Nova Scotia Resources (Ventures) Limited Drilling Assistance Regulations

Regulations Respecting Assistance to Nova Scotia Resources (Ventures) Limited in Respect of Canadian Exploration Expenses and Canadian Development Expenses Incurred in the Nova Scotia Offshore Area Whereas, pursuant to section 6 of the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act*, the Minister of Energy, Mines and Resources has consulted the Minister of Mines and Energy for the Province of Nova Scotia with respect to the annexed Regulations respecting assistance to Nova Scotia Resources (Ventures) Limited in respect of Canadian exploration expenses and Canadian development expenses incurred in the Nova Scotia offshore area, and the latter Minister has approved the making of these Regulations; S.C. 1988, c. 28 Therefore, His Excellency the Governor General in Council, on the recommendation of the Minister of Energy, Mines and Resources, pursuant to section 245 of the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act*, is pleased hereby to make the annexed Regulations respecting assistance to Nova Scotia Resources (Ventures) Limited in respect of Canadian exploration expenses and Canadian development expenses incurred in the Nova Scotia offshore area. These Regulations may be cited as the Nova Scotia Resources (Ventures) Limited Drilling Assistance Regulations. In these Regulations, Act means the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act; (Loi) activity means an exploration or development activity for which an authorization has been given pursuant to paragraph 142(1)(b) of the Act; (activité) eligible expense means a Canadian exploration expense or a Canadian development expense. (frais admissibles) For the purposes of these Regulations, where an eligible expense is incurred as consideration for a service, the expense shall be deemed to be incurred from time to time as the service is rendered; where an eligible expense is incurred as consideration for the use of or the right to use property, the expense shall, subject to paragraph (c), be deemed to be incurred from time to time during the period of use of or the existence of the right to use the property; and where an eligible expense is incurred in respect of tangible property that is intended to be consumed in carrying out an activity, the expense shall be deemed to be incurred at the time the property is in fact consumed in carrying out the activity. Nova Scotia Resources (Ventures) Limited may make up to four applications for payment under section 240 of the Act in respect of eligible expenses incurred or deemed to be incurred in a calendar year. Notwithstanding subsection (1), Nova Scotia Resources (Ventures) Limited may make applications for payment under section 240 of the Act as frequently as once a month while it is incurring expenses in respect of the drilling of a well in the offshore area. Subject to subsections (2) and (3), an application for payment referred to in section 4 shall be made not later than six months after the last day of the calendar year in which the expenses were incurred or deemed to be incurred. Subject to subsection (3), an application for payment in respect of eligible expenses incurred or deemed to be incurred prior to the date of the coming into force of these Regulations shall be made not later than six months after that date. Where the Federal Minister is satisfied that the application of the time limits set out in subsections (1) and (2) would produce an inequitable result in the particular circumstances, the Federal Minister may extend those time limits. Notwithstanding anything in this section, an application for payment referred to in section 4 shall be made not later than December 31, 1993. An application for payment under section 241 of the Act shall be made not later than six months after the date of the coming into force of these Regulations. Where Nova Scotia Resources (Ventures) Limited becomes aware that it has received an overpayment under Part VII of the Act, it shall forthwith submit to the Federal Minister a notice of overpayment containing such information as the Federal Minister may require. Where Nova Scotia Resources (Ventures) Limited receives an overpayment and ceases to exist before it could be required to submit a notice of overpayment pursuant to subsection (1), a notice of overpayment shall be submitted to the Federal Minister by or on behalf of those persons who are beneficially entitled to the portion of the property or estate of Nova Scotia Resources (Ventures) Limited that includes the overpayment, when those persons become aware of the overpayment. Where a notice of overpayment has been submitted pursuant to subsection (1) or (2), the amount of the overpayment shall be repaid to the Federal Minister. Subject to subsection (2), Nova Scotia Resources (Ventures) Limited shall pay to the Federal Minister interest on any overpayment received under Part VII of the Act in the amount prescribed by subsection (3). Interest shall not accrue where an overpayment may reasonably be regarded as resulting from the application of accounting principles or procedures generally accepted in the petroleum industry. The amount of interest to be paid on an overpayment is the product obtained by multiplying the amount of the overpayment made in the calendar year set out in column I of an item of the schedule by the annual interest rate set out in column II of that item, calculated monthly, for each month or part thereof, for the period beginning on the date on which the overpayment was received and ending on the date on which it is repaid.