• (e) economically efficient infrastructures.

Marginal note:Limitations on pipelines

• 4.01 (1) A holder of an authorization under paragraph 5(1)(b) to construct or operate a pipeline shall not, without the leave of the National Energy Board,

  • (a) sell, transfer or lease to any person its pipeline, in whole or in part;

  • (b) purchase or lease any pipeline from any person;

  • (c) enter into an agreement for amalgamation with any person; or

  • (d) abandon the operation of a pipeline.

• Definition of “pipeline”

  (2) For the purposes of paragraph (1)(b), “pipeline” includes a pipeline as defined in section 2 or any other pipeline.

• Marginal note:Exception

  (3) Despite paragraph (1)(a), leave shall only be required if the holder sells, transfers or leases any part of its pipeline that is capable of being operated for the transmission of oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas.

Marginal note:Board guidelines and interpretation notes

• 5.3 (1) The National Energy Board may issue and publish, in any manner the Board considers appropriate, guidelines and interpretation notes with respect to the application and administration of section 5, 5.1 or 13.02 or any regulations made under section 13.17 or 14.

Jurisdiction and Powers of the National Energy Board

Marginal note:Jurisdiction

• 5.31 (1) The National Energy Board has full and exclusive jurisdiction to inquire into, hear and determine any matter

  • (a) if it appears to the National Energy Board that any person failed to do any act, matter or thing required to be done by this Act, any regulation, order or direction made under this Act, or an operating licence or authorization issued under section 5, or that any person has done or is doing any act, matter or thing contrary to or in contravention of this Act, any regulation, order or direction made under this Act, or an operating licence or authorization issued under section 5; or

  • (b) if it appears to the National Energy Board that the circumstances may require the Board, in the public interest, to make any order or give any direction, leave, sanction or approval that by law it is authorized to make or give, or with respect to any act, matter or thing that is prohibited, sanctioned or required to be done by this Act, any regulation, order or direction made under this Act, or an operating licence or authorization issued under section 5.

• Marginal note:Of its own motion

  (2) The National Energy Board may, of its own motion, inquire into, hear and determine any matter or thing that under this Act it may inquire into, hear and determine.

• Marginal note:Matters of law and fact

  (3) For the purposes of this Act, the National Energy Board has full jurisdiction to hear and determine all matters, whether of law or of fact.

Marginal note:Mandatory orders

5.32 The National Energy Board may

• (a) order and require any person to do, without delay, or within or at any specified time and in any manner set by the Board, any act, matter or thing that the person is or may be required to do under this Act, any regulation, order or direction made under this Act or an operating licence or authorization issued under section 5; and

• (b) prohibit the doing or continuing of any act, matter or thing that is contrary to this Act, any regulation, order or direction made under this Act or an operating licence or authorization issued under section 5.

Marginal note:Committee’s decisions and orders

5.33 Sections 5.31 and 5.32 do not apply to any act, matter or thing required by or contrary to any decision or order of the Committee.

Marginal note:Confidentiality

5.34 In any proceedings with respect to Part 0.1, the National Energy Board may take any measures and make any order that it considers necessary to ensure the confidentiality of any information likely to be disclosed in the proceedings if the Board is satisfied that

• (a) disclosure of the information could reasonably be expected to result in a material loss or gain to a person directly affected by the proceedings, or could reasonably be expected to prejudice the person’s competitive position; or

• (b) the information is financial, commercial, scientific or technical information that is confidential information supplied to the National Energy Board and

  • (i) the information has been consistently treated as confidential information by a person directly affected by the proceedings, and

  • (ii) the Board considers that the person’s interest in confidentiality outweighs the public interest in disclosure of the proceedings.

Marginal note:Confidentiality — security

5.35 In respect of any order, or in any proceedings, of the National Energy Board with respect to Part 0.1, the Board may take any measures and make any order that it considers necessary to ensure the confidentiality of information that is contained in the order or is likely to be disclosed in the proceedings if the Board is satisfied that

• (a) there is a real and substantial risk that disclosure of the information will impair the security of pipelines, buildings, structures or systems, including computer or communication systems, or methods employed to protect them; and

• (b) the need to prevent disclosure of the information outweighs the public interest in disclosure of orders and proceedings of the National Energy Board.

Marginal note:Conditional orders, etc.

• 5.36 (1) Without limiting the generality of any provision of this Act that authorizes the National Energy Board to impose terms and conditions in respect of any operating licence or authorization issued under section 5 or any of its orders, the Board may direct in any operating licence, authorization or order that it or any portion or provision of it shall come into force at a future time or on the happening of any contingency, event or condition specified in the operating licence, authorization or order or on the performance to the satisfaction of the Board of any conditions or requirements that the Board may impose in the operating licence, authorization or order, and the Board may direct that the whole or any portion of the operating licence, authorization or order shall have force for a limited time or until the happening of a specified event.

• Marginal note:Interim orders

  (2) The National Energy Board may, instead of making an order final in the first instance, make an interim order, and may reserve its decision pending further proceedings in connection with any matter.

Documents

Marginal note:Documents

• 5.37 (1) A holder of an authorization to construct or operate a pipeline issued under paragraph 5(1)(b) shall keep, in a form and manner determined by the National Energy Board, any documents, including any records or books of account, that the Board requires and that contain information that is determined by the Board to be necessary for the administration of this Act and any regulations made under it.

• Marginal note:Production and inspection

  (2) The holder shall produce those documents to the National Energy Board, or make them available to the Board or its designated representative, for inspection or copying at a time and under conditions set by the Board.

PART 0.1TRAFFIC, TOLLS AND TARIFFS

Interpretation

Marginal note:Definitions

13.01 The following definitions apply in this Part.

“holder”

« titulaire »

“holder” means a holder of an authorization to construct or operate a pipeline issued under paragraph 5(1)(b).

“tariff”

« tarif »

“tariff” means a schedule of tolls, terms and conditions, classifications, practices or rules and regulations applicable to the provision of a service by a holder and includes rules respecting the calculation of tolls.

“toll”

« droit »

“toll” includes any rate, charge or allowance charged or made

• (a) for the shipment, transportation, transmission, care, handling or delivery of oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas that is transmitted through a pipeline, or for storage or demurrage or the like;

• (b) for the provision of a pipeline when the pipeline is available and ready to provide for the transmission of oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas; and

• (c) in respect of the purchase and sale of gas that is the property of a holder and that is transmitted by the holder through its pipeline, from which is subtracted the cost to the holder of the gas at the point where it enters the pipeline.

Powers of Board

Marginal note:Regulation of traffic, etc.

13.02 The National Energy Board may make orders with respect to all matters relating to traffic, tolls or tariffs.

Filing of Tariff

Marginal note:Tolls to be filed

• 13.03 (1) A holder shall not charge any tolls except tolls that are

  • (a) specified in a tariff that has been filed with the National Energy Board and is in effect; or

  • (b) approved by an order of the Board.

• Marginal note:Tariff — gas

  (2) If gas transmitted by a holder through its pipeline is the property of the holder, the holder shall file with the National Energy Board true copies of all the contracts it makes for the sale of the gas, at the time they are made, and any amendments to those contracts made from time to time, and the true copies constitute, for the purposes of this Part, a tariff under subsection (1).

Marginal note:Commencement of tariff

13.04 If a holder files a tariff with the National Energy Board and the holder proposes to charge a toll referred to in paragraph (b) of the definition “toll” in section 13.01, the Board may establish the day on which the tariff is to come into effect and the holder shall not begin charging the toll before that day.

Just and Reasonable Tolls

Marginal note:Tolls to be just and reasonable

13.05 All tolls shall be just and reasonable and shall always, under substantially similar circumstances and conditions with respect to all traffic of the same description carried over the same route, be charged equally to all persons at the same rate.

Marginal note:National Energy Board determinations

13.06 The National Energy Board may determine, as questions of fact, whether or not traffic is or has been carried out under substantially similar circumstances and conditions referred to in section 13.05, whether in any case a holder has or has not complied with the provisions of that section, and whether there has, in any case, been unjust discrimination as set out in section 13.1.

Marginal note:Interim tolls

13.07 If the National Energy Board has made an interim order authorizing a holder to charge tolls until a specified time or the happening of a specified event, the Board may, in any subsequent order, direct the holder

• (a) to refund, in a manner satisfactory to the Board, any part of the tolls charged by the holder under the interim order that is in excess of the tolls determined by the Board to be just and reasonable, together with interest on the amount so refunded; or

• (b) to recover in its tolls, in a manner satisfactory to the Board, the amount by which the tolls determined by the Board to be just and reasonable exceed the tolls charged by the holder under the interim order, together with interest on the amount so recovered.

Disallowance of Tariff

Marginal note:Disallowance of tariff

13.08 The National Energy Board may disallow any tariff or any portion of any tariff that it considers to be contrary to any of the provisions of this Act or any order of the Board and may require a holder, within a time fixed by the Board, to substitute for it a tariff satisfactory to the Board or may establish other tariffs in lieu of the tariff or the portion so disallowed.

Marginal note:Suspension of tariff

13.09 The National Energy Board may suspend any tariff or any portion of any tariff before or after the tariff goes into effect.

Discrimination

Marginal note:No unjust discrimination

13.1 A holder shall not make any unjust discrimination in tolls, service or facilities against any person or locality.

Marginal note:Burden of proof

13.11 If it is shown that a holder makes any discrimination in tolls, service or facilities against any person or locality, the burden of proving that the discrimination is not unjust lies on the holder.

Marginal note:No rebates, etc.

• 13.12 (1) No holder or shipper or an officer or employee, or an agent or mandatary, of a holder or shipper shall

  • (a) offer, grant, give, solicit, accept or receive a rebate, concession or discrimination whereby a person obtains transmission of oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas by a holder at a rate less than that named in the tariffs then in force; or

  • (b) knowingly be party or privy to a false billing, false classification, false report or other device resulting in a rate being charged that is less than that named in the tariffs then in force.

• Marginal note:Prosecution

  (2) No prosecution shall be instituted for an offence under this section without leave of the National Energy Board.

Contracts Limiting Liabilities

Marginal note:Contracts limiting liability

• 13.13 (1) Except as provided in this section, no contract, condition or notice made or given by a holder impairing, restricting or limiting its liability in respect of the transmission of oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas relieves the holder from its liability, unless that class of contract, condition or notice is included as a term or condition of its tariffs as filed or has been first authorized or approved by order of the National Energy Board.

• Marginal note:National Energy Board may determine limits

  (2) The National Energy Board may determine the extent to which the liability of a holder may be impaired, restricted or limited as provided in this section.

• Marginal note:Terms and conditions

  (3) The National Energy Board may establish the terms and conditions under which oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas may be transmitted by a holder.

Transmission of Oil or Gas

Marginal note:Duty of holder of an operating licence or authorization under subsection 5(1)

• 13.14 (1) Subject to any exemptions or conditions that the National Energy Board may establish, a holder operating a pipeline for the transmission of oil shall, according to its powers, without delay and with due care and diligence, receive, transport and deliver all oil and any other substance, including water, incidental to the drilling for or production of oil offered for transmission by means of its pipeline.

• Marginal note:Orders for transmission of commodities

  (2) The National Energy Board may, by order, on any terms and conditions that it may specify in the order, require a holder operating a pipeline for the transmission of gas to receive, transport and deliver, according to its powers, gas and any other substance, including water, incidental to the drilling for or production of gas offered for transmission by means of its pipeline.

• Marginal note:Extension of facilities

  (3) If the National Energy Board finds that no undue burden will be placed on the holder by requiring the holder to do so and if it considers it necessary or desirable to do so in the public interest, the Board may require a holder operating a pipeline for the transmission of oil or gas to provide adequate and suitable facilities for

  • (a) the receipt, transmission and delivery of the oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas offered for transmission by means of its pipeline;

  • (b) the storage of the oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas; and

  • (c) the junction of its pipeline with other facilities for the transmission of the oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas.

Transmission and Sale of Gas

Marginal note:Extension of services of gas pipeline companies

• 13.15 (1) If the National Energy Board considers it necessary or desirable to do so in the public interest, it may direct a holder operating a pipeline for the transmission of gas to extend or improve its transmission facilities to provide facilities for the junction of its pipeline with any facilities of, and sell gas to, any person or municipality engaged or legally authorized to engage in the local distribution of gas to the public, and for those purposes to construct branch lines to communities immediately adjacent to its pipeline, if the Board finds that to do so will not place an undue burden on the holder.

• Marginal note:Limitation on extension

  (2) Subsection (1) does not empower the National Energy Board to compel a holder to sell gas to additional customers if to do so would impair its ability to render adequate service to its existing customers.

Marginal note:Holder’s powers

13.16 A holder may, for the purposes of its undertaking and subject to the provisions of this Act, transmit oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas by pipeline and regulate the time and manner in which it shall be transmitted and the tolls to be charged for the transmission.

Regulations

Marginal note:Regulations

13.17 The Governor in Council may make regulations for the purposes of this Part, designating as oil or gas any substance resulting from the processing or refining of hydrocarbons or coal if that substance

• (a) is asphalt or a lubricant; or

• (b) is a suitable source of energy by itself or when it is combined or used in association with something else.