2nd Session, 36th Parliament,
48-49 Elizabeth II, 1999-2000

The House of Commons of Canada

BILL C-482

An Act to establish the office of Oil and Gas Ombudsman to investigate complaints relating to the business practices of suppliers of oil or gas

      Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

Short title

1. This Act may be cited as the Oil and Gas Ombudsman Act.

Definitions

2. The definitions in this section apply in this Act.

``Department' '
« ministère »

``Department'' means the Department of Industry.

``Minister''
« ministre »

``Minister'' means the Minister of Industry.

``Ombudsman ''
« ombudsman »

``Ombudsman'' means the person holding the office of Oil and Gas Ombudsman established pursuant to section 3.

``Standing Committee''
« comité permanent »

``Standing Committee'' means the standing committee of the House of Commons appointed by the House to deal with matters related to industry.

OFFICE AND APPOINTMENT OF OMBUDSMAN

Office established

3. There is hereby established the office of the Oil and Gas Ombudsman.

Appointment

4. (1) The Governor in Council shall appoint an Ombudsman recommended by the Minister from a list of persons nominated by the Standing Committee.

Qualifica-
tions

(2) The Ombudsman shall have generally acknowledged stature within the community and relevant knowledge and experience related to the management of a business.

Term of office

(3) The Ombudsman holds office for a term not exceeding five years.

Not more than two terms

(4) No person may serve more than two terms as Ombudsman.

Removal

(5) The Ombudsman holds office during good behavior but may be removed by the Governor in Council for cause.

Salary and travel and living expenses

(6) The Ombudsman shall be paid a salary to be fixed by the Governor in Council and is entitled to be paid reasonable travelling and living expenses while absent from his or her ordinary place of residence in the exercise of his or her functions under this Act.

Acting Ombudsman

(7) In the event of the absence or incapacity of the Ombudsman, the Governor in Council may, on the recommendation of the Minister, appoint another person to act as Ombudsman until the Ombudsman returns or another Ombudsman is appointed, as the case may be.

Part of public service

(8) The office of the Ombudsman is part of the Public Service of Canada.

Staff

(9) The Ombudsman may hire, under the Public Service Employment Act, such officers and staff as are necessary to carry out the purposes of this Act.

COMPLAINTS

Who may make a complaint

5. (1) Any person resident in Canada may make a complaint to the Ombudsman if the person believes that, as a result of the business practices of an oil or gas supplier,

    (a) competition has been prevented or lessened unduly;

    (b) the price of oil or gas has been enhanced unduly; or

    (c) a person is substantially affected in his or her business or is precluded from carrying on business due to an inability to obtain adequate supplies of oil or gas on usual trade terms.

Complaint on grounds of public interest

(2) Twenty-five or more persons who are resident in Canada may make a complaint to the Ombudsman if they believe that, as a result of the business practices of an oil or gas supplier, the price of oil or gas is unduly high or fluctuates erratically and an investigation should be made in the public interest.

Form of complaint

(3) A complaint to the Ombudsman must be made in writing and specify the grounds for the complaint.

Investigation of complaints

6. (1) The Ombudsman shall investigate a complaint made under subsection 5(1) if the Ombudsman is satisfied that the complaint shows reasonable grounds to believe that, as a result of the business practices of an oil or gas supplier,

    (a) competition has been prevented or lessened unduly;

    (b) the price of oil or gas has been enhanced unduly; or

    (c) a person is substantially affected in his or her business or is precluded from carrying on business due to an inability to obtain adequate supplies of oil or gas on usual trade terms.

Investigation of complaints on public interest grounds

(2) The Ombudsman shall investigate a complaint made under subsection 5(2) if the Ombudsman is satisfied that the complaint shows reasonable grounds to believe that, as a result of the business practices of an oil or gas supplier, the price of oil or gas is unduly high or fluctuates erratically and the Ombudsman is of the opinion that an investigation should be made in the public interest.

Ombudsman may initiate complaint

(3) Where the Ombudsman is satisfied that there are reasonable grounds to investigate a matter under this Act, the Ombudsman may initiate a complaint in relation to that matter.

INVESTIGATIONS

Notice to oil or gas supplier

7. Before commencing an investigation of a complaint under this Act, the Ombudsman shall notify the oil or gas supplier that is the subject of the complaint of the intention to carry out the investigation and of the substance of the complaint.

Regulation of procedure

8. The Ombudsman may determine the procedure to be followed in investigating a matter under this Act.

Cooperation by oil or gas supplier

9. An oil or gas supplier that is the subject of an investigation under this Act shall cooperate with the Ombudsman and provide such assistance and facilities as the Ombudsman requests to facilitate the investigation.

Right to make representa-
tions

10. In the course of an investigation of a complaint under this Act by the Ombudsman, a reasonable opportunity to make representations shall be given to the person or persons who made the complaint and to the oil or gas supplier that is the subject of the complaint.

Confiden-
tiality

11. (1) The Ombudsman and every person on the staff of the Ombudsman shall, subject to subsection (2), maintain confidentiality in respect of all matters that come to their knowledge in performing their duties under this Act.

Exception to confiden-
tiality rule

(2) The Ombudsman may disclose or authorize a member of his or her staff to disclose a matter that, in the opinion of the Ombudsman, is necessary to prosecute an offence under this Act.

Findings and recommenda-
tions of Ombudsman

12. (1) If, on investigating a complaint under this Act, the Ombudsman finds that the complaint is well-founded, the Ombudsman shall provide the complainant or complainants and the oil or gas supplier that is the subject of the complaint with a report containing the findings of the investigation and any recommendations that the Ombudsman considers appropriate.

Reply to Ombudsman

(2) Within ninety days of receiving a report under subsection (1), the oil or gas supplier shall advise the Ombudsman of the action taken or proposed to be taken to implement the recommendations contained in the report or the reasons why no such action has been or is proposed to be taken.

Result if Ombudsman not satisfied with reply

(3) If the Ombudsman is not satisfied with the action taken or proposed, or if on investigation, the Ombudsman finds that the proposed changes have not been made, the Ombudsman shall advise the complainant and the oil or gas supplier and shall submit a report on the matter to the Minister.

REPORTS TO PARLIAMENT

Annual report

13. (1) The Ombudsman shall, within three months after the termination of each financial year, submit an annual report to Parliament on the activities of the office during that financial year.

Other reports

(2) The Ombudsman may make reports from time to time to Parliament on matters that the Ombudsman has investigated and reported on to the Minister pursuant to subsection 12(3) that have not been subsequently settled in a manner the Ombudsman considers to be satisfactory.

Referral to Standing Committee

(3) Every report referred to in this section shall, after it is transmitted for tabling, be referred to the Standing Committee.

OFFENCES AND PENALTIES

False information

14. (1) Every person who knowingly provides false information to the Ombudsman in connection with this Act is guilty of an offence and liable, on summary conviction, to a fine of not more than five hundred thousand dollars or to a term of imprisonment not exceeding six months or to both.

Refusal to provide information

(2) Every person who refuses or fails to provide information requested by the Ombudsman under the authority of this Act is guilty of an offence and liable, on summary conviction, to a fine of not more than five hundred thousand dollars or to a term of imprisonment not exceeding six months or to both.