Canadian Energy Regulator Act (S.C. 2019, c. 28, s. 10)

DIVISION 4Implementation of Free Trade Agreements

Marginal note:Definitions

373 The following definitions apply in this Division.

CCFTA

CCFTA has the same meaning as Agreement as defined in subsection 2(1) of the Canada-Chile Free Trade Agreement Implementation Act. (ALÉCC)

CCRFTA

CCRFTA has the same meaning as Agreement as defined in subsection 2(1) of the Canada — Costa Rica Free Trade Agreement Implementation Act. (ALÉCCR)

CUSMA

CUSMA has the meaning assigned by the definition Agreement in section 2 of the Canada–United States–Mexico Agreement Implementation Act. (ACEUM)

energy goods

energy goods means any goods for the exportation of which a licence or permit issued under this Part or an order made under the regulations is required. (produits énergétiques)

NAFTA

NAFTA[Repealed, 2020, c. 1, s. 208]

Marginal note:Principle

• 374 (1) In exercising its powers and performing its duties and functions, the Regulator must give effect to CUSMA, the CCFTA and the CCRFTA.

• Marginal note:Directions

  (2) The Governor in Council may, either on the recommendation of the Minister made at the request of the Regulator or on the Governor in Council’s own motion, give directions respecting the manner in which the Regulator is to perform the duty imposed on it by subsection (1) or the interpretation to be given to CUSMA, the CCFTA or the CCRFTA by the Regulator for the purposes of this Act.

• Marginal note:Effect

  (3) A direction issued under subsection (2) is binding on the Regulator from the time it comes into force and, unless it provides otherwise, applies in respect of matters pending before the Regulator at that time.

• Marginal note:Request of Regulator

  (4) The Regulator may, in order to request the issuance of a direction under subsection (2), suspend the determination of any matter of which it is seized.

Marginal note:Declaration of Governor in Council

375 The Governor in Council may, by order, declare that the maintenance or introduction of a restriction on the exportation to Chile or Costa Rica of energy goods or of any quality, kind or class of energy goods is justified under Article C-13 of the CCFTA or Article III.11 of the CCRFTA, as the case may be.

Marginal note:Request for declaration

376 If, in the course of determining an application for a licence or permit, or determining whether to make an order, for the exportation to Chile or Costa Rica of energy goods or of any quality, kind or class of energy goods, the Commission considers that the maintenance or introduction of a restriction on that exportation is in the public interest and that subparagraph 1(a), (b) or (c) of Article C-13 of the CCFTA or subparagraph 1(a), (b) or (c) of Article III.11 of the CCRFTA, as the case may be, would apply as a consequence of the restriction, the Commission may, in order to request that the Minister recommend to the Governor in Council that an order be made under section 375 in respect of the relevant energy goods, suspend the determination until not later than 120 days after the day on which the request is made.

Marginal note:Exportation to Chile or Costa Rica

• 377 (1) The Commission may neither refuse to issue a licence or permit or make an order nor suspend, revoke or vary a licence, permit or order for the exportation to Chile or Costa Rica of energy goods or of any quality, kind or class of energy goods if that refusal, revocation, suspension or variation would constitute the maintenance or introduction of a restriction on that exportation as a consequence of which subparagraph 1(a), (b) or (c) of Article C-13 of the CCFTA or subparagraph 1(a), (b) or (c) of Article III.11 of the CCRFTA, as the case may be, would apply.

• Marginal note:Exception

  (2) Subsection (1) does not apply in respect of the exportation to Chile or Costa Rica of any energy goods, or of any quality, kind or class of energy goods, referred to in an order made under section 375 while the order is in force.

• Marginal note:Application or consent

  (3) Despite subsection (1), the Commission may suspend, revoke or vary a licence, permit or order if the holder of the licence, the holder of the permit or the person named in the order, as the case may be, applies for or consents to the suspension or revocation.

Marginal note:No declaration made

378 Despite not being satisfied that the criteria set out in section 345 have been met, the Commission may issue a licence for the exportation to Chile or Costa Rica of any energy goods, or of any quality, kind or class of energy goods, referred to in a request made under section 376 if

• (a) the Minister declines to recommend to the Governor in Council that an order be made under section 375;

• (b) the Governor in Council declines to make the order; or

• (c) no order is made within 120 days after the day on which the request is made.

DIVISION 5Offences and Punishment

Marginal note:Offence and punishment

• 379 (1) Every person who contravenes any of the provisions of this Part or the regulations made under this Part is guilty of an offence and liable

  • (a) on summary conviction, to a fine not exceeding $100,000 or to imprisonment for a term not exceeding one year, or to both; or

  • (b) on conviction on indictment, to a fine not exceeding $1,000,000 or to imprisonment for a term not exceeding five years, or to both.

• Marginal note:Due diligence

  (2) A person is not to be found guilty of an offence under subsection (1) if they establish that they exercised due diligence to prevent the commission of the offence.

• Marginal note:Officers, directors, agents and mandataries

  (3) If a corporation commits an offence under subsection (1), any officer or director, or agent or mandatary, of the corporation who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and is liable on conviction to the punishment provided for the offence whether or not the corporation has been prosecuted or convicted.

• Marginal note:Proof of offence

  (4) In any prosecution for an offence under subsection (1), it is sufficient proof of the offence to show that it was committed by an employee, or an agent or mandatary, of the accused, whether or not the employee, or agent or mandatary, is identified or has been prosecuted for the offence, unless the accused establishes that the offence was committed without the knowledge or consent of the accused and that the accused exercised due diligence to prevent its commission.

• Marginal note:Continuing offence

  (5) If an offence under subsection (1) is committed on more than one day, it is deemed to be a separate offence for each day on which the offence is committed or continued.

• Marginal note:Limitation period or prescription

  (6) Proceedings by way of summary conviction in respect of an offence under subsection (1) may be instituted at any time within but not later than one year after the day on which the subject matter of the proceedings arose.

Marginal note:Powers of certain officers

380 An officer as defined in subsection 2(1) of the Customs Act has, in respect of the exportation or importation of oil or gas, all the powers of an officer under the Customs Act and, except to the extent that they are inconsistent with any regulations made under paragraph 353(1)(e), the provisions of that Act and any regulations made under that Act respecting search, detention, seizure, forfeiture, condemnation and disposition apply, with any modifications that the circumstances require, to oil or gas tendered for exportation or importation or exported or imported or otherwise dealt with contrary to this Part.

PART 8Oil and Gas Interests, Production and Conservation

Interpretation

Marginal note:Definitions of oil and gas

381 For the purposes of this Part, oil and gas have the same meaning as in subsection 2(1) of the Canada Oil and Gas Operations Act.

Declarations of Significant Discovery and Commercial Discovery

Marginal note:Application

• 382 (1) This section applies to any decision of the Commission to make, amend or revoke a declaration of significant discovery under section 28 of the Canada Petroleum Resources Act or a declaration of commercial discovery under section 35 of that Act.

• Marginal note:Notice

  (2) At least 30 days before making a decision to which this section applies, the Commission must give written notice of its intention to make the decision to any person the Commission considers to be directly affected by the decision.

• Marginal note:Request for hearing

  (3) A person to whom notice is given may, in writing, request a hearing in respect of the decision, but the request must be received by the Commission within 30 days after the day on which notice is given.

• Marginal note:No request for hearing

  (4) If no request is received in accordance with subsection (3), the Commission may make the decision.

• Marginal note:Hearing

  (5) If a request is received in accordance with subsection (3), the Commission must fix a time and place for the hearing and notify each person who requested the hearing.

• Marginal note:Representations

  (6) Each person who requests a hearing may make representations and introduce witnesses and documents at the hearing.

• Marginal note:Decision

  (7) The Commission must make its decision and give notice of that decision to each person who requested the hearing and, on that person’s request, the Commission must make the reasons for its decision public.

Operating Licences and Authorizations

Marginal note:Variation of licences or authorizations

383 The Commission or a person to whom powers are delegated under section 4.1 of the Canada Oil and Gas Operations Act may vary the conditions of any operating licence or authorization issued under section 5 of that Act.

Chief Conservation Officer and Chief Safety Officer

Marginal note:Application to appeals

• 384 (1) This section applies to appeals brought under section 21 or subsection 25(8) of the Canada Oil and Gas Operations Act by a person aggrieved by an order of the Chief Conservation Officer or by any action or measure taken or authorized or directed to be taken by that Officer, other than the referral of an order to the Commission under subsection 58(5) of that Act.

• Marginal note:Powers

  (2) After hearing an appeal to which this section applies, the Commission may

  • (a) set aside, confirm or vary the order, action or measure that is the subject of the appeal;

  • (b) order any works to be undertaken that the Commission considers necessary to prevent waste, the escape of oil or gas or any other contravention of the Canada Oil and Gas Operations Act or the regulations made under that Act; or

  • (c) make any other order that the Commission considers appropriate.

Marginal note:Show cause hearing relating to waste

• 385 (1) This section applies to applications by the Chief Conservation Officer to the Commission under section 22 of the Canada Oil and Gas Operations Act for a show cause hearing relating to waste, as defined in paragraph 18(2)(f) or (g) of that Act, in the recovery of oil or gas from a pool.

• Marginal note:Order

  (2) On receiving an application, the Commission must make an order requiring the operators within the pool to show cause at a hearing, to be held on a day specified in the order, why the Commission should not make a direction in respect of the waste.

• Marginal note:Hearing

  (3) On the day specified in the order, the Commission must hold a hearing at which the Chief Conservation Officer, the operators and other interested persons must be given an opportunity to be heard.

• Marginal note:Order

  (4) If, after the hearing, the Commission considers that waste is occurring in the recovery of oil or gas from a pool, it may, by order,

  • (a) direct the introduction of a scheme for the collection, processing, disposition or reinjection of any gas produced from the pool; or

  • (b) direct repressurizing, recycling or pressure maintenance for the pool or any part of the pool and for or incidental to that purpose, direct the introduction or injection of gas, water or any other substance into the pool or any part of the pool.

• Marginal note:Additional order

  (5) In addition to making an order under subsection (4), the Commission may, by order, direct that the pool or any part of the pool specified in the order be shut in if the requirements of the order are not met or unless a scheme is approved by the Commission and in operation by a date fixed in the order.

• Marginal note:Continuation pending approval

  (6) Despite subsections (4) and (5), the Commission may, by order, permit the continued operation of a pool or any part of a pool after the date fixed by an order made under this section if the Commission considers that a scheme or other action described in paragraph (4)(a) or (b) is in the course of preparation, but the continued operation is subject to any conditions the Regulator imposes.