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

Act current to 2022-09-22 and last amended on 2022-07-30. Previous Versions

PART IIPetroleum Resources (continued)

DIVISION XTransitional, Consequential and Commencement (continued)

Transitional (continued)

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

  •  (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

  •  (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

 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

  •  (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

 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

 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)

  • 1987, c. 3, s. 135
  • 1992, c. 35, s. 52

Purpose

Marginal note:Purpose

 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.

  • 1992, c. 35, s. 53
  • 2015, c. 4, s. 48

Application

Marginal note:Application

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

  • 1987, c. 3, s. 136
  • 1992, c. 35, s. 54(F)

Oil and Gas Administration Advisory Council

Marginal note:Designation

 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.

  • 1992, c. 35, s. 55

Offshore Oil and Gas Training Standards Advisory Board

Marginal note:Approval

 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.

  • 1992, c. 35, s. 55

Prohibition

Marginal note:Prohibition

 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.

  • 1987, c. 3, s. 137
  • 1992, c. 35, s. 56

Delegation

Marginal note:Delegation

 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.

  • 1992, c. 35, s. 57
  • 2015, c. 4, s. 49

Licences and Authorizations

Operating Licences and Authorization for Work

Marginal note:Licences and authorizations

  •  (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.

  • 1987, c. 3, s. 138
  • 1992, c. 35, s. 58
  • 2014, c. 13, s. 22
  • 2015, c. 4, ss. 50, 117

Marginal note:Environmental assessment

  •  (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.

  • 2015, c. 4, s. 51

Marginal note:Participant funding program

 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).

  • 2015, c. 4, s. 51

Marginal note:Right of entry

  •  (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.

  • 1992, c. 35, s. 58
 
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