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Oil and Gas

Natural Resources Canada (NRCan)

Last Verified: 2006-10-11

Act: Canada Oil and Gas Operations Act, S.C. 1992, c. 35
Regulation: Canada Oil and Gas Operations Regulations and various regulations.

To Whom Does This Apply?

Canada Oil and Gas Operations Regulations
Any business involved in oil and gas land operations in the areas where the Act applies.

Canada Oil and Gas Installations Regulations
Any business involved in the exploration, development and production of oil and gas in areas where the Canada Oil and Gas Operations Act applies.

Oil and Gas Spills and Debris Liability Regulations
Any business involved in the exploration, development and production of oil and gas in areas where the Canada Oil and Gas Operations Act applies.

Canada Oil and Gas Geophysical Operations Regulations
Any business wanting to perform geophysical operations on frontier lands outside of Newfoundland and Nova Scotia.
Frontier Lands: 31 regions within Yukon, Northwest Territories, Sable Island and offshore.

Canada Oil and Gas Drilling Regulations
Business involved in exploration and development of Oil and Gas in either the Yukon, Northwest Territories, Hudson Bay or Gulf of St. Lawrence and offshore.

Summary

The Canada Oil and Gas Operations Act provides for the making of regulations concerning the design, safety, construction and installation, inspection, testing, monitoring, operation, maintenance and repair of installations used in the exploration for, development and production of oil and gas in areas not covered by a joint management and resource sharing agreement, such as with Newfoundland in 1985 (the Atlantic Accord) and with Nova Scotia in 1986 (the Canada-Nova Scotia Accord). The Act prohibits one from carrying on any work or activity related to the exploration for or the production of oil or gas unless one first obtains a license or authorization issued by the National Energy Board. As part of the application process, a plan must be submitted which shows that Canadians are being employed and that Canadian goods and services are being used. The National Energy Board may require that certain conditions be fulfilled, among them, that the person obtain appropriate insurance and that environmental studies be carried out.

The Canada Oil and Gas Operations Regulations administer oil and gas operations on Canada lands. An application for an operating license may be made by:

  • an individual who is 18 years of age or over;
  • a corporation that is registered with the Registrar of Companies pursuant to the Companies Ordinance of the Northwest Territories;
  • a corporation that is entitled to carry on business in any province.

Every application for an operating license shall:

  • be in writing;
  • contain the name and address of the applicant;
  • be forwarded to the Chief Conservation Officer;
  • be accompanied by a fee of $25 made payable to the Receiver General.

Please refer to the contact mentioned below.

The Canada Oil and Gas Installations Regulations establish the minimum safety requirements which must be met by all persons engaged in the exploration, development and production of oil and gas in the areas where the Canada Oil and Gas Operations Act applies. They ensure that the various components that make up an installation function according to specifications. Foremost, the technical requirements in the Regulations are designed to protect the safety of the workers, the operations and the environment.

In particular, the Regulations are concerned with technical requirements in the design of the installation and take into consideration environmental factors such as:

  • waves, wind and ice at the location;
  • the seabed conditions;
  • loading conditions.

Other requirements, for example, are:

  • analysis of the installation in terms of structural integrity;
  • appliances and systems for lifesaving;
  • winterization of the installation to protect personnel;
  • equipment and systems for active fire fighting;
  • design and protection of the helicopter deck;
  • programs to assume quality control and quality assurance.

The Oil and Gas Spills and Debris Liability Regulations govern the limits of liability for spills, authorized discharges and debris emanating or originating from work or activity related to the exploration or production of oil and gas.

The Canada Oil and Gas Geophysical Operations Regulations establish a standard set of procedures which operators and contractors must follow prior to, during and following geophysical operations. Any person may apply for a geophysical operation authorization by submitting to the Chief Conservation Officer three copies of a completed application form. The operator is expected to follow safe working practices during the project. A complete status and final report, including information such as location maps that show the boundaries of the area that is subject to each interest covered by the operation, will need to be submitted to the Chief Conservation Officer. Please refer to the contact mentioned below.

The Canada Oil and Gas Drilling Regulations govern the exploration, drilling and conservation of oil and gas and specifies measures to ensure the safety of these operations. Subject to these regulations, no person may drill a well without authorization and approval, which is obtained upon application to the Chief Conservation Officer. Please refer to the contact mentioned below.

DISCLAIMER
Information contained in this section is of a general nature only and is not intended to constitute advice for any specific fact situation. For particular questions, the users are invited to contact their lawyer. For additional information, see contact(s) listed below.

Quebec Contact(s):
See National Contact.


National Contact(s):
Mr. Michael Hnetka
Energy Resources Branch
Natural Resources Canada
580 Booth Street, 17th floor
Ottawa, Ontario  K1A 0E4
Telephone: (613) 992-2916
TTY (hearing impaired): 613-996-4397
E-mail: mhnetka@nrcan.gc.ca