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PART IIPetroleum and Offshore Renewable Energy Resources (continued)

DIVISION VOffshore Renewable Energy (continued)

Terms and Conditions (continued)

Marginal note:Amendment of licence

  •  (1) Subject to sections 40.1 to 40.3, the Regulator and the interest owner of a submerged land licence may, by agreement, amend any provision of the licence in any manner not inconsistent with this Part or the regulations and may, subject to subsection (2), amend the licence to include any other portion of the offshore area.

  • Marginal note:Exception

    (2) The Regulator shall not amend a submerged land licence to include any portion of the offshore area that, immediately prior to the inclusion, was a Crown reserve area unless the Regulator would be able to issue an interest to that interest owner in relation to that area under subsection 94(1) and a notice has been published in accordance with section 96 not later than 120 days before making the amendment, setting out the terms and conditions of the amendment.

  • Marginal note:Consolidation of licences

    (3) Subject to sections 40.1 to 40.3, the Regulator may, on the application of the interest owners of two or more submerged land licences, consolidate those licences into a single submerged land licence, subject to any terms and conditions that may be agreed on by the Regulator and those interest owners.

Marginal note:Effective date of licence

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

  • Marginal note:Crown reserve areas on expiry of licence

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

Marginal note:Qualification for submerged land licence

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

Principles

Marginal note:Principles

 The following principles apply in this Division:

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

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

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

DIVISION VIRoyalties and Revenues

Reservation of Royalties and Revenues

Definition of Petroleum and Natural Gas Act

  •  (1) In this Division, Petroleum and Natural Gas Act means Part II of the Petroleum and Natural Gas Act, R.S.N.L. 1990, c. P-10, as amended from time to time.

  • Marginal note:Royalties

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

  • Marginal note:Exception

    (3) Notwithstanding subsection (2), where petroleum is subject to a royalty under the Petroleum and Natural Gas Act, that petroleum is not subject to a royalty under subsection (2).

  • Marginal note:Application of Newfoundland and Labrador legislation

    (4) Subject to this Act and the regulations, the Petroleum and Natural Gas Act and the regulations referred to in subsection (4.1) apply, with any modifications that the circumstances require, for the purposes of this section and, without limiting the generality of the foregoing,

    • (a) a reference in that Act to Her Majesty in Right of the province is to be read as a reference to Her Majesty in right of Canada; and

    • (b) a reference in that Act to the province is to be read as a reference to the offshore area.

  • Marginal note:Application of Newfoundland and Labrador regulations

    (4.1) The following regulations apply for the purposes of subsection (4):

    • (a) any regulations made under the Petroleum and Natural Gas Act; and

    • (b) any regulations made under an Act that was replaced by the Petroleum and Natural Gas Act, to the extent that those regulations remain in force in accordance with the laws of the Province and are not inconsistent with the Petroleum and Natural Gas Act.

  • Marginal note:No Crown share

    (5) No provision of the Petroleum and Natural Gas Act or any regulation made under that Act shall apply so as to reserve to His Majesty a Crown share in any petroleum-related interest issued in respect of any portion of the offshore area.

Marginal note:Revenues reserved

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

  • Marginal note:Application of Newfoundland and Labrador legislation

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

  • Marginal note:Remedies for unpaid revenues

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

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

    • (b) refuse to authorize, under Part III, that person to carry on any work or activity related to an offshore renewable energy project and suspend any such authorization already given; and

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

  • Marginal note:No remedy pending appeals

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

  • Marginal note:For greater certainty

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

Marginal note:Power to collect

  •  (1) Subject to subsection (6), if an agreement is entered into under subsection (3), royalties, interest and penalties payable under section 97 or revenues, interest and penalties payable under section 97.1, as the case may be, may be collected and administered and refunds in respect of those amounts payable may be granted on behalf of the Government of Canada in accordance with the terms and conditions of the agreement, as amended from time to time under subsection (4).

  • Marginal note:Negotiation of agreement

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

    • (a) an agreement with the Provincial Minister and the Regulator with respect to the collection and administration of the royalties, interest and penalties payable under section 97; and

    • (b) an agreement with the Provincial Minister and the Regulator with respect to the collection and administration of the revenues, interest and penalties payable under section 97.1.

  • Marginal note:Agreement

    (3) On completion of the negotiation of an agreement under subsection (2), the Federal Minister, with the approval of the Governor in Council, shall, on behalf of the Government of Canada, enter into an agreement with the Government of the Province and the Regulator under which the Regulator shall, on behalf of the Government of Canada, collect and administer the royalties, interest and penalties payable under section 97 or the revenues, interest and penalties payable under section 97.1, as the case may be, and grant refunds or make other payments in respect of those amounts payable, as the case may be, in accordance with the terms and conditions set out in the agreement.

  • Marginal note:Amendments to the agreement

    (4) The Federal Minister, with the approval of the Governor in Council, may, on behalf of the Government of Canada, enter into an agreement amending the terms and conditions of any agreement entered into pursuant to subsection (3).

  • Marginal note:Proof of provision of agreement

    (5) A document purporting to be an agreement entered into pursuant to subsection (3) or (4) that is

    • (a) published in the Canada Gazette, or

    • (b) certified as such by, or on behalf of, the Minister of National Revenue, the Receiver General, the Deputy Receiver General or the Federal Minister

    is, in the absence of evidence to the contrary, evidence of the contents thereof and is admissible in evidence without proof of the signature or official character of the person purporting to have certified it.

  • Marginal note:No further liability — petroleum

    (6) An agreement entered into under subsection (3) may provide that, if any payment is received by the Government of the Province on account of any royalties, interest, penalties or other sum payable by a person under section 97, or under both section 97 and the Petroleum and Natural Gas Act, that payment may be applied by the Government of the Province towards the royalties, interest, penalties or other sums payable by the person under that section or both that section and that Act in the manner that is specified in the agreement, even if the person directed that the payment be applied in any other manner or made no direction as to its application.

  • Marginal note:No further liability — offshore renewable energy

    (6.1) An agreement entered into under subsection (3) may provide that, if any payment is received by the Government of the Province on account of any revenues, interest, penalties or other sum payable in respect of any offshore renewable energy project by a person under section 97.1, or under both section 97.1 and any Act of the Province and any regulations made under that Act, that payment may be applied by the Government of the Province towards the revenues, interest, penalties or other sums payable by the person under that section, or both that section and that Act and those regulations, in the manner that is specified in the agreement, even if the person directed that the payment be applied in any other manner or made no direction as to its application.

  • Marginal note:Relief of liability

    (7) Any payment or part of a payment applied by the Government of the Province in accordance with an agreement entered into under subsection (3) towards the royalties, interest, penalties or other sums payable by a person under section 97 or the revenues, interest, penalties or other sums payable by a person under section 97.1, as the case may be,

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

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

Marginal note:Remittance to Receiver General

  •  (1) All royalties, interests and penalties payable under section 97 and all revenues, interest and penalties payable under section 97.1, including the proceeds of any royalty or revenues payable in kind, shall be made payable and remitted to the Receiver General.

  • Marginal note:Consolidated Revenue Fund

    (2) On the collection or receipt by the Regulator under this section of any amounts payable, those amounts shall be deposited as soon as practicable to the credit of the Receiver General and paid into the Consolidated Revenue Fund in the manner prescribed by the Treasury Board under the Financial Administration Act.

Liability and Collection

Marginal note:Debts due to His Majesty

 All royalties, interest and penalties payable under section 97 and all revenues, interest and penalties payable under section 97.1 are debts due to His Majesty in right of Canada and are recoverable from the person required to pay them in accordance with this Division.

DIVISION VIIEnvironmental Studies Revolving Funds

Marginal note:Fund continued

  •  (1) Part VII of the Canada Petroleum Resources Act applies, with such modifications as the circumstances require, within the offshore area.

  • Marginal note:Rates subject to Regulator’s approval

    (2) The rates fixed by the Federal Minister pursuant to section 80 of the Canada Petroleum Resources Act, as they apply to the offshore area, are subject to approval by the Regulator.

  • Marginal note:Appointment

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

  • Marginal note:Reports and recommendations to Regulator

    (4) The Environmental Studies Management Board referred to in subsection (3) shall submit to the Regulator a copy of every annual report and recommendation submitted to the Federal Minister under paragraph 79(1)(d) or (e) of the Canada Petroleum Resources Act at the same time the report or recommendation is submitted to the Federal Minister.

DIVISION VIIITransfers, Assignments and Registration

Interpretation

Marginal note:Definitions

  •  (1) In this Division,

    assignment of security interest

    assignment of security interest means a notice of the assignment of a security interest or any part thereof in respect of which a security notice has been registered under this Division; (cession de sûreté)

    court

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

    Deputy Registrar

    Deputy Registrar means such person as the Regulator may designate as the Deputy Registrar for the purposes of this Division; (directeur adjoint)

    discharge

    discharge means a notice of the discharge of a security notice or postponement and includes a partial discharge; (mainlevée)

    instrument

    instrument means a discharge, postponement, security notice, transfer or an assignment of a security interest; (acte)

    operator’s lien

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

    • (a) that arises under a contract

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

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

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

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

    postponement

    postponement means a document evidencing the postponement of a security notice or operator’s lien; (cession de priorité)

    Registrar

    Registrar means such person as the Regulator may designate as the Registrar for the purposes of this Division; (directeur)

    secured party

    secured party means the person claiming a security interest under a security notice; (partie garantie)

    security interest

    security interest means any charge on or right in relation to an interest or a share in an interest that, pursuant to a written agreement, secures any payment or performance of an obligation, including

    • (a) the payment of an indebtedness arising from an existing or future loan or advance of money,

    • (b) a bond, debenture or other security of a corporation, or

    • (c) the performance of the obligations of a guarantor under a guarantee given in respect of all or any part of an indebtedness referred to in paragraph (a) or all or any part of a bond, debenture or other security of a corporation,

    and includes a security given under section 426 of the Bank Act, but does not include an operator’s lien; (sûreté)

    security notice

    security notice means a notice of a security interest; (Version anglaise seulement)

    transfer

    transfer means a transfer of an interest or a share in an interest. (transfert)

  • Marginal note:Assignees deemed secured parties

    (2) Where an assignment of security interest is registered under this Division, a reference in this Division to a secured party shall, in respect of the security notice to which the assignment of security interest relates, be read as a reference to the assignee named in the assignment of security interest.

 

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