This consolidation is unofficial and is for reference only.  For the official version of the regulations, consult the original documents on file with the Registry of Regulations, or refer to the Royal Gazette Part II.
Regulations are amended frequently.  Please check the list of Regulations by Act to see if there are any recent amendments to these regulations filed with the Registry that are not yet included in this consolidation.
Although every effort has been made to ensure the accuracy of this electronic version, the Registry of Regulations assumes no responsibility for any discrepancies that may have resulted from reformatting.
This electronic version is copyright © 2015, Province of Nova Scotia, all rights reserved.  It is for your personal use and may not be copied for the purposes of resale in this or any other form.


Underground Hydrocarbons Storage Regulations

made under Section 33 of the

Underground Hydrocarbons Storage Act

S.N.S. 2001, c. 37

O.I.C. 2002-544 (December 6, 2002), N.S. Reg. 148/2002

as amended to O.I.C. 2015-96 (March 31, 2015, effective April 1, 2015), N.S. Reg. 163/2015


Citation

1     These regulations may be cited as the Underground Hydrocarbons Storage Regulations.


Definitions

2     In these regulations,

 

                (a)    “Act” means the Underground Hydrocarbons Storage Act;

 

                (b)    “Administrator” means a person designated by the Minister pursuant to Section 3, and includes an acting Administrator;

 

                (c)    “allowable expenditure” means an expenditure made by a licensee during the term of their licence in accordance with Section 22;

 

                (d)    “application” means an application

 

                         (i)     for a licence or lease,

 

                         (ii)    to amend a schedule or a term or condition of, add a term or condition to, or delete a term or condition from a licence or lease,

 

                         (iii)   to renew a licence or lease,

 

                         (iv)   to surrender a licence or lease;

 

                (e)    “Board” means the Nova Scotia Utility and Review Board;

 

                (f)    “complete application” means an application that enables the Administrator to commence a detailed review of the application;

 

                (g)    “development program” means a program of work to be performed on the development of a storage area each year or in blocks of years during the term of a lease by the lessee in accordance with Section 21;

 

                (h)    “Department” means the Department of Energy;

 

                (i)     “interest holder” means a person or a partnership as defined in the Partnerships and Business Names Registration Act having an interest in a right;

 

                (j)     “lease” means a hydrocarbon storage-area lease issued pursuant to Section 15 of the Act;

 

                (k)    “licence” means a hydrocarbon storage-area licence issued pursuant to Section 9 of the Act, except where the context requires otherwise;

 

                (l)     “Minister” means the Minister of Energy;

 

                (m)   “Registrar” means the Registrar appointed pursuant to Section 5 of the Act;

 

                (n)    “representative” means a person designated in accordance with Section 18 to represent a licensee, a lessee or an interest holder;

 

                (o)    “right” means a licence or lease granted pursuant to the Act and regulations and includes a right arising from the licence or lease, except where the context requires otherwise;

 

                (p)    “storage area” means an area that has geological potential to contain one or more storage reservoirs;

 

                (q)    “storage reservoir” means space or spaces in geological formations, whether occurring naturally or otherwise, that may be used for the storage of hydrocarbons, but does not include underground tanks for the storage of fuels;

 

                (r)    “work program” means a program of work to be performed on the development of a storage area each year or in blocks of years during the term of a licence by the licensee in accordance with Section 19.


Administrator

3     The Minister shall designate an Administrator to administer these regulations.


Precondition before applying for a licence

4     An applicant for a licence must

 

                (a)    hold a mineral right for salt and potash under the Mineral Resources Act; and

 

                (b)    obtain a written statement from the Minister of Natural Resources, in accordance with subsection 8(2) of the Act, approving the use of the geological formation for the development of a storage reservoir.


Application form

5     The Administrator may prescribe a form for an application.


Completing an application

6     (1)    An application must be completed and signed by

 

                (a)    a person who is an authorized signatory of the applicant, in the case of an application referred to in subclause 2(d)(i); or

 

                (b)    a representative, in the case of an application referred to in subclauses 2(d)(ii), (iii), or (iv).

 

       (2)    An agent of a person identified in clause (1)(a) may sign an application if the agent produces proof of authorization to sign the application.


Submitting an application

7     (1)    An application must be submitted to the Registrar.

 

       (2)    The Registrar shall not process an application for an area

 

                (a)    identified in subsection 13(1) of the Act; or

 

                (b)    that is subject to an existing licence or lease, or a prior application that has been filed but not processed or rejected.

 

       (3)    In addition to recording and filing all applications for licences and leases as required by subsections 8(3) and 15(5) of the Act, the Registrar shall

 

                (a)    record and file all applications referred to in subclauses 2(d)(ii), (iii) and (iv); and

 

                (b)    send a copy of each application to the Administrator.

 

       (4)    An application must be accompanied by all information and documentation that the Administrator requires to process the application, including, unless directed otherwise in writing by the Administrator,

 

                (a)    the name, address, telephone and fax number of the applicant and, where applicable, proof of current registration with the Nova Scotia Registry of Joint Stock Companies, and the name, title and address of the person to be contacted with respect to the application;

 

                (b)    the area to be covered by the licence or lease;

 

                (c)    proof that the applicant holds a mineral right under Mineral Resources Act as required by clause 4(a);

 

                (d)    a written statement from the Minister of Natural Resources as required by clause 4(b);

 

                (e)    a completed Designation of Representative form as prescribed by the Administrator, in accordance with Section 18;

 

                (f)    a statement, on a form prescribed by the Administrator, identifying all interest holders in a right and their percentage interests in the right;

 

                (g)    information required to be submitted as part of or in support of the application pursuant to any other enactments;

 

                (h)    for an application for a licence, documentation detailing a work program, as required by Section 19;

 

                (i)     for an application for a lease,

 

                         (i)     information and data as required by Section 20, and

 

                         (ii)    documentation detailing a development program as required by Section 21;

 

                (j)     information prescribed in a code of practice, directive, standard, policy, or guideline established under subsection 4(2) of the Act or prepared or adopted under Section 24 of the Act;

 

                (k)    other information requested by the Administrator.

 

       (5)    The Administrator may waive any of the requirements of subsection (4) in writing if the Administrator is satisfied that the requirement is not relevant to a particular application and shall forward to the Registrar a copy of any waiver issued.

 

       (6)    An application must be accompanied by a non-refundable fee of $124.65.

Subsection 7(6) amended: O.I.C. 2015-96, N.S. Reg. 163/2015.


Incomplete application for licence or lease

8     (1)    If an application for a licence or lease is not complete or additional information is required, the Administrator shall notify the applicant in writing within 30 days of receipt of the application and request the information necessary to make the application complete.

 

       (2)    If the information is not provided by an applicant within 3 months of a request under subsection (1), the Administrator may reject the application and, if so, shall immediately notify the applicant in writing that the application has been rejected and forward a copy of the notice to the Registrar.

 

       (3)    The Administrator may, at an applicant’s request, grant an extension of the 3-month time limit prescribed in subsection (2).

 

       (4)    If the information is not provided by an applicant within an extended time limit granted pursuant to subsection (3), the Administrator shall reject the application and shall immediately notify the applicant in writing that the application has been rejected and forward a copy of the notice to the Registrar.


Notice of complete application

9     When the Administrator considers an application to be a complete application, the Administrator shall notify the applicant in writing and forward a copy of the notice to the Registrar.


Applying for an amendment to a licence or lease

10   (1)    A licensee or lessee may apply to the Minister for an amendment to a licence or lease.

 

       (2)    An application for an amendment to a licence or lease must contain

 

                (a)    a description of the proposed modification and an explanation of its purpose;

 

                (b)    an assessment of the effects of the proposed modification in relation to the information contained in the original application for the licence or lease;

 

                (c)    other information as required by the Administrator.


Applying for a renewal of a licence or lease

11   (1)    Upon application to the Minister on or before the expiry date of the licence, the Minister may renew a licence if the licensee is bona fide working the licence and has complied with the Act, the regulations and the terms and conditions of the licence.

 

       (2)    Upon application to the Minister within 6 months immediately preceding the expiration of a lease, the Minister may renew the lease if the lessee is bona fide working the lease and has complied with the Act, the regulations and the terms and conditions of the lease.

 

       (3)    An application for renewal of a licence or lease must include any changes to the information submitted with the original application for the licence or lease.

 

       (4)    A licence or lease renewed under subsection (1) or (2) shall be subject to such terms and conditions as the Minister may determine.


Costs and expenses of processing an application

12   (1)    The Administrator may bill an applicant for reasonable costs and expenses in excess of the application fee prescribed in subsection 7(6) that are incurred directly by the Administrator in processing the application, and the applicant must pay the additional amount before a licence or lease is issued.

 

       (2)    An applicant may request that the Administrator provide documentation to support a bill issued under subsection (2).


Annual rent

13   (1)    Upon issuance of and in advance of renewal of a licence, the licensee must pay to the Minister an annual rent of $3.15 per hectare of the area covered by the licence.

Subsection 13(1) amended: O.I.C. 2015-96, N.S. Reg. 163/2015.

 

       (2)    Before a lease is granted to a licensee, the licensee must pay to the Minister an annual rent of $6.25 per hectare of the area covered by the lease.

Subsection 13(2) amended: O.I.C. 2015-96, N.S. Reg. 163/2015.

 

       (3)    A lessee must pay the rent prescribed in subsection (2) annually on or before the anniversary date of the lease for the next ensuing year.

 

       (4)    All payments made under subsections (1), (2) and (3) must be forwarded to the Registrar.


Processing an application

14   (1)    Subject to subsection (2), the Administrator shall process an application within 90 days of the later of

 

                (a)    the date on which notice of the complete application is given pursuant to Section 9; or

 

                (b)    where applicable, the receipt of additional information requested pursuant to Section 15.

 

       (2)    If the Administrator determines that it will take more than 90 days to process an application, the Administrator shall advise the applicant in writing and provide a revised estimate of the time needed.


Review of application

15   During the review of an application, the Minister may request additional information from

 

                (a)    the applicant, agent of the applicant or representative of the applicant;

 

                (b)    a person who is directly affected by the application;

 

                (c)    a local authority, the Government, a Government agency, or the Government of Canada or any agency or department of the Government of Canada; or

 

                (d)    any other source that the Minister considers appropriate.


Refusal to grant licence or lease

16   (1)    The Minister may refuse to issue a licence or lease if the Minister decides that granting the licence or lease could threaten or adversely affect an agreement, licence or lease issued under the Mineral Resources Act or the Petroleum Resources Act.

 

       (2)    If the Minister refuses to issue a licence or lease, the Minister shall notify the applicant in writing of the decision, together with reasons, and shall forward a copy of the decision to the Registrar.


Terms and conditions of a licence or lease

17   (1)    The duration of a licence or lease shall be as prescribed in the Act.

 

       (2)    The terms and conditions of a licence or lease shall include

 

                (a)    compliance with the approved work program or development program, as applicable;

 

                (b)    provision of financial security in accordance with Section 24;

 

                (c)    compliance with the reporting requirements in accordance with Section 26;

 

                (d)    other matters considered appropriate by the Minister.


Representatives

18   (1)    An applicant for a licence or lease must designate a representative.

 

       (2)    The representative has sole responsibility on behalf of a licensee or lessee, or an interest holder in the licence or lease, for

 

                (a)    corresponding with the Minister, the Registrar, the Administrator and the Department;

 

                (b)    remitting any money payable by the licensee or lessee to the Province;

 

                (c)    distributing any money refunded by the Province to the licensee or lessee;

 

                (d)    negotiating or renegotiating a licence or lease, a surrender of lands, or any other obligation under a licence or lease; and

 

                (e)    such other duties as may be specified in the licence or lease.

 

       (3)    A licensee or lessee must covenant and agree that they are responsible for advising the representative from time to time of the obligations under the licence or lease and at law.

 

       (4)    A licensee or lessee is jointly and severally liable for the acts or omissions of the representative with respect to any matter to which the authority of the representative extends.

 

       (5)    A representative continues as representative unless another representative is substituted as provided for in subsection (9).

 

       (6)    The Province may rely, without detriment, on any representations made or actions taken by the representative.

 

       (7)    A licensee, lessee or interest holder is deemed to have notice of all correspondence from the Minister, the Registrar, the Administrator or the Department that is directed through the representative.

 

       (8)    Payment of money by the Province to a representative is sufficient discharge of an obligation of the Province to pay the licensee, lessee or interest holder.

 

       (9)    The licensee or lessee may, upon giving the Minister 30 days notice in writing, substitute another representative by filing a new Designation of Representative with the Registrar, and upon filing, the former Designation of Representative is revoked.


Work program

19   (1)    An applicant for a licence must submit for approval by the Administrator a work program to determine the suitability of a storage area for the future development of a storage reservoir.

 

       (2)    The licensee must perform work in the storage area during the term of the licence

 

                (a)    to the extent necessary to obtain the information and data required by Section 20; and

 

                (b)    to the value of $125 per hectare of the area covered by the licence.

 

       (3)    On or before the expiry date of a licence, or another date approved in writing by the Administrator, the licensee must file a report with the Administrator stating that the licensee has performed the work described in the approved work program referred to in subsection (1) and has complied with subsection (2).

 

       (4)    The report required by subsection (3) must be in a format approved by the Administrator or on a form prescribed by the Administrator.

 

       (5)    If the licensee performs work in excess of that required by subsection (2), the excess may be applied in subsequent renewals of the licence.

 

       (6)    The value of work performed during the term of a licence shall be equivalent to the allowable expenditures made by the licensee during the term.


Information from work program to accompany lease application

20   An applicant for a lease must submit for approval by the Administrator information and data, obtained during the course of the work program under the licence, that establish the suitability of a storage area for the development of one or more storage reservoirs, including

 

                (a)    a brief description of the proposed storage area or storage reservoir;

 

                (b)    a map showing the type, surveyed location and depth of all exploratory and delineation wells and boreholes within a 1 km radius of the proposed storage reservoir;

 

                (c)    a table of the wells and boreholes identified in clause (b) showing the date each well and borehole was drilled and its size, type, location, depth and current status;

 

                (d)    copies of all logs of wells and boreholes identified in clause (b);

 

                (e)    sufficient cross-sections to show the geological structure of the area, supported where appropriate by gamma ray and neutron density geophysical well logs, well or borehole logs, and any other applicable well or borehole records;

 

                (f)    the depth to which fresh-water-bearing strata and other formation waters are likely to be encountered;

 

                (g)    the proposed location of the salt solution well or wells;

 

                (h)    a geological analysis of the anticipated salt formation, including its depth and thickness;

 

                (i)     copies of applications and approvals, if granted, issued by other regulators on the project including, but not limited to, municipal approvals and environmental assessment approvals;

 

                (j)     other information requested by the Administrator.


Development program

21   (1)    An applicant for a lease must submit for approval by the Administrator a development program that sets out and describes milestone events in the development of a storage reservoir in the storage area.

 

       (2)    A lessee must apply to the Board for an approval to construct a storage reservoir pursuant to subsection 22(1) of the Act within 2 years of the date of the lease.

 

       (3)    On or before the anniversary date of a lease, or another date approved in writing by the Administrator, a lessee must file a report with the Administrator demonstrating that the lessee has performed the work described in the development program referred to in subsection (1) and has complied with subsection (2).

 

       (4)    The report described in subsection (3) must be in a format approved by the Administrator or on a form prescribed by the Administrator.


Allowable expenditures

22   (1)    Subject to subsections (2) and (3), the Administrator has the discretion to determine what constitutes an allowable expenditure for inclusion in the statement of expenditures required by subsection 14(3) of the Act.

 

       (2)    The full cost of the following work, including reasonable expenses allowed by the Minister or Administrator, is considered an allowable expenditure:

 

                (a)    geological surveys;

 

                (b)    geophysical surveys, including ground, marine and borehole investigations;

 

                (c)    airborne surveys, including photographic, geophysical and geochemical;

 

                (d)    photogeological and remote imagery interpretations;

 

                (e)    drilling and abandonment of wells, drill holes and boreholes;

 

                (f)    surface surveys related to exploration or development;

 

                (g)    surface exploration work;

 

                (h)    water monitoring surveys;

 

                (i)     interpretation and analyses of data;

 

                (j)     technical data compilations;

 

                (k)    laboratory and appraisal studies and reports pertaining to any of the work described in this Section; and

 

                (l)     providing additional information to the Minister or Administrator,

 

and other work that is necessarily incidental to and directly associated with work identified in clauses (a) to (l).

 

       (3)    Administrative and overhead costs, such as office expenses, are considered allowable ancillary expenditures, the total cost of which must not exceed 10% of the value set out in clause 19(2)(b), or actual allowable expenditures, whichever amount is greater.


Goods and services

23   (1)    For the purpose of this Section, “goods” includes significant structures and construction, plant, equipment, and all other facilities required by a licensee or lessee in the development or operation of a storage reservoir.

 

       (2)    In acquiring goods and services for work pursuant to a licence or lease, the licensee or lessee must make all reasonable attempts to use

 

                (a)    services provided from within Nova Scotia; and

 

                (b)    goods manufactured in Nova Scotia or provided from within Nova Scotia,

 

but must use the goods and services only if they are competitive in terms of fair market price, quality and delivery.

 

       (3)    In hiring employees and independent contractors, a licensee or lessee must make all reasonable attempts to hire qualified persons normally resident in Nova Scotia.

 

       (4)    A licensee or lessee must require and ensure that contractors and main subcontractors hired by them to perform work under the licence or lease comply with this Section.

 

       (5)    Nothing in these regulations relieves a licensee or lessee, or the contractors and main subcontractors hired by them, of responsibility for the selection of employees, independent contractors, goods, services and suppliers.

 

       (6)    A licensee or lessee must file a report detailing compliance with this Section

 

                (a)    within 30 days after the expiry date of the licence or the anniversary date of the lease; or

 

                (b)    at any other time specified by the Administrator.

 

       (7)    A report described in subsection (6) must be in a format approved by the Administrator or on a form prescribed by the Administrator.


Financial security and responsibility

24   (1)    A licensee or lessee must

 

                (a)    provide the Registrar with financial security in a form and in an amount satisfactory to the Minister; and

 

                (b)    provide the Registrar with evidence, in a form satisfactory to the Minister, that the licensee or lessee is financially able to meet any financial liability that may be incurred as a result of activities conducted under the licence or lease.

 

       (2)    The security will be forfeited in whole if the licensee or lessee does not fulfil the obligations for which the security is provided.

 

       (3)    Forfeiture of the security does not impair or otherwise affect the rights of the Province under the Act, these regulations and the licence or lease.

 

       (4)    The Minister shall return the security

 

                (a)    despite subsection (2) if, in the Minister’s opinion, the failure to fulfil the obligations under a licence or lease is the result of technical difficulties beyond the control of the licensee or lessee despite adherence to industry practices;

 

                (b)    if, in the Minister’s opinion, further performance under a licence or lease would not be reasonable; or

 

                (c)    if the obligations for which the security was provided have been performed to the satisfaction of the Minister.


Creation and maintenance of business establishment

25   (1)    A licensee or lessee must create and maintain one or more business establishments in Nova Scotia where their representative

 

                (a)    can be reached during normal business hours;

 

                (b)    must keep at least one copy of all information and samples of all material obtained or recovered from the storage area, including well cuttings, core material, fluid samples, well logs and other items listed in subsection 25(2), as well as other items required by the Administrator;

 

                (c)    must keep at least one copy of all reports and records directly related to the activities conducted under the licence or lease;

 

                (d)    must ensure that during normal business hours there is at least one individual qualified to assist the Minister, the Registrar and the Administrator,

 

and from where the representative is in continuous contact with the activities conducted under the licence or lease and with all participating persons responsible for the obligations contained in the licence or lease.


Reporting of data and information

26   (1)    A licensee or lessee must comply with all record-keeping and reporting requirements prescribed in a code of practice established under subsection 4(2) of the Act or prepared or adopted under Section 24 of the Act.

 

       (2)    A licensee or lessee must submit to the Administrator, through the Registrar, in a form acceptable to the Administrator, the following data and information:

 

                (a)    within 60 days after the expiry date of the licence or anniversary date of the lease,

 

                         (i)     a progress report,

 

                         (ii)    geological and geophysical data and interpretations,

 

                         (iii)   reports of all surveys not referred to in the submissions made under subclauses (i) and (ii) that were conducted in the storage area, and

 

                         (iv)   with respect to a licence, a statement of expenditures required by subsection 14(3) of the Act; and

 

                (b)    upon the abandonment, suspension or completion of a well, a complete well history report including samples and descriptions of rock cuttings, gas and fluid samples, core samples and any other data specified in the licence, lease or code of practice.

 

       (3)    The geological data referred to in subclause (2)(a)(ii) must include

 

                (a)    copies of all aerial photographs taken by the licensee or lessee; and

 

                (b)    a geological report of any area investigated, including geological maps and cross-sections and stratigraphic and structural data.

 

       (4)    The geophysical data referred to in subclause (2)(a)(ii) must include,

 

                (a)    if a gravity survey has been conducted, maps showing

 

                         (i)     the location and ground elevation of each station,

 

                         (ii)    the final corrected gravity value at each station,

 

                         (iii)   the gravity contours drawn on the gravity values, and

 

                         (iv)   the boundaries of the area covered by the licence or lease;

 

                (b)    if a seismic survey has been conducted, maps on a scale of not less than 1:50 000 showing

 

                         (i)     the location and ground elevation of each shot hole,

 

                         (ii)    the corrected time value at each shot for all horizons determined during the course of the survey,

 

                         (iii)   contours and isochrons drawn on the corrected values with a contour value of not more than 30 m of the equivalent in time, and

 

                         (iv)   the boundaries of the area covered by the licence or lease;

 

                (c)    if a magnetic survey has been conducted, maps showing

 

                         (i)     the location of the flight lines,

 

                         (ii)    the magnetic contour lines at intervals of 10 gamma, and

 

                         (iii)   the boundaries of the area covered by the licence or lease.

 

       (5)    A licensee or lessee must submit to the Administrator any information obtained during the course of a work program or development program that is of importance to the understanding of the environment, renewable resources, geology or history.

 

       (6)    A licensee or lessee must use due diligence and care to ensure that the information submitted to the Minister or Administrator is not misleading, false or incomplete.

 

       (7)    Any person having reason to believe that an emergency condition exists or is likely to occur in connection with activities conducted under a licence or lease must immediately inform the Administrator.


Confidentiality of data and information

27   (1)    All data and information submitted under these regulations and pertaining to a storage area must be filed with the Registrar and shall, while the licence or lease is still valid, be kept confidential by the Minister for the following time periods:

 

                (a)    for factual and interpretive geological, geochemical and photogeological data and information, 3 years following its filing with the Registrar;

 

                (b)    for factual and interpretive geophysical data and information, 5 years following the field acquisition of the data and information;

 

                (c)    for information and data relating to the prognosis, drilling and completion of an exploration well, 2 years following the completion or abandonment of the well.

 

       (2)    Subsection (1) does not apply to

 

                (a)    information and data relating to environmental or social matters, which shall not be kept confidential for any period of time;

 

                (b)    information and data for which a period of confidentiality is provided elsewhere in these regulations or by any other enactment; or

 

                (c)    information, access to which is otherwise provided for pursuant to these regulations or the Act.

 

       (3)    Despite subsection (1), the Minister may at any time

 

                (a)    publish general reports and summaries based on geological, economic or technical information and data submitted by a licensee or lessee, compiled in an aggregate format and not specifically identifiable as confidential information;

 

                (b)    publish a detailed report of any accident or other occurrence that results in personal injury or damage to the environment, and the Minister need not keep confidential any information and data used in preparing the report;

 

                (c)    divulge to a licensee or lessee any information or data that the Minister considers may help prevent an accident or other occurrence that could result in personal injury or damage to the environment;

 

                (d)    release general topographic information, legal surveys and elevations of well locations, the current depths of wells and the current status of wells;

 

                (e)    release any information about a licence or lease that has been cancelled; or

 

                (f)    release any other information with the consent of the licensee or lessee concerned.


Vesting orders and surface rights permits

28   (1)    In this Section,

 

                (a)    “land” means land, other than land owned by the Crown, that is required

 

                         (i)     by a licensee for the purpose of passing over, entering upon or working the lands covered by the licence, or

 

                         (ii)    by a lessee for the purpose of the storage area covered by the lease,

 

and includes any estate, term, easement, right or interest in, to, over or affecting land;

 

                (b)    “owner” includes a mortgagee, a tenant, a registered judgment creditor, a person entitled to a limited estate or interest in land, a guardian or trustee of an incompetent person or of a person incapable of managing their affairs, and a guardian, executor, administrator or trustee in whom land is vested.

 

       (2)    Any document required under this Section to be served must be served personally or by registered mail addressed to the person to be served at the person’s last known address and, in the case of service by registered mail, service is deemed to be made on the 5th day after the date of mailing.

 

       (3)    A licensee or lessee requiring land must serve a notice on each owner of the land so far as they can be ascertained, accompanied by

 

                (a)    a description of the land that is required by the licensee or lessee;

 

                (b)    details of the compensation, if any, offered by the licensee or lessee for the land required;

 

                (c)    a detailed statement by the licensee or lessee of the value of the land required in respect of which compensation is offered;

 

                (d)    a description of the procedure available pursuant to the Act if the owner of the land and the licensee or lessee are unable to agree; and

 

                (e)    other information required by the Administrator.

 

       (4)    If a licensee or lessee reaches an agreement with an owner of land, the agreement must include

 

                (a)    a provision that the specified compensation for the market value of the land be paid, at the option of the owner, by one lump sum payment or by annual or periodic payments of equal or different amounts over a period of time;

 

                (b)    a provision that the specified compensation for any disturbance or injury suffered as a result of the operations of the licensee or lessee will be paid, at the option of the owner, by one lump sum payment or by annual or periodic payments of equal or different amounts over a period of time;

 

                (c)    indemnification of the owner from all liabilities, damages, claims, suits and actions arising from the operations of the licensee or lessee, other than liabilities, damages, claims, suits and actions arising from gross negligence or wilful misconduct of the owner of the lands;

 

                (d)    a provision limiting the use of the land to the purposes for which the land is specified by the agreement to be required, but the agreement must state that the owner of the land may consent to a proposed additional use at the time of the proposed additional use.

 

       (5)    If licensee or lessee requiring land is unable to reach agreement with a known owner, an application to the Minister for a surface rights permit pursuant to Section 13 of the Act or a vesting order pursuant to Section 17 of the Act must include

 

                (a)    a copy of the notice served on the owner of the land pursuant to subsection (3);

 

                (b)    proof of service of the notice on the owner; and

 

                (c)    the reason for the application, including a detailed summary of the efforts that have been made to reach an agreement with the owner.

 

       (6)    If an application described in subsection (5) is received by the Minister, no permit or vesting order shall be issued unless all of the items listed in clauses (4)(a) to (d) are agreed upon.

 

       (7)    If a licensee or lessee requiring land cannot, using reasonable efforts, ascertain the identity of a owner or determine an address for an owner, an application to the Minister for a surface rights permit pursuant to Section 13 of the Act or a vesting order pursuant to Section 17 of the Act shall include the reason for the application, including a detailed summary of the efforts that have been made to identify and locate the owner.

 

       (8)    If an application described in subsection (7) is received by the Minister, the Minister may require the licensee or lessee to take such additional measures as the Minister considers reasonable to identify and locate the owner before the Minister considers issuing a surface rights permit or a vesting order.


       (9)    If a lessee has made an application for a vesting order and, prior to the vesting order being filed pursuant to subsection 17(4) of the Act, the lessee decides not to acquire all or part of the land for which the vesting order is sought, the Expropriation Act and, in particular, Section 20, shall apply with the necessary changes in detail.


Change of name

29   If the name of a licensee or lessee changes, the licensee or lessee must notify the Registrar in writing within 30 days of the change.


Sale, transfer or assignment of right or interest in a right

30   (1)    If a licensee, lessee or interest holder proposes to sell, transfer, assign or otherwise dispose of their interest in a right or interest in a right, the licensee, lessee or interest holder must immediately give notice to the Minister of the proposed transaction on a form prescribed by the Administrator and completed by the parties to the transaction.

 

       (2)    The Minister may consent to a sale, transfer, assignment or other disposition of a right or interest in a right.

 

       (3)    No sale, transfer, assignment or other disposition of any right or interest in a right is of any effect, unless

 

                (a)    the Minister consents to it as required by Section 20 of the Act;

 

                (b)    3 copies of the form required by subsection (1) are submitted to the Registrar, together with the fee of $27.80; and

Clause 30(3)(b) amended: O.I.C. 2015-96, N.S. Reg. 163/2015.

 

                (c)    the Registrar records a copy of the form referred to in clause (b).

 

       (4)    The Registrar shall not record any sale, transfer, assignment or disposition of a right or interest in a right covering land comprising less than one section as defined in Section 9 of the Petroleum Resources Regulations made under the Petroleum Resources Act.

 

       (5)    No right or interest in a right is valid or effective as against any person claiming for valuable consideration and without notice under any subsequent sale, transfer, assignment or disposition affecting that right or interest, unless notice of the sale, transfer, assignment or disposition or an approved summary of it is recorded in the manner prescribed in this Section before the recording of the subsequent sale, transfer, assignment or disposition of the right or interest.

 

       (6)    All documents or copies of the documents filed with the Registrar under this Section are open for inspection by a person, on payment of a total of $22.25, between 10 a.m. and 4 p.m. every day except Saturday, Sunday and statutory holidays, unless the Registrar notifies the public of a change in these times or days.

Subsection 30(6) amended: O.I.C. 2015-96, N.S. Reg. 163/2015.

 

       (7)    The sale of a controlling interest in a business that is a licensee or lessee, or the transfer of a licence or lease from a parent company to a subsidiary or an affiliate, is deemed to be a transfer requiring the written consent of the Minister under Section 20 of the Act.


Suspension or cancellation of a licence or lease

31   (1)    If the Minister intends to suspend or cancel a licence or lease pursuant to subsection 27(1) of the Act, the Minister shall give licensee or lessee notice of the Minister’s intent and a reasonable time period to remedy any breach or default.

 

       (2)    The Minister may reinstate a licence or lease that has been suspended pursuant to subsection 27(1) of the Act as it was originally issued.

 

       (3)    The suspension, cancellation or surrender of a licence or lease does not relieve the licensee or lessee of responsibility for the proper abandonment of the storage reservoir and restoration of the storage area.


Suspension or cancellation of an approval

32   A decision of the Board to cancel or suspend an approval pursuant to subsection 27(2) of the Act must be filed with the Registrar who shall forward a copy to the Administrator.


Board order to be filed with Registrar

33   An order of the Board under subsection 26(2) of the Act must be filed with the Registrar who shall forward a copy to the Administrator.


Board fees

34   (1)    In this Section, “fees” includes amounts payable to the Board

 

                (a)    upon application for an approval;

 

                (b)    for renewal, amendment, suspension, expansion, consolidation, transfer, assignment, cancellation, reinstatement or abandonment of an approval; and

 

                (c)    for the purpose of recovering all or part of such direct and indirect expenses as the Board determines to be attributable to its responsibilities under the Act or the regulations.

 

       (2)    The Board may set fees and may order that the fees be paid as the Board considers appropriate.

 

       (3)    The holder of an approval who is billed under subsection (2) may ask the Board for documentation to support the bill.


Inspectors

35   (1)    Pursuant to Section 28 of the Act, the Minister or the Board may appoint an inspector, including the Administrator, to conduct inspections or investigations for the purposes of these regulations.

 

       (2)    Upon entering a site, an inspector must, upon request, produce an identification card provided by the Province and provide reasons for the entry.

 

       (3)    An inspector, in carrying out any duties or exercising any powers under the Act or these regulations, may be accompanied by one or more persons who are considered by the inspector to be necessary to enable the inspector to carry out those duties or exercise those powers.


Licensee or lessee audit or inspection reports

36   (1)    Upon the request of the Minister or the Board, a licensee or lessee must conduct an audit or an inspection to ensure that an activity that is the subject of a licence, lease or approval is carried out in compliance with

 

                (a)    the Act;

 

                (b)    these regulations; and

 

                (c)    the terms and conditions of the relevant licence, lease or approval.

 

       (2)    The audit or inspection referred to in subsection (1) must document

 

                (a)    all non-compliance noted; and

 

                (b)    the corrective actions taken or planned.

 

       (3)    A copy of any audit or inspection conducted pursuant to this Section that is requested by the Minister must be filed with the Registrar upon completion.


Report of certifying authority

37   (1)    The Minister or the Board may engage the services of a person as a certifying authority.

 

       (2)    The certifying authority shall

 

                (a)    determine whether operations will be, have been or are being carried out in accordance with the Act, these regulations, and the terms and conditions of the relevant licence, lease or approval;

 

                (b)    perform such other duties as determined by the Minister or the Board.

 

       (3)    The certifying authority shall be engaged by the Minister or the Board and selected from a list of independent third parties who have engaged persons, or who are persons, who are knowledgeable about storage reservoirs.

 

       (4)    The licensee or lessee must assist the certifying authority or any employee or agent of the certifying authority acting in the exercise of the duties outlined in subsection (2).

 

       (5)    On completion of the certifying authority’s duties, the certifying authority must provide the Minister or the Board with a report that

 

                (a)    advises on the certifying authority’s findings pursuant to clause (2)(a);

 

                (b)    certifies that the operations will continue to meet the requirements of the Act, these regulations, and the terms and conditions of the licence, lease or approval for such period as the certifying authority determines; and

 

                (c)    includes any other information requested by the Minister or the Board.

 

       (6)    The costs and expenses of the certifying authority shall be paid by the Minister or the Board and shall be recovered from the licensee or lessee whose activity is the subject of the certifying authority’s report.

 

       (7)    A licensee or lessee may request that the Minister or the Board provide documentation to support a bill issued under subsection (6).

 

       (8)    The report issued by the certifying authority pursuant to subsection (5) may be used by the Minister or the Board to assist in

 

                (a)    evaluating an application; or

 

                (b)    the exercise of the powers and duties of the Minister or the Board conferred by the Act and these regulations.


Codes of practice

38   (1)    The Minister may require a licensee or lessee to comply with a code of practice, or any part thereof, established by the Minister pursuant to subsection 4(2) of the Act or prepared or adopted by the Minister pursuant to subsection 24(1) of the Act.

 

       (2)    The Minister may require a licensee or lessee to comply with any code of practice, guideline or standard incorporated by reference pursuant to subsection 24(2) of the Act in any licence or lease.

 

       (3)    If an application is made in writing to the Minister for authorization to vary from a standard required under subsection (1) or (2), the Minister may authorize the variance if the Minister is satisfied that the variance affords protection equal to or greater than the protection afforded by the standard from which the variance is requested.

 

       (4)    Subsections (1) to (4) apply, with the necessary changes in detail, to approvals issued by the Board under Section 22 of the Act.


Service of documents

39   (1)    Unless otherwise required, a request, order, direction or other document that must be given in writing or served pursuant to the Act or these regulations is deemed to be sufficiently given or served

 

                (a)    upon a copy being personally given to or served on the person to whom it is directed;

 

                (b)    upon a copy being sent by facsimile or by other electronic means to the person to whom it is directed within the recipient’s normal business hours;

 

                (c)    5 days after a copy is sent by mail addressed to the person to whom it is directed at the last known address for that person; or

 

                (d)    in the case of a registered owner of real property, 5 days after a copy is sent by mail to the address of the registered owner shown on the last revised assessment roll.

 

       (2)    If the person to be served is a corporation, service on a director, officer or recognized agent of the corporation in accordance with subsection (1) or service in accordance with the Corporations Registration Act is deemed to be service on the corporation.

 

       (3)    If it is impractical for any reason to serve a document in the manner prescribed in subsection (1), an ex parte application may be made to a judge of the Supreme Court of Nova Scotia for an order for substituted service providing for steps to be taken to bring the matter to the attention of the person to be served.


Offences

40   Every person is guilty of an offence who

 

                (a)    provides false or misleading information when required to provide information under the Act or these regulations;

 

                (b)    does not provide information as required pursuant to the Act or these regulations;

 

                (c)    hinders or obstructs an inspector, the Administrator, the Registrar, the Minister or the Board in exercising their powers or carrying out their duties, or attempting to do so, pursuant to the Act or these regulations; or

 

                (d)    fails to comply with a code of practice, guideline or standard as required by the Minister under Section 38.