National Energy Board Act (R.S.C., 1985, c. N-7)

Act current to 2016-09-18 and last amended on 2016-06-19. Previous Versions

PART IVTraffic, Tolls and Tariffs

Interpretation

Definition of tariff

 In this Part, tariff means a schedule of tolls, terms and conditions, classifications, practices or rules and regulations applicable to the provision of a service by a company and includes rules respecting the calculation of tolls.

  • 1990, c. 7, s. 24.

Powers of Board

Marginal note:Regulation of traffic, etc.

 The Board may make orders with respect to all matters relating to traffic, tolls or tariffs.

  • R.S., c. N-6, s. 50.

Filing of Tariff

Marginal note:Tolls to be filed
  •  (1) A company shall not charge any tolls except tolls that are

    • (a) specified in a tariff that has been filed with the Board and is in effect; or

    • (b) approved by an order of the Board.

  • Marginal note:Compliance

    (2) Where gas or a commodity other than oil transmitted by a company through its pipeline is the property of the company, the company shall file with the Board, on the making thereof, true copies of all the contracts it may make for the sale of the gas or commodity and of any amendments from time to time made thereto, and the true copies so filed are deemed, for the purposes of this Part, to constitute a tariff pursuant to subsection (1).

  • R.S., 1985, c. N-7, s. 60;
  • 1996, c. 10, s. 241.
Marginal note:Commencement of tariff

 Where a company files a tariff with the Board and the company proposes to charge a toll referred to in paragraph (b) of the definition toll in section 2, the Board may establish the day on which the tariff is to come into effect and the company shall not commence to charge the toll before that day.

  • 1977-78, c. 20, s. 41.

Just and Reasonable Tolls

Marginal note:Tolls to be just and reasonable

 All tolls shall be just and reasonable, and shall always, under substantially similar circumstances and conditions with respect to all traffic of the same description carried over the same route, be charged equally to all persons at the same rate.

  • R.S., c. N-6, s. 52.
Marginal note:Board determinations

 The Board may determine, as questions of fact, whether or not traffic is or has been carried under substantially similar circumstances and conditions referred to in section 62, whether in any case a company has or has not complied with the provisions of that section, and whether there has, in any case, been unjust discrimination within the meaning of section 67.

  • 1980-81-82-83, c. 116, s. 17.
Marginal note:Interim tolls

 Where the Board has made an interim order authorizing a company to charge tolls until a specified time or the happening of a specified event, the Board may, in any subsequent order, direct the company

  • (a) to refund, in a manner satisfactory to the Board, such part of the tolls charged by the company under the interim order as is in excess of the tolls determined by the Board to be just and reasonable, together with interest on the amount so refunded; or

  • (b) to recover in its tolls, in a manner satisfactory to the Board, the amount by which the tolls determined by the Board to be just and reasonable exceed the tolls charged by the company under the interim order, together with interest on the amount so recovered.

  • 1980-81-82-83, c. 116, s. 17.

Disallowance of Tariff

Marginal note:Disallowance of tariff

 The Board may disallow any tariff or any portion thereof that it considers to be contrary to any of the provisions of this Act or to any order of the Board, and may require a company, within a prescribed time, to substitute a tariff satisfactory to the Board in lieu thereof, or may prescribe other tariffs in lieu of the tariff or portion thereof so disallowed.

  • R.S., c. N-6, s. 53.
Marginal note:Suspension of tariff

 The Board may suspend any tariff or any portion thereof before or after the tariff goes into effect.

  • R.S., c. N-6, s. 54.

Discrimination

Marginal note:No unjust discrimination

 A company shall not make any unjust discrimination in tolls, service or facilities against any person or locality.

  • R.S., c. N-6, s. 55.
Marginal note:Burden of proof

 Where it is shown that a company makes any discrimination in tolls, service or facilities against any person or locality, the burden of proving that the discrimination is not unjust lies on the company.

  • R.S., c. N-6, s. 56.
Marginal note:No rebates, etc.
  •  (1) A company or shipper or an officer or an employee, or an agent or a mandatary, of the company or shipper who

    • (a) offers, grants, gives, solicits, accepts or receives a rebate, concession or discrimination, or

    • (b) knowingly is party or privy to a false billing, false classification, false report or other device,

    whereby a person obtains transmission of hydrocarbons or any other commodity by a company at a rate less than that named in the tariffs then in force, is guilty of an offence punishable on summary conviction.

  • Marginal note:Prosecution

    (2) No prosecution shall be instituted for an offence under this section without leave of the Board.

  • R.S., 1985, c. N-7, s. 69;
  • 1996, c. 10, s. 242;
  • 2004, c. 25, s. 153(E).

Contracts Limiting Liabilities

Marginal note:Contracts limiting liability of company
  •  (1) Except as provided in this section, no contract, condition or notice made or given by a company impairing, restricting or limiting its liability in respect of the transmission of hydrocarbons or any other commodity relieves the company from its liability, unless that class of contract, condition or notice is included as a term or condition of its tariffs as filed or has been first authorized or approved by order or regulation of the Board.

  • Marginal note:Board may determine limits

    (2) The Board may determine the extent to which the liability of a company may be impaired, restricted or limited as provided in this section.

  • Marginal note:Terms and conditions

    (3) The Board may prescribe the terms and conditions under which hydrocarbons or any other commodity may be transmitted by a company.

  • R.S., 1985, c. N-7, s. 70;
  • 1996, c. 10, s. 243.

Transmission, etc., of Oil or Gas

Marginal note:Duty of pipeline company
  •  (1) Subject to such exemptions, conditions or regulations as the Board may prescribe, a company operating a pipeline for the transmission of oil shall, according to its powers, without delay and with due care and diligence, receive, transport and deliver all oil offered for transmission by means of its pipeline.

  • Marginal note:Orders for transmission of commodities

    (2) The Board may, by order, on such terms and conditions as it may specify in the order, require the following companies to receive, transport and deliver, according to their powers, a commodity offered for transmission by means of a pipeline:

    • (a) a company operating a pipeline for the transmission of gas; and

    • (b) a company that has been issued a certificate under Part III authorizing the transmission of a commodity other than oil.

  • Marginal note:Extension of facilities

    (3) The Board may, if it considers it necessary or desirable to do so in the public interest, require a company operating a pipeline for the transmission of hydrocarbons, or for the transmission of any other commodity authorized by a certificate issued under Part III, to provide adequate and suitable facilities for

    • (a) the receiving, transmission and delivering of the hydrocarbons or other commodity offered for transmission by means of its pipeline,

    • (b) the storage of the hydrocarbons or other commodity, and

    • (c) the junction of its pipeline with other facilities for the transmission of the hydrocarbons or other commodity,

    if the Board finds that no undue burden will be placed on the company by requiring the company to do so.

  • R.S., 1985, c. N-7, s. 71;
  • 1996, c. 10, s. 243.1;
  • 2012, c. 19, s. 89.

Transmission and Sale of Gas

Marginal note:Extension of services of gas pipeline companies
  •  (1) Where the Board finds such action necessary or desirable in the public interest, it may direct a company operating a pipeline for the transmission of gas to extend or improve its transmission facilities to provide facilities for the junction of its pipeline with any facilities of, and sell gas to, any person or municipality engaged or legally authorized to engage in the local distribution of gas to the public, and for those purposes to construct branch lines to communities immediately adjacent to its pipeline, if the Board finds that no undue burden will be placed on the company thereby.

  • Marginal note:Limitation on extension

    (2) Subsection (1) does not empower the Board to compel a company to sell gas to additional customers if to do so would impair its ability to render adequate service to its existing customers.

  • Marginal note:Deemed toll for transmission

    (3) Where the gas transmitted by a company through its pipeline is the property of the company, the differential between the cost to the company of the gas at the point where it enters its pipeline and the amount for which the gas is sold by the company shall, for the purposes of this Part, be deemed to be a toll charged by the company to the purchaser for the transmission of that gas.

  • R.S., c. N-6, ss. 60, 61.
 
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