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Canada Petroleum Resources Act (R.S.C., 1985, c. 36 (2nd Supp.))

Act current to 2019-07-29 and last amended on 2019-07-15. Previous Versions

PART IGeneral (continued)

Designations and Appointments (continued)

Marginal note:Appointment of representative

  •  (1) Where an interest owner consists of two or more holders, those holders shall, in the manner prescribed, appoint one of their number to act as representative of the interest owner for the purposes of this Act, but the holders may, with the consent of the Minister, 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 Act, the Minister may designate one of those holders as the representative of the interest owner for those 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 that 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 he 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 lands

  •  (1) The Governor in Council may, 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 frontier lands as are specified in the order.

  • Marginal note:Presumption

    (2) Where any frontier lands are, pursuant to the Territorial Lands Act, withdrawn from disposition or set apart and appropriated for any purposes and under any conditions, the issuance of interests in relation to such lands is deemed to be prohibited pursuant to subsection (1) for those purposes and under those conditions.

Marginal note:Surrender of interests

  •  (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 frontier lands 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

  •  (1) The Governor in Council may, by order, prohibit any interest owner or any other person from commencing or continuing any work or activity authorized under the Canada Oil and Gas Operations Act on the frontier lands, or any portion of them, if the Governor in Council considers that it is in the national interest to do so or that it is necessary in any of the following circumstances:

    • (a) a disagreement with any government concerning the location of an international boundary;

    • (b) an environmental or social problem of a serious nature;

    • (c) dangerous or extreme weather conditions affecting the health or safety of people or the safety of equipment; or

    • (d) the designation of a marine protected area under subsection 35(3) or 35.1(2) of the Oceans Act.

  • Marginal note:Suspension of requirements in relation to interest

    (2) Where, by reason of an order made under subsection (1), 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

    (3) Notwithstanding any other provision in this Act, the term of an interest that is subject to an order under subsection (1) 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

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

  • R.S., 1985, c. 36 (2nd Supp.), s. 12
  • 2015, c. 4, s. 29(F)
  • 2019, c. 8, s. 19
  • 2019, c. 19, s. 85

Marginal note:Negotiations for compensation

  •  (1) The Minister may enter into negotiations with an interest owner, in respect of all or any portion of the frontier lands subject to the interest, for a determination of any compensation that may be granted to the interest owner for the surrender of the interest to Her Majesty in right of Canada, if

    • (a) the interest is located in a marine protected area that is designated under the Oceans Act or in an area of the sea that, in the opinion of the Minister of Fisheries and Oceans, may be designated as a marine protected area under that Act; and

    • (b) the Minister of Fisheries and Oceans recommends that the interest be cancelled to give effect to the purpose of the designation or proposed designation of the marine protected area under section 35 of the Oceans Act.

  • Marginal note:Notice

    (2) For the purposes of subsection (1), the Minister shall send a notice to the interest owner informing the interest owner of the Minister’s intent to enter into negotiations with the interest owner within the period specified in the notice.

  • Marginal note:Power to cancel

    (3) The Minister may, by order, cancel the interest in respect of all or any portion of the frontier lands, if

    • (a) the interest owner did not enter into negotiations with the Minister within the period specified in the notice sent to the interest owner;

    • (b) in the opinion of the Minister, the compensation to be granted to the interest owner for the surrender of the interest has not been determined during the negotiations within a reasonable time; or

    • (c) in the opinion of the Minister, the negotiations do not result in the surrender of the interest by the interest owner within a reasonable time even though the compensation to be granted to the interest owner has been determined during the negotiations.

  • Marginal note:Amount of compensation

    (4) The Minister shall, in the order, specify the amount of the compensation to be granted to the interest owner in respect of the cancellation of the interest.

  • Marginal note:Interest becomes reserve lands

    (5) If the interest referred to in subsection (1) is surrendered or cancelled in respect of all or any portion of the frontier lands, the lands or portions of lands that are subject to the interest become Crown reserve lands.

  • Marginal note:Return of deposit

    (6) If the interest referred to in subsection (1) is surrendered or cancelled, any deposit balance with respect to the interest held by Her Majesty in right of Canada on behalf of the interest owner shall be returned to the interest owner, less any liability, either direct or by way of indemnity, owed by the interest owner to Her Majesty in right of Canada at the time of the surrender or cancellation.

  • 2019, c. 8, s. 20

Marginal note:Compensation — surrender

  •  (1) If the interest owner surrenders an interest referred to in subsection 12.1(1), Her Majesty in right of Canada may grant any compensation that is determined by negotiations with the Minister.

  • Marginal note:Compensation — cancellation

    (2) If the Minister cancels an interest referred to in subsection 12.1(1), Her Majesty in right of Canada may grant to the interest owner the compensation that is specified in an order made by the Minister under subsection 12.1(3), subject to section 106 in respect of the amount of that compensation.

  • Marginal note:No compensation

    (3) A person shall not 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 or mandatary of Her Majesty in right of Canada for any acquired, vested, future or potential right or entitlement that is affected by a surrender or cancellation of an interest referred to in subsection 12.1(1), other than compensation that may be granted to an interest owner under this section.

  • 2019, c. 8, s. 20

PART IIGeneral Rules Relating to Issuance of Interests

Authority to Issue Interests

Marginal note:Authority to issue interests

  •  (1) The Minister may issue interests in respect of any frontier lands in accordance with this Act and the regulations.

  • Marginal note:Application of interest may be limited

    (2) Subject to subsection (3), 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)

    (3) Subsection (2) 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 frontier lands; or

    • (b) that immediately succeeds an interest referred to in paragraph (a) in relation to those lands where those lands were not Crown reserve lands on the expiration of the interest referred to in paragraph (a).

 
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