Canada Oil and Gas Operations Act (R.S.C., 1985, c. O-7)

Marginal note:Amendments to Schedule 1 or 2

• 14.1 (1) The Governor in Council may, by order, amend Schedule 1 or 2 to add, amend or remove a reference to a federal Act or regulation, or to a provision of a federal Act or regulation.

• Marginal note:Recommendation

  (2) The order shall be made on the recommendation of the Minister and every minister responsible for the administration of the provision.

Marginal note:List of spill-treating agents

14.2 The Minister of the Environment may, by regulation, establish a list of spill-treating agents.

Marginal note:Publication of proposed regulations

• 15 (1) Subject to subsection (2), a copy of each regulation that the Governor in Council proposes to make under this Act shall be published in the Canada Gazette and a reasonable opportunity shall be afforded to interested persons to make representations to the Minister with respect thereto.

• Marginal note:Single publication required

  (2) No proposed regulation need be published more than once under subsection (1) whether or not it is altered or amended after that publication as a result of representations made by interested persons as provided in that subsection.

Marginal note:Orders and regulations — Commission of the Canadian Energy Regulator

15.1 The Commission of the Canadian Energy Regulator may make orders or regulations prohibiting activities within an area specified in the order or regulation around a pipeline, an abandoned pipeline or other work, authorizing exceptions to those prohibitions and specifying measures to be taken in relation to those exceptions.

Marginal note:Equivalent standards and exemptions

• 16 (1) Subject to subsection (2), the Chief Safety Officer and Chief Conservation Officer may

  • (a) authorize the use of equipment, methods, measures or standards in lieu of any required by regulation, where those Officers are satisfied that the use of that other equipment and those other methods, measures or standards would provide a level of safety, protection of the environment and conservation equivalent to that provided by compliance with the regulations; or

  • (b) grant an exemption from any regulatory requirement in respect of equipment, methods, measures or standards, where those Officers are satisfied with the level of safety, protection of the environment and conservation that will be achieved without compliance with that requirement.

• Marginal note:One officer authorizations

  (2) The Chief Safety Officer alone may exercise the powers referred to in paragraph (1)(a) or (b) if the regulatory requirement referred to in that paragraph does not relate to protection of the environment or conservation, and the Chief Conservation Officer alone may exercise those powers if that regulatory requirement does not relate to safety.

• Marginal note:No contravention

  (3) No person contravenes the regulations if that person acts in compliance with an authorization or exemption under subsection (1) or (2).

Marginal note:Emergency situations

• 16.1 (1) In a prescribed emergency situation, where the Minister is of the opinion that there is a conflict between the provisions of this Act or the regulations and the provisions of another federal law, other than provisions implementing an international treaty or convention to which Canada is a party, and that compliance with that law and this Act or the regulations is likely to create a situation that would seriously endanger the safety of persons or equipment, the Minister may issue a written declaration to that effect.

• Marginal note:Contents of declaration

  (2) A declaration made under subsection (1) must

  • (a) describe the emergency situation;

  • (b) specify the provisions that conflict and describe the nature of the conflict;

  • (c) describe the consultation that has taken place pursuant to subsection (4);

  • (d) describe the geographical area, person, work or activity affected by the declaration; and

  • (e) specify the time the declaration comes into effect.

• Marginal note:Effect of declaration

  (3) From the time specified in a declaration made under subsection (1), the provisions of this Act or the regulations specified therein prevail, in respect of the geographical area, person, work or activity described therein, over the provisions of the other federal law specified therein until such time as the Minister or the Governor in Council revokes the declaration.

• Marginal note:Consultation

  (4) Before the Minister makes or revokes a declaration under this section, the minister responsible for the federal law that, in the Minister’s opinion, is in conflict with this Act or the regulations shall be consulted.

• Marginal note:Submission for revocation

  (5) The minister responsible for a federal law that is specified in a declaration made under subsection (1) may submit the declaration to the Governor in Council for revocation.

• Marginal note:Not a statutory instrument

  (6) A declaration or a revocation made under this section is not a regulation within the meaning and for the purposes of the Statutory Instruments Act, but shall be published in the Canada Gazette within seven days after it is made.

Production Orders

Marginal note:Production orders

• 17 (1) Where the Chief Conservation Officer, on reasonable grounds, is of the opinion that, with respect to an interest in any area to which this Act applies, the capability exists to commence, continue or increase production of oil or gas and that a production order would stop waste, the Chief Conservation Officer may order the commencement, continuation or increase of production of oil or gas at such rates and in such quantities as are specified in the order.

• Marginal note:Ceasing production

  (2) Where the Chief Conservation Officer, on reasonable grounds, is of the opinion that an order under this section would stop waste, the Chief Conservation Officer may order a decrease or the cessation or suspension of production of oil or gas for any period specified in the order.

• Marginal note:Investigation and appeal

  (3) Subsections 19(2) to (4) and section 21 apply, with such modifications as the circumstances require, to an order under subsection (1) or (2) as if it were an order under subsection 19(1).

• Marginal note:Access to files and records

  (4) A person subject to an order under subsection (1) or (2) shall, on request, afford the Chief Conservation Officer or a person designated by the Chief Conservation Officer access to his premises, files and records for all reasonable purposes related to the order.

Waste

Marginal note:Waste prohibited

• 18 (1) Subject to section 63, any person who commits waste is guilty of an offence under this Act, but a prosecution may be instituted for such an offence only with the consent of the Commission of the Canadian Energy Regulator.

• Marginal note:Definition of “waste”

  (2) In this Act, waste, in addition to its ordinary meaning, means waste as understood in the oil and gas industry and in particular, but without limiting the generality of the foregoing, includes

  • (a) the inefficient or excessive use or dissipation of reservoir energy;

  • (b) the locating, spacing or drilling of a well within a field or pool or within part of a field or pool or the operating of any well that, having regard to sound engineering and economic principles, results or tends to result in a reduction in the quantity of oil or gas ultimately recoverable from a pool;

  • (c) the drilling, equipping, completing, operating or producing of any well in a manner that causes or is likely to cause the unnecessary or excessive loss or destruction of oil or gas after removal from the reservoir;

  • (d) the inefficient storage of oil or gas above ground or underground;

  • (e) the production of oil or gas in excess of available storage, transportation or marketing facilities;

  • (f) the escape or flaring of gas that could be economically recovered and processed or economically injected into an underground reservoir; or

  • (g) the failure to use suitable artificial, secondary or supplementary recovery methods in a pool when it appears that those methods would result in increasing the quantity of oil or gas, or both, ultimately recoverable under sound engineering and economic principles.

Marginal note:Prevention of waste

• 19 (1) Where the Chief Conservation Officer, on reasonable grounds, is of the opinion that waste, other than waste as defined in paragraph 18(2)(f) or (g), is being committed, the Chief Conservation Officer may, subject to subsection (2), order that all operations giving rise to the waste cease until he is satisfied that the waste has stopped.

• Marginal note:Investigation

  (2) Before making any order under subsection (1), the Chief Conservation Officer shall hold an investigation at which interested persons shall be given an opportunity to be heard.

• Marginal note:Peremptory order

  (3) Notwithstanding subsection (2), the Chief Conservation Officer may, without an investigation, make an order under this section requiring all operations to be shut down if in the opinion of the Chief Conservation Officer it is necessary to do so to prevent damage to persons or property or to protect the environment, but as soon as possible after making such an order and in any event within fifteen days thereafter, the Chief Conservation Officer shall hold an investigation at which interested persons shall be given an opportunity to be heard.

• Marginal note:Order after inquiry

  (4) At the conclusion of an investigation under subsection (3), the Chief Conservation Officer may set aside, vary or confirm the order made or make a new order.

Marginal note:Taking over management

• 20 (1) For the purpose of giving effect to an order made under section 19, the Chief Conservation Officer may authorize and direct such persons as may be necessary to enter the place where the operations giving rise to the waste are being carried out and take over the management and control of those operations and any works connected therewith.

• Marginal note:Controlling operations and costs thereof

  (2) A person authorized under subsection (1) to take over the management and control of operations shall manage and control the operations and do all things necessary to stop the waste, and the cost thereof shall be borne by the person who holds the permit or the lease and until paid constitutes a debt recoverable by action in any court of competent jurisdiction as a debt due to Her Majesty in right of Canada.

Marginal note:Appeal

21 A person aggrieved by an order of the Chief Conservation Officer under section 17 or 19 after an investigation under subsection 19(2) or (3) may appeal to the Commission of the Canadian Energy Regulator to have the order reviewed under section 384 of the Canadian Energy Regulator Act.

Marginal note:Waste occuring

22 When the Chief Conservation Officer, on reasonable grounds, is of the opinion that waste, as defined in paragraph 18(2)(f) or (g), is occurring in the recovery of oil or gas from a pool, that Officer may apply to the Commission of the Canadian Energy Regulator for an order under section 385 of the Canadian Energy Regulator Act requiring the operators within the pool to show cause why the Commission should not make a direction in respect of the waste.

23 [Repealed, 1994, c. 10, s. 8]

Spills and Debris

Definition of spill

• 24 (1) In sections 25 to 28, spill means a discharge, emission or escape of oil or gas, other than one that is authorized under subsection 25.4(1), the regulations or any other federal law. It does not include a discharge from a vessel to which Part 8 or 9 of the Canada Shipping Act, 2001 applies or from a ship to which Part 6 of the Marine Liability Act applies.

• Definition of actual loss or damage

  (2) In section 26, actual loss or damage includes loss of income, including future income, and, with respect to any Aboriginal peoples of Canada, loss of hunting, fishing and gathering opportunities. It does not include loss of income recoverable under subsection 42(3) of the Fisheries Act.

• Definition of debris

  (3) In sections 26 to 27 and 28, debris means any installation or structure that was put in place in the course of any work or activity required to be authorized under paragraph 5(1)(b) and that has been abandoned without an authorization that may be required by or under this Act, or any material that has broken away or been jettisoned or displaced in the course of any of that work or activity.

• Marginal note:Immunity

  (4) Her Majesty in right of Canada incurs no liability whatever to any person arising out of the authorization by regulations made by the Governor in Council of any discharge, emission or escape of oil or gas.

Marginal note:Spills prohibited

• 25 (1) No person shall cause or permit a spill on or from any area to which this Act applies.

• Marginal note:Duty to report spills

  (2) Where a spill occurs in any area to which this Act applies, any person who at the time of the spill is carrying on any work or activity related to the exploration for or development or production of oil or gas in the area of the spill shall, in the manner prescribed by the regulations, report the spill to the Chief Conservation Officer.

• Marginal note:Duty to take reasonable measures

  (3) Every person required to report a spill under subsection (2) shall, as soon as possible, take all reasonable measures consistent with safety and the protection of the environment to prevent any further spill, to repair or remedy any condition resulting from the spill and to reduce or mitigate any danger to life, health, property or the environment that results or may reasonably be expected to result from the spill.

• Marginal note:Taking emergency action

  (4) Where the Chief Conservation Officer, on reasonable grounds, is satisfied that

  • (a) a spill has occurred in any area to which this Act applies and immediate action is necessary in order to effect any reasonable measures referred to in subsection (3), and

  • (b) such action is not being taken or will not be taken under subsection (3),

  he may take such action or direct that it be taken by such persons as may be necessary.

• Marginal note:Taking over management

  (5) For the purposes of subsection (4), the Chief Conservation Officer may authorize and direct such persons as may be necessary to enter the place where the spill has occurred and take over the management and control of any work or activity thereat.

• Marginal note:Managing work or activity

  (6) A person authorized and directed to take over the management and control of any work or activity under subsection (5) shall manage and control that work or activity and take all reasonable measures in relation to the spill that are referred to in subsection (3).

• Marginal note:Costs

  (7) Any costs incurred under subsection (6) shall be borne by the person who obtained an authorization under paragraph 5(1)(b) in respect of the work or activity from which the spill emanated and until paid constitute a debt recoverable by action in any court of competent jurisdiction as a debt due to Her Majesty in right of Canada.

• Marginal note:Recovery of costs

  (7.1) Where a person, other than a person referred to in subsection (7), takes action pursuant to subsection (3) or (4), the person may recover from Her Majesty in right of Canada the costs and expenses reasonably incurred by that person in taking the action.

• Marginal note:Appeal

  (8) A person aggrieved by any action or measure taken or authorized or directed to be taken under subsections (4) to (6) may appeal to the Commission of the Canadian Energy Regulator to have the order reviewed under section 384 of the Canadian Energy Regulator Act.

• Marginal note:Personal liability

  (9) No person required, directed or authorized to act under this section or section 384 of the Canadian Energy Regulator Act is personally liable, either civilly or criminally, in respect of any act or omission in the course of complying with this section unless it is shown that the person did not act reasonably in the circumstances.