Canadian Energy Regulator Act (S.C. 2019, c. 28, s. 10)

Marginal note:Financial resources

• 303 (1) An applicant for an authorization must provide proof that the applicant has the financial resources necessary to pay an amount that is determined by the Commission. The proof must be in the form and manner that are prescribed by regulation or, in the absence of regulations, that are specified by the Regulator.

• Marginal note:Loss of non-use value

  (2) In determining the amount, the Commission is not required to consider any potential loss of non-use value relating to a public resource that is affected as a result of debris.

• Marginal note:Continuing obligation

  (3) The holder of the authorization must ensure that the proof referred to in subsection (1) remains in force for the duration of the work or activity in respect of which the authorization is issued.

Marginal note:Proof of financial responsibility

• 304 (1) An applicant for an authorization must provide proof of financial responsibility in an amount that is determined by the Commission. The proof must be in the form of a letter of credit, guarantee or indemnity bond or in any other form satisfactory to the Regulator.

• Marginal note:Continuing obligation

  (2) The holder of an authorization must ensure that the proof of financial responsibility remains in force for the duration of the work or activity in respect of which the authorization is issued.

• Marginal note:Payment of claims

  (3) The Regulator may require that moneys in an amount of not more than the amount prescribed by regulation for any case or class of cases, or fixed by the Regulator in the absence of regulations, be paid out of the funds available under the letter of credit, guarantee or indemnity bond or other proof provided under subsection (1) in respect of any claim for which proceedings may be instituted under section 302, whether or not those proceedings have been instituted.

• Marginal note:Manner of payment

  (4) A required payment must be made in the manner, subject to any conditions and procedures, and to or for the benefit of the persons or classes of persons that may be prescribed by regulation for any case or class of cases, or that may be required by the Regulator in the absence of regulations.

• Marginal note:Deduction

  (5) If a claim is sued for under section 302, there must be deducted from any award made pursuant to the action on that claim any amount received by the claimant under this section in respect of the loss, damage, costs or expenses claimed.

General Provisions

Marginal note:Application of provisions in Part 4

• 305 (1) Sections 272 and 273, subsections 274(1) and (2), sections 275 and 276, and section 292 in respect of those provisions, apply in respect of an offshore power line as if each reference in any of those provisions to

  • (a) an international or interprovincial power line were a reference to an offshore power line; and

  • (b) a permit referred to in section 248 or a certificate were a reference to an authorization.

• Marginal note:Application of subsection 273(2)

  (2) However, subsection 273(2) applies only in respect of any part of an offshore power line that is in a province.

Marginal note:Application of provisions in Part 6

• 306 (1) Part 6, except sections 315 to 318, 335 and 342, applies in respect of any part of an offshore power line that is in a province as if each reference in any of those provisions to

  • (a) a company were a reference to the applicant for or holder of the authorization issued in respect of the power line;

  • (b) a pipeline or line were a reference to that part of the power line; and

  • (c) hydrocarbons or any other commodity were a reference to electricity.

• Marginal note:Application of subsection 224(1)

  (2) Subsection 224(1) applies in respect of any part of an offshore power line that is in a province as if the reference to “any of the circumstances referred to in subsection (2)” were a reference to any of the following circumstances:

  • (a) leave has been obtained under subsection 272(2) or (5) in respect of that part;

  • (b) the authorization in respect of the power line contains a condition relating to the utility referred to in subsection 224(1);

  • (c) the power line has been constructed in circumstances specified in an order or regulation made under subsection 272(4).

• Marginal note:Application of subsections 316(1) to (3)

  (3) Subsections 316(1) to (3) apply in respect of any part of an offshore power line that is in a province as if each reference in any of those provisions to

  • (a) a company were a reference to the holder of the authorization issued in respect of the power line; and

  • (b) a pipeline or line were a reference to that part of the power line.

• Marginal note:Non-application of subsections 316(1) to (3)

  (4) Despite subsection (3), subsections 316(1) to (3) do not apply in respect of

  • (a) anything done under leave obtained under subsection 272(2) or (5) in respect of any part of an offshore power line that is in a province; and

  • (b) any such part that passes on, over, along or under a facility if an authorization has been issued in respect of the power line and the authorization contains a condition relating to that facility.

Marginal note:Application of sections 317 and 318

307 Sections 317 and 318 apply in respect of an offshore renewable energy project or an offshore power line as if each reference in that section to

• (a) a company were a reference to a person; and

• (b) a pipeline were a reference to an offshore renewable energy project or offshore power line.

Marginal note:Limitations

308 The holder of an authorization must not, unless the Commission has granted leave by order,

• (a) sell or otherwise transfer to any person its offshore renewable energy project or offshore power line, in whole or in part;

• (b) purchase or otherwise acquire an offshore renewable energy project or offshore power line from any person, in whole or in part;

• (c) lease to any person its offshore power line or any facility, equipment or system related to its offshore renewable energy project, in whole or in part;

• (d) lease from any person an offshore power line — or any facility, equipment or system related to an offshore renewable energy project — other than the one in respect of which the authorization is issued, in whole or in part; or

• (e) if the holder is a company, amalgamate with another company.

Marginal note:Right of entry

• 309 (1) Any person may enter on and use any portion of the offshore area in order to carry on a work or activity

  • (a) authorized under subsection 298(1); or

  • (b) authorized under section 101 in respect of an abandoned offshore power line or an abandoned facility, equipment or system that is in respect of an offshore renewable energy project.

• Marginal note:Restriction

  (2) If a person occupies a portion of the offshore area under lawful authority, other than through an authorization, no other person is permitted to enter on and use that portion as set out in subsection (1) without the consent of the occupier or, if consent has been refused, except in accordance with the conditions imposed in an arbitration.

Marginal note:Study and report

310 The Regulator may, by order, direct the holder of an authorization to study any safety or environmental protection issue that relates to their offshore renewable energy project or offshore power line and to report to the Regulator on the results within the period specified in the order.

Marginal note:Offence and punishment

• 311 (1) Every person who contravenes section 297, a condition of an authorization imposed under subsection 298(9), an order made under section 310 or a provision of a regulation made under section 312 commits an offence and is liable

  • (a) on conviction on indictment, to a fine of not more than $1,000,000 or to imprisonment for a term of not more than five years, or to both; or

  • (b) on summary conviction, to a fine of not more than $100,000 or to imprisonment for a term of not more than one year, or to both.

• Marginal note:Application of subsections 379(2) to (6)

  (2) Subsections 379(2) to (6) apply, with any modifications that the circumstances require, in respect of an offence under this section.

Marginal note:Regulations

312 The Governor in Council may make regulations

• (a) respecting works and activities related to offshore renewable energy projects and to offshore power lines, for the purposes of safety, security and environmental protection;

• (b) respecting the conditions referred to in subsection 298(9);

• (c) prohibiting the introduction into the environment of substances, classes of substances and forms of energy in specified circumstances;

• (d) respecting the creation, updating, conservation and disclosure of records;

• (e) respecting arbitrations for the purposes of subsection 309(2), including the costs of or incurred in relation to such arbitrations; and

• (f) prescribing anything that is to be prescribed under this Part, other than the circumstances referred to in subsection 298(6).

Marginal note:Regulations — excluded periods

312.1 The Regulator may make regulations prescribing, for the purposes of subsection 298(6), the circumstances in which periods may be excluded from the calculation of the time limit.

PART 6Lands

General Powers

Marginal note:Powers of company

313 A company may, for the purposes of its undertaking, subject to this Act and to any Special Act applicable to it,

• (a) enter into and on any Crown land without previous licence, or into and on the land of any person, lying in the intended route of its pipeline, and make surveys, examinations or other necessary arrangements on the land for fixing the site of the pipeline and set out and ascertain the parts of the land that are necessary and appropriate for the pipeline;

• (b) acquire, lease and take from any person any land or other property necessary for the construction, maintenance, operation and abandonment of its pipeline or the maintenance of its abandoned pipeline and sell or otherwise dispose of, or lease, any of its land or property that has become unnecessary for the purpose of the pipeline or the abandoned pipeline;

• (c) construct its pipeline across, on or under the land of any person on the located line of the pipeline;

• (d) join its pipeline with the transmission facilities of any other person at any point on its route;

• (e) construct, erect and maintain all necessary and convenient roads, buildings, houses, stations, depots, wharves, docks and other structures and construct, acquire and lease machinery and other apparatus necessary for the construction, maintenance, operation and abandonment of its pipeline or the maintenance of its abandoned pipeline;

• (f) construct, maintain and operate branch lines and for that purpose exercise all the powers, privileges and authority necessary for that purpose in as full and ample a manner as for a pipeline;

• (g) alter, repair or discontinue the works mentioned in this section, or any of them, and substitute others in their stead;

• (h) transmit hydrocarbons or any other commodity by pipeline and regulate the time and manner in which hydrocarbons or any other commodity are to be transmitted and the tolls to be charged; and

• (i) do all other acts necessary for the construction, maintenance, operation and abandonment of its pipeline or the maintenance of its abandoned pipeline.

Marginal note:Damages and compensation

314 A company must, in the exercise of the powers granted by this Act or a Special Act, do as little damage as possible, and must make full compensation in the manner provided in this Act and in a Special Act to all persons interested, for all damage sustained by them by reason of the exercise of those powers.

Marginal note:Exercise of powers outside Canada

315 A company operating a pipeline from a place in Canada to a place on the international boundary line may exercise, beyond that boundary, to the extent permitted by the laws there in force, the powers that it may exercise in Canada.

Taking and Using Crown Lands

Marginal note:Crown lands

• 316 (1) A company must not take possession of, use or occupy lands vested in Her Majesty without the consent of the Governor in Council.

• Marginal note:Consent

  (2) A company may, with the consent of the Governor in Council and on any terms that the Governor in Council may prescribe, take and appropriate, for the use of its pipeline and works, the portion of the lands of Her Majesty lying on the route of the line that have not been granted, conceded or sold, and that is necessary for the pipeline, and also the portion of the public beach, or bed of a lake, river or stream, or of the lands so vested covered with the waters of a lake, river or stream that is necessary for making, completing and using its pipeline and works.

• Marginal note:Compensation where lands held in trust

  (3) If lands are vested in Her Majesty for a special purpose, or subject to a trust, the compensation money that a company pays for the lands must be held and applied by the Governor in Council for that purpose or trust.

• Marginal note:Exceptions

  (4) Subsections (1) to (3) do not apply to any of the following:

  • (a) anything done under leave obtained under subsection 217(2) or (5) in respect of the pipeline;

  • (b) any section or part of the pipeline that passes on, over, along or under a utility, as defined in subsection 217(6), if a certificate has been issued, or an order has been made under section 214, in respect of the pipeline and the certificate or order contains a condition relating to that utility;

  • (c) any section or part of the pipeline that passes in, on, over, under, through or across a navigable water if a certificate has been issued, or an order has been made under section 214, in respect of the pipeline; and

  • (d) anything done under any leave obtained under section 108 of the National Energy Board Act at any time before July 3, 2013, as that section read from time to time before that day.