S-34.1, r. 3 - Regulation respecting petroleum exploration, production and storage licences, and the pipeline construction or use authorization

Section 165 Disposition versions

2018-09-20

165. For the purpose of demonstrating solvency to the amount provided for in sections 160 to 163, a person who wishes to obtain a licence or a pipeline construction or use authorization or the holder of a licence or of such an authorization must provide the Minister with a statement indicating the person’s net assets or financing agreements entered into and demonstrating that the person is able to pay the sum concerned.

The statement must be accompanied and supported by any of the following documents or a combination of them:

(1)  the most recent annual financial statement audited by an independent auditor and the last quarterly financial statements and, if the person has received a credit rating from a recognized rating organization and the rating is up to date, a document certifying that the rating is up to date;

(2)  bonds issued or guaranteed by Québec or another province of Canada, by Canada or by a municipality in Canada, and having a market value at least equal to the amount provided for in sections 160 to 163. Registered bonds must be submitted with a power of attorney on behalf of the Minister of Finance and, where applicable, with a resolution authorizing the person who signs the power of attorney;

(3)  guaranteed investment certificates or term deposit certificates, in Canadian dollars, issued on behalf of the Minister of Finance by a bank, a savings and credit union or a trust company. Such certificates must have a term of at least 12 months, be automatically renewable for the term of the licence or authorization and not include any restriction in respect of redemption during its term;

(4)  a promissory note payable on demand to the Minister of Finance, non-negotiable and unconditional, signed and indicating expressly the amount for which it is issued. If the promissory note is issued by a person other than the person wishing to obtain a licence or authorization, the licence or authorization holder, a bank, a savings and credit union or a trust company, it must be accompanied by the financial statements provided for in subparagraph 1 of this paragraph submitted for that person so that the Minister may ascertain the person’s solvency to the amount of the promissory note;

(5)  an insurance policy issued by an insurer that has received a credit rating equal to or greater than A- from an internationally recognized rating organization covering all the risks provided for in section 128 of the Act, indicating that the insurer waives the subrogation right to the Minister and the policy may be cancelled only following a notice given to the Minister at least 30 days before the cancellation date. The insurance policy must indicate the Minister as additional insured, whose liability is covered for the actions or omissions of the licence or authorization holder;

(6)  an escrow agreement to which the Minister is party specifying the amount that must be furnished to the depositary and kept in an account in trust, managed according to the conditions provided for in the agreement and stipulating that the amount is payable within 5 days on request of the Minister to the legal depositary;

(7)  a trust constituted in accordance with the Civil Code and meeting the following requirements:

(a)  the purpose of the trust is to ensure the reparation for injury provided for in section 128 of the Act;

(b)  the Minister of Finance and the licence or authorization holder are joint beneficiaries of the trust;

(c)  the trustee is a bank, a savings and credit union or a trust company;

(d)  the trust patrimony is comprised only of sums in cash, or of bonds or certificates of the same type as those listed in subparagraphs 2 and 3 of this paragraph;

(8)  an irrevocable, non-transferable, unassignable and unconditional letter of credit issued on behalf of the Gouvernement du Québec by a bank, a savings and credit union or a trust company;

(9)  a security or a guaranty contract issued on behalf of the Gouvernement du Québec by a legal person legally empowered to act in that capacity.

The financial institutions referred to in subparagraphs 3, 4, 7 and 8 of the second paragraph must be empowered by law to carry on the activities provided for in those subparagraphs.

The guarantees referred to in subparagraphs 2 and 3 of the second paragraph are received on deposit by the Minister of Finance pursuant to the Act respecting deposits with the Bureau général de dépôts pour le Québec (chapter D-5.1).

O.C. 1253-2018, s. 165.

Not in force

In force: 2018-09-20

165. For the purpose of demonstrating solvency to the amount provided for in sections 160 to 163, a person who wishes to obtain a licence or a pipeline construction or use authorization or the holder of a licence or of such an authorization must provide the Minister with a statement indicating the person’s net assets or financing agreements entered into and demonstrating that the person is able to pay the sum concerned.

The statement must be accompanied and supported by any of the following documents or a combination of them:

(1)  the most recent annual financial statement audited by an independent auditor and the last quarterly financial statements and, if the person has received a credit rating from a recognized rating organization and the rating is up to date, a document certifying that the rating is up to date;

(2)  bonds issued or guaranteed by Québec or another province of Canada, by Canada or by a municipality in Canada, and having a market value at least equal to the amount provided for in sections 160 to 163. Registered bonds must be submitted with a power of attorney on behalf of the Minister of Finance and, where applicable, with a resolution authorizing the person who signs the power of attorney;

(3)  guaranteed investment certificates or term deposit certificates, in Canadian dollars, issued on behalf of the Minister of Finance by a bank, a savings and credit union or a trust company. Such certificates must have a term of at least 12 months, be automatically renewable for the term of the licence or authorization and not include any restriction in respect of redemption during its term;

(4)  a promissory note payable on demand to the Minister of Finance, non-negotiable and unconditional, signed and indicating expressly the amount for which it is issued. If the promissory note is issued by a person other than the person wishing to obtain a licence or authorization, the licence or authorization holder, a bank, a savings and credit union or a trust company, it must be accompanied by the financial statements provided for in subparagraph 1 of this paragraph submitted for that person so that the Minister may ascertain the person’s solvency to the amount of the promissory note;

(5)  an insurance policy issued by an insurer that has received a credit rating equal to or greater than A- from an internationally recognized rating organization covering all the risks provided for in section 128 of the Act, indicating that the insurer waives the subrogation right to the Minister and the policy may be cancelled only following a notice given to the Minister at least 30 days before the cancellation date. The insurance policy must indicate the Minister as additional insured, whose liability is covered for the actions or omissions of the licence or authorization holder;

(6)  an escrow agreement to which the Minister is party specifying the amount that must be furnished to the depositary and kept in an account in trust, managed according to the conditions provided for in the agreement and stipulating that the amount is payable within 5 days on request of the Minister to the legal depositary;

(7)  a trust constituted in accordance with the Civil Code and meeting the following requirements:

(a)  the purpose of the trust is to ensure the reparation for injury provided for in section 128 of the Act;

(b)  the Minister of Finance and the licence or authorization holder are joint beneficiaries of the trust;

(c)  the trustee is a bank, a savings and credit union or a trust company;

(d)  the trust patrimony is comprised only of sums in cash, or of bonds or certificates of the same type as those listed in subparagraphs 2 and 3 of this paragraph;

(8)  an irrevocable, non-transferable, unassignable and unconditional letter of credit issued on behalf of the Gouvernement du Québec by a bank, a savings and credit union or a trust company;

(9)  a security or a guaranty contract issued on behalf of the Gouvernement du Québec by a legal person legally empowered to act in that capacity.

The financial institutions referred to in subparagraphs 3, 4, 7 and 8 of the second paragraph must be empowered by law to carry on the activities provided for in those subparagraphs.

The guarantees referred to in subparagraphs 2 and 3 of the second paragraph are received on deposit by the Minister of Finance pursuant to the Act respecting deposits with the Bureau général de dépôts pour le Québec (chapter D-5.1).

O.C. 1253-2018, s. 165.