Understanding Canada's ESTMA Act

1Extractive Sector Transparency Measures Act (ESTMA)
Extractive Sector Transparency Measures Act (ESTMA)
The Extractive Sector
Transparency Measures Act
(ESTMA)
Mark Pearson
Director General,ExternalPolicyandPartnerships Branch
Natural ResourcesCanada
CanadianAboriginalMineralsAssociation
November2016

Core obligations for industry:
 Oil, gas and mining companies must
disclose, annually, specific payments
made to all levels of government in
Canada and abroad
 Annual reports must be made public
online for minimum of 5 years
What is the ESTMA?
Governments do not report

 Enhanced transparency of payments
to governments in the extractives
sector around the world
o 2013 G8 Leaders Summit commitment
 ESTMA came into force June 1, 2015
o Aligns with similar measures in other
jurisdictions (U.S., EU, Quebec)
Emerging global standard covers
significant part of global extractive
industry
Part of a global transparency initiative

Who must report?
REPORTING
ENTITY
OR

Reportable payments must meet all 3 criteria
1. Made in relation to the commercial development of oil, gas or
minerals
2. Fall within one of the following categories:
 Taxes* other than consumption & personal income taxes
 Royalties
 Fees (e.g. rental fees, entry fees, regulatory charges, fees or other consideration for licences, permits or
concessions)
 Production entitlements
 Bonuses (e.g. signature, discovery and production bonuses)
 Dividends (other than dividends paid to payees as ordinary shareholders)
 Infrastructure improvement payments
3. Total at least $100,000 per category as single or multiple payments
to the same “Payee”

Who receives reportable payments?
“Payee” means:
A body that is established by two or more governments
Any trust, board, commission, corporation, or body or other authority
that exercises or performs a power, duty or function of a government
in Canada or in a foreign state
Any government in Canada or in a foreign state

Reporting of industry payments to Indigenous governments in
Canada is deferred to June 1st 2017
 Reflects comments made by Indigenous peoples and industry
during development of the Act
 Provides longer period to consider Indigenous issues
and prepare for industry reporting payments
 No deferral in the United States or European Union
ESTMA timeline 2015–2018
*Reporting Entities must submit reports within 150 days of the
end of their financial year

Development of the ESTMA
ESTMA Timeline and Indigenous Engagement
2013
June Government commitment at the 2013 G8 Summit
Sept. – Dec. Early engagement with key Indigenous organizations
2014
February Government announces intent to develop new federal legislation
Feb. – April First set of Indigenous roundtables held across Canada
June – Dec. Legislation developed; Parliamentary debates and adoption
2015
Feb. – April Second set of Indigenous roundtables held across Canada
– summary distributed widely and available online
June – Dec. Implementation tools, federal election and transition period
2016
Jan. - Present Further Indigenous engagements
– e.g., CAMA, AFN Energy Forum, IOGC Symposium, Bilateral regional meetings

Indigenous Peoples have identified a number of issues that
we have considered (continued)

Indigenous Peoples have identified a number of questions
that we have considered - continued

What an ESTMA report will look like
Sample ESTMA REPORT for Company A
Country: Canada
Payee Name Taxes Royalties Fees Production
Entitlement
Bonuses Dividends Infrastructure
Improvement
Payments
Total Notes
Provincial
Ministry A
$8,000,000 $7,900,000 $15,900,000
Provincial
Ministry B
$5,000,000 $5,000,000
Federal
Department C
$1,500,000 $200,000 $1,700,000
Federal
Department D
$2,500,000 $2,500,000
Reginal
Municipality E
$100,000 $250,000 $350,000
City of ABC $150,000 $150,000
ABC First Nation $400,000 $150,000 $100,000 $650,000
XYZ First Nation $300,000 $200,000 $150,000 $650,000
Total $4,250,000 $13,700,000 $8,450,000 $250,000 $250,000 $26,900,000
Payments by Payee
Project Name Taxes Royalties Fees Production
Entitlement
Bonuses Dividends Infrastructure
Improvement
Payments
Total Notes
Project A $1,500,000 $5,000,000 $3,250,000 $100,000 $250,000 $10,100,000
Project B $2,750,000 $8,700,000 $5,200,000 $150,000 $16,800,000
Total $4,250,000 $13,700,000 $8,450,000 $250,000 $250,000 $26,900,000
Payments by Project

For more information
On the web
 www.nrcan.gc.ca/ESTMA
Via e-mail
 nrcan.ESTMA-LMTSE.rncan@Canada.ca

Understanding Canada's ESTMA Act

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