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

Act current to 2016-08-15 and last amended on 2016-06-19. Previous Versions

Application

Marginal note:Application

 This Act applies in respect of the exploration and drilling for and the production, conservation, processing and transportation of oil and gas in

  • (a) that part of the onshore that is under the administration of a federal minister,

  • (b) Nunavut,

  • (c) Sable Island,

  • (d) that part — of the internal waters of Canada or the territorial sea of Canada — that is not situated

    • (i) in a province other than the Northwest Territories, or

    • (ii) in that part of the onshore that is not under the administration of a federal minister, and

  • (e) the continental shelf of Canada and the waters superjacent to the seabed of that continental shelf,

other than of oil and gas in the adjoining area, as defined in section 2 of the Yukon Act.

  • R.S., 1985, c. O-7, s. 3;
  • 1993, c. 28, s. 78;
  • 1996, c. 31, s. 93;
  • 1998, c. 5, s. 11, c. 15, ss. 36(E), 49;
  • 2014, c. 2, s. 21.

Chief Safety Officer and Chief Conservation Officer

Marginal note:Designation

 The National Energy Board may, for the purposes of this Act, designate a member, officer or employee of the Board to be the Chief Safety Officer and the same or another member, officer or employee of the Board to be the Chief Conservation Officer.

  • 1992, c. 35, s. 5;
  • 1994, c. 10, s. 1.

Statutory Instruments Act

Marginal note:Orders

 For greater certainty, an order made by a safety officer, the Chief Safety Officer, a conservation officer, the Chief Conservation Officer, the Committee or the National Energy Board is not a statutory instrument as defined in the Statutory Instruments Act.

  • 1992, c. 35, s. 5;
  • 1994, c. 10, s. 1.

Prohibition

Marginal note:Prohibition

 No person shall carry on any work or activity related to the exploration or drilling for or the production, conservation, processing or transportation of oil or gas in any area to which this Act applies unless

  • (a) that person is the holder of an operating licence issued under paragraph 5(1)(a);

  • (b) that person is the holder of an authorization issued, before the commencement of operations, under paragraph 5(1)(b) for each such work or activity; and

  • (c) where it is required, that person is authorized or entitled to carry on business in the place where that person proposes to carry on the work or activity.

  • R.S., 1985, c. O-7, s. 4;
  • R.S., 1985, c. 36 (2nd Supp.), s. 119;
  • 1992, c. 35, s. 6.
Marginal note:Limitations on pipelines
  •  (1) A holder of an authorization under paragraph 5(1)(b) to construct or operate a pipeline shall not, without the leave of the National Energy Board,

    • (a) sell, transfer or lease to any person its pipeline, in whole or in part;

    • (b) purchase or lease any pipeline from any person;

    • (c) enter into an agreement for amalgamation with any person; or

    • (d) abandon the operation of a pipeline.

  • Definition of pipeline

    (2) For the purposes of paragraph (1)(b), pipeline includes a pipeline as defined in section 2 or any other pipeline.

  • Marginal note:Terms and conditions — abandonment

    (2.1) The National Energy Board may, on granting leave to abandon the operation of a pipeline, impose any terms and conditions that it considers proper.

  • Marginal note:Costs and expenses related to abandonment

    (2.2) The National Energy Board may order a holder of an authorization issued under paragraph 5(1)(b) or a holder of that authorization that has obtained the Board’s leave to abandon the operation of its pipeline, or the holder’s successor or assign, to take any measure that the Board considers necessary to ensure that the holder, or its successor or assign, has the ability to pay for the abandonment of its pipelines and any costs and expenses related to its abandoned pipelines.

  • Marginal note:Exception

    (3) Despite paragraph (1)(a), leave shall only be required if the holder sells, transfers or leases any part of its pipeline that is capable of being operated for the transmission of oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas.

  • 2007, c. 35, s. 147;
  • 2015, c. 21, s. 40.

Delegation

Marginal note:Delegation
  •  (1) The National Energy Board may delegate any of its powers under section 5, 5.02, 5.03, 5.11, 5.12, 26.1 or 27 to any person, and the person shall exercise those powers in accordance with the terms of the delegation.

  • Marginal note:Navigable waters

    (2) The person to whom the power to issue an authorization under paragraph 5(1)(b) is delegated may exercise that power in relation to a section or part of a pipeline that passes in, on, over, under, through or across a navigable water only after having consulted the National Energy Board.

  • 1992, c. 35, s. 7;
  • 1994, c. 10, s. 2;
  • 2012, c. 19, s. 118;
  • 2015, c. 4, s. 4.

Cost Recovery

Marginal note:Regulations respecting fees, etc.
  •  (1) The Governor in Council may make regulations

    • (a) respecting the fees or charges, or the method of calculating the fees or charges, to be paid for the provision, by the National Energy Board or the Minister, of a service or product under this Act;

    • (b) respecting the fees or charges, or the method of calculating the fees or charges, in respect of any of the National Energy Board’s or the Minister’s activities under or related to this Act or under any other Act of Parliament, that are to be paid by

      • (i) a person who makes an application for an authorization under paragraph 5(1)(b) or an application under subsection 5.1(2), or

      • (ii) the holder of an operating licence or authorization issued under section 5; and

    • (c) respecting the refund of all or part of any fee or charge referred to in paragraph (a) or (b), or the method of calculating that refund.

  • Marginal note:Amounts not to exceed cost

    (2) The amounts of the fees or charges referred to in paragraph (1)(a) shall not exceed the cost of providing the services or products.

  • Marginal note:Amounts not to exceed cost

    (3) The amounts of the fees or charges referred to in paragraph (1)(b) shall not exceed the cost of performing the activities under or related to this Act or under any other Act of Parliament.

  • 2015, c. 4, s. 5.

Licences and Authorizations

Operating Licences and Authorization for Work

Marginal note:Licences and authorizations
  •  (1) The National Energy Board may, on application made in the form and containing the information fixed by the National Energy Board, and made in the prescribed manner, issue

    • (a) an operating licence; and

    • (b) an authorization with respect to each work or activity proposed to be carried on.

  • Marginal note:Term and renewals

    (2) An operating licence expires on the thirty-first day of March immediately after the day on which it is issued and may be renewed for successive periods not exceeding one year each.

  • Marginal note:Requirements for operating licence

    (3) An operating licence is subject to any requirements that are determined by the National Energy Board or that are prescribed and to any deposits that are prescribed.

  • Marginal note:Requirements for authorization

    (4) An authorization shall be subject to such approvals as the National Energy Board determines or as may be granted in accordance with the regulations and such requirements and deposits as the National Energy Board determines or as may be prescribed, including

    • (a) requirements relating to liability for loss, damage, costs or expenses;

    • (b) requirements for the carrying out of environmental programs or studies; and

    • (c) requirements for the payment of expenses incurred by the National Energy Board in approving the design, construction and operation of production facilities and production platforms as those terms are defined in the regulations.

  • Marginal note:Suspension or revocation

    (5) The National Energy Board may suspend or revoke an operating licence or an authorization for failure to comply with, contravention of or default in respect of

    • (a) a requirement, approval or deposit subject to which the licence or authorization was issued;

    • (a.1) a fee or charge payable in accordance with regulations made under section 4.2;

    • (b) a requirement undertaken in a declaration referred to in subsection 5.11(1) or (2);

    • (c) subsection 5.11(3), 5.12(2), 26.1(4) or (5) or 27(1.1), (1.2) or (5); or

    • (d) any applicable regulation.

  • Marginal note:Variation

    (6) The terms of an operating licence or authorization may be varied under section 28.3 of the National Energy Board Act.

  • R.S., 1985, c. O-7, s. 5;
  • R.S., 1985, c. 36 (2nd Supp.), s. 120;
  • 1992, c. 35, s. 8;
  • 1994, c. 10, ss. 3, 15;
  • 2015, c. 4, s. 6.
 
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