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

Act current to 2016-06-06 and last amended on 2016-02-27. Previous Versions

 [Repealed, 2015, c. 4, s. 104]

 [Repealed, 2015, c. 4, s. 104]

 [Repealed, 2015, c. 4, s. 104]

 [Repealed, 2015, c. 4, s. 104]

 [Repealed, 2015, c. 4, s. 104]

PART VIIDrilling Fund

Interpretation

Marginal note:Definitions

 In this Part,

Canadian development expense

frais d’aménagement au Canada

Canadian development expense has the meaning assigned by paragraph 66.2(5)(a) of the Income Tax Act, except that

  • (a) there shall be excluded from that meaning any Canadian exploration and development overhead expense, and

  • (b) all that portion of that paragraph following clause (vii)(C) thereof shall be read as follows:

“but any amount of assistance or benefit that a taxpayer has received, is entitled to receive or can reasonably be expected to receive after May 25, 1976 from a government, municipality or other public authority in respect of or related to his Canadian development expense, whether as a grant, subsidy, forgivable loan, deduction from royalty or tax, investment allowance or any other form of assistance or benefit, other than an investment tax credit in respect of a qualified Canadian exploration expenditure, shall reduce the amount of any of the expenses described in any of subparagraphs (i) to (v); and”; (frais d’aménagement au Canada)

Canadian exploration and development overhead expense

frais généraux d’exploration et d’aménagement au Canada

Canadian exploration and development overhead expense has the meaning assigned by subsection 1206(1) of the Income Tax Regulations; (frais généraux d’exploration et d’aménagement au Canada)

Canadian exploration expense

frais d’exploration au Canada

Canadian exploration expense has the meaning assigned by paragraph 66.1(6)(a) of the Income Tax Act, except that

  • (a) there shall be excluded from that meaning any Canadian exploration and development overhead expense and any expense referred to in subparagraph (i) thereof,

  • (b) any reference in that paragraph to any expense incurred in drilling or completing an oil or gas well in Canada shall be read as including, with such modifications as the circumstances require, a reference to

    • (i) any expense incurred in respect of an exploratory probe in the offshore area, and

    • (ii) any expense incurred in respect of a well in relation to a three dimensional seismic survey, an engineering study or an analytical study for the purpose of determining the location or extent of an accumulation of petroleum in the offshore area, and

  • (c) all that portion of that paragraph following clause (vii)(C) thereof shall be read as follows:

“but any amount of assistance or benefit that a taxpayer has received, is entitled to receive or can reasonably be expected to receive after May 25, 1976 from a government, municipality or other public authority in respect of or related to a Canadian exploration expense, whether as a grant, subsidy, forgivable loan, deduction from royalty or tax, investment allowance or any other form of assistance or benefit, other than an investment tax credit in respect of a qualified Canadian exploration expenditure, shall reduce the amount of any of the expenses described in any of subparagraphs (i) to (v); and”; (frais d’exploration au Canada)

investment tax credit

crédit d’impôt à l’investissement

investment tax credit has the meaning assigned by subsection 127(9) of the Income Tax Act; (crédit d’impôt à l’investissement)

Nova Scotia Resources (Ventures) Limited

Société

Nova Scotia Resources (Ventures) Limited means the company incorporated on November 20, 1981 under the Companies Act, Chapter 42 of the Revised Statutes of Nova Scotia, 1967; (Société)

qualified Canadian exploration expenditure

dépense admissible d’exploration au Canada

qualified Canadian exploration expenditure has the meaning assigned by subsection 127(9) of the Income Tax Act. (dépense admissible d’exploration au Canada)

Drilling Assistance

Marginal note:Assistance to Nova Scotia Resources (Ventures) Limited
  •  (1) Subject to subsection (2), the Federal Minister may, on application, make payments to Nova Scotia Resources (Ventures) Limited in respect of Canadian exploration expenses and Canadian development expenses incurred by Nova Scotia Resources (Ventures) Limited that could contribute to early development of petroleum in the offshore area.

  • Marginal note:Limitation

    (2) Payments made by the Federal Minister pursuant to subsection (1) shall not exceed fifty per cent of the aggregate of the Canadian exploration expenses and Canadian development expenses incurred in respect of wells

    • (a) subject to paragraph (b), the drilling of which began during the period commencing on August 27, 1986 and ending on December 31, 1991, or

    • (b) in the case of expenses referred to in subparagraph (b)(ii) of the definition Canadian exploration expense in section 239, during the period referred to in paragraph (a),

    to the extent that those expenses are reasonable in the circumstances.

Marginal note:Transitional assistance

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

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

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

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

Appropriation

Marginal note:Appropriation

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

Administration

Marginal note:Documents, records and books

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

Marginal note:Audit or examination

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

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

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

Regulations

Marginal note:Regulations

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

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

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

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

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