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

PART IIPetroleum Resources

Interpretation

Marginal note:Definitions

47 In this Part,

call for bids

call for bids means a call for bids made in accordance with section 58; (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 78(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 66; (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 71(1) or (2), those portions of the offshore area described in the declaration. (périmètre de découverte importante)

Marginal note:Aboriginal rights

48 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.

DIVISION IGeneral

Manner of Giving Notices

Marginal note:Giving notice

49 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

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

Designations and Appointments

Marginal note:Delegation

51 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

• 52 (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

• 53 (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 such 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

• 54 (1) Subject to sections 31 to 40, 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 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

• 55 (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

• 56 (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 the portions of the offshore area or any part thereof that are subject to the interest of that interest owner.

• Marginal note:Fundamental decisions

  (2) An order of the Board made in a case referred to in paragraph (1)(a) is subject to sections 31 to 40.

• Marginal note:Order of Federal Minister

  (3) The Federal Minister may, in the case of a disagreement with any 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 the portions of the offshore area or any part thereof that are subject to the interest of that interest owner.

• 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

• 57 (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 31 to 40 unless the issuance of the interest is mandatory under another provision of this Part.

• 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 (2)

  (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).

Issuance of Interests in Relation to Crown Reserve Areas

Marginal note:Calls for bids

• 58 (1) Subject to section 61, the Board shall not issue an interest in relation to Crown reserve areas unless

  • (a) prior thereto, the Board has made a call for bids in relation to those Crown reserve areas by publishing a notice in accordance with this section and section 63; and

  • (b) the interest is issued to the person who submitted, in response to the call, the bid selected by the Board in accordance with subsection 59(1).

• Marginal note:Fundamental decision

  (2) The making of a call for bids by the Board is subject to sections 31 to 40.

• Marginal note:Requests for postings of portions of the offshore area

  (3) Any request received by the Board to make a call for bids in relation to particular portions of the offshore area shall be considered by the Board in selecting the portions of the offshore area to be specified in a call for bids.

• Marginal note:Contents of call

  (4) A call for bids shall specify

  • (a) the interest to be issued and the portions of the offshore area to which the interest is to apply;

  • (b) where applicable, the geological formations and substances to which the interest is to apply;

  • (c) the other terms and conditions subject to which the interest is to be issued;

  • (d) any terms and conditions that a bid must satisfy to be considered by the Board;

  • (e) the form and manner in which a bid is to be submitted;

  • (f) subject to subsection (5), the closing date for the submission of bids; and

  • (g) the sole criterion that the Board will apply in assessing bids submitted in response to the call.

• Marginal note:Time of publishing call

  (5) Unless otherwise prescribed, a call for bids shall be published at least one hundred and twenty days before the closing date for the submission of bids specified in the call.

Marginal note:Selection of bid

• 59 (1) A bid submitted in response to a call for bids shall not be selected unless

  • (a) the bid satisfies the terms and conditions and is submitted in the form and manner specified in the call; and

  • (b) the selection is made on the basis of the criterion specified in the call.

• Marginal note:Publication of bid selected

  (2) Where the Board selects a bid submitted in response to a call for bids, the Board shall publish a notice in accordance with section 63 setting out the terms and conditions of that bid.

• Marginal note:Interest to be consistent with bid.

  (3) Where an interest is to be issued as a result of a call for bids, the terms and conditions of the interest shall be substantially consistent with any terms and conditions in respect of the interest specified in the call.

• Marginal note:Publication of terms and conditions of interest

  (4) The Board shall publish a notice in accordance with section 63 setting out the terms and conditions of any interest issued as a result of a call for bids as soon as practicable after the issuance thereof.

Marginal note:Issuance of interest not required

• 60 (1) The Board is not required to issue an interest as a result of a call for bids.

• Marginal note:New call required

  (2) Subject to section 61, where the Board has not issued an interest with respect to a particular portion of the offshore area specified in a call for bids within six months after the closing date specified in the call for the submission of bids, the Board shall, before issuing an interest in relation to that portion of the offshore area, make a new call for bids.