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Canadian Energy Regulator Act (S.C. 2019, c. 28, s. 10)

Act current to 2021-09-11 and last amended on 2020-07-01. Previous Versions

PART 3Pipelines (continued)

Abandonment (continued)

Marginal note:Costs and expenses related to abandonment

  •  (1) The Commission may order a company to take any measure, including maintaining funds or security, that the Commission considers necessary to ensure that the company has the ability to pay for the abandonment of its pipeline and to pay any costs and expenses related to its abandoned pipeline.

  • Marginal note:Funds or security

    (2) If the Commission orders a company to maintain funds or security, the Commission may

    • (a) order the company to use all or a portion of the funds or security to pay for the abandonment of the pipeline or to pay the costs and expenses related to the abandoned pipeline;

    • (b) authorize a third party or an employee of the Regulator — or class of employees of the Regulator — to use all or a portion of the funds or security to pay for that abandonment or to pay those costs and expenses;

    • (c) realize all or a portion of the security in order to enable a third party or the Regulator to pay for that abandonment or to pay those costs and expenses; and

    • (d) order that any surplus referred to in subsection 246(2) be paid into the Consolidated Revenue Fund and credited to the Orphan Pipelines Account.

Marginal note:Orphan pipelines

  •  (1) A designated officer may, by order, designate a pipeline as an orphan pipeline if the directors or officers of the company that holds the certificate in respect of the pipeline cannot be located or if that company is unknown, insolvent, bankrupt, subject to a receivership, dissolved or cannot be located.

  • Marginal note:Holder of certificate

    (2) For the purposes of subsection (1), a person that is named in an order made under section 214 in respect of the pipeline, or that is authorized under a Special Act to operate the pipeline, is considered to be the company that holds the certificate.

Marginal note:Orphan abandoned pipelines

 A designated officer may, by order, designate an abandoned pipeline as an orphan abandoned pipeline if the directors or officers of the company that owns it cannot be located or if that company is unknown, insolvent, bankrupt, subject to a receivership, dissolved or cannot be located.

Marginal note:Measures

  •  (1) A designated officer may take any action or measure that they consider necessary in relation to the abandonment of an orphan pipeline or in relation to an orphan abandoned pipeline or they may authorize a third party or an employee of the Regulator — or class of employees of the Regulator — to take the action or measure.

  • Marginal note:No liability

    (2) No action lies against the Regulator or an employee of the Regulator or against a servant of the Crown, as those terms are defined in section 2 of the Crown Liability and Proceedings Act, in respect of any act or omission committed in taking any action or measure referred to in subsection (1).

  • Marginal note:Third party liability

    (3) A third party that is authorized under subsection (1) to take any action or measure referred to in that subsection is not liable in respect of any act or omission committed in good faith in taking those actions or measures.

Marginal note:Orphan Pipelines Account

  •  (1) There is established an account in the accounts of Canada to be called the Orphan Pipelines Account.

  • Marginal note:Amounts credited to Account

    (2) If a pipeline is abandoned, the surplus determined in accordance with the formula set out in subsection (3) may be paid into the Consolidated Revenue Fund and credited to the Orphan Pipelines Account, if the Commission considers it appropriate.

  • Marginal note:Calculation of surplus

    (3) The amount of the surplus is determined in accordance with the formula

    A − B

    where

    A
    is the amount of funds or security that a company has been ordered to maintain under subsection 242(1); and
    B
    is the total of all amounts that are both:
    • (a) the subject of an order made under paragraph 242(2)(a) or an authorization given under paragraph 242(2)(b) or realized under paragraph 242(2)(c), and

    • (b) they are used to pay for the abandonment of the pipeline or to pay the costs and expenses related to the abandoned pipeline.

  • Marginal note:Interest to be credited to Account

    (3.1) On April 1 of every year there is to be credited to the Orphan Pipelines Account an amount representing interest, at the rate fixed for the purposes of subsection 21(2) of the Financial Administration Act, on the balance to the credit of the Account.

  • Marginal note:Amounts payable out of Account

    (4) Any amounts required for the purpose of paying the costs and expenses of any action or measure taken under subsection 245(1) may be paid out of the Consolidated Revenue Fund and charged to the Orphan Pipelines Account if the Commission considers it appropriate and

    • (a) the funds or security referred to in subsection 242(1) are insufficient; or

    • (b) the company is not the subject of an order under subsection 242(1).

  • Marginal note:Limit on payments

    (5) A payment must not be made out of the Consolidated Revenue Fund under subsection (4) in excess of the amount of the balance to the credit of the Account.

  • Marginal note:Liability of company

    (6) A payment made out of the Orphan Pipelines Account in respect of a pipeline does not affect the liability under this Act of a company that has been granted leave to abandon a pipeline.

PART 4International and Interprovincial Power Lines

International Power Lines

Marginal note:Prohibition

 A person must not construct or operate a section or part of an international power line except in accordance with a permit issued under section 248 or a certificate issued under section 262.

Permits

Marginal note:Issuance

  •  (1) On application, the Commission must, subject to section 8 of the Impact Assessment Act, issue a permit authorizing the construction and operation of an international power line, except in the case of a power line that is designated by order of the Governor in Council under paragraph 258(1)(a) or in respect of which an election is made under section 259.

  • Marginal note:Information

    (2) The application must be accompanied by the information that under the regulations is to be furnished in connection with the application.

Marginal note:Publication

  •  (1) The applicant must cause to be published a notice of the application in the Canada Gazette and any other publications that the Commission considers appropriate.

  • Marginal note:Waiver

    (2) The Commission may waive the requirement to publish the notice if it considers that there is a critical shortage of electricity caused by a terrorist activity, as defined in subsection 83.01(1) of the Criminal Code.

Location and Construction under Provincial Law

Marginal note:Provincial regulatory agency

 The lieutenant governor in council of a province may designate as the provincial regulatory agency the lieutenant governor in council of the province, a provincial minister of the Crown or any other person or a board, commission or other tribunal.

Marginal note:Application

 Sections 253 and 254 apply in respect of those parts of international power lines that are within a province in which a provincial regulatory agency is designated under section 250 but do not apply in the case of international power lines in respect of which an election is filed under section 259.

Marginal note:Laws of a province

 For the purposes of sections 253 to 255, a law of a province is in relation to lines for the transmission of electricity from a place in the province to another place in that province if the law is in relation to any of the following matters:

  • (a) the determination of their location or detailed route;

  • (b) the acquisition, including by expropriation, or lease of land required for the purposes of those lines, the power to so acquire or lease land and the procedure for so acquiring or leasing it;

  • (c) assessments of their impact on the environment;

  • (d) the protection of the environment against the consequences of the construction, operation and abandonment of those lines, and the mitigation of their effects on the environment;

  • (e) their construction and operation and the procedure to be followed in abandoning their operation.

 
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