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

48 [Repealed, 2024, c. 30, s. 9]

DIVISION IGeneral

Manner of Giving Notices

Marginal note:Giving notice

49 Where a notice is required to be given under this Part or the regulations, it shall be given in such form and manner as may be prescribed and shall contain such information as may be prescribed.

Her Majesty

Marginal note:Binding on Her Majesty

50 This Part is binding on Her Majesty in right of Canada or a province.

Designations and Appointments

Marginal note:Delegation

51 The Regulator may designate any person to exercise the powers and perform the duties and functions under this Part that are specified in the designation and on such designation that person may exercise those powers and shall perform those duties and functions subject to such terms and conditions, if any, as are specified in the designation.

Marginal note:Advisory bodies

• 52 (1) The Regulator may from time to time appoint and fix the terms of reference of such advisory bodies as the Regulator considers appropriate to advise the Regulator with respect to such matters relating to the administration or operation of this Part or Part III as are referred to them by the Regulator.

• Marginal note:Remuneration

  (2) The members of any advisory body appointed under subsection (1) may be paid for their services such remuneration and expenses as are fixed by the Regulator.

Marginal note:Appointment of representative

• 53 (1) Where an interest owner consists of two or more holders, such holders shall, in the manner prescribed, appoint one of their number to act as representative of the interest owner for the purposes of this Part, but such holders may, with the consent of the Regulator, appoint different representatives for different purposes.

• Marginal note:Designation of representative

  (2) In the event that an interest owner consisting of two or more holders fails to appoint a representative for any of the purposes of this Part, the Regulator may designate one of such holders as the representative of the interest owner for such purposes.

• Marginal note:Acts or omissions of representative binding

  (3) An interest owner is bound by the acts or omissions of the appointed or designated representative of such interest owner with respect to any matter to which the authority of the representative extends.

• Marginal note:Duties of representative

  (4) A representative of an interest owner appointed or designated under this section shall perform the duties in respect of the purposes for which that representative has been appointed or designated, and any operating agreement or other similar arrangement in force in respect of the relevant interest of that interest owner stands varied or amended to the extent necessary to give effect to this subsection.

General Rules Respecting Interests

Marginal note:Prohibition orders — petroleum

• 54 (1) Subject to sections 31 to 40, the Regulator may, except in a case referred to in subsection (2), by order, for any purposes and under any conditions set out in the order, prohibit the issuance of petroleum-related interests in respect of any portions of the offshore area specified in the order.

• Marginal note:Prohibition orders — offshore renewable energy

  (1.1) The Federal Minister and the Provincial Minister may, except in a case referred to in subsection (2), issue a joint direction to the Regulator to, by order, for any purposes and under any conditions set out in the order, prohibit the issuance of submerged land licences in respect of any portions of the offshore area specified in the order.

• Marginal note:Exclusive decision of Federal Minister

  (2) The Federal Minister may, by order, in the case of a disagreement with any government concerning the location of an international boundary and under such conditions as may be set out in the order, prohibit the issuance of interests in respect of such portions of the offshore area as are specified in the order.

• Marginal note:Directions deemed not to be statutory instruments

  (3) Directions issued under subsection (1.1) shall be deemed not to be statutory instruments for the purposes of the Statutory Instruments Act.

Marginal note:Surrender of interests

• 55 (1) An interest owner may, in the manner prescribed and subject to any requirements that may be prescribed respecting the minimum geographical area to which an interest may relate, surrender an interest in respect of all or any portion of the offshore area subject to the interest.

• Marginal note:Debts due to Her Majesty not affected

  (2) Any liability of an interest owner or interest holder to Her Majesty in right of Canada, either direct or by way of indemnity, that exists at the time of any surrender under subsection (1) is not affected by the surrender.

Marginal note:Prohibition orders

• 56 (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 the portions of the offshore area or any part of those portions that are subject to the interest of that interest owner, 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 decisions

  (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 31 to 40.

• 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 40.1 to 40.3.

• Marginal note:Order of Federal Minister

  (3) The Federal Minister may, in the case of a disagreement with any 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 the portions of the offshore area or any part thereof that are subject to the interest of that interest owner.

• 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

56.1 Subject to section 7, 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

• 56.2 (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 56.1.

• 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 56.3(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

• 56.3 (1) If an interest owner surrenders an interest referred to in subsection 56.2(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 56.2(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 124 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 56.2(1) or a cancellation of an interest referred to in subsection 56.2(4), other than compensation that may be granted to an interest owner under this section.

Marginal note:Negotiations for compensation

• 56.4 (1) The Provincial Minister may enter into negotiations with an owner of a petroleum-related interest 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 56.1.

• 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 56.5(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.