National Energy Board Act Part VI (Oil and Gas) Regulations (SOR/96-244)

Terms and Conditions of Licences for Exportation and Importation

14 The following are matters in respect of which terms and conditions may be included in any licence for the exportation or importation of gas:

• (a) the duration of the licence;

• (b) the period within which the exportation or importation of the gas must commence in order for the licence to remain in effect;

• (c) the term quantities of gas that may be exported or imported;

• (d) the maximum quantities of gas that may be exported or imported, for any daily, monthly, annual or other appropriate period;

• (e) if applicable, any tolerance levels that are necessary to accommodate temporary operating conditions;

• (f) the points of exportation of the gas from Canada or of importation of the gas into Canada; and

• (g) the environmental requirements that must be met for the licence to take or remain in effect.

Orders for Exportation or Importation

15 Where the Board determines that an application for an order for the exportation or importation of gas contains all the information necessary to dispose of the application, the Board may issue an order authorizing a person

• (a) to export gas

  • (i) for a period not exceeding two years, or

  • (ii) for a period exceeding two years but not exceeding 20 years, in quantities of not more than 30,000 m³ per day;

• (b) to import gas

  • (i) for a period not exceeding two years, or

  • (ii) for a period exceeding two years but not exceeding 20 years, in quantities of not more than 30,000 m³ per day; or

• (c) to export gas for subsequent import or to import gas for subsequent export for a period not exceeding 25 years.

Terms and Conditions of Orders for Exportation or Importation

16 The following are matters in respect of which terms and conditions may be included in any order issued under section 15:

• (a) the duration of the order;

• (b) if applicable, the tolerance levels that are necessary to accommodate temporary operating conditions;

• (c) the requirement that the holder of the order must file with the Board, within a specified period, evidence of each approval or authorization of a federal, provincial or state government pertaining to

  • (i) the removal of gas from a province or the country of production,

  • (ii) the importation of gas into the country of destination or into a province,

  • (iii) transportation services,

  • (iv) tariffs and tolls,

  • (v) facilities,

  • (vi) environmental reviews, and

  • (vii) contractual arrangements necessary for the exportation or importation of gas;

• (d) where the order authorizes the exportation of gas,

  • (i) the maximum daily, monthly, annual and term quantities of gas that may be exported,

  • (ii) the points of exportation of the gas from Canada,

  • (iii) the period within which the exportation of gas must commence in order for the order to remain in effect, and

  • (iv) the exportation of gas on a firm or interruptible basis;

• (e) where the order authorizes the importation of gas,

  • (i) the maximum daily, monthly, annual and term quantities of gas that may be imported,

  • (ii) the points of importation of the gas into Canada,

  • (iii) the period within which the importation of gas must commence in order for the order to remain in effect, and

  • (iv) the importation of gas on a firm or interruptible basis;

• (f) where the order authorizes the exportation of gas for subsequent importation,

  • (i) the maximum daily, monthly, annual and term quantities of gas that may be exported and subsequently imported,

  • (ii) the points of exportation and subsequent importation of gas,

  • (iii) the period within which the exportation and subsequent importation of gas must commence in order for the order to remain in effect,

  • (iv) the exportation and subsequent importation of gas on a firm or interruptible basis,

  • (v) the balancing of quantities to be exported and subsequently imported on a thermally equivalent basis, and

  • (vi) the injection, storage and withdrawal of gas from storage facilities;

• (g) where the order authorizes the importation of gas for subsequent exportation,

  • (i) the maximum daily, monthly, annual and term quantities of gas that may be imported and subsequently exported,

  • (ii) the points of importation and subsequent exportation of gas,

  • (iii) the period within which the importation and subsequent exportation of gas must commence in order for the order to remain in effect,

  • (iv) the importation and subsequent exportation of gas on a firm or interruptible basis,

  • (v) the balancing of quantities to be imported and subsequently exported on a thermally equivalent basis, and

  • (vi) the injection, storage and withdrawal of gas from storage facilities;

• (h) the environmental requirements that must be met for the order to take or remain in effect; and

• (i) the requirement that the holder of the order comply with

  • (i) the Act and any regulation made under it, and

  • (ii) any order that applies to the holder of the order made under the Act.

Amendments to Gas Export Sales Contracts and Gas Import Purchase Contracts

• 17 (1) In this section,

  gas export sales contract

  gas export sales contract means a contract, other than a third party contract, for the sale of gas between

  • (a) the holder of a licence and the importer,

  • (b) the holder of a licence and the vendor, where the holder or an affiliate or subsidiary of the holder is also the importer, or

  • (c) the holder of a licence and the importer and between the holder and the vendor, where the holder is an affiliate or subsidiary of the importer and of the vendor; (contrat de vente de gaz à l’exportation)

  holder of a licence

  holder of a licence means the person who holds a licence for the exportation of gas; (titulaire d’une licence)

  importer

  importer means the importer of gas in the country of destination of the gas; (importateur)

  third party contract

  third party contract means a contract for the sale of gas contracted, under a gas export sales contract to a third party, by the holder of a licence or the importer of the gas, where

  • (a) the sale to the third party is for a term of less than two years,

  • (b) the importer is physically unable to take the gas for its market, and

  • (c) the gas export sales contract contains provisions allowing for the sale of the gas to a third party; (contrat avec un tiers)

  vendor

  vendor means the person from whom gas is purchased. (vendeur)

• (2) Unless otherwise authorized by the Board, the holder of a licence shall, within 30 days after execution, file with the Board a copy of every gas export sales contract pertaining to the exportation of gas authorized by the licence and of every amendment, agreement or change pertaining thereto.

• (3) The holder of a licence shall include with the copy filed pursuant to subsection (2) a detailed summary of every gas export sales contract and of every amendment, agreement or change pertaining thereto.

• (4) No holder of a licence shall, under the licence, export gas under a gas export sales contract, or an amendment, an agreement or a change in relation to the gas export sales contract, unless the contract, amendment, agreement or change has been approved by the Board in accordance with subsection (5).

• (5) The Board may approve a contract, amendment, agreement or change if the Board determines that gas will continue to be exported in accordance with the terms and conditions of the licence.

• (6) On the request of the Board, the holder of a licence shall file with the Board, within 30 days of its execution , a copy of any contract, and any amendment, agreement or change in relation to that contract, that pertains to the exportation of gas authorized by the licence, including any third party contract but excluding a gas export sales contract.

• (7) [Repealed, SOR/2000-256, s. 6]

• 18 (1) In this section,

  exporter

  exporter means the exporter of gas in the country of production of the gas; (exportateur)

  gas import purchase contract

  gas import purchase contract means a contract, other than a third party contract, for the purchase of gas between

  • (a) the holder of a licence and the exporter, or

  • (b) the holder of a licence and the resale customer in Canada, where the holder or an affiliate or subsidiary of the holder is also the exporter; (contrat d’achat de gaz d’importation)

  holder of a licence

  holder of a licence means the person who holds a licence for the importation of gas; (titulaire d’une licence)

  third party contract

  third party contract means a contract for the sale of gas contracted, under a gas import purchase contract to a third party, by the holder of the licence or by the exporter of the gas, where

  • (a) the sale to the third party is for a term of less than two years,

  • (b) the holder of the licence is physically unable to take the gas for its market, and

  • (c) the gas import purchase contract contains provisions allowing for the sale of the gas to a third party. (contrat avec un tiers)

• (2) Unless otherwise authorized by the Board, the holder of a licence shall, within 30 days after execution, file with the Board a copy of every gas import purchase contract pertaining to the importation of gas authorized by the licence and every amendment, agreement or change pertaining thereto.

• (3) The holder of a licence shall include with the copy filed pursuant to subsection (2), a detailed summary of every gas import purchase contract and of every amendment, agreement or change pertaining thereto.

• (4) No holder of a licence shall, under the licence, import gas under a gas import sales contract, or an amendent, an agreement or a change in relation to the gas import sales contract, unless the contract, amendment, agreement or change has been approved by the Board in accordance with subsection (5).

• (5) The Board may approve a contract, amendment, agreement or change if the Board determines that gas will continue to be imported in accordance with the terms and conditions of the licence.

• (6) On the request of the Board, the holder of a licence shall file with the Board, within 30 days of its execution , a copy of any contract, and any amendment, agreement or change in relation to that contract, that pertains to the importation of gas authorized by the licence, including any third party contract but excluding a gas import sales contract.

• (7) [Repealed, SOR/2000-256, s. 7]

DIVISION IIPROPANE, BUTANES AND ETHANE

Exemption

19 The following transactions are exempt from the operation of Part VI of the Act:

• (a) the importation of any propane, butanes or ethane;

• (b) the exportation of any propane, butanes or ethane, where

  • (i) the exportation is for subsequent import, or

  • (ii) the propane, butanes or ethane have previously been imported into Canada; and

• (c) the exportation of any propane where the propane is carried by motor vehicle in their own tanks for their consumption.