Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act (S.C. 1988, c. 28)

Coordination of Government Departments and Agencies

Marginal note:Coordination

• 46 (1) The Board shall, to ensure effective coordination and avoid duplication of work and activities, conclude with the appropriate departments and agencies of the Government of Canada and of the Government of the Province memoranda of understanding in relation to

  • (a) environmental regulation;

  • (b) emergency measures;

  • (c) coast guard and other marine regulation;

  • (c.1) aviation regulation;

  • (d) employment and industrial benefits for Canadians in general and the people of the Province in particular and the review and evaluation procedures to be followed by both governments and the Board in relation to such benefits;

  • (e) occupational health and safety;

  • (f) a Nova Scotia trunkline within the meaning of section 40; and

  • (g) such other matters as are appropriate.

• Marginal note:Idem

  (2) The Federal Minister and the Provincial Minister shall be parties to any memorandum of understanding concluded in relation to a matter referred to in paragraph (1)(d).

Constitution of Panel

Marginal note:Notice

• 47 (1) Before a panel is constituted for the purposes of subsection 13(2), 25(3), 37(1) or 140(5), the government or Minister proposing constitution of the panel shall notify the other government or Minister of the proposal.

• Marginal note:Appointment of members of panel

  (2) Within thirty days after notice is given pursuant to subsection (1), each government shall appoint one member of the panel.

• Marginal note:Chairperson of panel

  (3) The chairperson of the panel shall be appointed

  • (a) jointly by the two members of the panel appointed pursuant to subsection (2) within thirty days after the later of the two appointments made pursuant to that subsection; or

  • (b) where the two members of the panel fail to agree on the appointment of the chairperson of the panel within the thirty day period referred to in paragraph (a), by the Chief Justice of Nova Scotia within thirty days after the expiration of that period.

Settlement Procedure for Disputes

Definition of agreement

• 48 (1) In this section, agreement means an agreement between the Government of Canada and the government of a province respecting resource management and revenue sharing in relation to activities respecting the exploration for or the production of petroleum carried out on any frontier lands.

• Marginal note:Disputes between neighbouring provinces

  (2) Where a dispute between the Province and any other province that is a party to an agreement arises in relation to the description of any portion of the limits set out in Schedule I and the Government of Canada is unable, by means of negotiation, to bring about a resolution of the dispute within a reasonable time, the dispute shall, at such time as the Federal Minister deems appropriate, be referred to an impartial person, tribunal or body and settled by means of the procedure determined in accordance with subsection (3).

• Marginal note:Procedures determined by Federal Minister

  (3) For the purposes of this section, the person, tribunal or body to which a dispute is to be referred, the constitution and membership of any tribunal or body and the procedures for the settlement of a dispute shall be determined by the Federal Minister after consultation with the provinces concerned in the dispute.

• Marginal note:Principles of international law to apply

  (4) Where the procedure for the settlement of a dispute pursuant to this section involves arbitration, the arbitrator shall apply the principles of international law governing maritime boundary delimitation, with such modifications as the circumstances require.

• Marginal note:Approval of Provincial Minister not required before regulation made

  (5) Notwithstanding section 6, where a dispute is settled pursuant to this section and a regulation under subsection 5(1) amending the description of the portion of the limits set out in Schedule I in relation to which the dispute arose is made in accordance with the settlement, the regulation is not subject to the procedure set out in section 6 with respect to that description.

PART IIPetroleum Resources

Interpretation

Marginal note:Definitions

49 In this Part,

call for bids

call for bids means a call for bids made in accordance with section 61; (appel d’offres)

commercial discovery

commercial discovery means a discovery of petroleum that has been demonstrated to contain petroleum reserves that justify the investment of capital and effort to bring the discovery to production; (découverte exploitable)

commercial discovery area

commercial discovery area means, in relation to a declaration of commercial discovery made pursuant to subsection 81(1) or (2), those portions of the offshore area described in the declaration; (périmètre de découverte exploitable)

Crown reserve area

Crown reserve area means portions of the offshore area in respect of which no interest is in force; (réserves de l’État)

former exploration agreement

former exploration agreement means an exploration agreement under the Canada Oil and Gas Land Regulations; (ancien accord d’exploration)

former lease

former lease means an oil and gas lease under the Canada Oil and Gas Land Regulations; (ancienne concession)

former permit

former permit means an exploratory permit under the Canada Oil and Gas Land Regulations; (ancien permis)

former special renewal permit

former special renewal permit means a special renewal permit under the Canada Oil and Gas Land Regulations; (ancien permis spécial de renouvellement)

holder

holder or interest holder means, in respect of an interest or a share therein, the person indicated, in the register maintained pursuant to Division VIII, as the holder of the interest or the share; (Version anglaise seulement)

interest

interest means any former exploration agreement, former lease, former permit, former special renewal permit, exploration licence, production licence or significant discovery licence; (titre)

interest owner

interest owner means the interest holder who holds an interest or the group of interest holders who hold all of the shares in an interest; (Version anglaise seulement)

prescribed

prescribed means

• (a) in the case of a form or the information to be given on a form, prescribed by the Board, and

• (b) in any other case, prescribed by regulations made by the Governor in Council; (Version anglaise seulement)

share

share means, with respect to an interest, an undivided share in the interest or a share in the interest held in accordance with section 69; (fraction)

significant discovery

significant discovery means a discovery indicated by the first well on a geological feature that demonstrates by flow testing the existence of hydrocarbons in that feature and, having regard to geological and engineering factors, suggests the existence of an accumulation of hydrocarbons that has potential for sustained production; (découverte importante)

significant discovery area

significant discovery area means, in relation to a declaration of significant discovery made pursuant to subsection 74(1) or (2), those portions of the offshore area described in the declaration. (périmètre de découverte importante)

Marginal note:Aboriginal rights

50 Nothing in this Part shall be construed so as to abrogate or derogate from any existing aboriginal or treaty rights of the aboriginal peoples of Canada under section 35 of the Constitution Act, 1982.

Application

Marginal note:Application

51 This Part applies to the frontier lands within the offshore area.

DIVISION IGeneral

Manner of Giving Notices

Marginal note:Giving notice

52 Where a notice is required to be given under this Part or the regulations, it shall be given in such form and manner as may be prescribed and shall contain such information as may be prescribed.

Her Majesty

Marginal note:Binding on Her Majesty

53 This Part is binding on Her Majesty in right of Canada or a province.

Designations and Appointments

Marginal note:Delegation

54 The Board may designate any person to exercise the powers and perform the duties and functions under this Part that are specified in the designation and on such designation that person may exercise those powers and shall perform those duties and functions subject to such terms and conditions, if any, as are specified in the designation.

Marginal note:Advisory bodies

• 55 (1) The Board may from time to time appoint and fix the terms of reference of such advisory bodies as the Board considers appropriate to advise the Board with respect to such matters relating to the administration or operation of this Part or Part III as are referred to them by the Board.

• Marginal note:Remuneration

  (2) The members of any advisory body appointed under subsection (1) may be paid for their services such remuneration and expenses as are fixed by the Board.

Marginal note:Appointment of representative

• 56 (1) Where an interest owner consists of two or more holders, such holders shall, in the manner prescribed, appoint one of their number to act as representative of the interest owner for the purposes of this Part, but such holders may, with the consent of the Board, 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 Part, the Board may designate one of such holders as the representative of the interest owner for such 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 the 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 that representative 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 areas

• 57 (1) Subject to sections 32 to 37, the Board may, except in a case referred to in subsection (2), 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 portions of the offshore area as are specified in the order.

• Marginal note:Exclusive decision of Federal Minister

  (2) The Federal Minister may, by order, in the case of a disagreement with any foreign government concerning the location of an international boundary and under such conditions as may be set out in the order, prohibit the issuance of interests in respect of such portions of the offshore area as are specified in the order.

Marginal note:Surrender of interests

• 58 (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 offshore area 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

• 59 (1) Subject to subsection (2), the Board may, in the case of

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

  • (b) dangerous or extreme weather conditions affecting the health or safety of people or the safety of equipment,

  by order, prohibit any interest owner specified in the order from commencing or continuing any work or activity on all or any portion of the offshore area subject to the interest.

• Marginal note:Fundamental decisions

  (2) An order of the Board made in a case referred to in paragraph (1)(a) is subject to sections 32 to 37.

• Marginal note:Order of Federal Minister

  (3) The Federal Minister may, in the case of a disagreement with any foreign government concerning the location of an international boundary, by order, prohibit any interest owner specified in the order from commencing or continuing any work or activity on all or any portion of the offshore area subject to the interest.

• Marginal note:Suspension of requirements in relation to interest

  (4) Where, by reason of an order made under subsection (1) or (3), 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

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

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

DIVISION IIGeneral Rules Relating to Issuance of Interests

Authority to Issue Interests

Marginal note:Authority to issue interests

• 60 (1) The Board may issue interests in respect of any portion of the offshore area in accordance with this Part and the regulations.

• Marginal note:Fundamental decision

  (2) The issuance of an interest by the Board is subject to sections 32 to 37 unless the interest is issued pursuant to subsection 76(1) or paragraph 84(1)(a).

• Marginal note:Application of interest may be limited

  (3) Subject to subsection (4), 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 (3)

  (4) Subsection (3) 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 portion of the offshore area; or

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