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

Marginal note:Unitization order

• 48.23 (1) The Minister shall issue an order in accordance with the expert’s request under subsection 48.22(2) or (3).

• Marginal note:Effect of unitization order

  (2) The unit agreement and the unit operating agreement have the effect given to them by the Minister’s order.

• Marginal note:Equivalent order

  (3) A unitization order becomes effective only if the appropriate regulator has issued an equivalent order.

• Marginal note:Joint approval

  (4) The issuance of a unitization order by the Minister and of an equivalent order by the regulator is deemed to be their joint approval of the unit agreement and the unit operating agreement.

• Marginal note:Effective date of unitization order

  (5) Subject to subsections (3) and (6), a unitization order becomes effective on the date set out in the order, but that date shall not be less than 30 days after the day on which the order is made.

• Marginal note:Order revoked

  (6) The Minister shall immediately revoke a unitization order that varies a unit agreement or a unit operating agreement if, before the effective date of that order, the applicant files with the Minister a notice withdrawing the application on behalf of the working interest owners or there are filed with the Minister statements objecting to the order and signed

  • (a) in the case of the unit agreement, by

    • (i) one or more working interest owners who own in total more than 25% of the total working interests in the unit area and are part of the group that owns 65% or more of the total working interests as described in subparagraph 48.22(3)(a)(i), and

    • (ii) one or more royalty owners who own in total more than 25% of the total royalty interests in the unit area and are part of the group that owns 65% or more of the total royalty interests as described in subparagraph 48.22(3)(a)(ii); or

  • (b) in the case of the unit operating agreement, by one or more working interest owners who own in total more than 25% of the total working interests in the unit area and are part of the group that owns 65% or more of the total working interests as described in subparagraph 48.22(3)(a)(i).

• Marginal note:Application of sections 43 and 46

  (7) Sections 43 and 46 apply to the unitization order.

Marginal note:Amending unitization order

• 48.24 (1) A unitization order may be amended on the application of a working interest owner submitted to both the Minister and the appropriate regulator.

• Marginal note:Appointment of expert

  (2) The Minister and the regulator shall appoint an expert in accordance with subsections 48.27(2) to (4) for the purposes of this section.

• Marginal note:Hearing

  (3) Once seized of the application, the expert shall hold a hearing at which all interested persons shall be given an opportunity to be heard.

• Marginal note:Conclusion of hearing

  (4) On the conclusion of the hearing, the expert may request that the Minister order the amendment of the unitization order in accordance with the amendment proposed and to include in the order any variations to it that the expert determines are necessary to allow for the more efficient or more economical production of oil or gas from the unitized zone. If the expert makes such a request, the expert shall also request that the appropriate regulator order the amendment of its equivalent order in the same way.

• Marginal note:Exception

  (5) If the expert finds that, on the day on which the hearing begins, one or more working interest owners who own in total 65% or more of the total working interests and one or more royalty interest owners who own in total 65% or more of the total royalty interests in the unit area have consented to the proposed amendment, the expert may end the hearing and request that the Minister amend the unitization order in accordance with the amendment proposed. If the expert makes such a request, the expert shall also request that the appropriate regulator amend its equivalent order in the same way.

• Marginal note:Application of section 48.23

  (6) Section 48.23 applies, with any modifications that the circumstances require, to an amended unitization order.

Marginal note:Protection of tract participation ratios

48.25 No amendment shall be made under section 48.24 that will alter the ratios between the tract participations of those tracts that were qualified for inclusion in the unit area before the commencement of the hearing, and, for the purposes of this section, the tract participations shall be those indicated in the unit agreement when it became subject to a unitization order.

Marginal note:Determination — percentages of interests

48.26 The percentages of interests referred to in subsections 48.21(1), 48.22(3), 48.23(6) and 48.24(5) shall be determined in accordance with section 47.

Referral to Expert

Marginal note:Notice

• 48.27 (1) The party that intends to refer a matter to an expert under subsection 5.1(9), 5.2(6), 48.14(2) or 48.18(2) shall notify the other party of their intention.

• Marginal note:Appointment — single expert

  (2) Within 30 days after the day on which a notice is given under subsection (1) or an application is made under subsection 48.21(1) or 48.24(1), the parties shall agree on the appointment of an expert who shall be seized of the matter.

• Marginal note:Appointment — expert panel

  (3) If the parties do not agree on the appointment of a single expert, they shall, within 30 days after the day on which the period to jointly appoint an expert under subsection (2) ends, each appoint one expert to a panel and those experts shall, in turn, jointly appoint an additional expert as chairperson. If there is no agreement on the appointment of a chairperson within 30 days after the day of the last appointment, the chairperson shall be appointed by the Chief Justice of the Federal Court within 30 days after the period for appointing a chairperson ends. Once the chairperson is appointed, the expert panel shall be seized of the matter.

• Marginal note:Qualifications — expert

  (4) An expert shall be impartial and independent, and have knowledge or experience relative to the subject of disagreement between the parties.

• Marginal note:Decisions

  (5) Decisions of an expert panel shall be made on the basis of a majority vote of the members. The chairperson’s vote is the deciding vote in the case of a tie.

• Marginal note:Time limit

  (6) The expert’s decision shall be made no later than 270 days after the day on which they were seized of the matter.

• Marginal note:Decision is final and binding

  (7) Subject to judicial review, a decision made by an expert is final and binding on all parties specified in the decision from the date specified in it.

• Marginal note:Records to be kept

  (8) An expert shall cause records to be kept of their hearings and proceedings and shall deposit their records with the Minister when their activities to which the records relate have ceased.

PART IIIAppeals and Enforcement

Appeals

Marginal note:Orders and decisions final

• 49 (1) Except as provided in this Act, every decision or order of the Committee is final and conclusive.

• Marginal note:Decision or order defined

  (2) Any minute or other record of the Committee or any document issued by the Committee, in the form of a decision or order, shall for the purposes of this section be deemed to be a decision or order of the Committee.

Marginal note:Stated case for Federal Court

• 50 (1) The Committee may of its own motion, or at the request of the Minister, state a case, in writing, for the opinion of the Federal Court on any question that in the opinion of the Committee is a question of law or of the jurisdiction of the Committee.

• Marginal note:Proceedings thereon

  (2) The Federal Court shall hear and determine the case stated and remit the matter to the Committee with the opinion of the Court thereon.

Marginal note:Governor in Council may review orders of Committee

51 The Governor in Council may at any time, in his discretion, either on petition of any interested person or of his own motion, vary or rescind any decision or order of the Committee made under this Act, whether the order is made between parties or otherwise and any order that the Governor in Council makes with respect thereto becomes a decision or order of the Committee and, subject to section 52, is binding on the Committee and on all parties.

Marginal note:Appeal to Federal Court

• 52 (1) An appeal lies from a decision or order of the Committee to the Federal Court on a question of law, on leave therefor being obtained from the Federal Court, in accordance with the practice of that Court, on application made within one month after the making of the decision or order sought to be appealed from or within such further time as that Court may allow.

• (2) [Repealed, R.S., 1985, c. 36 (2nd Supp.), s. 1]

• Marginal note:Staying order

  (3) Where leave to appeal is granted pursuant to subsection (1), any order of the Committee in respect of which the appeal is made shall be stayed until the matter of the appeal is determined.

• Marginal note:Powers of the Court

  (4) After the hearing of the appeal pursuant to this section, the Supreme Court of Canada shall certify its opinion to the Committee and the Committee shall make any order necessary to comply with the opinion.

• Marginal note:Order subject to section 51

  (5) Any order made by the Committee pursuant to subsection (4), unless the order has already been dealt with by the Governor in Council pursuant to section 51, shall be subject to that section.

Safety and Conservation Officers

Marginal note:Officers

53 The Chief Executive Officer of the Canadian Energy Regulator designates the safety officers and conservation officers necessary for the administration and enforcement of this Act and the regulations from among the employees of the Canadian Energy Regulator.

Marginal note:Powers of officers

• 54 (1) For the purpose of ensuring compliance with this Act and the regulations, a safety officer, the Chief Safety Officer, a conservation officer or the Chief Conservation Officer may at any reasonable time

  • (a) enter any place, including lands, buildings, installations, vessels, vehicles and aircraft, used for any work or activity in respect of which this Act applies, for the purpose of carrying out inspections, examinations, tests or inquiries or of directing that the person in charge of the place carry them out, and the officer may be accompanied by any other person that the officer believes is necessary to help carry out the inspection, examination, test or inquiry;

  • (b) take photographs or make drawings of any place or thing referred to in this section;

  • (c) order that any place or thing referred to in this section not be interfered with for a specified period;

  • (d) require the production, for inspection or copying, of any books, records, documents, licences or permits required by this Act or the regulations;

  • (e) take samples or particulars and carry out, or have carried out, any reasonable tests or examinations; and

  • (f) require the person in charge of the place, or any other person in the place who has knowledge relevant to an inspection, examination, test or inquiry, to furnish information, either orally or in writing, in the form requested.

• Marginal note:Compliance audit

  (2) For greater certainty, the powers set out in subsection (1) include the power to conduct a compliance audit.

Marginal note:Certificate

55 The Chief Executive Officer of the Canadian Energy Regulator must provide every safety officer and conservation officer and the Chief Safety Officer and the Chief Conservation Officer with a certificate of appointment or designation and, on entering any place under this Act, the officer must, upon request, produce the certificate to the person in charge of the place.

Marginal note:Assistance to officers

56 The owner, the person in charge of any place referred to in subsection 54(1) and every person found in the place shall give a safety officer, the Chief Safety Officer, a conservation officer or the Chief Conservation Officer, as the case may be, all reasonable assistance to enable the officer to carry out duties and functions under this Act or the regulations.

Marginal note:Obstruction of officers and making of false statements

57 No person shall obstruct or hinder or make a false or misleading statement, either orally or in writing, to a safety officer, the Chief Safety Officer, a conservation officer or the Chief Conservation Officer who is engaged in carrying out duties and functions under this Act or the regulations.

Marginal note:Power of officers

• 58 (1) A safety officer, the Chief Safety Officer, a conservation officer or the Chief Conservation Officer may order that an operation or activity in any area to which this Act applies cease or be continued only in accordance with the terms of the order if the officer, on reasonable grounds, is of the opinion that its continuation could result in harm to a person, damage to the environment or property or a breach of security, or is not in compliance with this Act or the regulations, and

  • (a) the operation is in relation to the exploration or drilling for or the production, conservation, processing or transportation of oil or gas; or

  • (b) the activity is prohibited by an order or regulation made under section 15.1.

• Marginal note:Notice

  (2) The officer who makes an order under subsection (1) shall affix at or near the scene of the operation a notice of the order in a form approved by the Canadian Energy Regulator.

• Marginal note:Expiry of order

  (3) An order made by a safety officer or a conservation officer under subsection (1) expires 72 hours after it is made unless it is confirmed before that time by order of the Chief Safety Officer or the Chief Conservation Officer, as the case may be.

• Marginal note:Modification or revocation

  (4) A safety officer or a conservation officer who makes an order under subsection (1) shall immediately so advise the Chief Safety Officer or the Chief Conservation Officer, as the case may be, and that Chief Officer may modify or revoke the order.

• Marginal note:Referral for review

  (5) A person carrying out an operation to which an order made under subsection (1) refers, or any person having a pecuniary interest in that operation, may, by notice in writing, request the Chief Safety Officer or the Chief Conservation Officer, as the case may be, to refer the order to the Commission of the Canadian Energy Regulator for a review of the need for the order under section 386 of the Canadian Energy Regulator Act and, on receiving the notice, that Chief Officer must refer the order accordingly.

• Marginal note:Prohibition

  (6) A person is prohibited from continuing an operation in respect of which an order has been made under this section, except in accordance with the terms of the order or until the order has been set aside by the Commission of the Canadian Energy Regulator under section 386 of the Canadian Energy Regulator Act.

• (7) to (9) [Repealed, 1994, c. 10, s. 12]