Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act

Marginal note:Adjustment payment

• 247 (1) Subject to this section, the Federal Minister may, on behalf of Her Majesty in right of Canada, pay an amount to Her Majesty in right of the Province equal to seventy-five per cent of the profit realized on or after April 1, 2010, and determined in the manner prescribed, in respect of a project.

• Marginal note:Restriction

  (2) No payment shall be made pursuant to subsection (1) in respect of a project unless the Provincial Minister demonstrates to the satisfaction of the Federal Minister that the rate of return in respect of that project that would have been obtained on behalf of Her Majesty in right of the Province, calculated in the manner prescribed, is equal to or greater than an annual rate of return on invested capital that is equal to the lesser of 20% and the aggregate of 7% and the average annual cost to the Province of borrowing money.

• Marginal note:Exception

  (2.1) Subsection (2) does not apply in respect of the Sable Offshore Energy Project and the Deep Panuke Offshore Gas Development Project.

• Marginal note:Reduction for fiscal incentives

  (3) The aggregate amount of payments made pursuant to subsection (1) in respect of any project shall be reduced by the aggregate amount, determined in the manner prescribed, of all fiscal incentives and any other benefits that are

  • (a) established by or pursuant to an Act of Parliament;

  • (b) prescribed for the purposes of this Part or approved in the manner prescribed; and

  • (c) received in respect of the project.

• Marginal note:Exception

  (3.1) Subsection (3) does not apply in respect of fiscal incentives and other benefits generally prevailing in Canada.

• Marginal note:Time of payments

  (4) Subject to the regulations, a payment made pursuant to subsection (1) shall be made annually, not later than six months after the end of each fiscal year.

• Marginal note:Exception

  (5) If the per capita fiscal capacity of the Province in respect of any fiscal year is equal to or greater than the national average per capita fiscal capacity in respect of that fiscal year, no payment shall be made under subsection (1) in respect of that fiscal year. The per capita fiscal capacity of the Province and the national average per capita fiscal capacity shall be determined in accordance with section 247.1.

• (6) [Repealed, 2009, c. 31, s. 48]