Vol. 149, No. 28 — July 11, 2015

Canada–Newfoundland and Labrador Offshore Petroleum Financial Requirements Regulations

Statutory authority

Canada–Newfoundland and Labrador Atlantic Accord Implementation Act

Sponsoring departments

Department of Natural Resources and Department of Indian Affairs and Northern Development

REGULATORY IMPACT ANALYSIS STATEMENT

For the Regulatory Impact Analysis Statement, see the Canada Oil and Gas Operations Financial Requirements Regulations.

PROPOSED REGULATORY TEXT

Notice is given, pursuant to subsection 150(1) of the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act (see footnote a), that the Governor in Council, pursuant to subsection 149(1) (see footnote b) of that Act, proposes to make the annexed Canada–Newfoundland and Labrador Offshore Petroleum Financial Requirements 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, Frontier Lands Management Division, Natural Resources Canada, 580 Booth Street, Ottawa, ON K1A 0E4 (tel.: 613-992-4217; email: daniel.morin@nrcan-rncan.gc.ca).

Ottawa, June 18, 2015

JURICA ČAPKUN
Assistant Clerk of the Privy Council

CANADA–NEWFOUNDLAND AND LABRADOR OFFSHORE PETROLEUM FINANCIAL REQUIREMENTS REGULATIONS

INTERPRETATION

Definition of “Act”

1. In these Regulations, “Act” means the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act.

FINANCIAL RESOURCES

Proof of financial resources

2. (1) For the purposes of subsection 162.1(1) of the Act, the proof that an applicant has the necessary financial resources is to be made by the applicant providing the Board with a statement of its net assets or of funding arrangements that it has made that demonstrates to the Board’s satisfaction that it is able to pay the applicable amount referred to in that subsection.

Substantiating documents

(2) The statement must be accompanied by one or more of the following documents that substantiate it:

Audited statement and documents

(3) For greater certainty, the Board may require that an applicant provide a statement of net assets or funding arrangements, and substantiating documents, that have been audited by a qualified independent auditor and a report of the audit signed by that auditor.

FINANCIAL RESPONSIBILITY

Requirements of pooled fund

3. For the purposes of subsection 163(1.01) of the Act,

Reimbursement into pooled fund

4. For the purposes of subsection 163(5) of the Act, the reimbursement into the pooled fund of an amount that is paid out of that fund to the Board, the Canada-Nova Scotia Offshore Petroleum Board or the National Energy Board must be made by the holder of an authorization referred to in that subsection within seven days after the day on which the payment is made.

BOARD RECOMMENDATION REGARDING LESSER FINANCIAL REQUIREMENTS

Circumstances relating to recommendation

5. (1) For the purposes of subsection 163.1(1) of the Act, the Board may make a recommendation to the Federal Minister in respect of an applicant if the Board is satisfied that the estimated total of the losses, damages, costs and expenses — other than losses of non-use value — for which the applicant may be liable under paragraphs 162(1)(b) and (2)(b) of the Act in connection with the proposed work or activity to which the application pertains is less than the amount referred to in paragraph 162(2.2)(a) or (b) of the Act.

Recommendation

(2) The recommendation must identify the hazards that are relevant to the proposed work or activity to which the application pertains and must include an assessment of the risks associated with each event that could reasonably be expected to occur in connection with each of those hazards and that could result in debris, in a spill or in an authorized discharge, emission or escape of petroleum.

Required information

(3) The following information must accompany the Board’s recommendation:

Additional information

(4) The Board may submit to the Federal Minister any other information that it considers to be pertinent.

REPEAL

6. The Canada-Newfoundland Oil and Gas Spills and Debris Liability Regulations (see footnote 1) are repealed.

COMING INTO FORCE

S.C. 2015, c. 4

7. These Regulations come into force on the day on which section 61 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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