Newfoundland and Labrador Gazette, Part II — 26 February 2016 (Extraordinary Issue) — Regulations NLR 4/16, NLR 5/16, NLR 6/16, NLR 7/16

NLG 2016-02-26

Newfoundland and Labrador — Gazette

THE NEWFOUNDLAND AND LABRADOR GAZETTE E XTRAORDINARY

Part II PUBLISHED BY AUTHORITY ST . JOHN'S, FRIDAY, FEBRUARY 26, 2016 NEWFOUNDLAND AND LABRADOR REGULATIONS NL R 4/16 NLR 5/16 NLR 6/16 NLR 7/16

Extraordinary Gazette 3 February 26, 2016 NEWFOUNDLAND AND LABRADOR REGULATION 4/16 Proclamation bringing Act into force (SNL2015 c6) with the exception of in S.11 ss.134.5(1) in S.15 ss.156.1(1), (2) and (3) (In force February 26, 2016) under

An Act to Amend the Canada-Newfoundland and Labrador Atlantic Accord Implementation Newfoundland and Labrador Act (O.C. 2016-021) (Filed February 26, 2016) ELIZABETH THE SECOND, by the Grace of God of the United Kingdom, Canada and Her Other Realms and Territories QUEEN, Head of the Commonwealth, Defender of the Faith. HEATHER JACOBS Deputy Attorney General J. DEREK GREEN Administrator TO ALL TO WHOM THESE PRESENTS SHALL COME, GREETING; A PROCLAMATION

WHEREAS in and by

section 25 of

An Act to Amend the Canada-Newfoundland and Labrador Atlantic Accord Implementation Newfoundland and Labrador Act, SNL2015

Chapter 6 (the “Act”), it is provided that the Act, or a s ection, subsection, paragraph or subparagraph shall come into force on a date to be fixed by Proclamation of Our Lieutenant Governor in Council; AND

WHEREAS it is deemed expedient that the Act shall now come into force; NOW KNOW YE, THAT WE, by and with the advice of Our Executive Council of Our Province of Newfoundland and Labrador, do by this our Proclamation declare and direct that

An Act to Amend the

Proclamation bringing Act into force (SNL2015 c6) with the exception of in S.11 ss.134.5(1) in S.15 ss.156.1(1), (2) and (3) (In force February 26, 2016) 4/16 Extraordinary Gazette 4 February 26, 2016 Canada-Newfoundland and Labrador Atlantic Accord Implementation Newfoundland and Labrador Act, SNL2015

Chapter 6, shall come into force on February 26, 2016, with the exception of: in

section 11 - subsection 134.5(1) and in

section 15 - subsections 156.1(1), (2) and (3). OF ALL WHICH OUR LOVING SUBJECTS AND ALL OTHERS whom these Presents may concern are hereby required to take notice and to govern themselves accordingly. IN TESTIMONY WHEREOF WE have caused these Our Letters to be made Patent and the Great Seal of Newfoundland and Labrador to be hereunto affixed. WITNESS: Our trusty and well-beloved the Honourable J. Derek Green, Chief Justice of Newfoundland and Labrador, Court of Appeal Administrator in and for Our Province of Newfoundland and Labrador. AT OUR GOVERNMENT HOUSE in our City of St.

John’s this 26 th day of February in the year of Our Lord two thousand and sixteen in the sixty-fifth year of Our Reign. BY COMMAND, JAMIE CHIPPETT Registrar General (Acting)

Extraordinary Gazette February 26, 2016 25 NEWFOUNDLAND AND LABRADOR REGULATION 6/16 Offshore Petroleum Cost Recovery Regulations under the Canada-Newfoundland and Labrador Atlantic Accord Implementation Newfoundland and Labrador Act (O.C. 2016-024) (Filed February 26, 2016) Under the authority of

section 29.1 of the Canada- Newfoundland and Labrador Atlantic Accord Implementation Newfoundland and Labrador Act, the Lieutenant-Governor in Council makes the following regulations. Dated at St. John’s, February 26, 2016. Julia Mullaley Clerk of the Executive Council REGULATIONS Analysis 1.

Short title 2. Definition

PART 1 REGULATORY ACTIVITY PLAN CHARGES 3. Regulatory activity plan 4. Existing project 5. Recalculation 6. Quarterly invoicing 7. Annual charge adjustment

PART 2 FORMULA FEES 8.

Interpretation 9. Publication 10. Basic formula 11. Payment of fees

PART 3 GEODATA CENTRE

Offshore Petroleum Cost Recovery Regulations 6/16 Extraordinary Gazette February 26, 2016 26 1 2. Definition 13. Sample access fee

PART 4 OTHER CHARGES 14. Reimbursement of board costs

PART 5 GENERAL 15. Interest 16. Remittance of fees and charges

PART 6 CONSEQUENTIAL AMENDMENTS, TRANSITIONAL PROVISIONS A ND C OMMENCEMENT 17. CNLR 2/96 Amdt. 18. Transitional 1. T hese regulations may be cited as the Offshore Petroleum Cost Recovery Regulations. 2.

In these regulations, (a) "Act" means the Canada -Newfoundland and Labrador Atlantic Accord Implementation Newfoundland and Labrador Act; (b) "actual full cost" means the full cost confirmed by the board's audited financial statements; (c) "direct reg ulatory activities" means the activities that are required for the board to fulfill its regulatory responsibilities such as assessing applications, issuing licences, granting approvals and authorizations, verifying and enforcing compliance with the Act and providing information, products and services; (d) "indirect regulatory costs" means the costs that support the board's direct regulatory activities such as office accommodation, supplies and equipment, professional services, co mmunications, travel, manag ement, training, administration, human resources services, finance, information technology services, hardware and so ftware, the preparation of doc uments, including policies, standards, guidelines, procedures and notices , and the provision of technical expertise, inclu ding any advice relating to legislation or regulations, to the federal minister or the provincial minister at that minister's request; and

Short title Definition

Offshore Petroleum Cost Recovery Regulations 6/16 Extraordinary Gazette February 26, 2016 27 (e) "project" means the work or activity referred to in paragraph 134(1)(

b) of the Act.

PART 1 REGULATORY ACTIVITY PLAN CHARGES 3.

(1) For each new project relating to development, production, abandonment, exploratory drilling or multi -year or complex seismic programs in respect of petroleum operations, on receipt of a project description or letter of intent, the board shall (

a) prepare a regulatory activity plan; (

b) calculate the estimated annual charge payable by the applicant or the operator for the project by determining the estimated full cost, including indirect regulatory costs, associated with the implementation of the regulatory activity plan based on (

i) the cost of the estimated total number of units of time necessary to be spent in that fiscal year on direct regulatory activities for the project, and (ii) any other costs, excluding costs calculated un der other cost recovery methods; and (

c) notify the applicant or the operator, in writing, of the regulatory activity plan and the estimated annual charge payable. 4. For each existing project that wa s previously under a regulatory activity plan, after approval of the board's budget in any given fiscal year following its submission in accordance with subsection 27(2) of the Act, the board shall (

a) prepare a new regulatory activity plan; (

b) calculate the estimated annual charge payable by the applicant or the operator for the project by determining the estimated full cost, including indirect regulatory costs, associated with the implementation of the new regulatory activity plan based on Regulatory activity plan Existing project

Offshore Petroleum Cost Recovery Regulations 6/16 Extraordinary Gazette February 26, 2016 28 (

i) the co st of the estimated total number of units of time necessary to be spent in that fiscal year on direct regulatory activities for the project, and (ii) any other costs, excluding costs calculated under other cost recovery methods; and (

c) notify the appli cant or the operator, in writing, of the new regulatory activity plan and the estimated annual charge payable. 5. If an applicant or operator proposes changes to its project that are not reflected in the regulatory activity plan, the board m ay recalculate the estimated annual charge for that project and adjust the payable amount accordingly. 6.

(1) The board shall, on a quarterly basis, prepare and send an invoice for an amount equal to 25% of the estimated annual charge payable to each applicant or operator who has been notified under paragraph 3(

c) or 4(c).

(2) Within 30 days after the date of the invoice, the applicant or the operator shall pay the amount invoiced. 7.

(1) Each year, following the end of the fiscal year, the board shall, for each project under a regulatory activity plan, (

a) calculate the actual full cost associated with the implementation of the regulatory activity plan; (

b) calculate the charge adjustment, if any, by subtracting the estimated annual charge, calculated in accordance with paragraph 3(

b) or 4(b), from the actual full cost; and (

c) notify the applicant or the operator in writing of the amount of the actual full cost and the amount of the charge adjustment.

(2) If the actual full cost calculated under paragraph (1)(

a) is (

a) less than the estimated annual charge, the difference is credited to the appl icant's or operator's account and shall be refunded as a credit on the next invoice; or Recalculation Quarterly invoicing Annual charge adjustment

Offshore Petroleum Cost Recovery Regulations 6/16 Extraordinary Gazette February 26, 2016 29 (

b) greater than the estimated annual charge, the board shall invoice the applicant or the operator for an amount equal to the difference and the applicant or the operator shall pay that amount to the board within 30 days after the date of the invoice.

PART 2 FORMULA FEES 8. In this Part (a) "base units of time" means the number of units of time published by the board in accordance with

section 9 based on the board's estimate of the time required for it to undertake direct regulatory activities in relation to e ach activity set out in the tables to

section 10; (b) "variable units of time" means the number of units of time published by the board in accordance with

section 9 based on the board's estimate of the time required for it to undertake direct regulatory a ctivities in relation to the variables set out in column 3 of the tables to subsection 10(3); (c) "effective rate" means the rate published by the board in accordance with

section 9 based on the estimated sum of the costs incurred by the board's undertaki ng of all direct regulatory activities and of the board's indirect regulatory costs minus the sum of the costs incurred by the board's undertaking of regulatory activities that are not recovered by the board at the request of the federal minister and the provincial minister and divided by the total number of units of time spen t by the board for those direct regulatory activities; and (d) "heavy burden coefficient" means a multiplier that the board may apply to a fee for an activity if the board is of the opinion that the fee should be increased to reflect the additional number of units of time spent by the board to undertake d irect regulatory activities as a result of non - compliance with the Act, negligence or lack of effort by an applicant or ope rator in responding to any of the board's questions during an application process or activity.

Interpretation

Offshore Petroleum Cost Recovery Regulations 6/16 Extraordinary Gazette February 26, 2016 30 9. Each year the board shall publish, by electronic or other means that is likely to reach applicants or operators, (

a) the base units of time for each act ivity set out in the tables to

section 10; (

b) the variable units of time for each activity set out in the table to subsection 10(3); and (

c) the effective rate. 10.

(1) The fee for each activity set out in the table to this subsection is determined by the formula A x C where A is the base units of time related to each activity; and B is the effective rate. Item Activity 1. Application for a declaration of significant discovery 2. Application for a declaration of commercial discovery 3. Application for a significant discovery licence 4. Application for a licence for subsurface storage 5. Application for a production licence 6. Application for an amendment to a licence or a consolidation of licences 7. Registration of a transfer 8. Registration of a security notice 9.

Registration of an interest 10. Recording of a notice 11. Registration of an instrument other than a transfer or security notice 12. Application to an extension, by order, of the term of a production licence 13. Application for allowable expenditures Publication Basic formula

Offshore Petroleum Cost Recovery Regulations 6/16 Extraordinary Gazette February 26, 2016 31

(2) The fee for each activity set out in column 2 of the table to this subsection is determined by the formula A x C x D where A is the base units of time related to each activity; C is the effective rate; and D if applicable, is the heavy burden coefficient. Item Column 1 Category of Activity Column 2 Activity 1. Geological operations authorization (with field work) Geochemical study 2. Geophysical (without field work) Geophysical study 3. Geological (without field work) Purchase of geological studies 4. Geological (without field work) Isotope age dating 5.

Geological (without field work) In-house geological studies 6. Geological (without field work) Petrography 7. Geological (without field work) Paleontological or palynological study 8. Geological (without field work) Other geophysical activity 9. Annual compliance fee All geophysical projects

(3) The fee for each activity set out in column 2 of the table to this subsection is determined by the formula (A +

B) x (C x

D) where A is the base units of time related to each activity; B is the variable units of time multiplied by the number of primary vessels or aircraft to be used in each activity;

Offshore Petroleum Cost Recovery Regulations 6/16 Extraordinary Gazette February 26, 2016 32 C is the effective rate; and D if applicable, is the heavy burden coefficient. Item Column 1 Category of Activity Column 2 Activity Column 3 Variable 1. Geophysical operations authorization (with field work) 2-D seismic reflection survey (primary activity) Primary vessel 2. Geophysical operations authorization (with field work) 3-D seismic reflection survey (primary activity) Primary vessel 3. Geophysical operations authorization (with field work) 4-D seismic reflection survey (primary activity) Primary vessel 4.

Geophysical operations authorization (with field work) Seafloor gravity survey (primary activity) Primary vessel 5. Geophysical operations authorization (with field work) Seismic refraction survey (primary activity) Primary vessel 6. Geophysical operations authorization (with field work) Controlled source electromagnetic survey Primary vessel 7. Geophysical operations authorization (with field work) Other geophysical program Primary vessel 8. Geophysical operations authorization (with field work) Aeromagnetic survey (primary activity) Aircraft 9.

Geotechnical authorization (seabed survey) Piston core Primary vessel 10. Geotechnical authorization (seabed survey) Shallow seismic, seabed survey Primary vessel Payment of fees

Offshore Petroleum Cost Recovery Regulations 6/16 Extraordinary Gazette February 26, 2016 33 11.

(1) On the submission of an application in respect of an activit y set out in any table to

section 10, the applicant shall pay to the board the fee determined in accordance with that section.

(2) If the board uses a heavy burden coefficient to calculate an additional charge in respect of an activity, the board shall in voice the applicant or the operator and the applicant or the operator shall pay that amount to the board within 30 days after the date of the invoice.

PART 3 GEODATA CENTRE 12. In this Part, the daily access rate means the rate established and published by the board by electronic or other means that is likely to reach applicants and operators. 13. Any person, except a person requesting access for an academic purpose, the federal minister and the provincial minister, who accesses a physical sample at the geodata centre shall pay the daily access rate for each day the sample is accessed.

PART 4 OTHER CHARGES 14. The board may require reimbursement for 100% of its costs for activities that are not set out in Parts 1 to 3 and that are related to the following: (

a) any verification of compliance under the Act involving travel to another location by the board's staff; (

b) the Oil and Gas Committee; (

c) any technical analysis or process review that is r elated to a specific project and that is requested by an applicant or operator; (

d) any public review, written or oral hearing or inquiry that is related to a specific project and that is required or initiated by the board; Definition Sample access fee Reimbursement of board costs

Offshore Petroleum Cost Recovery Regulations 6/16 Extraordinary Gazette February 26, 2016 34 (

e) a participant funding program that is part of an environmental assessment conducted under the Canadian Environmental Assessment Act, 2012; and (

f) information, products or services that are requested by a person.

PART 5 GENERAL 15. Interest on an amount owing to the boa rd shall be calculated and compounded monthly at the rate of 1.5% and is payable and accrues during the period beginning on the due date and ending on the day before the day on which the payment is received by the board. 16. For the purposes of

section 29.2 of the Act, the fees and charges obtained in accordance with these regulations shall be remitted on a quarterly basis subject to the board's operational requirements.

PART 6 CONSEQUENTIAL AMENDMENTS, TRANSITIONAL PROVISIONS AND COMMENCEMENT 17. (1) Subsections 8(1) and (2) of the Offshore Area Registration Regulations are repealed and the following substituted: 8.

(1) A person may, at the office of the registrar, inspect the daybook, the register and copies of an interest or instrument registered under Division VII of

Part II of the Act.

(2) The registrar shall provide to the person making the r equest a certified exact copy of (

a) an interest or instrument registered under D ivision VII of

Part II of the Act; and (

b) the abstract of an interest.

(2) Section 14 of the Offshore Are a Registration Regulations is repealed. Interest Remittance of fees and charges CNLR 2/96 Amdt. Searches Transitional

Offshore Petroleum Cost Recovery Regulations 6/16 Extraordinary Gazette February 26, 2016 35 18.

(1) Section 4 does not apply to a project that relate s to development, production, abandonment, explorator y drilling or multi-year or complex seismic programs if the applicant or the operator has paid 100% of the board's estimated costs for the project for the fiscal year in which these regulations come into force.

(2) All existing projects relating to develo pment, production, abandonment, exploratory drilling or multi -year or complex seismic programs that are under the board's regulatory authority before these regulations come into force and that do not have a regulatory activity plan are considered to have b een previously under a regulatory activity plan for the purposes of

section 4. ©Queen's Printer

Extraordinary Gazette February 26,2016 37 NEWFOUNDLAND AND LABRADOR REGULATION 7/16 Offshore Petroleum Financial Requirements Regulations under the Canada-Newfoundland and Labrador Atlantic Accord Implementation Newfoundland and Labrador Act (O.C. 2016-022) (Filed February 26, 2016) Under the a uthority of subsection 145(1) of the Canada - Newfoundland and Labrador Atlantic Accord Implementation Newfoundland and Labrador Act , the Lieutenant-Governor in Council makes the following regulations. Dated at St. John’s, February 26, 2016. Julia Mullaley Clerk of the Executive Council REGULATIONS Analysis 1.

Short title 2. Definition 3. Financial resources 4. Financial responsibility 5. Reimbursement into pooled fund 6. Board recommendation regarding lesser financial requirements 7. Repeal 1. These regulations may be cited as the Offshore Petroleum Financial Requirements Regulations.

Short title

Offshore Petroleum Financial Requirements Regulations 7/16 Extraordinary Gazette February 26,2016 38 2. In these regulations, "Act" means the Canada-Newfoundland and Labrador Atlantic Accord Implementation Newfoundland and Labrador Act. 3.

(1) For the purposes of subsection 157.1(1) of the Act, the proof that an applicant has the necessary financial resources is to be made by the applicant providing the board with a statement of its net assets or of funding arrangements that it has made that demonstrates to the board's satisfaction that it is able to pay the applicable amount r eferred to in that subsection.

(2) The statement shall be accompanied by one or more of the following documents that substantiate it (

a) the applicant's most recent audited annual financial statement, and if the applicant has been given a credit rating by a credit rating agency that is current at the time the application is made, a document that indicates that credit rating; (

b) a promissory note; (

c) an insurance policy or a certificate of insurance; (

d) an escrow agreement; (

e) a letter of credit; (

f) a line of credit agreement under which funds identified in the statement are available; (

g) a guarantee agreement; and (

h) a security bond or pledge agreement or an indemnity bond or suretyship agreement.

(3) For greater certainty, the board may require that the statement and substantiating documents be audited by a qualified Definition Financial resources

Offshore Petroleum Financial Requirements Regulations 7/16 Extraordinary Gazette February 26,2016 39 independent auditor and that the applicant provide it with a report of the audit that is signed by the auditor. 4.

(1) A pooled fund that is established for the purposes of subsection 158(1.1) of the Act shall be located and administered in Canada.

(2) The fund is to be used only to make payments under subsection 158(2) of the Act however the fund may be used to make payments (

a) under subsection 163(2) of the federal Act if it is also established for the purposes of subsection 163(1.01) of that Act; (

b) under subsection 168(2) of the Can ada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act , if it is also established for the purposes of subsection 168(1.01) of that Act; (

c) under subsection 160(2) of the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementatio n (Nova Scotia) Act, SNS1987, c.3, if it is also established for the purposes of subsection 160(1A) of that Act; or (

d) under subsection 27(2) of the Canada Oil and Gas Operations Act, if it is also established for the purposes of subsection 27(1.01) of that Act.

(3) Moneys that are required to be paid out of the fund shall be paid by the administrator of the fund on demand.

(4) The administrator of the fund shall (

a) every year, provide the board with an audited financial statement that demonstrates th at the fund has been maintained at a minimum of $250 million or at the higher minimum amount set by regulation; (

b) notify the board within 24 hours of the addition of a participant to, or withdrawal of a participant from, the fund or of any change in the amount of the fund, other than one Financial responsibility

Offshore Petroleum Financial Requirements Regulations 7/16 Extraordinary Gazette February 26,2016 40 that is solely attributable to an interest charge or a banking fee; (

c) notify the board of a contravention by a participant in the fund of his, her or its obligation under subsection 158(1.3), (1.4) or (5) of the Act within 24 hours after he, she or it becomes aware of the contravention; and (

d) provide the board with the phone number, email address and mailing address of his, her or its contact person. 5. For the purposes of subsecti on 158(5) of the Act, the reimbursement into the pooled fund of an amount that is paid out of it shall be made within 7 days after the day on which the payment is made. 6.

(1) For the purposes of subsection 158.1(1) of the Act, the board may make a recommendation to the provincial minister in respect of an applicant if the board is satisfied that the estimated total of the losses, damages, costs and expense s, other than losses of non- use value, f or which the applicant may be liable under paragraphs 157(1)(

b) and (2)(

b) of the Act in connection with the proposed work or activity to which the application pertains is less than the amount r eferred to in paragraphs 157(2.2)(

a) or (

b) of the Act.

(2) T he recommendation shall identify the hazards that are relevant to the proposed work or activity and shall include an assessment of the risks associated with each event that could occur in connection with each of those hazards and that could result in debri s, in a spill or in an authorized discharge, emission or escape of petroleum.

(3) The following information shall accompany the recommendation: (

a) the estimated total of the losses, damages, costs and expenses referred to in subsection (1); (

b) the recommended amount that is less than the amount referred to in paragraph 157(2.2)(

a) or (

b) or 158 (1)(

a) of the Act; (

c) a

summary of the reasons for the recommendation; Reimbursement into pooled fund Board recommendation regarding lesser financial requirements

Offshore Petroleum Financial Requirements Regulations 7/16 Extraordinary Gazette February 26,2016 41 (

d) a

summary of any information provided by the applicant to the board that the board considers to be pertinent; (

e) any information concerning the recommendation that the board provided to the federal minister in connection with that minister's approval under subsection 158.1(1) of the Act; and (

f) any information requested by the provincial minister.

(4) The board may submit to the provincial minister any other information that it considers pertinent. 7. The Canada -Newfoundland and Labrador Oil and Gas Spills and Debris Liability Newfoundland and Labrador Regulations, Consolidated Newfoundland and Labrador Regulation 771/96 are repealed. ©Queen's Printer Repeal

43 ST. JOHN'S, FRIDAY, FEBRUARY 26, 2016 Extraordinary Gazette Index Title of Act and Subordinate Legislation CNLR or XNL Gazette made thereunder NL Reg. Amendment Date & Page No.

An Act to Amend the Canada Newfoundland and Labrador Atlantic Accord Implementation Newfoundland and Labrador Act Proclamation bringing Act NLR 4/16 New Feb 26/16 p. 3 Into force with the exception of: in S.11 ss.134.5(1) in S.15 ss.156.1(1), (2) and (3) (In force February 26/2016) Canada Newfoundland and Labrador Atlantic Accord Implementation Newfoundland and Labrador Act Offshore Petroleum NLR 5/16 New Feb 26/16 p. 5 Administrative Monetary Penalties Regulations Offshore Petroleum Cost NLR 6/16 New Feb 26/16 p. 25 Recovery Regulations Offshore Petroleum NLR 7 16 New Feb 26/16 p. 37 Fi nancial Requirements Regulations

Document details

Collection	Newfoundland and Labrador — Gazette
Citation	NLG 2016-02-26
Type	gazette
Volume / chapter	printer gazette extraordinary issues 2016 nlg160226 extra
Language	en
Format	pdf
Source	PROVINCIAL
Identifier	ab8b06b3007b3dd5b4c7ff5bce51341d1f61ade5

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