I. INTRODUCTION AND THE PARTIES

A. INTRODUCTION

1. This case concerns a dispute submitted to the International Centre for Settlement of Investment Disputes (“ICSID” or “Centre”) under the Centre’s Additional Facility Rules, on the basis of Chapter Eleven of the North American Free Trade Agreement (“NAFTA”). The dispute relates to two petroleum development projects: the Hibernia and Terra Nova projects off the coast of the Province of Newfoundland and Labrador in Canada (hereinafter “the Projects”). The Claimants allege that Guidelines for Research and Development Expenditures adopted in 2004 by the Canadian Newfoundland and Labrador Offshore Petroleum Board (the “2004 Guidelines”) are more restrictive and onerous than the provisions of existing agreements concerning the Projects requiring the Claimants to undertake certain minimum research and development expenditures, as adopted under the Accord Act (enacted by Canada in 1994) and implementing laws. The 2004 Guidelines allegedly require the Claimants and other investors in offshore petroleum projects to pay millions of dollars per year for research and development in the Province of Newfoundland and Labrador. As a result of the promulgation and enforcement of the 2004 Guidelines, the Claimants assert that Canada has breached the performance requirement prohibition in NAFTA Article 1106 and the minimum standard of treatment guarantee in NAFTA Article 1105.