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Bill C-6

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42-43 ELIZABETH II

CHAPTER 10

An Act to amend the Canada Oil and Gas Operations Act, the Canada Petroleum Resources Act and the National Energy Board Act and to make consequential amendments to other Acts

[Assented to 12th May, 1994]

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

R.S., c. O-7; R.S., c. 27 (1st Supp.), c. 36 (2nd Supp.), c. 6 (3rd Supp.); 1989, c. 3; 1991, c. 50; 1992, c. 35; 1993, c. 28

CANADA OIL AND GAS OPERATIONS ACT

1992, c. 35, s. 5

1. Sections 3.1 and 3.2 of the Canada Oil and Gas Operations Act are replaced by the following:

Designation

3.1 The National Energy Board may, for the purposes of this Act, designate a member, officer or employee of the Board to be the Chief Safety Officer and the same or another member, officer or employee of the Board to be the Chief Conservation Officer.

STATUTORY INSTRUMENTS ACT

Orders

3.2 For greater certainty, an order made by a safety officer, the Chief Safety Officer, a conservation officer, the Chief Conservation Officer, the Committee or the National Energy Board is not a statutory instrument as defined in the Statutory Instruments Act.

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1992, c. 35, s. 7

2. Section 4.1 of the Act is replaced by the following:

Delegation

4.1 The National Energy Board may delegate any of its powers under section 5, 5.02, 5.03, 5.11, 5.12 or 27 to any person, and the person shall exercise those powers in accordance with the terms of the delegation.

3. Section 5 of the Act is amended by adding the following after subsection (5):

Variation

(6) The terms of an operating licence or authorization may be varied under section 28.3 of the National Energy Board Act.

R.S., c. 36 (2nd Supp.), s. 121

4. (1) Paragraph 5.1(1)(b) of the English version of the Act is replaced by the following:

    (b) prescribed for the purposes of this subsection

1992, c. 35, ss. 9(2) and (3)

(2) Subsections 5.1(4) to (6) of the Act are replaced by the following:

Approval of development plan

(4) After reviewing an application and development plan submitted pursuant to this section, the National Energy Board 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 Board considers appropriate or that may be prescribed.

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 National Energy Board 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 National Energy Board 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.

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.

R.S., c. 36 (2nd Supp.), s. 121

5. Section 5.3 of the Act is replaced by the following:

Board guidelines and interpretation notes

5.3 (1) The National Energy Board may issue and publish, in any manner the Board considers appropriate, guidelines and interpretation notes with respect to the application and administration of section 5 or 5.1 or any regulations made under section 14.

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.

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.

1992, c. 35, s. 12

6. Subsection 5.4(1) of the Act is replaced by the following:

Council established

5.4 (1) There is established a council, to be known as the Oil and Gas Administration Advisory Council, consisting of the following six members, namely, the Chairman of the Canada - Nova Scotia Offshore Petroleum Board, the Chairman of the Canada - Newfoundland Offshore Petroleum Board, the Chairman of the National Energy Board, a person designated jointly by the federal Ministers, a person designated by one of the Provincial Ministers and a person designated by the other Provincial Minister.

1992, c. 35, s. 14

7. The portion of paragraph 14(1)(c) of the Act before subparagraph (i) is replaced by the following:

    (c) authorizing the National Energy Board, 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

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1992, c. 35, ss. 19 and 20(F)

8. Sections 21 to 23 of the Act are replaced by the following:

Appeal to the National Energy Board

21. A person aggrieved by an order of the Chief Conservation Officer under section 17 or 19 after an investigation under subsection 19(2) or (3) may appeal to the National Energy Board to have the order reviewed under section 28.4 of the National Energy Board Act.

Application for show cause order in respect of waste

22. When the Chief Conservation Officer, on reasonable grounds, is of the opinion that waste, as defined in paragraph 18(2)(f) or (g), is occurring in the recovery of oil or gas from a pool, that Officer may apply to the National Energy Board for an order under section 28.5 of the National Energy Board Act requiring the operators within the pool to show cause why the Board should not make a direction in respect of the waste.

9. Subsections 25(8) and (9) of the Act are replaced by the following:

Appeal

(8) A person aggrieved by any action or measure taken or authorized or directed to be taken under subsections (4) to (6) may appeal to the National Energy Board to have the order reviewed under section 28.4 of the National Energy Board Act.

Personal liability

(9) No person required, directed or authorized to act under this section or section 28.4 of the National Energy Board Act is personally liable, either civilly or criminally, in respect of any act or omission in the course of complying with this section unless it is shown that the person did not act reasonably in the circumstances.

1992, c. 35, s. 25

10. (1) Subsection 27(1) of the Act is replaced by the following:

Financial responsibility

27. (1) An applicant for an authorization under paragraph 5(1)(b) in respect of any work or activity in any area in which this Act applies shall provide proof of financial responsibility in the form of a letter of credit, a guarantee or indemnity bond or in any other form satisfactory to the National Energy Board, in an amount satisfactory to the Board.

(2) Subsections 27(2) and (3) of the Act are replaced by the following:

Payment of claims

(2) The National Energy Board may require that moneys in an amount not exceeding the amount prescribed for any case or class of cases, or determined by the Board in the absence of regulations, be paid out of the funds available under the letter of credit, guarantee or indemnity bond or other form of financial responsibility provided under subsection (1), in respect of any claim for which proceedings may be instituted under section 26, whether or not those proceedings have been instituted.

Manner of payment

(3) Where payment is required under subsection (2), it shall be made in such manner, subject to such conditions and procedures and to or for the benefit of such persons or classes of persons as may be prescribed for any case or class of cases, or as may be required by the National Energy Board in the absence of regulations.

1992, c. 35, s. 29

11. Section 53 of the Act is replaced by the following:

Officers

53. The safety officers and conservation officers necessary for the administration and enforcement of this Act and the regulations shall be designated by the National Energy Board from among its officers and employees.

1992, c. 35, s. 29

12. (1) Subsection 58(2) of the Act is replaced by the following:

Notice

(2) The safety officer or Chief Safety Officer who makes an order under subsection (1) shall affix at or near the scene of the operation a notice of the order in a form approved by the National Energy Board.

1992, c. 35, s. 29

(2) Subsections 58(5) to (9) of the Act are replaced by the following:

Referral for review by National Energy Board

(5) A person carrying out an operation to which an order under subsection (1) makes reference, or any person having a pecuniary interest in that operation, may, by notice in writing, request the Chief Safety Officer to refer the order to the National Energy Board to review the need for the order under section 28.6 of the National Energy Board Act and, on receiving the notice, the Chief Safety Officer shall refer the order accordingly.

Operations in respect of which order made

(6) No person shall continue an operation in respect of which an order has been made pursuant to this section, except in accordance with the terms of the order or until the order has been set aside by the National Energy Board pursuant to section 28.6 of the National Energy Board Act.

1992, c. 35, s. 30

13. Paragraph 60(1)(d) of the Act is replaced by the following:

    (d) fails to comply with a direction, requirement or order of a safety officer, the Chief Safety Officer, a conservation officer, the Chief Conservation Officer or an installation manager or with an order of the Committee or the National Energy Board made under this Act.

14. Section 63 of the Act is replaced by the following:

Presumption against waste

63. No person commits an offence under subsection 18(1) by reason of committing waste as defined in paragraph 18(2)(f) or (g) unless the person has been ordered by the National Energy Board under section 28.5 of the National Energy Board Act to take measures to prevent the waste and has failed to comply.

15. The Act is amended by replacing the word ``Minister'' with the words ``National Energy Board'' in the following provisions:

    (a) section 5;

    (b) sections 5.02 and 5.03;

    (c) subsections 5.1(1) and (2);

    (d) sections 5.11 and 5.12;

    (e) section 18; and

    (f) section 55.

R.S., c. 36 (2nd Supp.); R.S., c. 21 (4th Supp.); 1990, cc. 8, 41; 1991, cc. 10, 24, 46; 1992, cc. 1, 35; 1993, cc. 28, 34, 47

CANADA PETROLEUM RESOURCES ACT

16. (1) Subsections 28(1) and (2) of the Canada Petroleum Resources Act are replaced by the following:

Application for declaration of significant discovery

28. (1) Where a significant discovery has been made on any frontier lands that are subject to an interest or a share therein held in accordance with section 23, the National Energy Board shall, on the application of the interest holder of the interest or the share made in the form and manner and containing such information as may be prescribed, make a written declaration of significant discovery in relation to those frontier lands in respect of which there are reasonable grounds to believe that the significant discovery may extend.

Declaration on initiative of National Energy Board

(2) Where a significant discovery has been made on any frontier lands, the National Energy Board may, by order, make a declaration of significant discovery in relation to those frontier lands in respect of which there are reasonable grounds to believe the significant discovery may extend.

(2) Subsection 28(4) of the Act is replaced by the following:

Amendment or revocation of declaration

(4) Subject to subsection (5), where a declaration of significant discovery is made pursuant to subsection (1) or (2) and, based on the results of further drilling, there are reasonable grounds to believe that a discovery is not a significant discovery or that the frontier lands to which the significant discovery extends differ from the significant discovery area, the National Energy Board may, as appropriate in the circumstances,

    (a) amend the declaration of significant discovery by increasing or decreasing the significant discovery area; or

    (b) revoke the declaration.

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(3) Section 28 of the Act is amended by adding the following after subsection (6):

Procedures

(7) The procedures described in section 28.2 of the National Energy Board Act apply to the making, amendment and revocation of a declaration under this section.

Delegation

(8) The National Energy Board may delegate any of its powers under this section to a member, officer or employee of the Board, who shall exercise the powers in accordance with the terms of the delegation.

17. (1) Subsections 35(1) and (2) of the Act are replaced by the following:

Application for declaration of commercial discovery

35. (1) Where a commercial discovery has been made on any frontier lands that are subject to an interest or a share therein held in accordance with section 23, the National Energy Board shall, on the application of the interest holder of the interest or the share, made in the form and manner and containing such information as may be prescribed, make a written declaration of commercial discovery in relation to those frontier lands in respect of which there are reasonable grounds to believe that the commercial discovery may extend.

Declaration on initiative of National Energy Board

(2) Where a commercial discovery has been made on any frontier lands, the National Energy Board may, by order, make a declaration of commercial discovery in relation to those frontier lands in respect of which there are reasonable grounds to believe that the commercial discovery may extend.

(2) Section 35 of the Act is amended by adding the following after subsection (3):

Procedures

(4) The procedures described in section 28.2 of the National Energy Board Act apply to the making, amendment or revocation of a declaration under this section.

Delegation

(5) The National Energy Board may delegate any of its powers under this section to a member, officer or employee of the Board, who shall exercise the powers in accordance with the terms of the delegation.

1992, c. 35, s. 38(2)

18. Subsections 101(2) and (3) of the Act are replaced by the following:

Privileged information or documenta-
tion

(2) Subject to this section, information or documentation is privileged if it is provided for the purposes of this Act or the Canada Oil and Gas Operations Act or any regulation made under either Act, or for the purposes of Part II.1 of the National Energy Board Act, whether or not the information or documentation is required to be provided.

Disclosure

(2.1) Subject to this section, information or documentation that is privileged under subsection (2) shall not knowingly be disclosed without the consent in writing of the person who provided it, except for the purposes of the administration or enforcement of this Act, the Canada Oil and Gas Operations Act or Part II.1 of the National Energy Board Act or for the purposes of legal proceedings relating to its administration or enforcement.

Production and evidence

(3) No person shall be required to produce or give evidence relating to any information or documentation that is privileged under subsection (2) in connection with any legal proceedings, other than proceedings relating to the administration or enforcement of this Act, the Oil and Gas Production and Conservation Act or Part II.1 of the National Energy Board Act.