Vol. 150, No. 13 — June 29, 2016
SOR/2016-131 June 13, 2016
TERRITORIAL LANDS ACT
Regulations Amending the Territorial Quarrying Regulations
P.C. 2016-471 June 10, 2016
Whereas, pursuant to section 6 (see footnote a) of the Territorial Lands Act (see footnote b), the Governor in Council has consulted with the Legislative Assemblies of the Northwest Territories and Nunavut;
And whereas, pursuant to section 24 of that Act, a copy of the proposed Regulations Amending the Territorial Quarrying Regulations, substantially in the annexed form, was published in the Canada Gazette, Part I, on May 24, 2014 and a reasonable opportunity was afforded to interested persons to make representations to the Minister of Indian Affairs and Northern Development with respect to the proposed Regulations;
Therefore, His Excellency the Governor General in Council, on the recommendation of the Minister of Indian Affairs and Northern Development, pursuant to section 5 and paragraphs 23(j) and (l) of the Territorial Lands Act (see footnote c), makes the annexed Regulations Amending the Territorial Quarrying Regulations.
Regulations Amending the Territorial Quarrying Regulations
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2 Section 1 of the Regulations and the heading before it are repealed.
3 (1) The definitions director and dues in section 2 of the Regulations are repealed.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 material to be removed.
(8) In a timbered area, the lines between the posts shall be clearly marked.
(3) Subsection 4(9) of the English version of the Regulations is replaced by the following:
(9) The applicant shall post a written or printed notice on a post or in a cairn setting out their intention to apply for a lease within the time prescribed by these Regulations.
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:
- (b) the type of material that the applicant desires to remove from the area;
(2) Subparagraphs 6(3)(d)(i) and (ii) of the Regulations are replaced by the following:
- (i) that they have complied with all the provisions of these Regulations, and
- (ii) that the land contains material of the type applied for in merchantable quantities.
8 Section 9 of the English version of the Regulations is replaced by the following:
9 Where, in the opinion of the Minister, the lessee has complied with the terms of their lease and these Regulations, the Minister may renew the lease for a further term not exceeding 10 years.
9 The heading before section 10 and sections 10 and 11 of the Regulations are replaced by the following:
Loam, Sand, Gravel and Stone for Use of Residents
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
- (a) 10 cubic metres of loam; and
- (b) 40 cubic metres of sand, gravel or stone.
(2) Subsection (1) applies only if
- (a) no interest in the surface rights of the affected lands has been licensed, leased or otherwise disposed of by the Crown; and
- (b) the material taken is for the taker’s own use but not for barter or sale.
10 (1) 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
- (a) is in the form prescribed by the Minister; and
- (b) subject to subsection (2), is accompanied by payment of the application fee set out in Schedule I and the royalties payable under section 14.
(2) There is no application fee and no royalty payable by any of the following persons or entities:
- (a) a department of the Government of Canada;
- (b) the Commissioner of the Northwest Territories;
- (c) the Commissioner of Nunavut;
- (d) any municipal district in the Northwest Territories or Nunavut;
- (e) any educational, religious or charitable institution or hospital in the Northwest Territories or Nunavut.
(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.
(2) Subsection 12(5) of the English version of the Regulations is replaced by the following:
(5) If a permittee has not complied with these Regulations or the conditions of their permit, the Minister may cancel the permit.
11 Schedule II to the Regulations is replaced by the Schedule II set out in the schedule to these Regulations.
Coming into Force
12 These Regulations come into force on the day on which they are registered.
(Subsection 6(2) and section 14)
Rentals and Royalties
Rental for first year of lease
Royalty on sand, gravel or loam
Royalty on other material
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Regulations.)
Under the Territorial Quarrying Regulations, a quarrying permit is currently issued for up to one year or until the amount of material applied for has been removed. Quarries used over multiple years require annual applications for permits, which duplicates administrative effort and creates uncertainties. The amendments to the Territorial Quarrying Regulations address these issues and other minor changes that are strictly administrative in nature.
The Territorial Quarrying Regulations, made under the Territorial Lands Act, apply to territorial lands in the Northwest Territories and Nunavut under the control, management and administration of the Minister of Indian Affairs and Northern Development. The amendments bring the Territorial Quarrying Regulations in step with current operating realities and will 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 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.
Quarrying 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 quarrying permit. The land use permit contains terms and conditions and provides a linkage to the environmental assessment (i.e. screening), monitoring and enforcement processes.
The amendments to the Territorial Quarrying Regulations are administrative in nature and will provide consistency for companies and regulators.
The objectives of the 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 previous Territorial Quarrying Regulations, a quarrying permit was issued for up to one year or until the amount of material applied for had been removed. Usage of quarries over multiple years required annual applications for quarrying permits, which duplicated administrative effort and created uncertainties. The amendments increase the length of a quarrying permit from one year to a maximum of three years.
While not reducing or changing how quarrying 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 amendments, as they are administrative in nature. Moreover, there are no changes to the fees associated with quarrying permit applications or the fees, rentals and royalties, as set out in Schedules I and II of the Territorial Quarrying Regulations.
Previously, quarrying permits would 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 would require a new permit every year. A review of quarrying permit files showed that 85% of applicants would be better served by the issuance of a three-year maximum permit. The three-year maximum term also complements the changes to the duration 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 quarrying permit) and a year for abandonment and closure. The changes to the term of a quarrying permit will better link the cycles of the quarrying operation with the land use permit. For longer term quarrying operations, the Territorial Quarrying Regulations will continue to provide for the issuance of a quarrying lease, instead of a quarrying permit, up to a term of 10 years with a further renewal term not exceeding 10 years; subject to the decision of the Minister of Indian Affairs and Northern Development.
The amendments to the Territorial Quarrying Regulations will improve how quarrying operations are managed and will also improve the northern regulatory environment. For example, by changing the length of the quarrying permit 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 amendments also simplify the language used in some of the clauses; modernizing them and rendering them more intelligible.
The long title of the Territorial Quarrying Regulations itemizes a number of materials that may be disposed of under the Regulations but did not define them. The change removes the named material from the title and adds it to the definition section; 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 respecting the Inuit rights to carving stone in Nunavut, have been added to the Regulations.
The “One-for-One” Rule applies to these amendments and they are considered an “OUT” (decrease of the administrative costs on business) under the Rule.
Changing the length of the quarrying permit term, from one year to a maximum of three years, affords more flexibility to companies to plan their activities. The changes will also relieve some of the administrative burden on companies and the Crown from having to re-apply for a quarrying permit after one year.
It is expected that the length of time to apply for a quarrying 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 re-apply after one year. These frequent quarrying permit renewals will now be avoided with the longer three year maximum term.
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 quarrying permits and data over a 10-year period. As a result of the amendments, stakeholders will save time obtaining information, completing the quarrying application, submitting the application, following up on any issues and implementing the quarrying 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 these amendments, as the overall costs are less than $1 million and there is no burden imposed on small business.
In January, March and April 2010, Indigenous and Northern Affairs Canada held informal and formal discussions with industry and potential stakeholders at the Mineral Exploration Roundup 2010 in Vancouver, British Columbia; at the Prospectors and Developers Association of Canada Convention in Toronto, Ontario; and at the Nunavut Mining Symposium in Iqaluit, Nunavut. 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, which included municipalities, territorial and federal government departments, Indigenous governments and organizations, various land and water boards, 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 proposed 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 attended these meetings.
In June 2012, a new consultation document and supporting letter with the proposed amendments was distributed for comments to the same stakeholders as 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 (now repealed and replaced by the Northwest Territories Mining Regulations and the Nunavut Mining Regulations). The issue has been addressed 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 Mining Regulations and the Nunavut Mining Regulations cover the relatively higher value commodities that are extracted from the ground, based on their mineral content, but not including 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 Territorial Quarrying Regulations.
The proposed amendments were prepublished in Part I of the Canada Gazette on May 24, 2014, for a consultation period of 30 days. No comments were received.
The amendments to the Territorial Quarrying Regulations make quarrying processes more efficient for industry and government in the North. The amendments bring the Regulations in step with current operating realities and will make the process more efficient for industry and government in the North.
Implementation, enforcement and service standards
The amendments to the Territorial Quarrying Regulations come into force on the day on which they are registered. Indigenous and Northern Affairs Canada will continue to communicate regarding all aspects of the amendments and will be informing stakeholders through news releases and letters and/or notices to target audiences.
As the regulatory amendments do not impact Indigenous and Northern Affairs 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.
Land and Water Management
Northern Affairs Organization
Indigenous and Northern Affairs Canada