the cancellation of the interest.

Crown reserve areas

(6) The portion of the offshore area subject to the interest referred to in subsection (1) that has been surrendered or the interest referred to in subsection (4) that has been cancelled becomes a Crown reserve area.

Return of deposit

(7) If an interest referred to in subsection (1) is surrendered or if an interest referred to in subsection (4) is cancelled, the deposit balance with respect to the interest held by the person holding that deposit balance on behalf of the interest owner, calculated in accordance with the regulations, shall be returned to the interest owner, less any liability, either direct or by way of indemnity, owed by the interest owner to that person at the time of the surrender or cancellation.

Compensation — surrender

59.‍5 (1) If an interest owner surrenders an interest referred to in subsection 59.‍4(1), His Majesty in right of the Province may grant any compensation that is determined by negotiations with the Provincial Minister for the surrender of the interest.

Compensation — cancellation

(2) If an interest is cancelled by an order made under subsection 59.‍4(4), His Majesty in right of the Province may grant an interest owner the compensation that is specified in the order. If the order cancels a petroleum-related interest, it is subject to section 127 in respect of the amount of that compensation, and, for the purposes of this subsection, any reference to the Regulator in that section is to be read as a reference to the Provincial Minister.

No compensation

(3) A person shall not have any right to claim or receive any compensation, damages, indemnity or other form of relief from His Majesty in right of the Province or from any servant or agent of His Majesty in right of the Province for any acquired, vested, future or potential right or entitlement that is affected by a surrender of an interest referred to in subsection 59.‍4(1) or a cancellation of an interest referred to in subsection 59.‍4(4), other than compensation that may be granted to an interest owner under this section.

General Rules Relating to Issuance of Petroleum-Related Interests

Authority to issue petroleum-related interests

60 (1) The Regulator may issue petroleum-related interests in respect of any portion of the offshore area in accordance with this Part and the regulations.

Fundamental decision

(2) The issuance of a petroleum-related interest by the Regulator is subject to sections 32 to 37 unless the interest is issued under subsection 76(1) or paragraph 84(1)‍(a).

Application of interest may be limited

(3) Subject to subsection (4), the application of any petroleum-related interest may be restricted to geological formations and to substances specified in the interest.

Exception

(4) Subsection (3) does not apply to any petroleum-related interest

• (a) that is in force or in respect of which negotiations were completed before or on the coming into force of this section in relation to any portion of the offshore area; or

• (b) that immediately succeeds an interest referred to in paragraph (a) in relation to that portion of the offshore area if that portion was not a Crown reserve area on the expiration of the interest referred to in paragraph (a).

Calls for bids

61 (1) Subject to section 64, the Regulator shall not issue a petroleum-related interest in relation to Crown reserve areas unless

• (a) prior to issuing the interest, the Regulator has made a call for bids in relation to those Crown reserve areas by publishing a notice in accordance with this section and section 66; and

• (b) the interest is issued to the person who submitted, in response to the call, the bid selected by the Regulator in accordance with subsection 62(1).

Fundamental decision

(2) The making of a call for bids for the issuance of a petroleum-related interest is subject to sections 32 to 37.

Requests for call for bids

(3) Any request received by the Regulator to make a call for bids for the issuance of a petroleum-related interest in relation to particular portions of the offshore area shall be considered by the Regulator in selecting the portions of the offshore area to be specified in such a call for bids.

Contents of call for bids

(4) The call for bids shall specify

• (b) if applicable, the geological formations and substances to which the interest is to apply;

Selection of bid

62 (1) A bid submitted in response to a call for bids for the issuance of a petroleum-related interest shall not be selected unless

Publication of bid selected

(2) If the Regulator selects a bid submitted in response to the call for bids, the Regulator shall publish a notice in accordance with section 66 setting out the terms and conditions of that bid.

Interest to be consistent with call

(3) If a petroleum-related interest is to be issued as a result of a call for bids, the terms and conditions of the interest shall be substantially consistent with any terms and conditions in respect of the interest specified in the call.

Publication of terms and conditions of interest

(4) The Regulator shall publish a notice in accordance with section 66 setting out the terms and conditions of any petroleum-related interest issued as a result of a call for bids as soon as practicable after its issuance.

Issuance of interest not required

63 (1) The Regulator is not required to issue a petroleum-related interest as a result of a call for bids.

New call required

(2) Subject to section 64, if the Regulator has not issued a petroleum-related interest with respect to a particular portion of the offshore area specified in a call for bids within six months after the closing date specified in the call for bids, the Regulator shall, before issuing a petroleum-related interest in relation to that portion of the offshore area, make a new call for bids.

Exception to call for bids — petroleum

64 (1) Subject to sections 32 to 37, the Regulator may issue a petroleum-related interest, in relation to any Crown reserve area, without making a call for bids if

Failure to comply with call procedures

65 If a petroleum-related interest has been issued, it is not vitiated by reason only of a failure to comply with any of the requirements set out in sections 61 to 64 respecting the form and content of, and time and manner of publishing, any notice required by those sections in relation to that interest.

Term of significant discovery licence

(3) Subject to subsection 88(1), a significant discovery licence continues in force, in relation to each portion of the offshore area to which the licence applies, for a term of 25 years.

Automatic extension of term

(3.‍1) If the interest owner has made an application for a declaration of commercial discovery referred to in subsection 81(1) or for the issuance of a production licence referred to in subsection 84(1), the term of the significant discovery licence is extended until the Regulator makes a decision respecting that application.

Cancelling automatic extension

(3.‍2) The extension to the term of the significant discovery licence remains in force after the Regulator makes a declaration of commercial discovery, but the Regulator may cancel the extension if the interest owner fails to submit an application for the issuance of a production licence within a reasonable time.

Exception

(2) Despite subsection (1), the Regulator may, subject to such terms and conditions as the Regulator deems appropriate, authorize any interest holder of a petroleum-related interest or a share in such an interest to produce petroleum on the portions of the offshore area subject to the interest or share for use in the exploration or drilling for or development of petroleum on any portion of the offshore area.

DIVISION V 

Offshore Renewable Energy

General Rules Relating to Issuance of Submerged Land Licences

• (a) prior to issuing the licence, the Regulator has made a call for bids in relation to those Crown reserve areas by publishing a notice in accordance with this section and section 98.‍1; and

• (b) the licence is issued to the person who submitted, in response to the call, a bid selected by the Regulator in accordance with subsection 94(1).

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

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

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

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

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

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

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

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

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