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

Regulations are current to 2020-06-28 and last amended on 2015-07-31. Previous Versions

PART IIGas (continued)

DIVISION IIPROPANE, BUTANES AND ETHANE (continued)

Terms and Conditions of Licences for Exportation

 The following are matters in respect of which terms and conditions may be included in any licence for the exportation of propane, butanes or ethane:

  • (a) the duration of the licence;

  • (b) the period within which the exportation of propane, butanes or ethane must commence in order for the licence to remain in effect;

  • (c) the daily, monthly, annual and term quantities of propane, butanes or ethane that may be exported;

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

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

  • SOR/2000-256, s. 9

Orders for Exportation

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

  • (a) if the application is in respect of propane or butanes, to export propane or butanes for a period of not more than one year; and

  • (b) where the application is in respect of ethane, to export ethane for a period not exceeding two years.

  • SOR/2000-256, s. 10

Terms and Conditions of Orders for Exportation

 The following are matters in respect of which terms and conditions may be included in any order issued under section 22:

  • (a) the duration of the order;

  • (b) 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 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;

  • (c) the period within which the exportation must commence in order for the order to remain in effect;

  • (d) the daily, monthly, annual and term quantities of propane, butanes or ethane that may be exported;

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

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

  • (g) 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.

  • SOR/2000-256, s. 11
  • SOR/2001-120, s. 3

PART IIIOil

Exemption

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

  • (a) the importation of any oil; and

  • (b) the exportation of any oil

    • (i) that is necessary to effect deliveries of oil by pipeline to consignees in accordance with normal pipeline operating practices,

    • (ii) used for exploration, drilling and production operations in the offshore areas over which Canada exercises jurisdiction,

    • (iii) carried by motor vehicles, aircraft, locomotives and ships in their own tanks for their consumption, or

    • (iv) that has previously been imported into Canada, except where the oil is refined petroleum products.

Information to be Furnished by Applicants for Licences for Exportation

 Every applicant for a licence for the exportation of oil, other than a licence for the exportation of light crude oil or heavy crude oil, 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 daily, annual and term quantities of oil proposed to be exported, and

    • (iii) the points of exportation of the oil from Canada;

  • (b) information respecting the applicant’s oil supply supporting the proposed exportation, including

    • (i) a summary of the quantities of oil under every oil supply contract,

    • (ii) a copy of every oil supply contract,

    • (iii) the name and location of each pool, field or area that contributes to the oil supply of the applicant and the details of the applicant’s contracted or working interest therein,

    • (iv) an estimate of the oil reserves in each pool, field or area that contributes to the oil supply of the applicant,

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

    • (vi) basic productive capacity data for each pool, field or area that contributes to the oil supply of the applicant, and

    • (vii) a table showing anticipated annual production for each pool, field or area that contributes to the oil supply of the applicant, and the total annual production during the licence;

  • (c) information respecting the applicant’s oil market, including

    • (i) details of the applicant’s oil export sale, including a copy of every oil 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 of oil, including 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 oil 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 importation of oil into the country of destination,

    • (ii) transportation services,

    • (iii) tariffs and tolls,

    • (iv) facilities,

    • (v) environmental reviews, and

    • (vi) contractual arrangements necessary for the exportation of oil.

  • SOR/99-443, s. 2
  • SOR/2000-256, s. 12

 Every applicant for a licence for the exportation of light crude oil or heavy crude oil 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 daily, annual and term quantities of oil proposed to be exported, and

    • (iii) the points of exportation of the oil from Canada;

  • (b) information respecting the applicant’s oil market, including

    • (i) the details of the applicant’s oil export sale, and

    • (ii) a copy of every oil export sales contract for the proposed exportation;

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

  • (d) a copy of, or details of the status of, each approval or authorization of a federal, provincial or state government as pertaining to environmental reviews; and

  • (e) a description detailing the manner in which the applicant

    • (i) has informed those persons who have declared an interest in buying oil for consumption in Canada of the quantities and grades of oil available for sale, and

    • (ii) has given those persons who have demonstrated an intention to buy oil for consumption in Canada, after having been so informed, an opportunity to purchase oil on terms and conditions, including price, as favourable as the terms and conditions specified in the application.

  • SOR/99-443, s. 3
 
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