Canada–Nova Scotia Offshore Petroleum Resources Accord Implementation and Offshore Renewable Energy Management Act (S.C. 1988, c. 28)

Marginal note:Prohibition orders

• 59 (1) Subject to subsections (2) and (2.1), the Regulator may, by order, prohibit any interest owner specified in the order from commencing or continuing any work or activity on all or any portion of the offshore area subject to the interest, in the case of

  • (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.

• Marginal note:Fundamental decision

  (2) The making of an order by the Regulator in a case referred to in paragraph (1)(a) with respect to a petroleum-related interest is subject to sections 32 to 37.

• Marginal note:Ministerial decision

  (2.1) The making of an order by the Regulator in a case referred to in paragraph (1)(a) with respect to a submerged land licence is subject to sections 38.1 to 38.3.

• Marginal note:Order of Federal Minister

  (3) The Federal Minister may, in the case of a disagreement with any foreign government concerning the location of an international boundary, by order, prohibit any interest owner specified in the order from commencing or continuing any work or activity on all or any portion of the offshore area subject to the interest.

• Marginal note:Suspension of requirements in relation to interest

  (4) Where, by reason of an order made under subsection (1) or (3), any 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.

• Marginal note:Extension of term of interest

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

• Marginal note:Relieving authority not affected

  (6) Nothing in this section affects the authority of the Regulator to relieve a person from any requirement in relation to an interest or under this Part or the regulations.

Marginal note:Prohibitions — regulations

59.1 Subject to section 6, the Governor in Council may, for the purpose of the protection of the environment, make regulations prohibiting, in respect of any 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 Governor in Council, may be identified under an Act of Parliament or of the Legislature of the Province as an area for environmental or wildlife conservation or protection,

• (a) the commencement or continuation of

  • (i) any 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.

Marginal note:Negotiations for compensation

• 59.2 (1) The Federal Minister may enter into negotiations with an interest owner for a determination of any compensation that may be granted to the interest owner for the surrender of the interest in respect of all or any portion of the offshore area subject to the interest, if all or any 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 as an area for environmental or wildlife conservation or protection; or

  • (b) subject to regulations made under section 59.1.

• Marginal note:Notice to Provincial Minister

  (2) The Federal Minister shall, not later than 60 days before entering into the negotiations, give written notice to the Provincial Minister of the Federal Minister’s intention to enter into negotiations with the interest owner within the period specified in the notice referred to in subsection (3).

• Marginal note:Notice to interest owner

  (3) The Federal Minister shall, not later than 30 days before entering into the negotiations, give written notice to the interest owner, and forward a copy of the notice to the Regulator, indicating the Federal Minister’s intention to enter into negotiations with the interest owner within the period specified in the notice.

• Marginal note:Power to cancel

  (4) The Federal Minister and the Provincial Minister may, by order, jointly cancel the interest in respect of all or any 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 as an area for environmental or wildlife conservation or protection, if

  • (a) the interest owner did not enter into negotiations with the Federal Minister within the period specified in the notice given to the interest owner;

  • (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.

• Marginal note:Amount of compensation

  (5) The Federal Minister shall, in the order, specify the amount of the compensation to be granted to the interest owner under subsection 59.3(2) in respect of the cancellation of the interest.

• Marginal note:Crown reserve areas

  (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.

• Marginal note:Return of deposit

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

Marginal note:Compensation — surrender

• 59.3 (1) If an interest owner surrenders an interest referred to in subsection 59.2(1), His Majesty in right of Canada may grant any compensation that is determined by negotiations with the Federal Minister for the surrender of the interest.

• Marginal note:Compensation — cancellation

  (2) If an interest is cancelled by an order made under subsection 59.2(4), His Majesty in right of Canada may grant an interest owner the compensation that is specified in the order. If the order cancels a petroleum-related interest, it is subject to section 127 in respect of the amount of that compensation, and, for the purposes of this subsection, any reference to the Regulator in that section is to be read as a reference to the Federal Minister.

• Marginal note:No compensation

  (3) A person shall not have any right to claim or receive any compensation, damages, indemnity or other form of relief from His Majesty in right of Canada or from any servant or agent of His Majesty in right of Canada for any acquired, vested, future or potential right or entitlement that is affected by a surrender of an interest referred to in subsection 59.2(1) or a cancellation of an interest referred to in subsection 59.2(4), other than compensation that may be granted to an interest owner under this section.

Marginal note:Negotiations for compensation

• 59.4 (1) The Provincial Minister may enter into negotiations with an interest owner for a determination of any compensation that may be granted to the interest owner for the surrender of the interest in respect of all or any portion of the offshore area subject to the interest, if all or any 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 of the Province as an area for environmental or wildlife conservation or protection; or

  • (b) subject to regulations made under section 59.1.

• Marginal note:Notice to Federal Minister

  (2) The Provincial Minister shall, not later than 60 days before entering into the negotiations, give written notice to the Federal Minister of the Provincial Minister’s intention to enter into negotiations with the interest owner within the period specified in the notice referred to in subsection (3).

• Marginal note:Notice to interest owner

  (3) The Provincial Minister shall, not later than 30 days before entering into the negotiations, give written notice to the interest owner, and forward a copy of the notice to the Regulator, indicating the Provincial Minister’s intent to enter into negotiations with the interest owner within the period specified in the notice.

• Marginal note:Power to cancel

  (4) The Provincial Minister and the Federal Minister may, by order, jointly cancel the interest in respect of all or any 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 of the Province, may be identified under an Act of the Legislature of the Province as an area for environmental or wildlife conservation or protection, if

  • (a) the interest owner did not enter into negotiations with the Provincial Minister within the period specified in the notice given to the interest owner;

  • (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.

• Marginal note:Amount of compensation

  (5) The Provincial Minister shall specify in the order the amount of the compensation to be granted to the interest owner under subsection 59.5(2) in respect of the cancellation of the interest.

• Marginal note:Crown reserve areas

  (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.

• Marginal note:Return of deposit

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

Marginal note:Compensation — surrender

• 59.5 (1) If an interest owner surrenders an interest referred to in subsection 59.4(1), His Majesty in right of the Province may grant any compensation that is determined by negotiations with the Provincial Minister for the surrender of the interest.

• Marginal note:Compensation — cancellation

  (2) If an interest is cancelled by an order made under subsection 59.4(4), His Majesty in right of the Province may grant an interest owner the compensation that is specified in the order. If the order cancels a petroleum-related interest, it is subject to section 127 in respect of the amount of that compensation, and, for the purposes of this subsection, any reference to the Regulator in that section is to be read as a reference to the Provincial Minister.

• Marginal note:No compensation

  (3) A person shall not have any right to claim or receive any compensation, damages, indemnity or other form of relief from His Majesty in right of the Province or from any servant or agent of His Majesty in right of the Province for any acquired, vested, future or potential right or entitlement that is affected by a surrender of an interest referred to in subsection 59.4(1) or a cancellation of an interest referred to in subsection 59.4(4), other than compensation that may be granted to an interest owner under this section.

DIVISION IIGeneral Rules Relating to Issuance of Petroleum-Related Interests

Authority to Issue Interests

Marginal note:Authority to issue petroleum-related interests

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

• Marginal note:Fundamental decision

  (2) The issuance of a petroleum-related interest by the Regulator is subject to sections 32 to 37 unless the interest is issued under subsection 76(1) or paragraph 84(1)(a).

• Marginal note:Application of interest may be limited

  (3) Subject to subsection (4), the application of any petroleum-related interest may be restricted to geological formations and to substances specified in the interest.

• Marginal note:Exception

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

  • (a) that is in force or in respect of which negotiations were completed before or on the coming into force of this section in relation to any portion of the offshore area; or

  • (b) that immediately succeeds an interest referred to in paragraph (a) in relation to that portion of the offshore area if that portion was not a Crown reserve area on the expiration of the interest referred to in paragraph (a).

Issuance of Interests in Relation to Crown Reserve Areas

Marginal note:Calls for bids

• 61 (1) Subject to section 64, the Regulator shall not issue a petroleum-related interest in relation to Crown reserve areas unless

  • (a) prior to issuing the 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 66; and

  • (b) the interest is issued to the person who submitted, in response to the call, the bid selected by the Regulator in accordance with subsection 62(1).

• Marginal note:Fundamental decision

  (2) The making of a call for bids for the issuance of a petroleum-related interest is subject to sections 32 to 37.

• Marginal note:Requests for call for bids

  (3) Any request received by the Regulator to make a call for bids for the issuance of a petroleum-related interest in relation to particular portions of the offshore area shall be considered by the Regulator in selecting the portions of the offshore area to be specified in such a call for bids.

• Marginal note:Contents of call for bids

  (4) The 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) if applicable, the geological formations and substances to which the interest is to apply;

  • (c) the other terms and conditions subject to which the interest is to be issued;

  • (d) any terms and conditions that a bid must satisfy to be considered by the Regulator;

  • (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.

• Marginal note:Time of publishing call

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