Energy Administration Act (R.S.C., 1985, c. E-6)

Marginal note:Offence by employee or agent

32 In a prosecution for an offence under this Part, it is sufficient proof of the offence to show that it was committed by an employee or agent of the accused whether or not the employee or agent is identified or has been prosecuted for the offence, unless the accused establishes that the offence was committed without his knowledge or consent and that he exercised all due diligence to prevent its commission.

Marginal note:Continuing offence

33 Where an offence under this Part is committed on more than one day, it shall be deemed to be a separate offence for each day on which the offence is committed or continued.

Marginal note:Limitation period

34 Any proceedings by way of summary conviction in respect of an offence under this Part may be instituted at any time within but not later than one year after the time when the subject-matter of the proceedings arose.

Regulations

Marginal note:Regulations

35 The Governor in Council may make regulations

• (a) prescribing the records, books of account or other documents that are to be kept by any person who purchases or sells any crude oil or who enters into any transaction described in section 26 and the form and contents of the information to be maintained in those records, books of account and documents;

• (b) prescribing the place in Canada where such records, books of account or other documents as are prescribed by the regulations are to be kept;

• (c) respecting the determination of the value of crude oil in circumstances where no consideration, or no consideration in money, is given therefor; and

• (d) providing for any matter or thing necessary to effect the purposes of this Part.

PART IVDomestic Gas

Interpretation

Marginal note:Definitions

• 36 (1) In this Part,

  consumption

  consumption means, in relation to gas, the action of using it as a fuel or energy source or consuming it in the manufacture of products of trade and commerce; (consommation)

  offshore area

  offshore area has the same meaning as in section 20; (zone extracôtière)

  prescribed price

  prescribed price means, in relation to any kind of gas, a price that is prescribed by regulation under this Part for that kind of gas; (prix imposé)

  price

  price means the value in money for a quantity of gas; (prix)

  producer-province

  producer-province means a province in which the quantities of gas ordinarily produced, extracted, recovered or manufactured in that province in a month are such that a significant quantity of that gas is normally available for use outside that province in each month; (province pétrolière)

  province of production

  province of production means, in relation to any quantity of gas, the producer-province in which it was produced, extracted, recovered or manufactured. (province d’origine)

• Marginal note:Method of prescribing price

  (2) A regulation made by the Governor in Council that prescribes a price at which a kind of gas is to be sold on or for delivery may

  • (a) fix a price for that gas;

  • (b) designate the prescribed price for that gas to be all the prices that are within a range of prices set out in the regulation;

  • (c) designate the prescribed price for that gas to be all the prices that do not exceed a maximum price set out in the regulation;

  • (d) designate the prescribed price for that gas to be a price that is determinable by reference to criteria or published information identified by the regulation; or

  • (e) designate the prescribed price for that gas to be a price that is established or calculable under a contract for the sale of the gas referred to in the regulation and that is on file with the Regulator.

• Marginal note:Effect of regulation prescribing price

  (3) A regulation referred to in subsection (2) may be conditional or unconditional, qualified or unqualified and may be general or restricted to a specific area, person, thing or kind or quantity of gas or to a group or class of persons, things, kinds or quantities.

• Marginal note:References in regulations

  (4) A reference in a regulation made under paragraph (2)(d) to criteria or published information shall, unless the regulation provides otherwise, be deemed to be a reference to the criteria or published information, as it is updated or published from time to time.

• Marginal note:Confidential contract price

  (5) A regulation made under paragraph (2)(e) need not specify the price that is established or calculable under a confidential contract between the parties thereto but need only identify the parties and the date of the contract.

Marginal note:Application of certain provisions

36.1 Subsections 36(2) to (5) apply, with such modifications as the circumstances require, in respect of any special or general order of the Commission of the Regulator referred to in subsection 43(1).

Application of Part

Marginal note:Application

37 This Part applies to gas that

• (a) enters into interprovincial or international trade; or

• (b) is brought, sent or delivered to a province from the offshore area in which it is produced, extracted, recovered or manufactured.

Purpose of Part

Marginal note:Purpose

38 The purpose of this Part is to provide legislative authority for measures that will, so far as may be practicable, enable the Government of Canada

• (a) [Repealed, R.S., 1985, c. 31 (2nd Supp.), s. 3]

• (b) to achieve a balance in Canada between the interests of consumers and producers in Canada;

• (c) to protect consumers in Canada from instability of prices for gas and to preserve a reasonable balance between the prices of alternative fuels in Canada; and

• (d) to encourage the discovery, development and production of a supply of gas adequate to the self-sufficiency of Canada.

Price Restraint

Marginal note:Provincial agreement on prices

39 With the approval of the Governor in Council, the Minister may enter into an agreement with the government of a producer-province for the purpose of establishing mutually acceptable prices for the various kinds of gas produced, extracted, recovered or manufactured in that province during such period as may be agreed on and for other purposes considered expedient to carry out the purpose of this Part.

Marginal note:Prescribing prices

• 40 (1) Where an agreement is entered into with a producer-province under section 39, the Governor in Council may, by regulation, prescribe prices at which the various kinds of gas to which this Part applies that are produced, extracted, recovered or manufactured in that province are to be sold on or for delivery in any areas or zones in Canada and outside that province or at any points of export from Canada.

• Marginal note:Prescribing prices

  (2) Notwithstanding subsection (1), the Governor in Council may, by regulation, prescribe prices at which the various kinds of gas to which this Part applies that are produced, extracted, recovered or manufactured in Yukon, the Northwest Territories or Nunavut are to be sold on or for delivery in any areas or zones in Canada and outside any of those territories or at any points of export from Canada.

• Marginal note:Idem

  (3) The Governor in Council may, by regulation, prescribe prices at which the various kinds of gas to which this Part applies that are produced, extracted, recovered or manufactured in an offshore area are to be sold on or for delivery in any areas or zones in Canada and outside that offshore area or at any points of export from the offshore area and in that case the provisions of this Part, except those that refer to an agreement with the government of a producer-province, that apply in respect of gas produced, extracted, recovered or manufactured in a province apply, with such modifications as the circumstances require, in respect of gas produced, extracted, recovered or manufactured in the offshore area as if the offshore area were a province of production.

• Marginal note:How prescribed price established

  (4) For the purpose of establishing prices pursuant to subsection (1) or section 42, the Governor in Council shall have regard to such matters as he deems requisite from time to time to achieve the purpose of this Part including

  • (a) transportation and other costs applicable to the movement of gas;

  • (b) the kinds of gas produced, extracted, recovered or manufactured in Canada;

  • (c) the prices of alternative fuels in interprovincial markets; and

  • (d) the probable effect on the producers and consumers in Canada of establishing prescribed prices for the various kinds of gas.

Marginal note:Application of certain provisions

• 41 (1) Subject to this section, sections 43 to 55 do not apply in respect of a producer-province until such time as the Governor in Council acquires authority under subsection 40(1) or section 42 to prescribe prices at which the various kinds of gas to which this Part applies that are produced, extracted, recovered or manufactured in that producer-province are to be sold on or for delivery in any areas or zones in Canada and outside that province or at any points of export from Canada.

• Marginal note:Idem

  (1.1) Sections 43 to 55 do not apply in respect of a producer-province during any period in which an order of the Governor in Council that declares those provisions to be non-applicable in respect of the province remains in effect.

• Marginal note:Territories or offshore area

  (2) Where the Governor in Council prescribes prices pursuant to subsection 40(2) or (3) at which the various kinds of gas to which this Part applies that are produced, extracted, recovered or manufactured in Yukon, the Northwest Territories, Nunavut or the offshore area, as the case may be, are to be sold, sections 43 to 55 apply in respect of any of those territories or that offshore area.

Marginal note:Where no price agreement effective

42 Where no agreement is entered into under section 39 with the government of a producer-province, or any such agreement is terminated by the declaration of the parties, or, in the opinion of the Governor in Council, is not effective or is not capable of being effective, the Governor in Council may, by regulation, prescribe prices at which the various kinds of gas to which this Part applies that are produced, extracted, recovered or manufactured in that province are to be sold on or for delivery in any areas or zones in Canada and outside the province or at any points of export from Canada.

Marginal note:Prohibition

• 43 (1) No person shall

  • (a) move any gas outside its province of production for consumption elsewhere unless the price paid to acquire that gas is a price approved by special or general orders of the Commission of the Regulator;

  • (b) purchase or otherwise acquire from within a producer-province or sell within a producer-province any gas for consumption outside that province unless the price paid therefor is a price approved by special or general orders of the Commission of the Regulator; or

  • (c) sell or purchase any gas outside its province of production unless the price paid therefor is a prescribed price for that gas.

• Marginal note:Saving

  (2) Paragraph (1)(c) does not apply in respect of a sale of gas in a province for consumption therein if the gas is purchased in that province otherwise than from a person who brought the gas out of its province of production or caused it to be brought therefrom.

Marginal note:Evidence required

44 No person shall transport, carry, convey or move any kind of gas out of its province of production or take delivery of any kind of gas outside its province of production unless there is documentary evidence recorded by the person that the price paid or to be paid therefor is a price approved by the Commission of the Regulator or a prescribed price, as the case may require.

Marginal note:Records

45 Every person who engages in a transaction described in section 43 shall keep records and books of account at his place of business in Canada, or elsewhere in Canada as the regulations may require, in such form and containing such information as will enable a determination to be made of the price at which any gas was purchased or sold in the course of the transaction.

Marginal note:Records

46 Every person who acquires any gas in a province other than its province of production from the person who brought the gas out of its province of production or caused it to be brought therefrom shall keep records and books of account at his place of business in Canada, or elsewhere in Canada as the regulations may require, in such form and containing such information as will enable a determination to be made of the price at which the gas was so acquired.

Offences and Punishment

Marginal note:Offences respecting records and other documents

47 Every person who

• (a) knowingly makes any false entry or statement in any record, book of account or other document required by this Part or any regulations thereunder to be kept, or

• (b) knowingly destroys, mutilates or falsifies any record, book of account or other document required by this Part or any regulations thereunder to be kept

is guilty of an offence and liable on summary conviction to a fine not exceeding one hundred thousand dollars or to imprisonment for a term not exceeding one year or to both.

Marginal note:Contravention of sections 43 and 44

• 48 (1) Every person who contravenes any of the provisions of sections 43 and 44 is guilty of an offence and liable

  • (a) on summary conviction, to a fine not exceeding one hundred thousand dollars or to imprisonment for a term not exceeding one year or to both; or

  • (b) on conviction on indictment, to a fine not exceeding one million dollars or to imprisonment for a term not exceeding five years or to both.

• Marginal note:Officers, etc., of corporation

  (2) Where a corporation commits an offence under this Part, any officer, director or agent 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.