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An Act to amend the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act and the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act and to make consequential amendments to other Acts (S.C. 2024, c. 20)

Assented to 2024-10-03

PART 11987, c. 3; 2014, c. 13, s. 3Canada–Newfoundland and Labrador Atlantic Accord Implementation Act (continued)

Amendments to the Act (continued)

 Section 45 of the Act is amended by adding the following after subsection (6):

  • Marginal note:Transboundary pool

    (7) The definitions in section 166 also apply in subsections (8) and (9).

  • Marginal note:Approval subject to agreement

    (8) A Canada-Newfoundland and Labrador benefits plan submitted for approval in respect of a work or activity to be carried out in a transboundary pool that is the subject of a joint exploitation agreement is not to be approved under this section unless the Regulator and the appropriate authority have agreed on its content.

  • Marginal note:Disagreement

    (9) The Regulator or the appropriate authority — or in respect of any transboundary pool extending into the jurisdiction of a foreign government, the Federal Minister, after having consulted the Minister of Foreign Affairs and the Provincial Minister — may, if they disagree about the content of the plan submitted for approval, refer the matter to an expert in accordance with section 183.16. The expert’s decision is deemed to be approval of the plan by the Regulator.

 The heading “Petroleum Resources” before section 47 of the Act is replaced by the following:

Petroleum and Offshore Renewable Energy Resources

 The definitions call for bids, Crown reserve area, interest and significant discovery in section 47 of the Act are replaced by the following:

call for bids

call for bids means a call for bids made in accordance with

  • (a) in the case of petroleum, section 58, and

  • (b) in the case of offshore renewable energy, section 93; (appel d’offres)

Crown reserve area

Crown reserve area means

  • (a) in relation to petroleum, portions of the offshore area in respect of which no petroleum-related interest is in force, and

  • (b) in relation to offshore renewable energy, portions of the offshore area in respect of which no submerged land licence is in force respecting a particular renewable energy resource; (réserves de l’État)

interest

interest means

  • (a) in relation to petroleum, any former exploration agreement, former lease, former permit, former special renewal permit, exploration licence, production licence or significant discovery licence, and

  • (b) in relation to offshore renewable energy, any submerged land licence; (titre)

significant discovery

significant discovery means a discovery indicated by a well on a geological feature that

  • (a) demonstrates, through any formation flow test approved by the Regulator, the existence of hydrocarbons in that feature, and

  • (b) having regard to geological and engineering factors, suggests the existence of an accumulation of hydrocarbons that has potential for sustained production; (découverte importante)

  •  (1) Subsection 54(1) of the Act is replaced by the following:

    Marginal note:Prohibition orders — petroleum

    • 54 (1) Subject to sections 31 to 40, the Regulator may, except in a case referred to in subsection (2), by order, for any purposes and under any conditions set out in the order, prohibit the issuance of petroleum-related interests in respect of any portions of the offshore area specified in the order.

    • Marginal note:Prohibition orders — offshore renewable energy

      (1.1) The Federal Minister and the Provincial Minister may, except in a case referred to in subsection (2), issue a joint direction to the Regulator to, by order, for any purposes and under any conditions set out in the order, prohibit the issuance of submerged land licences in respect of any portions of the offshore area specified in the order.

  • (2) Subsection 54(2) of the French version of the Act is replaced by the following:

    • Marginal note:Décision du ministre fédéral

      (2) Le ministre fédéral peut, en cas de désaccord sur le tracé des frontières avec un gouvernement, interdire, par arrêté, aux conditions qu’il y indique, l’octroi de titres à l’égard de telle partie de la zone extracôtière visée.

  • (3) Section 54 of the Act is amended by adding the following after subsection (2):

    • Marginal note:Directions deemed not to be statutory instruments

      (3) Directions issued under subsection (1.1) shall be deemed not to be statutory instruments for the purposes of the Statutory Instruments Act.

  •  (1) Subsections 56(1) and (2) of the Act are replaced by the following:

    Marginal note:Prohibition orders

    • 56 (1) Subject to subsections (2) and (2.1), the Regulator may, by order, prohibit any interest owner specified in the order from commencing or continuing any work or activity on the portions of the offshore area or any part of those portions that are subject to the interest of that interest owner, 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.

    • Marginal note:Fundamental decisions

      (2) The making of an order by the Regulator in a case referred to in paragraph (1)(a) with respect to a petroleum-related interest is subject to sections 31 to 40.

    • Marginal note:Ministerial decision

      (2.1) The making of an order by the Regulator in a case referred to in paragraph (1)(a) with respect to a submerged land licence is subject to sections 40.1 to 40.3.

  • (2) Subsection 56(4) of the French version of the Act is replaced by the following:

    • Marginal note:Suspension des obligations

      (4) Est suspendue, tant que l’arrêté est valide, toute obligation liée à un titre et rendue de ce fait inexécutable.

 The Act is amended by adding the following after section 56:

Marginal note:Prohibitions — regulations

56.1 Subject to section 7, the Governor in Council may, for the purpose of the protection of the environment, make regulations prohibiting, in respect of any portion of the offshore area that is specified in those regulations and that is located in an area that is or, in the opinion of the Governor in Council, may be identified under an Act of Parliament or of the Legislature of the Province as an area for environmental or wildlife conservation or protection,

  • (a) the commencement or continuation of

    • (i) any work or activity relating to the exploration or drilling for or the production, conservation, processing or transportation of petroleum, or

    • (ii) an offshore renewable energy project; or

  • (b) the issuance of interests.

Marginal note:Negotiations for compensation

  • 56.2 (1) The Federal Minister may enter into negotiations with an interest owner for a determination of any compensation that may be granted to the interest owner for the surrender of the interest in respect of all or any portion of the offshore area subject to the interest, if all or any portion of the offshore area in respect of which the surrender is negotiated is

    • (a) located in an area that is identified under an Act of Parliament as an area for environmental or wildlife conservation or protection; or

    • (b) subject to regulations made under section 56.1.

  • Marginal note:Notice to Provincial Minister

    (2) The Federal Minister shall, not later than 60 days before entering into the negotiations, give written notice to the Provincial Minister of the Federal Minister’s intention to enter into negotiations with the interest owner within the period specified in the notice referred to in subsection (3).

  • Marginal note:Notice to interest owner

    (3) The Federal Minister shall, not later than 30 days before entering into the negotiations, give written notice to the interest owner, and forward a copy of the notice to the Regulator, indicating the Federal Minister’s intention to enter into negotiations with the interest owner within the period specified in the notice.

  • Marginal note:Power to cancel

    (4) The Federal Minister and the Provincial Minister may, by order, jointly cancel the interest in respect of all or any portion of the offshore area that is subject to the interest and that is located in an area that is or, in the opinion of the Governor in Council, may be identified under an Act of Parliament as an area for environmental or wildlife conservation or protection, if

    • (a) the interest owner did not enter into negotiations with the Federal Minister within the period specified in the notice given to the interest owner;

    • (b) in the opinion of the Federal Minister, the compensation to be granted to the interest owner for the surrender of the interest has not been determined during the negotiations within a reasonable time; or

    • (c) in the opinion of the Federal Minister, the negotiations have not resulted in the surrender of the interest by the interest owner within a reasonable time even though the compensation to be granted to the interest owner has been determined during the negotiations.

  • Marginal note:Amount of compensation

    (5) The Federal Minister shall, in the order, specify the amount of the compensation to be granted to the interest owner under subsection 56.3(2) in respect of the cancellation of the interest.

  • Marginal note:Crown reserve areas

    (6) The portion of the offshore area subject to the interest referred to in subsection (1) that has been surrendered or the interest referred to in subsection (4) that has been cancelled becomes a Crown reserve area.

  • Marginal note:Return of deposit

    (7) If an interest referred to in subsection (1) is surrendered or if an interest referred to in subsection (4) is cancelled, the deposit balance with respect to the interest held by the person holding that deposit balance on behalf of the interest owner, calculated in accordance with the regulations, shall be returned to the interest owner, less any liability, either direct or by way of indemnity, owed by the interest owner to that person at the time of the surrender or cancellation.

Marginal note:Compensation — surrender

  • 56.3 (1) If an interest owner surrenders an interest referred to in subsection 56.2(1), His Majesty in right of Canada may grant any compensation that is determined by negotiations with the Federal Minister for the surrender of the interest.

  • Marginal note:Compensation — cancellation

    (2) If an interest is cancelled by an order made under subsection 56.2(4), His Majesty in right of Canada may grant an interest owner the compensation that is specified in the order. If the order cancels a petroleum-related interest, it is subject to section 124 in respect of the amount of that compensation, and, for the purposes of this subsection, any reference to the Regulator in that section is to be read as a reference to the Federal Minister.

  • Marginal note:No compensation

    (3) A person shall not have any right to claim or receive any compensation, damages, indemnity or other form of relief from His Majesty in right of Canada or from any servant or agent of His Majesty in right of Canada for any acquired, vested, future or potential right or entitlement that is affected by a surrender of an interest referred to in subsection 56.2(1) or a cancellation of an interest referred to in subsection 56.2(4), other than compensation that may be granted to an interest owner under this section.

Marginal note:Negotiations for compensation

  • 56.4 (1) The Provincial Minister may enter into negotiations with an owner of a petroleum-related interest for a determination of any compensation that may be granted to the interest owner for the surrender of the interest in respect of all or any portion of the offshore area subject to the interest, if all or any portion of the offshore area in respect of which the surrender is negotiated is

    • (a) located in an area that is identified under an Act of the Legislature of the Province as an area for environmental or wildlife conservation or protection; or

    • (b) subject to regulations made under section 56.1.

  • Marginal note:Notice to Federal Minister

    (2) The Provincial Minister shall, not later than 60 days before entering into the negotiations, give written notice to the Federal Minister of the Provincial Minister’s intention to enter into negotiations with the interest owner within the period specified in the notice referred to in subsection (3).

  • Marginal note:Notice to interest owner

    (3) The Provincial Minister shall, not later than 30 days before entering into the negotiations, give written notice to the interest owner, and forward a copy of the notice to the Regulator, indicating the Provincial Minister’s intent to enter into negotiations with the interest owner within the period specified in the notice.

  • Marginal note:Power to cancel

    (4) The Provincial Minister and the Federal Minister may, by order, jointly cancel the interest in respect of all or any portion of the offshore area that is subject to the interest and that is located in an area that is or, in the opinion of the lieutenant governor in council of the Province, may be identified under an Act of the Legislature of the Province as an area for environmental or wildlife conservation or protection, if

    • (a) the interest owner did not enter into negotiations with the Provincial Minister within the period specified in the notice given to the interest owner;

    • (b) in the opinion of the Provincial Minister, the compensation to be granted to the interest owner for the surrender of the interest has not been determined during the negotiations within a reasonable time; or

    • (c) in the opinion of the Provincial Minister, the negotiations have not resulted in the surrender of the interest by the interest owner within a reasonable time even though the compensation to be granted to the interest owner has been determined during the negotiations.

  • Marginal note:Amount of compensation

    (5) The Provincial Minister shall specify in the order the amount of the compensation to be granted to the interest owner under subsection 56.5(2) in respect of the cancellation of the interest.

  • Marginal note:Crown reserve areas

    (6) The portion of the offshore area subject to the interest referred to in subsection (1) that has been surrendered or the interest referred to in subsection (4) that has been cancelled becomes a Crown reserve area.

  • Marginal note:Return of deposit

    (7) If an interest referred to in subsection (1) is surrendered or if an interest referred to in subsection (4) is cancelled, the deposit balance with respect to the interest held by the person holding that deposit balance on behalf of the interest owner, calculated in accordance with the regulations, shall be returned to the interest owner, less any liability, either direct or by way of indemnity, owed by the interest owner to that person at the time of the surrender or cancellation.

Marginal note:Compensation — surrender

  • 56.5 (1) If an interest owner surrenders an interest referred to in subsection 56.4(1), His Majesty in right of the Province may grant any compensation that is determined by negotiations with the Provincial Minister for the surrender of the interest.

  • Marginal note:Compensation — cancellation

    (2) If an interest is cancelled by an order made under subsection 56.4(4), His Majesty in right of the Province may grant an interest owner the compensation that is specified in the order. The order is subject to section 124 in respect of the amount of that compensation, and, for the purposes of this subsection, any reference to the Regulator in that section is to be read as a reference to the Provincial Minister.

  • Marginal note:No compensation

    (3) A person shall not have any right to claim or receive any compensation, damages, indemnity or other form of relief from His Majesty in right of the Province or from any servant or agent of His Majesty in right of the Province for any acquired, vested, future or potential right or entitlement that is affected by a surrender of an interest referred to in subsection 56.4(1) or a cancellation of an interest referred to in subsection 56.4(4), other than compensation that may be granted to an interest owner under this section.

 The heading “General Rules Relating to Issuance of Interests” before section 57 of the Act is replaced by the following:

General Rules Relating to Issuance of Petroleum-Related Interests

 

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