Bill 8 — 2010: Energy, Mines and Petroleum Resources Statutes Amendment Act, 2010

HONOURABLE BLAIR LEKSTROM
MINISTER OF ENERGY, MINES AND
PETROLEUM RESOURCES

BILL 8 — 2010

ENERGY, MINES AND PETROLEUM RESOURCES STATUTES AMENDMENT ACT, 2010

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

SECTION 1: [Agricultural Land Commission Act, section 20] is consequential to the continuation by this Bill of the Mediation and Arbitration Board as the Surface Rights Board.

1 Section 20 (3) (a) and (b) of the Agricultural Land Commission Act, S.B.C. 2002, c. 36, is repealed and the following substituted:

(a) the Surface Rights Board, or its predecessor, the Mediation and Arbitration Board, under the Petroleum and Natural Gas Act, the Mining Right of Way Act or section 19 of the Mineral Tenure Act; .

SECTION 2: [Coal Act, section 3] is consequential to

the continuation by this Bill of the Mediation and Arbitration Board as the Surface Rights Board, and
the repeal of Part 3 and the addition of Parts 16 and 17 of the Act by this Bill.

2 Section 3 (3) of the Coal Act, S.B.C. 2004, c. 15, is amended by striking out "Mediation and Arbitration Board" and substituting "Surface Rights Board" and by striking out "the relevant provisions of Part 3 of the Petroleum and Natural Gas Act apply" and substituting "Parts 16 and 17 of the Petroleum and Natural Gas Act apply".

SECTION 3: [Coal Act, section 3] is consequential to the continuation by this Bill of the Mediation and Arbitration Board as the Surface Rights Board.

3 Section 3 (4) and (5) is amended by striking out "Mediation and Arbitration Board" and substituting "Surface Rights Board".

SECTION 4: [Expropriation Act, section 2] strikes out references, consequential to amendments made to the Petroleum and Natural Gas Act and the repeal of the Pipeline Act by this Bill.

4 Section 2 (3) of the Expropriation Act, R.S.B.C. 1996, c. 157, is amended by striking out "the Petroleum and Natural Gas Act, the Pipeline Act,".

SECTION 5: [Freedom of Information and Protection of Privacy Act, Schedule 2] is consequential to the continuation by this Bill of the Mediation and Arbitration Board as the Surface Rights Board.

5 Schedule 2 of the Freedom of Information and Protection of Privacy Act, R.S.B.C. 1996, c. 165, is amended by striking out "Mediation and Arbitration Board" and substituting "Surface Rights Board".

SECTION 6: [Geothermal Resources Act, section 1] is consequential to the repeal of Part 3 and the addition of Parts 16 and 17 of the Act by this Bill.

6 Section 1 (2) of the Geothermal Resources Act, R.S.B.C. 1996, c. 171, is amended by striking out "Sections 6 to 31" and substituting "Parts 16 and 17".

SECTION 7: [Geothermal Resources Act, section 1] is self-explanatory.

SECTION 8: [Industrial Roads Act, section 1] is consequential to the repeal of Part 3 and the addition of Part 16 of the Act by this Bill.

8 Section 1 of the Industrial Roads Act, R.S.B.C. 1996, c. 189, is amended in paragraph (e) of the definition of "industrial road" by striking out "section 8 (1)" and substituting "section 139 (1)".

SECTION 9: [Mineral Tenure Act, section 16] is consequential to the continuation by this Bill of the Mediation and Arbitration Board as the Surface Rights Board.

9 Section 16 (3) (c) of the Mineral Tenure Act, R.S.B.C. 1996, c. 292, is amended by striking out "Mediation and Arbitration Board" and substituting "Surface Rights Board".

SECTION 10: [Mineral Tenure Act, section 19] is consequential to

the continuation by this Bill of the Mediation and Arbitration Board as the Surface Rights Board, and
the repeal of Part 3 and the addition of Part 17 of the Act by this Bill.

10 Section 19 (4) is amended by striking out "Mediation and Arbitration Board" and substituting "Surface Rights Board" and by striking out "the relevant provisions of Part 3 of the Petroleum and Natural Gas Act apply" and substituting "Part 17 of the Petroleum and Natural Gas Act applies".

SECTION 11: [Mineral Tenure Act, section 19] is consequential to the continuation by this Bill of the Mediation and Arbitration Board as the Surface Rights Board.

11 Section 19 (5) to (8) is amended by striking out "Mediation and Arbitration Board" and substituting "Surface Rights Board".

SECTION 12: [Mining Right of Way Act, section 1] is consequential to the continuation by this Bill of the Mediation and Arbitration Board as the Surface Rights Board.

12 Section 1 of the Mining Right of Way Act, R.S.B.C. 1996, c. 294, is amended by repealing the definition of "mediation and arbitration board" and substituting the following:

"surface rights board" means the Surface Rights Board under the Petroleum and Natural Gas Act; .

SECTION 13: [Mining Right of Way Act, sections 6 and 10] is consequential to the continuation by this Bill of the Mediation and Arbitration Board as the Surface Rights Board.

13 Sections 6 (4) and 10 (4) are amended by striking out "mediation and arbitration board" and substituting "surface rights board".

SECTION 14: [Motor Vehicle Act, section 1] is consequential to the repeal of Part 3 and the addition of Part 16 of the Act by this Bill.

14 Section 1 of the Motor Vehicle Act, R.S.B.C. 1996, c. 318, is amended in the definition of "industrial road" by striking out "section 8 (1)" and substituting "section 139 (1)".

SECTION 15: [Oil and Gas Activities Act, section 1] adds definitions of "environmental measure", "facility" and "government's environmental objectives" and amends the definitions of "flow line", "land owner", "oil and gas activity", "pipeline" and "specified provision".

15 Section 1 of the Oil and Gas Activities Act, S.B.C. 2008, c. 36, is amended

(a) in subsection (1) by adding ", other than Part 17 of that Act" after "Petroleum and Natural Gas Act",

(b) in subsection (2) in the definition of "authorization" by striking out "section 104 and Part 10" and substituting "sections 34, 39 (1) and 104 and Part 10",

"environmental measure" means an action a person must take or refrain from taking for the protection or effective management of the environment;

"facility" means a system of vessels, piping, valves, tanks and other equipment that is used to gather, process, measure, store or dispose of petroleum, natural gas, water or a substance referred to in paragraph (d) or (e) of the definition of "pipeline";

"government's environmental objectives" means the prescribed objectives of the government respecting the protection and effective management of the environment; ,

(d) in subsection (2) by repealing the definition of "flow line" and substituting the following:

"flow line" means a pipeline that connects a well head with a scrubbing, processing or storage facility and that precedes the transfer of the conveyed substance to or from a transmission, distribution or transportation line; ,

(e) in subsection (2) in the definition of "land owner" by striking out "section 6 (3)" and substituting "paragraph (b) of the definition of "unoccupied Crown land" in section 1",

(f) in subsection (2) by repealing the definition of "oil and gas activity" and substituting the following:

(g) in subsection (2) by repealing the definition of "pipeline" and substituting the following:

"pipeline" means, except in section 9, piping through which any of the following is conveyed:

(b) water produced in relation to the production of petroleum or natural gas or conveyed to or from a facility for disposal into a pool or storage reservoir;

(d) substances prescribed under section 133 (2) (v) of the Petroleum and Natural Gas Act;

and includes installations and facilities associated with the piping, but does not include

(f) piping used to transmit natural gas at less than 700 kPa to consumers by a gas utility as defined in the Gas Utility Act,

(h) in subsection (2) in the definition of "specified provision" by repealing paragraph (b) and substituting the following:

(b) section 47.4 [licence to cut for persons occupying land or for oil and gas purposes] of the Forest Act, but only in relation to a master licence to cut, and section 117 [road use permits for industrial use] of that Act; .

SECTION 16: [Oil and Gas Activities Act, section 22] clarifies that regulations may be made requiring applicants for a permit to both carry out consultations and provide notifications.

16 Section 22 (3) is amended by striking out "or provide the prescribed notices," and substituting "or provide the prescribed notices, or both,".

SECTION 17: [Oil and Gas Activities Act, section 23] replaces an undefined term with a term defined in section 1 of the Act.

(a) in subparagraph (i) by striking out "owner of the land" and substituting "land owner or the Crown", and

(b) in subparagraph (ii) by striking out "owner of the land, other than Crown land," and substituting "land owner".

SECTION 18: [Oil and Gas Activities Act, section 24] removes a redundant reference to fees.

18 Section 24 (1) (f) is amended by striking out "the prescribed fees and".

SECTION 19: [Oil and Gas Activities Act, section 25] requires the commission, in issuing permits under the Act, to consider the government's environmental objectives and to comply with directions issued under the section.

(1) Subject to subsection (1.1), on application by a person under section 24 and after considering

(b) the government's environmental objectives, if any have been prescribed for the purposes of this section,

the commission may issue a permit to the person if the person meets the requirements prescribed for the purposes of this section.

(1.1) The Lieutenant Governor in Council, by regulation, may issue a direction to the commission with respect to the exercise of the commission's power under subsection (1), and the commission must comply with the direction despite any other provision of this Act, the regulations or an order made under this Act.

SECTION 20: [Oil and Gas Activities Act, section 28] removes reference to the Community Charter, the Local Government Act and the Transportation Act.

20 Section 28 (1) is amended by repealing the definition of "applicable Act" and substituting the following:

"applicable Act" means the Forest Act, the Forest and Range Practices Act, the Railway Act and the Railway Safety Act; .

SECTION 21: [Oil and Gas Activities Act, section 29] removes a redundant reference to fees.

21 Section 29 (1) is amended by striking out "and submission of the prescribed fee, if any".

SECTION 22: [Oil and Gas Activities Act, section 31] removes redundant references to fees, clarifies that separate regulations respecting consultations and notification may be made for applicants under the section and provides a rule to determine when an amendment comes into effect.

(b) in subsection (5) by striking out "and fee" and "as though the permit holder were a prescribed applicant as defined in section 22",

(8) An amendment made under subsection (7) is effective on and after the day it is made, unless the amendment changes the effect of the permit on the land of the land owner referred to in subsection (1), in which case the amendment is effective on and after the earlier of the following:

(b) the day the permit holder obtains written consent from the land owner to treat the amendment as being in effect on and after the date the consent is given.

SECTION 23: [Oil and Gas Activities Act, section 32] removes a redundant reference to fees and clarifies that separate regulations respecting consultations and notification may be made for applicants under this section.

(2) A permit holder, before the expiry of the permit holder's permit under subsection (1), may apply to the commission for an extension of the prescribed period with respect to the permit holder's permit and authorizations by submitting to the commission the information, application form and records required by the commission. , and

(b) in subsection (3) by striking out "and fee" and "as though the permit holder were a prescribed applicant as defined in section 22".

SECTION 24: [Oil and Gas Activities Act, section 34] clarifies the obligations of permit holders intending to carry out an oil and gas activity on or under an area of land and authorizes certain permit holders to expropriate land in order to construct and operate a pipeline other than a flow line.

Required ownership, interest or authorization

(b) that authorizes the specified permit holder to enter, occupy or use the land owner's area of land for the purposes of constructing and operating a pipeline other than a flow line;

"specified permit holder" means a pipeline permit holder who holds a permit respecting a pipeline other than a flow line.

(2) Subject to sections 23 and 39 and subsection (3) of this section, a permit holder must not begin or carry out an oil and gas activity on or under an area of land unless the permit holder,

(a) if the area of land is not a highway, either is the owner in fee simple of the area of land or has acquired the area of land or the necessary interests in the area of land in accordance with

(b) if the area of land is a highway, has obtained an authorization required under an enactment to enter, occupy or use the area of land.

(3) Subject to subsection (4), if a specified permit holder has failed to obtain an entry agreement, the specified permit holder may expropriate, in accordance with the Expropriation Act, as much of the land or interests in it of any person as may be necessary for constructing and operating the pipeline authorized by the permit.

(4) The land that may be expropriated under subsection (3) must not exceed 18 m in breadth.

(5) On application by a specified permit holder, the commission may authorize, on any conditions the commission considers appropriate, an expropriation, in accordance with the Expropriation Act, that exceeds the breadth specified in subsection (4).

SECTION 25: [Oil and Gas Activities Act, section 36] replaces an undefined term with a term defined in section 1 of the Act.

(a) in subsection (1) by striking out "measures" and substituting "environmental measures" and by striking out "for the protection and effective management of the environment", and

(b) in subsection (2) by adding "or a person carrying out an oil and gas activity" after "permit holder".

SECTION 26: [Oil and Gas Activities Act, section 38] clarifies the records, reports and plans that must be prepared, maintained and submitted to the commission by permit holders.

Records, reports and plans

(b) prepare and maintain an emergency response program and a response contingency plan satisfactory to the commission or as prescribed by regulation, if any;

(d) at the request of the commission, produce the records, reports and plans referred to in paragraph (a), (b) or (c) for inspection and copying;

(e) at the request of the commission or as prescribed by regulation, submit to the commission, in the form and manner the commission requires, the records, reports and plans referred to in paragraph (a), (b) or (c).

(2) The commission must disclose records, reports and plans to the public in accordance with the regulations.

SECTION 27: [Oil and Gas Activities Act, section 39] is consequential to the amendments made to section 34 of the Act by this Bill.

27 Section 39 (1) is amended by adding "or authorization" after "interests in land".

SECTION 28: [Oil and Gas Activities Act, section 41] clarifies that a fee may or may not be prescribed for the purposes of this section.

may apply to the commission for a certificate of restoration by submitting, in the form and manner the commission requires, the information and other records required by the commission.

SECTION 29: [Oil and Gas Activities Act, section 44] repeals and replaces the definition of "surface lease" for the purposes of Part 4 of the Act.

29 Section 44 is amended by repealing the definition of "surface lease" and substituting the following:

(a) a surface lease as defined in section 141 of the Petroleum and Natural Gas Act, and

(b) an order of the Surface Rights Board under the Petroleum and Natural Gas Act.

SECTION 30: [Oil and Gas Activities Act, section 45] authorizes the commission to designate certain areas as orphan sites under the Act.

(i) the operator with respect to the well, facility or pipeline is insolvent, or

(ii) the commission has not been able to identify the operator of the well, facility or pipeline, or

(b) an area, if the commission is satisfied that the area requires restoration as a direct or indirect result of the carrying out of an oil and gas activity by a person the commission has not been able to identify or by a person who is insolvent.

SECTION 31: [Oil and Gas Activities Act, section 49] clarifies who has the obligation to serve copies of certain orders made under section 49 of the Act.

(a) in subsection (3) by adding "and" at the end of paragraph (f), by striking out ", and" at the end of paragraph (g) and by repealing paragraph (h), and

(3.1) If an order under subsection (1) is addressed to an employee, agent or contractor of a permit holder, the official who served the order must serve a copy of the order on the permit holder.

SECTION 32: [Oil and Gas Activities Act, section 49.1] authorizes the commission to make orders of a technical nature relating to specific locations.

Technical orders

49.1 (1) The commission may, by order related to a specific location, well or area, do any or all of the following:

(b) designate a pool by describing the surface area vertically above the pool and by naming the geological formation and the zone in which the pool occurs;

(2) After an order is made under subsection (1), the commission must publish notice of the order as prescribed.

(3) An order under subsection (1) (c) may specify a requirement that is different from a requirement in a provision of a regulation under this Act, if the regulation expressly states that the provision is subject to this section.

(4) Subject to subsection (3), if a regulation is made concerning a matter with respect to which an order has been made under subsection (1) (c), the order, if it has not been rescinded, is no longer valid to the extent of any inconsistency between the order and the regulation.

SECTION 33: [Oil and Gas Activities Act, section 57] requires certain persons to provide officials entering land under the Act with the means and assistance necessary for the purposes of the entry.

(2.1) A person must admit onto land or premises referred to in subsection (2) an official entering the land or premises under that subsection, and must provide the official with the means and assistance necessary for the purpose of the entry.

SECTION 34: [Oil and Gas Activities Act, section 72] adds a missing cross-reference.

34 Section 72 (2) (b) is amended by adding "or 31 (6)" after "section 24 (1) (c)".

SECTION 35: [Oil and Gas Activities Act, section 75] replaces a reference to the commission with a reference to the board.

35 Section 75 (4) is amended by striking out "commission" and substituting "board".

SECTION 36: [Oil and Gas Activities Act, section 76] establishes that orders or approvals made under section 76 of the Act prevail over regulations made respecting the section to the extent of any inconsistency between the two.

(7) If there is an inconsistency between an order or an approval made under subsection (6) and a regulation made under section 99 (m), the order or approval prevails to the extent of the inconsistency.

SECTION 37: [Oil and Gas Activities Act, section 94] provides that a delegation under section 94 of the Act can be made with or without directions, and that criteria may be prescribed respecting the exercise of a discretionary or delegated power conferred by a regulation under Division 1 of Part 9 of the Act.

(a) in subsection (2) (a) by adding ", with or without directions on how the delegated power is to be exercised" after "person", and

(2.1) The Lieutenant Governor in Council may make regulations establishing criteria that a person must use when exercising a discretionary or delegated power conferred on the person by a regulation under this Division.

SECTION 38: [Oil and Gas Activities Act, section 95] provides regulation-making authority respecting directions under section 25 (1.1) of the Act.

38 Section 95 is amended by renumbering the section as section 95 (1) and by adding the following subsection:

(2) The Lieutenant Governor in Council may make regulations for the purposes of section 25 (1.1).

SECTION 39: [Oil and Gas Activities Act, section 99] provides regulation-making authority respecting the definition of "pipeline" in section 1, surveying and information for the purposes of section 77 of the Act.

(b) prescribing substances for the purpose of paragraph (e) of the definition of "pipeline" in section 1 (2) and prescribing exclusions for the purposes of paragraph (h) of that definition; , and

(o) respecting surveying to be carried out with respect to an oil and gas activity;

SECTION 40: [Oil and Gas Activities Act, section 103] expands the list of subjects about which environmental measures may be taken and provides regulation-making authority respecting the government's environmental objectives.

(a) in subsection (2) by repealing paragraph (u) and substituting the following:

(x) fisheries sensitive watersheds, as established under section 104 (1) (a) (iv). , and

(4) The Lieutenant Governor in Council may make regulations prescribing objectives for the purposes of the definition of "government's environmental objectives" in section 1.

SECTION 41: [Oil and Gas Activities Act, section 104] authorizes the imposition of conditions on exemptions granted under the section and authorizes regulations respecting the consultations and notification required before a minister exercises a delegated power conferred by a regulation under the section.

(a) in subsection (1) (b), (2) (c) and (5) (b) by striking out "a measure" and substituting "an environmental measure",

(b) to establish, for the purposes of section 36 (1), an environmental measure in relation to paragraph (a) of this subsection, ,

(c) in subsection (3) by adding "and" at the end of paragraph (c) and by adding the following paragraph:

(d) in subsection (5) (b) by adding "and to impose one or more conditions with respect to the exemption" after "by that minister",

(e) in subsection (5) (c) by adding "with or without directions on how the delegated power is to be exercised" after "this section", and

(d) prescribing the consultations or notifications, or both, that a minister referred to in subsections (1) to (4), or a person authorized by the minister, must carry out before exercising a power conferred on the minister by a regulation made under this section;

(e) prescribing a date on which, or a period of time at the expiry of which, an order made by a minister referred to in subsection (1) to (4) in the exercise of a power conferred on the minister by a regulation made under this section comes into force.

SECTION 42: [Oil and Gas Activities Act, section 105] is consequential to the definition of "environmental measures" added to the Act by this Bill.

(1) In making a regulation under section 103, the Lieutenant Governor in Council may provide an exception to the application of the regulation, including an exception relating to the application of an environmental measure. , and

(b) in subsection (2) (a) (ii) by striking out "a measure" and substituting "an environmental measure".

SECTION 43: [Oil and Gas Activities Act, section 106] authorizes the board, in making a regulation under Part 10 of the Act, to delegate a matter, confer a discretion and make different regulations for different persons, places, things, decisions, transactions or activities.

Board regulations generally

106 (1) In making a regulation under this Division, the board may do one or more of the following:

(a) delegate a matter to a person, with or without directions on how the delegated power is to be exercised;

(d) make the regulation subject to orders issued under section 49, on any conditions the board considers appropriate.

(2) The board may make regulations establishing criteria that a person must use when exercising a discretionary or delegated power conferred on the person by a regulation under this Division.

(3) In making a regulation under section 111 or 112 (1) (a), (b), (d), (d.1) or (d.2), the board may authorize an official to exempt a person from a provision of the regulation and to impose one or more conditions with respect to the exemption.

SECTION 44: [Oil and Gas Activities Act, section 107] authorizes the board to make regulations respecting notification for the purposes of section 23 (3) of the Act.

44 Section 107 (1) is amended by adding "and notification for the purposes of section 23 (3)" after "32 (3)".

SECTION 45: [Oil and Gas Activities Act, section 110] authorizes the board to make regulations requiring permit holders, rather than just producers, to pay a levy to the government.

Recovery of expenses

110 The board, for the purposes of recovering expenses arising out of the administration of this Act in a fiscal year, may make regulations as follows:

(i) requiring permit holders or a class of permit holders to pay a levy to the government, and

(ii) establishing the amount, or the method of determining the amount, of the levy;

(b) providing for the imposition of penalties, payable to the government, to enforce payment of the levy.

SECTION 46: [Oil and Gas Activities Act, section 111] amends the board's regulation-making authority, consequential to amendments made to the Act by this Bill.

(a) in subsection (1) by striking out "board may make regulations as follows" and substituting "board may make regulations respecting the carrying out of an oil and gas activity, including, without limiting this, regulations as follows",

(a.1) respecting actions a permit holder and a person carrying out an oil and gas activity must carry out or refrain from carrying out on completion of or while completing an oil and gas activity; ,

(c) in subsection (1) (e) and (h) by striking out "maintenance and operation" and substituting "operation and abandonment",

(d) in subsection (1) (f) by striking out "or use" and substituting ", use and abandonment",

(h.1) respecting the construction, operation and abandonment of a facility used for the purposes of producing, gathering, processing or storing petroleum, natural gas, water or a substance referred to in paragraph (d) or (e) of the definition of "pipeline" in section 1; ,

(g) in subsection (1) (k) by striking out "described in paragraph (i) or (j)" and substituting "designated under section 49.1",

(p) respecting the maintenance of a pipeline, facility, well, road prescribed under subsection (2) or other structure, equipment or thing. , and

(i) in subsection (2) (b) by striking out "maintenance and operation" and substituting "operation and deactivation".

SECTION 47: [Oil and Gas Activities Act, section 112] clarifies the board's power to adopt by reference a regulation, code, standard or rule of other bodies and makes other amendments consequential to amendments made to section 38 of the Act by this Bill.

(a) adopting by reference, in whole or in part and with any changes the board considers necessary, any regulation, code, standard or rule

(i) enacted as or under a law of another jurisdiction, including a foreign jurisdiction, or

(ii) set by a provincial, national or international body or any other code, standard or rule making body,

as the regulation, code, standard or rule stands at a specific date, as it stands at the time of adoption or as amended from time to time; ,

(b) in paragraph (c) by striking out "required to be paid under this Act;" and substituting "for the provision under this Act of a service by the commission to any person;",

(d) prescribing records, reports and plans for the purposes of section 38 and respecting the maintenance and submission of those records, reports, and plans;

(d.1) respecting emergency response programs and response contingency plans for the purposes of section 38 (1) (b), including, without limiting this, regulations requiring the programs or plans to include requirements with respect to the training of persons who will carry out the programs or prepare the plans and consultations that must be carried out with respect to the programs or plans;

(d.2) respecting well samples and cores, including, without limiting this, regulations respecting the examination, storage, maintenance and submission to the commission of well samples and cores; ,

(i.1) prescribing the content and manner of publication of a notice referred to in section 49.1 (2); , and

SECTION 48: [Oil and Gas Activities Act, sections 124, 154 to 159 and 171] repeals sections of the Act, consequential to amendments to the Expropriation Act and Petroleum and Natural Gas Act made by this Bill.

SECTION 49: [Petroleum and Natural Gas Act, section 1]

changes the definition of "board" from the Mediation and Arbitration Board to the Surface Rights Board;
replaces the definition of "pipeline", consequential to the enactment of the Oil and Gas Activities Act.
repeals the definitions of "occupant" and "surface lease";
provides that the definition of "owner" does not apply for the purposes of Part 17;
provides definitions of "restricted land" and "unoccupied Crown land".

49 Section 1 of the Petroleum and Natural Gas Act, R.S.B.C. 1996, c. 361, is amended

(a) by repealing the definitions of "board" and "pipeline" and substituting the following:

"pipeline" has the same meaning as in section 1 (2) of the Oil and Gas Activities Act; .

(c) in the definition of "owner" by striking out "means" and substituting "means, except in Part 17,", and

(b) land granted by the government to a railway company under an Act that is used or occupied by or on behalf of the railway company;

(a) in respect of which there has been no disposition of an interest in the surface of the land under the Land Act, or

(iv) occupation and use of an extensive area of Crown land for commercial recreational purposes; .

SECTION 50: [Petroleum and Natural Gas Act, Part 3] is self-explanatory.

SECTION 51: [Petroleum and Natural Gas Act, section 54] is consequential to similar language in section 181 of the Act added by this Bill.

51 Section 54 is amended by striking out "The Lieutenant Governor in Council may make regulations" and substituting "Without limiting section 133, the Lieutenant Governor in Council may make regulations".

SECTION 52: [Petroleum and Natural Gas Act, section 67] clarifies that, in the applicable circumstances, production may not be taken from an other than normal spacing area.

No production unless other than normal spacing
areas pooled with adjoining areas

67 Production from a natural gas well within a spacing area that is not a normal spacing area may not be taken until the spacing area of the well is pooled with adjacent areas to form a normal spacing area or a spacing area prescribed or ordered under section 65.1.

SECTION 53: [Petroleum and Natural Gas Act, section 129] is consequential to the repeal of Part 3 and the addition of Part 17 of the Act by this Bill.

(b) in subsection (1) by striking out "under section 16 (1) (c) for compensation" and substituting "to the board for arbitration in respect of compensation", and

SECTION 54: [Petroleum and Natural Gas Act, section 132] is consequential to similar language in section 181 of the Act added by this Bill.

54 Section 132 is amended by striking out "The Lieutenant Governor in Council" and substituting "Without limiting section 133, the Lieutenant Governor in Council".

SECTION 55: [Petroleum and Natural Gas Act, section 133] amends subsection (2) by

changing a cross-reference and adding paragraph (u.1), consequential to the repeal of Part 3 and the addition of Part 16 of the Act by this Bill, and
adding paragraph (w), authorizing the Lieutenant Governor in Council to prescribe areas of the land surface or subsurface for the purposes of the definition of "spacing area" in section 1 of the Act.

(a) in paragraph (u) (i) by striking out "section 8" and substituting "section 139", and

(u.1) make regulations prescribing, for development roads, annual rentals referred to in section 139 (3);

(w) prescribing areas of the land surface or subsurface for the purposes of the definition of "spacing area" in section 1.

SECTION 56: [Petroleum and Natural Gas Act, Parts 16 and 17]

adds Part 16, providing for entry on restricted land or unoccupied Crown land;
adds Part 17,

providing for entry on private land,
continuing the Mediation and Arbitration Board as the Surface Rights Board,
expanding the authority of the board to deal with issues relating to access to the surface of land for the purpose of carrying out specified activities under the Oil and Gas Activities Act,
applying additional provisions of the Administrative Tribunals Act, and disapplying section 47 of that Act consequential to the addition of Division 7 of Part 17 of the Act by this Bill, and
clarifying and modernizing the provisions of the former Part 3 of the Act.

Entry on unoccupied Crown land

and on submission by the person of plans or other information required by the commission, the commission, subject to any terms or conditions the commission considers appropriate, may authorize the person to enter, occupy or use unoccupied Crown land

(2) The Lieutenant Governor in Council may make regulations respecting the criteria the commission must use in exercising its discretion under subsection (1).

Development roads

139 (1) The commission, subject to any terms or conditions the commission considers appropriate, may designate portions of unoccupied Crown land, whether or not they are in a location, to be a development road for the purposes of exploring for, developing or producing petroleum or natural gas or exploring for, developing or using a storage reservoir.

(3) An application must be accompanied by the application fee, prepayment of the prescribed annual rental, if any, and further information required by the commission.

(4) A person may not construct or use a development road except in accordance with the regulations and the terms that apply to it.

(5) Despite section 73 of the Assessment Act, a development road designated under subsection (1) must not, under another Act, be assessed or taxed as an improvement or as land or property.

Entry on restricted land

140 (1) Unless authorized under subsections (2) to (4), a person may not enter, occupy or use restricted land

(2) For the purposes of subsection (1), a person is authorized to enter, occupy or use land described in paragraph (a) of the definition of "restricted land" in section 1, if the person has been authorized for that entry, occupation or use by the minister responsible for the administration of the Act under which the land is administered.

(3) For the purposes of subsection (1), a person is authorized to enter, occupy or use land described in paragraph (b) of the definition of "restricted land" in section 1, if the person has entered into an agreement with the railway company, authorizing the entry, occupation or use of the land.

(4) For the purposes of subsection (1), a person is authorized to enter, occupy or use land described in paragraph (c) of the definition of "restricted land" in section 1, if the person has been authorized for that entry, occupation or use by the minister responsible for the administration of the Act that restricts or prohibits access to the land.

Interpretation for Part

"land" means the surface of land other than restricted land or unoccupied Crown land;

"landowner" means the owner of land that is subject to a right of entry or a proposed right of entry;

"occupant" means a person who is entitled to possess or occupy land under an agreement, other than a surface lease, with an owner of land;

(a) a person registered in the land title office as the registered owner of the land or as its purchaser under an agreement for sale;

(b) a person to whom a disposition of the land has been issued under the Land Act,

"rental provision" means a provision of a surface lease or order of the board dealing with rent or compensation payable by a right holder to a landowner;

"right of entry" means an authorization under section 142 (d) or (e) to enter, occupy or use land for a purpose described in section 142 (a) to (c);

"surface lease" means a lease, easement, right of way or other agreement authorizing the entry, occupation or use of land for a purpose described in section 142 (a) to (c).

(a) an order of a designated mediator referred to in section 152 (3) is an order of the board, and

(b) a mediation meeting with a designated mediator referred to in section 152 (3) is a board proceeding.

Authority to enter, occupy or use land

142 Subject to section 39 of the Oil and Gas Activities Act, a person may not enter, occupy or use land

(d) a surface lease with the landowner in the form prescribed, if any, or containing the prescribed content, if any, or

Rent and compensation

"orphan site" has the same meaning as in section 44 of the Oil and Gas Activities Act;

(a) if the right of entry has not been exercised, the date of termination of the right of entry under section 167 (3) (c) or section 176 (1) (c),

(b) if the right of entry relates to an orphan site, the date determined by the commission under section 45 (5) (c) of the Oil and Gas Activities Act, and

(c) in all other cases, the date on which the commission has issued, under the Oil and Gas Activities Act, a certificate of restoration for the land.

(a) to pay compensation to the landowner for loss or damage caused by the right of entry, and

(b) except where the right of entry relates to a right of way for a flow line, to pay rent to the landowner for the duration of the right of entry.

(3) If the term of a surface lease or order of the board granting a right of entry ends before the termination date, the rental provisions of the surface lease or order continue to apply until the termination date unless the landowner and the right holder otherwise agree or the board otherwise orders under this Part.

(4) Subsection (3) applies despite the terms of the surface lease or order granting the right of entry, whether made before or after the coming into force of this section, and subsection (3) and this subsection are retroactive to the extent necessary to give effect to their provisions.

Authority to enter, occupy or use land
for geophysical exploration

144 A person may not enter, occupy or use land to carry out geophysical exploration unless the person has entered into an agreement with the owner of the land authorizing the entry, occupation or use.

Exclusion from application of Part

145 (1) This Part, except section 144, does not apply to the entry, occupation or use of land relating to geophysical exploration.

(2) This Part does not apply to the entry, occupation or use of land relating to a pipeline, other than a flow line.

Surface Rights Board

146 (1) The Mediation and Arbitration Board is continued as the Surface Rights Board consisting of up to 9 individuals appointed as follows by the Lieutenant Governor in Council after a merit based process:

(b) one member designated, after consultation with the chair, as the vice chair;

(2) An order, authorization, decision or rule made under Part 3, before its repeal, by

that was in effect immediately before the coming into force of this section is deemed to be an order, authorization, decision or rule of the Surface Rights Board.

(3) A reference to the Mediation and Arbitration Board in any record, including, without limitation, any surface lease, lease, licence, permit, authorization or other contract, instrument, document or certificate is deemed to be a reference to the Surface Rights Board.

Jurisdiction of board

(a) an application under Division 5 by a person who requires a right of entry or by a landowner;

(d) any other matter in respect of which the board has jurisdiction under this or another Act.

Application of the Administrative Tribunals Act

148 Sections 1 to 11, 13 to 15, 17 to 21, 26, 27, 28 (1), 29 to 33, 34 (3) and (4), 35 to 42, 44, 46.3, 48 to 52, 53 (1) to (3) and (5), 55 to 57, 59, 60 (a) to (c) and 61 of the Administrative Tribunals Act apply to the board.

Powers of board

(2) A member of the board, or an employee of the board authorized by the chair, may, in the performance of the duties of the member or employee, enter and inspect land and improvements, other than a residence, or equipment located on land.

Form and service of application

150 (1) Subject to the rules of the board, an application to the board must be made in the form the board requires and must be accompanied by

(a) proof that a copy of the application has been served in accordance with the rules of the board on

(ii) any other person who, in accordance with the rules of the board under subsection (2), must be served with a copy of the application, and

(iii) any other person that the board determines should be a party to the application, and

(b) if Crown land is likely to be directly affected by an order, an affidavit verifying service of the application by registered mail on the commission and the minister responsible for the administration of the Land Act.

(2) The board may make rules identifying persons or classes of persons who must be served with a copy of an application.

Completion of application and scheduling proceedings

151 (1) If it appears to the board that an application does not contain sufficient information to permit the application to be heard and considered, or that the applicant has not served every person the applicant is required to serve, the application is not complete until the applicant provides the board with the information or submits an affidavit verifying service of the application on every person the applicant is required to serve, as applicable.

(2) Subject to subsection (3), on receipt of a complete application under this Part, the board must schedule proceedings of the board in accordance with its rules.

(3) The board, on its own motion or on application, may make an order staying proceedings of the board if the board determines an approval of the commission is required before the proceedings of the board begin or continue.

Mediation and arbitration

152 (1) Subject to subsection (2), the parties to an application to the board must participate in mediation under this section unless

(2) The parties to an application under section 129 are not required to participate in mediation.

(3) On receipt by the board of an application under this Part, a member of the board designated by the chair of the board must act as the mediator for the purpose of assisting the parties to resolve the application in accordance with the rules of the board.

(5) If, after any mediation meeting, an application is not withdrawn or resolved, the mediator may, by order,

(b) if the mediator believes that the application cannot be resolved by mediation, refer the application to the board for arbitration.

(6) A mediator may not make orders in respect of an application other than those provided for in subsections (4) and (5) of this section and in sections 153, 159 and 160.

(7) An application must be arbitrated by the board if the application has not been withdrawn and

(a) mediation is not required in respect of the application under subsection (1) or (2), or

(b) the application has been referred by a mediator to the board for arbitration.

(8) A person who acts as a mediator cannot participate in arbitration by the board with respect to the same application unless all the parties to the application consent.

(9) A position taken by a party in mediation under this section is without prejudice to the position that the party may take in any other proceeding before the board.

(10) The board, on its own motion or on application, may at any time refer the parties back to mediation or to another dispute resolution process.

Consent orders

153 On the request of the parties to an application under this Part, the board or a designated mediator referred to in section 152 (3) may make a consent order resolving an application.

Considerations in determining amount

154 (1) In determining an amount to be paid periodically or otherwise on an application under this Part, the board may consider, without limitation, the following:

(g) the effect, if any, of one or more other rights of entry with respect to the land;

(i) the terms of any surface lease or agreement submitted to the board or to which the board has access;

(2) In determining an amount to be paid on an application under section 166, the board must consider any change in the value of money and of land since the date the surface lease or order was originally or last granted.

Reconsideration by board

155 (1) The board, on its own motion or on application, may reconsider an order of the board, and may confirm, vary or rescind the order.

(b) respecting practice and procedure relating to the exercise of the authority of the board under subsection (1).

Waiver of service requirements

156 The board, on application, may order that the requirements for service of a document on a person under this Part are deemed to have been met if

(a) the board is satisfied that the applicant has reasonably attempted to serve the person in accordance with the rules of the board but has been unable to serve the person, and

(b) the applicant has sent a copy of the document by registered mail to the last known address, if any, of the person.

Interpretation for Division

157 In this Division, "right of entry order" means an order under section 159 (1).

Application for mediation and arbitration

158 A person who requires a right of entry or the landowner may apply to the board for mediation and arbitration if the person and the landowner are unable to agree on the terms of a surface lease.

Right of entry order

159 (1) If an application is made under section 158, the board or a designated mediator referred to in section 152 (3) may make an order authorizing a right of entry, subject to the terms and conditions specified in the order, if the board or the mediator, as applicable, is satisfied that an order authorizing the right of entry is required for a purpose described in section 142 (a) to (c).

(2) A mediator who has made an order under subsection (1) may continue mediation in order to assist in resolving any issues between the parties to the mediation.

(3) A right of entry order may be conditional on the person who is seeking the right of entry receiving approval from the commission to undertake an activity for a purpose described in section 142 (a) to (c).

(4) A right of entry order made by a mediator must, as a condition of the order, require the person who is seeking the right of entry to pay to the landowner, on account of rent, if any, or compensation that may be ordered under section 162 (1) (a), an amount of money ordered by the mediator.

(5) If a right of entry order is granted, the right holder must serve a certified copy of the order on the landowner, the occupant, if any, and the commission in accordance with the rules of the board.

(6) If a right of entry order is granted on application by the person seeking the right of entry, the right holder must not exercise the right of entry until

(a) the right holder has served a certified copy of the order on the landowner under subsection (5), or

(b) the board has made an order under section 156 that the requirements for service of the order on the landowner are deemed to have been met.

Security deposit

160 (1) A right of entry order may, as a condition of the order, require the person who is seeking the right of entry to deposit with the board security in the amount, form and manner that the mediator or the board considers necessary for the purpose of ensuring that the landowner will be paid any amount that is subsequently ordered by the board to be paid by the person to the landowner.

(2) In determining the amount, form and manner of security to be deposited under subsection (1), the mediator or the board must consider any practice directive issued by the board with respect to security deposits.

(3) Subject to subsection (4), the board, on application, may determine the disposition of security, or any part of it, as between the person who deposited the security and the current landowner.

(4) If the board is satisfied that a person who deposited security with the board subsequently transferred, in accordance with this Act or the Oil and Gas Activities Act, the right to explore, develop or produce petroleum or natural gas in the land to which the security deposit relates, the board, on application, may determine the disposition of the security, or any part of it, as between the person to whom the right was transferred and the current landowner.

Order when landowner does not participate

161 (1) If a landowner does not attend the proceedings in respect of an application under section 158, the board, after hearing representation by or on behalf of the applicant and persons other than the landowner that are likely to be directly affected by an order, may make a right of entry order if

(a) a copy of the application has been served on the landowner in accordance with the rules of the board, or

(b) the board has made an order under section 156 that the requirements for service of the application on the landowner are deemed to have been met.

(2) A landowner whose land is subject to a right of entry order under subsection (1) of this section may apply to the board for an order under subsection 162 (1) (a).

Determination of money payable and security

162 (1) Unless the parties to an application otherwise agree, if the board or a mediator has made a right of entry order, the board, by order,

(a) must determine the amount of rent, if any, or compensation to be paid to the landowner, and

(b) may make a determination in relation to security deposited or any portion of it remaining on deposit under section 160, and may distribute the security or a portion of it in accordance with that determination.

(2) An amount determined under subsection (1) (a) may include, without limitation, compensation to the landowner relating to negotiation with the right holder before the application was made to the board.

(3) The board may order that interest is payable on an amount determined under subsection (1) (a).

(a) if the amount paid under section 159 (4) is less than or equal to the amount determined under section 162 (1) (a), the landowner is entitled to receive the difference, if any;

(b) if the amount paid under section 159 (4) exceeds the amount determined under section 162 (1) (a), the board, on application, may order the landowner to pay the excess to the right holder.

Application relating to loss or damage
caused by right of entry

163 (1) A person may apply to the board for mediation and arbitration if the person

(a) is a landowner or occupant of land that is subject to a right of entry, and the exercise of the right of entry causes damage to the land or other land of the owner or occupant or causes loss to the owner or occupant, or

(b) is the owner or occupant of land immediately adjacent to land that is subject to a right of entry, and the exercise of the right of entry causes damage to the adjacent land or causes loss to the owner or occupant.

(2) On application under subsection (1), the board may order the right holder to pay compensation to the landowner or owner or occupant for damage to the land of the landowner, owner or occupant or loss to the landowner, owner or occupant as a result of the exercise of the right of entry, including, without limitation, compensation relating to negotiation with the right holder before the application was made to the board.

(3) The board may order that interest is payable on an amount payable under subsection (2).

Board orders relating to surface leases

164 (1) A party to a surface lease may apply to the board for mediation and arbitration in respect of either or both of the following:

(a) a disagreement respecting the operation of or compliance with a term of the surface lease;

(b) a disagreement respecting whether the surface lease should be amended based on a claim by a party that the oil and gas activity or related activity as approved by the commission on the land that is subject to the surface lease is substantially different from the oil and gas activity or related activity that was proposed during the negotiation of the surface lease.

(2) On application under subsection (1) (a), the board may do any or all of the following:

(a) make an order confirming the right of entry under the surface lease, subject to the terms and conditions specified in the order, if any;

(b) if the board is satisfied that a party to the surface lease has failed to comply with an obligation under the surface lease, order that party to pay compensation to the other party for that failure;

(d) order that compensation awarded under paragraph (b) is payable by a party instead of the party complying with an obligation under the surface lease.

(3) On application under subsection (1) (b), or in making an order under subsection (2) (d), the board may make an order amending the terms of the surface lease from the effective date set out in the order.

Negotiation of amendment to surface lease or order

(a) the terms of a surface lease or order containing rental provisions made at any time before or after the coming into force of this section, or

(a) a right holder who holds a right of entry under a surface lease or order of the board, or

may serve notice on the other party, in the form and manner established by the rules of the board, requiring a negotiation of an amendment to the rental provisions in the surface lease or order.

(3) A notice under subsection (2) may not be served before the 4th anniversary of the later of the following:

(a) the effective date of the surface lease or order to which the notice relates;

(b) the effective date of the most recent amendment to the rental provisions in the surface lease or order agreed to by the parties or ordered by the board, if any.

(4) A person serving notice under subsection (2) must file a copy of the notice with the board in accordance with its rules.

(5) If persons giving and receiving a notice under subsection (2) agree to amend the rental provisions in a surface lease, the right holder must submit a copy of the agreement to the board under section 178 (2).

(6) If persons giving and receiving a notice under subsection (2) agree to an amendment of the rental provisions in an order, the right holder must submit a copy of the agreement to the board and the board may amend the order to reflect the agreement of the parties.

(7) An amendment of the rental provisions in a surface lease or order of the board under this section is effective from the anniversary of the effective date of the surface lease or order immediately preceding the notice under subsection (2) and is retroactive to the extent necessary to give effect to this subsection.

Parties do not agree to amendment of surface lease or order

166 (1) If persons giving and receiving a notice under section 165 (2) do not agree to an amendment of the rental provisions in the surface lease or order to which the notice relates within 60 days after receipt of the notice, either party may apply to the board to resolve the disagreement.

(2) An application under subsection (1) of this section may be accompanied by an application for mediation and arbitration under section 163 (1) (a).

(3) On application under subsection (1) of this section, the board may make an order varying the rental provisions in the surface lease or order.

(4) An order under subsection (3) of this section varying the rental provisions in the surface lease or order of the board is effective from the anniversary of the effective date of the surface lease or order immediately preceding the date of the notice under section 165 (2) and is retroactive to the extent necessary to give effect to this subsection.

Termination of surface lease or order

167 (1) A right holder who holds a right of entry under a surface lease or an order of the board may, on not less than 90 days' notice to the landowner, apply to the board for an order terminating the surface lease or order if at least 2 years have expired since the effective date of the surface lease or order.

(2) A landowner whose land is subject to a right of entry under a surface lease or an order of the board may, on not less than 90 days' notice to the right holder, apply to the board for an order terminating the surface lease or order if

(a) at least 2 years have expired since the effective date of the surface lease or order, and

(3) On application under subsection (1) or (2), the board must hear representation by or on behalf of the applicant and persons likely to be directly affected by an order resulting from the application, and may

(a) make an order dismissing the application with or without terms or conditions,

(b) if the right of entry has been exercised, make an order terminating the right of entry, subject to the terms or conditions specified in the order, including all of the following conditions:

(i) the right holder removing all equipment and facilities used in respect of the exercise of the right of entry;

(ii) the right holder restoring all land directly affected by the exercise of the right of entry;

(iii) the receipt by the right holder of a certificate of restoration by the commission in respect of the land that is subject to the right of entry, or

(c) if the right of entry has not been exercised, make an order terminating the right of entry with or without terms or conditions.

(4) An order under subsection (3) may include an award of money for any or all of the following amounts that have not been received at the time of the order:

(a) rent or compensation for the right of entry that is the subject of the application;

(5) An order under subsection (3) may include an order that interest is payable on an amount payable under subsection (4).

(6) The board may order that compensation awarded under subsection (4) is payable instead of rent or compensation provided for under a surface lease or an order of the board.

(7) A hearing is not required in respect of an application under subsection (1) or (2) if all persons likely to be directly affected agree to the termination of the surface lease or order.

(8) If any term or condition in an order under subsections (3) to (5) is not complied with, the board may order that additional money is payable as compensation for that non-compliance.

Interpretation for Division

(b) actual reasonable fees and disbursements of a professional agent or expert witness;

(d) an amount on account of the reasonable time spent by a party in preparing for and attending a board proceeding;

"landholder" means an owner of land or occupant who is a party to an application under this Part;

"operator" means a party to an application under this Part in relation to a right of entry who

Advance costs

169 (1) Subject to any regulations, the board may, on application, order the operator to pay to the landholder, as advance costs, all or part of the amount that the board anticipates will be the landholder's actual costs awarded by the board under section 170.

(2) If the board is satisfied that an operator has failed to comply with an order under subsection (1), the board may refuse to proceed with the application until the operator complies with the order.

Costs

170 (1) Subject to any regulations, the board may order a party to an application under this Part or an intervener to pay any or all of the following:

(a) all or part of the actual costs incurred by another party or intervener in connection with the application;

(b) part of the actual reasonable legal fees and disbursements and other reasonable costs and expenses incurred by the board in connection with the application, if the board considers the conduct of a party or intervener has been improper, vexatious, frivolous or abusive.

(2) If actual costs are awarded under this section to a landholder who has received an amount as advance costs under section 169, the following apply:

(a) if the amount received as advance costs exceeds the amount of actual costs awarded under this section,

(i) the operator may deduct the difference from any amounts of rent or compensation payable to the landholder in relation to the right of entry, and

(ii) if all rent and compensation, if any, has been paid, the board, on application, may order the landholder to pay the excess to the operator;

(b) if the amount received as advance costs is less than or equal to the amount of actual costs awarded under this section, the landholder is entitled to receive the difference, if any.

Registration of order

171 (1) If the board makes an order authorizing or terminating a right of entry with respect to land that is registered under the Land Title Act, the person whose right of entry is authorized or terminated by the order must file a certified copy of the order with the registrar of the appropriate land title district, who, on payment of the appropriate fees, must endorse the land title records accordingly.

(2) If a person fails to file a certified copy of an order in accordance with subsection (1), on application by the landowner, the board may file a certified copy of the order with the registrar of the appropriate land title district, who, on payment of the appropriate fees by the board, must endorse the land title records accordingly.

(3) If the board files a certified copy of an order under subsection (2), the board may order the person who failed to file the certified copy of the order under subsection (1) to pay to the government

(b) reasonable costs incurred by the board with respect to the filing of the certified copy of the order under subsection (2) and the preparation of an order under this subsection, and

Certified copy as evidence

172 A certified copy of an order of the board signed by the chair of the board, or by an employee of the board designated in writing by the chair, must be admitted as evidence of the order by the board.

Assignment of order

(a) by serving notice of the assignment on the other parties named in the order,

(c) if the land that is subject to the order is registered under the Land Title Act, by filing the assignment with the registrar of the appropriate land title district, who, on payment of the appropriate fees, must endorse the assignment against the indefeasible or absolute title of the land that is the subject of the assignment.

(2) An order of the board applies to the current owner or occupant, from time to time, of the land that is the subject of the order.

Enforcement of right of entry

174 (1) The following orders of the board may be enforced in the same manner as a writ of possession issued by a court:

(b) an order under section 164 (2) (a) confirming a right of entry under a surface lease.

(2) If a landowner whose land is subject to a right of entry under a surface lease or order of the board refuses to allow the right holder to exercise the right of entry, on application by the right holder, the board may make an order permitting the right holder to deduct from any amounts of rent or compensation payable under the surface lease or order, an amount covering the cost of and incidental to enforcing the right of entry, which amount is at the sole discretion of the board.

Enforcement of orders

175 A certified copy of an order of the board may be filed at any time with the Supreme Court or Provincial Court, and, if filed, the order has the same force and effect, and all proceedings may be taken on it, as if it were an order of the court.

Failure to pay

176 (1) If a right holder fails to pay rent or compensation owing under a surface lease or order of the board granting the right holder a right of entry, on application by the person entitled to receive the rent or compensation, the board, by order, may do any one or more of the following:

(b) determine the unpaid amount and order that interest is payable on that amount;

(d) if the right of entry is terminated under paragraph (c), determine the amount of rent, if any, or compensation owing by the right holder to the date of the termination and order that interest is payable on that amount.

(2) If the board suspends or terminates a right of entry, the board must, in accordance with the rules of the board, serve notice of the suspension or termination on the right holder, the owner of the land, the occupant, if any, and the commission.

(3) If a right of entry is suspended under subsection (1) (a) of this section, the obligations of the right holder under the surface lease or order to pay rent, if any, and compensation continue during the period of the suspension.

(4) A suspension of a right of entry under subsection (1) (a) terminates on the date set by the board.

(5) If the suspension of a right of entry is terminated under subsection (4), the board must, in accordance with the rules of the board, serve notice of the termination on the persons who received notice under subsection (2).

Compliance with orders

Submission of surface lease information

178 (1) A right holder who holds a right of entry under a surface lease must submit to the board, not more than 90 days after the date the right holder acquires the right of entry,

(2) A right holder described in subsection (1) must submit to the board a copy of any agreement amending a surface lease not more than 90 days after the date of execution of the amending agreement.

(3) A surface lease or amending agreement submitted to the board must be available for public inspection at the office of the board during its regular office hours.

(4) The board may publish prescribed information derived from a surface lease or agreement submitted to the board in a form and manner the board considers appropriate, including on the internet or by other electronic means.

Administrative penalty

179 (1) Subject to any regulations, if the board is satisfied that a right holder has failed to submit a surface lease or agreement as required under section 178 (1) or (2), the board, without prior notice, may impose an administrative penalty on the right holder in an amount that does not exceed the prescribed amount.

(2) If an administrative penalty is imposed on a right holder, the board must serve notice of the administrative penalty on the right holder in accordance with the rules of the board, and the notice must specify the amount of the penalty and the date by which the penalty must be paid.

(3) A right holder on whom an administrative penalty is imposed must pay the administrative penalty within 30 days after the date on which the notice referred to in subsection (2) is served on the right holder.

(4) An administrative penalty constitutes a debt payable to the government by the right holder on whom the penalty is imposed.

(5) If a right holder fails to pay an administrative penalty in accordance with subsection (3), the board may file with the Supreme Court or Provincial Court a certified copy of the notice imposing the administrative penalty, and, on being filed, the notice has the same force and effect, and all proceedings may be taken on the notice, as if it were a judgment of that court.

(6) The board must pay all amounts derived from administrative penalties into the consolidated revenue fund.

Suspension of right of entry under surface lease

180 (1) If the board is satisfied that a right holder has failed to submit a surface lease or agreement as required under section 178 (1) or (2), the board, without prior notice, may suspend the right of entry under the surface lease until the surface lease or amending agreement has been submitted to the board.

(2) If the board suspends a right of entry, the board must, in accordance with the rules of the board, serve notice of the suspension on the right holder, the landowner, the occupant, if any, and the commission.

(3) A suspension of a right of entry takes effect 30 days after the date on which the notice referred to in subsection (2) is served on the right holder.

(4) If a right of entry is suspended, the obligations of the right holder under the surface lease to pay rent, if any, and compensation continue during the period of the suspension.

(5) A suspension of a right of entry terminates on the date set by the board, which date must be not later than 30 days after the right holder submits the surface lease or amending agreement to the board.

(6) If a suspension of a right of entry is terminated under subsection (5), the board must, in accordance with the rules of the board, serve notice of the termination on the persons who received notice under subsection (2).

Regulations

181 Without limiting section 133, the Lieutenant Governor in Council may make regulations relating to the following:

(a) the form or content of a surface lease for the purpose of section 142 (d), including, without limitation, terms or conditions that must be contained in a surface lease;

(b) factors or criteria to be considered by the board in determining an amount for the purposes of section 154 (1) (l);

(e) prescribing information or classes of information that the board may publish under section 178 (4);

(f) the administrative penalty referred to in section 179, including the maximum amount of the penalty.

SECTION 57: [Petroleum and Natural Gas (Vancouver Island Railway Lands) Act, section 1] is consequential to the continuation by this Bill of the Mediation and Arbitration Board as the Surface Rights Board.

57 Section 1 of the Petroleum and Natural Gas (Vancouver Island Railway Lands) Act, R.S.B.C. 1996, c. 362, is amended in the definition of "board" by striking out "Mediation and Arbitration Board" and substituting "Surface Rights Board".

SECTION 58: [Petroleum and Natural Gas (Vancouver Island Railway Lands) Act, section 5] is consequential to the repeal of Part 3 and the addition of Part 17 of the Act by this Bill.

58 Section 5 (2) is amended by striking out "Part 3" and substituting "Part 17".

SECTION 59: [Public Sector Employers Act, Schedule] is consequential to the continuation by this Bill of the Mediation and Arbitration Board as the Surface Rights Board.

59 The Schedule to the Public Sector Employers Act, R.S.B.C. 1996, c. 384, is amended by striking out "Mediation and Arbitration Board (Petroleum and Natural Gas Act)" and substituting "Surface Rights Board (Petroleum and Natural Gas Act)".

Commencement

60 The provisions of this Act referred to in column 1 of the following table come into force as set out in column 2 of the table:

Explanatory Notes