SOR/2013-13820136

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202210

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NATIONAL ENERGY BOARD ACTAdministrative Monetary Penalties Regulations (Canadian Energy Regulator)P.C.2013-82520136

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The National Energy Board, pursuant to section 134a of the National Energy Board Actb, makes the annexed Administrative Monetary Penalties Regulations (National Energy Board).Calgary, May 17, 2013SHERI YOUNGSecretary of the National Energy BoardHis Excellency the Governor General in Council, on the recommendation of the Minister of Natural Resources, pursuant to section 134a of the National Energy Board Actb, approves the annexed Administrative Monetary Penalties Regulations (National Energy Board), made by the National Energy Board on May 17, 2013.aS.C. 2012, c. 19, s. 98bR.S., c. N-7Interpretation

Definition of Act1In these Regulations, Act means the Canadian Energy Regulator Act.SOR/2022-199, s. 3

Designated Provisions

Provisions of the Act or regulations2(1)The contravention of a provision of the Act or any of its regulations that is set out in column 1 of Schedule 1 is designated as a violation that may be proceeded with in accordance with sections 116 to 135 of the Act.Orders and decisions(2)The contravention of any order or decision made under the Act is designated as a violation that may be proceeded with in accordance with sections 116 to 135 of the Act.Conditions(3)The failure to comply with a condition of any certificate, licence, permit, authorization, leave or exemption that is granted under the Act is designated as a violation that may be proceeded with in accordance with sections 116 to 135 of the Act.Discrepancy(4)In the event of a discrepancy between the short-form descriptions in Schedule 1 and the provision to which it pertains, the provision prevails.SOR/2022-199, s. 4

Classification

Provisions3(1)The violation of a provision that is set out in column 1 of Schedule 1 is classified as a Type A or Type B violation as set out in column 3 of that Schedule.Orders, decisions or conditions(2)The contravention of an order or decision referred to in subsection 2(2) or the failure to comply with a condition referred to in subsection 2(3) is a Type B violation.SOR/2022-199, s. 5

Penalties

Penalty4(1)The penalty for a violation is the amount set out in column 2 or 3 of Schedule 2 that corresponds to the type of violation, the total gravity value set out in column 1 and whether the violation was committed by an individual or a person other than an individual.Determination of final gravity level(2)The total gravity value in respect of a violation is to be established by considering each of the criteria in column 1 of the table to this section, by ascribing to each criterion an appropriate gravity value, having regard to the circumstances of the violation, from those set out in column 2 and by adding the values obtained.TABLEItemColumn 1Column 2CriteriaEffect on Gravity Value1Whether the person who committed the violation has other violations in the previous 7 years0 to +22Whether the person derived any competitive or economic benefit from the violation0 to +23Whether the person made reasonable efforts to mitigate or reverse the violation’s effects–2 to +24Whether there was negligence on the part of the person who committed the violation0 to +25Whether the person provided all reasonable assistance to the Regulator with respect to the violation–2 to +26Whether the person, after becoming aware of the violation, promptly reported the violation to the Regulator–2 to +27Whether the person has taken any steps to prevent recurrence of the violation–2 to +28For type B violations, whether the violation was primarily a reporting or record-keeping requirement failure–2 to 09Whether there are any other aggravating factors in relation to the risk of harm to people or the environment0 to +3SOR/2022-199, s. 15

Service of Documents

Manner of service5(1)The service of a document required or authorized under subsection 120(1) or 128(2) of the Act is to be made by(a)in the case of an individual,(i)leaving a copy of it with the individual,(ii)leaving a copy of it with someone who appears to be an adult member of the same household at the individual’s last known address or usual place of residence, or(iii)sending a copy of it by registered mail, courier, fax or other electronic means to the individual’s last known address or usual place of residence; and(b)in the case of a person other than an individual,(i)leaving a copy of it at the person’s head office or place of business with an officer or other individual who appears to manage or be in control of the head office or place of business,(ii)sending a copy of it by registered mail, courier or fax to the person’s head office or place of business, or(iii)sending a copy of it by electronic means other than by fax to any individual referred to in subparagraph (i).Deemed service(2)A document — other than a document that is personally served — is considered to be served(a)in the case of a copy that is left with an adult referred to in subparagraph (1)(a)(ii), on the day on which the document is left with the adult;(b)in the case of a copy that is sent by registered mail or courier, on the tenth day after the date indicated in the receipt issued by the postal or courier service; and(c)in the case of a copy sent by fax or other electronic means, on the day on which it is transmitted.SOR/2022-199, s. 6

Coming into Force

S.C. 2012, c. 19*6These Regulations come into force on the day on which section 98 of the Jobs, Growth and Long-term Prosperity Act comes into force, but if they are registered after that day, they come into force on the day on which they are registered.*[Note: Regulations in force July 3, 2013, see SI/2013-69.]

SCHEDULE 1(Subsections 2(1) and (4) and subsection 3(1))ViolationsPART 1Column 1Column 2Column 3ItemProvisionShort-form DescriptionClassification1103(4)Failure to provide assistanceType B2179(1)Construction, operation or abandonment of a pipeline by a person other than a companyType B3180(1)Operation of a pipeline without a certificate and leave to openType B4181(1)Failure to obtain required leaveType B5198(a)Begin construction of a pipeline without a certificateType B6198(c)Begin construction of a pipeline without an approved plan, profile and book of referenceType B7211(1)Failure to submit for approval a plan, profile and book of referenceType B8213(1)Opening a pipeline or a section of a pipeline for transmission without leaveType B9217(1)Construction of a pipeline without a certificate or orderType B10218Construction or operation of a pipeline without a certificate or orderType B11241(1)Abandonment of a pipeline without leaveType B12247Construction or operation of an international power line without a permit or certificateType B13265(a)Begin construction of an international or interprovincial power line without approval of a plan, profile and book of referenceType B14267Construction or operation of an interprovincial or international power line without a permit or certificateType B15273(1)Construction of a facility, or engaging in an activity that causes a ground disturbance, without authorizationType B16273(2)Operation of a vehicle or mobile equipment across an international or interprovincial power line in contravention of subsection 273(2) of the ActType B17277(1)Abandonment of a designated international power line or interprovincial power line without leaveType B18314Failure to do as little damage as possible in exercising the powers granted and to compensate all persons interested for damage sustainedType B19335(1)Unauthorized construction of a facility or engaging in an unauthorized activity that causes a ground disturbanceType B20335(2)Operation of a vehicle or mobile equipment across a pipeline in contravention of subsection 335(2) of the ActType B21338(1)Working or prospecting for mines or minerals without authorizationType BPART 2ItemColumn 1Column 2Column 3ProvisionShort-form DescriptionClassification14Failure to ensure that a pipeline is designed, constructed, operated or abandoned as prescribedType B25.1(1)Failure to submit prescribed documents for approvalType B3[Repealed, SOR/2022-199, s. 9]46.1Failure to establish, implement and maintain a management system as prescribedType B56.2(1)Failure to appoint an accountable officer and to ensure that the management system is established, implemented and maintained as prescribedType B66.2(2)Failure to notify the Regulator as prescribedType A76.2(3)Failure to ensure that the accountable officer has authority as prescribedType B86.3(1)Failure to establish policies and goals as prescribedType B96.3(2)Failure to base the management system on established policies and goals as prescribedType B106.3(3)Failure of the accountable officer to prepare and communicate a policy statement as prescribedType B116.4Failure to have an organizational structure as prescribedType B126.5Failure to establish, develop, implement, maintain and document processes as prescribedType B136.6Failure to complete an annual report and submit a statement as prescribedType B149Failure to develop detailed designs of a pipeline and to submit them to the Regulator when requiredType B1510(1)Failure to develop a documented risk assessment as prescribedType B1610(2)Failure to submit a documented risk assessment to the Regulator when required to do soType A1711Failure to design and equip a station as prescribedType B1812Failure to equip a compressor station or pump station with an alternate source of power as prescribedType B1913Failure to locate, service or design a storage facility as prescribedType B2014Failure to develop prescribed specifications, and to submit them to the Regulator when requiredType B2115Failure to develop a quality assurance program as prescribedType B2216Failure to develop a joining program as prescribed, and to submit it to the Regulator when requiredType B2317Failure to examine each joint as prescribedType B2418Failure to contract for services as prescribedType B2519(a)Failure to ensure that the construction activities do not create a hazard to the public or the environmentType B2619(b)Failure to inform persons of safety practices and procedures as prescribedType B2720(1)Failure to develop a construction safety manual and to submit it to the RegulatorType B2820(1.1)Failure to set out responsibilities as prescribedType B2920(2)Failure to keep a copy of the construction safety manual or relevant parts of it as prescribedType B3021Failure to restore the right-of-way and temporary work areas of a pipeline as prescribedType B3122Failure to ensure that there is no undue interference with the use of a utility or private road during the construction of a pipelineType B3223Failure to develop a pressure testing program as prescribed, and to submit it to the Regulator when requiredType B3324Conducting a pressure test without required permitsType B3425Failure to perform pressure testing as prescribedType B3526Failure to minimize the number of welds that are not pressure-tested as prescribedType B3627Failure to develop, regularly review and update as required operation and maintenance manuals as prescribed and to submit them to the Regulator when requiredType B3728Failure to inform persons of practices and procedures and to make available to them the relevant portion of operation and maintenance manuals as prescribedType B3829Failure to contract for services as prescribedType B3930(a)Failure to take reasonable steps to ensure that maintenance activities do not create a hazard to the public or the environmentType B4030(b)Failure to take reasonable steps to inform persons of safety and environmental protection practices and procedures as prescribedType B4131(1)Failure to develop a maintenance safety manual and to submit it to the Regulator when requiredType B4231(1.1)Failure to set out responsibilities as prescribedType B4331(2)Failure to keep a copy of the maintenance safety manual or the relevant parts of it as prescribedType B4432(1)Failure to develop, implement and maintain an emergency management program as prescribedType B4532(1.1)Failure to develop, regularly review and update an emergency procedures manualType B4632(2)Failure to submit to the Regulator the emergency procedures manual and any updatesType A4733Failure to establish and maintain liaison as prescribed, and failure to consult as prescribedType B4834Failure to inform persons who may be associated with an emergency response activity as prescribedType B4935Failure to develop a continuing education program as prescribedType B5036(a)Failure to maintain communication facilities as prescribedType B5136(b)Failure to periodically test instruments and equipment as prescribedType B5236(c)Failure to continually record as prescribedType B5336(d)Failure to clearly mark valves as prescribedType B5436(e)Failure to clearly mark valves as prescribedType B5536(f)Failure to post signage as prescribedType B5637Failure to develop and implement a pipeline control system as prescribedType B5738(1)Performing welding on a liquid-filled pipeline other than as prescribedType B5838(2)Failure to treat weld as a temporary installation and replace that installation with a permanent one as soon as is practicableType B5938(3)Failure to submit specifications, procedures and results for approval as prescribedType B6039Failure to develop a surveillance and monitoring program as prescribedType B6140Failure to develop, implement and maintain an integrity management program as prescribedType B6241(1)Failure to document the particulars of a defect on a pipeline as prescribedType B6341(2)Failure to submit the documentation in 41(1) when requiredType A6442Failure to submit a proposed plan as prescribedType B6543Failure to submit an application for a change or increase as prescribedType B6644Failure to submit an application for proposed deactivation as prescribedType B6745Failure to submit an application for reactivation as prescribedType B6845.1Failure to submit an application for decommissioning as prescribedType B6946Failure to develop and implement a training program as prescribedType B7047Failure to develop, implement and maintain a safety management program as prescribedType B7147.1Failure to develop, implement and maintain a security management program as prescribedType B71.147.2Failure to develop, implement and maintain a damage prevention program as prescribedType B7248Failure to develop, implement and maintain an environmental protection program as prescribedType B7351(a)Failure to notify as prescribedType A7451(b)Failure to submit to the Regulator on request a crossing report as prescribedType A7552(1)Failure to notify and submit a report to the Regulator as prescribedType A7653(1)Failure to conduct inspections and audits as prescribedType B7753(2)Failure to document the audit as prescribedType B7854(1)Failure to inspect the construction of a pipeline as prescribedType B7954(2)Performance of an inspection by a person who does not have sufficient expertise, knowledge and training to competently carry out the inspectionType B8055Failure to conduct and document audits as prescribedType B8156Failure to retain records as prescribedType APART 3ItemColumn 1Column 2Column 3ProvisionShort-form DescriptionClassification14(1)Failure to ensure that the company’s processing plant is designed, constructed, operated or abandoned as prescribedType B25Failure to ensure that the company’s processing plant is designed, constructed, operated or abandoned as prescribedType B39Failure to develop and submit to the Regulator the prescribed programType B410Failure to develop, implement and maintain quality control and quality assurance programs as prescribedType B511Failure to conduct a risk analysis as prescribedType B612Failure to ensure that employees have required knowledge and trainingType B713Failure to develop and implement a safety program as prescribedType B814Failure to develop and implement an environmental protection program as prescribedType B915Failure to contract for services as prescribedType B1016Failure to develop, implement and maintain detailed designs of its processing plantType B1117Failure to ensure that a processing plant is equipped with an emergency power sourceType B1218Failure to ensure that each tank, bullet, sphere or other container is designed, constructed and maintained as prescribedType B1319Failure to ensure that process equipment and flammable vapour sources are separated as prescribedType B1420Failure to ensure that process vessels and equipment are vented as prescribedType B1521Failure to equip all flare headers as prescribedType B1622Failure to ensure reliable fire suppression systems as prescribedType B1723Failure to equip a processing plant with systems as prescribedType B1824Failure to equip a processing plant with alarm devices as prescribedType B1925Failure to ensure that all pressure-relief piping and systems are designed and constructed as prescribedType B2026(a)Failure to ensure construction does not create a detriment or hazard as prescribedType B2126(b)Failure to inform persons at the construction site as prescribedType B2226(c)Failure to inform persons on the work site as prescribedType B2327(1)Failure to develop, implement and submit a construction safety manualType B2427(2)Failure to keep a copy of the construction safety manual at the processing plant as prescribedType B2528(1)Failure to ensure direct supervision of pressure tests as prescribedType B2628(2)Failure to ensure the independence of the test supervisor as prescribedType B2728(3)Failure to date and sign recordsType B2829Failure of the company to develop and implement a non-destructive weld examination program as prescribedType B2930(1)(a)Failure to develop, implement, regularly review and update operations manuals as prescribedType B3030(1)(b)Failure to keep a copy of the operations manuals as prescribedType B3130(2)Failure to ensure that the operations manuals contain the prescribed proceduresType B3231(2)Failure to develop and implement a safe-work permit system as prescribedType B3332Failure to ensure that a processing plant is staffed as prescribedType B3433(a)Failure to ensure maintenance activities do not create a detriment or hazard as prescribedType B3533(b)Failure to inform persons at a maintenance site as prescribedType B3634Operation of equipment with a hazard-detection alarm or shutdown device bypassed or rendered inoperableType B3735(a)Failure to develop, implement, regularly review and update an emergency procedures manualType B3835(b)Failure to submit the emergency procedures manual as prescribedType A3935(c)Failure to submit updates as prescribedType A4036Failure to establish and maintain liaison as prescribed and failure to consult as prescribedType B4137Failure to inform persons who may be associated with an emergency response activity as prescribedType B4238Failure to develop and implement a continuing educational program as prescribedType B4339(a)Failure to maintain communication facilities as prescribedType B4439(b)Failure to retain incident data as prescribedType B4539(c)Failure to clearly mark valves as prescribedType B4639(d)Failure to post signage as prescribedType B4739(e)Failure to post signage as prescribedType B4840(a)Failure to test hazard-detection devices as prescribedType B4940(b)Failure to document and maintain prescribed recordsType B5041Failure to develop and implement a processing plant integrity program as prescribedType B5142Failure to notify of plant deactivation as prescribedType A5243.1Failure to submit an application for decommissioning as prescribedType B5344Failure to develop and implement a training program as prescribedType B5445Failure to ensure visitors are made familiar with the safety program as prescribedType B5546Failure to provide immediate notice of any incident and to submit prescribed reportsType B5647(a)Failure to notify of any hazard as prescribedType A5747(b)Failure to provide a report as prescribedType B5848Failure to report burning as prescribedType A5949(1.1)Failure to notify as prescribedType A6050Failure to prepare and keep current a report as prescribedType B6151Failure to regularly conduct balance analysis as prescribedType B6252(1)Failure to conduct audits and inspections as prescribedType B6352(2)Failure to document an audit as prescribedType B6453Failure to inspect as prescribedType B6554Failure to annually audit the competency of all employees as prescribedType B6655Failure to develop, implement and maintain a record retention and handling programType APART 4ItemColumn 1Column 2Column 3ProvisionShort-form DescriptionClassification13Failure to make a locate request as prescribedType B24Failure to inform all persons as prescribedType A37(3)Failure to comply with any of the prescribed measures when undertaking the construction of a facilityType B48Failure to meet any of the obligations that relate to a facilityType B59(2)Failure to comply with any of the prescribed measures with respect to the construction of an overhead lineType B610(3)Failure to comply with any of the prescribed measures with respect to an activity that causes a ground disturbance within the prescribed areaType BPART 5ItemColumn 1Column 2Column 3ProvisionShort-form DescriptionClassification12Failure to be a member of a one-call centre when one exists within the geographical area where the pipeline company operates its pipelineType B23(1)Failure to inform the person that made a request within 10 working days after receiving a requestType A34Failure to provide information and all reasonable assistance as prescribedType B45Failure to send comments to the Regulator as prescribedType A56(1)(a)Failure to inform, in writing, as prescribedType B66(1)(b)Failure to mark location of a pipe as prescribedType B76(1)(c)Failure to provide information as prescribedType B87Failure to identify and notify of locations as prescribedType B98(a)Failure to carry out inspections that are necessary as prescribedType B108(b)Failure to inspect all exposed pipe prior to backfilling as prescribedType B119(1)Failure to notify the facility’s owner in writing of any deterioration as prescribedType B129(2)Failure to notify the Regulator in writing as prescribedType A1310(2)Failure to notify the Regulator in writing of a suspension of consentType A1411Failure to report to the Regulator as prescribedType A1512Failure to keep records as prescribedType A1613Failure to make records and all other materials available to officers of the Regulator and other authorized persons and give them assistance as necessary to inspect the records as prescribedType B1714Failure to provide a list as prescribedType A1815Failure to develop and maintain guidelines as prescribed and to make them publicType BPART 6Column 1Column 2Column 3ItemProvisionShort-form DescriptionClassification17Failure to construct a facility as prescribed or failure to obtain authorizationType B28Failure to conduct a ground disturbance activity as prescribed or failure to obtain authorizationType B310Failure to construct a power line as prescribedType BSOR/2016-135, ss. 1 to 3SOR/2022-199, s. 7SOR/2022-199, s. 8SOR/2022-199, s. 9SOR/2022-199, s. 10SOR/2022-199, s. 11SOR/2022-199, s. 12SOR/2022-199, s. 13SOR/2022-199, s. 14SOR/2022-199, s. 15SCHEDULE 2(Subsection 4(1))ItemColumn 1Column 2Column 3Gravity LevelType A ViolationType B ViolationIndividualAny Other PersonIndividualAny Other Person1–3 or less$250$1,000$1,000$4,0002–2$595$2,375$4,000$16,0003–1$990$3,750$7,000$28,00040$1,365$5,025$10,000$40,00051$1,740$6,300$13,000$52,00062$2,115$7,575$16,000$64,00073$2,490$8,850$19,000$76,00084$2,865$10,125$22,000$88,00095 or more$3,000$12,000$25,000$100,000RELATED PROVISIONS — SOR/2016-135, s. 4

4For the purposes of paragraph 11(2)(a) of the Statutory Instruments Act, these Regulations apply before they are published in the Canada Gazette.

SOR/2022-1992022-09-27