Hibernia Royalty Agreement

With respect to the reduction of interest rates, there is nothing concrete in the agreement, other than an obligation for the federal government to look at this issue. The modern rules of the Royal Crown are often structured in two stages, a small gross royalty that, after payment, is converted into a larger net profit licence, that is, after the tenant/researcher has recovered the eligible costs of production. We can see such regimes in the Alberta oil sands and in the Frontier Land Petroleum Royalty Regulations, SOR/92-26 of the Canada Petroleum Resources Act, 1985 c 36 (2d supp) and, in this case, project royalties for the Hibernia project on the East Coast (although there is an additional third stage royalty under this regime that has not yet been achieved). Government documents estimate a $100 million reduction in the cost of debt over the life of the agreement. Newfoundland and Labrador received $2.5 billion in cash from the federal government over 38 years from the updated Atlantic agreement. The province will be required to make eight annual payments of $100 million under the agreement, which is scheduled to begin in 2045. Annual payments are made to the federal government for its continued participation in the operation of the Hibernia platform. The appropriations for the new Atlantic Agreement will be reflected in the 2019 provincial budget. The agreement will have an immediate impact on the province`s net debt and reduce it by $2.5 billion during this period, the government said. The province estimates a 16 per cent decrease in the province`s net debt. In the case of private royalties, disputes relating to the payment account can be settled in ordinary courts (or by arbitration if the parties have foreseen): see z.B.

Keles Production Co. v Husky Oil Operations Ltd., 80 Alta LR (2d) 5, 1991 CanLII 5842 (AB QB) and Lateral Resources Ltd. v Karon Resources Inc., 22 Alta LR (3d) 265, 1994 CanLII 9017 (AB QB). In the case of licensing fees, litigation will instead take the form of a Crown decision or ministerial meeting, followed by an application for judicial review or appeal (if any). However, in the case of the Hibernia project, the kronenlizenz licence is provided for by the Hibernia Project Royalty Agreement (HRA) and the Hibernia Project Allocation Agreement (HPRA). The agreements follow the form of trade agreements and provide for an arbitration procedure in the event of a disagreement on royalties. Arbitration complies with an arbitration law based on the Model Law on International Trade Arbitrations, as established by the United Nations Commission on International Trade Law for June 21, 1985 (UNCITRAL Model Law on International Commercial Arbitrations, 1985, U.N.