Vol. 148, No. 21 — May 24, 2014

Regulations Amending the Territorial Quarrying Regulations

Statutory authority

Territorial Lands Act

Sponsoring department

Department of Indian Affairs and Northern Development

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Issues

Under the Territorial Quarrying Regulations, a quarry permit is currently issued for up to one year or until the quantity of material applied for has been removed. Quarries used over multiple years require annual applications for permits, which duplicates administrative effort and creates uncertainties.

Background

The Territorial Quarrying Regulations, made under the Territorial Lands Act, apply to territorial lands under the control, management and administration of the Minister of Indian Affairs and Northern Development. In furtherance of the Action Plan to Improve Northern Regulatory Regimes, announced by the Minister of Indian Affairs and Northern Development in May 2010, the amendments will bring the Territorial Quarrying Regulations in step with current operating realities and make quarrying processes more efficient for industry and government in the North.

The quarry sector in the North is a small but critical industry. Almost all physical developments will require some type of quarried material; whether gravel for a driveway to a house or the large range and large quantity of materials needed to build the complex infrastructure of mineral or petroleum developments. Growth in this sector is largely dependent on spending on industrial developments and on public infrastructure, but the efficiency of the regulatory system can also have a great impact on the competitiveness of smaller operators. Applicants range from individuals or small companies — who may take a small volume of material from the same pit year after year, to large multinationals, who may need a huge quantity of material in one or several construction seasons.

Quarry permits allow the taking of a specified quantity of material from Crown lands, but a land use permit is also required to access the land covered by the quarry permit. The land use permit contains operating conditions and provides a linkage to the environmental assessment, monitoring and enforcement processes.

The proposed amendments to the Territorial Quarrying Regulations are administrative in nature and will provide consistency for companies and regulators.

Objectives

The objectives of the proposed amendments are to reduce the administrative burden on proponents of having to annually reapply for the use of the same quarrying area and to modernize the language used in certain provisions of the Territorial Quarrying Regulations.

Under the Territorial Quarrying Regulations, a quarry permit is issued for up to one year or until the quantity of material applied for has been removed. Usage of quarries over multiple years requires annual applications for permits, which duplicates administrative effort and creates uncertainties. The proposed amendments will increase the length of a quarry permit from one year to a maximum of three years.

While not reducing or changing how quarry permit applications are reviewed for environmental impacts, the amendments will alleviate some of the administrative burden on industry and on internal processing.

There are no costs associated with the proposed amendments as they are administrative in nature. There will be no changes to the fees associated with quarry permit applications or the fees, rentals and royalties as set out in Schedules I and II of the Territorial Quarrying Regulations.

Description

Under the current system, quarry permits expire on the date when the quantity of material authorized is removed or one year after issuance, whichever is sooner. This means that many operators will require a new permit every year. A recent review of quarry permit files showed that 85% of applicants would be better served with a three-year permit. The three-year term also fits well with the proposed changes to the length of a land use permit, in that it allows for a year of site investigation and site preparation prior to the commencement of extraction operations (covered by a quarry permit) and a year for abandonment and closure. For longer term quarry operations, the Territorial Quarrying Regulations provide for the issuance of leases.

Moreover, land use inspections are based on risk assessment, but more detailed inspection is required to close a land use permit file. The proposed changes to the length of a term will better link the cycles of the quarry and land use permits and ensure more efficiency in inspections.

The proposed amendments to the Territorial Quarrying Regulations will help improve how quarrying operations are managed and will also help improve the northern regulatory environment. For example, by changing the length of the term, from one year to a maximum of three years, the administrative burden will be reduced by not having to re-apply every year for use of the same area.

By including Nunavut and changing the measurements from imperial units to metric, the Territorial Quarrying Regulations are brought up to standards that are reflective of the current working environment in the North. In addition to clarifying some of the definitions, the proposed amendments also simplify some of the clauses, making them clearer for users.

The long title of the Territorial Quarrying Regulations itemizes a number of materials that may be disposed of under the Regulations but does not currently define them. The proposed change removes the named material from the title and adds it to the definition section of the Regulations, thereby providing greater precision, clarity and certainty with regard to the materials covered under the Regulations.

With the creation of the Nunavut Land Claims Agreement, certain rights were guaranteed to the Inuit with regard to carving stone. A definition of “carving stone” and a section prescribing the Inuit rights to carving stone in Nunavut have been added to the Regulations.

“One-for-One” Rule

The “One-for-One” Rule applies to the proposal, which is considered an “out” (decrease of the administrative costs to business).

Changing the length of the permit term from one year to a maximum of three years affords more flexibility to companies to plan their activities. The proposed changes will also relieve some of the administrative burden on companies and the Crown by eliminating the need to reapply for a permit after one year.

It is expected that the length of time to apply for a quarry permit or renewal will not change but the longer term will result in fewer renewals. Out of the average of 20 applicants per year, based on data for the past 10 years, an average of 25% of applicants would have to reapply after 1 year. These renewals will now be avoided with the longer term for a quarry permit.

The average annual savings for each stakeholder is projected to be approximately $116. The average annual savings for all stakeholders is projected to be $2,314. The annual savings, for the 25% of the total stakeholders that would be affected, is based on information gathered from, and through experience working directly with, proponents in the development, submission and implementation of land use permits and data over a 10-year period. As a result of the proposed amendments, stakeholders will save time obtaining information, completing the quarrying application, submitting the application and following up on and implementing the quarry permit. In total, it is estimated that each affected stakeholder will save, at a minimum, 27 hours in labour time.

Small business lens

The small business lens does not apply to this proposal as the overall costs are less than $1 million and there is no burden imposed on small business.

Consultation

In January, March and April 2010, Aboriginal Affairs and Northern Development Canada held informal and formal discussions with industry and potential stakeholders in Vancouver, British Columbia, at the Mineral Exploration Round Up; in Toronto, Ontario, at the Prospectors and Developers Association of Canada Conference; and in Iqaluit, Nunavut, at the Nunavut Mining Symposium. In general, the comments were supportive of the proposed changes.

A consultation document, including a supporting letter and the proposed amendments, was distributed for comments on March 4, 2010, to stakeholders in the Northwest Territories and Nunavut, including municipal, territorial and federal government departments, Aboriginal governments and organizations, various land and water boards and environmental boards and industry groups. Comments were requested by April 30, 2010.

Community meetings were also arranged and held in three locations to discuss the potential amendments. The meetings took place on March 22, 2010, in Inuvik, Northwest Territories; on March 23, 2010, in Yellowknife, Northwest Territories; and on March 25, 2010, in Iqaluit, Nunavut. Approximately 30 people, in total, attended these meetings.

In June 2012, a new consultation document and supporting letter with the proposed amendments were distributed for comments to the same stakeholders as for the March 4, 2010, distribution. Comments were requested by July 20, 2012.

In general, the comments were supportive of the proposed amendments. An issue was raised regarding the proposed definition of “material” and the definition of a “mineral,” under the Northwest Territories and Nunavut Mining Regulations. The issue was resolved to ensure that there is no duplication. More specifically, the Territorial Quarrying Regulations cover loam, carving stone and other relatively low-value materials that are used primarily for construction purposes, while the Northwest Territories and Nunavut Mining Regulations cover relatively higher-value commodities that are extracted from the ground, based on their mineral content, but do not include those commodities covered by the Territorial Quarrying Regulations. Concerns about language and minor technical issues were also taken into account in the drafting of the proposed amendments to the Regulations.

Rationale

The proposed amendments to the Territorial Quarrying Regulations make quarrying processes more efficient for industry and the Government in the North. In furtherance of the Action Plan to Improve Northern Regulatory Regimes, announced by the Minister of Indian Affairs and Northern Development in May 2010, the amendments will bring the Regulations in line with current operating realities and make the process more efficient for industry and the Government in the North.

Implementation, enforcement and service standards

The proposed amendments will come into force on the day on which they are registered. Aboriginal Affairs and Northern Development Canada will continue communication regarding all aspects of the amendments to the Territorial Quarrying Regulations and will be informing stakeholders through news releases and letters and/or notices to target audiences.

As the proposed regulatory amendments do not impact Aboriginal Affairs and Northern Development Canada’s role or mandate, no additional mechanisms to ensure compliance with the new requirements are needed and use will continue to be made of the Department’s existing enforcement and compliance tools.

Contacts

Glen Stephens
Director
Land and Water Management Directorate
Northern Affairs Organization
Aboriginal Affairs and Northern Development Canada
Gatineau, Quebec
Telephone: 819-994-7483
Fax: 819-997-9623
Email: Glen.Stephens@aadnc-aandc.gc.ca

Bob Gowan
Manager
Land Programs
Land and Water Management Directorate
Northern Affairs Organization
Aboriginal Affairs and Northern Development Canada
Gatineau, Quebec
Telephone: 819-994-7464
Fax: 819-997-9623
Email: Bob.Gowan@aadnc-aandc.gc.ca

PROPOSED REGULATORY TEXT

Notice is given, pursuant to section 24 of the Territorial Lands Act (see footnote a), that the Governor in Council, pursuant to section 5 and paragraphs 23(j) and (l) of that Act, proposes to make the annexed Regulations Amending the Territorial Quarrying Regulations.

Interested persons may make representations concerning the proposed Regulations within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Jeffrey Holwell, Senior Policy Analyst, Land and Water Management Directorate, Northern Affairs, Department of Aboriginal Affairs and Northern Development, 15 Eddy Street, 10th Floor, Gatineau, Quebec K1A 0H4 (tel.: 819-997-9243; fax: 819-997-9623; email: Jeffrey.Holwell@aadnc-aandc.gc.ca).

Ottawa, May 15, 2014

JURICA ČAPKUN
Assistant Clerk of the Privy Council

REGULATIONS AMENDING THE TERRITORIAL QUARRYING REGULATIONS

AMENDMENTS

1. The long title of the Territorial Quarrying Regulations (see footnote 1) is replaced by the following:

TERRITORIAL QUARRYING REGULATIONS

2. Section 1 of the Regulations and the heading before it are repealed.

3. (1) The definitions “director” and “dues” in section 2 of the Regulations are repealed.

(2) Section 2 of the Regulations is amended by adding the following in alphabetical order:

“carving stone” means serpentinite, argillite or soapstone that is suitable for carving; (pierre à sculpter)

“loam” means soil containing a mixture of sand, silt, clay and decomposed plant matter; (terreau)

“material” means carving stone, loam or any naturally occurring inorganic substance used in construction, including gravel, sand, stone, limestone, granite, slate, marble, gypsum, shale, clay, marl and volcanic ash; (matière)

4. The Regulations are amended by adding the following after section 3:

3.1 In Nunavut, a permit or lease authorizing the quarrying of carving stone on Crown lands for carving purposes, or for the disposal of carving stone for carving purposes, may only be granted to a Designated Inuit Organization, in accordance with the Agreement Between the Inuit of the Nunavut Settlement Area and Her Majesty the Queen in Right of Canada.

5. (1) Subsections 4(1) and (2) of the Regulations are replaced by the following:

4. (1) A person who desires to obtain a lease of territorial lands for the purpose of taking material from those lands shall stake those lands in the manner prescribed in this section.

(2) In the case of loam, the area staked shall not exceed 8.1 hectares, and in the case of any other material, the area shall not exceed 64.8 hectares.

(2.1) The length of the area staked shall not exceed twice its width.

(2) Subsections 4(5) to (8) of the Regulations are replaced by the following:

(5) Each post shall be at least 10 centimetres square and when firmly planted shall be at least 1.2 metres above the ground.

(6) Each post shall bear markings showing the number of the post, the name of the applicant, the date of staking and the type of material to be removed.

(7) If a rock cairn is used, it shall be well constructed and at least 60 centimetres high and 60 centimetres in diameter at the base. A metal container shall be built into the cairn and shall contain a document bearing the number of the cairn, the name of the applicant, the date of staking and the type of the material to be removed.

(8) In a timbered area, the lines between the posts shall be clearly marked.

6. Section 5 of the Regulations is replaced by the following:

5. Territorial lands containing material may be leased by the Minister for the sole purpose of quarrying or removing material that is specified in the lease.

7. (1) Paragraph 6(3)(b) of the Regulations is replaced by the following:

(2) Subparagraphs 6(3)(d)(i) and (ii) of the Regulations are replaced by the following:

8. Sections 10 and 11 of the Regulations are replaced by the following:

10. (1) Subject to subsection (2), any person resident in the Northwest Territories or Nunavut may, without any charge or permit, take from territorial lands in any calendar year not more than

(2) Subsection (1) applies only if

9. Subsections 12(1) to (3) of the Regulations are replaced by the following:

12. (1) Any person may apply for a permit to take material from territorial lands by filing with a territorial land agent an application that

(2) There is no application fee and no royalty payable by any of the following persons or entities:

(2.1) On receipt of an application referred to in subsection (1), the territorial land agent shall issue to the applicant a permit for a period based on the estimated dates of commencement and completion as set out in the permit application but not exceeding three years.

(3) Despite subsection (2.1), a permit expires on the day on which the quantity of material mentioned in the permit has been quarried and removed.

10. Schedule II to the Regulations is replaced by the Schedule II set out in the schedule to these Regulations.

COMING INTO FORCE

11. These Regulations come into force on the day on which they are registered.

SCHEDULE
(Section 10)

SCHEDULE II
(Sections 6 and 14)

RENTALS AND ROYALTIES

Item Column I

Rental or Royalty
Column II

Rate ($)
1. Rental for first year of lease 100.00/ha
2. Royalty on sand, gravel or loam 1.50/m3
3. Royalty on other material 1.25/m3

[21-1-o]