Northern Pipeline Act (R.S.C., 1985, c. N-26)

Marginal note:Where Minister may perform terms and conditions

• 30 (1) Where a company fails or refuses to comply with a term or condition to which the certificate of public convenience and necessity declared to be issued to it is subject or with an order or direction issued to it pursuant to subsection 22(1), the Minister may, after thirty days notice of his intention to do so, take all reasonable measures, or direct any person he considers qualified to do so to take such measures, as are required to perform the term or condition or carry out the order or direction, unless within the thirty days the company has complied with the term or condition or order or direction, as the case may be, or has made arrangements that are satisfactory to the Minister to comply with the term or condition or order or direction.

• Marginal note:Access to property

  (2) Where, pursuant to subsection (1), the Minister or another person undertakes the performance of a term or condition or the carrying out of an order or direction, the Minister or that other person may enter and have access through any place or property and may do all reasonable things in order to perform the term or condition or carry out the order or direction.

• Marginal note:Personal liability

  (3) The Minister or any person he directs, pursuant to subsection (1), to perform a term or condition or carry out an order or direction is not personally liable civilly or criminally in respect of any act or omission in the course of performing the relevant term or condition or carrying out the order or direction under that subsection unless it is shown that he did not act reasonably.

• Marginal note:Liability to Her Majesty

  (4) Where, pursuant to subsection (1), the Minister or any person he directs to perform a term or condition or carry out an order or direction takes such reasonable measures as are required to perform the term or condition or carry out the order or direction that a company has failed or refused to comply with, the company is liable for all costs and expenses connected therewith incurred by Her Majesty in right of Canada to the extent that those costs and expenses can be established to have been reasonably incurred in the circumstances.

• Marginal note:Procedure

  (5) A claim under this section against a company may be sued for and recovered by Her Majesty in right of Canada with costs in proceedings brought or taken therefor in the name of Her Majesty in that right in any court of competent jurisdiction.

• Marginal note:Limitation

  (6) No proceedings in respect of a claim under this section may be commenced after two years from the time the Minister or any person he directed, pursuant to subsection (1), to perform a term or condition or carry out an order or direction completed such reasonable measures as were required to perform the term or condition or carry out the order or direction that the company failed or refused to comply with.

PART IITraffic, Tolls and Tariffs

Application

Marginal note:Application

• 31 (1) Sections 225 to 240 of the Canadian Energy Regulator Act, as modified by this Part, apply to every company and if there is any conflict between this Part and the Canadian Energy Regulator Act, this Part prevails.

• Marginal note:Single tariff

  (2) If, in the opinion of the Commission of the Regulator, it is desirable that a single tariff be established in Canada in respect of the pipeline, the Commission of the Regulator may, on application of Foothills Pipe Lines (Yukon) Ltd. or on its own motion, by order, require Foothills Pipe Lines (Yukon) Ltd. to file such a tariff and, if the Commission of the Regulator does so, Foothills Pipe Lines (Yukon) Ltd. is deemed to be a company for the purposes of this Part and sections 225 to 240 of the Canadian Energy Regulator Act and every other company is relieved from any obligation to file a tariff until the Commission of the Regulator rescinds that order.

Consultation

Marginal note:Consultation with United States regulatory authorities

32 The Commission of the Regulator may, in order to carry out the obligation set out in paragraph 9 of the Agreement, consult with the appropriate regulatory authority of the United States with respect to matters set out in the Agreement.

Tolls and Tariffs

Marginal note:Commission of the Regulator to apply Agreement

33 The Commission of the Regulator shall, in fixing the tolls and tariffs of a company, apply the requirements of the Agreement, in particular the requirements of paragraphs 4, 5, 6, 11 and 12 thereof, and shall include in its determination of an appropriate toll and tariff any amounts, not exceeding the maximum amounts set out in the Agreement, paid by the company on account of the Yukon road allowance and Yukon property tax.

Marginal note:Rate of return

34 The Commission of the Regulator shall, in determining an appropriate rate of return on equity investment in a company,

• (a) take into account

  • (i) the capital cost estimates set out in the Agreement, and

  • (ii) the extent to which variations in actual costs from the estimates referred to in subparagraph (i) were within or outside the control of the company;

• (b) establish a rate of return, taking into account the factors set out in paragraph (a), that is not detrimental, when taken into account with the rate of return of every other company, to the financing of the Dempster Line described in the Agreement; and

• (c) comply with such regulations as the Governor in Council may make prescribing or otherwise relating to the manner of calculating the rate of return.

Marginal note:Prior approval

35 Where a company files a tariff at the time the financing of the pipeline is being considered, the Regulator may approve the form and content of the tariff and the rate of return on the equity investment of the company.

Regulations

Marginal note:Regulations

36 The Governor in Council may make such regulations under this Part in respect of tolls and tariffs as may be necessary to give effect to the Agreement including regulations prescribing or otherwise relating to the manner of calculating an appropriate rate of return on equity investment of a company and the methods of applying the incentive scheme set out in subparagraph 4(b) of the Agreement.

PART IIIReal Property

Marginal note:Commissioner’s lands

• 37 (1) If the Governor in Council is of the opinion that lands in Yukon are required temporarily or otherwise for the construction, maintenance or operation of the pipeline including, without limiting the generality of the foregoing, lands required for camps, roads and other related works, the Governor in Council may, by order, after consultation with the member of the Executive Council of Yukon who is responsible for the lands, take the administration and control of them from the Commissioner and transfer the administration of those lands to the Minister.

• Marginal note:Company to provide plans of lands required

  (2) Foothills Pipe Lines (South Yukon) Ltd. shall provide the Minister with a copy of all plans, profiles and books of reference certified by the designated officer pursuant to subsection 7(2) showing the real property in Yukon vested in Her Majesty in right of Canada that are required to permit construction of the pipeline.

• Marginal note:Grant of easement to company

  (3) Where Foothills Pipe Lines (South Yukon) Ltd. provides the Minister with a copy of the plans, profiles and books of reference referred to in subsection (2), the Governor in Council may authorize, on such terms and conditions as he considers appropriate, the grant of an easement to Foothills Pipe Lines (South Yukon) Ltd. for the construction of the pipeline and, on the giving of leave to open the last section or part of the pipeline by the Commission of the Regulator and subject to subsection (4), for the purpose of the operation and maintenance thereof.

• Marginal note:Company to file plan of survey

  (4) Within two years after leave to open the last section or part of the pipeline has been given by the Commission of the Regulator or any further period, not exceeding six months, that the Governor in Council may approve, Foothills Pipe Lines (South Yukon) Ltd. shall send to the Surveyor General at Ottawa a plan of survey under Part II of the Canada Lands Surveys Act, for confirmation by the Surveyor General under that Act, as an official plan in respect of lands in Yukon vested in Her Majesty in right of Canada required for the maintenance and operation of the pipeline.

PART IVGeneral

Offences

Marginal note:Offences

• 38 (1) Every person who wilfully and without lawful excuse fails to comply with

  • (a) a term or condition of a certificate of public convenience and necessity declared to be issued by subsection 21(1),

  • (b) an order issued by the Commission of the Regulator or the designated officer in relation to such a certificate, or

  • (c) any other provision of this Act,

  is guilty of an offence and liable on summary conviction to a fine not exceeding ten thousand dollars.

• Marginal note:Officers, etc., of companies

  (2) Where a company commits an offence under this Act, any officer, director or agent of the company 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 company has been prosecuted or convicted.

• Marginal note:Continuing offence

  (3) Where an offence under this Act is committed or continued 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

  (4) Proceedings in respect of an offence under this Act may be instituted at any time within one year of the time the subject-matter of the proceedings arose.

• Marginal note:Consent of Attorney General of Canada

  (5) Proceedings in respect of an offence under this Act may not be instituted without the consent of the Attorney General of Canada.

Transitional

Marginal note:Transitional

39 When Part I, except sections 21, 29 and 30, ceases to be in force, any power given to the Minister, the Agency or the designated officer with respect to a certificate of public convenience and necessity declared to be issued by this Act is transferred to the Commission of the Regulator.

Termination of Part I

Marginal note:Part I ceases to apply

• 40 (1) Subject to subsection (2), section 4 and Part I, except sections 21, 29 and 30, cease to be in force one year after the day on which leave to open the last section or part of the pipeline is given by the Commission of the Regulator.

• Marginal note:Extension of Act

  (2) Where, prior to the day on which leave to open the last section or part of the pipeline is given by the Commission of the Regulator, a certificate of public convenience and necessity is issued for the construction of the lateral pipeline to transmit northern Canadian gas, referred to in the Agreement as the Dempster Line, and both Houses of Parliament, by joint resolution, direct that section 4 and that part of Part I that would cease to be in force under subsection (1) shall continue in force with such amendments as are provided in that resolution, section 4 and that part of Part I as amended by the joint resolution continue in force in accordance with that joint resolution.