C-49 1 44 70-71 Elizabeth II – 1-2-3 Charles III 2021-2022-2023-2024

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

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

An Act to amend the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act and the ... 2024 10 3 20 2024 91113

RECOMMENDATION

Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “

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 ”.

SUMMARY

This enactment amends the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act and the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act to, among other things,

(

a) change their titles to the Canada–Newfoundland and Labrador Atlantic Accord Implementation and Offshore Renewable Energy Management Act and the Canada–Nova Scotia Offshore Petroleum Resources Accord Implementation and Offshore Renewable Energy Management Act , respectively;

(

b) change the names of the Canada–Newfoundland and Labrador Offshore Petroleum Board and the Canada-Nova Scotia Offshore Petroleum Board to the Canada–Newfoundland and Labrador Offshore Energy Regulator and the Canada–Nova Scotia Offshore Energy Regulator, respectively (“the Regulators”);

(

c) establish the Regulators as the regulating bodies for offshore renewable energy projects;

(

d) establish a land tenure regime for the issuance of submerged land licences to carry out offshore renewable energy projects, as well as the revenues regime associated with those licences and projects;

(

e) establish a ministerial decision-making process respecting the issuance of submerged land licences and the Regulators’ exercise of certain powers or performance of certain duties;

(

f) expand the application of the safety and environmental protection regime and its enforcement powers to include offshore renewable energy projects;

(

g) provide that the Governor in Council may make regulations to prohibit the commencement or continuation of petroleum resource or renewable energy activities, or the issuance of interests, in respect of any portion of the offshore area that is located in an area that has been or may be identified as an area for environmental or wildlife conservation or protection;

(

h) authorize negotiations for the surrender of an interest, the cancellation of an interest if negotiations fail and the granting of compensation to an interest owner for the surrender or cancellation;

(

i) establish the regulatory and liability regime for abandoned facilities relating to petroleum-related works or activities or offshore renewable energy projects;

(

j) expand the application of the occupational health and safety regime to offshore renewable energy projects;

(

k) allow the federal or provincial governments to unilaterally fund certain expenses incurred by the Regulators as a result of specific requests made by that government;

(

l) allow new methods to demonstrate the existence of significant hydrocarbon accumulations in a geological feature and limit the duration of future significant discovery licences to 25 years;

(

m) provide that the Governor in Council may make regulations to regulate access to offshore infrastructure, including to enforce tolls and tariffs;

(

n) establish a new transboundary hydrocarbon management regime to regulate fields or pools that straddle domestic and international administrative boundaries, enabling the implementation of the Canada-France transboundary fields agreement;

(

o) remove references to the former Canadian Environmental Assessment Act, 2012 and, to align with the Impact Assessment Act , clarify the role of the Federal and Provincial Ministers and Regulators with respect to the conduct of impact assessments of designated projects as well as regional and strategic assessments; and

(

p) specify that the Crown may rely on the Regulators for the purposes of consulting with the Indigenous peoples of Canada and that the Regulators may accommodate adverse impacts to existing Aboriginal and treaty rights recognized and affirmed by

section 35 of the Constitution Act, 1982 .

Finally, it makes consequential and terminological amendments to other Acts.

His Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

PART 1

1987, c. 3; 2014, c. 13, s. 3

Canada–Newfoundland and Labrador Atlantic Accord Implementation Act

Amendments to the Act

The

long title of the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act is replaced by the following:

An Act to implement an agreement between the Government of Canada and the Government of Newfoundland and Labrador on offshore petroleum resource management and revenue sharing, to provide for the joint management of offshore renewable energy by those Governments and to make related and consequential amendments

Section 1 of the Act is replaced by the following:

Short title

This Act may be cited as the Canada–Newfoundland and Labrador Atlantic Accord Implementation and Offshore Renewable Energy Management Act .

(1) The definition Board in

section 2 of the Act is repealed.

(2) The definition offshore area in

section 2 of the Act is replaced by the following:

offshore area means

(

a) in the case of petroleum, those submarine areas lying seaward of the low water mark of the Province and extending, at any location, as far as

(

i) any prescribed line, or

(ii)

if no line is prescribed at that location, the outer edge of the continental margin or a distance of two hundred nautical miles from the baselines from which the breadth of the territorial sea of Canada is measured, whichever is the greater, and

(

b) in the case of offshore renewable energy, the areas referred to in paragraph (

a) that are not within the Province; ( zone extracôtière ou zone )

(3) Section 2 of the Act is amended by adding the following in alphabetical order:

abandoned facility means any pipeline , as defined in

section 135, installation, facility, equipment or system that has been abandoned in accordance with an authorization issued under

Part III; ( installation abandonné

e) Indigenous peoples of Canada has the meaning assigned by the definition aboriginal peoples of Canada in subsection 35(2) of the Constitution Act, 1982 ; ( peuples autochtones du Canada )

offshore renewable energy project means any of the following works and activities:

(

a) any research or assessment conducted in relation to the exploitation or potential exploitation of a renewable resource to produce an energy product, unless it is conducted by or on behalf of a government or educational institution,

(

b) any exploitation of a renewable resource to produce an energy product,

(

c) any storage of an energy product produced from a renewable resource, and

(

d) any transmission of an energy product produced from a renewable resource; ( projet d’énergie renouvelable extracôtière )

offshore renewable energy recommendation means a recommendation made by the Regulator respecting the exercise of a power or the performance of a duty under a provision of this Act that expressly provides for the exercise of the power or the performance of the duty subject to sections 40.1 to 40.3; ( recommandation relative à l’énergie renouvelable extracôtière )

Regulator means the Canada–Newfoundland and Labrador Offshore Energy Regulator referred to in

section 9; ( Régie )

The Act is amended by adding the following after

section 2:

Offshore renewable energy project

2.1

Subject to

section 7, the Governor in Council may make regulations amending the definition offshore renewable energy project , as defined in

section 2, to add or remove any work or activity related to renewable energy that is carried out in the offshore area.

Subsection 5(1) of the Act is replaced by the following:

Regulations

(1) Subject to

section 7, the Governor in Council may make regulations

(

a) prescribing lines enclosing areas adjacent to the Province for the purpose of subparagraph (a)(

i) of the definition offshore area in

section 2; and

(

b) amending paragraph (

b) of that definition.

The definition agreement in subsection 6(1) of the Act is replaced by the following:

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, or respecting offshore renewable energy projects, carried out on any frontier lands; ( accord )

Subsection 7(1) of the Act is replaced by the following:

Provincial Minister’s approval

(1) Before a regulation is made under

section 2.1, subsection 5(1),

section 29.1, subsection 41(7),

section 56.1 or

section 64, subsection 67(2),

section 96.1, subsection 96.2(2),

section 118, subsection 122(1), 125(1), 149(1), 162(2.3), 163(1.02), 183.19(6) or 183.25(1),

section 183.29, subsection 183.3(3) or 202.01(1) or

section 203, the Federal Minister shall consult the Provincial Minister with respect to the proposed regulation and the regulation shall not be made without the Provincial Minister’s approval.

The Act is amended by adding the following after

section 7:

Non-Application of Atlantic Accord

Non-application of Atlantic Accord

7.1

For greater certainty, the Atlantic Accord does not apply to offshore renewable energy resources.

Subsection 8(2) of the Act is replaced by the following:

Excluded legislation

(2) Subject to

section 101, the Canada Petroleum Resources Act and the Canada Oil and Gas Operations Act and

Part 5 of the Canadian Energy Regulator Act and any regulations made under them do not apply within the offshore area.

Subsections 9(1) to (1.2) of the Act are replaced by the following:

Jointly established Regulator

(1) There is established by the joint operation of this Act and the Provincial Act a board to be known as the Canada–Newfoundland and Labrador Offshore Energy Regulator.

References

(1.2) A reference in any contract, document, instrument, proclamation, by-law or order in council to the Canada-Newfoundland Offshore Petroleum Board or the Canada–Newfoundland and Labrador Offshore Petroleum Board is, unless the context otherwise requires, to be read as a reference to the Canada–Newfoundland and Labrador Offshore Energy Regulator.

Subsections 15(1) to (3) of the Act are replaced by the following:

Terms of office

(3) The Chairperson and members of the Regulator shall be appointed for terms of six years.

The Act is amended by adding the following after

section 17:

Consultation with Indigenous peoples of Canada

17.1

His Majesty in right of Canada or in right of the Province may rely on the Regulator for the purposes of consulting with the Indigenous peoples of Canada respecting any potential adverse impact of a work or activity in the offshore area on existing Aboriginal and treaty rights recognized and affirmed by

section 35 of the Constitution Act, 1982 and the Regulator may, on behalf of His Majesty, if appropriate, accommodate any adverse impacts on those rights.

Subsection 18(1) of the Act is replaced by the following:

Access to information

(1) The Federal Minister and the Provincial Minister are entitled to access to any information or documentation relating to petroleum resource and renewable energy activities in the offshore area that is provided for the purposes of this Act or any regulation made under it and such information or documentation shall, on the request of either Minister, be disclosed to that Minister without requiring the consent of the party who provided the information or documentation.

Section 22 of the Act is replaced by the following:

Storage of information

The Regulator shall establish, maintain and operate a facility in the Province for the storage and curatorship of

(

a) all petroleum-related geophysical records and geological and hydrocarbon samples relating to the offshore area; and

(

b) all geological, geophysical, geotechnical and environmental records and geological and geotechnical samples relating to offshore renewable energy.

Subsection 25(4) of the Act is replaced by the following:

Mobility of staff

(4) For the purpose of being eligible for appointment to a position in the public service by an appointment process under the Public Service Employment Act ,

(

a) any person who, immediately prior to being employed by the Regulator, was employed in the public service shall be deemed to be a person employed in the public service in the Department of Natural Resources in the location where that person is performing duties for the Regulator and in a position of an occupational nature and at a level equivalent to the position in which that person is employed by the Regulator; and

(

b) any person who, immediately prior to being employed by the Regulator, was not employed in the public service shall, two years after being employed by the Regulator, be deemed to be a person employed in the public service in the Department of Natural Resources in the location where that person is performing duties for the Regulator and in a position of an occupational nature and at a level equivalent to the position in which that person is employed by the Regulator.

Subsection 27(4) of the Act is replaced by the following:

Payment of operating costs

(4) Subject to subsection (4.1), the Government of Canada shall pay one-half of the aggregate of the expenditures set out in the budget or revised budget in respect of each fiscal year.

Payment of specific activities

(4.1) The Chief Executive Officer may include in the budget or revised budget expenditures associated with specific requirements of one government that are to be paid entirely by that government.

(1) Paragraph 29.1(1)(

b) of the Act is replaced by the following:

(

b) respecting the fees or charges, or the method of calculating the fees or charges, in respect of any of the Regulator’s activities under this Act or the Impact Assessment Act , that are to be paid by

(

i) a person who makes an application for an authorization under paragraph 138(1)(

b) or subsection 138.01(1) or an application under subsection 139(2), or

(ii)

the holder of an operating licence issued under paragraph 138(1)(

a) or an authorization issued under paragraph 138(1)(

b) or subsection 138.01(1); and

(2) Subsection 29.1(3) of the Act is replaced by the following:

Amounts not to exceed cost

(3) The amounts of the fees or charges referred to in paragraph (1)(

b) shall not exceed the cost of the Regulator’s activities under this Act or the Impact Assessment Act .

The Act is amended by adding the following after

section 30:

Petroleum-related Decisions

The Act is amended by adding the following after

section 40:

Decisions Related to Offshore Renewable Energy

Regulator’s recommendation

40.1

(1) The Regulator shall notify the Federal Minister and the Provincial Minister in writing of its offshore renewable energy recommendation as soon as practicable after deciding to make the recommendation.

Ministers’ decisions

(2) The Federal Minister and the Provincial Minister shall, within 60 days after receiving the recommendation, notify the Regulator in writing of their respective decision to approve the recommendation, with or without variations, or to reject it.

Additional 30 days

(3) Despite subsection (2), on written notice by either Minister to the Regulator and the other Minister, both Ministers shall have an additional 30 days to notify the Regulator of their respective decision under that subsection.

No time limit

(4) Despite subsection (2), the Federal Minister or the Provincial Minister may notify the Regulator of their respective decision with respect to an offshore renewable energy recommendation to make a call for bids beyond the period of 60 days referred to in that subsection.

Publication

40.2

The Regulator shall publish in the Canada Gazette any notice of decision referred to in subsection 40.1(2), unless the decision is to reject an offshore renewable energy recommendation to make a call for bids.

Implementation of Ministers’ approval

40.3

The Regulator shall only exercise a power or perform a duty subject to this

section and sections 40.1 and 40.2 if it has been the subject of an offshore renewable energy recommendation that was approved by both Ministers and with the same variations, if any. In that case, the Regulator shall exercise the power or perform the duty as soon as practicable after it receives the notices referred to in subsection 40.1(2).

(1) Subsection 42(1) of the Act is amended by adding the following after paragraph (a):

(a.1)

offshore renewable energy recommendations;

(2) Subsection 42(1) of the Act is amended by striking out “and” at the end of paragraph (

d) and by adding the following after paragraph (d):

(d.1)

the principles referred to in

section 96.6;

(d.2)

the development of guidelines and

interpretation notes issued under subsection 151.1(1) and

section 183.27; and

Section 44.1 of the Act is replaced by the following:

Public hearings

44.1

The Regulator may conduct a public hearing in relation to the exercise of any of its powers or the performance of any of its duties and functions under this Act.

Subsection 44.3(

a) of the English version of the Act is replaced by the following:

(

a) there is a real and substantial risk that disclosure of the information will impair the security of pipelines , as defined in

section 135, installations, facilities, vessels, aircraft or systems, including computer or communication systems, or methods employed to protect them; and

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

Transboundary pool

(7) The

definitions in

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

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.

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 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 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 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 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:

Prohibition orders — petroleum

(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.

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:

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):

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:

Prohibition orders

(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.

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.

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:

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:

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.

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.

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).

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.

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.

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.

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.

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.

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.

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.

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.

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.

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).

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.

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.

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.

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.

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.

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.

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.

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

Section 57 of the Act is replaced by the following:

Authority to issue petroleum-related interests

(1) The Regulator may issue petroleum-related interests in respect of any portion of the offshore area in accordance with this Part and the regulations.

Fundamental decision

(2) The issuance of a petroleum-related interest by the Regulator is subject to sections 31 to 40 unless the issuance of the interest is mandatory under another provision of this Part.

Application of interest may be limited

(3) Subject to subsection (4), the application of any petroleum-related interest may be restricted to geological formations and to substances specified in the interest.

Exception

(4) Subsection (3) does not apply to any petroleum-related 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 if that portion was not a Crown reserve area on the expiration of the interest referred to in paragraph (a).

(1) Subsections 58(1) to (3) of the Act are replaced by the following:

Calls for bids

(1) Subject to

section 61, the Regulator shall not issue a petroleum-related interest in relation to Crown reserve areas unless

(

a) prior to issuing the interest, 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 63; and

(

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

Fundamental decision

(2) The making of a call for bids for the issuance of a petroleum-related interest is subject to sections 31 to 40.

Requests for call for bids

(3) Any request received by the Regulator to make a call for bids for the issuance of a petroleum-related interest in relation to particular portions of the offshore area shall be considered by the Regulator in selecting the portions of the offshore area to be specified in such a call for bids.

(2) The portion of subsection 58(4) of the English version of the Act before paragraph (

a) is replaced by the following:

Contents of call

(4) The call for bids shall specify

(3) Paragraph 58(4)(

b) of the Act is replaced by the following:

(

b) if applicable, the geological formations and substances to which the interest is to apply;

(1) The portion of subsection 59(1) of the English version of the Act before paragraph (

a) is replaced by the following:

Selection of bid

(1) A bid submitted in response to a call for bids for the issuance of a petroleum-related interest shall not be selected unless

(2) Subsections 59(2) to (4) of the Act are replaced by the following:

Publication of bid selected

(2) If the Regulator selects a bid submitted in response to the call for bids, the Regulator shall publish a notice in accordance with

section 63 setting out the terms and conditions of that bid.

Interest to be consistent with call

(3) If a petroleum-related 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.

Publication of terms and conditions of interest

(4) The Regulator shall publish a notice in accordance with

section 63 setting out the terms and conditions of any petroleum-related interest issued as a result of a call for bids as soon as practicable after its issuance.

Section 60 of the Act is replaced by the following:

Issuance of interest not required

(1) The Regulator is not required to issue a petroleum-related interest as a result of a call for bids.

New call required

(2) Subject to

section 61, if the Regulator has not issued a petroleum-related 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 bids, the Regulator shall, before issuing a petroleum-related interest in relation to that portion of the offshore area, make a new call for bids.

(1) The portion of subsection 61(1) of the Act before paragraph (

a) is replaced by the following:

Exception to call for bids — petroleum

(1) Subject to sections 31 to 40, the Regulator may issue a petroleum-related interest, in relation to any Crown reserve area, without making a call for bids if

(2) Paragraph 61(1)(

a) of the English version of the Act is replaced by the following:

(

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

Section 62 of the Act is replaced by the following:

Failure to comply with call procedures

If a petroleum-related interest has been issued, it is not vitiated by reason only of a failure to comply with any of the requirements set out in sections 58 to 61 respecting the form and content of, and time and manner of publishing, any notice required by those sections in relation to that interest.

Subsection 75(3) of the Act is replaced by the following:

Term of significant discovery licence

(3) Subject to subsection 85(1), a significant discovery licence continues in force, in relation to each portion of the offshore area to which the licence applies, for a term of 25 years.

Automatic extension of term

(3.1) If the interest owner has made an application for a declaration of commercial discovery referred to in subsection 78(1) or for the issuance of a production licence referred to in subsection 81(1), the term of the significant discovery licence is extended until the Regulator makes a decision respecting that application.

Cancelling automatic extension

(3.2) The extension to the term of the significant discovery licence remains in force after the Regulator makes a declaration of commercial discovery, but the Regulator may cancel the extension if the interest owner fails to submit an application for the issuance of a production licence within a reasonable time.

Subsection 80(2) of the Act is replaced by the following:

Exception

(2) Despite subsection (1), the Regulator may, subject to such terms and conditions as the Regulator deems appropriate, authorize any interest holder of a petroleum-related interest or a share in such an interest to produce petroleum on the portions of the offshore area subject to the interest or share for use in the exploration or drilling for or development of petroleum on any portion of the offshore area.

The Act is amended by adding the following after

section 87:

DIVISION V

Offshore Renewable Energy

General Rules Relating to Issuance of Submerged Land Licences

Regulator’s authority to issue licences

(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.

Ministerial decision

(2) The issuance of a submerged land licence by the Regulator is subject to sections 40.1 to 40.3.

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.

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.

Rights under submerged land licences

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.

Calls for bids

(1) Subject to

section 94 , 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 96 ; 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 91 (1).

Ministerial decision

(2) The making of a call for bids for the issuance of a submerged land licence is subject to sections 40.1 to 40.3.

Contents of call

(3) The call for bids shall specify

(

a) the submerged land 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.

Selection of bid

(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.

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 96 setting out the terms and conditions of that bid.

Recommendation

(3) The Regulator shall make an offshore renewable energy recommendation for or against the issuance of a submerged land licence under

section 88 respecting all bids selected in accordance with subsection (1).

Issuance of licence not required

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

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.

Publication of terms and conditions — issued licence

(3) The Regulator shall publish a notice in accordance with

section 96 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.

New call for bids required

Subject to

section 94 , 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.

Exception to call for bids — offshore renewable energy

(1) Subject to sections 40.1 to 40.3, 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.

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.

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 96 setting out the terms and conditions of the proposed licence.

Failure to comply with call procedures

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 90 to 94 respecting the form and content of, and time and manner of publishing, any notice required by those sections in relation to that licence.

Manner of publication of notices

Any notice required to be published by the Regulator under subsection 90 (1), 91 (2), 92 (3), 94 (3) or 96.3 (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.

Regulations

96.1

Subject to

section 7, the Governor in Council may, for the purposes of

section 90 , 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

Terms and conditions

96.2

(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 40.1 to 40.3, and the interest owner of the licence.

Regulations

(2) Subject to

section 7, 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.

Amendment of licence

96.3

(1) Subject to sections 40.1 to 40.3, 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.

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 94 (1) and a notice has been published in accordance with

section 96 not later than 120 days before making the amendment, setting out the terms and conditions of the amendment.

Consolidation of licences

(3) Subject to sections 40.1 to 40.3, 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.

Effective date of licence

96.4

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

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.

Qualification for submerged land licence

96.5

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

Principles

96.6

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.

The headings before

section 97 of the Act are replaced by the following:

DIVISION VI

Royalties and Revenues

Reservation of Royalties and Revenues

(1) Subsection 97(2) of the English version of the Act is replaced by the following:

Royalties

(2) There is reserved to His Majesty in right of Canada, and each holder of a share in a production licence is liable for and shall pay to His Majesty in right of Canada, in accordance with subsection (4), the royalties, interest and penalties that would be payable in respect of petroleum under the Petroleum and Natural Gas Act if the petroleum were produced from areas within the Province.

(2) Subsection 97(5) of the Act is replaced by the following:

No Crown share

(5) No provision of the Petroleum and Natural Gas Act or any regulation made under that 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.

The Act is amended by adding the following after

section 97:

Revenues reserved

97.1

(1) There is reserved to His Majesty in right of Canada, and each holder of a share in a submerged land licence is liable for and shall pay to His Majesty in right of Canada, in accordance with subsection (2), the revenues, interest and penalties that would be payable under any Act of the Province and any regulations made under that Act in respect of any offshore renewable energy project as if that project were carried out within the Province.

Application of Newfoundland and Labrador legislation

(2) Subject to this Act and the regulations, any Act and regulations referred to in subsection (1) apply, with any modifications that the circumstances require, for the purposes of this section.

Remedies for unpaid revenues

(3) Despite any other provision of this Act or the regulations, for the purposes of this section, if a person is in default under any Act or regulations referred to in subsection (1) in the payment of any amount payable under this section, the Provincial Minister may, as long as the amount remains unpaid, direct the Regulator to

(

a) refuse to issue to that person any submerged land licence in relation to any portion of the offshore area;

(

b) refuse to authorize, under

Part III, that person to carry on any work or activity related to an offshore renewable energy project and suspend any such authorization already given; and

(

c) exercise the powers under subsections 123(1) and (4).

No remedy pending appeals

(4) No remedy may be exercised under subsection (3) in respect of a default in payment of an amount pending any assessment, reassessment, appeal or review in respect of that default under any Act or regulations referred to in subsection (1) or otherwise provided by law.

For greater certainty

(5) For greater certainty, for the purposes of this Division, revenues, interest and penalties payable under subsection (1) do not include taxes, interest and penalties imposed, levied and collected under

Part IV.

(1) Subsections 98(1) to (3) of the Act are replaced by the following:

Power to collect

(1) Subject to subsection (6), if an agreement is entered into under subsection (3), royalties, interest and penalties payable under

section 97 or revenues, interest and penalties payable under

section 97.1, as the case may be, may be collected and administered and refunds in respect of those amounts payable may be granted on behalf of the Government of Canada in accordance with the terms and conditions of the agreement, as amended from time to time under subsection (4).

Negotiation of agreement

(2) The Federal Minister shall, on the request of the Government of the Province or the Regulator, negotiate

(

a) an agreement with the Provincial Minister and the Regulator with respect to the collection and administration of the royalties, interest and penalties payable under

section 97; and

(

b) an agreement with the Provincial Minister and the Regulator with respect to the collection and administration of the revenues, interest and penalties payable under

section 97.1.

Agreement

(3) On completion of the negotiation of an agreement under subsection (2), the Federal Minister, with the approval of the Governor in Council, shall, on behalf of the Government of Canada, enter into an agreement with the Government of the Province and the Regulator under which the Regulator shall, on behalf of the Government of Canada, collect and administer the royalties, interest and penalties payable under

section 97 or the revenues, interest and penalties payable under

section 97.1, as the case may be, and grant refunds or make other payments in respect of those amounts payable, as the case may be, in accordance with the terms and conditions set out in the agreement.

(2) Subsections 98(6) and (7) of the Act are replaced by the following:

No further liability — petroleum

(6) An agreement entered into under subsection (3) may provide that, if any payment is received by the Government of the Province on account of any royalties, interest, penalties or other sum payable by a person under

section 97, or under both

section 97 and the Petroleum and Natural Gas Act, that payment may be applied by the Government of the Province towards the royalties, interest, penalties or other sums payable by the person under that

section or both that

section and that Act in the manner that is specified in the agreement, even if the person directed that the payment be applied in any other manner or made no direction as to its application.

No further liability — offshore renewable energy

(6.1) An agreement entered into under subsection (3) may provide that, if any payment is received by the Government of the Province on account of any revenues, interest, penalties or other sum payable in respect of any offshore renewable energy project by a person under

section 97.1, or under both

section 97.1 and any Act of the Province and any regulations made under that Act, that payment may be applied by the Government of the Province towards the revenues, interest, penalties or other sums payable by the person under that section, or both that

section and that Act and those regulations, in the manner that is specified in the agreement, even if the person directed that the payment be applied in any other manner or made no direction as to its application.

Relief of liability

(7) Any payment or part of a payment applied by the Government of the Province in accordance with an agreement entered into under subsection (3) towards the royalties, interest, penalties or other sums payable by a person under

section 97 or the revenues, interest, penalties or other sums payable by a person under

section 97.1, as the case may be,

(

a) relieves that person of liability to pay those amounts payable to the extent of the applied payment or part of that payment; and

(

b) shall be deemed to have been applied in accordance with a direction made by that person.

Sections 99 and 100 of the Act are replaced by the following:

Remittance to Receiver General

(1) All royalties, interests and penalties payable under

section 97 and all revenues, interest and penalties payable under

section 97.1, including the proceeds of any royalty or revenues payable in kind, shall be made payable and remitted to the Receiver General.

Consolidated Revenue Fund

(2) On the collection or receipt by the Regulator under this

section of any amounts payable, those amounts shall be deposited as soon as practicable to the credit of the Receiver General and paid into the Consolidated Revenue Fund in the manner prescribed by the Treasury Board under the Financial Administration Act .

Liability and Collection

Debts due to His Majesty

All royalties, interest and penalties payable under

section 97 and all revenues, interest and penalties payable under

section 97.1 are debts due to His Majesty in right of Canada and are recoverable from the person required to pay them in accordance with this Division.

Subsections 101(3) and (4) of the Act are replaced by the following:

Appointment

(3) Despite subsection 78(2) of the Canada Petroleum Resources Act , one of the members of the Environmental Studies Management Board established by subsection 78(1) of that Act is to be appointed by the Regulator on the recommendation of the Provincial Minister.

Reports and recommendations to Regulator

(4) The Environmental Studies Management Board referred to in subsection (3) shall submit to the Regulator a copy of every annual report and recommendation submitted to the Federal Minister under paragraph 79(1)(

d) or (

e) of the Canada Petroleum Resources Act at the same time the report or recommendation is submitted to the Federal Minister.

The

definitions court and operator’s lien in subsection 102(1) of the Act are replaced by the following:

court means the Supreme Court of Newfoundland and Labrador and includes any of its judges; ( tribunal )

operator’s lien means any charge on or right in relation to an interest or a share in an interest

(

a) that arises under a contract

(

i) to which the interest owner or holder of the interest or share is a party,

(ii)

that provides for the operator appointed under the contract to carry out any work or activity, in the portions of the offshore area to which the interest or share applies, related to the exploration for or the development or production of petroleum or to offshore renewable energy projects, and

(iii)

that requires the interest owner or holder to make payments to the operator to cover all or part of the advances made by the operator in respect of the costs and expenses of such work or activity, and

(

b) that secures the payments referred to in subparagraph (a)(iii); ( privilège de l’exploitant )

Section 103 of the Act is replaced by the following:

Notice of disposition of any interest

(1) If an interest holder of an interest or any share in an interest enters into an agreement or arrangement that is or may result in a transfer, assignment or other disposition of the interest or share, the interest holder shall give notice of such agreement or arrangement to the Regulator, together with a

summary of its terms and conditions or, on the request of the Regulator, a copy of the agreement or arrangement.

Conditions of transfer

(2) A submerged land licence shall only be transferred, assigned or otherwise disposed of under subsection (1) if the Regulator is satisfied that the terms and conditions of the licence can be met following the transfer, assignment or other disposition.

(1) The definition engineering research or feasibility study in subsection 119(1) of the Act is replaced by the following:

engineering research or feasibility study includes work undertaken to facilitate the design or to analyse the viability of engineering technology, systems or schemes to be used, in the offshore area, in the exploration for or the development, production or transportation of petroleum or in offshore renewable energy projects; ( recherches ou études techniques )

(2) Paragraph 119(5)(

d) of the Act is amended by striking out “or” at the end of subparagraph (

i) and by replacing subparagraph (ii) with the following:

(ii)

in any other case relating to a petroleum-related work or activity, after the end of five years following the date of completion of the work, or

(iii)

in any case relating to an offshore renewable energy project, after the end of the time set out by regulations or, in the absence of regulations, three years following the date of completion of the geological or geophysical work;

(3) Paragraph 119(5)(

e) of the Act is amended by striking out “or” at the end of subparagraph (

i) and by replacing subparagraph (ii) with the following:

(ii)

in any other case relating to a petroleum-related work or activity, after the end of five years following the date of completion of the research, study or experimental project or after the reversion of that portion of the offshore area to Crown reserve areas, whichever occurs first, or

(iii)

in any case relating to an offshore renewable energy project, after the earlier of:

(

A) the end of the period set out by regulations or, in the absence of regulations, three years following the date of completion of the research, study or experimental project, and

(

B) the reversion of that portion of the offshore area to Crown reserve areas;

(4) Paragraph 119(5)(

i) of the Act is amended by striking out “or” at the end of subparagraph (

i) and by replacing subparagraph (ii) with the following:

(ii)

in any other case relating to a petroleum-related work or activity, if five years have passed since the completion of the study, or

(iii)

in any case relating to an offshore renewable energy project, if the period set out by regulations has passed since the completion of the study or, in the absence of regulations, if three years have passed since the completion of that study.

(5) The portion of subsection 119(6) of the Act before paragraph (

a) is replaced by the following:

Disclosure — governments and agencies

(6) The Regulator may disclose any information or documentation that it obtains under this Part or

Part III — to officials of the Government of Canada, the Government of the Province or any other provincial government, or a foreign government or to the representatives of any of their agencies — for the purposes of a federal, provincial or foreign law, as the case may be, that deals primarily with a petroleum-related work or activity, including the exploration for and the management, administration and exploitation of petroleum resources, or with an offshore renewable energy project, if

(6) Subsection 119(9) of the Act is replaced by the following:

Applicant and proposed work or activity

(9) Subsection (2) does not apply in respect of information regarding the applicant for an operating licence or authorization under subsection 138(1) or authorization under subsection 138.01(1) or in respect of the scope, purpose, location, timing and nature of the proposed work or activity for which the licence or authorization is sought.

(6.1) Section 119 of the Act is amended by adding the following after subsection (9):

Public notice

(9.1) The Regulator shall make public a

summary of the information referred to in subsection (9) in respect of a work or activity for which the Impact Assessment Agency of Canada decided under

section 16 of the Impact Assessment Act that an impact assessment is not required or which is excluded under

section 112.1 of that Act.

(7) The portion of subsection 119(11) of the Act before paragraph (

a) is replaced by the following:

Safety or environmental protection

(11) Subject to

section 119.1, the Regulator may disclose, including for the purposes of the Impact Assessment Act , all or part of any information or documentation related to safety or environmental protection that is provided in relation to an application for an operating licence or authorization under subsection 138(1) or authorization under subsection 138.01(1), or to an operating licence or authorization that is issued under one of those subsections or provided in accordance with any regulations made under this Part or

Part III. The Regulator is not, however, permitted to disclose information or documentation if it is satisfied that

(8) Paragraph 119(11)(

c) of the English version of the Act is replaced by the following:

(

c) there is a real and substantial risk that disclosure of it will impair the security of pipelines , as defined in

section 135, installations, facilities, vessels, aircraft, or systems, including computer or communication systems, used for any work or activity in respect of which this Act applies — or methods employed to protect them — and the need to prevent its disclosure outweighs the public interest in its disclosure.

(1) Subsection 119.1(7) of the Act is replaced by the following:

Review

(7) Any person to whom the Regulator is required under paragraph (4)(

b) to give a notice of a decision to disclose information or documentation may, within 20 days after the day on which the notice is given, apply to the Supreme Court of Newfoundland and Labrador for a review of the decision.

(2) Subsection 119.1(9) of the Act is replaced by the following:

Court to take precautions against disclosing

(9) In any proceedings arising from an application under subsection (7), the Supreme Court of Newfoundland and Labrador shall take every reasonable precaution, including, when appropriate, conducting hearings in camera , to avoid the disclosure by the Court or any person of any information or documentation that, under this Act, is privileged or is not to be disclosed.

Subsection 123(2) of the Act is replaced by the following:

Default — petroleum

(2) Despite anything in this Part but subject to sections 31 to 40 and subsection 123(3), if the interest owner or holder of a petroleum-related interest fails to comply with a notice under subsection (1) within the period specified in the notice and the Regulator considers that the failure to comply warrants cancellation of the interest of the interest owner or holder of or any share in the interest held by the holder with respect to a portion only of the offshore area subject to the interest, the Regulator may, by order subject to

section 124, cancel that interest or share, in which case the portions of the offshore area under that interest or share become Crown reserve areas.

Non-application of

section 124

(3) The Regulator’s order to cancel an exploration licence, significant discovery licence or production licence under subsection (2) is not subject to

section 124 if the notice under subsection (1) relates to a failure to meet any of the terms and conditions contained in that licence.

Default — offshore renewable energy

(4) Despite anything in this Part but subject to sections 40.1 to 40.3, if the interest owner or holder of a submerged land licence fails to comply with a notice under subsection (1) within the period specified in the notice and the Regulator considers that the failure to comply warrants cancellation of the licence of the interest owner or holder or any share in the licence held by the holder, the Regulator may, by order, cancel that licence or share, in which case the portions of the offshore area under that licence or share become Crown reserve areas.

(1) Subsection 124(8) of the Act is replaced by the following:

Notification of order and reasons

(8) If an order, decision or action referred to in subsection (2) is made or taken, the Regulator shall notify the person who requested a hearing in respect of the order, decision or action under subsection (3) and, on request by that person, publish or make available to that person the reasons for the order, decision or action.

(2) Subsection 124(10) of the Act is replaced by the following:

Judicial review

(10) Any order, decision or action in respect of which a hearing is held under this

section is subject to review and to be set aside by the Supreme Court of Newfoundland and Labrador.

Subsections 125(2) and (3) of the Act are repealed.

Subsection 128(1) of the Act is replaced by the following:

Replacement of rights

(1) Subject to

section 127 and subsection 129(2), the petroleum-related interests provided for under this Part replace all petroleum rights or prospects of petroleum rights acquired or vested in relation to any portion of the offshore area prior to the coming into force of this section.

The Act is amended by adding the following after

section 134:

Transitional

134.1

Despite subsection 75(3) and subject to subsection 85(1), if the interest holder of an exploration licence issued before 2017 applies for a declaration of significant discovery in relation to any portion of the offshore area to which that licence applies and if the significant discovery is indicated by the first well on a geological feature that demonstrates, by flow testing, the existence of hydrocarbons in that feature, any significant discovery licence issued for that significant discovery area continues in force, in relation to each portion of the offshore area to which the licence applies, for as long as the declaration of significant discovery on the basis of which the licence was issued remains in force in relation to that portion.

The heading “Petroleum Operations” before

section 135 of the Act is replaced by the following:

Petroleum and Offshore Renewable Energy Operations

Section 135.1 of the Act is replaced by the following:

Purpose

135.1

The purpose of this

Part is to promote

(

a) safety, particularly by encouraging persons exploring for and exploiting petroleum or carrying on an offshore renewable energy project to maintain a prudent regime for achieving safety;

(

b) the protection of the environment;

(b.1)

accountability in accordance with the “polluter pays” principle; and

(

c) in respect of the exploration for and exploitation of petroleum, the conservation of petroleum resources and joint production arrangements.

The heading before

section 136 of the French version of the Act is replaced by the following:

Champ d’application

Section 136 of the Act is replaced by the following:

Application

This Part applies in respect of the exploration and drilling for and the production, conservation, processing and transportation of petroleum, and in respect of offshore renewable energy projects, in the offshore area.

The Act is amended by adding the following after

section 137:

Prohibition — offshore renewable energy

137.01

No person shall carry on any work or activity related to an offshore renewable energy project unless

(

a) that person is the holder of an authorization issued, before the commencement of operations, under subsection 138.01(1) for the work or activity; and

(

b) if it is required, that person is authorized or entitled to carry on business in the place where that person proposes to carry on the work or activity.

Section 137.1 of the Act is replaced by the following:

Delegation

137.1

The Regulator may delegate any of the Regulator’s powers under

section 138, 138.01, 138.2, 138.3, 139.1, 139.2, 162.1, 163, 183.2 or 183.21 to any person, and the person shall exercise those powers in accordance with the terms of the delegation.

The heading “Operating Licences and Authorization for Work” before

section 138 of the Act is replaced by the following:

Petroleum Operating Licences and Authorizations

(1) The portion of subsection 138(1) of the Act before paragraph (

a) is replaced by the following:

Licences and authorizations

(1) The Regulator may, on application made in the form and containing the information fixed by it, and made in the prescribed manner, issue in relation to petroleum-related works or activities

(2) Subsection 138(4) of the Act is amended by striking out “and” at the end of paragraph (

b) and by adding the following after paragraph (b):

(b.1)

requirements that are conditions established under the Impact Assessment Act , including those established under

section 64 of that Act or by regulations made under paragraph 112(1)(a.2) of that Act; and

(1) Section 138.01 of the Act is replaced by the following:

Offshore Renewable Energy Authorizations

Authorizations

138.01

(1) The Regulator may, on application containing any information required by the Regulator or prescribed, issue an authorization with respect to each work or activity proposed to be carried out in relation to an offshore renewable energy project.

Copy of application

(2) On receipt by the Regulator of an application for an authorization referred to in subsection (1) or of an application to amend the authorization, the Regulator shall provide a copy of the application to the Chief Safety Officer.

Terms and conditions of authorization

(3) An authorization is subject to any terms and conditions required by the Regulator or prescribed, including terms or conditions with respect to

(

a) approvals;

(

b) deposits of money;

(

c) liability for loss, damage, costs or expenses related to debris , as defined in subsection 183.17(1);

(

d) the carrying out of safety studies or environmental programs or studies; and

(

e) certificates of fitness and who may issue them.

Limitation

(4) The terms and conditions shall not be inconsistent with the provisions of this Act or the regulations.

Suspension or revocation

(5) The Regulator may suspend or revoke an authorization referred to in subsection (1) for failure to comply with, contravention of or default in respect of

(

a) a term or condition, determined by the Regulator in accordance with the provisions of this Part or

Part III.1 or prescribed under either of those Parts, subject to which the authorization was issued;

(

b) a fee or charge payable in accordance with regulations made under

section 29.1;

(

c) a requirement undertaken in a declaration referred to in subsection 139.1(2);

(

d) subsection 139.1(3), 183.2(3) or 183.21(2);

(

e) any provision of

Part III.1; or

(

f) any applicable regulation.

Impact Assessment

(2) Subsection 138.01(3) of the Act is amended by striking out “and” at the end of paragraph (

d) and by adding the following after paragraph (d):

(d.1)

conditions established under the Impact Assessment Act , including those established under

section 64 of that Act or by regulations made under paragraph 112(1)(a.2) of that Act; and

62.1

The Act is amended by adding the following after the heading “Impact Assessment” after

section 138.01:

Definition of designated project

138.011

(1) For the purposes of this

section and sections 138.012 to 138.016, designated project means a designated project , as defined in

section 2 of the Impact Assessment Act , that is a work or activity referred to in

section 137 or 137.01 of this Act.

Impact assessment

(2) If an application for an authorization made under paragraph 138(1)(

b) or subsection 138.01(1) or an application made under subsection 139(2) is in respect of a designated project, the Regulator may not make a determination respecting that application before

(

a) the Impact Assessment Agency of Canada decides, under subsection 16(1) of the Impact Assessment Act , that an impact assessment of that project is not required; or

(

b) the Minister of the Environment has issued a decision statement under

section 65 of that Act.

Designating a work or activity

(3) If the Minister of the Environment considers designating, under

section 9 of the Impact Assessment Act , a work or activity referred to in

section 137 or 137.01 of this Act, the Chairperson of the Regulator shall provide the Minister with comments respecting this designation.

Consultation with Ministers

(4) Before providing the Minister of the Environment with comments, the Chairperson of the Regulator may consult with the Federal Minister and the Provincial Minister and, in that event, the Chairperson shall consult with both Ministers.

Access to information by Impact Assessment Agency

138.012

(1) The Regulator shall provide the Impact Assessment Agency of Canada, on request and within the period specified by the Agency under subsection 13(1) of the Impact Assessment Act , with any specialist or expert information or knowledge that the Regulator possesses.

Engaging proponent

(2) The Regulator shall, on the Agency’s request made under subsection 13(2) of the Impact Assessment Act , engage the proponent of the designated project in order to specify to the proponent the information, if any, that the Regulator may require in order to exercise its powers or perform its duties or functions with respect to that project.

Comments for Agency — notice

(3) The Chairperson of the Regulator shall provide the Agency with comments for any work or activity referred to in

section 137 or 137.01 that is the subject of a notice posted under subsection 15(3) of the Impact Assessment Act in order to assist the Agency to decide whether an impact assessment of that work or activity is required.

Consultation with Ministers

(4) Before providing the Agency with comments, the Chairperson of the Regulator may consult with the Federal Minister and the Provincial Minister and, in that event, the Chairperson shall consult with both Ministers.

Comments for Agency — time limits

(5) If the Agency decides that an impact assessment of the designated project is required, the Chairperson of the Regulator shall provide the Agency with comments respecting the time limits referred to in subsections 28(2) and 37(1) of the Impact Assessment Act within which the impact assessment report shall be submitted to the Minister of the Environment and within which any recommendations shall be posted on the Internet site established by the Agency.

Comments — time extension

(6) The Chairperson of the Regulator shall provide the Minister of the Environment with comments respecting any extension to the time limits that is considered under subsection 28(6) or (7) or 37(3) or (4) of the Impact Assessment Act .

Consultation with Ministers

(7) Before providing the Minister of the Environment with comments, the Chairperson of the Regulator may consult with the Federal Minister and the Provincial Minister and, in that event, the Chairperson shall consult with both Ministers.

Comments for Agency — information or studies

(8) If the Agency decides that an impact assessment of the designated project is required, the Regulator shall provide the Agency with comments respecting

(

a) the scope of the factors that the Agency takes into account in determining, under subsection 18(1.2) of the Impact Assessment Act , what information or which studies it considers necessary and that it may require from the proponent for the conduct of the impact assessment;

(

b) the information or studies that the Regulator considers necessary for the conduct of the impact assessment or preparation of the impact assessment report, as the case may be, and that the Agency may require from the proponent under paragraph 18(1)(a), subsections 19(3) and 26(2) and

section 38 of that Act; and

(

c) whether the proponent has provided the Agency with all of the information or studies necessary for the conduct of the impact assessment or preparation of the impact assessment report.

Access to information by Agency or review panel

138.013

The Regulator shall provide the Impact Assessment Agency of Canada or a review panel, on request and within the period specified by the Agency or review panel under

section 23 of the Impact Assessment Act , with any specialist or expert information or knowledge that the Regulator possesses.

Comments for Agency — conditions

138.014

If the Impact Assessment Agency of Canada or review panel is to make recommendations respecting a designated project to assist the Minister of the Environment in establishing conditions under

section 64 of the Impact Assessment Act , including respecting mitigation measures, a follow-up program or an adaptive management plan, the Regulator shall provide the Agency or review panel, as the case may be, with comments respecting those conditions.

62.2

Section 138.02 of the Act is replaced by the following:

Federal authority’s obligation

138.015

Every federal authority , as defined in

section 2 of the Impact Assessment Act , shall provide the Regulator, on request and within the period specified by the Regulator, with any specialist or expert information or knowledge that the authority possesses and that the Regulator may require in order to

(

a) decide whether to authorize a work or activity under subsection 138(1) or 138.01(1);

(

b) decide whether to approve a development plan under subsection 139(4) or any amendment to that plan under subsection 139(5); or

(

c) conduct a regional assessment under

section 138.017 or a strategic assessment under

section 138.018.

Access to information by authority

138.016

The Regulator shall provide an authority , as defined in

section 81 of the Impact Assessment Act , on request and within the period specified by the authority under

section 85 of that Act, with any specialist or expert information or knowledge that the Regulator possesses respecting a project , as defined in

section 81 of that Act.

Regional Assessments and Strategic Assessments

Regional assessments

138.017

(1) The Regulator may conduct a regional assessment of the effects of any existing or future work or activity referred to in sections 137 or 137.01.

Agreement between Ministers

(2) The Federal Minister and the Provincial Minister may enter into an agreement with any jurisdiction authorized under any other federal or provincial legislation to conduct a regional assessment of the effects of any existing or future work or activity referred to in sections 137 or 137.01, including to specify the time limits and terms of that regional assessment.

Strategic assessments

138.018

(1) The Regulator may conduct a strategic assessment of any proposed or existing policy, plan or program respecting the offshore area or of any issue that is relevant to any existing or future work or activity referred to in sections 137 or 137.01.

Agreement between Ministers

(2) The Federal Minister and the Provincial Minister may enter into an agreement with any jurisdiction authorized under any other federal or provincial legislation to conduct a strategic assessment of any proposed or existing policy, plan or program respecting the offshore area or of any issue that is relevant to any existing or future work or activity referred to in sections 137 or 137.01, including to specify the time limits and terms of that strategic assessment.

Access to information by Agency or committee

138.019

The Regulator shall provide the Impact Assessment Agency of Canada or a committee, on request and within the period specified by the Agency or committee under

section 100 of the Impact Assessment Act , with any specialist or expert information or knowledge that the Regulator possesses.

Comments for Minister of the Environment

138.02

If the Minister of the Environment shall, for the purposes of any regional assessment of the effects of any existing or future work or activity referred to in sections 137 or 137.01 or for the purposes of any strategic assessment in the offshore area, establish the terms of reference and appoint members of a committee or establish the terms of reference of the Impact Assessment Agency of Canada under

section 96 of the Impact Assessment Act , the Federal Minister, the Provincial Minister and the Chairperson of the Regulator shall provide the Minister of the Environment with comments respecting those terms of reference or appointments.

Participant Funding Program

Participant funding program

138.021

The Regulator may establish a participant funding program to facilitate the participation of the public and any Indigenous peoples of Canada in consultations concerning any matter respecting the offshore area.

Right of Entry

(1) Subsection 138.1(1) of the French version of the Act is replaced by the following:

Droit d’accès

138.1

(1) Sous réserve du paragraphe (2), toute personne peut pénétrer dans la zone extracôtière et y exercer les activités autorisées sous le régime de l’alinéa 138(1)

b) pour la recherche et l’exploitation de pétrole ou de gaz.

(2) Subsection 138.1(2) of the Act is replaced by the following:

Right of entry — offshore renewable energy

(1.1) Subject to subsection (2), any person may, for the purpose of carrying on an offshore renewable energy project, enter on and use any portion of the offshore area in order to carry on a work or activity authorized under subsection 138.01(1).

Right of entry — abandoned facilities

(1.2) Subject to subsection (2), any person may enter on and use any portion of the offshore area in order to make contact with, alter or remove an abandoned facility if they have been authorized to do so under subsection 183.3(2).

Restriction

(2) If a person occupies a portion of the offshore area under a lawful right or title, other than an authorization under paragraph 138(1)(

b) or subsection 138.01(1) or an interest as defined in

section 47, no person may enter on or use that portion for a purpose referred to in any of subsections (1) to (1.2) without the consent of the occupier or, if consent has been refused, except in accordance with the terms and conditions imposed by a decision of an arbitrator made in accordance with the regulations.

Section 138.2 of the Act is replaced by the following:

Safety — petroleum operations

138.2

(1) The Regulator shall, before issuing an authorization for a work or activity referred to in paragraph 138(1)(b), consider the safety of the work or activity by reviewing, in consultation with the Chief Safety Officer, the system as a whole and its components, including its structures, facilities, equipment, operating procedures and personnel.

Safety — offshore renewable energy operations

(2) The Regulator shall, before a work or activity referred to in subsection 138.01(1) commences, consider the safety of the work or activity by reviewing, in consultation with the Chief Safety Officer, the system as a whole and its components, including its structures, facilities, equipment, operating procedures and personnel.

Section 138.3 of the Act is replaced by the following:

Compliance — petroleum

138.3

(1) The Regulator shall, before issuing an authorization for a work or activity referred to in paragraph 138(1)(b), ensure that the applicant has complied with the requirements of subsections 162.1(1) or (2) and 163(1) or (1.01) in respect of that work or activity.

Compliance — offshore renewable energy

(2) The Regulator shall ensure that an applicant or holder of an authorization under subsection 138.01(1) has, prior to a date determined by regulations or, in the absence of regulations, prior to commencing a work or activity under that authorization, complied with the requirements of subsections 183.2(1) and 183.21(1) in respect of that work or activity.

Section 139 of the Act is amended by adding the following after subsection (6):

Transboundary pool

(7) The

definitions in

section 166 also apply in subsections (8) to (12).

Approval subject to agreement

(8) Despite subsection (4), a development 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 by the Regulator unless the appropriate authority has agreed to its content. The approval of

Part I of that development plan is subject to sections 31 to 40 — or in respect of any transboundary pool that extends into the jurisdiction of a foreign government, to the consent of the Federal Minister in consultation with the Provincial Minister — and any requirements that the Regulator and appropriate authority have agreed are appropriate or that may be prescribed.

Disagreement

(9) In the case of a disagreement about the content of the plan submitted for approval, or any of the requirements for approval referred to in subsection (8), 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 refer the matter to an expert in accordance with

section 183.16.

Submissions regarding

Part I

(10) Any submissions to the expert by the Regulator regarding

Part I of the development plan are subject to sections 31 to 40. In respect of any transboundary pool extending into the jurisdiction of a foreign government, the submissions are subject to the approval of the Federal Minister in consultation with the Provincial Minister.

Expert’s decision

(11) The expert’s decision is deemed to be approval of the plan by the Regulator and approval of

Part I of that plan by the Federal Minister and the Provincial Minister, or in the case of any transboundary pool extending into the jurisdiction of a foreign government, by only the Federal Minister.

Amendment to development plan

(12) Subsections (7) to (11) apply, with any necessary modifications, to a proposed amendment to a development plan to which a work or activity in a transboundary pool relates or to any requirement to which the approval of the plan is subject.

(1) The portion of subsection 139.1(1) of the Act before paragraph (

a) is replaced by the following:

Declaration by applicant — petroleum

139.1

(1) No authorization under paragraph 138(1)(

b) shall be issued unless the Regulator has received, from the applicant for the authorization, a declaration in the form fixed by the Regulator that states that

(2) Subsection 139.1(3) of the Act is replaced by the following:

Declaration by applicant or holder — offshore renewable energy

(2) An applicant or holder of an authorization under subsection 138.01(1) shall, prior to a date determined by regulations or, in the absence of regulations, by the Regulator, provide the Regulator with a declaration in the form fixed by it that states that

(

a) the equipment and facilities that are to be used in the work or activity to be authorized are fit for the purposes for which they are to be used, the operating procedures relating to them are appropriate for those uses, and the personnel who are to be employed in connection with them are qualified and competent for their employment; and

(

b) the applicant or holder shall ensure, so long as the work or activity that is authorized continues, that the equipment and facilities continue to be fit for the purposes for which they are used, the operating procedures continue to be appropriate for those uses, and the personnel continue to be so qualified and competent.

Changes

(3) If the equipment, an installation, a facility, the operating procedures or any of the personnel specified in a declaration changes and no longer conforms to the declaration, the holder of the authorization that provided the declaration shall provide the Regulator with a new declaration as soon as the circumstances permit after the change occurs.

The heading before

section 139.2 of the Act is replaced by the following:

Petroleum-related Certificates

(1) Subsection 140.2(1) of the French version of the Act is replaced by the following:

Propriété

140.2

(1) La propriété des hydrocarbures produits au cours d’essais d’écoulement de formation prolongés revient à la personne qui les effectue conformément à une autorisation délivrée en application de l’article 138, aux approbations et conditions dont cette autorisation dépend ou aux règlements, même si elle n’est pas titulaire de la licence de production requise par la

partie II.

(2) Subsection 140.2(3) of the French version of the Act is replaced by the following:

Réserve

(3) Le présent

article ne s’applique qu’aux essais d’écoulement de formation prolongés dont les résultats donnent suffisamment de renseignements pour la détermination du meilleur procédé de récupération pour le réservoir, de la capacité du réservoir ou des limites de productivité de tout puits d’exploitation du réservoir et qui ne mettent pas en danger la récupération finale pour ce réservoir.

The heading “Regulation of Operations” before

section 149 of the Act is replaced by the following:

Regulation of Operations — Petroleum

(1) Paragraph 149(1)(

a) of the Act is replaced by the following:

(

a) defining, in relation to petroleum-related works or activities, “oil” and “gas” for the purposes of Divisions I and II, “installation” and “equipment” for the purposes of sections 139.1 and 139.2 and “serious” for the purposes of

section 165;

(2) Subparagraph 149(1)(c)(ii) of the Act is replaced by the following:

(ii)

the removal of petroleum from the offshore area, including in relation to the management of access by third parties to existing offshore infrastructure for the purpose of storing, processing and transporting petroleum and in relation to the amounts that may be charged for that access, and

(3) Paragraph 149(1)(

d) of the Act is replaced by the following:

(

d) concerning arbitration relating to petroleum-related works or activities for the purposes of subsection 138.1(2), including the costs of or incurred in relation to such arbitrations;

(4) Paragraph 149(1)(

g) of the Act is replaced by the following:

(

g) prohibiting, in relation to petroleum-related works or activities, the introduction into the environment of substances, classes of substances and forms of energy, in prescribed circumstances;

(5) Paragraphs 149(1)(h.3) and (

i) of the Act are replaced by the following:

(h.3)

concerning the creation, conservation and production of records relating to petroleum-related works or activities; and

(

i) prescribing, in relation to petroleum-related works or activities, anything that is required to be prescribed for the purposes of this Part.

Section 150 of the Act is repealed.

(1) Subsection 151.1(1) of the Act is replaced by the following:

Guidelines and

interpretation notes

151.1

(1) The Regulator may issue and publish, in any manner the Regulator considers appropriate, guidelines and

interpretation notes with respect to the application and administration of sections 45, 138 and 139 and subsection 163(1.01) and any regulations respecting petroleum-related works or activities made under sections 29.1 and 149.

(2) Subsection 151.1(2) of the French version of the Act is replaced by the following:

Réputés ne pas être des textes réglementaires

(2) Les lignes directrices et textes interprétatifs sont réputés ne pas être des textes réglementaires au sens de la

Loi sur les textes réglementaires .

The heading of Division II of

Part III of the Act is replaced by the following:

Petroleum Production Arrangements

Definitions

(1) The definition unitization order in

section 166 of the Act is replaced by the following:

unitization order means an order made under

section 176 or subsection 183.12(1); ( arrêté d’union )

(2) Section 166 of the Act is amended by adding the following in alphabetical order:

appropriate authority means

(

a) before the determination of whether a transboundary pool exists is made and, if applicable, its boundaries have been delineated, the authority that is responsible for the jurisdiction

(

i) adjoining the portion of the perimeter where the drilling took place or where a pool exists, and

(ii)

into which there is reason to believe that, based on the data obtained from any drilling, the pool extends, and

(

b) after that determination is made, the authority that is responsible for the jurisdiction into which the pool extends; ( organisme de réglementation concerné )

authority means the Government of Canada, a government of a province, a foreign government or any of their agencies or a federal-provincial regulatory agency that has administrative responsibility for the exploration and exploitation of petroleum in the area adjoining the perimeter; ( organisme de réglementation )

expert means a person who is appointed under subsection 183.16(2) and includes an expert panel appointed under subsection 183.16(3) or a person or arbitral tribunal who is appointed in accordance with any applicable treaty referred to under subsection 183.16(9); ( expert )

perimeter , in relation to a pool, means the portion of the offshore area that is within 10 nautical miles of the limit of that offshore area; ( bande limitrophe )

transboundary means extending beyond the Regulator’s jurisdiction under this Act; ( transfrontalier )

The Act is amended by adding the following after

section 183:

Transboundary Pools

Determination and Delineation

Information

183.01

(1) If an exploratory well , as defined in subsection 119(1), is drilled in the perimeter, the Regulator shall provide the appropriate authority, in the prescribed time and manner, with any information in its possession, including any prescribed information, pertinent to its determination of whether a transboundary pool exists and the delineation of it.

Information in advance

(2) The Regulator shall provide the Federal Minister and the Provincial Minister with any information referred to in subsection (1) before providing it to the appropriate authority.

Additional information

(3) After providing any information referred to in subsection (1) in the prescribed time, the Regulator shall, on request, provide the appropriate authority with any additional information in its possession that is pertinent to its determination of the existence of a transboundary pool and the delineation of it.

Notice — pool

183.02

(1) If the data obtained from any drilling in the perimeter provides sufficient information for the Regulator to determine whether a pool exists, the Regulator shall notify the appropriate authority as soon as feasible of its determination.

Notice — transboundary pool

(2) If the Regulator determines that a pool exists, the Regulator shall also specify in the notice whether or not there is, in its opinion, reason to believe that the pool is transboundary.

Reasons

(3) The Regulator shall, before it notifies the appropriate authority under subsection (1), provide the Federal Minister and the Provincial Minister with the reasons for its determination and opinion, if any.

Timeline

(4) The notice shall be given no later than one year after the Regulator receives the data from three drillings of the same geological feature in the perimeter.

Information received by Regulator

183.03

(1) If the Regulator receives a notice from an authority indicating the authority’s determination as to whether a pool exists in an area adjoining the perimeter, and, if applicable, whether there is reason to believe the pool extends into the perimeter, the Regulator shall, within 90 days after receiving the notice, inform the authority of its agreement or disagreement with the determination or opinion set out in the notice.

Reasons

(2) If the Regulator disagrees with the content of the notice, it shall provide the authority with the reasons for its disagreement.

Information in advance

(3) The Regulator shall, before it informs the authority of its agreement or disagreement with the content of the notice, inform the Federal Minister and the Provincial Minister of its determination, along with the reasons for that determination if it disagrees with the content of the notice.

Determination and delineation

183.04

(1) If, after receiving a notice under

section 183.02 or 183.03, the Regulator and the authority in question agree that a pool exists, the Regulator and that authority shall jointly determine whether that pool is transboundary and, if so, they shall jointly delineate its boundaries.

Disagreement

(2) The Regulator or the authority — or in respect of any transboundary pool extending into the jurisdiction of a foreign government, the Federal Minister after consultations with the Minister of Foreign Affairs and the Provincial Minister — may, if they disagree about whether a pool exists, whether the pool is transboundary or its delineation, refer the matter to an expert and shall do so no later than 180 days after the day on which the Regulator issues a notice under subsection 183.02(1) or the authority issues an equivalent notice.

Notification to Ministers

(3) The Regulator shall, with respect to subsection (2), inform the Federal Minister and the Provincial Minister

(

a) that the Regulator intends to refer the matter to an expert; or

(

b) that the authority has referred the matter to an expert.

Notification to the Provincial Minister

(4) The Federal Minister shall, with respect to subsection (2) and any transboundary pool extending into the jurisdiction of a foreign government, inform the Provincial Minister that the foreign government has referred the matter to an expert.

Agreements Relating to Joint Exploitation

Single pool

183.05

(1) A transboundary pool is to be exploited as a single pool.

Conditions for joint exploitation

(2) The exploitation of a transboundary pool is subject to a joint exploitation agreement having been entered into and to a unit agreement and a unit operating agreement having been entered into and approved under subsection 183.08(4) or 183.12(4).

Joint exploitation agreement prevails

(3) The joint exploitation agreement prevails over the unit agreement and the unit operating agreement to the extent of any inconsistency between them.

Joint exploitation agreement

183.06

(1) Subject to subsection (2), the Regulator and the appropriate authority may enter into a joint exploitation agreement providing for the exploitation of a transboundary pool as a single pool. The agreement shall include any matters provided for by regulation.

Advice to Ministers

(2) In the case of any transboundary pool extending into the jurisdiction of a foreign government, the Regulator shall provide advice in respect of the exploitation of that transboundary pool to the Federal Minister and the Provincial Minister, who may enter into a joint exploitation agreement with the appropriate authority.

Intention to start production

183.07

(1) If an interest owner , as defined in

section 47, advises the Regulator, including by way of an application under subsection 81(1) or paragraph 138(1)(b), that it intends to start production of petroleum from the transboundary pool, the Regulator shall notify the appropriate authority as soon as feasible of the interest owner’s intention.

Notification of intention

(2) The Regulator shall, before notifying the appropriate authority of the interest owner’s intention to start production of petroleum from the transboundary pool, notify the Federal Minister and the Provincial Minister of that intention.

Referral to expert

(3) The appropriate authority or the Regulator — or in respect of any transboundary pool extending into the jurisdiction of a foreign government, the Federal Minister after consultation with the Minister of Foreign Affairs and the Provincial Minister — may, if they have not yet entered into a joint exploitation agreement within a period of 180 days after the Regulator’s notice was given under subsection (1), refer the matter of determining the particulars of the agreement to an expert. However, they may agree to refer the matter to an expert any time before the period ends.

Unit agreement

183.08

(1) The royalty owners and the working interest owners in a transboundary pool may enter into a unit agreement and, once it is approved, shall operate their interests in accordance with it or any amendment to it.

Unit operating agreement

(2) The working interest owners in a transboundary pool may enter into a unit operating agreement and, once it is approved, shall operate their interests in accordance with it or any amendment to it.

Content

(3) The unit agreement shall include the details referred to in paragraphs 175(2)(

a) to (

d) and the unit operating agreement shall include the details referred to in paragraphs 175(3)(

a) to (e).

Approval

(4) The Regulator and the appropriate authority may approve the unit agreement if all the royalty owners and all the working interest owners in the transboundary pool are parties to it; the Regulator and the appropriate authority may approve the unit operating agreement if all the working interest owners in the transboundary pool are parties to it.

Condition precedent

(5) An authorization under paragraph 138(1)(

b) for a work or activity proposed to be carried on in relation to the exploitation of a transboundary pool shall not be issued if the unit agreement and the unit operating agreement have not been jointly approved by the Regulator and the appropriate authority.

Applicable provisions

(6) Subsections 172(2) and (3) apply to the unit agreement.

Order to enter into agreements

183.09

When a joint exploitation agreement is entered into in respect of a transboundary pool, the Regulator shall order the working interest owners in the portion of the pool that is in its jurisdiction to enter into a unit agreement and a unit operating agreement with any other working interest owners in the pool if they have not already done so.

Application for unitization order

183.1

(1) One or more working interest owners who are parties to a unit agreement and a unit operating agreement and own 65% or more of the working interests in a transboundary pool may apply for a unitization order with respect to the agreements.

Content and submission of application

(2) The application shall be submitted to both the Regulator and the appropriate authority. It shall include the documents and statements referred to in subsection 175(1) and may be made by the unit operator or proposed unit operator on behalf of the working interest owners.

Appointment of expert

(3) The Regulator and the appropriate authority shall, for the purposes of

section 183.11, appoint an expert in accordance with subsections 183.16(2) to (4).

Appointment of expert

(4) In respect of any transboundary pool extending into the jurisdiction of a foreign government, the Federal Minister shall, after consultation with the Provincial Minister, agree with the appropriate authority on the appointment of an expert in accordance with subsection 183.16(9).

Hearing

183.11

(1) Once seized of the application under

section 183.1, the expert shall hold a hearing at which all interested persons shall be given an opportunity to be heard.

Conclusion of hearing

(2) On the conclusion of the hearing, the expert shall request that the Regulator and appropriate authority

(

a) order that the unit agreement be a valid contract enuring to the benefit of all the royalty owners and working interest owners who have an interest in the unit area and binding on and enforceable against those owners, and that the unit operating agreement be a valid contract enuring to the benefit of all the working interest owners who have an interest in the unit area and binding on and enforceable against those owners; and

(

b) include in the order any variations to the unit agreement or unit operating agreement determined necessary by the expert to allow for the more efficient or more economical production of petroleum from the unitized zone.

Exception

(3) Despite subsection (2), the expert shall end the hearing and request that the Regulator and the appropriate authority take the measures referred to in paragraph (2)(

a) if the expert finds that

(

a) on the day the hearing begins,

(

i) the unit agreement and the unit operating agreement have been executed by one or more working interest owners who own 65% or more of the working interests in the unit area, and

(ii)

the unit agreement has been executed by one or more royalty owners who own 65% or more of the royalty interests in the unit area; and

(

b) the unitization order applied for would allow for the more efficient or more economical production of petroleum from the unitized zone.

Measures

(4) In respect of any transboundary pool extending into the jurisdiction of a foreign government, the interested persons referred to in subsection (1) are representatives of each country in question and, on the conclusion of the hearing, the expert shall request that the interested persons ensure that the Regulator and the appropriate authority take the measures referred to in subsection (2) or (3).

Unitization order

183.12

(1) The Regulator shall issue a unitization order in accordance with the expert’s request made under subsections 183.11(2) to (4).

Effect of unitization order

(2) The unit agreement and the unit operating agreement have the effect given to them by the unitization order.

Equivalent order

(3) A unitization order becomes effective only if the appropriate authority has issued an equivalent order.

Joint approval

(4) The issuance of a unitization order by the Regulator and of an equivalent order by the appropriate authority is deemed to be their joint approval of the unit agreement and the unit operating agreement.

Effective date of unitization order

(5) Subject to subsections (3) and (6), a unitization order becomes effective on the date established in the order, but that date shall not be less than 30 days after the day on which the order is made.

Order revoked

(6) The Regulator shall immediately revoke a unitization order varying a unit agreement or a unit operating agreement if, before the effective date of that order, the party who applied for a unitization order under subsection 183.1(1) files with the Regulator a notice withdrawing the application on behalf of the working interest owners or there are filed with the Regulator statements objecting to the order and signed

(

a) in the case of the unit agreement, by

(

i) one or more working interest owners who own in total more than 25% of the working interests in the unit area and are part of the group that owns 65% or more of the working interests as described in subparagraph 183.11(3)(a)(i), and

(ii)

one or more royalty owners who own in total more than 25% of the working interest in the unit area and are part of the group that owns 65% or more of the royalty interests as described in subparagraph 183.11(3)(a)(ii); or

(

b) in the case of the unit operating agreement, by one or more working interest owners who own in total more than 25% of the working interests in the unit area and are part of the group that owns 65% or more of the working interests as described in subparagraph 183.11(3)(a)(i).

Technical defects in unitization order

(7) A unitization order is not invalid by reason only of the absence of notice or of any irregularities in giving notice to any owner in respect of the application for the order or any proceedings leading to the making of the order.

Production prohibited except in accord with unitization order

(8) After the date on which a unitization order comes into effect and while the order remains in force, no person shall carry on any operations within the unit area for the purpose of drilling for or producing petroleum from the unitized zone, except in accordance with the provisions of the unit agreement and the unit operating agreement.

Not statutory instruments

(9) The unitization order is not a statutory instrument for the purposes of the Statutory Instruments Act .

Amending unitization order

183.13

(1) A unitization order may be amended on the application of a working interest owner submitted to both the Regulator and the appropriate authority.

Appointment of expert

(2) The Regulator and the appropriate authority shall, for the purposes of this section, appoint an expert in accordance with subsections 183.16(2) to (4). In the case of any transboundary pool extending into the jurisdiction of a foreign government, the Federal Minister, after consultation with the Provincial Minister, shall agree with the appropriate authority on the appointment of an expert in accordance with subsection 183.16(9).

Hearing

(3) Once seized of the application, the expert shall hold a hearing at which all the interested persons shall be given an opportunity to be heard.

Conclusion of hearing

(4) On the conclusion of the hearing, the expert may request that the Regulator amend the unitization order in accordance with the proposed amendment and include in the order any variations to it determined necessary by the expert to allow for the more efficient or more economical production of petroleum from the unitized zone. If the expert makes such a request, the expert shall also request that the appropriate authority amend its equivalent order in the same way.

Exception — short hearing

(5) If the expert finds that, on the day on which the hearing begins, one or more working interest owners who own 65% or more of the working interests and one or more royalty owners who own 65% or more of the royalty interests in the unit area have consented to the proposed amendment, the expert may end the hearing and request that the Regulator amend the unitization order in accordance with the amendment. If the expert makes such a request, the expert shall also request that the appropriate authority amend its equivalent order in the same way.

Transboundary pools

(6) In respect of any transboundary pool extending into the jurisdiction of a foreign government, the interested persons referred to in subsection (3) are representatives of each country in question and, on the conclusion of the hearing, the expert shall request that the interested persons ensure that the Regulator and the appropriate authority take the measures referred to in subsections (4) and (5).

Protection of tract participation ratios

183.14

No amendment shall be made under

section 183.13 that will alter the ratios between the tract participations of those tracts that were qualified for inclusion in the unit area before the commencement of the hearing, and, for the purposes of this section, the tract participations shall be those indicated in the unit agreement when it became subject to a unitization order.

Determination — percentages of interests

183.15

The percentages of interests referred to in subsections 183.1(1), 183.11(3), 183.12(6) and 183.13(5) shall be determined in accordance with

section 182.

Referral to Expert

Notice

183.16

(1) The party that intends to refer a matter to an expert under subsections 45(9), 139(9), 183.04(2) and 183.07(3) shall notify the other party of their intention.

Appointment — single expert

(2) Within 30 days after notice is given under subsection (1), or of the application made under subsection 183.1(1) or 183.13(1), the parties shall agree on the appointment of an expert who shall be seized of the matter.

Appointment — expert panel

(3) If the parties do not agree on the appointment of a single expert, they shall, within 30 days after the day on which the period to jointly appoint an expert under subsection (2) ends, each appoint one member to an expert panel and those experts shall, in turn, jointly appoint an additional expert as chairperson. If the members fail to agree on the appointment of a chairperson within a period of 30 days after the day of the last appointment, the chairperson shall be appointed by the Chief Justice of the Federal Court within 30 days after the end of that period. Once the chairperson is appointed, the expert panel shall be seized of the matter.

Conditions for appointment of expert

(4) An expert shall be impartial and independent and have knowledge or experience relative to the subject of disagreement between the parties.

Decisions

(5) In the case of an expert panel, decisions shall be made on the basis of a majority vote of the members. The chairperson’s vote is the deciding vote in the case of a tie.

Time limit

(6) The expert’s decisions shall be made no later than 270 days after the day on which they were seized of the matter.

Decision is final and binding

(7) Subject to judicial review, a decision made by an expert is final and binding on all parties specified in the decision from the date specified in it.

Records to be kept

(8) An expert shall cause records to be kept of their hearings and proceedings and shall deposit their records with the Regulator when their activities to which the records relate have ceased.

Expert — international treaty

(9) In the