BILL 20 – 2008
OIL AND GAS ACTIVITIES ACT
HER MAJESTY, by and with the
advice and consent of the Legislative Assembly of the Province of
British Columbia, enacts as follows:
Part
1 — Definitions
Definitions
1
(1) Words and expressions used but not defined in this Act or in the
regulations for the purposes of this Act, unless the context otherwise
requires, have the same meanings as in the Petroleum and
Natural Gas Act.
(2) In this Act:
"appeal tribunal"
means the Oil and Gas Appeal Tribunal established under
section 19;
"authorization"
means, except in section 104 and Part 10, an authorization under a
specified enactment to carry out a related activity, and includes the
conditions, if any, imposed on the authorization under this Act or the
specified enactment;
"board"
means the board of the commission continued under section 2;
"certificate of
restoration" means a certificate issued by the
commission under section 41;
"commission"
means the Oil and Gas Commission continued under section 2;
"commissioner"
means the commissioner appointed under section 2 (3);
"flow line"
means a pipeline connecting a well with a facility or another pipeline;
"former permit holder"
includes a person who was a director of a corporation that
(a) held a permit with respect to
which there has been a cancellation, declaration or expiry referred to
in section 40, and
(b) no longer exists or has
amalgamated with another corporation;
"highway"
has the same meaning as in the Transportation Act;
"land owner"
means
(a) a person registered in the land
title office as the registered owner of the land surface or as its
purchaser under an agreement for sale, and
(b) a person to whom a disposition
of Crown land has been issued under the Land Act,
but does not include the
government or a person referred to in section 6 (3) of the Petroleum
and Natural Gas Act;
"official",
except in sections 6 and 8, means a person designated as an official
under section 7 (4);
"oil and gas activity"
means
(a) the search for petroleum,
natural gas or both,
(b) the exploration for and
development of petroleum, natural gas or both,
(c) geophysical exploration,
(d) the production, gathering,
processing or storage of petroleum, natural gas or both,
(e) the operation or maintenance of
a storage reservoir,
(f) the construction, maintenance
or operation of a pipeline,
(g) the construction, maintenance
or operation of a prescribed road, and
(h) the activities prescribed by
regulation;
"permit"
means a permit issued under section 25 and includes any conditions
imposed on a permit;
"permit holder"
means
(a) a person who holds a permit, and
(b) a person, if any, who is the
holder of a location with respect to that permit;
"pipeline"
means, except in section 9, piping through which any of the following
is conveyed:
(a) petroleum or natural gas;
(b) water produced in relation to
the production of petroleum or natural gas or conveyed to or from a
facility for disposal into a pool or storage reservoir;
(c) solids;
(d) substances prescribed under
section 133 (2) (v) of the Petroleum and Natural Gas Act,
and includes installations
associated with the piping but does not include
(e) piping used to transmit natural
gas at less than 700 kPa to consumers by a gas utility as defined in
the Gas Utility Act,
(f) a well head, or
(g) anything else that is
prescribed;
"pipeline permit"
means a permit that includes a permission to construct, maintain or
operate a pipeline;
"pipeline permit holder"
means a permit holder of a pipeline permit;
"related activity"
means an activity
(a) that, under a specified
enactment, must not be carried out except as authorized under the
specified enactment or that must be carried out in accordance with the
specified enactment, and
(b) the carrying out of which is
required for the carrying out of an oil and gas activity;
"specified enactment"
means any of the following Acts:
(a) Environmental
Management Act;
(b) Forest Act;
(c) Heritage
Conservation Act;
(d) Land Act;
(e) Water Act;
"specified provision"
means the following provisions:
(a) any of the following provisions
of the Environmental Management Act:
(i) section 9 [hazardous
waste storage and disposal];
(ii) section 14 [permits];
(iii) section 15 [approvals];
(b) section 47.4 [licence
to cut for persons occupying land or for oil and gas purposes]
of the Forest Act, but only in relation to a
master licence to cut;
(c) section 12 [permit
authorizing certain actions] of the Heritage
Conservation Act;
(d) any of the following provisions
of the Land Act:
(i) section 11, but only in
relation to a lease or grant described in
section 11 (2) (b) to (d) [disposing
of Crown land];
(ii) section 14 [temporary
occupation of Crown land];
(iii) section 38 [lease
of Crown land], but not to the extent that it relates to the
granting of an option to purchase land;
(iv) section 39 [licence
of occupation];
(v) section 40 [right
of way and easement];
(vi) section 96 (1) [occupational
rental];
(e) any of the following provisions
of the Water Act, but only in relation to an
approval as defined in section 1 of the Water Act:
(i) section 8 [short
term use of water];
(ii) section 9 (1) (a) [changes
in and about a stream];
(iii) section 26 [permits
over Crown land];
(f) a prescribed regulation under a
specified enactment;
"spillage"
means petroleum, natural gas, oil, solids or other substances escaping,
leaking or spilling from
(a) a pipeline, well, shot hole,
flow line, or facility, or
(b) any source apparently
associated with any of those substances.
Part
2 — Administration
Division
1 — Oil and Gas Commission
Corporation
continued
2
(1) A corporation known as the Oil and Gas Commission is continued,
consisting of a board with 3 directors.
(2) The deputy minister is a
director and is the chair of the board.
(3) The Lieutenant Governor in
Council may appoint 2 directors, for a term not longer than 5 years,
one of whom is both the commissioner and vice chair of the board.
(4) A person appointed as a director
under subsection (3) may be reappointed for additional terms.
(5) A vacancy in the membership of
the board or the incapacity of one of the directors does not impair the
power of the remaining directors to act.
(6) A majority of the directors
holding office constitutes a quorum at meetings of the board.
(7) If there is a tie vote, the
chair of the board, or in the absence of the chair the vice chair, has
the deciding vote.
(8) If a director dies or is unable
to act or if a director's position is otherwise vacant, the minister,
by order, may appoint an acting director for a period not longer than 6
months.
(9) If the commissioner dies or is
unable to act or if the commissioner's position is otherwise vacant,
the minister, by order, may appoint a director or an acting director
appointed under subsection (8) to be an acting commissioner for a
period not longer than 6 months.
(10) The board may appoint a deputy
commissioner.
(11) A deputy commissioner has the
powers of the commissioner, unless the board otherwise directs, but
does not have a vote in meetings or decisions of the board and is
subject to any directions given to him or her by the commissioner.
(12) The commission may pay to a
person appointed under subsection (3), (8), (9)
or (10) remuneration and expense allowances at rates set by
the minister.
Commission is
an agent of the government
3
The commission is an agent of the government.
Purposes
4
The purposes of the commission include the following:
(a) to regulate oil and gas
activities in British Columbia in a manner that
(i) provides for the sound
development of the oil and gas sector, by fostering a healthy
environment, a sound economy and social well-being,
(ii) conserves petroleum and
natural gas resources,
(iii) ensures safe and efficient
practices, and
(iv) assists owners of petroleum
and natural gas resources to participate equitably in the production of
shared pools of petroleum and natural gas;
(b) to provide for effective and
efficient processes for the review of applications for permits and to
ensure that applications that are approved are in the public interest
having regard to environmental, economic and social effects;
(c) to encourage the participation
of First Nations and aboriginal peoples in processes affecting them;
(d) to participate in planning
processes;
(e) to undertake programs of
education and communication in order to advance safe and efficient
practices and the other purposes of the commission.
Direction and
management of commission
5
(1) The board may pass resolutions it considers necessary or advisable
to direct its affairs, exercise its powers and perform its duties,
including resolutions for one or more of the following:
(a) calling and holding meetings of
the board and the procedures to be followed at meetings;
(b) making regulations of the board;
(c) approving the commission's
annual service plan under the Budget Transparency and
Accountability Act, as well as the commission's annual
budget estimate detailing the expected revenues and planned
expenditures of the commission for the next fiscal year;
(d) establishing a plan of
organization to carry out the powers of the commission.
(2) The board must
(a) establish, in accordance with
the regulations, if any, a conflict of interest policy for the
directors that includes provisions respecting
(i) the disclosure of interests
in contracts or transactions with the commission,
(ii) the duty to account for
profits,
(iii) the validity of contracts
and transactions in which a director has an interest, and
(iv) the disclosure of any
property owned or office held by a director that may create a conflict
of interest or duty,
(b) submit the policy referred to
in paragraph (a) to the minister, and
(c) establish a code of conduct,
including conflict of interest provisions, that governs the conduct of
employees of the commission.
(3) On receipt of a conflict of
interest policy under subsection (2) (b) or on the minister's own
initiative, the minister may order the board to amend its conflict of
interest policy and resubmit that policy to the minister in accordance
with the order.
(4) A resolution of the board that
is approved by directors, whether present in person or approving by
telephone, facsimile transmission, electronic mail or any other similar
means of communication, confirmed in writing or other graphic
communication, is as valid as if it had been passed at a meeting of the
board properly called and constituted.
Capacity and
powers of commission
6
(1) For the purposes of this Act, the commission may do any or all of
the following:
(a) subject to subsection (2),
acquire, hold and dispose of property;
(b) invest money, and, subject to
the prior approval of the Lieutenant Governor in Council, borrow money;
(c) subject to subsection (2),
negotiate and enter into agreements with any person, including the
government of British Columbia, the government of Canada, the
government of another province or of a territory, a local government, a
First Nation or with an official or agency of any of them;
(d) subject to subsection (2),
expend money for the purposes of administering the Act;
(e) do other things that the
Lieutenant Governor in Council may authorize.
(2) In the prescribed circumstances,
the commission may exercise the power referred to in subsection (1)
(a), (c) or (d) only with the approval of the Lieutenant Governor in
Council.
(3) With the prior approval of the
Lieutenant Governor in Council, the commission may in any year pay to a
municipality in which it has property a grant not greater than the
amount that would be payable as taxes on the property in that year if
the property were not exempt from taxation by the municipality.
(4) If directed to do so by the
Lieutenant Governor in Council, the commission must pay to a
municipality in which it has property a grant not greater than the
amount that would be payable as taxes on the property in that year if
the property were not exempt from taxation by the municipality.
Powers of
commissioner
7
(1) Subject to the direction of the board, the commissioner must manage
the operations of the commission or supervise the management of those
operations.
(2) The commissioner has the powers
and duties of an official and of the commission under this Act, other
than those powers and duties expressly given to the board under this
Act.
(3) The commissioner may hire
employees of the commission necessary to carry on the business and
operations of the commission and may define their duties and determine
their remuneration.
(4) The commissioner may designate a
person as an official for the purposes of provisions of this Act
specified by the commissioner in the designation.
(5) The commissioner may
(a) delegate the exercise of any
power or performance of any duty conferred or imposed on the commission
under this Act, other than those powers and duties expressly given to
the board under this Act, to an employee or official of the commission
or another public officer, and
(b) in making a delegation, provide
directions that are binding on the delegate respecting the exercise of
the power or the performance of the duty.
(6) A delegation under subsection
(5) may be made by name or by designation of the office.
Commission's
responsibilities under specified enactments
8
(1) For the regulation of oil and gas activities, the commission,
instead of the official named in a specified provision,
(a) has all the powers relating to
a discretion, function or duty referred to in the specified provision,
including, without limiting this, the powers in the specified enactment
relating to the administration and enforcement of an authorization, and
(b) is charged with all the
responsibilities pertaining to that discretion, function or duty.
(2) Despite subsection (1), both the
commission and the director, as the latter is defined in section 1 of
the Environmental Management Act, have all the
powers referred to in section 14 of that Act and are charged with all
the responsibilities pertaining to those powers.
(3) Subject to this Act, the
exercise of the powers conferred on the commission by
subsection (1), the carrying out of each discretion, function
and duty referred to in a specified enactment and the responsibilities
with which the commission is charged under this section remain subject
to the specified enactment and that specified enactment continues to
apply.
(4) Despite subsections (1) and (3),
the commission and the appropriate officials under the various
specified enactments are each responsible for enforcing the specified
enactments in relation to the matters described in the specified
provisions.
Application
of section 8 to pipelines under jurisdiction of Canada
9
(1) In this section, "pipeline" has the
same meaning as in the National Energy Board Act
(Canada).
(2) The commission's powers under
section 8 do not include the power to issue an authorization with
respect to a pipeline that is subject to the National Energy
Board Act (Canada).
(3) Despite subsection (2), the
Lieutenant Governor in Council may, by regulation, extend the
commission's powers under section 8 to include the power to issue an
authorization with respect to a pipeline referred to in subsection (2).
(4) If the commission issues under
subsection (3) an authorization with respect to a pipeline referred to
in subsection (2), the commission has all the powers and
responsibilities referred to in section 8 with respect to that pipeline.
Minister may
order independent audit
10
(1) The minister may order an independent audit of the performance of
the commission in fulfilling its purposes or exercising its powers and
performing its functions and duties under this Act.
(2) The minister responsible for the
Wildlife Act may order an independent audit
of the performance of the commission in fulfilling its purposes or
exercising its powers and performing its functions and duties under
this Act in relation to the protection and effective management of the
environment.
(3) An order under subsection (1) or
(2) must include terms of reference for the audit.
(4) If requested by an auditor
appointed for the purposes of subsection (1) or (2), the commission
must submit records in its possession that the auditor determines are
relevant to the audit.
(5) Before an audit report is
finalized, the auditor must provide to the board
(a) a copy of the draft audit
report, and
(b) a reasonable opportunity to
review and comment on the report.
(6) As soon as practicable after
completing an audit, the auditor must submit the final audit report and
any comments of the board to
(a) the minister who issued the
order under subsection (1) or (2), and
(b) the board.
Advisory
committee
11
(1) The board may establish and appoint an advisory committee to
consider or inquire into any matter and to report its findings and
provide its advice to the board.
(2) The commission may pay to a
person appointed as a member of an advisory committee remuneration and
expense allowances at rates set by the minister.
Inquiries
and recommendations
12
(1) At the request of the Lieutenant Governor in Council, the
commission must, at the places and times and in a manner the Lieutenant
Governor in Council considers advisable,
(a) make inquiries, conduct
investigations and prepare studies and reports on any matter within the
scope of this Act, and
(b) recommend to the Lieutenant
Governor in Council any measures the commission considers necessary or
advisable in the public interest related to oil and gas activities.
(2) Subsection (1) does not apply to
a matter that is before the commission.
Public
Service Act and Public Service Labour Relations
Act
13
(1) The Public Service Act and the Public
Service Labour Relations Act do not apply to the commission
or to its employees.
(2) Despite subsection (1), the
Public Service Pension Plan, continued under the Public
Sector Pension Plans Act, continues to apply to the
commission and to its employees.
Financial
administration
14
(1) The commission must establish and maintain an accounting system
satisfactory to the Minister of Finance.
(2) The commission must prepare
financial statements in accordance with generally accepted accounting
principles.
(3) Whenever required by the
Minister of Finance, the commission must provide detailed accounts of
its revenues and expenditures for the period or to the date the
Minister of Finance designates.
(4) All books or records of account,
documents and other financial records of the commission are at all
times open for inspection by the Minister of Finance or a person
designated by the Minister of Finance.
(5) The Minister of Finance may
direct the Comptroller General to examine and report to Treasury Board
on any or all of the financial and accounting operations of the
commission.
(6) The commission, with the
approval of the Minister of Finance, may budget for a deficit in a
fiscal year.
(7) The Minister of Finance, for the
purposes of subsection (6), may grant an approval for one fiscal year
or for any other number of fiscal years.
(8) The fiscal year of the
commission is a period of 12 months beginning on April 1 in each year
and ending on March 31 in the next year.
(9) The Minister of Finance is the
fiscal agent of the commission.
Audit
15
Unless the Auditor General is appointed in accordance with the Auditor
General Act as the auditor of the commission, an auditor
appointed by the commission must, at least once for each fiscal year,
audit and report on the accounts of the commission to the Executive
Council through the minister and to the board, and the costs of the
audit must be paid by the commission.
Application
of Business Corporations Act
16
(1) Subject to subsection (2), the Business Corporations Act
does not apply to the commission.
(2) The Lieutenant Governor in
Council, by order, may declare that certain provisions of the Business
Corporations Act and Society Act apply
to the commission.
Application
of Document Disposal Act
17
The Document Disposal Act applies to the
commission and, for the purposes of that Act, the commission is a
ministerial office.
Appropriation
18
(1) In this section, "revenue" includes
interest but does not include penalties.
(2) The Minister of Finance, out of
the consolidated revenue fund, must pay to the commission
(a) the gross revenue received from
the levies authorized under section 110,
(b) the gross revenue received from
the tax under section 47, and
(c) the gross revenue received from
fees in relation to
(i) applications for and
issuance of permits and the prescribed authorizations issued by the
commission under this Act, and
(ii) fees prescribed under
section 112 (1) (c).
(3) With the approval of Treasury
Board, the minister may pay out of the consolidated revenue fund, on
application by the commission, money required for the purposes of
sections 12, 52 and 53.
Division
2 — Oil and Gas Appeal Tribunal
Establishment
of Oil and Gas Appeal Tribunal
19
(1) The Oil and Gas Appeal Tribunal is established.
(2) The appeal tribunal is to hear
appeals under section 72.
(3) The appeal tribunal consists of
the following members appointed by the Lieutenant Governor in Council
after a merit-based process:
(a) a member designated as the
chair;
(b) one or more members designated
as vice chairs after consultation with the chair;
(c) other members appointed after
consultation with the chair.
Application
of Administrative Tribunals Act
20
Sections 1 to 22, 24, 26 to 33, 34 (3) and (4), 35 to 42, 44, 46.3, 47
to 57 and 59 to 61 of the Administrative Tribunals
Act apply to the appeal tribunal.
Part
3 — Oil and Gas Activities
Division
1 — Permits
Permit
required
21
Subject to section 23, a person must not carry out an oil and gas
activity unless
(a) either
(i) the person holds a permit
that gives the person permission to carry out that oil and gas
activity, or
(ii) the person is required to
carry out that oil and gas activity by an order issued under section
49, and
(b) the person carries out the oil
and gas activity in compliance with
(i) this Act and the regulations,
(ii) a permit issued to the
person, if any, and
(iii) an order issued to the
person, if any.
Consultation
and notification
22
(1) In subsection (3), "prescribed applicant"
means a person who intends to submit an application under section 24
and who is in a prescribed class of persons.
(2) Before submitting an application
under section 24, a person must notify the land owner of the land on
which the person intends to carry out an oil and gas activity of the
person's intention to submit the application, and the notice must
advise the land owner that he or she may make a submission to the
commission under subsection (5) of this section with respect to the
application or proposed application.
(3) Subject to subsection (4),
before submitting an application under section 24, a prescribed
applicant must carry out the prescribed consultations or provide the
prescribed notices, as applicable, with respect to the oil and gas
activities and related activities, if any, that will be the subject of
the prescribed applicant's application.
(4) The commission, on written
request, may exempt a person from the applicable consultation or
notification requirements under subsection (3) and, on making an
exemption, substitute other consultation or notification requirements
than those prescribed for the purposes of subsection (3).
(5) A person, other than the
applicant, may make a written submission to the commission with respect
to an application or a proposed application under section 24.
(6) If a person makes a submission
under subsection (5), the commission must send a copy of the submission
to the applicant or to the person intending to apply for a permit, as
the case may be.
Preliminary
plan
23
(1) Before submitting an application under section 24 for a pipeline
permit, a person may submit to the commission a preliminary plan of the
proposed route of the pipeline.
(2) Subject to subsection (3), a
person may enter on land as necessary for making surveys, examinations
or other arrangements for the purpose of fixing the site of the
pipeline referred to in subsection (1), if the person
(a) has submitted a preliminary
plan under subsection (1), and
(b) has either
(i) provided the prescribed
security to the commission to compensate the owner of the land for any
damage or disturbance that may be caused by the entry on the land by
the person, or
(ii) entered into an agreement
with the owner of the land, other than Crown land, regarding entry on
the land.
(3) A person who has not entered
into an agreement referred to in
subsection (2) (b) (ii) must notify, in
accordance with the regulations, the owner of the land of the person's
intention to enter on that land.
(4) The right of entry under
subsection (2) does not extend to any of the following:
(a) land occupied by a building;
(b) the curtilage of a dwelling
house;
(c) protected heritage property,
unless the person is authorized by the local government or the minister
responsible for the protection of the protected heritage property.
(5) In subsection (4) (c), "protected
heritage property" means land or an object that is
(a) protected under section 13 of
the Heritage Conservation Act,
(b) designated under section 967 of
the Local Government Act or section 593
of the Vancouver Charter, or
(c) included under section 970.1
(3) (b) of the Local Government Act in a schedule
to an official community plan.
Application
for permit and authorization
24
(1) Subject to subsection (4), a person may apply to the commission for
a permit by submitting, in the form and manner the commission requires,
(a) a description of the proposed
site of the oil and gas activity,
(b) the information, plans,
application form and records required by the commission,
(c) a written report, satisfactory
to the commission, regarding the results of the consultations carried
out or notification provided under section 22, if any,
(d) the prescribed information,
(e) the prescribed records, and
(f) the prescribed fees and the
security required under section 30.
(2) An application for a permit
under subsection (1) may be consolidated with an application for an
authorization.
(3) Despite anything in a specified
enactment, the commission may not grant an authorization to a person
for a related activity unless the person holds, or has applied for, a
permit for the oil and gas activity related to that related activity.
(4) A person may not submit an
application for a permit to drill or operate a well, unless
(a) the person is the owner of the
petroleum and natural gas rights or is the holder of the location in
respect of the well,
(b) the person has an agreement
with the owner or the holder of the location referred to in paragraph
(a) authorizing the drilling or operation, as applicable,
(c) the person is the holder of a
storage reservoir lease issued under section 130 of the Petroleum
and Natural Gas Act, or
(d) the minister has approved the
submission under subsection (5).
(5) For the purposes of subsection
(4) (d), the minister may
(a) approve the submission by a
person of an application for a permit to drill a well if the well is to
be drilled for exploratory or research purposes only, and
(b) in approving a submission under
paragraph (a), declare that, if a permit is issued to the person on the
basis of the submission, the person is not required to be an owner or
holder referred to in subsection (4) or have the agreement referred to
in that subsection in order to drill or operate the well for the
purposes referred to in paragraph (a).
Permits and
authorizations issued by commission
25
(1) On application by a person under section 24 and after considering
written submissions made under section 22 (5), if any, the commission
may issue a permit to the person if the person meets the requirements
prescribed for the purposes of this section.
(2) In issuing a permit under
subsection (1), the commission
(a) must specify the oil and gas
activities the person is permitted to carry out, and
(b) may impose any conditions on
the permit that the commission considers necessary.
(3) A permit and any authorizations
granted to the applicant for the permit may be issued as a single
document.
(4) If the commission issues a
permit under subsection (1), the commission must provide notice, in
accordance with subsection (5), to the land owner of the land on which
an oil and gas activity is permitted to be carried out under the permit.
(5) A notice under subsection (4)
must
(a) advise the land owner of the
issuance of the permit and of the location of the proposed site of an
oil and gas activity on the land owner's land, and
(b) state that the land owner may
appeal under section 72 the decision to issue the permit, and include
an address to which an appeal may be sent.
(6) A permit holder must not begin
an oil and gas activity on a land owner's land before the expiry of 15
days from the day the permit was issued, unless the land owner consents
in writing to the activity beginning before the expiry of that period.
Actions by
commission respecting permit
26
(1) The commission may
(a) refuse to issue a permit,
(b) suspend a permit or a
permission specified in a permit,
(c) cancel a permit or a permission
specified in a permit, or
(d) amend a permit.
(2) Without limiting the authority
of the commission under subsection (1), the commission may make a
decision under subsection (1) if the applicant or permit holder does
any of the following:
(a) contravenes or has contravened
(i) this Act, the regulations, a
permit, an authorization or an order issued under this Act, or
(ii) the Petroleum
and Natural Gas Act or regulations made under that Act;
(b) fails to meet or no longer
meets any of the conditions of section 24 (4);
(c) fails to meet or no longer
meets the requirements prescribed for the purposes of section 25 (1),
if any;
(d) begins an oil and gas activity
permitted by a permit but then fails to carry out or continue that oil
and gas activity;
(e) engages in or has engaged in a
pattern of conduct that shows, in the commissioner's opinion, that the
person is unfit to have a permit;
(f) is or has been convicted of an
offence under
(i) this Act or any other
enactment, or
(ii) a law enacted by the
government of Canada, another province of Canada or a foreign
jurisdiction
for conduct that shows, in the
commissioner's opinion, that the person is unfit to have a permit.
(3) Without limiting the authority
of the commission under subsection (1), the commission may make a
decision under subsection (1) with respect to an applicant or permit
holder if the applicant or permit holder is an employer, employee,
officer, director or agent of a
(a) permit holder against whom the
commission has made a decision under subsection (1), or
(b) permit holder that has an
employee, officer, director or agent against whom the commission has
made a decision under subsection (1).
(4) Without limiting the authority
of the commission under subsection (1), the commission may make a
decision under subsection (1) with respect to a permit holder who holds
more than one permit for any contravention by the permit holder of
(a) any of the permit holder's
permits, or
(b) any order issued to the permit
holder with respect to oil and gas activities permitted under any of
the permit holder's permits.
(5) If the commission suspends or
cancels a permit or a permission under subsection (1) (b) or
(c), the commission may also suspend or cancel an authorization issued
to the permit holder for a related activity of an oil and gas activity
permitted by the permit, whether or not a specified enactment prohibits
the suspension or cancellation of the authorization or requires the
commission to make a finding other than the suspension or cancellation
of a permit before suspending or cancelling an authorization.
(6) The commission must give a
permit holder an opportunity to be heard before making a decision under
subsection (1) (b), (c) or (d) or (5) and must notify the
permit holder of its decision under any of those provisions.
(7) If the commission refuses under
subsection (1) to issue a permit, the commission must provide notice,
in accordance with subsection (8), to the land owner of the land on
which the applicant for the permit intended to carry out an oil and gas
activity.
(8) A notice under subsection (7)
must advise the land owner
(a) that the commission has refused
to issue a permit,
(b) that the applicant for the
permit may, in relation to the refusal, request a review under section
70 or appeal under section 72, and
(c) that the land owner may, on
request, be a party to an appeal referred to in paragraph (b).
Spent permit
or permission
27
(1) The commission, on its own initiative or on application by a permit
holder, may declare to be spent
(a) a permit, if the commission
considers that the permit holder no longer requires the permit,
(b) a permission specified in a
permit, if the commission considers that the permit holder no longer
requires the permission, and
(c) despite anything in a specified
enactment prohibiting the declaration, an authorization held by the
permit holder, if the commission considers that the permit holder no
longer requires the authorization.
(2) Before the commission makes a
declaration under subsection (1) on its own initiative, the commission
must give the permit holder an opportunity to be heard.
(3) If the commission declares a
permit or permission or an authorization to be spent under subsection
(1), the commission must provide written notice of that declaration to
the permit holder or former permit holder.
Permitted
activity under pipeline permits
28
(1) In this section:
"applicable Act"
means the Community Charter, the Forest
Act, the Forest and Range Practices Act,
the Local Government Act, the Railway
Act, the Railway Safety Act and the Transportation
Act;
"regulator"
means a person authorized to grant an approval under an applicable Act.
(2) Despite anything in an
applicable Act but subject to subsection (3),
(a) the commission, in a pipeline
permit, may give permission to the pipeline permit holder to construct
or operate a pipeline across, along, over or under any highway, road,
public place, railway, underground communication or power line or
another pipeline, and
(b) the pipeline permit holder may
carry out the activities referred to in paragraph (a) in accordance
with the pipeline permit and this Act.
(3) If, but for subsection (2), a
permit holder would not be entitled to carry out the activities
referred to in subsection (2) (a) without obtaining an approval under
an applicable Act, the regulator, on application made by the pipeline
permit holder in accordance with the applicable Act, must grant the
approval to the pipeline permit holder, but may impose, with respect to
the carrying out of those activities, any conditions that the regulator
is authorized to impose on the approval under the applicable Act.
Transfer of
permit and authorizations
29
(1) On application in writing signed by both a permit holder and a
person to whom the permit holder wants the permit to be transferred and
submission of the prescribed fee, if any, the commission
(a) may transfer the permit to that
person, subject to any conditions the commission considers necessary,
and
(b) if the commission transfers the
permit under paragraph (a), must transfer, despite anything in a
specified enactment prohibiting the transfer, all authorizations issued
to the permit holder for related activities of an oil and gas activity
permitted by the permit.
(2) In deciding whether to grant an
application under subsection (1), the commission may consider
(a) any of the matters referred to
in section 26 (2) to (4), and
(b) any other matter that may be
considered under a specified enactment,
as though the person to whom the
permit holder wants the permit to be transferred were an applicant for
the permit and an authorization referred to in
subsection (1) (b) of this section.
(3) A person to whom a permit is
transferred under subsection (1)
(a) has the same rights and
obligations as if the permit had been issued to that person, and
(b) if an authorization is
transferred to that person, has the same rights and obligations as if
the authorization had been issued to that person.
Required
security
30
The commission may require a permit holder, an applicant for a permit
or a transferee of a permit to provide security to the commission, in
the amount the commission requires and in accordance with the
regulations, to ensure the performance of an obligation under this Act,
a permit or an authorization.
Amendment of
permit
31
(1) Before submitting an application under subsection (4) for an
amendment to a permit, a permit holder must provide notice to the land
owner of the land on which an oil and gas activity is permitted to be
carried out under the permit, and the notice must
(a) provide a description of the
proposed amendment, and
(b) advise the land owner that he
or she may make a submission to the commission under subsection (2).
(2) A land owner who receives a
notice under subsection (1) may make a written submission to the
commission regarding the proposed amendment within 15 days of receiving
the notice.
(3) If a land owner makes a
submission under subsection (2), the commission must send a copy of the
submission to the permit holder.
(4) After complying with subsection
(1), a permit holder may apply to the commission for an amendment to
the permit holder's permit by submitting an application in writing and
the prescribed fee, if any.
(5) On receipt of an application and
fee under subsection (4), the commission may require the permit holder
to carry out the prescribed consultations or provide the prescribed
notices, as applicable, with respect to the proposed amendment as
though the permit holder were a prescribed applicant as defined in
section 22.
(6) A permit holder required to
carry out consultations or provide notice under subsection (5) must
submit a written report to the commission regarding the results of the
consultations or notice.
(7) On receipt of an application and
fee under subsection (4) and after considering a submission made under
subsection (2), if any, and the results of consultations carried out or
notices provided under subsection (5), if any, the commission may amend
the permit holder's permit or refuse to amend the permit.
(8) An amendment made under
subsection (7) is effective on and after the day it is made unless the
land owner has made a submission under subsection (2), in which case
the amendment is effective on and after the 15th day after it is made.
(9) If the commission amends a
permit under subsection (7) and the amendment changes the effect of the
permit on the land of the land owner referred to in subsection (1), the
commission must provide notice to the land owner in accordance with
subsection (10).
(10) A notice under subsection (9)
must
(a) advise the land owner of the
amendment,
(b) state that the land owner may
appeal under section 72 the decision to amend the permit, and
(c) provide an address to which an
appeal may be sent.
(11) If the commission refuses to
amend a permit under subsection (7), the commission must provide to the
land owner referred to in subsection (1) notice in accordance with
subsection (12).
(12) A notice under subsection (11)
must advise the land owner
(a) that the applicant for the
amendment may, in relation to the refusal, request a review under
section 70 or appeal under section 72, and
(b) that the land owner may, on
request, be a party to an appeal referred to in paragraph (a).
Expiration
of permit and authorizations
32
(1) Subject to subsection (8), a permit and, despite anything in a
specified enactment, any authorization issued to the permit holder for
a related activity of an oil and gas activity permitted by the permit
expire on the day after the prescribed period has elapsed if the permit
holder has not by that day begun an oil and gas activity permitted by
the permit.
(2) A permit holder, before the
expiry of the permit holder's permit under subsection (1), may
apply to the commission for an extension of the prescribed period with
respect to the permit holder's permit and authorizations by submitting
to the commission
(a) the information, application
form and records required by the commission, and
(b) the prescribed fee.
(3) On receipt of an application and
fee under subsection (2), the commission may require the permit holder
to carry out the prescribed consultations or provide the prescribed
notification with respect to the extension for which the application is
made as though the permit holder were a prescribed applicant as defined
in section 22.
(4) A permit holder required to
carry out consultations or provide notice under subsection (3) must
submit a written report to the commission regarding the results of the
consultations or notice.
(5) On application under subsection
(2), the commission may
(a) extend by not more than one
year the prescribed period with respect to the applicant's permit, and
(b) in granting an extension,
impose additional conditions on the permit and the authorizations.
(6) Despite anything in a specified
enactment, if the commission grants an extension under subsection (5)
for a period of time, the commission may also extend the term of an
authorization referred to in subsection (1), other than an
authorization under section 8 of the Water Act.
(7) An extension with respect to a
permit holder's permit and authorizations may be granted under this
section only once, unless the commission is satisfied there are special
circumstances to justify one or more further extensions.
(8) Despite subsection (1), a permit
or an authorization does not expire under that subsection if the
commission grants an extension under subsection (5) with respect to the
permit or the term of the authorization is extended under
subsection (6).
Surrender of
permit or permission
33
(1) A permit holder may send a notice to the commission advising the
commission of the permit holder's intention to surrender the permit or
a permission specified in a permit.
(2) On receipt of a notice under
subsection (1), the commission may
(a) cancel the permit holder's
permit or permission, as the case may be, and
(b) despite anything in a specified
enactment prohibiting the cancellation, cancel an authorization issued
to the permit holder for a related activity of the oil and gas activity
with respect to which the notice was submitted.
(3) A cancellation under subsection
(2) is effective on the date specified by the commission.
Division
2 — Rights and Obligations
Interests in
land
34
Subject to subsection (2) and sections 23 and 39, a permit holder must
not begin or carry out an oil and gas activity unless the permit
holder, with respect to the land necessary for carrying out the
activity,
(a) is the owner in fee simple of
the land, or
(b) has acquired the land or the
necessary interests in the land in accordance with
(i) the Land Act,
(ii) Part 3 of the
Petroleum and Natural Gas Act, or
(iii) the Expropriation
Act, only if
(A) the permit is a pipeline
permit with respect to a pipeline other than a flow line, and
(B) the permit holder has failed
to obtain, with the owner of the land or the interests in the land, an
agreement authorizing the carrying out of that activity.
Obligations
in carrying out oil and gas activities
35
(1) In carrying out oil and gas activities and related activities, a
permit holder or a person entering land under section 23 must minimize
(a) damage and disturbance to the
sites of those activities, and
(b) waste.
(2) A pipeline permit holder must
make reasonable efforts to ensure that its oil and gas activities do
not prevent access to or use of a highway, road, railway or public
place.
(3) A pipeline permit holder, as
soon as reasonably possible after constructing a pipeline, must
restore, in accordance with the regulations, if any, the land and
surface disturbed by the construction.
Environmental
protection and management
36
(1) A permit holder and a person carrying out an oil and gas activity
must comply with measures established under the authority of a
regulation made under section 104 for the protection and
effective management of the environment.
(2) Subject to regulations made
under section 98, the commission, by order, may exempt, on any
conditions the commission considers necessary, a permit holder from a
requirement imposed by regulation under section 103.
Spillage
37
(1) A permit holder and a person carrying out an oil and gas activity
must
(a) prevent spillage, and
(b) promptly report to the
commission any damage or malfunction likely to cause spillage that
could be a risk to public safety or the environment.
(2) If spillage occurs, a permit
holder or person carrying out an oil and gas activity must promptly do
all of the following:
(a) remedy the cause or source of
the spillage;
(b) contain and eliminate the
spillage;
(c) remediate any land or body of
water affected by the spillage;
(d) if the spillage is a risk to
public safety or the environment, report to the commission
(i) the location and severity of
the spillage, and
(ii) any damage or malfunction
causing or contributing to the spillage.
(3) A person who is aware that
spillage is occurring or likely to occur must make reasonable efforts
to prevent or assist in containing or preventing the spillage.
Records,
reports and plans
38
(1) A permit holder must
(a) maintain the prescribed records
and plans,
(b) maintain the records the
commission orders the permit holder to maintain,
(c) at the request of the
commission, produce the records or plans referred to in paragraph (a)
or (b) for inspection and copying, and
(d) submit, in accordance with the
regulations, prescribed records, reports and plans regarding the permit
holder's oil and gas activities and related activities.
(2) The commission may order a
permit holder to maintain records and plans in addition to the records
and plans prescribed for the purposes of subsection (1) (a).
(3) The commission may disclose
records, reports and plans to the public in accordance with the
regulations.
Suspension
of activity
39
(1) If a permit holder begins an oil and gas activity but ceases to
have the interests in land referred to in section 34 necessary to carry
out that activity, the permit holder must immediately suspend all oil
and gas activities and related activities being carried out on that
land, unless the commission approves the continuation of those
activities under subsection (2).
(2) The commission, on application
by a permit holder referred to in subsection (1), may
(a) approve the continuation of the
permit holder's oil and gas activities and related activities, and
(b) on granting an approval under
paragraph (a), impose additional conditions on the permit holder's
permit and authorizations, if any.
(3) A permit holder with permission
to drill or operate a well must immediately suspend its drilling and
operations if
(a) the permit holder ceases
(i) to be the owner of the
petroleum and natural gas rights or the holder of the location in
respect of the well,
(ii) to have a valid agreement
with the owner of the rights or the holder of the location referred to
in subparagraph (i) authorizing the drilling or operation, as
applicable, or
(iii) to hold a storage
reservoir lease issued under section 130 of the Petroleum
and Natural Gas Act, or
(b) the minister rescinds a
declaration made under section 24 (5) with respect to the permit holder
and those activities.
(4) A permit holder who suspends
activities under subsection (1) or (3) must
(a) immediately notify the
commission of the suspension,
(b) comply with the prescribed
requirements, and
(c) carry out any actions as
directed by the commission.
Obligations
when permit, permission or
authorization expires or is cancelled or spent
40
If a permit, a permission specified in a permit or an authorization
(a) is cancelled under section 26
or 33,
(b) is declared to be spent under
section 27, or
(c) expires under section 32,
the permit holder or former permit
holder, as the case may be, must
(d) unless otherwise ordered by the
commission, perform each obligation imposed
(i) in relation to the permit,
permission or authorization under this Act or a specified enactment, and
(ii) under the permit or
authorization
that has not been performed by the
date of the cancellation, declaration or expiry,
(e) comply with the prescribed
requirements, and
(f) carry out any other actions for
the purposes of restoration or the protection of public safety that the
commission orders the permit holder or former holder to carry out.
Certificate
of restoration
41
(1) A person, other than a person in a prescribed class of persons, to
whom
(a) section 40 (a) or (b) applies,
or
(b) an order has been issued under
section 49
may apply to the commission for a
certificate of restoration by submitting, in the form and manner the
commission requires,
(c) the information and other
records required by the commission, and
(d) the prescribed fee.
(2) On application by a person under
subsection (1), the commission, subject to section 43, may issue to the
person a certificate of restoration certifying, on the basis of the
information known to the commission at the time of certification, that
the commission is satisfied
(a) in the case of an application
by a person referred to in subsection (1) (a), that
the person has complied with section 40 (d) to (f), or
(b) in the case of an application
by a person referred to in subsection (1) (b), that
the person has complied with the order referred to in that subsection.
(3) The issuance of a certificate of
restoration does not relieve a person from any obligations under
section 40 or under an order referred to in subsection (1) (b) of this
section in respect of any matter that was not known to the commission
at the time the certificate of restoration was issued.
Continuing
liability
42
A cancellation, declaration or expiry referred to in section 40 or the
issuance of a certificate of restoration under section 41 does not
affect or relieve the permit holder or former permit holder from
(a) the consequences of any
contravention or offence or any related fine, imprisonment, fee, charge
or penalty, if the contravention or offence occurred before the
cancellation, declaration or expiry, or
(b) any liability imposed on the
permit holder or former permit holder under a specified enactment.
Environmental
Management Act requirements must be met
43
(1) This section applies to an application for a certificate of
restoration under section 41.
(2) The commission may not approve
an application referred to in subsection (1) with respect to a site
where a site profile is required under section 40 of the Environmental
Management Act unless at least one of the following is
satisfied:
(a) the commission has received a
site profile required under section 40 of the Environmental
Management Act with respect to the site and the commission
is not required to forward a copy of the site profile to a director
under section 40 (4) (b) of that Act;
(b) the commission has received a
site profile under section 40 of the Environmental
Management Act with respect to the site, has forwarded a
copy of the site profile to a director under section 40 (4) (b) of that
Act and has received notice from the director that a site investigation
under section 41 of that Act will not be required by the
director;
(c) the commission has received a
final determination under section 44 of the Environmental
Management Act that the site is not a contaminated site;
(d) the commission has received
notice from a director under the Environmental Management Act
that the commission may approve an application under this section
because, in the opinion of the director, the site would not present a
significant threat or risk if the application were approved;
(e) the commission has received
notice from a director under the Environmental Management Act
that the director has received and accepted a notice of independent
remediation with respect to the site;
(f) the commission has received
notice from a director under the Environmental Management Act
that the director has entered into a voluntary remediation agreement
with respect to the site;
(g) the commission has received a
valid and subsisting approval in principle or certificate of compliance
under section 53 of the Environmental Management Act
with respect to the site.
Part
4 — Orphan Sites
Definitions
44
In this Part:
"former Act"
means the Oil and Gas Commission Act, S.B.C.
1998, c. 39, as it was immediately before its repeal;
"fund"
means the fund continued under section 45 (3);
"marketable gas"
means natural gas that is available for sale for direct consumption as
a domestic, commercial or industrial fuel, or as an industrial raw
material, or that is delivered to a storage facility, whether it occurs
naturally or results from the processing of natural gas;
"orphan site"
means a site designated under section 45 (2);
"restore"
includes the requirements under section 40;
"surface lease"
includes an order of the Mediation and Arbitration Board under
Part 3 of the Petroleum and Natural Gas Act.
Reclamation
of orphan sites
45
(1) The commission may restore orphan sites.
(2) The commission may designate as
an orphan site a well, facility or pipeline if the operator with
respect to that well, facility or pipeline is insolvent or the
commission has not been able to identify the operator.
(3) The fund held by the commission
under section 6.2 of the former Act is continued, and the purposes of
the fund are to provide money as follows:
(a) to pay the costs of restoration
in respect of orphan sites;
(b) to pay costs incurred in
pursuing reimbursement for the costs referred to in paragraph (a) from
the person responsible for paying them;
(c) to pay any other costs directly
related to the operations of the commission in respect of the fund;
(d) to pay compensation for the
purposes of section 46.
(4) The following must be deposited
to the credit of the fund:
(a) money paid to the commission
under section 18 (2) (b);
(b) money borrowed to meet any
deficit in the fund;
(c) money recovered or received by
the commission under subsection (7) of this section and section 46 (4);
(d) any interest or other income of
the fund.
(5) The commission may do one or
more of the following:
(a) pay money from the fund for any
of the purposes referred to in subsection (3) in accordance
with any regulations made for the purposes of this section and section
46;
(b) from the fund, repay any money
borrowed by the commission for the purposes of the fund;
(c) determine the date on which an
orphan site has been satisfactorily restored.
(6) For the purposes of subsection
(2), an operator must be considered to be insolvent if the operator
files for protection under the Companies' Creditors
Arrangement Act (Canada) or is a bankrupt or an insolvent
person under the Bankruptcy and Insolvency Act
(Canada).
(7) If the commission restores an
orphan site, the costs paid out of the fund in respect of that orphan
site are a debt payable by the operator referred to in subsection (2)
to the commission and the commission has a right of action against the
operator for the recovery of that debt.
(8) For the purpose of restoring an
orphan site, the commission has the same powers as it has under
sections 53 and 57.
Compensation
for land owners respecting orphan sites
46
(1) On application by a land owner on whose land the commission expends
money in accordance with section 45, the commission may make payments
from the fund to compensate the land owner for the loss of use of his
or her land as a result of the failure by the operator referred to in
section 45 (2) to restore the land, subject to the maximums, conditions
and limitations prescribed by regulation.
(2) In determining the amount of
compensation to be paid to a land owner under subsection (1), the
commission may consider any payments due to the land owner or a
previous land owner under a surface lease with respect to the site.
(3) Before it compensates a land
owner under subsection (1), the commission may require as a condition
of compensation that the land owner assign to the commission the land
owner's rights, if any, to overdue payments under a surface lease.
(4) If the commission provides
compensation to a land owner, the commission has a right of action
against the operator for the recovery of the amount paid in
compensation.
Orphan site
restoration tax
47
(1) For the raising of revenue for the purposes of the fund, a producer
must pay to the government a tax as determined under subsection (2),
unless the operation of the tax is suspended by a regulation made under
section 100 (2) (d).
(2) The tax under subsection (1)
must be paid by a producer at the following rates:
(a) $0.03 per 1 000 cubic metres of
marketable gas produced by the producer in a production month;
(b) $0.06 per cubic metre of
petroleum produced by the producer in a production month.
(3) Subject to subsection (4),
sections 73 (4) and 74 to 77 of the Petroleum and Natural
Gas Act apply to the tax under this section as if it were a
royalty under those sections of that Act.
(4) If there is a conflict between a
regulation made under section 100 of this Act and sections 73 (4) and
74 to 77 of the Petroleum and Natural Gas Act or
the regulations made under those sections of that Act, the regulation
made under this Act prevails.
(5) The commission must provide to a
producer a notice of the tax payable by that producer under this
section.
(6) A notice required under
subsection (5) may be provided to a producer by including the notice in
an invoice sent to the producer in respect of a levy payable under
regulations made under section 110 (a) of this Act.
(7) A producer must pay the tax by
the date specified under the regulations.
(8) A producer who fails to pay the
tax by the date specified under the regulations must pay to the
government penalties set by regulation.
Part
5 — Compliance and Enforcement
Division
1 — Reference and Application
Reference
and application
48
(1) In this Part:
(a) a reference to "the Act" is to
be read as a reference to both this Act and the specified enactments,
other than the Environmental Management Act and
the Water Act;
(b) a reference to "the
regulations" is to be read as a reference to both the regulations made
under this Act and to the regulations made under the specified
enactments, other than the Environmental Management Act
and the Water Act;
(c) a reference to an authorization
does not include the following:
(i) an authorization under the Environmental
Management Act or the Water Act issued
by the commission under section 8 of this Act;
(ii) an authorization issued by
the commission under section 9;
(d) a reference to a related
activity does not include a related activity under the Environmental
Management Act or the Water Act.
(2) Despite anything in a specified
enactment,
(a) an order may be issued under
Division 2 with respect to an authorization or a related activity,
(b) the powers granted under
Division 3 to an official or peace officer may be exercised with
respect to an authorization or a related activity,
and
(c) a finding may be made under
section 62 and an administrative penalty may be imposed under section
63 with respect to an authorization or a related activity.
Division
2 — Orders
Order issued
by official
49
(1) An official may, in writing, issue to a person carrying out an oil
and gas activity or a related activity an order under this section with
respect to those activities or any of the person's obligations under
the Act or the regulations or the person's permit or authorization, if
any, if, in the opinion of the official,
(a) the person fails to comply with
the Act, the regulations, a previous order made under the Act, or the
person's permit or authorization, or
(b) the order is necessary
(i) to mitigate a risk to public
safety,
(ii) to protect the environment,
or
(iii) to promote the
conservation of petroleum and natural gas resources.
(2) An official may issue an order
to a person under subsection (1) with respect to an act or omission by
the person whether or not the commission has made a finding under
section 62 with respect to that act or omission.
(3) An order under subsection (1)
must
(a) name the person to whom the
order is addressed,
(b) specify the action to be taken,
stopped or modified,
(c) state the date by which the
person must comply with the order,
(d) state the reasons for the order,
(e) state that the person may
request a review of the order under section 70 or appeal the decision
under section 72, and include an address to which a request for a
review or an appeal may be sent,
(f) be dated the day the order is
made,
(g) be served on the person to whom
it is addressed, and
(h) if the order is addressed to an
employee, agent or contractor of a permit holder, serve a copy of the
order on the permit holder.
(4) Without limiting subsection (3)
(b), an order under subsection (1) may specify any of the following
requirements:
(a) that a person must apply to
obtain or amend a permit or an authorization in accordance with the Act
and the regulations;
(b) that a person remedy a failure
referred to in subsection (1) (a);
(c) that a person repair damage to
the environment;
(d) that a person suspend or resume
an oil and gas activity or any aspect of an oil and gas activity;
(e) that a person use a specified
method to carry out an oil and gas activity;
(f) that a person conduct tests,
take samples, conduct analyses and submit records and information to
the commission;
(g) that a person control or
prevent the escape of petroleum, natural gas, water, waste or other
substances from a well, pipeline or facility;
(h) that a person repressure,
recycle or carry out pressure maintenance of any pool or portion of it,
or use any other enhanced recovery technique, including the
introduction or injection of natural gas, water or other substances
into any pool or part of it;
(i) with respect to water produced
in relation to the production of petroleum or natural gas, that a
person dispose of the water into an underground formation or as
otherwise specified;
(j) that a person deepen a well
beyond the formation from which production is being taken or has been
taken;
(k) that a person recomplete a well;
(l) that a person restrict or cease
production of petroleum, natural gas or water;
(m) that natural gas be gathered,
and processed if necessary, and that the natural gas or liquid
hydrocarbons extracted be marketed or injected into an underground
reservoir for storage or for any other purpose;
(n) that a pipeline permit holder
alter or divert its pipeline;
(o) that a permit holder prepare
and implement, in a form and manner satisfactory to the official, a
program of measures to contain and eliminate spillage;
(p) that a permit holder arrange
for an independent audit of the permit holder's operations and
activities and have the auditor's report submitted to the official.
(5) Despite subsection (3), if the
official referred to in subsection (1) is of the opinion that a
person's actions or omissions are of such nature that they are causing,
or may imminently cause, serious damage to the environment or that they
are a risk to public safety, the order under subsection (1) may be
issued orally.
(6) If, under subsection (5), an
official issues an order orally, an official, within 48 hours, must
confirm the order in writing as required under subsection (3) or the
order ceases to be effective.
(7) An official may amend an order
issued under subsection (1), and subsection (3) applies to the
amendment.
(8) If satisfied that the
circumstances that gave rise to an order under subsection (1) are no
longer present or have been affected by other circumstances, an
official may terminate the order by providing the person to whom the
order was addressed with written notice of the termination.
(9) An order under subsection (1)
may specify a requirement that is different from a requirement in a
provision of a regulation under this Act, if the regulation expressly
states that the provision is subject to this section.
(10) Subject to subsection (9), if a
regulation is made concerning a matter with respect to which an order
has been made under this section, the order, if it has not been
terminated under subsection (8), is no longer valid to the extent of
any inconsistency between the order and the regulation.
Commission
may carry out action
50
(1) If an official issues an order under section 49 (1) and the person
to whom the order was issued has not complied with the order by the
date specified in the order under section 49 (3) (c), the commission
may do one or more of the following:
(a) by order in writing, restrict
or prohibit the person from carrying out an action referred to in the
order;
(b) after giving the person an
opportunity to be heard, carry out an action referred to in the order;
(c) by order in writing, require
the person to pay to the commission the amount of all direct and
indirect costs the commission determines were reasonably incurred in
carrying out the action referred to in paragraph (b).
(2) An order referred to in
subsection (1) (c) must provide the person to whom it is issued with an
accounting of the expenditures relating to the action referred to in
subsection (1) (b).
Access
restricted or prohibited
51
(1) An official, by order, may restrict or prohibit, in a manner
prescribed by regulation, access to a public area, including a highway,
road, resource road, and railway, if the official is of the opinion
that the restriction or prohibition is necessary because of hazardous
conditions resulting from an oil and gas activity.
(2) If an official issues an order
under subsection (1), the commission must confirm the order in writing
within 24 hours or the order ceases to be effective.
Emergency
measures regarding spillage
52
(1) An official may, in the case of an emergency,
(a) enter on any land or body of
water and do the things the official considers necessary to implement
and carry out measures to contain and eliminate spillage, and
(b) order
(i) any permit holder, and
(ii) the use of any person's
equipment and the operator of that equipment,
to assist in the implementation or
carrying out of measures to contain and eliminate spillage.
(2) The commission may reimburse a
permit holder or person referred to in subsection (1) (b) for costs or
expenses incurred as a result of an order issued under that subsection
if the permit holder or person is not, in the commission's opinion,
responsible for the spillage or for the likely source or cause of the
spillage.
(3) If costs or expenses are
incurred by the commission in implementing or carrying out measures to
contain and eliminate spillage or making a reimbursement under
subsection (2), the commission may do one or more of the following:
(a) take, deal with and dispose of
the spillage, subject to section 55;
(b) order
(i) the permit holder, or
(ii) the person
who the commission believes is
responsible for the spillage or for the likely source or cause of the
spillage to pay the costs and expenses, or a part of them;
(c) order the permit holder or
person referred to in paragraph (b) to indemnify the commission for
costs or expenses paid by the commission;
(d) for the purpose of paragraph
(b) or (c), direct the manner of payment or indemnification.
Control of
oil and gas activities
53
(1) If, in the commissioner's opinion,
(a) a permit holder has engaged in
a pattern of conduct that shows that the person is unfit to carry out
the oil and gas activities permitted by the permit holder's permit, and
(b) there is a risk to public
safety, the environment or petroleum and natural gas resources,
the commission may
(c) enter, seize and take control
of any well, pipeline, facility or storage reservoir together with any
associated chattel and fixture and any pertinent records,
(d) either discontinue all activity
or take over the management and control of the well, pipeline, facility
or storage reservoir,
(e) take the steps the commission
considers necessary
(i) to prevent the flow or
release of petroleum, natural gas or other substances from any stratum
that a well enters, including plugging a well at any depth, or
(ii) for public safety or to
protect the environment, and
(f) carry out any other prescribed
actions.
(2) If the commission takes control
of a well, pipeline, facility or storage reservoir,
(a) the commission may issue orders
concerning the well, pipeline, facility or storage reservoir to
(i) the permit holder, and
(ii) an officer, employee, agent
and contractor of the permit holder operating the well, pipeline,
facility or storage reservoir,
and, if the commission issues an
order to a person referred to in either subparagraph (i) or (ii), the
order applies to both the person referred to in subparagraph (i) and
the persons referred to in subparagraph (ii), and
(b) subject to section 55, the
commission may take, deal with and dispose of all petroleum, natural
gas or other substances from the well, pipeline, facility or storage
reservoir.
(3) The commissioner may order by
whom and to what extent costs and expenses incurred as a result of
proceedings taken under this section are to be paid.
Use of
proceeds
54
From the proceeds of spillage disposed of under section 52 (3) (a) or
of petroleum, natural gas or other substances disposed of under
section 53 (2) (b), the commission
(a) must pay royalties owed with
respect to the petroleum or natural gas under Part 10 of the Petroleum
and Natural Gas Act, and
(b) after making the payments
referred to in paragraph (a), may pay
(i) costs and expenses incurred
as a result of proceedings taken under section 52 or 53, as applicable,
and
(ii) costs and expenses of
carrying out investigations and conservation measures that the
commission considers necessary in connection with the exercise of its
powers under section 52 or 53.
Payment into
court
55
The net proceeds of spillage disposed of under section 52 (3) (a) or of
petroleum, natural gas or other substances disposed of under
section 53 (2) (b) remaining after payment of the costs and
expenses under section 54 must be paid by the commission into the
Supreme Court, and must be paid out to the persons and in the amounts
as may be determined by the court on application of a person claiming
to be entitled to any of the proceeds.
Statutory
immunity
56
(1) Subject to subsection (2), no legal proceeding for damages lies or
may be commenced or maintained against the government, the
commissioner, the commission, an official or the commission's directors
or employees because of anything done or omitted
(a) in the performance or intended
performance of a duty under sections 50 to 53, or
(b) in the exercise or intended
exercise of a power under sections 50 to 53.
(2) Subsection (1) does not apply to
a person referred to in that subsection in relation to anything done or
omitted by that person in bad faith.
Division
3 — Inspections and Audits
Entry and
inspection or audit
57
(1) In subsection (2), "dwelling" means
(a) a structure occupied as a
private residence, and
(b) if only part of a structure is
occupied as a private residence, that part of the structure.
(2) For any purpose related to the
administration or enforcement of the Act, the regulations, a permit or
an authorization, an official may enter, at any reasonable time, on
land or premises, other than a dwelling, if the official has reasonable
grounds to believe that
(a) the land or premises is the
site of an oil and gas activity or a related activity that is regulated
under the Act or the regulations or is carried on by a person who is
required under this Act to hold a permit or an authorization to carry
out that activity, or
(b) records concerning the
activities referred to in paragraph (a) are kept on the land or
premises.
(3) In order to obtain access under
subsection (2), an official may enter land owned by a person other than
a permit holder if the entry is reasonably necessary to obtain the
access.
(4) An official who enters on land
or premises under this section may
(a) inspect or audit anything or
any activity that is reasonably related to the purpose of the
inspection or audit,
(b) take samples and carry out
tests and examinations,
(c) require production for the
purposes of inspection or audit or copying of
(i) a permit or authorization
that is required for the activity, and
(ii) a record required to be
kept under the Act or the regulations, and
(d) make inquiries the official
considers necessary.
(5) A peace officer has the powers
and duties of an official under this section with respect to the
enforcement of the provisions of the Act and the regulations.
Inspection
of vehicle
58
For any purpose related to the administration and enforcement of the
Act, the regulations, a permit or an authorization, an official or
peace officer may
(a) require a person operating a
vehicle to stop the vehicle, and
(b) carry out an inspection of a
vehicle and its contents.
Obligation
of an official
59
An official who under this Part enters onto land or premises for the
purposes of administering or enforcing the Act or the regulations,
stops a vehicle, requests records or plans or seizes records or plans
must provide proof of identity, on the request of the person who
(a) is in possession or apparent
possession of the land or premises,
(b) has apparent custody or control
of the records or plans being inspected or audited,
(c) is in charge of the activity
being inspected or audited, or
(d) is operating a vehicle stopped
under section 58.
Obligation
of person inspected or audited
60
(1) The operator of a vehicle must stop the vehicle when required to do
so by
(a) an official referred to in
section 58, or
(b) a peace officer
who
(c) is in uniform,
(d) displays his or her official
identification card or badge, or
(e) is in or near a vehicle that is
either a vehicle of a peace officer or readily identifiable as a
commission or other government vehicle.
(2) A person who is described in
paragraphs (a) to (d) of section 59 must produce, if and as required by
the official or peace officer,
(a) proof of identity,
(b) a permit or an authorization
held by the person under the Act, and
(c) a record or plan required to be
maintained under section 38.
Requirement
to submit to inspection or audit
61
A person must not
(a) obstruct or interfere with an
official or peace officer acting under the authority of this Division
to administer or enforce the Act or the regulations, or
(b) withhold, destroy, tamper with,
alter, conceal or refuse to produce any information, record, plan,
report, substance, sample or thing that is required to be produced by
an official or peace officer administering or enforcing the Act or the
regulations.
Division
4 — Contraventions and Administrative Penalties
Contraventions
62
(1) After giving an opportunity to be heard to a person who is alleged
to have contravened a provision of the Act, the regulations, a permit,
an authorization or an order, the commission may find that the person
has contravened the provision.
(2) If a corporation contravenes a
provision referred to in subsection (1), a director, agent or officer
of the corporation who authorized, permitted or acquiesced in the
contravention also contravenes the provision.
(3) If an employee, contractor or
agent of a permit holder contravenes a provision referred to in
subsection (1) in the course of carrying out the employment, contract
or agency, the permit holder also contravenes the provision.
(4) If a person contravenes a
provision referred to in subsection (1), any other person who
(a) is directly or indirectly
responsible for the act or omission that constitutes the contravention,
and
(b) is a contractor, employee or
agent of the person or of an other person described in paragraph (a)
also contravenes the provision.
(5) The commission may not find that
a person has contravened a provision referred to in subsection (1) if
the person demonstrates to the satisfaction of the commission that
(a) the person exercised due
diligence to prevent the contravention,
(b) the person reasonably believed
in the existence of facts that if true would establish that the person
did not contravene the provision, or
(c) the person's actions relevant
to the provision were the result of an officially induced error.
(6) If
(a) a corporation referred to in
subsection (2),
(b) an employee, contractor or
agent referred to in subsection (3), or
(c) a person referred to in
subsection (4)
has not contravened a provision
referred to in subsection (1) as a result of demonstrating to the
satisfaction of the commission anything referred to in subsection (5)
(a) to (c), the commission may find that any of the other persons
referred to in subsections (2) to (4) has contravened the provision,
unless the other person demonstrates to the satisfaction of the
commission anything referred to in subsection (5) (a) to (c).
(7) Nothing in subsection (5)
prevents
(a) an official from issuing an
order under section 49 (1) to a person with respect to an act or
omission by the person, or
(b) the commission from doing
anything referred to in section 50.
(8) A person does not contravene a
provision referred to in subsection (1) by doing or omitting to do
something if that act or omission is reasonably necessary to conform
with the requirements of the Workers Compensation Act
or any regulations under that Act.
Administrative
penalties
63
(1) If the commission finds that a person has contravened a provision
referred to in section 62 (1), the commission may impose an
administrative penalty on the person in an amount that does not exceed
the prescribed amount.
(2) Before the commission imposes an
administrative penalty on a person, the commission must consider the
following:
(a) previous contraventions by,
administrative penalties imposed on or orders issued to
(i) the person,
(ii) if the person is an
individual, a corporation for which the individual is or was an
officer, director or agent, and
(iii) if the person is a
corporation, an individual who is or was an officer, director or agent
of the corporation;
(b) the gravity and magnitude of
the contravention;
(c) the extent of the harm to
others resulting from the contravention;
(d) whether the contravention was
repeated or continuous;
(e) whether the contravention was
deliberate;
(f) any economic benefit derived by
the person from the contravention;
(g) the person's efforts to prevent
and correct the contravention;
(h) any other matters prescribed by
the Lieutenant Governor in Council.
(3) If a person is charged with an
offence under this Act, an administrative penalty may not be imposed on
the person in respect of the same circumstances that gave rise to the
charge.
Notice of
contravention or penalty
64
If the commission finds that a person has contravened a provision
referred to in section 62 (1) or imposes an administrative
penalty on a person, the commission must give to the person a notice of
the finding or administrative penalty and the notice must specify the
following:
(a) the contravention;
(b) the amount of the penalty, if
any;
(c) the date by which the penalty,
if any, must be paid;
(d) the person's right to request a
review of the decision under section 70 or to appeal the decision under
section 72;
(e) an address to which a request
for a review or an appeal may be sent.
Due date of
penalty
65
The person on whom an administrative penalty is imposed must pay the
administrative penalty
(a) if paragraph (b) does not
apply, within 30 days after the date on which the notice referred to in
section 64 is served on the person, or
(b) by the later of the following:
(i) if the person requests a
review of the administrative penalty under section 70, 30 days
after the date on which the notice referred to in section 71 (1) (b) is
served on the person, unless the penalty is rescinded under section 71
(1) (a);
(ii) if the person appeals the
administrative penalty under section 72 and the appeal tribunal does
not make an order under section 72 (4) with respect to that appeal, 30
days after the date on which the decision of the appeal tribunal is
served on the person, unless the penalty is rescinded under
section 72 (6) (a) or dealt with as
described in section 72 (6) (b).
Enforcement
of administrative penalty
66
(1) An administrative penalty constitutes a debt payable to the
government by the person on whom the penalty is imposed.
(2) If a person fails to pay an
administrative penalty as required under section 65,
(a) the government may file with
the Supreme Court or Provincial Court a certified copy of the notice
imposing the administrative penalty and, on being filed, the notice has
the same force and effect, and all proceedings may be taken on the
notice, as if it were a judgment of that court, and
(b) the commission may refuse to
consider applications made by the person under section 24.
Revenue from
administrative penalties
67
The commission must pay all amounts derived from administrative
penalties into the consolidated revenue fund.
Time limit
for imposing an administrative penalty
68
(1) The time limit for making a finding under section 62 and giving a
notice under section 64 is
(a) 3 years after the date on which
the act or omission that is alleged to constitute the contravention
occurred, or
(b) if the commissioner issues a
certificate described in subsection (2) of this section, 3 years after
the date on which the commissioner learned of the act or omission
referred to in paragraph (a).
(2) A certificate purporting to have
been issued by the commissioner certifying the date referred to in
subsection (1) (b) is proof of that date.
Part
6 — Reviews and Appeals
Definitions
and application
69
(1) In this Part:
"determination"
means
(a) with respect to an eligible
person other than a land owner referred to in paragraph (b),
(i) a decision made by the
commission under section 25 or 26,
(ii) a declaration made by the
commission on its own initiative under section 27,
(iii) an order made by the
commission under section 40 (f),
(iv) an order issued by an
official or the commission under Division 2 of Part 5,
(v) a finding made by the
commission under section 62,
(vi) an administrative penalty
imposed by the commission under section 63, and
(vii) a prescribed decision made
under this Act, and
(b) with respect to a land owner of
land on which an oil and gas activity is permitted to be carried out
under this Act,
(i) a decision made by the
commission
(A) under section 25 to issue a
permit to carry out an oil and gas activity on the land of the land
owner, and
(B) under section 31 to amend a
permit, if the amendment changes the effect of the permit on the land
of the land owner, and
(ii) a decision made by a review
official under section 71 to vary a determination referred to in
paragraph (a) (i) of this definition so that
(A) a permit is amended, if the
amendment changes the effect of the permit on the land of the land
owner, or
(B) a permit is issued to carry
out oil and gas activities on the land of a land owner;
"eligible person"
means
(a) an applicant for a permit,
(b) a permit holder or former
permit holder,
(c) a land owner of land on which
an oil and gas activity is permitted to be carried out under this Act,
(d) a person to whom an order under
section 49 (1) has been issued, and
(e) a person with respect to whom
the commission has made a finding of a contravention under section 62;
"review official"
means, in relation to a determination, a person who did not make the
determination but who is designated in writing by the commission to
review the determination for the purposes of sections 70 and 71.
(2) Despite anything in a specified
enactment, a determination may not be appealed, reviewed or otherwise
reconsidered except as provided in this Part.
Review by
review official
70
(1) Subject to subsection (2), an eligible person, other than a land
owner of land on which an oil and gas activity is permitted to be
carried out under this Act, may request, in accordance with this
section, a review of a determination.
(2) An eligible person may not
request a review of a determination under subsection (1) if
the eligible person has appealed the determination under
section 72.
(3) A request for a review under
subsection (1) must be made within 30 days of receiving the later of
(a) the determination, and
(b) any written reasons respecting
the determination.
(4) Despite subsection (3), a review
official may extend the time to request a review, even if the time to
make the request has expired, if satisfied that
(a) special circumstances existed
which precluded making the request within the time period required
under subsection (3), and
(b) an injustice would otherwise
result.
(5) The eligible person must make
the request in writing and must identify the error the eligible person
believes was made or the other grounds on which a review is requested.
(6) On receipt by the review
official of a request under subsection (1), the determination to be
reviewed as a result of the request
(a) is stayed, if the determination
is an administrative penalty imposed under section 63, and
(b) is not stayed, if the
determination is not an administrative penalty referred to in paragraph
(a), unless the review official orders that the determination is stayed.
(7) The review official may conduct
a written, electronic or oral review, or any combination of them, as
the review official, in his or her sole discretion, considers
appropriate.
Powers of
review official
71
(1) As soon as practicable after receiving a request under section 70
(1), the review official must
(a) confirm, vary or rescind the
determination, and
(b) notify, in writing, the
eligible person of the following:
(i) the review official's
decision;
(ii) the reasons for the
decision;
(iii) the eligible person's
right to appeal the decision under section 72.
(2) If the review official varies a
determination under subsection (1) so that
(a) a permit is amended and the
amendment changes the effect of the permit on the land of the land
owner, or
(b) a permit is issued to carry out
oil and gas activities on the land of a land owner,
the review official must notify the
land owner of the amendment or issuance in accordance with section 25
(4) or 31 (9), as applicable.
Appeal
72
(1) Subject to subsection (2), an eligible person may appeal to the
appeal tribunal
(a) a decision made under section
71, if the eligible person was a party to the review under that
section, and
(b) a determination, if the
eligible person has not, by the date the person commences the appeal,
applied under section 70 (1) for a review of the determination.
(2) A land owner of land on which an
oil and gas activity is permitted to be carried out under this Act may
appeal a determination under this section only on the basis that the
determination was made without due regard to
(a) a submission previously made by
the land owner under section 22 (5) or 31 (2) of this
Act, or
(b) a written report submitted
under section 24 (1) (c).
(3) Subject to subsection (4), the
commencement of an appeal does not operate as a stay or suspend the
operation of the determination or decision being appealed, unless the
appeal tribunal orders otherwise.
(4) The commencement of an appeal
with respect to an administrative penalty operates as a stay of the
determination that imposed the penalty or the decision that did not
rescind the penalty, unless the appeal tribunal orders otherwise.
(5) The appellant and the commission
are parties to an appeal, and
(a) if a person to whom an order
under section 49 (1) has been issued files an appeal and the person is
not a permit holder with respect to the oil and gas activity that is
the subject of the order, the permit holder is also a party to the
appeal,
(b) if a land owner of land on
which an oil and gas activity is permitted to be carried out under this
Act files an appeal, the permit holder with respect to the oil and gas
activity is also a party to the appeal,
(c) if an applicant for a permit
appeals a refusal to issue a permit, the land owner of the land on
which the applicant for the permit intended to carry out an oil and gas
activity is, on request, also a party to the appeal, and
(d) if a permit holder appeals a
refusal to amend a permit, the land owner of the land on which an oil
and gas activity is permitted to be carried out under the permit is, on
request, also a party to the appeal.
(6) On an appeal under subsection
(1), the appeal tribunal may
(a) confirm, vary, or rescind the
decision made under section 71 or the determination, or
(b) send the matter back, with
directions, to the review official who made the decision or to the
person who made the determination, as applicable.
(7) Despite the application of
section 24 (1) of the Administrative Tribunals Act
to the appeal tribunal, a land owner must file a notice of appeal
within 15 days of the day the determination being appealed was made.
Publication
73
The commission may direct a person to publish, at the person's own
cost, the facts relating to the imposition of an administrative penalty
or to an order issued under Division 2 of Part 5, if the person's
rights of review and appeal have elapsed without the penalty or order
being rescinded or dealt with as described in section 72 (6) (b).
Part
7 — General
Lieutenant
Governor in Council
may order extension of pipeline
74
(1) If the Lieutenant Governor in Council considers it necessary or in
the public interest, the Lieutenant Governor in Council may order a
pipeline permit holder to do any or all of the following:
(a) to extend or improve its
pipeline for the junction with a pipeline of a person or local
authority distributing or authorized to distribute gas to the public;
(b) to sell gas to the person or
local authority referred to in paragraph (a), if to do so would not
impair the pipeline permit holder's ability to render adequate service
to its existing customers;
(c) for the purposes in paragraph
(a), to construct pipelines to communities immediately adjacent to its
pipeline, if the Lieutenant Governor in Council considers that the
construction would not place an undue burden on the pipeline permit
holder.
(2) The Lieutenant Governor in
Council, in an order under subsection (1),
(a) may order that a person other
than a pipeline permit holder referred to in that subsection must pay
the costs, or a portion of the costs, incurred in carrying out the
order, or
(b) may approve the payment of any
of those costs from the consolidated revenue fund.
(3) If an order is made under
subsection (1), the commission must amend under section 26 (1) the
pipeline permit holder's permit to the extent necessary to make the
permit consistent with the order.
Special
projects
75
(1) The commission, on its own initiative or on application by a permit
holder or an applicant for a permit, may designate, by order or in a
permit, any of the following as a special project:
(a) the development or production
of petroleum, natural gas, or both, from a field or pool or portion of
a field or pool, using repressuring, recycling, pressure maintenance or
any other technique to enhance recovery;
(b) the application of innovative
technology, as defined by regulation;
(c) an innovative method of
carrying out oil and gas activities and related activities;
(d) any other prescribed oil and
gas activity or method of carrying out an oil and gas activity.
(2) The commission may
(a) make a designation under
subsection (1) with or without conditions, and
(b) cancel or suspend a designation
(i) at the request of the permit
holder to whom the designation was given, or
(ii) if it appears to the
commission that there has been a contravention of this Act, the
regulations, a permit, an authorization or an order respecting the
designation or a condition of the designation.
(3) A permit holder with a permit
for an oil and gas activity that has been designated as a special
project under subsection (1) may apply to the commission for other than
normal spacing under section 65.1 of the Petroleum and
Natural Gas Act.
(4) For the purposes of a special
project or of special projects generally, the Lieutenant Governor in
Council and the commission may each, in exercising a regulation-making
power under this Act, make a regulation that is contrary to or
inconsistent with a provision of this Act.
Pipeline
crossings
76
(1) Subject to subsection (3), a person must not
(a) construct
(i) a highway, road or railway,
(ii) an underground
communication or power line, or
(iii) any other prescribed work,
or
(b) carry out a prescribed activity
along, over or under a pipeline or
within a prescribed distance of a pipeline unless
(c) the pipeline permit holder
agrees in writing to the construction or the carrying out of an
activity prescribed for the purposes of paragraph (b), or
(d) the commission, by order,
approves the construction or the carrying out of the prescribed
activity.
(2) The commission, in an order
issued under subsection (1) (d), may impose any conditions on the
approval that the commission considers necessary to protect the
pipeline.
(3) The commission must approve
(a) the construction referred to in
subsection (1), and
(b) the carrying out of a
prescribed activity
by the government, but may impose
conditions referred to in subsection (2) in the approval issued under
subsection (1).
(4) The commission, for the purposes
of deciding whether to issue an order under subsection (1) or impose
conditions under subsection (2), may require a pipeline permit holder
to submit information regarding the pipeline permit holder's pipeline.
(5) The commission may order a
pipeline permit holder whose pipeline is the subject of an order issued
under subsection (1)
(a) with the approval of the
Lieutenant Governor in Council, to relocate the pipeline to facilitate
the construction or prescribed activity approved by the order issued
under subsection (1), and
(b) to take the actions specified
in the order that the commission considers necessary to protect the
pipeline.
(6) In relation to an order of the
commission referred to in subsection (5), the Lieutenant Governor in
Council
(a) may order that a person other
than the pipeline permit holder must pay the costs, or a portion of the
costs, incurred in carrying out the commission's order, or
(b) may approve the payment of any
of those costs from the consolidated revenue fund.
Registry
77
The commission must maintain a registry containing the prescribed
information about oil and gas activities.
Correction
or clarification of a decision
78
(1) In this section, "decision" means any
determination, declaration, order, finding or other decision made under
this Act by the commission.
(2) If the commission makes a
decision, the commission may
(a) correct a typographical, an
arithmetical or another similar error in the decision, and
(b) correct an obvious error or
omission in the decision.
(3) If the commission corrects a
decision under this section, the commission must notify the person who
is the subject of the decision and the correction does not take effect
until that notification is given.
How to serve
documents and notices
79
(1) All documents that are required or permitted under this Act to be
given to or served on a person must be given or served in one of the
following ways:
(a) by leaving a copy with the
person;
(b) if the person is a permit
holder or an authorization holder,
(i) by leaving a copy with an
agent of that person,
(ii) by sending a copy by
ordinary mail or registered mail to the address at which that person
carries on business,
(iii) by sending a copy by
electronic mail to the electronic mail address provided by that person,
(iv) by leaving a copy in a mail
box or mail slot for the address at which that person carries on
business, or
(v) by attaching a copy to a
door or other conspicuous place at the address at which that person
carries on business;
(c) by transmitting a copy to a
facsimile number provided as an address for service by the person;
(d) by any other prescribed method
of service.
(2) A document given or served in
accordance with subsection (1) is deemed to be received as follows:
(a) if given or served by sending a
copy by ordinary or registered mail, on the 5th day after it is mailed;
(b) if given or served by sending a
copy by electronic mail, on the 3rd day after it is sent;
(c) if given or served by leaving a
copy in a mail box or mail slot, on the 3rd day after it is left;
(d) if given or served by attaching
a copy to a door or other conspicuous place, on the 3rd day after it is
attached;
(e) if given or served by
transmitting a copy by facsimile, on the 3rd day after it is
transmitted;
(f) if given or served by any other
method of service prescribed under subsection (1) (d), as prescribed.
Opportunity
to be heard
80
(1) In any circumstances in which, under this Act, an opportunity to be
heard is provided, the commission may conduct a written, electronic or
oral hearing, or any combination of them, as the commission, in its
sole discretion, considers appropriate.
(2) The commission may make rules
respecting the circumstances and place in which and the process by
which written, electronic or oral hearings may be conducted under
subsection (1) and specifying the form and content of materials to be
provided for written, electronic or oral hearings.
False or
misleading statements
81
A person must not make a false or misleading statement in any
application or other record submitted under this Act, or otherwise make
a false statement to, or mislead or attempt to mislead, a person
exercising a power or performing a duty or function under this Act.
Compliance
with orders
82
A person to whom an order under this Act applies must comply with the
order.
Application
of Act to Muskwa-Kechika Management Area
83
If there is a conflict or inconsistency between this Act and the Muskwa-Kechika
Management Area Act, the Muskwa-Kechika
Management Area Act prevails.
Relationship
with aboriginal and treaty rights
84
For greater certainty, the provisions of this Act are intended to
respect aboriginal and treaty rights in a manner consistent with
section 35 of the Constitution Act, 1982.
Part
8 — Offences and Court Orders
Time limit
for commencing a prosecution
85
(1) The time limit for laying an information to commence a prosecution
for an offence under this Act is
(a) 3 years after the date on which
the act or omission that is alleged to constitute the offence occurred,
or
(b) if the commissioner issues a
certificate described in subsection (2), 3 years after the date on
which the commissioner learned of the act or omission referred to in
paragraph (a).
(2) A certificate purporting to have
been issued by the commissioner certifying the date referred to in
subsection (1) (b) is proof of that date.
Offences
86
(1) A person who contravenes section 21, 35 (1), 36 (1), 37 (1) or (2),
39 (3), 40, 61 or 81, or in relation to an order issued under section
49, section 82, commits an offence and is liable on conviction to a
fine not exceeding $1 500 000 or to imprisonment for
not more than 3 years, or to both.
(2) A person who contravenes section
35 (3) commits an offence and is liable on conviction to a fine not
exceeding $1 000 000 or to imprisonment for not more
than 2 years, or to both.
(3) A person who contravenes section
34, 38 (1) or 39 (1), or in relation to an order issued under section
53 (2) (a), section 82, commits an offence and is liable on conviction
to a fine not exceeding $500 000 or to imprisonment for not
more than one year, or to both.
(4) A person who contravenes section
35 (2) or 76 (1), or in relation to an order issued under a section not
referred to in subsections (1) to (3) of this section, section 82,
commits an offence and is liable on conviction to a fine not exceeding
$100 000.
(5) A person who contravenes section
37 (3) or 60 (1) or (2) commits an offence and is liable on conviction
to a fine not exceeding $25 000.
(6) The Lieutenant Governor in
Council may provide by regulation that
(a) a contravention of a regulation
is an offence, and
(b) a person convicted of an
offence for a contravention of a regulation is liable to a fine not
exceeding a maximum amount, or to imprisonment not exceeding a maximum
length, or to both.
(7) If the maximum fine or
imprisonment provided by a regulation under subsection (6) (b)
is less than that provided by a provision of this Act, the regulation
prevails.
(8) If a contravention continues for
more than one day, the offender is liable to a separate penalty,
without notice and without a separate count being laid, for each day
that the contravention occurs.
(9) In a prosecution for an offence
under this Act, it is sufficient proof of the offence to establish that
it was committed by the defendant's contractor, employee or agent.
(10) Subsection (9) applies even if
the contractor, employee or agent has not been identified or prosecuted
for the offence.
(11) If a corporation commits an
offence under this Act, a director or officer of the corporation who
authorized, permitted or acquiesced in the offence also commits the
offence.
(12) If a person commits an offence
under this Act, any other person who
(a) is directly or indirectly
responsible for the act or omission that constitutes the offence, and
(b) is a contractor, employee or
agent of the person or of an other person described in paragraph (a)
also commits the offence.
(13) Due diligence, mistake of fact
and officially induced error are defences to a prosecution under this
Act.
(14) If
(a) a corporation referred to in
subsection (11), or
(b) a person referred to in
subsection (12),
has not committed an offence under
this Act as a result of subsection (13), the other persons referred to
in subsections (11) and (12) may be found guilty of an offence, subject
to subsection (13).
(15) Section 5 of the Offence
Act does not apply to this Act or the regulations.
Remedies
preserved
87
(1) Subject to section 63 (3), a proceeding, conviction or penalty for
an offence under this Part does not relieve a person from any other
liability.
(2) If the commission imposes an
administrative penalty on a person, a prosecution for an offence under
this Act for the same contravention may not be brought against the
person.
Order for
compliance
88
(1) If the commission considers that a person is not complying, or has
not complied, with an order issued under this Act, the commission may
apply to the Supreme Court for either or both of the following:
(a) an order directing the person
to comply with the order or restraining the person from violating the
order;
(b) an order directing the
directors and officers of the person to cause the person to comply with
or to stop violating the order.
(2) On application by the commission
under this section, the Supreme Court may make an order it considers
appropriate.
Court order
to comply
89
If a person is convicted of an offence under this Act, then, in
addition to any punishment the court may impose, the court may order
the person to comply with the provision.
Restitution
90
If a person is convicted of an offence under this Act, then, in
addition to any other penalty, the court may order the person to pay
compensation or make restitution.
Court orders
91
If a person is convicted of an offence under this Act, then, in
addition to any other punishment that may be imposed, the court may, by
order, do one or more of the following:
(a) prohibit the person from doing
anything that may result in the continuation or repetition of the
offence;
(b) direct the person to take any
action the court considers appropriate to remedy or avoid any harm to
the environment or public safety that results or may result from the
act or omission that constituted the offence;
(c) direct the person to publish,
at the person's own cost, the facts relating to the conviction;
(d) direct the person to compensate
the commission for all or part of the cost of any remedial or
preventative action taken by or on behalf of the commission as a result
of the act or omission that constituted the offence;
(e) direct the person to pay court
costs;
(f) direct the person to pay the
costs of the investigation.
Penalty for
monetary benefit
92
(1) If the court convicts a person of an offence under this Act, the
court may increase a fine imposed on the person by an amount equal to
the court's estimation of the amount of the monetary benefit acquired
by or that accrued to the person as a result of the commission of the
offence.
(2) A fine increased under
subsection (1)
(a) applies despite any provision
that provides for a maximum fine, and
(b) is in addition to any other
fine under this Act.
Recovery of
debts due
93
An amount that a permit holder, producer or another person is required
under this Act to pay to the commission or the government is a debt due
by that permit holder, producer or person to the government or the
commission, as the case may be, and the debt may be recovered by the
government or the commission in any court of competent jurisdiction.
Part
9 — Regulations
Division
1 — Regulations of the Lieutenant Governor in Council
General
power to make regulations
94
(1) The Lieutenant Governor in Council may make regulations referred to
in section 41 of the Interpretation Act.
(2) In making a regulation under
this Act, the Lieutenant Governor in Council may do one or more of the
following:
(a) delegate a matter to a person;
(b) confer a discretion on a person;
(c) make different regulations for
different persons, places, things, decisions, transactions or
activities.
(3) The Lieutenant Governor in
Council may make a regulation defining a word or expression used but
not defined in this Act.
(4) Sections 95 to 105 do not limit
the authority of the Lieutenant Governor in Council to make regulations
under subsection (1) of this section.
Policies of
commission
95
The Lieutenant Governor in Council may make regulations respecting
policies and procedures to be followed by the commission in conducting
its affairs, exercising its powers and discretion, carrying out its
functions and duties and discharging its responsibilities.
Criteria for
exercise of discretionary powers
96
(1) The Lieutenant Governor in Council may make regulations respecting
the criteria that a person must use in exercising a discretionary power
conferred on the person under this Act.
(2) Criteria prescribed under
subsection (1) are in addition to any criteria required by this Act.
Prohibitions
97
The Lieutenant Governor in Council may make regulations as follows:
(a) prohibiting the carrying out of
any oil and gas activity or related activity at any point within a
specified distance of any boundary, roadway, road allowance, right of
way, building of any prescribed type or any specified works;
(b) despite anything in the Local
Government Act and the Community Charter,
prohibiting the construction of a building or structure within a
specified distance of a well, pipeline or facility, if the Lieutenant
Governor in Council is satisfied that the prohibition is necessary to
protect the public.
Exemptions
98
(1) The Lieutenant Governor in Council may make regulations respecting
the exemption of a person, class of persons, place, thing, transaction
or activity from a provision of this Act or the regulations.
(2) In making a regulation under
subsection (1), the Lieutenant Governor in Council may make the
exemption subject to conditions.
(3) The Lieutenant Governor in
Council may make regulations restricting the commission's authority
(a) to exempt a person or class of
persons from section 22 or from a requirement referred to in section
36, or
(b) to authorize an official to
exempt a person from a provision referred to in section 103 (2).
General
99
The Lieutenant Governor in Council may make regulations as follows:
(a) prescribing activities for the
purposes of the definition of "oil and gas activity" in section 1 (2);
(b) prescribing exclusions from the
definition of "pipeline" in section 1 (2);
(c) prescribing regulations under a
specified enactment for the purposes of paragraph (f) of the definition
of "specified provision" in section 1 (2);
(d) prescribing circumstances for
the purposes of section 6 (2);
(e) respecting the application of
the Public Inquiry Act for the purposes of
section 12;
(f) prescribing authorizations for
the purposes of section 18 (2) (c) (i);
(g) prescribing periods of time for
the purposes of section 32;
(h) respecting the disclosure of
records, reports and plans referred to in section 38;
(i) requiring that natural gas be
gathered, and processed if necessary, and that the natural gas or
liquid hydrocarbons extracted be marketed or injected into an
underground reservoir for storage or for any other purpose;
(j) prescribing actions for the
purposes of section 53;
(k) prescribing decisions for the
purposes of the definition of "determination" in section 69;
(l) prescribing activities and
methods for the purposes of section 75;
(m) prescribing works, activities
and distances for the purposes of section 76, and respecting how costs
incurred by a person to whom an approval is given under section 76 (1)
or a pipeline permit holder referred to in section 76 (5) are to be
allocated;
(n) respecting the application of
the Mines Act to the exploration, development and
production of oil sand, oil sand products, oil shale and oil shale
products.
Regulations
respecting orphan sites
100
(1) In this section, "tax" means the tax
under section 47.
(2) The Lieutenant Governor in
Council may make regulations for the purposes of Part 4 and,
without limiting this, may make regulations as follows:
(a) respecting administration of
the fund;
(b) respecting the designation of
orphan sites;
(c) prescribing the maximums,
conditions and limitations on compensation paid to land owners under
section 46;
(d) suspending the operation of the
tax;
(e) respecting the assessment and
reassessment of tax;
(f) respecting appeals from
assessment or reassessment of tax;
(g) respecting refunds of tax;
(h) providing for exemptions from
payment of tax;
(i) respecting time limits and time
periods related to the tax, including returns, assessments,
reassessments, appeals, refunds or exemptions, and including different
time limits and time periods for different classes of persons;
(j) establishing procedures for
giving notice of tax payable, collection of tax, and use of the fund;
(k) setting minimum amounts to be
retained in reserve in the fund;
(l) setting penalties for the
purposes of section 47 (8);
(m) designating an employee of the
government as the collector of the tax and providing for the collection
of the tax.
Administrative
penalties
101
The Lieutenant Governor in Council may make regulations respecting the
imposition of administrative penalties, including, without limiting
this,
(a) matters to be considered before
imposing administrative penalties, the criteria for determining
appropriate administrative penalties, setting different limits on
different administrative penalties and setting out those provisions of
this Act or the regulations which, if contravened, make a person liable
to an administrative penalty, and
(b) providing for increased
administrative penalties for repeated contraventions and specifying the
time within which a contravention is to be considered a repeat
contravention of an earlier contravention.
Collector
of levy
102
The Lieutenant Governor in Council may make regulations designating an
employee of the government as the collector of the levy referred to in
section 110 for payment under section 18 to the commission and
providing for its collection.
Environmental
protection and management
103
(1) For the purposes of environmental protection and management, the
Lieutenant Governor in Council may make regulations respecting actions
that a permit holder and a person carrying out an oil and gas activity
must take or refrain from taking to protect or effectively manage the
environment.
(2) Without limiting subsection (1),
the Lieutenant Governor in Council may make regulations respecting
actions that a permit holder and a person carrying out an oil and gas
activity must take or refrain from taking with respect to any of the
following:
(a) a wildlife habitat feature, as
identified under section 104 (1) (c) (i);
(b) wildlife, including fish, and
wildlife habitat;
(c) temperature sensitive streams,
as identified under section 104 (1) (c) (ii);
(d) streams, wetlands and lakes;
(e) riparian areas and lakeshores;
(f) lakeshore management zones;
(g) water quality;
(h) watersheds;
(i) aquifers and ground water
recharge areas;
(j) old-growth management areas, as
identified under section 104 (3) (a);
(k) wildlife trees;
(l) commercial timber;
(m) soils, including soil
stability, disturbance and productivity;
(n) surface drainage, ground
percolation and erosion control;
(o) biodiversity;
(p) invasive plants, as identified
under section 104 (3) (c);
(q) resource features;
(r) range;
(s) forest resources;
(t) cultural heritage resources;
(u) scenic features.
(3) The Lieutenant Governor in
Council may make regulations
(a) for the purposes of subsection
(2), classifying
(i) streams, wetlands and lakes,
(ii) riparian areas, and
(iii) wildlife habitat features,
scenic features and resource features,
(b) for the purposes of subsection
(2) and of section 104 (1) (a) (iv) and (2) (a),
classifying watersheds,
(c) for the purposes of subsection
(2) and of section 104 (2) (b) (i), classifying aquifers, and
(d) for the purposes of subsection
(2) and of section 104 (4), classifying lakeshore management zones.
Authorizations
respecting environmental protection and management
104
(1) The Lieutenant Governor in Council may make regulations authorizing
the minister responsible for administering the Wildlife Act
(a) to establish, for the purposes
of paragraph (b), one or more of the following:
(i) an area as an ungulate
winter range;
(ii) an area as a wildlife
habitat area;
(iii) categories of wildlife for
the purposes of subparagraphs (i) to (ii);
(iv) a fisheries sensitive
watershed, in accordance with regulations, if any, respecting the
classification of watersheds made under section 103 (3) (b),
(b) to establish, for the purposes
of section 36 (1), a measure in relation to paragraph (a) (i), (ii) or
(iv) of this subsection, and
(c) to identify one or both of the
following:
(i) for the purposes of section
103 (2) (a), a wildlife habitat feature, in accordance with
regulations, if any, respecting the classification of wildlife habitat
features made under section 103 (3) (a) (iii);
(ii) for the purposes of section
103 (2) (c), a temperature sensitive stream.
(2) The Lieutenant Governor in
Council may make regulations authorizing the minister responsible for
administering the Water Act
(a) to establish, for the purposes
of paragraph (c), a designated watershed or portion of a watershed, in
accordance with regulations, if any, respecting the classification of
watersheds made under section 103 (3) (b),
(b) to identify, for the purposes
of paragraph (c), either or both of the following:
(i) an aquifer, in accordance
with regulations, if any, respecting the classification of aquifers
made under section 103 (3) (c);
(ii) a groundwater recharge
area, and
(c) to establish, for the purposes
of section 36 (1), a measure in relation to paragraphs (a) and (b).
(3) The Lieutenant Governor in
Council may make regulations authorizing the minister responsible for
administering the Land Act
(a) to establish, for the purposes
of section 103 (2) (j) and paragraph (b) of this subsection, an
old-growth management area,
(b) to establish measures, for the
purposes of section 36 (1), in relation to paragraph (a), and
(c) to identify invasive plants for
the purposes of section 103 (2) (p).
(4) The Lieutenant Governor in
Council may make regulations authorizing the minister responsible for
administering the Forest and Range Practices Act
to establish, for the purposes of section 103 (2) (f) and (3) (d),
lakeshore management zones.
(5) The Lieutenant Governor in
Council may make regulations
(a) prescribing the circumstances
in which and the extent to which a discretion conferred in an
authorization referred to in subsections (1) to (4) or paragraph (b) of
this subsection may be exercised,
(b) authorizing a minister referred
to in subsections (1) to (4) to grant an exemption from a measure
established by that minister, and
(c) authorizing a minister referred
to in subsections (1) to (4) to delegate any power conferred on the
minister by a regulation made under this section.
Inconsistencies
105
(1) If there is an inconsistency between
(a) a requirement prescribed under
section 103, and
(b) a measure established under
section 104,
the measure referred to in paragraph
(b) prevails to the extent of the inconsistency.
(2) If there is an inconsistency
between
(a) either
(i) a requirement prescribed
under section 103, or
(ii) a measure established under
section 104, and
(b) a provision of an Act
administered by the minister responsible for the administration of the Wildlife
Act or the Water Act or a regulation
made under any of those Acts
the provision referred to in
paragraph (b) prevails to the extent of the inconsistency.
Division
2 — Regulations of the Board
Different
regulations permitted
106
(1) In making regulations under this Division, the board may
(a) make different regulations for
different persons, places, things, transactions or activities, and
(b) make the regulations subject to
orders issued under section 49, on any conditions the board considers
appropriate.
(2) In making a regulation under
section 111 or 112 (1) (b), (d) or (g), the board may authorize an
official to exempt a person from a provision of those regulations.
Consultations
and notification
107
(1) The board may make regulations respecting consultations and
notification for the purposes of sections 22, 31 (5) and 32
(3).
(2) Without limiting subsection (1),
the board may make regulations
(a) prescribing classes of
applicants for the purposes of section 22 (1),
(b) respecting the extent, nature
and manner of the consultations or notifications that may be required
under section 22, 31 (5) or 32 (3), including, without limiting this,
regulations respecting the provision of notice to specified persons or
classes of persons and the provision of replies to persons who respond
to a notice, and
(c) respecting reports to be
submitted under section 24 (1) (c), 31 (6) or 32 (4),
including, without limiting this, regulations respecting the
publication of those reports.
Permits
108
The board may make regulations as follows:
(a) respecting information for the
purposes of section 24 (1) (d) and records for the purposes of section
24 (1) (e);
(b) respecting requirements for the
purposes of section 25 (1).
Security
109
The board may make regulations respecting security for the purposes of
sections 23 and 30, including regulations as follows:
(a) prescribing the amount of the
security for the purposes of section 23 and the minimum or maximum
amount, or both, of security for the purposes of section 30;
(b) respecting the type of security
that is acceptable or unacceptable;
(c) respecting the form and content
of the security;
(d) respecting the time by which
the security must be submitted to the commission;
(e) respecting the circumstances
under which the security may be realized;
(f) respecting interest on the
security.
Recovery of
expenses
110
The board, for the purpose of recovering expenses arising out of the
administration of this Act in a fiscal year, may make regulations as
follows:
(a) requiring producers to pay a
levy to the government;
(b) subject to the approval of
Treasury Board, establishing the amount, or the method of determining
the amount, of the levy;
(c) providing for imposition of
penalties, payable to the government, to enforce payment of the levy.
Oil and gas
activities
111
(1) The board may make regulations as follows:
(a) if the commission is satisfied
that there is a danger to the public, increasing a specified distance
prescribed under section 97 (a), and, if a prohibition has not been
prescribed under that section with respect to any area of the province,
prescribing a prohibition for that area of the type referred to in that
section;
(b) respecting equipment and
techniques that must be used when carrying out an oil and gas activity;
(c) respecting waste produced
directly or indirectly by the carrying out of an oil and gas activity;
(d) respecting the carrying out of
geophysical exploration;
(e) respecting the drilling,
maintenance and operation of wells, including, without limiting this,
regulations respecting
(i) the measures to be taken and
the methods of operation to be used before drilling begins and during
drilling or operation,
(ii) the drilling of multizone
wells,
(iii) the conditioning and
reconditioning of wells by mechanical, chemical or explosive means,
(iv) water source wells, and
(v) spacing areas in which wells
are to be completed;
(f) respecting the exploration for
and development or use of storage reservoirs;
(g) respecting the exploration for
and development and production of oil sand, oil sand products, oil
shale and oil shale products;
(h) respecting the construction,
maintenance and operation of a pipeline, including, without limiting
this, regulations respecting measures to be taken
(i) to restore the land and
surface of land after construction or removal of a pipeline,
(ii) to monitor and maintain the
integrity of the pipeline and equipment, and
(iii) on suspension of operation
of a pipeline;
(i) designating a field by
describing its surface area;
(j) designating a pool by
describing the surface area vertically above the pool and by naming the
geological formation and the zone in which the pool occurs;
(k) determining whether a field or
pool described in paragraph (i) or (j) may be operated for the
production of petroleum, natural gas, or both;
(l) designating the area that is to
be allocated to a well in connection with fixing allowable production;
(m) controlling and regulating the
production of petroleum, natural gas and water by restriction,
proration or prohibition;
(n) requiring the disposal of water
produced into an underground formation or otherwise and authorizing the
commission to specify the terms according to which the disposal must be
done;
(o) respecting the management of
petroleum or natural gas fields, pools or zones.
(2) The board may make regulations
as follows:
(a) prescribing roads for the
purposes of paragraph (g) in the definition of "oil and gas activity"
in section 1 (2);
(b) respecting the construction,
maintenance and operation of prescribed roads;
(c) respecting the application of
the Motor Vehicle Act to prescribed roads.
General
112
(1) The board may make regulations as follows:
(a) adopting the provisions of a
publication or adopting them as they are amended from time to time, and
requiring permit holders, or a class of them, specified in the
regulation to comply with the adopted provisions;
(b) respecting the taking of
samples and the conducting of tests and analyses by permit holders;
(c) subject to the approval of
Treasury Board, respecting fees required to be paid under this Act;
(d) respecting the submission of
records, plans, reports and other information to the commission and the
maintenance of records and plans;
(e) prescribing the methods that
must be used for the measurement of petroleum, natural gas, substances
prescribed under section 133 (2) (v) of the Petroleum and
Natural Gas Act and mixtures of any of them;
(f) prescribing the standard
conditions to which the measurements referred to in paragraph (e) must
be converted;
(g) respecting the surveying of a
pipeline or a proposed route of a pipeline;
(h) prescribing requirements for
the purposes of sections 39 (4) and 40 (e);
(i) prescribing classes of persons
for the purposes of section 41;
(j) for the purposes of section 51,
respecting the restriction or prohibition of access to a public area;
(k) prescribing information for the
purposes of section 77;
(l) prescribing methods of service
and times of deemed receipt for the purposes of section 79.
(2) For greater certainty,
regulations made under subsection (1) (c) or
section 110 (b) with the approval of Treasury Board
may be made or adjusted at any time.
Part
10 — Transition
Implementation
regulations
113
(1) The Lieutenant Governor in Council may make regulations considered
appropriate for the purpose of more effectively bringing into operation
this Act, and to remedy any transitional difficulties encountered in
doing so and for that purpose disapplying or varying any provision of
this Act.
(2) A regulation made under this
section may be made retroactive to a date not earlier than the coming
into force of this section.
(3) Subject to subsection (4), this
section is repealed on the date that is 2 years after the coming into
force of this section and on its repeal any regulations made under it
are also repealed.
(4) The Lieutenant Governor in
Council by regulation may substitute a date that is no later than 3
years after the coming into force of this section for the date referred
to in subsection (3).
Transition
— appeal tribunal
114
The Lieutenant Governor in Council, when appointing the first appeal
tribunal, may appoint to the appeal tribunal, without a merit-based
process, a person who, at the time of the appointment, is
(a) a member of the Environmental
Appeal Board continued under the Environmental Management Act,
or
(b) a member of the Forest Appeals
Commission continued under the Forest Practices Code of
British Columbia Act.
Transition
— Oil and Gas Commission Act
115
(1) In this section, "former Act" means
the Oil and Gas Commission Act, S.B.C. 1998, c.
39, as it read immediately before being repealed.
(2) A designation made under section
6.2 (5) (a) of the former Act and in effect immediately before the
repeal of the former Act is deemed to be a designation made under
section 45 (2) of this Act.
Transition
— Petroleum and Natural Gas Act
116
(1) In this section, "former Act" means
the Petroleum and Natural Gas Act, R.S.B.C. 1996,
c. 361, as it read immediately before this section comes into force.
(2) The following approval and
authorizations are each deemed to be a permit issued under this Act if
the authorization or approval is in effect immediately before the
coming into force of this section:
(a) an approval issued under
section 33 of the former Act;
(b) a well authorization issued
under Division 1 of Part 12 of the former Act;
(c) a water source well
authorization issued under Division 2.1 of Part 12 of the former Act;
(d) an authorization to construct
or modify a production facility issued by the commission under the
Drilling and Production Regulation, B.C. Reg. 362/98, as it
read immediately before this section comes into force.
(3) Despite the repeal of Part 4 of
the former Act, that Part continues to apply to a geophysical licence
issued under section 32 of the former Act and in effect immediately
before this section comes into force, until whichever of the following
happens first:
(a) the geophysical licence is
cancelled under section 35 of the former Act;
(b) a permit is issued under this
Act to the holder of the geophysical licence, permitting the holder to
carry out geophysical exploration;
(c) 2 years expire after the date
Part 4 of the former Act is repealed.
(4) Despite the repeal of Part 12 of
the former Act, that Part continues to apply to a test hole
authorization issued under Division 2 of that Part until whichever of
the following happens first:
(a) the test hole authorization is
cancelled under Division 2 of Part 12;
(b) a permit is issued under this
Act to the holder of the test hole authorization, permitting the holder
to convert the test hole into a well;
(c) 2 years expire after the date
Part 12 of the former Act is repealed.
(5) A drilling deposit submitted
under section 85 of the former Act is deemed to be security submitted
for the purposes of section 30 of this Act.
(6) An approval issued under section
100 of the former Act and in effect immediately before this section
comes into force is deemed to be a designation under
section 75 of this Act.
Transition
— Pipeline Act
117
(1) In this section, "former Act" means
the Pipeline Act, R.S.B.C. 1996, c. 364, as it
read immediately before its repeal.
(2) Each of the following is deemed
to be a pipeline permit issued under this Act:
(a) a certificate issued under
section 10 of the former Act and in effect immediately before the
repeal of the former Act;
(b) an authorization issued under
section 22 of the former Act and in effect immediately before the
repeal of the former Act;
(c) an authorization issued under
section 27 of the former Act and in effect immediately before the
repeal of the former Act.
(3) A leave given under section 28
of the former Act and in effect immediately before the repeal of the
former Act is deemed to be an approval issued under section 76 of this
Act.
(4) A leave, in relation to a
pipeline, given under section 30 of the former Act and in effect
immediately before the repeal of the former Act is deemed to be a
permission in the pipeline permit for the pipeline.
(5) A leave given under section 31
of the former Act and in effect immediately before the repeal of the
former Act is deemed to be an approval under section 76 of this Act.
(6) Despite the repeal of Part 7 of
the former Act, any decision made with respect to a common carrier by
the British Columbia Utilities Commission under the authority of that
Part continues to apply, subject to section 65 of the Utilities
Commission Act as amended by this enactment.
Transition
— permits
118
The commission may consolidate into a single permit any or all permits
held by a permit holder by operation of sections 116 and 117.
Part
11 — Consequential Amendments and Repeals
Environmental Management Act
119
Section 1 (1) of the Environmental Management Act, S.B.C. 2003, c. 53,
is amended in the definition of "officer" by
adding ", a government corporation"
after "by the government".
120 Section
39 (1) is amended in the definition of "commission"
by striking out "Petroleum and
Natural Gas Act" and substituting "Oil
and Gas Activities Act".
121 Section
40 (3) is repealed and the following substituted:
(3) Subject to the regulations, a
permit holder under the Oil and Gas Activities Act
must provide a site profile to the commission if the permit holder
applies for a certificate of restoration respecting an oil and gas
activity in accordance with section 41 of that Act.
122 Section
48 (3) (e) is amended by striking out "section
84 of the Petroleum and Natural Gas Act;"
and substituting "section 41 of the Oil
and Gas Activities Act;".
Environmental Management
Amendment Act, 2004
123 Section
23 of the Environmental Management Amendment Act, 2004, S.B.C. 2004,
c. 18, is repealed.
Expropriation Act
124 Section
2 (3) of the Expropriation Act, R.S.B.C. 1996, c. 125, is amended by
striking out "the Petroleum and
Natural Gas Act, the Pipeline Act"
and substituting "the Oil and Gas
Activities Act".
Forest Act
125 Section
47.4 (2) (b) (i) of the Forest Act, R.S.B.C. 1996, c. 157, is amended
(a) by
repealing clauses (A) and (B) and substituting the following:
(A) an oil and gas activity under
the Oil and Gas Activities Act; , and
(b) in
clause (C) by striking out "activities
referred to in clause (A) or (B)," and
substituting "an activity referred to in
clause (A),".
Forest and Range Practices Act
126 Section
1 (1) of the Forest and Range Practices Act, S.B.C. 2002, c. 69, is
amended in paragraph (c) of the definition of "official"
by striking out "minister responsible for the
Oil and Gas Commission Act"
and substituting "commissioner under the Oil
and Gas Activities Act".
127 Section
58 (1) (a) is amended by striking out ", the Petroleum
and Natural Gas Act or the Pipeline Act,"
and substituting "or the Oil and
Gas Activities Act,".
128 Section
204 (3) is amended by striking out "Code and
the Code regulations" and substituting "Oil
and Gas Activities Act and the regulations under that Act".
Forest and Range Practices
Amendment Act, 2003
129 Section
106 of the Forest and Range Practices Amendment Act, 2003, S.B.C. 2003,
c. 55, is repealed.
Forests Statutes Amendment
Act, 2000
130 Section
54 of the Forests Statutes Amendment Act, 2000, S.B.C. 2000, c. 6, is
repealed.
Geothermal Resources Act
131 Section
1 (1) of the Geothermal Resources Act, R.S.B.C. 1996, c. 171, is amended
(a) by
adding the following definitions:
"board"
means the board of the commission continued under section 2 of the Oil
and Gas Activities Act;
"commission"
means the Oil and Gas Commission continued under section 2 of the Oil
and Gas Activities Act; ,
(b) in
the definition of "commissioner" by striking out "Petroleum
and Natural Gas Act," and
substituting "Oil and Gas
Activities Act;",
(c) by
adding the following definition:
"facility"
means any surface equipment required to produce geothermal resources or
to inject water or other fluids produced in connection with a
geothermal resource into subsurface strata, but does not include
(a) a pipeline as defined in the Oil
and Gas Activities Act, or
(b) equipment used in connection
with the conversion of the geothermal resource into a commercial
commodity; ,
(d) in
the definition of "field" by striking out "division
head" and substituting "minister",
(e) in
paragraph (b) of the definition of "geothermal exploration"
by striking out "or test hole drilling",
(f) in
paragraph (c) of the definition of "geothermal exploration"
by striking out "division head;"
and substituting "commission;",
(g) by
repealing the definition of "geothermal rig licence",
(h) in
the definition of "lessee" by striking out "division"
and substituting "ministry",
(i) in
the definition of "permittee" by striking out "division"
and substituting "ministry",
(j) by
repealing the definition of "test hole", and
(k) by
repealing the definition of "well" and
substituting the following:
"well"
means a hole in the ground
(a) made or being made by drilling,
boring or any other method for the purpose of producing a geothermal
resource or through which a geothermal resource is or can be produced,
(b) used, drilled or being drilled
for the purpose of injecting any substance into subsurface strata to
assist the production of a geothermal resource, or to dispose of water
produced in connection with the production of a geothermal resource, or
(c) used, drilled or being drilled
for the purpose of obtaining information about a geothermal resource.
132 Section
1 (3) is repealed.
133 Section
4 is amended
(a) in
subsection (1) (b) by striking out "minister"
and substituting "commission",
(b) by
repealing subsections (3) and (5),
(c) by
repealing subsection (4) and substituting the following:
(4) A person may not drill or
operate a well unless the commission has issued to the person a well
authorization for the well. , and
(d) in
subsection (6) by striking out "or test hole
drilling" and by striking out "commissioner"
and substituting "commission".
134
Sections 5 (8), 7 (2) and 9 (1) and (3) are amended by striking out "commissioner"
and substituting "minister".
135 Section
12 is amended
(a) in
subsection (1) by striking out "division head
or a person authorized by the division head in writing to do so"
and substituting "commission"
and by striking out "test hole program
authorization, well authorization or geothermal rig licence."
and substituting "well authorization.",
(b) by
repealing subsection (2),
(c) in
subsection (3) by striking out "test hole
program authorization or",
(d) in
subsection (4) by striking out "minister"
and substituting "commission"
and by striking out "or test hole",
(e) in
subsection (5) by striking out "or a test
hole program authorization", and
(f) in
subsection (6) by striking out "test hole or"
and by striking out "an officer of the
division" and substituting "the
commission".
136 Section
14 is amended
(a) in
subsection (1) by striking out "division head"
and substituting "commission or the minister",
(b) in
subsection (2) by striking out "in the
division" and substituting "by
the commission" and by striking out "division
head" and substituting "commission",
and
(c) by
repealing subsection (3) and substituting the following:
(3) A person authorized to exercise
any of the powers in subsection (1) or (2) must produce on demand his
or her identification card issued by the commission or authorization
issued by the ministry.
137 Section
15 is amended by striking out "commissioner."
and substituting "commission."
138 Section
16 is amended
(a) in
subsections (1) and (2) (a) by striking out "test
holes,",
(b) in
subsections (2) and (3) by striking out "an
officer of the division" and substituting "the
commission",
(c) by
repealing subsection (4) and substituting the following:
(4) If, after inspection of a
location or well, the commission considers that a method or practice
being employed in connection with the location or well constitutes or
may constitute a hazard to the health or safety of any person, or of
the public, the commission may give notice of it in writing to
(a) the permittee or lessee of the
location,
(b) the holder of a well
authorization, or
(c) the agent or representative of
a person referred to in paragraph (a) or (b),
setting out the remedial measures the
commission requires be taken. , and
(d) by
repealing subsection (5) and substituting the following:
(5) If the commission considers that
delay in implementation of the remedial measures would constitute a
danger to any person or to the public, the commission may, in the same
notice or subsequently, order in writing that
(a) the method or practice be
discontinued, or
(b) all operations in the location
or in connection with the well cease
until the matter is remedied to the
commission's satisfaction.
139 The
following sections are added to Part 6:
Appropriation
19.1
(1) In this section, "revenue" includes
interest but does not include penalties.
(2) The Minister of Finance, out of
the consolidated revenue fund, must pay to the commission the gross
revenue received from fees in relation to applications for and issuance
of approvals and other authorizations issued by the commission.
Delegation
19.2
(1) The commissioner may delegate the exercise of any power or
performance of any duty conferred or imposed on the commission under
this Act, other than a power expressly given to the board under this
Act, to an employee or official of the commission or another public
officer.
(2) A delegation under subsection
(1) may be made by name or by designation of the office.
140 Section
20 is amended
(a) in
subsection (2) by striking out "If the
ministry receives" and substituting "If
the ministry or commission receives", and
(b) by
adding the following subsection:
(3) The ministry and the commission
may disclose reports, records or data to the public in accordance with
the regulations.
141 Section
22 is amended by adding the following subsection:
(2.1) If a contravention of a
section referred to in subsection (1) continues for more than one day,
the offender is liable to a separate penalty, without notice and
without a separate count being laid, for each day that the
contravention occurs.
142 Section
23 is repealed and the following substituted:
Regulations and orders made by board
23
(1) The board may make regulations of general application, or may make
an order related to a specific location or well, governing the drilling
of wells and the production and conservation of geothermal resources,
including regulations and orders for the following purposes and
respecting the following matters:
(a) prohibiting the drilling of a
well at any place within a prescribed distance of any boundary,
roadway, road allowance, right of way, building of any specified type
or any specified work;
(b) requiring the holder of a well
authorization to submit an application and obtain the approval of the
commission before
(i) deepening a well beyond the
formation from which production is being taken or has been taken,
(ii) recompletion of a well by
perforating any casing with a view to producing a geothermal resource
from any formation other than that from which production is being taken
or has been taken,
(iii) suspending drilling,
(iv) ceasing normal producing
operations,
(v) resuming drilling after a
previous completion, suspension or abandonment of a well,
(vi) resuming production after
production stops,
(vii) reworking a well to alter
its producing characteristics, or
(viii) abandoning a well;
(c) prescribing the conditions
under which drilling may be carried out in water covered areas, and any
special measures to be taken;
(d) prescribing the measures to be
adopted to confine geothermal resources water encountered during
drilling to its original stratum, and to protect the contents of the
stratum from infiltration, inundation and migration;
(e) prescribing the minimum
standard of tools, casing, equipment and materials that may be used for
drilling, development and production of geothermal resources;
(f) to regulate the drilling of
multizone wells, prohibit completion of a well as a multizone well
without the permission of the commission, prohibit the use of a well
for the production from or injection to more than one zone without the
approval of the commission and authorize the commission to grant
permission or approval subject to conditions the commission considers
necessary;
(g) prescribing measures for the
protection of petroleum and natural gas deposits, coal seams, mineral
deposits and any workings in them;
(h) requiring the provision of
adequate well casing and proper anchorage and cementation;
(i) requiring and prescribing
samples, tests, analyses, surveys, logs, records, other information
respecting a geothermal resource or operation, the method of taking
samples and submission of records and information to the commission;
(j) prescribing the measures to be
taken before drilling begins and during drilling and production to
conserve geothermal resources and water;
(k) prescribing or limiting the
methods of operation to be used during drilling and in the subsequent
management of a well and the conduct of an operation for any purpose,
including
(i) the prevention and
extinguishing of fires, and
(ii) the prevention of wells
flowing out of control;
(l) regulating the location and
equipping of production facilities;
(m) regulating the conditioning or
reconditioning of wells by mechanical, chemical or explosive means;
(n) requiring the inspection of
wells both during and after drilling;
(o) requiring the capping or
closing in of wells for the purpose of preventing waste;
(p) requiring the cleaning out of a
well;
(q) regulating and prohibiting the
release of well records and well data;
(r) the naming of wells and
production facilities;
(s) measures to contain and
eliminate spillage;
(t) regulating production from a
geothermal well;
(u) the general conservation of
geothermal resources, their waste or improvident disposition, and any
matter incidental to the development, drilling, operation and
production of geothermal resources;
(v) the methods and units to be
used for the measurement of geothermal resources, and the standard
conditions to which the measurements are to be converted;
(w) the revocation and suspension
of well authorizations;
(x) the imposition and form of
security required for the development, drilling or operation of or
production from a well, and the amount or method of calculation of that
security;
(y) subject to the approval of
Treasury Board, respecting fees;
(z) conditions that may be imposed
on well authorizations, including conditions respecting their expiry.
(2) A regulation or order made under
subsection (1) may provide that the commission may, by order,
in relation to a particular location or well and subject to conditions
the commission specifies, exempt a person from the application of all
or part of the regulation or order.
143 Section
24 (2) is amended
(a) by
repealing paragraphs (a) and (b) and substituting the following:
(a) establishing the conditions
under which persons are eligible to apply for the issue and renewal of
permits, leases, registrations, recordings and other rights, privileges
and services under this Act, and the procedures to be followed and the
fees to be paid by them;
(b) the revocation and suspension
of permits and leases by the minister in circumstances specified in the
regulations, and the powers to be exercisable by the minister for those
purposes; ,
(b) in
paragraph (c) by striking out "section 36 of
the Petroleum and Natural Gas Act"
and substituting "the Oil and Gas
Activities Act",
(c) by
repealing paragraph (e) and substituting the following:
(e) establishing the conditions
under which permits and leases may be transferred; ,
(d) by
repealing paragraph (h), and
(e) by
adding the following paragraphs:
(p) the application, with or
without modification, of regulations made under section 103 or 104 of
the Oil and Gas Activities Act to a permittee or
lessee;
(q) the unitization of a field for
the purposes of drilling for or producing a geothermal resource;
(r) the disclosure of records,
reports and data required to be kept under this Act.
Land Surveyors Act
144 Section
75 (1) (g) of the Land Surveyors Act, R.S.B.C. 1996, c. 248, is
repealed and the following substituted:
(g) section 112 (1) (g) of the Oil
and Gas Activities Act; .
Land Title Act
145 Section
99 (1) (j) of the Land Title Act, R.S.B.C. 1996, c. 250, is amended by
striking out "Petroleum and Natural
Gas Act;" and substituting "Oil
and Gas Activities Act;".
146 Section
218 (1) (c) is amended by striking out "corporation
authorized to transport oil or gas, or both oil and gas, or solids, as
defined in the Pipeline Act,"
and substituting "pipeline permit holder as
defined in section 1 (2) of the Oil and Gas Activities Act,".
Mineral Land Tax Act
147 Section
13 (9) (c) of the Mineral Land Tax Act, R.S.B.C. 1996, c. 290, is
amended by striking out "an exploration permit"
and substituting "a permit, drilling licence
or lease".
Mines Act
148 Section
16 of the Mines Act, R.S.B.C. 1996, c. 293, is amended by striking out "the
Pipeline Act" and
substituting "section 1 (2) of the Oil
and Gas Activities Act".
Muskwa-Kechika Management
Area Act
149 Section
8 (2) of the Muskwa-Kechika Management Area Act, S.B.C. 1998, c. 38, is
amended by striking out "Part 4 of the Petroleum
and Natural Gas Act." and
substituting "the Oil and Gas
Activities Act."
Oil and Gas Commission Act
150 The Oil
and Gas Commission Act, S.B.C. 1998, c. 39, is repealed.
Park Act
151 Section
33 of the Park Act, R.S.B.C. 1996, c. 344, is amended
(a) in
subsection (1) by striking out "an
authorization," and substituting "a"
and by adding "or a permit under the Oil
and Gas Activities Act" after "Petroleum
and Natural Gas Act",
(b) in
subsection (2) by striking out "an
authorization," and substituting "a"
and by striking out "development or production"
and substituting "development, production or
other",
(c) in
subsection (3) by striking out "An
authorization," and substituting "A"
and by striking out "proposed authorization,"
and substituting "proposed",
(d) in
subsection (4) by striking out "an
authorization," and substituting "a"
and by striking out "the authorization,"
and substituting "the",
(e) in
subsection (5) by striking out "an
authorization," and substituting "a",
and
(f) in
subsection (5) (c) by striking out "authorization,"
and by adding "or the Oil and Gas
Activities Act" after "the
Petroleum or Natural Gas Act".
Petroleum and Natural Gas Act
152 Section
1 of the Petroleum and Natural Gas Act, R.S.B.C. 1996, c. 361, is
amended
(a) by
repealing the definitions of "certificate of restoration",
"commission" and "commissioner"
and substituting the following:
"certificate of
restoration" means a certificate of restoration issued
by the commission under section 41 of the Oil and Gas
Activities Act;
"commission"
means the commission continued under section 2 of the Oil
and Gas Activities Act;
"commissioner"
means the commissioner appointed under section 2 of the Oil
and Gas Activities Act; ,
(b) by
repealing the definition of "licence" and
substituting the following:
"licence"
means, in accordance with the context, any of the following obtained
under this Act:
(a) a drilling or geophysical
licence;
(b) a licence to develop or use a
storage reservoir;
(c) a licence to explore for a
storage reservoir; ,
(c) by
repealing the definition of "licence" and
substituting the following:
"licence"
means, in accordance with the context, a drilling licence or a licence
to explore for a storage reservoir under this Act; ,
(d) by
repealing the definition of "multizone well",
(e) by
adding the following definitions:
"oil and gas activity"
has the same meaning as in the Oil and Gas Activities Act;
"related activity"
has the same meaning as in the Oil and Gas Activities Act; ,
(f) by
repealing the definition of "spacing area" and
substituting the following:
"spacing area"
means an area of the land surface or subsurface as prescribed by
regulation; ,
(g) in
the definition of "storage reservoir" by striking
out "storage and recovery"
and substituting "disposal, storage or
recovery" and by striking out "petroleum
or natural gas;" and substituting "petroleum,
natural gas, water produced in relation to the production of petroleum
or natural gas, waste or any other prescribed substance;",
(h) by
adding the following definition:
"storage well"
means a well in which casing is run and that, in the opinion of the
commission, is used or is capable of being used to dispose of or
produce petroleum or natural gas, water produced in relation to the
production of petroleum or natural gas, waste or any other prescribed
substance into or from a storage reservoir; ,
(i) in
the definition of "test hole" by adding "a
storage reservoir or" after "about",
(j) by
repealing the definition of "test hole",
(k) by
repealing the definition of "unitized operation"
and substituting the following:
"unitized operation"
means
(a) the development or production
of petroleum and natural gas, the implementation of a program for the
conservation of petroleum and natural gas, or the coordinated
management of interests in them, or
(b) the development and operation
of a storage reservoir
in, on or under a location,
part of a location or a number of locations combined for that purpose
under a unitization agreement under this Act; ,
(l) by
repealing the definition of "well" and
substituting the following:
"well"
means a hole in the ground
(a) made or being made by drilling,
boring or any other method to obtain petroleum or natural gas,
(b) made or being made by drilling,
boring or any other method to explore for, develop or use a storage
reservoir for the storage or disposal of petroleum, natural gas, water
produced in relation to the production of petroleum or natural gas,
waste or any other prescribed substance,
(c) used, drilled or being drilled
to inject natural gas, water produced in relation to the production of
petroleum or natural gas or other substances into an underground
formation in connection with the production of petroleum or natural
gas,
(d) used to dispose of petroleum,
natural gas, water produced in relation to the production of petroleum
or natural gas, waste or any other prescribed substance into a storage
reservoir, or
(e) used, drilled or being drilled
to obtain geological or geophysical information respecting petroleum or
natural gas,
and includes a water source
well; , and
(m) in
the definition of "zone" by striking out
everything after "for the purposes of"
and substituting "the administration of
petroleum and natural gas rights or storage and disposal rights."
153 Section
4 is amended
(a) in
subsection (1) by striking out "or an
employee of the commission authorized by it",
and
(b) in
subsection (2) by striking out "or of the
commission".
154 Section
7 is repealed and the following substituted:
Entry on Crown land
7
(1) Subject to subsection (2) and section 9, on submission by an
operator of plans or information required by the commission, the
commission may authorize, subject to any terms the commission considers
appropriate, the operator to enter, occupy or use Crown land to carry
out an oil and gas activity in accordance with the Oil and
Gas Activities Act.
(2) The Lieutenant Governor in
Council may make regulations respecting the criteria the commission
must use in exercising its discretion under subsection (1).
155 Section
9 is amended
(a) in
subsections (1) and (2) by striking out "to
explore for, develop or produce petroleum or natural gas or explore
for, develop or use a storage reservoir" and
substituting "to carry out an oil and gas
activity in accordance with the Oil and Gas Activities Act",
and
(b) in
subsection (3) by striking out "required"
and substituting "issued under the Oil
and Gas Activities Act".
156
Sections 10 and 11 (2) are amended by striking out "to
explore for, develop or produce petroleum or natural gas or explore
for, develop or use a storage reservoir" and
substituting "to carry out an oil and gas
activity in accordance with the Oil and Gas Activities Act".
157 Section
16 is amended
(a) in
subsection (1) (a) by striking out "to
explore for, develop or produce petroleum or natural gas or explore
for, develop or use a storage reservoir or for a connected or
incidental purpose" and substituting "to
carry out an oil and gas activity or a related activity in accordance
with the Oil and Gas Activities Act",
and
(b) in
subsection (1) (b) by striking out "entry or
occupation" and substituting "entry,
occupation or use".
158 Section
18 (3) is amended by adding "to carry out an
oil and gas activity in accordance with the Oil and Gas
Activities Act" after "to
enter, occupy or use the land".
159 Section
25 (1) is amended by adding ", to the
commission" after "to
the applicant".
160 Part 4
is repealed.
161 Section
38 is repealed and the following substituted:
Rights conferred by permit
38
(1) Subject to subsection (2), the holder of a permit has the exclusive
right to apply under the Oil and Gas Activities Act
to do exploratory drilling for petroleum, natural gas or both on land
owned by the government and within the boundaries of the location of
the permit.
(2) The issue or existence of a
permit does not prohibit a person other than the holder of the permit
from carrying out geological work or geophysical exploration in
accordance with the Oil and Gas Activities Act.
162 Section
43 (1) is amended by adding "subject to the Oil
and Gas Activities Act," after "cause
to be done,".
163 Section
50 (2) is repealed and the following substituted:
(2) The holder of a petroleum and
natural gas lease has
(a) the exclusive right to produce,
in accordance with this Act, both the petroleum and natural gas from
the location of the lease, and
(b) subject to any rights conferred
under a storage lease issued under section 130 before the
lease under this section is issued, the right to store or dispose of
natural gas, water produced in relation to the production of petroleum
or natural gas or other substances associated with petroleum or natural
gas exploration, production or processing into an underground formation
in the location of the lease.
164 Section
50 (2) (a) is amended by adding "and the Oil
and Gas Activities Act" after "this
Act".
165 Section
53 is amended
(a) in
subsection (1) by adding "and the Oil
and Gas Activities Act" after "complied
with this Act", and
(b) in
subsection (3) by adding "or to the
commission for any reason under the Oil and Gas Activities
Act" after "petroleum
or natural gas".
166 Section
58 (1) (b) is repealed and the following substituted:
(b) is subject to a special project
designated under section 75 of the Oil and Gas Activities Act, .
167 Section
60 is amended
(a) in
subsection (2) by adding ", subject to the Oil
and Gas Activities Act," after "requiring
the holder",
(b) in
subsection (5) by adding "in
accordance with the Oil and Gas Activities Act"
after "abandoned or completed",
and
(c) in
subsection (5) by adding "in accordance with
the Oil and Gas Activities Act"
after "on the lease location".
168 Section
61.1 (1) is amended in the definition of "eligible spacing
area" by striking out "a scheme
approved under section 100" and substituting "a
special project under section 75 of the Oil and Gas
Activities Act".
169 Section
65 (1) is amended
(a) by
adding "and the Oil and Gas
Activities Act" after "For
the purposes of this Act",
(b) by
repealing paragraph (a) and substituting the following:
(a) the boundaries of a unit, and
the vertical planes extending directly beneath each of those
boundaries, are the boundaries of a normal spacing area for petroleum
wells; , and
(c) by
repealing paragraph (c) (i) and substituting the following:
(i) the boundary of an area
comprising 2 units by 2 units, and the vertical planes extending
directly beneath each of the boundaries of that area, are the
boundaries of a normal spacing area for a natural gas well,
and .
170 Section
65.1 is amended
(a) by
repealing subsections (1) and (2) substituting the following:
(1) The minister may make
regulations respecting other than normal spacing in an area of British
Columbia if the minister is satisfied that the regulations
(a) would facilitate petroleum or
natural gas exploration and development,
(b) are necessary to promote the
conservation of petroleum and natural gas resources, or
(c) are necessary to protect the
environment.
(2) The commission, by order, may on
its own initiative or on application under section 75 (3) of the Oil
and Gas Activities Act approve other than normal spacing for
a pool or portion of a pool on a parcel of land or a location if
(a) the commission is satisfied
that it would facilitate drilling and production operations, and
(b) the parcel of land or location,
as the case may be, is not subject to a regulation made under
subsection (1). ,
(b) in
subsection (3) by striking out "or order
under subsection (1) or (2)" and substituting "under
subsection (1) or an order under subsection (2)",
and
(c) by
repealing subsection (4).
171 Section
67 is amended
(a) in
subsection (1) by striking out "the
commission may issue a well authorization for the drilling of a natural
gas well on it, but", and
(b) by
repealing subsection (2).
172 Section
68 (3) (b) is amended by adding ", subject to
the Oil and Gas Activities Act,"
after "order".
173 Section
78 is amended by striking out everything after "conservation
plan" and substituting "or
a special project under section 75 of the Oil and Gas
Activities Act."
174 Section
85 (c) is repealed and the following substituted:
(c) the applicant is entitled
(i) to drill the well for which
the authorization is requested,
(ii) to drill for and produce
petroleum or natural gas, or both, or
(iii) to drill for and operate a
storage reservoir,
as one of the following:
(iv) the holder of the location
of a permit, drilling licence or lease under section 50 on which the
well is to be drilled, or by agreement with the holder, if the
application relates to land in which the petroleum and natural gas
rights are held by the government;
(v) the holder of the location
of a storage reservoir lease under section 130 on which the
well is to be drilled, or by agreement with the holder of the location;
(vi) the owner of the petroleum
and natural gas rights, or by agreement with the owner, if the
application relates to land in which the petroleum and natural gas
rights are not held by the government; .
175 Section
86 (e) is amended by striking out "or"
at the end of subparagraph (i) and by adding the following subparagraph:
(i.1) as the holder of the
location of a storage reservoir lease under section 130 on which the
well is to be drilled, or by agreement with the holder of the location,
or .
176 Section
88 is amended by striking out "drills a well
or produces petroleum or natural gas from a well"
and substituting "drills a well, produces
petroleum or natural gas from a well or operates a storage well".
177 Section
96 (1) (g) is amended by striking out everything after "for
injecting or disposing of" and substituting "petroleum,
natural gas, water produced in relation to the production of petroleum
or natural gas, waste or any other prescribed substance into a storage
reservoir;".
178 Section
101 is amended by striking out "petroleum or
natural gas" and substituting "petroleum,
natural gas, water produced in relation to the production of petroleum
or natural gas or other substances".
179 Section
102 is amended
(a) in
subsection (1) by striking out "no production
is to be permitted from" and substituting "no
production or disposal is to be permitted from or into",
and
(b) in
subsection (3) by striking out "or production
operation" and substituting ",
production, storage or disposal operation".
180 Section
103 is amended
(a) in
subsection (1) by striking out "natural gas
and water" and substituting "natural
gas, water produced in relation to the production of petroleum or
natural gas and other substances", and
(b) in
subsection (2) by striking out "natural gas
or water" and substituting "natural
gas, water produced in relation to the production of petroleum or
natural gas or other substances".
181 Section
104 (1) is amended by adding the following paragraph:
(b.1) are entitled to enter on and
inspect any well or place at which substances are collected, processed,
handled or treated for purposes of storage in or disposal into a
storage reservoir, .
182 Part 12
is repealed.
183 Section
110 is amended by adding "and the Oil
and Gas Activities Act" after "under
this Act".
184 Section
111 is amended by adding ", subject to the Oil
and Gas Activities Act," after "may
produce".
185 Section
114 (1) is amended by striking out "a field
or pool or a part of it" and substituting "a
field, pool or storage reservoir, or a part of any of them".
186 Section
114 (1) is amended by striking out "subject
to compliance with section 100" and
substituting "subject to compliance with any
applicable requirements under section 75 of the Oil and Gas
Activities Act".
187 Section
116 is repealed.
188 Section
118 (a) is repealed and the following substituted:
(a) this Act, the regulations under
this Act, the Oil and Gas Activities Act or the
regulations under that Act, .
189 Section
119 (1) is amended by striking out "claims
under this Act" and substituting "requirements
under this Act and under the Oil and Gas Activities Act".
190 Section
121 (1) is amended by adding "or a storage
reservoir is being operated" after "natural
gas has been discovered".
191 Section
122 (1) is amended by adding "or a storage
reservoir lease" after "natural
gas title".
192 Section
123 is repealed.
193 Section
126 is amended
(a) by
repealing subsection (1) and substituting the following:
(1) A person must not explore for a
storage reservoir unless
(a) either
(i) the person is licensed by
the division head under subsection (3), or
(ii) the exploration consists
only of geophysical exploration, and
(b) the exploration is carried out
in accordance with the Oil and Gas Activities Act. , and
(b) in
subsection (4) by striking out everything after "storage
reservoir" and substituting "unless
the commission authorizes that exploration under the Oil and
Gas Activities Act."
194
Sections 131 and 132 (b) and (c) are repealed.
195 Section
133 is amended
(a) by
repealing subsection (2) (f) and (g),
(b) in
subsection (2) (i) by adding "who operate a
storage reservoir or" after "requiring
a person or a class of persons",
(c) by
repealing subsection (2) (p) (ii) and (q),
(d) by
repealing subsection (2) (s) and substituting the following:
(s) make regulations for the
unitization of a pool, field or reservoir for drilling, producing,
storing or disposing; ,
(e) in
subjection (2) (t) by striking out "drilling
or other",
(f) in
subsection (2) by adding the following paragraph:
(v) prescribing substances for the
purposes of the definitions of "storage reservoir" and "storage well"
in section 1, including water required for the storage, recovery or
disposal of another prescribed substance. , and
(g) in
subsection (3) by striking out "the
commissioner or".
196 The
following section is added:
Production and allocation
133.1
(1) To promote the efficient use of the petroleum and natural gas
reserves in British Columbia, the minister, by regulation, may limit
the total amount of petroleum or natural gas that may be produced from
a well, field or pool to an amount specified in the regulation or order.
(2) If satisfied that it is
necessary to do so because of an emergency or a disruption of service,
the minister, by order, may determine
(a) the maximum amount of petroleum
or natural gas that may be produced from a well, field or pool and
distributed through gathering and processing facilities, and
(b) the method by which the
production and distribution referred to in paragraph (a) must be
carried out.
(3) The commission may, by order,
allocate the amount of petroleum or natural gas that may be produced
from a pool in a manner among the wells in the pool so that each owner
may produce or receive a share of the petroleum or natural gas that is
fair in the opinion of the commission.
197 Section
135 is repealed and the following substituted:
Cancellation
135
If a holder of a permit, licence or lease fails to comply with a
provision of
(a) this Act, the regulations or a
notice or an order under this Act or the regulations,
(b) the Oil and Gas
Activities Act or the regulations under that Act, or
(c) a term, promise or condition of
the holder's permit, licence or lease,
the minister may, after giving 60
days' notice to the holder of the location, cancel the permit, licence
or lease.
198 Section
136 (1) is amended by striking out "or the
commission" and "or
the commission's".
199 Section
137 is repealed.
Pipeline Act
200 The
Pipeline Act, R.S.B.C. 1996, c. 364, is repealed.
Safety Standards Act
201 Section
3 (2) of the Safety Standards Act, S.B.C. 2003, c. 39, is amended by
striking out "a pipeline as defined in the Pipeline
Act," and substituting "a
pipeline as defined in section 1 (2) of the Oil and Gas
Activities Act,".
Securities Act
202 Section
1 (1) of the Securities Act, R.S.B.C. 1996, c. 418, is amended by
repealing paragraph (o) of the definition of "security"
and substituting the following:
(o) a permit under the Oil
and Gas Activities Act, .
Utilities Commission Act
203 Section
65 of the Utilities Commission Act, R.S.B.C. 1996, c. 473, is amended
by adding the following subsections:
(3.1) Without limiting subsection
(2) (b) or (3), the commission may establish conditions with respect to
a common carrier in relation to any of the following matters:
(a) a toll that may be charged by
the common carrier;
(b) extensions, improvements or
abandonment of service.
(3.2) The commission may order that
section 43 applies with respect to a common carrier as though the
common carrier were a public utility referred to in that section.
Water Act
204 Section
1 of the Water Act, R.S.B.C. 1996, c. 483, is amended in paragraph (g)
of the definition of "well" by striking out "Petroleum
and Natural Gas Act," and
substituting "Oil and Gas
Activities Act".
Wildfire Act
205 Section
1 of the Wildfire Act, S.B.C. 2004, c. 31, is amended in paragraph (b)
of the definition of "official" by striking out "minister
responsible for the Oil and Gas Commission Act,"
and substituting "the commissioner as defined
in section 1 (2) of the Oil and Gas Activities Act,".
Wildlife Act
206 Section
7 (2) of the Wildlife Act, R.S.B.C. 1996, c. 488, is amended by
striking out "Petroleum and Natural
Gas Act" and substituting "Oil
and Gas Activities Act".
Commencement
207
This Act comes into force by regulation of the Lieutenant Governor in
Council.
Explanatory Note
This Bill repeals the Oil and Gas Commission
Act, the Pipeline Act and portions of
the Petroleum and Natural Gas Act to consolidate
within a single Act the powers and duties of the Oil and Gas Commission
and the rights and obligations of persons carrying out an oil and gas
activity in British Columbia.
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