120. [Repealed, 1992, c. 35, s. 49]
Marginal note:Operating agreements
121. (1) Where a dispute of a prescribed class arises between two or more interest holders of an interest in respect of any operations conducted in carrying out a work or activity in the offshore area authorized under Part III and an operating agreement or other similar arrangement that extends to such work or activity is not in force or was made prior to March 5, 1982, the matters in dispute may, by order of the Board, be submitted to arbitration conducted in accordance with the regulations.
(2) Subsection (1) applies only in respect of
(a) interests in force on March 5, 1982 in relation to any portion of the offshore area; and
(b) interests immediately succeeding the interests referred to in paragraph (a) in relation to that portion of the offshore area where that portion of the offshore area was not a Crown reserve area on the expiration of the interests referred to in paragraph (a).
Marginal note:Arbitration order
(3) An order of an arbitrator made pursuant to arbitration under subsection (1) is binding on all interest holders specified in the order from the date specified in the order, and the terms and conditions of the order are deemed to be terms and conditions of the interest to which the matters relate.
122. (1) Subject to section 7, the Governor in Council may make regulations for carrying out the purposes and provisions of section 121 and, without restricting the generality of the foregoing, may make regulations
(a) governing arbitration and the making of arbitration orders;
(b) prescribing the classes of disputes that may be submitted to arbitration; and
(c) governing appeals from and enforcement of arbitration orders.
Marginal note:Application of regulations
(2) Regulations made under subsection (1) may apply generally to the offshore area or any portion thereof.
- 1987, c. 3, s. 122;
- 1992, c. 35, s. 50.
Cancellation of Rights
Marginal note:Notice to comply
123. (1) Where the Board has reason to believe that an interest owner or holder is failing or has failed to meet any requirement of or under this Part or Part III or any regulation made under either Part, the Board may give notice to that interest owner or holder requiring compliance with the requirement within ninety days after the date of the notice or within such longer period as the Board considers appropriate.
(2) Notwithstanding anything in this Part but subject to sections 31 to 40, where an interest owner or holder fails to comply with a notice under subsection (1) within the period specified in the notice and the Board considers that the failure to comply warrants cancellation of the interest of the interest owner or holder 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 Board may, by order subject to section 124, cancel that interest or share, and where the interest or share is so cancelled, the portions of the offshore area thereunder become Crown reserve areas.
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