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

Regulations are current to 2020-03-05 and last amended on 2015-07-31. Previous Versions

PART IIGas (continued)

DIVISION IGAS OTHER THAN PROPANE, BUTANES AND ETHANE (continued)

Amendments to Gas Export Sales Contracts and Gas Import Purchase Contracts

  •  (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]

  • SOR/2000-256, s. 6
  •  (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]

  • SOR/2000-256, s. 7

DIVISION IIPROPANE, BUTANES AND ETHANE

Exemption

 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.

Information to be Furnished by Applicants for Licences for Exportation

 An applicant for a licence for the exportation of propane, butanes or ethane shall furnish to the Board all the information that is necessary for the Board to dispose of the application, including, unless otherwise authorized by the Board,

  • (a) the terms that the applicant is requesting for the licence, including

    • (i) the duration of the licence,

    • (ii) the maximum daily, monthly, annual and term quantities of propane, butanes or ethane proposed to be exported and the average heating values of those quantities, and

    • (iii) the points of exportation of the propane, butanes or ethane from Canada;

  • (b) information respecting the applicant’s propane, butanes or ethane supply supporting the proposed exportation, including

    • (i) a summary of the quantities of propane, butanes or ethane under contract and the average heating values of those quantities,

    • (ii) a copy of every propane, butanes or ethane supply contract supporting the proposed exportation,

    • (iii) the name and location of each pool, field or area that contributes to the propane, butanes or ethane supply of the applicant, details of the applicant’s contracted or working interest therein and the name and location of the plant where propane, butanes or ethane are being produced,

    • (iv) an estimate of the gas reserves and the volume of extractable propane, butanes or ethane in each pool, field or area that contributes to the propane, butanes or ethane supply of the applicant,

    • (v) supporting data for each estimate referred to in subparagraph (iv),

    • (vi) basic gas deliverability data for each pool, field or area that contributes to the propane, butanes or ethane supply of the applicant,

    • (vii) a table showing total productive capacity, constrained only by existing and anticipated surface facilities, and

    • (viii) a table showing the ways in which the applicant plans to produce gas from each pool, field or area that contributes to the propane, butanes or ethane supply of the applicant, in order to obtain quantities of propane, butanes or ethane necessary to meet the applicant’s requirements for the duration of the licence;

  • (c) information respecting the applicant’s propane, butanes or ethane market, including

    • (i) details of the applicant’s propane, butanes or ethane export sale and a copy of every export sales contract for the proposed exportation, and

    • (ii) a description of the export market to be served by the proposed exportation;

  • (d) details of the transportation arrangements pertaining to the proposed exportation, including

    • (i) the details and status of all contractual arrangements for the movement of the propane, butanes or ethane in and outside Canada,

    • (ii) a copy of every transportation contract for the movement of the propane, butanes or ethane in Canada, and

    • (iii) a description of any existing or proposed gathering, storage or transmission facility, and of any new facility other than a gathering, storage or transmission facility, that is required to move the gas to market, whether the facility is, or will be, in or outside Canada,

  • (e) information respecting the potential environmental effects of the proposed exportation and any social effects that would be directly related to those environmental effects; and

  • (f) a copy of, or details of the status of, each approval or authorization of a federal, provincial or state government pertaining to

    • (i) the removal of propane, butanes or ethane from a province,

    • (ii) the importation of propane, butanes or ethane into the country of destination,

    • (iii) transportation services,

    • (iv) tariffs and tolls,

    • (v) facilities,

    • (vi) environmental reviews, and

    • (vii) contractual arrangements necessary for the exportation of propane, butanes or ethane.

  • SOR/2000-256, s. 8
 
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