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ARTICLE · 20 NOVEMBER 2017

Offshore Oil Royalty Regulations Effective November 1, 2017

Osler, Hoskin & Harcourt LLP
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In early November 2015, the Progressive Conservative-led Government of Newfoundland and Labrador introduced a new generic offshore royalty regime that was to apply to all projects going forward.

CanadaEnergy and Natural Resources
Simon Baines
Simon Baines
Tommy Gelbman
Tommy Gelbman
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In this Update

  • On November 1, 2017, the Province of Newfoundland and Labrador promulgated the Offshore Oil Royalty Regulations
  • The 2017 Regulations will replace the Royalty Regulations, 2003 for any future offshore leases
  • Project proponents will want to carefully consider several changes in the 2017 Regulations:
    • the elimination of the incremental royalty and its replacement with a net royalty
    • the removal of all arbitration provisions; and
    • an update to the transportation provisions to make them more consistent with corresponding provisions applicable to current offshore development projects

In early November 2015, the Progressive Conservative-led Government of Newfoundland and Labrador introduced a new generic offshore royalty regime that was to apply to all projects going forward. We released an Osler Update at that time discussing the potential impact of this new regime.

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