Canada–Newfoundland and Labrador Atlantic Accord Implementation and Offshore Renewable Energy Management Act — C-7.5 41
Definition of shortfall of petroleum deliveries in the Province 41 (1) For the purposes of this section shortfall of petroleum deliveries in the Province means deliveries of petroleum that are inadequate to supply, on commercial terms, (a) the end use consumption and feedstock requirements of industrial facilities that are in place in the Province on the day of the coming into force of this Act; (b) the feedstock requirements of the refining facilities at Come-by-Chance if those facilities were operating at capacity on the day of the coming into force of this Act or any refining facility constructed in the Province to replace those facilities; or (c) the feedstock requirements of any refining facility located in the Province that was not in place on the coming into force of this Act, other than a facility referred to in paragraph (b), if the feedstock requirements required to satisfy the demand of industrial capacity, on the day of the coming into force of this Act, in Nova Scotia, New Brunswick, Prince Edward Island and Newfoundland and Labrador have been met. Notice by Provincial Minister to holders of production licences (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 first 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 prior to the giving of the notice. Later contracts subject to notice (3) Any contract entered into after the giving of the notice referred to in subsection (2) shall be deemed to be varied or suspended to the extent necessary to give effect to that notice. Term of 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. Arbitration in case of dispute whether shortfall exists (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. Notice ceases to have effect (6) Where it is determined pursuant to 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 deemed to be revoked and ceases to have effect on the date on which the determination is made. Regulations (7) Subject to section 7, the Governor in Council may make regulations for carrying out the purposes and provisions of this section and, without limiting the generality of the foregoing, may make regulations (a) defining the expression commercial terms or providing for arbitration to establish commercial terms in any particular case; (b) governing, for the purposes of this section, arbitration and the making of arbitration orders and appeals from and enforcement of arbitration orders; and (c) prescribing the manner of exercising a first option to acquire that is granted pursuant to a notice given under subsection (2). 1987, c. 3, s. 41; 2014, c. 13, s. 11