Canada–Newfoundland and Labrador Atlantic Accord Implementation and Offshore Renewable Energy Management Act (S.C. 1987, c. 3)

Marginal note:Former leases

• 131 (1) Subject to sections 132 and 133, the interest owner of a former lease shall, on or before the first anniversary date of the former lease following March 5, 1982 or on or before six months following such date, whichever is the later, negotiate an exploration licence with the Regulator subject to sections 31 to 40.

• Marginal note:Surrender

  (2) Where an interest owner referred to in subsection (1) does not comply with that subsection, the portion of the offshore area under the former lease is deemed to be surrendered and becomes a Crown reserve area.

• Marginal note:Application

  (3) Subsection 130(3) applies, with such modifications as the circumstances require, to lands that may be included in an exploration licence under subsection (1).

Marginal note:Extension of time

132 Where an exploration licence required to be negotiated under section 130 or 131 cannot be negotiated within the period provided in those sections for any reason not attributable to the interest owner, the Regulator shall extend that period to allow for such negotiation within a reasonable time.

Marginal note:Consolidated exploration licence

• 133 (1) One or more interest owners of former permits, former special renewal permits, former exploration agreements or former leases may, for the purposes of complying with subsection 130(1) or 131(1), negotiate together a single exploration licence that would consolidate any number or combination of such interests held by those interest owners.

• Marginal note:Terms and conditions of exploration licence

  (2) Subject to sections 31 to 40, an exploration licence negotiated pursuant to subsection (1) shall contain any terms and conditions that may be agreed on by the Regulator and the interest owners thereof.

Marginal note:Crown share abrogated

134 For greater certainty, the reservation to Her Majesty in right of Canada of a Crown share in any interest granted or entered into under the Canada Oil and Gas Act prior to the coming into force of this section is abrogated as of the day this section comes into force.

Marginal note:Transitional

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

PART IIIPetroleum and Offshore Renewable Energy Operations

Interpretation

Marginal note:Definitions

135 In this Part,

Chief Conservation Officer

Chief Conservation Officer means the person designated as the Chief Conservation Officer pursuant to section 140; (délégué à l’exploitation)

Chief Safety Officer

Chief Safety Officer means the person designated as the Chief Safety Officer pursuant to section 140; (délégué à la sécurité)

Committee

Committee means the Oil and Gas Committee established by section 141; (Comité)

lease

lease means an oil and gas lease issued pursuant to regulations made in accordance with the Territorial Lands Act and the Public Lands Grants Act and includes a production licence issued under Part II; (concession)

permit

permit means an exploratory oil and gas permit issued pursuant to regulations made in accordance with the Territorial Lands Act and the Public Lands Grants Act and includes an exploration agreement entered into under the Canada Oil and Gas Land Regulations and any exploration agreement or licence that is subject to Part II; (permis)

pipeline

pipeline means any pipe or any system or arrangement of pipes by which petroleum or water incidental to the drilling for or production of petroleum is conveyed from any wellhead or other place at which it is produced to any other place, or from any place where it is stored, processed or treated to any other place, and includes all property of any kind used for the purpose of, or in connection with or incidental to, the operation of a pipeline in the gathering, transporting, handling and delivery of petroleum and, without restricting the generality of the foregoing, includes offshore installations or vessels, tanks, surface reservoirs, pumps, racks, storage and loading facilities, compressors, compressor stations, pressure measuring and controlling equipment and fixtures, flow controlling and measuring equipment and fixtures, metering equipment and fixtures, and heating, cooling and dehydrating equipment and fixtures, but does not include any pipe or any system or arrangement of pipes that constitutes a distribution system for the distribution of gas to ultimate consumers; (pipe-line)

well

well means any opening in the ground (not being a seismic shot hole) that is made, is to be made or is in the process of being made, by drilling, boring or other method,

• (a) for the production of petroleum,

• (b) for the purpose of searching for or obtaining petroleum,

• (c) for the purpose of obtaining water to inject into an underground formation,

• (d) for the purpose of injecting gas, air, water or other substance into an under ground formation, or

• (e) for any purpose, if made through sedimentary rocks to a depth of at least one hundred and fifty metres. (puits)

Purpose

Marginal note:Purpose

135.1 The purpose of this Part is to promote

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

• (b) the protection of the environment;

• (b.1) accountability in accordance with the “polluter pays” principle; and

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

Application

Marginal note:Application

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

Oil and Gas Administration Advisory Council

Marginal note:Designation

136.1 The Provincial Minister may designate one of the members of the Oil and Gas Administration Advisory Council established by the Canada Oil and Gas Operations Act.

Offshore Oil and Gas Training Standards Advisory Board

Marginal note:Approval

136.2 The Provincial Minister may approve the establishment of the Offshore Oil and Gas Training Standards Advisory Board by the federal Ministers pursuant to subsection 5.5(1) of the Canada Oil and Gas Operations Act.

Prohibition

Marginal note:Prohibition

137 No person shall carry on any work or activity related to the exploration or drilling for or the production, conservation, processing or transportation of petroleum in the offshore area unless

• (a) that person is the holder of an operating licence issued under paragraph 138(1)(a);

• (b) that person is the holder of an authorization issued, before the commencement of operations, under paragraph 138(1)(b) for each such work or activity; and

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

Marginal note:Prohibition — offshore renewable energy

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

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

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

Delegation

Marginal note:Delegation

137.1 The Regulator may delegate any of the Regulator’s powers under section 138, 138.01, 138.2, 138.3, 139.1, 139.2, 162.1, 163, 183.2 or 183.21 to any person, and the person shall exercise those powers in accordance with the terms of the delegation.

Licences and Authorizations

Petroleum Operating Licences and Authorizations

Marginal note:Licences and authorizations

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

  • (a) an operating licence; and

  • (b) subject to section 45, an authorization with respect to each work or activity proposed to be carried on.

• Marginal note:Term and renewals

  (2) An operating licence expires on the thirty-first day of March immediately after the day on which it is issued and may be renewed for successive periods not exceeding one year each.

• Marginal note:Requirements for operating licence

  (3) An operating licence is subject to any requirements that are determined by the Regulator or that are prescribed and to any deposits that are prescribed.

• Marginal note:Copy to Chief Safety Officer

  (3.1) On receipt by the Regulator of an application for an authorization for a work or activity referred to in paragraph (1)(b) or of an application to amend such an authorization, the Regulator shall provide a copy of the application to the Chief Safety Officer.

• Marginal note:Requirements for authorization

  (4) An authorization is subject to such approvals as the Regulator determines or as may be granted in accordance with the regulations and such requirements and deposits as the Regulator determines or as may be prescribed, including

  • (a) requirements relating to liability for loss, damage, costs or expenses;

  • (b) requirements for the carrying out of environmental programs or studies;

  • (b.1) requirements that are conditions established under the Impact Assessment Act, including those established under section 64 of that Act or by regulations made under paragraph 112(1)(a.2) of that Act; and

  • (c) requirements for the payment of expenses incurred by the Regulator in approving the design, construction and operation of production facilities and production platforms, as those terms are defined in the regulations.

• Marginal note:Limitation

  (4.1) The approvals, requirements and deposits that are determined, granted or prescribed shall not be inconsistent with the provisions of this Act or the regulations.

• Marginal note:Suspension or revocation

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

  • (a) a requirement, approval or deposit, determined by the Regulator in accordance with the provisions of this Part or Part III.1 or granted or prescribed by regulations made under either of those Parts, subject to which the licence or authorization was issued;

  • (a.1) a fee or charge payable in accordance with regulations made under section 29.1;

  • (b) a requirement undertaken in a declaration referred to in subsection 139.1(1);

  • (c) subsection 139.1(3), 139.2(2), 162.1(4) or (5) or 163(1.1), (1.2) or (5);

  • (c.1) any provision of Part III.1; or

  • (d) any applicable regulation.

Offshore Renewable Energy Authorizations

Marginal note:Authorizations

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

• Marginal note:Copy of application

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

• Marginal note:Terms and conditions of authorization

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

  • (a) approvals;

  • (b) deposits of money;

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

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

  • (d.1) conditions established under the Impact Assessment Act, including those established under section 64 of that Act or by regulations made under paragraph 112(1)(a.2) of that Act; and

  • (e) certificates of fitness and who may issue them.

• Marginal note:Limitation

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

• Marginal note:Suspension or revocation

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

  • (a) a term or condition, determined by the Regulator in accordance with the provisions of this Part or Part III.1 or prescribed under either of those Parts, subject to which the authorization was issued;

  • (b) a fee or charge payable in accordance with regulations made under section 29.1;

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

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

  • (e) any provision of Part III.1; or

  • (f) any applicable regulation.