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Crown Share Adjustment Payments (CSAP)

Crown Share Adjustment Payments (CSAP). October 2007. Crown Share Adjustment Payments: Highlights. Founded in our 1986 Offshore Accord Separate from our 2005 Offshore Accord Statutory right to transfer payments from Ottawa based on offshore oil and gas project cash flows

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Crown Share Adjustment Payments (CSAP)

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  1. Crown Share Adjustment Payments (CSAP) October 2007

  2. Crown Share Adjustment Payments: Highlights Founded in our 1986 Offshore Accord Separate from our 2005 Offshore Accord Statutory right to transfer payments from Ottawa based on offshore oil and gas project cash flows Projected value in the $100s of millions based on currently producing offshore fields

  3. Why does NS have the right to CSAP? 1980 NEP (Federal Crown Share) 1982 NS agrees to set aside claim of offshore ownership in exchange for compensation and signs Offshore Agreement (NS Crown Share) 1985 NEP dismantled (Crown Share repealed) 1986 Offshore Accord (CSAP introduced) 1988 Canada Act (CSAP statutory right)

  4. What was a Crown Share? Keystone of the National Energy Program Reserved to Canada a 25% share in an interest in respect of Canada lands (Canada Oil and Gas Act) Nova Scotia had an option to acquire a portion of the federal Crown Share ( 1982 Offshore Agreement) - up to 25% of Canada’s 25% in an oil field (6.25%) - up to 50% of Canada’s 25% in a gas field (12.5%)

  5. What are CS Adjustment Payments? 1986 Offshore Accord Objective 1.02 (g): “financial benefits equivalent to those [Nova Scotia] would have achieved had it exercised its Crown Share option” 1988 Canada Act (Part VIII): Canada shall pay to Nova Scotia an amount equal to at least 75% of the deemed profit in respect of a project

  6. How are CSAPs to be determined? Canada has: the obligation to draft the Regulations; and the duty to consult with Nova Scotia on the proposed Regulations NS has the right to approve the proposed Regulations A three-member panel will determine CSAP One panel member selected by each government; panel members choose chair

  7. Crown Share Adjustment Payments October 2007

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