FEDERAL REG

SOR/2016-131: Regulations Amending the Territorial Quarrying Regulations

REGISTRATION OF FEDERAL REGULATION - VIA OIC DATABASE, PRIOR TO PART II OF THE GAZETTE

Registered
June 13, 2016


REGULATORY IMPACT ANALYSIS STATEMENT (This statement is not part of the Regulations.) Issues Under the Territorial Quarrying Regulations, a quarrying permit is currently issued for up to one year or until the amount of material applied for has been removed. Quarries used over multiple years require annual applications for permits, which duplicates administrative effort and creates uncertainties. ... (Click for more)


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Published on June 13, 2016

Bill Summary

SOR/2016-131: Regulations Amending the Territorial Quarrying Regulations

REGULATORY IMPACT ANALYSIS STATEMENT (This statement is not part of the Regulations.) Issues Under the Territorial Quarrying Regulations, a quarrying permit is currently issued for up to one year or until the amount of material applied for has been removed. Quarries used over multiple years require annual applications for permits, which duplicates administrative effort and creates uncertainties. The amendments to the Territorial Quarrying Regulations address these issues and other minor changes that are strictly administrative in nature. Background The Territorial Quarrying Regulations, made under the Territorial Lands Act, apply to territorial lands in the Northwest Territories and Nunavut under the control, management and administration of the Minister of Indian Affairs and Northern Development. The amendments bring the Territorial Quarrying Regulations in step with current operating realities and will make quarrying processes more efficient for industry and government in the North. The quarry sector in the North is a small but critical industry. Almost all physical developments will require some type of quarried material; whether gravel for a driveway to a house or the large range and quantity of materials needed to build the complex infrastructure of mineral or petroleum developments. Growth in this sector is largely dependent on spending on industrial developments and on public infrastructure, but the efficiency of the regulatory system can also have a great impact on the competitiveness of smaller operators. Applicants range from individuals or small companies — who may take a small volume of material from the same pit year after year — to large multinationals, who may need a huge quantity of material in one or several construction seasons. Quarrying permits allow the taking of a specified quantity of material from Crown lands, but a land use permit is also required to access the land covered by the quarrying permit. The land use permit contains terms and conditions and provides a linkage to the environmental assessment (i.e. screening), monitoring and enforcement processes. The amendments to the Territorial Quarrying Regulations are administrative in nature and will provide consistency for companies and regulators. Objectives The objectives of the amendments are to reduce the administrative burden on proponents of having to annually reapply for the use of the same quarrying area and to modernize the language used in certain provisions of the Territorial Quarrying Regulations. Under the previous Territorial Quarrying Regulations, a quarrying permit was issued for up to one year or until the amount of material applied for had been removed. Usage of quarries over multiple years required annual applications for quarrying permits, which duplicated administrative effort and created uncertainties. The amendments increase the length of a quarrying permit from one year to a maximum of three years. While not reducing or changing how quarrying permit applications are reviewed for environmental impacts, the amendments will alleviate some of the administrative burden on industry and on internal processing. There are no costs associated with the amendments, as they are administrative in nature. Moreover, there are no changes to the fees associated with quarrying permit applications or the fees, rentals and royalties, as set out in Schedules I and II of the Territorial Quarrying Regulations. Description Previously, quarrying permits would expire on the date when the quantity of material authorized is removed or one year after issuance, whichever is sooner. This means that many operators would require a new permit every year. A review of quarrying permit files showed that 85% of applicants would be better served by the issuance of a three-year maximum permit. The three-year maximum term also complements the changes to the duration of a land use permit, in that it allows for a year of site investigation and site preparation prior to the commencement of extraction operations (covered by quarrying permit) and a year for abandonment and closure. The changes to the term of a quarrying permit will better link the cycles of the quarrying operation with the land use permit. For longer term quarrying operations, the Territorial Quarrying Regulations will continue to provide for the issuance of a quarrying lease, instead of a quarrying permit, up to a term of 10 years with a further renewal term not exceeding 10 years; subject to the decision of the Minister of Indian Affairs and Northern Development. The amendments to the Territorial Quarrying Regulations will improve how quarrying operations are managed and will also improve the northern regulatory environment. For example, by changing the length of the quarrying permit term, from one year to a maximum of three years, the administrative burden will be reduced by not having to re-apply every year for use of the same area. By including Nunavut, and changing the measurements from imperial units to metric, the Territorial Quarrying Regulations are brought up to standards that are reflective of the current working environment in the North. In addition to clarifying some of the definitions, the amendments also simplify the language used in some of the clauses; modernizing them and rendering them more intelligible. The long title of the Territorial Quarrying Regulations itemizes a number of materials that may be disposed of under the Regulations but did not define them. The change removes the named material from the title and adds it to the definition section; thereby providing greater precision, clarity and certainty with regard to the materials covered under the Regulations. With the creation of the Nunavut Land Claims Agreement, certain rights were guaranteed to the Inuit with regard to carving stone. A definition of “carving stone,” and a section respecting the Inuit rights to carving stone in Nunavut, have been added to the Regulations. “One-for-One” Rule The “One-for-One” Rule applies to these amendments and they are considered an “OUT” (decrease of the administrative costs on business) under the Rule. Changing the length of the quarrying permit term, from one year to a maximum of three years, affords more flexibility to companies to plan their activities. The changes will also relieve some of the administrative burden on companies and the Crown from having to re-apply for a quarrying permit after one year. It is expected that the length of time to apply for a quarrying permit or renewal will not change but the longer term will result in fewer renewals. Out of the average of 20 applicants per year, based on data for the past 10 years, an average of 25% of applicants would have to re-apply after one year. These frequent quarrying permit renewals will now be avoided with the longer three year maximum term. The average annual savings for each stakeholder is projected to be approximately $116. The average annual savings for all stakeholders is projected to be $2,314. The annual savings, for the 25% of the total stakeholders that would be affected, is based on information gathered from, and through experience working directly with, proponents in the development, submission and implementation of quarrying permits and data over a 10-year period. As a result of the amendments, stakeholders will save time obtaining information, completing the quarrying application, submitting the application, following up on any issues and implementing the quarrying permit. In total, it is estimated that each affected stakeholder will save, at a minimum, 27 hours in labour time. Small business lens The small business lens does not apply to these amendments, as the overall costs are less than $1 million and there is no burden imposed on small business. Consultation In January, March and April 2010, Indigenous and Northern Affairs Canada held informal and formal discussions with industry and potential stakeholders at the Mineral Exploration Roundup 2010 in Vancouver, British Columbia; at the Prospectors and Developers Association of Canada Convention in Toronto, Ontario; and at the Nunavut Mining Symposium in Iqaluit, Nunavut. In general, the comments were supportive of the proposed changes. A consultation document, including a supporting letter and the proposed amendments, was distributed for comments, on March 4, 2010, to stakeholders in the Northwest Territories and Nunavut, which included municipalities, territorial and federal government departments, Indigenous governments and organizations, various land and water boards, environmental boards and industry groups. Comments were requested by April 30, 2010. Community meetings were also arranged and held in three locations to discuss the proposed amendments. The meetings took place on March 22, 2010, in Inuvik, Northwest Territories; on March 23, 2010, in Yellowknife, Northwest Territories; and on March 25, 2010, in Iqaluit, Nunavut. Approximately 30 people attended these meetings. In June 2012, a new consultation document and supporting letter with the proposed amendments was distributed for comments to the same stakeholders as the March 4, 2010, distribution. Comments were requested by July 20, 2012. In general, the comments were supportive of the proposed amendments. An issue was raised regarding the proposed definition of “material” and the definition of a “mineral,” under the Northwest Territories and Nunavut Mining Regulations (now repealed and replaced by the Northwest Territories Mining Regulations and the Nunavut Mining Regulations). The issue has been addressed to ensure that there is no duplication. More specifically, the Territorial Quarrying Regulations cover loam, carving stone and other relatively low-value materials that are used primarily for construction purposes, while the Northwest Territories Mining Regulations and the Nunavut Mining Regulations cover the relatively higher value commodities that are extracted from the ground, based on their mineral content, but not including those commodities covered by the Territorial Quarrying Regulations. Concerns about language and minor technical issues were also taken into account in the drafting of the proposed amendments to the Territorial Quarrying Regulations. The proposed amendments were prepublished in Part I of the Canada Gazette on May 24, 2014, for a consultation period of 30 days. No comments were received. Rationale The amendments to the Territorial Quarrying Regulations make quarrying processes more efficient for industry and government in the North. The amendments bring the Regulations in step with current operating realities and will make the process more efficient for industry and government in the North. Implementation, enforcement and service standards The amendments to the Territorial Quarrying Regulations come into force on the day on which they are registered. Indigenous and Northern Affairs Canada will continue to communicate regarding all aspects of the amendments and will be informing stakeholders through news releases and letters and/or notices to target audiences. As the regulatory amendments do not impact Indigenous and Northern Affairs Canada’s role or mandate, no additional mechanisms to ensure compliance with the new requirements are needed and use will continue to be made of the Department’s existing enforcement and compliance tools. Contact Eric Hopkins Acting Manager Land and Water Management Northern Affairs Organization Indigenous and Northern Affairs Canada Gatineau, Quebec K1A 0H4 Telephone: 819-994-7483 Fax: 819-997-9623 Email: [email protected] Footnote a S.C. 2014, c. 2, s. 30 Footnote b R.S., c. T-7 Footnote c R.S., c. T-7 Footnote 1 C.R.C., c. 1527

This Bill does not amend any statutes.

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