Northern Pipeline Act (R.S.C., 1985, c. N-26)

Marginal note:Notice of failure to comply

• 26. (1) Where a company fails to comply with

  • (a) a term or condition of a certificate of public convenience and necessity declared to be issued by subsection 21(1), or

  • (b) an order or direction issued by the Board or the designated officer in relation to such a certificate,

  the designated officer may

  • (c) give the company written notice of the failure and set, in the notice, a time within which the company shall comply with the term or condition or order or direction, and

  • (d) cause the notice to be served on the company by registered mail or in person.

• Marginal note:Penalty

  (2) Where, pursuant to subsection (1), the designated officer gives the company notice of failure to comply and the company fails, within the time set out in the notice and without lawful excuse, to comply with the term or condition or order or direction, set out in the notice, the Minister may issue an assessment against the company imposing a penalty, not exceeding ten thousand dollars for each day during which the failure continues, on the company.

• Marginal note:Notice of assessment

  (3) Where the Minister issues an assessment under subsection (2) against a company, he shall cause a notice of the assessment to be served forthwith on the company and notice thereof to be published in the Canada Gazette.

• Marginal note:Objection

  (4) A company that objects to an assessment under subsection (2) may, within thirty days from the day of mailing of the notice of assessment, serve on the Minister a notice of objection, in duplicate, in such form as the Governor in Council may prescribe setting out the reason for the objection and the relevant facts.

• Marginal note:Service

  (5) A notice of assessment under subsection (3) and a notice of objection under subsection (4) shall be served by being sent by registered mail.

• Marginal note:Representation

  (6) On receipt of a notice of objection under subsection (4) from a company, the Minister shall, with all due dispatch, reconsider the assessment objected to and vacate, confirm or vary the assessment and he shall thereupon notify the company of his action by registered mail.

Marginal note:Right of appeal

• 27. (1) Where a company receives a notice referred to in subsection 26(6), the company may, within thirty days after receipt of the notice and without serving a notice of objection to the action taken by the Minister under that subsection, appeal the action to the Federal Court.

• Marginal note:Institution of appeal

  (2) An appeal to the Federal Court under subsection (1) shall be instituted in the manner set out in section 48 of the Federal Courts Act.

• Marginal note:Burden of proof

  (3) In an appeal under this section, the burden of establishing the facts justifying the assessment of the penalty is on the Minister.

• Marginal note:Disposal of appeal

  (4) The Federal Court may dispose of an appeal under this section by

  • (a) allowing it;

  • (b) dismissing it; or

  • (c) dismissing it and varying the penalty but, in varying the penalty, the Federal Court shall not increase the penalty beyond the maximum penalty permitted by section 26.