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

Act current to 2017-10-13 and last amended on 2016-06-19. Previous Versions

Marginal note:Commencement of tariff

 If a holder files a tariff with the National Energy Board and the holder proposes to charge a toll referred to in paragraph (b) of the definition toll in section 13.01, the Board may establish the day on which the tariff is to come into effect and the holder shall not begin charging the toll before that day.

  • 2007, c. 35, s. 150.

Just and Reasonable Tolls

Marginal note:Tolls to be just and reasonable

 All tolls shall be just and reasonable and shall always, under substantially similar circumstances and conditions with respect to all traffic of the same description carried over the same route, be charged equally to all persons at the same rate.

  • 2007, c. 35, s. 150.
Marginal note:National Energy Board determinations

 The National Energy Board may determine, as questions of fact, whether or not traffic is or has been carried out under substantially similar circumstances and conditions referred to in section 13.05, whether in any case a holder has or has not complied with the provisions of that section, and whether there has, in any case, been unjust discrimination as set out in section 13.1.

  • 2007, c. 35, s. 150.
Marginal note:Interim tolls

 If the National Energy Board has made an interim order authorizing a holder to charge tolls until a specified time or the happening of a specified event, the Board may, in any subsequent order, direct the holder

  • (a) to refund, in a manner satisfactory to the Board, any part of the tolls charged by the holder under the interim order that is in excess of the tolls determined by the Board to be just and reasonable, together with interest on the amount so refunded; or

  • (b) to recover in its tolls, in a manner satisfactory to the Board, the amount by which the tolls determined by the Board to be just and reasonable exceed the tolls charged by the holder under the interim order, together with interest on the amount so recovered.

  • 2007, c. 35, s. 150.

Disallowance of Tariff

Marginal note:Disallowance of tariff

 The National Energy Board may disallow any tariff or any portion of any tariff that it considers to be contrary to any of the provisions of this Act or any order of the Board and may require a holder, within a time fixed by the Board, to substitute for it a tariff satisfactory to the Board or may establish other tariffs in lieu of the tariff or the portion so disallowed.

  • 2007, c. 35, s. 150.
Marginal note:Suspension of tariff

 The National Energy Board may suspend any tariff or any portion of any tariff before or after the tariff goes into effect.

  • 2007, c. 35, s. 150.

Discrimination

Marginal note:No unjust discrimination

 A holder shall not make any unjust discrimination in tolls, service or facilities against any person or locality.

  • 2007, c. 35, s. 150.
Marginal note:Burden of proof

 If it is shown that a holder makes any discrimination in tolls, service or facilities against any person or locality, the burden of proving that the discrimination is not unjust lies on the holder.

  • 2007, c. 35, s. 150.
Marginal note:No rebates, etc.
  •  (1) No holder or shipper or an officer or employee, or an agent or mandatary, of a holder or shipper shall

    • (a) offer, grant, give, solicit, accept or receive a rebate, concession or discrimination whereby a person obtains transmission of oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas by a holder at a rate less than that named in the tariffs then in force; or

    • (b) knowingly be party or privy to a false billing, false classification, false report or other device resulting in a rate being charged that is less than that named in the tariffs then in force.

  • Marginal note:Prosecution

    (2) No prosecution shall be instituted for an offence under this section without leave of the National Energy Board.

  • 2007, c. 35, s. 150.

Contracts Limiting Liabilities

Marginal note:Contracts limiting liability
  •  (1) Except as provided in this section, no contract, condition or notice made or given by a holder impairing, restricting or limiting its liability in respect of the transmission of oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas relieves the holder from its liability, unless that class of contract, condition or notice is included as a term or condition of its tariffs as filed or has been first authorized or approved by order of the National Energy Board.

  • Marginal note:National Energy Board may determine limits

    (2) The National Energy Board may determine the extent to which the liability of a holder may be impaired, restricted or limited as provided in this section.

  • Marginal note:Terms and conditions

    (3) The National Energy Board may establish the terms and conditions under which oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas may be transmitted by a holder.

  • 2007, c. 35, s. 150.

Transmission of Oil or Gas

Marginal note:Duty of holder of an operating licence or authorization under subsection 5(1)
  •  (1) Subject to any exemptions or conditions that the National Energy Board may establish, a holder operating a pipeline for the transmission of oil shall, according to its powers, without delay and with due care and diligence, receive, transport and deliver all oil and any other substance, including water, incidental to the drilling for or production of oil offered for transmission by means of its pipeline.

  • Marginal note:Orders for transmission of commodities

    (2) The National Energy Board may, by order, on any terms and conditions that it may specify in the order, require a holder operating a pipeline for the transmission of gas to receive, transport and deliver, according to its powers, gas and any other substance, including water, incidental to the drilling for or production of gas offered for transmission by means of its pipeline.

  • Marginal note:Extension of facilities

    (3) If the National Energy Board finds that no undue burden will be placed on the holder by requiring the holder to do so and if it considers it necessary or desirable to do so in the public interest, the Board may require a holder operating a pipeline for the transmission of oil or gas to provide adequate and suitable facilities for

    • (a) the receipt, transmission and delivery of the oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas offered for transmission by means of its pipeline;

    • (b) the storage of the oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas; and

    • (c) the junction of its pipeline with other facilities for the transmission of the oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas.

  • 2007, c. 35, s. 150.

Transmission and Sale of Gas

Marginal note:Extension of services of gas pipeline companies
  •  (1) If the National Energy Board considers it necessary or desirable to do so in the public interest, it may direct a holder operating a pipeline for the transmission of gas to extend or improve its transmission facilities to provide facilities for the junction of its pipeline with any facilities of, and sell gas to, any person or municipality engaged or legally authorized to engage in the local distribution of gas to the public, and for those purposes to construct branch lines to communities immediately adjacent to its pipeline, if the Board finds that to do so will not place an undue burden on the holder.

  • Marginal note:Limitation on extension

    (2) Subsection (1) does not empower the National Energy Board to compel a holder to sell gas to additional customers if to do so would impair its ability to render adequate service to its existing customers.

  • 2007, c. 35, s. 150.
Marginal note:Holder’s powers

 A holder may, for the purposes of its undertaking and subject to the provisions of this Act, transmit oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas by pipeline and regulate the time and manner in which it shall be transmitted and the tolls to be charged for the transmission.

  • 2007, c. 35, s. 150.

Regulations

Marginal note:Regulations

 The Governor in Council may make regulations for the purposes of this Part, designating as oil or gas 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.

  • 2007, c. 35, s. 150.

PART IRegulation of Operations

Regulations

Marginal note:Governor in Council’s regulatory power
  •  (1) The Governor in Council may, for the purposes of safety, the protection of the environment, and accountability as well as for the production and conservation of oil and gas resources, make regulations

    • (a) defining oil and gas, for the purposes of Parts I and II, installation and equipment for the purposes of sections 5.11 and 5.12 and "serious" for the purposes of section 28;

    • (b) concerning the exploration and drilling for, and the production, processing and transportation of, oil or gas in any area to which this Act applies and works and activities related to such exploration, drilling, production, processing and transportation;

    • (b.1) concerning the measures to be taken in preparation for or in the case of a spill, as defined in subsection 24(1), including measures concerning the use of a spill-treating agent;

    • (b.2) concerning the process for the determination of net environmental benefit;

    • (b.3) concerning the variation or revocation of an approval referred to in paragraph 25.1(1)(b);

    • (c) authorizing the National Energy Board, or any person, to make such orders as may be specified in the regulations and to exercise such powers and perform such duties as may be necessary for

      • (i) the management and control of oil or gas production,

      • (ii) the removal of oil or gas from the areas to which this Act applies, and

      • (iii) the design, construction, operation or abandonment of pipeline within the areas to which this Act applies;

    • (d)  concerning arbitrations for the purposes of subsection 5.01(2) including the costs of or incurred in relation to such arbitrations;

    • (e) concerning the approvals to be granted as conditions of authorizations issued under paragraph 5(1)(b);

    • (f) concerning certificates for the purposes of section 5.12;

    • (g) prohibiting the introduction into the environment of substances, classes of substances and forms of energy in prescribed circumstances;

    • (h) authorizing the discharge, emission or escape of oil or gas for the purposes of subsection 24(1), in such quantities, at such locations, under such conditions and by such persons as may be specified in the regulations;

    • (h.1) establishing the requirements for a pooled fund for the purposes of subsection 27(1.01);

    • (h.2) concerning the circumstances under which the National Energy Board may make a recommendation for the purposes of subsection 27.1(1) and the information to be submitted with respect to that recommendation;

    • (h.3) concerning the creation, conservation and production of records; and

    • (i) prescribing anything that is required to be prescribed for the purposes of this Act.

  • Marginal note:Incorporation of standards or specifications

    (2) Unless otherwise provided in this Act, regulations made under subsection (1) may incorporate by reference the standards or specifications of any government, person or organization, either as they read at a fixed time or as amended from time to time.

  • Marginal note:Spill-treating agents

    (3) Regulations made under subsection (1) respecting a spill-treating agent shall be made on the recommendation of the federal Ministers and the Minister of the Environment.

  • R.S., 1985, c. O-7, s. 14;
  • R.S., 1985, c. 36 (2nd Supp.), s. 122;
  • 1992, c. 35, s. 14;
  • 1994, c. 10, s. 7;
  • 2015, c. 4, s. 14.
 
Date modified: