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

Marginal note:Financial responsibility

• 163 (1) An applicant for an authorization under paragraph 138(1)(b) shall provide proof of financial responsibility in the form of a letter of credit, guarantee or indemnity bond or in any other form satisfactory to the Board,

  • (a) in the case of the drilling for or development or production of petroleum in the offshore area, in the amount of $100 million or, if the Board considers it necessary, in a greater amount that it determines; or

  • (b) in any other case, in an amount that is satisfactory to, and determined by, the Board.

• Marginal note:Pooled fund

  (1.01) An applicant to which paragraph (1)(a) applies may, rather than provide proof of financial responsibility in the amount referred to in that paragraph, provide proof that it participates in a pooled fund that is established by the oil and gas industry, that is maintained at a minimum of $250 million and that meets any other requirements that are established by regulation.

• Marginal note:Increase in amount by regulation

  (1.02) Subject to section 7, the Governor in Council may, by regulation, increase the amount referred to in subsection (1.01).

• Marginal note:Continuing obligation

  (1.1) The holder of an authorization under paragraph 138(1)(b) shall ensure that the proof of financial responsibility referred to in subsection (1) or (1.01) remains in force for the duration of the work or activity in respect of which the authorization is issued.

• Marginal note:Extended obligation

  (1.2) The holder of an authorization under paragraph 138(1)(b) shall also ensure that the proof referred to in paragraph (1)(a) or subsection (1.01) remains in force for a period of one year beginning on the day on which the Board notifies the holder that it has accepted a report submitted by the holder indicating that the last well in respect of which the authorization is issued is abandoned. The Board may reduce that period and may decide — other than in the case of a holder that participates in a pooled fund — that the proof that is to remain in force during that period is for an amount that is less than the amount referred to in paragraph (1)(a) and that is determined by the Board.

• Marginal note:Payment of claims

  (2) The Board may require that moneys in an amount not exceeding the amount prescribed for any case or class of cases, or determined by the Board in the absence of regulations, be paid out of the funds available under the letter of credit, guarantee or indemnity bond or other form of financial responsibility provided under subsection (1), or be paid out of the pooled fund referred to in subsection (1.01), in respect of any claim for which proceedings may be instituted under section 162, whether or not those proceedings have been instituted.

• Marginal note:Manner of payment

  (3) Where payment is required under subsection (2), it shall be made in such manner, subject to such conditions and procedures and to or for the benefit of such persons or classes of persons as may be prescribed by the regulations for any case or class of cases, or as may be required by the Board in the absence of regulations.

• Marginal note:Deduction

  (4) Where a claim is sued for under section 162, there shall be deducted from any award made pursuant to the action on that claim any amount received by the claimant under this section in respect of the loss, damage, costs or expenses claimed.

• Marginal note:Reimbursement of pooled fund

  (5) The holder of an authorization under paragraph 138(1)(b) that is liable for a discharge, emission or escape of petroleum that is authorized by regulation or for any spill or debris in respect of which a payment has been made under subsection (2) out of the pooled fund, shall reimburse the amount of the payment in the prescribed manner.

Marginal note:Lesser amount

• 163.1 (1) The Federal Minister may, by order, on the recommendation of the Board and with the Provincial Minister’s approval, approve an amount that is less than the amount referred to in paragraph 162(2.2)(a) or (b) or 163(1)(a) in respect of an applicant for, or a holder of, an authorization under paragraph 138(1)(b).

• Marginal note:Financial resources — exception

  (2) If the Federal Minister approves an amount that is less than the amount referred to in paragraph 162(2.2)(a) or (b) in respect of an applicant for an authorization under paragraph 138(1)(b), that applicant, for the purposes of subsection 162.1(1), shall only provide proof that it has the financial resources necessary to pay the adjusted amount approved by the Federal Minister.

• Marginal note:No contravention

  (3) No applicant for an authorization under paragraph 138(1)(b) contravenes paragraph 163(1)(a) if that applicant provides proof of financial responsibility in the amount that is approved by the Federal Minister under this section.

Marginal note:Review committee

• 164 (1) A committee, consisting of members appointed by each government and by representatives of the petroleum industry and of the fisheries industry, is established by the joint operation of this Act and the Provincial Act to review and monitor the application of sections 162 and 163 and any claims and the payment thereof made under those sections.

• Marginal note:Dissolution of committee

  (2) The committee referred to in subsection (1) may be dissolved only by the joint operation of an Act of Parliament and an Act of the Legislature of the Province.

• Marginal note:Promotion of compensation policies

  (3) The Board shall promote and monitor compensation policies for fishermen sponsored by the fishing industry respecting damages of a non-attributable nature.

Pricing for Greenhouse Gas Emissions

Marginal note:Definitions

164.1 The following definitions apply in sections 164.2 and 164.3.

greenhouse gas

greenhouse gas has the same meaning as the definition of greenhouse gas in paragraph 2(f) of the Management of Greenhouse Gas Act, S.N.L. 2016, c. M-1.001. (gaz à effet de serre)

Management of Greenhouse Gas Act

Management of Greenhouse Gas Act means the Management of Greenhouse Gas Act, S.N.L. 2016, c. M-1.001, and its regulations, as amended from time to time. (texte provincial)

Marginal note:Application

• 164.2 (1) Subject to subsection (2), the provisions of the Management of Greenhouse Gas Act relating to greenhouse gas emissions pricing apply, with any modifications that the circumstances require and that may be prescribed, to a work or activity authorized under this Part that is carried out within the offshore area.

• Marginal note:Limitation

  (2) Subsection (1) does not apply to any provision of the Management of Greenhouse Gas Act that imposes a tax.

• Marginal note:Statutory Instruments Act

  (3) The Statutory Instruments Act does not apply to any instrument made by a provincial official or body under the authority of the provisions of the Management of Greenhouse Gas Act that are incorporated by reference under subsection (1).

• Marginal note:Service Fees Act

  (4) For greater certainty, the Service Fees Act does not apply to any fee, charge or levy that is fixed under the provisions of the Management of Greenhouse Gas Act that are incorporated by reference under subsection (1).

• Marginal note:Federal Courts Act

  (5) Any official or body that exercises a power or performs a duty or function under the provisions of the Management of Greenhouse Gas Act that are incorporated by reference under subsection (1) is not a federal board, commission or other tribunal for the purposes of the Federal Courts Act.

• Marginal note:Review or appeal in Provincial courts

  (6) If a power is conferred or a duty or function is imposed by the provisions of the Management of Greenhouse Gas Act that are incorporated by reference under subsection (1), the exercise of the power or the performance of the duty or function is subject to review by, or appeal to, the courts of the Province in the same manner and to the same extent as if the laws of the Province applied.

• Marginal note:Amounts collected

  (7) Payments collected by an official or body under the provisions of the Management of Greenhouse Gas Act that are incorporated by reference under subsection (1) belong to Her Majesty in right of the Province and are not public money for the purposes of the Financial Administration Act.

Marginal note:Powers, duties and functions of Board

• 164.3 (1) The Board may, under an agreement with the appropriate provincial Minister or in accordance with the Management of Greenhouse Gas Act, exercise any power or perform any duty or function set out in that agreement or Act to ensure, within the offshore area, the administration and enforcement of the pricing mechanisms for greenhouse gas emissions set out in the provisions of that Act that are incorporated by reference under subsection 164.2(1).

• Marginal note:Liability for acts and omissions

  (2) In respect of any act or omission occurring in the exercise of a power or the performance of a duty or function under subsection (1),

  • (a) Her Majesty in right of Canada is entitled to the same limits on liability, defences and immunities as those that would apply to Her Majesty in right of the Province when Her Majesty in right of the Province exercises such a power or performs such a duty or function under the law that applies in the Province; and

  • (b) any person or body exercising the power or performing the duty or function is entitled to the same limits on liability, defences and immunities as those that would apply to a person or body when the person or body exercises such a power or performs such a duty or function under the law that applies in the Province.

• Marginal note:Disclosure of information

  (3) In exercising its powers and performing its duties and functions under subsection (1), the Board may obtain from the appropriate provincial Minister and disclose to that Minister any information with respect to the administration of the Management of Greenhouse Gas Act.

Inquiries

Marginal note:Inquiries

• 165 (1) Where a spill or debris or an accident or incident related to any activity to which this Division applies occurs or is found in any portion of the offshore area and results in death or injury or danger to public safety or the environment, the Board may direct an inquiry to be made and may authorize any person it deems qualified to conduct the inquiry.

• Marginal note:Mandatory inquiry

  (1.1) Where a spill or debris or an accident or incident related to any activity to which this Division applies occurs or is found in any portion of the offshore area and is serious, as defined by regulation, the Board shall direct that an inquiry referred to in subsection (1) be made and shall ensure that the person who conducts the inquiry is not employed by the Board.

• Marginal note:Power of person conducting inquiry

  (2) For the purposes of an inquiry under subsection (1), a person authorized by the Board under that subsection has and may exercise all the powers of a person appointed as a commissioner under Part I of the Inquiries Act.

• Marginal note:Report

  (3) As soon as possible after the conclusion of an inquiry under subsection (1), the person or persons authorized to conduct the inquiry shall submit a report to the Board, together with the evidence and other material that was before the inquiry.

• Marginal note:Publication

  (4) A report made pursuant to subsection (3) shall be published by the Board within thirty days after the Board has received it.

• Marginal note:Copies of report

  (5) The Board may supply copies of a report published pursuant to subsection (4) in such manner and on such terms as the Board considers proper.

DIVISION IIProduction Arrangements

Marginal note:Definitions

166 In this Division,

pooled spacing unit

pooled spacing unit means the area that is subject to a pooling agreement or a pooling order; (unité d’espacement mise en commun)

pooled tract

pooled tract means the portion of a pooled spacing unit defined as a tract in a pooling agreement or a pooling order; (parcelle mise en commun)

pooling agreement

pooling agreement means an agreement to pool the interests of owners in a spacing unit and to provide for the operation or the drilling and operation of a well thereon; (accord de mise en commun)

pooling order

pooling order means an order made under section 168 or as altered pursuant to section 170; (arrêté de mise en commun)

royalty interest

royalty interest means any interest in, or the right to receive a portion of, any petroleum produced and saved from a field or pool or part of a field or pool or the proceeds from the sale thereof, but does not include a working interest or the interest of any person whose sole interest is as a purchaser of petroleum from the pool or part thereof; (droit à redevance)

royalty owner

royalty owner means a person, including Her Majesty, who owns a royalty interest; (titulaire de redevance)

spacing unit

spacing unit means the area allocated to a well for the purpose of drilling for or producing petroleum; (unité d’espacement)

tract participation

tract participation means the share of production from a unitized zone that is allocated to a unit tract under a unit agreement or unitization order or the share of production from a pooled spacing unit that is allocated to a pooled tract under a pooling agreement or pooling order; (fraction parcellaire)

unit agreement

unit agreement means an agreement to unitize the interests of owners in a pool or part thereof exceeding in area a spacing unit, or such an agreement as varied by a unitization order; (accord d’union)

unit area

unit area means the area that is subject to a unit agreement; (secteur unitaire)

unit operating agreement

unit operating agreement means an agreement, providing for the management and operation of a unit area and a unitized zone, that is entered into by working interest owners who are parties to a unit agreement with respect to that unit area and unitized zone, and includes a unit operating agreement as varied by a unitization order; (accord d’exploitation unitaire)

unit operation

unit operation means those operations conducted pursuant to a unit agreement or a unitization order; (exploitation unitaire)

unit operator

unit operator means a person designated as a unit operator under a unit operating agreement; (exploitant unitaire)

unit tract

unit tract means the portion of a unit area that is defined as a tract in a unit agreement; (parcelle unitaire)

unitization order

unitization order means an order of the Committee made under section 176; (arrêté d’union)

unitized zone

unitized zone means a geological formation that is within a unit area and subject to a unit agreement; (terrain)

working interest

working interest means a right, in whole or in part, to produce and dispose of petroleum from a pool or part of a pool, whether such right is held as an incident of ownership of an estate in fee simple in the petroleum or under a lease, agreement or other instrument, if the right is chargeable with and the holder thereof is obligated to pay or bear, either in cash or out of production, all or a portion of the costs in connection with the drilling for, recovery and disposal of petroleum from the pool or part thereof; (intérêt économique direct)

working interest owner

working interest owner means a person who owns a working interest. (détenteur)