Energy Resource Activities Act

May 29, 2008

667588372/08036/tlc08036_f

E4tlc08036

Definitions

Definitions

Words and expressions used but not defined in this Act or in the regulations for the purposes of this Act, unless the context otherwise requires, have the same meanings as in the Petroleum and Natural Gas Act , other than

Part 17 of that Act.

In this Act:

appeal tribunal means the Energy Resource Appeal Tribunal continued under

section 19;

authorization means, except in sections 34, 39 (1) and 104 and

Part 10, an authorization under a specified enactment to carry out a related activity, and includes the conditions, if any, imposed on the authorization under this Act or the specified enactment;

authorization holder means a person who holds an authorization and is not a permit holder;

board means the board of the regulator continued under

section 2;

certificate of restoration means a certificate issued by the regulator under

section 41;

commissioner means the commissioner appointed under

section 6.1 (1);

energy resource means

petroleum,

natural gas,

hydrogen,

methanol, or

ammonia;

energy resource activity means any of the following:

the exploration for or development of petroleum or natural gas;

the production, gathering, processing, storage or disposal of petroleum or natural gas;

the exploration for or development or use of a storage reservoir

in relation to another energy resource activity, or

for the purposes of storing or disposing of carbon dioxide or a prescribed substance, whether or not in relation to another energy resource activity;

the construction or operation of a facility for the purposes of an activity described in paragraph (a), (

b) or (c);

the construction or operation of any of the following facilities:

a facility for manufacturing hydrogen, ammonia or methanol from petroleum, natural gas, water or another substance;

a facility for converting natural gas into organic compounds;

iii

a petroleum refinery;

a prescribed facility;

the construction or operation of a pipeline;

the construction or maintenance of a prescribed road;

a prescribed activity;

energy resource road means a road referred to in paragraph (

g) of the definition of "energy resource activity";

environmental measure means an action a person must take or refrain from taking for the protection or effective management of the environment;

facility means a system of vessels, piping, valves, tanks and other equipment that is used to gather, process, measure, store or dispose of an energy resource, water or a substance referred to in paragraph (

d) or (

e) of the definition of "pipeline";

flow line means a pipeline that connects a well head with a scrubbing, processing or storage facility and that precedes the transfer of the conveyed substance to or from a transmission, distribution or transportation line;

former permit holder includes a person who was a director of a corporation that

held a permit with respect to which there has been a cancellation, declaration or expiry referred to in

section 40, and

no longer exists or has amalgamated with another corporation;

government's environmental objectives means the prescribed objectives of the government respecting the protection and effective management of the environment;

highway has the same meaning as in the Transportation Act ;

land owner means

a person registered in the land title office as the registered owner of the land surface or as its purchaser under an agreement for sale, and

a person to whom a disposition of Crown land has been issued under the Land Act ,

but does not include the government or a person referred to in paragraph (

b) of the definition of "unoccupied Crown land" in

section 1 of the Petroleum and Natural Gas Act ;

official , except in sections 6 and 8, means a person designated as an official under

section 7 (4);

off-site environmental mitigation activity , in relation to a permit, means

an activity outside the operating areas of the permit to mitigate or otherwise offset impacts to the environment of

an energy resource activity permitted by the permit, or

a related activity of an energy resource activity referred to in subparagraph (

i) or of the application for the permit under

section 24, and

any of the following activities in relation to an off-site environmental mitigation activity referred to in paragraph (a):

monitoring;

taking samples;

iii

conducting tests and analyses;

submitting records and information to the regulator;

oil and gas or storage activity means

an activity described in paragraph (a), (b), (

c) or (

d) of the definition of "energy resource activity",

the construction or operation of a pipeline that is used to

transport petroleum or natural gas, or

facilitate the carrying out of an activity described in paragraph (

a) of this definition, or

the construction or maintenance of an energy resource road, if that activity is being carried out to facilitate the carrying out of an activity described in paragraph (

a) or (

b) of this definition;

operating area means an area, identified in a permit, within which a permit holder is permitted to carry out an energy resource activity;

permit means a permit issued under

section 25 and includes any conditions imposed on a permit;

permit holder means

a person who holds a permit, and

a person, if any, who is the holder of a location with respect to that permit;

pipeline means, except in

section 9, piping through which any of the following is conveyed:

an energy resource;

a.1

carbon dioxide;

water used for, or produced in the course of, an energy resource activity;

solids;

substances prescribed under

section 133 (2) (

v) of the Petroleum and Natural Gas Act ;

other prescribed substances,

and includes installations and facilities associated with the piping, but does not include

piping used to transmit natural gas at less than 700 kPa to consumers by a gas utility as defined in the Gas Utility Act ,

a well head, or

anything else that is prescribed;

pipeline permit means a permit that includes a permission to construct, maintain or operate a pipeline;

pipeline permit holder means a permit holder of a pipeline permit;

regulator means the British Columbia Energy Regulator continued under

section 2;

related activity means an activity

that, under a specified enactment, must not be carried out except as authorized under the specified enactment or that must be carried out in accordance with the specified enactment, and

the carrying out of which is required for or facilitates

carrying out an energy resource activity,

carrying out an off-site environmental mitigation activity, or

iii

making an application for a permit under

section 24;

specified enactment means any of the following Acts:

Environmental Management Act

Forest Act

Heritage Conservation Act

Land Act

Water Sustainability Act

specified provision means the following provisions:

any of the following provisions of the Environmental Management Act :

section 9 [hazardous waste storage and disposal] ;

section 14 [permits] ;

iii

section 15 [approvals] ;

any of the following provisions of the Forest Act :

section 47.4 [licence to cut for persons occupying land or for energy resource purposes] , but only in relation to a master licence to cut;

sections 52.03 [issuance of cutting permit] , 52.10 [extension of cutting permit] and 52.11 [postponement of cutting permit] , but only in relation to a cutting permit for a master licence to cut;

iii

section 119.6 [issuance of road use permit for natural resource development purpose] ;

any of the following provisions of the Heritage Conservation Act :

sections 12.4 to 12.8 [permit authorizing certain actions] ;

sections 12.2 and 12.3 [heritage inspection and heritage investigation permits and orders] ;

any of the following provisions of the Land Act :

section 11, but only in relation to a lease or grant described in

section 11 (2) (

b) to (d) [disposing of Crown land] ;

[Repealed 2018-54-1.]

iii

section 38 [lease of Crown land] , but not to the extent that it relates to the granting of an option to purchase land;

section 39 [licence of occupation] ;

section 40 [right of way and easement] ;

section 96 (1) [occupational rental] ;

any of the following provisions of the Water Sustainability Act , but only in relation to a use approval or a change approval as those terms are defined in

section 1 (1) of that Act:

section 10 [use approvals] ;

section 11 [changes in and about a stream] , in respect of a person other than the government of British Columbia or Canada or a municipality;

iii

section 24 [permits over Crown land] ;

a prescribed regulation under a specified enactment;

spillage means an energy resource, oil, solids or other substances escaping, leaking or spilling from

a pipeline, well, shot hole, flow line, or facility, or

any source apparently associated with any of those substances.

Application

1.1

This Act does not apply in relation to a prescribed energy resource activity.

Administration

British Columbia Energy Regulator

British Columbia Energy Regulator

The Oil and Gas Commission is renamed as the British Columbia Energy Regulator and is continued as a corporation consisting of a board of directors appointed under this section.

The board is to consist of at least 5 and no more than 7 directors appointed by the Lieutenant Governor in Council as follows:

one director who is a deputy minister;

one director who is an Indigenous person;

at least 3 and no more than 5 additional directors.

The chair of the board is a director who

is designated in writing as chair by the minister, or

if a chair is not designated under paragraph (a), is appointed by the board in accordance with procedures established under

section 5 (1).

The board must elect a vice chair from among the directors.

An individual may be appointed as a director for a term of no more than 5 years and may be reappointed.

A majority of the directors holding office constitutes a quorum at meetings of the board.

If there is a tie vote, the chair of the board or, in the absence of the chair, the vice chair has the deciding vote.

A vacancy in the membership of the board or the incapacity of one of the directors does not impair the power of the remaining directors to act.

If a director dies or is unable to act or if a director's position is otherwise vacant, the minister, by order, may appoint an acting director for a period not longer than 6 months.

The regulator may pay to a director remuneration and expense allowances at rates set by the minister.

Regulator is an agent of the government

The regulator is an agent of the government.

Purposes

The purpose of the regulator is to regulate energy resource activities in a manner that protects public safety and the environment, supports reconciliation with Indigenous peoples and the transition to low-carbon energy, conserves energy resources and fosters a sound economy and social well-being.

Direction and management of regulator

The board may pass resolutions it considers necessary or advisable to direct its affairs, exercise its powers and perform its duties, including resolutions for one or more of the following:

calling and holding meetings of the board and the procedures to be followed at meetings;

making regulations of the board;

approving the regulator's annual service plan under the Budget Transparency and Accountability Act , as well as the regulator's annual budget estimate detailing the expected revenues and planned expenditures of the regulator for the next fiscal year;

establishing a plan of organization to carry out the powers of the regulator.

The board must

establish, in accordance with the regulations, if any, a conflict of interest policy for the directors that includes provisions respecting

the disclosure of interests in contracts or transactions with the regulator,

the duty to account for profits,

iii

the validity of contracts and transactions in which a director has an interest, and

the disclosure of any property owned or office held by a director that may create a conflict of interest or duty,

submit the policy referred to in paragraph (

a) to the minister, and

establish a code of conduct, including conflict of interest provisions, that governs the conduct of employees of the regulator.

On receipt of a conflict of interest policy under subsection (2) (

b) or on the minister's own initiative, the minister may order the board to amend its conflict of interest policy and resubmit that policy to the minister in accordance with the order.

A resolution of the board that is approved by directors, whether present in person or approving by telephone, facsimile transmission, electronic mail or any other similar means of communication, confirmed in writing or other graphic communication, is as valid as if it had been passed at a meeting of the board properly called and constituted.

Capacity and powers of regulator

For the purposes of this Act, the regulator may do any or all of the following:

subject to subsection (2), acquire, hold and dispose of property;

invest money, and, subject to the prior approval of the Lieutenant Governor in Council, borrow money;

subject to subsection (2), expend money for the purposes of administering the Act;

do other things that the Lieutenant Governor in Council may authorize.

In the prescribed circumstances, the regulator may exercise the power referred to in subsection (1) (a), (

c) or (

d) only with the approval of the Lieutenant Governor in Council.

With the prior approval of the Lieutenant Governor in Council, the regulator may in any year pay to a municipality in which it has property a grant not greater than the amount that would be payable as taxes on the property in that year if the property were not exempt from taxation by the municipality.

If directed to do so by the Lieutenant Governor in Council, the regulator must pay to a municipality in which it has property a grant not greater than the amount that would be payable as taxes on the property in that year if the property were not exempt from taxation by the municipality.

Commissioner

6.1

The Lieutenant Governor in Council may appoint an individual, to be known as the commissioner, as the chief executive officer of the regulator.

If the commissioner dies or is unable to act or if the commissioner's position is otherwise vacant, the minister, by order, may appoint an individual to be the acting commissioner for a period not longer than 6 months.

The board may appoint a deputy commissioner.

A deputy commissioner has the powers of the commissioner, unless the board otherwise directs, and is subject to any directions given by the commissioner.

Powers of commissioner

Subject to the direction of the board, the commissioner must manage the operations of the regulator or supervise the management of those operations.

The commissioner has the powers and duties of an official and of the regulator under this Act, other than those powers and duties expressly given to the board under this Act.

The commissioner may hire employees of the regulator necessary to carry on the business and operations of the regulator and may define their duties and determine their remuneration.

The commissioner may designate a person as an official for the purposes of provisions, specified by the commissioner in the designation, of this Act or the regulations made under this Act.

The commissioner may

delegate the exercise of any power or performance of any duty conferred or imposed on the regulator under this Act, other than those powers and duties expressly given to the board under this Act, to an employee or official of the regulator or another public officer, and

in making a delegation, provide directions that are binding on the delegate respecting the exercise of the power or the performance of the duty.

A delegation under subsection (5) may be made by name or by designation of the office.

Regulator's responsibilities under specified enactments

For the regulation of energy resource activities and related activities, the regulator, instead of the official named in a specified provision,

has all the powers relating to a discretion, function or duty referred to in the specified provision, including, without limiting this, the powers in the specified enactment relating to the administration and enforcement of an authorization, and

is charged with all the responsibilities pertaining to that discretion, function or duty.

Despite subsection (1), both the regulator and the director, as the latter is defined in

section 1 of the Environmental Management Act , have all the powers referred to in

section 14 of that Act and are charged with all the responsibilities pertaining to those powers.

Subject to this Act, the exercise of the powers conferred on the regulator by subsection (1), the carrying out of each discretion, function and duty referred to in a specified enactment and the responsibilities with which the regulator is charged under this

section remain subject to the specified enactment and that specified enactment continues to apply.

Despite subsections (1) and (3), the regulator and the appropriate officials under the various specified enactments are each responsible for enforcing the specified enactments in relation to the matters described in the specified provisions.

Application of

section 8 to pipelines under jurisdiction of Canada

In this section:

approval means an approval, with any conditions imposed, under a specified enactment to carry out an activity

that, under the specified enactment, must not be carried out except as approved under the specified enactment, and

the carrying out of which is required for or facilitates

making an application under the Canadian Energy Regulator Act (Canada) to operate or construct a pipeline, or

operating or constructing a pipeline;

pipeline has the same meaning as in the Canadian Energy Regulator Act (Canada).

The regulator's powers under

section 8 do not include the power to issue an approval with respect to a pipeline that is subject to the Canadian Energy Regulator Act (Canada).

Despite subsection (2), the Lieutenant Governor in Council may, by regulation, extend the regulator's powers under

section 8 to include the power to issue an approval under one or more specified enactments with respect to a pipeline referred to in subsection (2).

If the regulator's powers are extended as described in subsection (3) in relation to an approval under one or more specified enactments,

section 8 applies respecting the applicable specified enactments in relation to the pipeline, whether or not the regulator issued the approval,

section 24 (3) does not apply to the granting of the approval,

b.1

section 32 (1.1) does not apply in relation to the approval, and

for the purposes of this Act other than this

section and sections 34, 39 (1) and 104 and

Part 10, an approval must be considered to be an authorization and a person who holds an approval must be considered to be an authorization holder.

Delegations and designations under other enactments

9.1

For the regulation of energy resource activities and other activities that are required for or facilitate energy resource activities,

the regulator may exercise a power or perform a duty that is delegated to the regulator under another enactment, and

an employee or official of the regulator may exercise a power or perform a duty that is conferred or imposed on the employee or official, as the case may be, under another enactment.

Section 7 (5) and (6) [power of commissioner to subdelegate] applies in relation to a power or duty referred to in subsection (1) (

a) of this section.

Minister may order independent audit

The minister may order an independent audit of the performance of the regulator in fulfilling its purposes or exercising its powers and performing its functions and duties under this Act.

The minister responsible for the Wildlife Act may order an independent audit of the performance of the regulator in fulfilling its purposes or exercising its powers and performing its functions and duties under this Act in relation to the protection and effective management of the environment.

An order under subsection (1) or (2) must include terms of reference for the audit.

If requested by an auditor appointed for the purposes of subsection (1) or (2), the regulator must submit records in its possession that the auditor determines are relevant to the audit.

Before an audit report is finalized, the auditor must provide to the board

a copy of the draft audit report, and

a reasonable opportunity to review and comment on the report.

As soon as practicable after completing an audit, the auditor must submit the final audit report and any comments of the board to

the minister who issued the order under subsection (1) or (2), and

the board.

Advisory committee

The board may establish and appoint an advisory committee to consider or inquire into any matter and to report its findings and provide its advice to the board.

The regulator may pay to a person appointed as a member of an advisory committee remuneration and expense allowances at rates set by the minister.

Inquiries and recommendations

At the request of the Lieutenant Governor in Council, the regulator must, at the places and times and in a manner the Lieutenant Governor in Council considers advisable,

make inquiries, conduct investigations and prepare studies and reports on any matter within the scope of this Act, and

recommend to the Lieutenant Governor in Council any measures the regulator considers necessary or advisable in the public interest related to energy resource activities.

Subsection (1) does not apply to a matter that is before the regulator.

Public Service Act and Public Service Labour Relations Act

The Public Service Act and the Public Service Labour Relations Act do not apply to the regulator or to its employees.

Despite subsection (1), the Public Service Pension Plan, continued under the Public Sector Pension Plans Act , continues to apply to the regulator and to its employees.

Financial administration

The regulator must establish and maintain an accounting system satisfactory to the Minister of Finance.

The regulator must prepare financial statements in accordance with generally accepted accounting principles.

Whenever required by the Minister of Finance, the regulator must provide detailed accounts of its revenues and expenditures for the period or to the date the Minister of Finance designates.

All books or records of account, documents and other financial records of the regulator are at all times open for inspection by the Minister of Finance or a person designated by the Minister of Finance.

The Minister of Finance may direct the Comptroller General to examine and report to Treasury Board on any or all of the financial and accounting operations of the regulator.

The regulator, with the approval of the Minister of Finance, may budget for a deficit in a fiscal year.

The Minister of Finance, for the purposes of subsection (6), may grant an approval for one fiscal year or for any other number of fiscal years.

The fiscal year of the regulator is a period of 12 months beginning on April 1 in each year and ending on March 31 in the next year.

The Minister of Finance is the fiscal agent of the regulator.

Audit

Unless the Auditor General is appointed in accordance with the Auditor General Act as the auditor of the regulator, an auditor appointed by the regulator must, at least once for each fiscal year, audit and report on the accounts of the regulator to the Executive Council through the minister and to the board, and the costs of the audit must be paid by the regulator.

Application of Business Corporations Act

Subject to subsection (2), the Business Corporations Act does not apply to the regulator.

The Lieutenant Governor in Council, by order, may declare that certain provisions of the Business Corporations Act and Societies Act apply to the regulator.

Repealed

[Repealed 2015-27-52.]

Appropriation

In this section, revenue includes interest but does not include penalties.

The Minister of Finance, out of the consolidated revenue fund, must pay to the regulator

the gross revenue received from the levies authorized under

section 110,

the gross revenue received from the levies authorized under

section 47, and

the gross revenue received from fees in relation to

applications for and issuance of permits and the prescribed authorizations issued by the regulator under this Act, and

fees prescribed under

section 112 (1) (c).

With the approval of Treasury Board, the minister may pay out of the consolidated revenue fund, on application by the regulator, money required for the purposes of sections 12, 52 and 53.

Oil and Gas Appeal Tribunal

Continuation of Energy Resource Appeal Tribunal

The Oil and Gas Appeal Tribunal is continued as the Energy Resource Appeal Tribunal.

The appeal tribunal is to hear appeals under

section 72.

The appeal tribunal consists of the following members appointed by the Lieutenant Governor in Council after a merit-based process:

a member designated as the chair;

one or more members designated as vice chairs after consultation with the chair;

other members appointed after consultation with the chair.

Application of Administrative Tribunals Act

The following provisions of the Administrative Tribunals Act apply to the appeal tribunal:

Part 1 [Interpretation and Application] ;

Part 2 [Appointments] ;

Part 3 [Clustering] ;

Part 4 [Practice and Procedure] , except the following:

section 23 [notice of appeal (exclusive of prescribed fee)] ;

section 25 [appeal does not operate as stay] ;

iii

section 34 (1) and (2) [party power to compel witnesses and require disclosure] ;

section 44 [tribunal without jurisdiction over constitutional questions] ;

section 46.3 [tribunal without jurisdiction to apply the Human Rights Code] ;

Part 6 [Costs and Sanctions] , except

section 47.2 (1) (

a) and (c) [government and agents of government] ;

Part 7 [Decisions] ;

Part 8 [Immunities] ;

section 57 [time limit for judicial review] ;

section 59 [standard of review without privative clause] ;

section 59.1 [surveys] ;

section 59.2 [reporting] ;

Part 10 [Miscellaneous] , except

section 62 [application of Act to BC Review Board] .

Energy Resource Activities

Permits

Permit required

Subject to

section 23, a person must not carry out an energy resource activity unless

either

the person holds a permit that gives the person permission to carry out that energy resource activity, or

the person is required to carry out that energy resource activity by an order issued under

section 49, and

the person carries out the energy resource activity in compliance with

this Act and the regulations,

a permit issued to the person, if any, and

iii

an order issued to the person, if any.

Consultation and notification

In subsection (3), prescribed applicant means a person who intends to submit an application under

section 24 and who is in a prescribed class of persons.

Before submitting an application under

section 24, a person must notify the land owner of the land on which the person intends to carry out an energy resource activity of the person's intention to submit the application, and the notice must advise the land owner that the land owner may make a submission to the regulator under subsection (5) of this

section with respect to the application or proposed application.

Subject to subsection (4), before submitting an application under

section 24, a prescribed applicant must carry out the prescribed consultations or provide the prescribed notices, or both, as applicable, with respect to the energy resource activities, off-site environmental mitigation activities and related activities, if any, that will be the subject of the prescribed applicant's application.

The regulator, on written request, may exempt a person from one or more of the applicable consultation or notification requirements under subsection (3) and, on making an exemption, substitute other consultation or notification requirements than those prescribed for the purposes of subsection (3).

A person, other than the applicant, may make a written submission to the regulator with respect to an application or a proposed application under

section 24.

If a person makes a submission under subsection (5), the regulator must send a copy of the submission to the applicant or to the person intending to apply for a permit, as the case may be.

Preliminary plan

Before submitting an application under

section 24 for a pipeline permit, a person may submit to the regulator a preliminary plan of the proposed route of the pipeline.

Subject to subsection (3), a person may enter on land as necessary for making surveys, examinations or other arrangements for the purpose of fixing the site of the pipeline referred to in subsection (1), if the person

has submitted a preliminary plan under subsection (1), and

has either

provided the prescribed security to the regulator to compensate the land owner or the Crown for any damage or disturbance that may be caused by the entry on the land by the person, or

entered into an agreement with the land owner regarding entry on the land.

A person who has not entered into an agreement referred to in subsection (2) (b) (ii) must notify, in accordance with the regulations, the owner of the land of the person's intention to enter on that land.

The right of entry under subsection (2) does not extend to any of the following:

land occupied by a building;

the curtilage of a dwelling house;

protected heritage property, unless the person is authorized by the local government or the minister responsible for the protection of the protected heritage property.

In subsection (4) (c), protected heritage property means land or an object that is

protected under

section 12.1 of the Heritage Conservation Act ,

designated under

section 611 of the Local Government Act or

section 593 of the Vancouver Charter , or

included under

section 614 (3) (

b) of the Local Government Act in a

schedule to an official community plan.

Application for permit and authorization

Subject to subsection (4), a person may apply to the regulator for a permit by submitting, in the form and manner the regulator requires,

a description of the proposed site of the energy resource activity,

the information, plans, application form and records required by the regulator,

a written report, satisfactory to the regulator, regarding the results of the consultations carried out or notification provided under

section 22, if any,

the prescribed information,

the prescribed records, and

the security required under

section 30.

An application for a permit under subsection (1) may be consolidated with an application for an authorization.

Despite anything in a specified enactment, the regulator may not grant an authorization to a person for a related activity unless the person meets the prescribed requirements.

A person may not submit an application for a permit to drill or operate a well, other than a water source well, unless

the person is the owner of the petroleum and natural gas rights or is the holder of the location in respect of the well,

the person has an agreement with the owner or the holder of the location referred to in paragraph (

a) authorizing the drilling or operation, as applicable,

the person is the holder of a storage reservoir licence issued under

section 130 of the Petroleum and Natural Gas Act , or

the minister has approved the submission under subsection (5).

For the purposes of subsection (4) (d), the minister may

approve the submission by a person of an application for a permit to drill a well if the well is to be drilled for exploratory or research purposes only, and

in approving a submission under paragraph (a), declare that, if a permit is issued to the person on the basis of the submission, the person is not required to be an owner or holder referred to in subsection (4) or have the agreement referred to in that subsection in order to drill or operate the well for the purposes referred to in paragraph (a).

Permits and authorizations issued by regulator

Subject to subsection (1.1), on application by a person under

section 24 and after considering

written submissions made under

section 22 (5), if any, and

the government's environmental objectives, if any have been prescribed for the purposes of this section,

the regulator may issue a permit to the person if the person meets the requirements prescribed for the purposes of this section.

1.1

The Lieutenant Governor in Council, by regulation, may issue a direction to the regulator with respect to the exercise of the regulator's power under

section 8 or subsection (1) of this section, and the regulator must comply with the direction despite any other provision of

this Act, the regulations or an order made under this Act, or

a specified enactment.

In issuing a permit under subsection (1), the regulator

must specify the energy resource activities the person is permitted to carry out, and

may impose any conditions on the permit that the regulator considers necessary.

A permit and any authorizations granted to the applicant for the permit may be issued as a single document.

If the regulator issues a permit under subsection (1), the regulator must provide notice, in accordance with subsection (5), to the land owner of the land on which an operating area is located.

A notice under subsection (4) must

advise the land owner of the issuance of the permit and of the location of the proposed site of an energy resource activity on the land owner's land, and

state that the land owner may appeal under

section 72 the decision to issue the permit, and include an address to which an appeal may be sent.

A permit holder must not begin an energy resource activity on a land owner's land before the expiry of 15 days from the day the permit was issued, unless the land owner consents in writing to the activity beginning before the expiry of that period.

Off-site environmental mitigation activities

25.1

In this section:

energy resource management area means an energy resource management area established under

section 105.1 (1) (b) (i);

mitigation area , in relation to an oil and gas management area, means a mitigation area established under

section 105.1 (1) (b) (ii) as a mitigation area for the oil and gas management area;

Subject to subsection (3) and the regulations, in issuing or amending a permit that permits an energy resource activity in a prescribed class of energy resource activities to be carried out in an energy resource management area, the regulator

must specify in the permit

the off-site environmental mitigation activities the permit holder is required to carry out, and

the mitigation area for the energy resource management area, or a location in that mitigation area, where those off-site environmental mitigation activities must be carried out, and

may specify in the permit when and how those off-site environmental mitigation activities must be carried out, including, without limitation, by specifying methods to be used or results to be achieved.

In amending a permit, the regulator may not specify off-site mitigation activities in relation to any of the following:

an energy resource activity that is or was permitted by the permit before the amendment, unless the amendment will increase the potential impacts to the environment of the energy resource activity;

in the case of an amendment that will increase the potential impacts to the environment of an energy resource activity described in paragraph (a), the actual or potential impacts to the environment of the energy resource activity permitted by the permit before the amendment.

Actions by regulator respecting permit

0.1

In this section, associate , in relation to a permit holder or applicant, means any of the following, as applicable:

an agent of the applicant or permit holder;

a director, officer or shareholder of the applicant or permit holder;

a person who, in the opinion of the regulator,

may have influence over the applicant or permit holder, or

may be able to affect the activities permitted by the permit.

The regulator may

refuse to issue a permit,

suspend a permit or a permission specified in a permit,

cancel a permit or a permission specified in a permit, or

amend a permit.

Without limiting the authority of the regulator under subsection (1), the regulator may make a decision under subsection (1) if the applicant or permit holder, or an associate of the applicant or permit holder, does any of the following:

contravenes or has contravened

this Act, the regulations, a permit, an authorization or an order issued under this Act, or

the Petroleum and Natural Gas Act or regulations made under that Act;

fails to meet or no longer meets any of the conditions of

section 24 (4);

fails to meet or no longer meets the requirements prescribed for the purposes of

section 25 (1), if any;

begins an energy resource activity permitted by a permit but then fails to carry out or continue that energy resource activity;

engages in or has engaged in a pattern of conduct that shows, in the commissioner's opinion, that the person is unfit to have a permit;

is or has been convicted of an offence under

this Act or any other enactment, or

for conduct that shows, in the commissioner's opinion, that the person is unfit to have a permit.

Without limiting the authority of the regulator under subsection (1), the regulator may make a decision under subsection (1) with respect to an applicant or permit holder if the applicant or permit holder is an employer, employee, officer, director or agent of a

permit holder against whom the regulator has made a decision under subsection (1), or

permit holder that has an employee, officer, director or agent against whom the regulator has made a decision under subsection (1).

Without limiting the authority of the regulator under subsection (1), the regulator may make a decision under subsection (1) with respect to a permit holder who holds more than one permit for any contravention by the permit holder of

any of the permit holder's permits, or

any order issued to the permit holder with respect to energy resource activities permitted, or off-site environmental mitigation activities required, under any of the permit holder's permits.

If the regulator suspends or cancels a permit or a permission under subsection (1) (

b) or (

c) or a permit expires under

section 32 (1), the regulator may also suspend or cancel an authorization issued to the permit holder for a related activity of an energy resource activity permitted, or an off-site environmental mitigation activity required, by the permit, whether or not a specified enactment prohibits the suspension or cancellation of the authorization or requires the regulator to make a finding other than the suspension or cancellation of a permit before suspending or cancelling an authorization.

The regulator must give a permit holder an opportunity to be heard before making a decision under subsection (1) (b), (

c) or (

d) or (5) and must notify the permit holder of its decision under any of those provisions.

If the regulator refuses under subsection (1) to issue a permit, the regulator must provide notice, in accordance with subsection (8), to the land owner of the land notified by the applicant under

section 22 (2).

A notice under subsection (7) must advise the land owner

that the regulator has refused to issue a permit,

that the applicant for the permit may, in relation to the refusal, request a review under

section 70 or appeal under

section 72, and

that the land owner may, on request, be a party to an appeal referred to in paragraph (b).

Spent permit or permission

The regulator, on its own initiative or on application by a permit holder or authorization holder, may declare to be spent

a permit, if the regulator considers that the permit holder no longer requires the permit,

a permission specified in a permit, if the regulator considers that the permit holder no longer requires the permission, and

despite anything in a specified enactment prohibiting the declaration, an authorization held by the permit holder or authorization holder, if the regulator considers that the permit holder or authorization holder no longer requires the authorization.

Before the regulator makes a declaration under subsection (1) on its own initiative, the regulator must give the permit holder or authorization holder an opportunity to be heard.

If the regulator declares a permit or permission or an authorization to be spent under subsection (1), the regulator must provide written notice of that declaration to the permit holder, former permit holder, authorization holder or former authorization holder.

Permitted activity under pipeline permits

In this section:

applicable Act means the Forest Act , the Forest and Range Practices Act , the Railway Act and the Railway Safety Act ;

authority means a person authorized to grant an approval under an applicable Act.

Despite anything in an applicable Act but subject to subsection (3),

the regulator, in a pipeline permit, may give permission to the pipeline permit holder to construct or operate a pipeline across, along, over or under any highway, road, public place, railway, underground communication or power line or another pipeline, and

the pipeline permit holder may carry out the activities referred to in paragraph (

a) in accordance with the pipeline permit and this Act.

If, but for subsection (2), a permit holder would not be entitled to carry out the activities referred to in subsection (2) (

a) without obtaining an approval under an applicable Act, the authority, on application made by the pipeline permit holder in accordance with the applicable Act, must grant the approval to the pipeline permit holder, but may impose, with respect to the carrying out of those activities, any conditions that the authority is authorized to impose on the approval under the applicable Act.

Transfer of permit and authorizations

On application in writing signed by both a permit holder and a person who wants to acquire the permit, the regulator

may transfer the permit to that person, subject to any conditions the regulator considers necessary, and

if the regulator transfers the permit under paragraph (a), must transfer, despite anything in a specified enactment prohibiting the transfer, all authorizations issued to the permit holder for related activities of an energy resource activity permitted, or an off-site environmental mitigation activity required, by the permit.

1.1

On application in writing signed by both an authorization holder and a person who wants to acquire the authorization, the regulator may transfer, despite anything in a specified enactment prohibiting the transfer, the authorization to that person, subject to any conditions the regulator considers necessary.

1.2

Despite subsection (1), an application under that subsection is not required to be signed by the permit holder if

the permit is cancelled under

section 26, 33 or 43.3,

the permit is declared to be spent under

section 27,

the permit relates to an orphan site under

section 45, or

the regulator is satisfied that the permit holder no longer exists or cannot be located.

In deciding whether to grant an application under subsection (1), the regulator may consider

any of the matters referred to in

section 26 (2) to (4), and

any other matter that may be considered under a specified enactment,

as though the person who wants to acquire the permit were an applicant for the permit and an authorization referred to in subsection (1) (

b) of this section.

2.1

Subsection (2) applies to a transfer under subsection (1.1).

2.2

If the regulator decides to grant an application under subsection (1) in relation to a permit described in subsection (1.2) (

a) or (b), the permit is reinstated.

2.3

If the regulator decides to grant an application under subsection (1) in relation to a permit described in subsection (1.2) (c), the orphan site designation is cancelled.

A person to whom a permit or authorization is transferred under subsection (1) or (1.1) has the same rights and obligations as if the permit or authorization had been issued to that person.

Required security

The regulator, by order or by imposition of a condition under

section 25 (2) (b), may require a holder or applicant to provide security to the regulator, in the amount the regulator requires and in accordance with the regulations, to ensure the performance of an obligation under this Act, a permit or an authorization.

In this section, holder or applicant means a permit holder, an applicant for a permit, a transferee of a permit, an authorization holder, an applicant for an authorization or a transferee of an authorization.

Amendment of permit

Before submitting an application under subsection (4) for an amendment to a permit, a permit holder must provide notice to the land owner of the land on which an operating area is located, and the notice must

provide a description of the proposed amendment, and

advise the land owner that the land owner may make a submission to the regulator under subsection (2).

1.1

The regulator may exempt a person or a class of persons from the requirement to provide notice under subsection (1) to a land owner or a class of land owners if the regulator is satisfied that

the activity respecting the proposed amendment would not be carried out on the land of the land owner or class of land owners, and

the proposed amendment would not change the effect of the permit on the land of the land owner or class of land owners.

A land owner who receives a notice under subsection (1) may make a written submission to the regulator regarding the proposed amendment within 15 days of receiving the notice.

If a land owner makes a submission under subsection (2), the regulator must send a copy of the submission to the permit holder.

After complying with subsection (1), a permit holder may apply to the regulator for an amendment to the permit holder's permit by submitting an application in writing.

On receipt of an application under subsection (4), the regulator may require the permit holder to carry out one or more of the prescribed consultations or provide one or more of the prescribed notices, as applicable, with respect to the proposed amendment.

A permit holder required to carry out consultations or provide notice under subsection (5) must submit a written report to the regulator regarding the results of the consultations or notice.

On receipt of an application under subsection (4) and after considering a submission made under subsection (2), if any, and the results of consultations carried out or notices provided under subsection (5), if any, the regulator may amend the permit holder's permit or refuse to amend the permit.

An amendment made under subsection (7) is effective on and after the day it is made, unless the amendment changes the effect of the permit on the land of the land owner referred to in subsection (1), in which case the amendment is effective on and after the earlier of the following:

the 15th day following the day it is made;

the day the permit holder obtains written consent from the land owner to treat the amendment as being in effect on and after the date the consent is given.

If the regulator amends a permit under subsection (7), the regulator must provide notice to the land owner referred to in subsection (1) in accordance with subsection (10), unless notice was not required under subsection (1.1).

A notice under subsection (9) must

advise the land owner of the amendment,

state that the land owner may appeal under

section 72 the decision to amend the permit if the amendment changes the effect of the permit on the land of the land owner, and

provide an address to which an appeal may be sent.

If the regulator refuses to amend a permit under subsection (7), the regulator must provide to the land owner referred to in subsection (1) notice in accordance with subsection (12).

A notice under subsection (11) must advise the land owner

that the applicant for the amendment may, in relation to the refusal, request a review under

section 70 or appeal under

section 72, and

that the land owner may, on request, be a party to an appeal referred to in paragraph (a).

Expiration of permit and authorizations

Subject to subsections (8) and (9), a permit and, despite anything in a specified enactment, any authorization issued to the permit holder for a related activity of an energy resource activity permitted, or an off-site environmental mitigation activity required, by the permit expire on the day after the prescribed period has elapsed if the permit holder has not by that day begun an energy resource activity permitted by the permit.

1.1

Despite anything in a specified enactment, an authorization issued to an authorization holder expires if the authorization holder has not applied for a permit before the prescribed period has elapsed.

A permit holder, before the expiry of the permit holder's permit under subsection (1), may apply to the regulator for an extension of the prescribed period with respect to the permit holder's permit and authorizations by submitting to the regulator the information, application form and records required by the regulator.

On receipt of an application under subsection (2), the regulator may require the permit holder to carry out one or more of the prescribed consultations or provide one or more of the prescribed notices with respect to the extension for which the application is made.

A permit holder required to carry out consultations or provide notice under subsection (3) must submit a written report to the regulator regarding the results of the consultations or notice.

On application under subsection (2), the regulator may

extend by not more than one year the prescribed period with respect to the applicant's permit, and

in granting an extension, impose additional conditions on the permit and the authorizations.

Despite anything in a specified enactment, if the regulator grants an extension under subsection (5) for a period of time, the regulator may also extend the term of an authorization referred to in subsection (1), other than an authorization under

section 10 [use approvals] of the Water Sustainability Act .

An extension with respect to a permit holder's permit and authorizations may be granted under this

section only once, unless the regulator is satisfied there are special circumstances to justify one or more further extensions.

Despite subsection (1), a permit or an authorization does not expire under that subsection if the regulator grants an extension under subsection (5) with respect to the permit or the term of the authorization is extended under subsection (6).

Despite subsection (1), an authorization issued to a permit holder for a related activity of an off-site environmental mitigation activity required by the permit does not expire under that subsection if the permit holder has begun to carry out the off-site environmental mitigation activity by the day referred to in that subsection.

Surrender of permit or permission

A permit holder may send a notice to the regulator advising the regulator of the permit holder's intention to surrender the permit or a permission specified in a permit.

1.1

An authorization holder may send a notice to the regulator advising the regulator of the authorization holder's intention to surrender the authorization.

On receipt of a notice under subsection (1), the regulator may

cancel the permit holder's permit or permission, as the case may be, and

despite anything in a specified enactment, cancel an authorization issued to the permit holder for a related activity of

the energy resource activity with respect to which the notice was submitted, or

an off-site environmental mitigation activity required by the permit in relation to that energy resource activity.

2.1

On receipt of a notice under subsection (1.1), the regulator, despite anything in a specified enactment, may cancel the authorization.

A cancellation under subsection (2) or (2.1) is effective on the date specified by the regulator.

Rights and Obligations

Required ownership, interest or authorization

In this section:

Crown land means land, whether or not it is covered by water, that is vested in the government;

entry agreement means an agreement

that is between

a specified permit holder, and

a land owner of an area of land, and

that authorizes the specified permit holder to enter, occupy or use the land owner's area of land for the purposes of constructing and operating a pipeline other than a flow line;

specified facility means a facility referred to in paragraph (e) (

i) of the definition of "energy resource activity" in

section 1 (2), other than a facility for the production of hydrogen from a well;

specified permit holder means a pipeline permit holder who holds a permit respecting a pipeline other than a flow line.

Subject to sections 23 and 39 and subsections (2.1) and (3) of this section, a permit holder must not begin or carry out an energy resource activity or an off-site environmental mitigation activity on or under an area of land unless the permit holder,

if the area of land is not a highway, either is the owner in fee simple of the area of land or has acquired the area of land or the necessary interests in the area of land in accordance with

the Land Act or the Ministry of Lands, Parks and Housing Act ,

Part 16 or 17 of the Petroleum and Natural Gas Act , or

iii

subsection (3) of this section, or

if the area of land is a highway, has obtained an authorization required under an enactment to enter, occupy or use the area of land.

2.1

Subsection (2) (

a) does not apply in relation to the construction or operation of a specified facility on an area of land other than Crown land.

Subject to subsection (4), if a specified permit holder has failed to obtain an entry agreement, the specified permit holder may expropriate, in accordance with the Expropriation Act , as much of the land or interests in it of any person as may be necessary for constructing and operating the pipeline authorized by the permit.

The land that may be expropriated under subsection (3) must not exceed 18 m in breadth.

On application by a specified permit holder, the regulator may authorize, on any conditions the regulator considers appropriate, an expropriation, in accordance with the Expropriation Act , that exceeds the breadth specified in subsection (4).

Obligations in carrying out energy resource activities

In carrying out energy resource activities, off-site environmental mitigation activities and related activities, a permit holder, an authorization holder or a person entering land under

section 23 must minimize

damage and disturbance to the sites of those activities, and

waste.

A pipeline permit holder must make reasonable efforts to ensure that its energy resource activities do not prevent access to or use of a highway, road, railway or public place.

A pipeline permit holder, as soon as reasonably possible after constructing a pipeline, must restore, in accordance with the regulations, if any, the land and surface disturbed by the construction.

Environmental protection and management

A permit holder and a person carrying out an energy resource activity or an off-site environmental mitigation activity must comply with environmental measures established under the authority of a regulation made under

section 104.

Subject to regulations made under

section 98, the regulator, by order, may exempt, on any conditions the regulator considers necessary, a permit holder or a person carrying out an energy resource activity or an off-site environmental mitigation activity from a requirement imposed by regulation under

section 103.

Spillage

A permit holder, an authorization holder and a person carrying out an energy resource activity or an off-site environmental mitigation activity must

prevent spillage, and

promptly report to the regulator any damage or malfunction likely to cause spillage that could be a risk to public safety or the environment.

If spillage occurs, a permit holder, an authorization holder or person carrying out an energy resource activity or an off-site environmental mitigation activity must promptly do all of the following:

remedy the cause or source of the spillage;

contain and eliminate the spillage;

remediate any land or body of water affected by the spillage;

if the spillage is a risk to public safety or the environment, report to the regulator

the location and severity of the spillage, and

any damage or malfunction causing or contributing to the spillage.

A person who is aware that spillage is occurring or likely to occur must make reasonable efforts to prevent or assist in containing or preventing the spillage.

Records, reports and plans

A permit holder and an authorization holder must do all of the following:

prepare and maintain the prescribed records, reports and plans;

prepare and maintain an emergency response program and a response contingency plan satisfactory to the regulator or as prescribed by regulation, if any;

prepare and maintain the records, reports and plans the regulator orders the permit holder or authorization holder to maintain;

at the request of the regulator, produce the records, reports and plans referred to in paragraph (a), (

b) or (

c) for inspection and copying;

at the request of the regulator or as prescribed by regulation, submit to the regulator, in the form and manner the regulator requires, the records, reports and plans referred to in paragraph (a), (

b) or (c).

[Repealed 2015-40-15.]

Disclosure

38.1

The regulator, in accordance with and to the extent required by the regulations, must

disclose to the public, or keep confidential, the records, reports and plans referred to in

section 38, and

disclose to the public applications received under sections 24 and 31.

Suspension of activity

If a permit holder begins an energy resource activity but ceases to have the interests in land or authorization referred to in

section 34 necessary to carry out that activity, the permit holder must immediately suspend all energy resource activities and related activities being carried out on that land, unless the regulator approves the continuation of those activities under subsection (2).

The regulator, on application by a permit holder referred to in subsection (1), may

approve the continuation of the permit holder's energy resource activities and related activities, and

on granting an approval under paragraph (a), impose additional conditions on the permit holder's permit and authorizations, if any.

A permit holder with permission to drill or operate a well must immediately suspend its drilling and operations if

the permit holder ceases

to be the owner of the petroleum and natural gas rights or the holder of the location in respect of the well,

to have a valid agreement with the owner of the rights or the holder of the location referred to in subparagraph (

i) authorizing the drilling or operation, as applicable, or

iii

to hold a storage reservoir licence issued under

section 130 of the Petroleum and Natural Gas Act , or

the minister rescinds a declaration made under

section 24 (5) with respect to the permit holder and those activities.

A permit holder who suspends activities under subsection (1) or (3) must

immediately notify the regulator of the suspension,

comply with the prescribed requirements, and

carry out any actions as directed by the regulator.

Obligations when permit, permission or authorization expires or is cancelled or spent

If a permit, a permission specified in a permit or an authorization

is cancelled under

section 26, 33 or 43.3,

is declared to be spent under

section 27, or

expires under

section 32,

the permit holder, former permit holder, authorization holder or former authorization holder, as the case may be, must

unless otherwise ordered by the regulator, perform each obligation imposed

in relation to the permit, permission or authorization under this Act or a specified enactment, and

under the permit or authorization

that has not been performed by the date of the cancellation, declaration or expiry,

comply with the prescribed requirements, and

carry out any other actions for the purposes of restoration or the protection of public safety that the regulator orders the permit holder, former permit holder, authorization holder or former authorization holder to carry out.

Certificate of restoration

A person, other than a person in a prescribed class of persons, to whom

section 40 (

a) or (

b) applies, or

an order has been issued under

section 49

may apply to the regulator for a certificate of restoration by submitting, in the form and manner the regulator requires, the information and other records required by the regulator.

On application by a person under subsection (1), the regulator may issue to the person a certificate of restoration certifying, on the basis of the information known to the regulator at the time of certification, that the regulator is satisfied

in the case of an application by a person referred to in subsection (1) (a), that the person has complied with

section 40 (

d) to (f), or

in the case of an application by a person referred to in subsection (1) (b), that the person has complied with the order referred to in that subsection.

The issuance of a certificate of restoration does not relieve a person from any obligations under

section 40 or under an order referred to in subsection (1) (

b) of this

section in respect of any matter that was not known to the regulator at the time the certificate of restoration was issued.

Continuing liability

A transfer under

section 29, 43.09 or 43.10, a cancellation, declaration or expiry referred to in

section 40 or the issuance of a certificate of restoration under

section 41 does not affect or relieve the permit holder, former permit holder, authorization holder or former authorization holder from

the consequences of any contravention or offence or any related fine, imprisonment, fee, charge or penalty, if the contravention or offence occurred before the transfer, cancellation, declaration or expiry, or

any liability imposed on the permit holder, former permit holder, authorization holder or former authorization holder under a specified enactment.

Repealed

[Repealed 2019-19-46.]

2.1

Expanded Responsibility

Definitions

43.01

In this Division:

former permit holder means a person who held a permit that

was cancelled under

section 26, 33 or 43.3,

was declared spent under

section 27, or

expired under

section 32;

permit holder means a person who holds a permit;

principal , in relation to a corporation, means an individual who

is a director or officer of the corporation,

is directly or indirectly in control of the corporation, or

in the case of a corporation that has ceased to exist, was a person described in paragraph (

a) or (

b) immediately before the corporation ceased to exist;

responsible person , in relation to a permit, has the meaning given to it in

section 43.02.

Responsible person

43.02

The following are responsible persons for a permit:

a person who holds the petroleum or natural gas rights or the location for the permit;

a person who has a legal or beneficial interest in the petroleum or natural gas rights or the location for the permit;

a person who has a legal or beneficial interest in production or profits resulting from an energy resource activity authorized by the permit;

a person who is made responsible for the permit under

section 43.05 (2) [register of responsible persons] , or

section 43.06 [evasion of responsibility] .

Without limiting subsection (1), the following are also responsible persons for a permit:

if the location for the permit is cancelled, reverts or is abandoned, a person who was described in subsection (1) (

a) or (

b) immediately before that event;

if the permit is cancelled under

section 26, 33 or 43.3, is declared spent under

section 27 or expires under

section 32, a person who was described in subsection (1) (

c) immediately before that event.

Despite this section, the following are not responsible persons:

the government;

a person excluded by regulation.

Application of this Division

43.03

This Division applies in relation to any of the following:

a permit for an oil and gas or storage activity;

a permit for a prescribed energy resource activity.

Identifying responsible persons

43.04

A permit holder and a responsible person for a permit must

prepare and maintain the prescribed records, and

at the request of the regulator or as prescribed by regulation, submit those records to the regulator.

Subsection (1) does not apply in relation to a permit that is cancelled under

section 26, 33 or 43.3, is declared spent under

section 27 or expires under

section 32.

The following persons must, at the request of the regulator, submit to the regulator any information or records in the custody or control of the person that might assist the regulator in identifying responsible persons for a permit:

the permit holder or former permit holder;

a responsible person for the permit;

a person who the regulator has reasonable grounds to believe has information or records that might assist the regulator in identifying responsible persons for the permit.

Information and records required to be submitted under this

section must be submitted in the form and manner the regulator requires.

Register of responsible persons

43.05

Subject to the regulations, the regulator may establish a register of responsible persons.

A person who is listed in the register as a responsible person for a permit is conclusively deemed to be a responsible person for the permit for the purposes of this Division unless the person

satisfies the regulator that the person is not a responsible person, and

if required by the regulator, submits to the regulator any information or records that might assist the regulator in identifying responsible persons for the permit.

Information and records required to be submitted under this

section must be submitted in the form and manner the regulator requires.

Evasion of responsibility

43.06

The regulator, by order, may designate a person who has ceased to be a responsible person for a permit as a responsible person for the permit, after giving the person an opportunity to be heard, if

the regulator is satisfied, having regard to the circumstances in which the person ceased to be a responsible person, that the person intended to evade responsibility, or

the person ceased to be a responsible person in prescribed circumstances and the regulator is not satisfied that the person did not intend to evade responsibility.

Expanded responsibility — orders

43.07

In this section, specified provision means any of the following:

section 30 (1) [order requiring security] ;

section 40 (f) [order to carry out restoration or protection] ;

section 49 (1) [order issued by official] ;

section 50 (1) (c) [order to repay regulator] ;

section 53 (3) [order to pay costs of proceedings] .

If a permit holder or former permit holder has ceased to exist or fails to comply with an order under a specified provision, the regulator may make an order under the specified provision against

a responsible person for the permit, or

a principal of the permit holder or former permit holder or of a responsible person described in paragraph (a).

Expanded responsibility — limited work order

43.08

The regulator may make an order in relation to an orphan site against

a responsible person for the permit for the orphan site, or

a principal of the permit holder or former permit holder for the orphan site or of a responsible person described in paragraph (a).

An order under subsection (1) may require a person to

perform an obligation described in

section 40 (d),

comply with a requirement described in

section 40 (e), or

carry out an action that might have been ordered under

section 40 (f).

Expanded responsibility — transfer of permit

43.09

The regulator, by order, may transfer a permit in relation to an orphan site to

a responsible person for the permit for the orphan site, or

a principal of the permit holder or former permit holder for the orphan site or of a responsible person described in paragraph (a).

A transfer under this

section may be made without the consent of the permit holder or former permit holder or the person to receive the permit.

Section 29 (2.2), (2.3) and (3) applies in relation to a transfer under this section.

Expanded responsibility — transfer of authorization

43.10

In this section, linked authorization , in relation to an orphan site, means an authorization issued to the permit holder or former permit holder for the orphan site for related activities of an energy resource activity permitted by the permit.

The regulator, by order, may transfer a linked authorization for an orphan site to a person, despite anything in a specified enactment prohibiting the transfer, if

an order under

section 43.08 (1) in relation to the orphan site is made against the person, or

the permit for the orphan site is transferred under

section 43.09 (1) to the person.

A transfer under this

section may be made without the consent of the permit holder or former permit holder or the person to receive the linked authorization.

Section 29 (3) applies in relation to a transfer under this section.

Expanded responsibility — administration in relation to orders

43.11

This

section applies to

an order contemplated by

section 43.07 (2), or

an order under

section 43.08 (1), 43.09 (1) or 43.10 (2).

Before making an order to which this

section applies against a principal, the regulator must give the principal an opportunity to be heard.

An order to which this

section applies is not unreasonable, if made against a person other than a principal, only because the order imposes a burden on the person that is disproportionate to that person's interest in, control over or benefit from the relevant energy resource activity.

Compensation for restoration by responsible persons

43.12

Subject to the regulations, the regulator may, on application by a responsible person who has restored an orphan site in whole or in part, pay to the person an amount of compensation determined as follows out of the fund:

compensation = costs × compensable share

where

costs

the costs reasonably incurred by the person in carrying out the restoration, as determined by the regulator;

compensable share

the permit holder's interest in the energy resource activity that was carried out at the orphan site, expressed as a percentage of all interests in that activity, as determined by the regulator.

3.1

Dormant Sites

Definitions

43.1

In this Part:

dormant site means a site of an energy resource activity that is a dormant site in accordance with the regulations;

liability reduction plan means a plan under

section 43.4 (2);

portfolio , in relation to a permit holder, means all of the sites of an energy resource activity that are sites for which the permit holder holds a permit;

shutdown obligations means the obligations under

section 40 (

d) to (f).

Requirements to reduce liability

43.2

Subject to

section 43.4, a permit holder must comply with the prescribed requirements if the permit holder's portfolio

includes one or more dormant sites, and

meets the prescribed criteria, if any.

Automatic cancellation of permit

43.3

Subject to

section 43.4, if a site of an energy resource activity in a prescribed class of sites is a dormant site for longer than the prescribed period of time, the permit in relation to the site is cancelled on the day immediately after that period.

Liability reduction plan

43.4

Sections 43.2 and 43.3 do not apply in relation to a site of an energy resource activity if the site is subject to an approved liability reduction plan.

Subject to the regulations, a permit holder may submit to the regulator a plan to reduce the permit holder's shutdown obligations in relation to one or more sites.

The regulator may approve a liability reduction plan.

An approved liability reduction plan is an order of the regulator.

Without limiting any other power of the regulator, if a permit holder does not comply with an approved liability reduction plan, the regulator may revoke the approval of that plan.

Orphan Sites

Definitions

In this Part:

former Act means the Oil and Gas Commission Act , S.B.C. 1998, c. 39, as it was immediately before its repeal;

former permit holder means a person who held a permit that

was cancelled under

section 26, 33 or 43.3,

was declared spent under

section 27, or

expired under

section 32;

fund means the fund continued under

section 45 (3);

marketable gas means natural gas that is available for sale for direct consumption as a domestic, commercial or industrial fuel, or as an industrial raw material, or that is delivered to a storage facility, whether it occurs naturally or results from the processing of natural gas;

orphan site means a site designated under

section 45 (2);

parties , in relation to an orphan site, means

the permit holder or former permit holder for the orphan site,

the responsible persons for that permit holder or former permit holder, and

an individual who is designated by order under

section 44.1;

principal has the same meaning as in

section 43.01;

responsible person has the same meaning as in

section 43.01;

restore includes the requirements under

section 40;

surface lease means

a surface lease as defined in

section 141 of the Petroleum and Natural Gas Act , and

an order of the Surface Rights Board under the Petroleum and Natural Gas Act .

Parties — designating principals

44.1

The regulator, by order, may designate a principal of a party described in paragraph (

a) or (

b) of the definition of "parties" in

section 44 as a party for the purposes of paragraph (

c) of that definition.

Before making an order under subsection (1) against a principal, the regulator must give the principal an opportunity to be heard.

Reclamation of orphan sites

The regulator may restore orphan sites.

The regulator may designate as an orphan site

a well, facility, pipeline, or energy resource road if

the permit holder or former permit holder with respect to the well, facility, pipeline, or energy resource road is insolvent, or

the regulator has not been able to identify the permit holder or former permit holder in respect to the well, facility, pipeline, or energy resource road or is satisfied that that permit holder or former permit holder no longer exists or cannot be located, or

an area, if the regulator is satisfied that the area requires restoration as a direct or indirect result of the carrying out of an energy resource activity or an off-site environmental mitigation activity by

a person who is insolvent, or

a person the regulator has not been able to identify or is satisfied no longer exists or cannot be located.

The fund held by the regulator under

section 6.2 of the former Act is continued, and the purposes of the fund are to provide money as follows:

to pay the costs of restoration in respect of orphan sites;

to pay costs incurred in pursuing reimbursement for the costs referred to in paragraph (

a) from the person responsible for paying them;

to pay any other costs directly related to the operations of the regulator in respect of the fund;

to pay compensation for the purposes of

section 46.

The following must be deposited to the credit of the fund:

money paid to the regulator under

section 18 (2) (b);

money borrowed to meet any deficit in the fund;

money recovered or received by the regulator under subsection (7) of this section;

c.1

money received by the regulator specifically for a purpose set out in subsection (3);

c.2

money received by the regulator from a disposition described in

section 45.03 (1) or (2);

any interest or other income of the fund.

4.1

For certainty, nothing in this

section prevents the regulator from depositing money not described in subsection (4) to the credit of the fund.

The regulator may do one or more of the following:

pay money from the fund for any of the purposes referred to in subsection (3) in accordance with any regulations made for the purposes of this

section and

section 46;

from the fund, repay any money borrowed by the regulator for the purposes of the fund;

determine the date on which an orphan site has been satisfactorily restored.

For the purposes of subsection (2), a permit holder or former permit holder must be considered to be insolvent if the permit holder or former permit holder files for protection under the Companies' Creditors Arrangement Act (Canada) or is a bankrupt or an insolvent person under the Bankruptcy and Insolvency Act (Canada).

If the regulator restores an orphan site, the costs paid out of the fund in respect of that orphan site are a debt payable by the parties, jointly and severally, to the regulator and the regulator has a right of action against the parties for the recovery of that debt and may issue and file a certificate under

section 93.1 (1) naming any of them.

For the purpose of restoring an orphan site, the regulator has the same powers as it has under sections 53 and 57.

Reclamation of orphan sites — limitation periods

45.01

In this section, restoration debt proceeding means

an action referred to in

section 45 (7), or

the filing of a certificate under

section 93.1 for the purposes of

section 45 (7).

A restoration debt proceeding may be commenced at any time within 7 years after the date on which the debt becomes payable.

Registry of orphan sites

45.02

The regulator must publish, on a publicly accessible website maintained by or on behalf of the regulator,

a list of orphan sites, and

a notice that property abandoned at the listed orphan sites may be available for disposition.

Disposition of abandoned property

45.03

If the regulator, in the course of restoring an orphan site under

section 45 (1), disposes of property abandoned at the orphan site, the regulator must pay into the fund any money received in relation to the disposition.

If the regulator transfers a permit to a person under

section 29, in circumstances described in

section 29 (1.2), or under

section 43.09 (1), the regulator

may dispose of property abandoned at the site of the permit to the person or another person, and

must pay into the fund any money received in relation to the disposition.

Good and sufficient title vests in a person to whom property is disposed of under this section, as against any other person who claims or might claim against the property.

Subject to subsection (5) and the regulations, if the regulator is satisfied that a person has a claim to property disposed of by the regulator in relation to which money has been paid into the fund under subsection (1) or (2) (b), the regulator may pay out of the fund to the person an amount in relation to the claim.

The total amount that may be paid to persons under subsection (4) in relation to property disposed of by the regulator must not exceed the difference between

the amount of money paid into the fund in relation to the disposition of the property, and

the amount of money paid out of the fund in relation to the disposition of the property.

Reclamation of orphan sites — use of security

45.1

Despite

section 45, if the regulator receives money from the realization of security provided under

section 30 in relation to an orphan site,

the regulator must deposit the money received to the credit of the fund,

if applicable, the debt under

section 45 (7) in relation to the orphan site is reduced by the amount of the money received, and

subject to and in accordance with the regulations, the regulator must, if the regulator determines under

section 45 (5) (

c) that the orphan site has been satisfactorily restored, repay from the fund the portion, if any, of the money received that exceeds the sum of

the debt under

section 45 (7) in relation to the orphan site, and

the costs, estimated by the regulator, of continuing to manage the orphaned site.

Compensation for land owners respecting orphan sites

On application by a land owner on whose land the regulator expends money in accordance with

section 45, the regulator may make payments from the fund to compensate the land owner for the loss of use of the land owner's land as a result of the failure by the permit holder or former permit holder referred to in

section 45 (2) to restore the land, subject to the maximums, conditions and limitations prescribed by regulation.

In determining the amount of compensation to be paid to a land owner under subsection (1), the regulator may consider any payments due to the land owner or a previous land owner under a surface lease with respect to the site.

Before it compensates a land owner under subsection (1), the regulator may require as a condition of compensation that the land owner assign to the regulator the land owner's rights, if any, to overdue payments under a surface lease.

[Repealed 2018-15-11.]

Orphan site restoration levy

Subject to this section, the board, for the purposes of raising revenue for the fund, may make regulations as follows:

subject to the approval of Treasury Board,

requiring permit holders or a class of permit holders to pay a levy to the government, and

establishing the amount to be raised by the levy;

respecting payment of the levy and providing for the imposition of penalties, payable to the government, to enforce payment of the levy.

If a levy is imposed under this section, each permit holder who is required to pay the levy must pay the portion of the amount to be raised by the levy that is calculated in accordance with the following formula:

liability total liability

× amount to be raised by the levy

where

liability

the liability of the permit holder, and

total liability

the sum of the liabilities of all of the permit holders who are required to pay the levy.

For the purposes of subsection (2), the liability of a permit holder is the cost, estimated by the regulator, to the permit holder of compliance with

section 40 (

d) to (

f) in relation to all of the permits and authorizations held by the permit holder.

An estimate under subsection (3) must be based on the situation of the permit holder on a date specified in the regulation imposing the levy, which date

must be in the calendar year in which the levy is imposed, and

subject to paragraph (a), may be a date before the date that regulation comes into force.

For certainty, the board may impose more than one levy under this

section in a calendar year.

Compliance and Enforcement

Reference and Application

Reference and application

In this Part:

a reference to "the Act" is to be read as a reference to all of the following:

this Act;

the specified enactments, other than the Environmental Management Act and the Water Sustainability Act ;

iii

section 118 of the Petroleum and Natural Gas Act ;

a reference to "the regulations" is to be read as a reference to both the regulations made under this Act and to the regulations made under the specified enactments, other than the Environmental Management Act and the Water Sustainability Act ;

a reference to "an authorization"

includes an authorization under

section 138 [entry on unoccupied Crown land] of the Petroleum and Natural Gas Act , and

does not include any of the following:

an authorization under the Environmental Management Act or the Water Sustainability Act issued by the regulator under

section 8 of this Act;

an approval, as defined in

section 9 of this Act and as issued by the regulator under that section, under the Environmental Management Act or the Water Sustainability Act ;

a reference to a related activity does not include a related activity under the Environmental Management Act or the Water Sustainability Act .

Despite anything in a specified enactment,

an order may be issued under Division 2 with respect to an authorization or a related activity,

the powers granted under Division 3 to an official or peace officer may be exercised with respect to an authorization or a related activity, and

a finding may be made under

section 62 and an administrative penalty may be imposed under

section 63 with respect to an authorization or a related activity.

Orders

Order issued by official

An official may issue an order to

a person carrying out an energy resource activity, an off-site environmental mitigation activity or a related activity, with respect to those activities or any of the person's obligations under the Act or the regulations,

a permit holder, former permit holder, authorization holder or former authorization holder, with respect to any of the person's obligations under the Act or the regulations or the person's permit or authorization, if any, or

a person who may enter on land under

section 23, with respect to that entry,

if, in the opinion of the official,

the person fails to comply with the Act, the regulations, a previous order made under the Act, or the person's permit or authorization, or

the order is necessary

to mitigate a risk to public safety,

to protect the environment, or

iii

to promote the conservation of petroleum and natural gas resources.

An official may issue an order to a person under subsection (1) with respect to

an act or omission by the person whether or not the regulator has made a finding under

section 62 with respect to that act or omission.

An order under subsection (1) must be in writing and must

name the person to whom the order is addressed,

specify the action to be taken, stopped or modified,

state the date by which the person must comply with the order,

state the reasons for the order,

state that the person may request a review of the order under

section 70 or appeal the decision under

section 72, and include an address to which a request for a review or an appeal may be sent,

be dated the day the order is made, and

be served on the person to whom it is addressed.

[Repealed 2010-9-31.]

3.1

If an order under subsection (1) is addressed to an employee, agent or contractor of a permit holder, the official who served the order must serve a copy of the order on the permit holder.

Without limiting subsection (3) (b), an order under subsection (1) may specify any of the following requirements:

that a person must apply to obtain or amend a permit or an authorization in accordance with the Act and the regulations;

that a person remedy a failure referred to in subsection (1) (d);

that a person repair damage to the environment;

that a person suspend or resume an energy resource activity, an off-site environmental mitigation activity, a related activity or any aspect of any of those activities;

that a person use a specified method to carry out an energy resource activity or an off-site environmental mitigation activity;

that a person conduct tests, take samples, conduct analyses and submit records and information to the regulator;

that a person control or prevent the escape of petroleum, natural gas, water, waste or other substances from a well, pipeline or facility;

that a person repressure, recycle or carry out pressure maintenance of any pool or portion of it, or use any other enhanced recovery technique, including the introduction or injection of natural gas, water or other substances into any pool or part of it;

with respect to water produced in relation to the production of petroleum or natural gas, that a person dispose of the water into an underground formation or as otherwise specified;

that a person deepen a well beyond the formation from which production is being taken or has been taken;

that a person recomplete a well;

that a person restrict or cease production of petroleum, natural gas or water;

that natural gas be gathered, and processed if necessary, and that the natural gas or liquid hydrocarbons extracted be marketed or injected into an underground reservoir for storage or for any other purpose;

that a pipeline permit holder alter or divert its pipeline;

that a permit holder prepare and implement, in a form and manner satisfactory to the official, a program of measures to contain and eliminate spillage;

that a permit holder arrange for an independent audit of the permit holder's operations and activities and have the auditor's report submitted to the official.

Despite subsection (3), if the official referred to in subsection (1) is of the opinion that a person's actions or omissions are of such nature that they are causing, or may imminently cause, serious damage to the environment or that they are a risk to public safety, the order under subsection (1) may be issued orally.

If, under subsection (5), an official issues an order orally, an official, within 48 hours, must confirm the order in writing as required under subsection (3) or the order ceases to be effective.

An official may amend an order issued under subsection (1), and subsection (3) applies to the amendment.

If satisfied that the circumstances that gave rise to an order under subsection (1) are no longer present or have been affected by other circumstances, an official may terminate the order by providing the person to whom the order was addressed with written notice of the termination.

An order under subsection (1) may specify a requirement that is different from a requirement in a provision of a regulation under this Act, if the regulation expressly states that the provision is subject to this section.

Subject to subsection (9), if a regulation is made concerning a matter with respect to which an order has been made under this section, the order, if it has not been terminated under subsection (8), is no longer valid to the extent of any inconsistency between the order and the regulation.

Technical orders

49.1

The regulator may, by order related to a specific location, well or area, do any or all of the following:

designate a field by describing its surface area;

designate a pool by describing the surface area vertically above the pool and by naming the geological formation and the zone in which the pool occurs;

control and regulate the production of petroleum, natural gas and water by restriction, proration or prohibition.

After an order is made under subsection (1), the regulator must publish notice of the order as prescribed.

An order under subsection (1) (

c) may specify a requirement that is different from a requirement in a provision of a regulation under this Act, if the regulation expressly states that the provision is subject to this section.

Subject to subsection (3), if a regulation is made concerning a matter with respect to which an order has been made under subsection (1) (c), the order, if it has not been rescinded, is no longer valid to the extent of any inconsistency between the order and the regulation.

Regulator may carry out action

If a person to whom an order is issued under

section 40 (

f) or 49 (1) has not complied with the order by the date specified in the order, the regulator may do one or more of the following:

by order in writing, restrict or prohibit the person from carrying out an action referred to in the order;

after giving the person an opportunity to be heard, carry out an action referred to in the order;

by order in writing, require the person to pay to the regulator the amount of all direct and indirect costs the regulator determines were reasonably incurred in carrying out the action referred to in paragraph (b).

An order referred to in subsection (1) (

c) must provide the person to whom it is issued with an accounting of the expenditures relating to the action referred to in subsection (1) (b).

Access restricted or prohibited

Subject to this section, an official, by order, may restrict or prohibit, in a manner prescribed by regulation, access to a public area, including a highway, road, resource road, and railway, if the official is of the opinion that the restriction or prohibition is necessary

because of hazardous conditions relating to an energy resource activity, or

to facilitate an investigation relating to hazardous conditions described in paragraph (a).

If an official issues an order under subsection (1), the regulator must confirm the order in writing within 24 hours or the order ceases to be effective.

An order under subsection (1) (

b) may not restrict or prohibit access to a public area for a period of more than 30 days.

An order under subsection (1) (

b) may not restrict or prohibit access to a provincial public highway within the meaning of the Transportation Act .

Emergency measures

An official may, in the case of an emergency,

enter on any land or body of water and do the things the official considers necessary to implement and carry out measures to

contain and eliminate spillage, or

protect public safety, and

order

any permit holder or authorization holder, and

the use of any person's equipment and the operator of that equipment,

to assist in the implementation or carrying out of measures referred to in paragraph (a).

The regulator may reimburse a person for costs or expenses incurred as a result of an order issued under subsection (1) if the person is not, in the regulator's opinion, responsible for the emergency or for any related spillage or the likely source or cause of that spillage.

If costs or expenses are incurred by the regulator in implementing or carrying out measures referred to in subsection (1) (

a) or making a reimbursement under subsection (2), the regulator may do one or more of the following:

take, deal with and dispose of the spillage, subject to

section 55;

order the person who the regulator believes is responsible for the emergency or for any related spillage or the likely source or cause of that spillage to pay the costs and expenses, or a part of them;

order the person referred to in paragraph (

b) to indemnify the regulator for costs or expenses paid by the regulator;

for the purpose of paragraph (

b) or (c), direct the manner of payment or indemnification.

Control of energy resource activities

If, in the commissioner's opinion,

a permit holder has engaged in a pattern of conduct that shows that the person is unfit to carry out the energy resource activities permitted by the permit holder's permit, and

there is a risk to public safety, the environment or petroleum and natural gas resources,

the regulator may

enter, seize and take control of any well, pipeline, facility or storage reservoir together with any associated chattel and fixture and any pertinent records,

either discontinue all activity or take over the management and control of the well, pipeline, facility or storage reservoir,

take the steps the regulator considers necessary

to prevent the flow or release of petroleum, natural gas or other substances from any stratum that a well enters, including plugging a well at any depth, or

for public safety or to protect the environment, and

carry out any other prescribed actions.

If the regulator takes control of a well, pipeline, facility or storage reservoir,

the regulator may issue orders concerning the well, pipeline, facility or storage reservoir to

the permit holder, and

an officer, employee, agent and contractor of the permit holder operating the well, pipeline, facility or storage reservoir,

and, if the regulator issues an order to a person referred to in either subparagraph (

i) or (ii), the order applies to both the person referred to in subparagraph (

i) and the persons referred to in subparagraph (ii), and

subject to

section 55, the regulator may take, deal with and dispose of all petroleum, natural gas or other substances from the well, pipeline, facility or storage reservoir.

The commissioner may order by whom and to what extent costs and expenses incurred as a result of proceedings taken under this

section are to be paid.

Use of proceeds

From the proceeds of spillage disposed of under

section 52 (3) (

a) or of petroleum, natural gas or other substances disposed of under

section 53 (2) (b), the regulator

must pay royalties owed with respect to the petroleum or natural gas under

Part 10 of the Petroleum and Natural Gas Act , and

after making the payments referred to in paragraph (a), may pay

costs and expenses incurred as a result of proceedings taken under

section 52 or 53, as applicable, and

costs and expenses of carrying out investigations and conservation measures that the regulator considers necessary in connection with the exercise of its powers under

section 52 or 53.

Payment into court

The net proceeds of spillage disposed of under

section 52 (3) (

a) or of petroleum, natural gas or other substances disposed of under

section 53 (2) (

b) remaining after payment of the costs and expenses under

section 54 must be paid by the regulator into the Supreme Court, and must be paid out to the persons and in the amounts as may be determined by the court on application of a person claiming to be entitled to any of the proceeds.

Statutory immunity

Subject to subsection (3), no legal proceeding for damages lies or may be commenced or maintained against the commissioner, an official or the regulator's directors or employees because of anything done or omitted

in the exercise or intended exercise of any power under this Act, or

in the performance or intended performance of any duty or function under this Act.

Subject to subsection (3), no legal proceeding for damages lies or may be commenced or maintained against the government or the regulator because of anything done or omitted

in the exercise or intended exercise of a power under sections 50 to 53, or

in the performance or intended performance of a duty under sections 50 to 53.

Subsections (1) and (2) do not apply to a person referred to in subsection (1), the government or the regulator in relation to anything done or omitted in bad faith.

Inspections and Audits

Entry and inspection or audit

In subsection (2), dwelling means

a structure occupied as a private residence, and

if only part of a structure is occupied as a private residence, that part of the structure.

For any purpose related to the administration or enforcement of the Act, the regulations, a permit or an authorization, an official may enter, at any reasonable time, on land or premises, other than a dwelling, if the official has reasonable grounds to believe that

the land or premises is the site of an energy resource activity, an off-site environmental mitigation activity or a related activity that is regulated under the Act or the regulations or is carried on by a person who is required under this Act to hold a permit or an authorization to carry out that activity, or

records concerning the activities referred to in paragraph (

a) are kept on the land or premises.

2.1

A person must admit onto land or premises referred to in subsection (2) an official entering the land or premises under that subsection, and must provide the official with the means and assistance necessary for the purpose of the entry.

In order to obtain access under subsection (2), an official may enter land owned by a person other than a permit holder if the entry is reasonably necessary to obtain the access.

An official who enters on land or premises under this

section may

inspect or audit anything or any activity that is reasonably related to the purpose of the inspection or audit,

take samples and carry out tests and examinations,

require production for the purposes of inspection or audit or copying of

a permit or authorization that is required for the activity, and

a record required to be kept under the Act or the regulations, and

make inquiries the official considers necessary.

A peace officer has the powers and duties of an official under this

section with respect to the enforcement of the provisions of the Act and the regulations.

Inspection of vehicle

For any purpose related to the administration and enforcement of the Act, the regulations, a permit or an authorization, an official or peace officer may

require a person operating a vehicle to stop the vehicle, and

carry out an inspection of a vehicle and its contents.

Obligation of an official

An official who under this Part enters onto land or premises for the purposes of administering or enforcing the Act or the regulations, stops a vehicle, requests records or plans or seizes records or plans must provide proof of identity, on the request of the person who

is in possession or apparent possession of the land or premises,

has apparent custody or control of the records or plans being inspected or audited,

is in charge of the activity being inspected or audited, or

is operating a vehicle stopped under

section 58.

Obligation of person inspected or audited

The operator of a vehicle must stop the vehicle when required to do so by

an official referred to in

section 58, or

a peace officer

who

is in uniform,

displays an official identification card or badge, or

is in or near a vehicle that is either a vehicle of a peace officer or readily identifiable as a regulator or other government vehicle.

A person who is described in paragraphs (

a) to (

d) of

section 59 must produce, if and as required by the official or peace officer,

proof of identity,

a permit or an authorization held by the person under the Act, and

a record or plan required to be maintained under

section 38.

Requirement to submit to inspection or audit

A person must not

obstruct or interfere with an official or peace officer acting under the authority of this Division to administer or enforce the Act or the regulations, or

withhold, destroy, tamper with, alter, conceal or refuse to produce any information, record, plan, report, substance, sample or thing that is required to be produced by an official or peace officer administering or enforcing the Act or the regulations.

3.1

Public Requests for Investigation

Application for investigation

61.1

An individual who is resident in British Columbia and at least 18 years of age may apply to the regulator for an investigation of a prescribed contravention under this Act in relation to the emission of methane that the individual alleges has occurred or is occurring.

An application under this

section must include a statutory declaration or affirmation

stating the name and address of the applicant,

stating that the applicant is resident in British Columbia and at least 18 years of age,

stating the nature of the alleged contravention and the name of each person alleged to have done something, or to have failed to do something, in contravention of this Act or the regulations, and

containing a concise statement of the evidence supporting the allegations.

If a form of application has been prescribed for the purposes of this section, an application under this

section must be made in the prescribed form.

Investigation by regulator

61.2

After receiving an application under

section 61.1, the regulator must

acknowledge its receipt, in accordance with the regulations, within 20 days, and

investigate all matters that the regulator considers necessary to determine the facts relating to the alleged contravention.

Progress reports

61.3

Subject to subsection (3), after acknowledging receipt of an application under

section 61.1, the regulator must report, in accordance with the regulations, to the applicant every 90 days on the progress of the investigation and the action, if any, that the regulator has taken.

A report under this

section must include an estimate of the time required to complete the investigation.

A report under this

section is not required if the investigation is discontinued before the end of a 90-day period referred to in subsection (1).

Discontinuation of investigation

61.4

The regulator may discontinue an investigation if the regulator is of the opinion that

the alleged contravention does not require further investigation, or

the investigation does not substantiate the alleged contravention.

If an investigation is discontinued, the regulator must

prepare a written statement of the reasons for the discontinuation, and

in accordance with the regulations, send a copy of the statement to the applicant and to any person whose conduct was investigated.

A copy of the statement sent to a person whose conduct was investigated must not disclose the name or address of the applicant or any other personal information about the applicant.

Contraventions and Administrative Penalties

Contraventions

After giving an opportunity to be heard to a person who is alleged to have contravened a provision of the Act, the regulations, a permit, an authorization or an order, the regulator may find that the person has contravened the provision.

If a corporation contravenes a provision referred to in subsection (1), a director, agent or officer of the corporation who authorized, permitted or acquiesced in the contravention also contravenes the provision.

If an employee, contractor or agent of a permit holder contravenes a provision referred to in subsection (1) in the course of carrying out the employment, contract or agency, the permit holder also contravenes the provision.

If a person contravenes a provision referred to in subsection (1), any other person who

is directly or indirectly responsible for the act or omission that constitutes the contravention, and

is a contractor, employee or agent of the person or of an other person described in paragraph (

a) also contravenes the provision.

The regulator may not find that a person has contravened a provision referred to in subsection (1) if the person demonstrates to the satisfaction of the regulator that

the person exercised due diligence to prevent the contravention, or

[Repealed 2012-27-10.]

the person's actions relevant to the provision were the result of an officially induced error.

a corporation referred to in subsection (2),

an employee, contractor or agent referred to in subsection (3), or

a person referred to in subsection

(4) has not contravened a provision referred to in subsection (1) as a result of demonstrating to the satisfaction of the regulator anything referred to in subsection (5) (

a) and (c), the regulator may find that any of the other persons referred to in subsections (2) to (4) has contravened the provision, unless the other person demonstrates to the satisfaction of the regulator anything referred to in subsection (5) (

a) and (c).

Nothing in subsection (5) prevents

an official from issuing an order under

section 49 (1) to a person with respect to

an act or omission by the person, or

the regulator from doing anything referred to in

section 50.

A person does not contravene a provision referred to in subsection (1) by doing or omitting to do something if that act or omission is reasonably necessary to conform with the requirements of the Workers Compensation Act or any regulations under that Act.

Administrative penalties

If the regulator finds that a person has contravened a provision referred to in

section 62 (1), the regulator may impose an administrative penalty on the person in an amount that does not exceed the prescribed amount.

Before the regulator imposes an administrative penalty on a person, the regulator must consider the following:

previous contraventions by, administrative penalties imposed on or orders issued to

the person,

if the person is an individual, a corporation for which the individual is or was an officer, director or agent, and

iii

if the person is a corporation, an individual who is or was an officer, director or agent of the corporation;

the gravity and magnitude of the contravention;

the extent of the harm to others resulting from the contravention;

whether the contravention was repeated or continuous;

whether the contravention was deliberate;

any economic benefit derived by the person from the contravention;

the person's efforts to prevent and correct the contravention;

any other matters prescribed by the Lieutenant Governor in Council.

If a person is charged with an offence under this Act, an administrative penalty may not be imposed on the person in respect of the same circumstances that gave rise to the charge.

Notice of contravention or penalty

If the regulator finds that a person has contravened a provision referred to in

section 62 (1) or imposes an administrative penalty on a person, the regulator must give to the person a notice of the finding or administrative penalty and the notice must specify the following:

the contravention;

the amount of the penalty, if any;

the date by which the penalty, if any, must be paid;

the person's right to request a review of the decision under

section 70 or to appeal the decision under

section 72;

an address to which a request for a review or an appeal may be sent.

Due date of penalty

The person on whom an administrative penalty is imposed must pay the administrative penalty

if paragraph (

b) does not apply, within 30 days after the date on which the notice referred to in

section 64 is served on the person, or

by the later of the following:

if the person requests a review of the administrative penalty under

section 70, 30 days after the date on which the notice referred to in

section 71 (1) (

b) is served on the person, unless the penalty is rescinded under

section 71 (1) (a);

if the person appeals the administrative penalty under

section 72 and the appeal tribunal does not make an order under

section 72 (4) with respect to that appeal, 30 days after the date on which the decision of the appeal tribunal is served on the person, unless the penalty is rescinded under

section 72 (6) (

a) or dealt with as described in

section 72 (6) (b).

Enforcement of administrative penalty

An administrative penalty constitutes a debt payable to the government by the person on whom the penalty is imposed.

If a person fails to pay an administrative penalty as required under

section 65,

the government may file with the Supreme Court or Provincial Court a certified copy of the notice imposing the administrative penalty and, on being filed, the notice has the same force and effect, and all proceedings may be taken on the notice, as if it were a judgment of that court, and

the regulator may refuse to consider applications made by the person under

section 24.

Revenue from administrative penalties

The regulator must pay all amounts derived from administrative penalties into the consolidated revenue fund.

Time limit for imposing an administrative penalty

The time limit for making a finding under

section 62 and giving a notice under

section 64 is

3 years after the date on which the act or omission that is alleged to constitute the contravention occurred, or

if the commissioner issues a certificate described in subsection (2) of this section, 3 years after the date on which the commissioner learned of the act or omission referred to in paragraph (a).

A certificate purporting to have been issued by the commissioner certifying the date referred to in subsection (1) (

b) is proof of that date.

Reviews and Appeals

Definitions and application

In this Part:

determination means

with respect to an eligible person other than a land owner referred to in paragraph (b),

a decision made by the regulator under

section 25 or 26,

a declaration made by the regulator on its own initiative under

section 27,

iii

an order made by the regulator under

section 40 (f),

an order issued by an official or the regulator under Division 2 of

Part 5,

a finding made by the regulator under

section 62,

an administrative penalty imposed by the regulator under

section 63, and

vii

a prescribed decision made under this Act, and

with respect to a land owner of land on which an operating area is located,

a decision made by the regulator

under

section 25 to issue a permit to carry out an energy resource activity on the land of the land owner, and

under

section 31 to amend a permit, if the amendment changes the effect of the permit on the land of the land owner, and

a decision made by a review official under

section 71 to vary a determination referred to in paragraph (a) (

i) of this definition so that

a permit is amended, if the amendment changes the effect of the permit on the land of the land owner, or

a permit is issued to carry out energy resource activities on the land of a land owner;

eligible person means

an applicant for a permit,

a permit holder or former permit holder,

b.1

an authorization holder or former authorization holder,

a land owner of land on which an operating area is located,

a person to whom an order under

section 49 (1) has been issued, and

a person with respect to whom the regulator has made a finding of a contravention under

section 62;

review official means, in relation to a determination, a person who did not make the determination but who is designated in writing by the regulator to review the determination for the purposes of sections 70 and 71.

Despite anything in a specified enactment, a determination may not be appealed, reviewed or otherwise reconsidered except as provided in this Part.

Review by review official

Subject to subsection (2), an eligible person, other than a land owner of land on which an operating area is located, may request, in accordance with this section, a review of a determination.

An eligible person may not request a review of a determination under subsection (1) if the eligible person has appealed the determination under

section 72.

A request for a review under subsection (1) must be made within 30 days of receiving the later of

the determination, and

any written reasons respecting the determination.

Despite subsection (3), a review official may extend the time to request a review, even if the time to make the request has expired, if satisfied that

special circumstances existed which precluded making the request within the time period required under subsection (3), and

an injustice would otherwise result.

The eligible person must make the request in writing and must identify the error the eligible person believes was made or the other grounds on which a review is requested.

On receipt by the review official of a request under subsection (1), the determination to be reviewed as a result of the request

is stayed, if the determination is an administrative penalty imposed under

section 63, and

is not stayed, if the determination is not an administrative penalty referred to in paragraph (a), unless the review official orders that the determination is stayed.

The review official may conduct a written, electronic or oral review, or any combination of them, as the review official, in the review official's sole discretion, considers appropriate.

Powers of review official

As soon as practicable after receiving a request under

section 70 (1), the review official must

confirm, vary or rescind the determination, and

notify, in writing, the eligible person of the following:

the review official's decision;

the reasons for the decision;

iii

the eligible person's right to appeal the decision under

section 72.

If the review official varies a determination under subsection (1) so that

a permit is amended and the amendment changes the effect of the permit on the land of the land owner, or

a permit is issued that locates an operating area on the land of a land owner,

the review official must notify the land owner of the amendment or issuance in accordance with

section 25 (4) or 31 (9), as applicable.

Appeal

Subject to subsection (2), an eligible person may appeal to the appeal tribunal

a decision made under

section 71, if the eligible person was a party to the review under that section, and

a determination, if the eligible person has not, by the date the person commences the appeal, applied under

section 70 (1) for a review of the determination.

A land owner of land on which an operating area is located may appeal a determination under this

section only on the basis that the determination was made without due regard to

a submission previously made by the land owner under

section 22 (5) or 31 (2) of this Act, or

a written report submitted under

section 24 (1) (

c) or 31 (6).

Subject to subsection (4), the commencement of an appeal does not operate as a stay or suspend the operation of the determination or decision being appealed, unless the appeal tribunal orders otherwise.

The commencement of an appeal with respect to an administrative penalty operates as a stay of the determination that imposed the penalty or the decision that did not rescind the penalty, unless the appeal tribunal orders otherwise.

The appellant and the regulator are parties to an appeal, and

if a person to whom an order under

section 49 (1) has been issued files an appeal, the following persons, as applicable and if different from the appellant, are also parties to the appeal:

in the case of an order with respect to an energy resource activity permitted, or an off-site environmental mitigation activity required, by a permit, or a related activity of either of those activities, the permit holder;

in the case of an order with respect to a related activity of an application for a permit under

section 24, the applicant,

if a land owner of land on which an operating area is located files an appeal, the permit holder with respect to the energy resource activity is also a party to the appeal,

if an applicant for a permit appeals a refusal to issue a permit, a land owner notified by the applicant under

section 22 (2) is, on request, also a party to the appeal, and

if a permit holder appeals a refusal to amend a permit, the land owner of the land on which an operating area is located is, on request, also a party to the appeal.

On an appeal under subsection (1), the appeal tribunal may

confirm, vary, or rescind the decision made under

section 71 or the determination, or

send the matter back, with directions, to the review official who made the decision or to the person who made the determination, as applicable.

Despite the application of

section 24 (1) of the Administrative Tribunals Act to the appeal tribunal, a land owner must file a notice of appeal within 15 days of the day the determination being appealed was made.

Publication

The regulator may direct a person to publish, at the person's own cost, the facts relating to the imposition of an administrative penalty or to an order issued under Division 2 of

Part 5, if the person's rights of review and appeal have elapsed without the penalty or order being rescinded or dealt with as described in

section 72 (6) (b).

General

Lieutenant Governor in Council may order extension of pipeline

If the Lieutenant Governor in Council considers it necessary or in the public interest, the Lieutenant Governor in Council may order a pipeline permit holder to do any or all of the following:

to extend or improve its pipeline for the junction with a pipeline of a person or local authority distributing or authorized to distribute gas to the public;

to sell gas to the person or local authority referred to in paragraph (a), if to do so would not impair the pipeline permit holder's ability to render adequate service to its existing customers;

for the purposes in paragra