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

Act current to 2016-04-12 and last amended on 2015-06-19. Previous Versions

Purpose

Marginal note:Purpose

 The purpose of this Act is to promote, in respect of the exploration for and exploitation of oil and gas,

  • (a) safety, particularly by encouraging persons exploring for and exploiting oil or gas to maintain a prudent regime for achieving safety;

  • (b) the protection of the environment;

  • (b.1) the safety of navigation in navigable waters;

  • (c) the conservation of oil and gas resources;

  • (d) joint production arrangements; and

  • (e) economically efficient infrastructures.

  • 1992, c. 35, s. 4;
  • 2007, c. 35, s. 146;
  • 2012, c. 19, s. 117.

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: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.

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 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.

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 shall be subject to such requirements as the National Energy Board determines or as may be prescribed and to such fees and deposits as 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, fee or deposit subject to which the licence or authorization was issued;

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

    • (c) subsection 5.11(3), 5.12(2) or 27(1.1); 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.
Marginal note:Timing
  •  (1) If an application for an authorization under subsection 5(1) is made with respect to a work or activity proposed to be carried on in whole or in part in any area in respect of which the Minister of Indian Affairs and Northern Development has administrative responsibility for natural resources, the National Energy Board shall, within 18 months after the day on which the applicant has, in the Board’s opinion, provided a complete application, either issue the authorization to the applicant under that subsection or notify the applicant in writing of its decision not to issue the authorization.

  • Marginal note:Extensions

    (2) The Minister may, by order, extend the period referred to in subsection (1) by a maximum of three months. The Governor in Council may, on the recommendation of the Minister, by order, further extend that period by any additional period or periods of time.

  • Marginal note:Environmental assessment

    (3) If the application for an authorization is in respect of a designated project, as defined in subsection 2(1) of the Canadian Environmental Assessment Act, 2012, for which the National Energy Board is the responsible authority, as defined in that subsection, the Board shall issue the decision statement referred to in section 54 of that Act in respect of the designated project within the period referred to in subsection (1) or, if the period is extended under subsection (2), within that extended period.

  • Marginal note:Excluded period

    (4) If the National Energy Board requires the applicant to provide information or undertake a study with respect to the work or activity, the period that is taken by the applicant, in the Board’s opinion, to comply with the requirement is not included in the calculation of the period referred to in subsection (1) or, if the period is extended under subsection (2), within that extended period.

  • Marginal note:Public notice of excluded period

    (5) The National Energy Board shall, without delay, make public the dates on which the period referred to in subsection (4) begins and ends.

  • 2015, c. 4, s. 7.
 
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