The Extractive Sector Transparency Measures Act (ESTMA)
came into force on June 1, 2015, fulfilling the commitment Canada
made at the 2013 G8 Leaders' summit to apply international
standards of transparency to the extractive sector. Broadly
aligned with similar mandatory reporting standards in the U.K. and
the European Union, ESTMA enhances the accountability of payments
made by the mining, oil and gas industries to governments
worldwide. A copy of ESTMA can be found here.
ESTMA applies to entities that are directly or indirectly
engaged in the commercial development of oil, gas or minerals in
Canada or elsewhere. Entities are required to report under
ESTMA (Reporting Entities) if they either: (i) are listed on a
stock exchange in Canada; or (ii) are subject to Canadian law by
virtue of being based, doing business or holding assets in Canada
and meet two of the following criteria in one of their two
most recent financial years: (A) at least $20 million in
assets; (B) at least $40 million in revenue; or
(C) employ an average of 250 employees.
Reporting Entities must report annually on payments made to any
level of government in Canada or abroad relating to the commercial
development of oil, gas or minerals. Only payments to
government payees aggregating in excess of $100,000 in specified
categories (taxes, royalties, fees, production entitlements,
bonuses, certain types of dividends, infrastructure improvement
payments) must be reported. Reports must be made accessible
to the public on corporate websites.
Reporting Entities are required to submit reports for each of
their financial years beginning after June 1, 2015. For
example, a Reporting Entity whose financial year begins on January
1 must report on payments starting from January 1, 2016.
Reports must be filed within 150 days of the end of a
reporting entity's financial year. There is a two-year deferral
of a Reporting Entity's obligation to report payments made to
Aboriginal governments in Canada.
Natural Resources Canada is developing guidelines to assist
Reporting Entities in reporting under ESTMA, which are expected to
be published shortly. In the process of developing such
guidelines, Natural Resources Canada has consulted with
approximately 70 extractive companies and their associations, 80
Aboriginal organizations and 30 civil society organizations.
Canada is a constitutional monarchy, a parliamentary democracy and a federation comprised of ten provinces and three territories. Canada's judiciary is independent of the legislative and executive branches of Government.
In Bank of Montreal v Bumper Development Corporation Ltd, 2016 ABQB 363, the Alberta Court of Queen's Bench enforced the "immediate replacement" provision in the Canadian Association of Petroleum Landmen 2007 Operating Procedure...
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