Payments to the Newfoundland Offshore Petroleum Resource Revenue Fund

Name of transfer payment program

Payments to the Newfoundland Offshore Petroleum Resource Revenue Fund (Statutory)

Start date

April 1987

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 section 214 of the Canada-Newfoundland and Labrador Atlantic Accord Implementation Act (the “Accord Act”) to make payments to the province of Newfoundland and Labrador equivalent to the revenue amounts received by Canada in relation to offshore oil and gas activities in the Canada-Newfoundland and Labrador offshore. The Newfoundland Offshore Petroleum Resource Revenue Fund Regulations prescribe the time and manner for making the transfer payments. The funds are drawn from the Consolidated Revenue Fund.

This transfer payment program does not have any repayable contributions.

Expected results

Payments to the province of Newfoundland and Labrador pursuant to provisions of the Canada Newfoundland and Labrador Atlantic Accord Implementation Act.

The program takes into consideration royalties, corporate income taxes and other revenues related to the Canada-Newfoundland and Labrador offshore. Planned spending is subject to changes to factors such as production levels, crude oil prices, exchange rates and operators’ costs.

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 (joint federal -provincial board)

Initiatives to engage applicants and recipients

N/A

Total grants

Total contributions

Total transfer payments