National Energy Board Act - Part II

WARNING NOTE: Users of this office consolidation are reminded that it is prepared for convenience of reference only and that, as such, it has no official sanction.

PART II - ADVISORY FUNCTIONS

26. (1) The Board shall study and keep under review matters over which Parliament has jurisdiction relating to

(a) the exploration for, and the production, recovery, manufacture, processing, transmission, transportation, distribution, sale, purchase, exchange and disposal of, energy and sources of energy in and outside Canada; and

(b) the safety and security of pipelines and international power lines.

(1.1) The Board shall report on the matters referred to in subsection (1) from time to time to the Minister and shall recommend to the Minister such measures within the jurisdiction of Parliament as it considers necessary or advisable in the public interest for

(a) the control, supervision, conservation, use, marketing and development of energy and sources of energy; and

(b) the safety and security of pipelines and international power lines.

(2) The Board shall, with respect to energy matters, sources of energy and the safety and security of pipelines and international power lines,

(a) provide the Minister with such advice as the Minister may request, including advice relating to the export pricing of oil and gas;

(b) prepare such studies and reports as the Minister may request; and

(c) recommend to the Minister the making of such arrangements as it considers desirable for cooperation with governmental or other agencies in or outside Canada

(3) In carrying out its duties and functions under this section, the Board shall, wherever appropriate, utilize agencies of the Government of Canada to obtain technical, economic and statistical information and advice.

(4) The Board and its officers and employees may, on request, provide advice about energy matters, sources of energy and the safety and security of pipelines and international power lines to

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

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

27. Studies and reports of the Board made under this Part may be made public with the approval of the Minister.

28. For the purposes of this Part, the Board has all the powers of commissioners under Part I of the Inquiries Act.

PART II.1 - OIL AND GAS INTERESTS, PRODUCTION AND CONSERVATION

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(a) on summary conviction, to a fine not exceeding one hundred thousand dollars or to imprisonment for a term not exceeding one year or to both; or

(b) on conviction on indictment, to a fine not exceeding one million dollars or to imprisonment for a term not exceeding five years or to both

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

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