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

Marginal note:Holder’s powers

13.16 A holder may, for the purposes of its undertaking and subject to the provisions of this Act, transmit oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas by pipeline and regulate the time and manner in which it shall be transmitted and the tolls to be charged for the transmission.

Regulations

Marginal note:Regulations

13.17 The Governor in Council may make regulations for the purposes of this Part, designating as oil or gas any substance resulting from the processing or refining of hydrocarbons or coal if that substance

• (a) is asphalt or a lubricant; or

• (b) is a suitable source of energy by itself or when it is combined or used in association with something else.

PART IRegulation of Operations

Regulations

Marginal note:Governor in Council’s regulatory power

• 14 (1) The Governor in Council may, for the purposes of safety, the protection of the environment, and accountability as well as for the production and conservation of oil and gas resources, make regulations

  • (a) defining oil and gas, for the purposes of Parts I and II, installation and equipment for the purposes of sections 5.11 and 5.12 and “serious” for the purposes of section 28;

  • (b) concerning the exploration and drilling for, and the production, processing and transportation of, oil or gas in any area to which this Act applies and works and activities related to such exploration, drilling, production, processing and transportation;

  • (b.1) concerning the measures to be taken in preparation for or in the case of a spill, as defined in subsection 24(1), including measures concerning the use of a spill-treating agent;

  • (b.2) concerning the process for the determination of net environmental benefit;

  • (b.3) concerning the variation or revocation of an approval referred to in paragraph 25.1(1)(b);

  • (c) authorizing the Commission of the Canadian Energy Regulator, or any person, to make such orders as may be specified in the regulations and to exercise such powers and perform such duties as may be necessary for

    • (i) the management and control of oil or gas production,

    • (ii) the removal of oil or gas from the areas to which this Act applies, and

    • (iii) the design, construction, operation or abandonment of pipeline within the areas to which this Act applies;

  • (d) concerning arbitrations for the purposes of subsection 5.01(2) including the costs of or incurred in relation to such arbitrations;

  • (e) concerning the approvals to be granted as conditions of authorizations issued under paragraph 5(1)(b);

  • (f) concerning certificates for the purposes of section 5.12;

  • (g) prohibiting the introduction into the environment of substances, classes of substances and forms of energy in prescribed circumstances;

  • (h) authorizing the discharge, emission or escape of oil or gas for the purposes of subsection 24(1), in such quantities, at such locations, under such conditions and by such persons as may be specified in the regulations;

  • (h.1) establishing the requirements for a pooled fund for the purposes of subsection 27(1.01);

  • (h.2) concerning the circumstances under which the Commission of the Canadian Energy Regulator may make a recommendation for the purposes of subsection 27.1(1) and the information to be submitted with respect to that recommendation;

  • (h.3) concerning the creation, conservation and production of records; and

  • (i) prescribing anything that is required to be prescribed for the purposes of this Act.

• Marginal note:Incorporation of standards or specifications

  (2) Unless otherwise provided in this Act, regulations made under subsection (1) may incorporate by reference the standards or specifications of any government, person or organization, either as they read at a fixed time or as amended from time to time.

• Marginal note:Spill-treating agents

  (3) Regulations made under subsection (1) respecting a spill-treating agent shall be made on the recommendation of the federal Ministers and the Minister of the Environment.

Marginal note:Amendments to Schedule 1 or 2

• 14.1 (1) The Governor in Council may, by order, amend Schedule 1 or 2 to add, amend or remove a reference to a federal Act or regulation, or to a provision of a federal Act or regulation.

• Marginal note:Recommendation

  (2) The order shall be made on the recommendation of the Minister and every minister responsible for the administration of the provision.

Marginal note:List of spill-treating agents

14.2 The Minister of the Environment may, by regulation, establish a list of spill-treating agents.

Marginal note:Publication of proposed regulations

• 15 (1) Subject to subsection (2), a copy of each regulation that the Governor in Council proposes to make under this Act shall be published in the Canada Gazette and a reasonable opportunity shall be afforded to interested persons to make representations to the Minister with respect thereto.

• Marginal note:Single publication required

  (2) No proposed regulation need be published more than once under subsection (1) whether or not it is altered or amended after that publication as a result of representations made by interested persons as provided in that subsection.

Marginal note:Orders and regulations — Commission of the Canadian Energy Regulator

15.1 The Commission of the Canadian Energy Regulator may make orders or regulations prohibiting activities within an area specified in the order or regulation around a pipeline, an abandoned pipeline or other work, authorizing exceptions to those prohibitions and specifying measures to be taken in relation to those exceptions.

Marginal note:Equivalent standards and exemptions

• 16 (1) Subject to subsection (2), the Chief Safety Officer and Chief Conservation Officer may

  • (a) authorize the use of equipment, methods, measures or standards in lieu of any required by regulation, where those Officers are satisfied that the use of that other equipment and those other methods, measures or standards would provide a level of safety, protection of the environment and conservation equivalent to that provided by compliance with the regulations; or

  • (b) grant an exemption from any regulatory requirement in respect of equipment, methods, measures or standards, where those Officers are satisfied with the level of safety, protection of the environment and conservation that will be achieved without compliance with that requirement.

• Marginal note:One officer authorizations

  (2) The Chief Safety Officer alone may exercise the powers referred to in paragraph (1)(a) or (b) if the regulatory requirement referred to in that paragraph does not relate to protection of the environment or conservation, and the Chief Conservation Officer alone may exercise those powers if that regulatory requirement does not relate to safety.

• Marginal note:No contravention

  (3) No person contravenes the regulations if that person acts in compliance with an authorization or exemption under subsection (1) or (2).

Marginal note:Emergency situations

• 16.1 (1) In a prescribed emergency situation, where the Minister is of the opinion that there is a conflict between the provisions of this Act or the regulations and the provisions of another federal law, other than provisions implementing an international treaty or convention to which Canada is a party, and that compliance with that law and this Act or the regulations is likely to create a situation that would seriously endanger the safety of persons or equipment, the Minister may issue a written declaration to that effect.

• Marginal note:Contents of declaration

  (2) A declaration made under subsection (1) must

  • (a) describe the emergency situation;

  • (b) specify the provisions that conflict and describe the nature of the conflict;

  • (c) describe the consultation that has taken place pursuant to subsection (4);

  • (d) describe the geographical area, person, work or activity affected by the declaration; and

  • (e) specify the time the declaration comes into effect.

• Marginal note:Effect of declaration

  (3) From the time specified in a declaration made under subsection (1), the provisions of this Act or the regulations specified therein prevail, in respect of the geographical area, person, work or activity described therein, over the provisions of the other federal law specified therein until such time as the Minister or the Governor in Council revokes the declaration.

• Marginal note:Consultation

  (4) Before the Minister makes or revokes a declaration under this section, the minister responsible for the federal law that, in the Minister’s opinion, is in conflict with this Act or the regulations shall be consulted.

• Marginal note:Submission for revocation

  (5) The minister responsible for a federal law that is specified in a declaration made under subsection (1) may submit the declaration to the Governor in Council for revocation.

• Marginal note:Not a statutory instrument

  (6) A declaration or a revocation made under this section is not a regulation within the meaning and for the purposes of the Statutory Instruments Act, but shall be published in the Canada Gazette within seven days after it is made.

Production Orders

Marginal note:Production orders

• 17 (1) Where the Chief Conservation Officer, on reasonable grounds, is of the opinion that, with respect to an interest in any area to which this Act applies, the capability exists to commence, continue or increase production of oil or gas and that a production order would stop waste, the Chief Conservation Officer may order the commencement, continuation or increase of production of oil or gas at such rates and in such quantities as are specified in the order.

• Marginal note:Ceasing production

  (2) Where the Chief Conservation Officer, on reasonable grounds, is of the opinion that an order under this section would stop waste, the Chief Conservation Officer may order a decrease or the cessation or suspension of production of oil or gas for any period specified in the order.

• Marginal note:Investigation and appeal

  (3) Subsections 19(2) to (4) and section 21 apply, with such modifications as the circumstances require, to an order under subsection (1) or (2) as if it were an order under subsection 19(1).

• Marginal note:Access to files and records

  (4) A person subject to an order under subsection (1) or (2) shall, on request, afford the Chief Conservation Officer or a person designated by the Chief Conservation Officer access to his premises, files and records for all reasonable purposes related to the order.

Waste

Marginal note:Waste prohibited

• 18 (1) Subject to section 63, any person who commits waste is guilty of an offence under this Act, but a prosecution may be instituted for such an offence only with the consent of the Commission of the Canadian Energy Regulator.

• Marginal note:Definition of “waste”

  (2) In this Act, waste, in addition to its ordinary meaning, means waste as understood in the oil and gas industry and in particular, but without limiting the generality of the foregoing, includes

  • (a) the inefficient or excessive use or dissipation of reservoir energy;

  • (b) the locating, spacing or drilling of a well within a field or pool or within part of a field or pool or the operating of any well that, having regard to sound engineering and economic principles, results or tends to result in a reduction in the quantity of oil or gas ultimately recoverable from a pool;

  • (c) the drilling, equipping, completing, operating or producing of any well in a manner that causes or is likely to cause the unnecessary or excessive loss or destruction of oil or gas after removal from the reservoir;

  • (d) the inefficient storage of oil or gas above ground or underground;

  • (e) the production of oil or gas in excess of available storage, transportation or marketing facilities;

  • (f) the escape or flaring of gas that could be economically recovered and processed or economically injected into an underground reservoir; or

  • (g) the failure to use suitable artificial, secondary or supplementary recovery methods in a pool when it appears that those methods would result in increasing the quantity of oil or gas, or both, ultimately recoverable under sound engineering and economic principles.

Marginal note:Prevention of waste

• 19 (1) Where the Chief Conservation Officer, on reasonable grounds, is of the opinion that waste, other than waste as defined in paragraph 18(2)(f) or (g), is being committed, the Chief Conservation Officer may, subject to subsection (2), order that all operations giving rise to the waste cease until he is satisfied that the waste has stopped.

• Marginal note:Investigation

  (2) Before making any order under subsection (1), the Chief Conservation Officer shall hold an investigation at which interested persons shall be given an opportunity to be heard.

• Marginal note:Peremptory order

  (3) Notwithstanding subsection (2), the Chief Conservation Officer may, without an investigation, make an order under this section requiring all operations to be shut down if in the opinion of the Chief Conservation Officer it is necessary to do so to prevent damage to persons or property or to protect the environment, but as soon as possible after making such an order and in any event within fifteen days thereafter, the Chief Conservation Officer shall hold an investigation at which interested persons shall be given an opportunity to be heard.

• Marginal note:Order after inquiry

  (4) At the conclusion of an investigation under subsection (3), the Chief Conservation Officer may set aside, vary or confirm the order made or make a new order.

Marginal note:Taking over management

• 20 (1) For the purpose of giving effect to an order made under section 19, the Chief Conservation Officer may authorize and direct such persons as may be necessary to enter the place where the operations giving rise to the waste are being carried out and take over the management and control of those operations and any works connected therewith.

• Marginal note:Controlling operations and costs thereof

  (2) A person authorized under subsection (1) to take over the management and control of operations shall manage and control the operations and do all things necessary to stop the waste, and the cost thereof shall be borne by the person who holds the permit or the lease and until paid constitutes a debt recoverable by action in any court of competent jurisdiction as a debt due to Her Majesty in right of Canada.