Short Title

Marginal note:Short title

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

Interpretation

Marginal note:Definitions

2 In this Act,

Atlantic Accord

Atlantic Accord means the Memorandum of Agreement between the Government of Canada and the Government of the Province on offshore petroleum resource management and revenue sharing dated February 11, 1985, and includes any amendments thereto; (Accord atlantique)

Board

Board means the Canada–Newfoundland and Labrador Offshore Petroleum Board referred to in section 9; (Office)

Canada–Newfoundland and Labrador benefits plan

Canada–Newfoundland and Labrador benefits plan means a plan submitted under subsection 45(2); (plan de retombées économiques)

Canada-Newfoundland benefits plan

Canada-Newfoundland benefits plan[Repealed, 2014, c. 13, s. 4]

Chief Executive Officer

Chief Executive Officer means the Chief Executive Officer of the Board appointed pursuant to section 24; (premier dirigeant)

development plan

development plan means a plan submitted pursuant to subsection 139(2) for the purpose of obtaining approval of the general approach of developing a pool or field as proposed in the plan; (plan de mise en valeur)

Federal Government

Federal Government means the Governor in Council; (gouvernement fédéral)

Federal Minister

Federal Minister means the Minister of Natural Resources; (ministre fédéral)

field

field

• (a) means a general surface area underlain or appearing to be underlain by one or more pools, and

• (b) includes the subsurface regions vertically beneath the general surface area referred to in paragraph (a); (champ)

former regulations

former regulations means the Canada Oil and Gas Land Regulations made pursuant to the Public Lands Grants Act and the Territorial Lands Act and includes orders made pursuant to those Regulations; (anciens règlements)

fundamental decision

fundamental decision means a decision made by the Board respecting the exercise of a power or the performance of a duty pursuant to a provision of this Act that expressly provides for the exercise of the power or the performance of the duty subject to sections 31 to 40; (décision majeure)

gas

gas means natural gas and includes all substances, other than oil, that are produced in association with natural gas; (gaz)

government

government means the Federal Government, the Provincial Government or both, as the context requires; (Version anglaise seulement)

Minister

Minister means the Federal Minister, the Provincial Minister or both, as the context requires; (Version anglaise seulement)

offshore area

offshore area means those submarine areas lying seaward of the low water mark of the Province and extending, at any location, as far as

• (a) any prescribed line, or

• (b) where 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; (zone extracôtière ou zone)

oil

oil means

• (a) crude oil regardless of gravity produced at a well head in liquid form, and

• (b) any other hydrocarbons, except coal and gas, and, without limiting the generality of the foregoing, hydrocarbons that may be extracted or recovered from deposits of oil sand, bitumen, bituminous sand, oil shale or from any other types of deposits on the seabed or subsoil thereof of the offshore area; (pétrole)

petroleum

petroleum means oil or gas; (hydrocarbures)

pool

pool means a natural underground reservoir containing or appearing to contain an accumulation of petroleum that is separated or appears to be separated from any other such accumulation; (gisement)

prescribed

prescribed means prescribed by regulations made by the Governor in Council; (Version anglaise seulement)

Province

Province means the province of Newfoundland and Labrador; (province)

Provincial Act

Provincial Act means the Canada-Newfoundland and Labrador Atlantic Accord Implementation Newfoundland and Labrador Act, R.S.N.L. 1990, c. C-2, as amended from time to time; (loi provinciale)

Provincial Government

Provincial Government means the lieutenant governor in council of the Province; (gouvernement provincial)

Provincial Minister

Provincial Minister means, other than for the purposes of Part III.1, the Minister of the Crown in right of the Province designated by the Provincial Government as the provincial minister for the purposes of this Act; (ministre provincial)

spill-treating agent

spill-treating agent, except in section 161.5, means a spill-treating agent that is on the list established under section 14.2 of the Canada Oil and Gas Operations Act. (agent de traitement)

Marginal note:Construction

3 For greater certainty, the provisions of this Act shall not be interpreted as providing a basis for any claim by or on behalf of any province in respect of any interest in or legislative jurisdiction over any offshore area or any living or non-living resources of any offshore area.

Marginal note:Precedence over other Acts of Parliament

4 In case of any inconsistency or conflict between

• (a) this Act or any regulations made thereunder, and

• (b) any other Act of Parliament that applies to the offshore area or any regulations made under that Act, except the Labrador Inuit Land Claims Agreement Act,

this Act and the regulations made thereunder take precedence.

Prescribing Limits of Offshore Area and Settlement Procedure for Disputes

Marginal note:Regulations

• 5 (1) Subject to section 7, the Governor in Council may make regulations prescribing lines enclosing areas adjacent to the Province for the purpose of paragraph (a) of the definition offshore area in section 2.

• Marginal note:Issue of charts

  (2) The Federal Minister may cause charts to be issued setting out the offshore area or any portion thereof as may be set out consistent with the nature and scale of the chart.

• Marginal note:Evidence

  (3) In any legal or other proceedings, a chart purporting to be issued by or under the authority of the Federal Minister is conclusive proof of the limits of the offshore area or portion thereof set out in the chart without proof of the signature or official character of the person purporting to have issued the chart.

Marginal note:Definitions

• 6 (1) In this section,

  agreement

  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 carried out on any frontier lands; (accord)

  frontier lands

  frontier lands means lands that belong to Her Majesty in right of Canada, or in respect of which Her Majesty in right of Canada has the right to dispose of or exploit the natural resources and that are situated in

  • (a) Yukon, the Northwest Territories, Nunavut or Sable Island, or

  • (b) those submarine areas, not within a province, adjacent to the coast of Canada and extending throughout the natural prolongation of the land territory of Canada to the outer edge of the continental margin or to 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. (terres domaniales)

• Marginal note:Disputes between neighbouring provinces

  (2) Where a dispute between the Province and any other province that is a party to an agreement arises in relation to a line or portion thereof prescribed or to be prescribed for the purpose of the definition offshore area in section 2 and the Government of Canada is unable, by means of negotiation, to bring about a resolution of the dispute within a reasonable time, the dispute shall, at such time as the Federal Minister deems appropriate, be referred to an impartial person, tribunal or body and settled by means of the procedure determined in accordance with subsection (3).

• Marginal note:Procedures determined by Federal Minister

  (3) For the purposes of this section, the person, tribunal or body to which a dispute is to be referred, the constitution and membership of any tribunal or body and the procedures for the settlement of a dispute shall be determined by the Federal Minister after consultation with the provinces concerned in the dispute.

• Marginal note:Principles of international law to apply

  (4) Where the procedure for the settlement of a dispute pursuant to this section involves arbitration, the arbitrator shall apply the principles of international law governing maritime boundary delimitation, with such modifications as the circumstances require.

• Marginal note:Approval of Provincial Minister not required before regulation made

  (5) Notwithstanding section 7, where a dispute is settled pursuant to this section and a regulation under subsection 5(1) prescribing the line in relation to which the dispute arose is made in accordance with the settlement, the regulation is not subject to the procedure set out in section 7 with respect to the portion of the line to which the dispute related.

Condition Precedent for Certain Regulations

Marginal note:Provincial Minister’s approval

• 7 (1) Before a regulation is made under subsection 5(1), section 29.1, subsection 41(7), section 64, subsection 67(2), section 118, subsection 122(1), 125(1), 149(1), 162(2.3), 163(1.02) 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.

• Marginal note:Approval of Provincial minister

  (2) Before a regulation is made under subsection 205.001(3) or (4) or 205.124(1), the Federal Minister shall consult the minister of the government of the Province who is responsible for occupational health and safety with respect to the proposed regulation and no regulation shall be so made without the approval of that minister.

Application

Marginal note:Application

• 8 (1) This Act applies within the offshore area.

• Marginal note:Excluded legislation

  (2) Subject to section 101, the Canada Petroleum Resources Act and the Canada Oil and Gas Operations Act and any regulations made under those Acts do not apply within the offshore area.

PART IJoint Management

Establishment of Board

Marginal note:Jointly established Board

• 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 Offshore Petroleum Board.

• Marginal note:Change of name

  (1.1) The name of the Canada-Newfoundland Offshore Petroleum Board is changed to Canada–Newfoundland and Labrador Offshore Petroleum Board and the Canada–Newfoundland and Labrador Offshore Petroleum Board is deemed to have been established under subsection (1).

• Marginal note:References

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

• Marginal note:Treated as Provincial entity

  (2) Subject to subsections (3) and (4), the Board shall for all purposes be treated as having been established by or under a law of the Province.

• Marginal note:Powers of corporation

  (3) The Board has the legal powers and capacities of a corporation incorporated under the Canada Business Corporations Act, including those set out in section 21 of the Interpretation Act.

• Marginal note:Dissolution of Board

  (4) The Board may be dissolved only by the joint operation of an Act of Parliament and an Act of the Legislature of the Province.

Marginal note:Board consisting of seven members

• 10 (1) The Board shall consist of seven members.

• Marginal note:Federal and Provincial appointees

  (2) Three members of the Board are to be appointed by the Federal Government, three by the Provincial Government and the Chairperson of the Board is to be appointed by both the Federal Government and the Provincial Government.

• Marginal note:Vice-chairpersons

  (3) One or two members of the Board may be designated to be vice-chairpersons of the Board if they are so designated by both the Federal Government and the Provincial Government.

• Marginal note:Designation by both governments

  (4) The designation of a vice-chairperson of the Board pursuant to subsection (3) is effective after both governments have each made the designation.

• Marginal note:Alternate members

  (5) Each government may appoint one alternate member to act as a member of the Board in the absence of any of the members of the Board appointed by that government.

• Marginal note:Joint appointees

  (6) Notwithstanding subsection (2) or (5), any member or alternate member of the Board may be appointed by both the Federal Government and the Provincial Government.

Marginal note:Qualifications

• 11 (1) No member of the Board shall, during the term of office of that member on the Board, be employed in the Public Service of Canada or be a civil servant in the Province.

• Marginal note:Definitions

  (2) In this section,

  civil servant

  fonctionnaire

  civil servant has the same meaning as in the Provincial Act; (fonctionnaire)

  Public Service of Canada

  administration fédérale

  Public Service of Canada has the meaning given the expression “public service” in the Public Service Labour Relations Act, and includes any portion of the federal public administration designated by order in council pursuant to this subsection and for the purposes of subsection (1) as part of the Public Service of Canada. (administration fédérale)

Marginal note:Deemed consultation between governments re Chairperson

• 12 (1) Consultation between the two governments with respect to the selection of the Chairperson of the Board shall be deemed to commence

  • (a) six months prior to the expiration of the term of office of the incumbent Chairperson, or

  • (b) where applicable, on the date of receipt by the Board of notice of the death, resignation or termination of appointment of the incumbent Chairperson,

  whichever occurs earlier.

• Marginal note:Where no agreement on Chairperson

  (2) Where the two governments fail to agree on the appointment of the Chairperson of the Board within three months after the commencement of consultation between the governments, the Chairperson shall be selected by a panel, consisting of three members and constituted in accordance with this section, unless, at any time prior to the selection of the Chairperson by the panel, the two governments agree on the appointment.

• Marginal note:Appointment of members of panel

  (3) One member of the panel shall be appointed by each government within thirty days after the expiration of the three months referred to in subsection (2).

• Marginal note:Chairperson of panel

  (4) The chairperson of the panel shall be appointed

  • (a) jointly by the two members of the panel appointed pursuant to subsection (3) within thirty days after the later of the two appointments made pursuant to that subsection; or

  • (b) if the two members of the panel fail to agree on the appointment of the chairperson of the panel within the 30-day period referred to in paragraph (a), by the Chief Justice of Newfoundland and Labrador within 30 days after the expiration of that period.

• Marginal note:Selection of Chairperson of Board within 60 days

  (5) The Chairperson of the Board shall be selected by the panel within 60 days after the appointment of the chairperson of the panel.

• Marginal note:Decision of panel binding

  (6) The decision of the panel selecting a Chairperson of the Board is final and binding on both governments.

Marginal note:Salaries of joint appointees

• 13 (1) Subject to section 15, the salary and other terms and conditions of the appointment of the Chairperson of the Board or any other member or alternate member appointed by both governments, including the effective date of the appointment, shall be fixed by an order of the Federal Government and an order of the Provincial Government after agreement has been reached by both governments on the salary and other terms and conditions.

• Marginal note:Salaries of separate appointees

  (2) The salary and other terms and conditions of the appointment of any member appointed by either the Federal Government or the Provincial Government shall be agreed on by both governments.

Marginal note:Absence or incapacity of Chairperson

14 The Board shall designate a member to act as Chairperson of the Board during any absence or incapacity of the Chairperson or vacancy in the office of Chairperson, and that person, while acting as Chairperson, has and may exercise all of the powers and perform all of the duties and functions of the Chairperson.

Marginal note:Term of first Chairperson

• 15 (1) The first Chairperson of the Board shall be appointed for a term of seven years.

• Marginal note:Terms of first members

  (2) The first three members of the Board to be appointed by each government shall be appointed for terms of four, five and six years, respectively.

• Marginal note:Terms of office after initial term

  (3) On the expiration of the initial terms of office referred to in subsections (1) and (2), the Chairperson and members of the Board shall be appointed for terms of six years.

• Marginal note:Good behaviour

  (4) A member of the Board, including the Chairperson, shall hold office during good behaviour, but may be removed for cause

  • (a) where the member is appointed by either government, by that government; or

  • (b) where the member is appointed by both governments, by both governments.

• Marginal note:Re-appointment

  (5) On the expiration of a term of office, the Chairperson or a member of the Board is eligible for re-appointment for one or more further terms.

Marginal note:Conflict of interest guidelines

• 16 (1) Members of the Board, including the Chairperson, and the Chief Executive Officer appointed pursuant to section 24 shall be subject to conflict of interest guidelines established jointly by the Federal Minister and Provincial Minister and are not subject to any conflict of interest guidelines established by the Federal Government.

• Marginal note:Insurance

  (2) The Board shall purchase and maintain insurance for the benefit of a person who is a present or former member, officer or employee of the Board, and the heirs or legal representatives of that person, against any liability incurred by that person in the capacity as such a member, officer or employee, except where the liability relates to a failure to act honestly and in good faith with regard to the best interests of the Board.

• Marginal note:Expenditures for insurance

  (3) For greater certainty, the expenditures of the Board associated with purchasing and maintaining the insurance referred to in subsection (2) shall form part of the budget or revised budget of the Board in respect of a fiscal year.

• Marginal note:Power to indemnify

  (4) Notwithstanding subsection (2), where the Board has established to the satisfaction of the Federal Minister the impossibility of purchasing and maintaining the insurance referred to in subsection (2), the Government of Canada shall, subject to subsection (6), indemnify a person who is a present or former member, officer or employee of the Board, or the heirs or legal representatives of that person, against all costs, charges and expenses, including an amount paid to settle an action or satisfy a judgment, reasonably incurred in respect of any civil, criminal or administrative action or proceeding to which that person is a party by reason of being or having been such a member, officer or employee, if that person

  • (a) acted honestly and in good faith with a view to the best interests of the Board; and

  • (b) in the case of any criminal or administrative action or proceeding that is enforced by a monetary penalty, believed, on reasonable grounds, that the conduct in issue was lawful.

• Marginal note:Additional Coverage

  (5) Where the Board has purchased and maintained insurance referred to in subsection (2), the Government of Canada shall indemnify a person referred to in that subsection, or the heirs or legal representatives of that person, for any liability incurred by that person in accordance with this section to the extent that the insurance purchased for the benefit of that person does not cover such liability.

• Marginal note:Amount to settle an action

  (6) The Government of Canada is not obliged to indemnify anyone pursuant to subsection (4) against an amount paid to settle an action unless the amount so paid was approved by the Government of Canada.

• Marginal note:Both governments share costs of indemnification

  (7) Where the Government of the Province has indemnified a person referred to in subsection (4), or the heirs or legal representatives of that person, pursuant to section 16 of the Provincial Act, the Government of Canada may pay to the Government of the Province one-half of the amount so indemnified.

• Marginal note:Payable out of Consolidated Revenue Fund

  (8) Any amount payable in respect of indemnification under this section may be paid out of the Consolidated Revenue Fund.

Functions of Board

Marginal note:Functions of Board

• 17 (1) The Board shall perform such duties and functions as are conferred or imposed on the Board by or pursuant to the Atlantic Accord or this Act.

• Marginal note:Proposed amendments

  (2) The Board may make recommendations to both governments with respect to proposed amendments to this Act, the Provincial Act and any regulations made under those Acts.

Marginal note:Access to information by governments

• 18 (1) The Federal Minister and the Provincial Minister are entitled to access to any information or documentation relating to petroleum resource activities in the offshore area that is provided for the purposes of this Act or any regulation made thereunder 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.

• Marginal note:Applicable provision

  (2) Section 119 applies, with such modifications as the circumstances require, in respect of any disclosure of information or documentation or the production or giving of evidence relating thereto by a Minister as if the references in that section to the administration or enforcement of a Part of this Act included references to the administration or enforcement of the Provincial Act or any Part thereof.

Administration

Marginal note:Meetings of Board

19 A meeting of the Board shall be held

• (a) once every month unless the members of the Board unanimously agree to defer such a meeting; and

• (b) at any other time

  • (i) at the call of the Chairperson of the Board,

  • (ii) on the request of any two members of the Board, or

  • (iii) on the request of the Federal Minister or the Provincial Minister to review any matter referred to it by that Minister.

Marginal note:Quorum

• 20 (1) Four members constitute a quorum of the Board.

• Marginal note:Majority vote

  (2) Where, in the absence of unanimous agreement, a vote is required to be taken in respect of a decision of the Board, the decision shall be made on the basis of a majority vote of the members of the Board.

Marginal note:Location of offices and staff

21 The principal office and staff of the Board shall be located in the Province.

Marginal note:Storage of information

22 The Board shall establish, maintain and operate a facility in the Province for the storage and curatorship of all geophysical records and geological and hydrocarbon samples relating to the offshore area.

Marginal note:By-laws and guidelines

23 Subject to this Act and the Atlantic Accord, the Board may

• (a) make by-laws respecting

  • (i) the members, officers and employees of the Board,

  • (ii) the attendance and participation, including voting rights, at meetings of the Board of alternate members of the Board appointed pursuant to subsection 10(5),

  • (iii) the manner of appointing the officers and employees of the Board on the basis of selection according to merit, including the holding of open competitions therefor,

  • (iv) the procedures to be followed in the performance of any of the duties and functions of the Board,

  • (v) the conduct of meetings of the Board,

  • (vi) the manner of dealing with matters and business before the Board, and

  • (vii) generally, the carrying on of the work of the Board and the management of the internal affairs thereof; and

• (b) establish conflict of interest guidelines respecting persons employed by the Board pursuant to subsection 25(1).

Marginal note:Chief Executive Officer

• 24 (1) There shall be a Chief Executive Officer of the Board who

  • (a) where both the Federal Government and the Provincial Government appoint the Chairperson as Chief Executive Officer, is the Chairperson of the Board; or

  • (b) in any other case, is to be appointed by the Board by means of an open competition.

• Marginal note:Approval required

  (2) The appointment of a Chief Executive Officer pursuant to paragraph (1)(b) is subject to the approval of both governments.

• Marginal note:Panel to choose Chief Executive Officer in the absence of agreement

  (3) Where either government fails to make an appointment pursuant to paragraph (1)(a) or to approve the appointment of a Chief Executive Officer pursuant to paragraph (1)(b), the Chief Executive Officer shall be appointed by both the Federal Government and the Provincial Government after having been selected in accordance with section 12 and that section applies, with such modifications as the circumstances require, to the selection of the Chief Executive Officer.

• Marginal note:Application of subsection 13(1)

  (4) Subsection 13(1) applies, with such modifications as the circumstances require, to the appointment of the Chief Executive Officer pursuant to paragraph (1)(a) or subsection (3).

• Marginal note:Absence or incapacity of Chief Executive Officer

  (5) The Board shall designate a person to act as Chief Executive Officer during any absence or incapacity of that Officer or vacancy in the office of Chief Executive Officer and that person, while acting as Chief Executive Officer, has and may exercise all the powers and perform all of the duties and functions of that office.

Marginal note:Staff of the Board

• 25 (1) The Board may, on the recommendation of the Chief Executive Officer, employ such other officers and such employees as are necessary to properly perform the duties and functions of the Board under this Act and the Atlantic Accord.

• Marginal note:Method of selection

  (2) The appointment of every person employed pursuant to subsection (1) shall be based on selection according to merit.

• Marginal note:Presumption

  (3) Except as provided in subsection (4), every person employed pursuant to subsection (1) is deemed not to be employed in the federal public administration or the public service of the Province.

• Marginal note: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 Board, was employed in the public service shall be deemed to be a person employed in the public service in the Department of Energy, Mines and Resources in the location where that person is performing duties for the Board and in a position of an occupational nature and at a level equivalent to the position in which that person is employed by the Board; and

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

• Marginal note:Application of Newfoundland and Labrador legislation

  (4.1) Newfoundland and Labrador social legislation as defined in subsection 205.001(1), the provisions of the Labour Relations Act, R.S.N.L. 1990, c. L-1, as amended from time to time, and the provisions of the Occupational Health and Safety Act, R.S.N.L. 1990, c. O-3, as amended from time to time, and any regulations made under that legislation or those Acts, apply to persons employed under subsection (1).

• Marginal note:Non-application of Canada Labour Code

  (4.2) Despite section 4 and subsections 123(1) and 168(1) of the Canada Labour Code, that Act does not apply to persons employed under subsection (1).

• Definition of public service

  (5) In this section, public service has the same meaning as in the Public Service Labour Relations Act.

Marginal note:Auditor

26 The Board shall appoint an auditor, for such term as is set by the Board, for the purposes of auditing the financial statements of the Board.

Marginal note:Audit and evaluation committee

• 26.1 (1) The Board shall appoint an audit and evaluation committee consisting of not fewer than three members of the Board and fix the duties and functions of the committee and may, by by-law, provide for the payment of expenses to the members of the committee.

• Marginal note:Internal audit

  (2) In addition to any other duties and functions that it is required to perform, the audit and evaluation committee shall cause internal audits to be conducted to ensure that the officers and employees of the Board act in accordance with management systems and controls established by the Board.

Marginal note:Budget

• 27 (1) The Chief Executive Officer shall, in respect of each fiscal year, prepare a budget for the Board sufficient to permit the Board to properly exercise its powers and perform its duties and functions.

• Marginal note:Submission to governments

  (2) Following approval of the budget by the Board, the budget shall be submitted to the Federal Minister and the Provincial Minister, at such time as may be specified by each Minister, for their consideration and approval.

• Marginal note:Revised budget

  (3) Where it appears that the actual aggregate of the expenditures of the Board in respect of any fiscal year is likely to be substantially greater or less than that estimated in its budget in respect of that fiscal year, the Board shall submit to both Ministers for their consideration and approval a revised budget in respect of that fiscal year containing such particulars as may be requested by either Minister.

• Marginal note:Payment of operating costs

  (4) The Government of Canada shall pay one-half of the aggregate of the expenditures set out in the budget or revised budget, where applicable, submitted and approved pursuant to this section in respect of each fiscal year.

• Marginal note:Appropriation

  (5) Subject to any other Act of Parliament that appropriates moneys for the payment required by subsection (4), the sums required for such payment shall be paid out of the Consolidated Revenue Fund from time to time as required.

Marginal note:Access to books and accounts

28 Subject to subsection 18(2), both the Federal Minister and the Provincial Minister are entitled to have access to the books and accounts of the Board.

Marginal note:Annual report

• 29 (1) The Board shall, in respect of each fiscal year, prepare a report and submit it to the Federal Minister and the Provincial Minister not later than ninety days after the expiration of that fiscal year.

• Marginal note:Contents of report

  (2) Each annual report submitted under subsection (1) shall contain an audited financial statement and a description of the activities of the Board, including those relating to occupational health and safety, during the fiscal year covered by the report.

• Marginal note:Tabling of report

  (3) The Federal Minister shall cause the annual report referred to in this section

  • (a) to be laid before each House of Parliament on any of the first fifteen days on which that House is sitting after the day the report is submitted to the Federal Minister; or

  • (b) where it is not possible to cause the report to be laid pursuant to paragraph (a) within thirty days after the day the report is submitted to the Federal Minister, to be published within that thirty day period.

Cost Recovery

Marginal note:Regulations respecting fees, etc.

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

  • (a) respecting the fees or charges, or the method of calculating the fees or charges, to be paid for the provision, by the Board, of a service or product under this Act;

  • (b) respecting the fees or charges, or the method of calculating the fees or charges, in respect of any of the Board’s activities under this Act or under the Canadian Environmental Assessment Act, 2012, that are to be paid by

    • (i) a person who makes an application for an authorization under paragraph 138(1)(b) 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); and

  • (c) respecting the refund of all or part of any fee or charge referred to in paragraph (a) or (b), or the method of calculating that refund.

• Marginal note:Amounts not to exceed cost

  (2) The amounts of the fees or charges referred to in paragraph (1)(a) shall not exceed the cost of providing the services or products.

• Marginal note: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 Board’s activities under this Act or under the Canadian Environmental Assessment Act, 2012.

Marginal note:Non-application of User Fees Act

29.2 The User Fees Act does not apply to any fees or charges payable in accordance with regulations made under section 29.1.

Marginal note:Remittance of fees and charges

29.3 One half of the amounts of the fees and charges obtained in accordance with regulations made under section 29.1 shall be paid to the credit of the Receiver General and the other half shall be paid to the credit of Her Majesty in right of the Province, in the time and manner prescribed under those regulations.

Decisions in Relation to Offshore Management

Marginal note:Board’s decisions final

30 Subject to this Act, the exercise of a power or the performance of a duty by the Board pursuant to this Act is final and not subject to the review or approval of either government or either Minister.

Marginal note:Notice of fundamental decisions

• 31 (1) Where a fundamental decision is made by the Board, the Board shall, forthwith after making the decision, give written notice of that decision to the Federal Minister and the Provincial Minister.

• Marginal note:Advice by Ministers to Board

  (2) Within thirty days after receipt of a notice of a fundamental decision pursuant to subsection (1), the Federal Minister and the Provincial Minister shall each advise, in writing, the Board and each other whether that Minister approves or disapproves that decision and where the Board does not receive the advice within those thirty days, the Board shall be deemed, for the purposes of section 32, to be advised, in writing, on the expiration of that period, of the approval of that decision by that Minister.

Marginal note:Conditions for implementation of fundamental decision

• 32 (1) A fundamental decision shall not be implemented unless the Board is advised, in writing, that

  • (a) both the Federal Minister and the Provincial Minister approve that decision; or

  • (b) in any other case, the Minister having authority in relation to that decision, as determined under section 34, approves that decision and, where the other Minister has exercised the power to suspend the approval of that decision pursuant to section 39,

    • (i) the period of suspension referred to in that section has expired, or

    • (ii) agreement is reached between both Ministers to approve that decision,

    whichever occurs first.

• Marginal note:Compliance with advice or governments

  (2) Where the conditions referred to in subsection (1) have been satisfied in respect of a fundamental decision, that decision shall be implemented forthwith by the Board.

Marginal note:Definitions

33 In this section and sections 34 to 37,

security of supply

security of supply, in respect of any period, means the anticipation of self-sufficiency during each of the five calendar years in that period, taking into account the aggregate of anticipated additions to producing capacity and anticipated adjustments to refining capacity; (sécurité des approvisionnements)

self-sufficiency

self-sufficiency means a volume of suitable crude oil and equivalent substances available from domestic Canadian hydrocarbon producing capacity that is adequate to supply the total feedstock requirements of Canadian refineries necessary to satisfy the total refined product requirements of Canada, excluding those feedstock requirements necessary to produce specialty refined products; (autosuffisance)

suitable crude oil and equivalent substances

suitable crude oil and equivalent substances means those substances that are appropriate for processing in Canadian refineries and that are potentially deliverable to Canadian refineries. (pétrole brut et substances assimilées acceptables)

Marginal note:Role of Ministers prior to self-sufficiency and security of supply

• 34 (1) Where, in respect of any period referred to in subsection 35(2) or (3), a determination is made that self-sufficiency and security of supply do not exist, the Federal Minister has authority in relation to any fundamental decision, other than a fundamental decision referred to in subsection (2), made during that period.

• Marginal note:Development plan approval

  (2) Subject to subsection (3), the Provincial Minister has authority in relation to a fundamental decision referred to in paragraph 139(4)(a).

• Marginal note:Federal Minister’s power to override development plan approval

  (3) Where the approval or disapproval by the Provincial Minister of a fundamental decision referred to in paragraph 139(4)(a) would unreasonably delay the attainment of self-sufficiency or security of supply, the Federal Minister may substitute therefor the approval or disapproval, as the case may be, of the Federal Minister, and where the Federal Minister does so, that Minister shall, for the purposes of this Act, be considered to have authority in relation to that fundamental decision.

• Marginal note:Role of Ministers after self-sufficiency and security of supply

  (4) Where, in respect of any period referred to in subsection 35(3), a determination is made that self-sufficiency and security of supply exist, the Provincial Minister has authority in relation to any fundamental decision made during that period.

Marginal note:Determination binding

• 35 (1) For the purposes of this Act, where a determination referred to in subsection 34(1) or (4) is made by both governments or by a panel pursuant to section 36 or 37 or is deemed to have been made pursuant to subsection (2), it is final and binding for the duration of the period in respect of which it is made.

• Marginal note:Initial period

  (2) For the purposes of section 34, the first period shall commence on January 1, 1986 and terminate on December 31, 1990 and, in respect of that period, a determination shall be deemed to have been made, for all purposes of this Act, that self-sufficiency and security of supply do not exist.

• Marginal note:Subsequent periods

  (3) For the purposes of section 34, each period following the period referred to in subsection (2) shall commence on the expiration of the period immediately preceding that period and shall be for a duration of five successive calendar years.

Marginal note:Where no agreement on determinations re self-sufficiency

• 36 (1) Consultation between the two governments with respect to the making of a determination referred to in subsection 34(1) or (4) shall be deemed to commence one year prior to the expiration of every period in respect of which such a determination is made.

• Marginal note:Appointment of panel members

  (2) Where the two governments fail to agree on a determination referred to in subsection (1) within three months after the commencement of consultation between the governments, the determination shall be made by a panel consisting of three members, constituted in accordance with subsections 12(3) and (4), within sixty days after the appointment of the chairperson of the panel unless, at any time prior thereto, the two governments agree on the determination.

Marginal note:Determination of unreasonable delay

• 37 (1) Where, within sixty days after an approval or disapproval by the Provincial Minister pursuant to subsection 34(2), the two governments fail to agree whether the approval or disapproval would unreasonably delay the attainment of self-sufficiency or security of supply, that determination shall be made by a panel consisting of three members constituted in accordance with subsection (2), within forty-five days after the appointment of the chairperson of the panel.

• Marginal note:Constitution of panel

  (2) For the purposes of subsection (1), one member of the panel shall be appointed by each government within thirty days after the sixty days referred to in subsection (1) and the chairperson of the panel shall be appointed in accordance with subsection 12(4) and for that purpose, subsection 12(4) applies, with such modifications as the circumstances require.

Marginal note:Determination not subject to review

38 Where a determination referred to in section 36 or 37 is made by a panel pursuant to that section, that determination is not subject to be reviewed or set aside by any government, court or other body.

Marginal note:Suspensive vetoes

• 39 (1) The Minister who does not have authority in relation to a fundamental decision, as determined under section 34, may, on giving written notice to the Board and the Minister who has such authority, suspend, during a period of ninety days, the approval of the fundamental decision by the Minister who has that authority.

• Marginal note:Commencement of period

  (2) The period of ninety days referred to in subsection (1) commences on the day the Board is advised, in accordance with subsection 31(2), of the approval of the fundamental decision by the Minister having authority in relation to the fundamental decision.

Marginal note:Supply shortfall

• 40 (1) Notwithstanding any other provision of this Act, in the event of a sudden domestic or import supply shortfall of suitable crude oil and equivalent substances, the Board shall, on request by the Federal Minister, cause production of suitable crude oil and equivalent substances to be increased, consistent with good oil field practice.

• Marginal note:Canada’s obligations under IEA

  (2) Notwithstanding any other provision of this Act, where the Government of Canada has obligations with respect to the allocation of petroleum pursuant to the Agreement On An International Energy Program dated November 18, 1974, the Board shall, where directed to do so by the Federal Minister and during the period that those obligations continue, take such measures as are necessary to comply with those obligations and as are fair and equitable in relation to other hydrocarbon producing regions of Canada.

Regional Security of Supply

Definition of shortfall of petroleum deliveries in the Province

• 41 (1) For the purposes of this section shortfall of petroleum deliveries in the Province means deliveries of petroleum that are inadequate to supply, on commercial terms,

  • (a) the end use consumption and feedstock requirements of industrial facilities that are in place in the Province on the day of the coming into force of this Act;

  • (b) the feedstock requirements of the refining facilities at Come-by-Chance if those facilities were operating at capacity on the day of the coming into force of this Act or any refining facility constructed in the Province to replace those facilities; or

  • (c) the feedstock requirements of any refining facility located in the Province that was not in place on the coming into force of this Act, other than a facility referred to in paragraph (b), if the feedstock requirements required to satisfy the demand of industrial capacity, on the day of the coming into force of this Act, in Nova Scotia, New Brunswick, Prince Edward Island and Newfoundland and Labrador have been met.

• Marginal note:Notice by Provincial Minister to holders of production licences

  (2) Where there is a shortfall of petroleum deliveries in the Province, the Provincial Minister may, after consulting with the Federal Minister, give notice to holders of production licences in the offshore area that the facilities in paragraphs (1)(a), (b) and (c) that are specified in the notice have, during the term of the notice, the first option to acquire, on commercial terms, petroleum produced in the offshore area unless a sales contract with respect to that petroleum has been entered into prior to the giving of the notice.

• Marginal note:Later contracts subject to notice

  (3) Any contract entered into after the giving of the notice referred to in subsection (2) shall be deemed to be varied or suspended to the extent necessary to give effect to that notice.

• Marginal note:Term of notice

  (4) The term of a notice given under subsection (2) is the period during which a shortfall of petroleum deliveries in the Province continues to exist.

• Marginal note:Arbitration in case of dispute whether shortfall exists

  (5) Where the Federal Minister or a holder of a production licence to whom a notice has been given under subsection (2) does not agree with the Provincial Minister that a shortfall of petroleum deliveries in the Province exists or continues to exist, the matter shall be referred to arbitration in the manner prescribed.

• Marginal note:Notice ceases to have effect

  (6) Where it is determined pursuant to arbitration that a shortfall of petroleum deliveries in the Province does not exist or continue to exist, the notice given under subsection (2) shall be deemed to be revoked and ceases to have effect on the date on which the determination is made.

• Marginal note:Regulations

  (7) Subject to section 7, the Governor in Council may make regulations for carrying out the purposes and provisions of this section and, without limiting the generality of the foregoing, may make regulations

  • (a) defining the expression commercial terms or providing for arbitration to establish commercial terms in any particular case;

  • (b) governing, for the purposes of this section, arbitration and the making of arbitration orders and appeals from and enforcement of arbitration orders; and

  • (c) prescribing the manner of exercising a first option to acquire that is granted pursuant to a notice given under subsection (2).

Ministerial Directives

Marginal note:Ministerial directives

• 42 (1) The Federal Minister and the Provincial Minister may jointly issue to the Board written directives in relation to

  • (a) fundamental decisions;

  • (b) decisions made by the Board respecting the exercise of a power pursuant to paragraph 56(1)(b);

  • (c) public reviews conducted pursuant to section 44;

  • (d) Canada–Newfoundland and Labrador benefits plans and any of their provisions; and

  • (e) studies to be conducted by the Board and advice with respect to policy issues to be given by the Board to the Federal Minister and the Provincial Minister.

• Marginal note:Occupational health and safety directives

  (1.1) The Federal Minister, on the recommendation of the Minister of Labour, and the minister of the government of the Province who is responsible for occupational health and safety, may jointly issue to the Board written directives in relation to

  • (a) the development of guidelines and interpretation notes with respect to occupational health and safety matters; and

  • (b) the implementation of any recommendations made by an auditor under section 205.119 or made following an inquiry under section 205.12.

• Marginal note:Directives binding

  (2) The Board shall comply with a directive issued under this section.

• Marginal note:Directives not statutory instruments

  (3) Directives issued under this section are not statutory instruments for the purposes of the Statutory Instruments Act.

• Marginal note:Notice in Canada Gazette

  (4) When a directive is issued under this section, a notice shall be published in the Canada Gazette that the directive has been issued and that the text of it is available for inspection by any person on request made to the Board.

Plan for interests

Marginal note:Plan for interests

• 43 (1) During the first month of each calendar year, the Board shall submit to the Federal Minister and the Provincial Minister a plan outlining the anticipated decisions of the Board during that calendar year respecting the making of calls for bids pursuant to Part II with respect to interests to be issued in relation to portions of the offshore area and the issuance and terms and conditions of such interests.

• Marginal note:Revised plan

  (2) Where the Minister having authority in relation to fundamental decisions, as determined under subsection 34(1) or (4), is of the opinion that a plan referred to in subsection (1) does not provide adequately for the attainment or maintenance of self-sufficiency and security of supply within the meaning of section 33, that Minister may reject the plan and where that Minister does so, shall inform the Board of the reasons for so doing.

• Marginal note:Idem

  (3) Where the Board is informed of a Minister’s rejection of its plan and the reasons therefor, the Board shall, within sixty days after being so informed, prepare a revised plan outlining the anticipated decisions of the Board referred to in subsection (1), taking into account those reasons, and submit the revised plan to the Federal Minister and the Provincial Minister.

• Marginal note:Application of subsections (2) and (3) to revised plan

  (4) Subsections (2) and (3) apply, with such modifications as the circumstances require, with respect to a revised plan submitted pursuant to subsection (3).

Public Review

Marginal note:Public review

• 44 (1) Subject to any directives issued under subsection 42(1), the Board shall conduct a public review in relation to any potential development of a pool or field unless the Board is of the opinion that it is not required on any ground the Board considers to be in the public interest.

• Marginal note:Powers of Board

  (2) Where a public review is conducted in relation to any potential development of a pool or field, the Board may

  • (a) establish terms of reference and a timetable that will permit a comprehensive review of all aspects of the development, including those within the authority of Parliament or of the Legislature of the Province;

  • (b) appoint one or more commissioners and, where there is to be more than one commissioner, appoint as commissioners persons nominated by each of the governments in recognition of the authority of Ministers of the Crown in right of Canada or of the Province under any Act of Parliament or of the Legislature of the Province, other than this Act or the Provincial Act, in relation to the development;

  • (c) if the potential development has been proposed to the Board by any person, require that person to submit and make available for public distribution a preliminary development plan, an environmental impact statement, a socio-economic impact statement, a preliminary Canada–Newfoundland and Labrador benefits plan and any other plan specified by the Board; and

  • (d) cause the commissioners to hold public hearings in appropriate locations in the Province or elsewhere in Canada and report thereon to the Board, the Federal Minister and the Provincial Minister.

• Marginal note:Powers of commissioners

  (3) On the request of the Board, the Federal Government may, subject to such terms and conditions as it considers necessary, confer on the commissioners appointed pursuant to paragraph (2)(b) all or any of the powers conferred on persons appointed as commissioners under Part I of the Inquiries Act.

• Marginal note:Time limit for Board’s recommendations on a plan

  (4) The commissioners shall make their recommendations respecting any preliminary plan or statement submitted pursuant to paragraph (2)(c) within two hundred and seventy days after their receipt of the plan or statement or such shorter period as may be set by the Board.

Public Hearings

Marginal note:Public hearings

44.1 The Board 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 as a responsible authority as defined in subsection 2(1) of the Canadian Environmental Assessment Act, 2012.

Marginal note:Confidentiality

44.2 At any public hearing conducted under section 44.1, the Board may take any measures and make any order that it considers necessary to ensure the confidentiality of any information likely to be disclosed at the hearing if the Board is satisfied that

• (a) disclosure of the information could reasonably be expected to result in a material loss or gain to a person directly affected by the hearing, or to prejudice the person’s competitive position, and the potential harm resulting from the disclosure outweighs the public interest in making the disclosure; or

• (b) the information is financial, commercial, scientific or technical information that is confidential information supplied to the Board and

  • (i) the information has been consistently treated as confidential information by a person directly affected by the hearing, and

  • (ii) the person’s interest in confidentiality outweighs the public interest in its disclosure.

Marginal note:Confidentiality — security

44.3 At any public hearing conducted under section 44.1, the Board may take any measures and make any order that it considers necessary to ensure the confidentiality of information that is likely to be disclosed at the hearing if the Board is satisfied that

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

• (b) the need to prevent disclosure of the information outweighs the public interest in its disclosure.

Marginal note:Exception

44.4 The Board shall not take any measures or make any order under section 44.2 or 44.3 in respect of information or documentation referred to in paragraphs 119(5)(a) to (e) and (i).

Canada–Newfoundland and Labrador Benefits Plan

Definition of Canada–Newfoundland and Labrador benefits plan

• 45 (1) In this section, Canada–Newfoundland and Labrador benefits plan means a plan for the employment of Canadians and, in particular, members of the labour force of the Province and, subject to paragraph (3)(d), for providing manufacturers, consultants, contractors and service companies in the Province and other parts of Canada with a full and fair opportunity to participate on a competitive basis in the supply of goods and services used in any proposed work or activity referred to in the benefits plan.

• Marginal note:Board approval of benefits plan

  (2) Before the Board approves any development plan under subsection 139(4) or authorizes any work or activity under paragraph 138(1)(b), a Canada–Newfoundland and Labrador benefits plan shall be submitted to and approved by the Board, unless it directs that that requirement need not be complied with.

• Marginal note:Particular provisions of plan

  (3) A Canada–Newfoundland and Labrador benefits plan shall contain provisions intended to ensure that

  • (a) before carrying out any work or activity in the offshore area, the corporation or other body submitting the plan shall establish in the Province an office where appropriate levels of decision-making are to take place;

  • (b) consistent with the Canadian Charter of Rights and Freedoms, individuals resident in the Province shall be given first consideration for training and employment in the work program for which the plan was submitted and any collective agreement entered into by the corporation or other body submitting the plan and an organization of employees respecting terms and conditions of employment in the offshore area shall contain provisions consistent with this paragraph;

  • (c) expenditures shall be made for research and development to be carried out in the Province and for education and training to be provided in the Province; and

  • (d) first consideration shall be given to services provided from within the Province and to goods manufactured in the Province, where those services and goods are competitive in terms of fair market price, quality and delivery.

• Marginal note:Affirmative action programs

  (4) The Board may require that any Canada–Newfoundland and Labrador benefits plan include provisions to ensure that disadvantaged individuals or groups have access to training and employment opportunities and to enable those individuals or groups or corporations owned or cooperatives operated by them to participate in the supply of goods and services used in any proposed work or activity referred to in the benefits plan.

• Marginal note:Duties of Board in reviewing plans

  (5) In reviewing any Canada–Newfoundland and Labrador benefits plan, the Board shall consult with both Ministers on the extent to which the plan meets the requirements set out in subsections (1), (3) and (4).

• Marginal note:Directives

  (6) Subject to any directives issued under subsection 42(1), the Board may approve any Canada–Newfoundland and Labrador benefits plan.

Coordination of Government Departments and Agencies

Marginal note:Coordination

• 46 (1) The Board shall, to ensure effective coordination and avoid duplication of work and activities, conclude with the appropriate departments and agencies of the Government of Canada and of the Government of the Province memoranda of understanding in relation to

  • (a) environmental regulation;

  • (b) emergency measures;

  • (c) coast guard and other marine regulation;

  • (c.1) aviation regulation;

  • (d) employment and industrial benefits for Canadians in general and the people of the Province in particular and the review and evaluation procedures to be followed by both governments and the Board in relation to such benefits;

  • (e) occupational health and safety; and

  • (f) such other matters as are appropriate.

• Marginal note:Idem

  (2) The Federal Minister and the Provincial Minister shall be parties to any memorandum of understanding concluded in relation to a matter referred to in paragraph (1)(d).

PART IIPetroleum Resources

Interpretation

Marginal note:Definitions

47 In this Part,

call for bids

call for bids means a call for bids made in accordance with section 58; (appel d’offres)

commercial discovery

commercial discovery means a discovery of petroleum that has been demonstrated to contain petroleum reserves that justify the investment of capital and effort to bring the discovery to production; (découverte exploitable)

commercial discovery area

commercial discovery area means, in relation to a declaration of commercial discovery made pursuant to subsection 78(1) or (2), those portions of the offshore area described in the declaration; (périmètre de découverte exploitable)

Crown reserve area

Crown reserve area means portions of the offshore area in respect of which no interest is in force; (réserves de l’État)

former exploration agreement

former exploration agreement means an exploration agreement under the Canada Oil and Gas Land Regulations; (ancien accord d’exploration)

former lease

former lease means an oil and gas lease under the Canada Oil and Gas Land Regulations; (ancienne concession)

former permit

former permit means an exploratory permit under the Canada Oil and Gas Land Regulations; (ancien permis)

former special renewal permit

former special renewal permit means a special renewal permit under the Canada Oil and Gas Land Regulations; (ancien permis spécial de renouvellement)

holder

holder or interest holder means, in respect of an interest or a share therein, the person indicated, in the register maintained pursuant to Division VIII, as the holder of the interest or the share; (Version anglaise seulement)

interest

interest means any former exploration agreement, former lease, former permit, former special renewal permit, exploration licence, production licence or significant discovery licence; (titre)

interest owner

interest owner means the interest holder who holds an interest or the group of interest holders who hold all of the shares in an interest; (Version anglaise seulement)

prescribed

prescribed means

• (a) in the case of a form or the information to be given on a form, prescribed by the Board, and

• (b) in any other case, prescribed by regulations made by the Governor in Council; (Version anglaise seulement)

share

share means, with respect to an interest, an undivided share in the interest or a share in the interest held in accordance with section 66; (fraction)

significant discovery

significant discovery means a discovery indicated by the first well on a geological feature that demonstrates by flow testing the existence of hydrocarbons in that feature and, having regard to geological and engineering factors, suggests the existence of an accumulation of hydrocarbons that has potential for sustained production; (découverte importante)

significant discovery area

significant discovery area means, in relation to a declaration of significant discovery made pursuant to subsection 71(1) or (2), those portions of the offshore area described in the declaration. (périmètre de découverte importante)

Marginal note:Aboriginal rights

48 Nothing in this Part shall be construed so as to abrogate or derogate from any existing aboriginal or treaty rights of the aboriginal peoples of Canada under section 35 of the Constitution Act, 1982.

DIVISION IGeneral

Manner of Giving Notices

Marginal note:Giving notice

49 Where a notice is required to be given under this Part or the regulations, it shall be given in such form and manner as may be prescribed and shall contain such information as may be prescribed.

Her Majesty

Marginal note:Binding on Her Majesty

50 This Part is binding on Her Majesty in right of Canada or a province.

Designations and Appointments

Marginal note:Delegation

51 The Board may designate any person to exercise the powers and perform the duties and functions under this Part that are specified in the designation and on such designation that person may exercise those powers and shall perform those duties and functions subject to such terms and conditions, if any, as are specified in the designation.

Marginal note:Advisory bodies

• 52 (1) The Board may from time to time appoint and fix the terms of reference of such advisory bodies as the Board considers appropriate to advise the Board with respect to such matters relating to the administration or operation of this Part or Part III as are referred to them by the Board.

• Marginal note:Remuneration

  (2) The members of any advisory body appointed under subsection (1) may be paid for their services such remuneration and expenses as are fixed by the Board.

Marginal note:Appointment of representative

• 53 (1) Where an interest owner consists of two or more holders, such holders shall, in the manner prescribed, appoint one of their number to act as representative of the interest owner for the purposes of this Part, but such holders may, with the consent of the Board, appoint different representatives for different purposes.

• Marginal note:Designation of representative

  (2) In the event that an interest owner consisting of two or more holders fails to appoint a representative for any of the purposes of this Part, the Board may designate one of such holders as the representative of the interest owner for such purposes.

• Marginal note:Acts or omissions of representative binding

  (3) An interest owner is bound by the acts or omissions of the appointed or designated representative of such interest owner with respect to any matter to which the authority of the representative extends.

• Marginal note:Duties of representative

  (4) A representative of an interest owner appointed or designated under this section shall perform the duties in respect of the purposes for which that representative has been appointed or designated, and any operating agreement or other similar arrangement in force in respect of the relevant interest of that interest owner stands varied or amended to the extent necessary to give effect to this subsection.

General Rules Respecting Interests

Marginal note:No issuance of interests in respect of certain areas

• 54 (1) Subject to sections 31 to 40, the Board may, except in a case referred to in subsection (2), by order, for such purposes and under such conditions as may be set out in the order, prohibit the issuance of interests in respect of such portions of the offshore area as are specified in the order.

• Marginal note:Exclusive decision of Federal Minister

  (2) The Federal Minister may, by order, in the case of a disagreement with any government concerning the location of an international boundary and under such conditions as may be set out in the order, prohibit the issuance of interests in respect of such portions of the offshore area as are specified in the order.

Marginal note:Surrender of interests

• 55 (1) An interest owner may, in the manner prescribed and subject to any requirements that may be prescribed respecting the minimum geographical area to which an interest may relate, surrender an interest in respect of all or any portion of the offshore area subject to the interest.

• Marginal note:Debts due to Her Majesty not affected

  (2) Any liability of an interest owner or interest holder to Her Majesty in right of Canada, either direct or by way of indemnity, that exists at the time of any surrender under subsection (1) is not affected by the surrender.

Marginal note:Orders to prohibit activities in certain circumstances

• 56 (1) Subject to subsection (2), the Board may, 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,

  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 thereof that are subject to the interest of that interest owner.

• Marginal note:Fundamental decisions

  (2) An order of the Board made in a case referred to in paragraph (1)(a) is subject to sections 31 to 40.

• Marginal note:Order of Federal Minister

  (3) The Federal Minister may, in the case of a disagreement with any government concerning the location of an international boundary, 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 thereof that are subject to the interest of that interest owner.

• Marginal note:Suspension of requirements in relation to interest

  (4) Where, by reason of an order made under subsection (1) or (3), any requirement in relation to an interest cannot be complied with while the order is in force, compliance with the requirement is suspended until the order is revoked.

• Marginal note:Extension of term of interest

  (5) Notwithstanding any other provision in this Act, the term of an interest that is subject to an order under subsection (1) or (3) and the period provided for compliance with any requirement in relation to the interest are extended for a period equal to the period that the order is in force.

• Marginal note:Relieving authority not affected

  (6) Nothing in this section affects the authority of the Board to relieve a person from any requirement in relation to an interest or under this Part or the regulations.

DIVISION IIGeneral Rules Relating to Issuance of Interests

Authority to Issue Interests

Marginal note:Authority to issue interests

• 57 (1) The Board may issue interests in respect of any portion of the offshore area in accordance with this Part and the regulations.

• Marginal note:Fundamental decision

  (2) The issuance of an interest by the Board is subject to sections 31 to 40 unless the issuance of the interest is mandatory under another provision of this Part.

• Marginal note:Application of interest may be limited

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

• Marginal note:Non-retrospective effect of subsection (2)

  (4) Subsection (3) does not apply to any 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 where that portion was not a Crown reserve area on the expiration of the interest referred to in paragraph (a).

Issuance of Interests in Relation to Crown Reserve Areas

Marginal note:Calls for bids

• 58 (1) Subject to section 61, the Board shall not issue an interest in relation to Crown reserve areas unless

  • (a) prior thereto, the Board 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 Board in accordance with subsection 59(1).

• Marginal note:Fundamental decision

  (2) The making of a call for bids by the Board is subject to sections 31 to 40.

• Marginal note:Requests for postings of portions of the offshore area

  (3) Any request received by the Board to make a call for bids in relation to particular portions of the offshore area shall be considered by the Board in selecting the portions of the offshore area to be specified in a call for bids.

• Marginal note:Contents of call

  (4) A call for bids shall specify

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

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

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

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

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

  • (f) subject to subsection (5), the closing date for the submission of bids; and

  • (g) the sole criterion that the Board will apply in assessing bids submitted in response to the call.

• Marginal note:Time of publishing call

  (5) Unless otherwise prescribed, a call for bids shall be published at least one hundred and twenty days before the closing date for the submission of bids specified in the call.

Marginal note:Selection of bid

• 59 (1) A bid submitted in response to a call for bids shall not be selected unless

  • (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 criterion specified in the call.

• Marginal note:Publication of bid selected

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

• Marginal note:Interest to be consistent with bid.

  (3) Where an 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.

• Marginal note:Publication of terms and conditions of interest

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

Marginal note:Issuance of interest not required

• 60 (1) The Board is not required to issue an interest as a result of a call for bids.

• Marginal note:New call required

  (2) Subject to section 61, where the Board has not issued an 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 the submission of bids, the Board shall, before issuing an interest in relation to that portion of the offshore area, make a new call for bids.

Marginal note:Exception to call for bids

• 61 (1) Subject to sections 31 to 40, the Board may issue an interest, in relation to any Crown reserve area, without making a call for bids where

  • (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 they so became a Crown reserve area, requested the Board to issue an interest; or

  • (b) the Board is issuing the interest to an interest owner in exchange for the surrender by the interest owner, at the request of the Board, of any other interest or a share in any other interest, in relation to all or any portion of the offshore area subject to that other interest.

• Marginal note:Notice

  (2) Where the Board proposes to issue an interest under subsection (1), the Board shall, not later than ninety days before issuing the interest, publish a notice in accordance with section 63 setting out the terms and conditions of the proposed interest.

Marginal note:Interest not vitiated by failure to comply with call procedures

62 Where an 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.

Marginal note:Manner of publication of notices

63 Any notice required to be published by the Board pursuant to subsection 58(1), 59(2) or (4), 61(2) or 68(2) shall be published in the Canada Gazette and in any other publication the Board deems appropriate and, notwithstanding those subsections, may contain only a summary of the information required to be published and a statement that the full text thereof is available for inspection by any person on request made to the Board.

Marginal note:Regulations

64 Subject to section 7, the Governor in Council may, for the purposes of section 58, make regulations of general application in relation to the offshore area or any portion thereof, or in respect of any particular call for bids, prescribing the terms, conditions and criterion to be specified in a call for bids, the manner in which bids are to be submitted and requiring those terms and conditions and that criterion and manner to be specified in the call.

DIVISION IIIExploration

Exploration Licences

Marginal note:Rights under exploration licences

65 An exploration licence confers, with respect to the portions of the offshore area to which the licence applies,

• (a) the right to explore for, and the exclusive right to drill and test for, petroleum;

• (b) the exclusive right to develop those portions of the offshore area in order to produce petroleum; and

• (c) the exclusive right, subject to compliance with the other provisions of this Part to obtain a production licence.

Marginal note:Shares

66 A share in an exploration licence may, subject to any requirements that may be prescribed, be held with respect to a portion only of the offshore area subject to the exploration licence.

Marginal note:Terms and conditions

• 67 (1) An exploration licence shall contain such terms and conditions as may be prescribed and may contain any other terms and conditions, not inconsistent with this Part or the regulations, as may be agreed on by the Board, subject to sections 31 to 40, and the interest owner of the licence.

• Marginal note:Regulations

  (2) Subject to section 7, the Governor in Council may make regulations prescribing terms and conditions required to be included in exploration licences issued in relation to the offshore area or any portion thereof.

Marginal note:Amendment of exploration licence

• 68 (1) The Board, subject to sections 31 to 40, and the interest owner of an exploration licence may, by agreement, amend any provision of the exploration licence in any manner not inconsistent with this Part or the regulations and, without limiting the generality of the foregoing, may, subject to subsection (2), amend the licence to include any other portion of the offshore area.

• Marginal note:Exception

  (2) The Board shall not amend an exploration licence to include any portion of the offshore area that, immediately prior to the inclusion, was a Crown reserve area unless the Board would be able to issue an interest to that interest owner in relation to that area under subsection 61(1) and a notice has been published in accordance with section 63 not later than ninety days before making the amendment, setting out the terms and conditions of the amendment.

• Marginal note:Consolidation of exploration licences

  (3) Subject to sections 31 to 40, the Board may, on the application of the interest owners of two or more exploration licences, consolidate those exploration licences into a single exploration licence, subject to any terms and conditions that may be agreed on by the Board and those interest owners.

Marginal note:Effective date of exploration licence

• 69 (1) The effective date of an exploration licence is the date specified in the licence as the effective date thereof.

• Marginal note:Non-renewable term of nine years

  (2) Subject to subsection (3) and section 70, the term of an exploration licence shall not exceed nine years from the effective date of the licence and shall not be extended or renewed.

• Marginal note:Exception

  (3) Subject to section 70, the term of an exploration licence entered into or in respect of which negotiations have been completed before December 20, 1985 may be renegotiated once only for a further term not exceeding four years and thereafter the term thereof shall not be renegotiated, extended or renewed.

• Marginal note:Crown reserve areas on expiration of licence

  (4) On the expiration of an exploration licence, the portions of the offshore area to which the exploration licence related and that are not subject to a production licence or a significant discovery licence become Crown reserve areas.

Marginal note:Continuation of exploration licence where drilling commenced

• 70 (1) Where, prior to the expiration of the term of an exploration licence, the drilling of any well has been commenced on any portion of the offshore area to which the exploration licence applies, the exploration licence continues in force while the drilling of that well is being pursued diligently and for so long thereafter as may be necessary to determine the existence of a significant discovery based on the results of that well.

• Marginal note:Deemed pursued diligently

  (2) Where the drilling of a well referred to in subsection (1) is suspended by reason of dangerous or extreme weather conditions or mechanical or other technical problems encountered in the drilling of the well, the drilling of that well shall, for the purposes of subsection (1), be deemed to be being pursued diligently during the period of suspension.

• Marginal note:Drilling of second well deemed commenced

  (3) Where the drilling of a well referred to in subsection (1) cannot be completed for mechanical or other technical problems and if, within ninety days after the cessation of drilling operations with respect to that well, or such longer period as the Board determines, the drilling of another well is commenced on any portion of the offshore area that was subject to the exploration licence, the drilling of that other well shall, for the purposes of subsection (1), be deemed to have commenced prior to the expiration of the term of the exploration licence.

Significant Discoveries

Marginal note:Application for declaration of significant discovery

• 71 (1) Subject to section 124, where a significant discovery has been made on any portion of the offshore area that is subject to an interest or a share therein held in accordance with section 66, the Board shall, on the application of the interest holder of the interest or the share thereof made in the form and manner and containing such information as may be prescribed, make a written declaration of significant discovery in relation to those portions of the offshore area in respect of which there are reasonable grounds to believe that the significant discovery may extend.

• Marginal note:Declaration on initiative of Board

  (2) Where a significant discovery has been made on any portion of the offshore area, the Board may, by order subject to section 124, make a declaration of significant discovery in relation to those portions of the offshore area in respect of which there are reasonable grounds to believe the significant discovery may extend.

• Marginal note:Description of offshore area subject to declaration

  (3) A declaration made pursuant to subsection (1) or (2) shall describe the portions of the offshore area to which the declaration applies.

• Marginal note:Amendment or revocation of declaration

  (4) Subject to subsection (5), where a declaration of significant discovery is made pursuant to subsection (1) or (2) and, based on the results of further drilling, there are reasonable grounds to believe that a discovery is not a significant discovery or that the portions of the offshore area to which the significant discovery extends differ from the significant discovery area, the Board may, subject to section 124 and as appropriate in the circumstances,

  • (a) amend the declaration of significant discovery by increasing or decreasing the significant discovery area; or

  • (b) revoke the declaration.

• Marginal note:Idem

  (5) A declaration of significant discovery shall not be amended to decrease the significant discovery area or revoked earlier than

  • (a) in the case of a significant discovery area that is subject to a significant discovery licence issued pursuant to subsection 73(1), the date on which the exploration licence referred to in that subsection expires; and

  • (b) in the case of a significant discovery area that is subject to a significant discovery licence issued pursuant to subsection 73(2), three years after the effective date of the significant discovery licence.

• Marginal note:Notice

  (6) A copy of a declaration of significant discovery and of any amendment or revocation thereof made under this section in relation to any portion of the offshore area subject to an interest shall be sent by registered mail to the interest owner of that interest.

Significant Discovery Licences

Marginal note:Rights under significant discovery licence

72 A significant discovery licence confers, with respect to the portions of the offshore area to which the licence applies,

• (a) the right to explore for, and the exclusive right to drill and test for, petroleum;

• (b) the exclusive right to develop those portions of the offshore area in order to produce petroleum; and

• (c) the exclusive right, subject to compliance with the other provisions of this Part, to obtain a production licence.

Marginal note:Significant discovery licence in relation to areas subject to exploration licences

• 73 (1) Where a declaration of significant discovery is in force and all or a portion of the significant discovery area is subject to an exploration licence or a share therein held in accordance with section 66, the Board shall, on application of the interest holder of the exploration licence or the share made in the form and manner and containing such information as may be prescribed, issue to the interest holder a significant discovery licence in respect of all portions of the significant discovery area that are subject to the exploration licence or the share.

• Marginal note:Significant discovery licence in relation to Crown reserve areas

  (2) Where a declaration of significant discovery is in force and the significant discovery area extends to a Crown reserve area the Board may, after making a call for bids in relation to that Crown reserve area or any portion thereof and selecting a bid submitted in response to the call in accordance with subsection 59(1), issue a significant discovery licence to the person who submitted that bid in relation to the Crown reserve area specified in the call.

• Marginal note:Fundamental decision

  (3) The making of a call for bids and the issuance of a significant discovery licence by the Board pursuant to subsection (2) is subject to sections 31 to 40.

• Marginal note:Terms and conditions of significant discovery licence

  (4) A significant discovery licence shall be in the form prescribed and may contain any other terms and conditions, not inconsistent with this Part or the regulations, as may be agreed on by the Board, subject to sections 31 to 40, and the interest owner of the significant discovery licence.

Marginal note:Reduction of area subject to significant discovery licence

• 74 (1) Where a significant discovery area in relation to a declaration of significant discovery is decreased pursuant to an amendment made under subsection 71(4), any significant discovery licence that was issued on the basis of that declaration shall be amended by decreasing accordingly the portions of the offshore area subject to that licence.

• Marginal note:Increase in area subject to significant discovery licence

  (2) Where a significant discovery area in relation to a declaration of significant discovery is increased pursuant to an amendment made under subsection 71(4), any significant discovery licence that was issued on the basis of that declaration shall be amended to include all portions of the amended significant discovery area that are subject to any exploration licence held by the interest owner of that significant discovery licence at the time the significant discovery area is so increased.

Marginal note:Exploration licence ceases to have effect

• 75 (1) On the issuance of a significant discovery licence pursuant to subsection 73(1) with respect to a significant discovery area, any exploration licence ceases to have effect in relation to that significant discovery area.

• Marginal note:Effective date of significant discovery licence

  (2) The effective date of a significant discovery licence is the date of application for the licence.

• Marginal note: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, during such period as the declaration of significant discovery on the basis of which the licence was issued remains in force in relation to that portion.

• Marginal note:Crown reserve area on expiration of licence

  (4) On the expiration of a significant discovery licence, any portion of the offshore area to which the significant discovery licence related and that is not subject to a production licence becomes a Crown reserve area.

Drilling Orders

Marginal note:Drilling orders

• 76 (1) Subject to subsections (2) to (4) and sections 31 to 40, the Board may, at any time after making a declaration of significant discovery, by order subject to section 124, require the interest owner of any interest in relation to any portion of the significant discovery area to drill a well on any portion of the significant discovery area that is subject to that interest, in accordance with such directions as may be set out in the order, and to commence the drilling within one year after the making of the order or within such longer period as the Board specifies in the order.

• Marginal note:Exception

  (2) No order may be made under subsection (1) with respect to any interest owner who has completed a well on the relevant portion of the offshore area within six months after the completion of that well.

• Marginal note:Condition

  (3) No order may be made under subsection (1) within the three years immediately following the well termination date of the well indicating the relevant significant discovery.

• Marginal note:Idem

  (4) No order made under subsection (1) may require an interest owner to drill more than one well at a time on the relevant portion of the offshore area.

• Definition of well termination date

  (5) For the purposes of subsection (3), well termination date means the date on which a well has been abandoned, completed or suspended in accordance with any applicable drilling regulations.

Marginal note:Information may be disclosed

• 77 (1) The Board may, notwithstanding section 119, provide information or documentation relating to a significant discovery to any interest owner who requires such information or documentation to assist the interest owner in complying with an order made under subsection 76(1).

• Marginal note:Idem

  (2) An interest owner shall not disclose any information or documentation provided to that interest owner under subsection (1) except to the extent necessary to enable the interest owner to comply with an order made under subsection 76(1).

DIVISION IVProduction

Commercial Discoveries

Marginal note:Application for declaration of commercial discovery

• 78 (1) Subject to section 124, where a commercial discovery has been made on any portion of the offshore area that is subject to an interest or a share therein held in accordance with section 66, the Board shall, on the application of the interest holder of the interest or the share made in the form and manner and containing such information as may be prescribed, make a written declaration of commercial discovery in relation to those portions of the offshore area in respect of which there are reasonable grounds to believe that the commercial discovery may extend.

• Marginal note:Declaration on initiative of Board

  (2) Subject to section 124, where a commercial discovery has been made on any portion of the offshore area, the Board may, by order, make a declaration of commercial discovery in relation to those portions of the offshore area in respect of which there are reasonable grounds to believe that the commercial discovery may extend.

• Marginal note:Application of certain provisions

  (3) Subsections 71(3), (4) and (6) apply, with such modifications as the circumstances require, with respect to a declaration made pursuant to subsection (1) or (2).

Development Orders

Marginal note:Notice of order to reduce term of interest

• 79 (1) Subject to sections 31 to 40, the Board may, at any time after making a declaration of commercial discovery, give notice to the interest owner of any interest in relation to any portion of the commercial discovery area where commercial production of petroleum has not commenced before that time stating that, after such period of not less than six months as may be specified in the notice, an order may be made reducing the term of that interest.

• Marginal note:Opportunity for submissions

  (2) During the period specified in a notice sent to an interest owner under subsection (1), the Board shall provide a reasonable opportunity for the interest owner to make such submissions as the interest owner considers relevant to determining whether the Board should make an order reducing the term of the relevant interest.

• Marginal note:Order reducing term of interest

  (3) Notwithstanding any other provision of this Act but subject to sections 31 to 40, where the Board is of the opinion that it is in the public interest, the Board may, at any time not later than six months after the expiration of the period specified in a notice in respect of an interest sent under subsection (1), by order subject to section 124, reduce the term of the interest to three years after the date the order is made or such longer period as may be specified in the order.

• Marginal note:All interests cease

  (4) Notwithstanding any other provision of this Act but subject to subsections (5) and (6), where an order is made under subsection (3), any interest in respect of a portion of the offshore area within the area to which the interest that is the subject of the order applied on the date the order was made ceases to have effect at the end of the period specified in the order.

• Marginal note:Order ceases to have effect where production commences

  (5) Where commercial production of petroleum on any portion of the offshore area referred to in subsection (4) commences before the expiration of the period specified in an order made under subsection (3) or the period extended pursuant to subsection (6), the order ceases to have effect and is deemed to have been vacated.

• Marginal note:Extension of period

  (6) Subject to sections 31 to 40, the Board may extend the period specified in an order made under subsection (3) or may revoke the order.

Issuance of Production Licences

Marginal note:Rights under production licence

• 80 (1) A production licence confers, with respect to the portions of the offshore area to which the licence applies,

  • (a) the right to explore for, and the exclusive right to drill and test for, petroleum;

  • (b) the exclusive right to develop those portions of the offshore area in order to produce petroleum;

  • (c) the exclusive right to produce petroleum from those portions of the offshore area; and

  • (d) title to the petroleum so produced.

• Marginal note:Exception

  (2) Notwithstanding subsection (1), the Board may, subject to such terms and conditions as the Board deems appropriate, authorize any interest holder of an interest or a share therein 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.

Marginal note:Issuance of production licence

• 81 (1) Subject to section 87, the Board, on application made in the form and manner and containing such information as may be prescribed,

  • (a) shall issue a production licence to one interest owner, in respect of any one commercial discovery area or portion thereof that is subject to an exploration licence or a significant discovery licence held by that interest owner; and

  • (b) may, subject to such terms and conditions as may be agreed on by the Board and the relevant interest owners and to sections 31 to 40, issue a production licence to

    • (i) one interest owner, in respect of two or more commercial discovery areas or portions thereof that are subject to an exploration licence or a significant discovery licence held by that interest owner, or

    • (ii) two or more interest owners, in respect of one or more commercial discovery areas or portions thereof that are subject to an exploration licence or a significant discovery licence held by any of those interest owners.

• Marginal note:Production licence in relation to Crown reserve areas

  (2) Where a declaration of commercial discovery is in force and the commercial discovery area extends to a Crown reserve area, the Board may, after making a call for bids in relation to that Crown reserve area or any portion thereof and selecting a bid submitted in response to the call in accordance with subsection 59(1), issue a production licence to the person who submitted that bid in relation to the Crown reserve area specified in the call.

• Marginal note:Fundamental decision

  (3) The making of a call for bids and the issuance of a production licence by the Board pursuant to subsection (2) is subject to sections 31 to 40.

• Marginal note:Terms and conditions of production licence

  (4) A production licence shall be in the form prescribed and may contain any terms and conditions, not inconsistent with this Part or the regulations, as may be agreed on by the Board, subject to sections 31 to 40, and the interest owner of the production licence.

Marginal note:Consolidation of production licences

82 Subject to sections 31 to 40, the Board may, on the application of the interest owners of two or more production licences, consolidate those production licences into a single production licence, on such terms and conditions as may be agreed on by the Board and those interest owners.

Marginal note:Reduction of area subject to production licence

• 83 (1) Where a commercial discovery area in relation to a declaration of commercial discovery is decreased pursuant to an amendment made under subsections 71(4) and 78(3), any production licence that was issued on the basis of that declaration shall be amended by decreasing accordingly the portions of the offshore area subject to that licence.

• Marginal note:Increase in areas subject to production licence

  (2) Where a commercial discovery area in relation to a declaration of commercial discovery is increased pursuant to an amendment made under subsections 71(4) and 78(3), any production licence that was issued on the basis of that declaration shall be amended to include all portions of the amended commercial discovery area that are subject to an exploration licence or a significant discovery licence held by the interest owner of that production licence at the time the commercial discovery area is so increased.

Marginal note:Term of production licence

• 84 (1) Subject to subsections (2) to (4), a production licence is effective from the date it is issued and shall be issued for a term of twenty-five years.

• Marginal note:Idem

  (2) Where a declaration of commercial discovery on the basis of which a production licence was issued is, pursuant to subsections 71(4) and 78(3), revoked or amended to exclude all portions of the commercial discovery area in relation to which the production licence was issued, the production licence ceases to be in force.

• Marginal note:Automatic extension of term

  (3) Where, on the expiration of the term of a production licence, petroleum is being produced commercially, the term is extended for such period thereafter during which commercial production of petroleum continues.

• Marginal note:Discretionary extension of term

  (4) Subject to sections 31 to 40, the Board may, by order, on such terms and conditions as may be specified in the order, extend the term of a production licence where

  • (a) commercial production of petroleum from the portions of the offshore area subject to the licence ceases before or on the expiration of the twenty-five year term of the production licence and the Board has reasonable grounds to believe that commercial production from such portions of the offshore area will recommence; or

  • (b) the Board has reasonable grounds to believe that commercial production of petroleum from such portions of the offshore area will, at any time before or after the expiration of the term of the licence, cease during any period and thereafter recommence.

Marginal note:Lapsing of other interests

• 85 (1) On the issuance of a production licence, any interest in relation to the portions of the offshore area in respect of which the production licence is issued held immediately prior to the issuance of the production licence ceases to have effect in relation to such portions of the offshore area, but otherwise continues to have effect according to its terms and the provisions of this Act.

• Marginal note:Areas become Crown reserve areas on expiration of term

  (2) On the expiration of a production licence, the portions of the offshore area in relation to which the production licence was issued become Crown reserve areas.

Subsurface Storage Licences

Marginal note:Licence for subsurface storage

• 86 (1) The Board may, subject to any terms and conditions the Board considers appropriate, issue a licence for the purpose of subsurface storage of petroleum or any other substance approved by the Board in portions of the offshore area at depths greater than twenty metres.

• Marginal note:Prohibition

  (2) No portion of the offshore area shall be used for a purpose referred to in subsection (1) without a licence referred to therein.

Qualification for Production Licence

Marginal note:Qualification for production licence

87 No production licence or share in a production licence may be held by any person other than a corporation incorporated in Canada.

DIVISION V[Repealed, 1993, c. 47, s. 8]

DIVISION VIRoyalties

Interpretation

Definition of Petroleum and Natural Gas Act

• 97 (1) In this Division, Petroleum and Natural Gas Act means Part II of the Petroleum and Natural Gas Act, R.S.N.L. 1990, c. P-10, as amended from time to time.

• Marginal note:Royalties

  (2) There is hereby reserved to Her Majesty in right of Canada and each holder of a share in a production licence is liable for and shall pay to Her 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.

• Marginal note:Exception

  (3) Notwithstanding subsection (2), where petroleum is subject to a royalty under the Petroleum and Natural Gas Act, that petroleum is not subject to a royalty under subsection (2).

• Marginal note:Application of Newfoundland and Labrador legislation

  (4) Subject to this Act and the regulations, the Petroleum and Natural Gas Act and the regulations referred to in subsection (4.1) apply, with any modifications that the circumstances require, for the purposes of this section and, without limiting the generality of the foregoing,

  • (a) a reference in that Act to Her Majesty in Right of the province is to be read as a reference to Her Majesty in right of Canada; and

  • (b) a reference in that Act to the province is to be read as a reference to the offshore area.

• Marginal note:Application of Newfoundland and Labrador regulations

  (4.1) The following regulations apply for the purposes of subsection (4):

  • (a) any regulations made under the Petroleum and Natural Gas Act; and

  • (b) any regulations made under an Act that was replaced by the Petroleum and Natural Gas Act, to the extent that those regulations remain in force in accordance with the laws of the Province and are not inconsistent with the Petroleum and Natural Gas Act.

• Marginal note:No Crown share

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

Marginal note:Power to collect

• 98 (1) Subject to subsection (6), where an agreement is entered into pursuant to subsection (3), royalties, interest and penalties payable under section 97 may be collected and administered and refunds in respect thereof 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 pursuant to subsection (4).

• Marginal note:Negotiation of agreement

  (2) The Federal Minister shall, on the request of the Government of the Province or the Board, negotiate an agreement with the Provincial Minister and the Board with respect to the collection and administration of the royalties, interest and penalties payable under section 97.

• Marginal note:Agreement

  (3) On completion of the negotiation of an agreement pursuant to 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 Board pursuant to which the Board shall, on behalf of the Government of Canada, collect and administer the royalties, interest and penalties payable under section 97 and, without limiting the generality of the foregoing, grant refunds or make other payments in respect of those royalties, interest and penalties in accordance with the terms and conditions set out in the agreement.

• Marginal note:Amendments to the agreement

  (4) The Federal Minister, with the approval of the Governor in Council, may, on behalf of the Government of Canada, enter into an agreement amending the terms and conditions of any agreement entered into pursuant to subsection (3).

• Marginal note:Proof of provision of agreement

  (5) A document purporting to be an agreement entered into pursuant to subsection (3) or (4) that is

  • (a) published in the Canada Gazette, or

  • (b) certified as such by, or on behalf of, the Minister of National Revenue, the Receiver General, the Deputy Receiver General or the Federal Minister

  is, in the absence of evidence to the contrary, evidence of the contents thereof and is admissible in evidence without proof of the signature or official character of the person purporting to have certified it.

• Marginal note:No further liability

  (6) An administration agreement may provide that, where 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

  • (a) section 97, or

  • (b) both

    • (i) section 97, and

    • (ii) the Petroleum and Natural Gas Act,

  the payment so received may be applied by the Government of the Province towards the royalties, interest, penalties or other sums payable by the person under any such provision or Act in such manner as is specified in the agreement, notwithstanding that the person directed that the payment be applied in any other manner or made no direction as to its application.

• Marginal note:Idem

  (7) Any payment or part thereof applied by the Government of the Province in accordance with an administration agreement towards the royalties, interest, penalties or other sums payable by a person under section 97,

  • (a) relieves that person of liability to pay such royalties, interest, penalties or other sums to the extent of the payment or part thereof so applied; and

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

Marginal note:Remittance to Receiver General

• 99 (1) All royalties, interests and penalties payable under section 97, including the proceeds of any royalty payable in kind, shall be made payable and remitted to the Receiver General.

• Marginal note:Consolidated Revenue Fund

  (2) On the collection or receipt of any royalties, interest and penalties by the Board pursuant to this section, the royalties shall be deposited as soon as practicable to the credit of the Receiver General and paid into the Consolidated Revenue Fund in the manner prescribed by the Treasury Board under the Financial Administration Act.

Liability and Collection of Royalties

Marginal note:Debts due to Her Majesty

100 All royalties, interest and penalties payable under section 97 are debts due to Her Majesty in right of Canada and are recoverable as such from the person required to pay the royalties in accordance with this Division.

DIVISION VIIEnvironmental Studies Revolving Funds

Marginal note:Fund continued

• 101 (1) Part VII of the Canada Petroleum Resources Act applies, with such modifications as the circumstances require, within the offshore area.

• Marginal note:Rates subject to Board’s approval

  (2) The rates fixed by the Federal Minister pursuant to section 80 of the Canada Petroleum Resources Act, as they apply to the offshore area, are subject to approval by the Board.

• Marginal note:Appointment by Board of one of members of Environmental Studies Management Board

  (3) Notwithstanding 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 Board on the recommendation of the Provincial Minister.

• Marginal note:Reports and recommendations to Board

  (4) The Environmental Studies Management Board referred to in subsection (3) shall submit to the Board a copy of every annual report and recommendation submitted to the Federal Minister pursuant to 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.

DIVISION VIIITransfers, Assignments and Registration

Interpretation

Marginal note:Definitions

• 102 (1) In this Division,

  assignment of security interest

  assignment of security interest means a notice of the assignment of a security interest or any part thereof in respect of which a security notice has been registered under this Division; (cession de sûreté)

  court

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

  Deputy Registrar

  Deputy Registrar means such person as the Board may designate as the Deputy Registrar for the purposes of this Division; (directeur adjoint)

  discharge

  discharge means a notice of the discharge of a security notice or postponement and includes a partial discharge; (mainlevée)

  instrument

  instrument means a discharge, postponement, security notice, transfer or an assignment of a security interest; (acte)

  operator’s lien

  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 thereunder to carry out any work or activity related to the exploration for or the development or production of petroleum in the portions of the offshore area to which the interest or share applies, 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)

  postponement

  postponement means a document evidencing the postponement of a security notice or operator’s lien; (cession de priorité)

  Registrar

  Registrar means such person as the Board may designate as the Registrar for the purposes of this Division; (directeur)

  secured party

  secured party means the person claiming a security interest under a security notice; (partie garantie)

  security interest

  security interest means any charge on or right in relation to an interest or a share in an interest that, pursuant to a written agreement, secures any payment or performance of an obligation, including

  • (a) the payment of an indebtedness arising from an existing or future loan or advance of money,

  • (b) a bond, debenture or other security of a corporation, or

  • (c) the performance of the obligations of a guarantor under a guarantee given in respect of all or any part of an indebtedness referred to in paragraph (a) or all or any part of a bond, debenture or other security of a corporation,

  and includes a security given under section 426 of the Bank Act, but does not include an operator’s lien; (sûreté)

  security notice

  security notice means a notice of a security interest; (Version anglaise seulement)

  transfer

  transfer means a transfer of an interest or a share in an interest. (transfert)

• Marginal note:Assignees deemed secured parties

  (2) Where an assignment of security interest is registered under this Division, a reference in this Division to a secured party shall, in respect of the security notice to which the assignment of security interest relates, be read as a reference to the assignee named in the assignment of security interest.

Transfer and Assignment

Marginal note:Notice of disposition of any interest

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

104 and 104.1 [Repealed, 1993, c. 47, s. 9]

Registration

Marginal note:Establishment of register

• 105 (1) A public register of all interests and instruments registered under this Division shall be established and maintained in accordance with this Division and the regulations.

• Marginal note:Duties of Registrar and Deputy Registrar

  (2) The Registrar and Deputy Registrar shall exercise such powers and perform such duties and functions in respect of the register and the system of registration established under this Division as may be prescribed.

Marginal note:Prohibition against registration of documents except instruments

• 106 (1) No document other than an interest or instrument may be registered under this Division.

• Marginal note:Requirements of registration

  (2) No instrument may be registered under this Division unless it has been submitted for registration in the form prescribed for that instrument, in such manner and containing such information as may be prescribed, and meets any other requirement for the registration thereof prescribed by this Division and the regulations.

107 [Repealed, 1993, c. 47, s. 10]

Marginal note:Requirements of registering security notice

• 108 (1) No security notice may be registered under this Division unless the security notice specifies

  • (a) the nature of the security interest claimed;

  • (b) the person from whom the security interest was acquired;

  • (c) the documents giving rise to the security interest; and

  • (d) such other particulars in respect thereof as may be prescribed.

• Marginal note:Notice of official address

  (2) No instrument may be registered under this Division unless a notice of official address for service in respect of that instrument is filed with the Registrar in prescribed form.

• Marginal note:Revision of notice of official address

  (3) The official address for service in respect of an instrument may be changed by filing with the Registrar another notice of official address for service, in prescribed form.

Marginal note:Security notice carries forward to new interests

109 Where a significant discovery licence or production licence is issued at any time in respect of any portion of the offshore area that was not a Crown reserve area immediately before that time, the registration under this Division of a security notice in respect of the interest in force immediately preceding the issuance of that licence and relating to that portion of the offshore area applies in respect of the licence as though the security notice referred to that licence and as though that licence had been issued prior to the registration of the security notice.

Marginal note:Registration

• 110 (1) Every document submitted for registration under this Division shall be examined by the Registrar and where the Registrar determines that the document is an instrument that meets all the requirements for the registration thereof prescribed by this Division and the regulations, the Registrar shall register the instrument in accordance with this Division and the regulations.

• Marginal note:Refusal to register

  (2) Where the Registrar refuses to register any document under this Division, the Registrar shall return the document to the person submitting the document for registration and provide that person with the reasons for the refusal.

• Marginal note:Memorandum of registration

  (3) An instrument is registered under this Division by the endorsement of a memorandum of registration on the instrument specifying the registration number of the instrument and the time and date of registration.

• Marginal note:Chronological order of receipt for registration

  (4) Instruments accepted for registration under this Division shall be registered in the chronological order in which such instruments are received by the Registrar.

Marginal note:Deemed notice

111 The registration of an instrument under this Division shall be deemed to constitute actual notice of the instrument to all persons as of the time of registration of the instrument and, in the case of a security notice, shall be deemed to constitute actual notice to all persons who may serve a demand for information under section 113 in respect of the security notice of the contents of the documents specified in the security notice.

Marginal note:Priority of rights

• 112 (1) Subject to subsections (2) and (5), any particular right, in relation to an interest or a share therein, in respect of which an instrument has been registered under this Division at any time has priority over and is valid against any other right, in relation to that interest or share,

  • (a) in respect of which an instrument may be registered under this Division,

    • (i) where the instrument was not so registered, or

    • (ii) where the instrument was so registered after that time,

    whether that other right was acquired before or after that particular right; or

  • (b) in respect of which an instrument may not be registered under this Division, acquired after that time.

• Marginal note:Transitional

  (2) Where any right in respect of which an instrument may be registered under this Division was acquired before the coming into force of this section and an instrument in respect of such right is registered under this Division not later than one hundred and eighty days after the coming into force of this section, the priority and validity of such right shall be determined as though the instrument was registered under this Division at the time the right was acquired and as though this section was in force at that time.

• Marginal note:Idem

  (3) Notwithstanding subsection (2), no right in respect of which that subsection applies shall have priority over and be valid against any other right in respect of which that subsection applies but in respect of which an instrument is not registered within the period referred to in that subsection, where the person claiming the right in respect of which an instrument is registered within that period acquired such right with actual knowledge of the other right.

• Marginal note:Idem

  (4) No instrument in respect of any right to which subsection (2) applies shall be registered unless it is accompanied by the statutory declaration, in prescribed form, of the person claiming such right, attesting to the time at which such right was acquired.

• Marginal note:Operator’s lien

  (5) An operator’s lien, in relation to an interest or share therein, shall, without registration of any document evidencing the operator’s lien, have priority over and be valid against any other right, in relation to that interest or share, in respect of which an instrument may be registered under this Division, whether an instrument in respect of that other right was registered before or after the acquisition of the operator’s lien or the operator’s lien was acquired before or after that other right, unless the operator’s lien is postponed with respect to such other rights by the registration under this Division of a postponement in respect of the operator’s lien and a discharge in respect of that postponement has not been registered under this Division.

Marginal note:Demand for information

• 113 (1) A person may, in accordance with this section, serve a demand for information in respect of a security notice that has been registered under this Division in relation to an interest or a share therein where that person

  • (a) is the holder of that interest or share;

  • (b) is specified in the security notice as the person from whom the security interest was acquired;

  • (c) is the secured party under another security notice registered under this Division in relation to that interest or share;

  • (d) is a member of a class of persons prescribed by the regulations for the purposes of this subsection; or

  • (e) obtains leave to do so from the court.

• Marginal note:Contents of demand notice

  (2) A demand for information, in respect of a security notice, may be served pursuant to subsection (1) by serving on the secured party under the security notice a demand notice, in prescribed form, requiring the secured party

  • (a) to inform the person serving the demand notice, within fifteen days after service of the notice, of the place where the documents specified in the security notice or copies thereof are located and available for examination, and of the normal business hours during which the examination may be made; and

  • (b) to make such documents or copies thereof available for examination at that place during normal business hours by or on behalf of the person serving the notice, within a reasonable period after the demand notice is served.

• Marginal note:Service

  (3) A demand for information is served for the purposes of this section if it is sent by registered mail or delivered to the official address for service in respect of the security notice according to the records of the Registrar.

• Marginal note:Compliance with demand

  (4) A demand for information served pursuant to subsection (1) may be complied with by mailing or delivering to the person serving the demand notice a true copy of the documents referred to in the demand notice.

• Marginal note:Court order where failure to comply

  (5) Where a secured party fails without reasonable excuse to comply with a demand for information in respect of a security notice in relation to an interest or share therein served on the secured party in accordance with this section, the court may, on application by the person who served the demand notice, make an order requiring the secured party to comply with the demand for information within the time and in the manner specified in the order.

• Marginal note:Where failure to comply with court order

  (6) Where a secured party fails to comply with an order of a court made under subsection (5), the court may, on the application of the person who applied for the order,

  • (a) make any other order the court considers necessary to ensure compliance with the order made under subsection (5); or

  • (b) make an order directing the Registrar to cancel the registration of the security notice.

• Definition of document

  (7) In this section, document includes any amendment to the document.

Marginal note:Notice to take proceedings

• 114 (1) A person who may serve a demand for information in respect of a security notice in relation to an interest or a share therein pursuant to subsection 113(1) may

  • (a) serve on the secured party under the security notice a notice to take proceedings, in prescribed form, directing that secured party to apply to the court within sixty days after the day on which the notice to take proceedings is served, for an order substantiating the security interest claimed in the security notice; or

  • (b) commence proceedings in the court, requiring the secured party to show cause why the registration of the security notice should not be cancelled.

• Marginal note:Order to shorten notice to take proceedings

  (2) The court may, by order, on the ex parte application of a person who proposes to serve a notice to take proceedings under subsection (1), shorten the sixty day period referred to in paragraph (1)(a) and, if the order is made,

  • (a) paragraph (1)(a) shall, in relation to that notice to take proceedings, be deemed to refer to the shorter period; and

  • (b) a certified copy of the order shall be served with that notice to take proceedings.

• Marginal note:Order to extend notice to take proceedings

  (3) The court may, on the application of a secured party served with a notice to take proceedings, extend the period for applying to the court referred to in paragraph (1)(a), whether or not that period has been shortened under subsection (2).

• Marginal note:Service

  (4) A notice to take proceedings is served for the purposes of this section if it is sent by registered mail or delivered to the secured party at the official address for service in respect of the security notice according to the records of the Registrar.

• Marginal note:Cancellation of registration of security notice

  (5) The registration of a security notice shall be cancelled on submission to the Registrar of a statutory declaration showing that

  • (a) a notice to take proceedings was served in accordance with this section; and

  • (b) no application was commenced in accordance with the notice to take proceedings or within the period extended pursuant to subsection (3) or an application so made was dismissed by the court or discontinued.

• Marginal note:No further registration after cancellation

  (6) Where the registration of a security notice in respect of a security interest is cancelled pursuant to subsection (5) or (7), the secured party under the security notice may not submit for registration under this Division another security notice in respect of that security interest without leave of the court to do so.

• Marginal note:Cancellation of registration on order of court

  (7) The registration of a security notice shall be cancelled where there is submitted to the Registrar a certified copy of an order or judgment of a court directing the Registrar to do so, whether as a result of proceedings taken under this Division or otherwise.

Marginal note:Transfer effective on registration

115 A transfer of an interest or a share therein is not effective against the Crown prior to the registration of the transfer.

Marginal note:No restriction on rights of Board or Her Majesty

116 For greater certainty, the registration of an instrument

• (a) does not restrict or in any manner affect any right or power of the Board or of the Ministers under this Part, the regulations or the terms of any interest; and

• (b) does not derogate from any proprietary right or any right to dispose of or exploit natural resources that Her Majesty in right of Canada has under this Act in respect of any portion of the offshore area.

Marginal note:No action for acts done in performance of official functions

117 No action or other proceedings for damages shall be commenced against the Registrar or Deputy Registrar or anyone acting under the authority of the Registrar or Deputy Registrar for an act done or omission in good faith in the exercise of a power or the performance of a duty under this Division.

Marginal note:Regulations

118 Subject to section 7, the Governor in Council may make regulations for carrying out the purposes and provisions of this Division and, without restricting the generality of the foregoing, may make regulations

• (a) prescribing the powers, duties and functions of the Registrar and Deputy Registrar for the purposes of this Division and the time when, and manner and circumstances in which, they are to be exercised, and providing for the designation by the Board of any person or class of persons to exercise such powers and perform such duties and functions as may be specified in the regulations;

• (b) governing the books, abstracts and indexes to be maintained as the register for the purposes of this Division and the particulars of interests, instruments and portions of the offshore area and the orders and declarations made in relation to interests to be recorded therein;

• (c) governing the filing of copies of interests, registered instruments and other documents in the register established under this Division;

• (d) governing public access to and searches of the register; and

• (e) [Repealed, 2015, c. 4, s. 45]

• (f) prescribing any other matter or thing that is by this Division to be prescribed.

DIVISION IXAdministration and Enforcement

Disclosure of Information

Marginal note:Definitions

• 119 (1) In this section,

  delineation well

  delineation well means a well that is so located in relation to another well penetrating an accumulation of petroleum that there is a reasonable expectation that another portion of that accumulation will be penetrated by the first-mentioned well and that the drilling is necessary in order to determine the commercial value of the accumulation; (puits de délimitation)

  development well

  development well means a well that is so located in relation to another well penetrating an accumulation of petroleum that it is considered to be a well or part of a well drilled for the purpose of production or observation or for the injection or disposal of fluid into or from the accumulation; (puits d’exploitation)

  engineering research or feasibility study

  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 exploration for or the development, production or transportation of petroleum in the offshore area; (recherches ou études techniques)

  environmental study

  environmental study means work pertaining to the measurement or statistical evaluation of the physical, chemical and biological elements of the lands, oceans or coastal zones, including winds, waves, tides, currents, precipitation, ice cover and movement, icebergs, pollution effects, flora and fauna both onshore and offshore, human activity and habitation and any related matters; (études de l’environnement)

  experimental project

  experimental project means work or activity involving the utilization of methods or equipment that are untried or unproven; (opération expérimentale)

  exploratory well

  exploratory well means a well drilled on a geological feature on which a significant discovery has not been made; (puits d’exploration)

  geological work

  geological work means work, in the field or laboratory, involving the collection, examination, processing or other analysis of lithological, paleontological or geochemical materials recovered from the seabed or subsoil of any portion of the offshore area and includes the analysis and interpretation of mechanical well logs; (travaux de géologie)

  geophysical work

  geophysical work means work involving the indirect measurement of the physical properties of rocks in order to determine the depth, thickness, structural configuration or history of deposition thereof and includes the processing, analysis and interpretation of material or data obtained from such work; (travaux de géophysique)

  geotechnical work

  geotechnical work means work, in the field or laboratory, undertaken to determine the physical properties of materials recovered from the seabed or subsoil of any portion of the offshore area; (travaux de géotechnique)

  well site seabed survey

  well site seabed survey means a survey pertaining to the nature of the seabed or subsoil of any portion of the offshore area in the area of the proposed drilling site in respect of a well and to the conditions of those portions of the offshore area that may affect the safety or efficiency of drilling operations; (levé marin)

  well termination date

  well termination date means the date on which a well has been abandoned, completed or suspended in accordance with any applicable regulations respecting the drilling for petroleum made under Part III. (date d’abandon du puits)

• Marginal note:Privilege

  (2) Subject to section 18 and this section, information or documentation provided for the purposes of this Part or Part III or any regulation made under either Part, whether or not such information or documentation is required to be provided under either Part or any regulation made thereunder, is privileged and shall not knowingly be disclosed without the consent in writing of the person who provided it except for the purposes of the administration or enforcement of either Part or for the purposes of legal proceedings relating to such administration or enforcement.

• Marginal note:Idem

  (3) No person shall be required to produce or give evidence relating to any information or documentation that is privileged under subsection (2) in connection with any legal proceedings, other than proceedings relating to the administration or enforcement of this Part or Part III.

• Marginal note:Registration of documents

  (4) For greater certainty, this section does not apply to a document that has been registered under Division VIII.

• Marginal note:Information that may be disclosed

  (5) Subsection (2) does not apply to the following classes of information or documentation obtained as a result of carrying on a work or activity that is authorized under Part III, namely, information or documentation in respect of

  • (a) an exploratory well, where the information or documentation is obtained as a direct result of drilling the well and if two years have passed since the well termination date of that well;

  • (b) a delineation well, where the information or documentation is obtained as a direct result of drilling the well and if the later of

    • (i) two years since the well termination date of the relevant exploratory well, and

    • (ii) ninety days since the well termination date of the delineation well,

    have passed;

  • (c) a development well, where the information or documentation is obtained as a direct result of drilling the well and if the later of

    • (i) two years since the well termination date of the relevant exploratory well, and

    • (ii) sixty days since the well termination date of the development well,

    have passed;

  • (d) geological work or geophysical work performed on or in relation to any portion of the offshore area,

    • (i) in the case of a well site seabed survey where the well has been drilled, after the expiration of the period referred to in paragraph (a) or the later period referred to in subparagraph (b)(i) or (ii) or (c)(i) or (ii), according to whether paragraph (a), (b) or (c) is applicable in respect of that well, or

    • (ii) in any other case, after the expiration of five years following the date of completion of the work;

  • (e) any engineering research or feasibility study or experimental project, including geotechnical work, carried out on or in relation to any portion of the offshore area,

    • (i) where it relates to a well and the well has been drilled, after the expiration of the period referred to in paragraph (a) or the later period referred to in subparagraph (b)(i) or (ii) or (c)(i) or (ii), according to whether paragraph (a), (b) or (c) is applicable in respect of that well, or

    • (ii) in any other case, after the expiration of five years following the date of completion of the research, study or project or after the reversion of that portion of the offshore area to Crown reserve areas, whichever occurs first;

  • (f) any contingency plan formulated in respect of emergencies arising as a result of any work or activity authorized under Part III;

  • (g) diving work, weather observation or the status of operational activities or of the development of or production from a pool or field;

  • (g.1) accidents, incidents or petroleum spills, to the extent necessary to permit a person or body to produce and to distribute or publish a report for the administration of this Act in respect of the accident, incident or spill;

  • (h) any study funded from an account established under subsection 76(1) of the Canada Petroleum Resources Act, if the study has been completed; and

  • (i) an environmental study, other than a study referred to in paragraph (h),

    • (i) where it relates to a well and the well has been drilled, after the expiration of the period referred to in paragraph (a) or the later period referred to in subparagraph (b)(i) or (ii) or (c)(i) or (ii), according to whether paragraph (a), (b) or (c) is applicable in respect of that well, or

    • (ii) in any other case, if five years have passed since the completion of the study.

• Marginal note:Disclosure — governments and agencies

  (6) The Board 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, if

  • (a) the government or agency undertakes to keep the information or documentation confidential and not to disclose it without the Board’s written consent;

  • (b) the information and documentation is disclosed in accordance with any conditions agreed to by the Board and the government or agency; and

  • (c) in the case of disclosure to a foreign government or agency, the Federal Minister and Provincial Minister consent in writing.

• Marginal note:Disclosure — Minister

  (7) The Board may disclose to the Federal Minister and Provincial Minister the information or documentation that it has disclosed or intends to disclose under subsection (6), but the Federal Minister and the Provincial Minister are not to further disclose that information or documentation unless the Board consents in writing to that disclosure or the Federal Minister or the Provincial Minister is required by an Act of Parliament or an Act of the Legislature of the Province, as the case may be, to disclose that information or documentation.

• Marginal note:Consent

  (8) For the purposes of paragraph (6)(a) and subsection (7), the Board may consent to the further disclosure of information or documentation only if the Board itself is authorized under this section to disclose it.

• Marginal note: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 the scope, purpose, location, timing and nature of the proposed work or activity for which the licence or authorization is sought.

• Marginal note:Public hearing

  (10) Subsection (2) does not apply in respect of information or documentation provided for the purposes of a public hearing conducted under section 44.1.

• Marginal note:Safety or environmental protection

  (11) Subject to section 119.1, the Board may disclose 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 to an operating licence or authorization that is issued under that subsection or provided in accordance with any regulations made under this Part or Part III. The Board is not, however, permitted to disclose information or documentation if the Board is satisfied that

  • (a) disclosure of it could reasonably be expected to result in a material loss or gain to a person, or to prejudice their competitive position, and the potential harm resulting from the disclosure outweighs the public interest in making the disclosure;

  • (b) it is financial, commercial, scientific or technical information or documentation that is confidential and has been consistently treated as such by a person who would be directly affected by its disclosure, and for which the person’s interest in confidentiality outweighs the public interest in its disclosure; or

  • (c) there is a real and substantial risk that disclosure of it will impair the security of pipelines, as defined in section 135, installations, 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.

• Marginal note:Exception

  (12) Subsections (9) to (11) do not apply in respect of information or documentation described in paragraphs (5)(a) to (e) and (i).

Marginal note:Notice — subsection 119(11)

• 119.1 (1) If the Board intends to disclose any information or documentation under subsection 119(11), the Board shall make every reasonable effort to give the person who provided it written notice of the Board’s intention to disclose it.

• Marginal note:Waiver of notice

  (2) Any person to whom a notice is required to be given under subsection (1) may waive the requirement, and if they have consented to the disclosure they are deemed to have waived the requirement.

• Marginal note:Contents of notice

  (3) A notice given under subsection (1) shall include

  • (a) a statement that the Board intends to disclose information or documentation under subsection 119(11);

  • (b) a description of the information or documentation that was provided by the person to whom the notice is given; and

  • (c) a statement that the person may, within 20 days after the day on which the notice is given, make written representations to the Board as to why the information or documentation, or a portion of it, should not be disclosed.

• Marginal note:Representations

  (4) If a notice is given to a person under subsection (1), the Board shall

  • (a) give the person the opportunity to make, within 20 days after the day on which the notice is given, written representations to the Board as to why the information or documentation, or a portion of it, should not be disclosed; and

  • (b) after the person has had the opportunity to make representations, but no later than 30 days after the day on which the notice is given, make a decision as to whether or not to disclose the information or documentation and give written notice of the decision to the person.

• Marginal note:Contents of notice of decision to disclose

  (5) A notice given under paragraph (4)(b) of a decision to disclose information or documentation shall include

  • (a) a statement that the person to whom the notice is given may request a review of the decision under subsection (7) within 20 days after the day on which the notice is given; and

  • (b) a statement that if no review is requested under subsection (7) within 20 days after the day on which the notice is given, the Board shall disclose the information or documentation.

• Marginal note:Disclosure of information or documentation

  (6) If, under paragraph (4)(b), the Board decides to disclose the information or documentation, the Board shall disclose it on the expiry of 20 days after the day on which a notice is given under that paragraph, unless a review of the decision is requested under subsection (7).

• Marginal note:Review

  (7) Any person to whom the Board 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 Trial Division of the Supreme Court of Newfoundland and Labrador for a review of the decision.

• Marginal note:Hearing in summary way

  (8) An application made under subsection (7) shall be heard and determined in a summary way in accordance with any applicable rules of practice and procedure of that Court.

• Marginal note:Court to take precautions against disclosing

  (9) In any proceedings arising from an application under subsection (7), the Trial Division of 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.

Arbitration

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.

• Marginal note:Application

  (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.

Marginal note:Regulations

• 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.

Cancellation of Rights

Marginal note:Notice to comply

• 123 (1) If the Board has reason to believe that an interest owner or holder is failing or has failed to meet any requirement of this Part or Part III or III.1 or any regulation made under any of those Parts, the Board may give notice to that interest owner or holder requiring compliance with the requirement within 90 days after the day on which the notice is given or within any longer period that the Board considers appropriate.

• Marginal note:Default

  (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.

Hearings and Judicial Review

Definition of Committee

• 124 (1) In this section, Committee means the Oil and Gas Committee established by Part III.

• Marginal note:Notice

  (2) The Board shall, not less than thirty days before making any order or decision or taking any action in respect of which it is expressly stated in this Part to be subject to this section, give notice in writing to the persons the Board considers to be directly affected by the proposed order, decision or action.

• Marginal note:Request for hearing

  (3) Any person receiving a notice under subsection (2) may, in writing, request a hearing within the thirty day period referred to in that subsection and, on receipt of such a request, the Board shall direct the Committee to appoint a time and place for a hearing and give notice thereof to the person who requested the hearing.

• Marginal note:Hearing

  (4) Any person requesting a hearing under subsection (3) may make representations and introduce witnesses and documents at the hearing.

• Marginal note:Powers of Committee

  (5) For the purposes of a hearing requested under subsection (3), the Committee has, regarding the attendance, swearing and examination of witnesses and the production and inspection of documents, all such powers, rights and privileges as are vested in a superior court of record.

• Marginal note:Recommendations of Committee

  (6) On the conclusion of the hearing, the Committee shall submit to the Board its recommendations concerning the proposed order, decision or action of the Board, together with the evidence and other material that was before the Committee.

• Marginal note:Order of Board

  (7) Before making any order or decision or taking any action in respect of which a hearing has been held, the Board shall consider the recommendations of the Committee.

• Marginal note:Notification of order and reasons

  (8) Where an order, decision or action referred to in subsection (2) is made or taken, the Board 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.

• Marginal note:Effective date of order

  (9) An order, decision or action referred to in subsection (2) takes effect as of

  • (a) the day that immediately follows the last day of the thirty day period referred to in that subsection, where no hearing is requested under subsection (3); or

  • (b) the day that the order or decision is made or the action is taken by the Board, where a hearing is requested under subsection (3).

• Marginal note: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 Trial Division of the Supreme Court of Newfoundland and Labrador.

Regulations

Marginal note:Regulations

• 125 (1) Subject to section 7, 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) not inconsistent with the Canada Lands Surveys Act authorizing or requiring the survey, division and subdivision of the offshore area and defining and describing those divisions and subdivisions;

  • (b) prescribing the information and documentation to be provided by interest owners and interest holders for the purposes of this Part, the time when and manner in which such information and documentation is to be provided, authorizing the Board to prescribe the form in which it is to be provided and requiring such information and documentation to be provided in accordance with the regulations;

  • (c) requiring fees and deposits to be paid in respect of interests, prescribing the amounts of such fees and deposits, the time and manner of their payment and providing for the administration of such fees and deposits and the disposition and return of deposits; and

  • (d) prescribing any other matter or thing that by this Part is to be prescribed or that is to be done by regulations.

• Marginal note:Publication of proposed regulations

  (2) Subject to subsection (3), a copy of each regulation that the Governor in Council proposes to make under this Part shall be published in the Canada Gazette and a reasonable opportunity shall be afforded to interested persons to make representations to the Board with respect thereto.

• Marginal note:Single publication required

  (3) No proposed regulation need be published more than once under subsection (2) whether or not it is altered or amended after such publication as a result of representations made by interested persons as provided in that subsection.

Marginal note:Forms

• 126 (1) The Board may prescribe any form or any information to be given on a form that is by this Part or the regulations to be prescribed and may include on any form so prescribed a declaration, to be signed by the person completing the form, declaring that the information given by that person on the form is, to the best of the knowledge of that person, true, accurate and complete.

• Marginal note:Forms prescribed or authorized

  (2) Every form purporting to be a form prescribed or authorized by the Board shall be deemed to be a form prescribed by the Board under this Part unless called in question by the Board or some person acting for the Board or Her Majesty in right of Canada or the Province.

• Marginal note:Forms not regulations

  (3) Where a form or information to be given on a form is prescribed by the Board pursuant to this Act, it shall be deemed not to be a regulation within the meaning of the Statutory Instruments Act.

DIVISION XTransitional, Consequential and Commencement

Transitional

Marginal note:Exploration agreements extant are continued

• 127 (1) Where an exploration agreement in relation to any portion of the offshore area was entered into or negotiations in respect thereof were completed under the Canada Oil and Gas Act before the coming into force of this section, that exploration agreement shall, for the purposes of this Part, be referred to as an exploration licence and shall, subject to this Part, have effect in accordance with its terms and conditions.

• Marginal note:Declarations of significant discovery are continued

  (2) Where a declaration of significant discovery was made under section 44 of the Canada Oil and Gas Act and is in force on the coming into force of this section, it continues in force as if it were made pursuant to section 71 of this Part.

• Marginal note:Deemed significant discovery licence

  (3) Where, on the coming into force of this section, an exploration agreement is continuing in force pursuant to subsection 16(4) of the Canada Oil and Gas Act, it shall be deemed to be a significant discovery licence issued under this Part on the coming into force of this section and is subject to this Part.

Marginal note:Replacement of rights

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

• Marginal note:No compensation

  (2) No party shall have any right to claim or receive any compensation, damages, indemnity or other form of relief from Her Majesty in right of Canada or from any servant or agent thereof for any acquired, vested or future right or entitlement or any prospect thereof that is replaced or otherwise affected by this Part, or for any duty or liability imposed on that party by this Part.

Marginal note:Regulations continue in force

• 129 (1) The Canada Oil and Gas Land Regulations remain in force to the extent that they are consistent with this Part until they are revoked or replaced by regulations made under this Part.

• Marginal note:Former interests

  (2) All interests provided by the Canada Oil and Gas Land Regulations that are in force on the coming into force of this section continue in force subject to sections 130 to 133.

• Marginal note:Petro-Canada rights abrogated

  (3) All rights of Petro-Canada to acquire further interests or shares in interests as a result of the operation of section 33, 120 or 121 of the Canada Oil and Gas Land Regulations are abrogated as of March 5, 1982.

• Marginal note:Idem

  (4) Where any portion of the offshore area becomes a Crown reserve area on or after April 30, 1980, Petro-Canada shall not be entitled to exercise any rights under section 33 of the Canada Oil and Gas Land Regulations with respect to that Crown reserve area.

• Marginal note:Dealings not vitiated for failure to comply with regulations

  (5) Where a person acquires, disposes of or otherwise deals in an interest or a share in an interest in respect of which Petro-Canada would, but for the circumstances described in paragraph (a) or (b), have had any right under section 33, 120 or 121 of the Canada Oil and Gas Land Regulations, no such acquisition, disposition or dealing is vitiated by reason only of

  • (a) the failure to give Petro-Canada a notice required under any of those sections; or

  • (b) the erroneous determination of a Canadian participation rate under those regulations.

• Marginal note:Retrospective application

  (6) Subsection (5) has retrospective application to any acquisition, disposition or dealing that occurred prior to March 5, 1982.

• Definition of Petro Canada

  (7) In this section, Petro-Canada means the corporation established by the Petro-Canada Act.

Marginal note:Former permits, former special renewal permits and former exploration agreements

• 130 (1) Subject to sections 132 and 133, the interest owner of a former permit, former special renewal permit or former exploration agreement shall, on or before the first anniversary date of any such interest following March 5, 1982 or on or before six months following such date, whichever is the later, negotiate an exploration licence with the Board subject to sections 31 to 40.

• Marginal note:Surrender

  (2) Where an interest owner referred to in subsection (1) does not comply with that subsection, the portion of the offshore area under the relevant interest is deemed to be surrendered and becomes a Crown reserve area.

• Marginal note:Extension

  (3) Notwithstanding anything in this Part, an exploration licence under subsection (1) may be extended to include all or any portion of the offshore area under the preceding interest and any related portions of the offshore area that, immediately prior to such extension, were Crown reserve areas.

• Marginal note:Where drilling commitment exists

  (4) Where a former special renewal permit or former exploration agreement contains provisions for the drilling of one or more wells, the Board shall offer to issue an exploration licence to the interest owner for a term equal to the balance of the term of the former special renewal permit or former exploration agreement remaining on March 5, 1982 and having the same drilling provisions.

Marginal note:Former leases

• 131 (1) Subject to sections 132 and 133, the interest owner of a former lease shall, on or before the first anniversary date of the former lease following March 5, 1982 or on or before six months following such date, whichever is the later, negotiate an exploration licence with the Board subject to sections 31 to 40.

• Marginal note:Surrender

  (2) Where an interest owner referred to in subsection (1) does not comply with that subsection, the portion of the offshore area under the former lease is deemed to be surrendered and becomes a Crown reserve area.

• Marginal note:Application

  (3) Subsection 130(3) applies, with such modifications as the circumstances require, to lands that may be included in an exploration licence under subsection (1).

Marginal note:Extension of time

132 Where an exploration licence required to be negotiated under section 130 or 131 cannot be negotiated within the period provided in those sections for any reason not attributable to the interest owner, the Board shall extend that period to allow for such negotiation within a reasonable time.

Marginal note:Consolidated exploration licence

• 133 (1) One or more interest owners of former permits, former special renewal permits, former exploration agreements or former leases may, for the purposes of complying with subsection 130(1) or 131(1), negotiate together a single exploration licence that would consolidate any number or combination of such interests held by those interest owners.

• Marginal note:Terms and conditions of exploration licence

  (2) Subject to sections 31 to 40, an exploration licence negotiated pursuant to subsection (1) shall contain any terms and conditions that may be agreed on by the Board and the interest owners thereof.

Marginal note:Crown share abrogated

134 For greater certainty, the reservation to Her Majesty in right of Canada of a Crown share in any interest granted or entered into under the Canada Oil and Gas Act prior to the coming into force of this section is abrogated as of the day this section comes into force.

PART IIIPetroleum Operations

Interpretation

Marginal note:Definitions

135 In this Part,

Chief Conservation Officer

Chief Conservation Officer means the person designated as the Chief Conservation Officer pursuant to section 140; (délégué à l’exploitation)

Chief Safety Officer

Chief Safety Officer means the person designated as the Chief Safety Officer pursuant to section 140; (délégué à la sécurité)

Committee

Committee means the Oil and Gas Committee established by section 141; (Comité)

lease

lease means an oil and gas lease issued pursuant to regulations made in accordance with the Territorial Lands Act and the Public Lands Grants Act and includes a production licence issued under Part II; (concession)

permit

permit means an exploratory oil and gas permit issued pursuant to regulations made in accordance with the Territorial Lands Act and the Public Lands Grants Act and includes an exploration agreement entered into under the Canada Oil and Gas Land Regulations and any exploration agreement or licence that is subject to Part II; (permis)

pipeline

pipeline means any pipe or any system or arrangement of pipes by which petroleum or water incidental to the drilling for or production of petroleum is conveyed from any wellhead or other place at which it is produced to any other place, or from any place where it is stored, processed or treated to any other place, and includes all property of any kind used for the purpose of, or in connection with or incidental to, the operation of a pipeline in the gathering, transporting, handling and delivery of petroleum and, without restricting the generality of the foregoing, includes offshore installations or vessels, tanks, surface reservoirs, pumps, racks, storage and loading facilities, compressors, compressor stations, pressure measuring and controlling equipment and fixtures, flow controlling and measuring equipment and fixtures, metering equipment and fixtures, and heating, cooling and dehydrating equipment and fixtures, but does not include any pipe or any system or arrangement of pipes that constitutes a distribution system for the distribution of gas to ultimate consumers; (pipe-line)

well

well means any opening in the ground (not being a seismic shot hole) that is made, is to be made or is in the process of being made, by drilling, boring or other method,

• (a) for the production of petroleum,

• (b) for the purpose of searching for or obtaining petroleum,

• (c) for the purpose of obtaining water to inject into an underground formation,

• (d) for the purpose of injecting gas, air, water or other substance into an under ground formation, or

• (e) for any purpose, if made through sedimentary rocks to a depth of at least one hundred and fifty metres. (puits)

Purpose

Marginal note:Purpose

135.1 The purpose of this Part is to promote, in respect of the exploration for and exploitation of petroleum,

• (a) safety, particularly by encouraging persons exploring for and exploiting petroleum to maintain a prudent regime for achieving safety;

• (b) the protection of the environment;

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

• (c) the conservation of petroleum resources; and

• (d) joint production arrangements.

Application

Marginal note:Application

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

Oil and Gas Administration Advisory Council

Marginal note:Designation

136.1 The Provincial Minister may designate one of the members of the Oil and Gas Administration Advisory Council established by the Canada Oil and Gas Operations Act.

Offshore Oil and Gas Training Standards Advisory Board

Marginal note:Approval

136.2 The Provincial Minister may approve the establishment of the Offshore Oil and Gas Training Standards Advisory Board by the federal Ministers pursuant to subsection 5.5(1) of the Canada Oil and Gas Operations Act.

Prohibition

Marginal note:Prohibition

137 No person shall carry on any work or activity related to the exploration or drilling for or the production, conservation, processing or transportation of petroleum in the offshore area unless

• (a) that person is the holder of an operating licence issued under paragraph 138(1)(a);

• (b) that person is the holder of an authorization issued, before the commencement of operations, under paragraph 138(1)(b) for each such work or activity; and

• (c) where 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

Marginal note:Delegation

137.1 The Board may delegate any of the Board’s powers under section 138, 138.2, 138.3, 139.1, 139.2, 162.1 or 163 to any person, and the person shall exercise those powers in accordance with the terms of the delegation.

Licences and Authorizations

Operating Licences and Authorization for Work

Marginal note:Licences and authorizations

• 138 (1) The Board may, on application made in the form and containing the information fixed by it, and made in the prescribed manner, issue

  • (a) an operating licence; and

  • (b) subject to section 45, an authorization with respect to each work or activity proposed to be carried on.

• Marginal note:Term and renewals

  (2) An operating licence expires on the thirty-first day of March immediately after the day on which it is issued and may be renewed for successive periods not exceeding one year each.

• Marginal note:Requirements for operating licence

  (3) An operating licence is subject to any requirements that are determined by the Board or that are prescribed and to any deposits that are prescribed.

• Marginal note:Copy to Chief Safety Officer

  (3.1) On receipt by the Board of an application for an authorization for a work or activity referred to in paragraph (1)(b) or of an application to amend such an authorization, the Board shall provide a copy of the application to the Chief Safety Officer.

• Marginal note:Requirements for authorization

  (4) An authorization is subject to such approvals as the Board determines or as may be granted in accordance with the regulations and such requirements and deposits as the Board determines or as may be prescribed, including

  • (a) requirements relating to liability for loss, damage, costs or expenses;

  • (b) requirements for the carrying out of environmental programs or studies; and

  • (c) requirements for the payment of expenses incurred by the Board in approving the design, construction and operation of production facilities and production platforms, as those terms are defined in the regulations.

• Marginal note:Limitation

  (4.1) The approvals, requirements and deposits that are determined, granted or prescribed shall not be inconsistent with the provisions of this Act or the regulations.

• Marginal note:Suspension or revocation

  (5) The Board may suspend or revoke an operating licence or an authorization for failure to comply with, contravention of or default in respect of

  • (a) a requirement, approval or deposit, determined by the Board in accordance with the provisions of this Part or Part III.1 or granted or prescribed by regulations made under either of those Parts, subject to which the licence or authorization was issued;

  • (a.1) a fee or charge payable in accordance with regulations made under section 29.1;

  • (b) a requirement undertaken in a declaration referred to in subsection 139.1(1);

  • (c) subsection 139.1(3), 139.2(2), 162.1(4) or (5) or 163(1.1), (1.2) or (5);

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

  • (d) any applicable regulation.

Marginal note:Environmental assessment

• 138.01 (1) If an application for an authorization under paragraph 138(1)(b) or an application made under subsection 139(2) is in respect of a physical activity described in subsection (2), the Board shall issue the decision statement referred to in section 54 of the Canadian Environmental Assessment Act, 2012 in respect of the physical activity within 12 months after the day on which the applicant has, in the Board’s opinion, provided a complete application.

• Marginal note:Physical activity

  (2) The physical activity in question is a physical activity that:

  • (a) is carried out in the offshore area;

  • (b) is designated by regulations made under paragraph 84(a) of the Canadian Environmental Assessment Act, 2012 or in an order made under subsection 14(2) of that Act;

  • (c) is one for which the Board is the responsible authority as defined in subsection 2(1) of that Act; and

  • (d) is one in relation to which an environmental assessment was not referred to a review panel under section 38 of that Act.

  It includes any physical activity that is incidental to the physical activity described in paragraphs (a) to (d).

• Marginal note:Excluded period

  (3) If the Board requires the applicant to provide information or undertake a study with respect to the physical activity, the period that is taken by the applicant, in the Board’s opinion, to comply with the requirement is not included in the calculation of the period referred to in subsection (1).

• Marginal note:Public notice

  (4) The Board shall, without delay, make public

  • (a) the date on which the 12-month period referred to in subsection (1) begins; and

  • (b) the dates on which the period referred to in subsection (3) begins and ends.

Marginal note:Participant funding program

138.02 The Board may establish a participant funding program to facilitate the participation of the public in the environmental assessment as defined in subsection 2(1) of the Canadian Environmental Assessment Act, 2012 of any physical activity described in subsection 138.01(2) that meets the condition set out in paragraph 58(1)(a) of that Act and that is the subject of an application for an authorization under paragraph 138(1)(b) or an application made under subsection 139(2).

Marginal note:Right of entry

• 138.1 (1) Subject to subsection (2), any person may, for the purpose of exploring for or exploiting petroleum, enter on and use any portion of the offshore area in order to carry on a work or activity authorized under paragraph 138(1)(b).

• Marginal note:Restriction

  (2) Where 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 an interest as defined in Part II, no person may enter on or use that portion for a purpose referred to in subsection (1) without the consent of the occupier or, where 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 of Works and Activities

Marginal note:Safety

138.2 The Board 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.

Spill-treating Agent

Marginal note:Net environmental benefit

138.21 The Board shall not permit the use of a spill-treating agent in an authorization issued under paragraph 138(1)(b) unless the Board determines that the use of the spill-treating agent is likely to achieve a net environmental benefit.

Financial Requirements

Marginal note:Compliance with certain provisions

138.3 The Board 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.

Development Plan Approval

Marginal note:Approval of general approach of development

• 139 (1) No approval that is

  • (a) applicable to an authorization under paragraph 138(1)(b) to carry on work or activity in relation to developing a pool or field, and

  • (b) prescribed by the regulations for the purposes of this subsection

  shall be granted, except with the approval of both Ministers, unless the Board, on application submitted in accordance with subsection (2), has approved a development plan relating to the pool or field pursuant to paragraphs (4)(a) and (b).

• Marginal note:Application and submission of development plan

  (2) For the purposes of subsection (1), an application for the approval of a development plan shall be submitted to the Board in the form and containing the information fixed by the Board, at such time and in such manner as may be prescribed, together with the proposed development plan in the form and containing the information described in subsection (3).

• Marginal note:Development plan in two parts

  (3) A development plan relating to the proposed development of a pool or field submitted pursuant to this section shall be set out in two parts, containing

  • (a) in Part I, a description of the general approach of developing the pool or field, and in particular, information, in such detail as may be prescribed, with respect to

    • (i) the scope, purpose, location, timing and nature of the proposed development,

    • (ii) the production rate, evaluations of the pool or field, estimated amounts of petroleum proposed to be recovered, reserves, recovery methods, production monitoring procedures, costs and environmental factors in connection with the proposed development, and

    • (iii) the production system and any alternative production systems that could be used for the development of the pool or field; and

  • (b) in Part II, all technical or other information and proposals, as may be prescribed, necessary for a comprehensive review and evaluation of the proposed development.

• Marginal note:Approval of development plan

  (4) After reviewing an application and development plan submitted by any person pursuant to this section the Board may, subject to such requirements as the Board deems appropriate or as may be prescribed, approve

  • (a) subject to sections 31 to 40, Part I of the development plan; and

  • (b) Part II of the development plan.

• Marginal note:Approval of amendments to plan

  (5) Where a development plan has been approved pursuant to subsection (4), no amendment of Part I or II of the development plan shall be made unless it is approved by the Board in accordance with paragraph (4)(a) or (b), as the case may be.

• Marginal note:Application of certain provisions

  (6) Subsections (2) to (5) apply, with such modifications as the circumstances require, with respect to a proposed amendment to a development plan.

Declarations

Marginal note:Declaration by applicant

• 139.1 (1) Subject to subsection (2), no authorization under paragraph 138(1)(b) shall be issued unless the Board has received, from the applicant for the authorization, a declaration in the form fixed by the Board that states that

  • (a) the equipment and installations 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 shall ensure, so long as the work or activity that is authorized continues, that the equipment and installations 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.

• (2) [Repealed, 2014, c. 13, s. 23]

• Marginal note:Changes

  (3) Where the equipment, an installation, the operating procedures or any of the personnel specified in the declaration changes and no longer conforms to the declaration, the holder of the authorization shall provide the Board with a new declaration as soon as possible after the change occurs.

• Marginal note:Immunity

  (4) The Board or any delegate of the Board is not liable to any person by reason only of having issued an authorization in reliance on a declaration made under this section.

Certificates

Marginal note:Certificate

• 139.2 (1) No authorization under paragraph 138(1)(b) shall be issued with respect to any prescribed equipment or installation, or any equipment or installation of a prescribed class, unless the Board has received, from the applicant for the authorization, a certificate issued by a certifying authority in the form fixed by the Board.

• Marginal note:Continuing obligation

  (2) The holder of an authorization shall ensure that the certificate referred to in subsection (1) remains in force for so long as the equipment or installation to which the certificate relates is used in the work or activity in respect of which the authorization is issued.

• Marginal note:Contents of certificate

  (3) A certificate referred to in subsection (1) shall state that the equipment or installation in question

  • (a) is fit for the purposes for which it is to be used and may be operated safely without posing a threat to persons or to the environment in the location and for the time set out in the certificate; and

  • (b) is in conformity with all of the requirements and conditions that are imposed for the purposes of this section by subsection 138(4), whether they are imposed by regulation or by the Board.

• Marginal note:Validity of certificate

  (4) A certificate referred to in subsection (1) is not valid if the certifying authority

  • (a) has not complied with any prescribed procedure or any procedure that the Board may establish; or

  • (b) is a person or an organization that has participated in the design, construction or installation of the equipment or installation in respect of which the certificate is issued, to any extent greater than that prescribed.

• Marginal note:Access

  (5) An applicant shall permit the certifying authority to have access to the equipment and installations in respect of which the certificate is required and to any information that relates to them.

• Definition of certifying authority

  (6) For the purposes of this section, certifying authority has the meaning assigned by the regulations.

• Marginal note:Immunity

  (7) The Board or any delegate of the Board is not liable to any person by reason only of having issued an authorization in reliance on a certificate issued under this section.

Chief Safety Officer and Chief Conservation Officer

Marginal note:Designation

140 The Board may, for the purposes of this Act, designate any person as the Chief Safety Officer and any other person as the Chief Conservation Officer. However, the Chief Executive Officer may not be designated as the Chief Safety Officer.

Statutory Instruments Act

Marginal note:Order

140.1 For the purposes of this Act, an order made by an operational safety officer, the Chief Safety Officer, a conservation officer, the Chief Conservation Officer, the Committee or a health and safety officer as defined in subsection 205.001(1) is not a statutory instrument as defined in the Statutory Instruments Act.

Extended Formation Flow Tests

Marginal note:Title

• 140.2 (1) Subject to subsection (2), title to petroleum produced during an extended formation flow test vests in the person who conducts the test in accordance with an authorization under section 138, with every approval and requirement subject to which such an authorization is issued and with any applicable regulation, whether or not the person has a production licence issued under Part II.

• Marginal note:Conditions

  (2) Title to petroleum referred to in subsection (1) is conditional on compliance with the terms of the authorization, approval or regulation, including the payment of royalties or other payment in lieu of royalties.

• Marginal note:Limitation

  (3) This section applies only in respect of an extended formation flow test that provides significant information for determining the best recovery system for a reservoir or for determining the limits of a reservoir or the productivity of a well producing petroleum from a reservoir and that does not adversely affect the ultimate recovery from a reservoir.

Oil and Gas Committee

Constitution

Marginal note:Oil and Gas Committee

• 141 (1) The Board may, for the purposes of this Part and Part III of the Provincial Act, establish a committee to be known as the Oil and Gas Committee, consisting of not more than five members, not more than three of whom may be employees in the federal public administration or the public service of the Province.

• Marginal note:Appointment of members and chairperson

  (2) The members of the Committee shall be appointed by the Board to hold office for a term of three years, and one member shall be designated as chairperson for such term as may be fixed by the Board.

• Marginal note:Re-appointment permitted

  (3) A retiring chairperson or retiring member may be re-appointed to the Committee in the same or another capacity.

Marginal note:Qualification of members

• 142 (1) The Board shall appoint as members of the Committee at least two persons who appear to the Board to have specialized, expert or technical knowledge of petroleum.

• Marginal note:Idem

  (2) The members and employees of the Board and the Chief Conservation Officer are not eligible to be members of the Committee.

• Marginal note:Staff

  (3) The Board shall provide the Committee with such officers, clerks and employees as may be necessary for the proper conduct of the affairs of the Committee, and may provide the Committee with such professional or technical assistance for temporary periods or for specific work as the Committee may request, but no such assistance shall be provided otherwise than from the staff of the Board except with the approval of the two Ministers.

• Marginal note:Remuneration

  (4) The members of the Committee who are not employees in the federal public administration or the public service of the Province shall be paid such remuneration as may be authorized by the Board.

• Marginal note:Expenses

  (5) The members of the Committee are entitled to be paid reasonable travel and living expenses while absent from their ordinary place of residence in the course of their duties.

Marginal note:Interest in petroleum properties

143 No member of the Committee shall have a pecuniary interest of any description, directly or indirectly, in any property in petroleum to which this Part applies or own shares in any company engaged in any phase of the petroleum industry in Canada in an amount in excess of five per cent of the issued shares thereof and no member who owns any shares of any company engaged in any phase of the petroleum industry in Canada shall vote when a question affecting such a company is before the Committee.

Marginal note:Quorum

• 144 (1) A majority of the members, including one member who is not an employee in the federal public administration or the public service of the Province, constitutes a quorum of the Committee.

• Marginal note:Powers of Committee

  (2) The Committee may make general rules not inconsistent with this Part regulating its practice and procedure and the places and times of its sittings.

Jurisdiction and Powers

Marginal note:Jurisdiction

• 145 (1) Where, under this Part, the Committee is charged with a duty to hold an inquiry or to hear an appeal, the Committee has full jurisdiction to inquire into, hear and determine the matter of any such inquiry or appeal and to make any order, or give any direction that pursuant to this Part the Committee is authorized to make or give or with respect to any matter, act or thing that by this Part may be prohibited or approved by the Committee or required by the Committee to be done.

• Marginal note:Powers of Committee

  (2) For the purpose of any inquiry, hearing or appeal, or the making of any order pursuant to this Part, the Committee has, regarding the attendance, swearing and examination of witnesses, the production and inspection of documents, the entry on and inspection of property, the enforcement of its orders and regarding other matters necessary or proper for the due exercise of its jurisdiction pursuant to this Part, all such powers, rights and privileges as are vested in a superior court of record.

• Marginal note:Finding of fact conclusive

  (3) The finding or determination of the Committee on any question of fact within its jurisdiction is binding and conclusive.

Marginal note:Deputing member to hold inquiry

• 146 (1) The Committee may authorize and depute any member thereof to inquire into such matter before the Committee as may be directed by the Committee and to report the evidence and findings, if any, thereon to the Committee, and when such report is made to the Committee, it may be adopted as a finding of the Committee or otherwise dealt with as the Committee considers advisable.

• Marginal note:Powers of deputed member

  (2) Where an inquiry is held by a member under subsection (1), the member has all the powers of the Committee for the purpose of taking evidence or acquiring information for the purposes of the report to the Committee.

Marginal note:Advisory functions

147 The Board may at any time refer to the Committee for a report or recommendation any question, matter or thing arising under this Part or relating to the conservation, production, storage, processing or transportation of petroleum.

Enforcement

Marginal note:Enforcement of Committee orders

• 148 (1) Any order made by the Committee may, for the purpose of its enforcement, be made an order of the Supreme Court of Newfoundland and Labrador and shall be enforced in the same manner as any order of that Court.

• Marginal note:Procedure for enforcement

  (2) To make an order of the Committee an order of the Supreme Court of Newfoundland and Labrador, the practice and procedure established by the Provincial Act for making any order an order of that Court may be followed.

• Marginal note:When order rescinded or replaced

  (3) When an order of the Committee has been made an order of the Supreme Court of Newfoundland and Labrador, any order of the Committee, or of the Board under section 186, rescinding or replacing the first mentioned order of the Committee, has the effect of cancelling the order of the Court and may in the same manner be made an order of the Court.

DIVISION IRegulation of Operations

Regulations

Marginal note:Governor in Council’s regulatory power

• 149 (1) Subject to section 7, the Governor in Council may, for the purposes of safety, the protection of the environment, and accountability as well as for the production and conservation of petroleum resources, make regulations

  • (a) defining 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;

  • (b) concerning the exploration and drilling for, and the production, processing and transportation of, petroleum and works and activities related to such exploration, drilling, production, processing and transportation;

  • (b.1) concerning the measures to be taken in preparation for or in the case of a spill, as defined in subsection 160(1), including measures concerning the use of a spill-treating agent;

  • (b.2) concerning the process for the determination of net environmental benefit;

  • (b.3) concerning the variation or revocation of an approval referred to in paragraph 161.1(1)(b);

  • (c) authorizing the Board, or any person, to make such orders as may be specified in the regulations, and to exercise such powers and perform such duties as may be necessary for

    • (i) the management and control of petroleum production,

    • (ii) the removal of petroleum from the offshore area, and

    • (iii) the design, construction, operation or abandonment of pipeline within the offshore area;

  • (d) concerning arbitration for the purposes of subsection 138.1(2), including the costs of or incurred in relation to such arbitrations;

  • (e) concerning the approvals to be granted as conditions of authorizations issued under paragraph 138(1)(b);

  • (f) concerning certificates for the purposes of section 139.2;

  • (g) prohibiting the introduction into the environment of substances, classes of substances and forms of energy, in prescribed circumstances;

  • (h) authorizing the discharge, emission or escape of petroleum for the purposes of subsection 160(1) in such quantities, at such locations, under such conditions and by such persons as may be specified in the regulations;

  • (h.1) establishing the requirements for a pooled fund for the purposes of subsection 163(1.01);

  • (h.2) concerning the circumstances under which the Board may make a recommendation for the purposes of subsection 163.1(1) and the information to be submitted with respect to that recommendation;

  • (h.3) concerning the creation, conservation and production of records; and

  • (i) prescribing anything that is required to be prescribed for the purposes of this Part.

• Marginal note:Incorporation of standards or specifications

  (2) Unless otherwise provided in this Part, regulations made under subsection (1) may incorporate by reference the standards or specifications of any government, person or organization, either as of a fixed time or as amended from time to time.

• Marginal note:Spill-treating agents

  (3) Regulations made under subsection (1) respecting a spill-treating agent shall, in addition to the requirements set out in subsection 7(1), be made on the recommendation of the Federal Minister and the Minister of the Environment.

Marginal note:Amendments to Schedule 1 or 2

• 149.1 (1) The Governor in Council may, by order, amend Schedule 1 or 2 to add, amend or remove a reference to a federal Act or regulation, or to a provision of a federal Act or regulation.

• Marginal note:Recommendation

  (2) The order shall be made on the recommendation of the Federal Minister and every minister responsible for the administration of the provision.

Marginal note:Publication of proposed regulations

• 150 (1) Subject to subsection (2), a copy of each regulation that the Governor in Council proposes to make under this Division shall be published in the Canada Gazette and a reasonable opportunity shall be afforded to interested persons to make representations to the Federal Minister with respect thereto.

• Marginal note:Single publication required

  (2) No proposed regulation need be published more than once under subsection (1) whether or not it is altered or amended after such publication as a result of representations made by interested persons as provided in that subsection.

Marginal note:Equivalent standards and exemptions

• 151 (1) Subject to subsection (2), the Chief Safety Officer and Chief Conservation Officer may

  • (a) authorize the use of equipment, methods, measures or standards in lieu of any required by any regulation made under section 149, if those Officers are satisfied that the use of that other equipment and those other methods, measures or standards would provide a level of safety, protection of the environment and conservation equivalent to that provided by compliance with the regulations; or

  • (b) grant an exemption from any requirement imposed, by any regulation made under section 149, in respect of equipment, methods, measures or standards, if those Officers are satisfied with the level of safety, protection of the environment and conservation that will be achieved without compliance with that requirement.

• Marginal note:One officer authorizations

  (2) The Chief Safety Officer alone may exercise the powers referred to in paragraph (1)(a) or (b) if the regulatory requirement referred to in that paragraph does not relate to protection of the environment or conservation, and the Chief Conservation Officer alone may exercise those powers if the regulatory requirement does not relate to safety.

• Marginal note:No contravention

  (3) No person contravenes the regulations if that person acts in compliance with an authorization or exemption under subsection (1) or (2).

Marginal note:Guidelines and interpretation notes

• 151.1 (1) The Board may issue and publish, in any manner the Board 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 made under sections 29.1 and 149.

• Marginal note:Deemed not to be statutory instruments

  (2) Guidelines and interpretation notes issued pursuant to subsection (1) shall be deemed not to be statutory instruments for the purposes of the Statutory Instruments Act.

152 [Repealed, 2014, c. 13, s. 28]

Production Orders

Marginal note:Production orders

• 153 (1) Where the Chief Conservation Officer, on reasonable grounds, is of the opinion that, with respect to an interest in any portion of the offshore area, the capability exists to commence, continue or increase production of petroleum and that a production order would stop waste, the Chief Conservation Officer may order the commencement, continuation or increase of production of petroleum at such rates and in such quantities as are specified in the order.

• Marginal note:Ceasing production

  (2) Where the Chief Conservation Officer, on reasonable grounds, is of the opinion that an order under this section would stop waste, the Chief Conservation Officer may order a decrease or the cessation or suspension of production of petroleum for any period specified in the order.

• Marginal note:Investigation and appeal

  (3) Subsections 155(2) to (4) and section 157 apply, with such modifications as the circumstances require, to an order under subsection (1) or (2) as if it were an order under subsection 155(1).

• Marginal note:Access to files and records

  (4) A person subject to an order under subsection (1) or (2) shall, on request, afford the Chief Conservation Officer or a person designated by the Chief Conservation Officer access to premises, files and records for all reasonable purposes related to the order.

Waste

Marginal note:Waste prohibited

• 154 (1) Subject to subsection 194(5), any person who commits waste is guilty of an offence under this Division, but a prosecution may be instituted for such an offence only with the consent of the Board.

• Definition of waste

  (2) In this Part, waste, in addition to its ordinary meaning, means waste as understood in the petroleum industry and in particular, but without limiting the generality of the foregoing, includes

  • (a) the inefficient or excessive use or dissipation of reservoir energy;

  • (b) the locating, spacing or drilling of a well within a field or pool or within part of a field or pool or the operating of any well that, having regard to sound engineering and economic principles, results or tends to result in a reduction in the quantity of petroleum ultimately recoverable from a pool;

  • (c) the drilling, equipping, completing, operating or producing of any well in a manner that causes or is likely to cause the unnecessary or excessive loss or destruction of petroleum after removal from the reservoir;

  • (d) the inefficient storage of petroleum above ground or underground;

  • (e) the production of petroleum in excess of available storage, transportation or marketing facilities;

  • (f) the escape or flaring of gas that could be economically recovered and processed or economically injected into an underground reservoir; or

  • (g) the failure to use suitable artificial, secondary or supplementary recovery methods in a pool when it appears that such methods would result in increasing the quantity of petroleum ultimately recoverable under sound engineering and economic principles.

Marginal note:Prevention of waste

• 155 (1) Where the Chief Conservation Officer on reasonable grounds is of the opinion that waste, other than waste as defined in paragraph 154(2)(f) or (g), is being committed, the Chief Conservation Officer may, subject to subsection (2), order that all operations giving rise to such waste cease until the Chief Conservation Officer is satisfied that the waste has stopped.

• Marginal note:Investigation

  (2) Before making any order under subsection (1), the Chief Conservation Officer shall hold an investigation at which interested persons shall be given an opportunity to be heard.

• Marginal note:Peremptory

  (3) Notwithstanding subsection (2), the Chief Conservation Officer may, without an investigation, make an order under this section requiring all operations to be shut down if in the opinion of the Chief Conservation Officer it is necessary to do so to prevent damage to persons or property or to protect the environment, but as soon as possible after making any such order and in any event within fifteen days thereafter, the Chief Conservation Officer shall hold an investigation at which interested persons shall be given an opportunity to be heard.

• Marginal note:Order after inquiry

  (4) At the conclusion of an investigation under subsection (3), the Chief Conservation Officer may set aside, vary or confirm the order made or make a new order.

Marginal note:Taking over management

• 156 (1) For the purpose of giving effect to an order made under section 155, the Chief Conservation Officer may authorize such persons as may be necessary to enter the place where the operations giving rise to the waste are being carried out and take over the management and control of those operations and any works connected therewith.

• Marginal note:Controlling operations and costs thereof

  (2) A person authorized under subsection (1) to take over the management and control of operations shall manage and control those operations and do all things necessary to stop the waste, and the cost thereof shall be borne by the person who holds the permit or the lease and, until paid, constitutes a debt recoverable by action in any court of competent jurisdiction as a debt due to the Board.

Marginal note:Appeal to Committee

• 157 (1) A person aggrieved by an order of the Chief Conservation Officer after an investigation under section 155 may appeal to the Committee to have the order reviewed.

• Marginal note:Powers on appeal

  (2) After hearing the appeal, the Committee may

  • (a) set aside, confirm or vary the order made by the Chief Conservation Officer;

  • (b) order such works to be undertaken as may be considered necessary to prevent waste, the escape of petroleum or any other contravention of this Division or the regulations; or

  • (c) make such other or further order as the Committee considers appropriate.

Marginal note:Waste by failure to utilize gas or to use appropriate recovery methods

• 158 (1) When the Chief Conservation Officer on reasonable grounds is of the opinion that waste as defined in paragraph 154(2)(f) or (g) is occurring in the recovery of petroleum from a pool, the Chief Conservation Officer may apply to the Committee for an order requiring the operators within the pool to show cause at a hearing to be held on a day specified in the order why the Committee should not make a direction in respect thereof.

• Marginal note:Hearing

  (2) On the day specified in the order under subsection (1), the Committee shall hold a hearing at which the Chief Conservation Officer, the operators and other interested persons shall be given an opportunity to be heard.

Marginal note:Order

• 159 (1) If, after the hearing mentioned in section 158, the Committee is of the opinion that waste as defined in paragraph 154(2)(f) or (g) is occurring in the recovery of petroleum from a pool, the Committee may, by order,

  • (a) direct the introduction of a scheme for the collection, processing, disposition or reinjection of any gas produced from such pool, or

  • (b) direct repressurizing, recycling or pressure maintenance for the pool or any part of the pool and for, or incidental to such purpose, direct the introduction or injection into that pool, or part thereof, of gas, water or other substance,

  and the order may further direct that the pool or part thereof specified in the order be shut in if the requirements of the order are not met or unless a scheme is approved by the Committee and in operation by a date fixed by the order.

• Marginal note:Continuation pending approval of scheme

  (2) Notwithstanding subsection (1), the Committee may permit the continued operation of a pool or any part of a pool after the date fixed by an order under subsection (1) if in the opinion of the Committee a scheme for the repressurizing, recycling or pressure maintenance or the processing, storage or disposal of gas is in course of preparation, but any such continuation of operations is subject to any conditions imposed by the Committee.

Spills and Debris

Definition of spill

• 160 (1) In sections 161 to 165, spill means a discharge, emission or escape of petroleum, other than one that is authorized under subsection 161.5(1), the regulations or any other federal law. It does not include a discharge from a vessel to which Part 8 or 9 of the Canada Shipping Act, 2001 applies or from a ship to which Part 6 of the Marine Liability Act applies.

• Definition of actual loss or damage

  (2) In section 162, actual loss or damage includes loss of income, including future income, and, with respect to any Aboriginal peoples of Canada, loss of hunting, fishing and gathering opportunities. It does not include loss of income recoverable under subsection 42(3) of the Fisheries Act.

• Definition of debris

  (3) In sections 162 to 163 and 165, debris means any installation or structure that was put in place in the course of any work or activity required to be authorized under paragraph 138(1)(b) and that has been abandoned without an authorization that may be required by or under this Part, or any material that has broken away or been jettisoned or displaced in the course of any of that work or activity.

• Marginal note:Immunity

  (4) Her Majesty in right of Canada incurs no liability whatever to any person arising out of the authorization by regulations made by the Governor in Council of any discharge, emission or escape of petroleum.

Marginal note:Spills prohibited

• 161 (1) No person shall cause or permit a spill on or from any portion of the offshore area.

• Marginal note:Duty to report spills

  (2) Where a spill occurs in any portion of the offshore area, any person who at the time of the spill is carrying on any work or activity related to the exploration for or development or production of petroleum in the area of the spill shall, in the manner prescribed by the regulations, report the spill to the Chief Conservation Officer.

• Marginal note:Duty to take reasonable measures

  (3) Every person required to report a spill under subsection (2) shall, as soon as possible, take all reasonable measures consistent with safety and the protection of health and the environment to prevent any further spill, to repair or remedy any condition resulting from the spill and to reduce or mitigate any damage or danger that results or may reasonably be expected to result from the spill.

• Marginal note:Taking emergency action

  (4) Where the Chief Conservation Officer is satisfied on reasonable grounds that

  • (a) a spill has occurred 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) such action is not being taken or will not be taken under subsection (3),

  the Chief Conservation Officer may take such action or direct that it be taken by such persons as may be necessary.

• Marginal note:Taking over management

  (5) For the purposes of subsection (4), the Chief Conservation Officer may authorize and direct such persons as may be necessary to enter the place where the spill has occurred and take over the management and control of any work or activity being carried on in the area of the spill.

• Marginal note:Managing work or activity

  (6) A person authorized and directed to take over the management and control of any work or activity under subsection (5) shall manage and control that work or activity and take all reasonable measures in relation to the spill that are referred to in subsection (3).

• Marginal note:Costs

  (7) Any costs incurred under subsection (6) shall be borne by the person who obtained an authorization under paragraph 138(1)(b) in respect of the work or activity from which the spill emanated and, until paid, constitute a debt recoverable by action in any court of competent jurisdiction as a debt due to the Board.

• Marginal note:Recovery of costs

  (7.1) Where a person, other than a person referred to in subsection (7), takes action pursuant to subsection (3) or (4), the person may recover from Her Majesty in right of Canada the costs and expenses reasonably incurred by that person in taking the action.

• Marginal note:Appeal

  (8) Section 157 applies, with such modifications as the circumstances require, to any action or measure taken or authorized or directed to be taken under subsections (4) to (6) as if it were taken or authorized or directed to be taken by order under subsection 155(1) and as if such order were not subject to an investigation.

• Marginal note:Personal liability

  (9) No person required, directed or authorized to act under this section is personally liable either civilly or criminally in respect of any act or omission in the course of complying with this section unless it is shown that that person did not act reasonably in the circumstances.

Marginal note:Spill-treating agents

• 161.1 (1) The provisions referred to in Schedule 1 do not apply to the deposit of a spill-treating agent and those referred to in Schedule 2 do not apply in respect of any harm that is caused by the spill-treating agent or by the interaction between the spill-treating agent and the spilled oil, if

  • (a) the authorization issued under paragraph 138(1)(b) permits the use of the spill-treating agent;

  • (b) the Chief Conservation Officer approves the use of the agent in response to the spill and it is used in accordance with any requirements set out in the approval; and

  • (c) the agent is used for the purposes of subsection 161(3) or (4).

• Marginal note:Clarification

  (2) The provisions referred to in Schedule 2 continue to apply to the holder of an authorization referred to in paragraph (1)(a) in respect of any harm that is caused by the spill or, despite subsection (1), by the interaction between the spill-treating agent and the spilled oil.

• Marginal note:Net environmental benefit

  (3) Other than in the case of a small scale-test, the approval required under paragraph (1)(b) shall be in writing and shall not be granted unless

  • (a) the Chief Conservation Officer has consulted with the Federal Minister and the Provincial Minister with respect to the approval;

  • (b) the Federal Minister has consulted with the Minister of the Environment with respect to the approval; and

  • (c) the Chief Conservation Officer determines that the use of the agent is likely to achieve a net environmental benefit.

Marginal note:Canadian Environmental Protection Act, 1999

161.2 Section 123 and subsections 124(1) to (3) of the Canadian Environmental Protection Act, 1999 do not apply in respect of a spill-treating agent.

Marginal note:Fisheries Act — civil liability

161.3 For the purpose of section 42 of the Fisheries Act, if subsection 36(3) of that Act would have been contravened but for subsection 161.1(1),

• (a) subsection 36(3) of that Act is deemed to apply in respect of the deposit of the spill-treating agent;

• (b) the holder of the authorization referred to in paragraph 161.1(1)(a) is deemed to be the only person referred to in paragraph 42(1)(a) of that Act; and

• (c) those persons who caused or contributed to the spill are deemed to be the only persons referred to in paragraph 42(1)(b) of that Act.

Marginal note:Notice

161.4 The Federal Minister shall, as soon as possible after it is made, notify the Provincial Minister and the Board of the making of the list of spill-treating agents and any amendment to that list.

Marginal note:Scientific research

• 161.5 (1) For the purpose of a particular research project pertaining to the use of a spill-treating agent in mitigating the environmental impacts of a spill, the Minister of the Environment may authorize, and establish conditions for, the deposit of a spill-treating agent, oil or oil surrogate if the Federal Minister has obtained the Provincial Minister’s approval.

• Marginal note:Oil surrogate

  (2) The Minister of the Environment shall not authorize the deposit of an oil surrogate unless that Minister determines that the oil surrogate poses fewer safety, health or environmental risks than oil.

• Marginal note:Non-application

  (3) If the conditions set out in the authorization are met, the provisions referred to in section 161.2 and Schedules 1 and 2 do not apply in respect of the spill-treating agent, oil and oil surrogate required for the research project.

Marginal note:Recovery of loss, damage, costs or expenses

• 162 (1) Where any discharge, emission or escape of petroleum that is authorized by regulation, or any spill, occurs in any portion of the offshore area,

  • (a) all persons to whose fault or negligence the spill or the authorized discharge, emission or escape of petroleum is attributable or who are by law responsible for others to whose fault or negligence the spill or the authorized discharge, emission or escape of petroleum is attributable are jointly and severally liable, to the extent determined according to the degree of the fault or negligence proved against them, for

    • (i) all actual loss or damage incurred by any person as a result of the spill or the authorized discharge, emission or escape of petroleum or as a result of any action or measure taken in relation to the spill or the authorized discharge, emission or escape of petroleum,

    • (ii) the costs and expenses reasonably incurred by the Board or Her Majesty in right of Canada or the Province or any other person in taking any action or measure in relation to the spill or the authorized discharge, emission or escape of petroleum, and

    • (iii) all loss of non-use value relating to a public resource that is affected by a spill or the authorized discharge, emission or escape of petroleum or as a result of any action or measure taken in relation to the spill or the authorized discharge, emission or escape of petroleum; and

  • (b) the person who is required to obtain an authorization under paragraph 138(1)(b) in respect of the work or activity from which the spill or the authorized discharge, emission or escape of petroleum emanated is liable, without proof of fault or negligence, up to the applicable limit of liability that is set out in subsection (2.2) for the actual loss or damage, the costs and expenses and the loss of non-use value described in subparagraphs (a)(i) to (iii).

• Marginal note:Recovery of loss, etc., caused by debris

  (2) If, as a result of debris or as a result of any action or measure taken in relation to debris, there is a loss of non-use value relating to a public resource or any person incurs actual loss or damage or if the Board or Her Majesty in right of Canada or the Province reasonably incurs any costs or expenses in taking any action or measure in relation to debris,

  • (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; and

  • (b) the person who is required to obtain an authorization under paragraph 138(1)(b) 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 that is set out in subsection (2.2), for that loss, actual loss or damage, and for those costs and expenses.

• Marginal note:Vicarious liability for contractors

  (2.1) A person who is required to obtain an authorization under paragraph 138(1)(b) and who retains, to carry on a work or activity in respect of which the authorization is required, the services of a contractor to whom paragraph (1)(a) or (2)(a) applies is jointly and severally liable with that contractor for any actual loss or damage, costs and expenses and loss of non-use value described in subparagraphs (1)(a)(i) to (iii) and subsection (2).

• Marginal note:Limits of liability

  (2.2) For the purposes of paragraphs (1)(b) and (2)(b), the limits of liability are

  • (a) in respect of any area of land or submarine area referred to in paragraph 6(1)(a) of the Arctic Waters Pollution Prevention Act, the amount by which $1 billion exceeds the amount prescribed under section 9 of that Act in respect of any activity or undertaking engaged in or carried on by any person described in paragraph 6(1)(a) of that Act; and

  • (b) in respect of any area to which this Act applies and to which paragraph (a) does not apply, the amount of $1 billion.

• Marginal note:Increase in limits of liability

  (2.3) Subject to section 7, the Governor in Council may, by regulation, increase the amounts referred to in subsection (2.2).

• Marginal note:Liability under another law — paragraph (1)(b) or (2)(b)

  (2.4) If a person is liable under paragraph (1)(b) or (2)(b) with respect to an occurrence and the person is also liable under any other Act, without proof of fault or negligence, for the same occurrence, the person is liable up to the greater of the applicable limit that is set out in subsection (2.2) and the limit up to which the person is liable under the other Act. If the other Act does not set out a limit of liability, the limits set out in subsection (2.2) do not apply.

• Marginal note:Costs and expenses not recoverable under Fisheries Act

  (2.5) The costs and expenses that are recoverable by Her Majesty in right of Canada or the Province under this section are not recoverable under subsection 42(1) of the Fisheries Act.

• Marginal note:Action — loss of non-use value

  (2.6) Only Her Majesty in right of Canada or the Province may bring an action to recover a loss of non-use value described in subsections (1) and (2).

• Marginal note:Claims

  (3) All claims under this section may be sued for and recovered in any court of competent jurisdiction in Canada and shall rank, firstly, in favour of persons incurring actual loss or damage described in subsections (1) and (2), without preference, secondly, without preference, to meet any costs and expenses described in those subsections and, lastly, to recover a loss of non-use value described in those subsections.

• Marginal note:Saving

  (4) Subject to subsections (2.5) and (2.6), nothing in this section suspends or limits

  • (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.

• Marginal note:Limitation period

  (5) Proceedings in respect of claims under this section may be instituted within three years after the day when the loss, damage costs or expenses occurred but in no case after six years after the day the spill or the discharge, emission or escape of petroleum occurred or, in the case of debris, after the day the installation or structure in question was abandoned or the material in question broke away or was jettisoned or displaced.

Marginal note:Financial resources — certain activities

• 162.1 (1) An applicant for an authorization under paragraph 138(1)(b) for the drilling for or development or production of petroleum shall provide proof, in the prescribed form and manner, that it has the financial resources necessary to pay the greatest of the amounts of the limits of liability referred to in subsection 162(2.2) that apply to it. If the Board considers it necessary, it may determine a greater amount and require proof that the applicant has the financial resources to pay that greater amount.

• Marginal note:Financial resources — other activities

  (2) An applicant for an authorization under paragraph 138(1)(b) for any other work or activity shall provide proof, in the prescribed form and manner, that it has the financial resources necessary to pay an amount that is determined by the Board.

• Marginal note:Loss of non-use value not considered

  (3) When the Board determines an amount under subsection (1) or (2), the Board is not required to consider any potential loss of non-use value relating to a public resource that is affected by a spill or the authorized discharge, emission or escape of petroleum or as a result of debris.

• Marginal note:Continuing obligation

  (4) The holder of an authorization under paragraph 138(1)(b) shall ensure that the proof referred to in subsections (1) and (2) remains in force for the duration of the work or activity in respect of which the authorization is issued.

• Marginal note:Extended obligation

  (5) The holder of an authorization under paragraph 138(1)(b) shall also ensure that the proof referred to in subsection (1) remains in force for a period of one year beginning on the day on which the Board notifies the holder that it has accepted a report submitted by the holder indicating that the last well in respect of which the authorization is issued is abandoned. The Board may reduce that period and may decide that the proof that is to remain in force during that period is proof that the holder has the financial resources necessary to pay an amount that is less than the amount referred to in subsection (1) and that is determined by the Board.

Marginal note:Financial responsibility

• 163 (1) An applicant for an authorization under paragraph 138(1)(b) shall provide proof of financial responsibility in the form of a letter of credit, guarantee or indemnity bond or in any other form satisfactory to the Board,

  • (a) in the case of the drilling for or development or production of petroleum in the offshore area, in the amount of $100 million or, if the Board considers it necessary, in a greater amount that it determines; or

  • (b) in any other case, in an amount that is satisfactory to, and determined by, the Board.

• Marginal note:Pooled fund

  (1.01) An applicant to which paragraph (1)(a) applies may, rather than provide proof of financial responsibility in the amount referred to in that paragraph, provide proof that it participates in a pooled fund that is established by the oil and gas industry, that is maintained at a minimum of $250 million and that meets any other requirements that are established by regulation.

• Marginal note:Increase in amount by regulation

  (1.02) Subject to section 7, the Governor in Council may, by regulation, increase the amount referred to in subsection (1.01).

• Marginal note:Continuing obligation

  (1.1) The holder of an authorization under paragraph 138(1)(b) shall ensure that the proof of financial responsibility referred to in subsection (1) or (1.01) remains in force for the duration of the work or activity in respect of which the authorization is issued.

• Marginal note:Extended obligation

  (1.2) The holder of an authorization under paragraph 138(1)(b) shall also ensure that the proof referred to in paragraph (1)(a) or subsection (1.01) remains in force for a period of one year beginning on the day on which the Board notifies the holder that it has accepted a report submitted by the holder indicating that the last well in respect of which the authorization is issued is abandoned. The Board may reduce that period and may decide — other than in the case of a holder that participates in a pooled fund — that the proof that is to remain in force during that period is for an amount that is less than the amount referred to in paragraph (1)(a) and that is determined by the Board.

• Marginal note:Payment of claims

  (2) The Board may require that moneys in an amount not exceeding the amount prescribed for any case or class of cases, or determined by the Board in the absence of regulations, be paid out of the funds available under the letter of credit, guarantee or indemnity bond or other form of financial responsibility provided under subsection (1), or be paid out of the pooled fund referred to in subsection (1.01), in respect of any claim for which proceedings may be instituted under section 162, whether or not those proceedings have been instituted.

• Marginal note:Manner of payment

  (3) Where payment is required under subsection (2), it shall be made in such manner, subject to such conditions and procedures and to or for the benefit of such persons or classes of persons as may be prescribed by the regulations for any case or class of cases, or as may be required by the Board in the absence of regulations.

• Marginal note:Deduction

  (4) Where a claim is sued for under section 162, there shall be deducted from any award made pursuant to the action on that claim any amount received by the claimant under this section in respect of the loss, damage, costs or expenses claimed.

• Marginal note:Reimbursement of pooled fund

  (5) The holder of an authorization under paragraph 138(1)(b) that is liable for a discharge, emission or escape of petroleum that is authorized by regulation or for any spill or debris in respect of which a payment has been made under subsection (2) out of the pooled fund, shall reimburse the amount of the payment in the prescribed manner.

Marginal note:Lesser amount

• 163.1 (1) The Federal Minister may, by order, on the recommendation of the Board and with the Provincial Minister’s approval, approve an amount that is less than the amount referred to in paragraph 162(2.2)(a) or (b) or 163(1)(a) in respect of an applicant for, or a holder of, an authorization under paragraph 138(1)(b).

• Marginal note:Financial resources — exception

  (2) If the Federal Minister approves an amount that is less than the amount referred to in paragraph 162(2.2)(a) or (b) in respect of an applicant for an authorization under paragraph 138(1)(b), that applicant, for the purposes of subsection 162.1(1), shall only provide proof that it has the financial resources necessary to pay the adjusted amount approved by the Federal Minister.

• Marginal note:No contravention

  (3) No applicant for an authorization under paragraph 138(1)(b) contravenes paragraph 163(1)(a) if that applicant provides proof of financial responsibility in the amount that is approved by the Federal Minister under this section.

Marginal note:Review committee

• 164 (1) A committee, consisting of members appointed by each government and by representatives of the petroleum industry and of the fisheries industry, is established by the joint operation of this Act and the Provincial Act to review and monitor the application of sections 162 and 163 and any claims and the payment thereof made under those sections.

• Marginal note:Dissolution of committee

  (2) The committee referred to in subsection (1) may be dissolved only by the joint operation of an Act of Parliament and an Act of the Legislature of the Province.

• Marginal note:Promotion of compensation policies

  (3) The Board shall promote and monitor compensation policies for fishermen sponsored by the fishing industry respecting damages of a non-attributable nature.

Inquiries

Marginal note:Inquiries

• 165 (1) Where a spill or debris or an accident or incident related to any activity to which this Division applies occurs or is found in any portion of the offshore area and results in death or injury or danger to public safety or the environment, the Board may direct an inquiry to be made and may authorize any person it deems qualified to conduct the inquiry.

• Marginal note:Mandatory inquiry

  (1.1) Where a spill or debris or an accident or incident related to any activity to which this Division applies occurs or is found in any portion of the offshore area and is serious, as defined by regulation, the Board shall direct that an inquiry referred to in subsection (1) be made and shall ensure that the person who conducts the inquiry is not employed by the Board.

• Marginal note:Power of person conducting inquiry

  (2) For the purposes of an inquiry under subsection (1), a person authorized by the Board under that subsection has and may exercise all the powers of a person appointed as a commissioner under Part I of the Inquiries Act.

• Marginal note:Report

  (3) As soon as possible after the conclusion of an inquiry under subsection (1), the person or persons authorized to conduct the inquiry shall submit a report to the Board, together with the evidence and other material that was before the inquiry.

• Marginal note:Publication

  (4) A report made pursuant to subsection (3) shall be published by the Board within thirty days after the Board has received it.

• Marginal note:Copies of report

  (5) The Board may supply copies of a report published pursuant to subsection (4) in such manner and on such terms as the Board considers proper.

DIVISION IIProduction Arrangements

Marginal note:Definitions

166 In this Division,

pooled spacing unit

pooled spacing unit means the area that is subject to a pooling agreement or a pooling order; (unité d’espacement mise en commun)

pooled tract

pooled tract means the portion of a pooled spacing unit defined as a tract in a pooling agreement or a pooling order; (parcelle mise en commun)

pooling agreement

pooling agreement means an agreement to pool the interests of owners in a spacing unit and to provide for the operation or the drilling and operation of a well thereon; (accord de mise en commun)

pooling order

pooling order means an order made under section 168 or as altered pursuant to section 170; (arrêté de mise en commun)

royalty interest

royalty interest means any interest in, or the right to receive a portion of, any petroleum produced and saved from a field or pool or part of a field or pool or the proceeds from the sale thereof, but does not include a working interest or the interest of any person whose sole interest is as a purchaser of petroleum from the pool or part thereof; (droit à redevance)

royalty owner

royalty owner means a person, including Her Majesty, who owns a royalty interest; (titulaire de redevance)

spacing unit

spacing unit means the area allocated to a well for the purpose of drilling for or producing petroleum; (unité d’espacement)

tract participation

tract participation means the share of production from a unitized zone that is allocated to a unit tract under a unit agreement or unitization order or the share of production from a pooled spacing unit that is allocated to a pooled tract under a pooling agreement or pooling order; (fraction parcellaire)

unit agreement

unit agreement means an agreement to unitize the interests of owners in a pool or part thereof exceeding in area a spacing unit, or such an agreement as varied by a unitization order; (accord d’union)

unit area

unit area means the area that is subject to a unit agreement; (secteur unitaire)

unit operating agreement

unit operating agreement means an agreement, providing for the management and operation of a unit area and a unitized zone, that is entered into by working interest owners who are parties to a unit agreement with respect to that unit area and unitized zone, and includes a unit operating agreement as varied by a unitization order; (accord d’exploitation unitaire)

unit operation

unit operation means those operations conducted pursuant to a unit agreement or a unitization order; (exploitation unitaire)

unit operator

unit operator means a person designated as a unit operator under a unit operating agreement; (exploitant unitaire)

unit tract

unit tract means the portion of a unit area that is defined as a tract in a unit agreement; (parcelle unitaire)

unitization order

unitization order means an order of the Committee made under section 176; (arrêté d’union)

unitized zone

unitized zone means a geological formation that is within a unit area and subject to a unit agreement; (terrain)

working interest

working interest means a right, in whole or in part, to produce and dispose of petroleum from a pool or part of a pool, whether such right is held as an incident of ownership of an estate in fee simple in the petroleum or under a lease, agreement or other instrument, if the right is chargeable with and the holder thereof is obligated to pay or bear, either in cash or out of production, all or a portion of the costs in connection with the drilling for, recovery and disposal of petroleum from the pool or part thereof; (intérêt économique direct)

working interest owner

working interest owner means a person who owns a working interest. (détenteur)

Pooling

Marginal note:Voluntary pooling

• 167 (1) Where one or more working interest owners have leases or separately owned working interests within a spacing unit, the working interest owners and the royalty owners who own all of the interests in the spacing unit may pool their working interests and royalty interests in the spacing unit for the purpose of drilling for or producing, or both drilling for and producing, petroleum if a copy of the pooling agreement and any amendment thereto has been filed with the Chief Conservation Officer.

• Marginal note:Pooling agreement by Her Majesty

  (2) The Board may, on behalf of Her Majesty, enter into a pooling agreement on any terms and conditions that it deems advisable and, despite anything in Part II or this Part, the Federal Real Property and Federal Immovables Act or any regulations made under those Parts or that Act, the pooling agreement is binding on Her Majesty.

Marginal note:Application for pooling order

• 168 (1) ln the absence of a pooling agreement, a working interest owner in a spacing unit may apply for a pooling order directing the working interest owners and royalty owners within the spacing unit to pool their interests in the spacing unit for the purpose of drilling for and producing, or producing, petroleum from the spacing unit.

• Marginal note:Hearing by Committee

  (2) An application under subsection (1) shall be made to the Board which shall refer the application to the Committee for the purpose of holding a hearing to determine whether a pooling order should be made and at such hearing the Committee shall afford all interested parties an opportunity to be heard.

• Marginal note:Matter to be supplied Committee on hearing

  (3) Prior to a hearing held pursuant to subsection (2), the working interest owner making application shall provide the Committee, and such other interested parties as the Committee may direct, with a proposed form of pooling agreement and the working interest owners who have interests in the spacing unit to which the proposed pooling agreement relates shall provide the Committee with such information as the Committee deems necessary.

• Marginal note:Order of Committee

  (4) After a hearing pursuant to subsection (2), the Committee may order that all working interest owners and royalty owners who have an interest in the spacing unit shall be deemed to have entered into a pooling agreement as set out in the pooling order.

• Marginal note:Contents of pooling order

  (5) Every pooling order shall provide

  • (a) for the drilling and operation of a well on the spacing unit or, where a well that is capable of or that can be made capable of production has been drilled on the spacing unit before the making of the pooling order, for the future production and operation of that well;

  • (b) for the appointment of a working interest owner as operator to be responsible for the drilling, operation or abandoning of the well whether drilled before or after the making of the pooling order;

  • (c) for the allocation to each pooled tract of its share of the production of the petroleum from the pooled spacing unit that is not required, consumed or lost in the operation of the well, which allocation shall be on a prorated area basis unless it can be shown to the satisfaction of the Committee that such basis is unfair, whereupon the Committee may make an allocation on some other more equitable basis;

  • (d) in the event that no production of petroleum is obtained for the payment by the applicant of all costs incurred in the drilling and abandoning of the well;

  • (e) where production has been obtained, for the payment of the actual costs of drilling the well, whether drilled before or after the making of the pooling order, and for the payment of the actual costs of the completion, operation and abandoning of the well; and

  • (f) for the sale by the operator of petroleum allocated pursuant to paragraph (c) to a working interest owner where the working interest owner thereof fails to take in kind and dispose of such production, and for the deduction out of the proceeds by the operator of the expenses reasonably incurred in connection with such sale.

• Marginal note:Provision of penalty

  (6) A pooling order may provide for a penalty for a working interest owner who does not, within the time specified in the order, pay the portion of the costs attributable to the working interest owner as the share of the cost of drilling and completion of the well, but such penalty shall not exceed an amount equal to one-half of that working interest owner’s share of such costs.

• Marginal note:Recovery of costs and penalty

  (7) If a working interest owner does not, within the time specified therefor in the pooling order, pay the share of the costs of the drilling, completing, operating and abandoning of the well, that portion of the costs and the penalty, if any, are recoverable only out of the share of production from the spacing unit and not in any other manner.

Marginal note:Effect of pooling order

169 Where a pooling order is made, all working interest owners and royalty owners having interests in the pooled spacing unit shall, on the making of the pooling order, be deemed to have entered into a pooling agreement as set out in the pooling order and that order shall be deemed to be a valid contract between the parties having interests in the pooled spacing unit, and all its terms and provisions, as set out therein or as altered pursuant to section 170, are binding on and enforceable against the parties thereto, including Her Majesty.

Marginal note:Application to alter pooling order

• 170 (1) The Committee shall hear any application to vary, amend or terminate a pooling order where such application is made by the owners of over twenty-five per cent of the working interests in the pooled spacing unit, calculated on a prorated area basis, and may, in its discretion, order a hearing on the application of any working interest owner or royalty owner.

• Marginal note:Alteration of pooling order

  (2) After a hearing held pursuant to subsection (1), the Committee may vary or amend the pooling order to supply any deficiency therein or to meet changing conditions and may vary or revoke any provision that the Committee deems to be unfair or inequitable or it may terminate the pooling order.

• Marginal note:Tract participation ratios protected

  (3) Where a pooling order is varied or amended, no change shall be made that will alter the ratios of tract participations between the pooled tracts as originally set out in the pooling order.

Marginal note:Prohibition

• 171 (1) No person shall produce any petroleum within a spacing unit in which there are two or more leases or two or more separately owned working interests unless a pooling agreement has been entered into in accordance with section 167 or in accordance with a pooling order made under section 168.

• Marginal note:Saving

  (2) Subsection (1) does not prohibit the production of petroleum for testing in any quantities approved by the Chief Conservation Officer.

Unitization

Marginal note:Unit operation

• 172 (1) Any one or more working interest owners in a pool or part thereof exceeding in area a spacing unit, together with the royalty owners, may enter into a unit agreement and operate their interests pursuant to the terms of the unit agreement or any amendment thereto if a copy of the agreement and any amendment has been filed with the Chief Conservation Officer.

• Marginal note:Board may enter into unit agreement

  (2) The Board may enter into a unit agreement binding on Her Majesty, on any terms and conditions that it may deem advisable, and any of the regulations under Part II or this Part or the Federal Real Property and Federal Immovables Act that may be in conflict with the terms and conditions of the unit agreement stand varied or suspended to the extent necessary to give full effect to the terms and conditions of the unit agreement.

• Marginal note:Unit operator’s relationship to parties

  (3) Where a unit agreement filed under this section provides that a unit operator shall be the agent of the parties thereto with respect to their powers and responsibilities under this Part, the performance or non-performance thereof by the unit operator shall be deemed to be the performance or non-performance by the parties otherwise having those powers and responsibilities under this Part.

Marginal note:Requiring unitization to prevent waste

• 173 (1) Notwithstanding anything in this Part, where, in the opinion of the Chief Conservation Officer, the unit operation of a pool or part thereof would prevent waste, the Chief Conservation Officer may apply to the Committee for an order requiring the working interest owners in the pool or part thereof to enter into a unit agreement and a unit operating agreement in respect of the pool or part thereof, as the case may be.

• Marginal note:Hearing

  (2) Where an application is made by the Chief Conservation Officer pursuant to subsection (1), the Committee shall hold a hearing at which all interested persons shall be afforded an opportunity to be heard.

• Marginal note:Order

  (3) If, after the hearing mentioned in subsection (2), the Committee is of the opinion that unit operation of a pool or part thereof would prevent waste, the Committee may by order require the working interest owners in the pool or part thereof to enter into a unit agreement and a unit operating agreement in respect of the pool or part thereof.

• Marginal note:Cessation of operations

  (4) If, in the time specified in the order referred to in subsection (3), being not less than six months after the date of the making of the order, the working interest owners and royalty owners fail to enter into a unit agreement and a unit operating agreement approved by the Committee, all drilling and producing operations within the pool or part thereof in respect of which the order was made shall cease until such time as a unit agreement and a unit operating agreement have been approved by the Committee and filed with the Chief Conservation Officer.

• Marginal note:Permit to continue operations

  (5) Notwithstanding subsection (4), the Committee may permit the continued operation of the pool or part thereof after the time specified in the order referred to in subsection (3) if it is of the opinion that a unit agreement and unit operating agreement are in the course of being entered into, but any such continuation of operations shall be subject to any conditions prescribed by the Committee.

Compulsory Unitization

Marginal note:Who may apply for unitization order

• 174 (1) One or more working interest owners who are parties to a unit agreement and a unit operating agreement and own in the aggregate sixty-five per cent or more of the working interests in a unit area may apply for a unitization order with respect to the agreements.

• Marginal note:Application for unitization order

  (2) An application under subsection (1) shall be made to the Board which shall refer the application to the Committee for the purpose of holding a hearing thereon in accordance with section 176.

• Marginal note:Application by proposed unit operator

  (3) An application under subsection (1) may be made by the unit operator or proposed unit operator on behalf of the working interest owners referred to in subsection (1).

Marginal note:Contents of unitization application

• 175 (1) An application for a unitization order shall contain

  • (a) a plan showing the unit area that the applicant desires to be made subject to the order;

  • (b) one copy each of the unit agreement and the unit operating agreement;

  • (c) a statement of the nature of the operations to be carried out; and

  • (d) a statement showing

    • (i) with respect to each proposed unit tract, the names and addresses of the working interest owners and royalty owners in that tract, and

    • (ii) the tracts that are entitled to be qualified as unit tracts under the provisions of the unit agreement.

• Marginal note:Details required of unit agreement

  (2) The unit agreement referred to in subsection (1) shall include

  • (a) a description of the unit area and the unit tracts included in the agreement;

  • (b) an allocation to each unit tract of a share of the production from the unitized zone not required, consumed or lost in the unit operation;

  • (c) a provision specifying the manner in which and the circumstances under which the unit operation shall terminate; and

  • (d) a provision specifying that the share of the production from a unit area that has been allocated to a unit tract shall be deemed to have been produced from that unit tract.

• Marginal note:Details required of unit operating agreement

  (3) The unit operating agreement referred to in subsection (1) shall make provision

  • (a) for the contribution or transfer to the unit, and any adjustment among the working interest owners, of the investment in wells and equipment within the unit area;

  • (b) for the charging of the costs and expenses of the unit operation to the working interest owners;

  • (c) for the supervision of the unit operation by the working interest owners through an operating committee composed of their duly authorized representatives and for the appointment of a unit operator to be responsible, under the direction and supervision of the operating committee, for the carrying out of the unit operation;

  • (d) for the determination of the percentage value of the vote of each working interest owner; and

  • (e) for the determination of the method of voting on any motion before the operating committee and the percentage value of the vote required to carry the motion.

Marginal note:Hearing on application

• 176 (1) Where an application made under section 174 is referred by the Board to the Committee, the Committee shall hold a hearing thereon at which all interested persons shall be afforded an opportunity to be heard.

• Marginal note:Unitization order

  (2) If the Committee finds that

  • (a) at the date of the commencement of a hearing referred to in subsection (1)

    • (i) the unit agreement and the unit operating agreement have been executed by one or more working interest owners who own in the aggregate sixty-five per cent or more of the total working interests in the unit area, and

    • (ii) the unit agreement has been executed by one or more royalty owners who own in the aggregate sixty-five per cent or more of the total royalty interests in the unit area, and

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

  the Committee may order

  • (c) that the unit agreement be a valid contract enuring to the benefit of all the royalty owners and working interest owners in the unit area and binding on and enforceable against all such owners, and

  • (d) that the unit operating agreement be a valid contract enuring to the benefit of all the working interest owners in the unit area and binding on and enforceable against all such owners,

  and, subject to section 177, the unit agreement and the unit operating agreement have the effect given them by the order of the Committee.

• Marginal note:Variation by unitization order

  (3) In a unitization order, the Committee may vary the unit agreement or the unit operating agreement by adding provisions or by deleting or amending any provision thereof.

Marginal note:Effective date of unitization order

• 177 (1) Subject to subsection (2), a unitization order becomes effective on the day that the Committee determines in the order, but that day shall be not less than thirty days after the day on which the order is made.

• Marginal note:Effective date when unit agreement or unit operating agreement varied

  (2) Where a unit agreement or unit operating agreement is varied by the Committee in a unitization order, the effective date prescribed in the order shall be a date not less than thirty days following the day the order is made, but the order becomes ineffective if, before the effective date, the applicant files with the Committee a notice withdrawing the application on behalf of the working interest owners or there are filed with the Committee statements in writing objecting to the order and signed

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

    • (i) one or more working interest owners who own in the aggregate more than twenty-five per cent of the total working interests in the area and were included within the group owning sixty-five per cent or more of the total working interests as described in subparagraph 176(2)(a)(i), and

    • (ii) one or more royalty owners who own in the aggregate more than twenty-five per cent of the total royalty interests in the unit area and were included within the group owning sixty-five per cent or more of the total royalty interests as described in subparagraph 176(2)(a)(ii); or

  • (b) in the case of the unit operating agreement, by one or more working interest owners who own in the aggregate more than twenty-five per cent of the total working interests in the unit area and were included within the group owning sixty-five per cent or more of the total working interests as described in subparagraph 176(2)(a)(i).

• Marginal note:Revocation of order

  (3) Where a unitization order becomes ineffective under subsection (2), the Committee shall forthwith revoke the order.

Marginal note:Technical defects in unitization order

178 A unitization order is not invalid by reason only of the absence of notice or of any irregularities in giving notice to any owner in respect of the application for the order or any proceedings leading to the making of the order.

Marginal note:Amending unitization order

• 179 (1) A unitization order may be amended upon the application of a working interest owner, but before amending a unitization order the Committee shall hold a hearing at which all interested parties shall have an opportunity to be heard.

• Marginal note:Voluntary proposal for amendment by owners

  (2) If the Committee finds that, at the date of the commencement of a hearing of an application for the amendment of a unitization order, one or more working interest owners who own in the aggregate sixty-five per cent or more of the total working interests and one or more royalty interest owners who own in the aggregate sixty-five per cent or more of the total royalty interests in the unit area have consented to the proposed amendment, the Committee may amend the unitization order in accordance with the amendment proposed.

Marginal note:Protection of tract participation ratios

180 No amendment shall be made under section 179 that will alter the ratios between the tract participations of those tracts that were qualified for inclusion in the unit area before the commencement of the hearing, and, for the purposes of this section, the tract participations shall be those indicated in the unit agreement when it became subject to a unitization order.

Marginal note:Production prohibited except in accord with unitization order

181 After the date on which a unitization order comes into effect and while the order remains in force, no person shall carry on any operations within the unit area for the purpose of drilling for or producing petroleum from the unitized zone, except in accordance with the provisions of the unit agreement and the unit operating agreement.

Marginal note:How percentages of interests to be determined

182 The percentages of interests referred to in subsections 174(1), 176(2), 177(2) and 179(2) shall be determined

• (a) as to royalty interests, on a prorated area basis; and

• (b) as to working interests, on the basis of tract participation shown in the unit agreement.

General

Marginal note:Pooled spacing unit included in unit area

• 183 (1) A pooled spacing unit that has been pooled pursuant to a pooling order and on which a well has been drilled may be included in a unit area as a single unit tract and the Committee may make such amendments to the pooling order as it deems necessary to remove any conflict between the provisions of the pooling order and the provisions of the unit agreement, or the unit operating agreement or the unitization order, if any.

• Marginal note:Effect of including pooled spacing unit in unit area

  (2) Where a pooled spacing unit is included in a unit area pursuant to subsection (1), the provisions of the unit agreement, the unit operating agreement and the unitization order, if any, prevail over the provisions of the pooling order in the event of a conflict.

• Marginal note:Exceptions

  (3) Notwithstanding subsection (2),

  • (a) the share of the unit production that is allocated to the pooled spacing unit shall in turn be allocated to the separately owned tracts in the pooled spacing unit on the same basis and in the same proportion as production actually obtained from the pooled spacing unit would have been shared under the pooling order;

  • (b) the costs and expenses of the unit operation that are allocated to the pooled spacing unit shall be shared and borne by the owners of the working interests therein on the same basis and in the same proportion as would apply under the pooling order; and

  • (c) the credits allocated under a unit operating agreement to a pooled spacing unit for adjustment of investment for wells and equipment thereon shall be shared by the owners of the working interests therein in the same proportion as would apply to the sharing of production under the pooling order.

DIVISION IIIAppeals and Administration

Appeals

Marginal note:Orders and decisions final

• 184 (1) Except as provided in this Division, every decision or order of the Committee is final and conclusive.

• Marginal note:Decision or order defined

  (2) Any minute or other record of the Committee or any document issued by the Committee, in the form of a decision or order, shall for the purposes of this section be deemed to be a decision or an order of the Committee.

Marginal note:Stated case for Supreme Court of Newfoundland and Labrador

• 185 (1) The Committee may of its own motion or at the request of the Board state a case, in writing, for the opinion of the Trial Division 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.

• Marginal note:Proceedings on case

  (2) The Trial Division of 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.

Marginal note:Board may review orders of Committee

186 The Board may, at any time, in its discretion, either on petition of any interested person or of its own motion, vary or rescind any decision or order of the Committee made under this Part, whether such order is made between parties or otherwise and any order that the Board makes with respect thereto becomes a decision or order of the Committee and, subject to section 187, is binding on the Committee and on all parties.

Marginal note:Appeal to Supreme Court of Newfoundland and Labrador

• 187 (1) An appeal lies from a decision or order of the Committee to the Trial Division of 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 that Court may allow.

• Marginal note:Staying order

  (2) Where leave to appeal is granted pursuant to subsection (1), any order of the Committee in respect of which the appeal is made shall be stayed until the matter of the appeal is determined.

• Marginal note:Powers of Court

  (3) After the hearing of the appeal, the Trial Division of 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.

• Marginal note:Order subject to section 186

  (4) Any order made by the Committee pursuant to subsection (3), unless that order has already been dealt with by the Board pursuant to section 186, shall be subject to that section.

Operational Safety Officers and Conservation Officers

Marginal note:Operational safety officers

• 188 (1) Subject to subsection (4), the Federal Minister and the Provincial Minister shall jointly designate as an operational safety officer for the purposes of the administration and enforcement of this Part an individual who has been recommended by the Board. The Ministers shall make the designation within 30 days after the day on which they receive the name of the individual from the Board.

• Marginal note:Conservation officers

  (2) Subject to subsection (4), the Federal Minister and the Provincial Minister shall jointly designate as a conservation officer for the purposes of the administration and enforcement of this Part an individual who has been recommended by the Board. The Ministers shall make the designation within 30 days after the day on which they receive the name of the individual from the Board.

• Marginal note:Notice of designation

  (3) The Ministers shall, without delay after making a designation, notify the Board, in writing, that the designation has been made.

• Marginal note:Restriction

  (4) The Ministers shall not designate an individual if they are not satisfied that the individual is qualified to exercise the powers and carry out the duties and functions of an operational safety officer or a conservation officer, as the case may be, under this Part. If an individual is not designated, the Ministers shall without delay notify the Board of it, in writing.

• Marginal note:Indemnification

  (5) An individual designated under subsection (1) or (2) who is not an employee of the Board is deemed to be an officer for the purposes of section 16.

Marginal note:Orders for verifying compliance

• 189 (1) An operational safety officer, the Chief Safety Officer, a conservation officer or the Chief Conservation Officer may, for the purpose of verifying compliance with this Part, order any person in charge of a place that is used for any work or activity in respect of which this Part applies or any other place in which that officer has reasonable grounds to believe that there is anything to which this Part applies

  • (a) to inspect anything in the place;

  • (b) to pose questions, or conduct tests or monitoring, in the place;

  • (c) to take photographs or measurements, or make recordings or drawings, in the place;

  • (d) to accompany or assist the officer while the officer is in the place;

  • (e) to produce a document or another thing that is in their possession or control, or to prepare and produce a document based on data or documents that are in their possession or control, in the form and manner that the officer may specify;

  • (f) to provide, to the best of their knowledge, information relating to any matter to which this Part applies, or to prepare and produce a document based on that information, in the form and manner that the officer may specify;

  • (g) to ensure that all or part of the place, or anything located in the place, that is under their control, not be disturbed for a reasonable period specified by the officer pending the exercise of any powers under this section; and

  • (h) to remove anything from the place and to provide it to the officer, in the manner that he or she specifies, for examination, testing or copying.

• Marginal note:Powers on entry

  (2) An operational safety officer, the Chief Safety Officer, a conservation officer or the Chief Conservation Officer may, for the purpose of verifying compliance with this Part, and subject to section 189.2, enter a place that is used for any work or activity in respect of which this Part applies or any other place in which that officer has reasonable grounds to believe that there is anything to which this Part applies, and may for that purpose

  • (a) inspect anything in the place;

  • (b) pose questions, or conduct tests or monitoring, in the place;

  • (c) take samples from the place, or cause them to be taken, for examination or testing, and dispose of those samples;

  • (d) remove anything from the place, or cause it to be removed, for examination, testing or copying;

  • (e) while at the place, take or cause to be taken photographs or measurements, make or cause to be made recordings or drawings or use systems in the place that capture images or cause them to be used;

  • (f) use any computer system in the place, or cause it to be used, to examine data contained in or available to it;

  • (g) prepare a document, or cause one to be prepared, based on data contained in or available to the computer system;

  • (h) use any copying equipment in the place, or cause it to be used, to make copies;

  • (i) be accompanied while in the place by any individual, or be assisted while in the place by any person, that the officer considers necessary; and

  • (j) meet in private with any individual in the place, with the agreement of that individual.

• Marginal note:Clarification

  (3) For greater certainty, an officer who has entered a place under subsection (2) may order any individual in the place to do anything described in paragraphs (1)(a) to (h).

• Marginal note:Return of things removed

  (4) Anything removed under paragraph (1)(h) or (2)(d) for examination, testing or copying shall, if requested by the person from whom it was removed, be returned to that person after the examination, testing or copying is completed, unless it is required for the purpose of a prosecution under this Part.

Marginal note:Reports provided to holder of authorization

189.1 An operational safety officer, the Chief Safety Officer, a conservation officer or the Chief Conservation Officer, as the case may be, shall provide written reports to the holder of an authorization about anything inspected, tested or monitored, by or on the order of the officer, for the purpose of verifying compliance with this Part, at any place that is used for a work or activity for which the authorization is issued.

Marginal note:Entering living quarters

• 189.2 (1) If the place referred to in subsection 189(2) is living quarters

  • (a) neither a conservation officer nor the Chief Conservation Officer is authorized to enter those quarters for the purpose of verifying compliance with this Part; and

  • (b) an operational safety officer or the Chief Safety Officer is not authorized to enter those quarters without the consent of the occupant except

    • (i) to execute a warrant issued under subsection (4), or

    • (ii) to verify that those quarters, if on a marine installation or structure, as defined in subsection 205.001(1), are in a structurally sound condition.

• Marginal note:Notice

  (2) The officer shall provide reasonable notice to the occupant before entering living quarters under subparagraph (1)(b)(ii).

• Marginal note:Exception

  (3) Despite subparagraph (1)(b)(ii), any locker in the living quarters that is fitted with a locking device and that is assigned to the occupant shall not be opened by the officer without the occupant’s consent except under the authority of a warrant issued under subsection (4).

• Marginal note:Authority to issue warrant

  (4) On ex parte application, a justice of the peace may issue a warrant authorizing an operational safety officer who is named in it or the Chief Safety Officer to enter living quarters subject to any conditions specified in the warrant if the justice is satisfied by information on oath that

  • (a) the living quarters are a place referred to in subsection 189(2);

  • (b) entry to the living quarters is necessary to verify compliance with this Part; and

  • (c) entry was refused by the occupant or there are reasonable grounds to believe that entry will be refused or that consent to entry cannot be obtained from the occupant.

• Marginal note:Authority to open locker

  (5) The warrant may also authorize a locker described in subsection (3) to be opened, subject to any conditions specified in the warrant, if the justice is satisfied by information on oath that

  • (a) it is necessary to open the locker to verify compliance with this Part; and

  • (b) the occupant to whom it is assigned refused to allow it to be opened or there are reasonable grounds to believe that the occupant to whom it is assigned will refuse to allow it to be opened or that consent to opening it cannot be obtained from that occupant.

• Marginal note:Use of force

  (6) The officer who executes a warrant issued under subsection (4) shall not use force unless the use of force has been specifically authorized in the warrant.

• Marginal note:Telewarrant provisions to apply

  (7) A warrant may be issued under this section by telephone or other means of telecommunication on information submitted by an operational safety officer or the Chief Safety Officer by one of those means, and section 487.1 of the Criminal Code applies for that purpose, with any modifications that the circumstances require.

• Definition of living quarters

  (8) In this section, living quarters means sleeping quarters provided for employees, as defined in subsection 205.001(1), on a marine installation or structure, as defined in that subsection, and any room for the exclusive use of the occupants of those quarters that contains a toilet or a urinal.

Marginal note:Certificate to be produced

190 The Board shall provide every operational safety officer and conservation officer and the Chief Safety Officer and the Chief Conservation Officer with a certificate of appointment or designation and, on entering any place under the authority of this Part, the officer shall, if so required, produce the certificate to the person in charge of the place.

Marginal note:Assistance to officers

• 191 (1) The owner of, and every person in charge of, a place entered by an operational safety officer, the Chief Safety Officer, a conservation officer or the Chief Conservation Officer under subsection 189(2), and every person found in that place, shall give all assistance that is reasonably required to enable the officer to verify compliance with this Part and provide any documents, data or information that are reasonably required for that purpose.

• Marginal note:Transportation, accommodation and food

  (2) If the place referred to in subsection 189(2) is a marine installation or structure, as defined in subsection 205.001(1), the person in charge of the marine installation or structure shall provide to the officer, and to every individual accompanying the officer, free of charge,

  • (a) suitable transportation between the usual point of embarkation on shore and the marine installation or structure, between the marine installation or structure and the usual point of disembarkation on shore, and between marine installations or structures, if the marine installation or structure or marine installations or structures are situated in the offshore area; and

  • (b) suitable accommodation and food at the marine installation or structure.

Marginal note:Obstruction of officers and making of false statements

192 No person shall obstruct or hinder, or make a false or misleading statement either orally or in writing to, an operational safety officer, the Chief Safety Officer, a conservation officer or the Chief Conservation Officer while the officer is engaged in carrying out his or her duties or functions under this Part.

Marginal note:Authority to issue warrant

• 192.1 (1) On ex parte application, a justice of the peace may issue a warrant if the justice is satisfied by information on oath that there are reasonable grounds to believe that there is in any place anything that will provide evidence or information relating to the commission of an offence under this Part.

• Marginal note:Powers under warrant

  (2) The warrant may authorize an operational safety officer, the Chief Safety Officer, a conservation officer or the Chief Conservation Officer, and any other individual named in the warrant, to at any time enter and search the place and to seize anything specified in the warrant, or do any of the following as specified in it, subject to any conditions that may be specified in it:

  • (a) conduct examinations, tests or monitoring;

  • (b) take samples for examination or testing, and dispose of those samples; or

  • (c) take photographs or measurements, make recordings or drawings, or use systems in the place that capture images.

• Marginal note:Where warrant not necessary

  (3) An operational safety officer, the Chief Safety Officer, a conservation officer or the Chief Conservation Officer may exercise the powers described in this section without a warrant if the conditions for obtaining the warrant exist but by reason of exigent circumstances it would not be feasible to obtain one.

• Marginal note:Exigent circumstances

  (4) Exigent circumstances include circumstances in which the delay necessary to obtain the warrant would result in danger to human life or the environment or the loss or destruction of evidence.

• Marginal note:Operation of computer system and copying equipment

  (5) An individual authorized under this section to search a computer system in a place may

  • (a) use or cause to be used any computer system at the place to search any data contained in or available to the computer system;

  • (b) reproduce or cause to be reproduced any data in the form of a printout or other intelligible output;

  • (c) seize any printout or other output for examination or copying; and

  • (d) use or cause to be used any copying equipment at the place to make copies of the data.

• Marginal note:Duty of person in charge of place

  (6) Every person who is in charge of a place in respect of which a search is carried out under this section shall, on presentation of the warrant, permit the individual carrying out the search to do anything described in subsection (5).

• Marginal note:Transportation, accommodation and food

  (7) The person in charge of a marine installation or structure, as defined in subsection 205.001(1), shall provide to an individual who is executing a warrant under this section at the marine installation or structure, free of charge,

  • (a) suitable return transportation between the marine installation or structure and any location from which transportation services to that marine installation or structure are usually provided, and between marine installations or structures, if the marine installation or structure or marine installations or structures are situated in the offshore area; and

  • (b) suitable accommodation and food at the marine installation or structure.

• Marginal note:Telewarrant provisions to apply

  (8) A warrant may be issued under this section by telephone or other means of telecommunication on information submitted by an operational safety officer, the Chief Safety Officer, a conservation officer or the Chief Conservation Officer by one of those means, and section 487.1 of the Criminal Code applies for that purpose, with any modifications that the circumstances require.

Marginal note:Storage and removal

• 192.2 (1) A thing seized under this Part may be stored in the place where it was seized or may, at the discretion of an operational safety officer, the Chief Safety Officer, a conservation officer or the Chief Conservation Officer, be removed to any other place for storage. The owner of the thing or the person who is lawfully entitled to possess it shall pay the costs of storage or removal.

• Marginal note:Perishable things

  (2) If the thing seized is perishable, an operational safety officer, the Chief Safety Officer, a conservation officer or the Chief Conservation Officer may destroy the thing, or otherwise dispose of it in any manner the officer considers appropriate. Any proceeds realized from its disposition shall be paid to the Receiver General.

Marginal note:Power of operational safety officer

• 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 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.

• Marginal note:Notice

  (2) The officer who makes an order under subsection (1) shall affix at or near the scene of the operation a notice of the order in prescribed form.

• Marginal note:Expiry of order

  (3) An order made by an operational safety officer under subsection (1) expires 72 hours after it is made unless it is confirmed before that time by order of the Chief Safety Officer.

• Marginal note:Modification or revocation

  (4) Immediately after an operational safety officer makes an order under subsection (1), they shall advise the Chief Safety Officer accordingly, and the Chief Safety Officer may modify or revoke the order.

• Marginal note:Reference to provincial court judge

  (5) The person carrying out the operation to which an order under subsection (1) makes reference or any person having a pecuniary interest in that operation may by notice in writing request the Chief Safety Officer to refer it to a provincial court judge for review, and thereupon the Chief Safety Officer shall refer the order to a provincial court judge having jurisdiction in the area closest to that in which the operation is being carried on.

• Marginal note:Inquiry by a provincial court judge

  (6) A provincial court judge to whom an order is referred pursuant to this section shall inquire into the need for the order and for that purpose has all the powers of a commissioner under Part I of the Inquiries Act.

• Marginal note:Burden of proof

  (7) Where an order has been referred to a provincial court judge pursuant to this section, the burden of establishing that the order is not needed is on the person who requested that the order be so referred.

• Marginal note:Provincial court judge’s decision conclusive

  (8) A provincial court judge to whom an order is referred pursuant to this section may confirm or set aside the order and the decision of the provincial court judge is final and conclusive.

• Marginal note:Operations in respect of which order made

  (9) No person shall continue an operation in respect of which an order has been made pursuant to this section, except in accordance with the terms of the order or until the order has been set aside by a provincial court judge pursuant to this section.

Marginal note:Priority

193.1 An order made by an operational safety officer or the Chief Safety Officer prevails over an order made by a conservation officer or the Chief Conservation Officer to the extent of any inconsistency between the orders.

Installation Manager

Marginal note:Installation manager

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

• Marginal note:Powers

  (2) Subject to this Act and any other Act of Parliament, an installation manager has the power to do such things as are required to ensure the safety of the installation and the persons at it, and, more particularly, may

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

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

  • (c) obtain any information or documents.

• Marginal note:Emergency

  (3) In a prescribed emergency situation, an installation 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 installation or that is leaving or approaching it.

Offences and Penalties

Marginal note:Offences

• 194 (1) Every person is guilty of an offence who

  • (a) contravenes this Part or the regulations;

  • (b) makes any false entry or statement in any report, record or document required by this Part or the regulations or by any order made under this Part or the regulations;

  • (c) destroys, mutilates or falsifies any report or other document required by this Part or the regulations or by any order made under this Part or the regulations;

  • (d) produces any petroleum from a pool or field under the terms of a unit agreement within the meaning of Division II, or any amended unit agreement, before the unit agreement or amended unit agreement is filed with the Chief Conservation Officer;

  • (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 Board in accordance with the provisions of this Part or granted or prescribed by regulations made under this Part, of an authorization issued under that paragraph; 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 or the Committee.

• Marginal note:Punishment

  (2) Every person who is guilty of an offence under subsection (1) is liable

  • (a) on summary conviction, to a fine not exceeding one hundred thousand dollars or to imprisonment for a term not exceeding one year, or to both; or

  • (b) on conviction on indictment, to a fine not exceeding one million dollars or to imprisonment for a term not exceeding five years, or to both.

• Marginal note:Sentencing principles

  (3) In addition to the principles and factors that the court is otherwise required to consider, including those set out in sections 718.1 to 718.21 of the Criminal Code, the court shall consider the following principles when sentencing a person who is found guilty of an offence under this Part:

  • (a) the amount of the fine should be increased to account for every aggravating factor associated with the offence, including the aggravating factors set out in subsection (4); and

  • (b) the amount of the fine should reflect the gravity of each aggravating factor associated with the offence.

• Marginal note:Aggravating factors

  (4) The aggravating factors are the following:

  • (a) the offence caused harm or risk of harm to human health or safety;

  • (b) the offence caused damage or risk of damage to the environment or to environmental quality;

  • (c) the offence caused damage or risk of damage to any unique, rare, particularly important or vulnerable component of the environment;

  • (d) the damage or harm caused by the offence is extensive, persistent or irreparable;

  • (e) the offender committed the offence intentionally or recklessly;

  • (f) the offender failed to take reasonable steps to prevent the commission of the offence;

  • (g) by committing the offence or failing to take action to prevent its commission, the offender increased their revenue or decreased their costs or intended to increase their revenue or decrease their costs;

  • (h) the offender has a history of non-compliance with federal or provincial legislation that relates to safety or environmental conservation or protection; and

  • (i) after the commission of the offence, the offender

    • (i) attempted to conceal its commission,

    • (ii) failed to take prompt action to prevent, mitigate or remediate its effects, or

    • (iii) failed to take prompt action to reduce the risk of committing similar offences in the future.

• Marginal note:Absence of aggravating factor

  (4.1) The absence of an aggravating factor set out in subsection (4) is not a mitigating factor.

• Meaning of damage

  (4.2) For the purposes of paragraphs (4)(b) to (d), damage includes loss of use value and non-use value.

• Marginal note:Reasons

  (4.3) If the court is satisfied of the existence of one or more of the aggravating factors set out in subsection (4) but decides not to increase the amount of the fine because of that factor, the court shall give reasons for that decision.

• Marginal note:Due diligence defence

  (4.4) No person shall be found guilty of an offence under this Part if they establish that they exercised due diligence to prevent the commission of the offence.

• Marginal note:Presumption against waste

  (5) No person commits an offence under subsection 154(1) by reason of committing waste as defined in paragraph 154(2)(f) or (g) unless that person has been ordered by the Committee to take measures to prevent the waste and has failed to comply.

Marginal note:Offence by officers, etc., of corporation

• 195 (1) If a corporation commits an offence under this Part, any of the following individuals who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and is liable on conviction to the punishment provided for the offence, whether or not the corporation has been prosecuted or convicted:

  • (a) an officer, director or agent of the corporation; and

  • (b) any other individual exercising managerial or supervisory functions in the corporation.

• Marginal note:Offence by employee or agent

  (2) In a prosecution for an offence under this Part, it is sufficient proof of the offence to establish that it was committed by an employee or agent of the accused, whether or not the employee or agent is identified or has been prosecuted for the offence.

Marginal note:Imprisonment precluded in certain cases

195.1 If an individual is convicted of an offence under this Part on proceedings by way of summary conviction, no imprisonment may be imposed in default of payment of any fine imposed as punishment.

195.2 [Repealed, 2015, c. 4, s. 117]

195.3 [Repealed, 2015, c. 4, s. 117]

195.4 [Repealed, 2015, c. 4, s. 117]

195.5 [Repealed, 2015, c. 4, s. 117]

Marginal note:Order of court

• 196 (1) If a person is found guilty of an offence under this Part, the court may, having regard to the nature of the offence and the circumstances surrounding its commission, in addition to any other punishment that may be imposed under this Part, make an order that has any or all of the following effects:

  • (a) prohibiting the offender from committing an act or engaging in an activity that may, in the opinion of the court, result in the continuation or repetition of the offence;

  • (b) directing the offender to take any action that the court considers appropriate to remedy or avoid any harm to the environment that results or may result from the act or omission that constituted the offence;

  • (c) directing the offender to take any measures that the court considers appropriate to avoid any injury or damage that may result from the act or omission that constituted the offence, or to remedy any injury or damage resulting from it;

  • (d) directing the offender to carry out environmental effects monitoring in the manner established by the Board or directing the offender to pay, in the manner specified by the court, an amount of money for the purposes of environmental effects monitoring;

  • (e) directing the offender to make changes to their environmental management system that are satisfactory to the Board;

  • (f) directing the offender to have an environmental audit conducted by a person of a class and at the times specified by the Board and directing the offender to remedy any deficiencies revealed during the audit;

  • (g) directing the offender to pay to Her Majesty in right of Canada, for the purpose of promoting the conservation, protection or restoration of the environment, or to pay into the Environmental Damages Fund — an account in the accounts of Canada — an amount of money that the court considers appropriate;

  • (h) directing the offender to pay to the Board 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;

  • (i) directing the offender to publish, in the manner specified by the court, the facts relating to the commission of the offence and the details of the punishment imposed, including any orders made under this subsection;

  • (j) directing the offender to submit to the Chief Safety Officer, on application by the Chief Safety Officer within three years after the conviction, any information with respect to the offender’s activities that the court considers appropriate in the circumstances;

  • (k) directing the offender to notify, at the offender’s own cost and in the manner specified by the court, any person aggrieved or affected by the offender’s conduct of the facts relating to the commission of the offence and of the details of the punishment imposed, including any orders made under this subsection;

  • (l) directing the offender to post a bond or pay an amount of money into court that the court considers appropriate to ensure that the offender complies with any prohibition, direction, requirement or condition that is specified in the order;

  • (m) directing the offender to perform community service, subject to any reasonable conditions that may be imposed by the court;

  • (n) directing the offender to pay, in the manner specified by the court, an amount of money to environmental, health or other groups to assist in their work;

  • (o) directing the offender to pay, in the manner specified by the court, an amount of money to an educational institution including for scholarships for students enrolled in studies related to the environment;

  • (p) requiring the offender to comply with any conditions that the court considers appropriate in the circumstances for securing the offender’s good conduct and for preventing the offender from repeating the same offence or committing another offence under this Part;

  • (q) prohibiting the offender from taking measures to acquire an interest or from applying for any new licence or other authorization under this Act during any period that the court considers appropriate.

• Marginal note:Coming into force and duration of order

  (2) An order made under subsection (1) comes into force on the day on which the order is made or on any other day that the court may determine, but shall not continue in force for more than three years after that day.

• Marginal note:Publication

  (3) If an offender does not comply with an order requiring the publication of facts relating to the offence and the details of the punishment, the Board may, in the manner that the court directed the offender, publish those facts and details and recover the costs of publication from the offender.

• Marginal note:Debt due to Board

  (4) If the Board incurs publication costs under subsection (3), the costs constitute a debt due to the Board and may be recovered in any court of competent jurisdiction.

Marginal note:Variation of sanctions

• 196.1 (1) Subject to subsection (2), if a court has made, in relation to an offender, an order under section 196, the court may, on application by the offender or the Board, require the offender to appear before it and, after hearing the offender and the Board, vary the order in one or more of the following ways that the court considers appropriate because of a change in the offender’s circumstances since the order was made:

  • (a) by making changes to any prohibition, direction, requirement or condition that is specified in the order for any period or by extending the period during which the order is to remain in force, not exceeding one year; or

  • (b) by decreasing the period during which the order is to remain in force or by relieving the offender of compliance with any condition that is specified in the order, either absolutely or partially or for any period.

• Marginal note:Notice

  (2) Before making an order under subsection (1), the court may direct that notice be given to any persons that the court considers to be interested, and may hear any of those persons.

Marginal note:Subsequent applications with leave

196.2 If an application made under subsection 196.1(1) in relation to an offender has been heard by a court, no other application may be made under section 196.1 in relation to the offender except with leave of the court.

Marginal note:Recovery of fines and amounts

196.3 If a person is convicted of an offence under this Part and a fine that is imposed is not paid when required or if a court orders an offender to pay an amount under subsection 196(1) or 196.1(1), the prosecutor may, by filing the conviction or order, as the case may be, enter as a judgment the amount of the fine or the amount ordered to be paid, and costs, if any, in the Supreme Court of Newfoundland and Labrador, and the judgment is enforceable against the person in the same manner as if it were a judgment rendered against them in that Court in civil proceedings.

Marginal note:Continuing offences

197 Where an offence under this Part is committed on more than one day or is continued for more than one day, it shall be deemed to be a separate offence for each day on which the offence is committed or continued.

198 [Repealed, 1992, c. 35, s. 83]

Marginal note:Time limited for summary conviction proceedings

199 Proceedings by way of summary conviction for an offence under this Part may be instituted at any time within but no later than three years after the day on which the subject-matter of the proceedings arose, unless the prosecutor and the defendant otherwise agree.

Marginal note:Evidence

200 In any prosecution for an offence under this Part, a copy of any order or other document purporting to have been made pursuant to this Part or the regulations and purporting to have been signed by the person authorized by this Part or the regulations to make that order or document is, in the absence of any evidence to the contrary, proof of the matters set out therein.

Marginal note:Jurisdiction of judge or justice

201 Any complaint or information in respect of an offence under this Part may be heard, tried or determined by a justice or judge if the accused is resident or carrying on business within the territorial jurisdiction of that justice or judge although the matter of the complaint or information did not arise in that territorial jurisdiction.

Marginal note:Action to enjoin not prejudiced by prosecution

• 202 (1) Notwithstanding that a prosecution has been instituted in respect of an offence under this Part, the regulations or any order made pursuant to this Part or the regulations, the Board may commence and maintain an action to enjoin the committing of any contravention of this Part, the regulations or any order made pursuant to this Part or the regulations.

• Marginal note:Civil remedy not affected

  (2) No civil remedy for any act or omission is suspended or affected by reason that the act or omission is an offence under this Part.

Marginal note:Information

202.001 In any proceedings for an offence under this Part

• (a) an information may include more than one offence committed by the same person;

• (b) all those offences may be tried concurrently; and

• (c) one conviction for any or all offences so included may be made.

Administrative Monetary Penalties

Powers

Marginal note:Regulations

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

  • (a) designating as a violation that may be proceeded with in accordance with this Part

    • (i) the contravention of any specified provision of this Part or of any of its regulations,

    • (ii) the contravention of any direction, requirement, decision or order, or of any direction, requirement, decision or order of a specified class of directions, requirements or orders, made under this Part, or

    • (iii) the failure to comply with any term or condition of

      • (A) an operating licence or authorization, or a specified class of operating licences or authorizations, issued under this Part, or

      • (B) any approval or exemption or a specified class of approvals or exemptions, granted under this Part;

  • (b) respecting the determination of, or the method of determining, the amount payable as the penalty, which may be different for individuals and other persons, for each violation; and

  • (c) respecting the service of documents required or authorized under section 202.06, 202.2 or 202.5, including the manner and proof of service and the circumstances under which documents are considered to be served.

• Marginal note:Maximum

  (2) The amount that may be determined under any regulations made under paragraph (1)(b) as the penalty for a violation shall not be more than $25,000, in the case of an individual, and $100,000, in the case of any other person.

Marginal note:Powers

202.02 The Board may

• (a) establish the form of notices of violation;

• (b) designate persons or classes of persons who are authorized to issue notices of violation;

• (c) establish, in respect of each violation, a short-form description to be used in notices of violation; and

• (d) designate persons or classes of persons to conduct reviews under section 202.4.

Violations

Marginal note:Commission of violation

• 202.03 (1) Every person who contravenes or fails to comply with a provision, direction, requirement, decision or order, or term or condition the contravention of which, or the failure to comply with which, is designated to be a violation by a regulation made under paragraph 202.01(1)(a) commits a violation and is liable to a penalty of an amount to be determined in accordance with the regulations.

• Marginal note:Purpose of penalty

  (2) The purpose of the penalty is to promote compliance with this Part and not to punish.

Marginal note:Liability of directors, officers, etc.

202.04 If a corporation commits a violation, any director, officer, or agent or mandatary of the corporation who directed, authorized, assented to, acquiesced in or participated in the commission of the violation is a party to the violation and is liable to a penalty of an amount to be determined in accordance with the regulations, whether or not the corporation has been proceeded against in accordance with this Part.

Marginal note:Proof of violation

202.05 In any proceedings under this Part against a person in relation to a violation, it is sufficient proof of the violation to establish that it was committed by an employee, or agent or mandatary, of the person, whether or not the employee, agent or mandatary is identified or proceeded against in accordance with this Part.

Marginal note:Issuance and service of notice of violation

• 202.06 (1) If a person designated under paragraph 202.02(b) believes on reasonable grounds that a person has committed a violation, the designated person may issue a notice of violation and cause it to be served on the person.

• Marginal note:Contents

  (2) The notice of violation shall

  • (a) name the person that is believed to have committed the violation;

  • (b) set out the relevant facts surrounding the violation;

  • (c) set out the amount of the penalty for the violation;

  • (d) inform the person of their right, under section 202.2, to request a review with respect to the amount of the penalty or the facts of the violation, and of the period within which that right is to be exercised;

  • (e) inform the person of the manner of paying the penalty set out in the notice; and

  • (f) inform the person that, if they do not pay the penalty or exercise their right referred to in paragraph (d), they will be considered to have committed the violation and that they are liable to the penalty set out in the notice.

Rules about Violations

Marginal note:Certain defences not available

• 202.07 (1) A person named in a notice of violation does not have a defence by reason that the person

  • (a) exercised due diligence to prevent the commission of the violation; or

  • (b) reasonably and honestly believed in the existence of facts that, if true, would exonerate the person.

• Marginal note:Common law principles

  (2) Every rule and principle of the common law that renders any circumstance a justification or excuse in relation to a charge for an offence under this Part applies in respect of a violation to the extent that it is not inconsistent with this Part.

Marginal note:Continuing violation

202.08 A violation that is committed or continued on more than one day constitutes a separate violation for each day on which it is committed or continued.

Marginal note:Violation or offence

• 202.09 (1) Proceeding with any act or omission as a violation under this Part precludes proceeding with it as an offence under this Part, and proceeding with it as an offence under this Part precludes proceeding with it as a violation under this Part.

• Marginal note:Violations not offences

  (2) For greater certainty, a violation is not an offence and, accordingly, section 126 of the Criminal Code does not apply in respect of a violation.

Marginal note:Limitation or prescription period

202.1 No notice of violation is to be issued more than two years after the day on which the matter giving rise to the violation occurred.

Reviews

Marginal note:Right to request review

202.2 A person who is served with a notice of violation may, within 30 days after the day on which it is served, or within any longer period that the Board allows, make a request to the Board for a review of the amount of the penalty or the facts of the violation, or both.

Marginal note:Correction or cancellation of notice of violation

202.3 At any time before a request for a review in respect of a notice of violation is received by the Board, a person designated under paragraph 202.02(b) may cancel the notice of violation or correct an error in it.

Marginal note:Review

• 202.4 (1) On receipt of a request made under section 202.2, the Board shall conduct the review or cause the review to be conducted by a person designated under paragraph 202.02(d).

• Marginal note:Restriction

  (2) The Board shall conduct the review if the notice of violation was issued by a person designated under paragraph 202.02(d).

Marginal note:Object of review

• 202.5 (1) The Board or the person conducting the review shall determine, as the case may be, whether the amount of the penalty for the violation was determined in accordance with the regulations or whether the person committed the violation, or both.

• Marginal note:Determination

  (2) The Board or the person conducting the review shall render a determination and the reasons for it in writing and cause the person who requested the review to be served with a copy of them.

• Marginal note:Correction of penalty

  (3) If the Board or the person conducting the review determines that the amount of the penalty for the violation was not determined in accordance with the regulations, the Board or the person, as the case may be, shall correct the amount of the penalty.

• Marginal note:Responsibility

  (4) If the Board or the person conducting the review determines that the person who requested the review committed the violation, the person who requested the review is liable to the penalty as set out in the notice issued under section 202.06 or as set out in the determination if the amount of the penalty was corrected under subsection (3).

• Marginal note:Determination final

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

Marginal note:Burden of proof

202.6 If the facts of a violation are reviewed, the person who issued the notice of violation shall establish, on a balance of probabilities, that the person named in it committed the violation identified in it.

Responsibility

Marginal note:Payment

202.7 If a person pays the penalty set out in a notice of violation, the person is considered to have committed the violation and proceedings in respect of it are ended.

Marginal note:Failure to act

202.8 A person that neither pays the penalty imposed under this Part nor requests a review within the period referred to in section 202.2 is considered to have committed the violation and is liable to the penalty.

Recovery of Penalties

Marginal note:Debt to Her Majesty

• 202.9 (1) A penalty constitutes a debt due to Her Majesty in right of the Province and may be recovered in the Trial Division of the Supreme Court of Newfoundland and Labrador.

• Marginal note:Limitation period

  (2) No proceedings to recover the debt are to be instituted more than five years after the day on which the debt becomes payable.

Marginal note:Certificate

• 202.91 (1) The Board may issue a certificate of non-payment certifying the unpaid amount of any debt referred to in subsection 202.9(1).

• Marginal note:Registration

  (2) Registration in the Trial Division of 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.

General

Marginal note:Admissibility of documents

202.92 In the absence of evidence to the contrary, a document that appears to be a notice issued under subsection 202.06(1) is presumed to be authentic and is proof of its contents in any proceeding in respect of a violation.

Marginal note:Publication

202.93 The Board may make public the nature of a violation, the name of the person who committed it and the amount of the penalty.

Regulations

Marginal note:Regulations

203 Subject to section 7, the Governor in Council may make such regulations not inconsistent with this Part as may be deemed necessary for carrying out the purposes of this Part, and, without limiting the generality of the foregoing, may make regulations defining and distinguishing more particularly for the purposes of Divisions I and II the expressions “oil” and “gas”.

Application

Marginal note:Application

204 This Part applies to every interest or right in petroleum acquired or vested before the coming into force of this section and is binding on Her Majesty in right of Canada or a province.

Transitional

Marginal note:Operating licences

• 205 (1) Where an operating licence was issued under subsection 3.2(1) of the Oil and Gas Production and Conservation Act and is in force on the coming into force of this section, it shall be deemed to be an operating licence issued by the Board under this Part.

• Marginal note:Authorizations and development plan approval

  (2) Where, prior to the coming into force of this section, authorization for any work or activity or approval of a development plan was given under subsection 3.2(1) of the Oil and Gas Production and Conservation Act or any regulation made under that Act, the authorization or approval shall be deemed to have been given by the Board under this Part.

PART III.1Occupational Health and Safety

Interpretation

Marginal note:Definitions

• 205.001 (1) The following definitions apply in this Part.

  authorization

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

  Chief Safety Officer

  Chief Safety Officer means the person designated as the Chief Safety Officer under section 140. (délégué à la sécurité)

  committee

  committee means a special committee and a workplace committee. (comité)

  coordinator

  coordinator means an employee designated under subsection 205.045(1) to act as an occupational health and safety coordinator. (coordonnateur)

  declaration

  declaration means a declaration referred to in subsection 139.1(1). (déclaration)

  employee

  employee means an individual who, in return for monetary compensation, performs work or services for an employer in respect of a work or activity for which an authorization has been issued. (employé)

  employer

  employer means a person who employs or contracts for the services of any individual in respect of a work or activity for which an authorization has been issued, if that person has the power to exercise direction and control over the individual’s work at the workplace. (employeur)

  hazardous substance

  hazardous substance includes a controlled product and any chemical, biological or physical agent that, by reason of a property that the agent possesses, is hazardous to the health or safety of an individual exposed to it. (substance dangereuse)

  health and safety officer

  health and safety officer means an occupational health and safety officer or a special officer. (agent de santé et de sécurité)

  interest holder

  interest holder has the same meaning as in section 47. (Version anglaise seulement)

  marine installation or structure

  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, living accommodation, storage structure 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)

  Newfoundland and Labrador social legislation

  Newfoundland and Labrador social legislation means the provisions of the following Acts, as those Acts are amended from time to time: the Communicable Diseases Act, R.S.N.L. 1990, c. C-26, the Food and Drug Act, R.S.N.L. 1990, c. F-21, the Health and Community Services Act, S.N.L. 1995, c. P-37.1, the Human Rights Act, 2010, S.N.L. 2010, c. H-13.1, the Labour Standards Act, R.S.N.L. 1990, c. L-2, the Public Safety Act, S.N.L. 1996, c. P-41.01, the Radiation Health and Safety Act, R.S.N.L. 1990, c. R-1, and the Workplace Health, Safety and Compensation Act, R.S.N.L. 1990, c. W-11. (lois sociales)

  occupational health and safety officer

  occupational health and safety officer means an individual designated by the Federal Minister under section 205.071. (agent de santé et de sécurité au travail)

  operator

  operator means a person who holds an authorization. (exploitant)

  owner

  owner means a person who has a right, title or interest, including a leasehold interest, recognized by law, in a marine installation or structure that is used or is to be used as a workplace, or any entity in which the person has vested all or any part of their right, title or interest. (propriétaire)

  passenger craft

  passenger craft means any aircraft or vessel used to transport employees to or from a workplace while — and immediately before — it is transporting them. (véhicule de transport)

  person

  person includes individuals, corporations and partnerships. (personne)

  personal protective equipment

  personal protective equipment includes personal protective clothing, personal protective devices and personal protective materials. (équipement de protection personnelle)

  provider of services

  provider of services means a person who, for commercial gain,

  • (a) provides services related to the placement with an operator or employer of individuals who, in return for monetary compensation, perform work or services for the operator or employer at a workplace; or

  • (b) provides services that affect or could affect the health or safety of employees or other individuals at a workplace or on a passenger craft, including engineering services, architectural services, the services of a certifying authority referred to in subsection 139.2(6), or the services of any person who provides information or advice, issues a certificate or affixes a professional seal or stamp. (fournisseur de services)

  provincial labour relations board

  provincial labour relations board means the Labour Relations Board continued under the Labour Relations Act, R.S.N.L. 1990, c. L-1, as amended from time to time. (Version anglaise seulement)

  Provincial Minister

  Provincial Minister means the minister of the government of the Province who is responsible for occupational health and safety. (ministre provincial)

  special committee

  special committee means a special committee established under section 205.046. (comité spécial)

  special officer

  special officer means an individual designated under section 205.072. (agent spécial)

  supervisor

  supervisor means an employee who is in charge of a workplace or part of a workplace or who has authority over other employees. (superviseur)

  supplier

  supplier means a person who, for commercial gain, manufactures, supplies, sells, leases, distributes or installs any tool, equipment, machine or device, any biological, chemical, or physical agent or any other prescribed thing, to be used at a workplace or on a passenger craft. (fournisseur de biens)

  union

  union means a trade union as defined in the Labour Relations Act, R.S.N.L. 1990, c. L-1, as amended from time to time, that has the status of a bargaining agent under that Act in respect of any bargaining unit at a workplace, or any organization representing employees that has exclusive bargaining rights under any other Act of the Legislature of the Province in respect of those employees. (syndicat)

  workplace

  workplace means

  • (a) any marine installation or structure where an employee is employed in connection with a work or activity for which an authorization has been issued;

  • (b) any workboat used by an employee, and operated from a marine installation or structure, to perform routine maintenance or repair work in connection with a work or activity for which an authorization has been issued; and

  • (c) any dive site from which, and any underwater area at which, a diving operation is conducted by an employee in connection with a work or activity for which an authorization has been issued. (lieu de travail)

  workplace committee

  workplace committee means a workplace committee established under section 205.043. (comité du lieu de travail)

• Marginal note:Hazardous Products Act definitions

  (2) In this Part, controlled product, hazard symbol, Ingredient Disclosure List, label and material safety data sheet have the same meanings as in section 2 and subsection 11(1) of the Hazardous Products Act. Subsection 11(2) of that Act also applies for the purposes of this Part.

• Marginal note:Regulations

  (3) Subject to section 7 and on the recommendation of the Federal Minister and the Minister of Labour, the Governor in Council may make regulations

  • (a) defining danger, dive site, diving operation and incident for the purposes of this Part; and

  • (b) amending the definition Newfoundland and Labrador social legislation in subsection (1) to add any Act of the Legislature of the Province or to remove any Act from the definition.

• Marginal note:Regulations

  (4) Subject to section 7 and on the recommendation of the Federal Minister, the Minister of Labour and the Minister of Transport, the Governor in Council may make regulations

  • (a) prescribing a work or a class of works for the purposes of subparagraph (a)(iv) of the definition marine installation or structure in subsection (1);

  • (b) prescribing a class of vessels for the purposes of subparagraph (b)(i) of the definition marine installation or structure in subsection (1); and

  • (c) prescribing a class of ships or vessels for the purposes of subparagraph (b)(ii) of the definition marine installation or structure in subsection (1).

• Marginal note:Employees in transit

  (5) For the purposes of sections 205.005, 205.007 and 205.008, an employee is deemed to be at a workplace within the offshore area while — and immediately before — the employee is being transported on a passenger craft between the last point of embarkation on shore and the workplace, between the workplace and the first point of disembarkation on shore, or between workplaces.