Bill C-442

1st Session, 39th Parliament,

55-56 Elizabeth II, 2006-2007

house of commons of canada

BILL C-442

An Act to establish the Office of the 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.

INTERPRETATION

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

“Department” means the Department of Industry.

“Minister” means the Minister of Industry.

“Ombudsman” means the Oil and Gas Ombudsman appointed under section 4.

OFFICE AND APPOINTMENT OF OMBUDSMAN

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

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

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

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

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

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

(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.

(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.

(8) The Office of the Ombudsman is part of the public service of Canada.

(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

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.

(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.

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

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.

(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 carried out in the public interest.

(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

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.

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

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

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.

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.

(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.

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.

(2) Within 90 days after 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.

(3) If the Ombudsman is not satisfied with the action taken or proposed to be taken or if on investigation the Ombudsman finds that the proposed action has not been taken, 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 THE HOUSE OF COMMONS

13. (1) The Ombudsman shall, within three months after the termination of each financial year, make an annual report to the House of Commons on the activities of the Office of the Oil and Gas Ombudsman during that financial year.

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

(3) Every report to the House of Commons made by the Ombudsman under this section shall be made by being transmitted to the Speaker of the House of Commons for tabling in that House and shall, after it is transmitted for tabling, be referred to the standing committee of that House that normally considers matters related to industry.

OFFENCES AND PENALTIES

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 not exceeding $500,000 or to a term of imprisonment not exceeding six months or to both.

(2) Every person who refuses or fails to provide information requested by the Ombudsman under this Act is guilty of an offence and liable, on summary conviction, to a fine not exceeding $500,000 or to a term of imprisonment not exceeding six months or to both.