Vol. 149, No. 28 — July 11, 2015

Canada–Nova Scotia Offshore Petroleum Cost Recovery Regulations

Statutory authority

Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act

Sponsoring department

Department of Natural Resources

REGULATORY IMPACT ANALYSIS STATEMENT

For the Regulatory Impact Analysis Statement, see the Canada–Newfoundland and Labrador Offshore Petroleum Cost Recovery Regulations.

PROPOSED REGULATORY TEXT

Notice is given that the Governor in Council, pursuant to section 30.1 (see footnote a) of the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act (see footnote b), proposes to make the annexed Canada–Nova Scotia Offshore Petroleum Cost Recovery 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 Daniel Morin, Policy Analyst, Offshore Petroleum Management Division, Natural Resources Canada, 580 Booth St., Ottawa, Ontario K1A 0E4 (tel.: 613-992-4217; fax: 613-943-2274; email: daniel.morin@nrcan-rncan.gc.ca).

Ottawa, June 18, 2015

JURICA ČAPKUN
Assistant Clerk of the Privy Council

CANADA–NOVA SCOTIA OFFSHORE PETROLEUM COST RECOVERY REGULATIONS

INTERPRETATION

Definitions

1. The following definitions apply in these Regulations.

“Act”
« Loi »

“Act” means the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act.

“actual full cost”
« coût entier réel »

“actual full cost” means the full cost confirmed by the Board’s audited financial statements.

“direct regulatory activities”
« activités de réglementation directes »

“direct regulatory activities” means the activities, such as assessing applications, issuing licences, granting approvals and authorizations, verifying and enforcing compliance with the Act and providing information, products and services, that are required for the Board to fulfil its regulatory responsibilities.

“indirect regulatory costs”
« coûts de réglementation indirects »

“indirect regulatory costs” means the costs of activities that support direct regulatory activities of the Board such as office accommodation, supplies and equipment, professional services, communications, travel, management, training, administration, human resources services, finance, information technology services, hardware and software, the preparation of documents (including policies, standards, guidelines, procedures and notices) and the provision of technical expertise (including the updating of regulations) to the Federal Minister or the Provincial Minister at that Minister’s request.

“project”
« projet »

“project” means the work or the activity referred to in paragraph 142(1)(b) of the Act.

PART 1

REGULATORY ACTIVITY PLAN CHARGES

ESTIMATED ANNUAL CHARGE

Regulatory activity plan

2. For each new project relating to development, production, abandonment, exploratory drilling or multi-year or complex seismic programs in respect of petroleum operations, on receipt of a project description or letter of intent, the Board must

Existing project

3. For each existing project that was previously under a regulatory activity plan, after confirmation of the Board’s budget in any given fiscal year, the Board must

Recalculation

4. If an applicant or operator proposes changes to its project that are not reflected in the regulatory activity plan, the Board may recalculate the estimated annual charge for that project and adjust the payable amount accordingly.

QUARTERLY INVOICING

Invoice

5. (1) The Board must, on a quarterly basis, prepare and send an invoice for an amount equal to 25% of the estimated annual charge payable to each applicant or operator who has been notified under paragraph 2(c) or 3(c).

Payment within 30 days

(2) Within 30 days after the date of the invoice, the applicant or the operator must pay the amount invoiced.

ANNUAL CHARGE ADJUSTMENT

Annual adjustment

6. (1) Each year, following the end of the fiscal year, the Board must, for each project under a regulatory activity plan,

Effect of adjustment

(2) If the actual full cost calculated under paragraph (1)(a) is

PART 2

FORMULA FEES

INTERPRETATION

Interpretation

7. In this Part,

FORMULAS

Basic formula

8. (1) The fees for the activities set out in the table to this subsection are determined by the formula

A × D

where

A is the base units of time; and

D is the effective rate.

TABLE

Item Activity
1. Application for a declaration of significant discovery
2. Application for a declaration of commercial discovery
3. Application for a significant discovery licence
4. Application for a licence for subsurface storage
5. Application for a production licence
6. Application for an amendment to a licence or a consolidation of licences
7. Registration of a transfer
8. Registration of a security notice
9. Registration of an interest
10. Recording of a notice
11. Registration of an instrument other than a transfer or security notice
12. Application for an extension, by order, of the term of a production licence
13. Application for allowable expenditures

Formula without variable units of time

(2) The fees for the activities set out in column 2 of the table to this subsection are determined by the formula

A × C × D

where

A is the base units of time;

C is the heavy burden coefficient; and

D is the effective rate.

TABLE

Item Column 1

Category of Activity
Column 2

Activity
1. Geological operations authorization (with field work) Geochemical study
2. Geophysical (without field work) Geophysical study
3. Geological (without field work) Purchase of geological studies
4. Geological (without field work) Isotope age dating
5. Geological (without field work) In-house geological studies
6. Geological (without field work) Petrography
7. Geological (without field work) Paleontological or palynological study
8. Geological (without field work) Other geophysical activity
9. Annual compliance fee All geophysical projects

Formula with variable units of time

(3) The fees for the activities set out in column 2 of the table to this subsection are determined by the formula

(A + B) × (C × D)

where

A is the base units of time;

B is the variable units of time per primary vessel or aircraft multiplied by the number of primary vessels or aircraft used in a project;

C is the heavy burden coefficient; and

D is the effective rate.

TABLE

Item Column 1

Category of Activity
Column 2

Activity
Column 3

Variable
1. Geophysical operations authorization (with field work) 2-D seismic reflection survey (primary activity) Primary vessel
2. Geophysical operations authorization (with field work) 3-D seismic reflection survey (primary activity) Primary vessel
3. Geophysical operations authorization (with field work) 4-D seismic reflection survey (primary activity) Primary vessel
4. Geophysical operations authorization (with field work) Seafloor gravity survey (primary activity) Primary vessel
5. Geophysical operations authorization (with field work) Seismic refraction survey (primary activity) Primary vessel
6. Geophysical operations authorization (with field work) Controlled source electromagnetic survey Primary vessel
7. Geophysical operations authorization (with field work) Other geophysical program Primary vessel
8. Geophysical operations authorization (with field work) Aeromagnetic survey (primary activity) Aircraft
9. Geotechnical authorization (seabed survey) Piston core Primary vessel
10. Geotechnical authorization (seabed survey) Shallow seismic, seabed survey Primary vessel
PUBLICATION

Publication by Board

9. Before the beginning of each fiscal year, the Board must publish, by electronic or other means that is likely to reach applicants and operators, the base units of time, the variable units of time and the effective rate for each activity set out in the tables to section 8.

PAYMENT OF FEES

Fees calculated under section 8

10. (1) On the submission of an application in respect of an activity set out in either table to section 8, the applicant must pay to the Board the fee determined in accordance with that section.

Heavy burden coefficient

(2) If the Board uses a heavy burden coefficient to calculate an additional charge in respect of an activity, the Board must invoice the applicant or the operator and the applicant or operator must pay that amount to the Board within 30 days after the date of the invoice.

PART 3

GEODATA CENTRE

Definition of “daily access rate”

11. In this Part, the daily access rate is the rate established and published by the Board by electronic or other means that is likely to reach applicants and operators.

Sample access fee

12. Any person, except a person requesting access for an academic purpose, the Federal Minister and the Provincial Minister, who accesses a physical sample at the geodata centre must pay the daily access rate for each day the sample is accessed.

PART 4

OTHER CHARGES

Reimbursement of Board costs

13. The Board may require reimbursement for 100% of its costs for activities that are not set out in Parts 1 to 3 and that are related to the following:

PART 5

GENERAL

INTEREST

Compound interest rate of 1.5%

14. Interest on an amount owing to the Board must be calculated and compounded monthly at the rate of 1.5% and is payable and accrues during the period beginning on the due date and ending on the day before the day on which the payment is received by the Board.

REMITTANCE OF FEES AND CHARGES

Remittance

15. For the purposes of section 30.3 of the Act, the fees and charges obtained in accordance with these Regulations must be remitted on a quarterly basis subject to the Board’s operational requirements.

PART 6

TRANSITIONAL AND COMING INTO FORCE

TRANSITIONAL PROVISION

Non-application of section 3

16. (1) Section 3 does not apply to a project that relates to development, production, abandonment, exploratory drilling or multi-year or complex seismic programs if the applicant or operator has paid 100% of the Board’s estimated costs for the project for the fiscal year in which these Regulations come into force.

Presumption

(2) All existing projects relating to development, production, abandonment, exploratory drilling or multiyear or complex seismic programs that are under the Board’s regulatory authority before these Regulations come into force and that do not have a regulatory activity plan are considered to have been previously under a regulatory activity plan for the purposes of section 3.

COMING INTO FORCE

S.C. 2015, c. 4

17. These Regulations come into force on the day on which section 74 of the Energy Safety and Security Act comes into force but if they are registered after that day, they come into force on the day on which they are registered.

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