Canada Oil and Gas Operations Act (R.S.C., 1985, c. O-7)

Financial Requirements

Marginal note:Compliance with certain provisions

5.03 The Commission of the Canadian Energy Regulator shall, before issuing an authorization for a work or activity referred to in paragraph 5(1)(b), ensure that the applicant has complied with the requirements of subsections 26.1(1) or (2) and 27(1) or (1.01) in respect of that work or activity.

Development Plan Approval

Marginal note:Approval of general approach of development

• 5.1 (1) No approval that is

  • (a) applicable to an authorization under paragraph 5(1)(b) to carry on work or activity in relation to developing a pool or field, and

  • (b) prescribed for the purposes of this subsection

   shall be granted unless the Commission of the Canadian Energy Regulator, on application submitted in accordance with subsection (2), has approved a development plan relating to the pool or field pursuant to subsection (4).

• Marginal note:Application and submission of development plan

  (2) For the purposes of subsection (1), an application for the approval of a development plan shall be submitted to the Canadian Energy Regulator in the form and containing the information fixed by the Canadian Energy Regulator, at such time and in such manner as may be prescribed, together with the proposed development plan in the form and containing the information described in subsection (3).

• Marginal note:Development plan in two parts

  (3) A development plan relating to the proposed development of a pool or field submitted pursuant to this section shall be set out in two parts, containing

  • (a) in Part I, a description of the general approach of developing the pool or field, and in particular, information, in such detail as may be prescribed, with respect to

    • (i) the scope, purpose, location, timing and nature of the proposed development,

    • (ii) the production rate, evaluations of the pool or field, estimated amounts of oil or gas proposed to be recovered, reserves, recovery methods, production monitoring procedures, costs and environmental factors in connection with the proposed development, and

    • (iii) the production system and any alternative production systems that could be used for the development of the pool or field; and

  • (b) in Part II, all technical or other information and proposals, as may be prescribed, necessary for a comprehensive review and evaluation of the proposed development.

• Marginal note:Approval of development plan

  (4) After reviewing an application and development plan submitted pursuant to this section, the Commission of the Canadian Energy Regulator may approve the development plan, subject to the consent of the Governor in Council in relation to Part I of the development plan and any requirements that the Commission considers appropriate or that may be prescribed.

• Marginal note:Approval of amendment to plan

  (5) Where a development plan has been approved pursuant to subsection (4),

  • (a) no amendment of the development plan shall be made unless it is approved by the Commission of the Canadian Energy Regulator and, in the case of an amendment to Part I of the development plan, the Governor in Council consents to the approval; and

  • (b) any requirement that the approval is subject to may be amended by the Commission of the Canadian Energy Regulator but, if the requirement relates to Part I of the development plan, it may only be amended with the consent of the Governor in Council.

• Marginal note:Application of certain provisions

  (6) Subsections (1) to (5) apply, with such modifications as the circumstances require, with respect to a proposed amendment to a development plan or to any requirement that the approval of the plan is subject to.

• Marginal note:Straddling resources — approval

  (6.1) Despite subsection (4), the Commission of the Canadian Energy Regulator may approve a development plan in relation to developing a straddling resource, subject to

  • (a) the consent of the Governor in Council and the Executive Council of the Northwest Territories in relation to Part I of the plan; and

  • (b) any requirements that the Commission considers appropriate or that may be prescribed.

• Marginal note:No consent

  (6.2) If the Governor in Council and the Executive Council of the Northwest Territories do not consent in relation to Part I of the plan, the Minister or the Government of the Northwest Territories may notify the other of their intention to refer the matter to an independent expert for a decision in accordance with section 48.095.

• Marginal note:Expert’s decision

  (6.3) The expert’s decision in relation to the development plan is deemed to be a development plan that is approved by the Commission of the Canadian Energy Regulator and in relation to Part I of the plan is deemed to be one that is consented to by the Governor in Council and the Executive Council of the Northwest Territories.

• Marginal note:Amendment

  (6.4) If a development plan is approved under subsection (6.1) or deemed to be approved under subsection (6.3), no amendment is to be made to the plan unless it is approved by the Commission of the Canadian Energy Regulator and, in the case of an amendment to Part I of the plan, consented to by the Governor in Council and the Executive Council of the Northwest Territories.

• Marginal note:Amendment — application of subsections (6.1) to (6.4)

  (6.5) Subsections (6.1) to (6.4) apply, with any modifications that the circumstances require, in respect of a proposed amendment to a development plan.

• Marginal note:Transboundary pool or field

  (7) The definitions in sections 29 and 48.15 apply in subsections (8) to (12).

• Marginal note:Approval subject to agreement and consent

  (8) Despite subsection (4), a development plan submitted for approval in respect of a work or activity in a transboundary pool or field that is the subject of a joint exploitation agreement is not to be approved by the Commission of the Canadian Energy Regulator unless the appropriate regulator has agreed to its content. That approval is subject to the consent of the Governor in Council in relation to Part I of the development plan and any requirements that the Commission and regulator have agreed are appropriate or that may be prescribed.

• Marginal note:Disagreement

  (9) In the case of a disagreement about the content of the plan submitted for approval, or any of the requirements for approval referred to in subsection (8), the Minister, on the Commission of the Canadian Energy Regulator’s behalf, or the regulator may refer the matter to an expert in accordance with section 48.27.

• Marginal note:Submissions in relation to Part I

  (10) Any submissions to the expert by the Minister on the Commission of the Canadian Energy Regulator’s behalf regarding Part I of the development plan are subject to the prior consent of the Governor in Council.

• Marginal note:Expert’s decision

  (11) The expert’s decision is deemed to be approval by the Commission of the Canadian Energy Regulator of the plan, and Part I of that plan is deemed to have been consented to by the Governor in Council under subsection (8).

• Marginal note:Application of certain provisions

  (12) Subsections (7) to (11) apply, with any necessary modifications, with respect to a proposed amendment to a development plan to which a work or activity in a transboundary pool or field or to any requirement that the approval of the plan is subject.

Declarations

Marginal note:Declaration by applicant

• 5.11 (1) Subject to subsection (2), no authorization under paragraph 5(1)(b) shall be issued unless the Commission of the Canadian Energy Regulator has received, from the applicant for the authorization, a declaration in the form fixed by the Commission of the Canadian Energy Regulator that states that

  • (a) the equipment and installations that are to be used in the work or activity to be authorized are fit for the purposes for which they are to be used, the operating procedures relating to them are appropriate for those uses, and the personnel who are to be employed in connection with them are qualified and competent for their employment; and

  • (b) the applicant shall ensure, so long as the work or activity that is authorized continues, that the equipment and installations continue to be fit for the purposes for which they are used, the operating procedures continue to be appropriate for those uses, and the personnel continue to be so qualified and competent.

• Marginal note:Declaration by owner

  (2) The Commission of the Canadian Energy Regulator may accept, in respect of equipment that is to be used in the work or activity to be authorized, a declaration from the owner of the equipment in lieu of a declaration from the applicant for the authorization, and such a declaration shall be in a form fixed by the Commission of the Canadian Energy Regulator and shall state that

  • (a) the equipment is fit for the purpose for which it is to be used, the operating procedures relating to it are appropriate for that use, and the personnel who are to be employed by the owner in connection with it are qualified and competent for their employment; and

  • (b) the owner shall ensure that, so long as the equipment is used in the work or activity that is authorized, that the equipment continues to be fit for the purpose for which it is used, the operating procedures continue to be appropriate for that use, and the personnel continue to be so qualified and competent.

• Marginal note:Changes

  (3) Where the equipment, an installation, the operating procedures or any of the personnel specified in the declaration changes and no longer conforms to the declaration, the holder of the authorization shall provide the Commission of the Canadian Energy Regulator with a new declaration as soon as possible after the change occurs.

• Marginal note:Immunity

  (4) The Commission of the Canadian Energy Regulator or any delegate of the Commission of the Canadian Energy Regulator is not liable to any person by reason only of having issued an authorization in reliance on a declaration made under this section.

Certificates

Marginal note:Certificate

• 5.12 (1) No authorization under paragraph 5(1)(b) shall be issued with respect to any prescribed equipment or installation, or any equipment or installation of a prescribed class, unless the Commission of the Canadian Energy Regulator has received, from the applicant for the authorization, a certificate issued by a certifying authority in the form fixed by the Commission of the Canadian Energy Regulator.

• Marginal note:Continuing obligation

  (2) The holder of an authorization shall ensure that the certificate referred to in subsection (1) remains in force for so long as the equipment or installation to which the certificate relates is used in the work or activity in respect of which the authorization is issued.

• Marginal note:Contents of certificate

  (3) A certificate referred to in subsection (1) shall state that the equipment or installation in question

  • (a) is fit for the purposes for which it is to be used and may be operated safely without posing a threat to persons or to the environment in the location and for the time set out in the certificate; and

  • (b) is in conformity with all of the requirements and conditions that are imposed for the purposes of this section by subsection 5(4), whether they are imposed by regulation or by the Commission of the Canadian Energy Regulator.

• Marginal note:Validity of certificate

  (4) A certificate referred to in subsection (1) is not valid if the certifying authority

  • (a) has not complied with any prescribed procedure or any procedure that the Commission of the Canadian Energy Regulator may establish; or

  • (b) is a person or an organization that has participated in the design, construction or installation of the equipment or installation in respect of which the certificate is issued, to any extent greater than that prescribed.

• Marginal note:Access

  (5) An applicant shall permit the certifying authority to have access to the equipment and installation in respect of which the certificate is required and to any information that relates to them.

• Marginal note:Definition of “certifying authority”

  (6) For the purposes of this section, certifying authority has the meaning assigned by the regulations.

• Marginal note:Immunity

  (7) The Commission of the Canadian Energy Regulator or any delegate of the Commission of the Canadian Energy Regulator is not liable to any person by reason only of having issued an authorization in reliance on a certificate issued under this section.

Benefits Plan Approval

Definition of benefits plan

• 5.2 (1) In this section, benefits plan means a plan for the employment of Canadians and for providing Canadian manufacturers, consultants, contractors and service companies with a full and fair opportunity to participate on a competitive basis in the supply of goods and services used in any proposed work or activity referred to in the benefits plan.

• Marginal note:Benefits plan

  (2) No approval of a development plan shall be granted under subsection 5.1(1) and no authorization of any work or activity shall be issued under paragraph 5(1)(b), until the Minister has approved, or waived the requirement of approval of, a benefits plan in respect of the work or activity.

• Marginal note:Affirmative action programs

  (3) The Minister may require that any benefits plan submitted pursuant to subsection (2) include provisions to ensure that disadvantaged individuals or groups have access to training and employment opportunities and to enable such individuals or groups or corporations owned or cooperatives operated by them to participate in the supply of goods and services used in any proposed work or activity referred to in the benefits plan.

• Marginal note:Transboundary pool or field

  (4) The definitions in sections 29 and 48.15 apply in subsections (5) and (6).

• Marginal note:Approval subject to agreement

  (5) A benefits plan submitted for approval in respect of a work or activity in a transboundary pool or field that is the subject of a joint exploitation agreement is not to be approved under subsection (2) unless the Minister and the appropriate regulator have agreed to its content.

• Marginal note:Disagreement — Minister and regulator

  (6) The Minister or the regulator may, if they disagree about the content of the plan submitted for approval, refer the matter to an expert in accordance with section 48.27. The expert’s decision is deemed to be approval by the Minister of the plan.

Guidelines and Interpretation Notes

Marginal note:Board guidelines and interpretation notes

• 5.3 (1) The Canadian Energy Regulator may issue and publish, in any manner the Regulator considers appropriate, guidelines and interpretation notes with respect to the application and administration of section 5, 5.1 and 13.02 and subsection 27(1.01) and any regulations made under section 4.2, 13.17 and 14.

• Marginal note:Ministerial guidelines and interpretation notes

  (2) The Minister may issue and publish, in any manner the Minister considers appropriate, guidelines and interpretation notes with respect to the application and administration of section 5.2.

• Marginal note:Not statutory instruments

  (3) For greater certainty, guidelines and interpretation notes issued pursuant to subsections (1) and (2) are not statutory instruments as defined in the Statutory Instruments Act.