Accord between the Government of Canada, the Inuvialuit Regional Corporation, the Government of the Northwest Territories, and the Government of Yukon for the shared management and regulation of petroleum resources in the Western Arctic - Tariuq (offshore)

Table of contents

1. Preamble

The Government of Canada, the Government of Yukon, the Inuvialuit Regional Corporation, and the Government of the Northwest Territories (the "Parties") believe that Inuvialuit and other Northerners should have a greater say in how their economy and resources are collaboratively managed within their respective authorities.

The Parties have reached this Accord concerning the shared management and the strong, independent regulation of Petroleum Resources in the Western Arctic – Tariuq (Offshore) Accord Area, and the sharing of revenues flowing from exploration and development of Petroleum Resources. The Accord establishes a collaborative system of managing and regulating exploration and development of Petroleum Resources.

The Parties intend that the Accord will contribute in a meaningful way to the ongoing process of reconciliation between Indigenous Peoples and the Crown. This includes equal participation of Inuvialuit in decision-making and governance relating to the management and regulation of Petroleum Resources and an equitable sharing of revenues and benefits as set out in this Accord.

2. Objectives of the Accord

  1. To ensure that the management and regulation of Petroleum Resources within the Accord Area is in the interest of and for the benefit of Canada as a whole, with particular regard for the Indigenous rights of Inuvialuit and the interests of all residents of the Northwest Territories and Yukon.
  2. To advance the political development of the Northwest Territories, Yukon, and the Inuvialuit consistent with Canadian federalism.
  3. To provide for the participation of the Government of Canada, the Inuvialuit Regional Corporation, the Government of the Northwest Territories, and the Government of Yukon in the management and regulation of Petroleum Resources in the Accord Area in a manner that promotes cooperation and coordination among the Parties.
  4. To provide for management and regulation of Petroleum Resources in the Accord Area that is stable, efficient, effective and fair.
  5. To ensure that the exploration and development of Petroleum Resources in the Accord Area are carried out in a manner that protects the environment, including fish and wildlife.
  6. To recognize that Inuvialuit, and all residents of the Northwest Territories and Yukon, are the principal beneficiaries of the economic activity related to the exploration and development of Petroleum Resources within the Accord Area.
  7. To ensure that the Government of Yukon, the Inuvialuit Regional Corporation, and the Government of the Northwest Territories are the beneficiaries of Resource Revenues from the Accord Area.
  8. To maximize the socio-economic benefits for and minimize adverse impacts on Inuvialuit and all residents in and near the Accord Area, on a priority basis, and in other communities in the Northwest Territories and Yukon.
  9. To ensure the protection of health and personal safety for those engaged in the exploration and development of Petroleum Resources in the Accord Area.
  10. To recognize the unique circumstances of Petroleum Resources exploration and development in the Western Arctic – Tariuq (Offshore), and the need for investments in capacity building, infrastructure, and safety preparedness in order to maximize benefits from future Petroleum Resources exploration and development in the Accord Area.

3. Definitions

"Accord" means this Agreement between the Parties on the management and regulation of Petroleum Resources in the Accord Area.

"Accord Area" means the Western Arctic – Tariuq (Offshore) geographic area described in Annex 2 of this Accord.

"Adjoining Area" has the same meaning as in the Yukon Act (Canada), S.C. 2002, c.7.

"Administrative Boundary" is the offshore dividing line between the zones over which the GNWT and the YG have a role in the management and regulation of Petroleum Resources, as described in Annex 3.

"Benefits Plan" has the same meaning as in subsection 5.2(1) of the Canada Oil and Gas Operations Act (COGOA), R.S.C. 1985, c. O-7.

"Canada - Inuvialuit Zone" means that part of the Accord Area located within the Inuvialuit Settlement Region.

"Canada - NWT Zone" means that part of the Accord Area located eastward of the Administrative Boundary described in Annex 3.

"Canada - Yukon Zone" means that part of the Accord Area westward of the Administrative Boundary described in Annex 3.

"Canada Energy Regulator" (CER) means the Regulator established under the Canadian Energy Regulator Act, S.C. 2019, c. 28, s. 10.

"Designated Authorities" means the authorities as set out in Article 7.3.4.1.

"Executive Committee" means the body as set out in Article 7.3.1.1, consisting of the Federal Minister, the GNWT Minister, the YG Minister, and the Inuvialuit Principal Representative.

"Federal Minister" means the federal minister responsible for managing and regulating Petroleum Resources in the Accord Area.

"Federal Petroleum Legislation" means the Canada Petroleum Resources Act (CPRA), R.S.C. 1985, c.36 (2nd Supp.) and the Canada Oil and Gas Operations Act (COGOA), including regulations under that Act and the Canada Oil and Gas Land Regulations, C.R.C., c.1518, as each is applicable to the Accord Area immediately prior to the Implementation Date.

"Implementation Date" means the date upon which the federal Implementing Legislation that establishes the Accord in legislation comes into effect.

"Implementing Legislation" means the legislation necessary to:

  1. amend or replace Federal Petroleum Legislation and its application in the Accord Area;
  2. implement the Accord; and
  3. make consequential amendments to other federal legislation.

"Independent Joint Board" means the body as set out in Article 7(c) and Article 7.5.

"Independent Joint Board Phase" means the period following the Transitional Phase as set out in Article 7(c) and Article 7.5.

"Inuvialuit Final Agreement" (IFA) means the land claims agreement between Canada and the Inuvialuit, signed on June 5, 1984, and given effect by the Western Arctic (Inuvialuit) Claims Settlement Act (Canada), as that agreement is amended from time to time in accordance with its terms.

"Inuvialuit Regional Corporation" (IRC) means the body established pursuant to section 6(1)(a) of the IFA.

"Inuvialuit Settlement Region" (ISR) has the same meaning as in the IFA, s.2.

"Inuvialuit Principal Representative" means the person designated by the IRC for the purposes of the Accord.

"Joint Decision" means a decision listed in Annex 4.

"Joint Office" means the body as set out in Article 7.3.3.1.

"Management Committee" means the body as set out in Article 7.3.2.1, consisting of one senior official appointed by each of the Federal Minister, the GNWT Minister, the YG Minister, and Inuvialuit Principal Representative.

"Northwest Territories" has the same meaning as in the Northwest Territories Act (Canada), S.C. 2014, c.2, s.2.

"Nunavut" has the same meaning as in the Nunavut Act (Canada), S.C. 1993, c. 28.

"GNWT Minister" means a minister of the Government of the Northwest Territories designated by instrument of the Executive Council of the Northwest Territories for the purposes of the Accord.

"Onshore" has the same meaning as in the Northwest Territories Act (Canada), S.C. 2014, c.2, s.2.

"Offshore Committee" means the body as set out in Article 7.2.1 consisting of one official to be appointed by each Party.

"Parties" means the Government of Canada (Canada), the Inuvialuit Regional Corporation (IRC), the Government of the Northwest Territories (GNWT), and the Government of Yukon (YG).

"Party" means any one of the Parties.

"Petroleum Resources" has the same meaning as "petroleum" in the Canada Petroleum Resources Act.

"Pre-Implementation Phase" means the period between the Signing Date and the Implementation Date as set out in Article 7(a) and Article 7.2.

"Resource Revenues" means revenues derived from the exploration and development of Petroleum Resources, including royalties, bonuses, forfeitures, and licence fees as set out in Article 12.

"Signing Date" means the date the Accord is signed by all of the Parties, and if signed in counterparts, the date of the last signature.

"Transitional Phase" means the period between the Implementation Date and the date the Independent Joint Board is established as set out in Article 7(b) and Article 7.3.

"Yukon" has the same meaning as in the Yukon Act (Canada), S.C. 2002, c. 7.

"YG Minister" means a minister of the Government of Yukon designated by instrument of the Executive Council of Yukon for the purposes of the Accord.

4. General Provisions

4.1 In the event of any inconsistency or conflict between the IFA and the Accord or the Implementing Legislation, the IFA will prevail to the extent of the inconsistency or conflict.

4.2 The Accord will be construed as upholding the rights of Indigenous peoples recognized and affirmed by section 35 of the Constitution Act, 1982, including the duty to consult and accommodate, and not as abrogating or derogating from these rights.

4.3 Nothing in the Accord, the Implementing Legislation, or the practices that flow from them modifies the powers, rights, privileges, authorities or responsibilities that are conferred on any of the Parties by the Constitution Act, 1982, the IFA, the Northwest Territories Act (Canada) or the Yukon Act (Canada).

4.4 The Implementing Legislation will amend or replace Federal Petroleum Legislation in the Accord Area. All other federal and territorial legislative authorities applicable in the Accord Area will continue to apply.

4.5 The Implementing Legislation will provide that no representative of a Party or employee of a Party will be held personally liable for anything done, or omitted to be done, in good faith in the exercise of their responsibilities under the Accord and Implementing Legislation.

4.6 Existing interests created under Federal Petroleum Legislation in the Accord Area and in effect immediately prior to the Implementation Date will continue and be administered in accordance with the Implementing Legislation.

4.7 The rights and duties accrued or accruing under, and the matters governed by Federal Petroleum Legislation in the Accord Area prior to the Implementation Date, continue in effect as rights and duties under and subject to the Implementing Legislation.

4.8 Canada will Consult the other Parties in the performance of any of Canada’s existing international commitments or the assumption of new ones that may affect matters set out in the Accord.

4.9 The Federal Minister, in consultation with the Minister of Foreign Affairs, maintains the authority to make decisions and take actions necessary to allow Canada to comply with its international commitments and manage its international relations, after Consultation with the other Parties concerning matters that may affect the Accord and its implementation.

4.10 Nothing in this Accord will derogate from the authority of the Government of Canada to implement bilateral or multilateral international treaties, conventions or agreements through legislation, and such legislation will have the ability to prevail to the extent of the any inconsistency with the Accord.

4.11 Nothing in the Accord will be construed so as to alter, or require the alteration of, the definition of the "Northwest Territories" as established in the Northwest Territories Act (Canada).

4.12 Nothing in the Accord will be construed so as to alter, or require the alteration of, the definition of the "Adjoining Area" as established in the Yukon Act (Canada).

5. Consultation

5.1 For matters under the Accord and Implementing Legislation, Canada will discharge its responsibility to Consult with each of the Parties as appropriate.

5.2 Where "Consult" or "Consultation" appears in this Accord, it will mean, as a minimum standard:

  1. the provision, to the Party to be consulted, of notice of a matter to be decided in sufficient form and detail to allow that Party to prepare its views on the matter;
  2. the provision of a reasonable period of time in which the Party to be consulted may prepare its views on the matter, and provision of an opportunity to present such views to the Party obliged to consult; and
  3. full and fair consideration, by the Party obliged to Consult, of any views presented.

5.3 There will be no presumption that the Consultation with IRC under the Accord and the Implementing Legislation satisfies any duty of the Crown to consult Inuvialuit.

6. Application of the Accord

6.1 The Accord applies to the Accord Area set out in Annex 2.

7. Management and Regulation

The Accord is based on a shared management and regulatory regime that is intended to promote cooperation, coordination and consensus-building among the Parties in decision-making.

Shared management and regulation will be implemented in three successive phases:

  1. the Pre-Implementation Phase, which is the period between the Signing Date and the Implementation Date;
  2. the Transitional Phase, which is the period from the Implementation Date until the establishment of an Independent Joint Board; and
  3. the Independent Joint Board Phase.

7.1 Decision-Making in the Accord Area

7.1.1 The Implementing Legislation will establish the Canada - NWT Zone, Canada-Yukon Zone and Canada - Inuvialuit Zone to allow for the management and regulation of Petroleum Resources, on a geographic basis, as more particularly illustrated in Annex 2. The Implementing Legislation will establish the Administrative Boundary between the Canada - NWT Zone and the Canada - Yukon Zone, as described in Annex 3.

7.1.2 The Parties involved in a decision under the Accord will be determined on a geographic basis as set out below.

  1. If the subject matter of a Joint Decision is in the Canada - NWT Zone and in the Canada - Inuvialuit Zone, the Parties involved in making the decision are Canada, IRC and the GNWT;
  2. If the subject matter of a Joint Decision is in the Canada - NWT Zone but not the Canada - Inuvialuit Zone, the Parties involved in making the decision are Canada and the GNWT;
  3. If the subject matter of a Joint Decision is in the Canada - Yukon Zone and the Canada - Inuvialuit Zone, the Parties involved in making the decision are Canada, IRC and the YG;
  4. If the subject matter of a Joint Decision is in the Canada - Yukon Zone and not the Canada - Inuvialuit Zone, the Parties involved in making the decision are Canada and the YG; and
  5. If the Joint Decision applies to the Accord Area as a whole, the Parties involved in making the decision are Canada, the GNWT, the YG and IRC.

7.2 Pre-Implementation Phase

7.2.1 On the Signing Date, an Offshore Committee, comprised of one senior representative appointed by each Party, is established and it will continue to perform its functions until the latter of the Implementation Date and the establishment of the Executive Committee.

7.2.2 The purpose of the Offshore Committee is to involve the Parties in decision-making related to management and regulation of Petroleum Resources in the Accord Area during the Pre-Implementation Phase, consistent with the objectives of the Accord.

7.2.3 During the Pre-Implementation Phase, Canada will provide a written invitation to the other members of the Offshore Committee to review and provide their written recommendations to the Federal Minister on the following matters:

  1. decisions as set out in Annex 4;
  2. proposed Benefits Plans, or proposed waivers of the requirement for a Benefits Plan, in the Accord Area;
  3. policy matters related to the management and regulation of Petroleum Resources in the Accord Area, including the issuance of guidelines; and
  4. proposed changes to Federal Petroleum Legislation which may have an impact on the management and regulation of Petroleum Resources in the Accord Area.

7.2.4 Unless otherwise agreed, Canada will allow the Offshore Committee 30 days following the receipt of the written invitation in Article 7.2.3 for the provision of written recommendations to the Federal Minister.

7.2.5 In the event the members of the Offshore Committee cannot reach agreement on one or more written recommendations, any member may make a separate written recommendation to the Federal Minister within the 30-day period or other period as agreed under Article 7.2.4.

7.2.6 Following the 30-day period, or other period agreed under Article 7.2.4, the Federal Minister will consider all written recommendations received before making a decision on a matter.

7.2.7 In addition to written invitations referred to in Article 7.2.3, during the Pre-Implementation Phase, Canada will provide the Offshore Committee with:

  1. notification of declarations of commercial or significant discoveries, under the CPRA, in the Accord Area received from the CER;
  2. notification of all applications under Federal Petroleum Legislation in the Accord Area requiring a decision of the Federal Minister; and
  3. an annual status report on outstanding work commitments and work-bid deposit forfeitures applicable to the Accord Area.

7.3 Transitional Phase

The Implementing Legislation will establish three bodies to oversee the management and regulation of Petroleum Resources in the Accord Area during the Transitional Phase:

  1. the Executive Committee,
  2. the Management Committee, and
  3. the Joint Office.

7.3.1 Executive Committee

7.3.1.1 The Executive Committee, consisting of the Federal Minister, the YG Minister, the Inuvialuit Principal Representative, and the GNWT Minister will be responsible for overseeing the management and regulation of exploration and development of Petroleum Resources during the Transitional Phase.

7.3.1.2 The Executive Committee will establish all processes of the Executive Committee, the Management Committee and the Joint Office, make Joint Decisions, and oversee the implementation of the Accord.

7.3.1.3 The Implementing Legislation will constitute the Executive Committee as having, for the purposes of its functions, the capacity, rights, powers and privileges of a natural person.

7.3.2 Management Committee

7.3.2.1 The Management Committee, consisting of one senior official appointed by each of the Parties, will be responsible for directing the operations of the Joint Office, supporting the Executive Committee, and making Joint Decisions which have been delegated to it by the Executive Committee.

7.3.3 Joint Office

7.3.3.1 The Joint Office, consisting of staff as may be appointed by each Party, will provide operational and administrative support to the Executive Committee and the Management Committee as required in relation to Article 7.1.2 and Articles 7.3.5.1 through 7.3.7.3, and carry out the administrative decisions and responsibilities set out in Annex 5.

7.3.4 Designated Authorities

7.3.4.1 A Party involved in a Joint Decision being made by the Executive Committee or by the Management Committee in accordance with Article 7.3.5.1 through Article 7.3.7.3 is called a Designated Authority for that decision.

7. 3.4.2 The representatives of the Designated Authorities on the Executive Committee are the Federal Minister, the GNWT Minister, the YG Minister, and the Inuvialuit Principal Representative.

7.3.4.3 The representatives of the Designated Authorities on the Management Committee are the representative appointed by the Federal Minister, the representative appointed by the Inuvialuit Principal Representative, the representative appointed by the GNWT Minister, and the representative appointed by the YG Minister.

7.3.4.4 The Joint Office will provide all Parties with notice of pending Joint Decisions of Designated Authorities, or decisions of the Federal Minister alone, under the Accord.

7.3.4.5 A copy of all final decisions will be made available to the Parties by the Joint Office.

7.3.5 Joint Decisions of the Executive Committee

7.3.5.1 Joint Decisions within the Executive Committee will be made on the basis of unanimity of the Designated Authorities identified for the purposes of each decision, hereafter described as Executive Committee Designated Authorities. These Joint Decisions will be made following the receipt of a written recommendation from the Management Committee and any concerns or proposed amendments of Designated Authorities on the Management Committee as described in Article 7.3.7.1 through Article 7.3.7.3. All decisions of the Executive Committee Designated Authorities will be effective as of the date they achieve unanimous agreement.

7.3.5.2 If, after 30 days following the receipt of a written recommendation from the Management Committee Designated Authorities, no Executive Committee Designated Authority expresses written disagreement or proposes amendments thereto, the recommendation becomes effective as a decision of the Executive Committee Designated Authorities.

7.3.5.3 If any Executive Committee Designated Authority expresses written disagreement with a Management Committee recommendation or proposes amendments thereto, the Executive Committee Designated Authorities will have an additional period of 60 days to reach consensus on that recommendation and any proposed amendments. If the Executive Committee Designated Authorities cannot reach unanimous agreement before the end of the additional 60-day period, the recommendation is deemed rejected.

7.3.6 Delegation to the Management Committee

7.3.6.1 The Executive Committee may delegate, in writing, any of its powers, duties, or functions under the Implementing Legislation to the Management Committee, and those powers, duties and functions are to be exercised or performed in accordance with the terms of the delegation. Any delegation will be withdrawn at the request of any member of the Executive Committee, following Consultation between the members of the Executive Committee. The withdrawal of a delegation will be prospective and will not affect any matters that are currently under consideration by the Management Committee.

7.3.7 Recommendations and Joint Decisions of the Management Committee

7.3.7.1 Recommendations to the Executive Committee and Joint Decisions within the Management Committee will be made on the basis of unanimity of the Designated Authorities identified for the purposes of each decision, hereafter described as Management Committee Designated Authorities.

7.3.7.2 Unless a timeline is otherwise established by the Executive Committee, if any of the Management Committee Designated Authorities express written disagreement with a proposed decision, the Management Committee Designated Authorities will have a period of 60 days during which to develop consensus on the decision. If unanimous agreement is achieved during the 60-day period, the decision will be effective as of the date of the unanimous agreement. If by the end of that 60-day period the disagreement is not resolved, it is deemed rejected.

7.3.7.3 If the Executive Committee retains decision-making authority over a matter, the Management Committee Designated Authorities will develop and present a written recommendation on that matter to the Executive Committee, along with any supporting materials, for consideration. If any of the Management Committee Designated Authorities disagree with a recommendation, they may submit written concerns or proposed amendments to the Executive Committee Designated Authorities.

7.4 Regulation During the Transitional Phase

7.4.1 The CER is the regulator of Petroleum Resource exploration and development in the Accord Area during the Transitional Phase and will carry out the powers, duties and functions set out in the Implementing Legislation.

7.4.2 Nothing in the Accord will interfere with or fetter the independence or jurisdiction of the CER.

7.4.3 The Implementing Legislation will require that during the Transitional Phase, Canada will obtain the consent of the other Parties on proposed amendments to the Canadian Energy Regulator Act, and any regulations under that Act, relating to the CER’s functions and duties in the Accord Area.

7.4.4 The Implementing Legislation will require that during the Transitional Phase, Canada may only issue binding policy directions or other directives to the CER with respect to the CER’s powers, duties and functions under the Accord and Implementing Legislation with the participation and consent of the Parties.

7.4.5 As soon as possible after the Signing Date, the Parties will negotiate an administrative agreement with the CER for the Accord Area, with a view to reaching an agreement or agreements on the non-legislated means by which the CER will facilitate capacity building and advance the objectives of the Accord during the Transitional Phase. The subject matters of the agreement may include, but are not limited to:

  1. training opportunities;
  2. staff interchanges;
  3. delegation arrangements;
  4. joint exercises among northern regulators and resource managers;
  5. northern representation on hearing panels;
  6. the CER maintaining and staffing an office located in the Western Arctic – Tariuq (Offshore); and
  7. other collaborative arrangements as may be beneficial to the implementation of the Accord.

7.4.6 The Implementing Legislation will require that during the Transitional Phase, the CER will prepare an annual report and submit it to the Parties. The report will contain a description of the CER’s activities under the Accord and Implementing Legislation and related agreements during the previous year.

7.5 Independent Joint Board Phase

7.5.1 Unless otherwise agreed to by the Parties, no later than two years after the beginning of Petroleum Resources production under a development plan in the Accord Area, Canada will introduce into Parliament legislation creating an Independent Joint Board, appointed jointly by the Parties, to carry out the management and administrative functions, duties and responsibilities of overseeing rights issuance and disposition. Canada will establish an office in the Western Arctic – Tariuq, the purpose of which will be to support the Independent Joint Board.

7.5.2 The Parties also agree to review the model for the regulation of Petroleum Resources exploration and development in the Accord Area, when the first Petroleum Resources production begins.

7.5.3 The Implementing Legislation will provide that an Independent Joint Board may share staff and facilities with other governments and government agencies of the other Parties.

8. Implementation

8.1 As soon as possible after the Signing Date, Canada will introduce into Parliament, and support as a government measure, the Implementing Legislation necessary to implement the Accord.

8.2 The Implementing Legislation will define the respective responsibilities of the Parties, and confirm the objectives identified in the Accord. To the extent that the provisions of Federal Petroleum Legislation are consistent with the Accord, they will be restated in the Implementing Legislation.

8.3 Canada will not introduce or amend the Implementing Legislation or any regulations under the Implementing Legislation without the consent of the other Parties. The Implementing Legislation will contain a provision confirming that the other Parties must consent to any amendments to the Implementing Legislation and regulations made under the Implementing Legislation.

8.4 Notwithstanding Article 8.3, Canada may introduce or amend regulations that have application to a specific zone or zones in the Accord Area with the consent of the Designated Authorities, consistent with 7.3.2 and 7.3.7.

8.5 The Parties may participate in national initiatives relating to Petroleum Resources management and regulation, including but not limited to:

  1. the Oil and Gas Administration Advisory Council established under section 5.4 (1) of the COGOA
  2. the Offshore Oil and Gas Training Standards Advisory Board established under section 5.5(1) of the COGOA, and
  3. such other related or successor initiatives as may exist from time to time.

8.6 The Implementing Legislation will mirror the provisions of the COGOA sections 48.01-48.27 entitled "Straddling Resources – Inuvialuit Settlement Region", with such amendments as may be necessary to give effect to the Accord.

8.7 The legislative provisions referred to in Article 8.6 will govern the exploration and development of Petroleum Resources that straddle the boundaries between any two or more of the Canada-Inuvialuit Zone, the Canada-NWT Zone, the Canada-Yukon Zone and Nunavut.

8.8 The legislative provisions in respect of compulsory unitization referred to in Article 8.6 will not apply to the Adjoining Area or Yukon, unless otherwise decided by the YG.

9. Protection of Marine Ecosystems and the Environment

9.1 Exploration and development of Petroleum Resources subject to the Accord will be subject to environmental assessment obligations in accordance with the IFA and any applicable federal and territorial legislation.

9.2 The proposed establishment of any federal marine protection or conservation areas in the Accord Area will be subject to any applicable review processes, and Consultation and collaboration obligations under the IFA and any applicable federal legislation.

9.3 Notwithstanding Article 7.3.5.1, the Federal Minister, in Consultation with the representatives of the other Designated Authorities, is responsible for:

  1. entering into negotiations with an interest owner for the surrender of an interest required for the establishment of a federal marine protection or conservation area, or
  2. the cancellation of an interest for such purposes, and
  3. the determination and payment of any related compensation as appropriate.

9.4 The Implementing Legislation will provide for a Petroleum Resources pollution regime, liability obligations, and compensation terms for any oil spill, damages or debris, and continue to provide for accountability in accordance with the polluter-pays principle, in a manner consistent with the requirements of the IFA and Federal Petroleum Legislation.

10. Worker Safety and Labour Relations

10.1 The CER will continue to apply Part II of the Canada Labour Code R.S.C., 1985, c. L-2. and related regulations regarding occupational health and safety for the exploration and development of Petroleum Resources in the Accord Area during the Transitional Phase.

11. Dispute Resolution

11.1 In the event of a dispute between any of the Parties with respect to the interpretation, application, or implementation of the Accord, those Parties agree to explore timely resolution of the dispute through negotiation or other dispute resolution procedures at the senior officials’ level.

12. Resource Revenues

12.1 Resource Revenues generated in the Accord Area shall be deposited into the Consolidated Revenue Fund, with an amount to be transferred to the other Parties, subject to the same terms in respect of the Resource Revenues as set forth in Article 12.2, the Yukon Northern Affairs Program Devolution Transfer Agreement, as amended from time to time, and the Northwest Territories Lands and Resources Devolution Agreement, as amended from time to time.

  1. For the purpose of determining Global Resource Revenues as defined in and subject to offset under the Yukon Northern Affairs Program Devolution Transfer Agreement, as amended from time to time, Global Resource Revenues shall include offshore resource revenues generated in the Accord Area.
  2. For the purpose of determining Resource Revenues subject to offset under the Northwest Territories Lands and Resources Devolution Agreement, as amended from time to time, Resource Revenues shall include offshore resource revenues generated in the Accord Area.

12.2 Resource Revenues from the Canada-Inuvialuit Zone will be net of payments made to IRC. These payments to IRC will be comprised of an amount equivalent to 50% of the first $2 million in Resource Revenues and 5% of any additional Resource Revenues generated in the Canada-Inuvialuit Zone, with these amounts to be reviewed periodically in accordance with Article 15. Payments pursuant to this Article will be further confirmed in an agreement consistent with other agreements addressing Indigenous rights and interests in offshore areas.

12.3 The GNWT will receive an amount equivalent to the remaining Resource Revenues generated in the Canada-NWT Zone, and the YG will receive an amount equivalent to the remaining Resource Revenues generated in the Canada-Yukon Zone, following payments to IRC as specified in Article 12.2, in a manner to be agreed upon by the Parties.

12.4 The Government of Canada will set royalties and related Petroleum Resources Resource Revenues with the agreement of the Designated Authorities.

12.5 Nothing in the Accord applies in respect of the pricing of greenhouse gas pollution in the Accord Area.

12.6 If exploitation of Petroleum Resources occurs on the continental shelf beyond the 200 nautical mile limit, Petroleum Resources Resource Revenues will be net of Canada’s commitment under the United Nations Convention on the Law of the Sea, Article 82.

12.7 Nothing in the Accord applies in respect of taxation by Canada, the GNWT and the YG in the Accord Area. Canada, the YG and the GNWT will negotiate an agreement or agreements separate from the Accord on the imposition and administration of corporate income and other taxes and the sharing of tax revenues within the Accord Area.

13. Costs

13.1 Unless otherwise agreed to by the Parties, Canada will continue to provide resources to support management and administrative functions, duties and responsibilities in the Accord Area during the Transitional Phase, including the provision of staff resources for the Joint Office and support for its operations. The other Parties may also assign individuals to work within the Joint Office, either virtually or in a physically co-located manner. All Parties will provide the necessary support to their representatives on the Management Committee and the Executive Committee to allow them to participate in decision-making in those bodies. Funding for the regulatory functions by the CER in the Accord Area will continue to be provided by Canada during the Transitional Phase.

13.2 Recognizing the financial reality of IRC, Canada will work with IRC to ensure that it has sufficient and sustained resources to meaningfully participate and meet its legal and other obligations under the Accord.

14. Benefits Plans

14.1 Notwithstanding Article 7.3.5.1, the Implementing Legislation will provide that during the Transitional Phase and the Independent Joint Board Phase, the approval of a Benefits Plan, as defined in the COGOA, will be made by the Federal Minister. The Federal Minister will Consult the other Designated Authorities before making a decision on approving, or waiving the requirement of approval of, a Benefits Plan.

14.2 Acknowledging the obligation under the IFA to support the meaningful participation of Inuvialuit in the northern and national economy, the Federal Minister will not approve a Benefits Plan, or waive the requirement for the approval of a Benefits Plan, until the Federal Minister is satisfied that the requirement to provide Inuvialuit access to training and employment opportunities and enable Inuvialuit to participate meaningfully in the supply of goods and services will be fulfilled, consistent with the Federal Minister’s authority under section 5.2 of the COGOA.

14.3 The Implementing Legislation will provide that the Joint Office will administer Benefits Plans and monitor and determine if the operator is meeting its commitments as set out in the Benefits Plan.

15. Review and Amendment

15.1 Unless otherwise agreed, the Parties will undertake a joint review every five years of the implementation of the Accord, of the amounts identified in section 12.2, and, of infrastructure needs as outlined in Article 18 that there may be in the Accord Area, to ensure that the Accord continues to meet the intentions as set out in Article 1 and the objectives as set out in Article 2.

15.2 The Accord may be amended by written agreement of the Parties.

16. Confidential Data and Information Sharing

16.1 The Implementing Legislation will provide that the bodies established under the Accord are entitled to access any information or documentation relating to Petroleum Resources exploration and development that is provided for the purposes of informing and supporting shared decision-making, without requiring the consent of the party who provided the information or documentation.

16.2 Any information disclosed under Article 16.1 will be held in confidence and not further disclosed except in accordance with the Implementing Legislation.

17. Cooperation and Coordination of Regulatory and Management Responsibilities

17.1 The Parties agree to coordinate their departments, boards and agencies in relation to activities that may affect the management and regulation of Petroleum Resources in the Accord Area.

18. Infrastructure Investment

18.1 The Parties acknowledge that the different resource development infrastructure and investment requirements associated with activities in the Accord Area may necessitate a tailored response from the Parties.

18.2 Nothing in this Accord precludes arrangements relating to joint financing or the allocation of a proportion of a Party’s Resource Revenues for the development of infrastructure in the Accord Area. Consistent with national interests and in recognition of Inuvialuit, and all residents of the Northwest Territories and Yukon, as the principal beneficiaries of economic activity related to the exploration and development of Petroleum Resources within the Accord Area, such arrangements would be addressed on a project specific basis.

19. Renewable Energy and Other Minerals

19.1 In the event that exploration, production and development of renewable energy or minerals other than Petroleum Resources becomes feasible in the Accord Area in the future, the Parties agree to pursue discussions, similar in format and approach to those that led to the development of this Accord, on the shared management and regulation of such minerals or renewable energy in the Accord area.

20. Signatures

Accord signed by:

FOR THE GOVERNMENT OF CANADA

Daniel Vandal, PC MP
Minister of Northern Affairs

Date

Place

FOR THE INUVIALUIT REGIONAL CORPORATION

Duane Ningaqsiq Smith
Chair and Chief Executive Officer

Date

Place

FOR THE GOVERNMENT OF THE NORTHWEST TERRITORIES

Hon. Caroline Cochrane
Premier

Date

Place

FOR THE GOVERNMENT OF YUKON

Hon. Ranj Pillai
Premier

Date

Place

Annex 1: Maps of the Accord Area

Administrative Boundaries for the Management and Regulation of Petroleum Resources in the Western Arctic Offshore
Administrative Boundaries for the Management and Regulation of Petroleum Resources in the Western Arctic Offshore
Text alternative for Administrative Boundaries for the Management and Regulation of Petroleum Resources in the Western Arctic Offshore

The first image of Annex 1 is a map depicting the administrative boundaries for the management and regulation of petroleum resources in the Western Arctic offshore. The points defining the administrative boundary for the management and regulation of the petroleum resources in the Western Arctic offshore, as described in Annex 3, are shown on the map. The Yukon community of Old Crow is depicted on the map. Communities in the Northwest Territories are also depicted on the map and are presented from West to East in the following order: Aklavik, Fort McPherson, Tsiigehtchic, Inuvik, Tuktoyaktuk, Sachs Harbour, Paulatuk, and Ulukhaktok. The 200 nautical mile exclusive economic zone is delineated on the map. In the Eastern Arctic, more precisely in the Arctic Ocean and Baffin Bay, the different parts of the boundary with Greenland, namely the connection line, the joint regime line, the median line and the treaty line is delineated. The unsettled maritime boundary between Canada and the United States, which extends from their respective Exclusive Economic Zones, is depicted on the map. The limit of Exclusive Economic Zone, which is 200 nautical miles offshore from the United States’ baseline, is shown on the map. The limit of the Exclusive Economic Zone pursuant to the Bilateral Boundary Agreement is also depicted. The international boundary between Canada and the United States and the territorial boundaries between the Yukon and the Northwest Territories, and between the Northwest Territories and Nunavut are shown on the map. The map includes the line delineating the Beaufort Sea from the Arctic Ocean.The line representing Canada’s partial submission to the Commission on the Limits of the Continental Shelf (2019) – United Nations Convention on the Law of the Sea, is reproduced on the map. The offshore administrative boundary between the Northwest Territories and the Yukon Territory for the management and regulation of petroleum resources is depicted. Indigenous rights located in the Northwest Territories, which includes surface and surface/subsurface rights, are depicted on the map. The following settled land claim parcels are illustrated on the map:

  • Inuvialuit Settlement Lands
  • Gwich’in Settlement Lands
  • Sahtu Settlement Lands
  • Inuit Owned Lands
  • Tetlit Gwich’in Council Secondary Use Area
  • Tetlit Gwich’in Council Primary Use Area
  • Vuntut Gwitchin Settlement Lands
  • First Nation of Na-cho Nyäk Dun Traditional Territory
  • Tetlit Gwich’in Traditional Territory
  • Vuntut Gwitchin Traditional Territory
  • Inuvialuit Settlement Region
  • Gwich’in Settlement Area
  • Sahtu Dene and Métis Settlement Area
Boundaries for the Management and Regulation of Petroleum Resources in the Western Arctic Offshore
Boundaries for the Management and Regulation of Petroleum Resources in the Western Arctic Offshore
Text alternative for Administrative Boundaries for the Management and Regulation of Petroleum Resources in the Western Arctic Offshore

The second image of Annex 1 is a map depicting the boundaries for the management and regulation of petroleum resources in the Western Arctic offshore. The points defining the administrative boundary for the management and regulation of the petroleum resources in the Western Arctic offshore, as described in Annex 3, are shown on the map. The Yukon community of Old Crow is depicted on the map. Communities in the Northwest Territories are also depicted on the map and are presented from West to East in the following order: Aklavik, Fort McPherson, Tsiigehtchic, Inuvik, Tuktoyaktuk, Sachs Harbour, Paulatuk, and Ulukhaktok. The unsettled maritime boundary between Canada and the United States, which extends from their respective Exclusive Economic Zones, is depicted on the map. The limit of Exclusive Economic Zone, which is 200 nautical miles offshore from the United States’ baseline, is shown on the map. The limit of the Exclusive Economic Zone pursuant to the Bilateral Boundary Agreement is also depicted. The international boundary between Canada and the United States and the territorial boundaries between the Yukon and the Northwest Territories, and between the Northwest Territories and Nunavut are shown on the map. The map includes the line delineating the Beaufort Sea from the Arctic Ocean. The line representing Canada’s partial submission to the Commission on the Limits of the Continental Shelf (2019) – United Nations Convention on the Law of the Sea, is reproduced on the map. The offshore administrative boundary between the Northwest Territories and the Yukon Territory for the management and regulation of petroleum resources is depicted. Indigenous rights located in the Northwest Territories, which includes surface and surface/subsurface rights, are depicted on the map. The following settled land claim parcels are illustrated on the map:

  • Inuvialuit Settlement Lands
  • Gwich’in Settlement Lands
  • Sahtu Settlement Lands
  • Tetlit Gwich’in Council Secondary Use Area
  • Tetlit Gwich’in Council Primary Use Area
  • Vuntut Gwitchin Traditional Territory
  • Vuntut Gwitchin Settlement Lands
  • Inuvialuit Settlement Region
  • Gwich’in Settlement Area
  • Sahtu Dene and Métis Settlement Area

Annex 2: Legal description of Accord Area

All that part of Canada situated north of the Arctic Circle, west of the boundary described in Schedule I of the Nunavut Act that consists of the following submerged land which may be more particularly described as follows;

  1. lying seaward of the low-water line — or in respect of Inuvialuit lands, seaward of the mean or ordinary high-water mark — of the sea coast of the mainland or of the sea coast of any naturally occurring permanent island;
  2. lying seaward of lands under water that are within small enclosed bays as defined in the Northwest Territories Act along the sea coast of the mainland or the sea coast of any naturally occurring permanent island;
  3. lying seaward of the line of delimitation as defined in Schedule 18 of the Northwest Territories Lands and Resources Devolution Agreement as illustrated on Plan 101827 Canada Lands Survey Records; and
  4. lying seaward of the Northern Limit of Adjoining Area as defined in Schedule 2, Section 2 of the Yukon Act.

Annex 3: Legal description of the administrative boundary for Canada's offshore between the Canada-Yukon zone and the Canada-Northwest Territories zone

All geographic coordinates herein are referred to the North American Datum 1983 – Canadian Spatial Reference System (NAD83-CSRS), unless otherwise identified. All oil and gas units are as described in the Canada Oil and Gas Land Regulations (C.R.C., c. 1518) and reference the theoretical and unsurveyed Oil and Gas Grid as therein defined.

Commencing at the intersection of the Yukon/Northwest Territories boundary with the ordinary low water mark of Mackenzie Bay.

Thence continuing on the production of the Yukon/Northwest territories boundary to the intersection with the north boundary of Unit F, Section 44, Grid Area 69-00N 136-15 W, at approximate latitude 68°53’30" north and approximate longitude 136°26’54" west, as shown on Plan 101827 CLSR (Canada Lands Survey Records).

Thence generally northerly along a geodesic line to latitude 69°06’30.96" north and longitude 136°45’38.16" west.

Thence generally northerly along a geodesic line to latitude 69°36’53.64" north and longitude 136°54’19.44" west.

Thence northerly following the meridian of longitude 136°54’19.44" west to latitude 74°16’1.04" north, at the approximate northerly limit of the Beaufort Sea.

Thence northwesterly along a rhumb line with bearing of 313°21’24" to the limit of Canada’s jurisdiction.

Annex 4: Joint decisions

Annex 5: Administrative decisions and responsibilities

Joint Office Decisions and Responsibilities

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