13.1 (1) In this section, "vehicle" means a device in, on or by which a person or thing is or may be transported or drawn on a bridge, rail, road, trail, utility or other structure or work except a device exempted from this definition under the regulations.

(2) The minister may establish and administer a system of cost recovery for the use of bridges, roads, rails, trails, utilities or other structures or works administered by the ministry that are used during the exploration and development of energy, mineral and petroleum resources in British Columbia by one or both of the following methods:

(a) a system of tolls under the regulations;

(b) a system of charges by contract with individual users.

(3) If the minister establishes a system of tolls under subsection (2) for the use of a bridge, road, rail, trail, utility or other structure or work, a person must not

(a) take or operate a vehicle through a toll station without paying the toll applicable to the vehicle, or

(b) take a vehicle onto or operate a vehicle on the bridge, rail, road, trail, utility or structure without paying the toll applicable to the vehicle.

(4) Subsection (3) does not apply to a vehicle or class of vehicles exempted by regulation from the application of that subsection.

12 The following sections are added:

Offence

22.1 A person who contravenes section 13.1 (3) commits an offence.

Offence Act

22.2 Section 5 of the Offence Act does not apply to this Act.

13 Section 23 is amended by renumbering the section as section 23 (1) and by adding the following subsection:

(2) Without limiting subsection (1), the Lieutenant Governor in Council may make regulations as follows:

(a) establishing a system of tolls to be administered by the minister for the purposes of section 13.1;

(b) specifying which vehicles are exempted from the application of section 13.1;

(c) respecting contracts entered into under section 13.1;

(d) establishing rules governing the use of property administered by the minister;

(e) respecting the layout, design, construction, operation, use, maintenance and deactivation of roads and other works designated under section 13.1.

14 The following section is added:

Power of minister to make road use rules

24 The minister may make regulations respecting rules for the operation and use of vehicles on a road or other work developed, operated or maintained under this Act.

 
Oil and Gas Commission Act

15 Section 1 (1) of the Oil and Gas Commission Act, S.B.C. 1998, c. 39, is amended

(a) by adding the following definition:

"pipeline" has the meaning given to it in the Pipeline Act; ,

(b) in paragraph (c) of the definition of "specified enactment" by striking out "21 (2)" and substituting "21 (b)",

(c) in paragraph (e) (xvii) of the definition of "specified enactment" by striking out "of" and substituting "or",

(d) in paragraph (e) (xviii) of the definition of "specified enactment" by striking out "sections" and substituting "section", and

(e) in the definition of "specified enactment" by adding the following paragraph:

(h) a prescribed regulation under any of the following Acts:

(i) Forest Act;

(ii) Forest Practices Code of British Columbia Act;

(iii) Heritage Conservation Act;

(iv) Land Act;

(v) Waste Management Act;

(vi) Water Act.

16 Section 2 is repealed and the following substituted:

Corporation established

2 (1) A corporation known as the Oil and Gas Commission is continued, consisting of 3 directors.

(2) The deputy minister is a director and is the chair of the commission.

(3) The Lieutenant Governor in Council may appoint 2 directors, for a term not longer than 5 years, one of whom is the commissioner and vice chair of the commission.

(4) A vacancy in the membership of the commission or the incapacity of one of the directors does not impair the power of the remaining directors to act.

(5) A majority of the directors holding office constitutes a quorum at meetings of the commission.

(6) If there is a tie vote, the chair of the commission, or in the absence of the chair the vice chair, has a casting vote.

(7) If a person appointed under subsection (3) dies or is unable to act, the minister, by order, may appoint an acting commissioner or acting director for a period not longer than 6 months.

(8) The commission must pay a person appointed under subsection (3) or (7) an allowance for reasonable travelling and incidental expenses necessarily incurred in carrying out the business of the corporation.

(9) Subject to sections 5 and 6.1, the commission must direct its operations.

(10) The Lieutenant Governor in Council may appoint a deputy commissioner.

(11) The deputy commissioner has the powers of the commissioner, but does not have a vote in meetings or decisions of the commission.

17 The following section is added:

Commission is an agent of the government

2.1 The commission is an agent of the government.

18 Section 5 is repealed and the following substituted:

Direction and management of the commission

5 (1) The commission may pass resolutions it considers necessary or advisable to direct its affairs, exercise its power and perform its duties, including resolutions for one or more of the following:

(a) calling and holding meetings of the commission and the procedures to be followed at the meetings;

(b) approving proposals to recommend amendments to the Act and regulations;

(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) approving the commission's estimates made in respect of the levies prescribed in accordance with section 22 (5) of this Act;

(e) establishing a plan of organization to carry out the powers of the commission.

(2) A resolution approved by the directors by mail, facsimile transmission, telephone, electronic mail or any other similar means of communication and confirmed in writing or other graphic communication is as valid as if it had been passed at a meeting of the directors properly called and constituted.

19 The following section is added:

Powers of the commissioner

6.1 (1) Subject to the direction of the commission, the commissioner must manage the operations of the commission or supervise the management of those operations.

(2) The commissioner may delegate the exercise of any power or performance of any duty conferred or imposed on the commission under this Act, the Petroleum and Natural Gas Act or the Pipeline Act, other than a power to make regulations or the powers under section 5 (1) or 6 (1), to an employee or officer of the commission or to another public officer or agency responsible for carrying out duties under a specified enactment.

(3) A delegation under subsection (2) to a person other than an employee or officer of the commission must be limited to a specific period of time and a particular oil and gas activity or pipeline.

(4) A delegation under subsection (2) may be to an officer of the commission or to a public officer by name or by designation of the office.

20 Section 13 (1) and (2) is amended by striking out "board" and substituting "commission".

21 Section 17 (5) is repealed.

22 The following sections are added:

General development permits

17.1 (1) In this section, "general development permit" means a permit issued under subsection (2).

(2) The commission, on application, may issue a general development permit.

(3) A general development permit is an approval in principle for oil and gas activities and pipelines in an area of British Columbia.

(4) A general development permit must

(a) state the terms and conditions, including siting considerations, that must be included in approvals, licences, permits or other authorizations subsequently issued under the Petroleum and Natural Gas Act, the Pipeline Act or the specified enactments by the commission for the oil and gas activity or pipeline,

(b) be limited to a specified period of time, and

(c) be limited to a specified area.

(5) A term or condition specified in a general development permit must be applied to an approval, a licence, a permit or another authorization, as appropriate, subsequently issued in accordance with the Petroleum and Natural Gas Act, the Pipeline Act or a specified enactment.

(6) Despite subsection (4), a term or condition specified in a general development permit may be amended or replaced by a term or condition of an approval, a licence, a permit or another authorization, subsequently issued in accordance with the Petroleum and Natural Gas Act, the Pipeline Act or a specified enactment for each oil and gas activity or pipeline associated with the general development permit.

(7) The commission may require at any time that the holder of a general development permit provide the commission with reports on any matter related to the permit.

(8) With the concurrence of the holder of the general development permit, the commission, by order, may amend, suspend or cancel a general development permit.

(9) Without the concurrence of the holder of the general development permit, the commission, by order, may

(a) amend or suspend a general development permit if the commission has information that was not considered when the permit was issued and that information relates to matters that may be affected by an application under a specified enactment, or

(b) suspend or cancel a general development permit if the commission believes that

(i) the applicant omitted relevant information from the application for the permit,

(ii) the holder has contravened or is in default of a requirement or condition of the permit, or

(iii) the holder has contravened a provision of this Act, the Petroleum and Natural Gas Act, the Pipeline Act or a specified enactment.

(10) The refusal of the commission to issue a general development permit or the suspension or cancellation of a permit under subsection (8) or (9) does not prevent a person from making an application for an approval, a licence, a permit or another authorization under the Petroleum and Natural Gas Act, the Pipeline Act or a specified enactment related to matters applied for in the permit.

(11) A general development permit does not authorize the holder of the permit to enter property, or to make any alteration to property.

(12) A general development permit must not be transferred unless

(a) the commission consents in writing to the transfer, and

(b) the document that is the evidence of the transfer is filed with the commission.

(13) The commission must keep a record of each transfer to which it has consented.

Application of sections 17 and 17.1 to pipelines under jurisdiction of Canada

17.2 Sections 17 and 17.1 do not apply to a pipeline that is subject to the National Energy Board Act (Canada) but the Lieutenant Governor in Council may, by regulation, make all or part of sections 17 and 17.1 apply to a pipeline that is subject to that Act.

23 Section 18 (1) (a) is amended by striking out "definition of "special enactment" in section 1 (1)," and substituting "definition of "specified enactment" in section 1 (1),".

24 Section 22 (3) is repealed and the following substituted:

(3) Without limiting subsection (2), the Lieutenant Governor in Council may make regulations as follows:

(a) 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;

(b) respecting applications to the commission;

(c) prescribing time limits within which specified steps in the application process must be taken;

(d) defining words and expressions used but not defined in this Act;

(e) prescribing, as a specified enactment, a regulation or part of a regulation under any of the Acts referred to in paragraph (h) of the definition of "specified enactment" in section 1 (1);

(f) respecting general development permits and applications for them.

 
Petroleum and Natural Gas Act

25 Section 1 of the Petroleum and Natural Gas Act, R.S.B.C. 1996, c. 361, is amended

(a) in the definition of "test hole" by striking out "to a depth not exceeding 600 m" and substituting ", to a depth and in a manner defined by the regulations,", and

(b) in paragraph (c) of the definition of "well" by striking out "to a depth in excess of 600 m".

26 Section 32 (3), (4) and (5) is repealed and the following substituted:

(3) The commission may issue or renew a geophysical licence for the prescribed term on receiving an application and on payment of the prescribed fee or may refuse to issue or renew a geophysical licence.

27 Section 36 is repealed and the following substituted:

Regulations for this Part

36 (1) The commission may make regulations as follows:

(a) governing the methods and manner of geophysical exploration and the places in which it may be carried out;

(b) empowering designated employees of the commission to

(i) require persons carrying out geophysical exploration to clean up, restore and reclaim land and improvements affected by the exploration,

(ii) require those persons to post performance bonds for the due performance of the clean-up, restoration and reclamation, and

(iii) deduct or recover the costs of the clean-up, restoration and reclamation from those performance bonds;

(c) providing for reports to the commission;

(d) setting the terms for geophysical licences and renewals of geophysical licences.

(2) A regulation made under this section may provide that commission employees designated by the commission may, in writing, exempt a person from the application of all or part of the regulation, in relation to a particular geophysical exploration project and subject to specified conditions.

28 The following section is added:

Other than normal spacing

65.1 (1) If the minister is satisfied that it would facilitate petroleum or natural gas exploration and development, the minister may

(a) make regulations specifying other than normal spacing in an area of British Columbia, or

(b) on application or on the minister's own initiative, by order, specify other than normal spacing for a parcel of land or location.

(2) The commission, by order, may approve or on its own initiative may specify other than normal spacing for a pool or portion of a pool on a parcel of land or a location if the commission is satisfied that it would facilitate drilling and production operations.

(3) A regulation or order under subsection (1) or (2) must specify target areas within each other than normal spacing area and may specify methods of determining and conditions that apply to that spacing.

(4) Other than normal spacing, as specified under subsection (1) or (2), may be varied by the commission in accordance with the terms and conditions of a scheme approved under section 100.

29 Section 67 is repealed and the following substituted:

No production unless other than normal spacing areas pooled with adjoining areas

67 (1) If a location contains other than a normal spacing area for a natural gas well, the commission may issue a well authorization for the drilling of a natural gas well on it, but production may not be taken from the location until it is pooled with adjoining areas to form a normal spacing area or a spacing area prescribed or ordered under section 65.1.

(2) Subsection (1) applies to land referred to in section 85 (c) (ii) as if it were a location.

30 Section 85 (c) is repealed and the following substituted:

(c) the applicant is entitled to drill the well for which the authorization is requested or to drill for and produce petroleum or natural gas, or both, through the well

(i) as the holder of the location 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, or

(ii) as 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, .

31 Section 86 is amended

(a) in paragraph (d) by striking out "and to extract" and substituting "or to drill for and extract", and

(b) by repealing paragraph (e) and substituting the following:

(e) if the commission is satisfied that the holder of the well authorization is not entitled to drill the well for which the authorization was issued or to drill for and extract petroleum or natural gas, or both, through the well

(i) as the holder of the location, or by agreement with the holder, if the well authorization relates to land in which the petroleum and natural gas rights are held by the government, or

(ii) as the owner of the petroleum and natural gas rights, or by agreement with the owner, if the well authorization relates to land in which the petroleum and natural gas rights are not held by the government, .

32 Section 88 is repealed and the following substituted:

Obligations on abandonment of a well or cancellation of a well authorization

88 If any of the following circumstances exist, a person who drills a well or produces petroleum or natural gas from a well must complete or abandon the well, or suspend operations, in accordance with the regulations and directions that may be given by the commission:

(a) the person drills or operates the well without a valid well authorization;

(b) the person is the holder of a well authorization but ceases to be the holder of the location;

(c) the person fails to maintain a required agreement referred to in section 85 (c);

(d) the commission cancels the well authorization.

33 Sections 90 and 91 are repealed and the following substituted:

Application

90 An application for a test hole authorization must be made to the commission and is not valid unless all of the following requirements are met:

(a) it is accompanied by the fee;

(b) it is made in accordance with the regulations;

(c) if the application is in respect of land in which the petroleum and natural gas rights are not held by the government, the applicant is the owner or has an agreement with the owner of the petroleum and natural gas rights to drill the test hole.

Cancellation

91 A test hole authorization may be cancelled by the commission for any of the following reasons:

(a) the drilling of the test holes for which the authorization is issued is not begun within 90 days of the day on which the authorization was issued;

(b) the holder of the authorization requests the cancellation;

(c) it appears to the commission that a contravention of this Act or of a regulation or order has occurred with respect to a test hole for which the authorization was issued;

(d) the holder of the authorization fails to maintain ownership of the petroleum and natural gas rights or an agreement referred to in section 90 (c) with the owner of the petroleum and natural gas rights.

34 Section 96 (1) (h) is amended by adding "and defining different depths and requirements for different kinds of test holes" after "schemes".

35 Section 100 is repealed and the following substituted:

Approval of schemes

100 (1) A scheme for any of the following must not be proceeded with unless the commission, by order, approves the scheme on terms the commission specifies:

(a) the development or production of petroleum or natural gas, or both, from a field or pool or portion of a field or pool;

(b) the experimental application of oil field technology as defined by regulation;

(c) the processing, storage or disposal of natural gas;

(d) the gathering, storage and disposal of water produced from a field or pool.

(2) For the purposes of subsection (1), "development or production" includes the use of repressuring, recycling, pressure maintenance or any other enhanced recovery technique.

(3) On approving a scheme under subsection (1), the commission may, by order, waive or modify the operation of section 65 if the scheme would facilitate development and production operations or the conservation of petroleum or natural gas, or both.

(4) The commission may cancel or suspend the approval of a scheme

(a) at the request of the person to whom the approval was given, or

(b) if it appears to the commission that there has been a contravention of this Act, the regulations, an order respecting the approval or a condition of the approval.

36 Section 133 is amended

(a) by repealing subsection (2) (r), and

(b) by adding the following subsection:

(3) A regulation made under this section may provide that the commissioner or the minister may, in writing, exempt a person from the application of all or part of the regulation.

 
Pipeline Act

37 Section 35 (2) (b) of the Pipeline Act, R.S.B.C. 1996, c. 364, is amended by striking out "Ministry of Energy, Mines and Petroleum Resources" and substituting "Ministry of Energy and Mines".

Commencement

38 This Act comes into force by regulation of the Lieutenant Governor in Council.