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

Act current to 2019-11-19 and last amended on 2019-08-28. Previous Versions

PART IIPetroleum Resources (continued)

DIVISION IVProduction (continued)

Issuance of Production Licences (continued)

Marginal note:Lapsing of other interests

  •  (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

  •  (1) Subject to sections 32 to 37, 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

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

  • 1988, c. 28, s. 90
  • 1993, c. 47, s. 14

DIVISION V[Repealed, 1993, c. 47, s. 15]

DIVISION VIRoyalties

Reservation of Royalties

Marginal note:Royalties reserved

  •  (1) 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 (3), the royalties, interest and penalties that would be payable in respect of petroleum under the Offshore Petroleum Royalty Act if the petroleum were produced from Nova Scotia lands within the meaning of the Provincial Act.

  • Marginal note:Exception

    (2) Notwithstanding subsection (1), where petroleum is subject to a royalty under the Offshore Petroleum Royalty Act, that petroleum is not subject to a royalty under subsection (1).

  • Marginal note:Application of Nova Scotia legislation

    (3) Subject to this Act and the regulations, the Offshore Petroleum Royalty Act and any regulations made thereunder apply, with such modifications as 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 shall be deemed to be a reference to Her Majesty in right of Canada;

    • (b) a reference in that Act to the Province of Nova Scotia or the Province or Nova Scotia lands shall be deemed to be a reference to the offshore area; and

    • (c) a reference in that Act to the Minister responsible for the administration of that Act shall be deemed to be a reference to the Federal Minister.

  • Marginal note:Remedies for unpaid royalties

    (4) Notwithstanding any other provision of this Act, but subject to subsection (5), for the purposes of this section, where a person is in default in accordance with the Offshore Petroleum Royalty Act and any regulations made thereunder in the payment of any amount payable under this section in respect of any interest issued in relation to any portion of the offshore area, the Provincial Minister may, for so long as the amount remains unpaid, direct the Board to

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

    • (b) refuse to authorize, pursuant to Part III, that person to carry on any work or activity related to the exploration for or the production of petroleum on any portion of the offshore area and may suspend any such authorization already given; and

    • (c) exercise the powers under subsections 126(1) and (2).

  • Marginal note:Idem

    (5) Notwithstanding any other provision of this Act, a decision of the Board made in accordance with a direction of the Provincial Minister pursuant to subsection (4) is not a fundamental decision.

  • Marginal note:No remedy pending appeals

    (6) No remedy may be exercised pursuant to subsection (4) in respect of a default in payment of an amount pending any assessment, reassessment, appeal or review in respect of that default under the Offshore Petroleum Royalty Act and any regulations made thereunder or otherwise provided by law.

  • Marginal note:No Crown share

    (7) No provision of this Act or the Provincial 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.

  • 1988, c. 28, s. 99
  • 2015, c. 4, s. 79(F)

Marginal note:Power to collect

  •  (1) Subject to subsection (6), where an agreement is entered into pursuant to subsection (3), royalties, interest and penalties payable under section 99 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 99.

  • 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 with respect to the collection and administration, on behalf of the Government of Canada, of the royalties, interest and penalties payable under section 99 and, without limiting the generality of the foregoing, with respect to the granting of refunds or the making of 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 section 99, or under both section 99 and the Offshore Petroleum Royalty 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 99

    • (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

  •  (1) All royalties, interest and penalties payable under section 99, 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.

  • 1988, c. 28, s. 101
  • 2015, c. 4, s. 80(F)

Liability and Collection of Royalties

Marginal note:Debts due to Her Majesty

 All royalties, interest and penalties payable under section 99 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.

 
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