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

Act current to 2017-11-20 and last amended on 2016-06-19. Previous Versions

Control by Board

Marginal note:Direction to Board
  •  (1) The Governor in Council may, by order, direct that the Board assume supervision and control of the movement of designated oil or gas out of a designated province or area.

  • Marginal note:Licence required

    (2) Where an order has been made under subsection (1) and while it remains in force, no person shall, except as otherwise authorized by the regulations, move designated oil or gas out of the designated province or area except under the authority of and in accordance with a licence issued under this Part.

  • 1980-81-82-83, c. 116, s. 29.

Issue of Licences

Marginal note:Issue of licences
  •  (1) Subject to the regulations, the Board may, on such terms and conditions as it may impose, issue a licence to any person permitting the movement of designated oil or gas out of the designated province or area.

  • Marginal note:Compliance

    (2) Every licence is subject to the conditions that

    • (a) the provisions of this Act and the regulations in force on the date of issue of the licence and as subsequently enacted, made or amended, as well as every order made under this Act, will be complied with; and

    • (b) the provisions of the Energy Administration Act and the regulations, if any, made under that Act applicable to the designated oil or gas in respect of which the licence is issued will be complied with.

  • 1980-81-82-83, c. 116, s. 29.
Marginal note:Criteria
  •  (1) On an application for a licence, the Board shall have regard to all considerations that appear to it to be relevant, including the equitable distribution of designated oil or gas in Canada.

  • Marginal note:Revocation and suspension of licences

    (2) Section 119 applies in respect of a licence issued under this Part.

  • R.S., 1985, c. N-7, s. 126;
  • 1990, c. 7, s. 40(E).

Regulations

Marginal note:Regulations

 The Governor in Council may make regulations for carrying into effect the purposes and provisions of this Part, including regulations respecting

  • (a) the information to be furnished by applicants for licences and the procedure to be followed in applying for licences and in issuing licences;

  • (b) the duration of licences from a date to be fixed in the licence, the approval required in respect of the issue of licences, the quantities that may be moved out of the designated province or area under the authority of a licence, and any other terms or conditions to which licences may be subject;

  • (c) units of measurement and measuring instruments or devices to be used in connection with the movement of designated oil or gas out of the designated province or area; and

  • (d) the inspection of any instruments, devices, plant, equipment, books, records or accounts or any other thing used for or in connection with the movement of designated oil or gas out of the designated province or area.

  • R.S., 1985, c. N-7, s. 127;
  • 1990, c. 7, s. 41(E).

Offences, Punishment and Enforcement

Marginal note:Offence and punishment
  •  (1) Every person who contravenes any of the provisions of this Part or the regulations made under this Part is guilty of an offence and liable

    • (a) on summary conviction, to a fine not exceeding one hundred thousand dollars or to imprisonment for a term not exceeding one year or to both; or

    • (b) on conviction on indictment, to a fine not exceeding one million dollars or to imprisonment for a term not exceeding five years or to both.

  • Marginal note:Application of subsections 121(2) to (5)

    (2) Subsections 121(2) to (5) apply, with such modifications as the circumstances require, in respect of an offence under this Part.

  • 1980-81-82-83, c. 116, s. 29.

PART VIIIGeneral

Regulations

Marginal note:Regulations respecting accounts, etc.
  •  (1) The Board may, with the approval of the Governor in Council, make regulations

    • (a) respecting the manner in which the accounts of a company shall be kept;

    • (b) respecting the classes of property for which depreciation charges may properly be included under operating expenses in the accounts and the accounting method or methods that may be used in computing and charging depreciation in respect of each of the classes of property;

    • (c) respecting a uniform system of accounts applicable to any class of company; and

    • (d) requiring

      • (i) companies that have been authorized under Part III to construct or operate a pipeline,

      • (i.1) companies that have been granted the leave required by paragraph 74(1)(d),

      • (ii) persons exporting oil, gas or electricity or importing oil or gas, and

      • (iii) persons holding a licence under Part VI or VII,

      to keep and make available to the Board for inspection by the Board or a person authorized by the Board at a place of business in Canada such records, books of account and other documents in such form as may be prescribed by the regulations and submit to the Board, at such times and in such form as may be so prescribed, returns and information respecting capital, traffic, revenues, expenses and other matters so prescribed and deemed by the Board to be matters that should be considered by it in carrying out its powers and duties under this Act in relation to those companies and persons.

  • Marginal note:Exemptions

    (1.1) The Board may, by order made on such terms and conditions as it considers appropriate, exempt a company or person from the application of a regulation made under subsection (1).

  • Marginal note:Contravention and punishment

    (2) Every person who contravenes a regulation made under this section is guilty of an offence punishable on summary conviction.

  • R.S., 1985, c. N-7, s. 129;
  • 1990, c. 7, s. 42;
  • 2004, c. 25, s. 164(F);
  • 2015, c. 21, s. 36.
Marginal note:General regulations
  •  (1) The Governor in Council may make regulations for carrying the purposes and provisions of this Act into effect and may, by those regulations, designate as an oil product or as a gas product any substance resulting from the processing or refining of hydrocarbons or coal if that substance

    • (a) is asphalt or a lubricant; or

    • (b) is a suitable source of energy by itself or when it is combined or used in association with something else.

  • Marginal note:Exemptions

    (2) The Governor in Council may by regulation exempt any oil or gas or any kind, quality or class thereof or any area or transaction from the operation of all or any of the provisions of this Act.

  • R.S., c. N-6, s. 89;
  • 1980-81-82-83, c. 116, s. 31.
Marginal note:Security regulations
  •  (1) The Board may, with the approval of the Governor in Council, make regulations respecting the security of pipelines and international power lines, including, without limiting the generality of the foregoing, regulations respecting standards, plans and audits relating to the security of pipelines and international power lines.

  • Marginal note:Offence and punishment

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

    • (a) on summary conviction, to a fine not exceeding one hundred thousand dollars or to imprisonment for a term not exceeding one year or to both; or

    • (b) on conviction on indictment, to a fine not exceeding five hundred thousand dollars or to imprisonment for a term not exceeding five years or to both.

  • 2004, c. 15, s. 93.

Sentencing

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

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

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

  • Marginal note:Aggravating factors

    (2) The aggravating factors are the following:

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

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

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

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

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

    • (f) the offender failed to take reasonable steps to prevent the commission of the offence;

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

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

    • (i) after the commission of the offence, the offender

      • (i) attempted to conceal its commission,

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

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

  • Marginal note:Absence of aggravating factor

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

  • Meaning of damage

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

  • Marginal note:Reasons

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

  • R.S., 1985, c. N-7, s. 132;
  • 1990, c. 7, s. 43;
  • 2015, c. 21, s. 37.
 
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