The following electronic version is for informational purposes only.
The printed version remains the official version.
Certified correct as passed Third Reading on the 29th day of May, 2008
Ian D. Izard, Q.C., Law Clerk
HONOURABLE RICHARD NEUFELD
MINISTER OF ENERGY, MINES AND
PETROLEUM RESOURCES
HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:
1 (1) Words and expressions used but not defined in this Act or in the regulations for the purposes of this Act, unless the context otherwise requires, have the same meanings as in the Petroleum and Natural Gas Act.
(2) In this Act:
"appeal tribunal" means the Oil and Gas Appeal Tribunal established under section 19;
"authorization" means, except in section 104 and Part 10, an authorization under a specified enactment to carry out a related activity, and includes the conditions, if any, imposed on the authorization under this Act or the specified enactment;
"board" means the board of the commission continued under section 2;
"certificate of restoration" means a certificate issued by the commission under section 41;
"commission" means the Oil and Gas Commission continued under section 2;
"commissioner" means the commissioner appointed under section 2 (3);
"flow line" means a pipeline connecting a well with a facility or another pipeline;
"former permit holder" includes a person who was a director of a corporation that
(a) held a permit with respect to which there has been a cancellation, declaration or expiry referred to in section 40, and
(b) no longer exists or has amalgamated with another corporation;
"highway" has the same meaning as in the Transportation Act;
"land owner" means
(a) a person registered in the land title office as the registered owner of the land surface or as its purchaser under an agreement for sale, and
(b) a person to whom a disposition of Crown land has been issued under the Land Act,
but does not include the government or a person referred to in section 6 (3) of the Petroleum and Natural Gas Act;
"official", except in sections 6 and 8, means a person designated as an official under section 7 (4);
"oil and gas activity" means
(a) the search for petroleum, natural gas or both,
(b) the exploration for and development of petroleum, natural gas or both,
(c) geophysical exploration,
(d) the production, gathering, processing or storage of petroleum, natural gas or both,
(e) the operation or maintenance of a storage reservoir,
(f) the construction, maintenance or operation of a pipeline,
(g) the construction, maintenance or operation of a prescribed road, and
(h) the activities prescribed by regulation;
"permit" means a permit issued under section 25 and includes any conditions imposed on a permit;
"permit holder" means
(a) a person who holds a permit, and
(b) a person, if any, who is the holder of a location with respect to that permit;
"pipeline" means, except in section 9, piping through which any of the following is conveyed:
(a) petroleum or natural gas;
(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;
(c) solids;
(d) substances prescribed under section 133 (2) (v) of the Petroleum and Natural Gas Act,
and includes installations associated with the piping but does not include
(e) piping used to transmit natural gas at less than 700 kPa to consumers by a gas utility as defined in the Gas Utility Act,
(f) a well head, or
(g) anything else that is prescribed;
"pipeline permit" means a permit that includes a permission to construct, maintain or operate a pipeline;
"pipeline permit holder" means a permit holder of a pipeline permit;
"related activity" means an activity
(a) that, under a specified enactment, must not be carried out except as authorized under the specified enactment or that must be carried out in accordance with the specified enactment, and
(b) the carrying out of which is required for the carrying out of an oil and gas activity;
"specified enactment" means any of the following Acts:
(a) Environmental Management Act;
(b) Forest Act;
(c) Heritage Conservation Act;
(d) Land Act;
(e) Water Act;
"specified provision" means the following provisions:
(a) any of the following provisions of the Environmental Management Act:
(i) section 9 [hazardous waste storage and disposal];
(ii) section 14 [permits];
(iii) section 15 [approvals];
(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;
(c) section 12 [permit authorizing certain actions] of the Heritage Conservation Act;
(d) any of the following provisions of the Land Act:
(i) section 11, but only in relation to a lease or grant described in section 11 (2) (b) to (d) [disposing of Crown land];
(ii) section 14 [temporary occupation of Crown land];
(iii) section 38 [lease of Crown land], but not to the extent that it relates to the granting of an option to purchase land;
(iv) section 39 [licence of occupation];
(v) section 40 [right of way and easement];
(vi) section 96 (1) [occupational rental];
(e) any of the following provisions of the Water Act, but only in relation to an approval as defined in section 1 of the Water Act:
(i) section 8 [short term use of water];
(ii) section 9 (1) (a) [changes in and about a stream];
(iii) section 26 [permits over Crown land];
(f) a prescribed regulation under a specified enactment;
"spillage" means petroleum, natural gas, oil, solids or other substances escaping, leaking or spilling from
(a) a pipeline, well, shot hole, flow line, or facility, or
(b) any source apparently associated with any of those substances.
Division 1 — Oil and Gas Commission
2 (1) A corporation known as the Oil and Gas Commission is continued, consisting of a board with 3 directors.
(2) The deputy minister is a director and is the chair of the board.
(3) The Lieutenant Governor in Council may appoint 2 directors, for a term not longer than 5 years, one of whom is both the commissioner and vice chair of the board.
(4) A person appointed as a director under subsection (3) may be reappointed for additional terms.
(5) A vacancy in the membership of the board or the incapacity of one of the directors does not impair the power of the remaining directors to act.
(6) A majority of the directors holding office constitutes a quorum at meetings of the board.
(7) If there is a tie vote, the chair of the board, or in the absence of the chair the vice chair, has the deciding vote.
(8) If a director dies or is unable to act or if a director's position is otherwise vacant, the minister, by order, may appoint an acting director for a period not longer than 6 months.
(9) If the commissioner dies or is unable to act or if the commissioner's position is otherwise vacant, the minister, by order, may appoint a director or an acting director appointed under subsection (8) to be an acting commissioner for a period not longer than 6 months.
(10) The board may appoint a deputy commissioner.
(11) A deputy commissioner has the powers of the commissioner, unless the board otherwise directs, but does not have a vote in meetings or decisions of the board and is subject to any directions given to him or her by the commissioner.
(12) The commission may pay to a person appointed under subsection (3), (8), (9) or (10) remuneration and expense allowances at rates set by the minister.
3 The commission is an agent of the government.
4 The purposes of the commission include the following:
(a) to regulate oil and gas activities in British Columbia in a manner that
(i) provides for the sound development of the oil and gas sector, by fostering a healthy environment, a sound economy and social well-being,
(ii) conserves petroleum and natural gas resources,
(iii) ensures safe and efficient practices, and
(iv) assists owners of petroleum and natural gas resources to participate equitably in the production of shared pools of petroleum and natural gas;
(b) to provide for effective and efficient processes for the review of applications for permits and to ensure that applications that are approved are in the public interest having regard to environmental, economic and social effects;
(c) to encourage the participation of First Nations and aboriginal peoples in processes affecting them;
(d) to participate in planning processes;
(e) to undertake programs of education and communication in order to advance safe and efficient practices and the other purposes of the commission.
5 (1) The board may pass resolutions it considers necessary or advisable to direct its affairs, exercise its powers and perform its duties, including resolutions for one or more of the following:
(a) calling and holding meetings of the board and the procedures to be followed at meetings;
(b) making regulations of the board;
(c) approving the commission's annual service plan under the Budget Transparency and Accountability Act, as well as the commission's annual budget estimate detailing the expected revenues and planned expenditures of the commission for the next fiscal year;
(d) establishing a plan of organization to carry out the powers of the commission.
(2) The board must
(a) establish, in accordance with the regulations, if any, a conflict of interest policy for the directors that includes provisions respecting
(i) the disclosure of interests in contracts or transactions with the commission,
(ii) the duty to account for profits,
(iii) the validity of contracts and transactions in which a director has an interest, and
(iv) the disclosure of any property owned or office held by a director that may create a conflict of interest or duty,
(b) submit the policy referred to in paragraph (a) to the minister, and
(c) establish a code of conduct, including conflict of interest provisions, that governs the conduct of employees of the commission.
(3) On receipt of a conflict of interest policy under subsection (2) (b) or on the minister's own initiative, the minister may order the board to amend its conflict of interest policy and resubmit that policy to the minister in accordance with the order.
(4) A resolution of the board that is approved by directors, whether present in person or approving by telephone, facsimile transmission, electronic mail or any other similar means of communication, confirmed in writing or other graphic communication, is as valid as if it had been passed at a meeting of the board properly called and constituted.
6 (1) For the purposes of this Act, the commission may do any or all of the following:
(a) subject to subsection (2), acquire, hold and dispose of property;
(b) invest money, and, subject to the prior approval of the Lieutenant Governor in Council, borrow money;
(c) subject to subsection (2), negotiate and enter into agreements with any person, including the government of British Columbia, the government of Canada, the government of another province or of a territory, a local government, a First Nation or with an official or agency of any of them;
(d) subject to subsection (2), expend money for the purposes of administering the Act;
(e) do other things that the Lieutenant Governor in Council may authorize.
(2) In the prescribed circumstances, the commission may exercise the power referred to in subsection (1) (a), (c) or (d) only with the approval of the Lieutenant Governor in Council.
(3) With the prior approval of the Lieutenant Governor in Council, the commission may in any year pay to a municipality in which it has property a grant not greater than the amount that would be payable as taxes on the property in that year if the property were not exempt from taxation by the municipality.
(4) If directed to do so by the Lieutenant Governor in Council, the commission must pay to a municipality in which it has property a grant not greater than the amount that would be payable as taxes on the property in that year if the property were not exempt from taxation by the municipality.
7 (1) Subject to the direction of the board, the commissioner must manage the operations of the commission or supervise the management of those operations.
(2) The commissioner has the powers and duties of an official and of the commission under this Act, other than those powers and duties expressly given to the board under this Act.
(3) The commissioner may hire employees of the commission necessary to carry on the business and operations of the commission and may define their duties and determine their remuneration.
(4) The commissioner may designate a person as an official for the purposes of provisions of this Act specified by the commissioner in the designation.
(5) The commissioner may
(a) delegate the exercise of any power or performance of any duty conferred or imposed on the commission under this Act, other than those powers and duties expressly given to the board under this Act, to an employee or official of the commission or another public officer, and
(b) in making a delegation, provide directions that are binding on the delegate respecting the exercise of the power or the performance of the duty.
(6) A delegation under subsection (5) may be made by name or by designation of the office.
8 (1) For the regulation of oil and gas activities, the commission, instead of the official named in a specified provision,
(a) has all the powers relating to a discretion, function or duty referred to in the specified provision, including, without limiting this, the powers in the specified enactment relating to the administration and enforcement of an authorization, and
(b) is charged with all the responsibilities pertaining to that discretion, function or duty.
(2) Despite subsection (1), both the commission and the director, as the latter is defined in section 1 of the Environmental Management Act, have all the powers referred to in section 14 of that Act and are charged with all the responsibilities pertaining to those powers.
(3) Subject to this Act, the exercise of the powers conferred on the commission by subsection (1), the carrying out of each discretion, function and duty referred to in a specified enactment and the responsibilities with which the commission is charged under this section remain subject to the specified enactment and that specified enactment continues to apply.
(4) Despite subsections (1) and (3), the commission and the appropriate officials under the various specified enactments are each responsible for enforcing the specified enactments in relation to the matters described in the specified provisions.
9 (1) In this section, "pipeline" has the same meaning as in the National Energy Board Act (Canada).
(2) The commission's powers under section 8 do not include the power to issue an authorization with respect to a pipeline that is subject to the National Energy Board Act (Canada).
(3) Despite subsection (2), the Lieutenant Governor in Council may, by regulation, extend the commission's powers under section 8 to include the power to issue an authorization with respect to a pipeline referred to in subsection (2).
(4) If the commission issues under subsection (3) an authorization with respect to a pipeline referred to in subsection (2), the commission has all the powers and responsibilities referred to in section 8 with respect to that pipeline.
10 (1) The minister may order an independent audit of the performance of the commission in fulfilling its purposes or exercising its powers and performing its functions and duties under this Act.
(2) The minister responsible for the Wildlife Act may order an independent audit of the performance of the commission in fulfilling its purposes or exercising its powers and performing its functions and duties under this Act in relation to the protection and effective management of the environment.
(3) An order under subsection (1) or (2) must include terms of reference for the audit.
(4) If requested by an auditor appointed for the purposes of subsection (1) or (2), the commission must submit records in its possession that the auditor determines are relevant to the audit.
(5) Before an audit report is finalized, the auditor must provide to the board
(a) a copy of the draft audit report, and
(b) a reasonable opportunity to review and comment on the report.
(6) As soon as practicable after completing an audit, the auditor must submit the final audit report and any comments of the board to
(a) the minister who issued the order under subsection (1) or (2), and
(b) the board.
11 (1) The board may establish and appoint an advisory committee to consider or inquire into any matter and to report its findings and provide its advice to the board.
(2) The commission may pay to a person appointed as a member of an advisory committee remuneration and expense allowances at rates set by the minister.
12 (1) At the request of the Lieutenant Governor in Council, the commission must, at the places and times and in a manner the Lieutenant Governor in Council considers advisable,
(a) make inquiries, conduct investigations and prepare studies and reports on any matter within the scope of this Act, and
(b) recommend to the Lieutenant Governor in Council any measures the commission considers necessary or advisable in the public interest related to oil and gas activities.
(2) Subsection (1) does not apply to a matter that is before the commission.
13 (1) The Public Service Act and the Public Service Labour Relations Act do not apply to the commission or to its employees.
(2) Despite subsection (1), the Public Service Pension Plan, continued under the Public Sector Pension Plans Act, continues to apply to the commission and to its employees.
14 (1) The commission must establish and maintain an accounting system satisfactory to the Minister of Finance.
(2) The commission must prepare financial statements in accordance with generally accepted accounting principles.
(3) Whenever required by the Minister of Finance, the commission must provide detailed accounts of its revenues and expenditures for the period or to the date the Minister of Finance designates.
(4) All books or records of account, documents and other financial records of the commission are at all times open for inspection by the Minister of Finance or a person designated by the Minister of Finance.
(5) The Minister of Finance may direct the Comptroller General to examine and report to Treasury Board on any or all of the financial and accounting operations of the commission.
(6) The commission, with the approval of the Minister of Finance, may budget for a deficit in a fiscal year.
(7) The Minister of Finance, for the purposes of subsection (6), may grant an approval for one fiscal year or for any other number of fiscal years.
(8) The fiscal year of the commission is a period of 12 months beginning on April 1 in each year and ending on March 31 in the next year.
(9) The Minister of Finance is the fiscal agent of the commission.
15 Unless the Auditor General is appointed in accordance with the Auditor General Act as the auditor of the commission, an auditor appointed by the commission must, at least once for each fiscal year, audit and report on the accounts of the commission to the Executive Council through the minister and to the board, and the costs of the audit must be paid by the commission.
16 (1) Subject to subsection (2), the Business Corporations Act does not apply to the commission.
(2) The Lieutenant Governor in Council, by order, may declare that certain provisions of the Business Corporations Act and Society Act apply to the commission.
17 The Document Disposal Act applies to the commission and, for the purposes of that Act, the commission is a ministerial office.
18 (1) In this section, "revenue" includes interest but does not include penalties.
(2) The Minister of Finance, out of the consolidated revenue fund, must pay to the commission
(a) the gross revenue received from the levies authorized under section 110,
(b) the gross revenue received from the tax under section 47, and
(c) the gross revenue received from fees in relation to
(i) applications for and issuance of permits and the prescribed authorizations issued by the commission under this Act, and
(ii) fees prescribed under section 112 (1) (c).
(3) With the approval of Treasury Board, the minister may pay out of the consolidated revenue fund, on application by the commission, money required for the purposes of sections 12, 52 and 53.
Division 2 — Oil and Gas Appeal Tribunal
19 (1) The Oil and Gas Appeal Tribunal is established.
(2) The appeal tribunal is to hear appeals under section 72.
(3) The appeal tribunal consists of the following members appointed by the Lieutenant Governor in Council after a merit-based process:
(a) a member designated as the chair;
(b) one or more members designated as vice chairs after consultation with the chair;
(c) other members appointed after consultation with the chair.
20 Sections 1 to 22, 24, 26 to 33, 34 (3) and (4), 35 to 42, 44, 46.3, 47 to 57 and 59 to 61 of the Administrative Tribunals Act apply to the appeal tribunal.
Part 3 — Oil and Gas Activities
21 Subject to section 23, a person must not carry out an oil and gas activity unless
(a) either
(i) the person holds a permit that gives the person permission to carry out that oil and gas activity, or
(ii) the person is required to carry out that oil and gas activity by an order issued under section 49, and
(b) the person carries out the oil and gas activity in compliance with
(i) this Act and the regulations,
(ii) a permit issued to the person, if any, and
(iii) an order issued to the person, if any.
22 (1) In subsection (3), "prescribed applicant" means a person who intends to submit an application under section 24 and who is in a prescribed class of persons.
(2) Before submitting an application under section 24, a person must notify the land owner of the land on which the person intends to carry out an oil and gas activity of the person's intention to submit the application, and the notice must advise the land owner that he or she may make a submission to the commission under subsection (5) of this section with respect to the application or proposed application.
(3) Subject to subsection (4), before submitting an application under section 24, a prescribed applicant must carry out the prescribed consultations or provide the prescribed notices, as applicable, with respect to the oil and gas activities and related activities, if any, that will be the subject of the prescribed applicant's application.
(4) The commission, on written request, may exempt a person from the applicable consultation or notification requirements under subsection (3) and, on making an exemption, substitute other consultation or notification requirements than those prescribed for the purposes of subsection (3).
(5) A person, other than the applicant, may make a written submission to the commission with respect to an application or a proposed application under section 24.
(6) If a person makes a submission under subsection (5), the commission must send a copy of the submission to the applicant or to the person intending to apply for a permit, as the case may be.
23 (1) Before submitting an application under section 24 for a pipeline permit, a person may submit to the commission a preliminary plan of the proposed route of the pipeline.
(2) Subject to subsection (3), a person may enter on land as necessary for making surveys, examinations or other arrangements for the purpose of fixing the site of the pipeline referred to in subsection (1), if the person
(a) has submitted a preliminary plan under subsection (1), and
(b) has either
(i) provided the prescribed security to the commission to compensate the owner of the land for any damage or disturbance that may be caused by the entry on the land by the person, or
(ii) entered into an agreement with the owner of the land, other than Crown land, regarding entry on the land.
(3) A person who has not entered into an agreement referred to in subsection (2) (b) (ii) must notify, in accordance with the regulations, the owner of the land of the person's intention to enter on that land.
(4) The right of entry under subsection (2) does not extend to any of the following:
(a) land occupied by a building;
(b) the curtilage of a dwelling house;
(c) protected heritage property, unless the person is authorized by the local government or the minister responsible for the protection of the protected heritage property.
(5) In subsection (4) (c), "protected heritage property" means land or an object that is
(a) protected under section 13 of the Heritage Conservation Act,
(b) designated under section 967 of the Local Government Act or section 593 of the Vancouver Charter, or
(c) included under section 970.1 (3) (b) of the Local Government Act in a schedule to an official community plan.
24 (1) Subject to subsection (4), a person may apply to the commission for a permit by submitting, in the form and manner the commission requires,
(a) a description of the proposed site of the oil and gas activity,
(b) the information, plans, application form and records required by the commission,
(c) a written report, satisfactory to the commission, regarding the results of the consultations carried out or notification provided under section 22, if any,
(d) the prescribed information,
(e) the prescribed records, and
(f) the prescribed fees and the security required under section 30.
(2) An application for a permit under subsection (1) may be consolidated with an application for an authorization.
(3) Despite anything in a specified enactment, the commission may not grant an authorization to a person for a related activity unless the person holds, or has applied for, a permit for the oil and gas activity related to that related activity.
(4) A person may not submit an application for a permit to drill or operate a well, unless
(a) the person is the owner of the petroleum and natural gas rights or is the holder of the location in respect of the well,
(b) the person has an agreement with the owner or the holder of the location referred to in paragraph (a) authorizing the drilling or operation, as applicable,
(c) the person is the holder of a storage reservoir lease issued under section 130 of the Petroleum and Natural Gas Act, or
(d) the minister has approved the submission under subsection (5).
(5) For the purposes of subsection (4) (d), the minister may
(a) approve the submission by a person of an application for a permit to drill a well if the well is to be drilled for exploratory or research purposes only, and
(b) in approving a submission under paragraph (a), declare that, if a permit is issued to the person on the basis of the submission, the person is not required to be an owner or holder referred to in subsection (4) or have the agreement referred to in that subsection in order to drill or operate the well for the purposes referred to in paragraph (a).
25 (1) On application by a person under section 24 and after considering written submissions made under section 22 (5), if any, the commission may issue a permit to the person if the person meets the requirements prescribed for the purposes of this section.
(2) In issuing a permit under subsection (1), the commission
(a) must specify the oil and gas activities the person is permitted to carry out, and
(b) may impose any conditions on the permit that the commission considers necessary.
(3) A permit and any authorizations granted to the applicant for the permit may be issued as a single document.
(4) If the commission issues a permit under subsection (1), the commission must provide notice, in accordance with subsection (5), to the land owner of the land on which an oil and gas activity is permitted to be carried out under the permit.
(5) A notice under subsection (4) must
(a) advise the land owner of the issuance of the permit and of the location of the proposed site of an oil and gas activity on the land owner's land, and
(b) state that the land owner may appeal under section 72 the decision to issue the permit, and include an address to which an appeal may be sent.
(6) A permit holder must not begin an oil and gas activity on a land owner's land before the expiry of 15 days from the day the permit was issued, unless the land owner consents in writing to the activity beginning before the expiry of that period.
26 (1) The commission may
(a) refuse to issue a permit,
(b) suspend a permit or a permission specified in a permit,
(c) cancel a permit or a permission specified in a permit, or
(d) amend a permit.
(2) Without limiting the authority of the commission under subsection (1), the commission may make a decision under subsection (1) if the applicant or permit holder does any of the following:
(a) contravenes or has contravened
(i) this Act, the regulations, a permit, an authorization or an order issued under this Act, or
(ii) the Petroleum and Natural Gas Act or regulations made under that Act;
(b) fails to meet or no longer meets any of the conditions of section 24 (4);
(c) fails to meet or no longer meets the requirements prescribed for the purposes of section 25 (1), if any;
(d) begins an oil and gas activity permitted by a permit but then fails to carry out or continue that oil and gas activity;
(e) engages in or has engaged in a pattern of conduct that shows, in the commissioner's opinion, that the person is unfit to have a permit;
(f) is or has been convicted of an offence under
(i) this Act or any other enactment, or
(ii) a law enacted by the government of Canada, another province of Canada or a foreign jurisdiction
for conduct that shows, in the commissioner's opinion, that the person is unfit to have a permit.
(3) Without limiting the authority of the commission under subsection (1), the commission may make a decision under subsection (1) with respect to an applicant or permit holder if the applicant or permit holder is an employer, employee, officer, director or agent of a
(a) permit holder against whom the commission has made a decision under subsection (1), or
(b) permit holder that has an employee, officer, director or agent against whom the commission has made a decision under subsection (1).
(4) Without limiting the authority of the commission under subsection (1), the commission may make a decision under subsection (1) with respect to a permit holder who holds more than one permit for any contravention by the permit holder of
(a) any of the permit holder's permits, or
(b) any order issued to the permit holder with respect to oil and gas activities permitted under any of the permit holder's permits.
(5) If the commission suspends or cancels a permit or a permission under subsection (1) (b) or (c), the commission may also suspend or cancel an authorization issued to the permit holder for a related activity of an oil and gas activity permitted by the permit, whether or not a specified enactment prohibits the suspension or cancellation of the authorization or requires the commission to make a finding other than the suspension or cancellation of a permit before suspending or cancelling an authorization.
(6) The commission must give a permit holder an opportunity to be heard before making a decision under subsection (1) (b), (c) or (d) or (5) and must notify the permit holder of its decision under any of those provisions.
(7) If the commission refuses under subsection (1) to issue a permit, the commission must provide notice, in accordance with subsection (8), to the land owner of the land on which the applicant for the permit intended to carry out an oil and gas activity.
(8) A notice under subsection (7) must advise the land owner
(a) that the commission has refused to issue a permit,
(b) that the applicant for the permit may, in relation to the refusal, request a review under section 70 or appeal under section 72, and
(c) that the land owner may, on request, be a party to an appeal referred to in paragraph (b).
27 (1) The commission, on its own initiative or on application by a permit holder, may declare to be spent
(a) a permit, if the commission considers that the permit holder no longer requires the permit,
(b) a permission specified in a permit, if the commission considers that the permit holder no longer requires the permission, and
(c) despite anything in a specified enactment prohibiting the declaration, an authorization held by the permit holder, if the commission considers that the permit holder no longer requires the authorization.
(2) Before the commission makes a declaration under subsection (1) on its own initiative, the commission must give the permit holder an opportunity to be heard.
(3) If the commission declares a permit or permission or an authorization to be spent under subsection (1), the commission must provide written notice of that declaration to the permit holder or former permit holder.
28 (1) In this section:
"applicable Act" means the Community Charter, the Forest Act, the Forest and Range Practices Act, the Local Government Act, the Railway Act, the Railway Safety Act and the Transportation Act;
"regulator" means a person authorized to grant an approval under an applicable Act.
(2) Despite anything in an applicable Act but subject to subsection (3),
(a) the commission, in a pipeline permit, may give permission to the pipeline permit holder to construct or operate a pipeline across, along, over or under any highway, road, public place, railway, underground communication or power line or another pipeline, and
(b) the pipeline permit holder may carry out the activities referred to in paragraph (a) in accordance with the pipeline permit and this Act.
(3) If, but for subsection (2), a permit holder would not be entitled to carry out the activities referred to in subsection (2) (a) without obtaining an approval under an applicable Act, the regulator, on application made by the pipeline permit holder in accordance with the applicable Act, must grant the approval to the pipeline permit holder, but may impose, with respect to the carrying out of those activities, any conditions that the regulator is authorized to impose on the approval under the applicable Act.
29 (1) On application in writing signed by both a permit holder and a person to whom the permit holder wants the permit to be transferred and submission of the prescribed fee, if any, the commission
(a) may transfer the permit to that person, subject to any conditions the commission considers necessary, and
(b) if the commission transfers the permit under paragraph (a), must transfer, despite anything in a specified enactment prohibiting the transfer, all authorizations issued to the permit holder for related activities of an oil and gas activity permitted by the permit.
(2) In deciding whether to grant an application under subsection (1), the commission may consider
(a) any of the matters referred to in section 26 (2) to (4), and
(b) any other matter that may be considered under a specified enactment,
as though the person to whom the permit holder wants the permit to be transferred were an applicant for the permit and an authorization referred to in subsection (1) (b) of this section.
(3) A person to whom a permit is transferred under subsection (1)
(a) has the same rights and obligations as if the permit had been issued to that person, and
(b) if an authorization is transferred to that person, has the same rights and obligations as if the authorization had been issued to that person.
30 The commission may require a permit holder, an applicant for a permit or a transferee of a permit to provide security to the commission, in the amount the commission requires and in accordance with the regulations, to ensure the performance of an obligation under this Act, a permit or an authorization.
31 (1) Before submitting an application under subsection (4) for an amendment to a permit, a permit holder must provide notice to the land owner of the land on which an oil and gas activity is permitted to be carried out under the permit, and the notice must
(a) provide a description of the proposed amendment, and
(b) advise the land owner that he or she may make a submission to the commission under subsection (2).
(2) A land owner who receives a notice under subsection (1) may make a written submission to the commission regarding the proposed amendment within 15 days of receiving the notice.
(3) If a land owner makes a submission under subsection (2), the commission must send a copy of the submission to the permit holder.
(4) After complying with subsection (1), a permit holder may apply to the commission for an amendment to the permit holder's permit by submitting an application in writing and the prescribed fee, if any.
(5) On receipt of an application and fee under subsection (4), the commission may require the permit holder to carry out the prescribed consultations or provide the prescribed notices, as applicable, with respect to the proposed amendment as though the permit holder were a prescribed applicant as defined in section 22.
(6) A permit holder required to carry out consultations or provide notice under subsection (5) must submit a written report to the commission regarding the results of the consultations or notice.
(7) On receipt of an application and fee under subsection (4) and after considering a submission made under subsection (2), if any, and the results of consultations carried out or notices provided under subsection (5), if any, the commission may amend the permit holder's permit or refuse to amend the permit.
(8) An amendment made under subsection (7) is effective on and after the day it is made unless the land owner has made a submission under subsection (2), in which case the amendment is effective on and after the 15th day after it is made.
(9) If the commission amends a permit under subsection (7) and the amendment changes the effect of the permit on the land of the land owner referred to in subsection (1), the commission must provide notice to the land owner in accordance with subsection (10).
(10) A notice under subsection (9) must
(a) advise the land owner of the amendment,
(b) state that the land owner may appeal under section 72 the decision to amend the permit, and
(c) provide an address to which an appeal may be sent.
(11) If the commission refuses to amend a permit under subsection (7), the commission must provide to the land owner referred to in subsection (1) notice in accordance with subsection (12).
(12) A notice under subsection (11) must advise the land owner
(a) that the applicant for the amendment may, in relation to the refusal, request a review under section 70 or appeal under section 72, and
(b) that the land owner may, on request, be a party to an appeal referred to in paragraph (a).
32 (1) Subject to subsection (8), a permit and, despite anything in a specified enactment, any authorization issued to the permit holder for a related activity of an oil and gas activity permitted by the permit expire on the day after the prescribed period has elapsed if the permit holder has not by that day begun an oil and gas activity permitted by the permit.
(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
(a) the information, application form and records required by the commission, and
(b) the prescribed fee.
(3) On receipt of an application and fee under subsection (2), the commission may require the permit holder to carry out the prescribed consultations or provide the prescribed notification with respect to the extension for which the application is made as though the permit holder were a prescribed applicant as defined in section 22.
(4) A permit holder required to carry out consultations or provide notice under subsection (3) must submit a written report to the commission regarding the results of the consultations or notice.
(5) On application under subsection (2), the commission may
(a) extend by not more than one year the prescribed period with respect to the applicant's permit, and
(b) in granting an extension, impose additional conditions on the permit and the authorizations.
(6) Despite anything in a specified enactment, if the commission grants an extension under subsection (5) for a period of time, the commission may also extend the term of an authorization referred to in subsection (1), other than an authorization under section 8 of the Water Act.
(7) An extension with respect to a permit holder's permit and authorizations may be granted under this section only once, unless the commission is satisfied there are special circumstances to justify one or more further extensions.
(8) Despite subsection (1), a permit or an authorization does not expire under that subsection if the commission grants an extension under subsection (5) with respect to the permit or the term of the authorization is extended under subsection (6).
33 (1) A permit holder may send a notice to the commission advising the commission of the permit holder's intention to surrender the permit or a permission specified in a permit.
(2) On receipt of a notice under subsection (1), the commission may
(a) cancel the permit holder's permit or permission, as the case may be, and
(b) despite anything in a specified enactment prohibiting the cancellation, cancel an authorization issued to the permit holder for a related activity of the oil and gas activity with respect to which the notice was submitted.
(3) A cancellation under subsection (2) is effective on the date specified by the commission.
Division 2 — Rights and Obligations
34 Subject to subsection (2) and sections 23 and 39, a permit holder must not begin or carry out an oil and gas activity unless the permit holder, with respect to the land necessary for carrying out the activity,
(a) is the owner in fee simple of the land, or
(b) has acquired the land or the necessary interests in the land in accordance with
(i) the Land Act,
(ii) Part 3 of the Petroleum and Natural Gas Act, or
(iii) the Expropriation Act, only if
(A) the permit is a pipeline permit with respect to a pipeline other than a flow line, and
(B) the permit holder has failed to obtain, with the owner of the land or the interests in the land, an agreement authorizing the carrying out of that activity.
35 (1) In carrying out oil and gas activities and related activities, a permit holder or a person entering land under section 23 must minimize
(a) damage and disturbance to the sites of those activities, and
(b) waste.
(2) A pipeline permit holder must make reasonable efforts to ensure that its oil and gas activities do not prevent access to or use of a highway, road, railway or public place.
(3) A pipeline permit holder, as soon as reasonably possible after constructing a pipeline, must restore, in accordance with the regulations, if any, the land and surface disturbed by the construction.
36 (1) A permit holder and a person carrying out an oil and gas activity must comply with measures established under the authority of a regulation made under section 104 for the protection and effective management of the environment.
(2) Subject to regulations made under section 98, the commission, by order, may exempt, on any conditions the commission considers necessary, a permit holder from a requirement imposed by regulation under section 103.
37 (1) A permit holder and a person carrying out an oil and gas activity must
(a) prevent spillage, and
(b) promptly report to the commission any damage or malfunction likely to cause spillage that could be a risk to public safety or the environment.
(2) If spillage occurs, a permit holder or person carrying out an oil and gas activity must promptly do all of the following:
(a) remedy the cause or source of the spillage;
(b) contain and eliminate the spillage;
(c) remediate any land or body of water affected by the spillage;
(d) if the spillage is a risk to public safety or the environment, report to the commission
(i) the location and severity of the spillage, and
(ii) any damage or malfunction causing or contributing to the spillage.
(3) A person who is aware that spillage is occurring or likely to occur must make reasonable efforts to prevent or assist in containing or preventing the spillage.
38 (1) A permit holder must
(a) maintain the prescribed records and plans,
(b) maintain the records the commission orders the permit holder to maintain,
(c) at the request of the commission, produce the records or plans referred to in paragraph (a) or (b) for inspection and copying, and
(d) submit, in accordance with the regulations, prescribed records, reports and plans regarding the permit holder's oil and gas activities and related activities.
(2) The commission may order a permit holder to maintain records and plans in addition to the records and plans prescribed for the purposes of subsection (1) (a).
(3) The commission may disclose records, reports and plans to the public in accordance with the regulations.
39 (1) If a permit holder begins an oil and gas activity but ceases to have the interests in land referred to in section 34 necessary to carry out that activity, the permit holder must immediately suspend all oil and gas activities and related activities being carried out on that land, unless the commission approves the continuation of those activities under subsection (2).
(2) The commission, on application by a permit holder referred to in subsection (1), may
(a) approve the continuation of the permit holder's oil and gas activities and related activities, and
(b) on granting an approval under paragraph (a), impose additional conditions on the permit holder's permit and authorizations, if any.
(3) A permit holder with permission to drill or operate a well must immediately suspend its drilling and operations if
(a) the permit holder ceases
(i) to be the owner of the petroleum and natural gas rights or the holder of the location in respect of the well,
(ii) to have a valid agreement with the owner of the rights or the holder of the location referred to in subparagraph (i) authorizing the drilling or operation, as applicable, or
(iii) to hold a storage reservoir lease issued under section 130 of the Petroleum and Natural Gas Act, or
(b) the minister rescinds a declaration made under section 24 (5) with respect to the permit holder and those activities.
(4) A permit holder who suspends activities under subsection (1) or (3) must
(a) immediately notify the commission of the suspension,
(b) comply with the prescribed requirements, and
(c) carry out any actions as directed by the commission.
40 If a permit, a permission specified in a permit or an authorization
(a) is cancelled under section 26 or 33,
(b) is declared to be spent under section 27, or
(c) expires under section 32,
the permit holder or former permit holder, as the case may be, must
(d) unless otherwise ordered by the commission, perform each obligation imposed
(i) in relation to the permit, permission or authorization under this Act or a specified enactment, and
(ii) under the permit or authorization
that has not been performed by the date of the cancellation, declaration or expiry,
(e) comply with the prescribed requirements, and
(f) carry out any other actions for the purposes of restoration or the protection of public safety that the commission orders the permit holder or former holder to carry out.
41 (1) A person, other than a person in a prescribed class of persons, to whom
(a) section 40 (a) or (b) applies, or
(b) an order has been issued under section 49
may apply to the commission for a certificate of restoration by submitting, in the form and manner the commission requires,
(c) the information and other records required by the commission, and
(d) the prescribed fee.
(2) On application by a person under subsection (1), the commission, subject to section 43, may issue to the person a certificate of restoration certifying, on the basis of the information known to the commission at the time of certification, that the commission is satisfied
(a) in the case of an application by a person referred to in subsection (1) (a), that the person has complied with section 40 (d) to (f), or
(b) in the case of an application by a person referred to in subsection (1) (b), that the person has complied with the order referred to in that subsection.
(3) The issuance of a certificate of restoration does not relieve a person from any obligations under section 40 or under an order referred to in subsection (1) (b) of this section in respect of any matter that was not known to the commission at the time the certificate of restoration was issued.
42 A cancellation, declaration or expiry referred to in section 40 or the issuance of a certificate of restoration under section 41 does not affect or relieve the permit holder or former permit holder from
(a) the consequences of any contravention or offence or any related fine, imprisonment, fee, charge or penalty, if the contravention or offence occurred before the cancellation, declaration or expiry, or
(b) any liability imposed on the permit holder or former permit holder under a specified enactment.
43 (1) This section applies to an application for a certificate of restoration under section 41.
(2) The commission may not approve an application referred to in subsection (1) with respect to a site where a site profile is required under section 40 of the Environmental Management Act unless at least one of the following is satisfied:
(a) the commission has received a site profile required under section 40 of the Environmental Management Act with respect to the site and the commission is not required to forward a copy of the site profile to a director under section 40 (4) (b) of that Act;
(b) the commission has received a site profile under section 40 of the Environmental Management Act with respect to the site, has forwarded a copy of the site profile to a director under section 40 (4) (b) of that Act and has received notice from the director that a site investigation under section 41 of that Act will not be required by the director;
(c) the commission has received a final determination under section 44 of the Environmental Management Act that the site is not a contaminated site;
(d) the commission has received notice from a director under the Environmental Management Act that the commission may approve an application under this section because, in the opinion of the director, the site would not present a significant threat or risk if the application were approved;
(e) the commission has received notice from a director under the Environmental Management Act that the director has received and accepted a notice of independent remediation with respect to the site;
(f) the commission has received notice from a director under the Environmental Management Act that the director has entered into a voluntary remediation agreement with respect to the site;
(g) the commission has received a valid and subsisting approval in principle or certificate of compliance under section 53 of the Environmental Management Act with respect to the site.
44 In this Part:
"former Act" means the Oil and Gas Commission Act, S.B.C. 1998, c. 39, as it was immediately before its repeal;
"fund" means the fund continued under section 45 (3);
"marketable gas" means natural gas that is available for sale for direct consumption as a domestic, commercial or industrial fuel, or as an industrial raw material, or that is delivered to a storage facility, whether it occurs naturally or results from the processing of natural gas;
"orphan site" means a site designated under section 45 (2);
"restore" includes the requirements under section 40;
"surface lease" includes an order of the Mediation and Arbitration Board under Part 3 of the Petroleum and Natural Gas Act.
45 (1) The commission may restore orphan sites.
(2) The commission may designate as an orphan site a well, facility or pipeline if the operator with respect to that well, facility or pipeline is insolvent or the commission has not been able to identify the operator.
(3) The fund held by the commission under section 6.2 of the former Act is continued, and the purposes of the fund are to provide money as follows:
(a) to pay the costs of restoration in respect of orphan sites;
(b) to pay costs incurred in pursuing reimbursement for the costs referred to in paragraph (a) from the person responsible for paying them;
(c) to pay any other costs directly related to the operations of the commission in respect of the fund;
(d) to pay compensation for the purposes of section 46.
(4) The following must be deposited to the credit of the fund:
(a) money paid to the commission under section 18 (2) (b);
(b) money borrowed to meet any deficit in the fund;
(c) money recovered or received by the commission under subsection (7) of this section and section 46 (4);
(d) any interest or other income of the fund.
(5) The commission may do one or more of the following:
(a) pay money from the fund for any of the purposes referred to in subsection (3) in accordance with any regulations made for the purposes of this section and section 46;
(b) from the fund, repay any money borrowed by the commission for the purposes of the fund;
(c) determine the date on which an orphan site has been satisfactorily restored.
(6) For the purposes of subsection (2), an operator must be considered to be insolvent if the operator files for protection under the Companies' Creditors Arrangement Act (Canada) or is a bankrupt or an insolvent person under the Bankruptcy and Insolvency Act (Canada).
(7) If the commission restores an orphan site, the costs paid out of the fund in respect of that orphan site are a debt payable by the operator referred to in subsection (2) to the commission and the commission has a right of action against the operator for the recovery of that debt.
(8) For the purpose of restoring an orphan site, the commission has the same powers as it has under sections 53 and 57.
46 (1) On application by a land owner on whose land the commission expends money in accordance with section 45, the commission may make payments from the fund to compensate the land owner for the loss of use of his or her land as a result of the failure by the operator referred to in section 45 (2) to restore the land, subject to the maximums, conditions and limitations prescribed by regulation.
(2) In determining the amount of compensation to be paid to a land owner under subsection (1), the commission may consider any payments due to the land owner or a previous land owner under a surface lease with respect to the site.
(3) Before it compensates a land owner under subsection (1), the commission may require as a condition of compensation that the land owner assign to the commission the land owner's rights, if any, to overdue payments under a surface lease.
(4) If the commission provides compensation to a land owner, the commission has a right of action against the operator for the recovery of the amount paid in compensation.
47 (1) For the raising of revenue for the purposes of the fund, a producer must pay to the government a tax as determined under subsection (2), unless the operation of the tax is suspended by a regulation made under section 100 (2) (d).
(2) The tax under subsection (1) must be paid by a producer at the following rates:
(a) $0.03 per 1 000 cubic metres of marketable gas produced by the producer in a production month;
(b) $0.06 per cubic metre of petroleum produced by the producer in a production month.
(3) Subject to subsection (4), sections 73 (4) and 74 to 77 of the Petroleum and Natural Gas Act apply to the tax under this section as if it were a royalty under those sections of that Act.
(4) If there is a conflict between a regulation made under section 100 of this Act and sections 73 (4) and 74 to 77 of the Petroleum and Natural Gas Act or the regulations made under those sections of that Act, the regulation made under this Act prevails.
(5) The commission must provide to a producer a notice of the tax payable by that producer under this section.
(6) A notice required under subsection (5) may be provided to a producer by including the notice in an invoice sent to the producer in respect of a levy payable under regulations made under section 110 (a) of this Act.
(7) A producer must pay the tax by the date specified under the regulations.
(8) A producer who fails to pay the tax by the date specified under the regulations must pay to the government penalties set by regulation.
Part 5 — Compliance and Enforcement
Division 1 — Reference and Application
48 (1) In this Part:
(a) a reference to "the Act" is to be read as a reference to both this Act and the specified enactments, other than the Environmental Management Act and the Water Act;
(b) a reference to "the regulations" is to be read as a reference to both the regulations made under this Act and to the regulations made under the specified enactments, other than the Environmental Management Act and the Water Act;
(c) a reference to an authorization does not include the following:
(i) an authorization under the Environmental Management Act or the Water Act issued by the commission under section 8 of this Act;
(ii) an authorization issued by the commission under section 9;
(d) a reference to a related activity does not include a related activity under the Environmental Management Act or the Water Act.
(2) Despite anything in a specified enactment,
(a) an order may be issued under Division 2 with respect to an authorization or a related activity,
(b) the powers granted under Division 3 to an official or peace officer may be exercised with respect to an authorization or a related activity, and
(c) a finding may be made under section 62 and an administrative penalty may be imposed under section 63 with respect to an authorization or a related activity.
49 (1) An official may, in writing, issue to a person carrying out an oil and gas activity or a related activity an order under this section with respect to those activities or any of the person's obligations under the Act or the regulations or the person's permit or authorization, if any, if, in the opinion of the official,
(a) the person fails to comply with the Act, the regulations, a previous order made under the Act, or the person's permit or authorization, or
(b) the order is necessary
(i) to mitigate a risk to public safety,
(ii) to protect the environment, or
(iii) to promote the conservation of petroleum and natural gas resources.
(2) An official may issue an order to a person under subsection (1) with respect to an act or omission by the person whether or not the commission has made a finding under section 62 with respect to that act or omission.
(3) An order under subsection (1) must
(a) name the person to whom the order is addressed,
(b) specify the action to be taken, stopped or modified,
(c) state the date by which the person must comply with the order,
(d) state the reasons for the order,
(e) state that the person may request a review of the order under section 70 or appeal the decision under section 72, and include an address to which a request for a review or an appeal may be sent,
(f) be dated the day the order is made,
(g) be served on the person to whom it is addressed, and
(h) if the order is addressed to an employee, agent or contractor of a permit holder, serve a copy of the order on the permit holder.
(4) Without limiting subsection (3) (b), an order under subsection (1) may specify any of the following requirements:
(a) that a person must apply to obtain or amend a permit or an authorization in accordance with the Act and the regulations;
(b) that a person remedy a failure referred to in subsection (1) (a);
(c) that a person repair damage to the environment;
(d) that a person suspend or resume an oil and gas activity or any aspect of an oil and gas activity;
(e) that a person use a specified method to carry out an oil and gas activity;
(f) that a person conduct tests, take samples, conduct analyses and submit records and information to the commission;
(g) that a person control or prevent the escape of petroleum, natural gas, water, waste or other substances from a well, pipeline or facility;
(h) that a person repressure, recycle or carry out pressure maintenance of any pool or portion of it, or use any other enhanced recovery technique, including the introduction or injection of natural gas, water or other substances into any pool or part of it;
(i) with respect to water produced in relation to the production of petroleum or natural gas, that a person dispose of the water into an underground formation or as otherwise specified;
(j) that a person deepen a well beyond the formation from which production is being taken or has been taken;
(k) that a person recomplete a well;
(l) that a person restrict or cease production of petroleum, natural gas or water;
(m) that natural gas be gathered, and processed if necessary, and that the natural gas or liquid hydrocarbons extracted be marketed or injected into an underground reservoir for storage or for any other purpose;
(n) that a pipeline permit holder alter or divert its pipeline;
(o) that a permit holder prepare and implement, in a form and manner satisfactory to the official, a program of measures to contain and eliminate spillage;
(p) that a permit holder arrange for an independent audit of the permit holder's operations and activities and have the auditor's report submitted to the official.
(5) Despite subsection (3), if the official referred to in subsection (1) is of the opinion that a person's actions or omissions are of such nature that they are causing, or may imminently cause, serious damage to the environment or that they are a risk to public safety, the order under subsection (1) may be issued orally.
(6) If, under subsection (5), an official issues an order orally, an official, within 48 hours, must confirm the order in writing as required under subsection (3) or the order ceases to be effective.
(7) An official may amend an order issued under subsection (1), and subsection (3) applies to the amendment.
(8) If satisfied that the circumstances that gave rise to an order under subsection (1) are no longer present or have been affected by other circumstances, an official may terminate the order by providing the person to whom the order was addressed with written notice of the termination.
(9) An order under subsection (1) 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.
(10) Subject to subsection (9), if a regulation is made concerning a matter with respect to which an order has been made under this section, the order, if it has not been terminated under subsection (8), is no longer valid to the extent of any inconsistency between the order and the regulation.
50 (1) If an official issues an order under section 49 (1) and the person to whom the order was issued has not complied with the order by the date specified in the order under section 49 (3) (c), the commission may do one or more of the following:
(a) by order in writing, restrict or prohibit the person from carrying out an action referred to in the order;
(b) after giving the person an opportunity to be heard, carry out an action referred to in the order;
(c) by order in writing, require the person to pay to the commission the amount of all direct and indirect costs the commission determines were reasonably incurred in carrying out the action referred to in paragraph (b).
(2) An order referred to in subsection (1) (c) must provide the person to whom it is issued with an accounting of the expenditures relating to the action referred to in subsection (1) (b).
51 (1) An official, by order, may restrict or prohibit, in a manner prescribed by regulation, access to a public area, including a highway, road, resource road, and railway, if the official is of the opinion that the restriction or prohibition is necessary because of hazardous conditions resulting from an oil and gas activity.
(2) If an official issues an order under subsection (1), the commission must confirm the order in writing within 24 hours or the order ceases to be effective.
52 (1) An official may, in the case of an emergency,
(a) enter on any land or body of water and do the things the official considers necessary to implement and carry out measures to contain and eliminate spillage, and
(b) order
(i) any permit holder, and
(ii) the use of any person's equipment and the operator of that equipment,
to assist in the implementation or carrying out of measures to contain and eliminate spillage.
(2) The commission may reimburse a permit holder or person referred to in subsection (1) (b) for costs or expenses incurred as a result of an order issued under that subsection if the permit holder or person is not, in the commission's opinion, responsible for the spillage or for the likely source or cause of the spillage.
(3) If costs or expenses are incurred by the commission in implementing or carrying out measures to contain and eliminate spillage or making a reimbursement under subsection (2), the commission may do one or more of the following:
(a) take, deal with and dispose of the spillage, subject to section 55;
(b) order
(i) the permit holder, or
(ii) the person
who the commission believes is responsible for the spillage or for the likely source or cause of the spillage to pay the costs and expenses, or a part of them;
(c) order the permit holder or person referred to in paragraph (b) to indemnify the commission for costs or expenses paid by the commission;
(d) for the purpose of paragraph (b) or (c), direct the manner of payment or indemnification.
53 (1) If, in the commissioner's opinion,
(a) a permit holder has engaged in a pattern of conduct that shows that the person is unfit to carry out the oil and gas activities permitted by the permit holder's permit, and
(b) there is a risk to public safety, the environment or petroleum and natural gas resources,
the commission may
(c) enter, seize and take control of any well, pipeline, facility or storage reservoir together with any associated chattel and fixture and any pertinent records,
(d) either discontinue all activity or take over the management and control of the well, pipeline, facility or storage reservoir,
(e) take the steps the commission considers necessary
(i) to prevent the flow or release of petroleum, natural gas or other substances from any stratum that a well enters, including plugging a well at any depth, or
(ii) for public safety or to protect the environment, and
(f) carry out any other prescribed actions.
(2) If the commission takes control of a well, pipeline, facility or storage reservoir,
(a) the commission may issue orders concerning the well, pipeline, facility or storage reservoir to
(i) the permit holder, and
(ii) an officer, employee, agent and contractor of the permit holder operating the well, pipeline, facility or storage reservoir,
and, if the commission issues an order to a person referred to in either subparagraph (i) or (ii), the order applies to both the person referred to in subparagraph (i) and the persons referred to in subparagraph (ii), and
(b) subject to section 55, the commission may take, deal with and dispose of all petroleum, natural gas or other substances from the well, pipeline, facility or storage reservoir.
(3) The commissioner may order by whom and to what extent costs and expenses incurred as a result of proceedings taken under this section are to be paid.
54 From the proceeds of spillage disposed of under section 52 (3) (a) or of petroleum, natural gas or other substances disposed of under section 53 (2) (b), the commission
(a) must pay royalties owed with respect to the petroleum or natural gas under Part 10 of the Petroleum and Natural Gas Act, and
(b) after making the payments referred to in paragraph (a), may pay
(i) costs and expenses incurred as a result of proceedings taken under section 52 or 53, as applicable, and
(ii) costs and expenses of carrying out investigations and conservation measures that the commission considers necessary in connection with the exercise of its powers under section 52 or 53.
55 The net proceeds of spillage disposed of under section 52 (3) (a) or of petroleum, natural gas or other substances disposed of under section 53 (2) (b) remaining after payment of the costs and expenses under section 54 must be paid by the commission into the Supreme Court, and must be paid out to the persons and in the amounts as may be determined by the court on application of a person claiming to be entitled to any of the proceeds.
56 (1) Subject to subsection (2), no legal proceeding for damages lies or may be commenced or maintained against the government, the commissioner, the commission, an official or the commission's directors or employees because of anything done or omitted
(a) in the performance or intended performance of a duty under sections 50 to 53, or
(b) in the exercise or intended exercise of a power under sections 50 to 53.
(2) Subsection (1) does not apply to a person referred to in that subsection in relation to anything done or omitted by that person in bad faith.
Division 3 — Inspections and Audits
57 (1) In subsection (2), "dwelling" means
(a) a structure occupied as a private residence, and
(b) if only part of a structure is occupied as a private residence, that part of the structure.
(2) For any purpose related to the administration or enforcement of the Act, the regulations, a permit or an authorization, an official may enter, at any reasonable time, on land or premises, other than a dwelling, if the official has reasonable grounds to believe that
(a) the land or premises is the site of an oil and gas activity or a related activity that is regulated under the Act or the regulations or is carried on by a person who is required under this Act to hold a permit or an authorization to carry out that activity, or
(b) records concerning the activities referred to in paragraph (a) are kept on the land or premises.
(3) In order to obtain access under subsection (2), an official may enter land owned by a person other than a permit holder if the entry is reasonably necessary to obtain the access.
(4) An official who enters on land or premises under this section may
(a) inspect or audit anything or any activity that is reasonably related to the purpose of the inspection or audit,
(b) take samples and carry out tests and examinations,
(c) require production for the purposes of inspection or audit or copying of
(i) a permit or authorization that is required for the activity, and
(ii) a record required to be kept under the Act or the regulations, and
(d) make inquiries the official considers necessary.
(5) A peace officer has the powers and duties of an official under this section with respect to the enforcement of the provisions of the Act and the regulations.
58 For any purpose related to the administration and enforcement of the Act, the regulations, a permit or an authorization, an official or peace officer may
(a) require a person operating a vehicle to stop the vehicle, and
(b) carry out an inspection of a vehicle and its contents.
59 An official who under this Part enters onto land or premises for the purposes of administering or enforcing the Act or the regulations, stops a vehicle, requests records or plans or seizes records or plans must provide proof of identity, on the request of the person who
(a) is in possession or apparent possession of the land or premises,
(b) has apparent custody or control of the records or plans being inspected or audited,
(c) is in charge of the activity being inspected or audited, or
(d) is operating a vehicle stopped under section 58.
60 (1) The operator of a vehicle must stop the vehicle when required to do so by
(a) an official referred to in section 58, or
(b) a peace officer
who
(c) is in uniform,
(d) displays his or her official identification card or badge, or
(e) is in or near a vehicle that is either a vehicle of a peace officer or readily identifiable as a commission or other government vehicle.
(2) A person who is described in paragraphs (a) to (d) of section 59 must produce, if and as required by the official or peace officer,
(a) proof of identity,
(b) a permit or an authorization held by the person under the Act, and
(c) a record or plan required to be maintained under section 38.
61 A person must not
(a) obstruct or interfere with an official or peace officer acting under the authority of this Division to administer or enforce the Act or the regulations, or
(b) withhold, destroy, tamper with, alter, conceal or refuse to produce any information, record, plan, report, substance, sample or thing that is required to be produced by an official or peace officer administering or enforcing the Act or the regulations.
Division 4 — Contraventions and Administrative Penalties
62 (1) After giving an opportunity to be heard to a person who is alleged to have contravened a provision of the Act, the regulations, a permit, an authorization or an order, the commission may find that the person has contravened the provision.
(2) If a corporation contravenes a provision referred to in subsection (1), a director, agent or officer of the corporation who authorized, permitted or acquiesced in the contravention also contravenes the provision.
(3) If an employee, contractor or agent of a permit holder contravenes a provision referred to in subsection (1) in the course of carrying out the employment, contract or agency, the permit holder also contravenes the provision.
(4) If a person contravenes a provision referred to in subsection (1), any other person who
(a) is directly or indirectly responsible for the act or omission that constitutes the contravention, and
(b) is a contractor, employee or agent of the person or of an other person described in paragraph (a)
also contravenes the provision.
(5) The commission may not find that a person has contravened a provision referred to in subsection (1) if the person demonstrates to the satisfaction of the commission that
(a) the person exercised due diligence to prevent the contravention,
(b) the person reasonably believed in the existence of facts that if true would establish that the person did not contravene the provision, or
(c) the person's actions relevant to the provision were the result of an officially induced error.
(6) If
(a) a corporation referred to in subsection (2),
(b) an employee, contractor or agent referred to in subsection (3), or
(c) a person referred to in subsection (4)
has not contravened a provision referred to in subsection (1) as a result of demonstrating to the satisfaction of the commission anything referred to in subsection (5) (a) to (c), the commission may find that any of the other persons referred to in subsections (2) to (4) has contravened the provision, unless the other person demonstrates to the satisfaction of the commission anything referred to in subsection (5) (a) to (c).
(7) Nothing in subsection (5) prevents
(a) an official from issuing an order under section 49 (1) to a person with respect to an act or omission by the person, or
(b) the commission from doing anything referred to in section 50.
(8) A person does not contravene a provision referred to in subsection (1) by doing or omitting to do something if that act or omission is reasonably necessary to conform with the requirements of the Workers Compensation Act or any regulations under that Act.
63 (1) If the commission finds that a person has contravened a provision referred to in section 62 (1), the commission may impose an administrative penalty on the person in an amount that does not exceed the prescribed amount.
(2) Before the commission imposes an administrative penalty on a person, the commission must consider the following:
(a) previous contraventions by, administrative penalties imposed on or orders issued to
(i) the person,
(ii) if the person is an individual, a corporation for which the individual is or was an officer, director or agent, and
(iii) if the person is a corporation, an individual who is or was an officer, director or agent of the corporation;
(b) the gravity and magnitude of the contravention;
(c) the extent of the harm to others resulting from the contravention;
(d) whether the contravention was repeated or continuous;
(e) whether the contravention was deliberate;
(f) any economic benefit derived by the person from the contravention;
(g) the person's efforts to prevent and correct the contravention;
(h) any other matters prescribed by the Lieutenant Governor in Council.
(3) If a person is charged with an offence under this Act, an administrative penalty may not be imposed on the person in respect of the same circumstances that gave rise to the charge.
64 If the commission finds that a person has contravened a provision referred to in section 62 (1) or imposes an administrative penalty on a person, the commission must give to the person a notice of the finding or administrative penalty and the notice must specify the following:
(a) the contravention;
(b) the amount of the penalty, if any;
(c) the date by which the penalty, if any, must be paid;
(d) the person's right to request a review of the decision under section 70 or to appeal the decision under section 72;
(e) an address to which a request for a review or an appeal may be sent.
65 The person on whom an administrative penalty is imposed must pay the administrative penalty
(a) if paragraph (b) does not apply, within 30 days after the date on which the notice referred to in section 64 is served on the person, or
(b) by the later of the following:
(i) if the person requests a review of the administrative penalty under section 70, 30 days after the date on which the notice referred to in section 71 (1) (b) is served on the person, unless the penalty is rescinded under section 71 (1) (a);
(ii) if the person appeals the administrative penalty under section 72 and the appeal tribunal does not make an order under section 72 (4) with respect to that appeal, 30 days after the date on which the decision of the appeal tribunal is served on the person, unless the penalty is rescinded under section 72 (6) (a) or dealt with as described in section 72 (6) (b).
66 (1) An administrative penalty constitutes a debt payable to the government by the person on whom the penalty is imposed.
(2) If a person fails to pay an administrative penalty as required under section 65,
(a) the government 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, and
(b) the commission may refuse to consider applications made by the person under section 24.
67 The commission must pay all amounts derived from administrative penalties into the consolidated revenue fund.
68 (1) The time limit for making a finding under section 62 and giving a notice under section 64 is
(a) 3 years after the date on which the act or omission that is alleged to constitute the contravention occurred, or
(b) if the commissioner issues a certificate described in subsection (2) of this section, 3 years after the date on which the commissioner learned of the act or omission referred to in paragraph (a).
(2) A certificate purporting to have been issued by the commissioner certifying the date referred to in subsection (1) (b) is proof of that date.
69 (1) In this Part:
"determination" means
(a) with respect to an eligible person other than a land owner referred to in paragraph (b),
(i) a decision made by the commission under section 25 or 26,
(ii) a declaration made by the commission on its own initiative under section 27,
(iii) an order made by the commission under section 40 (f),
(iv) an order issued by an official or the commission under Division 2 of Part 5,
(v) a finding made by the commission under section 62,
(vi) an administrative penalty imposed by the commission under section 63, and
(vii) a prescribed decision made under this Act, and
(b) with respect to a land owner of land on which an oil and gas activity is permitted to be carried out under this Act,
(i) a decision made by the commission
(A) under section 25 to issue a permit to carry out an oil and gas activity on the land of the land owner, and
(B) under section 31 to amend a permit, if the amendment changes the effect of the permit on the land of the land owner, and
(ii) a decision made by a review official under section 71 to vary a determination referred to in paragraph (a) (i) of this definition so that
(A) a permit is amended, if the amendment changes the effect of the permit on the land of the land owner, or
(B) a permit is issued to carry out oil and gas activities on the land of a land owner;
"eligible person" means
(a) an applicant for a permit,
(b) a permit holder or former permit holder,
(c) a land owner of land on which an oil and gas activity is permitted to be carried out under this Act,
(d) a person to whom an order under section 49 (1) has been issued, and
(e) a person with respect to whom the commission has made a finding of a contravention under section 62;
"review official" means, in relation to a determination, a person who did not make the determination but who is designated in writing by the commission to review the determination for the purposes of sections 70 and 71.
(2) Despite anything in a specified enactment, a determination may not be appealed, reviewed or otherwise reconsidered except as provided in this Part.
70 (1) Subject to subsection (2), an eligible person, other than a land owner of land on which an oil and gas activity is permitted to be carried out under this Act, may request, in accordance with this section, a review of a determination.
(2) An eligible person may not request a review of a determination under subsection (1) if the eligible person has appealed the determination under section 72.
(3) A request for a review under subsection (1) must be made within 30 days of receiving the later of
(a) the determination, and
(b) any written reasons respecting the determination.
(4) Despite subsection (3), a review official may extend the time to request a review, even if the time to make the request has expired, if satisfied that
(a) special circumstances existed which precluded making the request within the time period required under subsection (3), and
(b) an injustice would otherwise result.
(5) The eligible person must make the request in writing and must identify the error the eligible person believes was made or the other grounds on which a review is requested.
(6) On receipt by the review official of a request under subsection (1), the determination to be reviewed as a result of the request
(a) is stayed, if the determination is an administrative penalty imposed under section 63, and
(b) is not stayed, if the determination is not an administrative penalty referred to in paragraph (a), unless the review official orders that the determination is stayed.
(7) The review official may conduct a written, electronic or oral review, or any combination of them, as the review official, in his or her sole discretion, considers appropriate.
71 (1) As soon as practicable after receiving a request under section 70 (1), the review official must
(a) confirm, vary or rescind the determination, and
(b) notify, in writing, the eligible person of the following:
(i) the review official's decision;
(ii) the reasons for the decision;
(iii) the eligible person's right to appeal the decision under section 72.
(2) If the review official varies a determination under subsection (1) so that
(a) a permit is amended and the amendment changes the effect of the permit on the land of the land owner, or
(b) a permit is issued to carry out oil and gas activities on the land of a land owner,
the review official must notify the land owner of the amendment or issuance in accordance with section 25 (4) or 31 (9), as applicable.
72 (1) Subject to subsection (2), an eligible person may appeal to the appeal tribunal
(a) a decision made under section 71, if the eligible person was a party to the review under that section, and
(b) a determination, if the eligible person has not, by the date the person commences the appeal, applied under section 70 (1) for a review of the determination.
(2) A land owner of land on which an oil and gas activity is permitted to be carried out under this Act may appeal a determination under this section only on the basis that the determination was made without due regard to
(a) a submission previously made by the land owner under section 22 (5) or 31 (2) of this Act, or
(b) a written report submitted under section 24 (1) (c).
(3) Subject to subsection (4), the commencement of an appeal does not operate as a stay or suspend the operation of the determination or decision being appealed, unless the appeal tribunal orders otherwise.
(4) The commencement of an appeal with respect to an administrative penalty operates as a stay of the determination that imposed the penalty or the decision that did not rescind the penalty, unless the appeal tribunal orders otherwise.
(5) The appellant and the commission are parties to an appeal, and
(a) if a person to whom an order under section 49 (1) has been issued files an appeal and the person is not a permit holder with respect to the oil and gas activity that is the subject of the order, the permit holder is also a party to the appeal,
(b) if a land owner of land on which an oil and gas activity is permitted to be carried out under this Act files an appeal, the permit holder with respect to the oil and gas activity is also a party to the appeal,
(c) if an applicant for a permit appeals a refusal to issue a permit, the land owner of the land on which the applicant for the permit intended to carry out an oil and gas activity is, on request, also a party to the appeal, and
(d) if a permit holder appeals a refusal to amend a permit, the land owner of the land on which an oil and gas activity is permitted to be carried out under the permit is, on request, also a party to the appeal.
(6) On an appeal under subsection (1), the appeal tribunal may
(a) confirm, vary, or rescind the decision made under section 71 or the determination, or
(b) send the matter back, with directions, to the review official who made the decision or to the person who made the determination, as applicable.
(7) Despite the application of section 24 (1) of the Administrative Tribunals Act to the appeal tribunal, a land owner must file a notice of appeal within 15 days of the day the determination being appealed was made.
73 The commission may direct a person to publish, at the person's own cost, the facts relating to the imposition of an administrative penalty or to an order issued under Division 2 of Part 5, if the person's rights of review and appeal have elapsed without the penalty or order being rescinded or dealt with as described in section 72 (6) (b).
74 (1) If the Lieutenant Governor in Council considers it necessary or in the public interest, the Lieutenant Governor in Council may order a pipeline permit holder to do any or all of the following:
(a) to extend or improve its pipeline for the junction with a pipeline of a person or local authority distributing or authorized to distribute gas to the public;
(b) to sell gas to the person or local authority referred to in paragraph (a), if to do so would not impair the pipeline permit holder's ability to render adequate service to its existing customers;
(c) for the purposes in paragraph (a), to construct pipelines to communities immediately adjacent to its pipeline, if the Lieutenant Governor in Council considers that the construction would not place an undue burden on the pipeline permit holder.
(2) The Lieutenant Governor in Council, in an order under subsection (1),
(a) may order that a person other than a pipeline permit holder referred to in that subsection must pay the costs, or a portion of the costs, incurred in carrying out the order, or
(b) may approve the payment of any of those costs from the consolidated revenue fund.
(3) If an order is made under subsection (1), the commission must amend under section 26 (1) the pipeline permit holder's permit to the extent necessary to make the permit consistent with the order.
75 (1) The commission, on its own initiative or on application by a permit holder or an applicant for a permit, may designate, by order or in a permit, any of the following as a special project:
(a) the development or production of petroleum, natural gas, or both, from a field or pool or portion of a field or pool, using repressuring, recycling, pressure maintenance or any other technique to enhance recovery;
(b) the application of innovative technology, as defined by regulation;
(c) an innovative method of carrying out oil and gas activities and related activities;
(d) any other prescribed oil and gas activity or method of carrying out an oil and gas activity.
(2) The commission may
(a) make a designation under subsection (1) with or without conditions, and
(b) cancel or suspend a designation
(i) at the request of the permit holder to whom the designation was given, or
(ii) if it appears to the commission that there has been a contravention of this Act, the regulations, a permit, an authorization or an order respecting the designation or a condition of the designation.
(3) A permit holder with a permit for an oil and gas activity that has been designated as a special project under subsection (1) may apply to the commission for other than normal spacing under section 65.1 of the Petroleum and Natural Gas Act.
(4) For the purposes of a special project or of special projects generally, the Lieutenant Governor in Council and the commission may each, in exercising a regulation-making power under this Act, make a regulation that is contrary to or inconsistent with a provision of this Act.
76 (1) Subject to subsection (3), a person must not
(a) construct
(i) a highway, road or railway,
(ii) an underground communication or power line, or
(iii) any other prescribed work, or
(b) carry out a prescribed activity
along, over or under a pipeline or within a prescribed distance of a pipeline unless
(c) the pipeline permit holder agrees in writing to the construction or the carrying out of an activity prescribed for the purposes of paragraph (b), or
(d) the commission, by order, approves the construction or the carrying out of the prescribed activity.
(2) The commission, in an order issued under subsection (1) (d), may impose any conditions on the approval that the commission considers necessary to protect the pipeline.
(3) The commission must approve
(a) the construction referred to in subsection (1), and
(b) the carrying out of a prescribed activity
by the government, but may impose conditions referred to in subsection (2) in the approval issued under subsection (1).
(4) The commission, for the purposes of deciding whether to issue an order under subsection (1) or impose conditions under subsection (2), may require a pipeline permit holder to submit information regarding the pipeline permit holder's pipeline.
(5) The commission may order a pipeline permit holder whose pipeline is the subject of an order issued under subsection (1)
(a) with the approval of the Lieutenant Governor in Council, to relocate the pipeline to facilitate the construction or prescribed activity approved by the order issued under subsection (1), and
(b) to take the actions specified in the order that the commission considers necessary to protect the pipeline.
(6) In relation to an order of the commission referred to in subsection (5), the Lieutenant Governor in Council
(a) may order that a person other than the pipeline permit holder must pay the costs, or a portion of the costs, incurred in carrying out the commission's order, or
(b) may approve the payment of any of those costs from the consolidated revenue fund.
77 The commission must maintain a registry containing the prescribed information about oil and gas activities.
78 (1) In this section, "decision" means any determination, declaration, order, finding or other decision made under this Act by the commission.
(2) If the commission makes a decision, the commission may
(a) correct a typographical, an arithmetical or another similar error in the decision, and
(b) correct an obvious error or omission in the decision.
(3) If the commission corrects a decision under this section, the commission must notify the person who is the subject of the decision and the correction does not take effect until that notification is given.
79 (1) All documents that are required or permitted under this Act to be given to or served on a person must be given or served in one of the following ways:
(a) by leaving a copy with the person;
(b) if the person is a permit holder or an authorization holder,
(i) by leaving a copy with an agent of that person,
(ii) by sending a copy by ordinary mail or registered mail to the address at which that person carries on business,
(iii) by sending a copy by electronic mail to the electronic mail address provided by that person,
(iv) by leaving a copy in a mail box or mail slot for the address at which that person carries on business, or
(v) by attaching a copy to a door or other conspicuous place at the address at which that person carries on business;
(c) by transmitting a copy to a facsimile number provided as an address for service by the person;
(d) by any other prescribed method of service.
(2) A document given or served in accordance with subsection (1) is deemed to be received as follows:
(a) if given or served by sending a copy by ordinary or registered mail, on the 5th day after it is mailed;
(b) if given or served by sending a copy by electronic mail, on the 3rd day after it is sent;
(c) if given or served by leaving a copy in a mail box or mail slot, on the 3rd day after it is left;
(d) if given or served by attaching a copy to a door or other conspicuous place, on the 3rd day after it is attached;
(e) if given or served by transmitting a copy by facsimile, on the 3rd day after it is transmitted;
(f) if given or served by any other method of service prescribed under subsection (1) (d), as prescribed.
80 (1) In any circumstances in which, under this Act, an opportunity to be heard is provided, the commission may conduct a written, electronic or oral hearing, or any combination of them, as the commission, in its sole discretion, considers appropriate.
(2) The commission may make rules respecting the circumstances and place in which and the process by which written, electronic or oral hearings may be conducted under subsection (1) and specifying the form and content of materials to be provided for written, electronic or oral hearings.
81 A person must not make a false or misleading statement in any application or other record submitted under this Act, or otherwise make a false statement to, or mislead or attempt to mislead, a person exercising a power or performing a duty or function under this Act.
82 A person to whom an order under this Act applies must comply with the order.
83 If there is a conflict or inconsistency between this Act and the Muskwa-Kechika Management Area Act, the Muskwa-Kechika Management Area Act prevails.
84 For greater certainty, the provisions of this Act are intended to respect aboriginal and treaty rights in a manner consistent with section 35 of the Constitution Act, 1982.
Part 8 — Offences and Court Orders
85 (1) The time limit for laying an information to commence a prosecution for an offence under this Act is
(a) 3 years after the date on which the act or omission that is alleged to constitute the offence occurred, or
(b) if the commissioner issues a certificate described in subsection (2), 3 years after the date on which the commissioner learned of the act or omission referred to in paragraph (a).
(2) A certificate purporting to have been issued by the commissioner certifying the date referred to in subsection (1) (b) is proof of that date.
86 (1) A person who contravenes section 21, 35 (1), 36 (1), 37 (1) or (2), 39 (3), 40, 61 or 81, or in relation to an order issued under section 49, section 82, commits an offence and is liable on conviction to a fine not exceeding $1 500 000 or to imprisonment for not more than 3 years, or to both.
(2) A person who contravenes section 35 (3) commits an offence and is liable on conviction to a fine not exceeding $1 000 000 or to imprisonment for not more than 2 years, or to both.
(3) A person who contravenes section 34, 38 (1) or 39 (1), or in relation to an order issued under section 53 (2) (a), section 82, commits an offence and is liable on conviction to a fine not exceeding $500 000 or to imprisonment for not more than one year, or to both.
(4) A person who contravenes section 35 (2) or 76 (1), or in relation to an order issued under a section not referred to in subsections (1) to (3) of this section, section 82, commits an offence and is liable on conviction to a fine not exceeding $100 000.
(5) A person who contravenes section 37 (3) or 60 (1) or (2) commits an offence and is liable on conviction to a fine not exceeding $25 000.
(6) The Lieutenant Governor in Council may provide by regulation that
(a) a contravention of a regulation is an offence, and
(b) a person convicted of an offence for a contravention of a regulation is liable to a fine not exceeding a maximum amount, or to imprisonment not exceeding a maximum length, or to both.
(7) If the maximum fine or imprisonment provided by a regulation under subsection (6) (b) is less than that provided by a provision of this Act, the regulation prevails.
(8) If a contravention continues for more than one day, the offender is liable to a separate penalty, without notice and without a separate count being laid, for each day that the contravention occurs.
(9) In a prosecution for an offence under this Act, it is sufficient proof of the offence to establish that it was committed by the defendant's contractor, employee or agent.
(10) Subsection (9) applies even if the contractor, employee or agent has not been identified or prosecuted for the offence.
(11) If a corporation commits an offence under this Act, a director or officer of the corporation who authorized, permitted or acquiesced in the offence also commits the offence.
(12) If a person commits an offence under this Act, any other person who
(a) is directly or indirectly responsible for the act or omission that constitutes the offence, and
(b) is a contractor, employee or agent of the person or of an other person described in paragraph (a)
also commits the offence.
(13) Due diligence, mistake of fact and officially induced error are defences to a prosecution under this Act.
(14) If
(a) a corporation referred to in subsection (11), or
(b) a person referred to in subsection (12),
has not committed an offence under this Act as a result of subsection (13), the other persons referred to in subsections (11) and (12) may be found guilty of an offence, subject to subsection (13).
(15) Section 5 of the Offence Act does not apply to this Act or the regulations.
87 (1) Subject to section 63 (3), a proceeding, conviction or penalty for an offence under this Part does not relieve a person from any other liability.
(2) If the commission imposes an administrative penalty on a person, a prosecution for an offence under this Act for the same contravention may not be brought against the person.
88 (1) If the commission considers that a person is not complying, or has not complied, with an order issued under this Act, the commission may apply to the Supreme Court for either or both of the following:
(a) an order directing the person to comply with the order or restraining the person from violating the order;
(b) an order directing the directors and officers of the person to cause the person to comply with or to stop violating the order.
(2) On application by the commission under this section, the Supreme Court may make an order it considers appropriate.
89 If a person is convicted of an offence under this Act, then, in addition to any punishment the court may impose, the court may order the person to comply with the provision.
90 If a person is convicted of an offence under this Act, then, in addition to any other penalty, the court may order the person to pay compensation or make restitution.
91 If a person is convicted of an offence under this Act, then, in addition to any other punishment that may be imposed, the court may, by order, do one or more of the following:
(a) prohibit the person from doing anything that may result in the continuation or repetition of the offence;
(b) direct the person to take any action the court considers appropriate to remedy or avoid any harm to the environment or public safety that results or may result from the act or omission that constituted the offence;
(c) direct the person to publish, at the person's own cost, the facts relating to the conviction;
(d) direct the person to compensate the commission for all or part of the cost of any remedial or preventative action taken by or on behalf of the commission as a result of the act or omission that constituted the offence;
(e) direct the person to pay court costs;
(f) direct the person to pay the costs of the investigation.
92 (1) If the court convicts a person of an offence under this Act, the court may increase a fine imposed on the person by an amount equal to the court's estimation of the amount of the monetary benefit acquired by or that accrued to the person as a result of the commission of the offence.
(2) A fine increased under subsection (1)
(a) applies despite any provision that provides for a maximum fine, and
(b) is in addition to any other fine under this Act.
93 An amount that a permit holder, producer or another person is required under this Act to pay to the commission or the government is a debt due by that permit holder, producer or person to the government or the commission, as the case may be, and the debt may be recovered by the government or the commission in any court of competent jurisdiction.
Division 1 — Regulations of the Lieutenant Governor in Council
94 (1) The Lieutenant Governor in Council may make regulations referred to in section 41 of the Interpretation Act.
(2) In making a regulation under this Act, the Lieutenant Governor in Council may do one or more of the following:
(a) delegate a matter to a person;
(b) confer a discretion on a person;
(c) make different regulations for different persons, places, things, decisions, transactions or activities.
(3) The Lieutenant Governor in Council may make a regulation defining a word or expression used but not defined in this Act.
(4) Sections 95 to 105 do not limit the authority of the Lieutenant Governor in Council to make regulations under subsection (1) of this section.
95 The Lieutenant Governor in Council may make regulations respecting policies and procedures to be followed by the commission in conducting its affairs, exercising its powers and discretion, carrying out its functions and duties and discharging its responsibilities.
96 (1) The Lieutenant Governor in Council may make regulations respecting the criteria that a person must use in exercising a discretionary power conferred on the person under this Act.
(2) Criteria prescribed under subsection (1) are in addition to any criteria required by this Act.
97 The Lieutenant Governor in Council may make regulations as follows:
(a) prohibiting the carrying out of any oil and gas activity or related activity at any point within a specified distance of any boundary, roadway, road allowance, right of way, building of any prescribed type or any specified works;
(b) despite anything in the Local Government Act and the Community Charter, prohibiting the construction of a building or structure within a specified distance of a well, pipeline or facility, if the Lieutenant Governor in Council is satisfied that the prohibition is necessary to protect the public.
98 (1) The Lieutenant Governor in Council may make regulations respecting the exemption of a person, class of persons, place, thing, transaction or activity from a provision of this Act or the regulations.
(2) In making a regulation under subsection (1), the Lieutenant Governor in Council may make the exemption subject to conditions.
(3) The Lieutenant Governor in Council may make regulations restricting the commission's authority
(a) to exempt a person or class of persons from section 22 or from a requirement referred to in section 36, or
(b) to authorize an official to exempt a person from a provision referred to in section 103 (2).
99 The Lieutenant Governor in Council may make regulations as follows:
(a) prescribing activities for the purposes of the definition of "oil and gas activity" in section 1 (2);
(b) prescribing exclusions from the definition of "pipeline" in section 1 (2);
(c) prescribing regulations under a specified enactment for the purposes of paragraph (f) of the definition of "specified provision" in section 1 (2);
(d) prescribing circumstances for the purposes of section 6 (2);
(e) respecting the application of the Public Inquiry Act for the purposes of section 12;
(f) prescribing authorizations for the purposes of section 18 (2) (c) (i);
(g) prescribing periods of time for the purposes of section 32;
(h) respecting the disclosure of records, reports and plans referred to in section 38;
(i) requiring that natural gas be gathered, and processed if necessary, and that the natural gas or liquid hydrocarbons extracted be marketed or injected into an underground reservoir for storage or for any other purpose;
(j) prescribing actions for the purposes of section 53;
(k) prescribing decisions for the purposes of the definition of "determination" in section 69;
(l) prescribing activities and methods for the purposes of section 75;
(m) prescribing works, activities and distances for the purposes of section 76, and respecting how costs incurred by a person to whom an approval is given under section 76 (1) or a pipeline permit holder referred to in section 76 (5) are to be allocated;
(n) respecting the application of the Mines Act to the exploration, development and production of oil sand, oil sand products, oil shale and oil shale products.
100 (1) In this section, "tax" means the tax under section 47.
(2) The Lieutenant Governor in Council may make regulations for the purposes of Part 4 and, without limiting this, may make regulations as follows:
(a) respecting administration of the fund;
(b) respecting the designation of orphan sites;
(c) prescribing the maximums, conditions and limitations on compensation paid to land owners under section 46;
(d) suspending the operation of the tax;
(e) respecting the assessment and reassessment of tax;
(f) respecting appeals from assessment or reassessment of tax;
(g) respecting refunds of tax;
(h) providing for exemptions from payment of tax;
(i) respecting time limits and time periods related to the tax, including returns, assessments, reassessments, appeals, refunds or exemptions, and including different time limits and time periods for different classes of persons;
(j) establishing procedures for giving notice of tax payable, collection of tax, and use of the fund;
(k) setting minimum amounts to be retained in reserve in the fund;
(l) setting penalties for the purposes of section 47 (8);
(m) designating an employee of the government as the collector of the tax and providing for the collection of the tax.
101 The Lieutenant Governor in Council may make regulations respecting the imposition of administrative penalties, including, without limiting this,
(a) matters to be considered before imposing administrative penalties, the criteria for determining appropriate administrative penalties, setting different limits on different administrative penalties and setting out those provisions of this Act or the regulations which, if contravened, make a person liable to an administrative penalty, and
(b) providing for increased administrative penalties for repeated contraventions and specifying the time within which a contravention is to be considered a repeat contravention of an earlier contravention.
102 The Lieutenant Governor in Council may make regulations designating an employee of the government as the collector of the levy referred to in section 110 for payment under section 18 to the commission and providing for its collection.
103 (1) For the purposes of environmental protection and management, the Lieutenant Governor in Council may make regulations respecting actions that a permit holder and a person carrying out an oil and gas activity must take or refrain from taking to protect or effectively manage the environment.
(2) Without limiting subsection (1), the Lieutenant Governor in Council may make regulations respecting actions that a permit holder and a person carrying out an oil and gas activity must take or refrain from taking with respect to any of the following:
(a) a wildlife habitat feature, as identified under section 104 (1) (c) (i);
(b) wildlife, including fish, and wildlife habitat;
(c) temperature sensitive streams, as identified under section 104 (1) (c) (ii);
(d) streams, wetlands and lakes;
(e) riparian areas and lakeshores;
(f) lakeshore management zones;
(g) water quality;
(h) watersheds;
(i) aquifers and ground water recharge areas;
(j) old-growth management areas, as identified under section 104 (3) (a);
(k) wildlife trees;
(l) commercial timber;
(m) soils, including soil stability, disturbance and productivity;
(n) surface drainage, ground percolation and erosion control;
(o) biodiversity;
(p) invasive plants, as identified under section 104 (3) (c);
(q) resource features;
(r) range;
(s) forest resources;
(t) cultural heritage resources;
(u) scenic features.
(3) The Lieutenant Governor in Council may make regulations
(a) for the purposes of subsection (2), classifying
(i) streams, wetlands and lakes,
(ii) riparian areas, and
(iii) wildlife habitat features, scenic features and resource features,
(b) for the purposes of subsection (2) and of section 104 (1) (a) (iv) and (2) (a), classifying watersheds,
(c) for the purposes of subsection (2) and of section 104 (2) (b) (i), classifying aquifers, and
(d) for the purposes of subsection (2) and of section 104 (4), classifying lakeshore management zones.
104 (1) The Lieutenant Governor in Council may make regulations authorizing the minister responsible for administering the Wildlife Act
(a) to establish, for the purposes of paragraph (b), one or more of the following:
(i) an area as an ungulate winter range;
(ii) an area as a wildlife habitat area;
(iii) categories of wildlife for the purposes of subparagraphs (i) to (ii);
(iv) a fisheries sensitive watershed, in accordance with regulations, if any, respecting the classification of watersheds made under section 103 (3) (b),
(b) to establish, for the purposes of section 36 (1), a measure in relation to paragraph (a) (i), (ii) or (iv) of this subsection, and
(c) to identify one or both of the following:
(i) for the purposes of section 103 (2) (a), a wildlife habitat feature, in accordance with regulations, if any, respecting the classification of wildlife habitat features made under section 103 (3) (a) (iii);
(ii) for the purposes of section 103 (2) (c), a temperature sensitive stream.
(2) The Lieutenant Governor in Council may make regulations authorizing the minister responsible for administering the Water Act
(a) to establish, for the purposes of paragraph (c), a designated watershed or portion of a watershed, in accordance with regulations, if any, respecting the classification of watersheds made under section 103 (3) (b),
(b) to identify, for the purposes of paragraph (c), either or both of the following:
(i) an aquifer, in accordance with regulations, if any, respecting the classification of aquifers made under section 103 (3) (c);
(ii) a groundwater recharge area, and
(c) to establish, for the purposes of section 36 (1), a measure in relation to paragraphs (a) and (b).
(3) The Lieutenant Governor in Council may make regulations authorizing the minister responsible for administering the Land Act
(a) to establish, for the purposes of section 103 (2) (j) and paragraph (b) of this subsection, an old-growth management area,
(b) to establish measures, for the purposes of section 36 (1), in relation to paragraph (a), and
(c) to identify invasive plants for the purposes of section 103 (2) (p).
(4) The Lieutenant Governor in Council may make regulations authorizing the minister responsible for administering the Forest and Range Practices Act to establish, for the purposes of section 103 (2) (f) and (3) (d), lakeshore management zones.
(5) The Lieutenant Governor in Council may make regulations
(a) prescribing the circumstances in which and the extent to which a discretion conferred in an authorization referred to in subsections (1) to (4) or paragraph (b) of this subsection may be exercised,
(b) authorizing a minister referred to in subsections (1) to (4) to grant an exemption from a measure established by that minister, and
(c) authorizing a minister referred to in subsections (1) to (4) to delegate any power conferred on the minister by a regulation made under this section.
105 (1) If there is an inconsistency between
(a) a requirement prescribed under section 103, and
(b) a measure established under section 104,
the measure referred to in paragraph (b) prevails to the extent of the inconsistency.
(2) If there is an inconsistency between
(a) either
(i) a requirement prescribed under section 103, or
(ii) a measure established under section 104, and
(b) a provision of an Act administered by the minister responsible for the administration of the Wildlife Act or the Water Act or a regulation made under any of those Acts
the provision referred to in paragraph (b) prevails to the extent of the inconsistency.
Division 2 — Regulations of the Board
106 (1) In making regulations under this Division, the board may
(a) make different regulations for different persons, places, things, transactions or activities, and
(b) make the regulations subject to orders issued under section 49, on any conditions the board considers appropriate.
(2) In making a regulation under section 111 or 112 (1) (b), (d) or (g), the board may authorize an official to exempt a person from a provision of those regulations.
107 (1) The board may make regulations respecting consultations and notification for the purposes of sections 22, 31 (5) and 32 (3).
(2) Without limiting subsection (1), the board may make regulations
(a) prescribing classes of applicants for the purposes of section 22 (1),
(b) respecting the extent, nature and manner of the consultations or notifications that may be required under section 22, 31 (5) or 32 (3), including, without limiting this, regulations respecting the provision of notice to specified persons or classes of persons and the provision of replies to persons who respond to a notice, and
(c) respecting reports to be submitted under section 24 (1) (c), 31 (6) or 32 (4), including, without limiting this, regulations respecting the publication of those reports.
108 The board may make regulations as follows:
(a) respecting information for the purposes of section 24 (1) (d) and records for the purposes of section 24 (1) (e);
(b) respecting requirements for the purposes of section 25 (1).
109 The board may make regulations respecting security for the purposes of sections 23 and 30, including regulations as follows:
(a) prescribing the amount of the security for the purposes of section 23 and the minimum or maximum amount, or both, of security for the purposes of section 30;
(b) respecting the type of security that is acceptable or unacceptable;
(c) respecting the form and content of the security;
(d) respecting the time by which the security must be submitted to the commission;
(e) respecting the circumstances under which the security may be realized;
(f) respecting interest on the security.
110 The board, for the purpose of recovering expenses arising out of the administration of this Act in a fiscal year, may make regulations as follows:
(a) requiring producers to pay a levy to the government;
(b) subject to the approval of Treasury Board, establishing the amount, or the method of determining the amount, of the levy;
(c) providing for imposition of penalties, payable to the government, to enforce payment of the levy.
111 (1) The board may make regulations as follows:
(a) if the commission is satisfied that there is a danger to the public, increasing a specified distance prescribed under section 97 (a), and, if a prohibition has not been prescribed under that section with respect to any area of the province, prescribing a prohibition for that area of the type referred to in that section;
(b) respecting equipment and techniques that must be used when carrying out an oil and gas activity;
(c) respecting waste produced directly or indirectly by the carrying out of an oil and gas activity;
(d) respecting the carrying out of geophysical exploration;
(e) respecting the drilling, maintenance and operation of wells, including, without limiting this, regulations respecting
(i) the measures to be taken and the methods of operation to be used before drilling begins and during drilling or operation,
(ii) the drilling of multizone wells,
(iii) the conditioning and reconditioning of wells by mechanical, chemical or explosive means,
(iv) water source wells, and
(v) spacing areas in which wells are to be completed;
(f) respecting the exploration for and development or use of storage reservoirs;
(g) respecting the exploration for and development and production of oil sand, oil sand products, oil shale and oil shale products;
(h) respecting the construction, maintenance and operation of a pipeline, including, without limiting this, regulations respecting measures to be taken
(i) to restore the land and surface of land after construction or removal of a pipeline,
(ii) to monitor and maintain the integrity of the pipeline and equipment, and
(iii) on suspension of operation of a pipeline;
(i) designating a field by describing its surface area;
(j) designating 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;
(k) determining whether a field or pool described in paragraph (i) or (j) may be operated for the production of petroleum, natural gas, or both;
(l) designating the area that is to be allocated to a well in connection with fixing allowable production;
(m) controlling and regulating the production of petroleum, natural gas and water by restriction, proration or prohibition;
(n) requiring the disposal of water produced into an underground formation or otherwise and authorizing the commission to specify the terms according to which the disposal must be done;
(o) respecting the management of petroleum or natural gas fields, pools or zones.
(2) The board may make regulations as follows:
(a) prescribing roads for the purposes of paragraph (g) in the definition of "oil and gas activity" in section 1 (2);
(b) respecting the construction, maintenance and operation of prescribed roads;
(c) respecting the application of the Motor Vehicle Act to prescribed roads.
112 (1) The board may make regulations as follows:
(a) adopting the provisions of a publication or adopting them as they are amended from time to time, and requiring permit holders, or a class of them, specified in the regulation to comply with the adopted provisions;
(b) respecting the taking of samples and the conducting of tests and analyses by permit holders;
(c) subject to the approval of Treasury Board, respecting fees required to be paid under this Act;
(d) respecting the submission of records, plans, reports and other information to the commission and the maintenance of records and plans;
(e) prescribing the methods that must be used for the measurement of petroleum, natural gas, substances prescribed under section 133 (2) (v) of the Petroleum and Natural Gas Act and mixtures of any of them;
(f) prescribing the standard conditions to which the measurements referred to in paragraph (e) must be converted;
(g) respecting the surveying of a pipeline or a proposed route of a pipeline;
(h) prescribing requirements for the purposes of sections 39 (4) and 40 (e);
(i) prescribing classes of persons for the purposes of section 41;
(j) for the purposes of section 51, respecting the restriction or prohibition of access to a public area;
(k) prescribing information for the purposes of section 77;
(l) prescribing methods of service and times of deemed receipt for the purposes of section 79.
(2) For greater certainty, regulations made under subsection (1) (c) or section 110 (b) with the approval of Treasury Board may be made or adjusted at any time.
113 (1) The Lieutenant Governor in Council may make regulations considered appropriate for the purpose of more effectively bringing into operation this Act, and to remedy any transitional difficulties encountered in doing so and for that purpose disapplying or varying any provision of this Act.
(2) A regulation made under this section may be made retroactive to a date not earlier than the coming into force of this section.
(3) Subject to subsection (4), this section is repealed on the date that is 2 years after the coming into force of this section and on its repeal any regulations made under it are also repealed.
(4) The Lieutenant Governor in Council by regulation may substitute a date that is no later than 3 years after the coming into force of this section for the date referred to in subsection (3).
114 The Lieutenant Governor in Council, when appointing the first appeal tribunal, may appoint to the appeal tribunal, without a merit-based process, a person who, at the time of the appointment, is
(a) a member of the Environmental Appeal Board continued under the Environmental Management Act, or
(b) a member of the Forest Appeals Commission continued under the Forest Practices Code of British Columbia Act.
115 (1) In this section, "former Act" means the Oil and Gas Commission Act, S.B.C. 1998, c. 39, as it read immediately before being repealed.
(2) A designation made under section 6.2 (5) (a) of the former Act and in effect immediately before the repeal of the former Act is deemed to be a designation made under section 45 (2) of this Act.
116 (1) In this section, "former Act" means the Petroleum and Natural Gas Act, R.S.B.C. 1996, c. 361, as it read immediately before this section comes into force.
(2) The following approval and authorizations are each deemed to be a permit issued under this Act if the authorization or approval is in effect immediately before the coming into force of this section:
(a) an approval issued under section 33 of the former Act;
(b) a well authorization issued under Division 1 of Part 12 of the former Act;
(c) a water source well authorization issued under Division 2.1 of Part 12 of the former Act;
(d) an authorization to construct or modify a production facility issued by the commission under the Drilling and Production Regulation, B.C. Reg. 362/98, as it read immediately before this section comes into force.
(3) Despite the repeal of Part 4 of the former Act, that Part continues to apply to a geophysical licence issued under section 32 of the former Act and in effect immediately before this section comes into force, until whichever of the following happens first:
(a) the geophysical licence is cancelled under section 35 of the former Act;
(b) a permit is issued under this Act to the holder of the geophysical licence, permitting the holder to carry out geophysical exploration;
(c) 2 years expire after the date Part 4 of the former Act is repealed.
(4) Despite the repeal of Part 12 of the former Act, that Part continues to apply to a test hole authorization issued under Division 2 of that Part until whichever of the following happens first:
(a) the test hole authorization is cancelled under Division 2 of Part 12;
(b) a permit is issued under this Act to the holder of the test hole authorization, permitting the holder to convert the test hole into a well;
(c) 2 years expire after the date Part 12 of the former Act is repealed.
(5) A drilling deposit submitted under section 85 of the former Act is deemed to be security submitted for the purposes of section 30 of this Act.
(6) An approval issued under section 100 of the former Act and in effect immediately before this section comes into force is deemed to be a designation under section 75 of this Act.
117 (1) In this section, "former Act" means the Pipeline Act, R.S.B.C. 1996, c. 364, as it read immediately before its repeal.
(2) Each of the following is deemed to be a pipeline permit issued under this Act:
(a) a certificate issued under section 10 of the former Act and in effect immediately before the repeal of the former Act;
(b) an authorization issued under section 22 of the former Act and in effect immediately before the repeal of the former Act;
(c) an authorization issued under section 27 of the former Act and in effect immediately before the repeal of the former Act.
(3) A leave given under section 28 of the former Act and in effect immediately before the repeal of the former Act is deemed to be an approval issued under section 76 of this Act.
(4) A leave, in relation to a pipeline, given under section 30 of the former Act and in effect immediately before the repeal of the former Act is deemed to be a permission in the pipeline permit for the pipeline.
(5) A leave given under section 31 of the former Act and in effect immediately before the repeal of the former Act is deemed to be an approval under section 76 of this Act.
(6) Despite the repeal of Part 7 of the former Act, any decision made with respect to a common carrier by the British Columbia Utilities Commission under the authority of that Part continues to apply, subject to section 65 of the Utilities Commission Act as amended by this enactment.
118 The commission may consolidate into a single permit any or all permits held by a permit holder by operation of sections 116 and 117.
Part 11 — Consequential Amendments and Repeals
Environmental Management Act
119 Section 1 (1) of the Environmental Management Act, S.B.C. 2003, c. 53, is amended in the definition of "officer" by adding ", a government corporation" after "by the government".
120 Section 39 (1) is amended in the definition of "commission" by striking out "Petroleum and Natural Gas Act" and substituting "Oil and Gas Activities Act".
121 Section 40 (3) is repealed and the following substituted:
(3) Subject to the regulations, a permit holder under the Oil and Gas Activities Act must provide a site profile to the commission if the permit holder applies for a certificate of restoration respecting an oil and gas activity in accordance with section 41 of that Act.
122 Section 48 (3) (e) is amended by striking out "section 84 of the Petroleum and Natural Gas Act;" and substituting "section 41 of the Oil and Gas Activities Act;".
Environmental Management Amendment Act, 2004
123 Section 23 of the Environmental Management Amendment Act, 2004, S.B.C. 2004, c. 18, is repealed.
Expropriation Act
124 Section 2 (3) of the Expropriation Act, R.S.B.C. 1996, c. 125, is amended by striking out "the Petroleum and Natural Gas Act, the Pipeline Act" and substituting "the Oil and Gas Activities Act".
Forest Act
125 Section 47.4 (2) (b) (i) of the Forest Act, R.S.B.C. 1996, c. 157, is amended
(a) by repealing clauses (A) and (B) and substituting the following:
(A) an oil and gas activity under the Oil and Gas Activities Act; , and
(b) in clause (C) by striking out "activities referred to in clause (A) or (B)," and substituting "an activity referred to in clause (A),".
Forest and Range Practices Act
126 Section 1 (1) of the Forest and Range Practices Act, S.B.C. 2002, c. 69, is amended in paragraph (c) of the definition of "official" by striking out "minister responsible for the Oil and Gas Commission Act" and substituting "commissioner under the Oil and Gas Activities Act".
127 Section 58 (1) (a) is amended by striking out ", the Petroleum and Natural Gas Act or the Pipeline Act," and substituting "or the Oil and Gas Activities Act,".
128 Section 204 (3) is amended by striking out "Code and the Code regulations" and substituting "Oil and Gas Activities Act and the regulations under that Act".
Forest and Range Practices Amendment Act, 2003
129 Section 106 of the Forest and Range Practices Amendment Act, 2003, S.B.C. 2003, c. 55, is repealed.
Forests Statutes Amendment Act, 2000
130 Section 54 of the Forests Statutes Amendment Act, 2000, S.B.C. 2000, c. 6, is repealed.
Geothermal Resources Act
131 Section 1 (1) of the Geothermal Resources Act, R.S.B.C. 1996, c. 171, is amended
(a) by adding the following definitions:
"board" means the board of the commission continued under section 2 of the Oil and Gas Activities Act;
"commission" means the Oil and Gas Commission continued under section 2 of the Oil and Gas Activities Act; ,
(b) in the definition of "commissioner" by striking out "Petroleum and Natural Gas Act," and substituting "Oil and Gas Activities Act;",
(c) by adding the following definition:
"facility" means any surface equipment required to produce geothermal resources or to inject water or other fluids produced in connection with a geothermal resource into subsurface strata, but does not include
(a) a pipeline as defined in the Oil and Gas Activities Act, or
(b) equipment used in connection with the conversion of the geothermal resource into a commercial commodity; ,
(d) in the definition of "field" by striking out "division head" and substituting "minister",
(e) in paragraph (b) of the definition of "geothermal exploration" by striking out "or test hole drilling",
(f) in paragraph (c) of the definition of "geothermal exploration" by striking out "division head;" and substituting "commission;",
(g) by repealing the definition of "geothermal rig licence",
(h) in the definition of "lessee" by striking out "division" and substituting "ministry",
(i) in the definition of "permittee" by striking out "division" and substituting "ministry",
(j) by repealing the definition of "test hole", and
(k) by repealing the definition of "well" and substituting the following:
"well" means a hole in the ground
(a) made or being made by drilling, boring or any other method for the purpose of producing a geothermal resource or through which a geothermal resource is or can be produced,
(b) used, drilled or being drilled for the purpose of injecting any substance into subsurface strata to assist the production of a geothermal resource, or to dispose of water produced in connection with the production of a geothermal resource, or
(c) used, drilled or being drilled for the purpose of obtaining information about a geothermal resource.
132 Section 1 (3) is repealed.
133 Section 4 is amended
(a) in subsection (1) (b) by striking out "minister" and substituting "commission",
(b) by repealing subsections (3) and (5),
(c) by repealing subsection (4) and substituting the following:
(4) A person may not drill or operate a well unless the commission has issued to the person a well authorization for the well. , and
(d) in subsection (6) by striking out "or test hole drilling" and by striking out "commissioner" and substituting "commission".
134 Sections 5 (8), 7 (2) and 9 (1) and (3) are amended by striking out "commissioner" and substituting "minister".
135 Section 12 is amended
(a) in subsection (1) by striking out "division head or a person authorized by the division head in writing to do so" and substituting "commission" and by striking out "test hole program authorization, well authorization or geothermal rig licence." and substituting "well authorization.",
(b) by repealing subsection (2),
(c) in subsection (3) by striking out "test hole program authorization or",
(d) in subsection (4) by striking out "minister" and substituting "commission" and by striking out "or test hole",
(e) in subsection (5) by striking out "or a test hole program authorization", and
(f) in subsection (6) by striking out "test hole or" and by striking out "an officer of the division" and substituting "the commission".
136 Section 14 is amended
(a) in subsection (1) by striking out "division head" and substituting "commission or the minister",
(b) in subsection (2) by striking out "in the division" and substituting "by the commission" and by striking out "division head" and substituting "commission", and
(c) by repealing subsection (3) and substituting the following:
(3) A person authorized to exercise any of the powers in subsection (1) or (2) must produce on demand his or her identification card issued by the commission or authorization issued by the ministry.
137 Section 15 is amended by striking out "commissioner." and substituting "commission."
138 Section 16 is amended
(a) in subsections (1) and (2) (a) by striking out "test holes,",
(b) in subsections (2) and (3) by striking out "an officer of the division" and substituting "the commission",
(c) by repealing subsection (4) and substituting the following:
(4) If, after inspection of a location or well, the commission considers that a method or practice being employed in connection with the location or well constitutes or may constitute a hazard to the health or safety of any person, or of the public, the commission may give notice of it in writing to
(a) the permittee or lessee of the location,
(b) the holder of a well authorization, or
(c) the agent or representative of a person referred to in paragraph (a) or (b),
setting out the remedial measures the commission requires be taken. , and
(d) by repealing subsection (5) and substituting the following:
(5) If the commission considers that delay in implementation of the remedial measures would constitute a danger to any person or to the public, the commission may, in the same notice or subsequently, order in writing that
(a) the method or practice be discontinued, or
(b) all operations in the location or in connection with the well cease
until the matter is remedied to the commission's satisfaction.
139 The following sections are added to Part 6:
19.1 (1) In this section, "revenue" includes interest but does not include penalties.
(2) The Minister of Finance, out of the consolidated revenue fund, must pay to the commission the gross revenue received from fees in relation to applications for and issuance of approvals and other authorizations issued by the commission.
19.2 (1) The commissioner may delegate the exercise of any power or performance of any duty conferred or imposed on the commission under this Act, other than a power expressly given to the board under this Act, to an employee or official of the commission or another public officer.
(2) A delegation under subsection (1) may be made by name or by designation of the office.
140 Section 20 is amended
(a) in subsection (2) by striking out "If the ministry receives" and substituting "If the ministry or commission receives", and
(b) by adding the following subsection:
(3) The ministry and the commission may disclose reports, records or data to the public in accordance with the regulations.
141 Section 22 is amended by adding the following subsection:
(2.1) If a contravention of a section referred to in subsection (1) continues for more than one day, the offender is liable to a separate penalty, without notice and without a separate count being laid, for each day that the contravention occurs.
142 Section 23 is repealed and the following substituted:
23 (1) The board may make regulations of general application, or may make an order related to a specific location or well, governing the drilling of wells and the production and conservation of geothermal resources, including regulations and orders for the following purposes and respecting the following matters:
(a) prohibiting the drilling of a well at any place within a prescribed distance of any boundary, roadway, road allowance, right of way, building of any specified type or any specified work;
(b) requiring the holder of a well authorization to submit an application and obtain the approval of the commission before
(i) deepening a well beyond the formation from which production is being taken or has been taken,
(ii) recompletion of a well by perforating any casing with a view to producing a geothermal resource from any formation other than that from which production is being taken or has been taken,
(iii) suspending drilling,
(iv) ceasing normal producing operations,
(v) resuming drilling after a previous completion, suspension or abandonment of a well,
(vi) resuming production after production stops,
(vii) reworking a well to alter its producing characteristics, or
(viii) abandoning a well;
(c) prescribing the conditions under which drilling may be carried out in water covered areas, and any special measures to be taken;
(d) prescribing the measures to be adopted to confine geothermal resources water encountered during drilling to its original stratum, and to protect the contents of the stratum from infiltration, inundation and migration;
(e) prescribing the minimum standard of tools, casing, equipment and materials that may be used for drilling, development and production of geothermal resources;
(f) to regulate the drilling of multizone wells, prohibit completion of a well as a multizone well without the permission of the commission, prohibit the use of a well for the production from or injection to more than one zone without the approval of the commission and authorize the commission to grant permission or approval subject to conditions the commission considers necessary;
(g) prescribing measures for the protection of petroleum and natural gas deposits, coal seams, mineral deposits and any workings in them;
(h) requiring the provision of adequate well casing and proper anchorage and cementation;
(i) requiring and prescribing samples, tests, analyses, surveys, logs, records, other information respecting a geothermal resource or operation, the method of taking samples and submission of records and information to the commission;
(j) prescribing the measures to be taken before drilling begins and during drilling and production to conserve geothermal resources and water;
(k) prescribing or limiting the methods of operation to be used during drilling and in the subsequent management of a well and the conduct of an operation for any purpose, including
(i) the prevention and extinguishing of fires, and
(ii) the prevention of wells flowing out of control;
(l) regulating the location and equipping of production facilities;
(m) regulating the conditioning or reconditioning of wells by mechanical, chemical or explosive means;
(n) requiring the inspection of wells both during and after drilling;
(o) requiring the capping or closing in of wells for the purpose of preventing waste;
(p) requiring the cleaning out of a well;
(q) regulating and prohibiting the release of well records and well data;
(r) the naming of wells and production facilities;
(s) measures to contain and eliminate spillage;
(t) regulating production from a geothermal well;
(u) the general conservation of geothermal resources, their waste or improvident disposition, and any matter incidental to the development, drilling, operation and production of geothermal resources;
(v) the methods and units to be used for the measurement of geothermal resources, and the standard conditions to which the measurements are to be converted;
(w) the revocation and suspension of well authorizations;
(x) the imposition and form of security required for the development, drilling or operation of or production from a well, and the amount or method of calculation of that security;
(y) subject to the approval of Treasury Board, respecting fees;
(z) conditions that may be imposed on well authorizations, including conditions respecting their expiry.
(2) A regulation or order made under subsection (1) may provide that the commission may, by order, in relation to a particular location or well and subject to conditions the commission specifies, exempt a person from the application of all or part of the regulation or order.
143 Section 24 (2) is amended
(a) by repealing paragraphs (a) and (b) and substituting the following:
(a) establishing the conditions under which persons are eligible to apply for the issue and renewal of permits, leases, registrations, recordings and other rights, privileges and services under this Act, and the procedures to be followed and the fees to be paid by them;
(b) the revocation and suspension of permits and leases by the minister in circumstances specified in the regulations, and the powers to be exercisable by the minister for those purposes; ,
(b) in paragraph (c) by striking out "section 36 of the Petroleum and Natural Gas Act" and substituting "the Oil and Gas Activities Act",
(c) by repealing paragraph (e) and substituting the following:
(e) establishing the conditions under which permits and leases may be transferred; ,
(d) by repealing paragraph (h), and
(e) by adding the following paragraphs:
(p) the application, with or without modification, of regulations made under section 103 or 104 of the Oil and Gas Activities Act to a permittee or lessee;
(q) the unitization of a field for the purposes of drilling for or producing a geothermal resource;
(r) the disclosure of records, reports and data required to be kept under this Act.
Land Surveyors Act
144 Section 75 (1) (g) of the Land Surveyors Act, R.S.B.C. 1996, c. 248, is repealed and the following substituted:
(g) section 112 (1) (g) of the Oil and Gas Activities Act; .
Land Title Act
145 Section 99 (1) (j) of the Land Title Act, R.S.B.C. 1996, c. 250, is amended by striking out "Petroleum and Natural Gas Act;" and substituting "Oil and Gas Activities Act;".
146 Section 218 (1) (c) is amended by striking out "corporation authorized to transport oil or gas, or both oil and gas, or solids, as defined in the Pipeline Act," and substituting "pipeline permit holder as defined in section 1 (2) of the Oil and Gas Activities Act,".
Mineral Land Tax Act
147 Section 13 (9) (c) of the Mineral Land Tax Act, R.S.B.C. 1996, c. 290, is amended by striking out "an exploration permit" and substituting "a permit, drilling licence or lease".
Mines Act
148 Section 16 of the Mines Act, R.S.B.C. 1996, c. 293, is amended by striking out "the Pipeline Act" and substituting "section 1 (2) of the Oil and Gas Activities Act".
Muskwa-Kechika Management Area Act
149 Section 8 (2) of the Muskwa-Kechika Management Area Act, S.B.C. 1998, c. 38, is amended by striking out "Part 4 of the Petroleum and Natural Gas Act." and substituting "the Oil and Gas Activities Act."
Oil and Gas Commission Act
150 The Oil and Gas Commission Act, S.B.C. 1998, c. 39, is repealed.
Park Act
151 Section 33 of the Park Act, R.S.B.C. 1996, c. 344, is amended
(a) in subsection (1) by striking out "an authorization," and substituting "a" and by adding "or a permit under the Oil and Gas Activities Act" after "Petroleum and Natural Gas Act",
(b) in subsection (2) by striking out "an authorization," and substituting "a" and by striking out "development or production" and substituting "development, production or other",
(c) in subsection (3) by striking out "An authorization," and substituting "A" and by striking out "proposed authorization," and substituting "proposed",
(d) in subsection (4) by striking out "an authorization," and substituting "a" and by striking out "the authorization," and substituting "the",
(e) in subsection (5) by striking out "an authorization," and substituting "a", and
(f) in subsection (5) (c) by striking out "authorization," and by adding "or the Oil and Gas Activities Act" after "the Petroleum or Natural Gas Act".
Petroleum and Natural Gas Act
152 Section 1 of the Petroleum and Natural Gas Act, R.S.B.C. 1996, c. 361, is amended
(a) by repealing the definitions of "certificate of restoration", "commission" and "commissioner" and substituting the following:
"certificate of restoration" means a certificate of restoration issued by the commission under section 41 of the Oil and Gas Activities Act;
"commission" means the commission continued under section 2 of the Oil and Gas Activities Act;
"commissioner" means the commissioner appointed under section 2 of the Oil and Gas Activities Act; ,
(b) by repealing the definition of "licence" and substituting the following:
"licence" means, in accordance with the context, any of the following obtained under this Act:
(a) a drilling or geophysical licence;
(b) a licence to develop or use a storage reservoir;
(c) a licence to explore for a storage reservoir; ,
(c) by repealing the definition of "licence" and substituting the following:
"licence" means, in accordance with the context, a drilling licence or a licence to explore for a storage reservoir under this Act; ,
(d) by repealing the definition of "multizone well",
(e) by adding the following definitions:
"oil and gas activity" has the same meaning as in the Oil and Gas Activities Act;
"related activity" has the same meaning as in the Oil and Gas Activities Act; ,
(f) by repealing the definition of "spacing area" and substituting the following:
"spacing area" means an area of the land surface or subsurface as prescribed by regulation; ,
(g) in the definition of "storage reservoir" by striking out "storage and recovery" and substituting "disposal, storage or recovery" and by striking out "petroleum or natural gas;" and substituting "petroleum, natural gas, water produced in relation to the production of petroleum or natural gas, waste or any other prescribed substance;",
(h) by adding the following definition:
"storage well" means a well in which casing is run and that, in the opinion of the commission, is used or is capable of being used to dispose of or produce petroleum or natural gas, water produced in relation to the production of petroleum or natural gas, waste or any other prescribed substance into or from a storage reservoir; ,
(i) in the definition of "test hole" by adding "a storage reservoir or" after "about",
(j) by repealing the definition of "test hole",
(k) by repealing the definition of "unitized operation" and substituting the following:
"unitized operation" means
(a) the development or production of petroleum and natural gas, the implementation of a program for the conservation of petroleum and natural gas, or the coordinated management of interests in them, or
(b) the development and operation of a storage reservoir
in, on or under a location, part of a location or a number of locations combined for that purpose under a unitization agreement under this Act; ,
(l) by repealing the definition of "well" and substituting the following:
"well" means a hole in the ground
(a) made or being made by drilling, boring or any other method to obtain petroleum or natural gas,
(b) made or being made by drilling, boring or any other method to explore for, develop or use a storage reservoir for the storage or disposal of petroleum, natural gas, water produced in relation to the production of petroleum or natural gas, waste or any other prescribed substance,
(c) used, drilled or being drilled to inject natural gas, water produced in relation to the production of petroleum or natural gas or other substances into an underground formation in connection with the production of petroleum or natural gas,
(d) used to dispose of petroleum, natural gas, water produced in relation to the production of petroleum or natural gas, waste or any other prescribed substance into a storage reservoir, or
(e) used, drilled or being drilled to obtain geological or geophysical information respecting petroleum or natural gas,
and includes a water source well; , and
(m) in the definition of "zone" by striking out everything after "for the purposes of" and substituting "the administration of petroleum and natural gas rights or storage and disposal rights."
153 Section 4 is amended
(a) in subsection (1) by striking out "or an employee of the commission authorized by it", and
(b) in subsection (2) by striking out "or of the commission".
154 Section 7 is repealed and the following substituted:
7 (1) Subject to subsection (2) and section 9, on submission by an operator of plans or information required by the commission, the commission may authorize, subject to any terms the commission considers appropriate, the operator to enter, occupy or use Crown land to carry out an oil and gas activity in accordance with the Oil and Gas Activities Act.
(2) The Lieutenant Governor in Council may make regulations respecting the criteria the commission must use in exercising its discretion under subsection (1).
155 Section 9 is amended
(a) in subsections (1) and (2) by striking out "to explore for, develop or produce petroleum or natural gas or explore for, develop or use a storage reservoir" and substituting "to carry out an oil and gas activity in accordance with the Oil and Gas Activities Act", and
(b) in subsection (3) by striking out "required" and substituting "issued under the Oil and Gas Activities Act".
156 Sections 10 and 11 (2) are amended by striking out "to explore for, develop or produce petroleum or natural gas or explore for, develop or use a storage reservoir" and substituting "to carry out an oil and gas activity in accordance with the Oil and Gas Activities Act".
157 Section 16 is amended
(a) in subsection (1) (a) by striking out "to explore for, develop or produce petroleum or natural gas or explore for, develop or use a storage reservoir or for a connected or incidental purpose" and substituting "to carry out an oil and gas activity or a related activity in accordance with the Oil and Gas Activities Act", and
(b) in subsection (1) (b) by striking out "entry or occupation" and substituting "entry, occupation or use".
158 Section 18 (3) is amended by adding "to carry out an oil and gas activity in accordance with the Oil and Gas Activities Act" after "to enter, occupy or use the land".
159 Section 25 (1) is amended by adding ", to the commission" after "to the applicant".
160 Part 4 is repealed.
161 Section 38 is repealed and the following substituted:
38 (1) Subject to subsection (2), the holder of a permit has the exclusive right to apply under the Oil and Gas Activities Act to do exploratory drilling for petroleum, natural gas or both on land owned by the government and within the boundaries of the location of the permit.
(2) The issue or existence of a permit does not prohibit a person other than the holder of the permit from carrying out geological work or geophysical exploration in accordance with the Oil and Gas Activities Act.
162 Section 43 (1) is amended by adding "subject to the Oil and Gas Activities Act," after "cause to be done,".
163 Section 50 (2) is repealed and the following substituted:
(2) The holder of a petroleum and natural gas lease has
(a) the exclusive right to produce, in accordance with this Act, both the petroleum and natural gas from the location of the lease, and
(b) subject to any rights conferred under a storage lease issued under section 130 before the lease under this section is issued, the right to store or dispose of natural gas, water produced in relation to the production of petroleum or natural gas or other substances associated with petroleum or natural gas exploration, production or processing into an underground formation in the location of the lease.
164 Section 50 (2) (a) is amended by adding "and the Oil and Gas Activities Act" after "this Act".
165 Section 53 is amended
(a) in subsection (1) by adding "and the Oil and Gas Activities Act" after "complied with this Act", and
(b) in subsection (3) by adding "or to the commission for any reason under the Oil and Gas Activities Act" after "petroleum or natural gas".
166 Section 58 (1) (b) is repealed and the following substituted:
(b) is subject to a special project designated under section 75 of the Oil and Gas Activities Act, .
167 Section 60 is amended
(a) in subsection (2) by adding ", subject to the Oil and Gas Activities Act," after "requiring the holder",
(b) in subsection (5) by adding "in accordance with the Oil and Gas Activities Act" after "abandoned or completed", and
(c) in subsection (5) by adding "in accordance with the Oil and Gas Activities Act" after "on the lease location".
168 Section 61.1 (1) is amended in the definition of "eligible spacing area" by striking out "a scheme approved under section 100" and substituting "a special project under section 75 of the Oil and Gas Activities Act".
169 Section 65 (1) is amended
(a) by adding "and the Oil and Gas Activities Act" after "For the purposes of this Act",
(b) by repealing paragraph (a) and substituting the following:
(a) the boundaries of a unit, and the vertical planes extending directly beneath each of those boundaries, are the boundaries of a normal spacing area for petroleum wells; , and
(c) by repealing paragraph (c) (i) and substituting the following:
(i) the boundary of an area comprising 2 units by 2 units, and the vertical planes extending directly beneath each of the boundaries of that area, are the boundaries of a normal spacing area for a natural gas well, and .
170 Section 65.1 is amended
(a) by repealing subsections (1) and (2) substituting the following:
(1) The minister may make regulations respecting other than normal spacing in an area of British Columbia if the minister is satisfied that the regulations
(a) would facilitate petroleum or natural gas exploration and development,
(b) are necessary to promote the conservation of petroleum and natural gas resources, or
(c) are necessary to protect the environment.
(2) The commission, by order, may on its own initiative or on application under section 75 (3) of the Oil and Gas Activities Act approve other than normal spacing for a pool or portion of a pool on a parcel of land or a location if
(a) the commission is satisfied that it would facilitate drilling and production operations, and
(b) the parcel of land or location, as the case may be, is not subject to a regulation made under subsection (1). ,
(b) in subsection (3) by striking out "or order under subsection (1) or (2)" and substituting "under subsection (1) or an order under subsection (2)", and
(c) by repealing subsection (4).
171 Section 67 is amended
(a) in subsection (1) by striking out "the commission may issue a well authorization for the drilling of a natural gas well on it, but", and
(b) by repealing subsection (2).
172 Section 68 (3) (b) is amended by adding ", subject to the Oil and Gas Activities Act," after "order".
173 Section 78 is amended by striking out everything after "conservation plan" and substituting "or a special project under section 75 of the Oil and Gas Activities Act."
174 Section 85 (c) is repealed and the following substituted:
(c) the applicant is entitled
(i) to drill the well for which the authorization is requested,
(ii) to drill for and produce petroleum or natural gas, or both, or
(iii) to drill for and operate a storage reservoir,
as one of the following:
(iv) the holder of the location of a permit, drilling licence or lease under section 50 on which the well is to be drilled, or by agreement with the holder, if the application relates to land in which the petroleum and natural gas rights are held by the government;
(v) the holder of the location of a storage reservoir lease under section 130 on which the well is to be drilled, or by agreement with the holder of the location;
(vi) the owner of the petroleum and natural gas rights, or by agreement with the owner, if the application relates to land in which the petroleum and natural gas rights are not held by the government; .
175 Section 86 (e) is amended by striking out "or" at the end of subparagraph (i) and by adding the following subparagraph:
(i.1) as the holder of the location of a storage reservoir lease under section 130 on which the well is to be drilled, or by agreement with the holder of the location, or .
176 Section 88 is amended by striking out "drills a well or produces petroleum or natural gas from a well" and substituting "drills a well, produces petroleum or natural gas from a well or operates a storage well".
177 Section 96 (1) (g) is amended by striking out everything after "for injecting or disposing of" and substituting "petroleum, natural gas, water produced in relation to the production of petroleum or natural gas, waste or any other prescribed substance into a storage reservoir;".
178 Section 101 is amended by striking out "petroleum or natural gas" and substituting "petroleum, natural gas, water produced in relation to the production of petroleum or natural gas or other substances".
179 Section 102 is amended
(a) in subsection (1) by striking out "no production is to be permitted from" and substituting "no production or disposal is to be permitted from or into", and
(b) in subsection (3) by striking out "or production operation" and substituting ", production, storage or disposal operation".
180 Section 103 is amended
(a) in subsection (1) by striking out "natural gas and water" and substituting "natural gas, water produced in relation to the production of petroleum or natural gas and other substances", and
(b) in subsection (2) by striking out "natural gas or water" and substituting "natural gas, water produced in relation to the production of petroleum or natural gas or other substances".
181 Section 104 (1) is amended by adding the following paragraph:
(b.1) are entitled to enter on and inspect any well or place at which substances are collected, processed, handled or treated for purposes of storage in or disposal into a storage reservoir, .
182 Part 12 is repealed.
183 Section 110 is amended by adding "and the Oil and Gas Activities Act" after "under this Act".
184 Section 111 is amended by adding ", subject to the Oil and Gas Activities Act," after "may produce".
185 Section 114 (1) is amended by striking out "a field or pool or a part of it" and substituting "a field, pool or storage reservoir, or a part of any of them".
186 Section 114 (1) is amended by striking out "subject to compliance with section 100" and substituting "subject to compliance with any applicable requirements under section 75 of the Oil and Gas Activities Act".
187 Section 116 is repealed.
188 Section 118 (a) is repealed and the following substituted:
(a) this Act, the regulations under this Act, the Oil and Gas Activities Act or the regulations under that Act, .
189 Section 119 (1) is amended by striking out "claims under this Act" and substituting "requirements under this Act and under the Oil and Gas Activities Act".
190 Section 121 (1) is amended by adding "or a storage reservoir is being operated" after "natural gas has been discovered".
191 Section 122 (1) is amended by adding "or a storage reservoir lease" after "natural gas title".
192 Section 123 is repealed.
193 Section 126 is amended
(a) by repealing subsection (1) and substituting the following:
(1) A person must not explore for a storage reservoir unless
(a) either
(i) the person is licensed by the division head under subsection (3), or
(ii) the exploration consists only of geophysical exploration, and
(b) the exploration is carried out in accordance with the Oil and Gas Activities Act. , and
(b) in subsection (4) by striking out everything after "storage reservoir" and substituting "unless the commission authorizes that exploration under the Oil and Gas Activities Act."
194 Sections 131 and 132 (b) and (c) are repealed.
195 Section 133 is amended
(a) by repealing subsection (2) (f) and (g),
(b) in subsection (2) (i) by adding "who operate a storage reservoir or" after "requiring a person or a class of persons",
(c) by repealing subsection (2) (p) (ii) and (q),
(d) by repealing subsection (2) (s) and substituting the following:
(s) make regulations for the unitization of a pool, field or reservoir for drilling, producing, storing or disposing; ,
(e) in subjection (2) (t) by striking out "drilling or other",
(f) in subsection (2) by adding the following paragraph:
(v) prescribing substances for the purposes of the definitions of "storage reservoir" and "storage well" in section 1, including water required for the storage, recovery or disposal of another prescribed substance. , and
(g) in subsection (3) by striking out "the commissioner or".
196 The following section is added:
133.1 (1) To promote the efficient use of the petroleum and natural gas reserves in British Columbia, the minister, by regulation, may limit the total amount of petroleum or natural gas that may be produced from a well, field or pool to an amount specified in the regulation or order.
(2) If satisfied that it is necessary to do so because of an emergency or a disruption of service, the minister, by order, may determine
(a) the maximum amount of petroleum or natural gas that may be produced from a well, field or pool and distributed through gathering and processing facilities, and
(b) the method by which the production and distribution referred to in paragraph (a) must be carried out.
(3) The commission may, by order, allocate the amount of petroleum or natural gas that may be produced from a pool in a manner among the wells in the pool so that each owner may produce or receive a share of the petroleum or natural gas that is fair in the opinion of the commission.
197 Section 135 is repealed and the following substituted:
135 If a holder of a permit, licence or lease fails to comply with a provision of
(a) this Act, the regulations or a notice or an order under this Act or the regulations,
(b) the Oil and Gas Activities Act or the regulations under that Act, or
(c) a term, promise or condition of the holder's permit, licence or lease,
the minister may, after giving 60 days' notice to the holder of the location, cancel the permit, licence or lease.
198 Section 136 (1) is amended by striking out "or the commission" and "or the commission's".
199 Section 137 is repealed.
Pipeline Act
200 The Pipeline Act, R.S.B.C. 1996, c. 364, is repealed.
Safety Standards Act
201 Section 3 (2) of the Safety Standards Act, S.B.C. 2003, c. 39, is amended by striking out "a pipeline as defined in the Pipeline Act," and substituting "a pipeline as defined in section 1 (2) of the Oil and Gas Activities Act,".
Securities Act
202 Section 1 (1) of the Securities Act, R.S.B.C. 1996, c. 418, is amended by repealing paragraph (o) of the definition of "security" and substituting the following:
(o) a permit under the Oil and Gas Activities Act, .
Utilities Commission Act
203 Section 65 of the Utilities Commission Act, R.S.B.C. 1996, c. 473, is amended by adding the following subsections:
(3.1) Without limiting subsection (2) (b) or (3), the commission may establish conditions with respect to a common carrier in relation to any of the following matters:
(a) a toll that may be charged by the common carrier;
(b) extensions, improvements or abandonment of service.
(3.2) The commission may order that section 43 applies with respect to a common carrier as though the common carrier were a public utility referred to in that section.
Water Act
204 Section 1 of the Water Act, R.S.B.C. 1996, c. 483, is amended in paragraph (g) of the definition of "well" by striking out "Petroleum and Natural Gas Act," and substituting "Oil and Gas Activities Act".
Wildfire Act
205 Section 1 of the Wildfire Act, S.B.C. 2004, c. 31, is amended in paragraph (b) of the definition of "official" by striking out "minister responsible for the Oil and Gas Commission Act," and substituting "the commissioner as defined in section 1 (2) of the Oil and Gas Activities Act,".
Wildlife Act
206 Section 7 (2) of the Wildlife Act, R.S.B.C. 1996, c. 488, is amended by striking out "Petroleum and Natural Gas Act" and substituting "Oil and Gas Activities Act".
207 This Act comes into force by regulation of the Lieutenant Governor in Council.