Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation (Nova Scotia) Act

CHAPTER 3

OF THE

ACTS OF 1987

amended 1988, c. 56; 1992, c. 12; ss. 1-27; 1993, c. 16, ss. 1-6

If you are searching this statute, note that it consists of six documents.

Short title

1 This Act may be cited as the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation (Nova Scotia) Act. 1987, c. 3, s. 1.

Interpretation

2 In this Act,

(a) "Bay of Fundy" means the submarine areas within the limits described in Schedule II;

(b) "Board" means the Canada-Nova Scotia Offshore Petroleum Board established by the joint operation of Section 9 of this Act and Section 10 of the federal Implementation Act;

(c) "Canada-Nova Scotia benefits plan" means a plan submitted pursuant to subsection (2) of Section 45;

(d) repealed 1993, c. 16, s. 1.

(e) "Chief Executive Officer" means the Chief Executive Officer of the Board appointed pursuant to Section 25;

(f) "development plan" means a plan submitted pursuant to subsection (2) of Section 136 for the pur-

pose of obtaining approval of the general approach of developing a pool or field as proposed in the plan;

(g) "federal Government" or "Government of Canada" means the Governor General in Council;

(h) "federal Implementation Act" means the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act (Canada);

(i) "federal Minister" means the Minister of Energy, Mines and Resources for Canada;

(j) "field"

(i) means a general surface area underlain or appearing to be underlain by one or more pools, and

(ii) includes the subsurface regions vertically beneath the general surface area referred to in subclause (i);

(l) "fundamental decision" means a decision made by the Board respecting the exercise of a power or the performance of a duty or function pursuant to a provision of this Act that expressly provides for the exercise of the power or the performance of the duty or function subject to Sections 31 to 37;

(m) "gas" means natural gas and includes all substances, other than oil, that are produced in association with natural gas;

(n) "Government" means the federal Government, the Provincial Government, or both, as the context requires;

(o) "Minister" means the Minister of Mines and Energy;

(p) "Nova Scotia lands" means

(i) Sable Island, and

(ii) those submarine areas that belong to Her Majesty in right of the Province or in respect of which Her Majesty in right of the Province has the right to dispose of or exploit the natural resources, and that are within the offshore area;

(r) "offshore area" means the lands and submarine areas within the limits described in Schedule I;

(s) "oil" means

(i) crude oil regardless of gravity produced at a well head in liquid form, and

(ii) any other hydrocarbons, except coal and gas, and, without limiting the generality of the foregoing, hydrocarbons that may be extracted or recovered from deposits of oil sand, bitumen, bituminous sand, oil shale or from any other types of deposits on the surface or subsurface or the seabed or subsoil thereof of the offshore area;

(u) "pool" means a natural underground reservoir containing or appearing to contain an accumulation of petroleum that is separated or appears to be separated from any other such accumulation;

(v) "prescribed", except where otherwise provided, means prescribed by regulations made by the Governor in Council;

(w) "Sable Island" means the area, whether above or under water, in the offshore area, that is within the limits described in Schedule III. 1987, c. 3, s. 2; 1993, c. 16, s. 1.

Jurisdiction preserved

3 The provisions of this Act shall not be construed as providing a basis for any claim by or on behalf of the Government of Canada in respect of any entitlement to or legislative jurisdiction over the offshore area or any living or non-living resources in the offshore area. 1987, c. 3, s. 3.

Act prevails

4 In case of any inconsistency or conflict between

(a) this Act or a regulation made pursuant thereto; and

(b) any other Provincial enactment,

this Act and the regulations made pursuant thereto prevail. 1987, c. 3, s. 4.

Amendment of description of offshore area

5 (1) Subject to Section 6, the Governor in Council may make regulations amending the description of the limits set out in Schedule I for the purposes of the definition "offshore area".

Approval and issue of charts

(2) The Minister may approve charts or cause charts to be issued setting out the offshore area or any portion thereof as may be set out consistent with the nature and scale of the chart.

Chart conclusive proof

(3) In any legal or other proceedings, a chart purporting to be approved or issued by the Minister is conclusive proof of the limits of the offshore area or portion thereof set out in the chart without proof of the signature or official character of the person purporting to have approved or issued the chart. 1987, c. 3, s. 5.

Approval by Federal Minister

6 Before a regulation is made pursuant to subsection (1) of Section 5, subsection (4) of Section 17, subsection (8) of Section 35, subsection (7) of Section 39, subsection (7) of Section 45, Section 51, Section 70, subsection (2) of Section 73, Section 120, subsection (1) of Section 124, Section 127, subsection (1) of Section 146, subsection (5) of Section 149, subsection (4) of Section 157 or Section 200, the Minister shall consult the federal Minister with respect to the proposed regulation and no regulation shall be made without the approval of the federal Minister. 1987, c. 3, s. 6; 1993, c. 16, s. 2.

Amendment of Accord

7 The Government of Nova Scotia as represented by the Premier of Nova Scotia or by such other member of the Executive Council for Nova Scotia as may be designated by the Governor in Council, may, jointly with the Government of Canada, amend the Offshore Accord from time to time. 1987, c. 3, s. 7.

Application of Act

8 This Act applies to Nova Scotia lands within the offshore area. 1987, c. 3, s. 8.

Board established

9 (1) There is established by the joint operation of this Act and the federal Implementation Act a board to be known as the Canada-Nova Scotia Offshore Petroleum Board.

Board deemed established under laws of Province

(2) Notwithstanding subsection (1), the Board shall be treated as if established by or under the law of the Province.

Powers of Board

(3) The Board has the powers and capacities of a corporation incorporated pursuant to the Companies Act, including those set out in Section 14 of the Interpretation Act.

Dissolution of Board

(4) The Board may be dissolved only by the joint operation of an Act of the Legislature and an Act of Parliament. 1987, c. 3, s. 9.

Membership of Board

10 (1) The Board shall consist of five members.

Appointment of members

(2) Subject to subsection (3), the members of the Board may be appointed by both the Provincial Government and the Government of Canada, or, in the alternative, each Government may appoint two members.

Chairman

(3) The Chairman of the Board shall be appointed by the Provincial Government and the Government of Canada.

Provincial alternate

(4) The Provincial Government may appoint one alternate member only to serve in the absence or incapacity of any member first appointed by it.

Federal alternate

(5) The federal Government may appoint one alternate member only to serve in the absence or incapacity of any member first appointed by it.

Joint appointment of alternate member

(6) The federal Government and the Provincial Government may jointly appoint one alternate member only to serve in the absence or incapacity of any member first jointly appointed by them. 1987, c. 3, s. 10.

"civil servant" defined

11 (1) In this Section and Section 12, "civil servant" means

(a) a person employed in the Province pursuant to the Civil Service Act and a person in the public service appointed by order-in-council; and

(b) a person employed in the public service of Canada as defined in the federal Implementation Act.

Not more than two civil servants

(2) Not more than two members of the Board may, during the term of office of those members on the Board, be civil servants and of those two members, not more than one may be appointed by each Government.

Chairman not civil servant

(3) The Chairman of the Board shall not, during the term of office as Chairman, be a civil servant. 1987, c. 3, s. 11.

Term of board member

12 (1) Subject to subsection (2), each member of the Board, including the Chairman, shall be appointed for a term of six years.

Transitional appointments

(2) The first two members of the Board, other than the Chairman, to be appointed by each Government shall be appointed for terms of four and five years, respectively.

Re-appointment

(3) Each member of the Board is eligible for re-appointment.

Appointment during good behaviour

(4) Each member of the Board who is not a civil servant holds office during good behaviour but may be removed for cause by the Government or Governments that appointed the member.

Civil servant appointed during pleasure

(5) Each member of the Board who is a civil servant holds office during pleasure. 1987, c. 3, s. 12.

Consultation on appointment of Chairman

13 (1) Consultation between the two Governments with respect to the selection of the Chairman of the Board shall be deemed to commence

(a) six months prior to the expiration of the term of office of the incumbent Chairman; or

(b) where applicable, on the date of receipt by the Board of notice of the death, resignation or termination of appointment of the incumbent Chairman,

whichever occurs earlier.

Failure to agree on Chairman

(2) Where the two Governments fail to agree on the appointment of the Chairman of the Board within three months after the commencement of consultation between the Governments, after written notice given by one of the Governments to the other, the Chairman shall be selected pursuant to subsection (3) by a panel, consisting of three members and constituted in accordance with Section 43 unless, at any time prior to the selection of the Chairman by the panel, the Governments agree on the appointment.

Selection of Chairman by panel

(3) The Chairman of the Board shall be selected from among persons nominated by each Government by the panel within sixty days after the appointment of the chairman of the panel.

Panel decision binding

(4) The decision of the panel selecting a Chairman of the Board is final and binding on both Governments. 1987, c. 3, s. 13.

Acting Chairman

14 The Board shall designate a member to act as Chairman of the Board during any absence or incapacity of the Chairman or vacancy in the office of Chairman, and that person, while acting as Chairman, has and may exercise all of the powers and perform all of the duties and functions of the Chairman. 1987, c. 3, s. 14.

Terms and conditions of appointment

15 (1) Subject to Section 12, the salary and other terms and conditions of the appointment of the Chairman of the Board or any other member or alternate member appointed by both Governments, including the effective date of the appointment, shall be fixed by an order of the Provincial Government and an order of the federal Government after agreement has been reached by both Governments on the salary and other terms and conditions.

Agreement by both governments

(2) The salary and other terms and conditions of the appointment of any member appointed by either the Provincial Government or the federal Government shall be agreed on by both Governments. 1987, c. 3, s. 15.

Conflict of interest guidelines

16 Each member of the Board shall be subject to conflict of interest guidelines established jointly by the Minister and federal Minister and are not subject to any conflict of interest guidelines established by the Provincial Government. 1987, c. 3, s. 16.

Indemnification

17 (1) The Province shall, subject to such terms and conditions as may be prescribed, indemnify a person who is a present or former member, officer or employee of the Board, and the heirs and legal representatives of that person, against such costs, charges and expenses, including such amounts paid to settle an action or satisfy a judgment, reasonably incurred in respect of any civil, criminal or administrative action or proceeding to which that person is a party by reason of being or having been such a member, officer or employee, as may be prescribed.

Shared indemnification

(2) Where the Government of Canada has indemnified a person referred to in subsection (1) or the heirs or legal representatives of that person, the Province shall, subject to such terms and conditions as are prescribed, pay to the Government of Canada one half of the amount so indemnified.

Indemnification out of consolidated fund

(3) Any amount payable in respect of indemnification pursuant to this Section may be paid out of the Consolidated Fund.

Regulations

(4) Subject to Section 6, the Governor in Council may make regulations prescribing anything that by this Section is to be prescribed. 1987, c. 3, s. 17.

Additional duties of Board

18 (1) The Board shall, in addition to performing the duties and functions conferred or imposed on the Board by or pursuant to this Act, perform such duties and functions as are conferred or imposed on it by the Offshore Accord, to the extent that such duties and functions are not inconsistent with this Act or any regulations made thereunder.

Board may make recommendations

(2) The Board may make recommendations to both Governments, respecting petroleum-related activity in the offshore area and, respecting proposed amendments to this Act, the federal Implementation Act, any regulations made pursuant to those Acts and to any other legislation relating to petroleum resource activities in the offshore area. 1987, c. 3, s. 18.

Access to information by Ministers

19 (1) The Minister and the federal Minister are entitled to access to any information or documentation relating to petroleum resource activities in the offshore area that is provided for the purposes of this Act or any regulation made thereunder and such information or documentation shall, notwithstanding subsection (2) of Section 121, on the request of either the Minister or the federal Minister be disclosed to that Minister without requiring the consent of the party who provided the information or documentation.

Section 121 applies

(2) Section 121 applies, with such modifications as the circumstances require, to any information or documentation to which the Minister and the federal Minister have access pursuant to subsection (1) and any disclosure of such information or documentation by the Minister or federal Minister or the production or giving of evidence relating thereto by such Minister, as if the references in that Section to the administration or enforcement of Parts II or III of this Act included references to the administration or enforcement of the federal Implementation Act.

Board to require summary

(3) The Board shall require every person who makes an application in respect of which a fundamental decision is to be made by the Board, to give, forthwith after making the application, a written summary of the application to the Minister and the federal Minister. 1987, c. 3, s. 19.

Location of Board

20 The principal office and staff of the Board shall be located in the Province. 1987, c. 3, s. 20.

Responsibility for storage and curatorship

21 (1) The Board shall have responsibility for the storage and curatorship, in a facility in the Province, of all geophysical and geological records and reports, reports respecting wells and materials recovered from wells in the offshore area and, without limiting the generality of the foregoing, drill cuttings, fluid samples, hydrocarbon samples and cores recovered from wells in the offshore area.

Furnishing of samples

(2) The Board shall, at the request of the Minister or the federal Minister,

(a) furnish that Minister with a sample of any material referred to in subsection (1); or

(b) where it is not possible to produce a sample of such material, provide that Minister with all or a portion of such material, subject to being returned to the facility referred to in subsection (1),

if the material is to be permanently retained at the facility referred to in subsection (1). 1987, c. 3, s. 21.

Meetings of Board

22 A meeting of the Board shall be held

(a) once every two months unless the members of the Board unanimously agree to defer such a meeting; and

(b) at any other time

(i) at the call of the Chairman of the Board,

(ii) on the request of any two members of the Board, or

(iii) on the request of the Minister or the federal Minister to review any matter referred to the Board by that Minister. 1987, c. 3, s. 22.

Quorum

23 (1) Three members of the Board constitute a quorum of the Board.

Majority vote

(2) Where, in the absence of unanimous agreement, a vote is required to be taken in respect of a decision of the Board, the decision shall be made on the basis of a majority vote of the members of the Board. 1987, c. 3, s. 23.

Board may make by-laws

24 Subject to this Act and the Offshore Accord, the Board may

(a) make by-laws respecting

(i) the members, officers and employees of the Board,

(ii) the attendance and participation, including voting rights, at meetings of the Board of alternate members of the Board appointed pursuant to Section 10,

(iii) the manner of appointing the officers and employees of the Board on the basis of selection according to merit, including the holding of open competitions therefor,

(iv) the practices and procedures of the Board,

(v) the conduct of meetings of the Board,

(vi) the manner of dealing with matters and business before the Board, and

(vii) generally, the carrying on of the work of the Board and the management of the internal affairs of the Board; and

Chief Executive Officer

25 (1) There shall be a Chief Executive Officer of the Board who,

(a) where both the federal Government and the Provincial Government appoint the Chairman as Chief Executive Officer, is the Chairman of the Board; or

(b) in any other case, is to be appointed by the Board by means of an open competition.

Joint approval of appointment

(2) The appointment of a Chief Executive Officer pursuant to clause (b) of subsection (1) is subject to the approval of both Governments.

Failure to make appointment

(3) Where either Government fails to make an appointment pursuant to clause (a) of subsection (1) or to approve the appointment of a Chief Executive Officer pursuant to clause (b) of subsection (1), the Chief Executive Officer shall be appointed by both the federal Government and the Provincial Government after having been selected pursuant to subsection (4) by a panel, consisting of three members and constituted in accordance with Section 43, unless at any time prior to the selection of the Chief Executive Officer by the panel, the two Governments agree on the appointment.

Selection from nominations

(4) The Chief Executive Officer shall be selected from among persons nominated by each Government within sixty days after the appointment of the Chairman of the panel.

Decision of panel binding

(5) The decision of the panel selecting a Chief Executive Officer is final and binding on both Governments.

Section 13(1) applies

(6) Subsection (1) of Section 13 applies, with such modifications as the circumstances require, to the appointment of the Chief Executive Officer pursuant to clause (a) of subsection (1) or subsection (3).

Acting Chief Executive Officer

(7) The Board shall designate a person to act as Chief Executive Officer during any absence or incapacity of that Officer or vacancy in the office of Chief Executive Officer and that person, while acting as Chief Executive Officer, has and may exercise all the powers and perform all of the duties and functions of that office. 1987, c. 3, s. 25.

Officers and employees

26 (1) The Board may, on the recommendation of the Chief Executive Officer, employ such other officers and such employees as are necessary for the Board to properly perform the powers, duties and functions of the Board pursuant to this Act and the Offshore Accord.

Appointment based on merit

(2) The appointment of every person employed pursuant to subsection (1) shall be based on selection according to merit.

Employed person not civil servant

(3) A person employed pursuant to subsection (1) is not considered to be employed in the public service of Canada or the civil service of the Province by virtue of that employment.

Deemed civil servant

(4) For the purpose of being eligible for appointment to a position in the civil service pursuant to the Civil Service Act,

(a) any person who, immediately prior to being employed by the Board, was employed in the civil service shall be deemed to be a person employed in the civil service in the Department of Mines and Energy in the location where that person is performing duties for the Board and in a position of an occupational nature and at a level equivalent to the position in which that person is employed by the Board; and

(b) any person who, immediately prior to being employed by the Board, was not employed in the civil service shall, two years after being employed by the Board, be deemed to be a person employed in the civil service in the Department of Mines and Energy in the location where that person is performing duties for the Board and in a position of an occupational nature and at a level equivalent to the position in which that person is employed by the Board.

"civil service" defined

(5) In this Section, "civil service" has the same meaning as in the Civil Service Act. 1987, c. 3, s. 26.

Appointment of auditor

27 The Board shall appoint an auditor, for such term as is set by the Board, for the purposes of auditing the financial statements of the Board. 1987, c. 3, s. 27.

Board to prepare budget

28 (1) The Board shall, in respect of each fiscal year, prepare a budget for the Board sufficient to permit the Board to properly exercise its powers and perform its duties and functions.

Budget to be submitted to Minister

(2) The budget shall be submitted to the Minister and the federal Minister, at such time as may be specified by each Minister, for their consideration and approval.

Variation of budget

(3) Where it appears that the actual aggregate of the expenditures of the Board in respect of any fiscal year is likely to be substantially greater or less than that estimated in its budget in respect of that fiscal year, the Board shall submit to both Ministers for their consideration and approval a revised budget in respect of that fiscal year containing such particulars as may be requested by either Minister.

Province to pay one half

(4) The Government of Nova Scotia shall pay one half of the aggregate of the expenditures set out in the budget or revised budget, where applicable, submitted and approved pursuant to this Section in respect of each fiscal year.

Payment from Consolidated Fund

(5) The sums required for the payment pursuant to subsection (4) shall be paid out of the Consolidated Fund from time to time as required. 1987, c. 3, s. 28.

Access by Ministers

29 Subject to subsection (2) of Section 19, both the Minister and the federal Minister are entitled to access to the books and accounts of the Board. 1987, c. 3, s. 29.

Board to prepare annual report

30 (1) The Board shall, in respect of each fiscal year, prepare an annual report in both official languages of Canada and submit it to the Minister and the federal Minister not later than ninety days after the expiration of that fiscal year.

Audited financial statement

(2) Each annual report submitted pursuant to subsection (1) shall contain an audited financial statement and a description of the activities of the Board during the fiscal year covered by the report.

Tabling of report

(3) The Minister shall

(a) table the report before the Legislature within fifteen days following submission of the report to the Minister; or

(b) if the Legislature is not then sitting, within fifteen days after the Legislature next sits. 1987, c. 3, s. 30.

Finality of Board powers

31 Subject to this Act, the exercise of a power or the performance of a duty or function by the Board pursuant to this Act is final and not subject to the review or approval of either Government, the Minister or the federal Minister. 1987, c. 3, s. 31.

Notice of fundamental decision

32 (1) Where a fundamental decision is made by the Board, the Board shall, forthwith after making the decision, give written notice of that decision to the Minister and the federal Minister.

Publication of fundamental decision

(2) The Board shall cause a fundamental decision to be published

(a) thirty days after receipt by both ministers of written notice of the decision; or

(b) when the fundamental decision is implemented,

whichever first occurs. 1987, c. 3, s. 32.

Time for implementation

33 (1) Subject to subsection (2), a fundamental decision shall not be implemented

(a) before the expiration of thirty days after receipt by the Minister and the federal Minister of a notice of the fundamental decision and any further period during which the implementation of the decision is suspended or during which the decision may be set aside, the setting aside may be overruled or a determination may be made by the National Energy Board; or

(b) if the decision has been conclusively set aside.

Waiver of time

(2) A fundamental decision may be implemented before the expiration of the periods referred to in clause (a) of subsection (1) where the Board is advised, in writing, that both the Minister and the federal Minister approve that decision.

Implementation of fundamental decision

(3) Where, on the expiration of the periods referred to in clause (a) of subsection (1), a fundamental decision of the Board has not been conclusively set aside, that decision shall be implemented forthwith by the Board. 1987, c. 3, s. 33.

Suspension of implementation

34 (1) The Minister or the federal Minister may, on giving written notice to the other Minister and the Board within thirty days after receipt of a notice of a fundamental decision, suspend the implementation of the decision during a period specified in the notice not exceeding sixty days after receipt of the notice of the decision.

Publication of notice of suspension

(2) The Minister shall publish notice of a suspension by the Minister, pursuant to subsection (1), in the Royal Gazette. 1987, c. 3, s. 34.

Decision may be set aside

35 (1) Within thirty days after receipt by the Minister and the federal Minister of a notice of a fundamental decision and any further period during which the implementation of the decision is suspended, the decision may be set aside

(a) by both the Minister and the federal Minister by written notice thereof to the Board; or

(b) by the Minister, by written notice thereof to the federal Minister and the Board, in the case of

(i) a fundamental decision of the Board referred to in clause (a) of subsection (3) of Section 136, or

(ii) a fundamental decision with respect to a call for bids in relation to, or an interest in relation to, a portion of the offshore area that is situated wholly within the Bay of Fundy or Sable Island,

Federal Minister may set aside

(2) The federal Minister may, by written notice to the Minister and the Board,

(a) set aside a fundamental decision of the Board within thirty days after receipt of a notice of the decision or any further period during which the implementation of the decision is suspended; or

(b) overrule the setting aside of a fundamental decision by the Minister, within thirty days after receipt of a notice to that effect,

if in the opinion of the federal Minister, the decision or setting aside of the decision would unreasonably delay the attainment of security of supply.

Application to National Energy Board

(3) Notwithstanding subsection (2), where the Minister disagrees with the setting aside or overruling by the federal Minister in respect of a fundamental decision pursuant to subsection (2), the National Energy Board shall, on summary application made to it by the Minister,

(a) determine whether the fundamental decision of the Board or the setting aside of that decision would unreasonably delay the attainment of security of supply; and

(b) thereby confirm or vacate the setting aside or overruling by the federal Minister in respect of the fundamental decision.

Determination by National Energy Board

(4) A determination of the National Energy Board pursuant to subsection (3)

(a) shall be made summarily within such time and in such manner as may be prescribed on application by the Minister within such time and in such manner as may be prescribed;