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Canada–Newfoundland and Labrador Atlantic Accord Implementation Act (S.C. 1987, c. 3)

Act current to 2022-06-20 and last amended on 2020-02-26. Previous Versions

PART IIIPetroleum Operations (continued)

DIVISION IIProduction Arrangements (continued)

Compulsory Unitization (continued)

Marginal note:Technical defects in unitization order

 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

  •  (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.

  • 1987, c. 3, s. 179
  • 1994, c. 26, s. 15(F)

Marginal note:Protection of tract participation ratios

 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

 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

 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

  •  (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

  •  (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

  •  (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.

  • 1987, c. 3, s. 185
  • 2014, c. 13, s. 30

Marginal note:Board may review orders of Committee

 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

  •  (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.

  • 1987, c. 3, s. 187
  • 2014, c. 13, s. 31

Operational Safety Officers and Conservation Officers

Marginal note:Operational safety officers

  •  (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.

  • 1987, c. 3, s. 188
  • 1992, c. 35, s. 80
  • 2014, c. 13, s. 33

Marginal note:Orders for verifying compliance

  •  (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.

  • 1987, c. 3, s. 189
  • 1992, c. 35, s. 80
  • 2014, c. 13, s. 33

Marginal note:Reports provided to holder of authorization

 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.

  • 2014, c. 13, s. 33

Marginal note:Entering living quarters

  •  (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.

  • 2014, c. 13, s. 33
 
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