Government of Canada / Gouvernement du Canada
Symbol of the Government of Canada

Search

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

Act current to 2021-09-11 and last amended on 2020-02-26. Previous Versions

Purpose

Marginal note:Purpose

 The purpose of this Act is to promote, in respect of the exploration for and exploitation of oil and gas,

  • (a) safety, particularly by encouraging persons exploring for and exploiting oil or gas to maintain a prudent regime for achieving safety;

  • (b) the protection of the environment;

  • (b.01) accountability in accordance with the “polluter pays” principle;

  • (b.1) the safety of navigation in navigable waters;

  • (c) the conservation of oil and gas resources;

  • (d) joint production arrangements; and

  • (e) economically efficient infrastructures.

  • 1992, c. 35, s. 4
  • 2007, c. 35, s. 146
  • 2012, c. 19, s. 117
  • 2015, c. 4, s. 3

Application

Marginal note:Application

 This Act applies in respect of the exploration and drilling for and the production, conservation, processing and transportation of oil and gas in

  • (a) that part of the onshore that is under the administration of a federal minister,

  • (b) Nunavut,

  • (c) Sable Island,

  • (d) that part — of the internal waters of Canada or the territorial sea of Canada — that is not situated

    • (i) in a province other than the Northwest Territories, or

    • (ii) in that part of the onshore that is not under the administration of a federal minister, and

  • (e) the continental shelf of Canada and the waters superjacent to the seabed of that continental shelf,

other than of oil and gas in the adjoining area, as defined in section 2 of the Yukon Act.

  • R.S., 1985, c. O-7, s. 3
  • 1993, c. 28, s. 78
  • 1996, c. 31, s. 93
  • 1998, c. 5, s. 11, c. 15, ss. 36(E), 49
  • 2014, c. 2, s. 21

Chief Safety Officer and Chief Conservation Officer

Marginal note:Designation

 The Chief Executive Officer of the Canadian Energy Regulator may, for the purposes of this Act, designate an employee of the Canadian Energy Regulator to be the Chief Safety Officer and the same or another employee of that Regulator to be the Chief Conservation Officer.

Statutory Instruments Act

Marginal note:Orders

 For greater certainty, an order made by a safety officer, the Chief Safety Officer, a conservation officer, the Chief Conservation Officer, the Committee or the Commission of the Canadian Energy Regulator is not a statutory instrument as defined in the Statutory Instruments Act.

Prohibition

Marginal note:Prohibition

 No person shall carry on any work or activity related to the exploration or drilling for or the production, conservation, processing or transportation of oil or gas in any area to which this Act applies unless

  • (a) that person is the holder of an operating licence issued under paragraph 5(1)(a);

  • (b) that person is the holder of an authorization issued, before the commencement of operations, under paragraph 5(1)(b) for each such work or activity; and

  • (c) where it is required, that person is authorized or entitled to carry on business in the place where that person proposes to carry on the work or activity.

  • R.S., 1985, c. O-7, s. 4
  • R.S., 1985, c. 36 (2nd Supp.), s. 119
  • 1992, c. 35, s. 6

Marginal note:Limitations on pipelines

  •  (1) A holder of an authorization under paragraph 5(1)(b) to construct or operate a pipeline shall not, without the leave of the Commission of the Canadian Energy Regulator,

    • (a) sell, transfer or lease to any person its pipeline, in whole or in part;

    • (b) purchase or lease any pipeline from any person;

    • (c) enter into an agreement for amalgamation with any person; or

    • (d) abandon the operation of a pipeline.

  • Definition of pipeline

    (2) For the purposes of paragraph (1)(b), pipeline includes a pipeline as defined in section 2 or any other pipeline.

  • Marginal note:Terms and conditions — abandonment

    (2.1) The Commission of the Canadian Energy Regulator may, on granting leave to abandon the operation of a pipeline, impose any terms and conditions that it considers proper.

  • Marginal note:Costs and expenses related to abandonment

    (2.2) The Commission of the Canadian Energy Regulator may order a holder of an authorization issued under paragraph 5(1)(b) or a holder of that authorization that has obtained the Commission’s leave to abandon the operation of its pipeline, or the holder’s successor or assign, to take any measure that the Commission considers necessary to ensure that the holder, or its successor or assign, has the ability to pay for the abandonment of its pipelines and any costs and expenses related to its abandoned pipelines.

  • Marginal note:Exception

    (3) Despite paragraph (1)(a), leave shall only be required if the holder sells, transfers or leases any part of its pipeline that is capable of being operated for the transmission of oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas.

Delegation

Marginal note:Delegation

  •  (1) The Commission of the Canadian Energy Regulator may delegate any of its powers under section 5, 5.02, 5.03, 5.11, 5.12, 26.1 or 27 to any person, and the person shall exercise those powers in accordance with the terms of the delegation.

  • Marginal note:Navigable waters

    (2) The person to whom the power to issue an authorization under paragraph 5(1)(b) is delegated may exercise that power in relation to a section or part of a pipeline that passes in, on, over, under, through or across a navigable water only after having consulted the Commission of the Canadian Energy Regulator.

Cost Recovery

Marginal note:Regulations respecting fees, etc.

  •  (1) The Governor in Council may make regulations

    • (a) respecting the fees or charges, or the method of calculating the fees or charges, to be paid for the provision, by the Canadian Energy Regulator or the Minister, of a service or product under this Act;

    • (b) respecting the fees or charges, or the method of calculating the fees or charges, in respect of any of the Canadian Energy Regulator’s or the Minister’s activities under or related to this Act or under any other Act of Parliament, that are to be paid by

      • (i) a person who makes an application for an authorization under paragraph 5(1)(b) or an application under subsection 5.1(2), or

      • (ii) the holder of an operating licence or authorization issued under section 5; and

    • (c) respecting the refund of all or part of any fee or charge referred to in paragraph (a) or (b), or the method of calculating that refund.

  • Marginal note:Amounts not to exceed cost

    (2) The amounts of the fees or charges referred to in paragraph (1)(a) shall not exceed the cost of providing the services or products.

  • Marginal note:Amounts not to exceed cost

    (3) The amounts of the fees or charges referred to in paragraph (1)(b) shall not exceed the cost of performing the activities under or related to this Act or under any other Act of Parliament.

 
Date modified: