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

Native Claims

Marginal note:Native claims unaffected

25 Notwithstanding this Act, any native claim, right, title or interest that the native people of Canada may have had prior to April 13, 1978 in and to the land on which the pipeline will be situated continues to exist until a settlement in respect of any such claim, right, title or interest is effected.

Penalties

Marginal note:Notice of failure to comply

• 26 (1) Where a company 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), or

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

  the designated officer may

  • (c) give the company written notice of the failure and set, in the notice, a time within which the company shall comply with the term or condition or order or direction, and

  • (d) cause the notice to be served on the company by registered mail or in person.

• Marginal note:Penalty

  (2) Where, pursuant to subsection (1), the designated officer gives the company notice of failure to comply and the company fails, within the time set out in the notice and without lawful excuse, to comply with the term or condition or order or direction, set out in the notice, the Minister may issue an assessment against the company imposing a penalty, not exceeding ten thousand dollars for each day during which the failure continues, on the company.

• Marginal note:Notice of assessment

  (3) Where the Minister issues an assessment under subsection (2) against a company, he shall cause a notice of the assessment to be served forthwith on the company and notice thereof to be published in the Canada Gazette.

• Marginal note:Objection

  (4) A company that objects to an assessment under subsection (2) may, within thirty days from the day of mailing of the notice of assessment, serve on the Minister a notice of objection, in duplicate, in such form as the Governor in Council may prescribe setting out the reason for the objection and the relevant facts.

• Marginal note:Service

  (5) A notice of assessment under subsection (3) and a notice of objection under subsection (4) shall be served by being sent by registered mail.

• Marginal note:Representation

  (6) On receipt of a notice of objection under subsection (4) from a company, the Minister shall, with all due dispatch, reconsider the assessment objected to and vacate, confirm or vary the assessment and he shall thereupon notify the company of his action by registered mail.

Marginal note:Right of appeal

• 27 (1) Where a company receives a notice referred to in subsection 26(6), the company may, within thirty days after receipt of the notice and without serving a notice of objection to the action taken by the Minister under that subsection, appeal the action to the Federal Court.

• Marginal note:Institution of appeal

  (2) An appeal to the Federal Court under subsection (1) shall be instituted in the manner set out in section 48 of the Federal Courts Act.

• Marginal note:Burden of proof

  (3) In an appeal under this section, the burden of establishing the facts justifying the assessment of the penalty is on the Minister.

• Marginal note:Disposal of appeal

  (4) The Federal Court may dispose of an appeal under this section by

  • (a) allowing it;

  • (b) dismissing it; or

  • (c) dismissing it and varying the penalty but, in varying the penalty, the Federal Court shall not increase the penalty beyond the maximum penalty permitted by section 26.

Marginal note:Debt due Her Majesty

28 A penalty payable under this Act is a debt due to Her Majesty in right of Canada and is recoverable as such in the Federal Court or any other court of competent jurisdiction.

Cost Recovery

Marginal note:Costs of Agency to be recovered

• 29 (1) Every certificate of public convenience and necessity declared to be issued by subsection 21(1) to a company is subject to the condition that the company shall annually pay to the Receiver General an amount equal to the costs that are attributable to the Agency’s responsibilities under this Act and that are incurred by the Agency in the previous fiscal year with respect to that company.

• Marginal note:Invoicing

  (2) The Agency shall, no later than November 15 in each year, issue to each company an invoice for the amount payable under subsection (1).

• Marginal note:Payment period

  (3) Any amount that is payable under subsection (1) shall be paid no later than the 30th day after the date of the invoice.

• Marginal note:Interest

  (4) If a company fails to pay any amount invoiced within the required period, the company shall pay interest on the outstanding amount at a rate of 1.5% per month, compounded monthly, beginning on the 31st day after the date of the invoice.

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.