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

Subsurface Storage Licences

Marginal note:Licence for subsurface storage

• 89 (1) Subject to sections 32 to 37, the Regulator may, subject to any terms and conditions the Regulator considers appropriate, issue a licence for the purpose of subsurface storage of petroleum or any other substance approved by the Regulator in portions of the offshore area at depths greater than twenty metres.

• Marginal note:Prohibition

  (2) No portion of the offshore area shall be used for a purpose referred to in subsection (1) without a licence referred to therein.

Qualification for Production Licence

Marginal note:Qualification for production licence

90 No production licence or share in a production licence may be held by any person other than a corporation incorporated in Canada.

DIVISION VOffshore Renewable Energy

General Rules Relating to Issuance of Submerged Land Licences

Marginal note:Regulator’s authority to issue licences

• 91 (1) The Regulator may issue submerged land licences in respect of any portion of the offshore area in accordance with this Part and the regulations.

• Marginal note:Ministerial decision

  (2) The issuance of a submerged land licence by the Regulator is subject to sections 38.1 to 38.3.

• Marginal note:Application of licence may be limited

  (3) The application of any submerged land licence may be restricted to particular technologies or types of offshore renewable energy resources specified in the licence.

• Marginal note:Licence not required

  (4) A submerged land licence is not required for the purpose of carrying on a work or activity described in paragraph (a) of the definition offshore renewable energy project in section 2 that does not require attaching a facility or structure to the seabed.

Marginal note:Rights under submerged land licences

92 A submerged land licence confers, with respect to the portions of the offshore area to which it applies and subject to the terms and conditions it specifies, the right to carry on an offshore renewable energy project.

Marginal note:Calls for bids

• 93 (1) Subject to section 97, the Regulator shall not issue a submerged land licence in relation to Crown reserve areas unless

  • (a) prior to issuing the licence, the Regulator has made a call for bids in relation to those Crown reserve areas by publishing a notice in accordance with this section and section 98.1; and

  • (b) the licence is issued to the person who submitted, in response to the call, a bid selected by the Regulator in accordance with subsection 94(1).

• Marginal note:Ministerial decision

  (2) The making of a call for bids for the issuance of a submerged land licence is subject to sections 38.1 to 38.3.

• Marginal note:Contents of call for bids

  (3) The call for bids shall specify

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

  • (b) if applicable, the particular technologies or types of offshore renewable energy resources to which the licence is to apply;

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

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

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

  • (f) the closing date for the submission of bids; and

  • (g) the criteria that the Regulator will apply in assessing bids submitted in response to the call.

Marginal note:Selection of bid

• 94 (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 criteria specified in the call.

• Marginal note:Publication of bid selected

  (2) If the Regulator selects a bid submitted in response to a call for bids, the Regulator shall publish a notice in accordance with section 98.1 setting out the terms and conditions of that bid.

• Marginal note:Recommendation

  (3) The Regulator shall make an offshore renewable energy recommendation for or against the issuance of a submerged land licence under section 91 respecting all bids selected in accordance with subsection (1).

Marginal note:Issuance of licence not required

• 95 (1) The issuance of a submerged land licence is not required as a result of a call for bids.

• Marginal note:Licence to be consistent with bid

  (2) If a submerged land licence is to be issued as a result of a call for bids, the terms and conditions of the licence shall be substantially consistent with any terms and conditions specified in the call.

• Marginal note:Publication of terms and conditions

  (3) The Regulator shall publish a notice in accordance with section 98.1 setting out the terms and conditions of any submerged land licence issued as a result of a call for bids as soon as practicable after the licence’s issuance.

Marginal note:New call for bids required

96 Subject to section 97, if the Regulator has not issued a submerged land licence with respect to a particular portion of the offshore area specified in a call for bids within 12 months after the closing date specified in the call for bids, the Regulator shall, before issuing a submerged land licence in relation to that portion of the offshore area, make a new call for bids.

Marginal note:Exception to call for bids — offshore renewable energy

• 97 (1) Subject to sections 38.1 to 38.3, the Regulator may issue a submerged land licence, in relation to any Crown reserve area, without making a call for bids if

  • (a) the portion of the offshore area to which the licence is to apply has, through error or inadvertence, become a Crown reserve area and the interest owner who last held a submerged land licence in relation to that portion of the offshore area has, within one year after the time it became a Crown reserve area, requested the Regulator to issue a licence;

  • (b) the Regulator is issuing the licence to an interest owner in exchange for the surrender by the interest owner, at the request of the Regulator, of any other submerged land licence or share in any other such licence, in relation to all or any portion of the offshore area subject to that other licence; or

  • (c) the Federal Minister and the Provincial Minister have directed the Regulator to review an application for the issuance of a submerged land licence that will include the terms and conditions specified by the Ministers.

• Marginal note:Conditions

  (2) The terms and conditions referred to in paragraph (1)(c) shall specify that the purpose of the offshore renewable energy project to be carried out under the submerged land licence shall be restricted to any of the following:

  • (a) to conduct research or to demonstrate a technology, approach or method related to the production, transmission or storage of renewable energy;

  • (b) to conduct a site assessment activity;

  • (c) to transmit an energy product produced from a renewable resource;

  • (d) to provide energy for a petroleum-related work or activity; or

  • (e) any other purpose set out in regulations.

• Marginal note:Notice

  (3) If the Regulator proposes to issue a submerged land licence under subsection (1), the Regulator shall, not later than 120 days before issuing the licence, publish a notice in accordance with section 98.1 setting out the terms and conditions of the proposed licence.

Marginal note:Failure to comply with call procedures

98 If a submerged land licence has been issued, it is not vitiated by reason only of a failure to comply with any of the requirements set out in sections 93 to 97 respecting the form and content of, and time and manner of publishing, any notice required by those sections in relation to that licence.

Marginal note:Manner of publication of notices

98.1 Any notice required to be published by the Regulator under subsection 93(1), 94(2), 95(3), 97(3) or 98.4(2) shall be published in the Canada Gazette and in any other publication the Regulator deems appropriate and, despite those subsections, may contain only a summary of the information required to be published and a statement that the full text of the notice is available for inspection by any person on request made to the Regulator.

Marginal note:Regulations

98.2 Subject to section 6, the Governor in Council may, for the purposes of section 93, make regulations of general application in relation to the offshore area or any portion of the offshore area, or in respect of any particular call for bids, prescribing the terms, conditions and criteria to be specified in a call for bids and the manner in which bids are to be submitted and requiring those terms, conditions and criteria and manner to be specified in the call.

Terms and Conditions

Marginal note:Terms and conditions

• 98.3 (1) A submerged land licence shall contain any terms and conditions that may be set out in regulations and may contain any other terms and conditions, not inconsistent with this Part or the regulations, that may be agreed on by the Regulator, subject to sections 38.1 to 38.3, and the interest owner of the licence.

• Marginal note:Regulations

  (2) Subject to section 6, the Governor in Council may make regulations prescribing terms and conditions required to be included in submerged land licences issued in relation to the offshore area or any portion of the offshore area.

Marginal note:Amendment of licence

• 98.4 (1) Subject to sections 38.1 to 38.3, the Regulator and the interest owner of a submerged land licence may, by agreement, amend any provision of the licence in any manner not inconsistent with this Part or the regulations and may, subject to subsection (2), amend the licence to include any other portion of the offshore area.

• Marginal note:Exception

  (2) The Regulator shall not amend a submerged land licence to include any portion of the offshore area that, immediately prior to the inclusion, was a Crown reserve area unless the Regulator would be able to issue an interest to that interest owner in relation to that area under subsection 97(1) and a notice has been published in accordance with section 98.1 not later than 120 days before making the amendment, setting out the terms and conditions of the amendment.

• Marginal note:Consolidation of licences

  (3) Subject to sections 38.1 to 38.3, the Regulator may, on the application of the interest owners of two or more submerged land licences, consolidate those licences into a single submerged land licence, subject to any terms and conditions that may be agreed on by the Regulator and those interest owners.

Marginal note:Effective date of licence

• 98.5 (1) The effective date of a submerged land licence is the date specified in the licence.

• Marginal note:Crown reserve areas on expiry of licence

  (2) On the expiry of the submerged land licence, the portions of the offshore area to which the licence related become Crown reserve areas.

Marginal note:Qualification for submerged land licence

98.6 No submerged land licence or share in a submerged land licence may be held by any person other than a corporation incorporated in Canada.

Principles

Marginal note:Principles

98.7 The following principles apply in this Division:

• (a) all Canadian corporations and individuals resident in Canada shall have a full and fair opportunity to participate on a competitive basis, including in the course of employment, in the supply of goods and services used in any work or activity related to an offshore renewable energy project;

• (b) importance shall be given to the development of measures that aim to increase the participation of under-represented groups, including in the course of employment, in the supply of goods and services used in any such work or activity; and

• (c) during the submerged land licence issuance process, importance shall be given to the consideration of effects on fishing activities.

DIVISION VIRoyalties and Revenues

Reservation of Royalties and Revenues

Marginal note:Royalties reserved

• 99 (1) There is hereby reserved to Her Majesty in right of Canada, and each holder of a share in a production licence is liable for and shall pay to Her Majesty in right of Canada, in accordance with subsection (3), the royalties, interest and penalties that would be payable in respect of petroleum under the Offshore Petroleum Royalty Act if the petroleum were produced from Nova Scotia lands within the meaning of the Provincial Act.

• Marginal note:Exception

  (2) Notwithstanding subsection (1), where petroleum is subject to a royalty under the Offshore Petroleum Royalty Act, that petroleum is not subject to a royalty under subsection (1).

• Marginal note:Application of Nova Scotia legislation

  (3) Subject to this Act and the regulations, the Offshore Petroleum Royalty Act and any regulations made thereunder apply, with such modifications as the circumstances require, for the purposes of this section and, without limiting the generality of the foregoing,

  • (a) a reference in that Act to Her Majesty in right of the Province shall be deemed to be a reference to Her Majesty in right of Canada;

  • (b) a reference in that Act to the Province of Nova Scotia or the Province or Nova Scotia lands shall be deemed to be a reference to the offshore area; and

  • (c) a reference in that Act to the Minister responsible for the administration of that Act shall be deemed to be a reference to the Federal Minister.

• Marginal note:Remedies for unpaid royalties

  (4) Notwithstanding any other provision of this Act, but subject to subsection (5), for the purposes of this section, where a person is in default in accordance with the Offshore Petroleum Royalty Act and any regulations made thereunder in the payment of any amount payable under this section in respect of any interest issued in relation to any portion of the offshore area, the Provincial Minister may, for so long as the amount remains unpaid, direct the Regulator to

  • (a) refuse to issue to that person any interest in relation to any portion of the offshore area;

  • (b) refuse to authorize, pursuant to Part III, that person to carry on any work or activity related to the exploration for or the production of petroleum on any portion of the offshore area and may suspend any such authorization already given; and

  • (c) exercise the powers under subsections 126(1) and (2).

• Marginal note:Idem

  (5) Notwithstanding any other provision of this Act, a decision of the Regulator made in accordance with a direction of the Provincial Minister pursuant to subsection (4) is not a fundamental decision.

• Marginal note:No remedy pending appeals

  (6) No remedy may be exercised pursuant to subsection (4) in respect of a default in payment of an amount pending any assessment, reassessment, appeal or review in respect of that default under the Offshore Petroleum Royalty Act and any regulations made thereunder or otherwise provided by law.

• Marginal note:No Crown share

  (7) No provision of this Act or the Provincial Act or any regulation made under the Provincial Act shall apply so as to reserve to His Majesty a Crown share in any petroleum-related interest issued in respect of any portion of the offshore area.