Nova Scotia Crown Share Adjustment Payments Regulations

Name of transfer payment program

Nova Scotia Crown Share Adjustment Payments Regulations (Statutory)

Start date

June 1, 2012

End date

Perpetuity

Fiscal year for terms and conditions

N/A

Strategic Outcome

1 – Canada's Natural Resource Sectors are Globally Competitive

Link to department's Program Alignment Architecture

1.4 – Statutory Programs — Atlantic Offshore

Description

The Minister of Natural Resources is responsible under sections 246 to 249 of the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act (the 'Accord Act') to make Crown Share Adjustment (CSA) payments to the Province of Nova Scotia from the Consolidated Revenue Fund.

The Government of Canada obtained a 25% carried interest in all offshore projects under the National Energy Program (NEP) which was initiated in 1980. The Province of Nova Scotia subsequently negotiated the right to acquire a portion of any federal interest in oil and natural gas projects in the Canada-Nova Scotia offshore area under the 1982 Canada-Nova Scotia Agreement on Offshore Oil and Gas Management and Revenue Sharing (the “1982 Agreement”). When the NEP was discontinued after the 1984 federal election, Nova Scotia subsequently negotiated Crown Share Adjustment payment provisions as part of the 1988 Accord Act. These provisions of the Accord Act essentially provide Nova Scotia with an equivalent financial benefit to what it would have achieved had the federal government had an interest and Nova Scotia had been able to exercise its Crown Share right under the 1982 Agreement.

This transfer payment program does not have any repayable contributions.

Expected results

Payments to the province of Nova Scotia pursuant to provisions of the Accord Act and the Crown Share Adjustment Payments Regulations.

Fiscal year of last completed evaluation

Although an evaluation has not been undertaken, NRCan completed an internal audit of offshore revenues and transfers in fiscal year 2014-15. The audit concluded that the Department has an effective management control framework to support the exercise of its administrative requirements and obligations in relation to the various offshore revenue and transfer streams, and transfers are made to the provinces on an accurate and timely basis.

Decision following the results of last evaluation

N/A

Fiscal year of planned completion of next evaluation

N/A

General targeted recipient groups

Other level of government

Initiatives to engage applicants and recipients

The province of Nova Scotia is involved in the methodology/calculation of the CSA payment and agrees upon the amount of the payment in advance of the transfer.

Total grants

Total contributions

Total transfer payments