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

Oil and Gas Activities Act

1 Section 1 (2) of the Oil and Gas Activities Act, S.B.C. 2008, c. 36, is amended in the definition of "specified provision" by repealing paragraph (c) and substituting the following:

(c) any of the following provisions of the Heritage Conservation Act:

(i) section 12 [permits];

(ii) section 14 [heritage inspection and heritage investigation]; .

2 Section 18 (2) (b) is amended by striking out "tax" and substituting "levies authorized".

3 Section 26 is amended

(a) by adding the following subsection:

(0.1) In this section, "associate", in relation to a permit holder or applicant, means any of the following, as applicable:

(a) an agent of the applicant or permit holder;

(b) a director, officer or shareholder of the applicant or permit holder;

(c) a person who, in the opinion of the commission,

(i) may have influence over the applicant or permit holder, or

(ii) may be able to affect the activities permitted by the permit. , and

(b) in subsection (2) by adding ", or an associate of the applicant or permit holder," after "the applicant or permit holder".

4 Section 29 is amended

(a) in subsections (1) and (2) by striking out "person to whom the permit holder wants the permit to be transferred" and substituting "person who wants to acquire the permit",

(b) in subsection (1.1) by striking out "person to whom the authorization holder wants the authorization to be transferred" and substituting "person who wants to acquire the authorization", and

(c) by adding the following subsections:

(1.2) Despite subsection (1), an application under that subsection is not required to be signed by the permit holder if

(a) the permit is cancelled under section 26 or 33,

(b) the permit is declared to be spent under section 27,

(c) the permit relates to an orphan site under section 45, or

(d) the commission is satisfied that the permit holder no longer exists or cannot be located.

(2.2) If the commission decides to grant an application under subsection (1) in relation to a permit described in subsection (1.2) (a) or (b), the permit is reinstated.

(2.3) If the commission decides to grant an application under subsection (1) in relation to a permit described in subsection (1.2) (c), the orphan site designation is cancelled.

5 Sections 29 (1.2) (a) and 40 (a) are amended by striking out "section 26 or 33" and substituting "section 26, 33 or 43.3".

6 Section 42 is amended

(a) by adding "transfer under section 29, a" before "cancellation, declaration or expiry referred to", and

(b) in paragraph (a) by adding "transfer," before "cancellation, declaration or expiry".

7 The following Part is added:

Part 3.1 – Dormant Sites

Definitions

43.1  In this Part:

"dormant site" means a site of an oil and gas activity that is a dormant site in accordance with the regulations;

"liability reduction plan" means a plan under section 43.4 (2);

"portfolio", in relation to a permit holder, means all of the sites of an oil and gas activity that are sites for which the permit holder holds a permit;

"shutdown obligations" means the obligations under section 40 (d) to (f).

Requirements to reduce liability

43.2  Subject to section 43.4, a permit holder must comply with the prescribed requirements if the permit holder's portfolio

(a) includes one or more dormant sites, and

(b) meets the prescribed criteria, if any.

Automatic cancellation of permit

43.3  Subject to section 43.4, if a site of an oil and gas activity in a prescribed class of sites is a dormant site for longer than the prescribed period of time, the permit in relation to the site is cancelled on the day immediately after that period.

Liability reduction plan

43.4  (1) Sections 43.2 and 43.3 do not apply in relation to a site of an oil and gas activity if the site is subject to an approved liability reduction plan.

(2) Subject to the regulations, a permit holder may submit to the commission a plan to reduce the permit holder's shutdown obligations in relation to one or more sites.

(3) The commission may approve a liability reduction plan.

(4) An approved liability reduction plan is an order of the commission.

(5) Without limiting any other power of the commission, if a permit holder does not comply with an approved liability reduction plan, the commission may revoke the approval of that plan.

8 Section 44 is amended in paragraph (a) of the definition of "former permit holder" by striking out "section 26 or 33" and substituting "section 26, 33 or 43.3".

9 Section 45 is amended

(a) in subsection (2) (a) (ii) by adding "or is satisfied that that permit holder or former permit holder no longer exists or cannot be located" after "gas road",

(b) in subsection (2) (b) by striking out "a person the commission has not been able to identify or by a person who is insolvent." and by adding the following subparagraphs:

(i) a person who is insolvent, or

(ii) a person the commission has not been able to identify or is satisfied no longer exists or cannot be located. ,

(c) in subsection (4) by striking out "and section 46 (4)" in paragraph (c) and by adding the following paragraph:

(c.1) money received by the commission specifically for a purpose set out in subsection (3); ,

(d) by adding the following subsection:

(4.1) For certainty, nothing in this section prevents the commission from depositing money not described in subsection (4) to the credit of the fund. , and

(e) in subsection (7) by adding "and may issue and file a certificate under section 93.1 (1) naming any of them" after "that debt".

10 The following section is added:

Reclamation of orphan sites – use of security

45.1  Despite section 45, if the commission receives money from the realization of security provided under section 30 in relation to an orphan site,

(a) the commission must deposit the money received to the credit of the fund,

(b) if applicable, the debt under section 45 (7) in relation to the orphan site is reduced by the amount of the money received, and

(c) subject to and in accordance with the regulations, the commission must, if the commission determines under section 45 (5) (c) that the orphan site has been satisfactorily restored, repay from the fund the portion, if any, of the money received that exceeds the sum of

(i) the debt under section 45 (7) in relation to the orphan site, and

(ii) the costs, estimated by the commission, of continuing to manage the orphaned site.

11 Section 46 (4) is repealed.

12 Section 47 is repealed and the following substituted:

Orphan site restoration levy

47  (1) Subject to this section, the board, for the purposes of raising revenue for the fund, may make regulations as follows:

(a) subject to the approval of Treasury Board,

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

(ii) establishing the amount to be raised by the levy;

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

(2) If a levy is imposed under this section, each permit holder who is required to pay the levy must pay the portion of the amount to be raised by the levy that is calculated in accordance with the following formula:

(3) For the purposes of subsection (2), the liability of a permit holder is the cost, estimated by the commission, to the permit holder of compliance with section 40 (d) to (f) in relation to all of the permits and authorizations held by the permit holder.

(4) An estimate under subsection (3) must be based on the situation of the permit holder on a date specified in the regulation imposing the levy, which date

(a) must be in the calendar year in which the levy is imposed, and

(b) subject to paragraph (a), may be a date before the date that regulation comes into force.

(5) For certainty, the board may impose more than one levy under this section in a calendar year.

13 Section 48 (1) (a) is repealed and the following substituted:

(a) a reference to "the Act" is to be read as a reference to all of the following:

(i) this Act;

(ii) the specified enactments, other than the Environmental Management Act and the Water Sustainability Act;

(iii) section 118 of the Petroleum and Natural Gas Act; .

14 Section 49 is amended

(a) in subsection (1) by renumbering paragraphs (a) and (b) as paragraphs (d) and (e), respectively,

(b) in subsection (1) by striking out everything before paragraph (d) and substituting the following:

(1) An official may issue an order to

(a) a person carrying out an oil and gas activity or a related activity, with respect to those activities or any of the person's obligations under the Act or the regulations,

(b) a permit holder, former permit holder, authorization holder or former authorization holder, with respect to any of the person's obligations under the Act or the regulations or the person's permit or authorization, if any, or

(c) a person who may enter on land under section 23, with respect to that entry,

if, in the opinion of the official, ,

(c) in subsection (3) by adding "be in writing and must" after "must", and

(d) in subsection (4) (b) by striking out "subsection (1) (a)" and substituting "subsection (1) (d)".

15 Section 52 is amended

(a) by repealing subsection (1) and substituting the following:

(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

(i) contain and eliminate spillage, or

(ii) protect public safety, and

(b) order

(i) any permit holder or authorization 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 referred to in paragraph (a). ,

(b) in subsections (2) and (3) (b) by striking out "for the spillage or for the likely source or cause of the spillage" and substituting "for the emergency or for any related spillage or the likely source or cause of that spillage", and

(c) in subsection (3) by striking out "measures to contain and eliminate spillage" and substituting "measures referred to in subsection (1) (a)".

16 Section 75 (2) (b) is amended

(a) by striking out "cancel or suspend" and substituting "cancel, suspend or amend",

(b) in subparagraph (i) by striking out "or", and

(c) by adding the following subparagraphs:

(iii) if the commission considers that the designation is spent, or

(iv) if the commission considers that the designation is no longer appropriate, including, without limitation, for reasons of

(A) public safety,

(B) protection of the environment, or

(C) conservation of petroleum and natural gas resources.

17 Section 93 is amended by striking out "a permit holder, producer or another person" and substituting "a person", by adding ", other than section 18," after "under this Act" and by striking out "that permit holder, producer or person" and substituting "that person".

18 The following section is added to Part 8:

Certificate of debts due

93.1  (1) If a person fails to pay an amount owing to the commission under this Act, other than section 18, the commissioner may issue, and file with a court having jurisdiction, a certificate specifying the amount owed and the name of the person who owes it.

(2) If a person fails to pay an amount owing to the government under this Act, the minister may issue, and file with a court having jurisdiction, a certificate specifying the amount owed and the name of the person who owes it.

(3) A certificate filed under this section has the same force and effect, and all proceedings may be taken on the certificate, as if it were a judgment of the court in favour of the commission or the government, as the case may be, for the recovery of a debt in the amount specified in the certificate against the person named in the certificate.

19 Section 100 is amended

(a) by repealing subsections (1) and (2) (d) to (i), (l) and (m), and

(b) in subsection (2) (j) by striking out "giving notice of tax payable, collection of tax, and".

20 Section 100 (2) is amended by adding the following paragraph:

(n) respecting repayments under section 45.1 (c), including, without limitation, regulations prescribing to whom repayments are to be made or circumstances under which repayments are not required to be made.

21 Section 102 is amended by adding "the commission or" before "an employee" and by adding "47 or" before "110".

22 Section 106 (3) is amended by striking out "section 111 or" and substituting "section 111, 111.1 (c) or".

23 Section 110 is amended

(a) by renumbering the section as section 110 (1),

(b) in subsection (1) (b) by adding "respecting payment of the levy and" before "providing for the imposition of penalties", and

(c) by adding the following subsection:

(2) For certainty, the board may impose more than one levy under this section in a calendar year.

24 The following section is added:

Dormant sites

111.1  (1) The board may make regulations respecting dormant sites for the purposes of Part 3.1, including, without limitation, regulations as follows:

(a) respecting when a site of an oil and gas activity is a dormant site, including, without limitation, regulations prescribing activities that must be carried out or a level of activity that must be maintained for a site not to be a dormant site;

(b) prescribing requirements for the purposes of section 43.2, including, without limitation, prescribing any requirements that may be prescribed under

(i) section 111 (1) (e), (f), (g), (h), (h.1) or (h.2) or (2) (b), or

(ii) section 112 (h) for the purposes of section 40 (e);

(c) prescribing criteria for the purposes of section 43.2;

(d) prescribing classes of sites and periods of time for the purposes of section 43.3;

(e) respecting plans for the purposes of section 43.4 (2), including, without limitation, regulations respecting eligibility to submit plans or the form or content of plans.

(2) Without limiting section 106, in making a regulation under this section, the board may make different regulations for different classes of permit, permit holder, site or portfolio.

Petroleum and Natural Gas Act

25 Section 49.2 (2) of the Petroleum and Natural Gas Act, R.S.B.C. 1996, c. 361, is repealed and the following substituted:

(2) If a holder of a drilling licence fails to comply with subsection (1), the drilling licence expires on the prescribed date unless, on or before that date, the holder pays

(a) the rent required under that subsection, and

(b) in addition, the prescribed penalty.

26 Section 62 is amended

(a) in subsections (1) and (2) by adding "or under the regulations" after "section 58 (3), 61 or 61.1", and

(b) in subsection (1) by striking out "the prescribed rental and".

27 Section 71 (2) is amended by adding ", in accordance with the regulations," after "publication" and by striking out "in the Gazette".

28 Section 133 (2) is amended by adding the following paragraphs:

(e.1) make regulations respecting the expiry of leases and drilling licences, including, without limiting this, regulations

(i) authorizing the minister, in the prescribed circumstances, to continue leases and drilling licences,

(ii) prescribing fees and penalties for continuations authorized under subparagraph (i), including different fees and penalties for different continuations, and

(iii) increasing, decreasing or waiving, for a continuation authorized under subparagraph (i), the rent prescribed for the purposes of section 49.2 or 54, as the case may be;

(o.1) respecting the publication of notices under section 71 (2); .

 
Consequential and Related Amendments

Miscellaneous Statutes Amendment Act, 2000

29 Section 44 of the Miscellaneous Statutes Amendment Act, 2000, S.B.C. 2000, c. 9, is repealed.

Natural Gas Development Statutes Amendment Act, 2014

30 Section 37 (a) of the Natural Gas Development Statutes Amendment Act, 2014, S.B.C. 2014, c. 10, as it enacts section 133 (2) (e.1) of the Petroleum and Natural Gas Act, R.S.B.C. 1996, c. 361, is repealed.

Commencement

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

 
Explanatory Notes

SECTION 1: [Oil and Gas Activities Act, section 1] adds authority for the commission to exercise powers under section 14 of the Heritage Conservation Act.

SECTION 2: [Oil and Gas Activities Act, section 18] is consequential to the amendment by this Bill to section 47 of the Act.

SECTION 3: [Oil and Gas Activities Act, section 26] defines "associate" and clarifies that the commission may inquire into the conduct of associates of applicants and permit holders.

SECTION 4: [Oil and Gas Activities Act, section 29] authorizes the commission to transfer certain permits without the signature of the permit holder.

SECTION 5: [Oil and Gas Activities Act, sections 29 and 40] is consequential to the addition by this Bill of section 43.3 to the Act.

SECTION 6: [Oil and Gas Activities Act, section 42] provides that a transfer of a permit does not relieve a person of certain consequences or liabilities.

SECTION 7: [Oil and Gas Activities Act, Part 3.1] sets out a scheme for dormant sites.

SECTION 8: [Oil and Gas Activities Act, section 44] is consequential to the addition by this Bill of section 43.3 to the Act.

SECTION 9: [Oil and Gas Activities Act, section 45]

• authorizes the commission to designate an orphan site if the commission is satisfied that the permit holder no longer exists or cannot be located;
• makes an amendment that is consequential to the amendment by this Bill to section 46 of the Act;
• clarifies what money must or may be deposited to the credit of the orphan site reclamation fund;
• authorizes recovery of debts under section 45 (7) of the Act using the certificate scheme added by this Bill as section 93.1 of the Act.

SECTION 10: [Oil and Gas Activities Act, section 45.1] sets out rules that apply to money received from security that is realized in relation to an orphan site.

SECTION 11: [Oil and Gas Activities Act, section 46] repeals an unnecessary provision.

SECTION 12: [Oil and Gas Activities Act, section 47] authorizes a levy to raise funds from permit holders for the orphan site reclamation fund.

SECTION 13: [Oil and Gas Activities Act, section 48] adds authority for the commission to take enforcement actions under the Act in relation to a contravention of section 118 of the Petroleum and Natural Gas Act.

SECTION 14: [Oil and Gas Activities Act, section 49]

• expands the class of orders that may be issued under section 49 of the Act;
• relocates the requirement that orders be issued in writing.

SECTION 15: [Oil and Gas Activities Act, section 52] expands the powers of the commission to take action in the event of an emergency.

SECTION 16: [Oil and Gas Activities Act, section 75] authorizes the commission to amend special project designations and expands the powers of the commission to cancel or suspend them.

SECTION 17: [Oil and Gas Activities Act, section 93] is consequential to the amendment by this Bill to section 47 of the Act and the addition by this Bill of section 93.1 to the Act.

SECTION 18: [Oil and Gas Activities Act, section 93.1] is self-explanatory.

SECTION 19: [Oil and Gas Activities Act, section 100] is consequential to the amendment by this Bill to section 47 of the Act.

SECTION 20: [Oil and Gas Activities Act, section 100] adds a regulation-making power in relation to the addition by this Bill of section 45.1 to the Act.

SECTION 21: [Oil and Gas Activities Act, section 102] adds authority for the Lieutenant Governor in Council to designate the commission as the collector of a levy under the Act.

SECTION 22: [Oil and Gas Activities Act, section 106] adds authority for the board to make regulations providing for exemptions from requirements in relation to dormant sites.

SECTION 23: [Oil and Gas Activities Act, section 110] is consequential to the amendment by this Bill to section 47 of the Act.

SECTION 24: [Oil and Gas Activities Act, section 111.1] adds regulation-making powers in relation to the addition by this Bill of Part 3.1 to the Act.

SECTION 25: [Petroleum and Natural Gas Act, section 49.2] allows for late payment of rent and provides for a penalty.

SECTION 26: [Petroleum and Natural Gas Act, section 62]

• clarifies that leases may be continued under the regulations;
• removes a reference to the prescribed rental.

SECTION 27: [Petroleum and Natural Gas Act, section 71] requires notices of intended disposal to be published in accordance with the regulations.

SECTION 28: [Petroleum and Natural Gas Act, section 133]

• expands and clarifies regulation-making powers to continue leases and drilling licences;
• adds a regulation-making power in relation to the amendment by this Bill to section 71 of the Act.

SECTION 29: [Miscellaneous Statutes Amendment Act, 2000, section 44] repeals an unnecessary amendment.

SECTION 30: [Natural Gas Development Statutes Amendment Act, 2014, section 37] repeals an unnecessary amendment.