(2)  For greater certainty, in each province, the legislature may exclusively make laws in relation to

a)     exploration for non-renewable natural resources in the province;

b)    development, exploitation, extraction, conservation and management of non-renewable natural resources in the province, including laws in relation to the rate of primary production therefrom; and

c)     development, exploitation, conservation and management of forestry resources in the province and of sites and facilities in the province for the generation of electrical energy, including laws in relation to the rate of primary production from such forestry resources and of production from such sites and facilities for the generation of electrical power.

2)    The draft outlines exclusive provincial legislative jurisdiction over certain natural resources and electric energy within the province. These resources have been defined as non-renewable (e.g.: crude oil, copper, iron and nickel), forests and electric energy. This section pertains to legislative jurisdiction and in no way impairs established proprietary rights of provinces over resources whether these resources are renewable or non-renewable.

(3)  In each province, the legislature (3) may make laws in relation to the export from the province to another part of Canada of the primary production from non-renewable natural resources and forestry resources in the province and the production from facilities in the province for the generation of electrical energy.

3)    Provincial governments are given concurrent legislative authority to pass laws governing the export of the resources referred to above from the province to another part of Canada. This new provincial legislative capacity applies to these resources in their raw state and to them in their processed state but does not apply to materials manufactured from them.

(4)  Nothing in subsection (3) derogates from the authority of Parliament to enact laws in relation to the matters referred to in that subsection, and where such a law of Parliament and a law of a province conflict, the law of Parliament prevails to the extent of the conflict.

4)    The effect of this new provincial legislative responsibility over interprovincial trade and commerce does not eliminate the federal government’s authority. In effect a concurrent power similar to that for agriculture is established. Thus, a federal law will prevail over a provincial law in the case of conflict between the two.

(5)  In each province, the legislature may make laws in relation to the raising of money by any mode or system of taxation in respect of

a)     non-renewable natural resources and forestry resources in the province and the primary production therefrom; and

b)    sites and facilities in the province for the generation of electrical energy and the production therefrom,

whether or not such production is exported in whole or in part from the province but such laws may not authorize or provide for taxation that differentiates between production exported to another part of Canada and production not exported from the province.

5)    Provincial powers of taxation are increased to include indirect taxes over the resources outlined in this section – whether these resources are destined in part for export outside the province. These taxes are to apply with equal force both in the province and across the rest of the country.

(6)  The expression “primary production” has the meaning assigned by the Sixth Schedule.

(7)  Nothing in subsections (2) to (6) derogates from any powers or rights that a legislature or government of a province had immediately before the coming into force of those subsections.

a)     production from a non-renewable resource is primary production therefrom if

i)         it is in the form in which it exists upon its recovery or severance from its natural state, or

ii)       it is a product resulting from processing or refining the resource, and is not a manufactured product resulting from refining crude oil, refining upgraded heavy crude oil, refining gases or liquids derived from coal, or refining a synthetic equivalent of crude oil; and

b)    production from a forestry resource is primary production therefrom if it consists of sawlogs, poles, lumber, wood chips, sawdust or any other primary wood product, or wood pulp, and is not a product manufactured from wood.

In determining the scope of provincial legislative powers over resources exported from the province, it became necessary to define the degree to which the resource was processed. It is not intended to extend provincial authority to manufacturing but it is intended to extend it to something beyond its extraction from its natural state. Given the varying resources covered by this section, this definition is thought to achieve the appropriate delineation of powers.