Significant Amendments Announced To The Accord Acts – Final Update

Recent Developments

Our July 2023 article Significant Amendments Announced to the Accord Acts outlined proposed amendments to the Atlantic Accord legislation. Our July 2024 article Significant Amendments Announced to the Accord Acts-Update detailed the arduous legislative journey of the proposed amendments. As a final update, in 2025 the proposed amendments have passed both federal and provincial legislatures and came into force.

Federally, Bill C-49 An Act to amend the Canada-Newfoundland and Labrador Atlantic Accord Implementation Act and the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act and to make consequential amendments to other Acts received royal assent on October 3, 2024.

Newfoundland and Labrador's mirror amendments, Bill-90 An Act to Amend the Canada-Newfoundland and Labrador Atlantic Accord Implementation Newfoundland and Labrador Act received royal assent on March 18, 2025. Nova Scotia had already passed its reciprocal legislation, with An Act Respecting Advancing Nova Scotia Opportunities receiving Royal Assent on September 20, 2024; our Nova Scotia colleagues covered those amendments (which included non-Accord provisions as well) in our September 2024 article Nova Scotia Seeks to Stimulate Offshore Wind and Tidal Energy.

Expanded Mandates and Regulatory Authority

The amending legislation introduces substantive nominal reforms to both the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act and the Canada–Nova Scotia Offshore Petroleum Resources Accord Implementation Act, to reflect their broadened regulatory scope over offshore renewable energy.

The "short" titles of both statutes have been amended to:

• the Canada-Newfoundland and Labrador Atlantic Accord Implementation and Offshore Renewable Energy Management Act (the "NL Act"); and
• the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation and Offshore Renewable Energy Management Act (the "NS Act").

The regulatory bodies established under the joint management regimes have also been rebranded to align with their expanded authority over offshore renewable energy activities:

• the Canada-Newfoundland and Labrador Offshore Petroleum Board (CNLOPB) has been renamed to the Canada-Newfoundland and Labrador Offshore Energy Regulator (CNLOER); and
• the Canada-Nova Scotia Offshore Petroleum Board (CNSOPB) has been renamed to the Canada-Nova Scotia Offshore Energy Regulator (CNSOER).

The CNLOER and CNSOER (collectively "the Regulators") maintain their power to make binding offshore petroleum-related decisions, however; the Regulators may only make written recommendations in respect of offshore renewable energy related decisions to the appropriate Federal and Provincial Ministers.

The Submerged Land Licence (SLL)

Bill C-49 introduces a novel land tenure regime tailored specifically to offshore renewable energy development: the Submerged Land Licence (SLL). This new licensing instrument governs the exclusive right to occupy, access, and use a designated offshore area for the purpose of undertaking renewable energy activities, including the installation and operation of seabed-connected infrastructure such as wind turbines or tidal energy systems.

An SLL is required for all offshore renewable energy projects that involve physical interaction with the seabed. The only exception applies to research or assessment activities that do not necessitate the placement of any facility, equipment, or structure on or affixed to the seabed. This carve-out preserves flexibility for early-stage exploration while maintaining the integrity of the seabed tenure system.

Issuance Process and Eligibility

The process for issuing SLLs closely mirrors the well-established framework used for petroleum exploration licensing. Under section 90 of the NL Act and section 93 of the NS Act, SLLs may only be awarded following a public call for bids. Such a call may be initiated by approved recommendation by the Regulator or by the direction of the responsible Federal or Provincial Minister and must designate the specified Crown reserve area while setting out the terms and conditions under which licences will be granted.

The legislative scheme allows for specificity and flexibility in licensing. Section 88(3) of the NL Act and section 91(3) of the NS Act provide that a licence may be confined to a specified category of renewable energy resource or limited to the use of certain technologies. This enables regulators to tailor SLLs to reflect environmental sensitivities, policy objectives, or the evolving technical landscape of the offshore renewable sector.

With respect to eligibility, both Acts stipulate that only corporations incorporated under the laws of Canada may hold an SLL or any share therein. This requirement, found in section 96.5 of the NL Act and section 98.6 of the NS Act, aligns with existing restrictions under the petroleum licensing regime and ensures Canadian jurisdictional control and regulatory accountability.

Revenues and Royalties Regime

The financial dimensions of the renewable energy regime are clearly delineated in section 97.1 of the NL Act and section 99.1 of the NS Act. These provisions establish SLL holders are liable and shall pay to the Crown any revenues, interest and penalties that would be payable under any Act of the province and any regulations made under the Act as if the project were carried out within the respective Province. As such they mirror the structure of the royalties on petroleum resources.

Importantly, section 97.1(3) of the NL Act and section 99.1(3) of the NS Act empower the respective Provincial Minister to direct the Regulator to suspend the issuance of new SLLs, halt activity under existing licences and/or engage in the cancellation of rights provisions of both Acts where financial obligations remain outstanding. This mechanism gives provincial governments a clear enforcement tool to support compliance with financial commitments and to ensure ongoing integrity in the fiscal administration of the offshore regime respecting renewable energy – these new provisions only apply to renewable projects and not petroleum royalties under section 97.

Work and Benefit Commitments

SLLs may also include prescribed commitments relating to employment, procurement, and broader socio-economic impacts. Section 96.6 of the NL Act and section 98.7 of the NS Act allow regulations or licence terms to require the use of Canadian goods, services and labour, to promote principles of equity, diversity and inclusion in workforce development, and to implement mitigation strategies in relation to potential interactions with fisheries. These provisions reflect a modernized approach to benefit planning that acknowledges the regional economic context of both provinces.

Amendments to Offshore Petroleum Regime

As noted in our previous Articles, Bill C-49 also made a number of changes to the petroleum – related provisions of the Accord Acts. These represent the most significant such amendments since the Accord Acts were originally passed in 1987.

Significant Discovery Licences (SDL)

A notable amendment to the offshore petroleum regime introduced by Bill C-49 is the imposition of a fixed term on future Significant Discovery Licences (SDLs). Historically, SDLs were of indefinite duration, allowing holders to retain rights over petroleum discoveries without a defined expiration date. This has long raised policy concerns about the warehousing of offshore resources and the underutilization of granted rights.

To address this, both the NL Act and the NS Act now limit the duration of SDLs to a maximum of 25 years from the date of issuance. This change is codified in section 75(3) of the NL Act and section 78(3) of the NS Act.

Under the new regime, once a significant discovery is declared and an SDL is granted, the licensee must either advance the discovery toward development or risk the automatic expiry of the licence. This policy shift is intended to encourage timely commercialization of hydrocarbon resources.

The 25-year limitation applies only to SDLs issued after the coming into force of the amending legislation. Pre-existing SDLs retain their indefinite status, preserving acquired rights under the prior framework.

Conservation Areas

Bill C-49 introduces a significant environmental protection mechanism into the offshore regulatory regimes by empowering governments to prohibit petroleum or renewable energy activities in marine areas designated for environmental or wildlife conservation purposes.

Under the amended legislation, a Government (with the approval of the other level of government) may issue a written notice prohibiting the commencement or continuation of work or activity in an offshore area, where that area has been identified through a formal process as requiring protection for reasons related to the environment, wildlife or Indigenous cultural significance. These prohibitions are provided for in section 56.1 of the Newfoundland and Labrador Act and section 59.1 of the Nova Scotia Act. The prohibition authority is not restricted to newly issued licences. It applies equally to existing petroleum interests and renewable energy licences, including SDLs, Production Licences, and SLLs.

Where a licence or interest is suspended or cancelled pursuant to such a conservation order, the relevant Federal or Provincial Minister must enter into negotiations with the interest holder to determine compensation for the surrender of rights or loss of economic opportunity. This obligation is set out in sections 56.2 and 56.4 of the NL Act and sections 59.2 and 59.4 of the NS Act. If agreement cannot be reached, the matter may be referred to arbitration.

Access to Offshore Infrastructure

The amending legislation establishes a framework to facilitate regulated access to offshore infrastructure, such as pipelines, subsea facilities and transmission systems, by third parties. The authority to regulate existing infrastructure access is conferred upon the Governor in Council through enabling provisions at subsection 149(c)(ii) of the NL Act and section 154(c)(ii) of the NS Act. These sections authorize the Governor in Council to make regulations respecting the terms and conditions under which operators of offshore infrastructure must provide access to third parties for the purposes of storing, processing and transporting petroleum and the amounts that may be charged for access.

Transboundary Hydrocarbon Management

Also established is an entirely new statutory regime for the management of transboundary hydrocarbon resources, codifying mechanisms to govern petroleum fields or pools that straddle domestic or international maritime boundaries. These provisions enable the implementation of bilateral treaties, such as the Canada–France Agreement on Hydrocarbon Fields in the Area of Saint Pierre and Miquelon and support unified resource management in shared offshore basins.

This transboundary framework is set out in sections 183.01 through 183.16 of the NL Act and sections 188.01 through 188.16 of the NS Act. It provides that the Governor in Council may, by regulation, designate a transboundary pool or field, define the geographic area and establish terms and conditions for joint development, apportionment and coordinated operations with the other jurisdiction. The regime applies to fields that cross not only international boundaries, but also interprovincial boundaries within Canada, should such a circumstance arise.

The legislation authorizes the negotiation and implementation of unitization agreements, which allow for the equitable sharing of production volumes, costs and revenues from a transboundary pool. These agreements may be made binding on licensees through regulatory orders. In addition, the federal government may enter into agreements with foreign states or other Canadian provinces to jointly administer such resources, provided that the terms are consistent with Canadian law and approved by the Governor in Council.

Additional Changes

• Another consequential amendment is the elimination of references to the now-repealed Canadian Environmental Assessment Act, 2012 and the integration of Canada's offshore energy regimes with the Impact Assessment Act. These changes are intended to clarify the roles of Federal and Provincial authorities in environmental assessment processes and to ensure consistency with the broader federal environmental review framework. Sections 138.011 to 138.016 of the NL Act and sections 142.012 to 142.017 outline the Impact Assessment process for offshore energy projects.
• Section 17.1 of the NL Act and section 18.1 of the NS Act pertain to the role of the Regulators in the consultation process with the Indigenous peoples of Canada. These sections outline that the Regulators may be relied on to consult Indigenous peoples in regard to potential adverse impacts of offshore work and/or activities on existing treaty rights affirmed by section 35 of the Constitution Act, 1982. The Regulators are empowered under this section to accommodate adverse impacts on those rights, although the methodology for doing so remains unspecified.

Summary

While the amendments extending the authority of the former petroleum regulators over offshore renewable activities received the most attention, these amendments also bring with them a number of new elements for petroleum development, and changes in the interaction between the authority of the regulators and the federal government, particularly on environmental issues. These changes have not been uncontroversial, as they are the latest in a number of changes and adjustments to the concept of joint administration originally set out in the Atlantic Accords.

With significant assistance from Thomas Hickman, an articled clerk in our St. John's Office.

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