Canada–Nova Scotia Offshore Petroleum Resources Accord Implementation and Offshore Renewable Energy Management Act (S.C. 1988, c. 28)

Arbitration

123 [Repealed, 1992, c. 35, s. 88]

Marginal note:Operating agreements

• 124 (1) Where a dispute of a prescribed class arises between two or more interest holders of an interest in respect of any operations conducted in carrying out a work or activity in the offshore area authorized under Part III and an operating agreement or other similar arrangement that extends to such work or activity is not in force or was made prior to March 5, 1982, the matters in dispute may, by order of the Regulator, be submitted to arbitration conducted in accordance with the regulations.

• Marginal note:Application

  (2) Subsection (1) applies only in respect of

  • (a) interests in force on March 5, 1982 in relation to any portion of the offshore area; and

  • (b) interests immediately succeeding the interests referred to in paragraph (a) in relation to that portion of the offshore area where that portion of the offshore area was not a Crown reserve area on the expiration of the interests referred to in paragraph (a).

• Marginal note:Arbitration order

  (3) An order of an arbitrator made pursuant to arbitration under subsection (1) is binding on all interest holders specified in the order from the date specified in the order, and the terms and conditions of the order are deemed to be terms and conditions of the interest to which the matters relate.

Marginal note:Regulations

• 125 (1) Subject to section 6, the Governor in Council may make regulations for carrying out the purposes and provisions of section 124 and, without restricting the generality of the foregoing, may make regulations

  • (a) governing arbitration and the making of arbitration orders;

  • (b) prescribing the classes of disputes that may be submitted to arbitration; and

  • (c) governing appeals from and enforcement of arbitration orders.

• Marginal note:Application of regulations

  (2) Regulations made under subsection (1) may apply generally to the offshore area or to any portion thereof.

Cancellation of Rights

Marginal note:Notice to comply

• 126 (1) If the Regulator has reason to believe that an interest owner or holder is failing or has failed to meet any requirement of this Part or Part III or III.1 or any regulation made under any of those Parts, the Regulator may give notice to that interest owner or holder requiring compliance with the requirement within 90 days after the day on which the notice is given or within any longer period that the Regulator considers appropriate.

• Marginal note:Default — petroleum

  (2) Despite anything in this Part but subject to sections 32 to 37 and subsection 126(3), if the interest owner or holder of a petroleum-related interest fails to comply with a notice under subsection (1) within the period specified in the notice and the Regulator considers that the failure to comply warrants cancellation of the interest of the interest owner or holder or of any share in the interest held by the holder with respect to a portion only of the offshore area subject to the interest, the Regulator may, by order subject to section 127, cancel that interest or share, in which case the portions of the offshore area under that interest or share become Crown reserve areas.

• Marginal note:Non-application of section 127

  (3) The Regulator’s order to cancel an exploration licence, significant discovery licence or production licence under subsection (2) is not subject to section 127 if the notice under subsection (1) relates to a failure to meet any of the terms and conditions contained in that licence.

• Marginal note:Default — offshore renewable energy

  (4) Despite anything in this Part but subject to sections 38.1 to 38.3, if the interest owner or holder of a submerged land licence fails to comply with a notice under subsection (1) within the period specified in the notice and the Regulator considers that the failure to comply warrants cancellation of the licence of the interest owner or holder or any share in the licence held by the holder, the Regulator may, by order, cancel that licence or share, in which case the portions of the offshore area under that licence or share become Crown reserve areas.

Hearings and Judicial Review

Definition of Committee

• 127 (1) In this section, Committee means the Oil and Gas Committee established pursuant to section 145.

• Marginal note:Notice

  (2) The Regulator shall, not less than thirty days before making any order or decision or taking any action in respect of which it is expressly stated in this Part to be subject to this section, give notice in writing to the persons the Regulator considers to be directly affected by the proposed order, decision or action.

• Marginal note:Request for hearing

  (3) Any person receiving a notice under subsection (2) may, in writing, request a hearing within the thirty day period referred to in that subsection and, on receipt of such a request, the Regulator shall direct the Committee to appoint a time and place for a hearing and to give notice thereof to the person who requested the hearing.

• Marginal note:Hearing

  (4) Any person requesting a hearing under subsection (3) may make representations and introduce witnesses and documents at the hearing.

• Marginal note:Powers of Committee

  (5) For the purposes of a hearing requested under subsection (3), the Committee has, regarding the attendance, swearing and examination of witnesses and the production and inspection of documents, all such powers, rights and privileges as are vested in a superior court of record.

• Marginal note:Recommendations of Committee

  (6) On the conclusion of the hearing, the Committee shall submit to the Regulator its recommendations concerning the proposed order, decision or action of the Regulator, together with the evidence and other material that was before the Committee.

• Marginal note:Order of Regulator

  (7) Before making any order or decision or taking any action in respect of which a hearing has been held, the Regulator shall consider the recommendations of the Committee.

• Marginal note:Notification of order and reasons

  (8) If an order, decision or action referred to in subsection (2) is made or taken, the Regulator shall notify the person who requested a hearing in respect of the order, decision or action under subsection (3) and, on request by that person, publish or make available to that person the reasons for the order, decision or action.

• Marginal note:Effective date of order

  (9) Subject to subsection (10), an order, decision or action referred to in subsection (2) takes effect as of

  • (a) the day that immediately follows the last day of the thirty day period referred to in that subsection, where no hearing is requested under subsection (3); or

  • (b) the day that the order or decision is made or the action is taken by the Regulator, where a hearing is requested under subsection (3).

• Marginal note:Fundamental decisions

  (10) Where a decision referred to in subsection (2) is a fundamental decision or an order or action referred to in that subsection involves the making of a fundamental decision, the periods referred to in paragraph 33(1)(a) do not commence prior to the day referred to in paragraph (9)(a) or (b), as the case may be, and the order, decision or action takes effect subject to section 33.

• Marginal note:Judicial review

  (11) Any order, decision or action in respect of which a hearing is held under this section is subject to review and to be set aside by the Supreme Court of Nova Scotia in accordance with the practice and procedure established by or pursuant to the Provincial Act.

Regulations

Marginal note:Regulations

• 128 (1) Subject to section 6, the Governor in Council may make regulations for carrying out the purposes and provisions of this Part and, without restricting the generality of the foregoing, may make regulations

  • (a) not inconsistent with the Canada Lands Surveys Act authorizing or requiring the survey, division and subdivision of the offshore area and defining and describing those divisions and subdivisions;

  • (b) prescribing the information and documentation to be provided by interest owners and interest holders for the purposes of this Part, the time when and manner in which such information and documentation is to be provided, authorizing the Regulator to prescribe the form in which it is to be provided and requiring such information and documentation to be provided in accordance with the regulations;

  • (c) requiring fees and deposits to be paid in respect of interests, prescribing the amounts of such fees and deposits and the time and manner of their payment and providing for the administration of such fees and deposits and the disposition and return of deposits; and

  • (d) prescribing any other matter or thing that by this Part is to be prescribed or that is to be done by regulations.

• (2) [Repealed, 2024, c. 20, s. 159]

• (3) [Repealed, 2024, c. 20, s. 159]

Marginal note:Forms

• 129 (1) The Regulator may prescribe any form or any information to be given on a form that is by this Part or the regulations to be prescribed and may include on any form so prescribed a declaration, to be signed by the person completing the form, declaring that the information given by that person on the form is, to the best of the knowledge of that person, true, accurate and complete.

• Marginal note:Forms prescribed or authorized

  (2) Every form purporting to be a form prescribed or authorized by the Regulator shall be deemed to be a form prescribed by the Regulator under this Part unless called in question by the Regulator or some person acting for the Regulator or Her Majesty in right of Canada or the Province.

• Marginal note:Forms not regulations

  (3) Where a form or information to be given on a form is prescribed by the Regulator pursuant to this Part, it shall be deemed not to be a regulation within the meaning of the Statutory Instruments Act.

DIVISION XTransitional

Marginal note:Exploration agreements extant are continued

• 130 (1) Where an exploration agreement in relation to any portion of the offshore area was entered into or negotiations in respect thereof were completed under the Canada Oil and Gas Act before the coming into force of this section, that exploration agreement shall, for the purposes of this Act, be referred to as an exploration licence and shall, subject to this Part, have effect in accordance with its terms and conditions.

• Marginal note:Declarations of significant discovery are continued

  (2) Where a declaration of significant discovery was made under section 44 of the Canada Oil and Gas Act and is in force on the coming into force of this section, it continues in force as if it were made pursuant to section 74 of this Act.

• Marginal note:Deemed significant discovery licence

  (3) Where, on the coming into force of this section, an exploration agreement is continuing in force pursuant to subsection 16(4) of the Canada Oil and Gas Act, it shall be deemed to be a significant discovery licence issued under this Part on the coming into force of this section and is subject to this Part.

Marginal note:Replacement of rights

• 131 (1) Subject to section 130 and subsection 132(2), the petroleum-related interests provided for under this Part replace all petroleum rights or prospects of petroleum rights acquired or vested in relation to any portion of the offshore area prior to the coming into force of this section.

• Marginal note:No compensation

  (2) No party shall 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 thereof for any acquired, vested or future right or entitlement or any prospect thereof that is replaced or otherwise affected by this Part, or for any duty or liability imposed on that party by this Part.

Marginal note:Regulations continue in force

• 132 (1) The Canada Oil and Gas Land Regulations remain in force to the extent that they are consistent with this Part until they are revoked or replaced by regulations made under this Part.

• Marginal note:Former interests

  (2) All interests provided by the Canada Oil and Gas Land Regulations that are in force on the coming into force of this section continue in force subject to sections 133 to 136.

• Marginal note:Petro-Canada rights abrogated

  (3) All rights of Petro-Canada to acquire further interests or shares in interests as a result of the operation of section 33, 120 or 121 of the Canada Oil and Gas Land Regulations are abrogated as of March 5, 1982.

• Marginal note:Idem

  (4) Where any portion of the offshore area becomes a Crown reserve area on or after April 30, 1980, Petro-Canada shall not be entitled to exercise any rights under section 33 of the Canada Oil and Gas Land Regulations with respect to that Crown reserve area.

• Marginal note:Dealings not vitiated for failure to comply with regulations

  (5) Where a person acquires, disposes of or otherwise deals in an interest or a share in an interest in respect of which Petro-Canada would, but for the circumstances described in paragraph (a) or (b), have had any right under section 33, 120 or 121 of the Canada Oil and Gas Land Regulations, no such acquisition, disposition or dealing is vitiated by reason only of

  • (a) the failure to give Petro-Canada a notice required under any of those sections; or

  • (b) the erroneous determination of a Canadian participation rate under those regulations.

• Marginal note:Retrospective application

  (6) Subsection (5) has retrospective application to any acquisition, disposition or dealing that occurred prior to March 5, 1982.

• Definition of Petro-Canada

  (7) In this section, Petro-Canada means the corporation established by the Petro-Canada Act.

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

• 133 (1) Subject to sections 135 and 136, 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 Regulator, subject to sections 32 to 37.

• 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 exits

  (4) Where a former special renewal permit or former exploration agreement contains provisions for the drilling of one or more wells, the Regulator 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.