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

Marginal note:Non-application of Service Fees Act

29.2 The Service 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: shared

• 29.3 (1) Subject to subsection (2), 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.

• Marginal note:Remittance of fees and charges to the Province

  (2) If the fees and charges referred to in subsection (1) are related to the powers, duties or functions of the Regulator for the administration of the pricing mechanisms for greenhouse gas emissions referred to in subsection 164.3(1), they shall be paid in their entirety to the credit of Her Majesty in right of the Province.

Decisions in Relation to Offshore Management

Marginal note:Regulator’s decisions final

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

Petroleum-related Decisions

Marginal note:Notice of fundamental decisions

• 31 (1) Where a fundamental decision is made by the Regulator, the Regulator 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 Regulator

  (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 Regulator and each other whether that Minister approves or disapproves that decision and where the Regulator does not receive the advice within those thirty days, the Regulator 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 Regulator 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 Regulator.

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 Regulator 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 Regulator 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 Regulator 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 Regulator 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.

Decisions Related to Offshore Renewable Energy

Marginal note:Regulator’s recommendation

• 40.1 (1) The Regulator shall notify the Federal Minister and the Provincial Minister in writing of its offshore renewable energy recommendation as soon as practicable after deciding to make the recommendation.

• Marginal note:Ministers’ decisions

  (2) The Federal Minister and the Provincial Minister shall, within 60 days after receiving the recommendation, notify the Regulator in writing of their respective decision to approve the recommendation, with or without variations, or to reject it.

• Marginal note:Additional 30 days

  (3) Despite subsection (2), on written notice by either Minister to the Regulator and the other Minister, both Ministers shall have an additional 30 days to notify the Regulator of their respective decision under that subsection.

• Marginal note:No time limit

  (4) Despite subsection (2), the Federal Minister or the Provincial Minister may notify the Regulator of their respective decision with respect to an offshore renewable energy recommendation to make a call for bids beyond the period of 60 days referred to in that subsection.

Marginal note:Publication

40.2 The Regulator shall publish in the Canada Gazette any notice of decision referred to in subsection 40.1(2), unless the decision is to reject an offshore renewable energy recommendation to make a call for bids.

Marginal note:Implementation of Ministers’ approval

40.3 The Regulator shall only exercise a power or perform a duty subject to this section and sections 40.1 and 40.2 if it has been the subject of an offshore renewable energy recommendation that was approved by both Ministers and with the same variations, if any. In that case, the Regulator shall exercise the power or perform the duty as soon as practicable after it receives the notices referred to in subsection 40.1(2).

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).