Sam N. K. Banks
Research and Education
Any substantive changes in this Library of Parliament Legislative Summary that have been made since the preceding issue are indicated in bold print.
Bill C-49, An Act to amend the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act and the Canada–Nova Scotia Offshore Petroleum Resources Accord Implementation Act and to make consequential amendments to other Acts, was introduced by the Minister of Natural Resources and received first reading in the House of Commons on 30 May 2023.1 Second reading of the bill was completed on 17 October 2023, when it was referred to the House of Commons Standing Committee on Natural Resources (RNNR), which studied and the bill and reported it with amendments on 18 April 2024. The bill was read a third time on 29 May 2024 and referred to the Senate, where it was taken up by the Standing Senate Committee on Energy, the Environment and Natural Resources. That committee made one substantive amendment to the bill.2 It deleted a clause allowing the Governor in Council to make regulations prohibiting petroleum or renewable energy interests or activities in a part of the Newfoundland and Labrador offshore area that may be identified by federal or provincial legislation as an area for environmental or wildlife conservation or protection (i.e., a marine protected area). At report stage in the Senate, the Senate defeated the Senate committee’s report, rejecting its amendments,3 and passed the bill on 1 October 2024.4 The bill received Royal Assent on 3 October 2024.
Bill C-49 renames the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act5 the Canada–Newfoundland and Labrador Atlantic Accord Implementation and Offshore Renewable Energy Management Act. It renames the Canada–Nova Scotia Offshore Petroleum Resources Accord Implementation Act6 the Canada–Nova Scotia Offshore Petroleum Resources Accord Implementation and Offshore Renewable Energy Management Act (together, the “Accord Acts”) and expands their mandates to set the legislative framework for offshore renewable energy activities.
The Accord Acts, as currently written, implement bilateral agreements between the governments of Canada and Newfoundland and Labrador and Nova Scotia to jointly regulate oil and gas activities in their respective provincial offshore areas.
The bill also expands the mandates of the Canada–Newfoundland and Labrador Offshore Petroleum Board and the Canada–Nova Scotia Offshore Petroleum Board to provide for the regulation of offshore renewable energy projects, such as offshore wind projects. To reflect this new mandate, the two boards are renamed the “Canada–Newfoundland and Labrador Offshore Energy Regulator” and the “Canada–Nova Scotia Offshore Energy Regulator,” respectively (collectively, the “regulators”).
Bill C-49 establishes a management regime to regulate transboundary petroleum pools that straddle domestic and international boundaries. This will allow for joint exploitation agreements between the regulators and the other appropriate authority having jurisdiction (e.g., a foreign government) to provide for the exploitation of a transboundary pool as though it were a single pool. In 2005, Canada and France signed the Canada–France Agreement on Transboundary Hydrocarbon Fields to provide a management regime for hydrocarbon exploration and exploitation off the coasts of Newfoundland and Labrador, and Nova Scotia and the French islands of St. Pierre and Miquelon.7 This agreement also includes a mechanism for identifying and exploiting transboundary pools. The amendments in Bill C-49 will allow the agreement to be implemented.
The amendments to the Accord Acts contained in Bill C-49 enable the two offshore regulators to regulate offshore renewable energy projects in a manner similar to how they currently regulate offshore petroleum projects. This includes control over impact assessments and any required hearings; licensing, environment, health and safety matters; and decommissioning.
The amendments follow announcements in 2022 by the governments of Canada, Newfoundland and Labrador, and Nova Scotia that they intend to expand the mandates of the two provinces’ offshore petroleum boards to include the regulation of offshore renewable energy projects.8
To implement the changes to the offshore energy regimes set out in Bill C-49, the governments of Newfoundland and Labrador and Nova Scotia will introduce mirroring legislative amendments in their respective legislatures.
The amendment process will complement regional assessments of offshore wind development in Newfoundland and Labrador and Nova Scotia initiated in March 2023 by the Government of Canada and the governments of Newfoundland and Labrador and Nova Scotia.9 This analysis regarding future offshore wind development activities will be regulated under the amended Accord Acts. The main purpose of regional assessments is to contribute to the efficiency and effectiveness of future impact assessments of projects that are subject to the Impact Assessment Act.10
According to information provided by the federal government, the amendments set out in Bill C-49 will help Newfoundland and Labrador and Nova Scotia take advantage of their offshore wind resources and advance their development.11
The International Energy Agency (IEA) reported that offshore wind resources supplied 7% of total installed wind capacity as of 2022, with the remaining 93% supplied by onshore wind resources. However, it stated that offshore wind’s share is expected to grow significantly within existing and new markets as turbines are deployed at sea to take advantage of stronger winds.12
In a 2019 news release, the IEA stated that “global offshore wind capacity may increase 15-fold and attract around $1 trillion of cumulative investment by 2040.”13 That said, in 2023, it noted that
[g]lobal wind capacity additions in 2022 were 20% lower than in 2021, and 32% below the record 2020 growth. The slowdown resulted mostly from project commissioning delays in China related to lockdowns due to the Covid-19 pandemic and lower installations in the United States due to the phase-out of tax incentives. Wind capacity additions are expected to rebound in 2023 and further accelerate in the following years, driven by increased policy support in the United States and the European Union, and policy targets and high economic competitiveness in China.14
There is increasing interest in developing offshore wind and hydrogen projects in Atlantic Canada. For example, in April 2022, the Government of Newfoundland and Labrador announced that it was lifting a 15-year moratorium on the development of wind power.15 By October 2022, the province had received 31 submissions for land-based wind energy projects.16
In 2023, Nova Scotia released its Offshore Wind Road Map17 and plans to offer leases for five gigawatts of offshore wind energy by 2025 to support its emerging green hydrogen industry.18
In August 2022, Canada and Germany signed a joint declaration to establish a hydrogen alliance and “create a transatlantic supply chain for hydrogen well before 2030, with first deliveries aiming for 2025.”19
Bill C-49 contains a number of amendments that seek to align the Accord Acts with processes set out in the Impact Assessment Act. However, in October 2023, the Supreme Court of Canada released a reference opinion stating that numerous sections of the Impact Assessment Act were unconstitutional.20 The Court held that the Impact Assessment Act’s focus on broad adverse environmental effects rather than those just within federal jurisdiction infringed on provincial jurisdiction.
In light of the Supreme Court’s findings, the federal government announced it would introduce amendments to the Impact Assessment Act to align its decision making powers more closely with federal jurisdiction.21 To date, those amendments have not been introduced in Parliament.
In order to bridge the discrepancies between the relevant provisions of the Impact Assessment Act and Bill C-49, made a number of amendments to the bill during its examination at committee stage. Included are amendments allowing for separate coming into force provisions for certain clauses that pertain to some sections of the Impact Assessment Act. This will allow for coordination between statutes in Bill C-49 that refer to the Impact Assessment Act and any forthcoming amendments to that Act. This means that when the revisions to the Impact Assessment Act are introduced, those specified provisions will come into force at a distinct time without delaying the coming into force of all other provisions of Bill C-49.
Other amendments made by RNNR include minor revisions to grammar and language for readability, such as changing the word “criterion” to “criteria” and to add or delete missing or superfluous words, respectively.22
The bill contains 221 clauses organized into three Parts: Part 1 amends the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act; Part 2 amends the Canada–Nova Scotia Offshore Petroleum Resources Accord Implementation Act; and Part 3 makes consequential and coordinating amendments to other Acts.
Unless otherwise indicated, the amendments in Part 1 of the bill are mirrored in Part 2; accordingly, these amendments will be addressed together.
The following terminology is used in this legislative summary:
To interrupt reading as little as possible with often complex references to the bill’s provisions discussed in this legislative summary, citations for the provisions have been placed in endnotes, keyed to the relevant provisions of the Accord Acts.
The short titles of each Accord Act are changed to reflect their expanded mandates. The short titles are changed as follows:
Headings throughout the Accord Acts are added or amended to differentiate “petroleum related decisions” from “decisions related to offshore renewable energy.”24
A number of definitions are added to each Act, notably “offshore renewable energy project,” “offshore renewable energy recommendation” and “Regulator,” the latter of which replaces the term “Board” throughout the Accord Acts.25 Reflecting their changed mandates, the two offshore petroleum boards are renamed the “Canada–Newfoundland and Labrador Offshore Energy Regulator” and the “Canada–Nova Scotia Offshore Energy Regulator.”26
An “offshore renewable energy project” is defined as
Subject to consultations with and the approval of the relevant provincial counterpart, the Governor in Council may make regulations amending the definition “offshore renewable energy project” to add or remove any work or activity related to renewable energy that is carried out in the offshore area.28
Bill C-49 states that, for greater certainty, the two accords do not apply to offshore renewable energy resources.29
The Accord Acts are updated throughout to extend existing requirements for operations, licensing, authorization, rights of entry, safety and compliance to offshore renewable energy. These provisions broadly parallel the current regime and requirements, tailored to offshore renewable energy where necessary.
Minor amendments are made throughout the Accord Acts to increase readability, such as replacing the terms “where” with “if,” and “notwithstanding” with “despite.”
New provisions in the Accord Acts provide that the federal or provincial Crown may rely on the Regulator to consult with Indigenous peoples respecting any potential adverse impact of a work or activity in the offshore area on existing Aboriginal and treaty rights. The Regulator may, if appropriate, accommodate any adverse impacts on those rights.30 This aligns the Accord Acts with the processes set out in the Impact Assessment Act.
New provisions regarding decisions related to offshore renewable energy are added to the Accord Acts. When the Regulator reaches a decision related to offshore renewable energy, it must notify the federal and provincial minister of its recommendation in writing. The ministers must, within 60 days, notify the Regulator of their joint decision to approve, vary, or reject the recommendation; this notification must be published in the Canada Gazette.31
The Accord Acts are amended to define a “transboundary” pool as one that extends beyond the Regulator’s jurisdiction in these Acts.32 This includes a pool extending into the jurisdiction of a foreign government.
Benefit plans for work or activities to be carried out in transboundary pools that are subject to a joint exploitation agreement cannot be approved unless the Regulator and the appropriate authority have agreed on their content. Disagreements about the contents of a plan may be submitted to an expert.33
Bill C-49 renames Part II of the Accord Acts by adding the words “and Offshore Renewable Energy” to the title. It also adds several definitions in relation to offshore renewable energy to Part II of the Accord Acts. “Crown reserve area” means, in relation to offshore renewable energy, “portions of the offshore area in respect of which no submerged land licence is in force respecting a particular renewable energy resource.” An offshore renewable energy “interest” means “any submerged land licence.” The term “significant discovery” is amended to expand the methods used to demonstrate the existence of an accumulation of hydrocarbons.34
The bill adds provisions to the Accord Acts to provide that the Governor in Council may make regulations to prohibit the commencement or continuation of petroleum resource – or renewable energy – activities, or the issuance of interests, in respect of any portion of the offshore area that is located in an area that has been or may be identified as an area for environmental or wildlife conservation or protection. Accordingly, once a portion of the offshore is declared to be an area for environmental or wildlife conservation or protection, no further licence interests are to be issued for the area, and no further petroleum activity or offshore renewable energy activity can be undertaken by interest holders in the area. Provisions are made for notice requirements, negotiations with interest owners and compensation for the surrender or cancellation of their interests. Areas for which an offshore interest has been surrendered or cancelled become Crown reserve areas.35
A significant discovery licence is given a statutory term of 25 years. This is new; the current Accord Acts do not set a specific term for this licence.36 Two new provisions are also added to each Accord Act. If the interest owner applies to the Regulator for a declaration of commercial discovery or for the issuance of a production licence, the term of the significant discovery licence is automatically extended until the Regulator decides on that application. The extension of the term of the significant discovery licence remains in place after the Regulator makes a declaration of commercial discovery, but the Regulator may cancel the extension if the interest owner fails to apply for a production licence within a reasonable time.37
New Division V, entitled “Offshore Renewable Energy,” is added to Part II of each Accord Act.38 This division outlines general rules establishing a land tenure regime for issuing submerged land licences. It essentially replicates the Accord Acts’ processes set out in Divisions II and III of Part II under the headings “General Rules Relating to Issuance of Petroleum-Related Interests” (formerly titled “General Rules Relating to Issuance of Interests”) and “Exploration,” respectively.
The text of new Division V of Part II of the Accord Acts is largely based on that of the text of Division II, replacing the term “interest” with that of “submerged land licence” throughout. New Division V addresses the Regulator’s authority to issue submerged land licences and sets out the requirements for calls for bids for submerged land licences. It also prescribes the terms, conditions and criteria to be specified in a call for bids, the manner in which bids are to be submitted, the terms, conditions, criteria and manner to be specified in the call, and provisions regarding bid selection and notice requirements.
The Governor in Council may make regulations respecting matters within this new Division.39
Some provisions in this new Division are unique to requirements for submerged land licences. For example, a new provision stipulates that, upon the direction of the federal and provincial ministers, the Regulator may issue a submerged land licence for any Crown reserve area without making a call for bids under terms and conditions specified by the ministers.40
Those terms and conditions are set out in a subsequent provision of the bill. They require that the offshore renewable energy project be restricted to activities such as research or demonstrations of technologies, approaches or methods related to the production, transmission or storage of renewable energy, or conducting a site assessment, among others.41
As well, there are some differences in certain time periods between petroleum-related interests and rights in amended Division II and Division III of Part II of the Accord Acts and submerged land licences in new Division V. If the Regulator has not issued a submerged land licence with respect to a particular portion of the offshore area specified in a call for bids within 12 months after the closing date specified in the call for bids, the Regulator must make a new call for bids before issuing a submerged land licence in relation to that portion of the offshore area. This 12-month period is double that in the equivalent provisions in Part II, Division II of the Accord Acts.42
Similarly, the notice the Regulator must give before issuing or amending a submerged land licence is 120 days under Part II’s new Division V; it is 90 days for a petroleum related interest.43
Bill C-49 adds principles that apply in Division V of the Accord Acts.44 The bill as originally introduced set out two principles. First, that all Canadian corporations and individual Canadians resident in Canada must have a full and fair opportunity to participate on a competitive basis in an offshore renewable energy project, including in jobs and in the supply of goods and services used in projects. This first principle is similar to an existing provision in the Accord Acts under the “Benefits Plan” heading.45 The second principle states that importance must be given to enhancing the participation of underrepresented groups in those endeavours.
A third principle was added by RNNR at the report stage, which states that “during the submerged land licence issuance process, importance must be given to the consideration of effects on fishing activities. ”
Division VI of Part II of the Accord Acts addresses royalties, interest and penalties flowing from offshore energy production and treats offshore energy projects as if they were completed in the province. The Division is amended and renamed to include offshore renewable energy revenues to complement the existing royalty scheme for oil and gas production.46
Bill C-49 adds provisions to the Accord Acts to provide remedies for unpaid revenues.47 As long as the amount remains unpaid, the provincial minister may direct the Regulator to refuse to issue a submerged land licence to that person. The Regulator may also refuse to authorize that person to carry out any work or activity on any offshore renewable energy project, or suspend any authorization already given.
Part III of the Accord Acts currently address petroleum operations. It sets out provisions concerning the exploration and drilling for and the production, conservation, processing and transportation of petroleum in the offshore area. It also provides for the promotion of safety and the protection of the environment, and the conservation of petroleum resources and joint production arrangements.
This section of the legislative summary discusses amendments that expand Part III to include offshore renewable energy projects and operations within this context. It also discusses additional amendments to Part III that align both petroleum operations and offshore renewable energy operations with the Impact Assessment Act.
Amendments made by RNNR allow for separate coming into force of certain clauses that pertain to some sections of the Impact Assessment Act. This will allow for coordination between provisions in the Accord Acts that refer to the Impact Assessment Act and any forthcoming amendments to the latter Act. When the anticipated revisions to the Impact Assessment Act are introduced, those provisions will come into force at a distinct time without impeding the coming into force of all other provisions of Bill C-49. As written, these committee amendments provide for future text to be inserted into specific sections of the Accord Acts.
To achieve this, RNNR added clauses to the bill pertaining to each Accord Act containing placeholder text.48
The title of Part III of the Accord Acts is amended to reflect the inclusion of the terms “offshore renewable energy.”49
In addition, the bill provides that offshore renewable energy work or activities are prohibited without an authorization obtained from the Regulator.50
The Accord Acts are amended to outline requirements for offshore renewable energy authorizations. Current provisions in the Acts concerning authorizations for petroleum-related works or activities are updated with new references to offshore renewable energy and the Impact Assessment Act.
Authorizations for each offshore renewable energy work or activity proposed to be carried out are subject to any terms and conditions the Regulator may prescribe. These include those related to approvals; deposits of money; liability for loss, damage, costs or expenses related to debris; and the carrying out of safety studies or environmental programs or studies. An authorization may be suspended or revoked for failing to comply with its terms or conditions. These authorizations with respect to offshore renewable energy works or activities generally correspond to the terms and conditions that may be required for their petroleum-related counterparts.51
A new term or condition for authorization of work or activities – applicable to both petroleum and offshore renewable energy authorizations – is added to the Accord Acts.52 An authorization may also be subject to conditions established under the Impact Assessment Act.53
New provisions of the bill under the heading “Impact Assessment” replace the current text in the Accord Acts relating to “environmental assessment.” They also align the Acts with the Impact Assessment Act.
The bill adds the definition “designated project” to the Accord Acts.54 That term, as defined in the Impact Assessment Act, applies to a petroleum or offshore renewable energy work or activity for which an authorization under the Accord Acts is required. This change brings these works and activities into alignment with certain provisions and processes of the Impact Assessment Act.
Where an application for an authorization for a petroleum or offshore renewable energy project is made, the Regulator may not make a determination respecting that application before the Impact Assessment Agency of Canada (the Agency) decides that an impact assessment is not required for that project (in accordance with subsection 16(1) of the Impact Assessment Act) or the Minister of the Environment has issued a decision statement under section 65 of that Act.55
In light of the decision by the Supreme Court of Canada in October 202356 that parts of the Impact Assessment Act are unconstitutional, RNNR introduced an amendment to the bill at the committee stage separating the provision referencing conditions established under the Impact Assessment Act or regulations made under a specific section57 of that Act from other provisions of the bill relating to offshore renewable energy authorizations.58
Further, amendments to the bill by RNNR created two new sections in each of the Accord Acts to allow for a separate coming into force for certain provisions concerning impact assessments in the context of offshore renewable energy authorizations.59
The Impact Assessment Act authorizes the Minister of the Environment to determine (or “designate”) that a work or activity requires a federal impact assessment if the carrying out of that project may cause adverse effects within the federal jurisdiction or adverse direct incidental effects, or public concerns related to those effects warrant the designation.60 Bill C-49 amends the Accord Acts to stipulate that if the Minister of the Environment considers such a designation for an offshore petroleum or renewable energy project, the Regulator must provide comments respecting this designation to the minister.61
The Regulator must provide any specialist or expert information or knowledge it possesses to the Agency, a review panel, “authority ”62 or “committee”63 upon request.64 The Regulator must also, at the Agency’s request made under section 13(2) of the Impact Assessment Act, engage with the project proponent to obtain any information the Agency requires to exercise its powers or perform its duties or functions with respect of the proposed project.65
A federal authority must also provide the Regulator with any specialist or expert information or knowledge it possesses that the Regulator may require to determine whether to authorize an offshore petroleum or renewable energy project, approve a development plan or conduct a regional or strategic assessment under the accord implantation Acts.66
In order to assist the Agency in determining whether an impact assessment is required, the Regulator must provide the Agency with any comments it receives from the public in the planning phase of the impact assessment process in response to a notice posted under section 15(3) of the Impact Assessment Act.67
Similarly, if the Agency decides that an impact assessment is required, the Regulator must provide the Agency with public comments regarding the time limits within which the impact assessment report must be submitted to the Minister of the Environment within which any recommendations must be posted on the Agency’s website. The Regulator must also provide the Agency with comments regarding the information and studies the Agency considers necessary and requires from the project proponent for the conduct of the impact assessment and the preparation of the impact assessment report.68
Before providing public comments to the Agency in response to the notice posted under section 15(3) of the Impact Assessment Act and to the Minister of the Environment regarding the time limits in Part III of the Accord Acts, the Regulator may consult with the Minister of Natural Resources and the provincial minister; if the Regulator chooses to do so, the Regulator must consult with both the federal and provincial ministers.69
Bill C-49 adds new provisions to the Accord Acts that empower the Regulator to conduct regional70 and strategic71 assessments for work or activities under Part III (Petroleum and Offshore Renewable Energy Operations) of the Accord Acts.
The Regulator may conduct a regional assessment of the effects of any existing or future work or activity for which an authorization under Part III of the Accord Acts is required.72 Similarly, the Regulator is also authorized to conduct a strategic assessment of any proposed or existing policy, plan or program respecting the offshore area, or of any issue that is relevant to any existing or future work or activity that requires an authorization under Part III.73
The Minister of Natural Resources and their provincial counterpart may enter into an agreement with certain others in order to facilitate the regional or strategic assessment, including specifying the time limits and terms of reference for these assessments.74 Provisions are made for public comments for the Minister of the Environment concerning the terms of reference or appointments to a committee established to conduct regional or strategic assessments.75
Bill C-49 amends the Accord Acts to authorize the Regulator to establish a participant funding program to facilitate the participation of the public and any Indigenous peoples of Canada in consultations concerning any matter respecting the offshore area.76
The development plan approval process is amended by Bill C-49 to establish a management regime for the development of transboundary pools that are subject to a joint exploitation agreement.
Under the provisions of the bill, development plans for work or activities to be carried out in transboundary pools that are subject to a joint exploration agreement cannot be approved or amended unless the Regulator and the appropriate authority have agreed on their content. Part I of the development plan is subject to specified conditions. If the transboundary pool extends into the jurisdiction of a foreign government, the approval of Part I is subject to the consent of the Minister of Natural Resources in consultation with the provincial minister.77
Where there is a disagreement about the contents of the development plan submitted for approval or its requirements for approval, the Regulator or appropriate authority may refer the matter to an expert in accordance with new provisions set out in this bill.78 In the case of a transboundary pool extending into the jurisdiction of a foreign government, the Minister of Natural Resources, upon consultation with the Minister of Foreign Affairs and the provincial minister, may refer the matter to an expert.
The expert’s decision is deemed to be approval of the plan by the Regulator and approval of Part I of that plan by the Minister of Natural Resources and the provincial minister or, in the case of a transboundary pool extending into the jurisdiction of a foreign government, by only the Minister of Natural Resources.79
Bill C-49 amends the Governor in Council’s authority to make regulations concerning petroleum operations. Currently, Division I of Part III of the Accord Acts permits the Governor in Council to authorize the Regulator to (among other things) make any necessary orders, exercise powers and perform duties for the removal of petroleum from the offshore area. The title of amended Division I, Part III now includes the word “petroleum.” The Governor in Council’s powers are expanded by the bill to include orders, powers and duties in relation to the management of access by third parties to existing offshore infrastructure for the purpose of storing, processing and transporting petroleum and in relation to the amounts that may be charged for that access.80
Several new definitions are added to Division II of Part III of the Accord Acts, whose title now includes the word “Petroleum.” This Division addresses petroleum production arrangements. The new definitions relate to production arrangements in transboundary pools.
Bill C-49 adds a number of provisions to Part III, Division II of the Accord Acts to establish a new hydrocarbon management regime to regulate transboundary pools that straddle domestic and international boundaries.
If an exploratory well is drilled in the perimeter, the Regulator must provide the appropriate authority with any information in its possession and, on request, with any additional information in its possession that is relevant to the determination of whether a pool is transboundary and its delineation.82
If data obtained from any drilling in the perimeter provides sufficient information for the Regulator to determine whether a pool exists, the Regulator must notify the appropriate authority as soon as feasible of its determination. If the Regulator determines that a pool exists, the Regulator must also specify in the notice whether or not there is, in its opinion, reason to believe that the pool is transboundary. Prior to notifying the appropriate authority, the Regulator must provide the Minister of Natural Resources and the provincial minister with the reasons for its determination and opinion, if any. The notice must be given no later than one year after the Regulator receives the data from three drillings of the same geological feature in the perimeter.83
Within 90 days of the Regulator’s receipt of a notice from an authority indicating the authority’s determination as to whether a pool exists in an area adjoining the perimeter and, if applicable, whether there is reason to believe that the pool extends into the perimeter, the Regulator must inform the authority of its agreement with the content of the notice, or of its disagreement, along with reasons for disagreeing. Before the Regulator informs the authority, it must inform the Minister of Natural Resources and the provincial minister of its determination, along with the reasons for that determination.84
If, after receiving a notice described above, the Regulator and the authority agree that a pool exists, they must jointly determine whether the pool is transboundary and, if so, they must jointly delineate its boundaries. If they disagree about whether a pool exists or is transboundary or about a pool’s delineation, they may refer the matter to an expert within 180 days of issuing the notice.85
The amendments made by Bill C-49 to the Accord Acts include four circumstances in which a matter may be referred to an expert for resolution. These are disagreements about the following items:
A party that intends to refer a matter to an expert, in the event of a disagreement, must notify the other party of its intention, and within 30 days, the parties must agree on the appointment of an expert to decide the matter. However, if the parties cannot agree on the appointment of a single expert, within another 30 days, the parties must each appoint one expert to a panel, and those two experts must, in turn, jointly appoint an additional expert as chairperson. However, if the two experts cannot jointly agree on the appointment of a chairperson within 30 days of the last appointment, then, within another 30 days, the Chief Justice of the Federal Court appoints the chairperson, and the expert panel may begin its review of the matter.90
An expert must be impartial and independent and have knowledge or experience relative to the subject of disagreement. Decisions of an expert panel are arrived at by majority vote. The expert’s or expert panel’s decision must be made within 270 days of the expert or panel becoming responsible for resolving the matter. Subject to judicial review, the decision is final and binding. An expert must keep records of hearings and proceedings, which are deposited with the Regulator when the expert’s relevant activities have ceased.91
In the case of a transboundary pool extending into the jurisdiction of a foreign government, the appointment of an expert and decisions made by them are to be made in accordance with any applicable international treaty respecting the exploration and exploitation of transboundary pools, as amended from time to time. Canada and the foreign government shall share equally the expert’s fees and costs and the costs of the expert’s proceedings. With respect to the portion of those costs and fees to be paid by Canada, the governments of Canada and of the province are to share the expert’s fees and costs equally and, unless otherwise agreed, the costs of the proceedings are also to be shared equally.92
The Regulator and the appropriate authority may enter into a joint exploitation agreement providing for the development of a transboundary pool as a single pool. The agreement must include any matters provided for by regulations.93
In the case of a transboundary pool extending into the jurisdiction of a foreign government, the Regulator must provide advice regarding the exploitation of that transboundary pool to the Minister of Natural Resources and the provincial minister, who may enter into a joint exploitation agreement with the appropriate authority.94
If a joint exploitation agreement is signed, the transboundary pool may only be developed as a single pool. Development of that pool is subject to both a unit agreement and a unit operating agreement being entered into and subsequently approved. Information about a unit agreement and approval is discussed below. Where there is any inconsistency, the joint exploitation agreement prevails over the unit agreement and the unit operating agreement.95
If an “interest owner”96 advises the Regulator that it intends to start production of petroleum from a transboundary pool, the Regulator must notify the appropriate authority as soon as feasible of the interest owner’s intention, after first notifying the Minister of Natural Resources and provincial minister of that intention. If the appropriate authority or the Regulator, or in the case of a transboundary pool extending into the jurisdiction of a foreign government, the Minister of Natural Resources (in consultation with the Minister of Global Affairs and the provincial minister) have unsuccessfully attempted to enter into a joint exploitation agreement – within 180 days of the Regulator’s notifying the appropriate authority of the interest owner’s intention – they may refer the matter to an expert to determine the particulars of the agreement.97
The “royalty owners”98 and the “working interest owners ”99 of a transboundary pool may enter into a unit agreement and once jointly approved by the Regulator and the appropriate authority, must operate their interests in accordance with the unit agreement, including any amendment to it.100 The same conditions apply if the parties enter into a unit operating agreement.101
The Regulator and the appropriate authority may jointly approve the unit agreement and the unit operating agreement if all the royalty owners and all the working interest owners in the pool are parties to it. Both agreements are to be approved in this way before the Regulator issues an authorization to carry on a work or an activity connected with the development of a transboundary pool as a single pool.102
When a joint exploitation agreement concerning a transboundary pool is entered into, the Regulator must order the working interest owners in the portion of the pool that is in its jurisdiction to enter into a unit agreement and a unit operating agreement with all other working interest owners in the pool if they have not already done so.103
One or more working interest owners who are parties to a unit agreement and a unit operating agreement, and own in total 65% or more of the working interests in a transboundary pool may apply to the Regulator and the appropriate authority for a unitization order. The unit operator (or proposed unit operator) may make the application on behalf of the working interest owners.104 The required contents of the application are set out in the Accord Acts.105
The Regulator and the appropriate authority must appoint an expert to decide on the application for a unitization order.106 If the transboundary pool extends into the jurisdiction of a foreign government, the Minister of Natural Resources, after consultation with the provincial minister, must agree with the appropriate authority on the appointment of an expert in accordance with a process set out in specified sections of the Accord Acts.107 Provisions in the bill stipulate that the appointment of an expert and the making of decisions by them are to be made in accordance with any applicable international treaty respecting the exploration and exploitation of transboundary pools, as amended from time to time.108
An expert responsible for determining an application for a unitization order must hold a hearing at which all interested persons are given an opportunity to be heard. At the end of the hearing, the expert must request that the Regulator and appropriate authority order that the unit agreement be binding on and enforceable against all the royalty owners and working interest owners – and that the unit operating agreement is binding on and enforceable against all working interest owners – who have an interest in the unit area.109 The expert must also request that the Regulator and the appropriate authority include in the order any variations to the unit agreement or the unit operating agreement that the expert determines are necessary to allow for the more efficient or more economical production of petroleum from the unitized zone.
However, the expert may make no such request that the order include variations if the expert finds that
Where the transboundary pool extends into the jurisdiction of a foreign government, the interested parties in the hearing are representatives of each country in question. On the conclusion of the hearing, the expert must request that the interested persons ensure that the Regulator and the appropriate authority make the order that the unit agreement and unitization orders are binding and enforceable.111
Upon receiving such a request from an expert, the Regulator must issue a unitization order. The order only becomes effective on the date set out in the order, which must be at least 30 days after the order is made if the appropriate authority has issued an equivalent order.112
The unit agreement and unit operating agreement have the effect given to them by the unitization order. The issuance of unitization orders from both the Regulator and the appropriate authority is deemed to be their joint approval of the unit agreement and unit operating agreement. A unitization order is not invalid by reason only of the absence of, or irregularities in giving, notice to any owner of the application for an order, or any irregularities in the proceedings leading to the order. While the order is in effect, all persons carrying on drilling or petroleum producing activities in the unit area must abide by the provisions of the unit agreement and unit operating agreement.113
The Regulator must immediately revoke a unitization order that varies a unit agreement or a unit operating agreement if, before the effective date of the order,
- a working interest owner or owners who own in total more than 25% of the total working interests in the unit area and are part of the group that owns 65% or more of the total working interests in the unit area and who executed the unit agreement and unit operating agreement, and
- a royalty owner or owners who own in total more than 25% of the total royalty interests in the unit area and are part of the group that owns 65% or more of the total royalty interests and who executed the unit agreement, or
- a working interest owner or owners who own in total more than 25% of the total working interests in the unit area and are part of the group that owns 65% or more of the total working interests and who executed the unit agreement and the unit operating agreement.114
A working interest owner may apply to the Regulator and the appropriate authority to have a unitization order amended, in which case both the Regulator and the appropriate authority must appoint an expert to determine the application. In the case of a transboundary pool that extends into the jurisdiction of a foreign government, the Minister of Natural Resources, upon consultation with the provincial minister, must agree with the appropriate authority on the appointment of an expert in accordance with the process set out in specified subsections of the Accord Acts.115
The expert must hold a hearing at which all interested persons are given an opportunity to be heard. After the hearing, the expert may request that the Regulator and the appropriate authority order the amendment of the unitization order either as proposed by the applicant, or as varied by the expert to allow for the more efficient or more economical production of petroleum from the unitized zone.116
However, if the expert finds that, on the day on which the hearing begins, one or more working interest owners who own in total 65% or more of the total working interests, and one or more royalty interest owners who own in total 65% or more of the total royalty interests in the unit area have consented to the proposed amendment, the expert may end the hearing and request that the Regulator and appropriate authority each amend their unitization orders in accordance with the amendment proposed. No unitization order amendment may alter the ratios between the tract participations of those tracts that were qualified for inclusion in the unit area before the commencement of the hearing.117
Where the transboundary pool extends into the jurisdiction of a foreign government, the interested parties in the hearing to amend the unitization order are representatives of each country in question and, on the conclusion of the hearing, the expert must request that the interested persons ensure that the Regulator and the appropriate authority amend the unitization order as provided for by this section.118
Bill C-49 creates new Division II.1 in Part III of the Accord Acts, adding new provisions governing offshore renewable energy operations. The measures added here broadly replicate similar provisions in Division I of Part III in the Accord Acts relating to petroleum operations. These measures address the prohibition of debris; emergency action, management or work related to debris; liability for debris; recovery of loss or damage; claims for loss; financial resources; inquiries for injury or death caused by debris or accident; and regulations.
In this Division, the following terms are defined as follows:
Debris is prohibited in any portion of the offshore area. Any person carrying on work or activity that requires an authorization under Part III of the Accord Acts must report debris to the Chief Conservation Officer and must take all reasonable measures to reduce or mitigate any damage or danger from the debris. Where the Chief Conservation Officer is satisfied on reasonable grounds that these measures will not be taken, the Chief Conservation Officer may take any immediate action necessary to prevent further debris or reduce or mitigate any danger from it, or direct a person to take those actions.
The Chief Conservation Officer may authorize and direct any person whose services are necessary to enter the area where the debris has been left and take over the management and control of any work or activity being carried on in that area. That person must take all reasonable measures to prevent further debris or reduce or mitigate any danger from it. Any costs incurred in this regard must be borne by the person who obtained an authorization for offshore renewable energy work or activity from which the debris originated. No person required, directed or authorized to act under this section is personally liable for any act or omission in complying with this section unless they did not act reasonably in the circumstances.120
New Division II.1 provides for the recovery of loss, damage, costs or expenses in relation to debris.121
This includes the following:
All persons whose fault or negligence caused the debris, or who are legally responsible for the actions of others whose fault or negligence caused the debris, are jointly and severally liable. Their liability is determined based on the degree of fault or negligence proved against them and are liable for the loss or damage and related costs and expenses.
The person who is required to obtain an authorization for a work or an activity from which debris originated is liable, without proof of fault or negligence, for those costs and expenses, up to the applicable limit of $1 billion.
The person who carried out a work or activity for which an authorization was required in a facility that is now an abandoned facility from which the debris originated is liable, without proof of fault or negligence, for that loss, actual loss or damage, and for those costs and expenses, up to the applicable limit of liability of $1 billion.
If debris is the result of a contractor’s fault or negligence, the person who is required to obtain an authorization to carry out the relevant work or activity and who hired the contractor is jointly and severally liable with the contractor for any actual loss or damage, costs and expenses and loss of non-use value relating to a public resource that is affected by debris or as a result of any action or measure taken in relation to it.
Bill C-49 stipulates that the limit of liability without proof of fault or negligence is $1 billion, the Minister of Natural Resources may, by order, on the recommendation of the Regulator and with the approval of the provincial minister, establish a liability limit that is less than $1 billion for persons carrying out a work or activity relating to offshore renewable energy projects that is specified in the order or of persons who carried out that work or activity in a facility that is now an abandoned facility.
In the absence of regulations, the Regulator may establish a limit of liability that is less than $1 billion for persons who carried out a work or activity for which an authorization was required in a facility that is now an abandoned facility.
The Governor in Council is given the power to increase or decrease the liability limits by regulation, as well as limit the amount of time a person may be held liable.124
If a person is liable both under the Accord Acts and under any other Act, without proof of fault or negligence, for the same occurrence, the person is liable up to the greater of the two liability limits set out in the Accord Acts. However, if liability under another Act is unlimited, then the liability limits established under the Accord Acts do not apply.125
Only the federal government or a provincial government may sue to recover a loss of non-use value.126
Claims for amounts for the losses, damages and costs rank in the following order:
A claim may be brought within three years of the day the loss, damage, cost or expense occurred, but in no case after the sixth anniversary of the day on which the facility, equipment or system in question was abandoned or the material in question broke away or was jettisoned or displaced.128
An applicant for an authorization to carry out any other type of work or activity must provide proof that they have the financial resources necessary to pay an amount that the Regulator determines. In determining the amount that an applicant must prove they are able to pay, the Regulator is not required to consider any potential loss of non-use value of a public resource that could be affected as a result of debris. The holder of an authorization must ensure that its proof of financial resources remains in force for the duration of the relevant work or activity.129
An applicant for an authorization is required to provide proof of financial responsibility in the form of a letter of credit, a guarantee or indemnity bond or in any other form satisfactory to the Regulator. The holder of an authorization must ensure this proof of financial responsibility remains in force for the duration of the relevant work or activity.130
The Regulator may require that a portion of the funds available under the proof of financial responsibility requirements be paid out in respect of any claim for which proceedings may be instituted for recovery of loss, damage, costs or expenses, whether or not those proceedings have been instituted. Payments must be made in the manner required by the Regulator and the amount will be deducted from any award for loss, damage, cost or expenses.131
A committee that consists of members appointed by each government and by representatives of the offshore renewable energy industry and of the fisheries industry is established under Bill C-49 to review and monitor the application of the recovery of loss, damage, costs or expenses provisions and the proof of financial responsibility provisions of the Accord Acts as amended and any claims and payment of claims made under them. This committee may only be dissolved by the joint operation of federal and provincial legislation.132
The Regulator must promote and monitor compensation policies for fishers sponsored by the fishing industry respecting damages of a non-attributable nature.133
The Regulator may direct an inquiry into debris, an accident or an incident in an offshore area to which this Division applies that results in death, injury or danger to public safety or to the environment. The inquiry becomes mandatory if the debris, an accident or incident related to any work or activity to which this Division applies occurs or is found in any portion of the offshore area and is “serious,” as defined by regulation. Moreover, the Regulator must ensure that the person who conducts the inquiry is not employed by the Regulator.134
A person authorized by the Regulator to conduct the inquiry has all the powers of a person appointed as a commissioner under Part I of the Inquiries Act. As soon as feasible upon the conclusion of the inquiry, the person must submit a report to the Regulator, together with the evidence and other material that was before the inquiry. The Regulator must publish the report within 30 days after receiving it, and may supply copies of it in any manner and on any terms that the Regulator considers appropriate.135
Subject to specified sections of the Accord Acts,136 the Governor in Council may make regulations for the purposes of safety, the protection of the environment and accountability, and the regulations may incorporate materials by reference. Regulations may be made to address the following:
The Chief Safety Officer and Chief Conservation Officer may authorize the substitution of equipment, methods, measures, or standards in lieu of those required by regulations made for the purposes of safety, the protection of the environment and accountability if the officers are satisfied it would provide an equivalent level of safety and protection of the environment to that provided by compliance with the regulations. As well, the officers may grant an exemption from any requirement imposed by any such regulation if they are satisfied with the level of safety and protection of the environment that will be achieved without compliance with that requirement. These powers may be exercised by the Chief Safety Officer alone if the regulatory requirement does not relate to protection of the environment, and the Chief Conservation Officer alone may exercise those powers if the regulatory requirement is not related to safety.138
The Regulator may issue and publish guidelines and interpretation notes for applying the new provisions related to offshore renewable energy authorizations and any regulations made under specified sections of the Accord Acts.139
Bill C-49 creates Division II.2 of Part III of the Accord Acts, adding provisions pertaining to the safety of offshore renewable energy and petroleum facilities – including abandoned facilities – as well as the safety of persons and the environment. It also provides for the appointment of facility managers, who are responsible for the safe operation of the facility and the persons at it.
The Regulator may, by order, direct the holder of an offshore petroleum or renewable energy authorization or any other person, a provincial government or Crown corporation or a local authority to take measures in respect of an abandoned facility that the Regulator considers necessary for the safety of persons or the abandoned facility or for the protection of property or the environment. Failure to comply with an order may result in the Regulator taking any action or measures it considers necessary, or it may authorize either an officer or employee – or class of officer or employee – of the Regulator or a third party to take the necessary action or measures.140
Subject to specified sections of the Accord Acts,141 the Governor in Council may make regulations respecting abandoned facilities, including with respect to liability and to the proof of financial responsibility or financial resources to be provided by an applicant or holder of an offshore renewable energy authorization.142
No person shall make contact with, alter or remove an abandoned offshore petroleum or renewable energy facility unless they are authorized to do so by order of the Chief Safety Officer or by regulations. The Governor in Council may make regulations respecting the circumstances in which or conditions under which such an order by the Chief Safety Officer is not necessary.143
Bill C-49 makes a number of amendments to Division III of Part III of the Accord Acts, including provisions dealing with appeals, installation or facility managers and the powers of operational safety officers and chief safety officers in the event of serious bodily injuries.
Several provisions pertaining to appeals to the Supreme Court of Newfoundland and Labrador of orders or decisions of the review committee are amended by the bill.144
An operational safety officer or the Chief Safety Officer may order that an offshore petroleum or renewable energy project cease or continue only in accordance with the terms of the order if they believe, on reasonable grounds, that continued exploration, drilling, production, conservation, processing or transportation related to the project is likely to result in serious bodily injury.145
Provisions are added to Division III of Part III of the Accord Acts in respect of new requirements for and powers of an offshore renewable energy “facility manager” and offences and penalties. These are similar to current provisions in the Acts concerning “installation” managers for petroleum-related works or activities, and offences and penalties in Part III. The headings of the current provisions of the Accord Acts are replaced with the wording “Installation or Facility Manager.”146
Every holder of an offshore renewable energy authorization using a prescribed facility must place a facility manager in command of that facility. That manager must meet any prescribed qualifications and is responsible for the safety of the facility and the persons at it. The facility manager has the power to do anything required to ensure the safety of the facility and the persons at it, and may give orders to any person who is at the facility; order that any person who is at the facility be restrained or removed; and obtain any information or documents. In an emergency (as prescribed by regulation), the facility manager’s powers are extended so that they also apply to each person in charge of a vessel, vehicle or aircraft that is at the facility or that is leaving or approaching it.147
The provisions of the Accord Acts relating to offences and penalties are amended to include as an offence the undertaking or carrying out work or activity without an offshore renewable energy authorization, or not complying with the terms of the authorization. It is also an offence to not comply with an order of a facility manager (among others).148
Certain provisions of Division III, Part III.1 (Occupational Health and Safety) are amended by Bill C-49. For example, the definition of “authorization” in this Part is amended to include an authorization related to an offshore renewable energy project. The term “marine installation or structure” is slightly rearranged and amended to include “any facility or structure used for producing, storing or transmitting an offshore renewable energy product, including an electrical substation.”149
The Accord Acts are amended to ensure that the occupational health and safety regime outlined in Part III.1 of the Accord Acts applies to workplaces situated in the offshore area for the purposes of offshore renewable energy projects, as well as offshore workplaces for the exploration, drilling, production, conservation or processing of petroleum.150
The following federal authorities do not apply to workplaces situated in the offshore area: Parts II and III of the Canada Labour Code, the Canadian Human Rights Act and the Non-smokers’ Health Act. These provisions of the Accord Acts are updated to include language related offshore renewable energy projects.151
The Accord Acts are amended to ensure provincial social legislation also applies to offshore renewable energy project workplaces as well as offshore petroleum workplaces, as long as it is not inconsistent with the occupational health and safety regime set out in the Accord Acts. Provincial social legislation includes legislation addressing matters such as human rights, labour standards and workers’ compensation and health.152
With regard to industrial relations, provincial legislation applies to a marine installation or structure in connection with petroleum or renewable energy projects in the offshore area that is, or is becoming, attached or anchored to the seabed (among other things). For all other marine installations or structures in connection with renewable energy or petroleum projects, industrial relations are governed by Part I of the Canada Labour Code.153
A workplace or part of a workplace that is normally unattended and used for carrying out an offshore renewable energy project is exempt from the requirement to be inspected at least once a month.154
Provisions in Bill C-49 ensure the transition from the term “Board” to “Regulator” in the Accord Acts and other Acts when the former term is repealed and the latter term comes into force. Additional provisions ensure that persons who are members of the Board continue the remainder of their term as members of the Regulator, and current employees of the Board continue as employees of the Regulator.155
The Hibernia Development Projects Act is amended to reflect the updated name of the Canada–Newfoundland and Labrador Atlantic Accord Implementation and Offshore Renewable Energy Management Act, as well as the amended term “Regulator.”156
Every reference to “Canada–Newfoundland and Labrador Atlantic Accord Implementation Act” and “Canada–Nova Scotia Offshore Petroleum Resources Accord Implementation Act” is replaced by a reference to “Canada–Newfoundland and Labrador Atlantic Accord Implementation and Offshore Renewable Energy Management Act” and “Canada–Nova Scotia Offshore Petroleum Resources Accord Implementation and Offshore Renewable Energy Management Act,” respectively, in legislation specified in Bill C-49 and in bills before Parliament.157 Similarly, every reference in specified provisions to “Canada–Newfoundland and Labrador Offshore Petroleum Board” and “Canada–Nova Scotia Offshore Petroleum Board” is replaced by a reference to “Canada–Newfoundland and Labrador Offshore Energy Regulator” and “Canada–Nova Scotia Offshore Energy Regulator,” respectively.158
Coordinating amendments ensure that the Canada Oil and Gas Operations Act correctly reflects the name of the relevant accord implementation Act and the name of the relevant regulatory agency regardless of the timing of the coming into force of specified clauses of Parts 1 or 2 of Bill C-49.159
A similar coordinating amendment aligns specific amendments in Parts 1 and 2 of Bill C-49 with those made by An Act to enact the Impact Assessment Act and the Canadian Energy Regulator Act, to amend the Navigation Protection Act and to make consequential amendments to other Acts (the “other Act”).160 These coordinating amendments replace text in specified sections of the Impact Assessment Act with text that correctly reflects the amended name of the relevant Accord Act; replaces “Petroleum Board ” with “Energy Regulator”; and updates and corrects references to specific provisions as amended by the bill and by RNNR. These coordinating amendments ensure that the updated terms in Bill C-49 are reflected in the Impact Assessment Act regardless of the timing of the coming into force of specified sections of either Bill C-49 or the other Act.161
A further coordinating amendment adds identical provisions to each of the Accord Acts. These provisions are added on the first day on which both specified provisions of the other Act and certain provisions of Bill C-49 (which specifically relate to offshore renewable energy authorizations and impact assessments162) are in force.
The new provisions of the above-mentioned coordinating amendments are set out below.
A commissioner appointed for a public review under either of the accord implantation Acts may be from a roster of members of the respective Offshore Energy Regulator.163
If the Minister of the Environment consults the Chairperson of the Regulator respecting the establishment of a review panel’s terms of reference under section 46.1(1) of the Impact Assessment Act, the Chairperson must consult the Minister of Natural Resources and the provincial minister.164
If the Minister of the Environment consults the Minister of Natural Resources respecting the selection of any member of the Regulator to a roster under section 50(1)(b.1)(i) of the Impact Assessment Act, the Minister of Natural Resources must consult with the provincial minister and the Chairperson of the Regulator.165
If the Minister of the Environment consults the Minister of Natural Resources and the Regulator respecting the selection of any person to a roster under section 50(1)(b.1)(ii) of the Impact Assessment Act, the Regulator must consult with the Minister of Natural Resources and the provincial minister.166
If the Minister of the Environment consults the Minister of Natural Resources under section 61(1) of the Impact Assessment Act with respect to the referral to the Governor in Council of an impact assessment report for a designated project, the Minister of Natural Resources must consult the provincial minister.167
Clause 221 sets out the coming into force of various provisions contained in Bill C-49.
The bill will come into force in stages. Different clauses have specific timelines for coming into force, and some depend on other clauses being in force first.
Most parts of this Act will come into force on a date or dates fixed by the Governor in Council. However, clauses 218 to 220 are exceptions to this general rule. Clauses 218 to 220 come into force when the bill receives Royal Assent.
Clause 8, adding section 7.1 to the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act and clause 112, adding section 7.1 to the Canada–Nova Scotia Offshore Petroleum Resources Accord Implementation Act. Under section 2 of the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act, “Atlantic Accord” means “the Memorandum of Agreement between the Government of Canada and the Government of the Province on offshore petroleum resource management and revenue sharing dated February 11, 1985, and includes any amendments thereto.” Under section 2 of the Canada–Nova Scotia Offshore Petroleum Resources Accord Implementation Act,
Accord means the Canada–Nova Scotia Offshore Petroleum Resources Accord dated August 26, 1986 and entered into by the Government of Canada, as represented by the Prime Minister of Canada and the Federal Minister, and by the Government of Nova Scotia, as represented by the Premier of Nova Scotia and the Provincial Minister, and includes any amendments thereto.[ Return to text ]
Under section 166 of the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act and section 171 of the Canada–Nova Scotia Offshore Petroleum Resources Accord Implementation Act, a “working interest owner” is a person who owns a working interest. A “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.See Canada–Newfoundland and Labrador Atlantic Accord Implementation Act, S.C. 1987, c. 3, s. 166; and Canada–Nova Scotia Offshore Petroleum Resources Accord Implementation Act, S.C. 1988, c. 28, s. 171. [ Return to text ]
“Use values” and “non-use values” are defined in Government of Canada, Economic value of the environment:
Use values are associated with direct use of the environment such as fishing and swimming in a lake, hiking in a forest – or commercial uses such as logging or farming. Non-use values are related to the knowledge of the continued existence of the environment (existence values), or the need to leave environmental resources to future generations (bequest values).[ Return to text ]
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