Canadian Energy Regulator Act

Contents

Whereas the Government of Canada is establishing an independent energy regulatory body that is responsible for ensuring that pipeline, power line and offshore renewable energy projects within Parliament’s jurisdiction are constructed, operated and abandoned in a safe and secure manner that protects people, property and the environment;Whereas the Government of Canada is of the opinion that the body should be reflective and respectful of the diversity of Canada, including with respect to the Indigenous peoples of Canada, and of its regional diversity and bilingual nature;Whereas the Government of Canada is committed to enhancing Canada’s global competitiveness by building a system that enables decisions to be made in a predictable and timely manner, providing certainty to investors and stakeholders, driving innovation and enabling the carrying out of sound projects that create jobs for Canadians;Whereas the Government of Canada is committed to achieving reconciliation with First Nations, the Métis and the Inuit through renewed nation-to-nation, government-to-government and Inuit-Crown relationships based on recognition of rights, respect, co-operation and partnership;Whereas the Government of Canada is committed to implementing the United Nations Declaration on the Rights of Indigenous Peoples;Whereas the Government of Canada is committed to using transparent processes that are built on early engagement and inclusive participation and under which the best available scientific information and data as well as Indigenous knowledge are taken into account in decision-making;And whereas the Government of Canada is committed to assessing how groups of women, men and gender-diverse people may experience policies, programs and projects and to taking actions that contribute to an inclusive and democratic society and allow all Canadians to participate fully in all spheres of their lives;Now, therefore, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

Short Title

1Short title#

This Act may be cited as the Canadian Energy Regulator Act.

Interpretation

2Definitions#

The following definitions apply in this Act.

abandoned facility means an abandoned pipeline or an abandoned offshore facility. (installation abandonnée)

abandoned offshore facility means any facility, equipment, system or offshore power line that has been abandoned in accordance with an authorization issued under Part 5. (installation extracôtière abandonnée)

abandoned pipeline means a pipeline the operation of which has been abandoned in accordance with an order under subsection 241(1) and that remains in place. (pipeline abandonné)

Chief Executive Officer means the Chief Executive Officer appointed under subsection 21(1). (président-directeur général)

company includes

(a)a person having authority under a Special Act to construct or operate a pipeline; and

(b)a body corporate incorporated or continued under the Canada Business Corporations Act or an Act of the legislature of a province and not discontinued under the Act in question. (compagnie)

designated officer means an employee of the Regulator designated under section 24. (responsable désigné)

export means, in relation to

(a)electricity, to send from a place in Canada by a line of wire or other conductor electricity produced in Canada;

(b)oil,

(i)to export within the meaning of any provision of the Energy Administration Act that defines export for the purposes of any charge imposed under that Act in relation to fuel for use by an aircraft or a vessel,

(ii)to send or take, by any means, from a place in Canada, or

(iii)to send or take, by any means, to a place outside Canada from any area of land, not within a province, that belongs to Her Majesty in right of Canada or in respect of which Her Majesty in right of Canada has the right to dispose of or exploit the natural resources and that is situated in submarine areas in the internal waters of Canada, the territorial sea of Canada or the continental shelf of Canada; or

(c)gas, to effect any one of the operations referred to in subparagraph (b)(ii) or (iii). (exportation)

gas means

(a)any hydrocarbon or mixture of hydrocarbons that, at a temperature of 15°C and a pressure of 101.325 kPa, is in a gaseous state; or

(b)any substance designated as a gas product by regulations made under section 390. (gaz)

ground disturbance means a ground disturbance other than one that

(a)is caused by any activity that is specified in the orders or regulations made in respect of pipelines under section 335 or made in respect of international or interprovincial power lines under section 275;

(b)is, in relation to a pipeline, caused by cultivation to a depth of less than 45 cm below the surface of the ground; or

(c)is, in relation to a pipeline, caused by any other activity to a depth of less than 30 cm and that does not result in a reduction of the earth cover over the pipeline to a depth that is less than the cover provided when the pipeline was constructed. (remuement du sol)

hydrocarbon means a hydrocarbon other than coal. (hydrocarbure)

import means, in relation to gas or oil, to bring into Canada through pipelines, by railway tank car, by tank truck or by tanker. (importation)

Indigenous governing body means a council, government or other entity that is authorized to act on behalf of an Indigenous group, community or people that holds rights recognized and affirmed by section 35 of the Constitution Act, 1982. (corps dirigeant autochtone)

Indigenous knowledge means the Indigenous knowledge of the Indigenous peoples of Canada. (connaissances autochtones)

Indigenous organization means an Indigenous governing body or any other entity that represents the interests of an Indigenous group and its members. (organisation autochtone)

Indigenous peoples of Canada has the meaning assigned by the definition aboriginal peoples of Canada in subsection 35(2) of the Constitution Act, 1982. (peuples autochtones du Canada)

inspection officer means a person designated under subsection 102(1). (inspecteur)

international power line means facilities that are constructed or operated for the purpose of transmitting electricity from a place in Canada to a place outside Canada or from a place outside Canada to a place in Canada. It does not however include an offshore power line. (ligne internationale de transport d’électricité ou ligne internationale)

interprovincial power line means facilities that are constructed or operated for the purpose of transmitting electricity from a place in a province to a place in another province. (ligne interprovinciale de transport d’électricité ou ligne interprovinciale)

land registrar means an officer with whom titles, rights or interests relating to real property or immovables are registered or recorded. (directeur de l’enregistrement)

lands includes real property and any interest or right in real property or land and, in Quebec, any immovable, any right in an immovable and the right of a lessee in respect of any immovable. Those interests or rights may be in, to, on, under, over or in respect of the lands. (terrains)

Minister means the member of the Queen’s Privy Council for Canada designated under section 8. (ministre)

navigable water has the same meaning as in section 2 of the Canadian Navigable Waters Act. (eaux navigables)

offshore area means

(a)the part of the internal waters of Canada or of the territorial sea of Canada that is not situated in

(i)a province other than the Northwest Territories, or

(ii)the onshore, as defined in section 2 of the Northwest Territories Act; and

(b)the continental shelf of Canada and the waters superjacent to the seabed of that shelf. (zone extracôtière)

offshore power line means facilities constructed or operated for the purpose of transmitting electricity from an offshore renewable energy project to a province or a place outside Canada. (ligne extracôtière)

offshore renewable energy project means any of the following that are carried on in the offshore area:

(a)any research or assessment conducted in relation to the exploitation or potential exploitation of a renewable resource to produce energy;

(b)any exploitation of a renewable resource to produce energy;

(c)any storage of energy produced from a renewable resource; or

(d)any transmission of such energy, other than the transmission of electricity to a province or a place outside Canada. (projet d’énergie renouvelable extracôtière)

oil means

(a)any hydrocarbon or mixture of hydrocarbons other than gas; or

(b)any substance designated as an oil product by regulations made under section 390. (pétrole)

penalty means an administrative monetary penalty imposed under this Act for a violation. (pénalité)

pipeline means a line — including all branches, extensions, tanks, reservoirs, storage or loading facilities, pumps, racks, compressors, interstation communication systems, real or personal property, or immovable or movable, and any connected works — that connects at least two provinces or extends beyond the limits of a province, Sable Island or an area referred to in paragraph (c) of the definition designated area in section 368 and that is used or is to be used for the transmission of oil, gas or any other commodity. It does not however include a sewer or water pipeline that is used or is to be used solely for municipal purposes. (pipeline)

power line means an international power line, an interprovincial power line or an offshore power line. (ligne de transport d’électricité)

regulated facility means a pipeline, an international power line, an interprovincial power line designated by an order made under section 261, an offshore power line, or any facility, equipment or system that is related to an offshore renewable energy project. (installation réglementée)

Regulator means the corporation established under subsection 10(1). (Régie)

Special Act means

(a)an Act of Parliament that authorizes a person named in the Act to construct or operate a pipeline or that is enacted with special reference to a pipeline that, by such an Act, a person is authorized to construct or operate; and

(b)letters patent issued under section 5.1 or 5.4 of the Canada Corporations Act, chapter C-32 of the Revised Statutes of Canada, 1970, except for the purpose of paragraph 342(b) of this Act. (loi spéciale)

toll includes any rate, charge or allowance charged or made

(a)for the shipment, transportation, transmission, care, handling or delivery of hydrocarbons or of another commodity that is transmitted through a pipeline, or for storage or demurrage, or the like;

(b)for the provision of a pipeline when the pipeline is available and ready to provide for the transmission of oil or gas; and

(c)in respect of the purchase and sale of gas that is the property of a company and that is transmitted by the company through its pipeline, excluding the cost to the company of the gas at the point where it enters the pipeline. (droit)

3 #

[Repealed, 2024, c. 30, s. 34] (repealed)

4Application — Special Act lands#

A provision of this Act or a regulation made under it that applies to lands also applies to lands referred to in a Special Act.

5Powers of liquidators, trustees, etc.#

(1)For the purposes of this Act, each of the following is considered to be a company:

(a)a liquidator, receiver or manager of the property of a company, appointed by a court of competent jurisdiction to carry on the business of the company;

(b)a trustee — or the holder of a power of attorney within the meaning of the Civil Code of Québec — for the holders of bonds, debentures, debenture stock or other evidence of indebtedness of the company, secured under a trust deed, an act constituting a hypothec within the meaning of the Civil Code of Québec or other instrument or act, on or against the property of the company, if the trustee or holder is authorized by the instrument or act to carry on the business of the company; and

(c)a person, other than a company,

(i)operating a pipeline constructed before October 1, 1953, or

(ii)constructing, operating or abandoning a pipeline exempted from subsection 179(1) by an order made by the Commission under subsection 214(1).

(2)In Quebec, the administrator of the property of the company appointed by a court of competent jurisdiction to carry on the business of the company is also considered to be the company.

(3)For the purposes of this Act, a successor or assign of a company is considered to be a company for any matter relating to an abandoned pipeline.

Purpose

6Purpose of Act#

The purpose of this Act is to regulate certain energy matters within Parliament’s jurisdiction and, in particular,

(a)to ensure that pipelines and power lines as well as facilities, equipment or systems related to offshore renewable energy projects, are constructed, operated and abandoned in a manner that is safe, secure and efficient and that protects people, property and the environment;

(b)to ensure that the exploration for and exploitation of oil and gas, as defined in section 2 of the Canada Oil and Gas Operations Act, is carried out in a manner that is safe and secure and that protects people, property and the environment;

(c)to regulate trade in energy products; and

(d)to ensure that regulatory hearings and decision-making processes related to those energy matters are fair, inclusive, transparent and efficient.

General

7Binding on Her Majesty#

This Act is binding on Her Majesty in right of Canada or a province.

8Order designating Minister#

The Governor in Council may, by order, designate any member of the Queen’s Privy Council for Canada to be the Minister for the purposes this Act.

Part 1 · Canadian Energy Regulator

9Definition of document of authorization#

In this Part, document of authorization means a certificate issued under Part 3 or 4, a permit issued under Part 4 or 7, an authorization issued under Part 5, a licence issued under Part 7 or an order made under section 214.

Establishment and Mandate

10Canadian Energy Regulator#

(1)A corporation is established to be called the Canadian Energy Regulator.

(2)The Regulator is for all purposes an agent of Her Majesty in right of Canada.

(3)The head office of the Regulator is to be in Calgary, Alberta. The Regulator’s Chief Executive Officer may open or close other offices after consulting the board of directors.

(4)For greater certainty, the opening or closing of an office does not change the conditions of appointment of a director or commissioner.

11Mandate#

The Regulator’s mandate includes

(a)making transparent decisions, orders and recommendations with respect to pipelines, power lines, offshore renewable energy projects and abandoned pipelines;

(b)overseeing the construction, operation and abandonment of pipelines, interprovincial power lines and international power lines and overseeing work and activities authorized under Part 5 as well as abandoned facilities;

(c)making orders with respect to traffic, tolls and tariffs and overseeing matters relating to traffic, tolls and tariffs;

(d)making decisions and orders and giving directions under Part 8 with respect to oil and gas interests, production and conservation;

(e)advising and reporting on energy matters;

(f)providing alternative dispute resolution processes;

(g)exercising powers and performing duties and functions that are conferred on the Regulator under any other Act of Parliament; and

(h)exercising its powers and performing its duties and functions in a manner that respects the Government of Canada’s commitments with respect to the rights of the Indigenous peoples of Canada.

12Jurisdiction — Inuvialuit Settlement Region#

(1)Until March 31, 2034, the Regulator is to be the regulator — under any law of the Legislature of the Northwest Territories that is made under paragraph 19(1)(a), (b) or (c) of the Northwest Territories Act — in respect of that portion of the Inuvialuit Settlement Region, as defined in section 2 of the Canada Oil and Gas Operations Act, that is situated in the onshore as defined in section 2 of the Northwest Territories Act.

(2)After March 31, 2034, the Government of Canada and the Government of the Northwest Territories may agree that the Regulator is to continue to be the regulator for one or more periods of 20 years each; they may also, before the expiry of each successive period, agree to its earlier termination.

13Governor in Council directions#

(1)The Governor in Council may, by order, give to the Regulator directions of general application on broad policy matters with respect to the Regulator’s mandate.

(2)An order made under subsection (1) is binding on the Regulator.

(3)A copy of each order made under subsection (1) must be published in the Canada Gazette and tabled in each House of Parliament.

Board of Directors

14Establishment and composition#

(1)The Regulator is to have a board of directors consisting of at least five but not more than nine directors, including a Chairperson and a Vice-Chairperson.

(2)At least one of the directors must be an Indigenous person.

15Appointment#

(1)The Chairperson, Vice-Chairperson and the other directors are to be appointed by the Governor in Council to hold office on a part-time basis and during pleasure for a term not exceeding five years.

(2)A director may be reappointed in the same or another capacity for one or more terms of up to five years each.

(3)A person is not eligible to be a director if they are the Chief Executive Officer, a commissioner or an employee of the Regulator.

(4)A person is not eligible to be Chairperson or Vice-Chairperson unless they are a Canadian citizen or permanent resident as defined in subsection 2(1) of the Immigration and Refugee Protection Act.

(5)A director is to be paid the remuneration that is fixed by the Governor in Council and is entitled to be paid reasonable travel and other expenses while performing their duties and functions under this Act while absent from their ordinary place of residence.

16Conflict of Interest Act#

For the purposes of the Conflict of Interest Act, the circumstances in which a director is in a conflict of interest while exercising the powers or performing the duties and functions of a director include

(a)engaging in, as owner, shareholder, director, officer, partner or in any other way, the business of producing, selling, buying, transmitting, exporting, importing or otherwise dealing in hydrocarbons, electricity or offshore energy;

(b)holding any bond, debenture or other security of a corporation engaged in any such business; and

(c)holding other employment that is inconsistent with their powers, duties and functions or with any provision of this Act or a regulation made under it.

17Role of the board of directors#

(1)The board of directors is responsible for the governance of the Regulator and its governance functions include providing strategic direction and advice to the Regulator. The board of directors must not however give directions or provide advice with respect to any particular decision, order or recommendation that is made by the Commission or a commissioner.

(2)The board of directors may make by-laws respecting the conduct of its meetings and the general conduct of its activities.

(3)A majority of the directors holding office, including the Chairperson, constitutes a quorum of the board of directors.

18Annual report#

(1)The board of directors must, within 120 days after the end of each fiscal year, submit to the Minister a report on the Regulator’s activities under this Act for that fiscal year, and the Minister must cause the report to be laid before each House of Parliament on any of the first 15 days on which that House is sitting after the day on which the report is received.

(2)The board of directors may submit a report to the Minister on the Regulator’s activities if the board considers it appropriate to do so.

(3)For the purposes of subsection (1), fiscal year means the period beginning on April 1 in one year and ending on March 31 in the next year.

19Role of Chairperson#

(1)The Chairperson presides over meetings of the board of directors and may perform any duties or functions that are assigned to him or her by the board.

(2)If the Chairperson is absent or is unable to act or if there is a vacancy in that office, the Vice-Chairperson acts as Chairperson.

(3)The Vice-Chairperson is not authorized to act as Chairperson for a period of more than 90 days without the approval of the Governor in Council.

20Vacancy#

A vacancy in the board of directors does not impair the right of the remaining directors to act.

Chief Executive Officer

21Appointment#

(1)The Chief Executive Officer of the Regulator is to be appointed by the Governor in Council on the recommendation of the Minister after the Minister has consulted the directors.

(2)The Chief Executive Officer is to hold office on a full-time basis during pleasure for a term of up to six years.

(3)The Chief Executive Officer may be reappointed for one or more terms of up to six years each. However, the Chief Executive Officer is to serve no more than 10 years in office in total.

(4)A person is not eligible to be the Chief Executive Officer unless they are a Canadian citizen or permanent resident as defined in subsection 2(1) of the Immigration and Refugee Protection Act.

(5)A director is not eligible to be the Chief Executive Officer.

(6)The Chief Executive Officer is to be paid the remuneration that is fixed by the Governor in Council and is entitled to be paid reasonable travel and other expenses while performing his or her duties and functions under this Act while absent from his or her ordinary place of work.

22Conflict of Interest Act#

For the purposes of the Conflict of Interest Act, the circumstances in which the Chief Executive Officer is in a conflict of interest while exercising the powers or performing the duties and functions of the Chief Executive Officer include

(b)holding any bond, debenture or other security of a corporation engaged in any such business;

(c)holding other employment that is inconsistent with the Chief Executive Officer’s powers, duties and functions or with any provision of this Act or a regulation made under it; and

(d)holding office as a commissioner or being employed by the Regulator.

23Role of Chief Executive Officer#

(1)The Chief Executive Officer is responsible for the management of the Regulator’s day-to-day business and affairs, including the supervision of its employees and their work. The Chief Executive Officer must not however give directions with respect to any particular decision, order or recommendation that is made by the Commission or a commissioner.

(2)The Chief Executive Officer has the rank and the powers of a deputy head of a department.

(3)If the Chief Executive Officer is absent or unable to act or if there is a vacancy in that office, an executive of the Regulator designated by the Minister acts as Chief Executive Officer.

(4)The executive referred to in subsection (3) is not authorized to act as Chief Executive Officer for a period of more than 90 days without the approval of the Governor in Council.

24Designated officers#

The Chief Executive Officer may designate employees of the Regulator as designated officers.

25For greater certainty#

For greater certainty, the Chief Executive Officer is responsible for the provision of the support services and the facilities that are needed by the Commission to exercise its powers and perform its duties and functions in accordance with the rules that apply to its work.

Commission

Composition and Appointments

26Commission#

(1)The Regulator is to have a Commission that consists of up to seven full-time commissioners. It may also include a complement of part-time commissioners.

(2)At least one of the full-time commissioners must be an Indigenous person.

^note

27Quorum#

Subject to subsection 42(2), sections 45 to 47 and subsection 48(2), three commissioners constitutes a quorum of the Commission.

28Appointment#

(1)The commissioners are to be appointed by the Governor in Council to hold office during good behaviour for a term not exceeding six years.

(2)A commissioner may be reappointed for one or more terms of up to six years each. However, a commissioner is to serve no more than 10 years in office in total.

(3)The Governor in Council may remove a commissioner for cause.

(4)A person is not eligible to be a commissioner unless they are a Canadian citizen or permanent resident as defined in subsection 2(1) of the Immigration and Refugee Protection Act.

(5)A director is not eligible to be a commissioner.

(6)A full-time commissioner is to be paid the remuneration that is fixed by the Governor in Council and is entitled to be paid reasonable travel and other expenses while performing their duties and functions under this Act while absent from their ordinary place of work.

(7)A part-time commissioner is to be paid the remuneration that is fixed by the Governor in Council and is entitled to be paid reasonable travel and other expenses while performing their duties and functions under this Act while absent from their ordinary place of residence.

29Conflict of Interest Act#

For the purposes of the Conflict of Interest Act, the circumstances in which a commissioner is in a conflict of interest while exercising the powers or performing the duties and functions of a commissioner include

(b)holding any bond, debenture or other security of a corporation engaged in any such business;

(c)holding other employment that is inconsistent with their powers, duties and functions or with any provision of this Act or a regulation made under it; and

(d)holding office as the Chief Executive Officer or being employed by the Regulator.

30Vacancy#

A vacancy in the Commission does not impair the right of the remaining commissioners to act.

Powers, Duties and Functions

31Court of record#

(1)The Commission is a court of record and the Regulator’s seal must be judicially noticed as the Commission’s official seal.

(2)The Commission has all the powers, rights and privileges vested in a superior court of record with respect to any matters within its jurisdiction, including the attendance, swearing and examination of witnesses, the production and inspection of documents, the enforcement of its orders and the entry on and inspection of property.

(3)All applications and proceedings before the Commission must be dealt with as expeditiously as the circumstances and procedural fairness and natural justice permit, but, in any case, within any time limit provided for under this Act.

32Jurisdiction#

(1)The Commission has full and exclusive jurisdiction to inquire into, hear and determine any matter if the Commission considers that

(a)a person has failed to do anything that is required to be done under this Act, under a condition of a document of authorization, or under an order made or direction given under this Act;

(b)a person has done or is doing anything that is contrary to or in contravention of this Act, a condition of a document of authorization or an order made or direction given under this Act; or

(c)the circumstances may require the Commission, in the public interest, to make any order or give any direction, leave, sanction or approval that it is authorized to make or give, or that relates to anything that is prohibited, sanctioned or required to be done under this Act, a condition of a document of authorization, or an order made or direction given under this Act.

(2)The Commission may inquire into any accident involving a pipeline, abandoned pipeline, international power line, offshore renewable energy project, offshore power line or other facility the construction or operation of which is regulated by the Regulator and may, at the conclusion of the inquiry, make

(a)findings as to the cause of the accident or factors contributing to it;

(b)recommendations relating to the prevention of future similar accidents; or

(c)any decision or order that the Commission is authorized to make.

(3)For the purposes of this Act, the Commission has full jurisdiction to hear and determine all matters, whether of law or of fact.

33Power to act on own initiative#

The Commission may on its own initiative inquire into, hear and determine any matter that under this Act it may inquire into, hear and determine.

34Orders and prohibitions#

The Commission may

(a)order any person to do, immediately or within or at any specified time and in any specified manner, anything that the person is or may be required to do under this Act, under a condition of a document of authorization, or under any order made or direction given by the Commission or a designated officer under this Act; and

(b)prohibit the doing or continuing of anything that is contrary to this Act, to a condition of the document of authorization or to the order or direction.

35Rules#

The Commission may make rules generally for the carrying out of its work and the management of its internal affairs, including rules respecting

(a)the powers, duties and functions of the commissioners;

(b)its sittings;

(c)its decisions, orders and recommendations; and

(d)its procedures and practices.

36Annual report#

(1)The Commission must, within 120 days after the end of each fiscal year, submit to the Minister a report on the Commission’s activities under this Act for that fiscal year, and the Minister must cause the report to be laid before each House of Parliament on any of the first 15 days on which that House is sitting after the day on which the report is received.

(2)The Commission may submit a report to the Minister on the Commission’s activities if the Commission considers it appropriate to do so.

(3)For the purposes of subsection (1), fiscal year means the period beginning on April 1 in one year and ending on March 31 in the next year.

Lead Commissioner and Deputy Lead Commissioner

37Designation#

The Governor in Council must designate one of the full-time commissioners to hold office as Lead Commissioner and one of the full-time commissioners to hold office as Deputy Lead Commissioner.

38Role of Lead Commissioner#

The Lead Commissioner is responsible for the business and affairs of the Commission and, in particular, is responsible for apportioning the Commission’s work among the commissioners and for establishing panels — of at least three commissioners — to exercise the powers of the Commission and perform its duties and functions in relation to a matter before it.

39Acting Lead Commissioner#

(1)The Deputy Lead Commissioner acts as Lead Commissioner if the Lead Commissioner is absent or unable to act or if there is a vacancy in that office.

(2)The Deputy Lead Commissioner is not authorized to act as Lead Commissioner for a period of more than 90 days without the approval of the Governor in Council.

40Acting Lead and Deputy Lead Commissioners#

(1)If both the Lead Commissioner and Deputy Lead Commissioner are absent or unable to act or if there are vacancies in both of those offices, a commissioner designated by the Minister acts as Lead Commissioner.

(2)The designated commissioner is not authorized to act as Lead Commissioner for a period of more than 90 days without the approval of the Governor in Council.

Instructions and Measures

41Instructions regarding timeliness#

To ensure that an application before the Commission is dealt with in a timely manner, the Lead Commissioner may give instructions to the commissioners authorized to deal with the application respecting the manner in which they are to do so.

42Measures to meet time limit#

(1)If the Lead Commissioner is satisfied that a time limit imposed under any of sections 183, 214 and 262 is not likely to be met in respect of an application, the Lead Commissioner may take any measure that he or she considers appropriate to ensure that the time limit is met, including

(a)removing any or all commissioners from a panel authorized to deal with the application;

(b)authorizing one or more commissioners to deal with the application; and

(c)increasing or decreasing the number of commissioners dealing with the application.

(2)For greater certainty, the power referred to in subsection (1) includes the power to designate a single member, including the Lead Commissioner, as the sole commissioner who is authorized to deal with the application.

43Inconsistencies#

In the event of any inconsistency between a instruction given under section 41 or a measure taken under subsection 42(1) and any rule made under section 35, the instruction or measure prevails to the extent of the inconsistency.

44Non-application#

For greater certainty, sections 41 and 42 do not apply to an application with respect to a designated project, as defined in section 2 of the Impact Assessment Act, that is subject to an impact assessment under that Act.

Authorizations, Panels and Hearings

45Authorization — powers, duties and functions#

(1)The Lead Commissioner may authorize one or more commissioners, either jointly or severally, to exercise any of the powers of the Commission or to perform any of its duties and functions under this Act, except those under sections 95, 183, 184, 186, 195 to 197, subsection 211(3), sections 212 to 214, 231 to 234, 238 to 240, 248, 257, 262, 274, 285 to 287, 289 and under Parts 7 and 8.

(2)A power exercised or a duty or function performed under the authorization is considered to have been exercised or performed by the Commission.

46Authorization — report#

(1)The Lead Commissioner may authorize one or more of the commissioners to report to the Commission on any matter related to the work of the Commission or any application or proceeding before it. For the purpose of making a report related to an application or proceeding before the Commission, the authorized commissioners have all the powers of the Commission with respect to taking evidence or acquiring information.

(2)Despite section 27 of this Act and paragraph 22(2)(a) of the Interpretation Act, three or more commissioners authorized to report in accordance with subsection (1) do not constitute a quorum of the Commission.

(3)A report to the Commission under subsection (1) may be adopted as a decision or order of the Commission or be dealt with as the Commission considers appropriate.

47Replacement of commissioner during hearing#

(1)If a commissioner who is conducting a hearing in accordance with an authorization under section 45 or 46 is unable to act or resigns during the hearing, the Lead Commissioner may authorize another commissioner to continue the hearing and to make the decision or report.

(2)If a commissioner who is conducting a hearing in accordance with an authorization under section 45 or 46 is unable to act or resigns after the conclusion of the hearing but before the decision or report is made, the Lead Commissioner may authorize another commissioner to examine all the evidence presented at the hearing and to make the decision or report on the basis of that evidence.

48Replacement of panel member during hearing#

(1)If a panel is conducting a hearing and a commissioner on the panel is unable to act or resigns during the hearing, the Lead Commissioner may authorize another commissioner to replace that commissioner for the rest of the hearing and to participate in the decision or, as applicable, finalize the report required under subsection 183(1).

(2)If a panel is conducting a hearing and a commissioner on the panel is unable to act or resigns after the conclusion of the hearing but before the decision is made or, as applicable, the report required under subsection 183(1) is finalized, the remaining commissioners may — if unanimous — make the decision or finalize the report as if the commissioner were present and participating.

49Lead Commissioner’s powers#

Nothing in section 47 or subsection 48(1) precludes the Lead Commissioner from taking a measure under subsection 42(1).

50Change in composition of panel#

If the composition of a panel changes in accordance with subsection 42(1) or 48(1),

(a)evidence and representations received by the Commission in relation to the matter being dealt with by the panel before the change are considered to have been received after the change; and

(b)the Commission is bound by every decision made by the Commission in relation to the matter being dealt with by the panel before the change unless the Commission elects to review, vary or rescind it.

51Authorization to continue#

If a commissioner resigns or their term expires, the Lead Commissioner may, on any conditions he or she specifies, authorize the former commissioner to continue to exercise powers and perform duties and functions as a commissioner in a matter to which they were assigned immediately before resigning or the expiry of their term until a final decision or recommendation in the matter is made, and the former commissioner is considered to be a commissioner for the purposes of this Act.

52Public hearings#

(1)A hearing before the Commission with respect to the issuance, suspension or revocation of a certificate under Part 3 or 4 must be public.

(2)Subsection (1) does not apply to a hearing with respect to the suspension or revocation of either of the following certificates if the holder applies for or consents to the suspension or revocation:

(a)a certificate issued in respect of an international or interprovincial power line, whether or not the power line has been brought into commercial operation under the certificate; or

(b)a certificate issued in respect of a pipeline that has not been brought into commercial operation under the certificate.

(3)The Commission may hold a public hearing in respect of any other matter if the Commission considers it appropriate to do so and shall make public its reasons for holding the hearing.

(4)For greater certainty, subsection (1) does not affect the operation of subsection 241(3).

Recommendations

53Reasons#

(1)The Commission must issue written reasons for each recommendation it makes to the Governor in Council or the Minister.

(2)The Regulator must make the recommendations, and the reasons for them, publicly available.

Exercise of Commission’s Powers and Performance of Its Duties and Functions by Designated Officers

54Regulations#

The Governor in Council may make regulations that specify

(a)powers, duties and functions of the Commission that are technical or administrative in nature and may be exercised or performed by designated officers;

(b)any circumstances in which those powers are to be exercised and those duties and functions are to be performed only by designated officers; and

(c)the procedures and practices that apply to the exercise of those powers and the performance of those duties and functions by designated officers.

55Apportionment of work#

The Chief Executive Officer is responsible for apportioning among the designated officers any work related to a power, duty or function that is specified in a regulation made under section 54.

Rights and Interests of the Indigenous Peoples of Canada

56Duty to consider — Commission#

(1)When making a decision, an order or a recommendation under this Act, the Commission must consider any adverse effects that the decision, order or recommendation may have on the rights of the Indigenous peoples of Canada recognized and affirmed by section 35 of the Constitution Act, 1982.

(2)When making a decision or an order under this Act, a designated officer must consider any adverse effects that the decision or order may have on the rights of the Indigenous peoples of Canada recognized and affirmed by section 35 of the Constitution Act, 1982.

57Advisory committee#

(1)The Regulator must establish an advisory committee for the purpose of enhancing the involvement, under Part 2, of the Indigenous peoples of Canada and Indigenous organizations in respect of pipelines, power lines and offshore renewable energy projects as well as abandoned pipelines.

(2)The membership of the advisory committee must include at least

(a)one person recommended by an Indigenous organization that represents the interests of First Nations;

(b)one person recommended by an Indigenous organization that represents the interests of the Inuit; and

(c)one person recommended by an Indigenous organization that represents the interests of the Métis.

58Confidentiality — Indigenous knowledge#

(1)Any Indigenous knowledge that is provided in confidence to the Regulator under this Act or any other Act of Parliament that confers powers, duties or functions on the Regulator is confidential and must not knowingly be, or be permitted to be, disclosed without written consent.

(2)Despite subsection (1), the Indigenous knowledge referred to in that subsection may be disclosed if

(a)it is publicly available;

(b)the disclosure is necessary for the purposes of procedural fairness and natural justice or for use in legal proceedings; or

(c)the disclosure is authorized in the circumstances set out in the regulations made under section 59.

(2.1)Before disclosing Indigenous knowledge under paragraph 2(b) for the purposes of procedural fairness and natural justice, the Regulator must consult the person or entity who provided the Indigenous knowledge and the person or entity to whom it is proposed to be disclosed about the scope of the proposed disclosure and potential conditions under subsection (3).

(3)The Regulator may, having regard to the consultation referred to in subsection (2.1), impose conditions with respect to the disclosure of Indigenous knowledge by any person or entity to whom it is disclosed under paragraph (2)(b) for the purposes of procedural fairness and natural justice.

(4)The person or entity referred to in subsection (3) must comply with any conditions imposed by the Regulator under that subsection.

(5)Despite any other Act of Parliament, no civil or criminal proceedings lie against the Regulator or the Minister — or any person acting on behalf of, or under the direction of, either of them — and no proceedings lie against the Crown or the Regulator, for the disclosure in good faith of any Indigenous knowledge under this Act or any other Act of Parliament that confers powers, duties or functions on the Regulator or for any consequences that flow from that disclosure.

59Regulations#

The Governor in Council may make regulations prescribing the circumstances in which Indigenous knowledge that is provided to the Regulator under this Act in confidence may be disclosed without written consent.

Confidentiality of Information

60Confidentiality#

The Commission or a designated officer may take any measures and make any order that the Commission or designated officer considers necessary to ensure the confidentiality of any information likely to be disclosed in any proceedings under this Act if the Commission or designated officer is satisfied that

(a)disclosure of the information could reasonably be expected to result in a material loss or gain to a person directly affected by the proceedings, or could reasonably be expected to prejudice the person’s competitive position;

(b)the information is financial, commercial, scientific or technical information that is confidential information provided to the Regulator and

(i)the information has been consistently treated as confidential information by a person directly affected by the proceedings, and

(ii)the Commission or designated officer considers that the person’s interest in confidentiality outweighs the public interest in disclosure of the proceedings; or

(c)there is a real and substantial risk that disclosure of the information will compromise the safety and well-being of persons or cause harm to property or the environment.

61Confidentiality#

The Commission or a designated officer may take any measures and make any order that the Commission or designated officer considers necessary to ensure the confidentiality of information that is contained in any order under this Act or that is likely to be disclosed in any proceedings under this Act if the Commission or designated officer is satisfied that

(a)there is a real and substantial risk that disclosure of the information will pose a risk to the security of pipelines, abandoned pipelines, power lines, offshore renewable energy projects, including buildings, structures or systems — including computer or communication systems, or methods employed to protect them — and the need to prevent disclosure of the information outweighs the public interest in disclosure of orders and proceedings; or

(b)there is a real and substantial risk that disclosure of the information will compromise the safety and well-being of persons or cause harm to property or the environment.

62Confidentiality#

The Commission or a designated officer may take any measures and make any orders that are necessary to ensure compliance with section 58 or any regulations referred in subsection 114(3).

Decisions and Orders

General

63Reasons#

(1)The Commission must issue written reasons for each decision or order it makes. A designated officer must do the same for each decision or order they make.

(2)The Regulator must make the decisions and orders, and the reasons for them, publicly available.

(3)This section does not apply to a decision or order that is made only in relation to the internal administrative affairs of the Regulator.

64Enforcement of orders#

(1)A decision or order of the Commission, a designated officer or an inspection officer may be made an order of the Federal Court or of a superior court of a province and may be enforced in the same manner as an order of that court as if it had been an order of that court on the date of the decision or order.

(2)A decision or order of the Commission, a designated officer or an inspection officer may be made an order of a court in accordance with the usual practice and procedure of the court in such matters, if any, or by the filing with the registrar of the court of a copy of the decision certified by an employee of the Regulator who is authorized by the Chief Executive Officer to certify documents for the purposes of this section under the Regulator’s seal.

(3)If a decision or order of the Commission, a designated officer or an inspection officer that has been made an order of a court is rescinded or varied by a subsequent decision or order, the order of the court is vacated and the decision or order of the Commission, a designated officer or an inspection officer as varied may be made an order of the court in accordance with subsection (2).

65Conditions#

A decision or order made by the Commission, a designated officer or an inspection officer under this Act may include any conditions that the Commission, designated officer or inspection officer considers appropriate.

66General or particular application#

The Commission or a designated officer may, when making an order, giving a direction, imposing conditions or doing any other thing in relation to a person, do so either generally or in any particular case or class of cases.

67Coming into force and cessation of effect — Commission#

(1)The Commission may, in issuing, varying or transferring a document of authorization, or when making or varying an order,

(a)specify a day on which the document of authorization or order, or any part of it, comes into force or ceases to have effect; or

(b)impose conditions governing when the document of authorization or order, or any part of it, comes into force or ceases to have effect.

(2)A designated officer or inspection officer may, when making or varying an order,

(a)specify a day on which the order, or any part of it, comes into force or ceases to have effect; or

(b)impose conditions governing when the order, or any part of it, comes into force or ceases to have effect.

(3)Subsection (1) does not apply to a certificate issued under Part 3.

(4)The Commission, a designated officer or inspection officer may, instead of making an order final in the first instance, make an interim order, and may reserve their decision pending further proceedings in connection with any matter.

68Relief#

(1)The Commission may make a decision or order that grants, in whole or in part, any application made to the Commission. The decision or order may also include — in addition to or in lieu of the relief applied for — any other relief that the Commission considers appropriate as if the application had been made for that other relief.

(2)Subsection (1) does not apply to an application made under Part 3 for a certificate.

Reviews and Appeals

69Power to review, vary or rescind — Commission#

(1)The Commission may review, vary or rescind any decision or order it makes and, if applicable, may re-hear any application before deciding it.

(2)A designated officer or inspection officer may vary or rescind any decision or order they make and, if applicable, may re-hear any application before deciding it.

(3)This section does not apply to a decision or order in relation to an operating licence or authorization to which section 382 or 383 applies or in relation to the approval of a development plan under section 5.1 of the Canada Oil and Gas Operations Act.

70Decisions final#

(1)Except as provided for in this Act, every decision or order of the Commission, a designated officer or an inspection officer is final and conclusive.

(2)Any minute or other record of the Commission, a designated officer or an inspection officer or any document issued by one of them, in the form of a decision or order, is considered for the purposes of this section to be a decision or order, as the case may be, of the Commission, the designated officer or the inspection officer.

71Appeal to Commission#

An appeal from a decision or order of a designated officer or an inspection officer may be brought before the Commission and the Commission may dismiss or allow the appeal and vary or rescind the decision or order.

72Appeal to Federal Court of Appeal#

(1)An appeal from a decision or order of the Commission on any question of law or of jurisdiction may be brought in the Federal Court of Appeal with the leave of that Court.

(2)Leave to appeal must be applied for within 30 days after the date of the decision or order appealed from or within any additional time that a judge of the Court grants in exceptional circumstances.

(3)An appeal must be brought within 60 days after the day on which leave to appeal is granted.

(4)The Regulator is entitled to be heard on an application for leave to appeal and at any stage of an appeal.

(5)In any appeal under this section, costs may not be awarded against any of the commissioners.

(6)For greater certainty, a report submitted by the Commission under section 183 or 184 — or under subsection 51(1) the Impact Assessment Act — is not a decision or order of the Commission for the purposes of this section and neither is any part of the report.

Alternative Dispute Resolution

73Alternative dispute resolution#

(1)If all the parties to a dispute that is directly related to a matter under this Act consent, the Regulator must provide or cause to be provided an alternative dispute resolution process for the dispute.

(2)The results of the alternative dispute resolution process are not binding.

(3)The Commission may take the results of the alternative dispute resolution process into account when making a decision, order or recommendation and may refer to them in the decision, order or recommendation.

(4)A designated officer may take the results of the alternative dispute resolution process into account when making a decision or order and may refer to them in the decision or order.

(5)The Regulator may make the results of the alternative dispute resolution process public with the consent of the parties.

Public Engagement

74Public engagement#

The Regulator must establish processes that the Regulator considers appropriate to engage meaningfully with the public — and, in particular, the Indigenous peoples of Canada and Indigenous organizations — when public hearings are held under section 52 or subsection 241(3).

75Participant funding program#

For the purposes of this Act, the Regulator must establish a participant funding program to facilitate the participation of the public — and, in particular, the Indigenous peoples of Canada and Indigenous organizations — in public hearings under section 52 or subsection 241(3) and any steps leading to those hearings.

Collaborative Processes and Ministerial Arrangements

76Collaborative processes#

The Regulator may enter into arrangements with any government or Indigenous organization to establish collaborative processes.

77Ministerial arrangements#

(1)If regulations are made under section 78, the Minister may, in accordance with those regulations, enter into arrangements with Indigenous governing bodies for carrying out the purposes of this Act and may authorize any Indigenous governing body with whom an arrangement is entered into to exercise the powers or perform the duties and functions under this Act that are specified in the arrangement.

(2)Within 30 days after the day on which the Minister enters into an arrangement, the Regulator must publish it on the Regulator’s website.

78Regulations#

The Governor in Council may make regulations respecting the Minister’s power to enter into arrangements under section 77, including regulations

(a)respecting how they are to be entered into;

(b)respecting the circumstances under which they may be entered into;

(c)respecting their contents; and

(d)varying or excluding any provision of this Act or a regulation made under it as that provision applies to the subject matter of the arrangement.

79Inconsistencies#

In the event of an inconsistency between an arrangement referred to in section 76 and an arrangement referred to in section 77, the arrangement referred to in section 77 prevails to the extent of the inconsistency.

Advice

80Study and review#

The Regulator must study and keep under review matters relating to

(a)the exploration for, and the production, recovery, manufacture, processing, transmission, transportation, distribution, sale, purchase, lease, exchange and alienation of energy and sources of energy in and outside Canada; and

(b)the safety and security of regulated facilities and abandoned facilities.

81Reports and recommendations to Minister#

The Regulator may submit to the Minister reports on the matters referred to in section 80 from time to time and may recommend to the Minister any measures within Parliament’s jurisdiction that the Regulator considers to be necessary or in the public interest for

(a)the control, supervision, conservation, use, marketing and development of energy and sources of energy; and

(b)the safety and security of regulated facilities and abandoned facilities.

82Recommendations on cooperative measures#

The Regulator may — with respect to energy matters, sources of energy and the safety and security of regulated facilities and abandoned facilities — recommend to the Minister any measures that the Regulator considers necessary or appropriate for cooperation with governmental or other agencies in or outside Canada.

83Request of Minister#

(1)The Regulator must — with respect to energy matters, sources of energy and the safety and security of regulated facilities and abandoned facilities — provide to the Minister any advice that the Minister requests, including advice relating to the export pricing of oil and gas, and prepare any study or report that the Minister requests.

(2)The Regulator must not publish any advice, study or report referred to in subsection (1) without the Minister’s consent.

84Other requests#

The Regulator may, on request, provide advice about energy matters, sources of energy and the safety and security of regulated facilities and abandoned facilities to

(a)ministers, officers and employees of any government department or ministry, whether federal, provincial or territorial; and

(b)members, officers and employees of any government agency, whether federal, provincial or territorial.

85Powers — Inquiries Act#

For the purposes of sections 80 to 84, the Regulator has all the powers of commissioners under Part I of the Inquiries Act.

86Use of government agencies#

In exercising its powers and performing its duties and functions under sections 80 to 84, the Regulator must, to the extent that it is possible to do so, utilize agencies of the Government of Canada to obtain technical, economic and statistical information and advice.

Cost Recovery

87Regulations#

(1)The Regulator may, with the approval of the Treasury Board, make regulations

(a)providing for fees, levies or charges that are payable for the purpose of recovering all or a portion of any costs that the Regulator considers to be attributable to the carrying out of its mandate, including costs related to applications that are denied or withdrawn; and

(b)providing for the manner of calculating those fees, levies or charges and their payment to the Regulator.

(2)A regulation made under subsection (1) may specify the rate of interest or the manner of calculating the rate of interest payable on any fee, levy or charge that is not paid on or before the date on which it is due and may specify the time from which interest is payable.

(3)Fees, levies or charges imposed under this section and any interest payable on them constitute a debt to Her Majesty in right of Canada and may be recovered as such in any court of competent jurisdiction.

88Service Fees Act#

The Service Fees Act does not apply to the fees, levies and charges referred to in section 87.

General

89Definition of certified document#

(1)In this section, certified document means a document purporting to be certified by an employee of the Regulator who is authorized by the Chief Executive Officer to certify documents for the purposes of this section and sealed with the Regulator’s seal.

(2)In any action or proceedings, a certified document that states that it is a true copy of all or any part of another document — including a minute, decision, document of authorization, order, instruction, book of reference, book entry, plan or drawing — is, without proof of the signature or of the official character of the person appearing to have signed the certified document, evidence

(a)of the original document, or the part of it, that it purports to be a copy of;

(b)that the original document, or the part of it, was made, given or issued under the authority of or deposited with the person named in it and was made, given, issued or deposited at the time stated in the certified copy, if a time is stated in it; and

(c)that the original document, or the part of it, was signed, certified, attested or executed by the persons and in the manner shown in the certified copy.

(3)In any action or proceedings, a certified document that states that a valid and subsisting document has or has not been issued by the Regulator to a person named in the certified document is evidence of the facts stated in it without proof of the signature or official character of the person appearing to have signed the document and without further proof.

90Compensation#

(1)Directors and commissioners are considered to be employees for the purposes of the Government Employees Compensation Act and to be employed in the federal public administration for the purposes of any regulations made under section 9 of the Aeronautics Act.

(2)For greater certainty, the Chief Executive Officer and employees of the Regulator are employees for the purposes of the Government Employees Compensation Act and are employed in the federal public administration for the purposes of any regulations made under section 9 of the Aeronautics Act.

91Public Service Superannuation Act#

(1)Full-time commissioners are considered to be persons employed in the public service for the purposes of the Public Service Superannuation Act.

(2)For greater certainty, directors and part-time commissioners are not persons employed in the public service for the purposes of the Public Service Superannuation Act.

(3)For greater certainty, the Chief Executive Officer and employees of the Regulator are persons employed in the public service for the purposes of the Public Service Superannuation Act.

92Statutory Instruments Act#

An order made or a direction given by the Commission, a designated officer or an inspection officer under this Act is not a statutory instrument as defined in subsection 2(1) of the Statutory Instruments Act if

(a)the order or direction applies to a single person or entity;

(b)the order or direction applies with respect to a single regulated facility or abandoned facility; or

(c)the Commission, designated officer or inspection officer considers that the order or direction is required immediately for the safety or security of persons, regulated facilities or abandoned facilities or for the protection of property or the environment.

Part 2 · Safety, Security and Protection of Persons, Property and Environment

Definitions

93Definitions#

The following definitions apply in this Part.

compensable damage means the costs, losses and damages for which the Tribunal may award compensation. (dommages indemnisables)

holder means

(a)the holder of a certificate or permit issued under Part 3 or 4 in respect of a regulated facility;

(b)a person, company or other entity that is the subject of an order made under section 214 in respect of a pipeline;

(c)a person, company or other entity authorized to operate a pipeline under a Special Act;

(d)a company that has been granted leave under Part 3 to abandon a pipeline;

(e)a person, company or other entity that has been granted leave under Part 4 to abandon an international power line or interprovincial power line; or

(f)the holder of an authorization issued under Part 5 in respect of a work or activity. (titulaire)

Tribunal means a pipeline claims tribunal established under subsection 143(1). (Tribunal)

General Duty

94Reasonable care#

The holder must take all reasonable care to ensure the safety and security of persons, the safety and security of regulated facilities and abandoned facilities and the protection of property and the environment.

Regulation of Construction, Operation and Abandonment

95Orders#

(1)To promote the safety and security of the operation of a regulated facility, the Commission may, by order, direct the holder to repair, reconstruct or alter part of the regulated facility and direct that, until the work is done, that part of the regulated facility not be used or be used in accordance with any conditions specified by the Commission.

(2)The Commission may, by order, direct any of the following persons or bodies to take measures in respect of a regulated facility, an abandoned facility or any work or activity authorized under Part 5 that the Commission considers necessary for the safety and security of persons, the safety and security of the regulated facility or abandoned facility or the protection of property or the environment:

(a)an Indigenous governing body;

(b)the holder or any other person;

(c)the federal government or a federal Crown corporation;

(d)a provincial government or a provincial Crown corporation;

(e)a local authority.

(3)If a person or body does not comply with an order under subsection (2) or an order under section 109 in relation to an abandoned facility or to the abandonment of a pipeline, an offshore power line or any facility, equipment or system that is related to an offshore renewable energy project, the Commission may

(a)take any action or measure the Commission considers necessary;

(b)authorize an officer or employee, or class of officers or employees, of the Regulator to take the action or measure; or

(c)authorize a third party to take the action or measure.

(4)No action lies against the Regulator or an officer or employee of the Regulator or against a servant of the Crown, as those terms are defined in section 2 of the Crown Liability and Proceedings Act, in respect of any act or omission committed in taking an action or measure referred to in subsection (3).

(5)A third party that is authorized under subsection (3) to take an action or measure is not liable in respect of any act or omission committed in good faith in taking the action or measure.

96Regulations#

The Regulator may, with the approval of the Governor in Council, make regulations

(a)respecting the design, construction and operation of pipelines, international power lines and interprovincial power lines designated by an order made under section 261;

(b)respecting the abandonment of pipelines;

(c)respecting surveillance or monitoring measures that, in relation to the activities referred to in paragraphs (a) and (b), are for the safety and security of persons and for the protection of property and the environment;

(d)respecting abandoned facilities;

(e)requiring holders to have management systems in place and to comply with them; and

(f)providing for the elements to be included in those management systems — including human or organizational factors — and respecting any criteria to be met by those management systems.

97Exemption orders#

The Commission may make orders exempting holders, on any conditions that the Commission considers appropriate, from any or all provisions of a regulation made under section 96 or 312, in order to, among other things, ensure the safety and security of persons, the safety and security of regulated facilities or abandoned facilities or the protection of property or the environment.

98Regulations#

Without limiting the scope of the regulations that the Regulator may make under section 96, the Governor in Council may make regulations

(a)specifying requirements with respect to the monitoring of regulated facilities; and

(b)respecting the actions or measures to be taken in preparation for, or in the case of, an unintended or uncontrolled release of oil, gas or any other commodity from a pipeline.

99Offence and punishment#

(1)Every person who contravenes an order made under subsection 95(1) or (2) or a regulation made under section 96 is guilty of an offence and liable

(a)on conviction on indictment, to a fine of not more than $1,000,000 or to imprisonment for a term of not more than five years or to both; or

(b)on summary conviction, to a fine of not more than $100,000 or to imprisonment for a term of not more than one year or to both.

(2)Subsections 379(2) to (6) apply, with any modifications that the circumstances require, to an offence referred to in subsection (1).

Security of Regulated Facilities

100Security regulations#

(1)The Regulator may, with the approval of the Governor in Council, make regulations respecting the security of regulated facilities, including regulations respecting standards, plans and audits that are related to the security of regulated facilities and respecting cybersecurity matters that are related to regulated facilities and may, for that purpose, define what constitutes cybersecurity.

(2)Every person who contravenes any of the regulations made under subsection (1) is guilty of an offence and liable

(a)on conviction on indictment, to a fine of not more than $500,000 or to imprisonment for a term of not more than five years or to both; or

(b)on summary conviction, to a fine of not more than $100,000 or to imprisonment for a term of not more than one year or to both.

(3)Subsections 379(2) to (6) apply, with any modifications that the circumstances require, to the offence referred to in subsection (2).

101Abandoned facilities#

(1)A person must not make contact with, alter or remove an abandoned facility unless they are authorized to do so in an order made under subsection (2).

(2)A designated officer may make an order, subject to any conditions that the designated officer considers appropriate, authorizing a person to make contact with, alter or remove an abandoned facility.

(3)The Regulator may make regulations respecting the circumstances in which or conditions under which an order under subsection (2) is not necessary and the Commission may make orders respecting the circumstances in which or conditions under which an order under subsection (2) is not necessary.

Administration and Enforcement

102Designation of inspection officers#

(1)The Chief Executive Officer may designate any person or member of any class of persons as an inspection officer to administer and enforce this Part, Parts 3 to 5 and section 335.

(2)The purposes for which an inspection officer may be designated are:

(a)to ensure the safety and security of persons;

(b)to ensure the safety and security of regulated facilities and abandoned facilities; and

(c)to ensure the protection of property and the environment.

(3)The Regulator must provide every inspection officer designated under subsection (1) with a certificate of authority. That inspection officer must, if so requested, produce the certificate to the occupant or person in charge of a place referred to in subsection 103(1).

103Authority to enter#

(1)An inspection officer may, for a purpose related to verifying compliance or preventing non-compliance with this Part, any of Parts 3 to 5 or section 335, or for a purpose referred to in subsection 102(2), enter a place in which the officer has reasonable grounds to believe that

(a)there is anything to which this Part or any of Parts 3 to 5 applies, including a regulated facility or an abandoned facility;

(b)there has been carried on, is being carried on or is likely to be carried on any activity in respect of which this Part, any of Parts 3 to 5 or section 335 applies; or

(c)there is any book, record, electronic data or other document relating to the application of this Part, any of Parts 3 to 5 or section 335.

(2)The inspection officer may, for that purpose,

(a)examine anything in the place;

(b)use any means of communication in the place or cause it to be used;

(c)use any computer system in the place, or cause it to be used, to examine data contained in or available to it;

(d)prepare a document, or cause one to be prepared, based on the data;

(e)make copies of any information contained in any books, records, electronic data or other documents or in computer systems and use any copying equipment in the place, or cause it to be used to make copies of the information;

(f)conduct tests or analyses of anything in the place;

(g)take measurements or samples of anything in the place;

(h)take photographs or make recordings or sketches of anything in the place;

(i)remove anything from the place for examination or copying;

(j)direct any person to put any machinery, vehicle or equipment in the place into operation or to cease operating it;

(k)prohibit or limit access to all or part of the place or to anything in the place;

(l)direct the owner or person in charge of the place or a person at the place to establish their identity to the inspection officer’s satisfaction or to stop or start an activity; or

(m)direct the owner or a person having possession, care or control of anything in the place to not move it, or to restrict its movement, for as long as the inspection officer considers necessary.

(3)For greater certainty, the powers set out in subsection (2) include the power to conduct a compliance audit.

(4)The owner or person in charge of the place and every person in the place must give all assistance that is reasonably required to enable the inspection officer to perform their duties and functions under this section and must provide any documents or information, and access to any data, that are reasonably required for that purpose.

(5)The inspection officer may be accompanied by any other person that they believe is necessary to help them perform their duties and functions under this section, and the person is not liable for doing so.

(6)The inspection officer and any person accompanying them may enter private property — other than a dwelling-house or living quarters — and pass through it in order to gain entry to a place referred to in subsection (1) and the person is not liable for doing so. For greater certainty, no person has a right to object to that use of the property and no warrant is required for the entry, unless the property is a dwelling-house or living quarters.

104Warrant to enter dwelling-house or living quarters#

(1)If the place is a dwelling-house or living quarters, the inspection officer may enter it without the occupant’s consent only under the authority of a warrant issued under subsection (2).

(2)On ex parte application, a justice of the peace may issue a warrant authorizing the inspection officer to enter a dwelling-house or living quarters, subject to any conditions specified in the warrant, if the justice is satisfied by information on oath that

(a)the dwelling-house or living quarters is a place referred to in subsection 103(1);

(b)entry to the dwelling-house or living quarters is necessary for a purpose related to verifying compliance or preventing non-compliance with this Part, any of Parts 3 to 5 or section 335, or for a purpose referred to in subsection 102(2); and

(c)entry was refused by the occupant or there are reasonable grounds to believe that entry will be refused by, or that consent to entry cannot be obtained from, the occupant.

(3)In executing a warrant to enter a dwelling-house or living quarters, an inspection officer may use force only if the use of force has been specifically authorized in the warrant and they are accompanied by a peace officer.

105Immunity#

No action or other proceeding of a civil nature lies against an inspection officer in respect of anything that is done or omitted to be done in good faith while exercising their powers or performing their duties and functions under this Part.

106Prohibition — obstruction#

It is prohibited to obstruct or hinder an inspection officer who is exercising their powers or performing their duties and functions under this Part.

107Prohibition — false statements or information#

It is prohibited to knowingly make a false or misleading statement or knowingly provide false or misleading information in connection with any matter under this Part, any of Parts 3 to 5 or section 335 to any inspection officer who is exercising their powers or performing their duties and functions under this Part.

108Notice of non-compliance#

(1)If an inspection officer has reasonable grounds to believe that a person has contravened this Part, any of Parts 3 to 5 or section 335, he or she may issue a notice of non-compliance to the person.

(2)A notice must be made in writing and must set out

(a)the name of the person to whom the notice is directed;

(b)the provision of this Part, any of Parts 3 to 5 or section 335 or any of their regulations that is alleged to have been contravened, the order or decision that is alleged to have been contravened, or the condition of any certificate, order or decision, permit or authorization, leave or exemption that is alleged to have been contravened;

(c)the relevant facts surrounding the alleged contravention; and

(d)the period within which the person may provide comments in response to the notice.

109Grounds for making order#

(1)If an inspection officer who is expressly authorized by the Chief Executive Officer to make orders under this section has reasonable grounds to believe that there is or is likely to be a contravention of this Part or any of Parts 3 to 5 or section 335, or for a purpose referred to in subsection 102(2), the inspection officer may, by order, direct a person to

(a)stop doing something that is in contravention of this Part or any of Parts 3 to 5 or section 335 or cause it to be stopped;

(b)take any measure that is necessary in order to comply with this Part or any of Parts 3 to 5 or section 335 or mitigate the effects of non-compliance;

(c)stop doing something that may cause a hazard to the safety or security of persons, or damage to property or the environment or cause it to be stopped; or

(d)take any measure that is necessary to prevent or mitigate the hazard to the safety or security of persons or damage to property or the environment.

(2)The order may require work associated with a facility, including a regulated facility, abandoned facility or ground disturbance to be suspended until the hazardous or detrimental situation has been remedied to the satisfaction of an inspection officer or the order is stayed or rescinded.

(3)An inspection officer who makes an order under this section must, as soon as possible,

(a)give written notice of the order to the person to whom it is directed, including the terms of the order and a statement of the reasons for the order; and

(b)report the circumstances and terms of the order to the Commission.

110Effect of appeal#

For greater certainty, an appeal before the Commission from an order made under section 109 does not operate as a stay of the order, but the Commission may grant a stay pending the outcome of the appeal.

111Information confidential#

An inspection officer must not disclose to any person any information regarding any secret process or trade secret obtained while performing duties and functions under this Part, except for the purposes of this Part or as required by law.

112Offence and punishment — duty to assist and orders#

(1)Every person who contravenes subsection 103(4) or fails to comply with an order under section 109 is guilty of an offence and is liable

(a)on conviction on indictment, to a fine of not more than $1,000,000 or to imprisonment for a term of not more than five years or to both; or

(b)on summary conviction, to a fine of not more than $100,000 or to imprisonment for a term of not more than one year or to both.

(2)A person must not be found guilty of an offence for failing to comply with an order under section 109 unless the person was given written notice of the order in accordance with paragraph 109(3)(a).

(3)Every person who contravenes section 106 is guilty of an offence punishable on summary conviction and is liable, for a first offence, to a fine of not more than $100,000 and, for any subsequent offence, to a fine of not more than $300,000.

(4)Subsections 379(2) to (6) apply, with any modifications that the circumstances require, in respect of an offence under subsections (1) and (3).

(5)Every person who contravenes section 107 is guilty of an offence punishable on summary conviction and is liable to a fine of not more than $300,000.

(6)Subsections 379(3) to (6) apply, with any modifications that the circumstances require, in respect of an offence under subsection (5).

Privilege

113Definitions#

(1)The following definitions apply in this section.

coroner includes any medical examiner or other person carrying out the duties and functions of a coroner. (coroner)

recording means the whole or any part of either a recording of voice communications originating from, or received on or in, a regulated facility, or a video recording of the activities of the operating personnel of the regulated facility, which recording of voice communications or video recording is made, using recording equipment to which the operating personnel does not have access, in a place where operations of the facility are carried out and includes a transcript or substantial summary of such a recording. (enregistrement)

(2)Every recording is privileged and, except as provided by this section, a person, including any person to whom access is provided under this section, must not

(a)knowingly communicate a recording or permit it to be communicated to any person; or

(b)be required to produce a recording or give evidence relating to it in any legal, disciplinary or other proceedings.

(3)Any recording that relates to an accident that is the subject of an inquiry under subsection 32(2) must be released to the Regulator on request for the purposes of the inquiry.

(4)The Regulator may make any use of any recording obtained under this Act that it considers necessary for the purposes of the inquiry under subsection 32(2), but, subject to subsection (5), must not knowingly communicate or permit to be communicated to anyone any portion of it that is unrelated to the inquiry.

(5)The Regulator must make available any recording obtained under this Act to

(a)a coroner who requests access to it for the purpose of an investigation that the coroner is conducting;

(b)any person carrying out an inquiry under subsection 32(2); or

(c)any person carrying out a coordinated investigation referred to in the Canadian Transportation Accident Investigation and Safety Board Act.

(6)Despite any other provision of this section, if, in any proceedings before a court or coroner, a request for the production and discovery of a recording is made, the court or coroner must cause notice of the request to be given to the Regulator, if the Regulator is not a party to the proceedings and, in camera, examine the recording and give the Regulator a reasonable opportunity to make representations with respect to it. If the court or coroner concludes in the circumstances of the case that the public interest in the proper administration of justice outweighs in importance the privilege attached to the recording by virtue of this section, the court or coroner must order the production and discovery of the recording, subject to any restrictions or conditions that the court or coroner considers appropriate, and may require any person to give evidence that relates to the recording.

(7)A recording is not to be used against agents or employees who are directly or indirectly involved in the operation of a regulated facility in disciplinary proceedings, in proceedings relating to their capacity or competence to perform their functions, or in legal or other proceedings.

(8)For the purposes of subsection (6), court includes any person appointed or designated to conduct a public inquiry into a pipeline occurrence, within the meaning of section 2 of the Canadian Transportation Accident Investigation and Safety Board Act, under the Inquiries Act.

114Voluntary reporting#

(1)The Regulator may, subject to the approval of the Governor in Council, make regulations for the establishment and administration of systems for the voluntary reporting to the Regulator of alleged non-compliance with this Act.

(2)The Regulator may, subject to this section, make any use of any report made to it in accordance with regulations made under subsection (1) that it considers necessary for the purposes of this Act.

(3)Regulations made under subsection (1) may include rules for the protection of the identity of persons who make a report.

(4)Where the identity of a person who has made a report to the Regulator in accordance with regulations made under subsection (1) is protected by rules referred to in subsection (3), information that could reasonably be expected to reveal that identity is privileged, and a person must not

(a)knowingly communicate it or permit it to be communicated to any person; or

(b)be required to produce it or give evidence relating to it in any legal, disciplinary or other proceedings.

(5)A report made to the Regulator under a voluntary reporting system established by regulations made under subsection (1) must not be used against the person who made the report in any legal, disciplinary or other proceedings if the person’s identity is protected by rules referred to in subsection (3).

Administrative Monetary Penalties

Regulator’s Powers

115Regulations#

(1)The Regulator may, with the approval of the Governor in Council, make regulations

(a)designating as a violation that may be proceeded with in accordance with this Act

(i)the contravention of any specified provision of this Act or the regulations,

(ii)the contravention of any order or decision, or of any order or decision of any specified class of orders or decisions, made under this Act, or

(iii)the failure to comply with any condition of

(A)any certificate, licence, permit or authorization, or

(B)any leave or exemption granted under this Act;

(b)respecting the determination of or the method of determining the amount payable as the penalty, which may be different for individuals and other persons, for each violation; and

(c)respecting the service of documents required or authorized under section 120, 125 or 128, including the manner and proof of service and the circumstances under which documents are considered to be served.

(2)The amount that may be determined under any regulations made under paragraph (1)(b) as the penalty for a violation must not be more than $25,000, in the case of an individual, and $100,000, in the case of any other person.

116Powers of Regulator#

(1)The Regulator may

(a)establish the form of notices of violation; and

(b)establish, in respect of each violation, a short-form description to be used in notices of violation.

(1.1)The Commission may designate persons or classes of persons to conduct reviews under section 128.

(2)The Chief Executive Officer may designate persons or classes of persons who are authorized to issue notices of violation.

Violations

117Commission of violation#

(1)Every person who contravenes or fails to comply with a provision, order, decision or condition designated under paragraph 115(1)(a) commits a violation and is liable to a penalty of an amount to be determined in accordance with the regulations.

(2)The purpose of the penalty is to promote compliance with this Act and not to punish.

118Liability of directors, officers, etc.#

If a corporation commits a violation, any director, officer or agent or mandatary of the corporation who directed, authorized, assented to, acquiesced in or participated in the commission of the violation is a party to the violation and is liable to a penalty of an amount to be determined in accordance with the regulations, whether or not the corporation has been proceeded against in accordance with this Act.

119Proof of violation#

In any proceedings under this Act against a person in relation to a violation, it is sufficient proof of the violation to establish that it was committed by an employee or agent or mandatary of the person, whether or not the employee or agent or mandatary is identified or proceeded against in accordance with this Act.

120Issuance and service of notice of violation#

(1)If a person designated under subsection 116(2) has reasonable grounds to believe that a person has committed a violation, the designated person may issue a notice of violation and cause it to be served on the person.

(2)The notice of violation must

(a)name the person that is believed to have committed the violation;

(b)set out the relevant facts surrounding the violation;

(c)set out the amount of the penalty for the violation;

(d)inform the person of their right to request a review with respect to the violation or the amount of the penalty, and of the period referred to in section 125 within which that right must be exercised;

(e)inform the person of the manner of paying the penalty set out in the notice; and

(f)inform the person that, if they do not pay the penalty or exercise their right referred to in paragraph (d), they will be considered to have committed the violation and that they are liable to the penalty set out in the notice.

Rules about Violations

121Certain defences not available#

(1)A person named in a notice of violation does not have a defence by reason that the person

(a)exercised due diligence to prevent the commission of the violation; or

(b)reasonably and honestly believed in the existence of facts that, if true, would exonerate the person.

(2)Every rule and principle of the common law that makes any circumstance a justification or excuse in relation to a charge for an offence under this Act applies in respect of a violation to the extent that it is not inconsistent with this Act.

122Continuing violation#

A violation that is committed or continued on more than one day constitutes a separate violation for each day on which it is committed or continued.

123Violation or offence#

(1)Proceeding with any act or omission as a violation under this Act precludes proceeding with it as an offence under this Act, and proceeding with it as an offence under this Act precludes proceeding with it as a violation under this Act.

(2)For greater certainty, a violation is not an offence and, accordingly, section 126 of the Criminal Code does not apply in respect of a violation.

124Limitation period or prescription#

No notice of violation in respect of a violation may be issued more than two years from the day on which the subject matter of the violation arises.

Reviews

125Right to request review#

A person who is served with a notice of violation may, within 30 days after the day on which it is served, or within any longer period that the Commission allows, make a request to the Commission for a review of the amount of the penalty or the facts of the violation, or both.

126Correction or cancellation of notice of violation#

At any time before a request for a review in respect of a notice of violation is received by the Commission, a person designated under subsection 116(2) may cancel the notice of violation or correct an error in it.

127Review#

(1)On receipt of a request made under section 125, the Commission must conduct the review or cause the review to be conducted by a person designated under subsection 116(1.1).

(2)The Commission must conduct the review if the notice of violation was issued by a person designated under subsection 116(1.1).

128Object of review#

(1)The Commission or the person conducting the review must determine, as the case may be, whether the amount of the penalty for the violation was determined in accordance with the regulations or whether the person committed the violation, or both.

(2)The Commission or the person conducting the review must make a determination in writing and cause the person who requested the review to be served with a copy of the determination and the reasons for it.

(3)If the Commission or the person conducting the review determines that the amount of the penalty for the violation was not determined in accordance with the regulations, the Commission or the person, as the case may be, must correct the amount of the penalty.

(4)If the Commission or the person conducting the review determines that the person who requested the review committed the violation, the person who requested the review is liable to the penalty as set out in the determination.

(5)Despite subsection 69(1) and (2), a determination made under this section is final and binding and, except for judicial review under the Federal Courts Act, is not subject to appeal or to review by any court.

(6)Despite section 28 of the Federal Courts Act, the Federal Court has exclusive original jurisdiction to hear and determine an application for judicial review of a determination made under this section by the Commission.

129Burden of proof#

If the facts of a violation are reviewed, the person who issued the notice of violation must establish, on a balance of probabilities, that the person named in it committed the violation identified in it.

Responsibility

130Payment#

If a person pays the penalty set out in a notice of violation, the person is considered to have committed the violation and proceedings in respect of it are ended.

131Failure to act#

A person that neither pays the penalty imposed under this Act nor requests a review within the period referred to in section 125 is considered to have committed the violation and is liable to the penalty.

Recovery of Penalties

132Debts to Her Majesty#

(1)A penalty constitutes a debt due to Her Majesty in right of Canada and may be recovered as such in the Federal Court or any other court of competent jurisdiction.

(2)Proceedings to recover the debt may be instituted no later than the fifth anniversary of the day on which the debt becomes payable.

133Certificate#

(1)The Commission may issue a certificate of non-payment certifying the unpaid amount of any debt referred to in subsection 132(1).

(2)Registration in the Federal Court or in any other court of competent jurisdiction of a certificate of non-payment issued under subsection (1) has the same effect as a judgment of that court for a debt of the amount specified in the certificate and all related registration costs.

General

134Admissibility of documents#

In the absence of evidence to the contrary, a document that appears to be a notice issued under subsection 120(1) is presumed to be authentic and is proof of its contents in any proceeding in respect of a violation.

135Publication#

The Regulator may make public the nature of a violation, the name of the person who committed it and the amount of the penalty.

Polluter Pays Principle

136Purpose#

The purpose of sections 137 to 142 is to reinforce the “polluter pays” principle by, among other things, imposing financial requirements on any company that is authorized under this Act to construct or operate a pipeline.

Liability

137Recovery of loss, damage, costs, expenses#

(1)If an unintended or uncontrolled release from a pipeline of oil, gas or any other commodity occurs, all persons to whose fault or negligence the release is attributable or who are by law responsible for others to whose fault or negligence the release is attributable are jointly and severally, or solidarily, liable for

(a)all actual loss or damage incurred by any person as a result of the release or as a result of any action or measure taken in relation to the release;

(b)the costs and expenses reasonably incurred by Her Majesty in right of Canada or a province, any Indigenous governing body or any other person in taking any action or measure in relation to the release; and

(c)all loss of non-use value relating to a public resource that is affected by the release or by any action or measure taken in relation to the release.

(2)The persons who are at fault or negligent or who are by law responsible for persons who are at fault or negligent are liable to make contributions to each other or to indemnify each other in the degree to which they are respectively at fault or negligent.

(3)The company that is authorized under this Act to construct or operate the pipeline from which the release occurred is jointly and severally, or solidarily, liable with any contractor — to whose fault or negligence the release is attributable — that performs work for the company for the actual loss or damage, the costs and expenses and the loss of non-use value, described in paragraphs (1)(a) to (c).

(4)If an unintended or uncontrolled release of oil, gas or any other commodity from a pipeline occurs, the company that is authorized under this Act to construct or operate that pipeline is liable, without proof of fault or negligence, up to the applicable limit of liability that is set out in subsection (5) for the actual loss or damage, the costs and expenses and the loss of non-use value, described in paragraphs (1)(a) to (c).

(5)For the purposes of subsection (4), the limits of liability are,

(a)in respect of a company that is authorized under this Act to construct or operate one or more pipelines that individually or in the aggregate have the capacity to transport at least 250,000 barrels of oil per day, $1 billion or, if a greater amount is prescribed by the regulations, that amount; and

(b)in respect of a company that is authorized under this Act to construct or operate any other pipeline, the amount prescribed by the regulations.

(6)The Governor in Council may, by regulation, on the Minister’s recommendation,

(a)prescribe an amount greater than $1 billion for the purposes of paragraph (5)(a); and

(b)prescribe an amount for the purposes of paragraph (5)(b) in respect of a company or class of companies.

(7)If a company is liable under subsection (4) with respect to a release and it is also liable under any other Act, without proof of fault or negligence, for that release, the company is liable up to the greater of the limit of liability referred to in subsection (5) that applies to it and the limit up to which it is liable under the other Act. If the other Act does not set out a limit of liability, the limits referred to in subsection (5) do not apply.

(8)The costs and expenses that are recoverable by Her Majesty in right of Canada or a province under this section are not recoverable under subsection 42(1) of the Fisheries Act.

(9)Only Her Majesty in right of Canada or a province may institute proceedings to recover a loss of non-use value described in paragraph (1)(c).

(10)All claims under this section may be sued for and recovered in any court of competent jurisdiction in Canada. Claims in favour of persons incurring actual loss or damage described in paragraph (1)(a) are to be distributed pro rata and rank in priority over claims for costs and expenses described in paragraph (1)(b), and the claims for costs and expenses rank in priority over claims to recover a loss of non-use value described in paragraph (1)(c).

(11)Subject to subsections (8) and (9), nothing in this section suspends or limits

(a)any legal liability or remedy for an act or omission by reason only that the act or omission is an offence under this Act or gives rise to liability under this section;

(b)any recourse, indemnity or relief available at law to a person who is liable under this section against any other person; or

(c)the operation of any applicable law or rule of law that is consistent with this section.

(12)Proceedings in respect of claims under this section may be instituted no later than the third anniversary of the day on which the loss, damage or costs and expenses were incurred but in no case after the sixth anniversary of the day on which the release occurred.

Financial Requirements

138Financial resources#

(1)A company that is authorized under this Act to construct or operate a pipeline must maintain the amount of financial resources necessary to pay the amount of the limit of liability referred to in subsection 137(5) that applies to it or, if the Commission specifies a greater amount, that amount.

(2)Subject to the regulations made under subsection (7), the Commission may, by order, direct a company, either individually or as a member of a class of companies authorized under this Act to construct or operate a pipeline, to maintain the amount of financial resources that is referred to in subsection (1) of the types of financial resources that the Commission specifies, including types that must be readily accessible to the company and, if the Commission specifies types of financial resources, it may specify the amount that the company is required to maintain of each type.

(3)At the Commission’s request, the company must satisfy the Commission that it meets the requirement to maintain the amount of financial resources referred to in subsection (1) and that it complies with any order made under subsection (2). The Commission may consider, among other things, the company’s financial statements, letters of credit, guarantees, bonds or suretyships and insurance.

(4)The Commission may, by order, specify an amount for the purposes of subsection (1).

(5)When the Commission specifies an amount for the purposes of subsection (1), it is not required to consider any potential loss of non-use value relating to a public resource that is affected by an unintended or uncontrolled release of oil, gas or any other commodity from a pipeline or by any action or measure taken in relation to the release.

(6)A company that is authorized under this Act to construct or operate a pipeline must maintain the amount of financial resources referred to in subsection (1) and must comply with any order made under subsection (2) and any regulation made under subsection (7) only until it obtains leave from the Commission to abandon the operation of its pipeline.

(7)The Governor in Council may, on the Minister’s recommendation, make regulations

(a)providing for the types of financial resources from which the Commission may choose if it specifies types of financial resources under subsection (2), including those from which the Commission may choose if it specifies types of financial resources that must be readily accessible to the company; and

(b)respecting the amount of financial resources that must be readily accessible to a company individually or as a member of a class of companies.

139Pooled fund#

(1)Subject to subsection (2), a company may meet all or a portion of its financial requirements under subsection 138(1) by participating in a pooled fund that is established by companies authorized under this Act to construct or operate a pipeline, that meets the requirements established by the regulations and from which the Regulator may withdraw any amount under subsection 141(6).

(2)If a company meets only a portion of its financial requirements by participating in a pooled fund and the amount of funds in the pooled fund to which it has access — in the event that there is an unintended or uncontrolled release of oil, gas or any other commodity from a pipeline that the company is authorized under this Act to construct or operate — is less than the amount of financial resources referred to in subsection 138(1), the company must maintain an amount equal to the difference between those amounts.

(3)The Governor in Council may, on the Minister’s recommendation, make regulations respecting a pooled fund referred to in subsection (1), including regulations specifying

(a)the minimum amount of the pooled fund and the minimum amount of the pooled fund that must be readily accessible;

(b)any condition that a company must meet in order to participate in the pooled fund, including the minimum amount that a company must contribute to the pooled fund;

(c)the maximum amount that a company may withdraw from the pooled fund; and

(d)the maximum portion of a company’s financial requirements that may be met by participating in the pooled fund.

Reimbursement by Company

140Reimbursement — measures taken by government institution#

If an unintended or uncontrolled release of oil, gas or any other commodity from a pipeline occurs, the Commission may, by order, direct the company that is authorized under this Act to construct or operate that pipeline to reimburse any federal, provincial or municipal government institution, any Indigenous governing body or any person for the costs and expenses that the Commission considers reasonable that they incurred in taking any reasonable action or measure in relation to the release, even if the costs and expenses are more than the amount of the limit of liability referred to in subsection 137(5) that applies to that company.

Designated Company

141Designation#

(1)The Governor in Council may, on the Minister’s recommendation, designate any company that is authorized under this Act to construct or operate a pipeline from which an unintended or uncontrolled release of oil, gas or any other commodity has occurred if

(a)the Governor in Council considers that the company does not have or is not likely to have the financial resources necessary to pay

(i)the costs and expenses incurred, or to be incurred, in taking any action or measure in relation to the release, and

(ii)the compensation that might be awarded for compensable damage caused by the release; or

(b)the company does not comply with an order of the Commission with respect to any action or measure to be taken in relation to the release.

(2)If the Governor in Council designates a company under subsection (1), the Regulator or any of its officers or employees — or class of officers or employees — that the Regulator authorizes may take any action or measure that they consider necessary in relation to the release or they may authorize a third party to take any action or measure.

(3)No action lies against the Regulator or an officer or employee of the Regulator or against a servant of the Crown, as those terms are defined in section 2 of the Crown Liability and Proceedings Act, in respect of any act or omission committed in taking any action or measure in relation to the release.

(4)A third party that is authorized under subsection (2) to take any action or measure referred to in that subsection is not liable in respect of any act or omission committed in good faith in taking the action or measure.

(5)If the Governor in Council designates a company under subsection (1), the Regulator may reimburse any federal, provincial or municipal government institution, any Indigenous governing body or any person the costs and expenses that the Regulator considers reasonable that they incurred in taking any reasonable action or measure in relation to the release.

(6)If the Governor in Council designates a company under subsection (1) and that company participates in a pooled fund described in subsection 139(1), the Regulator may withdraw any amount from the pooled fund that is necessary to pay the costs and expenses incurred in taking any action or measure under subsection (2) and to reimburse the costs and expenses referred to in subsection (5).

142Regulations imposing fees, etc.#

(1)Subject to the Treasury Board’s approval, the Regulator must, for the purposes of recovering the amounts paid out of the Consolidated Revenue Fund under subsection 171(1), even if those amounts are more than the amount of the limit of liability referred to in subsection 137(5) that applies to a designated company, make regulations

(a)imposing fees, levies or charges on a designated company and, if the amount recovered from the designated company is not sufficient to recover the amounts paid out, imposing fees, levies or charges on companies that are authorized under this Act to construct or operate pipelines that transport the same commodity or a commodity of the same class as the commodity that was released from a pipeline constructed or operated by the designated company; and

(b)prescribing the manner of calculating the fees, levies and charges and their payment to the Regulator.

(2)A regulation made under subsection (1) may specify the rate of interest or the manner of calculating the rate of interest payable by a company either individually or as a member of a class of companies on any fee, levy or charge not paid by the company on or before the date it is due and the time from which interest is payable.

(3)Fees, levies or charges imposed under this section and any interest payable on them constitute a debt that is due to Her Majesty in right of Canada and may be recovered as such in any court of competent jurisdiction.

Pipeline Claims Tribunal

Establishment

143Establishment of Tribunal#

(1)The Governor in Council may, by order, after a designation is made under subsection 141(1), establish a pipeline claims tribunal whose purpose is to examine and adjudicate, as expeditiously as the circumstances and considerations of fairness permit, the claims for compensation made under this Act in relation to the release that occurred from the designated company’s pipeline and specify the location of its head office.

(2)However, the Governor in Council may establish a pipeline claims tribunal only if, having regard to the extent of the compensable damage caused by the release, the estimated cost of paying compensation in respect of that damage and the advantages of having claims dealt with by an administrative tribunal, the Governor in Council considers it in the public interest to do so.

(3)A Tribunal must exercise its powers and perform its duties and functions with respect to claims for compensation in an equitable manner, without discrimination on the basis of nationality or residence.

144Jurisdiction of courts#

For greater certainty, nothing in sections 143 and 145 to 173 is to be construed as restricting the jurisdiction of a court of competent jurisdiction with respect to the release referred to in subsection 143(1).

145Public notice#

Immediately after a Tribunal is established, the Regulator must notify the public, in a manner that the Tribunal considers appropriate, of the Tribunal’s purpose and the manner in which to obtain information on making a claim for compensation and must publish in the Canada Gazette a notice setting out that purpose and the manner in which to obtain that information.

146Members of Tribunal#

(1)A Tribunal is to have at least three members, each of whom is to be appointed by the Governor in Council, on the Minister’s recommendation, to hold office for a term of not more than five years.

(2)The members of the Tribunal are to be appointed from among persons who are retired judges of a superior court or members of at least 10 years standing at either the bar of a province or the Chambre des notaires du Québec.

(3)If a member is absent or becomes incapacitated, resigns or dies, the Governor in Council may appoint a replacement for that member.

(4)The Regulator must pay the members the remuneration and expenses that are fixed by the Governor in Council.

147Tenure#

(1)Each member of a Tribunal is to hold office during good behaviour, but may be removed by the Governor in Council for cause.

(2)The Governor in Council may terminate the appointment of the members of the Tribunal if the Governor in Council is satisfied that the Tribunal has no work to carry out.

148Immunity#

No action lies against any member of a Tribunal for anything done or omitted to be done by the member in the exercise or purported exercise of a power or in the performance or purported performance of a duty or function of the Tribunal.

Chairperson and Staff

149Chairperson#

(1)The Governor in Council must, on the Minister’s recommendation, designate one of the members of a Tribunal to be the Chairperson of the Tribunal.

(2)The Chairperson apportions work among the members of the Tribunal and, if he or she establishes a panel, assigns members to the panel and designates a member to preside over it. The Chairperson also has supervision over and direction of the work of the Tribunal’s staff.

150Staff#

A Tribunal may employ the staff that it considers necessary for the proper exercise of its powers and performance of its duties and functions, prescribe their duties and, subject to any regulations, the conditions of their employment and, with the Treasury Board’s approval, fix their remuneration.

151Technical or specialized knowledge#

A Tribunal may engage, on a temporary basis, the services of counsel or notaries and other persons having technical or specialized knowledge to assist it in its work, prescribe their duties and the conditions of their employment and, with the Treasury Board’s approval, fix their remuneration and expenses.

152Payment by Regulator#

The Regulator must pay the remuneration and expenses referred to in sections 150 and 151.

153Staff and facilities#

The Regulator must provide a Tribunal with any professional, technical, secretarial, clerical and other assistance and any facilities and supplies that the Regulator considers necessary to enable the Tribunal to exercise its powers and perform its duties and functions.

Tribunal’s Powers, Duties and Functions

154Hearings#

A Tribunal must conduct its hearings in Canada on the dates and at the times and locations that it considers appropriate.

155Powers#

(1)A Tribunal has all the powers, rights and privileges vested in a superior court with respect to any matters within its jurisdiction, including the attendance, swearing and examination of witnesses, the production and inspection of documents and the enforcement of its orders.

(2)The Tribunal is not, in the hearing of any matter, bound by the legal rules of evidence. However, it must not receive as evidence anything that would be inadmissible in a court by reason of any privilege under the law of evidence.

156Examinations#

For the purposes of adjudicating a claim for compensation or an application for reconsideration, a Tribunal may require a claimant or applicant to undergo medical or other examinations that the Tribunal considers reasonably necessary.

157Frivolous or vexatious claims#

A Tribunal may refuse to hear any claim for compensation or application for reconsideration that it considers to be frivolous or vexatious.

158Written submissions#

A Tribunal may examine and adjudicate any claim for compensation or application for reconsideration based only on written submissions.

159Rules#

A Tribunal may make the rules that it considers necessary for the exercise of its powers and the performance of its duties and functions, including rules respecting

(a)procedures for making a claim for compensation and those for making an application for reconsideration;

(b)the information that must be included with a claim for compensation or an application for reconsideration;

(c)the conduct of its examination of claims for compensation and applications for reconsideration, including the conduct of its hearings;

(d)the form and manner in which evidence must be submitted; and

(e)a quorum.

Claims for Compensation

160Application#

(1)Any person, partnership or unincorporated organization or federal, provincial or municipal government or any Indigenous governing body may, within the prescribed period, make to a Tribunal a claim for compensation for compensable damage caused by the release that occurred from a designated company’s pipeline.

(2)As soon as feasible after the day on which the claim is made, the Chairperson must

(a)assign the claim to the Tribunal;

(b)establish a panel of the Tribunal and assign the claim to that panel; or

(c)assign the claim to an existing panel.

(3)The Chairperson must notify the claimant, the designated company and the Regulator that the claim has been assigned.

(4)A panel has the powers, other than the power described in section 159, and the duties and functions of the Tribunal with respect to any claim for compensation that is before that panel.

161Public hearings#

Tribunal hearings are to be held in public. However, a Tribunal may hold all or part of a hearing in private if it considers that

(a)a public hearing would not be in the public interest;

(b)a person’s privacy interest outweighs the principle that hearings be open to the public; or

(c)confidential business information may be disclosed.

162Interim award of compensation#

If it is authorized to do so by the regulations, a Tribunal may award interim compensation in respect of a claim for compensation. If the Tribunal awards interim compensation, it must advise the Regulator, by notice, of the amount awarded.

163Determining compensation#

(1)A Tribunal must decide whether to award a claimant compensation for the compensable damage that is referred to in their claim for compensation. If it decides to award compensation, it must, having regard to any other amount of compensation that the claimant has been paid for that damage, determine the amount of compensation in accordance with the regulations and, if it is authorized by the regulations to award costs with respect to a claimant’s claim for compensation and it decides to do so, it must determine the amount of those costs.

(2)The Tribunal must advise the claimant and the designated company, by notice, of its decision with respect to the claim for compensation and, if compensation or costs are awarded, it must also advise the Regulator by that notice.

(3)The notice must indicate

(a)the amount of any compensation or costs determined under subsection (1);

(b)any reduction in the amount of compensation provided for by the regulations; and

(c)any amounts that have already been paid to the claimant for the compensable damage that is referred to in their claim.

Payment by Regulator

164Amount to be paid#

(1)The Regulator must, subject to section 165 and within the prescribed period, pay to the claimant

(a)the amount of interim compensation indicated in the notice referred to in section 162;

(b)subject to the regulations, the amount of compensation and costs indicated in the notice referred to in subsection 163(2) and any interest payable; and

(c)if the amount of compensation and costs indicated in the notice referred to in subsection 169(2) is more than the amount paid by the Regulator under paragraph (b), subject to the regulations, an amount equal to the difference between those amounts.

(2)If the regulations provide for interest with respect to a claim for compensation, the interest accrues at the rate prescribed under the Income Tax Act for amounts payable by the Minister of National Revenue as refunds of overpayments of tax under that Act that are in effect from time to time.

(3)If it is authorized to do so by the regulations, a Tribunal may, in accordance with the regulations, award fees and travel expenses. If the Tribunal awards fees and travel expenses, it must advise the Regulator, by notice, of the amount awarded and the Regulator must pay that amount.

165Total amount#

The total amount that the Regulator pays under subsection 164(1) must not be more than the portion established by the Minister of Finance under subsection 171(2).

166Recovery of overpayment#

The following are debts that are due to Her Majesty in right of Canada and may be recovered in accordance with section 155 of the Financial Administration Act:

(a)any overpayment to a claimant by the Regulator under subsection 164(1);

(b)any amount paid to a claimant under paragraph 164(1)(b) in respect of a Tribunal’s decision that is rescinded; and

(c)if the amount paid by the Regulator under paragraph 164(1)(b) in respect of a Tribunal’s decision that is amended under subsection 169(1) is more than the amount of compensation and costs indicated in the notice referred to in subsection 169(2), the amount that is equal to the difference between those amounts.

167Report#

Within 90 days after the day on which a Tribunal is established, and every 90 days after that, the Regulator must submit to the Minister and the Minister of Finance a report with respect to the amount of compensation and costs awarded by the Tribunal and the amount that the Regulator has paid under subsections 164(1) and (3).

Reconsideration

168Reconsideration#

(1)A Tribunal may, on its own motion or on the application of a claimant, reconsider its decision with respect to a claim for compensation and may either confirm the decision or amend or rescind the decision if the Chairperson considers that because of extraordinary factors a reconsideration of the decision outweighs the public interest in the finality of decisions of the Tribunal.

(2)The Chairperson must notify the applicant, the designated company and the Regulator that the Tribunal will reconsider its decision.

169Determining compensation#

(1)If, on reconsideration, a Tribunal decides to amend its decision, it must decide whether to award the claimant compensation for the compensable damage that is referred to in their claim for compensation. If it decides to award compensation, it must, having regard to any other amount of compensation that the applicant has been paid for that damage, determine the amount of compensation in accordance with the regulations and, if it is authorized by the regulations to award costs with respect to a claimant’s claim for compensation or the reconsideration of that claim and it decides to do so, it must determine the amount of those costs.

(2)The Tribunal must advise the applicant, the designated company and the Regulator, by notice, of its decision with respect to the application for reconsideration.

(3)If the decision is amended, the notice must indicate

(a)the amount of any compensation or costs determined under subsection (1);

(b)any reduction in the amount of compensation provided for by the regulations; and

(c)any amounts that have already been paid with respect to the claim in accordance with this Act.

Judicial Review

170Grounds#

Subject to section 168, every decision of a Tribunal is final and conclusive and is not to be questioned or reviewed in any court except in accordance with the Federal Courts Act on the grounds referred to in paragraph 18.1(4)(a), (b) or (e) of that Act.

Appropriation and Repayment

171Amount paid out of Fund#

(1)There may be paid out of the Consolidated Revenue Fund, from time to time, any amount established by the Minister of Finance, on the Minister’s recommendation,

(a)to pay the costs and expenses incurred in taking any actions or measures referred to in subsection 141(2);

(b)to reimburse the costs and expenses referred to in subsection 141(5);

(c)to pay the costs of publishing the notice referred to in section 145;

(d)to pay the remuneration and expenses of a Tribunal’s members;

(e)to pay the remuneration of a Tribunal’s staff;

(f)to pay the remuneration and expenses of the counsel or notaries and other persons referred to in section 151;

(g)to pay the costs of providing a Tribunal with any of the assistance, facilities or supplies referred to in section 153;

(h)to pay the amounts that the Regulator must pay under subsection 164(1); and

(i)to pay the fees and travel expenses referred to in subsection 164(3).

(2)The Minister of Finance may, by order, after consultation with the Minister, establish the portion of the amount paid out under subsection (1) that may be used solely to pay the amounts referred to in paragraph (1)(h).

(3)The Minister must, without delay, publish in the Canada Gazette a notice setting out the portion established by the Minister of Finance.

(4)The Regulator must deposit the amounts paid out under subsection (1) to the credit of the Receiver General in accordance with the conditions established by the Minister of Finance.

Regulations

172Regulations — Tribunal#

The Governor in Council may make regulations respecting a Tribunal, including regulations

(a)prescribing the conditions of appointment of its members;

(b)respecting conflicts of interest;

(c)prescribing the Chairperson’s powers, duties and functions;

(d)respecting the absence or incapacity of the Chairperson or another member;

(e)respecting the effects of replacing a member of the Tribunal, including on

(i)evidence and representations received by the Tribunal, or a panel of the Tribunal on which the member was sitting, before the replacement was appointed, and

(ii)decisions made by the Tribunal or the panel before the replacement was appointed;

(f)respecting the hiring and conditions of employment of the Tribunal’s staff; and

(g)generally, to enable the Tribunal to exercise its powers and perform it duties and functions.

173Regulations — compensation#

(1)The Governor in Council may make regulations establishing the costs, losses and damages for which a Tribunal may award compensation and regulations respecting that compensation, including regulations

(a)prescribing the period within which claims for compensation or applications for reconsideration must be made to the Tribunal;

(b)authorizing the Tribunal to award interim compensation in respect of a claim for compensation;

(c)authorizing the Tribunal to award fees and travel expenses and costs with respect to claims for compensation and the reconsideration of those claims, as well as providing to whom the fees and travel expenses and costs may be awarded;

(d)establishing an order of priority among classes of compensable damage for the purpose of awarding compensation;

(e)providing for the reduction of the amount that the Regulator pays under subsection 164(1) and the criteria for such a reduction, including in respect of a class of compensable damage;

(f)fixing a maximum amount of compensation that may be awarded to a claimant, including in respect of a class of compensable damage;

(g)prescribing the period for the purposes of subsection 164(1);

(h)providing that a payment of any amount that the Regulator pays under subsection 164(1) be postponed;

(i)providing for the payment of any amount that the Regulator pays under subsection 164(1) in a lump sum or in payments of equal or different amounts over a period of time;

(j)providing for interest with respect to a claim for compensation or an application for reconsideration, as well as the period during which interest accrues; and

(k)generally, for carrying out the purposes of this section and sections 143 to 172.

(2)A regulation made under subsection (1) is not to provide that the loss of non-use value in relation to damages to the environment caused by the release is a loss for which the Tribunal may award compensation.

Sentencing Respecting Releases from Pipelines

174Sentencing principles#

(1)In addition to the principles and factors that the court is otherwise required to consider, including those set out in sections 718.1 to 718.21 of the Criminal Code, the court must consider the following principles when sentencing a person who is found guilty of an offence under this Act in relation to an actual or potential unintended or uncontrolled release of oil, gas or any other commodity from a pipeline:

(a)the amount of the fine should be increased to account for each aggravating factor associated with the offence, including the aggravating factors set out in subsection (2); and

(b)the amount of the fine should reflect the gravity of each aggravating factor associated with the offence.

(2)The aggravating factors the court must consider are the following:

(a)the offence caused harm or risk of harm to human health or safety;

(b)the offence caused damage or risk of damage to the environment or environmental quality;

(c)the offence caused damage or risk of damage to any unique, rare, particularly important or vulnerable component of the environment;

(d)the damage or harm caused by the offence is extensive, persistent or irreparable;

(e)the offender committed the offence intentionally or recklessly;

(f)by committing the offence or failing to take action to prevent its commission, the offender increased or intended to increase their revenue or decreased or intended to decrease their costs;

(g)the offender has a history of non-compliance with federal or provincial legislation that relates to safety or environmental conservation or protection; and

(h)after the commission of the offence, the offender

(i)attempted to conceal its commission,

(ii)failed to take prompt action to prevent, mitigate or remediate its effects, or

(iii)failed to take prompt action to reduce the risk of committing similar offences.

(3)The absence of an aggravating factor set out in subsection (2) is not a mitigating factor.

(4)For the purposes of paragraphs (2)(b) to (d), damage includes loss of use value and non-use value.

(5)If the court is satisfied of the existence of one or more of the aggravating factors set out in subsection (2) but decides not to increase the amount of the fine because of that factor, the court must give reasons for that decision.

175Orders of court#

(1)If a person is found guilty of an offence under this Act in relation to an actual or potential unintended or uncontrolled release of oil, gas or any other commodity from a pipeline, the court may, having regard to the nature of the offence and the circumstances surrounding its commission, in addition to any other punishment that may be imposed under this Act, make an order that has any or all of the following effects:

(a)prohibiting the offender from committing an act or engaging in an activity that may, in the opinion of the court, result in the continuation or repetition of the offence;

(b)directing the offender to take any action that the court considers appropriate to remedy or avoid any harm to the environment that results or may result from the act or omission that constituted the offence;

(c)directing the offender to carry out environmental effects monitoring in the manner established by the Commission or directing the offender to pay, in the manner specified by the court, an amount of money for the purposes of environmental effects monitoring;

(d)directing the offender to make changes to their environmental protection program that the Commission considers appropriate;

(e)directing the offender to have an environmental audit conducted by a person of a class and at the times specified by the Commission and directing the offender to take the measures that it considers appropriate to remedy any deficiencies revealed during the audit;

(f)directing the offender to pay to Her Majesty in right of Canada, for the purpose of promoting the conservation, protection or restoration of the environment, or to pay into the Environmental Damages Fund — an account in the accounts of Canada — an amount of money that the court considers appropriate;

(g)directing the offender to publish, in the manner specified by the court, the facts relating to the commission of the offence and the details of the punishment imposed, including any orders made under this subsection;

(h)directing the offender to notify, at the offender’s own cost and in the manner specified by the court, any person aggrieved or affected by the offender’s conduct of the facts relating to the commission of the offence and of the details of the punishment imposed, including any orders made under this subsection;

(i)directing the offender to post a bond or provide a suretyship or pay an amount of money into court that the court considers appropriate to ensure that the offender complies with all or part of any prohibition, direction, requirement or condition that is specified in the order;

(j)directing the offender to perform community service, subject to any reasonable conditions that may be imposed by the court;

(k)directing the offender to pay, in the manner prescribed by the court, an amount of money to environmental, health or other groups to assist in their work;

(l)directing the offender to pay, in the manner prescribed by the court, an amount of money to an educational institution including for scholarships for students enrolled in studies related to the environment;

(m)requiring the offender to comply with any conditions that the court considers appropriate in the circumstances for securing the offender’s good conduct and for preventing the offender from repeating the same offence or committing another offence under this Act; and

(n)prohibiting the offender from applying for any new authorization under this Act during any period that the court considers appropriate.

(2)An order made under subsection (1) comes into force on the day on which the order is made or on any other day that the court may determine, but must not continue in force for more than three years after that day.

(3)If an offender does not comply with an order requiring the publication of facts relating to the offence and the details of the punishment, the Regulator may, in the manner that the court directed the offender, publish those facts and details and recover the costs of publication from the offender.

(4)If the Regulator incurs publication costs under subsection (3), the costs constitute a debt due to Her Majesty in right of Canada and may be recovered as such in any court of competent jurisdiction.

176Variation of sanctions#

(1)Subject to subsection (2), if a court has made, in relation to an offender, an order under section 175, the court may, on application by the offender or the Regulator, require the offender to appear before it and, after hearing the offender and the Regulator, may vary the order in one or more of the following ways that the court considers appropriate because of a change in the offender’s circumstances since the order was made:

(a)by making changes to any prohibition, direction, requirement or condition that is specified in the order or by extending the time during which the order is to remain in force for any period that is not more than one year; or

(b)by decreasing the time during which the order is to remain in force or by relieving the offender, either absolutely or partially or for any period, of compliance with any condition that is specified in the order.

(2)Before varying the order under subsection (1), the court may direct that notice be given to any persons that the court considers to be interested and may hear any of those persons.

177Subsequent applications with leave#

If an application made under subsection 176(1) in relation to an offender has been heard by a court, no other application is to be made under section 176 in relation to the offender except with leave of the court.

178Recovery of fines and amounts#

If a person is found guilty of an offence under this Act and a fine that is imposed is not paid when required, or if a court orders an offender to pay an amount under subsection 175(1) or 176(1) and the amount is not paid, the prosecutor may, by filing the conviction or order, as the case may be, enter as a judgment the amount of the fine or the amount ordered to be paid, and costs, if any, in any court of competent jurisdiction in Canada, and the judgment is enforceable against the person in the same manner as if it were a judgment against them in that court in civil proceedings.

Part 3 · Pipelines

General

179Companies only#

(1)A person, other than a company, must not construct, operate or abandon a pipeline.

(2)Nothing in this section is to be construed to prohibit or prevent any person from operating or improving a pipeline constructed before October 1, 1953, but every pipeline constructed before that date must be operated in accordance with this Act.

180Operation of pipeline#

(1)A company must not operate a pipeline unless

(a)a certificate is in force with respect to that pipeline; and

(b)the company has been granted leave under this Part to open the pipeline.

(2)A company must not operate a pipeline other than in accordance with the conditions of the certificate or orders issued with respect to that pipeline.

181Limitations#

(1)A company must not, unless the Commission has, by order, granted it leave to do so,

(a)sell or otherwise transfer, or lease, in whole or in part, its pipeline or its abandoned pipeline to any person;

(b)purchase or otherwise acquire, or lease, in whole or in part, any pipeline or abandoned pipeline from any person; or

(c)if it is authorized to construct or operate a pipeline or if it owns an abandoned pipeline, amalgamate with any other company.

(2)For the purposes of paragraph (1)(b), pipeline includes a pipeline as defined in section 2 or any other pipeline.

Certificates

182Application for certificate#

(1)A company that submits to the Regulator an application for a certificate in respect of a pipeline must file a map with it that includes any details that the Commission may require and shows the general location of the pipeline and any plans, specifications and other information that the Commission may require.

(2)The company must file a copy of the application and map with the attorney general of each province to which the application relates, and the Commission must require that notice of the application be given by publication in newspapers or otherwise.

183Report#

(1)If the Commission considers that an application for a certificate in respect of a pipeline is complete, it must prepare and submit to the Minister, and make public, a report setting out

(a)its recommendation as to whether or not the certificate should be issued for all or any part of the pipeline, taking into account whether the pipeline is and will be required by the present and future public convenience and necessity, and the reasons for that recommendation; and

(b)regardless of the recommendation that the Commission makes, all the conditions that it considers necessary or in the public interest to which the certificate would be subject if the Governor in Council were to direct that the certificate be issued.

(2)The Commission must make its recommendation taking into account — in light of, among other things, any Indigenous knowledge that has been provided to the Commission and scientific information and data — all considerations that appear to it to be relevant and directly related to the pipeline, including

(a)the environmental effects, including any cumulative environmental effects;

(b)the safety and security of persons and the protection of property and the environment;

(c)the health, social and economic effects, including with respect to the intersection of sex and gender with other identity factors;

(d)the interests and concerns of the Indigenous peoples of Canada, including with respect to their current use of lands and resources for traditional purposes;

(e)the effects on the rights of the Indigenous peoples of Canada recognized and affirmed by section 35 of the Constitution Act, 1982;

(f)the availability of oil, gas or any other commodity to the pipeline;

(g)the existence of actual or potential markets;

(h)the economic feasibility of the pipeline;

(i)the financial resources, financial responsibility and financial structure of the applicant, the methods of financing the pipeline and the extent to which Canadians will have an opportunity to participate in the financing, engineering and construction of the pipeline;

(j)the extent to which the effects of the pipeline hinder or contribute to the Government of Canada’s ability to meet its environmental obligations and its commitments in respect of climate change;

(k)any relevant assessment referred to in section 92, 93 or 95 of the Impact Assessment Act; and

(l)any public interest that the Commission considers may be affected by the issuance of the certificate or the dismissal of the application.

(3)Any member of the public may, in a manner specified by the Commission, make representations with respect to an application for a certificate.

(4)The report must be submitted to the Minister within the time limit specified by the Lead Commissioner. The specified time limit must be no longer than 450 days after the day on which the applicant has, in the Commission’s opinion, provided a complete application.

(5)In the circumstances prescribed by regulations made under section 216, the Lead Commissioner may specify that a period is to be excluded from the calculation of the time limit within which the Commission must submit the report. The Lead Commissioner must provide reasons for doing so.

(6)The Minister may, by order, grant one or more extensions of the time limit specified under subsection (4).

(7)The Commission must make public the time limit specified under subsection (4), any period that is excluded under subsection (5), the reasons for the exclusion and any extension of time granted under subsection (6).

(8)To ensure that the report is prepared and submitted in a timely manner, the Minister may, by order, direct the Lead Commissioner to

(a)specify under subsection (4) a time limit that is the same as the one specified by the Minister in the order;

(b)give an instruction under section 41, or take any measure under subsection 42(1), that is set out in the order; or

(c)give an instruction under section 41 that addresses a matter set out in the order.

(9)Orders made under subsection (6) are binding on the Commission and those made under subsection (8) are binding on the Lead Commissioner.

(10)Each order made under subsection (8) must be published in the Canada Gazette within 15 days after the day on which it is made.

(11)Subject to sections 184 and 186, the report is final and conclusive.

184Order to reconsider#

(1)After the Commission has submitted its report under section 183, the Governor in Council may, by order, refer the recommendation, or any of the conditions, set out in the report back to the Commission for reconsideration.

(2)The order may direct the Commission to conduct the reconsideration taking into account any factor specified in the order and it may specify a time limit within which the Commission must complete its reconsideration.

(3)The order is binding on the Commission.

(4)The order must be published in the Canada Gazette within 15 days after the day on which it is made.

(5)The Commission must, within the time limit specified in the order, if one was specified,

(a)reconsider its recommendation or any condition referred back to it, as the case may be;

(b)prepare and submit to the Minister a report on its reconsideration; and

(c)make the report public.

(6)In the reconsideration report, the Commission must

(a)if its recommendation was referred back, either confirm the recommendation or set out a different recommendation; and

(b)if a condition was referred back, confirm the condition, state that it no longer supports it or replace it with another one.

(7)Regardless of what the Commission sets out in the reconsideration report, the Commission must set out in the report all the conditions, that it considers necessary or in the public interest, to which the certificate would be subject if the Governor in Council were to direct that the certificate be issued.

(8)Subject to subsection (9) and section 186, the Commission’s reconsideration report is final and conclusive.

(9)After the Commission has submitted its report under subsection (5), the Governor in Council may, by order, refer the Commission’s recommendation, or any of the conditions, set out in the report back to the Commission for reconsideration. If it does so, subsections (2) to (8) apply.

185Impact Assessment Act#

If the application for a certificate relates to a designated project, as defined in section 2 of the Impact Assessment Act, that is subject to an impact assessment under that Act,

(a)the Commission’s powers, duties and functions under section 182, subsections 183(1) and (2) and section 184 are to be exercised and performed by a review panel established under subsection 47(1) of that Act;

(b)in subsections 183(1) and 184(5), a reference to the Minister is to be read as a reference to the Minister and the Minister of the Environment;

(c)the report referred to in subsection 183(1) is to be submitted within the time limit established under section 37.1 of that Act;

(d)subsections 183(3) to (10) do not apply; and

(e)subsection 189(1) applies with respect to the review panel.

186Decision by Governor in Council#

(1)After a report has been submitted under section 183 or 184, the Governor in Council must,

(a)in the case of a recommendation that a certificate be issued,

(i)refer the recommendation, or any of the conditions, set out in the report back for reconsideration under subsection 184(1) or (9), as the case may be,

(ii)direct the Commission, by order, to issue a certificate in respect of the pipeline or any part of it and to make the certificate subject to the conditions set out in the report, or

(iii)direct the Commission, by order, to dismiss the application for a certificate; or

(b)in the case of a recommendation that a certificate not be issued,

(i)refer the recommendation, or any of the conditions, set out in the report back for reconsideration under subsection 184(1) or (9), as the case may be, or

(ii)direct the Commission, by order, to dismiss the application for a certificate.

(2)An order made under subsection (1) must set out the reasons for making the order. The reasons must demonstrate that the Governor in Council took into account all the considerations referred to in subsection 183(2) that appeared to the Governor in Council to be relevant and directly related to the pipeline.

(3)An order made under subsection (1) must be made within 90 days after the day on which the report under section 183 is submitted or, in the case of a designated project, as defined in section 2 of the Impact Assessment Act, 90 days after the day on which the recommendations referred to in paragraph 37.1(1)(b) of that Act are posted on the Internet site referred to in section 105 of that Act. The Governor in Council may, on the recommendation of the Minister, by order, grant one or more extensions of the time limit. If the Governor in Council makes an order under subsection 184(1) or (9), the period that is taken to complete the reconsideration and to submit the report is to be excluded from the calculation of the time limit.

(4)Every order made under subsection (1) or (3) is final and conclusive.

(5)The Commission must comply with an order made under subsection (1) within seven days after the day on which it is made.

(6)An order made under subsection (1) must be published in the Canada Gazette within 15 days after the day on which it is made.

187Compliance#

Every certificate is subject to the condition that the provisions of this Act and of the regulations, as well as every order made under the authority of this Act, must be complied with.

188Application for judicial review#

(1)Judicial review by the Federal Court of Appeal with respect to any order made under subsection 186(1) is commenced by making an application for leave to that Court.

(2)The following rules govern an application under subsection (1):

(a)the application must be filed in the Registry of the Federal Court of Appeal within 15 days after the day on which the order is published in the Canada Gazette;

(b)a judge of that Court may, for special reasons, allow an extended time for filing and serving the application or notice; and

(c)a judge of that Court must dispose of the application without delay and in a summary way and, unless a judge of that Court directs otherwise, without personal appearance.

189Continuation of jurisdiction and obligation#

(1)A failure by the Commission to comply with subsection 183(1) or 184(5) within the required time limit does not affect its jurisdiction to deal with the application or its obligation to submit the report, and anything done by it in relation to the application remains valid.

(2)Despite subsection 186(3), the Governor in Council may make an order under subsection 186(1) after the expiry of the time limit for doing so.

190Variation or transfer of certificates#

(1)The Commission may, on application or on its own initiative, vary a certificate issued under this Part and may, on application, transfer a certificate issued under this Part. However, the Minister may, if he or she considers that it is in the public interest to do so, direct the Commission to make a recommendation to the Governor in Council with respect to the variation or transfer instead.

(2)A recommendation that a certificate be varied or transferred must set out any conditions that the Commission would impose under subsection (3) if the Commission were to vary or transfer the certificate.

(3)In varying or transferring a certificate, the Commission may impose — in addition to or in lieu of any conditions to which the certificate was previously subject — any conditions that the Commission considers necessary or appropriate in order to give effect to the purposes and provisions of this Act.

191Recommendation to vary or transfer#

If the Commission recommends to the Governor in Council that a certificate be varied or transferred, the Governor in Council may, by order, direct the Commission

(a)to vary or transfer the certificate as recommended;

(b)not to vary or transfer the certificate; or

(c)to reconsider the matter.

192Recommendation not to vary or transfer#

If the Commission recommends to the Governor in Council that a certificate not be varied or transferred, the Governor in Council may, by order, direct the Commission not to vary or transfer the certificate or to reconsider the matter.

193Order to reconsider#

(1)In an order directing a reconsideration, the Governor in Council may specify factors that the Commission is to take into account in the reconsideration and may require the Commission to complete the reconsideration within a specified time limit.

(2)If the Commission makes any changes to a recommendation as a result of a reconsideration, the Commission must provide a report to the Governor in Council that summarizes the changes.

194Publication of order#

An order under section 191 or 192 must be published in the Canada Gazette within 15 days after the day on which it is made.

195Suspension of certificates#

(1)The Commission may, by order, suspend a certificate issued under this Part if the holder applies for or consents to the suspension or the holder has contravened a condition of the certificate.

(2)The Commission must not make an order under subsection (1) for a contravention unless the Commission provides the holder with notice of the alleged contravention and gives them an opportunity to be heard.

196Revocation of certificates — application or consent#

The Commission may, by order, revoke a certificate issued under this Part on application by or with the consent of the holder.

197Revocation of certificates — contravention#

(1)The Commission may, by order, with the approval of the Governor in Council, revoke a certificate issued under this Part if the holder has contravened a condition of the certificate.

(2)The Commission must not make an order under subsection (1) unless the Commission provides the holder with notice of the alleged contravention and gives them an opportunity to be heard.

Location of Pipelines

198Approval#

Except as otherwise provided in this Act, a company must not begin the construction of a section or part of a pipeline unless

(a)the Commission has issued a certificate in respect of the pipeline;

(b)the company has complied with all applicable conditions to which the certificate is subject;

(c)the plan, profile and book of reference of the section or part of the pipeline have been approved by the Commission; and

(d)copies, certified by the Regulator, of the approved plan, profile and book of reference have been deposited in the land registry office or other office where title to land is recorded for the area through which the section or part of the pipeline is to pass.

199Plan, profile and book of reference#

(1)The company must submit the plan, profile and book of reference referred to in paragraph 198(c) to the Regulator.

(2)The plan and profile must include any details that the Commission may require.

(3)The book of reference must describe the portion of land proposed to be taken in each parcel of land to be traversed, giving the numbers of the parcels, and the area, length and width of the portion of each parcel to be taken, and the names of the owners and occupiers insofar as they can be ascertained.

(4)The plan, profile and book of reference must be prepared to the satisfaction of the Commission, and the Commission may require the company to provide any additional information that the Commission considers necessary.

200Additional material to be deposited#

In addition to the plans, profiles and books of reference, a company must, as soon as feasible, deposit with the Regulator any additional material, including plans, specifications and drawings with respect to any part of its pipeline, as the Commission may require.

Determination of Detailed Route and Approval

201Notice to owners#

(1)If a company has submitted to the Regulator a plan, profile and book of reference under subsection 199(1), the company must, in the form and manner specified by the Commission,

(a)serve a notice on all owners of lands proposed to be acquired, leased, taken or used, insofar as they can be ascertained; and

(b)publish a notice in at least one issue of a publication, if any, in general circulation within the area in which the lands are situated.

(2)The notices mentioned in subsection (1) must describe the proposed detailed route of the pipeline, the location of the head office of the Regulator and the right of the owner and of persons referred to in subsection (4) to make, within the period referred to in subsection (3) or (4), as the case may be, representations to the Commission respecting the detailed route of the pipeline.

(2.1)The Regulator must publish on its website any notice that is published under paragraph (1)(b).

(3)If an owner of lands who has been served with a notice under subsection (1) wishes to oppose the proposed detailed route of a pipeline, the owner may, within 30 days after the day on which the notice is served, file with the Regulator a written statement setting out the nature of their interest and the grounds for their opposition to that route.

(4)A person who anticipates that their lands may be adversely affected by the proposed detailed route of a pipeline, other than an owner of lands referred to in subsection (3), may oppose the proposed detailed route by filing with the Regulator, within 30 days after the day on which the last notice referred to in subsection (1) is published, a written statement setting out the nature of their interest and the grounds for their opposition to that route.

202Public hearing#

(1)If a written statement is filed with the Regulator under subsection 201(3) or (4) within the period set out in that subsection, the Commission must order that a public hearing be held.

(2)The Commission must select a region in which to hold the hearing that it considers convenient for persons who filed a written statement under subsection 201(3) or (4) and must provide reasons for its selection, including the factors that it took into account.

(3)The Commission must fix a suitable time and place for the hearing and cause notice of the time and place to be given by publishing it in at least one issue of a publication, if any, in general circulation within the area in which the lands are situated and by sending it to each person who filed a written statement under subsection 201(3) or (4).

(4)At the time and place fixed for the hearing, the Commission must hold a hearing and must permit each person who filed a written statement under subsection 201(3) or (4) to make representations and may, if the Commission considers it appropriate to do so, allow any other interested person to make representations before it.

(5)The Commission or a person authorized by it may inspect the lands that are proposed to be acquired, leased, taken or used for, or that are affected by, the pipeline construction as the Commission considers necessary.

(6)The Commission may at any time disregard a written statement filed under subsection 201(3) or (4) and is not required to take any action under this section with respect to that statement, if

(a)the person who filed the statement files a notice of withdrawal with the Regulator; or

(b)the Commission considers that the statement is frivolous or vexatious or is not made in good faith.

203Matters to be taken into account#

(1)Subject to subsections (2) and 202(6), the Commission must not approve a plan, profile and book of reference unless it has taken into account, in order to determine the best possible detailed route of the pipeline and the most appropriate methods and timing of its construction,

(a)all written statements filed under subsection 201(3) or (4); and

(b)all representations made to the Commission at a public hearing.

(2)The Commission may approve a plan, profile and book of reference in respect of any section or part of a pipeline if no written statement under subsection 201(3) or (4) has been filed in respect of that section or part.

204Conditions#

In any approval referred to in section 203, the Commission may impose any conditions that it considers appropriate.

205Notice of decision#

If the Commission has held a public hearing under subsection 202(4) in respect of any section or part of a pipeline and approved or refused to approve a plan, profile and book of reference respecting that section or part, it must, without delay, forward a copy of its decision and the reasons for it to each person who made representations to the Commission at the public hearing.

206Costs of making representations#

The Commission may, by order, fix an amount that it considers reasonable in respect of the interim or final costs that are incurred by any person who made or will make representations to the Commission at a public hearing under subsection 202(4) and that amount is payable, on an interim or final basis and without delay, to that person by the company whose pipeline route is the subject of the public hearing.

207For greater certainty#

For greater certainty, the issuance of a certificate or the approval of a plan, profile and book of reference does not relieve the company from otherwise complying with this Act.

Errors

208Application for correction of errors#

(1)If any omission, misstatement or error is made in a registered plan, profile or book of reference, the company must submit an application to the Regulator for a permit to correct the omission, misstatement or error.

(2)The Commission may in its discretion issue a permit setting out the nature of the omission, misstatement or error and the correction allowed.

(3)On the deposit of copies of the permit issued under subsection (2), certified by the Regulator, in the land registry office or other office where title to land is recorded for the area in which the lands affected are situated, the plan, profile or book of reference must be considered to be corrected in accordance with the permit, and the company may, subject to the other provisions of this Act, construct the pipeline in accordance with the correction.

209Error as to names#

A pipeline may be made, carried or placed across, on or under lands on the detailed route, even if, through error or any other cause, the name of the owner or holder of an interest or right in the lands has not been entered in the book of reference, or some other person is erroneously mentioned as the owner or holder of an interest or right in the lands.

Duties of Land Registrar

210Registration of plans, etc.#

(1)Every land registrar must receive and preserve in their office the plans, profiles, books of reference, certified copies and other documents required by this Act to be deposited with the registrar, and must endorse them with the day, hour and minute when they were deposited.

(2)Any person may inspect the documents preserved under subsection (1) and may make extracts and copies of them.

(3)A land registrar must, at the request of any person, certify copies of any document or portion of a document preserved under subsection (1), on being paid at a rate that is reasonable and customary in similar cases.

(4)The certification of the land registrar must set out that the document was deposited in the registrar’s office, and must state the time when it was deposited.

(5)A certified copy referred to in subsection (4) is evidence of the original deposited and is evidence that the original was deposited at the time stated and certified, and that it was signed, certified, attested or otherwise executed by the persons by whom and in the manner in which the original purports to be signed, certified, attested or executed, as shown or appearing by the certified copy, and, in the case of a plan, that the plan is prepared according to a scale and in a manner and form sanctioned by the Commission.

Deviations and Relocations

211Approval of deviations#

(1)If a deviation is required by a company to be made in a pipeline, or a part of a pipeline, that has been constructed or for which a detailed route has been approved, a plan, profile and book of reference of the part of the pipeline proposed to be changed, showing the deviation proposed to be made, must be submitted to the Regulator for the approval of the Commission.

(2)If the plan, profile and book of reference of the part of the pipeline proposed to be changed have been approved by the Commission, and copies have been deposited as provided in this Act with respect to the original plan, profile and book of reference, the company may make the deviation, and all the provisions of this Act are applicable to the part of the pipeline, as changed or proposed to be changed, in the same manner as they are applicable to the original pipeline.

(3)The Commission may exempt a company from all or any of the provisions of this section if the deviation was made or is to be made for the purpose of benefiting a pipeline, or for any other public purpose, if it considers it appropriate to do so, but the deviation must not exceed the distance that is specified by the Commission from the centre line of the pipeline located or constructed in accordance with the plans, profiles and books of reference approved by the Commission under this Act.

212Relocation#

(1)The Commission may, by order, on any conditions that it considers appropriate, direct a company to relocate its pipeline if the Commission considers that the relocation is necessary

(a)to ensure the safety of persons and the pipeline;

(b)to protect the environment;

(c)to facilitate the construction, reconstruction or relocation of a highway, a railway or any other work of public interest; or

(d)to prevent or remove an interference with a drainage system.

(2)The Commission may, by order, direct by whom and to whom the costs of the relocation referred to in subsection (1) must be paid.

(3)The Commission must not direct a company to relocate any section or part of its pipeline unless the procedures set out in sections 201 to 205 have been complied with in respect of the section or part to be relocated.

(4)For the purposes of ensuring that the procedures set out in sections 201 to 205 are complied with, the Commission may order the company to carry out the procedures that the company would have been required to carry out if the company had submitted to the Regulator a plan, profile and book of reference under subsection 199(1) and those sections apply, with any modifications that the circumstances require, in respect of any matter related to the carrying out of those procedures.

(5)The Commission may, by order,

(a)fix an amount that it considers reasonable in respect of the interim or final costs incurred by any person who made or will make representations to the Commission under this section; and

(b)direct by whom and to whom the amount is to be paid.

Leave to Open Pipelines

213Leave required#

(1)A pipeline or section of a pipeline must not be opened for the transmission of hydrocarbons or any other commodity by a company unless an order granting it leave to do so has been made by the Commission.

(2)Leave may be granted by the Commission under this section only if it is satisfied that the pipeline may safely be opened for transmission.

Exemptions

214Orders#

(1)The Commission may, by order, exempt from the application of any or all of the provisions of section 179, subsection 180(1) and sections 182, 198, 199 and 213

(a)pipelines or branches of or extensions to pipelines, of not more than 40 kilometres in length;

(b)pipelines that have already been constructed; and

(c)any tanks, reservoirs, storage or loading facilities, pumps, racks, compressors, interstation communication systems, real or personal property, or immovable or movable, and any connected works.

(2)In any order made under subsection (1), the Commission may impose any conditions that it considers appropriate.

(3)If an application for an order under subsection (1) is made, the Commission must, within the time limit specified by the Lead Commissioner, either make an order under that subsection or dismiss the application.

(4)The time limit specified by the Lead Commissioner must be no longer than 300 days after the day on which the applicant has, in the Commission’s opinion, provided a complete application.

(5)In the circumstances prescribed by regulations made under section 216, the Lead Commissioner may specify that a period is to be excluded from the calculation of the time limit. The Lead Commissioner must provide reasons for doing so.

(6)The Minister may, by order, grant one or more extensions of the time limit specified under subsection (3).

(7)The Commission must make public the time limit specified under subsection (3), any period that is excluded under subsection (5), the reasons for the exclusion and any extension of time granted under subsection (6).

(8)Despite subsections (3) to (6), if the Lead Commissioner considers that an application for an exemption is related to an application for a certificate in respect of a pipeline, the time limit within which to make an order under subsection (1) or to dismiss the application for an exemption expires on the day on which the certificate is issued or the application for the certificate is dismissed.

(9)A failure by the Commission to make an order under subsection (1) or dismiss the application within the required time limit does not affect its jurisdiction to deal with the application or its obligation to make the order or to dismiss the application, and anything done by it in relation to the application remains valid.

215Impact Assessment Act#

If the application for an exemption relates to a designated project, as defined in section 2 of the Impact Assessment Act, that is subject to an impact assessment under that Act,

(a)the time limit within which the Commission must make an order under subsection 214(1) or dismiss the application is seven days after the day on which the decision statement with respect to the designated project is posted on the Internet under section 66 of that Act; and

(b)subsections 214(3) to (8) do not apply.

Regulations Concerning Time Limits

216Power of the Regulator#

The Regulator may make regulations prescribing, for the purposes of subsection 183(5) or 214(5), the circumstances in which periods may be excluded from the calculation of the time limit.

Construction Despite Presence of Utilities or Navigable Waters

217Construction — utility#

(1)A company must not construct a pipeline that passes on, over, along or under a utility unless a certificate has been issued, or an order has been made under section 214, in respect of the pipeline, and

(a)the certificate or order contains a condition relating to that utility;

(b)the company has been granted leave under subsection (2); or

(c)the company is constructing the pipeline in circumstances specified in an order or regulation made under subsection (4).

(2)The Commission may, by order, on application, grant a company leave to construct a pipeline that passes on, over, along or under a utility. It may require from the applicant any plans, profiles and other information that it considers necessary to deal with the application.

(3)The leave may be granted in whole or in part and be subject to any conditions that the Commission considers appropriate.

(4)The Regulator may specify circumstances for the purposes of paragraph (1)(c) by regulation, and the Commission may do so by order.

(5)The Commission may grant leave under subsection (2) after construction of the work has commenced if it is satisfied that the work was urgently required and, before the commencement of construction, it was notified of the company’s intention to proceed with the work.

(6)In this section, utility means a highway, an irrigation ditch, a publicly owned or operated drainage system, sewer or dike, an underground telecommunications line or a line for the transmission of hydrocarbons, electricity or any other substance.

218Construction or operation — navigable water#

A person must not construct or operate a pipeline that passes in, on, over, under, through or across a navigable water unless a certificate has been issued, or an order has been made under section 214, in respect of the pipeline.

219Effects of recommendation on navigation#

(1)In making its recommendation in a report prepared under section 183, the Commission must also take into account the effects that the issuance of a certificate in respect of a pipeline that passes in, on, over, under, through or across a navigable water might have on navigation, including on the safety of navigation.

(2)When deciding whether to make an order, give a direction or grant a leave, approval or exemption in respect of a pipeline that passes in, on, over, under, through or across a navigable water, the Commission must take into account the effects that its decision might have on navigation, including on the safety of navigation, in addition to any other factor that it considers appropriate.

220Pipeline not work#

Despite the definition work in section 2 of the Canadian Navigable Waters Act, a pipeline is not a work to which that Act applies.

221Regulations#

(1)The Governor in Council may, for purposes related to navigation, on the joint recommendation of the Minister and the Minister of Transport, make regulations respecting sections or parts of pipelines that pass in, on, over, under, through or across a navigable water, including regulations respecting

(a)their design, construction or operation;

(b)the making of deviations to them;

(c)their relocation;

(d)the safety and security of their operation; and

(e)their abandonment.

(2)Every person who contravenes a regulation made under subsection (1) is guilty of an offence punishable on summary conviction.

(3)Subsections 379(2) to (6) apply, with any modifications that the circumstances require, in respect of an offence under this section.

^note

222Existing terms and conditions#

(1)Terms and conditions in respect of a pipeline that were, at any time before July 3, 2013, imposed under section 108 of the National Energy Board Act, are considered to be conditions set out in the certificate issued, or order made under section 214, as the case may be, in respect of the pipeline.

(2)If, at any time before July 3, 2013, the Minister of Transport or the National Energy Board had provided, under section 108 of the National Energy Board Act, that leave under that section was not necessary because the pipeline was to be constructed in accordance with certain orders, regulations, plans and specifications, a company must not construct the pipeline other than in accordance with those orders, regulations, plans and specifications or as specified by the Commission.

223Offence and punishment#

(1)Every person who contravenes subsection 217(1), section 218 or subsection 222(2) is guilty of an offence and is liable

(a)on conviction on indictment to a fine of not more than $1,000,000 or to imprisonment for a term of not more than five years, or to both; or

(b)on summary conviction to a fine of not more than $100,000 or to imprisonment for a term of not more than one year, or to both.

(2)Subsections 379(2) to (6) apply, with any modifications that the circumstances require, in respect of an offence under this section.

224If pipeline affixed to any real property or immovables#

(1)Despite the other provisions of this Act, or any general or Special Act or law, if any section or part of a company’s pipeline passes on, over, along or under a utility, as defined in subsection 217(6) — or passes in, on, over, under, through or across a navigable water — and that section or part of the pipeline has been affixed to any real property or immovable in any of the circumstances referred to in subsection (2),

(a)that section or part of the pipeline remains subject to the rights of the company and remains the property of the company as fully as it was before being affixed and does not become part of the real property or immovable of any person other than the company unless otherwise agreed by the company in writing and unless notice of the agreement in writing has been filed with the Regulator; and

(b)subject to the other provisions of this Act, the company may create a lien, mortgage, charge or other security, or the company may constitute a hypothec, on that section or part of the pipeline.

(2)The following are the circumstances for the purposes of subsection (1):

(a)leave has been obtained under subsection 217(2) or (5) in respect of the pipeline;

(b)the certificate issued, or the order made under section 214, in respect of the pipeline contains a condition relating to the utility;

(c)the pipeline has been constructed in circumstances specified in an order or regulation made under subsection 217(4);

(d)a certificate has been issued, or an order has been made under section 214, in respect of the pipeline and the pipeline passes in, on, over, under, through or across a navigable water; and

(e)leave has been obtained under section 108 of the National Energy Board Act in respect of the pipeline at any time before July 3, 2013.

Traffic, Tolls and Tariffs

Interpretation

225Definition of tariff#

In sections 226 to 240, tariff means a schedule of tolls, conditions, classifications, practices or rules and regulations applicable to the provision of a service by a company, and includes rules respecting the calculation of tolls.

Commission’s Powers

226Orders#

The Commission may make orders with respect to all matters relating to traffic, tolls or tariffs.

Filing of Tariff

227Tariff to be filed#

A company must file each tariff it makes and any amendments made to a tariff, with the Regulator.

228Commencement of tariff#

If a company files a tariff with the Regulator and the company proposes to charge a toll referred to in paragraph (b) of the definition toll in section 2, the Commission may establish the day on which the tariff is to come into effect, and the company is prohibited from charging the toll before that day.

229Authorized tolls#

(1)A company is prohibited from charging a toll unless the toll is

(a)specified in a tariff that is filed with the Regulator and is in effect; or

(b)approved by an order of the Commission.

(2)If the oil, gas or other commodity transmitted by a company through its pipeline is the property of the company, the company must, if requested by the Regulator, file copies of any contract it enters into for the sale of the oil, gas or commodity, or any amendments it makes to such a contract, with the Regulator and those copies are deemed, for the purpose of sections 225 to 240, to be a tariff filed in accordance with subsection (1).

Just and Reasonable Tolls

230Tolls#

All tolls must be just and reasonable, and must always, under substantially similar circumstances and conditions with respect to all traffic of the same description carried over the same route, be charged equally to all persons at the same rate.

231Determination — Commission#

The Commission may determine

(a)whether traffic is or has been carried under substantially similar circumstances and conditions for the purposes of section 230;

(b)whether a company has complied with the provisions of section 230; and

(c)whether there has been unjust discrimination for the purposes of section 235.

232Interim tolls#

If the Commission has made an interim order authorizing a company to charge tolls until a specified time or the happening of a specified event, the Commission may, in any subsequent order, direct the company

(a)to refund, in the manner that the Commission considers appropriate, the part of the tolls charged under the interim order that is in excess of the tolls determined by the Commission to be just and reasonable, together with interest on the amount to be refunded; or

(b)to recover in its tolls, in the manner that the Commission considers appropriate, the amount by which the tolls determined by the Commission to be just and reasonable exceed the tolls charged under the interim order, together with interest on the amount to be recovered.

Disallowance or Suspension of Tariff

233Disallowance#

The Commission may disallow any tariff or any portion of a tariff that it considers to be contrary to this Act or to any order of the Commission, and may require a company to substitute in its place, within a prescribed time, a tariff that the Commission considers satisfactory, or may prescribe other tariffs in place of the tariff or the portion of the tariff that is disallowed.

234Suspension#

The Commission may suspend the application of any tariff or any portion of a tariff before or after the tariff goes into effect.

Discrimination

235No unjust discrimination#

A company must not make any unjust discrimination in tolls, service or facilities against any person or locality.

236Burden of proof#

If it is shown that a company makes any discrimination in tolls, service or facilities against any person or locality, the burden of proving that the discrimination is not unjust lies on the company.

237Prohibition#

(1)A company or shipper, or an officer, employee or agent or mandatary of a company or shipper, is guilty of an offence punishable on summary conviction if they

(a)offer, grant, give, solicit, accept or receive a rebate, concession or discrimination that allows a person to obtain transmission of hydrocarbons or any other commodity by a company at a rate less than that named in the tariffs then in effect; or

(b)knowingly are party or privy to a false billing, false classification, false report or other device that has the effect set out in paragraph (a).

(2)A person is not to be found guilty of an offence under paragraph (1)(a) if they establish that they exercised due diligence to prevent the commission of the offence.

(3)No prosecution may be instituted for an offence under this section without leave of the Commission.

Contracts Limiting Liabilities

238General rule#

(1)Except as provided in this section, no contract, condition or notice made or given by a company limiting its liability in respect of the transmission of hydrocarbons or any other commodity relieves the company from its liability, unless that class of contract, condition or notice is included as a condition of its tariffs that are filed with the Regulator or has been first approved by order of the Commission or authorized by regulation.

(2)The Commission may determine the extent to which the liability of a company may be limited as provided in this section.

(3)The Commission may prescribe the conditions under which hydrocarbons or any other commodity may be transmitted by a company.

Transmission by Pipeline

239Duty — company#

(1)Subject to any regulations that the Commission may prescribe and any exemptions or conditions it may impose, a company operating a pipeline for the transmission of oil must, according to its powers, without delay and with due care and diligence, receive, transport and deliver all oil offered for transmission by means of its pipeline.

(2)The Commission may, by order, on any conditions that it specifies in the order, require a company operating a pipeline for the transmission of gas or a commodity other than oil to, according to its powers, receive, transport and deliver such a commodity offered for transmission by means of its pipeline.

(3)If the Commission considers it necessary or in the public interest and it finds that no undue burden will be placed on the company, it may require a company operating a pipeline for the transmission of oil, gas or any other commodity to provide adequate and suitable facilities for

(a)receiving, transmitting and delivering the oil, gas or other commodity offered for transmission by means of its pipeline;

(b)storing the oil, gas or other commodity; and

(c)joining its pipeline with other facilities for the transmission of oil, gas or any other commodity.

Transmission and Sale of Gas

240Extension or improvement#

(1)If the Commission considers it necessary or in the public interest and it finds that no undue burden will be placed on the company, it may direct a company operating a pipeline for the transmission of gas to extend or improve its facilities to facilitate joining its pipeline with the facilities of, and sell gas to, any person or municipality engaged or legally authorized to engage in the local distribution of gas to the public, and for those purposes to construct branch lines to communities immediately adjacent to its pipeline.

(2)Subsection (1) does not empower the Commission to compel a company to sell gas to additional customers if to do so would impair its ability to render adequate service to its existing customers.

(3)If the gas transmitted by a company through its pipeline is the property of the company, the differential between the cost to the company of the gas at the point where it enters its pipeline and the amount for which the gas is sold by the company is, for the purposes of sections 225 to 240, deemed to be a toll charged by the company to the purchaser for the transmission of that gas.

Abandonment

241Limitation#

(1)A company must not abandon a pipeline unless the Commission has, by order, granted it leave to do so.

(2)If a company has submitted to the Regulator an application to abandon a pipeline, the company must, in the form and manner specified by the Commission,

(a)serve a notice on all owners of lands through which the pipeline passes, insofar as they can be ascertained; and

(b)publish a notice in at least one issue of a publication, if any, in general circulation within the area in which the lands are situated.

(3)If a written statement of opposition to the abandonment is filed with the Regulator or if a person requests in writing that a hearing be held in respect of the application for leave to abandon the operation of a pipeline, the Commission must order that a public hearing be conducted in respect of the application unless

(a)the person who filed the written statement or who requested the hearing files a notice of withdrawal with the Regulator; or

(b)the Commission considers that the opposition or request is frivolous or vexatious or is not made in good faith.

(4)The Commission may, on granting leave to abandon a pipeline, impose any conditions that it considers appropriate.

(5)A company that has been granted leave to abandon a pipeline continues to be liable for the abandoned pipeline under this Act.

242Costs and expenses related to abandonment#

(1)The Commission may order a company to take any measure, including maintaining funds or security, that the Commission considers necessary to ensure that the company has the ability to pay for the abandonment of its pipeline and to pay any costs and expenses related to its abandoned pipeline.

(2)If the Commission orders a company to maintain funds or security, the Commission may

(a)order the company to use all or a portion of the funds or security to pay for the abandonment of the pipeline or to pay the costs and expenses related to the abandoned pipeline;

(b)authorize a third party or an employee of the Regulator — or class of employees of the Regulator — to use all or a portion of the funds or security to pay for that abandonment or to pay those costs and expenses;

(c)realize all or a portion of the security in order to enable a third party or the Regulator to pay for that abandonment or to pay those costs and expenses; and

(d)order that any surplus referred to in subsection 246(2) be paid into the Consolidated Revenue Fund and credited to the Orphan Pipelines Account.

243Orphan pipelines#

(1)A designated officer may, by order, designate a pipeline as an orphan pipeline if the directors or officers of the company that holds the certificate in respect of the pipeline cannot be located or if that company is unknown, insolvent, bankrupt, subject to a receivership, dissolved or cannot be located.

(2)For the purposes of subsection (1), a person that is named in an order made under section 214 in respect of the pipeline, or that is authorized under a Special Act to operate the pipeline, is considered to be the company that holds the certificate.

244Orphan abandoned pipelines#

A designated officer may, by order, designate an abandoned pipeline as an orphan abandoned pipeline if the directors or officers of the company that owns it cannot be located or if that company is unknown, insolvent, bankrupt, subject to a receivership, dissolved or cannot be located.

245Measures#

(1)A designated officer may take any action or measure that they consider necessary in relation to the abandonment of an orphan pipeline or in relation to an orphan abandoned pipeline or they may authorize a third party or an employee of the Regulator — or class of employees of the Regulator — to take the action or measure.

(2)No action lies against the Regulator or an employee of the Regulator or against a servant of the Crown, as those terms are defined in section 2 of the Crown Liability and Proceedings Act, in respect of any act or omission committed in taking any action or measure referred to in subsection (1).

(3)A third party that is authorized under subsection (1) to take any action or measure referred to in that subsection is not liable in respect of any act or omission committed in good faith in taking those actions or measures.

246Orphan Pipelines Account#

(1)There is established an account in the accounts of Canada to be called the Orphan Pipelines Account.

(2)If a pipeline is abandoned, the surplus determined in accordance with the formula set out in subsection (3) may be paid into the Consolidated Revenue Fund and credited to the Orphan Pipelines Account, if the Commission considers it appropriate.

(3)The amount of the surplus is determined in accordance with the formula

(3.1)On April 1 of every year there is to be credited to the Orphan Pipelines Account an amount representing interest, at the rate fixed for the purposes of subsection 21(2) of the Financial Administration Act, on the balance to the credit of the Account.

(4)Any amounts required for the purpose of paying the costs and expenses of any action or measure taken under subsection 245(1) may be paid out of the Consolidated Revenue Fund and charged to the Orphan Pipelines Account if the Commission considers it appropriate and

(a)the funds or security referred to in subsection 242(1) are insufficient; or

(b)the company is not the subject of an order under subsection 242(1).

(5)A payment must not be made out of the Consolidated Revenue Fund under subsection (4) in excess of the amount of the balance to the credit of the Account.

(6)A payment made out of the Orphan Pipelines Account in respect of a pipeline does not affect the liability under this Act of a company that has been granted leave to abandon a pipeline.

Part 4 · International and Interprovincial Power Lines

International Power Lines

247Prohibition#

A person must not construct or operate a section or part of an international power line except in accordance with a permit issued under section 248 or a certificate issued under section 262.

Permits

248Issuance#

(1)On application, the Commission must, subject to section 8 of the Impact Assessment Act, issue a permit authorizing the construction and operation of an international power line, except in the case of a power line that is designated by order of the Governor in Council under paragraph 258(1)(a) or in respect of which an election is made under section 259.

(2)The application must be accompanied by the information that under the regulations is to be furnished in connection with the application.

249Publication#

(1)The applicant must cause to be published a notice of the application in the Canada Gazette and any other publications that the Commission considers appropriate.

(2)The Commission may waive the requirement to publish the notice if it considers that there is a critical shortage of electricity caused by a terrorist activity, as defined in subsection 83.01(1) of the Criminal Code.

Location and Construction under Provincial Law

250Provincial regulatory agency#

The lieutenant governor in council of a province may designate as the provincial regulatory agency the lieutenant governor in council of the province, a provincial minister of the Crown or any other person or a board, commission or other tribunal.

251Application#

Sections 253 and 254 apply in respect of those parts of international power lines that are within a province in which a provincial regulatory agency is designated under section 250 but do not apply in the case of international power lines in respect of which an election is filed under section 259.

252Laws of a province#

For the purposes of sections 253 to 255, a law of a province is in relation to lines for the transmission of electricity from a place in the province to another place in that province if the law is in relation to any of the following matters:

(a)the determination of their location or detailed route;

(b)the acquisition, including by expropriation, or lease of land required for the purposes of those lines, the power to so acquire or lease land and the procedure for so acquiring or leasing it;

(c)assessments of their impact on the environment;

(d)the protection of the environment against the consequences of the construction, operation and abandonment of those lines, and the mitigation of their effects on the environment;

(e)their construction and operation and the procedure to be followed in abandoning their operation.

253Application of provincial laws#

The laws in force in a province in relation to lines for the transmission of electricity from a place in the province to another place in that province apply in respect of parts of international power lines that are within that province.

254Powers, duties and functions of provincial regulatory agency#

A provincial regulatory agency designated under section 250 has, in respect of those parts of international power lines that are within that province, the powers, duties and functions that it has under the laws of the province in respect of lines for the transmission of electricity from a place in the province to another place in that province, including a power, duty or function to refuse to approve any matter or thing for which the approval of the agency is required, even though the result of the refusal is that the line cannot be constructed or operated.

255Paramountcy#

Conditions of permits and certificates and Acts of Parliament of general application are, for the purpose of applying the laws of a province under section 253 or 254, paramount to those laws.

Certificates

Designated International Power Lines

256Further information#

The Commission may, within a reasonable time after the publication of the notice referred to in section 249, require the applicant to furnish any information, in addition to that required to accompany the application, that the Commission considers necessary to determine whether to make a recommendation under section 257.

257Recommendation and delay of issuance#

(1)The Commission may make a recommendation to the Minister, which it must make public, that an international power line be designated by order of the Governor in Council under section 258, and may delay issuing a permit during the period that is necessary for the purpose of making the order.

(2)In determining whether to make a recommendation, the Commission must seek to avoid the duplication of measures taken in respect of the international power line by the applicant and the government of any province through which the line is to pass, and must have regard to all considerations that appear to it to be relevant, including

(a)the effect of the power line on provinces other than those through which the line is to pass;

(b)the impact of the construction or operation of the power line on the environment; and

(c)any other considerations that may be specified in the regulations.

258Where certificate required#

(1)The Governor in Council may, by order,

(a)designate an international power line as an international power line that is to be constructed and operated in accordance with a certificate issued under section 262; and

(b)revoke any permit issued in respect of the line.

(2)No order may be made under subsection (1) in respect of a power line more than 45 days after the issuance of a permit in respect of the line.

(3)If an order is made under subsection (1),

(a)no permit is to be issued in respect of the power line; and

(b)any application in respect of the line is to be dealt with as an application for a certificate.

Election — Application of this Act

259Election by applicant or holder#

The applicant for or holder of a permit or certificate may file with the Regulator, in the form prescribed by the regulations, an election that the provisions of this Act referred to in section 266 and not the laws of a province described in section 252 apply in respect of the existing or proposed international power line.

260Effect of election#

(1)If an election is filed under section 259,

(a)no permit is to be issued in respect of the power line;

(b)any application in respect of the line is to be dealt with as an application for a certificate; and

(c)any permit or certificate issued in respect of the line is revoked.

(2)An applicant for or holder of a permit or certificate who files an election under section 259 and who, at the time of the election, is proceeding under the laws of a province to acquire or lease land for the purpose of constructing or operating the international power line is liable to each person who has an interest in the land or, in Quebec, a right in the land, for all damages suffered and reasonable costs incurred in consequence of the abandonment of the acquisition or lease.

(3)An action for damages and costs referred to in subsection (2) may be brought in any court of competent jurisdiction in the province in which the land is situated.

Designated Interprovincial Power Lines

261Where certificate required#

(1)The Governor in Council may, by order,

(a)designate an interprovincial power line as an interprovincial power line that is to be constructed and operated in accordance with a certificate issued under section 262; and

(b)specify considerations to which the Commission must have regard in deciding whether to issue such a certificate.

(2)A person must not construct or operate any section or part of an interprovincial power line in respect of which an order made under subsection (1) is in force except in accordance with a certificate issued under section 262.

Issuance of Certificate

262Issuance#

(1)If the Commission is satisfied that the power line is and will be required by the present and future public convenience and necessity, the Commission may, subject to section 52 and to the approval of the Governor in Council, issue a certificate in respect of

(a)an international power line in relation to which an order made under section 258 is in force;

(b)an international power line in relation to which an election is filed under section 259; or

(c)an interprovincial power line in relation to which an order made under section 261 is in force.

(2)In deciding whether to issue a certificate, the Commission must take into account — in light of, among other things, any Indigenous knowledge that has been provided to the Commission and scientific information and data — all considerations that appear to it to be relevant and directly related to the power line, including

(a)the environmental effects, including any cumulative environmental effects;

(b)the safety and security of persons and the protection of property and the environment;

(c)the health, social and economic effects, including with respect to the intersection of sex and gender with other identity factors;

(d)the interests and concerns of the Indigenous peoples of Canada, including with respect to their current use of lands and resources for traditional purposes;

(e)the effects on the rights of the Indigenous peoples of Canada recognized and affirmed by section 35 of the Constitution Act, 1982;

(f)the extent to which the effects of the power line hinder or contribute to the Government of Canada’s ability to meet its environmental obligations and its commitments in respect of climate change; and

(g)any relevant assessment referred to in section 92, 93 or 95 of the Impact Assessment Act.

(3)Any permit that is issued in respect of an international power line in relation to which an order made under section 258 is in force, and that was not revoked by the order, is revoked on the Commission’s deciding not to issue a certificate in respect of the power line.

(4)The Commission must, within the time limit specified by the Lead Commissioner,

(a)decide that the certificate should be issued and recommend to the Minister that the Governor in Council approve the issuance of the certificate; or

(b)decide that no certificate is to be issued and dismiss the application in respect of the line.

(5)The specified time limit must be no longer than 300 days after the day on which the applicant has, in the Commission’s opinion, provided a complete application.

(6)In the circumstances prescribed by regulations made under section 291.1, the Lead Commissioner may specify that a period is to be excluded from the calculation of the time limit within which the Commission must make its decision. The Lead Commissioner must provide reasons for doing so.

(7)The Minister may, by order, grant one or more extensions of the time limit specified under subsection (4).

(8)The Commission must make public the time limit specified under subsection (4), any period that is excluded and the reasons for the exclusion and any extension of time granted under subsection (7).

(9)If a recommendation referred to in paragraph (4)(a) is made, the Governor in Council may, within 90 days after the day on which the Commission makes that recommendation or, in the case of a designated project, as defined in section 2 of the Impact Assessment Act, 90 days after the day on which the recommendations referred to in paragraph 37.1(1)(b) of that Act are posted on the Internet site referred to in section 105 of that Act, either approve the issuance of the certificate or refuse to approve its issuance. The Governor in Council may extend the time limit for doing so for any additional period or periods.

(10)If the Governor in Council approves the issuance of the certificate, the Commission must, within seven days after the day on which the approval was given, issue the certificate.

(11)A failure by the Commission to comply with subsection (4) within the required time limit does not affect its jurisdiction to deal with the application or its obligation to make a decision as to whether a certificate should be issued or to dismiss the application, and anything done by it in relation to the application remains valid.

(12)Despite subsection (9), the Governor in Council may approve the issuance of the certificate or refuse to approve its issuance after the expiry of the time limit for doing so.

263Impact Assessment Act#

If an application under section 262 relates to a designated project, as defined in section 2 of the Impact Assessment Act, that is subject to an impact assessment under that Act,

(a)the Commission’s powers, duties and functions under subsections 262(1), (2) and (4) — other than the actual issuance of the certificate as set out in subsection 262(10) — are to be exercised or performed by a review panel referred to in subsection 47(1) of that Act;

(b)subsection 262(3) applies with respect to the review panel’s decision;

(c)the decision referred to in subsection 262(4) is to be made within the time limit that is established under section 37.1 of that Act;

(d)subsections 262(5) to (8) do not apply with respect to the application; and

(e)subsection 262(11) applies with respect to the review panel.

Location and Construction under Federal Law

264Application#

Sections 265 and 266 apply in respect of

(a)international power lines in respect of which an election is filed under section 259;

(b)those parts of international power lines that are within a province in which no provincial regulatory agency is designated under section 250; and

(c)interprovincial power lines in respect of which an order made under section 261 is in force.

265Prohibition#

A person must not begin the construction of a section or part of an international or interprovincial power line until

(a)the plan, profile and book of reference of the section or part are approved by the Commission; and

(b)copies, certified by the Regulator, of the approved plan, profile and book of reference have been deposited in the land registry office or other office where title to land is recorded for the area through which the section or part is to pass.

266Application of certain provisions#

(1)Sections 182 and 199 to 211 and Part 6, except sections 315 to 318, 335, 341 and 342, apply in respect of international and interprovincial power lines referred to in section 264 as if each reference in any of those provisions to

(a)a company were a reference to the applicant for or holder of the permit or certificate issued in respect of the power line;

(b)a pipeline were a reference to the international or interprovincial power line; and

(c)hydrocarbons or any other commodity were a reference to electricity.

(2)If a deviation is required to be made to a part of an international power line by the holder of a permit or certificate issued in respect of the power line and the deviation passes in, on, over, under, through or across a navigable water, section 211 also applies to that part as if each reference in that section to

(a)a company were a reference to the holder of the permit or certificate; and

(b)a pipeline were a reference to the international power line.

(3)Subsection 224(1) applies in respect of an international or interprovincial power line referred to in section 264 as if the reference to “any of the circumstances referred to in subsection (2)” were a reference to any of the following circumstances:

(a)leave has been obtained under subsection 272(2) or (5) in respect of the power line;

(b)the permit referred to in section 248, or the certificate, issued in respect of the power line contains a condition relating to the utility referred to in subsection 224(1);

(c)the power line has been constructed in circumstances specified in an order or regulation made under subsection 272(4);

(d)a permit referred to in section 248, or a certificate, has been issued in respect of the power line and the power line passes in, on, over, under, through or across a navigable water; and

(e)leave had been obtained under section 108 of the National Energy Board Act in respect of the power line at any time before July 3, 2013.

(4)A reference to an abandoned pipeline in the provisions referred to in this section is not a reference to an abandoned international or interprovincial power line.

Navigable Waters

267Construction or operation#

A person must not construct or operate an international power line, or an interprovincial power line in respect of which an order made under section 261 is in force, that passes in, on, over, under, through or across a navigable water unless a permit referred to in section 248 or a certificate has been issued in respect of the power line.

268Effects on navigation#

In addition to any other factor that it considers appropriate, the Commission must take into account the effects that its decision might have on navigation, including safety of navigation, when deciding whether to issue a certificate or permit, make an order, give a direction or grant a leave, approval or exemption in respect of an international power line, or an interprovincial power line in respect of which an order made under section 261 is in force, that passes in, on, over, under, through or across a navigable water.

269Power lines not works#

Despite the definition work in section 2 of the Canadian Navigable Waters Act, an international power line, or an interprovincial power line in respect of which an order made under section 261 is in force, is not a work to which that Act applies.

270Regulations#

The Governor in Council may, for purposes related to navigation, on the joint recommendation of the Minister and the Minister of Transport, make regulations respecting sections or parts of international power lines, or of interprovincial power lines in respect of which orders made under section 261 are in force, that pass in, on, over, under, through or across a navigable water, including regulations respecting

(a)their design, construction or operation;

(b)the making of deviations to them;

(c)their relocation;

(d)the safety and security of their operation; and

(e)the abandonment of their operation.

Facilities, Ground Disturbances and Relocation

271Application#

(1)Sections 272 to 274 apply in respect of

(a)international power lines in respect of which an election is filed under section 259;

(b)those parts of international power lines that are within a province in which no provincial regulatory agency is designated under section 250;

(c)international power lines if the facility in question is within the legislative authority of Parliament; and

(d)interprovincial power lines in respect of which an order made under section 261 is in force.

(2)Section 273 also applies in respect of the part of an international power line for which a permit or certificate is in force and that passes in, on, over, under, through or across a navigable water.

(3)Section 274 also applies in respect of an international power line for which a permit or certificate is in force if the Commission is of the opinion that the relocation of the power line in, on, over, under, through or across a navigable water is necessary to facilitate the construction, reconstruction or relocation of a facility.

272Construction — facility#

(1)A person must not construct an international or interprovincial power line that passes on, over, along or under a facility unless a permit referred to in section 248, or a certificate, has been issued in respect of the power line and

(a)the permit or certificate contains a condition relating to that facility;

(b)the person has been granted leave under subsection (2); or

(c)the person is constructing the power line in circumstances specified in an order or regulation made under subsection (4).

(2)On application, the Commission may, by order, grant a person leave to construct an international or interprovincial power line that passes on, over, along or under a facility. It may require from the applicant any plans, profiles and other information that it considers necessary to consider the application.

(3)The leave may be granted in whole or in part and be subject to conditions.

(4)The Regulator may specify circumstances for the purposes of paragraph (1)(c) by regulation, and the Commission may do so by order.

273Prohibition — construction or ground disturbance#

(1)It is prohibited for any person to construct a facility across, on, along or under an international or interprovincial power line or engage in an activity that causes a ground disturbance within the prescribed area unless the construction or activity is authorized by the orders or regulations made under section 275 and done in accordance with them.

(2)It is prohibited for any person to operate a vehicle or mobile equipment across an international or interprovincial power line unless

(a)that operation is authorized by orders or regulations made under section 275 and done in accordance with them; or

(b)the vehicle or mobile equipment is operated within the travelled portion of a highway or public road.

(3)The Commission may, by order, direct the owner of a facility constructed across, on, along or under an international or interprovincial power line in contravention of this Act, the Commission’s orders or the regulations to do anything that the Commission considers necessary for the safety or security of the line and, if the Commission considers that the facility may impair the safety or security of the operation of the line, direct the owner to reconstruct, alter or remove the facility.

274Relocation#

(1)On the conditions that it considers appropriate, the Commission may, by order, direct the holder of a permit or certificate issued in respect of an international or interprovincial power line to relocate a section or part of the power line if the Commission is of the opinion that the relocation is necessary to facilitate the construction, reconstruction or relocation of a facility.

(2)The Commission may, by order, direct by whom and to whom the costs of the relocation are to be paid.

(3)The Commission must not make an order under subsection (1) unless the procedures set out in sections 201 to 205 have been complied with in respect of the section or part to be relocated.

(4)The Commission may, by order, direct the holder of a permit or certificate issued in respect of an international or interprovincial power line to carry out any of the procedures set out in sections 201 to 205 that the holder would be required to carry out if the holder had submitted to the Regulator a plan, profile and book of reference under subsection 199(1).

(5)Sections 201 to 205 apply in respect of any matter related to the carrying out of the procedures set out in those sections as if each reference in those sections to

(a)a company were a reference to the holder of the permit or certificate issued in respect of the international or interprovincial power line; and

(b)a pipeline were a reference to the international or interprovincial power line.

(6)The Commission may, by order,

(a)fix an amount that it considers reasonable in respect of the interim or final costs incurred by any person who made or will make representations to the Commission under this section; and

(b)direct by whom and to whom the amount is to be paid.

275Orders#

(1)The Commission may, by order, give directions

(a)governing the design, construction, operation and abandonment of facilities constructed across, on, along or under an international or interprovincial power line;

(b)prescribing the area for the purposes of subsection 273(1);

(c)authorizing the construction of facilities across, on, along or under an international or interprovincial power line;

(d)authorizing ground disturbances within the prescribed area;

(e)governing the measures to be taken in relation to

(i)the construction of facilities across, on, along or under an international or interprovincial power line,

(ii)the construction of an international or interprovincial power line across, on, along or under facilities, other than railways, and

(iii)ground disturbances within the prescribed area;

(f)authorizing the operation of vehicles or mobile equipment across an international or interprovincial power line and governing the measures to be taken in relation to that operation;

(g)governing the apportionment of costs directly incurred as a result of a construction or disturbance authorized under this subsection;

(h)specifying activities for the purposes of paragraph (a) of the definition ground disturbance in section 2 in respect of international or interprovincial power lines; and

(i)authorizing a holder of a permit or certificate to give an authorization referred to in paragraph (c), (d) or (f) on any conditions that the holder considers appropriate.

(2)The Regulator may make regulations respecting any matter referred to in paragraphs (1)(a) to (f) and (h).

(3)The Regulator may, with the approval of the Governor in Council, make regulations

(a)governing the apportionment of costs directly incurred as a result of a construction or disturbance authorized under this section; and

(b)authorizing a holder of a certificate or permit issued under this Part to give an authorization referred to in paragraph (1)(c), (d) or (f) on any conditions that the holder considers appropriate.

276Temporary prohibition — ground disturbances#

(1)Orders made under subsection 275(1) and regulations made under subsection 275(2) may provide for the prohibition of ground disturbances in an area that is situated in the vicinity of an international or interprovincial power line and that may extend beyond the prescribed area during the period that starts when a request to locate the line is made to the holder of the permit or certificate issued in respect of the line and ends

(a)at the end of the third working day after the day on which the request is made; or

(b)at any later time that is agreed to between the holder and the person making the request.

(2)The Commission may, by order made on any conditions that the Commission considers appropriate, exempt any person from the application of an order or regulation made under section 275.

Abandonment

277Prohibition#

(1)A person must not, without the leave of the Commission, abandon the operation of an international power line or of an interprovincial power line designated by an order under section 261.

(2)On the application of the holder of a permit or certificate, the Commission may, by order, grant leave to abandon the operation of the power line.

Permits and Certificates

278Conditions — permit#

(1)The Commission may, on the issuance of a permit, make the permit subject to the conditions respecting the matters prescribed by the regulations that the Commission considers necessary or in the public interest.

(2)The Commission may, on the issuance of a certificate, make the certificate subject to the conditions that the Commission considers necessary or in the public interest.

279Compliance#

Every permit and certificate is subject to the condition that the provisions of this Act and the regulations, as well as every order made under the authority of this Act or of the laws of a province that are applicable under section 253, must be complied with.

280Variation or transfer of certificates#

281Recommendation to vary or transfer#

If the Commission recommends to the Governor in Council that a certificate be varied or transferred, the Governor in Council may, by order, direct the Commission

(a)to vary or transfer the certificate as recommended;

(b)not to vary or transfer the certificate; or

(c)to reconsider the matter.

282Recommendation not to vary or transfer#

283Order to reconsider#

(2)If the Commission makes any changes to a recommendation as a result of a reconsideration, the Commission must provide a report to the Governor in Council that summarizes the changes.

284Publication of order#

An order under section 281 or 282 must be published in the Canada Gazette within 15 days after the day on which it is made.

285Suspension of certificates#

(1)The Commission may, by order, suspend a certificate issued under this Part if the holder applies for or consents to the suspension or the holder has contravened a condition of the certificate.

286Revocation of certificates — application or consent#

The Commission may, by order, revoke a certificate issued under this Part on application by or with the consent of the holder.

287Revocation of certificates — contravention#

(1)The Commission may, by order, with the approval of the Governor in Council, revoke a certificate issued under this Part if the holder has contravened a condition of the certificate.

(2)The Commission must not make an order under subsection (1) unless the Commission provides the holder with notice of the alleged contravention and gives them an opportunity to be heard.

288Variation or transfer of permits#

(1)The Commission may, on application or on its own initiative, vary a permit issued under this Part and may, on application, transfer a permit issued under this Part.

(2)In varying or transferring a permit, the Commission may impose — in addition to or in lieu of any conditions to which the permit was previously subject — any conditions respecting the matters prescribed by regulations made under section 291 that the Commission considers necessary or appropriate in order to give effect to the purposes and provisions of this Act.

289Suspension or revocation of permits#

(1)The Commission may, by order, suspend or revoke a permit issued under this Part if the holder applies for or consents to the suspension or revocation or the holder has contravened a condition of the permit.

General Provisions

290Application of certain provisions#

(1)Section 315, subsections 316(1) to (3) and sections 317, 318 and 341 apply in respect of international power lines and of interprovincial power lines in respect of which an order made under section 261 is in force.

(2)The provisions of this Act referred to in subsection (1) apply in respect of an international power line as if each reference in those provisions to

(a)a company were a reference to the holder of the permit or certificate issued in respect of the line; and

(b)a pipeline were a reference to the international or interprovincial power line.

(3)Despite subsection (1), subsections 316(1) to (3) do not apply in respect of any of the following:

(a)anything done under leave obtained under subsection 272(2) or (5) in respect of an international power line or of an interprovincial power line referred to in subsection (1);

(b)in the case of an interprovincial power line referred to in subsection (1),

(i)any section or part of the power line that passes on, over, along or under a facility if a certificate has been issued in respect of the power line and the certificate contains a condition relating to that facility, or

(ii)any section or part of the power line that passes in, on, over, under, through or across a navigable water if a certificate has been issued in respect of the power line;

(c)in the case of an international power line,

(i)any section or part of the line that passes on, over, along or under a facility if a permit referred to in section 248, or a certificate, has been issued in respect of the line and the permit or certificate contains a condition relating to that facility, or

(ii)any section or part of the line that passes in, on, over, under, through or across a navigable water if a permit referred to in section 248, or a certificate, has been issued in respect of the line;

(d)anything done under any leave obtained under section 108 of the National Energy Board Act at any time before July 3, 2013.

291Regulations#

The Governor in Council may make regulations for carrying into effect the purposes and provisions of this Part, including regulations

(a)prescribing matters in respect of which conditions of permits may be imposed;

(b)respecting the information to be furnished in connection with applications for permits;

(c)specifying considerations to which the Commission must have regard in deciding whether to recommend to the Minister that an international power line be designated by order of the Governor in Council under section 258; and

(d)prescribing the form of elections filed under section 259.

291.1Regulations — excluded periods#

The Regulator may make regulations prescribing, for the purposes of subsection 262(6), the circumstances in which periods may be excluded from the calculation of the time limit.

Offences

292Offence and punishment#

(1)Every person who contravenes section 267, subsection 272(1), 273(1) or (2), 295(2) or (3), an order made under subsection 273(3) or an order or regulation made under section 275 is guilty of an offence and is liable

(a)on conviction on indictment, to a fine of not more than $1,000,000 or to imprisonment for a term of not more than five years, or to both; or

(b)on summary conviction, to a fine of not more than $100,000 or to imprisonment for a term of not more than one year, or to both.

(2)Subsections 379(2) to (6) apply, with any modifications that the circumstances require, in respect of an offence under this section.

293Offence#

(1)Every person who contravenes a regulation made under section 270 is guilty of an offence punishable on summary conviction.

(2)A person is not to be found guilty of an offence under this section if they establish that they exercised due diligence to prevent the commission of the offence.

Application of Certain Provisions

294Certificate or order before June 1, 1990#

(1)Sections 182 and 199 to 211 and Part 6, except sections 315 to 318, 335, 341 and 342, apply in respect of international power lines in respect of which a certificate was issued under the National Energy Board Act before June 1, 1990, or an order was made under subsection 58(2) of that Act as that subsection read before that date, as if each reference in any of those provisions to

(a)a company were a reference to the applicant for or holder of the certificate issued in respect of the power line or the person who operates the line in respect of which the order was made;

(b)a pipeline were a reference to the international power line; and

(c)hydrocarbons or any other commodity were a reference to electricity.

(2)A reference to an abandoned pipeline in the provisions referred to in subsection (1) is not a reference to an abandoned international or interprovincial power line.

295Terms and conditions before July 3, 2013#

(1)Terms and conditions in respect of any international or interprovincial power line that were, at any time before July 3, 2013, imposed under section 58.29 or 108 of the National Energy Board Act or by the Minister of Transport under the Canadian Navigable Waters Act apply as if they were conditions set out in the certificate or permit, as the case may be, issued in respect of the power line.

(2)If, at any time before July 3, 2013, the Minister of Transport had provided under section 58.3 or 108 of the National Energy Board Act that leave under either section, as the case may be, was not necessary because the power line was to be constructed in accordance with certain orders, regulations, plans and specifications, a person must not construct the power line otherwise than in accordance with those orders, regulations, plans and specifications or as specified by the Commission of the Regulator.

(3)If, at any time before July 3, 2013, the National Energy Board had provided under section 58.33 or 108 of the National Energy Board Act that leave under section 58.29 or 108 of that Act, as the case may be, was not necessary because the power line was to be constructed in accordance with certain orders or regulations, a person must not construct the power line otherwise than in accordance with those orders or regulations or as specified by the Commission of the Regulator.

Part 5 · Offshore Renewable Energy Projects and Offshore Power Lines

296Definitions#

(1)The following definitions apply in this Part.

authorization means an authorization issued under section 298. (autorisation)

debris means any facility, equipment or system that was put in place in the course of any work or activity required to be authorized under this Part and that has been abandoned without an authorization, or anything that has broken away or been jettisoned or displaced in the course of any such work or activity. (débris)

(2)A reference in this Part to “in a province” is, in relation to the Northwest Territories, a reference to “in the onshore, as defined in section 2 of the Northwest Territories Act”.

Prohibition

297Prohibition — work or activity#

A person must not, except in accordance with an authorization,

(a)carry on, in the offshore area, any work or activity that is related to an offshore renewable energy project or to an offshore power line; or

(b)carry on any work or activity to construct, operate or abandon any part of an offshore power line that is in a province.

Authorizations

298Issuance#

(1)On application, the Commission may issue an authorization for

(a)each work or activity that is proposed to be carried on, in the offshore area, in relation to an offshore renewable energy project or to an offshore power line; and

(b)each work or activity that is proposed to be carried on to construct, operate or abandon any part of an offshore power line that is in a province.

(2)An application must include any information that may be required by the Regulator, or prescribed by regulation, with respect to the proposed work or activity and to the offshore renewable energy project or offshore power line, including information with respect to any facility, equipment, system or vessel related to the project or power line.

(3)In determining whether to issue an authorization, the Commission must take into account — in light of, among other things, any Indigenous knowledge that has been provided to the Commission and scientific information and data — all considerations that appear to it to be relevant and directly related to the offshore renewable energy project or offshore power line, including

(a)the environmental effects, including any cumulative environmental effects;

(b)the safety and security of persons and the protection of property and the environment;

(c)the health, social and economic effects, including with respect to the intersection of sex and gender with other identity factors;

(d)the interests and concerns of the Indigenous peoples of Canada, including with respect to their current use of lands and resources for traditional purposes;

(e)the effects on the rights of the Indigenous peoples of Canada recognized and affirmed by section 35 of the Constitution Act, 1982;

(f)the extent to which the effects of the project or power line hinder or contribute to the Government of Canada’s ability to meet its environmental obligations and its commitments in respect of climate change; and

(g)any relevant assessment referred to in section 92, 93 or 95 of the Impact Assessment Act.

(4)The Commission must, within the time limit specified by the Lead Commissioner, issue the authorization or dismiss the application.

(5)The specified time limit must be no longer than 300 days after the day on which the applicant has, in the Commission’s opinion, provided a complete application.

(6)In the circumstances prescribed by regulations made under section 312.1, the Lead Commissioner may specify that a period is to be excluded from the calculation of the time limit within which the Commission must make its decision. The Lead Commissioner must provide reasons for doing so.

(7)The Minister may, by order, grant one or more extensions of the time limit specified under subsection (4).

(8)The Commission must make public the time limit specified under subsection (4), any period that is excluded and the reasons for the exclusion and any extension of time granted under subsection (7).

(9)An authorization is subject to any conditions that may be imposed by the Commission or under the regulations, including conditions with respect to

(a)approvals;

(b)deposits of money;

(c)liability for loss, damage, costs or expenses related to debris;

(d)the carrying out of safety studies or environmental programs or studies; and

(e)certificates of fitness and who may issue them.

(10)Every authorization is subject to the condition that the provisions of this Act and of the regulations, as well as every order made under the authority of this Act, will be complied with.

(11)A failure by the Commission to comply with subsection (4) within the required time limit does not affect its jurisdiction to deal with the application or its obligation to issue the authorization or dismiss the application, and anything done by it in relation to the application remains valid.

299Impact Assessment Act#

If an application under section 298 relates to a designated project, as defined in section 2 of the Impact Assessment Act, that is subject to an impact assessment under that Act,

(a)despite the time limit established under subsections 298(4) and (5), the Commission must make its decision under subsection 298(4) within seven days after the day on which the decision statement with respect to the project is posted on the Internet under section 66 of that Act;

(b)the Commission must make its decision under subsection 298(4) solely on the basis of the report referred to in paragraph 51(1)(d) of that Act; and

(c)subsections 298(3) and (6) to (8) do not apply with respect to the application.

300Variation or transfer#

(1)The Commission may, on application or on its own initiative, vary an authorization and may, on application, transfer an authorization.

(2)In varying or transferring an authorization, the Commission may impose any conditions in addition to or in lieu of any conditions to which the authorization was previously subject.

301Suspension or revocation#

(1)The Commission may, by order, suspend or revoke an authorization if the holder applies for or consents to the suspension or revocation or the holder has contravened a condition of the authorization.

Liability and Financial Requirements

302Recovery of loss, etc., caused by debris#

(1)If, as a result of debris or as a result of any action or measure taken in relation to debris, there is a loss of non-use value relating to a public resource or any person incurs actual loss or damage, or if Her Majesty in right of Canada or a province reasonably incurs any costs or expenses in taking any action or measure in relation to debris,

(a)all persons to whose fault or negligence the debris is attributable or who are by law responsible for others to whose fault or negligence the debris is attributable are jointly and severally, or solidarily, liable, to the extent determined according to the degree of the fault or negligence proved against them, for that loss, actual loss or damage and for those costs and expenses; and

(b)the person who is required to obtain an authorization in respect of the work or activity from which the debris originated is liable, without proof of fault or negligence, up to the applicable limit of liability that is determined under this section, for that loss, actual loss or damage and for those costs and expenses.

(2)A person who is required to obtain an authorization and who retains, to carry on a work or activity for which an authorization is required, the services of a contractor to whom paragraph (1)(a) applies is jointly and severally, or solidarily, liable with that contractor for any actual loss or damage, costs and expenses and loss of non-use value described in subsection (1).

(3)For the purposes of paragraph (1)(b), the limits of liability are

(a)in respect of a work or activity in any area of land or submarine area referred to in paragraph 6(1)(a) of the Arctic Waters Pollution Prevention Act, the amount by which $1 billion exceeds the amount prescribed under section 9 of that Act in respect of any activity or undertaking engaged in or carried on by any person described in paragraph 6(1)(a) of that Act; or

(b)in respect of any other work or activity for which an authorization is required, the amount of $1 billion.

(4)The Minister may, by order and on the Commission’s recommendation, approve an amount that is less than the amount referred to in paragraph (3)(a) or (b) in respect of a person who is required to obtain an authorization.

(5)The Governor in Council may, by regulation, on the recommendation of the Minister, increase the amounts referred to in subsection (3).

(6)If a person is liable under paragraph (1)(b) with respect to an occurrence and the person is also liable under any other Act of Parliament, without proof of fault or negligence, for the same occurrence, the person is liable up to the greater of the applicable limit of liability that is determined under the applicable subsection of this section and the limit up to which the person is liable under the other Act. If the other Act does not set out a limit of liability, the limits determined under this section do not apply.

(7)The costs and expenses that are recoverable by Her Majesty in right of Canada or a province under this section are not recoverable under subsection 42(1) of the Fisheries Act.

(8)Only Her Majesty in right of Canada or a province may bring an action to recover a loss of non-use value described in subsection (1).

(9)All claims under this section may be sued for and recovered in any court of competent jurisdiction in Canada. Claims in favour of persons incurring actual loss or damage described in subsection (1) are to be distributed pro rata and rank in priority over claims for costs and expenses described in that subsection, and the claims for costs and expenses rank in priority over claims to recover a loss of non-use value described in that subsection.

(10)Subject to subsections (7) and (8), nothing in this section suspends or limits

(a)any legal liability or remedy for an act or omission by reason only that the act or omission is an offence under this Act or gives rise to liability under this section;

(b)any recourse, indemnity or relief available at law to a person who is liable under this section against any other person; or

(c)the operation of any applicable law or rule of law that is not inconsistent with this section.

(11)Proceedings in respect of claims under this section may be instituted no later than the third anniversary of the day on which the loss, damage, costs or expenses occurred but in no case after the sixth anniversary of the day the facility, equipment or system in question was abandoned or the material in question broke away or was jettisoned or displaced.

(12)In this section, actual loss or damage includes loss of income, including future income, and, with respect to any Indigenous peoples of Canada, loss of hunting, fishing and gathering opportunities. It does not include loss of income recoverable under subsection 42(3) of the Fisheries Act.

303Financial resources#

(1)An applicant for an authorization must provide proof that the applicant has the financial resources necessary to pay an amount that is determined by the Commission. The proof must be in the form and manner that are prescribed by regulation or, in the absence of regulations, that are specified by the Regulator.

(2)In determining the amount, the Commission is not required to consider any potential loss of non-use value relating to a public resource that is affected as a result of debris.

(3)The holder of the authorization must ensure that the proof referred to in subsection (1) remains in force for the duration of the work or activity in respect of which the authorization is issued.

304Proof of financial responsibility#

(1)An applicant for an authorization must provide proof of financial responsibility in an amount that is determined by the Commission. The proof must be in the form of a letter of credit, guarantee or indemnity bond or in any other form satisfactory to the Regulator.

(2)The holder of an authorization must ensure that the proof of financial responsibility remains in force for the duration of the work or activity in respect of which the authorization is issued.

(3)The Regulator may require that moneys in an amount of not more than the amount prescribed by regulation for any case or class of cases, or fixed by the Regulator in the absence of regulations, be paid out of the funds available under the letter of credit, guarantee or indemnity bond or other proof provided under subsection (1) in respect of any claim for which proceedings may be instituted under section 302, whether or not those proceedings have been instituted.

(4)A required payment must be made in the manner, subject to any conditions and procedures, and to or for the benefit of the persons or classes of persons that may be prescribed by regulation for any case or class of cases, or that may be required by the Regulator in the absence of regulations.

(5)If a claim is sued for under section 302, there must be deducted from any award made pursuant to the action on that claim any amount received by the claimant under this section in respect of the loss, damage, costs or expenses claimed.

General Provisions

305Application of provisions in Part 4#

(1)Sections 272 and 273, subsections 274(1) and (2), sections 275 and 276, and section 292 in respect of those provisions, apply in respect of an offshore power line as if each reference in any of those provisions to

(a)an international or interprovincial power line were a reference to an offshore power line; and

(b)a permit referred to in section 248 or a certificate were a reference to an authorization.

(2)However, subsection 273(2) applies only in respect of any part of an offshore power line that is in a province.

306Application of provisions in Part 6#

(1)Part 6, except sections 315 to 318, 335 and 342, applies in respect of any part of an offshore power line that is in a province as if each reference in any of those provisions to

(a)a company were a reference to the applicant for or holder of the authorization issued in respect of the power line;

(b)a pipeline or line were a reference to that part of the power line; and

(c)hydrocarbons or any other commodity were a reference to electricity.

(2)Subsection 224(1) applies in respect of any part of an offshore power line that is in a province as if the reference to “any of the circumstances referred to in subsection (2)” were a reference to any of the following circumstances:

(a)leave has been obtained under subsection 272(2) or (5) in respect of that part;

(b)the authorization in respect of the power line contains a condition relating to the utility referred to in subsection 224(1);

(c)the power line has been constructed in circumstances specified in an order or regulation made under subsection 272(4).

(3)Subsections 316(1) to (3) apply in respect of any part of an offshore power line that is in a province as if each reference in any of those provisions to

(a)a company were a reference to the holder of the authorization issued in respect of the power line; and

(b)a pipeline or line were a reference to that part of the power line.

(4)Despite subsection (3), subsections 316(1) to (3) do not apply in respect of

(a)anything done under leave obtained under subsection 272(2) or (5) in respect of any part of an offshore power line that is in a province; and

(b)any such part that passes on, over, along or under a facility if an authorization has been issued in respect of the power line and the authorization contains a condition relating to that facility.

307Application of sections 317 and 318#

Sections 317 and 318 apply in respect of an offshore renewable energy project or an offshore power line as if each reference in that section to

(a)a company were a reference to a person; and

(b)a pipeline were a reference to an offshore renewable energy project or offshore power line.

308Limitations#

The holder of an authorization must not, unless the Commission has granted leave by order,

(a)sell or otherwise transfer to any person its offshore renewable energy project or offshore power line, in whole or in part;

(b)purchase or otherwise acquire an offshore renewable energy project or offshore power line from any person, in whole or in part;

(c)lease to any person its offshore power line or any facility, equipment or system related to its offshore renewable energy project, in whole or in part;

(d)lease from any person an offshore power line — or any facility, equipment or system related to an offshore renewable energy project — other than the one in respect of which the authorization is issued, in whole or in part; or

(e)if the holder is a company, amalgamate with another company.

309Right of entry#

(1)Any person may enter on and use any portion of the offshore area in order to carry on a work or activity

(a)authorized under subsection 298(1); or

(b)authorized under section 101 in respect of an abandoned offshore power line or an abandoned facility, equipment or system that is in respect of an offshore renewable energy project.

(2)If a person occupies a portion of the offshore area under lawful authority, other than through an authorization, no other person is permitted to enter on and use that portion as set out in subsection (1) without the consent of the occupier or, if consent has been refused, except in accordance with the conditions imposed in an arbitration.

310Study and report#

The Regulator may, by order, direct the holder of an authorization to study any safety or environmental protection issue that relates to their offshore renewable energy project or offshore power line and to report to the Regulator on the results within the period specified in the order.

311Offence and punishment#

(1)Every person who contravenes section 297, a condition of an authorization imposed under subsection 298(9), an order made under section 310 or a provision of a regulation made under section 312 commits an offence and is liable

(a)on conviction on indictment, to a fine of not more than $1,000,000 or to imprisonment for a term of not more than five years, or to both; or

(b)on summary conviction, to a fine of not more than $100,000 or to imprisonment for a term of not more than one year, or to both.

(2)Subsections 379(2) to (6) apply, with any modifications that the circumstances require, in respect of an offence under this section.

312Regulations#

The Governor in Council may make regulations

(a)respecting works and activities related to offshore renewable energy projects and to offshore power lines, for the purposes of safety, security and environmental protection;

(b)respecting the conditions referred to in subsection 298(9);

(c)prohibiting the introduction into the environment of substances, classes of substances and forms of energy in specified circumstances;

(d)respecting the creation, updating, conservation and disclosure of records;

(e)respecting arbitrations for the purposes of subsection 309(2), including the costs of or incurred in relation to such arbitrations; and

(f)prescribing anything that is to be prescribed under this Part, other than the circumstances referred to in subsection 298(6).

312.1Regulations — excluded periods#

The Regulator may make regulations prescribing, for the purposes of subsection 298(6), the circumstances in which periods may be excluded from the calculation of the time limit.

Part 6 · Lands

General Powers

313Powers of company#

A company may, for the purposes of its undertaking, subject to this Act and to any Special Act applicable to it,

(a)enter into and on any Crown land without previous licence, or into and on the land of any person, lying in the intended route of its pipeline, and make surveys, examinations or other necessary arrangements on the land for fixing the site of the pipeline and set out and ascertain the parts of the land that are necessary and appropriate for the pipeline;

(b)acquire, lease and take from any person any land or other property necessary for the construction, maintenance, operation and abandonment of its pipeline or the maintenance of its abandoned pipeline and sell or otherwise dispose of, or lease, any of its land or property that has become unnecessary for the purpose of the pipeline or the abandoned pipeline;

(c)construct its pipeline across, on or under the land of any person on the located line of the pipeline;

(d)join its pipeline with the transmission facilities of any other person at any point on its route;

(e)construct, erect and maintain all necessary and convenient roads, buildings, houses, stations, depots, wharves, docks and other structures and construct, acquire and lease machinery and other apparatus necessary for the construction, maintenance, operation and abandonment of its pipeline or the maintenance of its abandoned pipeline;

(f)construct, maintain and operate branch lines and for that purpose exercise all the powers, privileges and authority necessary for that purpose in as full and ample a manner as for a pipeline;

(g)alter, repair or discontinue the works mentioned in this section, or any of them, and substitute others in their stead;

(h)transmit hydrocarbons or any other commodity by pipeline and regulate the time and manner in which hydrocarbons or any other commodity are to be transmitted and the tolls to be charged; and

(i)do all other acts necessary for the construction, maintenance, operation and abandonment of its pipeline or the maintenance of its abandoned pipeline.

314Damages and compensation#

A company must, in the exercise of the powers granted by this Act or a Special Act, do as little damage as possible, and must make full compensation in the manner provided in this Act and in a Special Act to all persons interested, for all damage sustained by them by reason of the exercise of those powers.

315Exercise of powers outside Canada#

A company operating a pipeline from a place in Canada to a place on the international boundary line may exercise, beyond that boundary, to the extent permitted by the laws there in force, the powers that it may exercise in Canada.

Taking and Using Crown Lands

316Crown lands#

(1)A company must not take possession of, use or occupy lands vested in Her Majesty without the consent of the Governor in Council.

(2)A company may, with the consent of the Governor in Council and on any terms that the Governor in Council may prescribe, take and appropriate, for the use of its pipeline and works, the portion of the lands of Her Majesty lying on the route of the line that have not been granted, conceded or sold, and that is necessary for the pipeline, and also the portion of the public beach, or bed of a lake, river or stream, or of the lands so vested covered with the waters of a lake, river or stream that is necessary for making, completing and using its pipeline and works.

(3)If lands are vested in Her Majesty for a special purpose, or subject to a trust, the compensation money that a company pays for the lands must be held and applied by the Governor in Council for that purpose or trust.

(4)Subsections (1) to (3) do not apply to any of the following:

(a)anything done under leave obtained under subsection 217(2) or (5) in respect of the pipeline;

(b)any section or part of the pipeline that passes on, over, along or under a utility, as defined in subsection 217(6), if a certificate has been issued, or an order has been made under section 214, in respect of the pipeline and the certificate or order contains a condition relating to that utility;

(c)any section or part of the pipeline that passes in, on, over, under, through or across a navigable water if a certificate has been issued, or an order has been made under section 214, in respect of the pipeline; and

(d)anything done under any leave obtained under section 108 of the National Energy Board Act at any time before July 3, 2013, as that section read from time to time before that day.

Certain Lands for Which Consent Required

317Consent of council of the band#

(1)Despite section 35 of the Indian Act, a company must not, for the purpose of constructing a pipeline or engaging in the activities referred to in paragraph 313(a), take possession of, use or occupy lands in a reserve, within the meaning of subsection 2(1) of the Indian Act, without the consent of the council of the band, within the meaning of that subsection.

(2)For greater certainty, nothing in subsection (1) is to be construed as modifying the application of the other provisions of this Act.

(3)A company must not take possession of, use or occupy the following lands without the consent of the Governor in Council:

(a)Category IA-N land, as defined in subsection 2(1) of the Naskapi and the Cree-Naskapi Commission Act;

(a.1)Category IA land, as defined in subsection 2(2) of the Cree Nation of Eeyou Istchee Governance Agreement Act; or

(b)shíshálh lands, as defined in subsection 2(1) of the shíshálh Nation Self-Government Act.

(4)If the lands referred to in subsection (1) or (3) are taken possession of, used or occupied by a company, or if they are injuriously affected by the construction of a pipeline, compensation must be made by that company.

^note

318Consent of Yukon first nation or Governor in Council#

(1)A company must not, if the Yukon first nation concerned does not consent to it, take possession of, use or occupy settlement land as defined in section 2 of the Yukon Surface Rights Board Act without the consent of the Governor in Council.

(2)A company must not, if the Gwich’in Tribal Council does not consent to it, take possession of, use or occupy Tetlit Gwich’in Yukon land without the consent of the Governor in Council.

(3)If land referred to in subsection (1) or (2) is to be taken possession of, used or occupied without the consent of the Yukon first nation or Gwich’in Tribal Council, as the case may be,

(a)a public hearing in respect of the location and extent of the land to be taken possession of, used or occupied must be held in accordance with the following procedure:

(i)notice of the date, time and place for the public hearing must be given to the Yukon first nation or Gwich’in Tribal Council and the public,

(ii)on the date and at the time and place fixed for the public hearing, an opportunity must be provided for the Yukon first nation or Gwich’in Tribal Council and the public to be heard,

(iii)costs incurred by any party in relation to the hearing are at the discretion of the person or body holding the hearing and may be awarded on or before the final disposition of the issue, and

(iv)a report on the hearing must be prepared and submitted to the Minister; and

(b)notice of intention to obtain the consent of the Governor in Council must be given to the Yukon first nation or Gwich’in Tribal Council on completion of the public hearing and submission of a report on the hearing to the Minister.

(4)If the lands referred to in subsection (1) or (2) are taken possession of, used or occupied by a company, or if they are injuriously affected by the construction of a pipeline, compensation must be made by that company.

(5)In this section, Tetlit Gwich’in Yukon land means land as described in Annex B, as amended from time to time, to Appendix C of the Comprehensive Land Claim Agreement between Her Majesty in right of Canada and the Gwich’in, as represented by the Gwich’in Tribal Council, that was approved, given effect and declared valid by the Gwich’in Land Claim Settlement Act.

Application

319Application restricted#

The provisions of this Part to determine compensation matters apply in respect of all damage, including the loss of value of the lands, caused by the operation of section 335 or by the pipeline or abandoned pipeline or anything transmitted by the pipeline but do not apply to

(a)claims against a company arising out of activities of the company unless those activities are directly related to

(i)the acquisition or lease of lands for a pipeline or abandoned pipeline,

(ii)the construction of the pipeline, or

(iii)the inspection, maintenance or repair of the pipeline or abandoned pipeline;

(b)claims against a company for loss of life or injury to the person; or

(c)awards of compensation or agreements respecting compensation made or entered into prior to March 1, 1983.

Acquisition or Lease of Lands

320Definition of owner#

In sections 321 to 334, owner means any person who is entitled to compensation under section 314.

321Methods of acquisition or lease#

(1)Subject to subsection (2), a company may acquire or lease lands for a pipeline under a land acquisition or lease agreement entered into between the company and the owner of the lands or, in the absence of such an agreement, in accordance with this Part.

(2)A company must not acquire or lease lands for a pipeline under an agreement referred to in subsection (1) unless the agreement includes provision for

(a)compensation for the acquisition or lease of lands to be made, at the option of the owner of the lands, by one lump sum payment or by periodic payments of equal or different amounts over a specified period of time;

(b)review every five years of the amount of any compensation payable in respect of which periodic payments have been selected;

(c)compensation for damages caused by the company’s operations, pipelines or abandoned pipelines;

(d)indemnification from all liabilities, damages, claims, suits and actions resulting from the company’s operations, pipelines or abandoned pipelines, other than liabilities, damages, claims, suits and actions resulting from

(i)in Quebec, the gross or intentional fault of the owner of the lands, and

(ii)elsewhere in Canada, the gross negligence or wilful misconduct of the owner of the lands;

(e)restriction of the use of the lands to the line of pipe or other facility for which the lands are, by the agreement, specified to be required unless the owner of the lands consents to any proposed additional use at the time of the proposed additional use;

(f)compensation to the owner of the lands if the use of those lands is restricted by the operation of section 335;

(g)compensation to the owner of the lands for any adverse effect on the remaining lands of the owner, including the restriction of their use by the operation of section 335; and

(h)any additional terms that are, at the time the agreement is entered into, required to be included in it by any regulations made under paragraph 333(d).

322Notice of proposed acquisition or lease of lands#

(1)If a company has determined the lands that may be required for the purposes of a section or part of a pipeline, the company must serve a notice on all owners of the lands, to the extent that they can be ascertained, which notice must set out or be accompanied by

(a)a description of the lands of the owner that are required by the company for that section or part;

(b)details of the compensation offered by the company for the lands required;

(c)a detailed statement made by the company of the value of the lands required in respect of which compensation is offered;

(d)a description of the procedure for approval of the detailed route of the pipeline;

(e)a description of the procedure available under this Part in the event that the owner of the lands and the company are unable to agree on any matter respecting the compensation payable; and

(f)any prescribed information.

(2)If an agreement referred to in section 321 is entered into with an owner of lands before a notice is served on the owner under this section, that agreement is void or, in Quebec, null.

(3)If a company serves a notice on an owner of lands under subsection (1) and subsequently decides not to acquire or lease all or part of the land described in the notice, it is liable to the owner for all damages suffered and reasonable costs incurred by the owner in consequence of the notice and the abandonment of the acquisition or lease of the land.

323Agreement of purchase and sale#

Subsections 321(2) and 322(1) do not apply during any period in which an agreement of purchase and sale with respect to the lands referred to in those subsections is in effect between the company and the owner of those lands.

Right of Entry

324Immediate right of entry#

(1)Subject to subsection 317(1), if the Commission considers it appropriate to do so, the Commission may, by order, on application to the Regulator in writing by a company, grant to the company an immediate right to enter any lands on any conditions specified by the Commission in the order.

(2)The Commission is not authorized to make an order under subsection (1) unless the Commission is satisfied that the owner of the lands in question has, not less than 30 days and not more than 60 days before the date of the application, been served with a notice setting out

(a)the purpose of the right of entry referred to in subsection (1);

(b)the date on which the company intends to make its application to the Regulator under subsection (1);

(c)the date on which the company intends to enter the lands and the period during which the company intends to have access to the lands;

(d)the address of the Regulator to which any objection in writing that the owner may make concerning the issuance of the order may be sent; and

(e)a description of the right of the owner to an advance of compensation under section 325 if the order is issued and the amount of the advance that the company is prepared to make.

325Advance of compensation#

If a company has been granted an immediate right to enter lands under subsection 324(1), the owner of the lands is entitled to receive from the company an amount as an advance of the compensation referred to in subsection 327(1).

326Vesting#

(1)An order under subsection 324(1) that grants a company an immediate right to enter lands is deemed to have vested in the company any title, interest or right in the lands that is specified in the order.

(2)Within 30 business days after the day on which the order is made, the company must register or deposit the order with the appropriate land registrar and notify the Regulator and the owner of the lands of its deposit.

Determination of Compensation

327Determinations regarding compensation#

(1)If a company and an owner of lands have not agreed on any matter relating to the compensation payable under this Part, the Commission, on application by a company or any owner, must, by order, determine that matter.

(2)In determining any matter under subsection (1) for the acquisition or lease of lands, the Commission must consider the following factors:

(a)the market value of the lands taken by the company;

(b)if periodic payments are being made under an agreement or an order of the Commission, changes in the market value referred to in paragraph (a) since the agreement or order of the Commission or since the last review and adjustment of those payments, as the case may be;

(c)the loss of use to the owner of the lands taken by the company or whose use is otherwise restricted by the operation of section 335;

(d)the adverse effect of the taking of the lands by the company on the remaining lands of an owner, including by restricting their use by the operation of section 335;

(e)the nuisance, inconvenience and noise that may reasonably be expected to be caused by or arise from or in connection with the operations of the company;

(f)the damage to lands in the area of the lands taken by the company that might reasonably be expected to be caused by the operations of the company;

(g)loss of or damage to livestock or other personal property or movable affected by the operations of the company;

(h)any special difficulties in relocation of an owner or their property;

(i)any other factors that the Commission considers appropriate in the circumstances; and

(j)other prescribed factors that are prescribed under paragraph 333(e).

(3)For the purpose of paragraph (2)(a), market value is the amount that would have been paid for the lands if, at the time of their taking, they had been sold in the open market by a willing seller to a willing buyer.

328Settlement land or Tetlit Gwich’in Yukon land#

If the Commission determines a compensation matter involving land referred to in section 318, sections 3, 26 to 31, 36, 54 to 58, 63, 67 and 72 of the Yukon Surface Rights Board Act apply to the Commission as if it were the Yukon Surface Rights Board.

329Form of compensation payment if land taken#

(1)If the Commission makes an award of compensation in favour of a person whose lands are taken by a company, the Commission must, by order, direct, at the option of that person, that the compensation or any part of it be made by one lump sum payment or by periodic payments of equal or different amounts over a specified period of time.

(2)If the Commission makes an award of compensation in favour of any person other than a person referred to in subsection (1), the Commission may, by order, direct, at the request of that person, that the compensation or any part of it be made by periodic payments of equal or different amounts over a specified period of time and that there be a periodic review of the compensation or part of the compensation.

(3)Every award of compensation made by the Commission in respect of lands acquired or leased by a company must include provision for those matters referred to in paragraphs 321(2)(b) to (h) that would be required to be included in a land acquisition or lease agreement referred to in section 321.

(4)The Commission may, by order, direct a company to pay interest on the amount of any compensation awarded by the Commission at the lowest rate of interest quoted by banks to the most credit-worthy borrowers for prime business loans, as determined and published by the Bank of Canada for the month in which, as the case may be,

(a)the company entered the lands in respect of which the compensation is awarded; or

(b)the damages suffered as a result of the operations of the company first occurred.

(5)Interest may be awarded under subsection (4) from the date the event referred to in paragraph (4)(a) or (b), as the case may be, occurred or from any later date that the Commission may specify in its award.

330Costs#

(1)If the amount of compensation awarded to a person by the Commission exceeds 85% of the amount of compensation offered by the company, the company must pay all legal, appraisal and other costs determined by the Commission to have been reasonably incurred by that person in asserting that person’s claim for compensation.

(2)If the amount of compensation awarded to a person by the Commission does not exceed 85% of the amount of compensation offered by the company, the legal, appraisal and other costs incurred by that person in asserting their claim for compensation are at the discretion of the Commission, and the Commission may, by order, direct the company or any other party to the proceedings to pay the whole or any part of those costs.

331Decisions#

The Commission must, within seven days after it makes a decision on an application, ensure that a copy of the decision is forwarded by mail to the company and to each other party to the proceeding.

332Agreements supersede Commission decisions#

If, at any time after a decision of the Commission has been made in respect of lands acquired or leased by a company, the parties affected enter into a land acquisition or lease agreement referred to in subsection 321(1), the agreement supersedes the decision of the Commission.

Regulations and Orders Respecting Acquisition, Lease or Taking of Lands and Compensation Matters

333Regulations#

The Regulator may, with the approval of the Governor in Council, make regulations respecting the acquisition, lease or taking of lands and compensation matters, including regulations

(a)prescribing compensation matters related to the operation of section 335;

(b)respecting the form and manner in which a notice is served for the purpose of section 201 and subsection 322(1);

(c)respecting the procedures for the acquisition, lease or taking of lands for the purpose of subsection 321(1);

(d)prescribing additional terms to be added to those that must be included in a land acquisition or lease agreement under paragraphs 321(2)(a) to (g);

(e)prescribing additional factors to be added to those that the Commission must consider under paragraphs 327(2)(a) to (i);

(f)governing the procedures for the Commission to make orders under section 334;

(g)respecting the receipt and holding by the Regulator of copies of any agreements referred to in subsection 321(1) that are submitted voluntarily by a company and owner of the lands in question;

(h)prescribing any matter or thing that by this Part is to be or may be prescribed; and

(i)generally to carry out the purposes and provisions of this Part.

334Orders of Commission#

(1)On application, the Commission may, by order, give directions, including to determine any compensation payable under this Part, with respect to pipelines and abandoned pipelines in relation to

(a)the acquisition, lease or taking of lands;

(b)lands whose use is restricted by the operation of section 335, whether or not the lands were acquired, leased or taken; and

(c)damages caused by the activities of the company to any person, provincial government, local authority and government or Indigenous governing body during their planning, construction, operation or abandonment.

(2)In determinating any compensation matter under paragraph (1)(a), the Commission must consider the factors referred to in paragraphs 327(2)(a) to (j).

Damage Prevention

335Prohibition — construction or ground disturbance#

(1)It is prohibited for any person to construct a facility across, on, along or under a pipeline or engage in an activity that causes a ground disturbance within the prescribed area unless the construction or activity is authorized or required by the orders made under subsection (3) or (4) or regulations made under subsections (5) or (6) and done in accordance with them.

(2)It is prohibited for any person to operate a vehicle or mobile equipment across a pipeline unless

(a)that operation is authorized or required by orders made under subsection (3) or (4) or regulations made under subsections (5) or (6) and done in accordance with them; or

(b)the vehicle or equipment is operated within the travelled portion of a highway or public road.

(3)The Commission may, by order, direct the owner of a facility constructed across, on, along or under a pipeline in contravention of this Act or the Commission’s orders or regulations to do any things that the Commission considers necessary for the safety or security of the pipeline and, if the Commission considers that the facility may impair the safety or security of the operation of the pipeline, direct the owner to reconstruct, alter or remove the facility.

(4)The Commission may, by order, give directions

(a)governing the design, construction, operation and abandonment of facilities constructed across, on, along or under pipelines;

(b)prescribing the area for the purposes of subsection (1);

(c)authorizing the construction of facilities across, on, along or under pipelines;

(d)authorizing ground disturbances within the prescribed area;

(e)governing the measures to be taken in relation to

(i)the construction of facilities across, on, along or under pipelines,

(ii)the construction of pipelines across, on, along or under facilities, other than railways, and

(iii)ground disturbances within the prescribed area;

(f)authorizing the operation of vehicles or mobile equipment across a pipeline and governing the measures to be taken in relation to that operation;

(g)governing the apportionment of costs directly incurred as a result of the construction or disturbance authorized under this section;

(h)specifying activities for the purposes of paragraph (a) of the definition ground disturbance in section 2 in respect of pipelines; and

(i)authorizing a company to give the authorization referred to in paragraph (c), (d) or (f) on any conditions that the company considers appropriate.

(5)The Regulator may make regulations respecting any matter referred to in paragraphs (4)(a) to (f) and (h).

(6)The Regulator may, with the approval of the Governor in Council, make regulations

(a)governing the apportionment of costs directly incurred as a result of the construction or disturbance authorized under this section; and

(b)authorizing a company to give the authorization referred to in paragraph (4)(c), (d) or (f), subject to any conditions that the company considers appropriate.

(7)Orders made under subsection (4) and regulations made under subsection (5) may provide for the prohibition of ground disturbances in an area that is situated in the vicinity of a pipeline and that may extend beyond the prescribed area during the period that starts when a request is made to a pipeline company to locate its pipeline and ends

(a)at the end of the third working day after the day on which the request is made; or

(b)at any later time that is agreed to between the pipeline company and the person making the request.

(8)The Commission may, by order made subject to any conditions that the Commission considers appropriate, exempt any person from the application of an order made under subsection (4) or a regulation made under subsection (5) or (6).

(9)Every person who contravenes subsection (1) or (2), an order made under subsection (3) or (4) or a regulation made under subsection (5) or (6) is guilty of an offence and liable

(a)on conviction on indictment, to a fine of not more than $1,000,000 or to imprisonment for a term of not more than five years or to both; or

(b)on summary conviction, to a fine of not more than $100,000 or to imprisonment for a term of not more than one year or to both.

(10)Subsections 379(2) to (6) apply, with any modifications that the circumstances require, to an offence under subsection (9).

Mines and Minerals

336Protection of mines#

A company must not, without a designated officer having, by order, authorized it to do so, locate the line of its proposed pipeline, or construct the pipeline or any portion of the pipeline, so as to obstruct or interfere with or injuriously affect the working of or the access or adit to a mine then open, or for the opening of which preparations are, at the time of the location, being lawfully and openly made.

337Right to minerals#

A company is not, unless they have been expressly purchased, entitled to mines, ores, metals, coal, slate, oil, gas or other minerals in or under lands purchased by it, or taken by it under compulsory powers given to it by this Act, except only the parts of them that are necessary to be dug, carried away or used in the construction of the works, and, except as provided in this section, all those mines and minerals are deemed to be excepted from the transfer of the lands, unless they have been expressly included in the transfer documents.

338Protection of pipeline from mining operations#

(1)A person must not work or prospect for mines or minerals lying under a pipeline or any of the works connected with the pipeline, or within 40 m of the pipeline, without a designated officer having, by order, authorized it to do so.

(2)Despite subsection (1), an order from a designated officer is not required in the case of a well taking oil or gas from lands lying under a pipeline or any of the works connected with the pipeline if the well is not drilled within 40 m of the pipeline.

(3)On an application for an order under subsection (1), the applicant must submit a plan and profile of the portion of the pipeline to be affected, giving all reasonable and necessary information respecting the proposed operations.

(4)The designated officer may grant the application referred to in subsection (3), subject to any conditions for the protection, safety or security of persons that the designated officer considers appropriate, and may, by order, direct that any things be done that under the circumstances the designated officer considers to be best adapted to remove or diminish the danger arising or likely to arise from the proposed operations.

339Examination of site of mining operations#

If necessary in order to ascertain whether any mining or prospecting operations have been carried on so as to injure or be detrimental to a pipeline or its safety or security or the safety or security of persons, a company may, if a designated officer, by order, authorizes it to do so and after giving 24 hours notice in writing, enter on any lands through or near which its pipeline passes where any mining or prospecting operations are being carried on, and enter into and return from the site of the operations, and for those purposes the company may make use of any apparatus used in connection with the operations and use all necessary means for discovering the distance from its pipeline to the place where the operations are being carried on.

340Compensation for severance, etc., of mining property#

A company must, from time to time, pay to the owner, lessee or occupier of any mines any compensation that the Commission fixes and, by order, directs to be paid for or by reason of any severance by a pipeline of the land lying over the mines, the working of the mines being prevented, stopped or interrupted, or the mines having to be worked in any manner and under any restrictions so as not to injure or be detrimental to the pipeline, and also for any minerals not purchased by the company that cannot be obtained by reason of the construction and operation of its line.

Executions

341Assets of company subject to executions#

(1)Nothing in this Act restricts or prohibits any of the following transactions:

(a)the sale under execution of any property of a company;

(b)the creation of any lien, mortgage, hypothec, charge or other security on the property of the company, or of any prior claim or right of retention within the meaning of the Civil Code of Québec or any other statute of Quebec with respect to property of the company;

(c)the sale, elsewhere than in Quebec, under an order of a court of any property of the company to enforce or realize on any lien, mortgage, charge or other security on the property of the company;

(d)the sale, in Quebec, under an order of a court or by judicial authority, of any property of the company to enforce or realize on any hypothec, charge or other security on the property of the company; and

(e)the exercise of remedies for the enforcement and realization of any prior claim referred to in paragraph (b) or the exercise of any right of retention referred to in that paragraph.

(2)A transaction mentioned in subsection (1) in respect of any property of a company is subject to the same laws to which it would be subject if the work and undertaking of the company were a local work or undertaking in the province in which that property is situated.

Construing Special Acts

342Construing Special Acts#

Except as otherwise provided in this Part,

(a)this Act must be construed as incorporate with a Special Act; and

(b)in the event of an inconsistency between a provision of this Part and of a provision of a Special Act, the provision of the Special Act prevails to the extent of the inconsistency.

Part 7 · Exports and Imports

Division 1 — Oil and Gas

Prohibition

343Prohibition — export#

A person must not export oil or gas except in accordance with a licence issued under this Part or as authorized under the regulations made under this Part.

Issuance of Licences for Exportation

344Issuance#

(1)Subject to the regulations, the Commission may, with the Minister’s approval, issue licences for the exportation of oil or gas and impose conditions on them.

(2)Every licence is subject to the condition that the provisions of this Act and its regulations, as well as every order made under this Act, will be complied with.

345Criteria#

The Commission must not issue a licence unless it is satisfied that the quantity of oil or gas to be exported does not exceed the surplus remaining after allowance has been made for the reasonably foreseeable requirements for use in Canada, having regard to trends in the discovery of oil or gas in Canada.

346Time limit#

(1)The Commission must decide whether to issue a licence for the exportation of oil or gas within 180 days after the day on which the Commission considers that the applicant has provided a complete application. The Commission must make that day public.

(2)A failure by the Commission to comply with subsection (1) within the required time limit does not affect its jurisdiction to issue the licence and anything done by it in relation to the issuance of that licence remains valid.

(3)If the Commission requires that the applicant provide information or undertake a study with respect to the application and the Commission states publicly that this subsection applies, the period that is taken by the applicant to comply with the requirement is not included in the calculation of the time limit.

(4)The Commission must make the day on which the period referred to in subsection (3) begins and the day on which it ends public as soon as each day is known.

(5)The Minister may, by order, extend the time limit by a maximum of 90 days. The Governor in Council may, on the Minister’s recommendation, by order, further extend that time limit by any additional period or periods of time.

346.1Maximum validity — liquefied natural gas#

(1)The period of validity of a licence for the exportation of liquefied natural gas begins on a date to be fixed in the licence and must not exceed 50 years.

(2)The following definitions apply in this section and section 353.

liquefied natural gas means natural gas that is in a liquid state. (gaz naturel liquéfié)

natural gas means a mixture of gas that is composed of at least 85% methane and that may also contain other hydrocarbons that, at a temperature of 15°C and an absolute pressure of 101.325 kPa, are in a gaseous state, as well as minor amounts of non-hydrocarbon gas and impurities. (gaz naturel)

^note

347Ministerial approval#

(1)The Minister must decide whether to grant his or her approval of the issuance of a licence for the exportation of oil or gas within 90 days after the day on which the Commission makes its decision under subsection 346(1).

(2)Despite subsection (1), if the Minister grants his or her approval after the expiry of the time limit for doing so, the Commission’s jurisdiction to issue the licence is not affected and anything done by it in relation to the issuance of that licence remains valid.

(3)The Commission must issue the licence within seven days after the day on which the Minister grants his or her approval.

Variation, Transfer, Suspension and Revocation

348Variation of licences#

(1)The Commission may, on application or its own initiative, vary a licence issued under this Division. However, if the Commission considers that the variation is neither minor nor technical in nature, the Commission must not do so without the approval of the Minister.

(2)The Minister may approve a variation under subsection (1) if he or she considers that it is in the public interest to do so.

(3)In varying a licence, the Commission may impose — in addition to or in lieu of any conditions to which the licence was previously subject — any conditions that the Commission considers necessary or appropriate to give effect to the purposes and provisions of this Act.

349Transfer of licences#

(1)The Commission may, on application, transfer a licence issued under this Division. However, if the Commission considers that the transfer is neither minor nor technical in nature, the Commission must not do so without the approval of the Minister.

(2)The Minister may approve a transfer of a licence if he or she considers that it is in the public interest to do so.

(3)In transferring a licence, the Commission may impose — in addition to or in lieu of any conditions to which the licence was previously subject — any conditions that the Commission considers necessary or appropriate to give effect to the purposes and provisions of this Act.

350Suspension or revocation of licences — application or consent#

The Commission may, by order, suspend or revoke a licence issued under this Division if the holder applies for or consents to the suspension or revocation.

351Suspension or revocation of licences — contravention#

(1)The Commission may, by order, suspend or revoke a licence issued under this Division if the holder has contravened a condition of the licence.

(2)The Commission may, by order and with the approval of the Minister, suspend or revoke a licence issued under this Division if the Commission considers that it is in the public interest to do so.

(3)The Commission must not make an order under subsection (1) or (2) unless the Commission provides the holder of the licence with notice of the alleged contravention or the reasons why it considers a suspension or revocation to be in the public interest, as the case may be, and gives the holder an opportunity to be heard.

Importation of Oil or Gas

352Importer#

Unless exempted by the regulations, for each prescribed reporting period every person who imports oil or gas must provide the prescribed information to the Regulator in the prescribed form and manner.

Regulations

353Regulations#

(1)The Governor in Council may make regulations for the purposes of this Division, including regulations

(a)respecting the quantities that may be exported under licences, the period of validity of licences — other than licences for the exportation of liquefied natural gas — and any other conditions to which licences may be subject;

(b)authorizing the Commission to make orders authorizing the exportation of oil or gas and prescribing the circumstances in which the Commission may make, and the conditions that may be included in, those orders;

(c)prescribing the conditions under which the exportation of oil or gas may be carried out without a licence;

(d)prescribing the inspection of any instruments, devices, plant, equipment, books, records or accounts or any other thing used for or in connection with the exportation or importation of oil or gas;

(e)prescribing the immediate measures to take in respect of oil or gas seized by an officer referred to in section 380;

(f)prescribing, in respect of oil or gas the exportation of which is authorized under this Part, or any quality, kind or class of that oil or gas or type of service relating to it, the price at which or the range of prices within which that oil or gas must be sold; and

(g)exempting oil or gas that is exported to Chile or Costa Rica, or any quality, kind or class of that oil or gas or type of service relating to it, from the application of regulations made under paragraph (f).

(2)The period of validity referred to in paragraph (1)(a) begins on a date to be fixed in the licence and must not exceed

(a)40 years, in the case of a licence for the exportation of natural gas; and

(b)25 years, in any other case.

(3)Regulations made under paragraph (1)(f) may prescribe different prices or ranges of prices in respect of different countries.

354Regulations — Governor in Council approval#

(1)Subject to the approval of the Governor in Council, the Regulator may make regulations

(a)exempting persons or classes of persons from the application of section 352; and

(b)prescribing anything that is to be prescribed under that section.

(2)The Regulator may make regulations

(a)respecting the information to be provided by applicants for licences and the procedure to be followed in applying for licences and in issuing licences; and

(b)prescribing units of measurement and measuring instruments or devices to be used in connection with the exportation or importation of oil or gas.

Division 2 — Electricity

Prohibition

355Export#

A person must not export electricity except in accordance with a permit issued under section 356 or a licence issued under section 361.

Issuance of Permits

356Issuance#

(1)Except in the case of an application designated by order of the Governor in Council under section 360, the Commission must, on application to it and without holding a public hearing, issue a permit authorizing the exportation of electricity.

(2)The application must be accompanied by any information prescribed by regulation.

357Publication#

(1)The applicant must cause a notice of the application to be published in the Canada Gazette and in any other publication that the Commission considers appropriate.

(2)The Commission may waive the requirement set out in subsection (1) if it considers that there is a critical shortage of electricity outside Canada caused by terrorist activity, as defined in subsection 83.01(1) of the Criminal Code.

358Further information#

The Commission may, within a reasonable time after the publication of the notice, require the applicant to provide any additional information that the Commission considers necessary to determine whether to make a recommendation under section 359.

359Delay of issuance#

(1)The Commission may make a recommendation to the Minister, which it must make public, that an application for exportation of electricity be designated by order of the Governor in Council under section 360 and may delay issuing a permit during any period that is necessary for the purpose of making such an order.

(2)In determining whether to make a recommendation, the Commission must seek to avoid the duplication of measures taken in respect of the exportation by the applicant and the government of the province from which the electricity is to be exported and must take into account

(a)the effect of the exportation of the electricity on provinces other than that from which the electricity is to be exported;

(b)whether the applicant has

(i)informed those who have declared an interest in buying electricity for consumption in Canada of the quantities and classes of service available for sale, and

(ii)given an opportunity to buy electricity on conditions as favourable as the conditions specified in the application to those who, within a reasonable time after being so informed, demonstrate an intention to buy electricity for consumption in Canada; and

(c)any factors that are specified in the regulations.

Orders

360Where licence required#

(1)The Governor in Council may make orders

(a)designating an application for exportation of electricity as an application in respect of which section 361 applies; and

(b)revoking any permit issued in respect of the exportation.

(2)No order may be made under subsection (1) more than 45 days after the day on which a permit is issued in respect of the application.

(3)If an order is made under subsection (1),

(a)a permit must not be issued in respect of the application; and

(b)any application in respect of the exportation must be dealt with as an application for a licence.

Issuance of Licences

361Issuance#

(1)The Commission may, subject to the approval of the Governor in Council, issue a licence for the exportation of electricity in relation to which an order made under section 360 is in force.

(2)Before issuing a licence, the Commission must take into account

(a)the effect of the exportation of the electricity on provinces other than from which the electricity is to be exported;

(b)whether the applicant has

(i)informed those who have declared an interest in buying electricity for consumption in Canada of the quantities and classes of service available for sale, and

(c)any factors that are specified in the regulations.

(3)Any permit issued in respect of an application for a permit for the exportation of electricity in relation to which an order made under section 360 is in force and that is not revoked by the order is revoked on the Commission’s deciding not to issue a licence for that exportation.

Conditions of Permits and Licences

362Conditions — permits#

(1)The Commission may make a permit issued under section 356 subject to any conditions respecting the matters prescribed by the regulations that it considers necessary or in the public interest.

(2)The Commission may make a licence issued under section 361 subject to any conditions that it considers appropriate.

363Compliance#

Every permit and licence is subject to the condition that the provisions of this Act and its regulations, as well as every order made under this Act, will be complied with.

364Period of validity#

The period of validity of a permit or licence must not exceed 30 years.

365Variation or transfer of permits or licences#

(1)The Commission may, on application or its own initiative, vary a permit or licence issued in respect of the exportation of electricity and may, on application, transfer such a permit or licence.

(2)In varying or transferring a permit or licence, the Commission may impose — in addition to or in lieu of any conditions to which the permit or licence was previously subject — any conditions that the Commission considers necessary or appropriate in order to give effect to the purposes and provisions of this Act.

366Suspension or revocation of permits or licences#

(1)The Commission may, by order, suspend or revoke a permit or licence issued in respect of the exportation of electricity if the holder applies for or consents to the revocation or suspension or the holder has contravened a condition of the permit or licence.

(2)The Commission must not make an order under subsection (1) for a contravention unless the Commission provides the holder of the permit or licence with notice of the alleged contravention and gives the holder an opportunity to be heard.

Regulations

367Regulations — Governor in Council#

(1)The Governor in Council may make regulations for the purposes of this Division, including regulations

(a)prescribing matters in respect of which conditions may be imposed on permits;

(b)specifying factors that the Commission must take into account in deciding whether to recommend to the Minister that an application for a permit for the exportation of electricity be designated by order of the Governor in Council under section 360;

(c)specifying factors that the Commission must take into account in deciding whether to issue a licence for the exportation of electricity in relation to which an order made under section 360 is in force; and

(d)the inspection of any instruments, devices, plant, equipment, books, records or accounts or any other thing used for or in connection with the exportation of electricity.

(2)The Regulator may make regulations prescribing

(a)the information to be provided with applications for permits for the exportation of electricity; and

(b)units of measurement and measuring instruments or devices to be used in connection with the exportation of electricity.

Division 3 — Interprovincial Oil and Gas Trade

Interpretation

368Definitions#

The following definitions apply in this Division.

designated area means any of the following, as referred to in an order made under subsection 369(1),

(a)a province;

(b)Sable Island; or

(c)any area of land, not within a province, that belongs to Her Majesty in right of Canada or in respect of which Her Majesty in right of Canada has the right to dispose of or exploit the natural resources and that is situated in submarine areas in the internal waters of Canada, the territorial sea of Canada or the continental shelf of Canada. (région désignée)

designated oil or gas means oil or gas, or both, or any quality or kind of oil or gas, or both, that is the subject of an order made under subsection 369(1). (pétrole ou gaz désigné)

movement, in respect of oil or gas, excludes an exportation. (acheminement)

Control by Regulator

369Order in Council#

(1)The Governor in Council may, by order, give the supervision and control of the movement of designated oil or gas out of a designated area to the Regulator.

(2)While an order made under subsection (1) remains in force, a person must not move designated oil or gas out of the designated area except in accordance with a licence issued under this Division or as authorized under the regulations made under this Division.

Issuance of Licences

370Issuance#

(1)Subject to the regulations, the Commission may, on any conditions that it may impose, issue a licence to any person permitting the movement of designated oil or gas out of the designated area.

(2)Every licence is subject to the conditions that

(a)the provisions of this Act and its regulations, as well as every order made under this Act, will be complied with; and

(b)the provisions of the Energy Administration Act and its regulations that are applicable to the designated oil or gas in respect of which the licence is issued will be complied with.

371Criteria#

(1)Before issuing a licence, the Commission must take into account all factors that it considers relevant, including the equitable distribution of designated oil or gas in Canada.

(2)Sections 348 to 351 apply in respect of a licence issued under this Division.

Regulations

372Regulations — Governor in Council#

(1)The Governor in Council may make regulations for the purposes of this Division, including regulations

(a)respecting the period of validity of licences, the approval required for the issuance of licences, the quantities that may be moved out of the designated area under the authority of a licence and any other conditions to which licences may be subject; and

(b)prescribing the inspection of any instruments, devices, plant, equipment, books, records or accounts or any other thing used for or in connection with the movement of designated oil or gas out of the designated area.

(2)The Regulator may make regulations prescribing

(a)the information to be provided by applicants for licences and the procedure to be followed in applying for and issuing licences; and

(b)units of measurement and measuring instruments or devices to be used in connection with the movement of designated oil or gas out of the designated area.

Division 4 — Implementation of Free Trade Agreements

373Definitions#

The following definitions apply in this Division.

CCFTA has the same meaning as Agreement as defined in subsection 2(1) of the Canada-Chile Free Trade Agreement Implementation Act. (ALÉCC)

CCRFTA has the same meaning as Agreement as defined in subsection 2(1) of the Canada — Costa Rica Free Trade Agreement Implementation Act. (ALÉCCR)

CUSMA has the meaning assigned by the definition Agreement in section 2 of the Canada–United States–Mexico Agreement Implementation Act. (ACEUM)

energy goods means any goods for the exportation of which a licence or permit issued under this Part or an order made under the regulations is required. (produits énergétiques)

NAFTA [Repealed, 2020, c. 1, s. 208]

^note

374Principle#

(1)In exercising its powers and performing its duties and functions, the Regulator must give effect to CUSMA, the CCFTA and the CCRFTA.

(2)The Governor in Council may, either on the recommendation of the Minister made at the request of the Regulator or on the Governor in Council’s own motion, give directions respecting the manner in which the Regulator is to perform the duty imposed on it by subsection (1) or the interpretation to be given to CUSMA, the CCFTA or the CCRFTA by the Regulator for the purposes of this Act.

(3)A direction issued under subsection (2) is binding on the Regulator from the time it comes into force and, unless it provides otherwise, applies in respect of matters pending before the Regulator at that time.

(4)The Regulator may, in order to request the issuance of a direction under subsection (2), suspend the determination of any matter of which it is seized.

^note

375Declaration of Governor in Council#

The Governor in Council may, by order, declare that the maintenance or introduction of a restriction on the exportation to Chile or Costa Rica of energy goods or of any quality, kind or class of energy goods is justified under Article C-13 of the CCFTA or Article III.11 of the CCRFTA, as the case may be.^note

376Request for declaration#

If, in the course of determining an application for a licence or permit, or determining whether to make an order, for the exportation to Chile or Costa Rica of energy goods or of any quality, kind or class of energy goods, the Commission considers that the maintenance or introduction of a restriction on that exportation is in the public interest and that subparagraph 1(a), (b) or (c) of Article C-13 of the CCFTA or subparagraph 1(a), (b) or (c) of Article III.11 of the CCRFTA, as the case may be, would apply as a consequence of the restriction, the Commission may, in order to request that the Minister recommend to the Governor in Council that an order be made under section 375 in respect of the relevant energy goods, suspend the determination until not later than 120 days after the day on which the request is made.^note

377Exportation to Chile or Costa Rica#

(1)The Commission may neither refuse to issue a licence or permit or make an order nor suspend, revoke or vary a licence, permit or order for the exportation to Chile or Costa Rica of energy goods or of any quality, kind or class of energy goods if that refusal, revocation, suspension or variation would constitute the maintenance or introduction of a restriction on that exportation as a consequence of which subparagraph 1(a), (b) or (c) of Article C-13 of the CCFTA or subparagraph 1(a), (b) or (c) of Article III.11 of the CCRFTA, as the case may be, would apply.

(2)Subsection (1) does not apply in respect of the exportation to Chile or Costa Rica of any energy goods, or of any quality, kind or class of energy goods, referred to in an order made under section 375 while the order is in force.

(3)Despite subsection (1), the Commission may suspend, revoke or vary a licence, permit or order if the holder of the licence, the holder of the permit or the person named in the order, as the case may be, applies for or consents to the suspension or revocation.

^note

378No declaration made#

Despite not being satisfied that the criteria set out in section 345 have been met, the Commission may issue a licence for the exportation to Chile or Costa Rica of any energy goods, or of any quality, kind or class of energy goods, referred to in a request made under section 376 if

(a)the Minister declines to recommend to the Governor in Council that an order be made under section 375;

(b)the Governor in Council declines to make the order; or

(c)no order is made within 120 days after the day on which the request is made.

^note

Division 5 — Offences and Punishment

379Offence and punishment#

(1)Every person who contravenes any of the provisions of this Part or the regulations made under this Part is guilty of an offence and liable

(a)on summary conviction, to a fine not exceeding $100,000 or to imprisonment for a term not exceeding one year, or to both; or

(b)on conviction on indictment, to a fine not exceeding $1,000,000 or to imprisonment for a term not exceeding five years, or to both.

(2)A person is not to be found guilty of an offence under subsection (1) if they establish that they exercised due diligence to prevent the commission of the offence.

(3)If a corporation commits an offence under subsection (1), any officer or director, or agent or mandatary, of the corporation who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and is liable on conviction to the punishment provided for the offence whether or not the corporation has been prosecuted or convicted.

(4)In any prosecution for an offence under subsection (1), it is sufficient proof of the offence to show that it was committed by an employee, or an agent or mandatary, of the accused, whether or not the employee, or agent or mandatary, is identified or has been prosecuted for the offence, unless the accused establishes that the offence was committed without the knowledge or consent of the accused and that the accused exercised due diligence to prevent its commission.

(5)If an offence under subsection (1) is committed on more than one day, it is deemed to be a separate offence for each day on which the offence is committed or continued.

(6)Proceedings by way of summary conviction in respect of an offence under subsection (1) may be instituted at any time within but not later than one year after the day on which the subject matter of the proceedings arose.

380Powers of certain officers#

An officer as defined in subsection 2(1) of the Customs Act has, in respect of the exportation or importation of oil or gas, all the powers of an officer under the Customs Act and, except to the extent that they are inconsistent with any regulations made under paragraph 353(1)(e), the provisions of that Act and any regulations made under that Act respecting search, detention, seizure, forfeiture, condemnation and disposition apply, with any modifications that the circumstances require, to oil or gas tendered for exportation or importation or exported or imported or otherwise dealt with contrary to this Part.

Part 8 · Oil and Gas Interests, Production and Conservation

Interpretation

381Definitions of oil and gas#

For the purposes of this Part, oil and gas have the same meaning as in subsection 2(1) of the Canada Oil and Gas Operations Act.

Declarations of Significant Discovery and Commercial Discovery

382Application#

(1)This section applies to any decision of the Commission to make, amend or revoke a declaration of significant discovery under section 28 of the Canada Petroleum Resources Act or a declaration of commercial discovery under section 35 of that Act.

(2)At least 30 days before making a decision to which this section applies, the Commission must give written notice of its intention to make the decision to any person the Commission considers to be directly affected by the decision.

(3)A person to whom notice is given may, in writing, request a hearing in respect of the decision, but the request must be received by the Commission within 30 days after the day on which notice is given.

(4)If no request is received in accordance with subsection (3), the Commission may make the decision.

(5)If a request is received in accordance with subsection (3), the Commission must fix a time and place for the hearing and notify each person who requested the hearing.

(6)Each person who requests a hearing may make representations and introduce witnesses and documents at the hearing.

(7)The Commission must make its decision and give notice of that decision to each person who requested the hearing and, on that person’s request, the Commission must make the reasons for its decision public.

Operating Licences and Authorizations

383Variation of licences or authorizations#

The Commission or a person to whom powers are delegated under section 4.1 of the Canada Oil and Gas Operations Act may vary the conditions of any operating licence or authorization issued under section 5 of that Act.

Chief Conservation Officer and Chief Safety Officer

384Application to appeals#

(1)This section applies to appeals brought under section 21 or subsection 25(8) of the Canada Oil and Gas Operations Act by a person aggrieved by an order of the Chief Conservation Officer or by any action or measure taken or authorized or directed to be taken by that Officer, other than the referral of an order to the Commission under subsection 58(5) of that Act.

(2)After hearing an appeal to which this section applies, the Commission may

(a)set aside, confirm or vary the order, action or measure that is the subject of the appeal;

(b)order any works to be undertaken that the Commission considers necessary to prevent waste, the escape of oil or gas or any other contravention of the Canada Oil and Gas Operations Act or the regulations made under that Act; or

(c)make any other order that the Commission considers appropriate.

385Show cause hearing relating to waste#

(1)This section applies to applications by the Chief Conservation Officer to the Commission under section 22 of the Canada Oil and Gas Operations Act for a show cause hearing relating to waste, as defined in paragraph 18(2)(f) or (g) of that Act, in the recovery of oil or gas from a pool.

(2)On receiving an application, the Commission must make an order requiring the operators within the pool to show cause at a hearing, to be held on a day specified in the order, why the Commission should not make a direction in respect of the waste.

(3)On the day specified in the order, the Commission must hold a hearing at which the Chief Conservation Officer, the operators and other interested persons must be given an opportunity to be heard.

(4)If, after the hearing, the Commission considers that waste is occurring in the recovery of oil or gas from a pool, it may, by order,

(a)direct the introduction of a scheme for the collection, processing, disposition or reinjection of any gas produced from the pool; or

(b)direct repressurizing, recycling or pressure maintenance for the pool or any part of the pool and for or incidental to that purpose, direct the introduction or injection of gas, water or any other substance into the pool or any part of the pool.

(5)In addition to making an order under subsection (4), the Commission may, by order, direct that the pool or any part of the pool specified in the order be shut in if the requirements of the order are not met or unless a scheme is approved by the Commission and in operation by a date fixed in the order.

(6)Despite subsections (4) and (5), the Commission may, by order, permit the continued operation of a pool or any part of a pool after the date fixed by an order made under this section if the Commission considers that a scheme or other action described in paragraph (4)(a) or (b) is in the course of preparation, but the continued operation is subject to any conditions the Regulator imposes.

386Application#

(1)This section applies to an order referred by the Chief Safety Officer or the Chief Conservation Officer to the Commission under subsection 58(5) of the Canada Oil and Gas Operations Act.

(2)The Commission must review the need for the order and may confirm it or set it aside.

(3)The burden of establishing that the order is not needed is on the person who requested that the order be referred to the Commission.

Orders

387Offence and punishment#

(1)Every person who fails to comply with an order of the Commission under section 384 or 385 is guilty of an offence and liable

(a)on summary conviction, to a fine not exceeding $100,000 or to imprisonment for a term not exceeding one year, or to both; or

(b)on conviction on indictment, to a fine not exceeding $1,000,000 or to imprisonment for a term not exceeding five years, or to both.

(2)A person is not to be found guilty of an offence under subsection (1) if they establish that they exercised due diligence to prevent the commission of the offence.

(3)Sections 65 to 71 of the Canada Oil and Gas Operations Act apply, with any modifications that the circumstances require, in respect of an offence under subsection (1).

388Statutory Instruments Act#

For greater certainty, an order of the Commission made under this Part is not a statutory instrument as defined in subsection 2(1) of the Statutory Instruments Act.

Part 9 · General

Regulations

389Regulations respecting accounts, etc.#

(1)The Regulator may, with the approval of the Governor in Council, make regulations

(a)respecting the manner in which the accounts of a company must be kept;

(b)respecting the classes of property for which depreciation charges may properly be included under operating expenses in the accounts and the accounting methods that may be used in computing and charging depreciation in respect of each of the classes of property;

(c)respecting a uniform system of accounts applicable to any class of company; and

(d)requiring that any of the following persons and companies keep and make available for inspection, in the form that may be prescribed by the regulations, at a place of business in Canada any records, books of account and other documents and submit to the Regulator, at any time and in any form that may be prescribed, returns and information respecting capital, traffic, revenues, expenses and other matters that are prescribed and that the Regulator determines are matters that should be considered by it in carrying out its powers and duties under this Act in relation to those companies and persons

(i)companies that have been authorized to construct or operate a pipeline,

(ii)companies that have been authorized to abandon the operation of a pipeline under subsection 241(1),

(iii)persons exporting oil, gas or electricity, and

(iv)persons holding a licence under Part 7.

(2)The Regulator may, by order, on any conditions it considers appropriate, exempt a company or person from the application of a regulation made under subsection (1).

(3)Every person who contravenes a regulation made under this section is guilty of an offence punishable on summary conviction.

(4)A person is not to be found guilty of an offence under subsection (3) if they establish that they exercised due diligence to prevent the commission of the offence.

390Regulations#

(1)The Governor in Council may make regulations for the purposes of this Act, including regulations

(a)designating as an oil product or as a gas product any substance resulting from the processing or refining of hydrocarbons or coal if that substance

(i)is asphalt or a lubricant, or

(ii)is a source of energy by itself or when it is combined or used in association with something else; and

(b)exempting any oil or gas or any kind, quality or class of oil or gas or any area or transaction from all or any of the provisions of this Act.

(2)Regulations may only be made under paragraph (1)(b) after consultation with the Regulator.

391Security regulations#

(1)The Regulator may, with the approval of the Governor in Council, make regulations respecting the security of pipelines, international power lines and offshore renewable energy projects, including regulations respecting standards, plans and audits.

(2)Every person who contravenes a regulation made under subsection (1) is guilty of an offence and liable

(a)on summary conviction, to a fine not exceeding $100,000 or to imprisonment for a term not exceeding one year or to both; or

(b)on conviction on indictment, to a fine not exceeding $500,000 or to imprisonment for a term not exceeding five years or to both.

(3)A person is not to be found guilty of an offence under subsection (2) if they establish that they exercised due diligence to prevent the commission of the offence.

Review of Act

392Review of Act after 10 years#

Ten years after the day on which this Act comes into force, a comprehensive review of the provisions and operation of the Act is to be undertaken by the committee of the Senate, of the House of Commons or of both Houses of Parliament that is designated or established by the Senate or the House of Commons, or by both Houses of Parliament, as the case may be, for that purpose.

Related provisions

— 2019, c. 28, s. 11The following definitions apply in this section and sections 12 to 43.commencement day means the day on which the Canadian Energy Regulator Act comes into force. (date d’entrée en vigueur)National Energy Board means the National Energy Board established by section 3 of the National Energy Board Act as it read immediately before the commencement day. (Office)Regulator means the Canadian Energy Regulator established by section 10 of the Canadian Energy Regulator Act. (Régie)Unless the context requires otherwise, words and expressions used in sections 16 to 32 have the same meaning as in section 2 of the Federal Public Sector Labour Relations Act. — 2019, c. 28, s. 12Each permanent member of the National Energy Board appointed under subsection 3(2) of the National Energy Board Act, as it read immediately before the commencement day, who holds office immediately before the commencement day ceases to hold office on that day.A permanent member of the National Energy Board referred to in subsection (1) who is not appointed as a commissioner under subsection 28(1) of the Canadian Energy Regulator Act is entitled to the lesser ofan amount that is equal to 12 months’ remuneration as a permanent member of the National Energy Board, andan amount that is equal to the remuneration to which they would be entitled if they were to complete the remainder of the term for which they were appointed as a permanent member of the National Energy Board. — 2019, c. 28, s. 13Each temporary member of the National Energy Board appointed under subsection 4(1) of the National Energy Board Act, as it read immediately before the commencement day, who holds office immediately before the commencement day ceases to hold office on that day.Despite the provisions of any contract, agreement or order, no person who was appointed to hold office as a temporary member of the National Energy Board has any right to claim or receive any compensation, damages, indemnity or other form of relief from Her Majesty in right of Canada or from any employee or agent of Her Majesty for ceasing to hold that office or for the abolition of that office by the operation of this Act. — 2019, c. 28, s. 14A person referred to in subsection 12(1) or 13(1) may, at the request of the Lead Commissioner designated under 37 of the Canadian Energy Regulator Act, continue to hear and decide any matter that was before the person before the commencement day and the person is considered to be a commissioner for the purposes of that Act.If a person referred to in subsection 12(1) or 13(1) refuses to continue to hear or decide a matter referred to in subsection (1), the Commission referred to in section 26 of the Canadian Energy Regulator Act is seized of the matter.A person referred to in subsection 12(1) or 13(1) who continues to hear and decide a matter referred to in subsection (1)is to be paid the remuneration for their services that may be fixed by the Governor in Council; andis entitled to be paid reasonable travel and other expenses incurred in the course of providing services during any period of absence from their ordinary place of residence.The Lead Commissioner may withdraw from a person referred to in subsection 12(1) or 13(1) a matter referred to in subsection (1) that is not disposed of within one year after the commencement day and assign it to a panel of the Commission in accordance with section 38 of the Canadian Energy Regulator Act on any terms and conditions that the Lead Commissioner may specify for the protection and preservation of the rights and interests of the parties.A period of time during which a person referred to in subsection 12(1) or 13(1) is considered to be a commissioner for the purposes of this section does not count as part of the 10-year limit set out in subsection 28(2) of the Canadian Energy Regulator Act. — 2019, c. 28, s. 15Nothing in this Act affects the status of any person who was employed by the National Energy Board immediately before the commencement day, except that, as of that day, the person is employed by the Regulator. — 2019, c. 28, s. 16Subject to sections 17 to 28, every collective agreement or arbitral award that applies to an employee who occupies a position in the National Energy Board before the commencement day and that is in force immediately before that day continues in force until its term expires.A collective agreement or arbitral award continued in force under subsection (1) is binding onthe Regulator, as if it were the employer referred to in the collective agreement or arbitral award;the bargaining agent that is a party to the collective agreement or arbitral award; andthe employees of the Regulator in the bargaining unit in respect of which that bargaining agent has been certified.Nothing in subsections (1) and (2) prohibits the Regulator and the bargaining agent from amending any provision of a collective agreement continued in force under subsection (1), other than a provision relating to its term. — 2019, c. 28, s. 17Any employee organization may apply to the Board for certification as the bargaining agent for the employees bound by a collective agreement or arbitral award that is continued in force under subsection 16(1), but it may do so only during the period in which an application for certification is authorized to be made under section 54 of the Federal Public Sector Labour Relations Act in respect of those employees. — 2019, c. 28, s. 18If a collective agreement or arbitral award is continued in force under subsection 16(1), the Board must, by order, on application by the Regulator or any bargaining agent affected by the establishment of the Regulator,determine whether the employees of the Regulator who are bound by the collective agreement or arbitral award constitute one or more units appropriate for collective bargaining;determine which employee organization is to be the bargaining agent for the employees in each such unit; andin respect of each collective agreement or arbitral award that binds employees of the Regulator, determine whether the collective agreement or arbitral award is to remain in force and, if it is to remain in force, determine whether it is to remain in force until the expiry of its term or until an earlier date that the Board may fix.The application may be made only during the period beginning on the 120th day after the commencement day and ending on the 150th day after the commencement day. — 2019, c. 28, s. 19Either of the parties to a collective agreement or arbitral award that remains in force by reason of an order made under paragraph 18(1)(c) may apply to the Board for an order granting leave to give to the other party, under section 105 of the Federal Public Sector Labour Relations Act, a notice to bargain collectively.The application must be made within 90 days after the day on which the order is made under paragraph 18(1)(c). — 2019, c. 28, s. 20If no application for an order under subsection 18(1) is made within the period specified in subsection 18(2), the Regulator or any bargaining agent bound by a collective agreement or arbitral award that is continued in force under subsection 16(1) may apply to the Board for an order granting leave to give to the other party, under section 105 of the Federal Public Sector Labour Relations Act, a notice to bargain collectively.The application may be made only during the period beginning on the 151st day after the commencement day and ending on the 240th day after the commencement day. — 2019, c. 28, s. 21A notice to bargain collectively that was given before the commencement day does not bind the Regulator and a new notice to bargain collectively may be given only in the circumstances set out in paragraph 23(b). — 2019, c. 28, s. 22If a notice to bargain collectively is given before the commencement day, then, unless the Regulator and the bargaining agent agree otherwise, the conditions of employment continued in force under section 107 of the Federal Public Sector Labour Relations Act are binding on the Regulator, the bargaining agent for the bargaining unit and the employees in the bargaining unit from the commencement day untilif no application is made under paragraph 23(a), the expiry of 150 days after the commencement day; orif such an application is made, the day the notice referred to in paragraph 23(b) is given. — 2019, c. 28, s. 23If a notice to bargain collectively is given before the commencement day,on application by the Regulator or by the bargaining agent, made during the period beginning on the 120th day after the commencement day and ending on the 150th day after that day, the Board must make an order determiningwhether the employees of the Regulator who are represented by the bargaining agent constitute one or more units appropriate for collective bargaining, andwhich employee organization is to be the bargaining agent for the employees in each such unit; andif the Board makes the determinations under paragraph (a), the Regulator or the bargaining agent may, by notice given under section 105 of the Federal Public Sector Labour Relations Act, require the other to commence collective bargaining for the purpose of entering into a collective agreement. — 2019, c. 28, s. 24Before making an order under subsection 18(1) or paragraph 23(a), the Board may make any inquiry or direct that a representation vote be taken among the employees to be affected by the order. — 2019, c. 28, s. 25For the purposes of paragraphs 18(1)(a) and 23(a), in determining whether a group of employees constitutes a unit appropriate for collective bargaining, the Board must have regard to the Regulator’s classification of persons and positions, including the occupational groups or subgroups established by it.The Board must establish bargaining units that are co-extensive with the occupational groups or subgroups established by the Regulator, unless doing so would not permit satisfactory representation of the employees to be included in a particular bargaining unit and, for that reason, such a unit would not be appropriate for collective bargaining. — 2019, c. 28, s. 26On application by the Regulator or the employee organization affected by the establishment of the Regulator, the Regulator must determine every question that arises as to whether any employee or class of employees is included in a bargaining unit determined by the Board under paragraph 18(1)(a) or 23(a) to constitute a unit appropriate for collective bargaining or is included in any other unit. — 2019, c. 28, s. 27The Board is not authorized to determine that an employee organization is to be a bargaining agent under paragraph 18(1)(b) or 23(a) if it considers that the Regulator, or a person acting on behalf of the Regulator, has participated or is participating in the formation or administration of the employee organization in a manner that impairs its fitness to represent the interests of the employees in the bargaining unit.The Board is not authorized to determine that an employee organization is to be a bargaining agent under paragraph 18(1)(b) or 23(a) if it discriminates against any employee on a prohibited ground of discrimination within the meaning of the Canadian Human Rights Act. — 2019, c. 28, s. 28The provisions of Part 1 of the Federal Public Sector Labour Relations Act, and any rules or regulations made under that Act, apply to, or in respect of, the following and any matter related to the following:an application made to the Board under any of sections 17 to 20, 23 and 26;an order made by the Board under any of sections 18 to 20 and 23;a determination of the Board made under any of sections 18, 23 and 26 and a bargaining unit, bargaining agent or employee or class of employees that is the subject of such a determination;a collective agreement or arbitral award that is continued in force under subsection 16(1); andcollective bargaining that is commenced after the receipt of a notice referred to in section 19 or 20 or paragraph 23(b) and a collective agreement that is entered into following such collective bargaining.The Board has, for the purposes of performing its duties and functions under any of sections 17 to 27, the powers conferred on it under Part 1 of the Federal Public Sector Labour Relations Act, and it must perform the duties and functions imposed on it under that Part in respect of those powers.In the event of any inconsistency between sections 17 to 27 and the provisions of Part 1 of the Federal Public Sector Labour Relations Act, or anything issued, made or established under that Act, those sections 17 to 27 prevail to the extent of the inconsistency. — 2019, c. 28, s. 29The conditions of employment of persons who are not represented by a bargaining agent or who are excluded from a bargaining unit and who, on the commencement day, occupy their position within the Regulator continue to apply until new conditions of employment for those persons are established. — 2019, c. 28, s. 30The provisions of Division 13 of Part 1 of the Federal Public Sector Labour Relations Act and any rules or regulations made under that Act, as they read immediately before the commencement day, continue to apply in respect of any complaint made under that Division before that day that relates to the National Energy Board. — 2019, c. 28, s. 31The provisions of Part 2 of the Federal Public Sector Labour Relations Act and any rules or regulations made under that Act, as they read immediately before the commencement day, continue to apply in respect of any grievance presented under that Part before that day by an employee of the National Energy Board.A final decision with respect to a grievance referred to in subsection (1) that provides for the reinstatement of an employee or the payment of money to an employee must be implemented by the Regulator as soon as feasible. — 2019, c. 28, s. 32The provisions Part 2 of the Federal Public Sector Labour Relations Act and any rules or regulations made under that Act, as they read immediately before the commencement day, continue to apply in respect of any matter referred to the Board under that Part before that day that relates to the National Energy Board. — 2019, c. 28, s. 33Every decision or order made by the National Energy Board is considered to have been made under the Canadian Energy Regulator Act and may be enforced as such. — 2019, c. 28, s. 34Every certificate, licence or permit issued by the National Energy Board is considered to have been issued under the Canadian Energy Regulator Act and, unless suspended or revoked under that Act, every certificate, licence or permit remains in force for the remainder of the period during which it would have been in force had the Canadian Energy Regulator Act not come into force.Every certificate, licence or permit referred to in subsection (1) that was suspended immediately before the commencement day is considered to be suspended under the Canadian Energy Regulator Act. — 2019, c. 28, s. 35Any leave granted by the National Energy Board is considered to have been granted under the Canadian Energy Regulator Act. — 2019, c. 28, s. 36Applications pending before the National Energy Board immediately before the commencement day are to be taken up before the Commission of the Regulator and continued in accordance with the National Energy Board Act as it read immediately before the commencement day. — 2019, c. 28, s. 36.1For greater certainty, section 182.1 of the Impact Assessment Act applies in relation to a pending application referred to in section 36. — 2019, c. 28, s. 37Before the coming into force of the first regulation made for the purposes of subsection 183(5) or 214(5) of the Canadian Energy Regulator Act, the Lead Commissioner may, in the circumstances that he or she considers appropriate, exercise the powers set out in those subsections.Before the coming into force of the first regulation made for the purposes of subsection 262(6) of the Canadian Energy Regulator Act, the Lead Commissioner may, in the circumstances that he or she considers appropriate, exercise the power set out in that subsection.Before the coming into force of the first regulation made for the purposes of subsection 298(6) of the Canadian Energy Regulator Act, the Lead Commissioner may, in the circumstances that he or she considers appropriate, exercise the power set out in that subsection. — 2019, c. 28, s. 38For the purposes of sections 198, 208 and 265 of the Canadian Energy Regulator Act, a copy of a document that is certified by the Secretary of the National Energy Board is considered to have been certified by the Regulator under that Act. — 2019, c. 28, s. 39A person or company is not required to obtain the consent referred to in subsection 317(1) of the Canadian Energy Regulator Act in relation to lands if, before the commencement day,the person or company had taken possession of, used or occupied those lands; orthe person or company had obtained the authorization under the National Energy Board Act, as it read immediately before the commencement day, to construct or operate a pipeline or power line on those lands. — 2019, c. 28, s. 40Section 112 of the National Energy Board Act, as it read immediately before the commencement day, continues to apply in relation to compensation matters in respect of a pipeline for whichan application for a certificate under subsection 52(1) of that Act was received by the National Energy Board before that day; oran application for an order under subsection 58(1) of that Act was received by the National Energy Board before that day. — 2019, c. 28, s. 41Any request for which a notice was served on the Minister under subsections 88(1) and 90(1) of the National Energy Board Act, as those sections read immediately before the commencement day, is continued in accordance with those subsections. — 2019, c. 28, s. 42Division I of Part VI of the National Energy Board Act, as it read immediately before the commencement day, continues to apply to the importation of oil or gas until the earlier of the third anniversary of the commencement day and the day on which regulations are made for the purposes of section 352 of the Canadian Energy Regulator Act.For the purposes of subsection (1), every reference to the National Energy Board in Division I of Part VI of the National Energy Board Act is to be read as a reference to the Regulator or the Commission of the Regulator, as the case may be. — 2019, c. 28, s. 42.1Every reference to the National Energy Board in any deed, contract, agreement or other document executed, or in Quebec, signed, by the National Energy Board in its own name is, unless the context otherwise requires, to be read as a reference to the Regulator. — 2019, c. 28, s. 42.2Any amount that is appropriated by an Act of Parliament for the fiscal year in which the commencement day falls to defray the expenditures of the National Energy Board and that is unexpended on that day is considered to be an amount appropriated to defray the expenditures of the Regulator. — 2019, c. 28, s. 43The Governor in Council may make any regulations that the Governor in Council considers necessary to provide for any other transitional matter arising from the coming into force of the Canadian Energy Regulator Act.

Federal laws of Canada reproduced under the Reproduction of Federal Law Order (SI/97-5); not the official version. Source: Justice Laws Website.