Bill C-74

Cancellation of Interests

92. (1) If the Ministers have reason to believe that an interest owner or holder is failing or has failed to meet any requirement under this Act, they may give notice to that interest owner or holder requiring compliance with the requirement within 90 days after the day on which the notice was given or within any longer period that they consider appropriate.

(2) Despite anything in this Act, if an interest owner or holder fails to comply with a notice under subsection (1) within the period specified in the notice and the Ministers consider that the failure to comply warrants cancellation of the interest of the interest owner or holder or any share in the interest held by the holder with respect to a portion only of the joint management area subject to the interest, the Ministers may, by order subject to section 96, cancel that interest or share, and if the interest or share is so cancelled, the portions of the joint management area under that share or interest become Crown reserve areas.

Division 9

Information

Disclosure of Information

93. (1) The following definitions apply in this section.

“delineation well” means a well that is so located in relation to another well penetrating a pool that there is a reasonable expectation that another portion of that pool will be penetrated by the first-mentioned well and that the drilling is necessary in order to determine the commercial value of the pool.

“development well” means a well that is so located in relation to another well penetrating a pool that it is considered to be a well or part of a well drilled for the purpose of production or observation or for the injection or disposal of fluid into or from the pool.

“engineering research or feasibility study” includes work undertaken to facilitate the design or to analyze the viability of engineering technology, systems or schemes to be used in the exploration for or the development, production or transportation of petroleum in the joint management area.

“environmental study” means work pertaining to the measurement or statistical evaluation of the physical, chemical and biological elements of the lands, oceans or coastal zones, including winds, waves, tides, currents, precipitation, ice cover and movement, icebergs, pollution effects, flora and fauna both onshore and offshore, human activity and habitation and any related matters.

“experimental project” means work or activity involving the use of methods or equipment that are untried or unproven.

“exploratory well” means a well that is drilled on a geological feature on which a significant discovery has not been made.

“geological work” means work, in the field or laboratory, involving the collection, examination, processing or other analysis of lithological, paleontological or geochemical materials recovered from the surface or subsurface or the seabed or its subsoil of any portion of the joint management area and includes the analysis and interpretation of mechanical well logs.

“geophysical work” means work involving the indirect measurement of the physical properties of rocks in order to determine the depth, thickness, structural configuration or history of their deposition and includes the processing, analysis and interpretation of material or data obtained from any work.

“geotechnical work” means work, in the field or laboratory, involving the analysis of the physical properties of materials recovered from the surface or subsurface or the seabed or its subsoil of any portion of the joint management area.

“termination date” means the day on which a well has been abandoned, completed or suspended in accordance with any applicable drilling regulations made under Part 2.

“well site seabed survey” means a survey pertaining to the nature of the surface or subsurface or the seabed or its subsoil of any portion of the joint management area in the area of the proposed drilling site in respect of a well and to the conditions of those portions of the joint management area that may affect the safety or efficiency of drilling operations.

(2) Subject to the other provisions of this section and section 95, information or documentation provided for the purposes of this Act or any regulations made under it, whether or not the information or documentation is required to be provided, is privileged and must not knowingly be disclosed without the written consent of the person who provided it except for the purposes of the administration or enforcement of this Act, or for the purposes of legal proceedings relating to that administration or enforcement.

(3) A person is not 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.

(4) This section does not apply to a document that has been registered under Division 7.

(5) Subsection (2) does not apply to the following classes of information or documentation obtained as a result of carrying on a work or activity that is authorized under Part 2, namely, information or documentation in respect of

(a) an exploratory well, if the information or documentation is obtained as a direct result of drilling the well and if two years have passed since the termination date of that well;

(b) a delineation well, if the information or documentation is obtained as a direct result of drilling the well and if the later of the following time periods has passed:

(i) two years since the termination date of the relevant exploratory well, and

(ii) 90 days since the termination date of the delineation well;

(c) a development well, if the information or documentation is obtained as a direct result of drilling the well and if the later of the following time periods has passed:

(i) two years since the termination date of the relevant exploratory well, and

(ii) 60 days since the termination date of the development well;

(d) geological work or geophysical work performed on or in relation to any portion of the joint management area,

(i) in the case of a well site seabed survey if the well has been drilled, after the expiry of the period referred to in paragraph (a) or the later period referred to in subparagraph (b)(i) or (ii) or (c)(i) or (ii), according to whether paragraph (a), (b) or (c) is applicable in respect of that well, or

(ii) in any other case, five years after the day on which the work is completed;

(e) any engineering research or feasibility study or experimental project, including geotechnical work, carried out on or in relation to any portion of the joint management area,

(i) if it relates to a well that has been drilled, after the expiry of the period referred to in paragraph (a) or the later period referred to in subparagraph (b)(i) or (ii) or (c)(i) or (ii), according to whether paragraph (a), (b) or (c) is applicable in respect of that well, or

(ii) in any other case, five years after the day on which the research, study or project is completed or after the reversion of that portion of the joint management area to Crown reserve areas, whichever occurs first;

(f) any contingency plan formulated in respect of emergencies arising as a result of any work or activity authorized under Part 2;

(g) diving work, weather observation or the status of operational activities or of the development of or production from a pool or field;

(h) accidents, incidents or petroleum spills, if necessary to permit a person or body to produce and to distribute or publish a report for the administration of this Act in respect of the accident, incident or spill;

(i) an environmental study

(i) if it relates to a well that has been drilled, after the expiry of the period referred to in paragraph (a) or the later period referred to in subparagraph (b)(i) or (ii) or (c)(i) or (ii), according to whether paragraph (a), (b) or (c) is applicable in respect of that well, or

(ii) in any other case, five years after the day on which the study is completed; and

(j) the quantity of petroleum that is extracted from a pool or well.

(6) The Boards may disclose any information or documentation that they obtain under this Act — to officials of the Government of Canada, the Government of Quebec or any other provincial government, or a foreign government or to the representatives of any of their agencies — for the purposes of a federal, provincial or foreign law, as the case may be, that deals primarily with a petroleum-related work or activity, including the exploration for and the management, administration and production of petroleum, if

(a) the government or agency undertakes to keep the information or documentation confidential and not to disclose it without the Boards’ written consent;

(b) the information and documentation is disclosed in accordance with any conditions agreed to by the Boards and the government or agency; and

(c) in the case of disclosure to a foreign government or agency, the Ministers consent in writing.

(7) The Boards may disclose to the Ministers the information or documentation that the Boards have disclosed or intend to disclose under subsection (6), but the Ministers are not to further disclose that information or documentation unless the Boards consent in writing to that disclosure or the Federal Minister or the Provincial Minister is required by an Act of Parliament or an Act of the Legislature of Quebec, as the case may be, to disclose that information or documentation.

(8) For the purposes of paragraph (6)(a) and subsection (7), the Boards may consent to the further disclosure of information or documentation only if the Boards themselves are authorized under this section to disclose it.

(9) Subsection (2) does not apply in respect of information or documentation regarding the applicant for an operating licence or authorization under subsection 106(1) or the scope, purpose, location, timing and nature of the proposed work or activity for which the authorization is sought.

(10) Subsection (2) does not apply in respect of information or documentation provided for the purposes of a public hearing conducted under section 22.

(11) Subject to section 94, the Boards may disclose all or part of any information or documentation related to safety or environmental protection that is provided in relation to an application for an operating licence or authorization for a work or activity under subsection 106(1) or to an operating licence or authorization for a work or activity that is issued under that subsection or provided in accordance with any regulation made under this Act. The Boards are not, however, permitted to disclose information or documentation if they are satisfied that

(a) disclosure of it could reasonably be expected to result in a material loss or gain to a person, or to prejudice their competitive position, and the potential harm resulting from the disclosure outweighs the public interest in making the disclosure;

(b) it is financial, commercial, scientific or technical information or documentation that is confidential and has been consistently treated as such by a person who would be directly affected by its disclosure, and for which the person’s interest in confidentiality outweighs the public interest in its disclosure; or

(c) there is a real and substantial risk that disclosure of it will impair the security of pipelines, as defined in section 99, installations, vessels, aircraft or systems, including computer or communication systems, used for any work or activity in respect of which this Act applies — or methods employed to protect them — and the need to prevent its disclosure outweighs the public interest in its disclosure.

(12) Subsections (9) to (11) do not apply in respect of information or documentation described in paragraphs (5)(a) to (e).

94. (1) If the Boards intend to disclose any information or documentation under subsection 93(11), the Boards must make every reasonable effort to give the person who provided it written notice of the Boards’ intention to disclose it.

(2) Any person to whom a notice is required to be given under subsection (1) may waive the requirement, and if they have consented to the disclosure they are deemed to have waived the requirement.

(3) A notice given under subsection (1) must include

(a) a statement that the Boards intend to disclose information or documentation under subsection 93(11);

(b) a description of the information or documentation that was provided by the person to whom the notice is given; and

(c) a statement that the person may, within 20 days after the day on which the notice is given, make written representations to the Boards as to why the information or documentation, or a portion of it, should not be disclosed.

(4) If a notice is given to a person by the Boards under subsection (1), the Boards must

(a) give the person the opportunity to make, within 20 days after the day on which the notice is given, written representations to the Boards as to why the information or documentation, or a portion of it, should not be disclosed; and

(b) after the person has had the opportunity to make representations, but no later than 30 days after the day on which the notice is given, make a decision as to whether or not to disclose the information or documentation and give written notice of the decision to the person.

(5) A notice given under paragraph (4)(b) of a decision to disclose information or documentation must include

(a) a statement that the person to whom the notice is given may request a review of the decision under subsection (7) within 20 days after the day on which the notice is given; and

(b) a statement that if no review is requested under subsection (7) within 20 days after the day on which the notice is given, the Boards will disclose the information or documentation.

(6) If, under paragraph (4)(b), the Boards decide to disclose the information or documentation, the Boards must disclose it within 20 days after the day on which the notice is given under that paragraph, unless a review of the decision is requested under subsection (7).

(7) Any person to whom the Boards are required under paragraph (4)(b) to give a notice of a decision to disclose information or documentation may, within 20 days after the day on which the notice is given, apply to the Superior Court of Quebec for a review of the decision.

(8) An application made under subsection (7) must be heard and determined in a summary way in accordance with any applicable rules of practice and procedure of that Court.

(9) In any proceedings arising from an application under subsection (7), the Superior Court of Quebec must take every reasonable precaution, including, when appropriate, conducting hearings in camera, to avoid the disclosure by the Court or any person of any information or documentation that, under this Act, is privileged or is not to be disclosed.

95. (1) The Ministers are entitled to access to any information or documentation, relating to petroleum resource activities in the joint management area, that is provided for the purposes of this Act and any information or documentation must, on the request of either Minister, be disclosed to that Minister without requiring the consent of the party who provided the information or documentation.

(2) The Boards may disclose to each other any information or documentation, relating to petroleum resource activities in the joint management area, that is provided for the purposes of this Act without requiring the consent of the party who provided the information or documentation.

(3) Section 93 applies, with any modifications that the circumstances require, in respect of any disclosure of information or documentation or the production or giving of evidence relating to that information or documentation as if the references in that section to the administration or enforcement of this Act included references to the administration or enforcement of the provincial Act that enacts the accord referred to in section 13, as amended from time to time.

(4) The Ministers must make an annual report detailing the amount of petroleum extracted by an owner from a pool or a well during the previous year and the amount of royalties paid by that owner. The report must be made available to the public.

Hearings and Judicial Review

96. (1) The Ministers must, not less than 30 days before the day on which they make any order that is expressly stated in this Part to be subject to this section, give notice in writing to the persons that the Ministers consider to be directly affected by the proposed order.

(2) Any person who receives a notice under subsection (1) may, in writing to the Ministers, request a hearing within the 30-day period referred to in that subsection and, on receipt of that request, the Ministers must refer the request to the Committee for the purpose of holding the hearing and direct the Committee to appoint a time and place for the hearing and to give notice of that hearing to the person who requested it.

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

(4) On the conclusion of the hearing, the Committee must submit to the Ministers its recommendations concerning the proposed order, together with the evidence and other material that was before the Committee.

(5) Before making any decision in respect of the proposed order, the Ministers must consider the recommendations of the Committee.

(6) The Ministers must notify the person who requested the hearing of any order made and, on request by that person, publish or make available to that person the reasons for the order.

(7) An order takes effect

(a) as of the day after the 30-day period referred to in subsection (1), if no hearing is requested under subsection (2); or

(b) as of the day on which the decision to make the proposed order is made by the Ministers, if a hearing is requested under subsection (2).

(8) An order made after a hearing under this section is subject to review by the Superior Court of Quebec in accordance with an Act of the Legislature of Quebec.

Regulations

97. Subject to subsection 7(1), the Governor in Council may make regulations for carrying out the purposes and provisions of this Part, including regulations

(a) respecting the division and subdivision of the joint management area including providing for the criteria to define and describe those divisions and subdivisions;

(b) respecting any notice or application and indicating to or by whom it is to be given or made;

(c) prescribing the information and documentation to be provided by interest owners and holders of an interest or a share in an interest and the time when and manner in which they are to be provided, and requiring that information and documentation to be provided in accordance with the regulations;

(d) respecting fees and deposits to be paid in respect of interests, prescribing the amounts of those fees and deposits and the time and manner of their payment and providing for the administration of those fees and deposits and the disposition and return of deposits; and

(e) prescribing anything that for the purposes of this Part is to be prescribed.

Division 10

Special Exploration Licences

98. (1) Despite sections 41 to 47, one year after the coming into force of this section, the Ministers must issue an exploration licence under this Act to the holder of a licence issued under section 166 of the Mining Act, CQLR, c. M-13.1 and set out in Schedule 2 for the portion of the joint management area specified in the licence issued under that Act.

(2) However, in the event of a dispute concerning the limits of the joint management area adjacent to any portion of the area specified in a licence referred to in Schedule 2, an exploration licence for that area must not be issued under subsection (1) until the dispute is resolved under this Act.

(3) Any exploration licence that is issued under subsection (1) following the resolution of a dispute referred to in subsection (2) must give effect to any amendment to the limits of the joint management area.

(4) The Government of Quebec undertakes to indemnify the Government of Canada in relation to any damages the Government of Canada is required to pay under the terms of a final judgment relating to the issuance of exploration licences under subsection (1).

PART 2

PETROLEUM OPERATIONS

Interpretation

99. The following definitions apply in this Part.

“Chief Conservation Officer” means the person designated as the Chief Conservation Officer under section 102.

“Chief Safety Officer” means the person designated as the Chief Safety Officer under section 102.

“pipeline” means any pipe or any system or arrangement of pipes that is within the joint management area or that extends beyond the joint management area to ground installations for the storage, production or processing of petroleum — unless the pipe, system or arrangement connects with a territory outside Quebec — by which petroleum or any other substance, including water, that is incidental to the drilling for or production of petroleum is transported from any wellhead or other place at which it is produced to any other place, or from any place where it is stored, processed or treated to any other place, and includes all property of any kind used for the purpose of, or in connection with or incidental to, the operation of a pipe or system or arrangement of pipes, in the gathering, transportation, handling and delivery of the petroleum or substance and includes installations or vessels in the joint management area, tanks, surface reservoirs, pumps, racks, storage and loading facilities, compressors, compressor stations, pressure measuring and controlling equipment and fixtures, flow controlling and measuring equipment and fixtures, metering equipment and fixtures, and heating, cooling and dehydrating equipment and fixtures, but does not include any pipe or any system or arrangement of pipes that constitutes a system for the distribution of gas to ultimate consumers.

“well” means any opening in the ground — other than a seismic shotpoint — that is made, is to be made or is in the process of being made by drilling, boring or other method

(a) for the production of petroleum;

(b) for the purpose of exploring for or obtaining petroleum;

(c) for the purpose of obtaining water to inject into an underground formation;

(d) for the purpose of injecting gas, air, water or any other substance into an underground formation; or

(e) for any purpose if made through sedimentary rocks to a depth of at least 150 metres.

Purpose

100. The purpose of this Part is to promote, in respect of the exploration for and development of petroleum,

(a) safety, particularly by encouraging persons who are exploring for and developing petroleum to maintain a prudent regime for achieving safety;

(b) the protection of the environment;

(c) accountability in accordance with the “polluter pays” principle;

(d) the conservation of petroleum resources;

(e) joint production arrangements; and

(f) economically efficient infrastructures.

Application

101. This Part applies in respect of the exploration and drilling for and the production, conservation, processing and transportation of petroleum in the joint management area.

Chief Safety Officer and Chief Conservation Officer

102. The Boards may designate a member, officer or employee of either of the Boards as the Chief Safety Officer and another member, officer or employee of either of the Boards as the Chief Conservation Officer; however, the Chief Executive Officer of either of the Boards must not be designated as the Chief Safety Officer.

Status of an Order

103. An order made under this Act by a safety officer, the Chief Safety Officer, a conservation officer, the Chief Conservation Officer, the Committee or the Boards is not a statutory instrument as defined in the Statutory Instruments Act.

Prohibition and Limitations

104. A person must not carry on any work or activity related to the exploration or drilling for or the production, conservation, processing or transportation of petroleum in the joint management area unless

(a) that person is the holder of an operating licence issued under paragraph 106(1)(a);

(b) that person is the holder of an authorization issued, before operations are commenced, under paragraph 106(1)(b) for each work or activity; and

(c) when it is required, that person is authorized or entitled to carry on business in the place where that person proposes to carry on the work or activity.

105. (1) A holder of an authorization to construct or operate a pipeline that is issued under paragraph 106(1)(b) must not, without the leave of the Boards,

(a) sell, transfer or lease the pipeline, in whole or in part, to any person;

(b) purchase or lease any other pipeline from any person;

(c) enter into an agreement for amalgamation with any person; or

(d) abandon the operation of a pipeline.

(2) Despite paragraph (1)(a), leave is required only if the holder sells, transfers or leases any part of the pipeline that is capable of being operated for the transportation of petroleum or any other substance, including water, that is incidental to the drilling for or production of petroleum.

(3) For the purpose of paragraph (1)(b), “pipeline” is not limited to the definition that is given to it in section 99.

Licences and Authorizations

Operating Licences and Authorizations for Work or Activity

106. (1) The Boards may, on application made in the form established and containing the information required by them, and, in the prescribed manner, issue

(a) an operating licence; and

(b) subject to section 117, an authorization for each proposed work or activity, referred to also as an “authorization for a work or activity”.

(2) An operating licence expires on March 31 following the day on which it is issued and may be renewed for successive periods not exceeding one year each.

(3) An operating licence is subject to any requirements that are determined by the Boards or that are prescribed and to any deposits that are prescribed.

(4) On receipt by the Boards of an application for an authorization for a work or activity or of an application to amend an authorization, the Boards are to provide a copy of the application to the Chief Safety Officer.

(5) An authorization is subject to any approvals that the Boards determine or that may be granted in accordance with the regulations and any requirements and deposits that the Boards determine or that may be prescribed — which approvals, requirements or deposits must not be inconsistent with the provisions of this Act or the regulations — including requirements

(a) relating to liability for loss, damage, costs or expenses;

(b) for the carrying out of environmental programs or studies; and

(c) for the payment of expenses incurred by the Boards in approving the design, construction and operation of production facilities and production platforms, as those terms are defined in the regulations.

(6) The Boards may suspend or revoke an operating licence or an authorization for a work or activity for failure to comply with, contravention of or default in respect of

(a) a requirement, approval or deposit subject to which the licence or authorization was issued;

(b) a fee or charge payable in accordance with regulations made under section 8;

(c) a requirement undertaken in a declaration referred to in subsection 114(1);

(d) any of subsections 114(2), 115(2), 161(4) or (5) and 162(2) or (3); or

(e) any applicable regulation.

(7) The Boards may vary the terms of an operating licence or authorization.

(8) The Boards may each delegate any of their powers under paragraph (1)(b) to any of their members, officers or employees and those powers must be exercised in accordance with the terms of the delegation.

107. (1) If an application made under paragraph 106(1)(b) or subsection 113(2) is in respect of a physical activity described in subsection (3), the Boards must not issue an authorization or approval, as the case may be, unless the following conditions are met:

(a) in the case of a physical activity referred to in subparagraph (3)(b)(i), the applicant has received from the Board the decision statement referred to in section 54 of the Canadian Environmental Assessment Act, 2012 in respect of that activity; and

(b) in the case of a physical activity referred to in subparagraph (3)(b)(ii), the minister of the Government of Quebec responsible for the environment has communicated his or her recommendation to the Quebec Energy Board under section 31.8.4 or 31.8.5 of the Environment Quality Act, CQLR, c. Q-2.

(2) The Board must issue the decision statement referred to in section 54 of the Canadian Environmental Assessment Act, 2012 in respect of the physical activity within 12 months after the day on which the applicant has, in the Board’s opinion, provided a complete application.

(3) The physical activity in question — including any physical activity that is incidental to it — is a physical activity

(a) that is carried out in the joint management area;

(b) that is

(i) designated by regulations made under paragraph 84(a) of the Canadian Environmental Assessment Act, 2012 or in an order made under subsection 14(2) of that Act, or

(ii) referred to in section 31.8.2 of the Environment Quality Act, CQLR, c. Q-2; and

(c) for which, in the case of a physical activity referred to in subparagraph (b)(i), the Board is the responsible authority as defined in subsection 2(1) of Canadian Environmental Assessment Act, 2012.

(4) If the Board requires the applicant to provide information or undertake a study with respect to the physical activity, the period that is taken by the applicant, in the Board’s opinion, to comply with the requirement is not included in the calculation of the period referred to in subsection (2).

(5) The Board must, without delay, make public

(a) the date on which the 12-month period referred to in subsection (2) begins; and

(b) the date on which the period referred to in subsection (4) begins and the date on which it ends.

108. The Board has the authority to establish a participant funding program to facilitate the participation of the public in the environmental assessment as defined in subsection 2(1) of the Canadian Environmental Assessment Act, 2012 of any physical activity described in subsection 107(3) — including any physical activity that is incidental to it — that meets the condition set out in paragraph 58(1)(a) of that Act and that is the subject of an application for an authorization under paragraph 106(1)(b) or an application under subsection 113(2).

109. (1) Any person may, for the purpose of exploring for or developing petroleum, enter in and use any portion of the joint management area in order to carry on a work or activity authorized under paragraph 106(1)(b).

(2) However, if a person occupies a portion of the joint management area under lawful title or ownership or lawful possession, other than an authorization for a work or activity or an interest, no person is to enter on or use that portion for a purpose referred to in subsection (1) without the consent of the occupier or, if consent has been refused, except in accordance with the terms imposed by a decision of an arbitrator made in accordance with the regulations.

Safety of Works and Activities

110. The Boards must, before issuing an authorization for a work or activity, consider the safety of the work or activity by reviewing, in consultation with the Chief Safety Officer, the system as a whole and its components, including its installations, equipment, operating procedures and personnel.

Spill-treating Agent

111. The Boards must not permit the use of a spill-treating agent in an authorization for a work or activity unless the Boards determine that the use of the spill-treating agent is likely to achieve a net environmental benefit.

Financial Requirements

112. The Boards must, before issuing an authorization for a work or activity, ensure that the applicant has complied with the requirements of subsections 161(1) or (2) and 162(1) in respect of that work or activity.

Development Plan

113. (1) An approval that is applicable to an authorization issued under paragraph 106(1)(b) in relation to developing a pool or field and that is prescribed for the purposes of this section is not to be granted unless the Boards have, on application, approved a development plan relating to the development of that pool or field under subsection (4).

(2) An application for the approval of a development plan must be submitted to the Boards in the form established and containing the information required by them, at the time and in the manner prescribed, together with the proposed development plan in the form and containing the information described in subsection (3).

(3) The development plan relating to the proposed development of a pool or field that is submitted under this section must be set out in two parts, containing

(a) in the first part, a description of the general approach to developing the pool or field and, in particular, information, in any detail that may be prescribed, with respect to

(i) the scope, purpose, location, timing and nature of the proposed development,

(ii) the production rate, evaluations of the pool or field, estimated amounts of petroleum proposed to be recovered, reserves, recovery methods, production monitoring procedures, costs and environmental factors in connection with the proposed development, and

(iii) the production system and any alternative production systems that could be used for the development of the pool or field; and

(b) in the second part, all technical or other information and proposals, as may be prescribed, that are necessary for a comprehensive review and evaluation of the proposed development.

(4) After reviewing the application and development plan, the Boards may approve the development plan, subject to the consent of the Ministers for the first part of the development plan and any requirements that the Boards consider appropriate or that may be prescribed.

(5) If a development plan has been approved under subsection (4),

(a) it is not to be amended unless the amendment is approved by the Boards and, in the case of an amendment to the first part of the development plan, the Ministers consent to the approval; and

(b) any requirement to which the approval is subject may be amended by the Boards but, if the requirement relates to the first part of the development plan, it may only be amended with the consent of the Ministers.

(6) Subsections (1) to (5) apply, with any modifications that the circumstances require, with respect to a proposed amendment to a development plan or to any requirement to which the approval of the plan is subject.

(7) The Boards may each delegate any of their powers under subsection (4) to any of their members, officers or employees and those powers must be exercised in accordance with the terms of the delegation.

Declarations

114. (1) No authorization for a work or activity is to be issued unless the Boards have received, from the applicant, a declaration in the form established by the Boards that states that

(a) the equipment and installations that are to be used in the work or activity to be authorized are fit for the purposes for which they are to be used, the operating procedures relating to them are appropriate for those uses and the personnel who are to be employed in connection with them are qualified and competent; and

(b) the applicant will ensure, as long as the work or activity that is authorized continues, that the equipment and installations continue to be fit for the purposes for which they are used, the operating procedures continue to be appropriate for those uses and the personnel continue to be qualified and competent.

(2) If any equipment, installation, operating procedure or personnel specified in the declaration changes and no longer conforms to the declaration, the holder of the authorization must provide the Boards with a new declaration as soon as feasible after the change occurs.

(3) The Boards or any of their delegates are not liable to any person by reason only of having issued an authorization in reliance on a declaration made under this section.

Certificates

115. (1) No authorization for a work or activity is to be issued with respect to any prescribed equipment or installation, or any equipment or installation of a prescribed class, unless the Boards have received, from the applicant, a certificate issued by a prescribed certifying authority in the form established by the Boards.

(2) The holder of an authorization must ensure that the certificate remains in force for as long as the equipment or installation to which the certificate relates is used in the work or activity in respect of which the authorization is issued.

(3) The certificate must state that the equipment or installation in question

(a) is fit for the purposes for which it is to be used and may be operated safely without posing a threat to human beings or the environment in the location and for the period set out in the certificate; and

(b) is in conformity with all the requirements and conditions that are imposed under subsection 106(5), whether they are imposed by regulation or by the Boards.

(4) The certificate is not valid if the certifying authority

(a) has not complied with any prescribed procedure or any procedure that may be established by the Boards; or

(b) has participated, directly or indirectly, to any extent greater than that prescribed, in the design, construction or installation of the equipment or installation in respect of which the certificate is issued.

(5) An applicant for an authorization must permit the certifying authority to have access to the equipment and installations in respect of which the certificate is required and to any information that relates to them.

(6) The Boards or any of their delegates are not liable to any person by reason only of having issued an authorization in reliance on a certificate issued under this section.

Site Plans and Location Maps

116. (1) A holder of both an operating licence and an authorization for a work or activity must ensure that a certified site plan and certified location map are made to confirm the location of a well on the seabed by a person who both holds a licence issued under the Canada Lands Surveyors Act and is a member of l’Ordre des arpenteurs-géomètres du Québec.

(2) The person charged with making a site plan and location map must do so in accordance with the specifications and requirements of the provisions of this Act and any regulations made under it; however, a plan or map is not subject to the specifications and requirements under the Canada Lands Surveys Act.

(3) The site plan and location map must be kept on file in the office of the person who made them and a certified copy must be sent, for administrative purposes, to the Boards and to the Surveyor General, as defined in subsection 2(1) of the Canada Lands Surveys Act, and to the Surveyor-General of Quebec.

Benefits Plan Approval

117. For the purposes of this Act, section 5.2 of the Canada Oil and Gas Operations Act continues to apply with any modifications that the circumstances require, except that

(a) the reference to a development plan under subsection 5.1(1) in subsection 5.2(2) of that Act is to be read as a reference to a development plan under subsection 113(1);

(b) the reference to an authorization under paragraph 5(1)(b) in subsection 5.2(2) of that Act is to be read as a reference to an authorization for a work or activity; and

(c) the Federal Minister must consult with the Provincial Minister before approving, or waiving approval of, a benefits plan.

118. (1) Any holder of an authorization for a work or activity referred to in subsection 113(1) must establish a committee for the maximization of benefits. The committee must follow the approved benefits plan and ensure that the holder maximizes benefits in accordance with the principles of sustainable development.

(2) The committee must be established within 30 days after the day on which the authorization for a work or activity is issued and must be continued until the day on which the development of the pool or field in respect of the authorization for which the submission of a development plan was required under subsection 113(1) ceases.

(3) The composition of the committee and the method for the selection of members are to be determined by the holder and submitted to the Boards for approval. The majority of the committee’s members must be independent of the holder.

(4) Subject to subsection 7(1), the Governor in Council may make regulations respecting the operation of the committee, including

(a) the information and documents that a holder must submit to the committee so that it can carry out its duties;

(b) the types of charges that will be reimbursed by the holder to the committee;

(c) the number of meetings that the committee must hold every year; and

(d) the requirement to produce an annual report.

Jurisdiction and Powers of the Boards

119. (1) The Boards have full and exclusive jurisdiction to inquire into, hear and determine any matter if it appears to them

(a) that any person has failed to do any act or thing that the person is required to do under the provisions of this Part or the regulations made under it, an order or direction made by the Boards under this Part, or an operating licence or authorization for a work or activity, or that any person has done or is doing any act or thing that is contrary to this Part or the regulations made under it, an order or direction made by the Boards under this Part, or an operating licence or authorization for a work or activity; or

(b) that the circumstances may require them, in the public interest, to make any order or give any direction, leave or approval that by law they are authorized to make or give, or with respect to any act or thing that is prohibited, sanctioned or required to be done by the provisions of this Part or the regulations made under it, an order or direction made by the Boards under this Part, or an operating licence or authorization for a work or activity.

(2) The Boards may, of their own motion, inquire into, hear and determine any matter or thing that under this Part they may inquire into, hear and determine.

(3) For the purposes of this Part, the Boards have full jurisdiction to hear and determine all matters, whether of law or of fact.

120. The Boards may

(a) order any person to do, without delay, or within or at any time and in any manner established by the Boards, any act or thing that the person is or may be required to do under the provisions of this Part or the regulations made under it, or under an order or direction made by the Boards under this Part or an operating licence or authorization for a work or activity; and

(b) prohibit any act or thing or the continuing of any act or thing that is contrary to the provisions of this Part or the regulations made under it, an order or direction made under this Part or an operating licence or authorization for a work or activity.

121. Sections 119 and 120 do not apply to any act or thing that is required or prohibited by any decision or order of the Committee.

122. (1) The Boards may specify in an operating licence or authorization for a work or activity or in any of their orders that it or any portion or provision of it is to come into force at a future time.

(2) The Boards may also make the coming into force contingent on whether the conditions specified in the operating licence, authorization for a work or activity or order have been met to the Boards’ satisfaction, on the happening of any contingency, on any condition or on any required approval. They may also direct that the whole or any portion of the operating licence, authorization for a work or activity or order is to be in force for a limited time or until the happening of a specified event.

(3) This section does not limit the generality of any provision of this Part that authorizes the Boards to impose terms in respect of an operating licence or authorization for a work or activity or any of their orders.

(4) The Boards may make an interim order and may reserve their decision pending further proceedings in connection with any matter.

Documents

123. (1) A holder of an authorization for a work or activity that relates to the construction or operation of a pipeline must keep, in the form and manner determined by the Boards, any documents, including any records or books of account, that the Boards require and that contain information that is determined by the Boards to be necessary for the administration of this Part.

(2) The holder must produce those documents to the Boards, or make them available to the Boards or their designated representative, for inspection or copying at a time and under conditions set by the Boards.

Extended Formation Flow Tests

124. (1) The title to petroleum produced during an extended formation flow test vests in the person who conducts the test in accordance with an authorization for a work or activity, with every approval and requirement subject to which such an authorization is issued and with any applicable regulation, whether or not the person has a production licence.

(2) The title to petroleum is conditional on compliance with the terms of the authorization, approval and regulation, including the payment of royalties or other payment in lieu of royalties.

(3) This section applies only in respect of an extended formation flow test that provides significant information for determining the best recovery system for a reservoir, the limits of a reservoir or the productivity of a well producing petroleum from a reservoir and that does not adversely affect the ultimate recovery from a reservoir.

Division 1

Traffic, Tolls and Tariffs

Interpretation

125. The following definitions apply in this Division.

“holder” means a holder of an authorization for a work or activity that relates to the construction or operation of a pipeline.

“tariff” means a schedule of tolls, terms, classifications, practices or rules and regulations applicable to the provision of a service by a holder and includes rules respecting the calculation of tolls.

“toll” includes any rate, charge or allowance that is charged or made

(a) for the shipment, transportation, transmission, care, handling or delivery of oil, gas or any other substance, including water, that is incidental to the drilling for or production of oil or gas that is transmitted through a pipeline, or for storage, demurrage or the like;

(b) for the provision of a pipeline when the pipeline is available and ready to provide for the transmission of oil, gas or any other substance, including water, that is incidental to the drilling for or production of oil or gas; and

(c) in respect of the purchase and sale of gas that is the property of a holder and that is transmitted by the holder through its pipeline, from which is subtracted the cost to the holder of the gas at the point where it enters the pipeline.

Powers of the Boards

126. The Boards may make orders with respect to all matters relating to traffic, tolls or tariffs.

Filing of Tariff

127. (1) A holder must not charge any tolls except tolls that are

(a) specified in a tariff that has been filed with the Boards and is in effect; or

(b) approved by an order of the Boards.

(2) If gas that is transmitted by a holder through its pipeline is the property of the holder, the holder must file with the Boards true copies of all the contracts that it makes for the sale of the gas at the time they are made and any amendments to those contracts made from time to time. The true copies constitute, for the purposes of this Division, a tariff under subsection (1).

128. If a holder files a tariff with the Boards and the holder proposes to charge a toll referred to in paragraph (b) of the definition “toll” in section 125, the Boards may establish the day on which the tariff is to come into effect and the holder must not begin charging the toll before that day.

Just and Reasonable Tolls

129. All tolls must be just and reasonable and must always, under substantially similar circumstances and conditions with respect to all traffic of the same description carried over the same route, be charged equally to all persons at the same rate.

130. The Boards may determine, as questions of fact, whether the traffic is or has been carried out under substantially similar circumstances and conditions referred to in section 129, whether in any case a holder has complied with the requirements of that section and whether there has, in any case, been unjust discrimination under section 134.

131. If the Boards have made an interim order authorizing a holder to charge tolls until a specified time or the happening of a specified event, the Boards may, in any subsequent order, direct the holder to, in a manner satisfactory to the Boards,

(a) refund any part of the tolls that are charged under the interim order that is in excess of the tolls determined by the Boards to be just and reasonable, together with interest on the amount so refunded; or

(b) recover in its tolls the amount by which the tolls determined by the Boards to be just and reasonable exceed the tolls charged under the interim order, together with interest on the amount so recovered.

Disallowance or Suspension of Tariff

132. The Boards may disallow any tariff or any portion of any tariff that they consider to be contrary to any of the provisions of this Act or any of their orders and they may require a holder, within a time fixed by them, to substitute for the tariff a tariff that is satisfactory to them or establish other tariffs in lieu of the tariff or the portion so disallowed.

133. The Boards may suspend any tariff or any portion of any tariff before or after the tariff goes into effect.

Unjust Discrimination

134. A holder must not make any unjust discrimination in tolls, service or facilities against any person or locality.

135. If it is shown that a holder makes any discrimination in tolls, service or facilities against any person or locality, the burden of proving that the discrimination is not unjust lies on the holder.

136. (1) A holder or shipper or an officer or employee, or an agent or mandatary, of a holder or shipper must not

(a) offer, grant, give, solicit, accept or receive a rebate, concession or discrimination by which a person obtains the transmission of oil, gas or any other substance, including water, that is incidental to the drilling for or production of oil or gas from the holder at a rate less than that specified in the tariffs then in force; or

(b) knowingly be party or privy to a false billing, false classification, false report or other device resulting in a rate being charged that is less than that specified in the tariffs then in force.

(2) No prosecution is to be instituted for a contravention of this section without leave of the Boards.

Contracts Limiting Liabilities

137. (1) Except as provided in this section, no contract, condition or notice made or given by a holder that impairs, restricts or limits its liability in respect of the transmission of oil, gas or any other substance, including water, that is incidental to the drilling for or production of oil or gas relieves the holder from its liability, unless that class of contract, condition or notice is included as a term of its tariffs as filed or has been first authorized or approved by order of the Boards.

(2) The Boards may determine the extent to which the liability of a holder may be impaired, restricted or limited as provided in this section.

(3) The Boards may establish the terms under which oil, gas or any other substance, including water, that is incidental to the drilling for or production of oil or gas may be transmitted by a holder.

Transmission of Oil or Gas

138. (1) Subject to any exemptions or conditions that the Boards may establish, a holder that operates a pipeline for the transmission of oil must, according to the holder’s powers, without delay and with due care and diligence, receive, transport and deliver all oil and any other substance, including water, that is incidental to the drilling for or production of oil that the holder is requested to transmit by means of its pipeline.

(2) The Boards may, by order, on any conditions that they may specify in the order, require a holder that operates a pipeline for the transmission of gas to receive, transport and deliver, according to the holder’s powers, gas and any other substance, including water, that is incidental to the drilling for or production of gas that the holder is requested to transmit by means of its pipeline.

(3) If the Boards find that no undue burden will be placed on the holder by requiring the holder to do so and if they consider it in the public interest, they may require a holder that operates a pipeline for the transmission of oil or gas to provide adequate and suitable facilities for

(a) the receipt, transmission and delivery of the oil, gas or any other substance, including water, that is incidental to the drilling for or production of oil or gas that is offered for transmission by means of its pipeline;

(b) the storage of the oil, gas or any other substance, including water, that is incidental to the drilling for or production of oil or gas; and

(c) the junction of its pipeline with other facilities for the transmission of the oil, gas or any other substance, including water, that is incidental to the drilling for or production of oil or gas.

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

Transmission and Sale of Gas

140. (1) If the Boards find that no undue burden will be placed on the holder by requiring the holder to do so and if they consider it in the public interest, they may require a holder who operates a pipeline for the transmission of gas to extend or improve its transmission facilities in order to facilitate the junction of its pipeline with any facilities of, and to sell gas to, any locality or entity that is authorized by law to distribute gas locally to the public and, for those purposes, to construct branch lines to communities immediately adjacent to its pipeline.

(2) Subsection (1) does not empower the Boards to compel a holder to sell gas to additional customers if doing so would impair its ability to render adequate service to its existing customers.

Regulations

141. Subject to subsection 7(1), the Governor in Council may make regulations for the purposes of this Division, designating as oil or gas any other substance resulting from the processing or refining of hydrocarbons, including 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.

Division 2

Regulation of Operations

General

142. (1) Subject to subsection 7(1), the Governor in Council may make regulations under this Part for the purposes of safety, the protection of the environment and accountability as well as for the production and conservation of petroleum resources, including regulations

(a) respecting the form and content of a notice, application, request or report and the method of transmission;

(b) prescribing to or by whom any notice, application, request or report is to be given or made;

(c) respecting the exploration and drilling for and the production, processing and transportation of petroleum as well as the works and activities related to the exploration, drilling, production, processing and transportation;

(d) concerning the measures to be taken in preparation for or in the case of a spill, as defined in subsection 153(1), including measures concerning the use of a spill-treating agent;

(e) concerning the process for the determination of a net environmental benefit;

(f) concerning the variation or revocation of an approval referred to in paragraph 155(1)(b);

(g) authorizing the Boards or any person to make any orders that may be specified in the regulations and to exercise any powers and perform any duties that may be necessary for

(i) the management and control of petroleum production,

(ii) the removal of petroleum from the joint management area, and

(iii) the design, construction, operation or abandonment of a pipeline;

(h) respecting arbitration for the purposes of subsection 109(2), including the costs of or incurred in relation to the arbitration;

(i) respecting the approvals to be granted as conditions of authorizations for proposed works or activities;

(j) establishing classes of installations and equipment;

(k) respecting certificates for the purposes of section 115;

(l) prohibiting or limiting the introduction into the environment of substances, classes of substances and forms of energy, in the prescribed circumstances;

(m) authorizing, for the purposes of the definition “spill” in subsection 153(1), the discharge, emission or escape of petroleum in any quantities, at any locations, under any conditions and by any persons that are prescribed;

(n) concerning the circumstances under which the Boards may make a recommendation for the purposes of subsection 163(1) and the information to be submitted with respect to that recommendation;

(o) concerning the creation, conservation and production of records;

(p) prescribing the circumstances under which an inquiry is to be held under section 164;

(q) respecting the making, certification and filing of site plans and location maps for any infrastructure related to the exploration for and development of petroleum; and

(r) prescribing anything that for the purposes of this Part is to be prescribed.

(2) Subject to section 7, and on the recommendation of the Federal Minister and the Minister of Labour, the Governor in Council may make regulations under this Part for the purposes of occupational health and safety, including regulations

(a) respecting the safety of any work or activity that involves the use of explosives or that is carried out at heights, directly over water or under water or in a confined space;

(b) respecting the establishment of standards for the design and maintenance of equipment, machines, devices, materials and other things that may be used by employees — as defined by regulation — in carrying out their job functions;

(c) respecting the circumstances and manner in which any thing referred to in paragraph (b) is or is not to be used, and any qualifications that an individual must have in order to use it;

(d) specifying who is responsible for ensuring that the standards referred to in paragraph (b) are complied with and that the things referred to in that paragraph are used in the specified circumstances and manner and by individuals who have the required qualifications;

(e) respecting the establishment of standards relating to levels or limits for ventilation, lighting, temperature, humidity, sound and vibration, and exposure to chemical agents, biological agents and radiation and specifying who is responsible for ensuring that those standards are complied with;

(f) respecting the qualifications of persons authorized to carry out prescribed training;

(g) respecting the establishment of fire safety and emergency measures, and specifying who is responsible for ensuring that those measures are complied with;

(h) respecting the form and manner in which records are to be maintained and information is to be communicated; and

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

(3) Regulations made under subsection (1) respecting a spill-treating agent must, in addition to meeting the requirements set out in subsection 7(1), be made on the recommendation of the Federal Minister and the Minister of the Environment.

(4) The regulations made under subsection (1) or (2) may be made applicable to all persons or one or more classes of persons.

(5) The regulations made under subsection (1) or (2) may incorporate any material by reference regardless of its source and either as it exists on a particular day or as amended from time to time.

(6) For greater certainty, material that is incorporated by reference in a regulation is not required to be transmitted for registration or published in the Canada Gazette by reason only that it is incorporated by reference.

143. (1) The Governor in Council may, by order, amend Schedule 3 or 4 to add, amend or remove a reference to a federal Act or regulation, or to a provision of a federal Act or regulation.

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

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

144. (1) The Chief Safety Officer and Chief Conservation Officer may

(a) authorize the use of equipment, methods, measures or standards in lieu of any that are required by any regulation made under section 142 if those Officers are satisfied that the use of that other equipment or those other methods, measures or standards would provide a level of safety, protection of the environment and conservation that is equivalent to that that would be provided by compliance with the regulations; or

(b) grant an exemption from any requirement imposed, by any regulation made under subsection 142(1), in respect of equipment, methods, measures or standards if those Officers are satisfied with the level of safety, protection of the environment and conservation that will be achieved without compliance with that requirement.

(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 the regulatory requirement does not relate to safety.

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

145. (1) The following definitions apply in this section.

“marine installation or structure”

(a) includes

(i) any ship, including any ship used for construction, production, diving, geotechnical or seismic work,

(ii) any offshore drilling unit, including a mobile offshore drilling unit,

(iii) any production platform, subsea installation, a pipeline as defined in section 99, pumping station, living accommodation, storage structure or loading or landing platform, and

(iv) any other prescribed work, or work within a class of works, but

(b) does not include

(i) any vessel, including any supply vessel, standby vessel, shuttle tanker or seismic chase vessel, that provides any supply or support services to a ship, installation, structure, work or anything else described in paragraph (a), unless the vessel is within a prescribed class of vessels, or

(ii) any ship or vessel within a prescribed class of ships or vessels.

“Quebec labour legislation” means An Act Respecting Industrial Accidents and Occupational Diseases, CQLR, c. A-3.001, An Act Respecting Pressure Vessels, CQLR, c. A-20.01, the Building Act, CQLR, c. B-1.1, the Labour Code, CQLR, c. C-27, the National Holiday Act, CQLR, c. F-1.1, An Act Respecting Workforce Vocational Training and Qualification, CQLR, c. F-5, the Master Electricians Act, CQLR, c. M-3, the Master Pipe-mechanics Act, CQLR, c. M-4, the Stationary Enginemen Act, CQLR, c. M-6, An Act Respecting Labour Standards, CQLR, c. N-1.1, An Act Respecting Labour Relations, Vocational Training and Workforce Management in the Construction Industry, CQLR, c. R-20, and An Act Respecting Occupational Health and Safety, CQLR, c. S-2.1 and any other prescribed Act of the Legislature of Quebec, as those Acts are amended from time to time.

(2) Subject to subsections (5) and (6), the Quebec labour legislation and any regulations made under it apply on any marine installation or structure that is within the joint management area in connection with the exploration or drilling for or the production, conservation, processing or transportation of petroleum within the joint management area.

(3) In the event of an inconsistency or conflict between the provisions of this Act, or any regulations made under it, and the provisions of the Quebec labour legislation, or any regulations made under that legislation, the provisions of this Act and the regulations made under it prevail to the extent of the inconsistency or conflict.

(4) The Non-smokers’ Health Act and, despite subsection 168(1) of the Canada Labour Code, Parts I and III of the Canada Labour Code do not apply on any marine installation or structure referred to in subsection (2).

(5) Despite subsection 123(1) of the Canada Labour Code and the Oil and Gas Occupational Safety and Health Regulations, the provisions of Part II of the Canada Labour Code that permit the administration and enforcement of those regulations, and paragraphs 125(1)(e), (y) and (z.14) of that Act, apply on a marine installation or structure referred to in subsection (2) and take precedence over the Quebec labour legislation and any regulations made under it.

(6) Any complaint or remedy must be made or sought under the Quebec labour legislation unless the complaint or remedy relates substantially to a matter to which the regulations mentioned in subsection (5) apply.

(7) For the purposes of subsection (5), any reference to an occupational health and safety committee in the regulations referred to in that subsection or in Part II of the Canada Labour Code is to be read as a reference to the occupational health and safety committee established under An Act Respecting Occupational Health and Safety, CQLR, c. S-2.1.

(8) Subject to section 7, and on the recommendation of the Federal Minister, the Minister of Labour and the Minister of Transport, the Governor in Council may make regulations

(a) prescribing a work or a class of works for the purpose of subparagraph (a)(iv) of the definition “marine installation or structure”;

(b) prescribing a class of vessels for the purpose of subparagraph (b)(i) of the definition “marine installation or structure”; and

(c) prescribing a class of ships or vessels for the purpose of subparagraph (b)(ii) of the definition “marine installation or structure”.

(9) When an independent joint board is established for the management of petroleum resources in the joint management area,

(a) the provisions of Part II of the Canada Labour Code and the Oil and Gas Occupational Safety and Health Regulations cease to apply in respect of any marine installation or structure in the joint management area; and

(b) the provisions of any Quebec labour legislation respecting occupational health and safety in the petroleum sector and any regulations made under the provisions of that labour legislation apply to a marine installation or structure in the joint management area.

146. (1) In a prescribed emergency situation, if the Federal Minister is of the opinion that there is a conflict between the provisions of this Part or the regulations made under it 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 the provisions of this Part or the regulations made under it is likely to create a situation that would seriously endanger the safety of persons or property, the Minister may by order issue a declaration to that effect.

(2) The declaration 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 under subsection (4);

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

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

(3) From the time specified in the declaration, the provisions of this Part or the regulations specified in the declaration prevail, in respect of the geographical area, persons, work or activity described, over the provisions of the other federal law specified in the declaration until the Federal Minister or the Governor in Council by order revokes the declaration.

(4) Before the Federal Minister issues or revokes the declaration, the minister responsible for the federal law that is specified in the declaration must be consulted.

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

(6) An order under which a declaration is issued or revoked is exempt from the application of sections 3 and 9 of the Statutory Instruments Act.

147. (1) If the Chief Conservation Officer, on reasonable grounds, is of the opinion that, with respect to an interest in any portion of the joint management area, the capability exists to begin, continue or increase petroleum production and that a production order would stop waste, that Officer may order the beginning, continuation or increase of petroleum production at any rates and in any quantities that are specified in the order.

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

(3) A person who is subject to an order under subsection (1) or (2) must, on request, give the Chief Conservation Officer or a person designated by that Officer access to premises, files and records for all reasonable purposes related to the order.

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

(5) Despite subsection (4), the Chief Conservation Officer may, without an investigation, make an order requiring all operations to be shut down if, in that Officer’s opinion, it is necessary to do so to prevent damage to persons or property or to protect the environment, but as soon as feasible after making the order, and in any event within 15 days after the day on which the order is made, that Officer must hold an investigation at which interested persons are to be given an opportunity to be heard.

(6) At the conclusion of the investigation under subsection (5), the Chief Conservation Officer may set aside, vary or confirm the order made under that subsection or make a new order.

148. (1) A person who is aggrieved by an order of the Chief Conservation Officer after an investigation under section 147 may apply to the Boards for a review of the order.

(2) After hearing the application, the Boards may

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

(b) order any works to be undertaken that are considered necessary to prevent waste, the escape of petroleum or any other contravention of the provisions of this Division or the regulations; or

(c) make any other order that the Boards consider appropriate.