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Canada–Newfoundland and Labrador Atlantic Accord Implementation Act (S.C. 1987, c. 3)

Act current to 2022-06-20 and last amended on 2020-02-26. Previous Versions

PART IIIPetroleum Operations (continued)

Oil and Gas Committee (continued)

Enforcement

Marginal note:Enforcement of Committee orders

  •  (1) Any order made by the Committee may, for the purpose of its enforcement, be made an order of the Supreme Court of Newfoundland and Labrador and shall be enforced in the same manner as any order of that Court.

  • Marginal note:Procedure for enforcement

    (2) To make an order of the Committee an order of the Supreme Court of Newfoundland and Labrador, the practice and procedure established by the Provincial Act for making any order an order of that Court may be followed.

  • Marginal note:When order rescinded or replaced

    (3) When an order of the Committee has been made an order of the Supreme Court of Newfoundland and Labrador, any order of the Committee, or of the Board under section 186, rescinding or replacing the first mentioned order of the Committee, has the effect of cancelling the order of the Court and may in the same manner be made an order of the Court.

  • 1987, c. 3, s. 148
  • 2014, c. 13, s. 26

DIVISION IRegulation of Operations

Regulations

Marginal note:Governor in Council’s regulatory power

  •  (1) Subject to section 7, 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 petroleum resources, make regulations

    • (a) defining oil and gas for the purposes of Divisions I and II, installation and equipment for the purposes of sections 139.1 and 139.2 and serious for the purposes of section 165;

    • (b) concerning the exploration and drilling for, and the production, processing and transportation of, petroleum 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 160(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 161.1(1)(b);

    • (c) authorizing the 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 petroleum production,

      • (ii) the removal of petroleum from the offshore area, and

      • (iii) the design, construction, operation or abandonment of pipeline within the offshore area;

    • (d) concerning arbitration for the purposes of subsection 138.1(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 138(1)(b);

    • (f) concerning certificates for the purposes of section 139.2;

    • (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 petroleum for the purposes of subsection 160(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 163(1.01);

    • (h.2) concerning the circumstances under which the Board may make a recommendation for the purposes of subsection 163.1(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 Part.

  • Marginal note:Incorporation of standards or specifications

    (2) Unless otherwise provided in this Part, regulations made under subsection (1) may incorporate by reference the standards or specifications of any government, person or organization, either as of 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, in addition to the requirements set out in subsection 7(1), be made on the recommendation of the Federal Minister and the Minister of the Environment.

  • 1987, c. 3, s. 149
  • 1992, c. 35, s. 63
  • 2015, c. 4, ss. 54, 117

Marginal note:Amendments to Schedule 1 or 2

  •  (1) The Governor in Council may, by order, amend Schedule 1 or 2 to add, amend or remove a reference to a federal Act or regulation, or to a provision of a federal Act or regulation.

  • Marginal note:Recommendation

    (2) The order shall be made on the recommendation of the Federal Minister and every minister responsible for the administration of the provision.

  • 2015, c. 4, s. 55

Marginal note:Publication of proposed regulations

  •  (1) Subject to subsection (2), a copy of each regulation that the Governor in Council proposes to make under this Division shall be published in the Canada Gazette and a reasonable opportunity shall be afforded to interested persons to make representations to the Federal Minister with respect thereto.

  • Marginal note:Single publication required

    (2) No proposed regulation need be published more than once under subsection (1) whether or not it is altered or amended after such publication as a result of representations made by interested persons as provided in that subsection.

  • 1987, c. 3, s. 150
  • 1994, c. 26, s. 14(F)

Marginal note:Equivalent standards and exemptions

  •  (1) Subject to subsection (2), the Chief Safety Officer and Chief Conservation Officer may

    • (a) authorize the use of equipment, methods, measures or standards in lieu of any required by any regulation made under section 149, if those Officers are satisfied that the use of that other equipment and those other methods, measures or standards would provide a level of safety, protection of the environment and conservation equivalent to that provided by compliance with the regulations; or

    • (b) grant an exemption from any requirement imposed, by any regulation made under section 149, in respect of equipment, methods, measures or standards, if those Officers are satisfied with the level of safety, protection of the environment and conservation that will be achieved without compliance with that requirement.

  • Marginal note:One officer authorizations

    (2) The Chief Safety Officer alone may exercise the powers referred to in paragraph (1)(a) or (b) if the regulatory requirement referred to in that paragraph does not relate to protection of the environment or conservation, and the Chief Conservation Officer alone may exercise those powers if the regulatory requirement does not relate to safety.

  • Marginal note:No contravention

    (3) No person contravenes the regulations if that person acts in compliance with an authorization or exemption under subsection (1) or (2).

  • 1987, c. 3, s. 151
  • 1992, c. 35, s. 64
  • 2014, c. 13, s. 27

Marginal note:Guidelines and interpretation notes

  •  (1) The Board may issue and publish, in any manner the Board considers appropriate, guidelines and interpretation notes with respect to the application and administration of sections 45, 138 and 139 and subsection 163(1.01) and any regulations made under sections 29.1 and 149.

  • Marginal note:Deemed not to be statutory instruments

    (2) Guidelines and interpretation notes issued pursuant to subsection (1) shall be deemed not to be statutory instruments for the purposes of the Statutory Instruments Act.

  • 1987, c. 3, s. 151.1
  • 1992, c. 35, s. 65
  • 2015, c. 4, s. 56

 [Repealed, 2014, c. 13, s. 28]

Production Orders

Marginal note:Production orders

  •  (1) Where the Chief Conservation Officer, on reasonable grounds, is of the opinion that, with respect to an interest in any portion of the offshore area, the capability exists to commence, continue or increase production of petroleum and that a production order would stop waste, the Chief Conservation Officer may order the commencement, continuation or increase of production of petroleum at such rates and in such quantities as are specified in the order.

  • Marginal note:Ceasing production

    (2) Where the Chief Conservation Officer, on reasonable grounds, is of the opinion that an order under this section would stop waste, the Chief Conservation Officer may order a decrease or the cessation or suspension of production of petroleum for any period specified in the order.

  • Marginal note:Investigation and appeal

    (3) Subsections 155(2) to (4) and section 157 apply, with such modifications as the circumstances require, to an order under subsection (1) or (2) as if it were an order under subsection 155(1).

  • Marginal note:Access to files and records

    (4) A person subject to an order under subsection (1) or (2) shall, on request, afford the Chief Conservation Officer or a person designated by the Chief Conservation Officer access to premises, files and records for all reasonable purposes related to the order.

  • 1987, c. 3, s. 153
  • 1992, c. 35, s. 67

Waste

Marginal note:Waste prohibited

  •  (1) Subject to subsection 194(5), any person who commits waste is guilty of an offence under this Division, but a prosecution may be instituted for such an offence only with the consent of the Board.

  • Definition of waste

    (2) In this Part, waste, in addition to its ordinary meaning, means waste as understood in the petroleum industry and in particular, but without limiting the generality of the foregoing, includes

    • (a) the inefficient or excessive use or dissipation of reservoir energy;

    • (b) the locating, spacing or drilling of a well within a field or pool or within part of a field or pool or the operating of any well that, having regard to sound engineering and economic principles, results or tends to result in a reduction in the quantity of petroleum ultimately recoverable from a pool;

    • (c) the drilling, equipping, completing, operating or producing of any well in a manner that causes or is likely to cause the unnecessary or excessive loss or destruction of petroleum after removal from the reservoir;

    • (d) the inefficient storage of petroleum above ground or underground;

    • (e) the production of petroleum in excess of available storage, transportation or marketing facilities;

    • (f) the escape or flaring of gas that could be economically recovered and processed or economically injected into an underground reservoir; or

    • (g) the failure to use suitable artificial, secondary or supplementary recovery methods in a pool when it appears that such methods would result in increasing the quantity of petroleum ultimately recoverable under sound engineering and economic principles.

Marginal note:Prevention of waste

  •  (1) Where the Chief Conservation Officer on reasonable grounds is of the opinion that waste, other than waste as defined in paragraph 154(2)(f) or (g), is being committed, the Chief Conservation Officer may, subject to subsection (2), order that all operations giving rise to such waste cease until the Chief Conservation Officer is satisfied that the waste has stopped.

  • Marginal note:Investigation

    (2) Before making any order under subsection (1), the Chief Conservation Officer shall hold an investigation at which interested persons shall be given an opportunity to be heard.

  • Marginal note:Peremptory

    (3) Notwithstanding subsection (2), the Chief Conservation Officer may, without an investigation, make an order under this section requiring all operations to be shut down if in the opinion of the Chief Conservation Officer it is necessary to do so to prevent damage to persons or property or to protect the environment, but as soon as possible after making any such order and in any event within fifteen days thereafter, the Chief Conservation Officer shall hold an investigation at which interested persons shall be given an opportunity to be heard.

  • Marginal note:Order after inquiry

    (4) At the conclusion of an investigation under subsection (3), the Chief Conservation Officer may set aside, vary or confirm the order made or make a new order.

  • 1987, c. 3, s. 155
  • 1992, c. 35, s. 68

Marginal note:Taking over management

  •  (1) For the purpose of giving effect to an order made under section 155, the Chief Conservation Officer may authorize such persons as may be necessary to enter the place where the operations giving rise to the waste are being carried out and take over the management and control of those operations and any works connected therewith.

  • Marginal note:Controlling operations and costs thereof

    (2) A person authorized under subsection (1) to take over the management and control of operations shall manage and control those operations and do all things necessary to stop the waste, and the cost thereof shall be borne by the person who holds the permit or the lease and, until paid, constitutes a debt recoverable by action in any court of competent jurisdiction as a debt due to the Board.

  • 1987, c. 3, s. 156
  • 1992, c. 35, s. 69(F)

Marginal note:Appeal to Committee

  •  (1) A person aggrieved by an order of the Chief Conservation Officer after an investigation under section 155 may appeal to the Committee to have the order reviewed.

  • Marginal note:Powers on appeal

    (2) After hearing the appeal, the Committee may

    • (a) set aside, confirm or vary the order made by the Chief Conservation Officer;

    • (b) order such works to be undertaken as may be considered necessary to prevent waste, the escape of petroleum or any other contravention of this Division or the regulations; or

    • (c) make such other or further order as the Committee considers appropriate.

  • 1987, c. 3, s. 157
  • 1992, c. 35, s. 70(F)

Marginal note:Waste by failure to utilize gas or to use appropriate recovery methods

  •  (1) When the Chief Conservation Officer on reasonable grounds is of the opinion that waste as defined in paragraph 154(2)(f) or (g) is occurring in the recovery of petroleum from a pool, the Chief Conservation Officer may apply to the Committee for 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 Committee should not make a direction in respect thereof.

  • Marginal note:Hearing

    (2) On the day specified in the order under subsection (1), the Committee shall hold a hearing at which the Chief Conservation Officer, the operators and other interested persons shall be given an opportunity to be heard.

  • 1987, c. 3, s. 158
  • 1992, c. 35, s. 71(F)

Marginal note:Order

  •  (1) If, after the hearing mentioned in section 158, the Committee is of the opinion that waste as defined in paragraph 154(2)(f) or (g) is occurring in the recovery of petroleum from a pool, the Committee may, by order,

    • (a) direct the introduction of a scheme for the collection, processing, disposition or reinjection of any gas produced from such pool, or

    • (b) direct repressurizing, recycling or pressure maintenance for the pool or any part of the pool and for, or incidental to such purpose, direct the introduction or injection into that pool, or part thereof, of gas, water or other substance,

    and the order may further direct that the pool or part thereof specified in the order be shut in if the requirements of the order are not met or unless a scheme is approved by the Committee and in operation by a date fixed by the order.

  • Marginal note:Continuation pending approval of scheme

    (2) Notwithstanding subsection (1), the Committee may permit the continued operation of a pool or any part of a pool after the date fixed by an order under subsection (1) if in the opinion of the Committee a scheme for the repressurizing, recycling or pressure maintenance or the processing, storage or disposal of gas is in course of preparation, but any such continuation of operations is subject to any conditions imposed by the Committee.

 
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