Administrative Monetary Penalties Regulations (National Energy Board)
SOR/2013-138
Registration 2013-06-18
Administrative Monetary Penalties Regulations (National Energy Board)
P.C. 2013-825 2013-06-18
The National Energy Board, pursuant to section 134Footnote a of the National Energy Board ActFootnote b, makes the annexed Administrative Monetary Penalties Regulations (National Energy Board).
Calgary, May 17, 2013
His Excellency the Governor General in Council, on the recommendation of the Minister of Natural Resources, pursuant to section 134Footnote a of the National Energy Board ActFootnote b, approves the annexed Administrative Monetary Penalties Regulations (National Energy Board), made by the National Energy Board on May 17, 2013.
Return to footnote aS.C. 2012, c. 19, s. 98
Return to footnote bR.S., c. N-7
Interpretation
Definition of Act
1 In these Regulations, Act means the National Energy Board Act.
Designated Provisions
Marginal note:Provisions of the Act or regulations
2 (1) The contravention of a provision of the Act or any of its regulations that is set out in column 1 of Schedule 1 is designated as a violation that may be proceeded with in accordance with sections 134 to 154 of the Act.
Marginal note:Orders and decisions
(2) The contravention of any order or decision made under the Act is designated as a violation that may be proceeded with in accordance with sections 134 to 154 of the Act.
Marginal note:Terms and conditions
(3) The failure to comply with any term or condition of any certificate, licence, permit, leave or exemption that is granted under the Act is designated as a violation that may be proceeded with in accordance with sections 134 to 154 of the Act.
Marginal note:Discrepancy
(4) In the event of a discrepancy between the short-form descriptions in Schedule 1 and the provision to which it pertains, the provision prevails.
Classification
Marginal note:Provisions
3 (1) The violation of a provision that is set out in column 1 of Schedule 1 is classified as a Type A or Type B violation as set out in column 3 of that Schedule.
Marginal note:Orders, decisions, terms or conditions
(2) The contravention of an order or decision referred to in subsection 2(2) or the failure to comply with a term or condition referred to in subsection 2(3) is a Type B violation.
Penalties
Marginal note:Penalty
4 (1) The penalty for a violation is the amount set out in column 2 or 3 of Schedule 2 that corresponds to the type of violation, the total gravity value set out in column 1 and whether the violation was committed by an individual or a person other than an individual.
Marginal note:Determination of final gravity level
(2) The total gravity value in respect of a violation is to be established by considering each of the criteria in column 1 of the table to this section, by ascribing to each criterion an appropriate gravity value, having regard to the circumstances of the violation, from those set out in column 2 and by adding the values obtained.
TABLE
Item Column 1 Column 2 Criteria Effect on Gravity Value 1 Whether the person who committed the violation has other violations in the previous 7 years 0 to +2 2 Whether the person derived any competitive or economic benefit from the violation 0 to +2 3 Whether the person made reasonable efforts to mitigate or reverse the violation’s effects –2 to +2 4 Whether there was negligence on the part of the person who committed the violation 0 to +2 5 Whether the person provided all reasonable assistance to the Board with respect to the violation –2 to +2 6 Whether the person, after becoming aware of the violation, promptly reported the violation to the Board –2 to +2 7 Whether the person has taken any steps to prevent recurrence of the violation –2 to +2 8 For type B violations, whether the violation was primarily a reporting or record-keeping requirement failure –2 to 0 9 Whether there are any other aggravating factors in relation to the risk of harm to people or the environment 0 to +3
Service of Documents
Marginal note:Manner of service
5 (1) The service of a document required or authorized under section 139, 144 or 147 of the Act is to be made by
(a) in the case of an individual,
(i) leaving a copy of it with the individual,
(ii) leaving a copy of it with someone who appears to be an adult member of the same household at the individual’s last known address or usual place of residence, or
(iii) sending a copy of it by registered mail, courier, fax or other electronic means to the individual’s last known address or usual place of residence; and
(b) in the case of a person other than an individual,
(i) leaving a copy of it at the person’s head office or place of business with an officer or other individual who appears to manage or be in control of the head office or place of business,
(ii) sending a copy of it by registered mail, courier or fax to the person’s head office or place of business, or
(iii) sending a copy of it by electronic means other than by fax to any individual referred to in subparagraph (i).
Marginal note:Deemed service
(2) A document — other than a document that is personally served — is considered to be served
(a) in the case of a copy that is left with an adult referred to in subparagraph (1)(a)(ii), on the day on which the document is left with the adult;
(b) in the case of a copy that is sent by registered mail or courier, on the tenth day after the date indicated in the receipt issued by the postal or courier service; and
(c) in the case of a copy sent by fax or other electronic means, on the day on which it is transmitted.
Coming into Force
Marginal note:S.C. 2012, c. 19
Footnote *6 These Regulations come into force on the day on which section 98 of the Jobs, Growth and Long-term Prosperity Act comes into force, but if they are registered after that day, they come into force on the day on which they are registered.
Return to footnote *[Note: Regulations in force July 3, 2013, see SI/2013-69.]
SCHEDULE 1(Subsections 2(1) and (4) and subsection 3(1))Violations
PART 1
National Energy Board Act
| Item | Column 1 | Column 2 | Column 3 |
|---|---|---|---|
| Provision | Short-form Description | Classification | |
| 1 | 29(1) | Construction or operation of a pipeline by a person other than a company | Type B |
| 2 | 30(1) | Operation of a pipeline without a certificate and leave to open | Type B |
| 3 | 31(a) | Construction of a pipeline without a certificate | Type B |
| 4 | 31(c) | Construction of a pipeline without an approved plan, profile and book of reference | Type B |
| 5 | 45(1) | Failure to submit for approval a plan, profile and book of reference | Type B |
| 6 | 47(1) | Opening a pipeline or section of pipeline for transmission without leave | Type B |
| 7 | 51 | Failure to provide assistance | Type B |
| 8 | 58.1 | Construction or operation of an international power line without a permit or certificate | Type B |
| 9 | 58.26(a) | Construction of an international or interprovincial power line without approval of a plan, profile and book of reference | Type B |
| 10 | 58.29(1) | Construction or operation of an interprovincial or international power line without leave | Type B |
| 11 | 58.31(1) | Construction of a facility or excavation without leave | Type B |
| 12 | 58.31(2) | Failure to obtain required leave | Type B |
| 13 | 58.34(1) | Abandonment of a designated international power line or interprovincial power line without leave | Type B |
| 14 | 74(1) | Failure to obtain required leave | Type B |
| 15 | 75 | Failure to do as little damage as possible in exercising the powers granted and to compensate for damage | Type B |
| 16 | 81(1) | Failure to obtain required leave | Type B |
| 17 | 108(1) | Construction of a pipeline without certificate or order | Type B |
| 18 | 109 | Construction or operation of a pipeline without a certificate or order | Type B |
| 19 | 112(1) | Construction of a facility or excavation without leave | Type B |
| 20 | 112(2) | Failure to obtain required leave | Type B |
PART 2
National Energy Board Onshore Pipeline Regulations
| Item | Column 1 | Column 2 | Column 3 |
|---|---|---|---|
| Provision | Short-form Description | Classification | |
| 1 | 4 | Failure to ensure that a pipeline is designed, constructed, operated or abandoned as prescribed | Type B |
| 2 | 5.1(1) | Failure to submit prescribed documents for approval | Type B |
| 3 | 6 | Failure to design, construct, operate or abandon as prescribed | Type B |
| 4 | 6.1 | Failure to establish, implement and maintain a management system as prescribed | Type B |
| 5 | 6.2(1) | Failure to appoint an accountable officer and to ensure that the management system is established, implemented and maintained as prescribed | Type B |
| 6 | 6.2(2) | Failure to notify the Board as prescribed | Type A |
| 7 | 6.2(3) | Failure to ensure that the accountable officer has authority as prescribed | Type B |
| 8 | 6.3(1) | Failure to establish policies and goals as prescribed | Type B |
| 9 | 6.3(2) | Failure to base the management system on established policies and goals as prescribed | Type B |
| 10 | 6.3(3) | Failure of the accountable officer to prepare and communicate a policy statement as prescribed | Type B |
| 11 | 6.4 | Failure to have an organizational structure as prescribed | Type B |
| 12 | 6.5 | Failure to establish, develop, implement, maintain and document processes as prescribed | Type B |
| 13 | 6.6 | Failure to complete an annual report and submit a statement as prescribed | Type B |
| 14 | 9 | Failure to develop detailed designs of a pipeline, and to submit them when required | Type B |
| 15 | 10(1) | Failure to develop a documented risk assessment as prescribed | Type B |
| 16 | 10(2) | Failure to submit a documented risk assessment to the Board when required to do so | Type A |
| 17 | 11 | Failure to design and equip a station as prescribed | Type B |
| 18 | 12 | Failure to equip a compressor station or pump station with an alternate source of power as prescribed | Type B |
| 19 | 13 | Failure to locate, service or design a storage facility as prescribed | Type B |
| 20 | 14 | Failure to develop prescribed specifications, and to submit them to the Board when required | Type B |
| 21 | 15 | Failure to develop a quality assurance program as prescribed | Type B |
| 22 | 16 | Failure to develop a joining program as prescribed, and to submit it to the Board when required | Type B |
| 23 | 17 | Failure to examine each joint as prescribed | Type B |
| 24 | 18 | Failure to contract for services as prescribed | Type B |
| 25 | 19(a) | Failure to ensure that the construction activities do not create a hazard to the public or the environment | Type B |
| 26 | 19(b) | Failure to inform persons of safety practices and procedures as prescribed | Type B |
| 27 | 20(1) | Failure to develop a construction safety manual and to submit it to the Board | Type B |
| 28 | 20(1.1) | Failure to set out responsibilities as prescribed | Type B |
| 29 | 20(2) | Failure to keep a copy of the construction safety manual or relevant parts of it as prescribed | Type B |
| 30 | 21 | Failure to restore the right-of-way and temporary work areas of a pipeline as prescribed | Type B |
| 31 | 22 | Failure to ensure that there is no undue interference with the use of a utility or private road during the construction of a pipeline | Type B |
| 32 | 23 | Failure to develop a pressure testing program as prescribed, and to submit it to the Board when required | Type B |
| 33 | 24 | Conducting a pressure test without required permits | Type B |
| 34 | 25 | Failure to perform pressure testing as prescribed | Type B |
| 35 | 26 | Failure to minimize the number of welds that are not pressure-tested as prescribed | Type B |
| 36 | 27 | Failure to develop, regularly review and update as required operation and maintenance manuals as prescribed and to submit them to the Board when required | Type B |
| 37 | 28 | Failure to inform persons of practices and procedures and to make available to them the relevant portion of operation and maintenance manuals as prescribed | Type B |
| 38 | 29 | Failure to contract for services as prescribed | Type B |
| 39 | 30(a) | Failure to take reasonable steps to ensure that maintenance activities do not create a hazard to the public or the environment | Type B |
| 40 | 30(b) | Failure to take reasonable steps to inform persons of safety and environmental protection practices and procedures as prescribed | Type B |
| 41 | 31(1) | Failure to develop a maintenance safety manual and to submit it to the Board when required | Type B |
| 42 | 31(1.1) | Failure to set out responsibilities as prescribed | Type B |
| 43 | 31(2) | Failure to keep a copy of the maintenance safety manual or the relevant parts of it as prescribed | Type B |
| 44 | 32(1) | Failure to develop, implement and maintain an emergency management program as prescribed | Type B |
| 45 | 32(1.1) | Failure to develop, regularly review and update an emergency procedures manual | Type B |
| 46 | 32(2) | Failure to submit to the Board the emergency procedures manual and any updates | Type A |
| 47 | 33 | Failure to establish and maintain liaison as prescribed, and failure to consult as prescribed | Type B |
| 48 | 34 | Failure to inform persons who may be associated with an emergency response activity as prescribed | Type B |
| 49 | 35 | Failure to develop a continuing education program as prescribed | Type B |
| 50 | 36(a) | Failure to maintain communication facilities as prescribed | Type B |
| 51 | 36(b) | Failure to periodically test instruments and equipment as prescribed | Type B |
| 52 | 36(c) | Failure to continually record as prescribed | Type B |
| 53 | 36(d) | Failure to clearly mark valves as prescribed | Type B |
| 54 | 36(e) | Failure to clearly mark valves as prescribed | Type B |
| 55 | 36(f) | Failure to post signage as prescribed | Type B |
| 56 | 37 | Failure to develop and implement a pipeline control system as prescribed | Type B |
| 57 | 38(1) | Performing welding on a liquid-filled pipeline other than as prescribed | Type B |
| 58 | 38(2) | Failure to treat weld as a temporary installation and replace that installation with a permanent one as soon as is practicable | Type B |
| 59 | 38(3) | Failure to submit specifications, procedures and results for approval as prescribed | Type B |
| 60 | 39 | Failure to develop a surveillance and monitoring program as prescribed | Type B |
| 61 | 40 | Failure to develop, implement and maintain an integrity management program as prescribed | Type B |
| 62 | 41(1) | Failure to document the particulars of a defect on a pipeline as prescribed | Type B |
| 63 | 41(2) | Failure to submit the documentation in 41(1) when required | Type A |
| 64 | 42 | Failure to submit a proposed plan as prescribed | Type B |
| 65 | 43 | Failure to submit an application for a change or increase as prescribed | Type B |
| 66 | 44 | Failure to submit an application for proposed deactivation as prescribed | Type B |
| 67 | 45 | Failure to submit an application for reactivation as prescribed | Type B |
| 68 | 45.1 | Failure to submit an application for decommissioning as prescribed | Type B |
| 69 | 46 | Failure to develop and implement a training program as prescribed | Type B |
| 70 | 47 | Failure to develop, implement and maintain a safety management program as prescribed | Type B |
| 71 | 47.1 | Failure to develop, implement and maintain a security management program as prescribed | Type B |
| 72 | 48 | Failure to develop, implement and maintain an environmental protection program as prescribed | Type B |
| 73 | 51(a) | Failure to notify as prescribed | Type A |
| 74 | 51(b) | Failure to submit to the Board on request a crossing report as prescribed | Type A |
| 75 | 52(1) | Failure to notify and submit a report to the Board as prescribed | Type A |
| 76 | 53(1) | Failure to conduct inspections and audits as prescribed | Type B |
| 77 | 53(2) | Failure to document the audit as prescribed | Type B |
| 78 | 54(1) | Failure to inspect the construction of a pipeline as prescribed | Type B |
| 79 | 54(2) | Performance of an inspection by a person who does not have sufficient expertise, knowledge and training to competently carry out the inspection | Type B |
| 80 | 55 | Failure to conduct and document audits as prescribed | Type B |
| 81 | 56 | Failure to retain records as prescribed | Type A |
PART 3
National Energy Board Processing Plant Regulations
| Item | Column 1 | Column 2 | Column 3 |
|---|---|---|---|
| Provision | Short-form Description | Classification | |
| 1 | 4(1) | Failure to ensure that the company’s processing plant is designed, constructed, operated or abandoned as prescribed | Type B |
| 2 | 5 | Failure to ensure that the company’s processing plant is designed, constructed, operated or abandoned as prescribed | Type B |
| 3 | 9 | Failure to develop and submit to the Board the prescribed program | Type B |
| 4 | 10 | Failure to develop, implement and maintain quality control and quality assurance programs as prescribed | Type B |
| 5 | 11 | Failure to conduct a risk analysis as prescribed | Type B |
| 6 | 12 | Failure to ensure that employees have required knowledge and training | Type B |
| 7 | 13 | Failure to develop and implement a safety program as prescribed | Type B |
| 8 | 14 | Failure to develop and implement an environmental protection program as prescribed | Type B |
| 9 | 15 | Failure to contract for services as prescribed | Type B |
| 10 | 16 | Failure to develop, implement and maintain detailed designs of its processing plant | Type B |
| 11 | 17 | Failure to ensure that a processing plant is equipped with an emergency power source | Type B |
| 12 | 18 | Failure to ensure that each tank, bullet, sphere or other container is designed, constructed and maintained as prescribed | Type B |
| 13 | 19 | Failure to ensure that process equipment and flammable vapour sources are separated as prescribed | Type B |
| 14 | 20 | Failure to ensure that process vessels and equipment are vented as prescribed | Type B |
| 15 | 21 | Failure to equip all flare headers as prescribed | Type B |
| 16 | 22 | Failure to ensure reliable fire suppression systems as prescribed | Type B |
| 17 | 23 | Failure to equip a processing plant with systems as prescribed | Type B |
| 18 | 24 | Failure to equip a processing plant with alarm devices as prescribed | Type B |
| 19 | 25 | Failure to ensure that all pressure-relief piping and systems are designed and constructed as prescribed | Type B |
| 20 | 26(a) | Failure to ensure construction does not create a detriment or hazard as prescribed | Type B |
| 21 | 26(b) | Failure to inform persons at the construction site as prescribed | Type B |
| 22 | 26(c) | Failure to inform persons on the work site as prescribed | Type B |
| 23 | 27(1) | Failure to develop, implement and submit a construction safety manual | Type B |
| 24 | 27(2) | Failure to keep a copy of the construction safety manual at the processing plant as prescribed | Type B |
| 25 | 28(1) | Failure to ensure direct supervision of pressure tests as prescribed | Type B |
| 26 | 28(2) | Failure to ensure the independence of the test supervisor as prescribed | Type B |
| 27 | 28(3) | Failure to date and sign records | Type B |
| 28 | 29 | Failure of the company to develop and implement a non-destructive weld examination program as prescribed | Type B |
| 29 | 30(1)(a) | Failure to develop, implement, regularly review and update operations manuals as prescribed | Type B |
| 30 | 30(1)(b) | Failure to keep a copy of the operations manuals as prescribed | Type B |
| 31 | 30(2) | Failure to ensure that the operations manuals contain the prescribed procedures | Type B |
| 32 | 31(2) | Failure to develop and implement a safe-work permit system as prescribed | Type B |
| 33 | 32 | Failure to ensure that a processing plant is staffed as prescribed | Type B |
| 34 | 33(a) | Failure to ensure maintenance activities do not create a detriment or hazard as prescribed | Type B |
| 35 | 33(b) | Failure to inform persons at a maintenance site as prescribed | Type B |
| 36 | 34 | Operation of equipment with a hazard-detection alarm or shutdown device bypassed or rendered inoperable | Type B |
| 37 | 35(a) | Failure to develop, implement, regularly review and update an emergency procedures manual | Type B |
| 38 | 35(b) | Failure to submit the emergency procedures manual as prescribed | Type A |
| 39 | 35(c) | Failure to submit updates as prescribed | Type A |
| 40 | 36 | Failure to establish and maintain liaison as prescribed and failure to consult as prescribed | Type B |
| 41 | 37 | Failure to inform persons who may be associated with an emergency response activity as prescribed | Type B |
| 42 | 38 | Failure to develop and implement a continuing educational program as prescribed | Type B |
| 43 | 39(a) | Failure to maintain communication facilities as prescribed | Type B |
| 44 | 39(b) | Failure to retain incident data as prescribed | Type B |
| 45 | 39(c) | Failure to clearly mark valves as prescribed | Type B |
| 46 | 39(d) | Failure to post signage as prescribed | Type B |
| 47 | 39(e) | Failure to post signage as prescribed | Type B |
| 48 | 40(a) | Failure to test hazard-detection devices as prescribed | Type B |
| 49 | 40(b) | Failure to document and maintain prescribed records | Type B |
| 50 | 41 | Failure to develop and implement a processing plant integrity program as prescribed | Type B |
| 51 | 42 | Failure to notify of plant deactivation as prescribed | Type A |
| 52 | 43.1 | Failure to submit an application for decommissioning as prescribed | Type B |
| 53 | 44 | Failure to develop and implement a training program as prescribed | Type B |
| 54 | 45 | Failure to ensure visitors are made familiar with the safety program as prescribed | Type B |
| 55 | 46 | Failure to provide immediate notice of any incident and to submit prescribed reports | Type B |
| 56 | 47(a) | Failure to notify of any hazard as prescribed | Type A |
| 57 | 47(b) | Failure to provide a report as prescribed | Type B |
| 58 | 48 | Failure to report burning as prescribed | Type A |
| 59 | 49(1.1) | Failure to notify as prescribed | Type A |
| 60 | 50 | Failure to prepare and keep current a report as prescribed | Type B |
| 61 | 51 | Failure to regularly conduct balance analysis as prescribed | Type B |
| 62 | 52(1) | Failure to conduct audits and inspections as prescribed | Type B |
| 63 | 52(2) | Failure to document an audit as prescribed | Type B |
| 64 | 53 | Failure to inspect as prescribed | Type B |
| 65 | 54 | Failure to annually audit the competency of all employees as prescribed | Type B |
| 66 | 55 | Failure to develop, implement and maintain a record retention and handling program | Type A |
PART 4
National Energy Board Pipeline Crossing Regulations, Part 1
| Item | Column 1 | Column 2 | Column 3 |
|---|---|---|---|
| Provision | Short-form Description | Classification | |
| 1 | 4 | Failure to construct or install a facility as prescribed or to obtain leave | Type B |
| 2 | 5 | Failure to install an overhead line across a pipeline as prescribed or to obtain leave | Type B |
| 3 | 6 | Failure to excavate as prescribed or to obtain leave | Type B |
| 4 | 7 | Failure to meet the circumstances and conditions as prescribed or to obtain leave | Type B |
PART 5
National Energy Board Pipeline Crossing Regulations, Part II
| Item | Column 1 | Column 2 | Column 3 |
|---|---|---|---|
| Provision | Short-form Description | Classification | |
| 1 | 4(1) | Failure to establish a public awareness program as prescribed | Type B |
| 2 | 4(2) | Failure to assess the effectiveness of a public awareness program as prescribed and to maintain a record of the assessment | Type B |
| 3 | 5(1) | Failure to develop guidelines as prescribed, and to make them public | Type B |
| 4 | 5(2) | Failure to submit guidelines for approval as prescribed | Type B |
| 5 | 6(1) | Failure to inform as prescribed | Type A |
| 6 | 7 | Failure to provide information and assistance as prescribed | Type B |
| 7 | 8 | Failure to send comments to the Board as prescribed | Type A |
| 8 | 9(1)(a) | Failure to inform the facility owner or excavator as prescribed | Type B |
| 9 | 9(1)(b) | Failure to mark the location of pipes as prescribed | Type B |
| 10 | 9(1)(c) | Failure to explain the significance of stakes as prescribed | Type B |
| 11 | 10(a) | Failure to carry out inspections as prescribed | Type B |
| 12 | 10(b) | Failure to inspect all exposed pipe prior to backfilling | Type B |
| 13 | 10(c) | Failure to maintain a record of all inspection findings and observations | Type A |
| 14 | 10(d) | Failure to include the prescribed information in the inspection record | Type A |
| 15 | 11 | Failure to maintain records as prescribed | Type A |
| 16 | 12 | Failure to provide a list as prescribed | Type A |
| 17 | 13 | Failure to report as prescribed | Type A |
| 18 | 14(2) | Failure to notify the Board as prescribed | Type A |
| 19 | 15(1) | Failure to inspect and to inform as prescribed | Type B |
| 20 | 15(2) | Failure to inform the Board as prescribed | Type A |
| 21 | 16 | Failure to make records and other materials available to the prescribed persons and to assist as prescribed | Type B |
PART 6
Power Line Crossing Regulations
| Item | Column 1 | Column 2 | Column 3 |
|---|---|---|---|
| Provision | Short-form Description | Classification | |
| 1 | 3 | Failure to construct a facility or excavate as prescribed or failure to obtain leave | Type B |
| 2 | 4 | Failure to construct a power line as prescribed or failure to obtain leave | Type B |
SCHEDULE 2(Subsection 4(1))
Penalties
| Item | Column 1 | Column 2 | Column 3 | ||
|---|---|---|---|---|---|
| Gravity Level | Type A Violation | Type B Violation | |||
| Individual | Any Other Person | Individual | Any Other Person | ||
| 1 | –3 or less | $250 | $1,000 | $1,000 | $4,000 |
| 2 | –2 | $595 | $2,375 | $4,000 | $16,000 |
| 3 | –1 | $990 | $3,750 | $7,000 | $28,000 |
| 4 | 0 | $1,365 | $5,025 | $10,000 | $40,000 |
| 5 | 1 | $1,740 | $6,300 | $13,000 | $52,000 |
| 6 | 2 | $2,115 | $7,575 | $16,000 | $64,000 |
| 7 | 3 | $2,490 | $8,850 | $19,000 | $76,000 |
| 8 | 4 | $2,865 | $10,125 | $22,000 | $88,000 |
| 9 | 5 or more | $3,000 | $12,000 | $25,000 | $100,000 |
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