Nova Scotia Crown Share Adjustment Payment Regulations

Nova Scotia Crown Share Adjustment Payment Regulations (Statutory)

Start date

June 1, 2012

End date

Ongoing

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 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 CSA payment provisions as part of the 1988 Accord Act. These provisions provide Nova Scotia with an equivalent financial benefit to what it would have achieved had Nova Scotia been able to exercise its Crown Share right under the 1982 Agreement.
This transfer payment program does not have any repayable contributions.

Results achieved

N/A

Comments on variances

Planned spending was based on production forecasts that did not incorporate unanticipated project shutdowns and depressed natural gas prices. This resulted in lower production which in turn resulted in lower crown share payments.

Audits completed or planned

N/A

Evaluations completed or planned

N/A

Engagement of applicants and recipients

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