R.S., c. N-7; R.S., cc. 1, 20 (2nd Supp.), c. 28 (3rd Supp.); 1988, c. 65; 1990, c. 7; 1991, cc. 24, 27; 1993, c. 44

NATIONAL ENERGY BOARD ACT

19. Section 9 of the National Energy Board Act is amended by adding the following after subsection (3):

Safety officers

(4) Any officer or employee appointed as provided in subsection (1) may be designated as a regional safety officer or as a safety officer for the purposes of Part II of the Canada Labour Code.

Deemed appointment

(5) Where a position in the public service of Canada is transferred to the Board within ninety days after this subsection comes into force, the incumbent of the position continues in the position in the Board and any person so continuing is deemed to have been appointed in accordance with subsection (1).

Probation

(6) Notwithstanding subsection (5) and section 28 of the Public Service Employment Act, no person deemed by that subsection to have been appointed is subject to probation, unless that person was subject to probation immediately before the appointment, in which case that person continues to be subject to probation as if the position had not been transferred.

20. The Act is amended by adding the following after section 16:

Confidentialit y

16.1 In any proceedings under this Act, the Board may take any measures and make any order that it considers necessary to ensure the confidentiality of any information likely to be disclosed in the proceedings if the Board is satisfied that

    (a) disclosure of the information could reasonably be expected to result in a material loss or gain to a person directly affected by the proceedings, or could reasonably be expected to prejudice the person's competitive position; or

    (b) the information is financial, commercial, scientific or technical information that is confidential information supplied to the Board and

      (i) the information has been consistently treated as confidential information by a person directly affected by the proceedings, and

      (ii) the Board considers that the person's interest in confidentiality outweighs the public interest in disclosure of the proceedings.

21. Section 21 of the Act is amended by adding the following after subsection (2):

Exception

(3) This section does not apply to

    (a) a decision, operating licence or authorization to which section 28.2 or 28.3 applies; or

    (b) an approval of a development plan under section 5.1 of the Canada Oil and Gas Operations Act.

22. Section 26 of the Act is amended by adding the following after subsection (3):

Other advisory functions

(4) The Board and its officers and employees may, on request, provide advice about energy matters and sources of energy to

    (a) ministers, officers and employees of any government department or ministry, whether federal, provincial or territorial; and

    (b) members, officers and employees of any government agency, whether federal, provincial or territorial.

23. The Act is amended by adding the following after section 28:

PART II.1

OIL AND GAS INTERESTS, PRODUCTION AND CONSERVATION

Interpretation

Definitions of ``oil'' and ``gas''

28.1 For the purposes of this Part, ``oil'' and ``gas'' have the same meaning as in the Canada Oil and Gas Operations Act.

Declarations of Significant Discovery and Commercial Discovery

Application

28.2 (1) This section applies to any decision of the Board to make, amend or revoke a declaration of significant discovery under section 28 of the Canada Petroleum Resources Act or a declaration of commercial discovery under section 35 of that Act.

Notice

(2) At least thirty days before making a decision to which this section applies, the Board shall give written notice of its intention to make the decision to any person the Board considers to be directly affected by the decision.

Request for hearing

(3) A person to whom notice is given may, in writing, request a hearing in respect of the decision, but the request must be received by the Board within thirty days after the notice is given.

Decision if no request received

(4) If no request is received in accordance with subsection (3), the Board may make the decision.

Hearing if request received

(5) If a request is received in accordance with subsection (3), the Board shall fix a suitable time and place for the hearing and notify each person who requested the hearing.

Representa-
tions

(6) Each person who requests a hearing may make representations and introduce witnesses and documents at the hearing.

Decision

(7) At or after the conclusion of the hearing, the Board shall make the decision, give notice of it to each person who requested the hearing and, if the person requests reasons, publish or make available the reasons for the decision.

Operating Licences and Authorizations

Variation of licences, etc.

28.3 The Board may vary the terms of any operating licence or authorization issued under section 5 of the Canada Oil and Gas Operations Act.

Chief Conservation Officer

Application to appeals

28.4 (1) This section applies to appeals brought under section 21 or subsection 25(8) of the Canada Oil and Gas Operations Act by a person aggrieved by an order of the Chief Conservation Officer or by any action or measure taken or authorized or directed to be taken by that Officer.

Powers on appeal

(2) After hearing an appeal to which this section applies, the Board may

    (a) set aside, confirm or vary the order, action or measure that is the subject of the appeal;

    (b) order any works to be undertaken that the Board considers necessary to prevent waste, the escape of oil or gas or any other contravention of the Canada Oil and Gas Operations Act or the regulations made under that Act; or

    (c) make any other order that the Board considers appropriate.

Applications for show cause hearing relating to waste

28.5 (1) This section applies to applications by the Chief Conservation Officer to the Board under section 22 of the Canada Oil and Gas Operations Act for a show cause hearing relating to waste, as defined in paragraph 18(2)(f) or (g) of that Act, in the recovery of oil or gas from a pool.

Order

(2) On receiving an application, the Board shall make an order requiring the operators within the pool to show cause at a hearing, to be held on a day specified in the order, why the Board should not make a direction in respect of the waste.

Hearing

(3) On the day specified in the order, the Board shall hold a hearing at which the Chief Conservation Officer, the operators and other interested persons shall be given an opportunity to be heard.

Direction

(4) If, after the hearing, the Board is of the opinion that waste is occurring in the recovery of oil or gas from a pool, the Board may, by order,

    (a) direct the introduction of a scheme for the collection, processing, disposition or reinjection of any gas produced from the pool; or

    (b) direct repressurizing, recycling or pressure maintenance for the pool or any part of the pool and for or incidental to that purpose, direct the introduction or injection of gas, water or any other substance into the pool or any part of the pool.

Additional direction

(5) In addition to making a direction under subsection (4), the Board may, by order, direct that the pool or any part of the pool specified in the order be shut in if the requirements of the order are not met or unless a scheme is approved by the Board and in operation by a date fixed in the order.

Continuation pending approval of scheme

(6) Notwithstanding subsections (4) and (5), the Board may, by order, permit the continued operation of a pool or any part of a pool after the date fixed by a direction under this section if, in the opinion of the Board, a scheme or other action described in paragraph (4)(a) or (b) is in the course of preparation, but the continued operation is subject to any conditions imposed by the Board.

Chief Safety Officer

Application

28.6 (1) This section applies to an order referred by the Chief Safety Officer to the Board under subsection 58(5) of the Canada Oil and Gas Operations Act.

Review and decision

(2) The Board shall review the need for the order and may confirm it or set it aside.

Burden of proof

(3) The burden of establishing that the order is not needed is on the person who requested that the order be referred to the Board.

Orders

Offence

28.7 (1) Every person who fails to comply with an order of the Board under section 28.4 or 28.5 is guilty of an offence and is 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.

Applicable provisions

(2) Sections 65 to 71 of the Canada Oil and Gas Operations Act apply, with such modifications as the circumstances require, in respect of an offence under subsection (1).

Orders not statutory instruments

28.8 For greater certainty, an order of the Board made under this Part is not a statutory instrument as defined in the Statutory Instruments Act.

24. Section 48 of the Act is amended by adding the following after subsection (2):

Exempting orders respecting companies

(2.1) The Board may make orders exempting companies from any or all of the provisions of the regulations made under subsection (2).

Terms and conditions

(2.2) In any order made under subsection (2.1), the Board may impose such terms and conditions as it considers proper.

25. The Act is amended by adding the following after section 48:

Inspection Officers

Designation of inspection officers

49. (1) The Board may designate any person as an inspection officer for the purpose of ensuring

    (a) the safety of the public and a company's employees;

    (b) the protection of property and the environment;

    (c) compliance with this Part, any regulations made under section 48 and any orders and certificates issued by the Board under this Part; and

    (d) compliance with section 112 and any orders and regulations made under that section.

Powers of officers

(2) For the purpose described in subsection (1), an inspection officer may at any reasonable time

    (a) have access to and inspect

      (i) any lands or pipeline, including a pipeline that is under construction or has been abandoned,

      (ii) any excavation activity extending within thirty metres of the pipeline, and

      (iii) any facility being constructed across, on, along or under the pipeline;

    (b) direct a company or person conducting an excavation activity or constructing a facility described in paragraph (a) to perform any tests that the inspection officer considers necessary for an inspection; and

    (c) examine and make copies of any information contained in any books, records or documents, or in any computer systems, that the inspector believes on reasonable grounds contain any information relating to the design, construction, operation, maintenance or abandonment of a pipeline.

Certificate of authority

50. The Board shall provide every inspection officer with a certificate of authority and, when carrying out duties under this Part, the inspection officer shall show the certificate to any person who asks to see it.

Assistance to officers

51. Any officer, employee or agent of a company and any person conducting an excavation activity or constructing a facility described in paragraph 49(2)(a) shall give an inspection officer all reasonable assistance to enable the officer to carry out duties under this Part.

Grounds for making order

51.1 (1) An inspection officer who is expressly authorized by the Board to make orders under this section may make an order where the inspection officer has reasonable grounds to believe that a hazard to the safety of the public or employees of a company or a detriment to property or the environment is being or will be caused by

    (a) the construction, operation, maintenance or abandonment of a pipeline, or any part of a pipeline; or

    (b) an excavation activity or the construction of a facility described in paragraph 49(2)(a).

Terms of order

(2) The order may require

    (a) work associated with the pipeline, excavation activity or facility to be suspended until

      (i) the hazardous or detrimental situation has been remedied to the satisfaction of an inspection officer, or

      (ii) the order is stayed or rescinded under section 51.2; and

    (b) the company or any person involved in the pipeline, the excavation activity or the construction of the facility to take any measure specified in the order to ensure the safety of the public or employees of the company or to protect property or the environment.

Notice and report

(3) An inspection officer who makes an order under this section shall, as soon as possible,

    (a) give written notice of the order to the persons to whom it is directed, including the terms of the order and a statement of the reasons for the order; and

    (b) report the circumstances and terms of the order to the Board.

Request for review

51.2 (1) A person to whom an order under section 51.1 is directed may request in writing that the Board review the order.

Stay of order

(2) A request for review does not operate as a stay of the order, but the Board may grant a stay pending the review.

Review and decision

(3) The Board shall

    (a) review the circumstances and terms of an order that it is requested to review;