National Energy Board Act (R.S.C., 1985, c. N-7)

Act current to 2019-06-20 and last amended on 2018-03-29. Previous Versions

PART VIExports and Imports (continued)

DIVISION IVOffences, Punishment and Enforcement (continued)

Marginal note:Powers of certain officers

 An officer as defined in 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 this Part relating to the immediate disposition of oil or gas seized, the provisions of that Act and any regulations made under that Act respecting search, detention, seizure, forfeiture, condemnation and disposition apply, with such modifications as the circumstances require, to oil or gas tendered for export or import or exported or imported or otherwise dealt with contrary to this Part.

  • R.S., 1985, c. N-7, s. 122
  • R.S., 1985, c. 1 (2nd Supp.), s. 213

PART VIIInterprovincial Oil and Gas Trade

Interpretation

Marginal note:Definitions

 In this Part,

designated oil or gas

designated oil or gas means oil or gas, or both, or any quality or kind thereof, that is the subject of an order made pursuant to subsection 124(1); (pétrole ou gaz désigné)

designated province or area

designated province or area means a province or the offshore area or both, as referred to in an order made pursuant to subsection 124(1); (région désignée)

movement

movement, in respect of oil or gas, excludes an export thereof; (acheminement)

offshore area

offshore area means Sable Island or any area of land not within a province that belongs to Her Majesty in right of Canada or in respect of which Her Majesty in right of Canada has the right to dispose of or exploit the natural resources and that is situated in submarine areas in the internal waters of Canada, the territorial sea of Canada or the continental shelf of Canada. (zone extracôtière)

  • R.S., 1985, c. N-7, s. 123
  • 1996, c. 31, s. 91
  • 2004, c. 25, s. 163(F)

Control by Board

Marginal note:Direction to Board

  •  (1) The Governor in Council may, by order, direct that the Board assume supervision and control of the movement of designated oil or gas out of a designated province or area.

  • Marginal note:Licence required

    (2) Where an order has been made under subsection (1) and while it remains in force, no person shall, except as otherwise authorized by the regulations, move designated oil or gas out of the designated province or area except under the authority of and in accordance with a licence issued under this Part.

  • 1980-81-82-83, c. 116, s. 29

Issue of Licences

Marginal note:Issue of licences

  •  (1) Subject to the regulations, the Board may, on such terms and conditions as it may impose, issue a licence to any person permitting the movement of designated oil or gas out of the designated province or area.

  • Marginal note:Compliance

    (2) Every licence is subject to the conditions that

    • (a) the provisions of this Act and the regulations in force on the date of issue of the licence and as subsequently enacted, made or amended, as well as every order made under this Act, will be complied with; and

    • (b) the provisions of the Energy Administration Act and the regulations, if any, made under that Act applicable to the designated oil or gas in respect of which the licence is issued will be complied with.

  • 1980-81-82-83, c. 116, s. 29

Marginal note:Criteria

  •  (1) On an application for a licence, the Board shall have regard to all considerations that appear to it to be relevant, including the equitable distribution of designated oil or gas in Canada.

  • Marginal note:Revocation and suspension of licences

    (2) Section 119 applies in respect of a licence issued under this Part.

  • R.S., 1985, c. N-7, s. 126
  • 1990, c. 7, s. 40(E)

Regulations

Marginal note:Regulations

 The Governor in Council may make regulations for carrying into effect the purposes and provisions of this Part, including regulations respecting

  • (a) the information to be furnished by applicants for licences and the procedure to be followed in applying for licences and in issuing licences;

  • (b) the duration of licences from a date to be fixed in the licence, the approval required in respect of the issue of licences, the quantities that may be moved out of the designated province or area under the authority of a licence, and any other terms or conditions to which licences may be subject;

  • (c) units of measurement and measuring instruments or devices to be used in connection with the movement of designated oil or gas out of the designated province or area; and

  • (d) the inspection of any instruments, devices, plant, equipment, books, records or accounts or any other thing used for or in connection with the movement of designated oil or gas out of the designated province or area.

  • R.S., 1985, c. N-7, s. 127
  • 1990, c. 7, s. 41(E)

Offences, Punishment and Enforcement

Marginal note:Offence and punishment

  •  (1) Every person who contravenes any of the provisions of this Part or the regulations made under this Part is guilty of an offence and liable

    • (a) on summary conviction, to a fine not exceeding one hundred thousand dollars or to imprisonment for a term not exceeding one year or to both; or

    • (b) on conviction on indictment, to a fine not exceeding one million dollars or to imprisonment for a term not exceeding five years or to both.

  • Marginal note:Application of subsections 121(2) to (5)

    (2) Subsections 121(2) to (5) apply, with such modifications as the circumstances require, in respect of an offence under this Part.

  • 1980-81-82-83, c. 116, s. 29

PART VIIIGeneral

Regulations

Marginal note:Regulations respecting accounts, etc.

  •  (1) The Board may, with the approval of the Governor in Council, make regulations

    • (a) respecting the manner in which the accounts of a company shall 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 method or 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

      • (i) companies that have been authorized under Part III to construct or operate a pipeline,

      • (i.1) companies that have been granted the leave required by paragraph 74(1)(d),

      • (ii) persons exporting oil, gas or electricity or importing oil or gas, and

      • (iii) persons holding a licence under Part VI or VII,

      to keep and make available to the Board for inspection by the Board or a person authorized by the Board at a place of business in Canada such records, books of account and other documents in such form as may be prescribed by the regulations and submit to the Board, at such times and in such form as may be so prescribed, returns and information respecting capital, traffic, revenues, expenses and other matters so prescribed and deemed by the Board to be matters that should be considered by it in carrying out its powers and duties under this Act in relation to those companies and persons.

  • Marginal note:Exemptions

    (1.1) The Board may, by order made on such terms and conditions as it considers appropriate, exempt a company or person from the application of a regulation made under subsection (1).

  • Marginal note:Contravention and punishment

    (2) Every person who contravenes a regulation made under this section is guilty of an offence punishable on summary conviction.

  • R.S., 1985, c. N-7, s. 129
  • 1990, c. 7, s. 42
  • 2004, c. 25, s. 164(F)
  • 2015, c. 21, s. 36

Marginal note:General regulations

  •  (1) The Governor in Council may make regulations for carrying the purposes and provisions of this Act into effect and may, by those regulations, designate as an oil product or as a gas product 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.

  • Marginal note:Exemptions

    (2) The Governor in Council may by regulation exempt any oil or gas or any kind, quality or class thereof or any area or transaction from the operation of all or any of the provisions of this Act.

  • R.S., c. N-6, s. 89
  • 1980-81-82-83, c. 116, s. 31
 
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