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

Marginal note:Abandoned pipelines
  •  (1) No person shall, without the Board’s leave, make contact with, alter or remove an abandoned pipeline.

  • Marginal note:Terms

    (2) The Board may, on granting an application for leave under this section, impose any terms that it considers proper.

  • Marginal note:Exception

    (3) The Board may make orders or regulations governing the circumstances in which or conditions under which leave is not necessary.

  • 2015, c. 21, s. 16.

Polluter Pays Principle

Marginal note:Purpose

 The purpose of sections 48.12 to 48.17 is to reinforce the “polluter pays” principle by, among other things, imposing financial requirements on any company that is authorized under this Act to construct or operate a pipeline.

  • 2015, c. 21, s. 16.

Liability

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

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

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

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

  • Marginal note:Contribution based on degree of fault

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

  • Marginal note:Vicarious liability

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

  • Marginal note:Absolute liability

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

  • Marginal note:Limits of liability

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

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

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

  • Marginal note:Regulations — limits of liability

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

    • (a) prescribe an amount greater than one billion dollars for the purposes of paragraph (5)(a); and

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

  • Marginal note:Liability under another law — subsection (4)

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

  • Marginal note:Costs and expenses not recoverable under Fisheries Act

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

  • Marginal note:Proceedings — loss of non-use value

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

  • Marginal note:Claims

    (10) All claims under this section may be sued for and recovered in any court of competent jurisdiction in Canada and shall rank, firstly, in favour of persons incurring actual loss or damage described in paragraph (1)(a), without preference, secondly, to meet the costs and expenses described in paragraph (1)(b), and, lastly, to recover a loss of non-use value described in paragraph (1)(c).

  • Marginal note:Saving

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

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

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

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

  • Marginal note:Limitation period or prescription

    (12) Proceedings in respect of claims under this section may be instituted within three years from the day on which the loss, damage or costs and expenses were incurred but in no case after six years from the day on which the release occurred.

  • 2015, c. 21, s. 16.

Financial Requirements

Marginal note:Financial resources
  •  (1) A company that is authorized under this Act to construct or operate a pipeline shall maintain the amount of financial resources necessary to pay the amount of the limit of liability referred to in subsection 48.12(5) that applies to it or, if the Board specifies a greater amount, that amount.

  • Marginal note:Types of financial resources

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

  • Marginal note:Duty to satisfy Board

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

  • Marginal note:Greater amount

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

  • Marginal note:Loss of non-use value

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

  • Marginal note:Continuing obligation

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

  • Marginal note:Regulations

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

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

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

  • 2015, c. 21, s. 16.
 
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