Energy Safety and Security Act (S.C. 2015, c. 4)
Full Document:
Assented to 2015-02-26
61. The Act is amended by adding the following after section 162:
Marginal note:Financial resources — certain activities
162.1 (1) An applicant for an authorization under paragraph 138(1)(b) for the drilling for or development or production of petroleum shall provide proof, in the prescribed form and manner, that it has the financial resources necessary to pay the greatest of the amounts of the limits of liability referred to in subsection 162(2.2) that apply to it. If the Board considers it necessary, it may determine a greater amount and require proof that the applicant has the financial resources to pay that greater amount.
Marginal note:Financial resources — other activities
(2) An applicant for an authorization under paragraph 138(1)(b) for any other work or activity shall provide proof, in the prescribed form and manner, that it has the financial resources necessary to pay an amount that is determined by the Board.
Marginal note:Loss of non-use value not considered
(3) When the Board determines an amount under subsection (1) or (2), the Board is not required to consider any potential loss of non-use value relating to a public resource that is affected by a spill or the authorized discharge, emission or escape of petroleum or as a result of debris.
Marginal note:Continuing obligation
(4) The holder of an authorization under paragraph 138(1)(b) shall ensure that the proof referred to in subsections (1) and (2) remains in force for the duration of the work or activity in respect of which the authorization is issued.
Marginal note:Extended obligation
(5) The holder of an authorization under paragraph 138(1)(b) shall also ensure that the proof referred to in subsection (1) remains in force for a period of one year beginning on the day on which the Board notifies the holder that it has accepted a report submitted by the holder indicating that the last well in respect of which the authorization is issued is abandoned. The Board may reduce that period and may decide that the proof that is to remain in force during that period is proof that the holder has the financial resources necessary to pay an amount that is less than the amount referred to in subsection (1) and that is determined by the Board.
Marginal note:1992, c. 35, s. 76
62. (1) Subsections 163(1) to (2) of the Act are replaced by the following:
Marginal note:Financial responsibility
163. (1) An applicant for an authorization under paragraph 138(1)(b) shall provide proof of financial responsibility in the form of a letter of credit, guarantee or indemnity bond or in any other form satisfactory to the Board,
(a) in the case of the drilling for or development or production of petroleum in the offshore area, in the amount of $100 million or, if the Board considers it necessary, in a greater amount that it determines; or
(b) in any other case, in an amount that is satisfactory to, and determined by, the Board.
Marginal note:Pooled fund
(1.01) An applicant to which paragraph (1)(a) applies may, rather than provide proof of financial responsibility in the amount referred to in that paragraph, provide proof that it participates in a pooled fund that is established by the oil and gas industry, that is maintained at a minimum of $250 million and that meets any other requirements that are established by regulation.
Marginal note:Increase in amount by regulation
(1.02) Subject to section 7, the Governor in Council may, by regulation, increase the amount referred to in subsection (1.01).
Marginal note:Continuing obligation
(1.1) The holder of an authorization under paragraph 138(1)(b) shall ensure that the proof of financial responsibility referred to in subsection (1) or (1.01) remains in force for the duration of the work or activity in respect of which the authorization is issued.
Marginal note:Extended obligation
(1.2) The holder of an authorization under paragraph 138(1)(b) shall also ensure that the proof referred to in paragraph (1)(a) or subsection (1.01) remains in force for a period of one year beginning on the day on which the Board notifies the holder that it has accepted a report submitted by the holder indicating that the last well in respect of which the authorization is issued is abandoned. The Board may reduce that period and may decide — other than in the case of a holder that participates in a pooled fund — that the proof that is to remain in force during that period is for an amount that is less than the amount referred to in paragraph (1)(a) and that is determined by the Board.
Marginal note:Payment of claims
(2) The Board may require that moneys in an amount not exceeding the amount prescribed for any case or class of cases, or determined by the Board in the absence of regulations, be paid out of the funds available under the letter of credit, guarantee or indemnity bond or other form of financial responsibility provided under subsection (1), or be paid out of the pooled fund referred to in subsection (1.01), in respect of any claim for which proceedings may be instituted under section 162, whether or not those proceedings have been instituted.
(2) Section 163 of the Act is amended by adding the following after subsection (4):
Marginal note:Reimbursement of pooled fund
(5) The holder of an authorization under paragraph 138(1)(b) that is liable for a discharge, emission or escape of petroleum that is authorized by regulation or for any spill or debris in respect of which a payment has been made under subsection (2) out of the pooled fund, shall reimburse the amount of the payment in the prescribed manner.
63. The Act is amended by adding the following after section 163:
Marginal note:Lesser amount
163.1 (1) The Federal Minister may, by order, on the recommendation of the Board and with the Provincial Minister’s approval, approve an amount that is less than the amount referred to in paragraph 162(2.2)(a) or (b) or 163(1)(a) in respect of an applicant for, or a holder of, an authorization under paragraph 138(1)(b).
Marginal note:Financial resources — exception
(2) If the Federal Minister approves an amount that is less than the amount referred to in paragraph 162(2.2)(a) or (b) in respect of an applicant for an authorization under paragraph 138(1)(b), that applicant, for the purposes of subsection 162.1(1), shall only provide proof that it has the financial resources necessary to pay the adjusted amount approved by the Federal Minister.
Marginal note:No contravention
(3) No applicant for an authorization under paragraph 138(1)(b) contravenes paragraph 163(1)(a) if that applicant provides proof of financial responsibility in the amount that is approved by the Federal Minister under this section.
64. Section 194 of the Act is amended by adding the following after subsection (2):
Marginal note:Sentencing principles
(3) In addition to the principles and factors that the court is otherwise required to consider, including those set out in sections 718.1 to 718.21 of the Criminal Code, the court shall consider the following principles when sentencing a person who is found guilty of an offence under this Part:
(a) the amount of the fine should be increased to account for every aggravating factor associated with the offence, including the aggravating factors set out in subsection (4); and
(b) the amount of the fine should reflect the gravity of each aggravating factor associated with the offence.
Marginal note:Aggravating factors
(4) The aggravating factors are the following:
(a) the offence caused harm or risk of harm to human health or safety;
(b) the offence caused damage or risk of damage to the environment or to environmental quality;
(c) the offence caused damage or risk of damage to any unique, rare, particularly important or vulnerable component of the environment;
(d) the damage or harm caused by the offence is extensive, persistent or irreparable;
(e) the offender committed the offence intentionally or recklessly;
(f) the offender failed to take reasonable steps to prevent the commission of the offence;
(g) by committing the offence or failing to take action to prevent its commission, the offender increased their revenue or decreased their costs or intended to increase their revenue or decrease their costs;
(h) the offender has a history of non-compliance with federal or provincial legislation that relates to safety or environmental conservation or protection; and
(i) after the commission of the offence, the offender
(i) attempted to conceal its commission,
(ii) failed to take prompt action to prevent, mitigate or remediate its effects, or
(iii) failed to take prompt action to reduce the risk of committing similar offences in the future.
Marginal note:Absence of aggravating factor
(4.1) The absence of an aggravating factor set out in subsection (4) is not a mitigating factor.
Meaning of “damage”
(4.2) For the purposes of paragraphs (4)(b) to (d), “damage” includes loss of use value and non-use value.
Marginal note:Reasons
(4.3) If the court is satisfied of the existence of one or more of the aggravating factors set out in subsection (4) but decides not to increase the amount of the fine because of that factor, the court shall give reasons for that decision.
65. Section 196 of the Act is replaced by the following:
Marginal note:Order of court
196. (1) If a person is found guilty of an offence under this Part, the court may, having regard to the nature of the offence and the circumstances surrounding its commission, in addition to any other punishment that may be imposed under this Part, make an order that has any or all of the following effects:
(a) prohibiting the offender from committing an act or engaging in an activity that may, in the opinion of the court, result in the continuation or repetition of the offence;
(b) directing the offender to take any action that the court considers appropriate to remedy or avoid any harm to the environment that results or may result from the act or omission that constituted the offence;
(c) directing the offender to carry out environmental effects monitoring in the manner established by the Board or directing the offender to pay, in the manner specified by the court, an amount of money for the purposes of environmental effects monitoring;
(d) directing the offender to make changes to their environmental management system that are satisfactory to the Board;
(e) directing the offender to have an environmental audit conducted by a person of a class and at the times specified by the Board and directing the offender to remedy any deficiencies revealed during the audit;
(f) directing the offender to pay to Her Majesty in right of Canada, for the purpose of promoting the conservation, protection or restoration of the environment, or to pay into the Environmental Damages Fund — an account in the accounts of Canada — an amount of money that the court considers appropriate;
(g) directing the offender to publish, in the manner specified by the court, the facts relating to the commission of the offence and the details of the punishment imposed, including any orders made under this subsection;
(h) directing the offender to notify, at the offender’s own cost and in the manner specified by the court, any person aggrieved or affected by the offender’s conduct of the facts relating to the commission of the offence and of the details of the punishment imposed, including any orders made under this subsection;
(i) directing the offender to post a bond or pay an amount of money into court that the court considers appropriate to ensure that the offender complies with any prohibition, direction, requirement or condition that is specified in the order;
(j) directing the offender to perform community service, subject to any reasonable conditions that may be imposed by the court;
(k) directing the offender to pay, in the manner specified by the court, an amount of money to environmental, health or other groups to assist in their work;
(l) directing the offender to pay, in the manner specified by the court, an amount of money to an educational institution including for scholarships for students enrolled in studies related to the environment;
(m) requiring the offender to comply with any conditions that the court considers appropriate in the circumstances for securing the offender’s good conduct and for preventing the offender from repeating the same offence or committing another offence under this Part;
(n) prohibiting the offender from taking measures to acquire an interest or from applying for any new licence or other authorization under this Act during any period that the court considers appropriate.
Marginal note:Coming into force and duration of order
(2) An order made under subsection (1) comes into force on the day on which the order is made or on any other day that the court may determine, but shall not continue in force for more than three years after that day.
Marginal note:Publication
(3) If an offender does not comply with an order requiring the publication of facts relating to the offence and the details of the punishment, the Board may, in the manner that the court directed the offender, publish those facts and details and recover the costs of publication from the offender.
Marginal note:Debt due to Board
(4) If the Board incurs publication costs under subsection (3), the costs constitute a debt due to the Board and may be recovered in any court of competent jurisdiction.
Marginal note:Variation of sanctions
196.1 (1) Subject to subsection (2), if a court has made, in relation to an offender, an order under section 196, the court may, on application by the offender or the Board, require the offender to appear before it and, after hearing the offender and the Board, vary the order in one or more of the following ways that the court considers appropriate because of a change in the offender’s circumstances since the order was made:
(a) by making changes to any prohibition, direction, requirement or condition that is specified in the order for any period or by extending the period during which the order is to remain in force, not exceeding one year; or
(b) by decreasing the period during which the order is to remain in force or by relieving the offender of compliance with any condition that is specified in the order, either absolutely or partially or for any period.
Marginal note:Notice
(2) Before making an order under subsection (1), the court may direct that notice be given to any persons that the court considers to be interested, and may hear any of those persons.
Marginal note:Subsequent applications with leave
196.2 If an application made under subsection 196.1(1) in relation to an offender has been heard by a court, no other application may be made under section 196.1 in relation to the offender except with leave of the court.
Marginal note:Recovery of fines and amounts
196.3 If a person is convicted of an offence under this Part and a fine that is imposed is not paid when required or if a court orders an offender to pay an amount under subsection 196(1) or 196.1(1), the prosecutor may, by filing the conviction or order, as the case may be, enter as a judgment the amount of the fine or the amount ordered to be paid, and costs, if any, in the Supreme Court of Newfoundland and Labrador, and the judgment is enforceable against the person in the same manner as if it were a judgment rendered against them in that Court in civil proceedings.
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