this Act and the regulations made under this Act take precedence.

(2) The federal minister may issue charts setting out the offshore area or a portion of the offshore area that may be set out consistent with the nature and scale of the chart.

(3) In a legal or other proceeding, a chart purporting to be issued under the authority of the federal minister is conclusive proof of the limits of the offshore area or portion of the offshore area set out in the chart without proof of the signature or official character of the person purporting to have issued the chart.

(2) Where a dispute between the province and another province that is a party to an agreement arises in relation to a line or portion of a line prescribed or to be prescribed for the purpose of the definition "offshore area" in paragraph 2(o) and the Government of Canada is unable, by means of negotiation, to bring about a resolution of the dispute within a reasonable time, the dispute shall, at the time that the federal minister considers appropriate, be referred to an impartial person, tribunal or body and settled by means of the procedure determined in accordance with subsection (3).

(3) For the purpose of this section, the person, tribunal or body to which a dispute is to be referred, the constitution and membership of a tribunal or body and the procedures for the settlement of a dispute shall be determined by the federal minister after consultation with the provinces concerned in the dispute.

(4) Where the procedure for the settlement of a dispute under this section involves arbitration, the arbitrator shall apply the principles of international law governing maritime boundary delimitation, with the modifications that the circumstances require.

(5) Notwithstanding section 7 of the federal Act, where a dispute is settled under this section and a regulation under subsection 5(1) prescribing the line in relation to which the dispute arose is made in accordance with the settlement, the regulation is not subject to the procedure set out in section 7 of the federal Act with respect to the portion of the line to which the dispute related.

(2) Part I of the Petroleum and Natural Gas Act and the regulations made under Part I of that Act do not apply within the offshore area.

(2) The board shall be treated as having been established under a law of the province.

(3) The board has the legal powers and capacities of a corporation incorporated under the Canada Business Corporations Act (Canada), including those set out in section 20 of the Interpretation Act.

(4) The board may only be dissolved by the joint operation of an Act of the Parliament of Canada and an Act of the Legislature.

(2) Three members of the board are to be appointed by the federal government, 3 by the provincial government and the chairperson of the board is to be appointed by both the federal government and the provincial government.

(3) One or 2 members of the board may be designated to be vice-chairpersons of the board if they are so designated by both the federal government and the provincial government.

(4) The designation of a vice-chairperson of the board under subsection (3) is effective after both governments have each made the designation.

(5) Each government may appoint 1 alternate member to act as a member of the board in the absence of a member of the board appointed by that government.

(6) Notwithstanding subsection (2) or (5), a member or alternate member of the board may be appointed by both the federal government and the provincial government.

(2) In this section, "public service of Canada" has the same meaning as in the federal Act.

whichever occurs earlier.

(2) Where the 2 governments fail to agree on the appointment of the chairperson of the board within 3 months after the beginning of consultation between the governments, the chairperson shall be selected by a panel, consisting of 3 members and constituted in accordance with this section, unless, prior to the selection of the chairperson by the panel, the 2 governments agree on the appointment.

(3) One member of the panel shall be appointed by each government within 30 days after the 3 months referred to in subsection (2).

(4) The chairperson of the panel shall be appointed

(5) The chairperson of the board shall be selected by the panel within 60 days after the appointment of the chairperson of the panel.

(6) The decision of the panel selecting a chairperson of the board is final and binding on both governments.

(2) The salary and other terms and conditions of the appointment of a member appointed by either the federal government or the provincial government shall be agreed on by both governments.

(2) The 1st 3 members of the board to be appointed by each government shall be appointed for terms of 4, 5 and 6 years, respectively.

(3) On the expiration of the initial terms of office referred to in subsections (1) and (2), the chairperson and members of the board shall be appointed for terms of 6 years.

(4) A member of the board, including the chairperson, shall hold office during good behaviour, but may be removed for cause

(5) On the expiration of a term of office, the chairperson or a member of the board is eligible for reappointment.

(2) The board shall purchase and maintain insurance for the benefit of 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 any liability incurred by that person in the capacity of such a member, officer or employee, except where the liability relates to a failure to act honestly and in good faith with regard to the best interests of the board.

(3) For greater certainty, the expenditures of the board associated with purchasing and maintaining the insurance referred to in subsection (2) shall form part of the budget or revised budget of the board in respect of a fiscal year.

(4) Notwithstanding subsection (2), where the board has established to the satisfaction of the provincial minister the impossibility of purchasing and maintaining the insurance referred to in subsection (2), the government of the province shall indemnify a person who is a present or former member, officer or employee of the board, or the heirs or legal representatives of that person, against all costs, charges and expenses, including an amount paid to settle an action or satisfy a judgment, reasonably incurred in respect of a 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, where that person

(5) Where the board has purchased and maintained insurance referred to in subsection (2), the government of the province shall indemnify a person referred to in that subsection, or the heirs or legal representatives of that person, for any liability incurred by that person in accordance with this section to the extent that the insurance purchased for the benefit of that person does not cover that liability.

(6) The government of the province is not obliged to indemnify anyone under subsection (4) against an amount paid to settle an action unless the amount so paid was approved by the government of the province.

(7) Where the Government of Canada has indemnified a person referred to in subsection (4), or the heirs or legal representatives of that person, under section 16 of the federal Act, the government of the province may pay to the Government of Canada 1/2 of the amount so indemnified.

(8) An amount payable in respect of indemnification under this section may be paid out of the Consolidated Revenue Fund.

(2) The board may make recommendations to both governments with respect to proposed amendments to this Act, the federal Act and regulations made under those Acts.

(2) Notwithstanding section 28, section 115 applies, with the modifications that the circumstances require, in respect of a disclosure of information or documentation or the production or giving of evidence relating to information or documentation by a minister as if the references in that section to the administration or enforcement of a Part of this Act included references to the administration or enforcement of the federal Act or a Part of the federal Act.

(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.

(2) The appointment of a chief executive officer under paragraph (1)(b) is subject to the approval of both governments.

(3) Where either government fails to make an appointment under paragraph (1)(a) or to approve the appointment of a chief executive officer under paragraph (1)(b), the chief executive officer shall be appointed by both the federal government and the provincial government after having been selected in accordance with section 12 and that section applies, with the modifications that the circumstances require, to the selection of the chief executive officer.

(4) Subsection 13(1) applies, with the modifications that the circumstances require, to the appointment of the chief executive officer under paragraph (1)(a) or subsection (3).

(5) The board shall designate a person to act as chief executive officer during an 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 the powers and perform the duties and functions of that office.

(2) A person employed under subsection (1) shall be appointed on the basis of merit.

(3) Except as provided in subsections (4) and (5), a person employed under subsection (1) is considered not to be employed in the public service of Canada or of the province.

(4) Notwithstanding the Public Service Commission Act, for the purpose of being eligible to enter competitions under that Act and for the purpose of section 12 of that Act, a person who, immediately before becoming employed by the board, was employed in the public service of the province shall be considered to be a person employed in the public service in the province in a position of an occupational nature and at a level equivalent to the position in which that person is employed by the board.

(5) Notwithstanding the Public Service Commission Act, for the purpose of being eligible to enter competitions under that Act and for the purpose of section 12 of that Act, a person who, immediately before becoming employed by the board, was not employed in the public service of the province shall, 2 years after becoming employed by the board, be considered to be a person employed in the public service of the province in a position of an occupational nature and at a level equivalent to the position in which that person is employed by the board.

(2) Following approval of the budget by the board, the budget shall be submitted to the federal minister and the provincial minister, at the time that may be specified by each minister, for their consideration and approval.

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

(4) The provincial government shall pay 1/2 of the aggregate of the expenditures set out in the budget or revised budget, where applicable, submitted and approved under this section in respect of each financial year.

(5) Subject to another Act of the Legislature that appropriates money for the payment required by subsection (4), the sums required for that payment shall be paid out of the Consolidated Revenue Fund as required.

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

(3) The provincial minister shall lay the report referred to in this section before the House of Assembly within the 1st 15 days during which the House of Assembly is sitting after the day the report is submitted to the provincial minister.

(4) Where it is not possible to lay the report before the House of Assembly within 30 days after the day the report is submitted to the provincial minister, the provincial minister shall publish that report within that 30 day period.

(2) Within 30 days after receipt of a notice of a fundamental decision under subsection (1), the federal minister and the provincial minister shall each advise, in writing, the board and each other whether that minister approves or disapproves that decision and where the board does not receive the advice within those 30 days, the board shall be considered, for the purposes of section 32, to be advised, in writing, on the expiration of that period, of the approval of that decision by that minister.

whichever occurs first.

(2) Where the conditions referred to in subsection (1) have been satisfied in respect of a fundamental decision, that decision shall be implemented immediately by the board.

(2) The provincial minister has authority in relation to a fundamental decision referred to in paragraph 135(4)(a).

(3) Notwithstanding subsection (2), where the approval or disapproval by the provincial minister of a fundamental decision referred to in paragraph 135(4)(a) would unreasonably delay the attainment of self-sufficiency or security of supply, the federal minister may substitute for the approval or disapproval of the provincial minister the approval or disapproval of the federal minister, and where the federal minister does so, that minister shall, for the purposes of this Act, be considered to have authority in relation to that fundamental decision.

(4) Where, in respect of a period referred to in subsection 35(3), a determination is made that self-sufficiency and security of supply exists, the provincial minister has authority in relation to a fundamental decision made during that period.

(2) For the purpose of section 34, the 1st period shall begin on January 1, 1986 and end on December 31, 1990 and, in respect of that period, a determination shall be considered to have been made, for all purposes of this Act, that self-sufficiency and security of supply do not exist.

(3) For the purpose of section 34, each period following the period referred to in subsection (2) shall begin on the expiration of the period immediately preceding that period and shall be for a duration of 5 successive calendar years.

(2) Where the 2 governments fail to agree on a determination referred to in subsection (1) within the 3 months following the beginning of consultation between the governments, the determination shall be made by a panel consisting of 3 members, constituted in accordance with subsections 12(3) and (4), within 60 days after the appointment of the chairperson of the panel unless, at a time prior to that time, the 2 governments agree on the determination.

(2) For the purposes of subsection (1), 1 member of the panel shall be appointed by each government within 30 days after the 60 days referred to in subsection (1) and the chairperson of the panel shall be appointed in accordance with subsection 12(4) and for that purpose, subsection 12(4) applies, with the modifications that the circumstances require.

(2) The period of 90 days referred to in subsection (1) begins on the day the board is advised, in accordance with section 31, of the approval of the fundamental decision by the minister having authority in relation to the fundamental decision.

(2) Where the Government of Canada has obligations with respect to the allocation of petroleum under the Agreement On An International Energy Program dated November 18, 1974, the board shall, where directed to do so by the federal minister and during the period that those obligations continue, take the measures that are necessary to comply with those obligations and that are fair and equitable in relation to other hydrocarbon producing regions of Canada.

(2) Where there is a shortfall of petroleum deliveries in the province, the provincial minister may, after consulting with the federal minister, give notice to holders of production licences in the offshore area that the facilities in paragraphs (1)(a), (b) and (c) that are specified in the notice have, during the term of the notice, the 1st option to acquire, on commercial terms, petroleum produced in the offshore area unless a sales contract with respect to that petroleum has been entered into before the giving of the notice.

(3) A contract entered into after the giving of the notice referred to in subsection (2) shall be considered to be varied or suspended to the extent necessary to give effect to that notice.

(4) The term of a notice given under subsection (2) is the period during which a shortfall of petroleum deliveries in the province continues to exist.

(5) Where the federal minister or a holder of a production licence to whom a notice has been given under subsection (2) does not agree with the provincial minister that a shortfall of petroleum deliveries in the province exists or continues to exist, the matter shall be referred to arbitration in the manner prescribed.

(6) Where it is determined as a result of arbitration that a shortfall of petroleum deliveries in the province does not exist or continue to exist, the notice given under subsection (2) shall be considered to be revoked and stops having effect on the date on which the determination is made.

(7) The Lieutenant-Governor in Council may make regulations

(2) The board shall comply with a directive issued under subsection (1).

(3) Directives issued under subsection (1) are not subordinate legislation for the purposes of the Statutes and Subordinate Legislation Act.

(4) Where a directive is issued under subsection (1), a notice shall be published in the Gazette that the directive has been issued and that the text of it is available for inspection by a person on request made to the board.

(2) Where the minister having authority in relation to fundamental decisions, as determined under subsection 34(1) or (4), is of the opinion that a plan referred to in subsection (1) or (3) does not provide adequately for the attainment or maintenance of self-sufficiency and security of supply within the meaning of section 33, that minister may reject the plan and, where that minister does so, shall inform the board of the reasons for so doing.

(3) Where the board is informed of a minister's rejection of its plan and the reasons for the rejection, the board shall, within 60 days after being so informed, prepare a revised plan taking into account those reasons and submit the revised plan to the federal minister and the provincial minister.

(2) Where a public review is conducted in relation to a potential development of a pool or field, the board may

(3) On the request of the board, the provincial government may, subject to the terms and conditions that it considers necessary, confer on the commissioners appointed under paragraph (2)(b) the powers conferred on commissioners under the Public Inquiries Act.

(4) The commissioners shall make their recommendations respecting a preliminary plan or statement submitted under paragraph (2)(c) within 270 days after their receipt of the plan or statement or a shorter period that may be set by the board.

(2) Before the board may approve a development plan under paragraphs 135(4)(a) and (b) or authorize any work or activity under paragraph 134(1)(b), a Canada-Newfoundland benefits plan shall be submitted to and approved by the board, unless the board directs that those requirements need not be complied with.

(3) A Canada-Newfoundland benefits plan shall contain provisions intended to ensure that

(4) The board may require that a Canada-Newfoundland benefits plan include provisions to ensure that disadvantaged individuals or groups have access to training and employment opportunities and to enable those individuals or groups or corporations owned or cooperatives operated by them to participate in the supply of goods and services used in a proposed work or activity referred to in the benefits plan.

(5) In reviewing a Canada-Newfoundland benefits plan, the board shall consult with both ministers on the extent to which the plan meets the requirements set out in subsections (1), (3) and (4).

(6) Subject to a directive issued under subsection 42(1), the board may approve a Canada-Newfoundland benefits plan.

(2) The federal minister and the provincial minister shall be parties to a memorandum of understanding concluded in relation to a matter referred to in paragraph (1)(d).

(2) Nothing in this Part shall be construed so as to abrogate or derogate from existing aboriginal and treaty rights of the aboriginal peoples of Canada under section 35 of the Constitution Act, 1982.

(2) The members of an advisory body appointed under subsection (1) may be paid for their services the remuneration and expenses that are fixed by the board.

(2) Where an interest owner consisting of 2 or more holders fails to appoint a representative for the purposes of this Part, the board may designate 1 of the holders as the representative of the interest owner for those purposes.

(3) An interest owner is bound by the acts or omissions of the appointed or designated representative of the interest owner with respect to a matter to which the authority of the representative extends.

(4) A representative of an interest owner appointed or designated under this section shall perform the duties in respect of the purposes for which the representative has been appointed or designated, and an operating agreement or other similar arrangement in force in respect of the relevant interest of that interest owner stands varied or amended to the extent necessary to give effect to this subsection.

(2) The federal minister may, by order, in the case of a disagreement with a government concerning the location of an international boundary and under the conditions that may be set out in the order, prohibit the issuing of interests in respect of the portions of the offshore area that are specified in the order.

(2) Any liability of an interest owner or interest holder to the Crown in right of Canada or in right of the province, either direct or by way of indemnity, that exists at the time of a surrender under subsection (1) is not affected by the surrender.

by order, prohibit an interest owner specified in the order from beginning or continuing work or activity on the portions of the offshore area or a part of the offshore area that are subject to the interest of that interest owner.

(2) Notwithstanding subsection (1), an order of the board made in a case referred to in paragraph (1)(a) is subject to sections 31 to 40.

(3) The federal minister may, in the case of a disagreement with a government concerning the location of an international boundary, by order, prohibit an interest owner specified in the order from beginning or continuing work or activity on the portions of the offshore area or a part of the offshore area that is subject to the interest of that interest owner.

(4) Where, because of an order made under subsection (1) or (3), a requirement in relation to an interest cannot be complied with while the order is in force, compliance with the requirement is suspended until the order is revoked.

(5) The term of an interest that is subject to an order under subsection (1) or (3) and the period provided for compliance with a requirement in relation to the interest are extended for a period equal to the period that the order is in force.

(6) Nothing in this section affects the authority of the board to relieve a person from a requirement in relation to an interest or under this Part or the regulations.

(2) The issuing of an interest by the board is subject to sections 31 to 40 unless the issuing of the interest is mandatory under another provision of this Part.

(3) The application of an interest may be restricted to the geological formations and to the substances that may be specified in the interest.

(4) Subsection (3) does not apply to an interest

(2) The making of a call for bids by the board is subject to sections 31 to 40.

(3) A request received by the board to make a call for bids in relation to particular portions of the offshore area shall be considered by the board in selecting the portions of the offshore area to be specified in a call for bids.

(4) A call for bids shall specify

(5) Unless otherwise prescribed, a call for bids shall be published at least 120 days before the closing date for the submission of bids specified in the call.

(2) Where the board selects a bid submitted in response to a call for bids, the board shall publish a notice in accordance with section 62 setting out the terms and conditions of that bid.

(3) Where an interest is to be issued as a result of a call for bids, the terms and conditions of the interest shall be substantially consistent with the terms and conditions in respect of the interest specified in the call.

(4) The board shall publish a notice in accordance with section 62 setting out the terms and conditions of an interest issued as a result of a call for bids as soon as practicable after the issuing of the interest.

(2) Where the board has not issued an interest with respect to a particular portion of the offshore area specified in a call for bids within 6 months after the closing date specified in the call for the submission of bids, the board shall, before issuing an interest in relation to that portion of the offshore area, make a new call for bids.

(2) Where the board proposes to issue an interest under subsection (1), the board shall, not later than 90 days before issuing the interest, publish a notice in accordance with section 62 setting out the terms and conditions of the proposed interest.

(2) The Lieutenant-Governor in Council may make regulations prescribing terms and conditions required to be included in exploration licences issued in relation to the offshore area or a portion of the offshore area.

(2) The board shall not amend an exploration licence to include a portion of the offshore area that, immediately before the inclusion, were Crown reserve areas unless the board would be able to issue an interest to that interest owner in relation to that area under subsection 60(1) and a notice has been published in accordance with section 62 not later than 90 days before making the amendment, setting out the terms and conditions of the amendment.

(3) Subject to sections 31 to 40, the board may, on the application of the interest owners of 2 or more exploration licences, consolidate those exploration licences into a single exploration licence, subject to the terms and conditions that may be agreed on by the board and those interest owners.

(2) Subject to subsection (3) and section 69, the term of an exploration licence shall not exceed 9 years from the effective date of the licence and shall not be extended or renewed.

(3) Subject to section 69, the term of an exploration licence entered into or in respect of which negotiations have been completed before December 20, 1985 may be renegotiated once only for a further term not exceeding 4 years and afterward the term of the exploration licence shall not be renegotiated, extended or renewed.

(4) On the expiration of an exploration licence, the portions of the offshore area to which the exploration licence related and that are not subject to a production licence or a significant discovery licence become Crown reserve areas.

(2) Where the drilling of a well referred to in subsection (1) is suspended because of dangerous or extreme weather conditions or mechanical or other technical problems encountered in the drilling of the well, the drilling of that well shall, for the purposes of subsection (1), be considered to be being pursued diligently during the period of suspension.

(3) Where the drilling of a well referred to in subsection (1) cannot be completed for mechanical or other technical problems and where, within 90 days after the cessation of drilling operations with respect to that well, or a longer period that the board determines, the drilling of another well is started on a portion of the offshore area that was subject to the exploration licence, the drilling of that other well shall, for the purposes of subsection (1), be considered to have started before the expiration of the term of the exploration licence.

(2) Where a significant discovery has been made on a portion of the offshore area, the board may, by order subject to section 120, make a declaration of significant discovery in relation to those portions of the offshore area in respect of which there are reasonable grounds to believe the significant discovery may extend.

(3) A declaration made under subsection (1) or (2) shall describe the portions of the offshore area to which the declaration applies.

(4) Subject to subsection (5), where a declaration of significant discovery is made under subsection (1) or (2) and, based on the results of further drilling, there are reasonable grounds to believe that a discovery is not a significant discovery or that the portions of the offshore area to which the significant discovery extends differ from the significant discovery area, the board may, subject to section 120 and as appropriate in the circumstances,

(5) A declaration of significant discovery shall not be amended to decrease the significant discovery area or revoked earlier than

(6) A copy of a declaration of significant discovery and of an amendment or revocation of it made under this section in relation to a portion of the offshore area subject to an interest shall be sent by registered mail to the interest owner of that interest.

(2) Where a declaration of significant discovery is in force and the significant discovery area extends to a Crown reserve area, the board may, after making a call for bids in relation to that Crown reserve area or a portion of it and selecting a bid submitted in response to the call in accordance with subsection 58(1), issue a significant discovery licence to the person who submitted that bid in relation to the Crown reserve area specified in the call.

(3) The making of a call for bids and the issuing of a significant discovery licence by the board under subsection (2) is subject to sections 31 to 40.

(4) A significant discovery licence shall be in the form prescribed and may contain other terms and conditions, consistent with this Part or the regulations, that may be agreed on by the board, subject to sections 31 to 40, and the interest owner of the significant discovery licence.

(2) Where a significant discovery area in relation to a declaration of significant discovery is increased under an amendment made under subsection 70(4), a significant discovery licence that was issued on the basis of that declaration shall be amended to include all portions of the amended significant discovery area that are subject to an exploration licence held by the interest owner of that significant discovery licence at the time the significant discovery area is so increased.

(2) The effective date of a significant discovery licence is the date of application for the licence.

(3) A significant discovery licence continues in force, in relation to each portion of the offshore area to which the licence applies, during the period that the declaration of significant discovery on the basis of which the licence was issued remains in force in relation to that portion.

(4) On the expiration of a significant discovery licence, a portion of the offshore area to which the significant discovery licence related and that is not subject to a production licence becomes a Crown reserve area.

(2) Notwithstanding subsection (1), an order may not be made under subsection (1) with respect to an interest owner who has completed a well on the relevant portion of the offshore area within 6 months before the making of the order.

(3) An order may not be made under subsection (1) within the 3 years immediately following the well termination date of the well indicating the relevant significant discovery.

(4) Notwithstanding subsection (1), an order made under subsection (1) may not require an interest owner to drill more than 1 well at a time on the relevant portion of the offshore area.

(5) For the purposes of subsection (3), "well termination date" means the date on which a well has been abandoned, completed or suspended in accordance with applicable drilling regulations.

(2) An interest owner shall not disclose information or documentation provided to that interest owner under subsection (1) except to the extent necessary to enable the interest owner to comply with an order made under subsection 75(1).

(2) Subject to section 120, where a commercial discovery has been made on a portion of the offshore area, the board may, by order, make a declaration of commercial discovery in relation to those portions of the offshore area in respect of which there are reasonable grounds to believe that the commercial discovery may extend.

(3) Subsections 70(3), (4) and (6) apply, with the modifications that the circumstances require, with respect to a declaration made under subsection (1) or (2).

(2) During the period specified in a notice sent to an interest owner under subsection (1), the board shall provide a reasonable opportunity for the interest owner to make the submissions that the interest owner considers relevant to determining whether the board should make an order reducing the term of the relevant interest.

(3) Subject to sections 31 to 40, where the board is of the opinion that it is in the public interest, the board may, not later than 6 months after the expiration of the period specified in a notice in respect of an interest sent under subsection (1), by order subject to section 120, reduce the term of the interest to 3 years after the date the order is made or a longer period that may be specified in the order.

(4) Where an order is made under subsection (3), an interest in respect of a portion of the offshore area within the area to which the interest that is the subject of the order applied on the date the order was made stops having effect at the end of the period specified in the order.

(5) Notwithstanding subsection (4), where commercial production of petroleum on a portion of the offshore area referred to in subsection (4) starts before the expiration of the period specified in an order made under subsection (3) or the period extended under subsection (6), the order stops having effect and is considered to have been vacated.

(6) Notwithstanding subsection (4) and subject to sections 31 to 40, the board may extend the period specified in an order made under subsection (3) or may revoke the order.

(2) Notwithstanding subsection (1), the board may, subject to the terms and conditions that the board considers appropriate, authorize an interest holder of an interest or a share in the interest to produce petroleum on the portions of the offshore area subject to the interest or share for use in the exploration or drilling for or development of petroleum on a portion of the offshore area.

(2) Where a declaration of commercial discovery is in force and the commercial discovery area extends to a Crown reserve area, the board may, after making a call for bids in relation to that Crown reserve area or a portion of the Crown reserve area and selecting a bid submitted in response to the call in accordance with subsection 58(1), issue a production licence to the person who submitted that bid in relation to the Crown reserve area specified in the call.

(3) The making of a call for bids and the issuing of a production licence by the board under subsection (2) is subject to sections 31 to 40.

(4) A production licence shall be in the form prescribed and may contain the terms and conditions, consistent with this Part or the regulations, that may be agreed on by the board, subject to sections 31 to 40, and the interest owner of the production licence.

(2) Where a commercial discovery area in relation to a declaration of commercial discovery is increased under an amendment made under subsection 70(4) and subsection 77(3), a production licence that was issued on the basis of that declaration shall be amended to include all portions of the amended commercial discovery area that are subject to an exploration licence or a significant discovery licence held by the interest owner of that production licence at the time the commercial discovery area is so increased.

(2) Notwithstanding subsection (1), where a declaration of commercial discovery on the basis of which a production licence was issued is, under subsection 70(4) and subsection 77(3), revoked or amended to exclude all portions of the commercial discovery area in relation to which the production licence was issued, the production licence stops being in force.

(3) Where, on the expiration of the term of a production licence, petroleum is being produced commercially, the term is extended for that period afterward during which commercial production of petroleum continues.

(4) Notwithstanding subsection (1) and subject to sections 31 to 40, the board may, by order, on the terms and conditions that may be specified in the order, extend the term of a production licence where

(2) On the expiration of a production licence, the portions of the offshore area in relation to which the production licence was issued become Crown reserve areas.

(2) A portion of the offshore area shall not be used for a purpose referred to in subsection (1) without a licence referred to in that subsection.

(2) A permanent resident within the meaning of the Immigration Act, 1976 (Canada) who, but for this subsection, would be excluded under paragraph (1)(a) shall not be excluded on the grounds set out in that paragraph until after March 5, 1987 or another date that may be prescribed, and shall be considered, until that date, to be a permanent resident who satisfies the qualifications set out in that paragraph.

(2) Notwithstanding subsection (1), a person submitting a development plan in relation to a portion of the offshore area is not required to comply with subsection (1) where that person establishes to the satisfaction of the federal minister that the Canadian ownership rate of the proposed interest owner in relation to the production licence that may be issued in respect of that portion of the offshore area would be not less than 50%.

and the Canadian ownership rate required by section 88 has not been reached at the time that person applies for a production licence, the federal minister may waive the requirement set out in section 88 and the production licence may be issued, subject to the terms and conditions respecting attempts to have the interest owner of the production licence reach a Canadian ownership rate of not less than 50% in relation to the production licence that the federal minister may determine, or subject to the requirements set out in section 91.

(2) Where a public tender is conducted under subsection (1), the invitation to tender shall specify

(3) A share in a production licence shall not be sold at a sale by public tender conducted under subsection (1)

(4) Where a person purchases a share in a production licence at a sale by public tender conducted under subsection (1), the sale is not vitiated by reason only of the erroneous determination of the qualifications of that person for eligibility to purchase the share.

(2) Where the option referred to in subsection (1) is exercised, it shall be exercised in the manner prescribed and expires 60 days after the closing date for the submission of tenders specified in the invitation to tender.

(3) Where an option referred to in subsection (1) is not exercised in accordance with subsection (2), a company or other body corporate that is an agent of the Crown in right of Canada and is designated by the federal minister for the purposes of this section has the option to purchase the share in accordance with subsection (4) at a price equal to the amount referred to in paragraph 91(3)(a).

(4) Where the option referred to in subsection (3) is exercised, it shall be exercised in the manner prescribed and expires 60 days after the expiration of the 60 days referred to in subsection (2).

(5) Where a share in a production licence is sold as a result of a public tender conducted under subsection 91(1) or the exercise of an option under subsection (1) or (3), the interest owner of the production licence shall transfer the share to the purchaser at the time and in the manner prescribed.

(6) Where the interest owner of a production licence consists of 2 or more holders, a share in the production licence sold as a result of a public tender conducted under subsection 91(1) or the exercise of an option under subsection (1) or (3) shall be transferred to the purchaser by the holders in the proportions agreed on by the holders or, in the absence of agreement, in the proportions determined in the manner prescribed.

(7) Notwithstanding subsection (6), a holder of a share in a production licence shall not be required to transfer a portion of a share under subsection (6) where the Canadian ownership rate of that holder in relation to that share is 50% or greater.

(2) In the absence of regulations made under paragraph 93(c), a Canadian ownership rate shall be calculated or determined in accordance with the Canadian Ownership and Control Determination Act and the regulations made under that Act.

(3) Where it appears to the federal minister that a matter relating to a Canadian ownership rate cannot reasonably be determined by applying the rules set out in this Division or the applicable regulations in a case or class of cases, the federal minister may make the determination or authorize it to be made in accordance with the criteria that the federal minister considers appropriate.

(2) A production licence shall not be issued to a corporation in relation to a commercial discovery area on which the drilling of the 1st well that indicated the discovery began before March 5, 1982 unless the federal minister is satisfied that the requirements set out in subparagraph 54(2)(c)(i), (ii) or (iii) of the Canada Oil and Gas Land Regulations have been met in respect of that corporation.

(2) The rates fixed by the federal minister under section 80 of the Canada Petroleum Resources Act, as they apply to the offshore area, are subject to approval by the board.

(3) Notwithstanding subsection 78(2) of the Canada Petroleum Resources Act, 1 of the members of the Environmental Studies Management Board established by subsection 78(1) of that Act is to be appointed by the board on the recommendation of the provincial minister.

(4) The Environmental Studies Management Board shall submit to the board a copy of every annual report and recommendation submitted to the federal minister under paragraph 79(1)(d) or (e) of the Canada Petroleum Resources Act at the same time the report or recommendation is submitted to the federal minister.

(2) Where an assignment of security interest is registered under this Division, a reference in this Division to a secured party shall, in respect of the security notice to which the assignment of a security interest relates, be read as a reference to the assignee named in the assignment of security interest.

(2) Where the board is notified of an agreement or arrangement referred to in subsection (1), the board shall notify the federal minister of the agreement or arrangement.

(3) Where the federal minister is notified of an agreement or arrangement in relation to a production licence under subsection (2), the federal minister may,

(4) Notwithstanding subsection (1), this section does not apply to an agreement or arrangement that is entered into in connection with the realization of security granted for a loan advanced to finance activities in relation to a production licence where the agreement or arrangement granting the security has been approved under subsection (3).

(5) This section does not apply in respect of a production licence issued in relation to a commercial discovery area on which the drilling of the 1st well that indicated the discovery commenced before March 5, 1982.

(2) The registrar and deputy registrar shall exercise those powers and perform the duties and functions in respect of the register and the system of registration established under this Division that may be prescribed.

(2) An instrument may not be registered under this Division unless it has been submitted for registration in the form prescribed for that instrument, in the manner and containing the information that may be prescribed, and meets the other requirements for the registration of an instrument prescribed by this Division and the regulations.

(2) An instrument may not be registered under this Division unless a notice of official address for service in respect of that instrument is filed with the registrar in prescribed form.

(3) The official address for service in respect of an instrument may be changed by filing with the registrar another notice of official address for service, in prescribed form.

(2) Where the registrar refuses to register a document under this Division, the registrar shall return the document to the person submitting the document for registration and provide that person with the reasons for the refusal.

(3) An instrument is registered under this Division by the endorsement of a memorandum of registration on the instrument specifying the registration number of the instrument and the time and date of registration.

(4) Instruments accepted for registration under this Division shall be registered in the chronological order in which instruments are received by the registrar.

(2) Notwithstanding subsection (1), where a right in respect of which an instrument may be registered under this Division was acquired before May 20, 1988 and an instrument in respect of that right is registered under this Division not later than 180 days after May 20, 1988, the priority and validity of the right shall be determined as though the instrument was registered under this Division at the time the right was acquired and as though this section was in force at that time.

(3) Notwithstanding subsection (2), no right in respect of which that subsection applies shall have priority over and be valid against another right in respect of which that subsection applies but in respect of which an instrument is not registered within the period referred to in that subsection, where the person claiming the right in respect of which an instrument is registered within that period acquired the right with actual knowledge of the other right.

(4) An instrument in respect of a right to which subsection (2) applies shall not be registered unless it is accompanied by the statutory declaration, in prescribed form, of the person claiming the right, attesting to the time at which the right was acquired.

(5) Notwithstanding subsection (1), an operator's lien, in relation to an interest or share in an interest, shall, without registration of a document evidencing the operator's lien, have priority over and be valid against another right, in relation to that interest or share, in respect of which an instrument may be registered under this Division, whether an instrument in respect of that other right was registered before or after the acquisition of the operator's lien or the operator's lien was acquired before or after that other right, unless the operator's lien is postponed with respect to other rights by the registration under this Division of a postponement in respect of the operator's lien and a discharge in respect of that postponement has not been registered under this Division.

(2) A demand for information, in respect of a security notice, may be served under subsection (1) by serving on the secured party under the security notice a demand notice, in prescribed form, requiring the secured party

(3) A demand for information is served, for the purpose of this section, where it is sent by registered mail or delivered to the official address for service in respect of the security notice according to the records of the registrar.

(4) A demand for information served under subsection (1) may be complied with by mailing or delivering to the person serving the demand notice a true copy of the documents referred to in the demand notice.

(5) Where a secured party fails without reasonable excuse to comply with a demand for information in respect of a security notice in relation to an interest or share in an interest served on the secured party in accordance with this section, the court may, on application by the person who served the demand notice, make an order requiring the secured party to comply with the demand for information within the time and in the manner specified in the order.

(6) Where a secured party fails to comply with an order of a court made under subsection (5), the court may, on the application of the person who applied for the order,

(7) In this section, "document" includes an amendment to the document.

(2) The court may, by order, on the unilateral application of a person who proposes to serve a notice to take proceedings under subsection (1), shorten the 60 day period referred to in paragraph (1)(a) and, if the order is made,

(3) The court may, on the application of a secured party served with a notice to take proceedings, extend the period for applying to the court referred to in paragraph (1)(a), whether or not that period has been shortened under subsection (2).

(4) A notice to take proceedings is served for the purpose of this section if it is sent by registered mail or delivered to the secured party at the official address for service in respect of the security notice according to the records of the registrar.

(5) The registration of a security notice shall be cancelled on submission to the registrar of a statutory declaration showing that

(6) Where the registration of a security notice in respect of a security interest is cancelled under subsection (5) or (7), the secured party under the security notice may not submit for registration under this Division another security notice in respect of that security interest without leave of the court to do so.

(7) The registration of a security notice shall be cancelled where there is submitted to the registrar a certified copy of an order or judgment of a court directing the registrar to do so, whether as a result of proceedings taken under this Division or otherwise.

(2) Subject to section 18, information or documentation provided for the purposes of this Part or Part III or a regulation made under either Part, whether or not that information or documentation is required to be provided under either Part or a regulation made under either Part, is privileged and shall not knowingly be disclosed without the written consent of the person who provided it except for the purposes of the administration or enforcement of either Part or for the purposes of legal proceedings relating to the administration or enforcement.

(3) A person shall not be required to produce or give evidence relating to information or documentation that is privileged under subsection (2) in connection with legal proceedings, other than proceedings relating to the administration or enforcement of this Part or Part III.

(4) For greater certainty, this section does not apply to a document that has been registered under Division VII.

(5) Subsection (2) does not apply to the following classes of information or documentation obtained as a result of carrying on any work or activity that is authorized under Part III, namely, information or documentation in respect of

(2) For the purposes of subsection (1), an arbitration order shall operate notwithstanding a right or title of the occupier of the portion of the offshore area to which that arbitration order relates.

(2) Subsection (1) applies only in respect of

(3) An order of an arbitrator made under arbitration under subsection (1) is binding on all interest holders specified in the order from the date specified in the order, and the terms and conditions of the order are considered to be terms and conditions of the interest to which the matters relate.

(2) Regulations made under subsection (1) may apply generally to the offshore area or a portion of the offshore area.

(2) Notwithstanding anything in this Part but subject to sections 31 to 40, where an interest owner or holder fails to comply with a notice under subsection (1) within the period specified in the notice and the board considers that the failure to comply warrants cancellation of the interest of the interest owner or holder or a share in the interest held by the holder with respect to a portion only of the offshore area subject to the interest, the board may, by order subject to section 120, cancel that interest or share, and where the interest or share is so cancelled, the portions of the offshore area under that interest or share become Crown reserve areas.

(2) The board shall, not less than 30 days before making an order or decision or taking an action in respect of which it is expressly stated in this Part to be subject to this section, give written notice to the persons the board considers to be directly affected by the proposed order, decision or action.

(3) A person receiving a notice under subsection (2) may, in writing, request a hearing within the 30 day period referred to in that subsection and, on receipt of such a request, the board shall direct the committee to appoint a time and place for a hearing and give notice of the time and place to the person who requested the hearing.

(4) A person requesting a hearing under subsection (3) may make representations and introduce witnesses and documents at the hearing.

(5) For the purposes of a hearing requested under subsection (3), the committee has, regarding the attendance, swearing and examination of witnesses and the production and inspection of documents, all the powers, rights and privileges that are vested in a superior court of record.

(6) On the conclusion of the hearing, the committee shall submit to the board its recommendations concerning the proposed order, decision or action of the board, together with the evidence and other material that was before the committee.

(7) Before making an order or decision or taking an action in respect of which a hearing has been held, the board shall consider the recommendations of the committee.

(8) Where an order, decision or action referred to in subsection (2) is made or taken, the board shall notify the person who requested a hearing in respect of the order, decision or action under subsection (3) and, on request by that person, publish or make available to that person the reasons for the order, decision or action.

(9) An order, decision or action referred to in subsection (2) takes effect as of

(10) An order, decision or action in respect of which a hearing is held under this section is subject to review and to be set aside by the Trial Division.

(2) A copy of each regulation that the Lieutenant-Governor in Council proposes to make under subsection (1) shall be published in the Gazette and a reasonable opportunity shall be given to interested persons to make representations to the board with respect to each regulation.

(3) Notwithstanding subsection (2), a proposed regulation need not be published more than once under subsection (2) whether or not it is altered or amended after the publication as a result of representations made by interested persons as provided in that subsection.

(2) A form purporting to be a form prescribed or authorized by the board shall be considered to be a form prescribed by the board under this Part unless called in question by the board or some person acting for the board or the Crown in right of Canada or the province.

(3) Where a form or information to be given on a form is prescribed by the board under this Act, it shall be considered not to be subordinate legislation within the meaning of the Statutes and Subordinate Legislation Act.

(2) Where a declaration of significant discovery was made under section 45 of the Canada Oil and Gas Act and is in force on April 4, 1987, it continues in force as if it were made under section 70 of this Part.

(3) Where, on April 4, 1987, an exploration agreement is in force under section 16 of the Canada Oil and Gas Act, it shall be considered to be a significant discovery licence issued under this Part on April 4, 1987 and is subject to this Part.

(2) A party shall not have a right to claim or receive compensation, damages, indemnity or other form of relief from the Crown in right of the province or from a servant or agent of the Crown for an acquired, vested or future right or entitlement or a prospect of an acquired, vested or future right or entitlement that is replaced or otherwise affected by this Part, or for a duty or liability imposed on that party by this Part.

(2) Notwithstanding subsection 124(1), all interests provided by the Canada Oil and Gas Land Regulations that are in force on April 4, 1987 continue in force subject to sections 126 to 129.

(3) All rights of Petro-Canada to acquire further interests or shares in interests as a result of the operation of section 33, 120 or 121 of the Canada Oil and Gas Land Regulations are abrogated as of March 5, 1982.

(4) Where a portion of the offshore area becomes a Crown reserve area on or after April 30, 1980, Petro-Canada shall not be entitled to exercise any rights under section 33 of the Canada Oil and Gas Land Regulations with respect to that Crown reserve area.

(5) Where a person acquires, disposes of or otherwise deals in an interest or a share in an interest in respect of which Petro-Canada would, but for the circumstances described in paragraph (a) or (b), have had a right under section 33, 120 or 121 of the Canada Oil and Gas Land Regulations, that acquisition, disposition or dealing is vitiated by reason only of

(6) Subsection (5) has retrospective application to an acquisition, disposition or dealing that occurred before March 5, 1982.

(7) In this section, "Petro-Canada" means the corporation established by the Petro-Canada Act.

(2) Where an interest owner referred to in subsection (1) does not comply with that subsection, the portion of the offshore area under the relevant interest is considered to be surrendered and becomes a Crown reserve area.

(3) Notwithstanding anything in this Part, an exploration licence under subsection (1) may be extended to include all or a portion of the offshore area under the preceding interest and related portions of the offshore area that, immediately before the extension, were Crown reserve areas.

(4) Where a former special renewal permit or former exploration agreement contains provisions for the drilling of 1 or more wells, the board shall offer to issue an exploration licence to the interest owner for a term equal to the balance of the term of the former special renewal permit or former exploration agreement remaining on March 5, 1982 and having the same drilling provisions.

(2) Where the interest owner referred to in subsection (1) does not comply with that subsection, the portion of the offshore area under the former lease is considered to be surrendered and becomes a Crown reserve area.

(3) Subsection 126(3) applies, with the modifications that the circumstances require, to lands that may be included in an exploration licence under subsection (1).

(2) Subject to sections 31 to 40, an exploration licence negotiated under subsection (1) shall contain the terms and conditions that may be agreed on by the board and the interest owners of an exploration licence.

(2) An application made for the purposes of subsection (1) shall be in the form and contain the information prescribed by the board and shall be made at the time and in the manner that may be prescribed.

(3) The board may suspend or revoke an operating licence issued under paragraph (1)(a) or an authorization given under paragraph (1)(b) for failure to comply with, contravention of or default in respect of

(4) An operating licence expires on March 31 next following the date on which it is issued and may be renewed for successive periods not exceeding 1 year each.

(5) Subject to this Part and the regulations, and to section 116 and the regulations made under section 116 for the purposes of that section, the holder of an operating licence may, for the purpose of exploring for petroleum, enter on and use the surface of the offshore area in order to carry on the work or activity authorized under paragraph (1)(b).

shall be granted, except with the approval of both ministers, unless the board, on application submitted in accordance with subsection (2), has approved a development plan relating to the pool or field under paragraphs (4)(a) and (b).

(2) For the purpose of subsection (1), an application for the approval of a development plan shall be submitted to the board in the form and containing the information prescribed by the board, at the time and in the manner that may be prescribed by the regulations, together with the proposed development plan in the form and containing the information described in subsection (3).

(3) A development plan relating to the proposed development of a pool or field submitted under this section shall be set out in 2 parts, containing

(4) After reviewing an application and development plan submitted by a person under this section the board may, subject to the requirements that the board considers appropriate or that may be prescribed, approve

(5) Where a development plan has been approved under subsection (4), an alteration or amendment of Part I or II of the development plan shall not be made unless it is approved by the board in accordance with paragraph (4)(a) or (b) on submission of a revised application and development plan in accordance with subsection (2).

(6) Subsections (2) to (5) apply, with the modifications that the circumstances require, with respect to a revised application and development plan submitted under subsection (5).

(2) The members of the committee shall be appointed by the board to hold office for a term of 3 years, and 1 member shall be designated as chairperson for the term that may be fixed by the board.

(3) A retiring chairperson or retiring member may be reappointed to the committee in the same or another capacity.

(2) The members and employees of the board and the chief conservation officer are not eligible to be members of the committee.

(3) The board shall provide the committee with the officers, clerks and employees that may be necessary for the proper conduct of the affairs of the committee, and may provide the committee with the professional or technical assistance for temporary periods or for specific work that the committee may request, but assistance shall not be provided otherwise than from the staff of the board except with the approval of the 2 ministers.

(4) The members of the committee who are not employees of the public service of Canada or of the province shall be paid the remuneration that may be authorized by the board.

(5) The members of the committee are entitled to be paid reasonable travel and living expenses while absent from their ordinary place of residence in the course of their duties.

(2) The committee may make general rules consistent with this Part regulating its practice and procedure and the places and times of its sittings.

(2) For the purpose of an inquiry, hearing or appeal, or the making of an order under this Part, the committee has, regarding the attendance, swearing and examination of witnesses, the production and inspection of documents, the entry on and inspection of property, the enforcement of its orders and regarding other matters necessary or proper for the exercise of its jurisdiction under this Part, the powers, rights and privileges that are vested in a superior court of record.

(3) The finding or determination of the committee upon a question of fact within its jurisdiction is binding and conclusive.

(2) Where an inquiry is held by a member under subsection (1), the member has the powers of the committee for the purpose of taking evidence or acquiring information for the purpose of the report to the committee.

(2) To make an order of the committee an order of the Supreme Court of Newfoundland, the practice and procedure established by that court for making an order an order of that court may be followed or instead of that practice and procedure the secretary or another officer of the committee may file in the registry of the court a certified copy of the order and the order becomes an order of the court.

(3) Where an order of the committee has been made an order of the Supreme Court, an order of the committee, or of the board under section 183, rescinding or replacing the first mentioned order of the committee, shall be considered to cancel the order of the court and may in the same manner be made an order of the court.

(2) A copy of each regulation that the Lieutenant-Governor in Council proposes to make under this Division shall be published in the Gazette and a reasonable opportunity shall be given to interested persons to make representations to the provincial minister with respect to each regulation.

(3) Notwithstanding subsection (2), a proposed regulation need not be published more than once under subsection (2) whether or not it is altered or amended after the publication as a result of representations made by interested persons as provided in that subsection.

(4) Unless otherwise provided in this Part, regulations made under subsection (1) may incorporate by reference the standards or specifications of a government, person or organization, either as of a fixed time or as amended.

(2) A person does not commit an offence under the regulations where that person acts in compliance with an authorization under subsection (1).

(2) Guidelines and interpretation notes issued under subsection (1) shall be considered not to be subordinate legislation for the purposes of the Statutes and Subordinate Legislation Act.

the chief conservation officer may order the start, continuation or increase of production of petroleum at the rates and in the quantities that are specified in the order.

(2) Where the chief conservation officer on reasonable grounds is of the opinion that an order under this subsection would stop waste or would otherwise accord with sound engineering and economic principles, the chief conservation officer may order a decrease or the cessation or suspension of production of petroleum for periods specified in the order.

(3) Subsections 150(2) to (4) and section 152 apply, with the modifications that the circumstances require, to an order under subsection (1) or (2) as if it were an order under subsection 150(1).

(4) A person subject to an order under subsection (1) or (2) shall, on request, give the chief conservation officer or a person designated by the chief conservation officer access to premises, files and records for all reasonable purposes related to the order.

(2) In this Part "waste", in addition to its ordinary meaning, means waste as understood in the petroleum industry and in particular includes

(2) Before making an order under subsection (1), the chief conservation officer shall hold an investigation at which interested persons shall be given an opportunity to be heard.

(3) Notwithstanding subsection (2), the chief conservation officer may, without an investigation, make an order under this section requiring all operations to be shut down where in the opinion of the chief conservation officer it is necessary to do so to prevent damage to persons or property or to prevent pollution; but as soon as possible after making the order and in any event within 15 days afterward, the chief conservation officer shall hold an investigation at which interested persons shall be given an opportunity to be heard.

(4) At the conclusion of an investigation under subsection (3) the chief conservation officer may set aside, vary or confirm the order made, or make a new order.

(2) A person authorized under subsection (1) to take over the management and control of operations shall manage and control those operations and do all things necessary to stop the waste and the cost of the operations shall be borne by the person who holds the permit or the lease and, until paid constitutes a debt recoverable by action in a court as a debt due to the board.

(2) After hearing the appeal, the committee may

(2) On the day specified in the order under subsection (1) the committee shall hold a hearing at which the chief conservation officer, the operators and other interested persons shall be given an opportunity to be heard.

and the order may further direct that the pool or part of it specified in the order be shut in where the requirements of the order are not met or unless a scheme is approved by the committee and in operation by a date fixed by the order.

(2) Notwithstanding subsection (1), the committee may permit the continued operation of a pool or a part of a pool after the date fixed by an order under subsection (1) where in the opinion of the committee a scheme for the repressurizing, recycling or pressure maintenance or the processing, storage or disposal of gas is in course of preparation, but a continuation of operations is subject to conditions imposed by the committee.

(2) In sections 157 and 161, "debris" means an installation or structure on the seabed of the offshore area that was put in place in the course of any work or activity authorized under paragraph 134(1)(b) and that has been abandoned without the authorization that may be required by or under this Part or a material that has broken away or has been jettisoned, or that has been displaced from the seabed, in the course of the work or activity.

(3) In section 157, "actual loss or damage" includes loss of income, including future income, and, with respect to aboriginal peoples of Canada, includes loss of hunting, fishing and gathering opportunities.

(4) The Lieutenant-Governor in Council may make regulations authorizing the discharge, emission or escape of petroleum of the types, in the quantities, at the locations, under the conditions and by the persons that are specified in the regulations, but the Crown has no liability to a person arising out of the authorization.

(2) Where a spill occurs in a portion of the offshore area, a person who at the time of the spill is carrying on any work or activity related to the exploration for or development or production of petroleum in the area of the spill shall, in the manner prescribed by the regulations, report the spill to the chief conservation officer.

(3) A person required to report a spill under subsection (2) shall, as soon as possible, take all reasonable measures consistent with safety and the prevention of pollution to prevent a further spill, to repair or remedy a condition resulting from the spill and to reduce or mitigate danger to life, health, property or the environment that results or may reasonably be expected to result from the spill.

(4) Where the chief conservation officer is satisfied on reasonable grounds that

the chief conservation officer may take the action or direct that it be taken by those persons that may be necessary.

(5) For the purposes of subsection (4), the chief conservation officer may authorize and direct those persons that may be necessary to enter the place where the spill has occurred and take over the management and control of work or activity being carried on in the area of the spill.

(6) A person authorized and directed to take over the management and control of work or activity under subsection (5) shall manage and control that work or activity and take all reasonable measures in relation to the spill that are referred to in subsection (3).

(7) Costs incurred under subsection (6) shall be borne by the person who obtained an authorization under paragraph 134(1)(b) in respect of the work or activity from which the spill emanated and, until paid, constitute a debt recoverable by action in a court as a debt due to the board.

(8) Section 152 applies, with the modifications that the circumstances require, to an action or measure taken or authorized or directed to be taken under subsections (4) to (6) as if it were taken or authorized or directed to be taken by order under subsection 150(1) and as if the order were not subject to an investigation.

(9) A person required, directed or authorized to act under this section is not personally liable either civilly or criminally in respect of an act or omission in the course of complying with this section unless it is shown that the person did not act reasonably in the circumstances.

(2) Where a person incurs actual loss or damage as a result of debris or the board or the Crown in right of Canada or the province reasonably incurs costs or expenses in taking a remedial action in relation to debris,

(3) All claims under this section may be sued for and recovered in a court in Canada and shall rank firstly in favour of persons incurring actual loss or damage, without preference, and secondly, without preference, to meet costs and expenses incurred by the board or the Crown in right of Canada or the province.

(4) Nothing in this section suspends or limits

(5) Proceedings in respect of claims under this section may be instituted within 3 years after the day when the loss, damage, costs or expenses occurred but in no case after 6 years from the day the spill or the discharge, emission or escape of petroleum occurred or, in the case of debris, after the day the installation or structure in question was abandoned or the material in question broke away or was jettisoned or displaced.

(2) The board may require that money in an amount not exceeding the amount prescribed by the regulations for a case or class of cases, or determined by the board in the absence of regulations, be paid out of the funds available under the letter of credit, guarantee or indemnity bond or other form of financial responsibility provided under subsection (1), in respect of a claim for which proceedings may be instituted under section 157, whether or not the proceedings have been instituted.

(3) Where payment is required under subsection (2), it shall be made in the manner, subject to the conditions and procedures and to or for the benefit of the persons or classes of persons that may be prescribed by the regulations for a case or class of cases, or that may be required by the board in the absence of regulations.

(4) Where a claim is sued for under section 157, there shall be deducted from an award made under the action on that claim an amount received by the claimant under this section in respect of the loss, damage, costs or expenses claimed.

(2) The committee referred to in subsection (1) may be dissolved only by the joint operation of an Act of the Parliament of Canada and an Act of the Legislature.

(2) For the purpose of an inquiry under subsection (1), a person authorized by the board under that subsection has and may exercise the powers of a person appointed as a commissioner under the Public Inquiries Act.

(3) As soon as possible after the conclusion of an inquiry under subsection (1), the persons authorized to conduct the inquiry shall submit a report to the board, together with the evidence and other material that was before the inquiry.

(4) A report made under subsection (3) shall be published by the board within 30 days after the board has received it.

(5) The board may supply copies of a report published under subsection (4) in the manner or on the terms that the board considers appropriate.

(2) The board may, on behalf of the Crown, enter into a pooling agreement on the terms and conditions that it considers advisable and, notwithstanding anything in this Part or Part II, the Public Lands Grants Act (Canada) or regulations made under those Parts or that Act, the pooling agreement is binding on the Crown.

(2) An application under subsection (1) shall be made to the board which shall refer the application to the committee for the purpose of holding a hearing to determine whether a pooling order should be made and at the hearing the committee shall give all interested parties an opportunity to be heard.

(3) Before a hearing held under subsection (2), the working interest owner making application shall provide the committee, and the other interested parties that the committee may direct, with a proposed form of pooling agreement and the working interest owners who have interests in the spacing unit to which the proposed pooling agreement relates shall provide the committee with the information that the committee considers necessary.

(4) After a hearing under subsection (2), the committee may order that all working interest owners and royalty owners who have an interest in the spacing unit shall be considered to have entered into a pooling agreement as set out in the pooling order.

(5) A pooling order shall provide

(6) A pooling order may provide for a penalty for a working interest owner who does not, within the time specified in the order, pay the portion of the costs attributable to the working interest owner as the share of the cost of drilling and completion of the well, but the penalty shall not exceed an amount equal to 1/2 of that working interest owner's share of the costs.

(7) Where a working interest owner does not, within the time specified in the pooling order, pay the share of the costs of the drilling, completing, operating and abandoning of the well, that portion of the costs and the penalty are recoverable only out of that share of production from the spacing unit and not in another manner.

(2) After a hearing held under subsection (1), the committee may vary or amend the pooling order to supply a deficiency in it or to meet changing conditions and may vary or revoke a provision that the committee considers to be unfair or inequitable or it may terminate the pooling order.

(3) Where a pooling order is varied or amended, no change shall be made that will alter the ratios of tract participations between the pooled tracts as originally set out in the pooling order.

(2) Subsection (1) does not prohibit the production of petroleum for testing in quantities approved by the chief conservation officer.

(2) The board may enter into a unit agreement binding on the Crown, on the terms and conditions that it considers advisable, and the regulations under this Part or Part II or the Public Lands Grants Act (Canada) that may be in conflict with the terms and conditions of the unit agreement stand varied or suspended to the extent necessary to give full effect to the terms and conditions of the unit agreement.

(3) Where a unit agreement filed under this section provides that a unit operator shall be the agent of the parties to it with respect to their powers and responsibilities under this Part, the performance or non-performance of the powers and responsibilities by the unit operator shall be considered to be the performance or non-performance by the parties otherwise having those powers and responsibilities under this Part.

(2) Where an application is made by the chief conservation officer under subsection (1), the committee shall hold a hearing at which all interested persons shall be given an opportunity to be heard.

(3) Where, after the hearing mentioned in subsection (2), the committee is of the opinion that unit operation of a pool or part of a pool would prevent waste, the committee may by order require the working interest owners in the pool or part of the pool to enter into a unit agreement and a unit operating agreement in respect of the pool or part of the pool.

(4) Where in the time specified in the order referred to in subsection (3), being not less than 6 months after the date of the making of the order, the working interest owners and royalty owners fail to enter into a unit agreement and a unit operating agreement approved by the committee, all drilling and producing operations within the pool or part of the pool in respect of which the order was given shall stop until the time that a unit agreement and a unit operating agreement have been approved by the committee and filed with the chief conservation officer.

(5) Notwithstanding subsection (4), the committee may permit the continued operation of the pool or part of the pool after the time specified in the order referred to in subsection (3) if it is of opinion that a unit agreement and unit operating agreement are in the course of being entered into, but the continuation of operations shall be subject to conditions prescribed by the committee.

(2) An application under subsection (1) shall be made to the board which shall refer the application to the committee for the purpose of holding a hearing in accordance with section 172.

(3) An application under subsection (1) may be made by the unit operator or proposed unit operator on behalf of the working interest owners referred to in subsection (1).

(2) The unit agreement referred to in subsection (1) shall include

(3) The unit operating agreement referred to in subsection (1) shall make provision

(2) Where the committee finds that

the committee may order

and, subject to section 173, the unit agreement and the unit operating agreement have the effect given them by the order of the committee.

(3) In a unitization order, the committee may vary the unit agreement or the unit operating agreement by adding provisions or by deleting or amending a provision.

(2) Notwithstanding subsection (1), where a unit agreement or unit operating agreement is varied by the committee in a unitization order, the effective date prescribed in the order shall be a date not less than 30 days following the day the order is made, but the order becomes ineffective if, before the effective date, the applicant files with the committee a notice withdrawing the application on behalf of the working interest owners or there are filed with the committee written statements objecting to the order and signed

(3) Where a unitization order becomes ineffective under subsection (2), the committee shall immediately revoke the order.

(2) Where the committee finds that, at the date of the beginning of a hearing of an application for the amendment of a unitization order, 1 or more working interest owners who own, in the aggregate, 65% or more of the total working interests and 1 or more royalty interest owners who own, in the aggregate, 65% or more of the total royalty interests in the unit area have consented to the proposed amendment, the committee may amend the unitization order in accordance with the amendment proposed.

(2) Where a pooled spacing unit is included in a unit area under subsection (1), the provisions of the unit agreement, the unit operating agreement and the unitization order prevail over the provisions of the pooling order in the event of a conflict, but

(2) A minute or other record of the committee or a document issued by the committee, in the form of a decision or order, shall for the purposes of this section be considered to be a decision or order of the committee.

(2) The Trial Division shall hear and determine the case stated, and remit the matter to the committee with the opinion of the court.

(2) Where leave to appeal is granted under subsection (1), an order of the committee in respect of which the appeal is made shall be stayed until the matter of the appeal is determined.

(3) After the hearing of the appeal the court shall certify its opinion to the committee and the committee shall make an order necessary to comply with that opinion.

(4) An order made by the committee under subsection (3), unless that order has already been dealt with by the board under section 182, shall be subject to that section.

(2) A person shall not make a false or misleading statement either orally or in writing to a conservation engineer engaged in carrying out the duties and functions of the conservation engineer under this Part or the regulations.

and that continuation of the operation is likely to result in serious bodily injury, the conservation engineer may order that the operation stop or be continued only in accordance with the terms of the order and shall affix at or near the scene of the operation a notice of the order in a form prescribed by the board.

(2) An order made under subsection (1) may be modified or revoked in accordance with a further order by the chief conservation officer.

(3) The person carrying out the operation to which an order under subsection (1) or (2) makes reference or a person having a monetary interest in the operation may by written notice request the conservation engineer making the order to refer it to a Provincial Court judge for review and the conservation engineer shall refer the order to a Provincial Court judge having jurisdiction in the area in which the operation is taking place.

(4) The Provincial Court judge to whom an order is referred under this section shall inquire into the need for the conservation engineer's order and for that purpose may exercise the powers of a commissioner under the Public Inquiries Act.

(5) Where an order has been referred to a Provincial Court judge under this section, the burden of establishing that the order is not needed is on the person who requested that the order be so referred.

(6) The Provincial Court judge to whom an order is referred under this section may confirm or set aside the order and the decision of the Provincial Court judge is final and conclusive.

(7) A person shall not continue an operation in respect of which an order has been made under this section except in accordance with the terms of the order of a conservation engineer or the chief conservation officer, or until the order has been set aside by a Provincial Court judge under this section.

(8) The conservation engineer shall report an order made by the conservation engineer under this section to the chief conservation officer.

(2) A person who produces petroleum from a pool or field under the terms of a unit agreement within the meaning of Division II, or an amended unit agreement, before the unit agreement or amended unit agreement is filed with the chief conservation officer is guilty of an offence.

(3) A person is guilty of an offence who contravenes section 167, subsection 169(3), section 187, section 188, subsection 189(7) or a regulation made under section 145 when the contravention is stated in the regulations to be an offence under this Part.

(4) A person is guilty of an offence who contravenes or fails to comply with

(5) Notwithstanding subsection 149(1), a person does not commit an offence under subsection 149(1) by reason of committing waste as defined in paragraph 149(2)(f) or (g) unless that person has been ordered by the committee to take measures to prevent the waste and has failed to comply.

(2) A civil remedy for an act or omission is not suspended or affected because the act or omission is an offence under this Part.

(2) Where, before April 4, 1987, authorization for work or activity or approval of a development plan was given under subsection 5(1) of the Oil and Gas Production and Conservation Act (Canada) or a regulation made under that Act, the authorization or approval shall be considered to have been given by the board under this Part.

(2) The aggregate amount of all payments made under subsection (1) shall not exceed the sum of $75,000,000.

(3) A payment shall not be made by the provincial minister under subsection (1) in relation to a project unless the federal minister has agreed to pay 3/4 of the total costs incurred by both governments in respect of the project.

(4) The provincial minister shall not pay an amount of money under subsection (1) unless the payment is for costs incurred in respect of a project approved and in progress before the day that is the later of

(2) Two members of the development fund committee are to be appointed by each government.

(3) The development fund committee shall monitor and review the implementation of the development fund under this Part.

(4) The development fund committee is, by the joint operation of this subsection and subsection 232(4) of the federal Act, dissolved 3 years after the date, as determined by both ministers, on which the last payment is made under subsection 205(1).