Canada Oil and Gas Operations Act

Marginal note:Financial resources — certain activities

• 26.1 (1) An applicant for an authorization under paragraph 5(1)(b) for the drilling for or development or production of oil or gas shall provide proof, in the prescribed form and manner, that it has the financial resources necessary to pay the greatest of the amounts of the limits of liability referred to in subsection 26(2.2) that apply to it. If the Commission of the Canadian Energy Regulator considers it necessary, it may determine a greater amount and require proof that the applicant has the financial resources to pay that greater amount.

• Marginal note:Financial resources — other activities

  (2) An applicant for an authorization under paragraph 5(1)(b) for any other work or activity shall provide proof, in the prescribed form and manner, that it has the financial resources necessary to pay an amount that is determined by the Commission of the Canadian Energy Regulator.

• Marginal note:Loss of non-use value

  (3) When the Commission of the Canadian Energy Regulator determines an amount under subsection (1) or (2), the Commission is not required to consider any potential loss of non-use value relating to a public resource that is affected by a spill or the authorized discharge, emission or escape of oil or gas or as a result of debris.

• Marginal note:Continuing obligation

  (4) The holder of an authorization under paragraph 5(1)(b) shall ensure that the proof referred to in subsections (1) and (2) remains in force for the duration of the work or activity in respect of which the authorization is issued.

• Marginal note:Extended obligation

  (5) The holder of an authorization under paragraph 5(1)(b) shall also ensure that the proof referred to in subsection (1) remains in force for a period of one year beginning on the day on which the Commission of the Canadian Energy Regulator notifies the holder that it has accepted a report submitted by the holder indicating that the last well in respect of which the authorization is issued is abandoned. The Commission may reduce that period and may decide that the proof that is to remain in force during that period is proof that the holder has the financial resources necessary to pay an amount that is less than the amount referred to in subsection (1) and that is determined by the Commission.