Canada Oil and Gas Operations Act (R.S.C., 1985, c. O-7)

Marginal note:Production orders

• 17. (1) Where the Chief Conservation Officer, on reasonable grounds, is of the opinion that, with respect to an interest in any area to which this Act applies, the capability exists to commence, continue or increase production of oil or gas and that a production order would stop waste, the Chief Conservation Officer may order the commencement, continuation or increase of production of oil or gas at such rates and in such quantities as are specified in the order.

• Marginal note:Ceasing production

  (2) Where the Chief Conservation Officer, on reasonable grounds, is of the opinion that an order under this section would stop waste, the Chief Conservation Officer may order a decrease or the cessation or suspension of production of oil or gas for any period specified in the order.

• Marginal note:Investigation and appeal

  (3) Subsections 19(2) to (4) and section 21 apply, with such modifications as the circumstances require, to an order under subsection (1) or (2) as if it were an order under subsection 19(1).

• Marginal note:Access to files and records

  (4) A person subject to an order under subsection (1) or (2) shall, on request, afford the Chief Conservation Officer or a person designated by the Chief Conservation Officer access to his premises, files and records for all reasonable purposes related to the order.

Marginal note:Waste prohibited

• 18. (1) Subject to section 63, any person who commits waste is guilty of an offence under this Act, but a prosecution may be instituted for such an offence only with the consent of the National Energy Board.

• Marginal note:Definition of “waste”

  (2) In this Act, “waste”, in addition to its ordinary meaning, means waste as understood in the oil and gas industry and in particular, but without limiting the generality of the foregoing, includes

  • (a) the inefficient or excessive use or dissipation of reservoir energy;

  • (b) the locating, spacing or drilling of a well within a field or pool or within part of a field or pool or the operating of any well that, having regard to sound engineering and economic principles, results or tends to result in a reduction in the quantity of oil or gas ultimately recoverable from a pool;

  • (c) the drilling, equipping, completing, operating or producing of any well in a manner that causes or is likely to cause the unnecessary or excessive loss or destruction of oil or gas after removal from the reservoir;

  • (d) the inefficient storage of oil or gas above ground or underground;

  • (e) the production of oil or gas in excess of available storage, transportation or marketing facilities;

  • (f) the escape or flaring of gas that could be economically recovered and processed or economically injected into an underground reservoir; or

  • (g) the failure to use suitable artificial, secondary or supplementary recovery methods in a pool when it appears that those methods would result in increasing the quantity of oil or gas, or both, ultimately recoverable under sound engineering and economic principles.