PART 7Exports and Imports (continued)
DIVISION 5Offences and Punishment (continued)
Marginal note:Powers of certain officers
380 An officer as defined in subsection 2(1) of the Customs Act has, in respect of the exportation or importation of oil or gas, all the powers of an officer under the Customs Act and, except to the extent that they are inconsistent with any regulations made under paragraph 353(1)(e), the provisions of that Act and any regulations made under that Act respecting search, detention, seizure, forfeiture, condemnation and disposition apply, with any modifications that the circumstances require, to oil or gas tendered for exportation or importation or exported or imported or otherwise dealt with contrary to this Part.
PART 8Oil and Gas Interests, Production and Conservation
Marginal note:Definitions of oil and gas
Declarations of Significant Discovery and Commercial Discovery
382 (1) This section applies to any decision of the Commission to make, amend or revoke a declaration of significant discovery under section 28 of the Canada Petroleum Resources Act or a declaration of commercial discovery under section 35 of that Act.
(2) At least 30 days before making a decision to which this section applies, the Commission must give written notice of its intention to make the decision to any person the Commission considers to be directly affected by the decision.
Marginal note:Request for hearing
(3) A person to whom notice is given may, in writing, request a hearing in respect of the decision, but the request must be received by the Commission within 30 days after the day on which notice is given.
Marginal note:No request for hearing
(4) If no request is received in accordance with subsection (3), the Commission may make the decision.
(5) If a request is received in accordance with subsection (3), the Commission must fix a time and place for the hearing and notify each person who requested the hearing.
(6) Each person who requests a hearing may make representations and introduce witnesses and documents at the hearing.
(7) The Commission must make its decision and give notice of that decision to each person who requested the hearing and, on that person’s request, the Commission must make the reasons for its decision public.
Operating Licences and Authorizations
Marginal note:Variation of licences or authorizations
383 The Commission or a person to whom powers are delegated under section 4.1 of the Canada Oil and Gas Operations Act may vary the conditions of any operating licence or authorization issued under section 5 of that Act.
Chief Conservation Officer and Chief Safety Officer
Marginal note:Application to appeals
384 (1) This section applies to appeals brought under section 21 or subsection 25(8) of the Canada Oil and Gas Operations Act by a person aggrieved by an order of the Chief Conservation Officer or by any action or measure taken or authorized or directed to be taken by that Officer, other than the referral of an order to the Commission under subsection 58(5) of that Act.
(2) After hearing an appeal to which this section applies, the Commission may
(a) set aside, confirm or vary the order, action or measure that is the subject of the appeal;
(b) order any works to be undertaken that the Commission considers necessary to prevent waste, the escape of oil or gas or any other contravention of the Canada Oil and Gas Operations Act or the regulations made under that Act; or
(c) make any other order that the Commission considers appropriate.
Marginal note:Show cause hearing relating to waste
385 (1) This section applies to applications by the Chief Conservation Officer to the Commission under section 22 of the Canada Oil and Gas Operations Act for a show cause hearing relating to waste, as defined in paragraph 18(2)(f) or (g) of that Act, in the recovery of oil or gas from a pool.
(2) On receiving an application, the Commission must make an order requiring the operators within the pool to show cause at a hearing, to be held on a day specified in the order, why the Commission should not make a direction in respect of the waste.
(3) On the day specified in the order, the Commission must hold a hearing at which the Chief Conservation Officer, the operators and other interested persons must be given an opportunity to be heard.
(4) If, after the hearing, the Commission considers that waste is occurring in the recovery of oil or gas from a pool, it may, by order,
(a) direct the introduction of a scheme for the collection, processing, disposition or reinjection of any gas produced from the pool; or
(b) direct repressurizing, recycling or pressure maintenance for the pool or any part of the pool and for or incidental to that purpose, direct the introduction or injection of gas, water or any other substance into the pool or any part of the pool.
Marginal note:Additional order
(5) In addition to making an order under subsection (4), the Commission may, by order, direct that the pool or any part of the pool specified in the order be shut in if the requirements of the order are not met or unless a scheme is approved by the Commission and in operation by a date fixed in the order.
Marginal note:Continuation pending approval
(6) Despite subsections (4) and (5), the Commission may, by order, permit the continued operation of a pool or any part of a pool after the date fixed by an order made under this section if the Commission considers that a scheme or other action described in paragraph (4)(a) or (b) is in the course of preparation, but the continued operation is subject to any conditions the Regulator imposes.
Marginal note:Review and decision
(2) The Commission must review the need for the order and may confirm it or set it aside.
Marginal note:Burden of proof
(3) The burden of establishing that the order is not needed is on the person who requested that the order be referred to the Commission.
Marginal note:Offence and punishment
387 (1) Every person who fails to comply with an order of the Commission under section 384 or 385 is guilty of an offence and liable
(a) on summary conviction, to a fine not exceeding $100,000 or to imprisonment for a term not exceeding one year, or to both; or
(b) on conviction on indictment, to a fine not exceeding $1,000,000 or to imprisonment for a term not exceeding five years, or to both.
Marginal note:Due diligence
(2) A person is not to be found guilty of an offence under subsection (1) if they establish that they exercised due diligence to prevent the commission of the offence.
Marginal note:Applicable provisions
(3) Sections 65 to 71 of the Canada Oil and Gas Operations Act apply, with any modifications that the circumstances require, in respect of an offence under subsection (1).
Marginal note:Statutory Instruments Act
Marginal note:Regulations respecting accounts, etc.
389 (1) The Regulator may, with the approval of the Governor in Council, make regulations
(a) respecting the manner in which the accounts of a company must be kept;
(b) respecting the classes of property for which depreciation charges may properly be included under operating expenses in the accounts and the accounting methods that may be used in computing and charging depreciation in respect of each of the classes of property;
(c) respecting a uniform system of accounts applicable to any class of company; and
(d) requiring that any of the following persons and companies keep and make available for inspection, in the form that may be prescribed by the regulations, at a place of business in Canada any records, books of account and other documents and submit to the Regulator, at any time and in any form that may be prescribed, returns and information respecting capital, traffic, revenues, expenses and other matters that are prescribed and that the Regulator determines are matters that should be considered by it in carrying out its powers and duties under this Act in relation to those companies and persons
(i) companies that have been authorized to construct or operate a pipeline,
(ii) companies that have been authorized to abandon the operation of a pipeline under subsection 241(1),
(iii) persons exporting oil, gas or electricity, and
(iv) persons holding a licence under Part 7.
(2) The Regulator may, by order, on any conditions it considers appropriate, exempt a company or person from the application of a regulation made under subsection (1).
(3) Every person who contravenes a regulation made under this section is guilty of an offence punishable on summary conviction.
Marginal note:Due diligence
(4) A person is not to be found guilty of an offence under subsection (3) if they establish that they exercised due diligence to prevent the commission of the offence.
390 (1) The Governor in Council may make regulations for the purposes of this Act, including regulations
(a) designating as an oil product or as a gas product any substance resulting from the processing or refining of hydrocarbons or coal if that substance
(i) is asphalt or a lubricant, or
(ii) is a source of energy by itself or when it is combined or used in association with something else; and
(b) exempting any oil or gas or any kind, quality or class of oil or gas or any area or transaction from all or any of the provisions of this Act.
(2) Regulations may only be made under paragraph (1)(b) after consultation with the Regulator.
Marginal note:Security regulations
391 (1) The Regulator may, with the approval of the Governor in Council, make regulations respecting the security of pipelines, international power lines and offshore renewable energy projects, including regulations respecting standards, plans and audits.
Marginal note:Offence and punishment
(2) Every person who contravenes a regulation made under subsection (1) is guilty of an offence and liable
(a) on summary conviction, to a fine not exceeding $100,000 or to imprisonment for a term not exceeding one year or to both; or
(b) on conviction on indictment, to a fine not exceeding $500,000 or to imprisonment for a term not exceeding five years or to both.
Marginal note:Due diligence
(3) A person is not to be found guilty of an offence under subsection (2) if they establish that they exercised due diligence to prevent the commission of the offence.
Review of Act
Marginal note:Review of Act after 10 years
392 Ten years after the day on which this Act comes into force, a comprehensive review of the provisions and operation of the Act is to be undertaken by the committee of the Senate, of the House of Commons or of both Houses of Parliament that is designated or established by the Senate or the House of Commons, or by both Houses of Parliament, as the case may be, for that purpose.
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