Canada Oil and Gas Operations Act

Marginal note:Limitations on pipelines

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

  • (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 National Energy Board 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 National Energy Board may order a holder of an authorization issued under paragraph 5(1)(b) or a holder of that authorization that has obtained the Board’s leave to abandon the operation of its pipeline, or the holder’s successor or assign, to take any measure that the Board 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.