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CHAPTER C-2

CANADA-NEWFOUNDLAND AND LABRADOR ATLANTIC ACCORD IMPLEMENTATION AND OFFSHORE RENEWABLE ENERGY MANAGEMENT NEWFOUNDLAND AND LABRADOR ACT

Amended:

1992 c15; 1992 c47; 1999 c22 s5; 2001 cN-3.1 s2; 2005 c19;

2013 c3; 2015 c6 (

New subsections not in force 134.5(1) and 156.1(1), (2) &

(3) ); 2015 cA-1.2 s121; 2018 c39; 2021 cR-1.01 s30; 2022 cW-11.1 s155; 2025 c4

CHAPTER C-2

2025 c4 s1

Analysis

Short title

Definitions

2.1

Regulations re offshore renewable energy project

Construction

Precedence over other Acts

Regulations re offshore area

Disputes between neighbouring provinces

Approval of federal minister before making of regulations

7.1

Non-application of Atlantic Accord

Application

PART I

JOINT MANAGEMENT

Jointly established regulator

Members of regulator

Qualifications of members

Consultation and appointment of chairperson

Absence or incapacity of chairperson

Term of office

Conflict of interest and insurance

Functions of regulator

17.1

Consultation with Indigenous peoples of Canada

Access to information by governments

Meetings of regulator

Quorum and majority vote

Location of offices and staff

Storage of information

By-laws and guidelines

Chief executive officer

Staff of regulator

Auditor

26.1

Audit and evaluation committee

Budget and appropriation

Access to books and accounts

Annual report

29.1

Regulations

29.2

Remittance of fees and charges

Regulator's decision final

Notice of fundamental decisions and advice by ministers

Conditions for implementation

Definitions re ss.34 to 37

Self-sufficiency and security of supply

Determination binding

Where no agreement on determinations re self-sufficiency

Determination of unreason-able delay

Determination not subject to review

Suspensive vetoes

Supply shortfall

40.1

Regulators recommendation

40.2

Publication

40.3

Implementation of ministers approval

Regional security of supply

Ministerial directives

Plan for interest

Public review

44.1

Public hearing

44.2

Confidentiality

44.3

Confidentiality - security

44.4

Exception

Canada- Newfoundland and Labrador benefits plan

Coordination

PART II

PETROLEUM AND OFFSHORE RENEWABLE ENERGY RESOURCES

Interpretation

DIVISION I

GENERAL

Giving notice

Binding on the Crown

Delegation

Advisory bodies

Representatives

Prohibition orders issuance of interests

Surrender of interests

Prohibition orders - activities

55.1

Prohibitions regulations

55.2

Negotiations for compensation federal minister

55.3

Compensation surrender

55.4

Negotiations for compensation provincial minister

55.5

Compensation surrender or cancellation

DIVISION II

GENERAL RULES RELATING TO ISSUANCE OF PETROLEUM-RELATED INTERESTS

Authority to issue petroleum-related interests

Call for bids petroleum-related interests

Selection of bids and publication

Issuance of interest not required

Exception to call for bids - petroleum

Interest not vitiated

Manner of publication of notices

Regulations

DIVISION III

EXPLORATION

Rights under exploration licences

Shares

Terms, conditions and regulations

Amendment and consolidation of exploration licence

Effective date of exploration licence

Continuation of exploration licence where drilling started

Declaration of significant discovery

Rights under significant discovery licence

Significant discovery licence in relation to lands subject to exploration licences

Reduction or increase of area subject to significant discovery licence

Term of licences

Drilling orders

Information may be disclosed

DIVISION IV

PRODUCTION

Application for declaration of commercial discovery

Order to reduce term of interest

Rights under production licence

Issuing of production licence

Consolidation of production licences

Reduction and increase of area subject to production licence

Term of production licence

Lapsing of other interests

Licence for subsurface storage

Qualification for production licence

DIVISION IV.1

GENERAL RULES RELATING TO ISSUANCE OF SUBMERGED LAND LICENCES

86.1

Authority to issue submerged land licences

86.2

Rights under submerged land licences

86.3

Call for bids - submerged land licences

86.4

Selection of bid

86.5

Issuance of licence not required

86.6

New call for bids required

86.7

Exception to call for bids offshore renewable energy

86.8

Interest not vitiated

86.9

Manner of publication of notices

86.10

Regulations

86.11

Terms, conditions and regulations

86.12

Amendment and consolidation of submerged land licence

86.13

Effective date of submerged land licence

86.14

Qualification for submerged land licence

86.15

Principles

DIVISION V

CANADIAN OWNERSHIP

Rep. by 1992 c47 s3

Rep. by 1992 c47 s3

Rep. by 1992 c47 s3

Rep. by 1992 c47 s3

Rep. by 1992 c47 s3

Rep. by 1992 c47 s3

Rep. by 1992 c47 s3

Rep. by 1992 c47 s3

Rep. by 1992 c47 s3

DIVISION VI

ENVIRONMENTAL STUDIES RESEARCH FUND

Fund continued and rates approved by regulator

DIVISION VII

TRANSFERS, ASSIGNMENTS AND REGISTRATION

Interpretation

Notice of disposition of an interest

Rep. by 1992 c47 s3

Rep. by 1992 c47 s3

Public register

Prohibition

Rep. by 1992 c47 s3

Requirements of registering security notice

Security notice

Registration

Registration is considered notice

Priority of rights

Demand for information

Notice to take proceedings

Transfer effective on registration

No restriction on rights

No action for acts done in performance of official functions

Regulations

DIVISION VIII

ADMINISTRATION AND ENFORCEMENT

Interpretation

115.1

Notice of disclosure

Rep. by 1992 c15 s5

Operating agreements

Regulations

Notice to comply

Oil and Gas Committee

Regulations

Forms

DIVISION IX

TRANSITIONAL, CONSEQUENTIAL AND COMMENCEMENT

Exploration agreements extent are

continued

Replacement of rights

Regulations continue in force

Former permits, former special renewal permits and former exploration agreements

Former leases

Extension of time

Consolidated exploration agreement

Crown share abrogated

130.1

Transitional

PART III

PETROLEUM AND OFFSHORE RENEWABLE ENERGY OPERATIONS

Definitions

PURPOSE

131.1

Purpose

Application

OIL AND GAS ADMINISTRATION ADVISORY COUNCIL

132.1

Designation

OFFSHORE OIL AND GAS TRAINING STANDARDS ADVISORY BOARD

132.2

Minister may approve board

Prohibition

DELEGATION

133.01

Prohibition offshore renewable energy

133.1

Delegation of regulator's powers

Petroleum operating licences and authorizations

134.01

Offshore renewable energy authorizations

134.1

Impact assessment

134.2

Access to information by Impact Assessment Agency

134.3

Access to Information by Impact Assessment Agency or review panel

134.4

Comments for Impact Assessment Agency - conditions

134.5

Federal authoritys obligation

134.6

Access to information by authority

134.7

Regional assessments

134.8

Strategic assessments

134.9

Access to information by Impact Assessment Agency or committee

134.10

Comments for Minister of the Environment of Canada

134.11

Participant funding program

134.12

Right of entry

134.13

Safety

134.14

Spill-treating agent

134.15

Compliance with certain provisions

Approval of approach

DECLARATIONS AND CERTIFICATES

135.1

Declaration by applicant or holder of authorization

135.2

Petroleum-related certificate

CHIEF SAFETY OFFICER AND CHIEF CONSERVATION OFFICER

Designation

136.1

Orders

EXTENDED FORMATION FLOW TESTS

136.2

Title to petroleum

Oil and Gas Committee

Qualification of members

Interest in petroleum properties

Quorum and powers of committee

Jurisdiction

Appointing member to hold inquiry

Advisory functions

Enforcement of committee orders

DIVISION I

REGULATION OF OPERATIONS - PETROLEUM

Regulatory power

Equivalent standards

Guidelines and

interpretation notes

Production orders

Waste prohibited

Prevention of waste

Giving effect to order

Appeal to committee

Waste by failure to utilize petroleum, etc.

Order

SPILLS AND DEBRIS

Definitions re petroleum spills

Spills prohibited

156.1

Spill-treating agent

156.2

Scientific research

Recovery of loss, etc.

157.1

Proof of financial resources

Financial responsibility

158.1

Lesser amount

Review committee

159.1

Management of Greenhouse Gas Act

159.2

Powers, duties and functions of regulator

Fishermen's compensation

Inquiries

DIVISION II

PETROLEUM PRODUCTION ARRANGEMENTS

Definitions

Voluntary pooling

Pooling order

Effect of pooling order

Application to alter pooling order

Prohibition

Unitization

Requiring unitization to prevent waste

Who may apply for unitization order

Contents of unitization application

Hearing on application

Effective date of unitization order

Technical defects in order

Amending the order

Protection of tract participation ratios

Production prohibited except in accord with unitization order

How percentages of interests to be determined

Pooled spacing unit included

179.1

Transboundary pools information

179.2

Notice - pools

179.3

Information received by regulator

179.4

Determination and delineation

179.5

Single pool

179.6

Joint exploitation agreement

179.7

Intention to start production

179.8

Unit agreement and unit operating

179.9

Order to enter into agreements

179.10

Application for unitization order transboundary pool

179.11

Hearing

179.12

Unitization order

179.13

Amending unitization order

179.14

Protection of tract participation ratios

179.15

Determination percentages of interests

179.16

Referral to expert

DIVISION II.1

REGULATION OF OPERATIONS OFFSHORE RENEWABLE ENERGY

179.17

Definitions

179.18

Debris prohibited

179.19

Recovery of loss, damage, costs or expense

179.20

Financial resources

179.21

Proof of financial responsibility

179.22

Review committee

179.23

Inquiries

179.24

Reasonable care

179.25

Regulations

179.26

Equivalent standards and exemptions

179.27

Guidelines and

interpretation notes

DIVISION II.2

SAFETY AN PROTECTION OF PERSONS, PROPERTY AND THE ENVIRONMENT

179.28

Orders

179.29

Regulations

179.30

Abandoned facilities

DIVISION III

APPEALS AND ADMINISTRATION

Orders and decisions final

Stated case for Supreme Court

Regulator may review orders of committee

Appeal to Supreme Court

OPERATIONAL SAFETY OFFICERS AND CONSERVATION OFFICERS

Officers

Powers of officers

185.1

Reports provided to holder of authorization

185.2

Entering living quarters

Certificate to be produced

Assistance to officers

Obstruction of officers

188.1

Warrants

188.2

Storage and removal

Powers of operational safety officer

189.1

Priority of orders

INSTALLATION OR FACILITY MANAGER

189.2

Installation manager

189.3

Facility manager

Offences

190.1

Offence by corporation

190.2

Rep. by 2015 c6 s21

190.3

Rep. by 2015 c6 s21

190.4

Rep. by 2015 c6 s21

190.5

Rep. by 2015 c6 s21

190.6

Recovery of fines and amounts

Rep. by 1992 c15 s32

Order of court

192.1

Variation of sanctions

192.2

Subsequent applications with leave

192.3

Recovery of fines and amounts

Continuing offences

Rep. by 1992 c15 s33

Limitation period

Evidence

Jurisdiction of judge or justice

Action to enjoin not prejudiced by prosecution

198.1

Information

ADMINISTRATIVE MONETARY PENALTIES

198.2

Regulations

198.3

Powers

VIOLATIONS

198.4

Commission of violation

198.5

Liability of directors, officers, etc.

198.6

Proof of violation

198.7

Issuance and service of notice of violation

RULES ABOUT VIOLATIONS

198.8

Certain defences not available

198.9

Continuing violation

198.10

Violation or offence

198.11

Limitation period

REVIEWS

198.12

Right to request review

198.13

Correction or cancellation of notice of violation

198.14

Review

198.15

Object of review

198.16

Burden of proof

RESPONSIBILITY

198.17

Payment

198.18

Failure to act

RECOVERY OF PENALTIES

198.19

Debt due the Crown

198.20

Certificate

GENERAL

198.21

Admissibility of documents

198.22

Publication

Regulations

Application

Operating licences, authorizing, etc.

PART III.1

OCCUPATIONAL HEALTH AND SAFETY

201.1

Interpretation

201.2

Crown bound

201.3

Application

201.4

Application of Newfoundland and Labrador social legislation

201.5

Application of Labour Relations Act

201.6

Purpose

201.7

Allocation of responsibility

201.8

Operator's duty to establish occupational health and safety policy

201.9

Operator's duty to take reasonable measures

201.10

Specific duties of operator - workplace

201.11

Specific duties of operator - passenger craft

201.12

Occupational health and safety management system - operator

201.13

Operator's code of practice

201.14

Accidents and occupational diseases

201.15

Employer's duty to take reasonable measures

201.16

Specific duties of employers

201.17

Occupational health and safety program - employer

201.18

Employer's code of practice

201.19

Specific duties of employers- hazardous materials

201.20

Employer to provide information in emergency

201.21

Supervisor's duty to take reasonable measures

201.22

Specific duties of supervisor

201.23

Employee's duty to take reasonable measures

201.24

Specific duties of employee-workplace

201.25

Specific duties of employee-passenger craft

201.26

Limitation of liability-employee

201.27

Supplier's duty to take reasonable measures

201.28

Specific duties of supplier

201.29

Provider of services' duty to take reasonable measures

201.30

Specific duties of provider of services

201.31

Duty of owner

201.32

Duty of interest holder

201.33

Duties of directors and officers

201.34

Communication of information -operator

201.35

Communication of information -employer

201.36

Chief safety officer information

201.37

Provision of information to committees

201.38

Editing of reports

201.39

Response to request for information

201.40

Establishment, functions and duties of workplace committee

201.41

Workplace committee

201.42

Occupational health and safety coordinator

201.43

Special committees

201.44

Response to recommendations of committee

201.45

Workplace monitoring

201.46

Reporting of occupational health and safety concerns

201.47

Right to refuse

201.48

Opportunity to explain reasons for refusal

201.49

Assignment of equivalent work

201.50

Compensation or equivalent work for other employees

201.51

Refusal to be transported

201.52

Assignment of equivalent work

201.53

Pregnant or nursing employees

201.54

Reassignment and job modification

201.55

Employer's obligations and rights of employees

201.56

Reprisal action

201.57

Application by employee

201.58

Notice of decision to dismiss

201.59

Orders

201.60

Application by employer or provider of services

201.61

Notice of decision to dismiss

201.62

Notice of decision

201.63

Activities of regulator

201.64

Guidelines and

interpretation notes

201.65

Application for an authorization

201.66

Substitutions-workplace

201.67

Substitutions-passenger craft

201.68

Occupational health and safety officers

201.69

Special officers

201.70

Powers of occupational health and safety officers

201.71

Reports of health and safety officers

201.72

Entering living quarters

201.73

Assistance to officers

201.74

False statements of information

201.75

Obstruction

201.76

Accompaniment of health and safety officer

201.77

Warrants

201.78

Storage and removal

201.79

Non-disturbance

of scene

201.80

Provision of information

201.81

Information not to be disclosed

201.82

Non-disclosure

of identity

201.83

Non-disclosure

of trade secrets and information on hazardous products and material

201.84

Disclosure of information

201.85

Access to information by governments

201.86

Disclosure by regulator

201.87

Privilege

201.88

Protection from liability

201.89

Order to terminate contravention

201.90

Dangerous situation order

201.91

Copy of order

201.92

Compliance notice

201.93

Priority of order

201.94

Posting and providing of certain documents

201.95

Review of occupational health and safety officer's decision

201.96

Review by chief safety officer

201.97

Appeal to labour relations board

201.98

Compensation of employees

201.99

Enforcement of orders

201.100

Offences

201.101

Offence by corporation

201.102

Imprisonment precluded in certain cases

201.103

Orders of court

201.104

Variation of order

201.105

Subsequent applications with leave

201.106

Recovery of fines and amounts

201.107

Order to comply

201.108

Continuing offences

201.109

Limitation period

201.110

Evidence

201.111

Jurisdiction of

judge

201.112

Action to enjoin not prejudiced by prosecution

201.113

Information

201.114

Advisory council

201.115

Auditor

201.116

Inquiries

201.117

Definitions

201.118

Use not mandatory

201.119

Electronic document

201.120

Regulations

PART IV

Rep. by 2015 c6 s24

Rep. by 2015 c6 s24

Rep. by 2015 c6 s24

Rep. by 2015 c6 s24

Rep. by 2015 c6 s24

Rep. by 2015 c6 s24

PART V

GENERAL PROVISIONS, TRANSITIONAL AND COMMENCEMENT

Agreements under federal act

Initial payment to environmental studies fund during transitional period

have entered into the Atlantic Accord and have agreed that neither government will introduce amendments to this Act

or regulations made under this Act without the consent of both governments:

Short title

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

1986 c37 s1; 2001 cN-3.1 s2 ; 2025 c4 s2

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Definitions

In this Act

(a.01)

"abandoned facility" means a pipeline, as defined in paragraph 131(e), installation, facility, equipment or system that has been abandoned in accordance with an authorization issued under

Part III;

(a)

(b)

[Rep. by 2025 c4 s3]

(c)

"Canada-Newfoundland and Labrador

benefits plan" means a plan submitted under subsection 45(2);

(d)

"chief executive officer" means the chief executive officer of the regulator appointed under

section 24;

(e)

"development plan" means a plan submitted under subsection 135(2) for the purpose of obtaining approval of the general approach of developing a pool or field as proposed in the plan;

(f)

"federal Act" means the Canada-Newfoundland and Labrador Atlantic Accord Implementation and Offshore Renewable Energy Management Act ;

(g)

"federal government" means the Governor in Council;

(h)

"federal minister" means the Minister of Natural Resources of Canada or another minister of the Crown in right of Canada

that may be designated under the laws of Canada

as the minister responsible for the federal Act;

(i)

"field"

(

i) means a general surface area underlain or appearing to be underlain by one or more pools, and

(ii)

includes the subsurface regions vertically beneath the general surface area referred to in subparagraph (i);

(j)

"former regulations" means the Canada Oil and Gas Land Regulations made under the Public Lands Grants Act

(Canada) and the Territorial Lands Act (Canada)

and includes orders made under those regulations;

(k)

"fundamental decision" means a decision made by the regulator respecting the exercise of a power or the performance of a duty under this Act that expressly provides for the exercise of the power or the performance of the duty subject to sections 31 to 40;

(l)

"gas" means natural gas and includes all substances, other than oil, that are produced in association with natural gas;

(m)

"government" means the federal government, the provincial government or both, as the context requires;

(m.1)

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

(n)

"minister" means the federal minister, the provincial minister or both, as the context requires;

(o)

"offshore area" means

(

i) in the case of petroleum, those submarine areas lying seaward of the low water mark of the province and extending, at any point, as far as

(

A) a prescribed line, or

(

B) where no line is prescribed at that location, the outer edge of the continental margin or a distance of 200

nautical miles from the baselines from which the breadth of the territorial sea of Canada is measured, whichever is the greater, and

(ii)

in the case of offshore renewable energy, the areas referred to in subparagraph (

i) that are not within the province;

(o.1)

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

(

i) 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,

(ii)

exploitation of a renewable resource to produce an energy product,

(iii)

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

(iv)

transmission of an energy product produced from a renewable resource;

(o.2)

"offshore renewable energy recommendation" means a recommendation made by the regulator respecting the exercise of a power or the performance of a duty under 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;

(p)

"oil" means

(

i) crude oil regardless of gravity produced at a well-head in liquid form, and

(ii)

other hydrocarbons, except coal and gas, and hydrocarbons that may be extracted or recovered from deposits of oil sand, bitumen, bituminous sand, oil shale or from other types of deposits on the seabed or subsoil of the seabed of the offshore area;

(q)

"petroleum" means oil or gas;

(r)

"pool" means a natural underground reservoir containing or appearing to contain an accumulation of petroleum that is separated or appears to be separated from other such accumulations;

(s)

"provincial government" means the Lieutenant-Governor in Council;

(t)

"provincial minister" means, except as provided for the purpose of

Part III.1, the minister of the Crown in right of the province who the Lieutenant-Governor in Council may by order designate as the provincial minister for the purpose of this Act;

(t.1)

"regulator" means the Canada-Newfoundland and Labrador Offshore Energy Regulator referred to in

section 9; and

(u)

"spill-treating agent", except in

section 156.2, means a spill-treating agent that is on the list established under

section 14.2 of the Canada Oil and Gas Operations Act .

1986 c37 s2; 2001 cN-3.1 s2 ; 2013 c3 s1 ; 2015 c6 s1 ; 2025 c4 s3

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Regulations re offshore renewable energy project

2.1

Subject to

section 7, the Lieutenant-Governor in Council may make regulations amending the definition of offshore renewable energy project to add or remove a work or activity related to renewable energy that is carried out in the offshore area.

2025 c4 s4

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Construction

This Act shall not be interpreted as providing a basis for a claim by or on behalf of Canada

in respect of an interest in or legislative jurisdiction over an offshore area or a living or non-living resource of an offshore area within the jurisdiction of the province.

1986 c37 s3

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Precedence over other Acts

(1)In case of an inconsistency or conflict between

(

a) this Act or regulations made under this Act; and

(

b) any other Act of the legislature that applies to the offshore area or regulations made under that Act,

this Act and the regulations made under this Act take precedence.

(2) Notwithstanding subsection (1), this Act and regulations made under this Act shall be read and applied in conjunction with the Labrador Inuit Land Claims Agreement Act

and, where a provision of this Act or regulations made under this Act is inconsistent or conflicts with a provision, term or condition of the Labrador Inuit Land Claims Agreement Act , the provision, term or condition of the Labrador Inuit Land Claims Agreement Act

shall have precedence over the provision of this Act or a regulation made under this Act.

1986 c37 s4; 1992 c15 s1 ; 2005 c19 s1

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Regulations re offshore area

(1) Subject to

section 7, the

Lieutenant- Governor in Council may make regulations

(

a) prescribing lines enclosing areas adjacent to the province for the purpose of clause 2(o)(i)(A); or

(

b) amending subparagraph 2(o)(ii).

(2) The provincial minister may issue charts setting out the offshore area or a portion of the offshore area that may be set out consistent with the nature and scale of the chart.

(3) In a legal or other proceeding, a chart purporting to be issued under the authority of the provincial minister is conclusive proof of the limits of the offshore area or portion of the offshore area set out in the chart without proof of the signature or official character of the person purporting to have issued the chart.

1986 c37 s5; 2013 c3 s2 ; 2025 c4 s5

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Disputes between neighbouring provinces

(1)In this

section

(a)

(b)

"frontier lands" means

lands that belong to His Majesty in right of Canada, or in respect of which the Crown in right of Canada has the right to dispose of or exploit the natural resources and that are situated in

(

i) Yukon

, the Northwest Territories , Nunavut

or Sable

Island , or

(ii)

those submarine areas, not within a province, adjacent to the coast of Canada and extending throughout the natural prolongation of the land territory of Canada to the outer edge of the continental margin or to 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.

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

(4) Where the procedure for the settlement of a dispute under this

section involves arbitration, the arbitrator shall apply the principles of international law governing maritime boundary delimitation, with the modifications that the circumstances require.

(5) Notwithstanding

section 7 of the federal Act, where a dispute is settled under this

section and a regulation under subsection 5(1) prescribing the line in relation to which the dispute arose is made in accordance with the settlement, the regulation is not subject to the procedure set out in

section 7 of the federal Act with respect to the portion of the line to which the dispute related.

1986 c37 s6; 2013 c3 s3 ; 2025 c4 s6

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Approval of federal minister before making of regulations

(1) Before a regulation is made under sections 2.1, subsection 5(1),

section 29.1, subsection 41(7),

section 55.1,

section 63, subsection 66(2),

section 86.10, subsection 86.11(2),

section 114, subsections 118(1), 121(1), 145(1), 157(2.3), 158(1.2), 179.19(6), or 179.25(1),

section 179.29, subsection 179.30(3) or 198.2(1) or

section 199, the provincial minister shall consult the federal minister with respect to the proposed regulation and a regulation shall not be made without the approval of the federal minister.

(2) Before a regulation is made under subsection 201.1(4) or (5) or subsection 201.120(1), the provincial minister as defined in

Part III.1 shall consult the federal minister with respect to the proposed regulation and a regulation shall not be made without the approval of that minister.

2013 c3 s4 ; 2015 c6 s2 ; 2025 c4 s7

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Non-application of Atlantic Accord

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

2025 c4 s8

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Application

(1)This Act applies within the offshore area.

(2) Subject to

section 96, the Canada Petroleum Resources Act,

the Canada Oil and Gas Operations Act

and

Part 5 of the Canadian Energy Regulator Act

and any regulations made under those Acts do not apply within the offshore area.

1986 c37 s8; 1992 c15 s2 ; 2025 c4 s9

PART I

JOINT MANAGEMENT

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Jointly established regulator

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

(2) The regulator shall be treated as having been established under a law of the province.

(3) The regulator has the legal powers and capacities of a corporation incorporated under the

Canada Business Corporations Act

(Canada), including those set out in

section 20 of the

Interpretation Act.

(4) The regulator may only be dissolved by the joint operation of

an Act of the Parliament of Canada and

an Act of the Legislature.

1986 c37 s9; 2001 cN-3.1 s2 ; 2025 c4 s10

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Members of regulator

(1)The regulator shall consist of 7 members.

(2) Three members of the regulator are to be appointed by the federal government, 3 by the provincial government and the chairperson of the regulator is to be appointed by both the federal government and the provincial government.

(3) One or 2 members of the regulator may be designated to be vice-chairpersons of the regulator if they are so designated by both the federal government and the provincial government.

(4) The designation of a vice-chairperson of the regulator under subsection (3) is effective after both governments have each made the designation.

(5) Each government may appoint one alternate member to act as a member of the regulator in the absence of a member of the regulator appointed by that government.

(6) Notwithstanding subsection (2) or (5), a member or alternate member of the regulator may be appointed by both the federal government and the provincial government.

1986 c37 s10; 2025 c4 s11

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Qualifications of members

(1)A member of the regulator shall not, during the term of office of that member on the regulator, be employed in the public service of Canada or be an employee of the province.

(2) In this section, "public service of Canada

" has the same meaning as in the federal Act.

1986 c37 s11; 2025 c4 s12

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Consultation and appointment of chairperson

(1)Consultation between the 2 governments with respect to the selection of the chairperson of the regulator shall be considered to begin

(a)

6 months before the expiration of the term of office of the incumbent chairperson; or

(

b) where applicable, on the date of receipt by the regulator of notice of the death, resignation or termination of appointment of the incumbent chairperson,

whichever occurs earlier.

(2) Where the 2 governments fail to agree on the appointment of the chairperson of the regulator within 3 months after the beginning of consultation between the governments, the chairperson shall be selected by a panel, consisting of 3 members and constituted in accordance with this section, unless, prior to the selection of the chairperson by the panel, the 2 governments agree on the appointment.

(3) One member of the panel shall be appointed by each government within 30 days after the 3 months referred to in subsection (2).

(4) The chairperson of the panel shall be appointed

(

a) jointly by the 2 members of the panel appointed under subsection (3) within 30 days after the later of the 2 appointments made under that subsection; or

(

b) where the 2 members of the panel fail to agree on the appointment of the chairperson of the panel within the 30 day

period referred to in paragraph (a), by the Chief Justice of Newfoundland and Labrador within 30 days after the expiration of that period.

(5) The chairperson of the regulator shall be selected by the panel within 60 days after the appointment of the chairperson of the panel.

(6) The decision of the panel selecting a chairperson of the regulator is final and binding on both governments.

1986 c37 s12; 2001 cN-3.1 s2 ; 2025 c4 s13

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(2) 1986 c37 s13; 2025 c4 s14

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Absence or incapacity of chairperson

The regulator shall designate a member to act as chairperson of the regulator during an absence or incapacity of the chairperson or vacancy in the office of chairperson, and that person, while acting as chairperson, has and may exercise the powers and perform the duties and functions of the chairperson.

1986 c37 s14; 2025 c4 s15

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Term of office

(1)[Rep. by 2025 c4 s16]

(2) [Rep. by 2025 c4 s16]

(3) The chairperson and members of the regulator shall be appointed for a term of 6 years.

(4) A member of the regulator, including the chairperson, shall hold office during good behaviour, but may be removed for cause

(

a) where that member is appointed by either government, by that government; or

(

b) where that member is appointed by both governments, by both governments.

(5) On the expiration of a term of office, the chairperson or a member of the regulator is eligible for reappointment.

1986 c37 s15; 2025 c4 s16

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Conflict of interest and insurance

(1)Members of the regulator, including the chairperson, and the chief executive officer appointed under subsection 24(1) shall be subject to conflict of interest

guidelines established jointly by the federal minister and provincial minister and are not subject to conflict of interest guidelines established by the provincial government.

(2) The regulator shall purchase and maintain insurance for the benefit of a person who is a present or former member, officer or employee of the regulator, and the heirs and legal representatives of that person, against any liability incurred by that person in the capacity of such a member, officer or employee, except where the liability relates to a failure to act honestly and in good faith with regard to the best interests of the regulator.

(3) For greater certainty, the expenditures of the regulator associated with purchasing and maintaining the insurance referred to in subsection (2) shall form part of the budget or revised budget of the regulator in respect of a fiscal year.

(4) Notwithstanding subsection (2), where the regulator has established to the satisfaction of the provincial minister the impossibility of purchasing and maintaining the insurance referred to in subsection (2), the government of the province shall indemnify a person who is a present or former member, officer or employee of the regulator, or the heirs or legal representatives of that person, against all costs, charges and expenses, including an amount paid to settle an action or satisfy a judgment, reasonably incurred in respect of a civil, criminal or administrative action or proceeding to which that person is a party by reason of being or having been such a member, officer or employee, where that person

(

a) acted honestly and in good faith with a view to the best interests of the regulator; and

(

b) in the case of a criminal or administrative action or proceeding that is enforced by a monetary penalty, believed, on reasonable grounds, that the conduct in issue was lawful.

(5) Where the regulator has purchased and maintained insurance referred to in subsection (2), the government of the province shall indemnify a person referred to in that subsection, or the heirs or legal representatives of that person, for any liability incurred by that person in accordance with this

section to the extent that the insurance purchased for the benefit of that person does not cover that liability.

(6) The government of the province is not obliged to indemnify anyone under subsection (4) against an amount paid to settle an action unless the amount so paid was approved by the government of the province.

(7) (8) An amount payable in respect of indemnification under this

section may be paid out of the Consolidated Revenue Fund.

1986 c37 s16; 1987 c25 s1; 2025 c4 s17

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Functions of regulator

(1) The regulator shall perform the duties and functions that are conferred or imposed on the regulator under the Atlantic Accord or this Act.

(2) The regulator may make recommendations to both governments with respect to proposed amendments to this Act, the federal Act and regulations made under those Acts.

1986 c37 s17; 2025 c4 s18

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Consultation with Indigenous peoples of Canada

17.1

The Crown 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 the 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 the Crown in right of Canada or in right of the province, where appropriate, accommodate the adverse impacts on those rights.

2025 c4 s19

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Access to information by governments

(1) The federal minister and the provincial minister are entitled to access 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 a regulation made under this Act and that 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.

(2) Notwithstanding

section 28,

section 115 applies, with the modifications that the circumstances require, in respect of a disclosure of information or documentation or the production or giving of evidence relating to information or documentation by a minister as if the references in that

section to the administration or enforcement of a Part of this Act included references to the administration or enforcement of the federal Act or a Part of the federal Act.

1986 c37 s18; 2025 c4 s20

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Meetings of regulator

A meeting of the regulator shall be held

(

a) once a month unless the members of the regulator unanimously agree to defer a meeting; and

(

b) at other times

(

i) at the call of the chairperson of the regulator,

(ii)

on the request of 2 members of the regulator, or

(iii)

on the request of the federal minister or the provincial minister to review a matter referred to it by that minister.

1986 c37 s19; 2025 c4 s21

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Quorum and majority vote

(1)Four members constitute a quorum of the regulator.

(2) Where, in the absence of unanimous agreement, a vote is required to be taken in respect of a decision of the regulator, the decision shall be made on the basis of

a majority vote of the members of the regulator.

1986 c37 s20; 2025 c4 s22

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Location of offices and staff

The principal office and staff of the regulator shall be located in

the province.

1986 c37 s21; 2025 c4 s23

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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.

1986 c37 s22; 2025 c4 s24

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By-laws and guidelines

Subject to the Atlantic Accord, the regulator may

(

a) make by-laws respecting

(

i) the members, officers and employees of the regulator,

(ii)

the attendance and participation, including voting rights, at meetings of the regulator of alternate members of the regulator appointed under subsection 10(5),

(iii)

the manner of appointing the officers and employees of the regulator on the basis of

merit, including the holding of open competitions for appointing the officers and employees,

(iv)

the procedures to be followed in the performance of the duties and functions of the regulator,

(

v) the conduct of meetings of the regulator,

(vi)

the manner of dealing with matters and business before the regulator, and

(vii)

generally, the carrying on of the work of the regulator and the management of internal affairs of the regulator; and

(

b) establish conflict of interest guidelines respecting persons employed by the regulator under subsection 25(1).

1986 c37 s23; 2025 c4 s25

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Chief executive officer

(1)There shall be a chief executive officer of the regulator who,

(

a) where both the federal government and the provincial government appoint the chairperson as chief executive officer, is chairperson of the regulator; or

(

b) in other cases, is to be appointed by the regulator by means of an open competition.

(2) The appointment of a chief executive officer under paragraph (1)(

b) is subject to the approval of both governments.

(3) Where either government fails to make an appointment under paragraph (1)(

a) or to approve the appointment of a chief executive officer under paragraph (1)(b), the chief executive officer shall be appointed by both the federal government and the provincial government after having been selected in accordance with

section 12 and that

section applies, with the modifications that the circumstances require, to the selection of the chief executive officer.

(4) Subsection 13(1) applies, with the modifications that the circumstances require, to the appointment of the chief executive officer under paragraph (1)(

a) or subsection (3).

(5) The regulator shall designate a person to act as chief executive officer during an absence or incapacity of that officer or vacancy in the office of chief executive officer and that person, while acting as chief executive officer, has and may exercise the powers and perform the duties and functions of that office.

1986 c37 s24; 2025 c4 s26

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Staff of regulator

(1)The regulator may, on the recommendation of the chief executive officer, employ other officers and employees that are necessary to properly perform the duties and functions of the regulator under this Act and the Atlantic Accord.

(2) A person employed under subsection (1) shall be appointed on the basis of

merit.

(3) Except as provided in subsections (4) and (5), a person employed under subsection (1) is considered not to be employed in the public service of Canada

or of the province.

(4) Notwithstanding the Public Service Commission Act,

for the purpose of being eligible to enter competitions under that Act and for the purpose of

section 12 of that Act, a person who, immediately before becoming employed by the regulator, was employed in the public service of the province shall be considered to be a person employed in the public service in the province in a position of an occupational nature and at a level equivalent to the position in which that person is employed by the regulator.

(5) Notwithstanding the Public Service Commission Act,

for the purpose of being eligible to enter competitions under that Act and for the purpose of

section 12 of that Act, a person who, immediately before becoming employed by the regulator, was not employed in the public service of the province shall, 2 years after becoming employed by the regulator, be considered to be a person employed in the public service of the province in a position of an occupational nature and at a level equivalent to the position in which that person is employed by the regulator.

1986 c37 s25; 2025 c4 s27

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Auditor

The regulator shall appoint an auditor of the regulator, for the term that is set by the regulator, for the purposes of auditing the financial statements of the regulator.

1986 c37 s26; 2025 c4 s28

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Audit and evaluation committee

26.1

(1)The regulator shall appoint an audit and evaluation committee consisting of at least 3 members of the regulator and fix the duties and functions of the committee and may, by by-law, provide for the payment of expenses to the members of the committee.

(2) In addition to other duties and functions that it is required to perform, the audit and evaluation committee shall cause internal audits to be conducted to ensure that the officers and employees of the regulator act in accordance with management systems and controls established by the regulator.

2013 c3 s5 ; 2025 c4 s29

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Budget and appropriation

(1)The chief executive officer shall, in respect of each financial year, prepare a budget for the regulator sufficient to permit the regulator to properly exercise its powers and perform its duties and functions.

(2) Following approval of the budget by the regulator, the budget shall be submitted to the federal minister and the provincial minister, at the time that may be specified by each minister, for their consideration and approval.

(3) Where it appears that the actual aggregate of the expenditures of the regulator in respect of a financial year is likely to be substantially greater or less than that estimated in its budget in respect of that financial year, the regulator shall submit to both ministers for their consideration and approval a revised budget in respect of that financial year containing the particulars that may be requested by either minister.

(4) The provincial government shall pay one half of the aggregate of the expenditures set out in the budget or revised budget, where applicable, submitted and approved under this

section in respect of each financial year.

(4.1) Notwithstanding subsection (4), the chief executive officer may include in the budget or revised budget, as applicable, expenditures associated with the specific requirements of one government which shall be paid entirely by that government.

(5) Subject to another Act of the Legislature that appropriates money for the payment required by subsection (4), the sums required for that payment shall be paid out of the Consolidated Revenue Fund as required.

1986 c37 s27; 2025 c4 s30

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Access to books and accounts

Both the federal minister and the provincial minister are entitled to have access to the books and accounts of the regulator.

1986 c37 s28; 2025 c4 s31

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Annual report

(1)The regulator shall, in respect of each financial year, prepare a report and submit it to the federal minister and the provincial minister not later than 90 days after the expiration of that financial year.

(2) Each annual report submitted under subsection (1) shall contain an audited financial statement and a description of the activities of the regulator, including those relating to occupational health and safety, during the financial year covered by the report.

(3) The provincial minister shall lay the report referred to in this

section before the House of Assembly within the first 15 days during which the House of Assembly is sitting after the day the report is submitted to the provincial minister.

(4) Where it is not possible to lay the report before the House of Assembly within 30 days after the day the report is submitted to the provincial minister, the provincial minister shall publish that report within that 30 day

period.

1986 c37 s29; 2013 c3 s6 ; 2025 c4 s32

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Regulations

29.1

(1)Subject to

section 7, the Lieutenant-Governor in Council may make regulations respecting

(

a) the fees or charges, or the method of calculating the fees or charges, to be paid for the provision, by the regulator, of a service or a product under this Act;

(

b) 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 under the Impact Assessment Act

(Canada) ,

that are paid by

(

i) a person who makes an application for an authorization under paragraph 134(1)(

b) or subsection 134.01(1) or an application under subsection 135(2), or

(ii)

the holder of an operating licence issued under paragraph 134(1)(

a) or an authorization issued under paragraph 134(1)(

b) or subsection 134.01(1); and

(

c) the refund of all or part of a fee or charge referred to in paragraph (

a) or (b), or the method of calculating that refund.

(2) The amount of the fees or charges referred to in paragraph (1)(

a) shall not exceed the cost of providing the services or products.

(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 under the Impact Assessment Act

(Canada).

2015 c6 s3 ; 2025 c4 s33

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Remittance of fees and charges

29.2

(1) One half of the amounts of the fees and charges obtained in accordance with regulations made under

section 29.1 shall be paid to the Consolidated Revenue Fund in the prescribed time and manner.

(2) Notwithstanding subsection (1), where the amounts referred to in subsection (1) are related to the powers, duties or functions of the regulator referred to in subsection 159.2(1), those amounts shall be paid in their entirety to the Consolidated Revenue Fund.

2013 c3 s7 ; 2018 c39 s1 ; 2025 c4 s34

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Regulator's decision final

The exercise of a power or the performance of a duty by the regulator under this Act is final and not subject to the review or approval of either government or either minister.

1986 c37 s30; 2025 c4 s35

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Notice of fundamental decisions and advice by ministers

(1)Where a fundamental decision is made by the regulator, the regulator shall, immediately after making the decision, give written notice of that decision to the federal minister and the provincial minister.

(2) Within 30 days after receipt of a notice of a fundamental decision under subsection (1), the federal minister and the provincial minister shall each advise, in writing, the regulator and each other whether that minister approves or disapproves that decision and where the regulator does not receive the advice within those 30 days, the regulator shall be considered, for the purposes of

section 32, to be advised, in writing, on the expiration of that period, of the approval of that decision by that minister.

1986 c37 s31; 2025 c4 s36

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Conditions for implementation

(1)A fundamental decision shall not be implemented unless the regulator is advised, in writing, that

(

a) both the federal minister and the provincial minister approve that decision; or

(

b) in another case, the minister having authority in relation to that decision, as determined under

section 34, approves that decision and, where the other minister has exercised the power to suspend the approval of that decision under

section 39,

(

i) the period of suspension referred to in that

section has expired, or

(ii)

agreement is reached between both ministers to approve that decision,

whichever occurs first.

(2) Where the conditions referred to in subsection (1) have been satisfied in respect of a fundamental decision, that decision shall be implemented immediately by the regulator.

1986 c37 s32; 2025 c4 s37

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Definitions re ss.34 to 37

In this

section and sections 34 to 37

(a)

"security of supply", in respect of any period, means the anticipation of self-sufficiency during each of the 5 calendar years in that period, taking into account the aggregate of anticipated additions to productive capacity and anticipated adjustments to refining capacity;

(b)

"self-sufficiency" means a volume of suitable crude oil and equivalent substances available from domestic Canadian hydrocarbon producing capacity that is adequate to supply the total feedstock requirements of Canadian refineries necessary to satisfy the total refined product requirements of Canada, excluding those feedstock requirements necessary to produce specialty refined products; and

(c)

"suitable crude oil and equivalent substances" mean those substances that are appropriate for processing in Canadian refineries and that are potentially deliverable to Canadian refineries.

1986 c37 s33

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Self-sufficiency and security of supply

(1)Where, in respect of a period referred to in subsection 35(2) or (3), a determination is made that self-sufficiency and security of supply do not exist, the federal minister has authority in relation to a fundamental decision, other than a fundamental decision referred to in subsection (2), made during that period.

(2) The provincial minister has authority in relation to a fundamental decision referred to in paragraph 135(4)(a).

(3) Notwithstanding subsection (2), where the approval or disapproval by the provincial minister of a fundamental decision referred to in paragraph 135(4)(

a) would unreasonably delay the attainment of self-sufficiency or security of supply, the federal minister may substitute for the approval or disapproval of the provincial minister the approval or disapproval of the federal minister, and where the federal minister does so, that minister shall, for the purposes of this Act, be considered to have authority in relation to that fundamental decision.

(4) Where, in respect of a period referred to in subsection 35(3), a determination is made that self-sufficiency and security of supply exists, the provincial minister has authority in relation to a fundamental decision made during that period.

1986 c37 s34

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Determination binding

(1)Where a determination referred to in subsection 34(1) or (4) is made by both governments or by a panel under

section 36 or 37 or is considered to have been made under subsection (2), it is final and binding for the duration of the period in respect of which it is made.

(2) For the purpose of

section 34, the first period shall begin on January 1, 1986

and end on December 31, 1990 and, in respect of that period, a determination shall be considered to have been made, for all purposes of this Act, that self-sufficiency and security of supply do not exist.

(3) For the purpose of

section 34, each period following the period referred to in subsection (2) shall begin on the expiration of the period immediately preceding that period and shall be for a duration of 5 successive calendar years.

1986 c37 s35; 2025 c4 s38

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Where no agreement on determinations re self-sufficiency

(1)Consultation between the 2 governments with respect to the making of a determination referred to in subsection 34(1) or (4) shall be considered to begin one year before the expiration of every period in respect of which such a determination is made.

(2) Where the 2 governments fail to agree on a determination referred to in subsection (1) within the 3 months following the beginning of consultation between the governments, the determination shall be made by a panel consisting of 3 members, constituted in accordance with subsections 12(3) and (4), within 60 days after the appointment of the chairperson of the panel unless, at a time prior to that time, the 2 governments agree on the determination.

1986 c37 s36; 2025 c4 s39

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Determination of unreason-able delay

(1)Where, within 60 days after an approval or disapproval by the provincial minister under subsection 34(2), the 2 governments fail to agree whether the approval or disapproval would unreasonably delay the attainment of self-sufficiency or security of supply, that determination shall be made by a panel consisting of 3 members constituted in accordance with subsection (2), within 45 days after the appointment of the chairperson of the panel.

(2) For the purposes of subsection (1), one member of the panel shall be appointed by each government within 30 days after the 60 days referred to in subsection (1) and the chairperson of the panel shall be appointed in accordance with subsection 12(4) and for that purpose, subsection 12(4) applies, with the modifications that the circumstances require.

1986 c37 s37; 2025 c4 s40

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Determination not subject to review

Where a determination referred to in

section 36 or 37 is made by a panel under that section, that determination is not subject to be reviewed or set aside by a government, court or other body.

1986 c37 s38

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Suspensive vetoes

(1)The minister who does not have authority in relation to a fundamental decision, as determined under

section 34, may, on giving written notice to the regulator and the minister who has the authority, suspend, during a period of 90 days, the approval of the fundamental decision by the minister who has that authority.

(2) The period of 90 days referred to in subsection (1) begins on the day the regulator is advised, in accordance with

section 31, of the approval of the fundamental decision by the minister having authority in relation to the fundamental decision.

1986 c37 s39; 2025 c4 s41

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Supply shortfall

(1)Notwithstanding another provision of this Act, in the event of a sudden domestic or import supply shortfall of suitable crude oil and equivalent substances, the regulator shall, on request by the federal minister, increase production of suitable crude oil and equivalent substances, consistent with good oil field practice.

(2) 1986 c37 s40; 2025 c4 s42

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Regulator's recommendation

40.1

(1)The regulator shall notify the federal minister and provincial minister in writing of its offshore energy recommendation as soon as practicable after deciding to make the recommendation.

(2) The federal minister and the provincial minister shall, within 60 days after receiving the offshore renewable energy recommendation, notify the regulator, in writing, of that minister's decision to approve the offshore renewable energy recommendation, with or without variations, or to reject it.

(3) Notwithstanding 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.

(4) Notwithstanding subsection (2), the federal minister or the provincial minister may notify the regulator of that minister's decision with respect to an offshore renewable energy recommendation to make a call for bids beyond the 60 day

period referred to in subsection (2).

2025 c4 s43

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Publication

40.2

The regulator shall publish a notice of a decision referred to in subsection 40.1(2) in the Gazette

unless the decision is to reject the regulator's offshore renewable energy recommendation to make a call for bids.

2025 c4 s43

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

2025 c4 s43

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Regional security of supply

(1)For the purposes of this

section "shortfall of petroleum deliveries in the province" means deliveries of petroleum that are inadequate to supply, on commercial terms,

(

a) the end-use consumption and feedstock requirements of industrial facilities that are in place in the province on April 4, 1987;

(

b) the feedstock requirements of the refining facilities existing at Come-by-Chance if those facilities were operating at capacity on April 4, 1987

or a refining facility constructed in the province to replace those facilities; or

(

c) the feedstock requirements of a refining facility located in the province that was not in place on April 4, 1987, other than a facility referred to in paragraph (b), where the feedstock requirements required to satisfy the demand of industrial capacity, on April 4, 1987, in the Provinces of Nova Scotia, New Brunswick, Prince Edward Island and Newfoundland and Labrador have been met.

(2) Where there is a shortfall of petroleum deliveries in the province, the provincial minister may, after consulting with the federal minister, give notice to holders of production licences in the offshore area that the facilities in paragraphs (1)(a), (

b) and (

c) that are specified in the notice have, during the term of the notice, the first option to acquire, on commercial terms, petroleum produced in the offshore area unless a sales contract with respect to that petroleum has been entered into before the giving of the notice.

(3) A contract entered into

after the giving of the notice referred to in subsection (2) shall be considered to be varied or suspended to the extent necessary to give effect to that notice.

(4) The term of a notice given under subsection (2) is the period during which a shortfall of petroleum deliveries in the province continues to exist.

(5) Where the federal minister or a holder of a production licence to whom a notice has been given under subsection (2) does not agree with the provincial minister that a shortfall of petroleum deliveries in the province exists or continues to exist, the matter shall be referred to arbitration in the manner prescribed.

(6) Where it is determined as a result of

arbitration that a shortfall of petroleum deliveries in the province does not exist or continue to exist, the notice given under subsection (2) shall be considered to be revoked and stops having effect on the date on which the determination is made.

(7) Subject to

section 7, the Lieutenant-Governor in Council may make regulations

(

a) defining the expression "commercial terms" or providing for arbitration to establish commercial terms in a particular case;

(

b) governing, for the purposes of this section, arbitration and the making of arbitration orders and appeals from and enforcement of arbitration orders;

(

c) prescribing the manner of exercising a first option to acquire that is granted under a notice given under subsection (2); and

(

d) to give effect to the purpose of this section.

1986 c37 s41; 2001 cN-3.1 s2 ; 2013 c3 s8 ; 2025 c4 s44

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Ministerial directives

(1)The federal minister and the provincial minister may jointly issue to the regulator written directives in relation to

(

a) fundamental decisions;

(a.1)

offshore renewable energy recommendations;

(

b) decisions made by the regulator respecting the exercise of a power under paragraph 55(1)(b );

(

c) public reviews conducted under

section 44;

(

d) Canada-Newfoundland and Labrador benefits plans and any of the provisions of those plans;

(d.1)

the principles referred to in

section 86.15;

(d.2)

the development of guidelines and

interpretation notes issued under subsection 147(1) and

section 179.27; and

(

e) studies to be conducted by the regulator and advice with respect to policy issues to be given by the regulator to the federal minister and the provincial minister.

(1.1) The provincial minister as defined in

Part III.1 and the federal minister may jointly issue written directives to the regulator respecting

(

a) the development of guidelines and

interpretation notes with respect to occupational health and safety matters; and

(

b) the implementation of recommendations made by an auditor under

section 201.115

or made following an inquiry under

section 201.116.

(2) The regulator shall comply with a directive issued under this section.

(3) Directives issued under this

section are not subordinate legislation for the purpose of the Statutes and Subordinate Legislation Act.

(4) When a directive is issued under this section, a notice shall be published in the Gazette

that the directive has been issued and that the text of it is available for inspection by a person on request made to the regulator.

1986 c37 s42; 2001 cN-3.1 s2 ; 2013 c3 s9 ; 2025 c4 s45

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Plan for interest

(2) Where the minister having authority in relation to fundamental decisions, as determined under subsection 34(1) or (4), is of the opinion that a plan referred to in subsection (1) or (3) does not provide adequately for the attainment or maintenance of self-sufficiency and security of supply within the meaning of

section 33, that minister may reject the plan and, where that minister does so, shall inform the regulator of the reasons for so doing.

(3) Where the regulator is informed of a minister's rejection of its plan and the reasons for the rejection, the regulator shall, within 60 days after being so informed, prepare a revised plan taking into account

those reasons and submit the revised plan to the federal minister and the provincial minister.

1986 c37 s43; 2025 c4 s46

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Public review

(1)Subject to a directive issued under subsection 42(1), the regulator shall conduct a public review in relation to a potential development of a pool or field unless the regulator is of the opinion that it is not required on a ground the regulator considers to be in the public interest.

(2) Where a public review is conducted in relation to a potential development of a pool or field, the regulator may

(

a) establish terms of reference and a timetable that will permit a comprehensive review of all aspects of the development, including those within the authority of the Parliament of Canada or of the Legislature;

(

b) appoint one or more commissioners and, where there is to be more than one commissioner, appoint as commissioners

persons nominated by each of the governments in recognition of the authority of ministers of the Crown in right of Canada or of the province under

an Act of the Parliament of Canada or of the Legislature, other than this Act or the federal Act, in relation to the development;

(

c) where the potential development has been proposed to the regulator by a person, require that person to submit and make available for public distribution a preliminary development plan, an environmental impact statement, a socioeconomic impact statement, a preliminary Canada-Newfoundland and Labrador benefits plan and other plans specified by the regulator; and

(

d) require the commissioners to hold public hearings in appropriate locations in the province or elsewhere in Canada and report on those hearings to the regulator, the federal minister and the provincial minister.

(3) (4) The commissioners shall make their recommendations respecting a preliminary plan or statement submitted under paragraph (2)(

c) within 270 days after their receipt of the plan or statement or a shorter period that may be set by the regulator.

1986 c37 s44; 2015 c6 s4 ; 2025 c4 s47

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Public hearing

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.

2015 c6 s5 ; 2025 c4 s48

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Confidentiality

44.2

At a public hearing conducted under

section 44.1, the regulator may take any measures and make any order that it considers necessary to ensure the confidentiality of any information likely to be disclosed at the hearing if the regulator is satisfied that

(

a) disclosure of the information could reasonably be expected to result in a material loss or gain to a person directly affected by the hearing, or to prejudice the person's competitive position, and the potential harm resulting from the disclosure outweighs the public interest in making the disclosure; or

(

b) the information is financial, commercial, scientific or technical information that is confidential information supplied to the regulator and

( i

the information has been consistently treated as confidential information by a person directly affected by the hearing, and

(ii)

the person's interest in confidentiality outweighs the public interest in its disclosure.

2015 c6 s5 ; 2025 c4 s49

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Confidentiality - security

44.3

At a public hearing conducted under

section 44.1, the regulator may take any measures and make any order that it considers necessary to ensure the confidentiality of information that is likely to be disclosed at the hearing if the regulator is satisfied that

(

a) there is a real and substantial risk that disclosure of the information will impair the security of pipelines, as defined in paragraph 131(e), installations, facilities, vessels, aircraft or systems, including computer or communication systems, or methods employed to protect them; and

(

b) the need to prevent disclosure of the information outweighs the public interest in its disclosure.

2015 c6 s5 ; 2025 c4 s50

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Exception

44.4

The regulator shall not take any measures or make any order under

section 44.2 or 44.3 in respect of information or documentation referred to in paragraphs

115(5)(

a) to (

e) and ( i

2015 c6 s5 ; 2025 c4 s51

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Canada- Newfoundland

and Labrador

benefits plan

(1)In this

section "Canada-Newfoundland and Labrador benefits plan" means a plan for the employment of Canadians and, in particular, members of the labour force of the province and, subject to paragraph (3)(d), for providing manufacturers, consultants, contractors and service companies in the province and other parts of Canada with a fair opportunity to participate on a competitive basis in the supply of goods and services used in a proposed work or activity referred to in the benefits plan.

(2) Before the regulator approves a development plan under subsection 135(4) or authorizes a work or activity under paragraph 134(1)(b), a Canada-Newfoundland and Labrador benefits plan shall be submitted to and approved by the regulator, unless the regulator directs that it is not necessary to comply with that requirement.

(3) A Canada-Newfoundland and Labrador

benefits plan shall contain provisions intended to ensure that

(

a) before carrying out any work or activity in the offshore area, the corporation or other body submitting the plan shall establish in the province an office where appropriate levels of decision-making are to take place;

(

b) consistent with the Canadian Charter of Rights and Freedoms, individuals

(

c) expenditures shall be made for research and development to be carried out in the province and for education and training to be provided in the province; and

(

d) first consideration shall be given to services provided from within the province and to goods manufactured in the province, where those services and goods are competitive in terms of fair market price, quality and delivery.

(4) The regulator may require that a Canada-Newfoundland and Labrador benefits plan include provisions to ensure that disadvantaged individuals or groups have access to training and employment opportunities and to enable those individuals or groups or corporations owned

or cooperatives operated by them to participate in the supply of goods and services used in a proposed work or activity referred to in the benefits plan.

(5) In reviewing a Canada-Newfoundland and Labrador benefits plan, the regulator shall consult with both ministers on the extent to which the plan meets the requirements set out in subsections (1), (3) and (4).

(6) Subject to a directive issued under subsection 42(1), the regulator may approve a Canada-Newfoundland and Labrador benefits plan.

(7) The

definitions in

section 162 also apply in subsections (8) and (9).

(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 shall not be approved under this

section unless the regulator and the appropriate authority have agreed on its content.

(9) The regulator or the appropriate authority, or in respect of a transboundary pool extending into the jurisdiction of a foreign government, the federal minister, after having consulted the Minister of Foreign Affairs of Canada and the provincial minister, may, where they disagree about the content of the benefits plan submitted for approval, refer the matter to an expert in accordance with

section 179.16.

(10) Where a benefits plan has been referred to an expert under subsection (9), for the purpose of this section, the experts decision shall be considered to be

the regulator's approval of that plan.

1986 c37 s45; 1992 c15 s3 ; 2001 cN-3.1 s2 ; 2013 c3 s10 ; 2025 c4 s52

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Coordination

(

a) environmental regulation;

(

b) emergency measures;

(

c) coastguard and other marine regulation;

(c.1)

aviation regulation;

(

d) employment and industrial benefits for Canadians in general and the people of the province in particular and the review and evaluation procedures to be followed by both governments and the regulator in relation to those benefits;

(

e) occupational health and safety; and

(

f) other matters that are appropriate.

(2) The federal minister and the provincial minister shall be parties to a memorandum of understanding concluded in relation to a matter referred to in paragraph (1)(d).

1986 c37 s46; 2013 c3 s11 ; 2025 c4 s53

PART II

PETROLEUM AND OFFSHORE RENEWABLE ENERGY RESOURCES

2025 c4 s54

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Interpretation

(1)In this Part

(a)

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

( i

in the case of petroleum,

section 57, and

(ii)

in the case of offshore renewable energy,

section 86.6;

(b)

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

(c)

"commercial discovery area" means, in relation to a declaration of commercial discovery made under subsection 77(1) or (2), those portions of the offshore area described in the declaration;

(d)

"Crown reserve area" means,

( i

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

(ii)

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;

(e)

"former exploration agreement" means an exploration agreement under the Canada Oil and Gas Land Regulations;

(f)

"former lease" means an oil and gas lease under the Canada Oil and Gas Land Regulations;

(g)

"former permit" means an exploratory permit under the Canada Oil and Gas Land Regulations;

(h)

"former special renewal permit" means a special renewal permit under the Canada Oil and Gas Land Regulations;

( i

"holder" and "interest holder" means, in respect of an interest or a share in an interest, the person indicated, in the register maintained under Division VII, as the holder of the interest or the share;

(j)

"interest" means,

( i

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

(ii)

in relation to offshore renewable energy, a submerged land licence;

(k)

"interest owner" means the interest holder who holds an interest or the group of interest holders who hold all of the shares in an interest;

(l)

"prescribed" means

( i

in the case of a form or the information to be given on a form, prescribed by the regulator, and

(ii)

in other cases, prescribed by regulations made by the Lieutenant-Governor in Council;

(m)

"share" means, with respect to an interest, an undivided share in the interest or a share in the interest held in accordance with

section 65;

(n)

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

( i

demonstrates, through a formation flow test approved by the regulator, the existence of hydrocarbons in that feature, and

(ii)

having regard to geological and engineering factors, suggests the existence of an accumulation of hydrocarbons that has potential for sustained production; and

(o)

"significant discovery area" means, in relation to a declaration of significant discovery made under subsection 70(1) or (2), those portions of the offshore area described in the declaration.

(2) Nothing in this Part shall be construed so as to

abrogate or derogate from existing aboriginal and treaty rights of the aboriginal peoples of Canada

under

section 35 of the Constitution Act, 1982.

1986 c37 s47; 2025 c4 s55

DIVISION I

GENERAL

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Giving notice

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

1986 c37 s48

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Binding on the Crown

This

Part is binding on the Crown in right of Canada

or the province.

1986 c37 s49

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Delegation

1986 c37 s50; 2025 c4 s56

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Advisory bodies

(1)The regulator may appoint and fix the terms of reference of the advisory bodies that the regulator considers appropriate to advise the regulator with respect to the matters relating to the administration or operation of this Part or

Part III that are referred to them by the regulator.

(2) The members of an advisory body appointed under subsection (1) may be paid for their services the remuneration and expenses that are fixed by the regulator.

1986 c37 s51; 2025 c4 s57

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Representatives

(1)Where an interest owner consists of 2 or more holders, the holders shall, in the manner prescribed, appoint one of their number to act as representative of the interest owner for the purposes of this Part, but those holders may, with the consent of the regulator, appoint different representatives for different purposes.

(2) Where an interest owner consisting of 2 or more holders fails to appoint a representative for the purposes of this Part, the regulator may designate one of the holders as the representative of the interest owner for those purposes.

(3) An interest owner is bound by the acts or omissions of the appointed or designated representative of the interest owner with respect to a matter to which the authority of the representative extends.

(4) A representative of an interest owner appointed or designated under this

section shall perform the duties in respect of the purposes for which the representative has been appointed or designated, and an operating agreement or other similar arrangement in force in respect of the relevant interest of that interest owner stands varied or amended to the extent necessary to give effect to this subsection.

1986 c37 s52; 2025 c4 s58

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Prohibition orders issuance of interests

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

(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 the purposes and under the conditions set out in the order, prohibit the issuance of submerged land licences in respect of the portions of the offshore area specified in the order.

(2) The federal minister may, by order, in the case of a disagreement with a government concerning the location of an international boundary and under the conditions that may be set out in the order, prohibit the issuing of interests in respect of the portions of the offshore area that are specified in the order.

(3) A direction issued under subsection (1.1) is not subordinate legislation for the purposes of the Statutes and Subordinate Legislation Act

1986 c37 s53; 2025 c4 s59

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Surrender of interests

(1)An interest owner may, in the manner prescribed and subject to the requirements that may be prescribed respecting the minimum geographical area to which an interest may relate, surrender an interest in respect of all or a portion of the offshore area subject to the interest.

(2) Any liability of an interest owner or interest holder to the Crown in right of Canada or in right of the province, either direct or by way of indemnity, that exists at the time of a surrender under subsection (1) is not affected by the surrender.

1986 c37 s54

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Prohibition orders activities

(1) The regulator may, by order, prohibit an interest owner specified in the order from commencing or continuing work or activity on the portions of the offshore area or a part of the offshore area that are subject to the interest of that interest owner, where there is

(

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.

(2) Notwithstanding subsection (1), a n order of the regulator made in accordance with paragraph (1)(

a) is,

(

a) with respect to a petroleum-related interest, subject to sections 31 to 40; and

(

b) with respect to a submerged land licence, is subject to sections 40.1 to 40.3.

(3) The federal minister may, in the case of a disagreement with a government concerning the location of an international boundary, by order, prohibit an interest owner specified in the order from beginning or continuing work or activity on the portions of the offshore area or a part of the offshore area that is subject to the interest of that interest owner.

(4) Where, because of an order made under subsection (1) or (3), a requirement in relation to an interest cannot be complied with while the order is in force, compliance with the requirement is suspended until the order is revoked.

(5) The term of an interest that is subject to an order under subsection (1) or (3) and the period provided for compliance with a requirement in relation to the interest are extended for a period equal to the period that the order is in force.

(6) Nothing in this

section affects the authority of the regulator to relieve a person from a requirement in relation to an interest or under this Part or the regulations.

1986 c37 s55; 2025 c4 s60

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Prohibitions regulations

55.1

Subject to

section 7, the Lieutenant-Governor in Council may, for the purpose of the protection of the environment, make regulations prohibiting, in respect of a 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 Lieutenant-Governor in Council, may be identified under

an Act of Parliament of Canada or

an Act of the Legislature as an area for environmental or wildlife conservation or protection,

(

a) the commencement or continuation of

( i

a 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.

2025 c4 s61

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Negotiations for compensation federal minister

55.2

(1)The federal minister may enter into

negotiations with an interest owner for the determination of compensation that may be granted to the interest owner for the surrender of the interest in respect of all or a portion of the offshore area subject to the interest, where all or a 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 of Canada as an area for environmental or wildlife conservation or protection; or

(

b) subject to regulations made under

section 55.1.

(2) The federal minister shall, not later than 60 days before entering into

the negotiations referred to in subsection (1), give written notice to the provincial minister of the federal ministers intention to enter into negotiations with the interest owner within the period specified in the notice referred to in subsection (3).

(3) The federal minister shall, not later than 30 days before entering into

the negotiations referred to in subsection (1), give written notice to the interest owner, and provide a copy of the notice to the regulator, indicating the federal ministers intention to enter into negotiations with the interest owner within the period specified in the notice.

(4) The federal minister and the provincial minister may, by order, jointly cancel the interest in respect of all or a 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 of Canada as an area for environmental or wildlife conservation or protection, where

(

a) the interest owner did not enter into negotiations with the federal minister within the period specified in the notice provided to the interest owner under subsection (3 );

(

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.

(5) The federal minister shall specify in the order the amount of compensation to be granted to the interest owner under subsection 55.3(2) in respect of the cancellation of the interest.

(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.

(7) Where an interest referred to in subsection (1) is surrendered or where 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.

2025 c4 s61

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Compensation surrender

55.3

(1)Where an interest owner surrenders an interest referred to in subsection 55.2(1), the Crown in right of Canada, may grant the compensation that is determined by negotiations with the federal minister for the surrender of the interest.

(2) Where an interest is cancelled by an order made under subsection 55.2(4), the Crown in right of Canada may grant an interest owner the compensation that is specified in the order.

(3) Where a petroleum-related interest is cancelled by an order made under subsection 55.2(4), it is subject to

section 120 in respect of the amount of the compensation that may be granted to the interest holder, and, for the purposes of this subsection, a reference to the regulator in

section 120 shall be read as a reference to the federal minister.

(4) A person shall not have the right to claim or receive compensation, damages, indemnity or other form of relief from the Crown in right of Canada or from a servant or agent of the Crown in right of Canada for an acquired, vested, future or potential right or entitlement that is affected by a surrender of an interest referred to in subsection 55.2(1) or a cancellation of an interest referred to in subsection 55.2(4), other than compensation that may be granted to an interest owner under this section.

2025 c4 s61

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Negotiations for compensation provincial minister

55.4

(1)The provincial minister may enter into

negotiations with an owner of a petroleum-related interest for a determination of compensation that may be granted to the interest owner for the surrender of the interest in respect of all or a portion of the offshore area subject to the interest, where all or a 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 as an area for environmental or wildlife conservation or protection; or

(

b) subject to regulations made under

section 55.1.

(2) The provincial minister shall, not later than 60 days before entering into

the negotiations referred to in subsection (1), give written notice to the federal minister of the provincial ministers intention to enter into negotiations with the interest owner within the period specified in the notice referred to in subsection (3).

(3) The provincial minister shall, not later than 30 days before entering into

the negotiations referred to in subsection (1), give written notice to the interest owner, and provide a copy of the notice to the regulator, indicating the provincial ministers intention to enter into negotiations with the interest owner within the period specified in the notice.

(4) The provincial minister and the federal minister may, by order, jointly cancel an interest in respect of all or a 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, may be identified under

an Act of the Legislature as an area for environmental or wildlife conservation or protection, where

(

a) the interest owner did not enter into negotiations with the provincial minister within the period specified in the notice provided to the interest owner under subsection (3 );

(

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.

(5) The provincial minister shall specify in the order the amount of compensation to be granted to the interest owner under subsection 55.5(2) in respect of the cancellation of the interest.

(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.

(7) Where an interest referred to in subsection (1) is surrendered or 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.

2025 c4 s61

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Compensation surrender or cancellation

55.5

(1)Where an interest owner surrenders an interest referred to in subsection 55.4(1), the Crown in right of the province may grant the compensation that is determined by negotiations with the provincial minister for the surrender of the interest.

(2) Where an interest is cancelled by an order made under subsection 55.4(4), the Crown in right of the province may grant an interest owner the compensation that is specified in the order.

(3) An order made under subsection 55.4(4) is subject to

section 120 in respect of the amount of the compensation to be granted to an interest holder, and, for the purposes of this subsection, a reference to the regulator in

section 120 shall be read as a reference to the provincial minister.

(4) A person shall not have the right to claim or receive compensation, damages, indemnity or other form of relief from the Crown in right of the province or from a servant or agent of the Crown in right of the province for an acquired, vested, future or potential right or entitlement that is affected by a surrender of an interest referred to in subsection 55.4(1) or a cancellation of an interest referred to in subsection 55.4(4), other than compensation that may be granted to an interest owner under this section.

2025 c4 s61

DIVISION II

GENERAL RULES RELATING TO ISSUANCE OF PETROLEUM-RELATED INTERESTS

2025 c4 s62

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Authority to issue petroleum-related interests

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

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

(3) The application of a petroleum-related interest may be restricted to the geological formations and to the substances that may be specified in the petroleum-related interest.

(4) Subsection (3) does not apply to a petroleum-related interest that

(

a) is in force or in respect of which negotiations were completed before April 4, 1987

in relation to a portion of the offshore area; or

(

b) immediately succeeds an interest referred to in paragraph (

a) in relation to that portion of the offshore area where that portion was not a Crown reserve area on the expiration

1986 c37 s56; 2025 c4 s63

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Call for bids petroleum-related interests

(1) The regulator shall not issue a petroleum-related interest in relation to Crown reserve areas unless

(

a) prior to issuing the petroleum-related 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 62; and

(

b) the petroleum-related interest is issued to the person who submitted, in response to the call, the bid selected by the regulator in accordance with subsection 58(1).

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

(3) A request received by the regulator to make a call for bids for the issuance of a petroleum-related interest in relation to particular portion

of the offshore area shall be considered by the regulator in selecting the portions of the offshore area to be specified in the call for bids.

(4) A call for bids shall specify

(

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

(

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

(c)

(d)

(

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

(

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

(

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

(5) Unless otherwise prescribed, a call for bids shall be published at least 120 days before the closing date for the submission of bids specified in the call.

1986 c37 s57; 2025 c4 s64

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Selection of bids and publication

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

(a)

(

b) the selection is made on the basis of

the criterion specified in the call.

(2) (3) Where a petroleum-related interest is to be issued as a result of

(4) a call for bids as soon as practicable after the issuing of the petroleum-related interest.

1986 c37 s58; 2025 c4 s65

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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.

(2) Where 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 6 months after the closing date specified in the call for the submission of 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.

1986 c37 s59; 2025 c4 s66

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Exception to call for bids - petroleum

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

(

a) the portion of the offshore area to which the petroleum-related interest is to apply has, through error or inadvertence, become a Crown reserve area and the interest owner who last held a petroleum-related interest 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 petroleum-related interest; or

(

b) the regulator is issuing the petroleum-related interest to an interest owner in exchange for the surrender by the interest owner, at the request of the regulator, of another petroleum-related interest or a share in another petroleum-related interest, in relation to all or a portion of the offshore area subject to that other petroleum-related interest.

(2) 1986 c37 s60; 2025 c4 s67

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Interest not vitiated

Where a petroleum-related interest has been issued, it is not vitiated by reason only of a failure to comply with a requirement set out in sections 57 to 60 respecting the form and content of, and time and manner of publishing, a notice required by those sections in relation to that interest.

1986 c37 s61; 2025 c4 s68

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Manner of publication of notices

A notice required to be published by the regulator under subsection 57(1), subsection 58(2) or (4), subsection 60(2) or subsection 67(2) shall be published in the Gazette

and in other publications the regulator considers appropriate and, notwithstanding those subsections, may contain only a

summary of the information required to be published and a statement that the full text is available for inspection by a person on request made to the regulator.

1986 c37 s62; 2025 c4 s69

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Regulations

2013 c3 s12

DIVISION III

EXPLORATION

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Rights under exploration licences

An exploration licence confers, with respect to the portions of the offshore area to which the licence applies,

(

a) the right to explore for, and the exclusive right to drill and test for, petroleum;

(

b) the exclusive right to develop those portions of the offshore area in order to

produce petroleum; and

(

c) the exclusive right, subject to compliance with the other provisions of this Part, to obtain a production licence.

1986 c37 s64

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Shares

A share in an exploration licence may, subject to the requirements that may be prescribed, be held with respect to a portion only of the offshore area subject to the exploration licence.

1986 c37 s65

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Terms, conditions and regulations

(2) 1986 c37 s66; 2013 c3 s13 ; 2025 c4 s70

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Amendment and consolidation of exploration licence

(1)The regulator, subject to sections 31 to 40, and the interest owner of an exploration licence may, by agreement, amend a provision of the exploration licence in a manner consistent with this Part or the regulations and may, subject to subsection (2), amend the licence to include other portions of the offshore area.

(2) (3)

1986 c37 s67; 2025 c4 s71

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Effective date of exploration licence

(1)The effective date of an exploration licence is the date specified in the licence as the effective date.

(2) Subject to subsection (3) and

section 69, the term of an exploration licence shall not exceed 9 years from the effective date of the licence and shall not be extended or renewed.

(3) Subject to

section 69, the term of an exploration licence entered into or in respect of which negotiations have been completed before December 20, 1985

may be renegotiated once only for a further term not exceeding 4 years and afterward the term of the exploration licence shall not be renegotiated, extended or renewed.

(4) On the expiration of an exploration licence, the portions of the offshore area to which the exploration licence related and that are not subject to a production licence

or a significant discovery licence become Crown reserve areas.

1986 c37 s68

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Continuation of exploration licence where drilling started

(1)Where, before the expiration of the term of an exploration licence, the drilling of a well has been started on a portion of the offshore area to which the exploration licence applies, the exploration licence continues in force while the drilling of that well is being pursued diligently and for so long afterward as may be necessary to determine the existence of a significant discovery based on the results of that well.

(2) Where the drilling of a well referred to in subsection (1) is suspended because of dangerous or extreme weather conditions or mechanical or other technical problems encountered in the drilling of the well, the drilling of that well shall, for the purposes of subsection (1), be considered to be

being pursued diligently during the period of suspension.

(3) Where the drilling of a well referred to in subsection (1) cannot be completed for mechanical or other technical problems and where, within 90 days after the cessation of drilling operations with respect to that well, or a longer period that the regulator determines, the drilling of another well is started on a portion of the offshore area that was subject to the exploration licence, the drilling of that other well shall, for the purposes of subsection (1), be considered to have started before the expiration of the term of the exploration licence.

1986 c37 s69; 2025 c4 s72

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Declaration of significant discovery

(1)Subject to

section 120, where a significant discovery has been made on a portion of the offshore area that is subject to an interest or a share in an interest held in accordance with

section 65, the regulator shall, on the application of the interest holder of the interest or the share of the interest made in the form and manner and containing the information that may be prescribed, make a written declaration of significant discovery in relation to those portions of the offshore area in respect of which there are reasonable grounds to believe that the significant discovery may extend.

(2) Where a significant discovery has been made on a portion of the offshore area, the regulator may, by order subject to

section 120, make a declaration of significant discovery in relation to those portions of the offshore area in respect of which there are reasonable grounds to believe the significant discovery may extend.

(3) A declaration made under subsection (1) or (2) shall describe the portions of the offshore area to which the declaration applies.

(4) Subject to subsection (5), where a declaration of significant discovery is made under subsection (1) or (2) and, based on the results of further drilling, there are reasonable grounds to believe that a discovery is not a significant discovery or that the portions of the offshore area to which the significant discovery extends differ from the significant discovery area, the regulator may, subject to

section 120 and as appropriate in the circumstances,

(

a) amend the declaration of significant discovery by increasing or decreasing the significant discovery area; or

(

b) revoke the declaration.

(5) A declaration of significant discovery shall not be amended to decrease the significant discovery area or revoked earlier than

(

a) in the case of a significant discovery area that is subject to a significant discovery licence issued under subsection 72(1), the date on which the exploration licence referred to in that subsection expires; and

(

b) in the case of a significant discovery area that is subject to a significant discovery licence issued under subsection 72(2), 3 years after the effective date of the significant discovery licence.

(6) A copy of a declaration of significant discovery and of an amendment or revocation of it made under this

section in relation to a portion of the offshore area subject to an interest shall be sent by registered mail to the interest owner of that interest.

1986 c37 s70; 1987 c25 s2; 2025 c4 s73

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Rights under significant discovery licence

A significant discovery licence confers, with respect to the portions of the offshore area to which the licence applies,

(

a) the right to explore for, and the exclusive right to drill and test for, petroleum;

(

b) the exclusive right to develop those portions of the offshore area in order to

produce petroleum; and

(

c) the exclusive right, subject to compliance with the other provisions of this Part, to obtain a production licence.

1986 c37 s71

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Significant discovery licence in relation to lands subject to exploration licences

(1)Where a declaration of significant discovery is in force and all or a portion of the significant discovery area is subject to an exploration licence or a share in an exploration licence held in accordance with

section 65, the regulator shall, on application of the interest holder of the exploration licence or the share made in the form and manner and containing the information that may be prescribed, issue to the interest holder a significant discovery licence in respect of all portions of the significant discovery area that are subject to the exploration licence or the share.

(2) Where a declaration of significant discovery is in force and the significant discovery area extends to a Crown reserve area, the regulator may, after making a call for bids in relation to that Crown reserve area or a portion of it and selecting a bid submitted in response to the call in accordance with subsection 58(1), issue a significant discovery licence to the person who submitted that bid in relation to the Crown reserve area specified in the call.

(3) The making of a call for bids and the issuing of a significant discovery licence by the regulator under subsection (2) is subject to sections 31 to 40.

(4) 1986 c37 s72; 2025 c4 s74

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Reduction or increase of area subject to significant discovery licence

(1)Where a significant discovery area in relation to a declaration of significant discovery is decreased under an amendment made under subsection 70(4), a significant discovery licence that was issued on the basis of

that declaration shall be amended by decreasing accordingly the portions of the offshore area subject to that licence.

(2) Where a significant discovery area in relation to a declaration of significant discovery is increased under an amendment made under subsection 70(4), a significant discovery licence that was issued on the basis of that declaration shall be amended to include all portions of the amended significant discovery area that are subject to an exploration licence held by the interest owner of that significant discovery licence at the time the significant discovery area is so increased.

1986 c37 s73

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Term of licences

(1)On the issuing of a significant discovery licence under subsection 72(1) with respect to a significant discovery area, an exploration licence stops having effect in relation to that significant discovery area.

(2) The effective date of a significant discovery licence is the date of application for the licence.

(3) 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.

(3.1) Where an interest owner has made an application for a declaration of commercial discovery referred to in subsection 77(1) or for the issuance of a production licence referred to in subsection 80(1), the term of the significant discovery licence is extended until the regulator makes a decision

respecting that application.

(3.2) The extension to the term of a significant discovery licence under subsection (3.1) remains in force after the regulator makes a declaration of commercial discovery, but the regulator may cancel the extension where the interest owner fails to submit an application

for the issuance of a production licence within a reasonable time.

(4) On the expiration of a significant discovery licence, a portion of the offshore area to which the significant discovery licence related and that is not subject to a production licence becomes a Crown reserve area.

1986 c37 s74; 2025 c4 s75

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Drilling orders

(1)Subject to sections 31 to 40, the regulator may, after making a declaration of significant discovery, by order subject to

section 120, require the interest owner of an interest in relation to a portion of the significant discovery area to drill a well on a portion of the significant discovery area that is subject to that interest, in accordance with the directions that may be set out in the order, and to start the drilling within one year after the making of the order or within the longer period that the regulator specifies in the order.

(2) Notwithstanding subsection (1), an order may not be made under subsection (1) with respect to an interest owner who has completed a well on the relevant portion of the offshore area within 6 months after the completion of that well.

(3) An order may not be made under subsection (1) within the 3 years immediately following the well termination date of the well indicating the relevant significant discovery.

(4) Notwithstanding subsection (1), an order made under subsection (1) may not require an interest owner to drill more than one well at a time on the relevant portion of the offshore area.

(5) For the purposes of subsection (3), "well termination date" means the date on which a well has been abandoned, completed or suspended in accordance with applicable drilling regulations.

1986 c37 s75; 2015 c6 s6 ; 2025 c4 s76

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Information may be disclosed

(1)The regulator may, notwithstanding

section 115, provide information or documentation relating to a significant discovery to an interest owner who requires the information or documentation to help the interest owner in complying with an order made under subsection 75(1).

(2) An interest owner shall not disclose information or documentation provided to that interest owner under subsection (1) except to the extent necessary to enable the interest owner to comply with an order made under subsection 75(1).

1986 c37 s76; 2025 c4 s77

DIVISION IV

PRODUCTION

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Application for declaration of commercial discovery

(1)Subject to

section 120, where a commercial discovery has been made on a portion of the offshore area that is subject to an interest or a share in an interest held in accordance with

section 65, the regulator shall, on the application of the interest holder of the interest or the share, made in the form and manner and containing the information that may be prescribed, make a written declaration of commercial discovery in relation to those portions of the offshore area in respect of which there are reasonable grounds to believe that the commercial discovery may extend.

(2) Subject to

section 120, where a commercial discovery has been made on a portion of the offshore area, the regulator may, by order, make a declaration of commercial discovery in relation to those portions of the offshore area in respect of which there are reasonable grounds to believe that the commercial discovery may extend.

(3) Subsections 70(3), (4) and (6) apply, with the modifications that the circumstances require, with respect to a declaration made under subsection (1) or (2).

1986 c37 s77; 1990 c21 s1; 2025 c4 s78

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Order to reduce term of interest

(1)Subject to sections 31 to 40, the regulator may, at any time after making a declaration of commercial discovery, give notice to the interest owner of an interest in relation to a portion of the commercial discovery area where commercial production of petroleum has not started before that time stating that, after the period of not less than 6 months that may be specified in the notice, an order may be made reducing the term of that interest.

(2) During the period specified in a notice sent to an interest owner under subsection (1), the regulator shall provide a reasonable opportunity for the interest owner to make the submissions that the interest owner considers relevant to determining whether the regulator should make an order reducing the term of the relevant interest.

(3) Subject to sections 31 to 40, where the regulator is of the opinion that it is in the public interest, the regulator may, not later than 6 months after the expiration of the period specified in a notice in respect of an interest sent under subsection (1), by order subject to

section 120, reduce the term of the interest to 3 years after the date the order is made or a longer period that may be specified in the order.

(4) Where an order is made under subsection (3), an interest in respect of a portion of the offshore area within the area to which the interest that is the subject of the order applied on the date the order was made stops having effect at the end of the period specified in the order.

(5) Notwithstanding subsection (4), where commercial production of petroleum on a portion of the offshore area referred to in subsection (4) starts before the expiration of the period specified in an order made under subsection (3) or the period extended under subsection (6), the order stops having effect and is considered to have been vacated.

(6) Notwithstanding subsection (4) and subject to sections 31 to 40, the regulator may extend the period specified in an order made under subsection (3) or may revoke the order.

1986 c37 s78; 2025 c4 s79

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Rights under production licence

(1)A production licence confers, with respect to the portions of the offshore area to which the licence applies,

(

a) the right to explore for, and the exclusive right to drill and test for, petroleum;

(

b) the exclusive right to develop those portions of the offshore area in order to produce petroleum;

(

c) the exclusive right to produce petroleum from those portions of the offshore area; and

(

d) title to the petroleum so produced.

(2) 1986 c37 s79; 1987 c25 s3; 2025 c4 s80

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Issuing of production licence

(1)Subject to

section 86, the regulator, on application made in the form and manner and containing the information that may be prescribed,

(

a) shall issue a production licence to one interest owner, in respect of any one commercial discovery area or portion of the commercial discovery area that is subject to an exploration licence

or a significant discovery licence held by that interest owner; and

(b)

(

i) one interest owner, in respect of 2 or more commercial discovery areas or portions of commercial discovery areas that are subject to an exploration licence

or a significant discovery licence held by that interest owner, or

(ii)

2 or more interest owners, in respect of one or more commercial discovery areas or portions of commercial discovery areas that are subject to an exploration licence

or a significant discovery licence held by any of those interest owners.

(2) Where a declaration of commercial discovery is in force and the commercial discovery area extends to a Crown reserve area, the regulator may, after making a call for bids in relation to that Crown reserve area or a portion of the Crown reserve area and selecting a bid submitted in response to the call in accordance with subsection 58(1), issue a production licence to the person who submitted that bid in relation to the Crown reserve area specified in the call.

(3) The making of a call for bids and the issuing of a production licence by the regulator under subsection (2) is subject to sections 31 to 40.

(4) 1986 c37 s80; 1992 c47 s1 ; 2025 c4 s81

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Consolidation of production licences

1986 c37 s81; 2025 c4 s82

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Reduction and increase of area subject to production licence

(1)Where a commercial discovery area in relation to a declaration of commercial discovery is decreased under an amendment made under subsection 70(4) and subsection 77(3), a production licence that was issued on the basis of

that declaration shall be amended by decreasing accordingly the portions of the offshore area subject to that licence.

(2) Where a commercial discovery area in relation to a declaration of commercial discovery is increased under an amendment made under subsection 70(4) and subsection 77(3), a production licence that was issued on the basis of that declaration shall be amended to include all portions of the amended commercial discovery area that are subject to an exploration licence or a significant discovery licence held by the interest owner of that production licence at the time the commercial discovery area is so increased.

1986 c37 s82

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Term of production licence

(1)A production licence is effective from the date it is issued and shall be issued for a term of 25 years.

(2) Notwithstanding subsection (1), where a declaration of commercial discovery on the basis of

which a production licence was issued is, under subsection 70(4) and subsection 77(3), revoked or amended to exclude all portions of the commercial discovery area in relation to which the production licence was issued, the production licence stops being in force.

(3) Where, on the expiration of the term of a production licence, petroleum is being produced commercially, the term is extended for that period afterward during which commercial production of petroleum continues.

(4) (

a) commercial production of petroleum from the portions of the offshore area subject to the licence stops before or on the expiration of the 25 year

term of the production licence and the regulator has reasonable grounds to believe that commercial production from the portions of the offshore area will recommence; or

(

b) the regulator has reasonable grounds to believe that commercial production of petroleum from those portions of the offshore area will, before or after the expiration of the term of the licence, stop during a period and afterward recommence.

1986 c37 s83; 2025 c4 s83

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Lapsing of other interests

(1)Notwithstanding subsection 74(3), on the issuing of a production licence, an interest