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Definitions
Section 2 of the Canadian Energy Regulator Act establishes statutory definitions for federal energy infrastructure regulation, including abandoned facilities and pipelines, oil and gas exports and imports, ground disturbance thresholds for pipeline protection, and incorporates Indigenous governing bodies and knowledge in energy decision-making processes.
Application of sections 317 and 318
Section 307 of the Canadian Energy Regulator Act extends regulatory sections 317 and 318 to offshore renewable energy projects and offshore power lines by substituting references to companies with persons and pipelines with offshore facilities, ensuring equivalent regulatory requirements.
Reimbursement — measures taken by government institution
The Canadian Energy Regulator Commission may order pipeline operators to reimburse federal, provincial, municipal governments, Indigenous bodies, and other persons for reasonable costs incurred responding to unintended or uncontrolled releases of oil, gas, or other commodities from pipelines, even if costs exceed the operator's statutory liability limits.
Limitations
Authorization holders for Canadian offshore renewable energy projects and offshore power lines must obtain prior written approval from the Canadian Energy Regulator before selling, transferring, purchasing, acquiring, or leasing such projects or their facilities, equipment, and systems, or before amalgamating with another company.
Jurisdiction
The Canadian Energy Regulator has exclusive jurisdiction to investigate non-compliance with the Act and authorization conditions, inquire into accidents involving pipelines, abandoned pipelines, international power lines, and offshore renewable energy projects, and issue findings, recommendations, and orders in the public interest.
Study and review
The Canadian Energy Regulator must continuously study and review energy exploration, production, processing, transmission, transportation, distribution, and trade activities both domestically and internationally, and oversee the safety and security of regulated and abandoned facilities.
Reports and recommendations to Minister
The Canadian Energy Regulator may submit reports to the Minister recommending measures for control, supervision, conservation, use, marketing and development of energy resources, and for ensuring the safety and security of regulated and abandoned energy facilities.
Effect of election
Section 260 of the Canadian Energy Regulator Act establishes that filing an election under section 259 for international power lines prevents new permit issuance, converts pending applications to certificate applications, and revokes existing permits or certificates. Applicants or permit holders who file the election and are acquiring or leasing land become liable for all damages and reasonable costs incurred by landowners from abandonment of such acquisition or lease.
Confidentiality
Section 61 of the Canadian Energy Regulator Act authorizes the Commission and designated officers to issue confidentiality orders protecting sensitive information from public disclosure when disclosure poses a real and substantial risk to pipeline, power line, or offshore renewable energy infrastructure security, protective systems, or public safety.
Amount to be paid
Section 164 of the Canadian Energy Regulator Act specifies payment obligations for the Regulator to compensate claimants. The Regulator must pay interim and final compensation amounts, costs, and interest (accrued at the Income Tax Act refund rate) within prescribed timeframes, as well as tribunal-awarded fees and travel expenses as authorized by regulations.
Failure to act
Under Canadian Energy Regulator Act s. 131, failure to pay an imposed penalty or request a review within the timeframe specified in s. 125 constitutes admission of the violation, leaving the person liable for the penalty.
Criteria
Before issuing an oil or gas licence, the Canadian Energy Regulator must consider all relevant factors including equitable distribution of designated oil and gas resources across Canada. Sections 348 to 351 of the Act apply to such licences.
Public hearing
Section 202 of the Canadian Energy Regulator Act requires the Commission to hold a public hearing when written statements are filed regarding pipeline projects. The Commission must select a convenient hearing location with stated reasons, publish notice locally, notify statement-filers, and permit them and other interested parties to present representations. The Commission may inspect affected lands and may disregard frivolous, withdrawn, or bad-faith statements.
Relocation
The Canadian Energy Regulator may order pipeline companies to relocate pipelines when necessary for safety, environmental protection, public infrastructure projects, or to prevent interference with drainage systems. The regulator determines cost allocation among parties, ensures procedural compliance with prior consultation requirements, and may award reasonable costs to regulatory proceeding participants.
Designated officers
The Chief Executive Officer of the Canadian Energy Regulator may designate employees as designated officers authorized to exercise regulatory functions and powers under the Act.
Role of Chairperson
Section 19 of the Canadian Energy Regulator Act defines the Chairperson's authority to preside over board meetings and perform assigned duties. The Vice-Chairperson may temporarily assume the role during absences but requires Governor in Council approval to act beyond 90 days.
Application for correction of errors
Under Canadian Energy Regulator Act section 208, pipeline companies must apply to the Regulator for a permit to correct any omissions, misstatements, or errors in registered plans, profiles, or books of reference. Once the Regulator issues a permit and certified copies are deposited with the appropriate land registry office, the documents are deemed corrected and pipeline construction may proceed in accordance with the correction.
Acting Lead Commissioner
The Deputy Lead Commissioner of the Canadian Energy Regulator may assume the Lead Commissioner role during absence, incapacity, or vacancy, but cannot act for more than 90 days without Governor in Council approval.
Recovery of loss, etc., caused by debris
Section 302 of the Canadian Energy Regulator Act establishes strict liability for losses, damages, and costs arising from debris generated during authorized energy work. Authorization holders are liable up to $1 billion (with reduced limits in Arctic Waters), while parties responsible for debris are jointly and severally liable based on fault. Claims prioritize personal losses, then government costs, then non-use value losses (recoverable only by government).
Right of entry
Section 309 of the Canadian Energy Regulator Act establishes the right for persons to enter and use offshore areas to conduct authorized works, manage abandoned offshore power lines, or develop offshore renewable energy projects. Lawful occupants may restrict access; disputes over entry rights are resolved through arbitration.
Costs
Section 330 of the Canadian Energy Regulator Act establishes cost allocation rules for compensation disputes. If the awarded compensation exceeds 85% of the company's settlement offer, the company must pay all legal, appraisal, and reasonable costs incurred by the claimant. If the award is at or below 85% of the offer, the Commission has discretion to allocate costs.
Variation of licences
The Canadian Energy Regulator Commission may vary licences issued under the Act either on its own initiative or upon application. Non-minor or non-technical variations require ministerial approval if deemed in the public interest. The Commission may impose new or modified conditions as necessary to fulfil the Act's purposes.
Appointment
Section 21 of the Canadian Energy Regulator Act establishes appointment procedures and tenure requirements for the Chief Executive Officer. The CEO is appointed by the Governor in Council on ministerial recommendation after consulting directors, must be a Canadian citizen or permanent resident, serves full-time on renewable terms up to six years with a maximum total tenure of ten years, cannot simultaneously hold a director position, and receives remuneration set by the Governor in Council.
Offence and punishment
Section 379 of the Canadian Energy Regulator Act establishes criminal offences and penalties for contraventions of the Act or regulations. Summary conviction carries fines up to $100,000 or one year imprisonment; indictable offence carries fines up to $1,000,000 or five years imprisonment. Due diligence is a defence. Corporate officers, directors, and agents who direct or participate in offences are liable. Each day of continued violation constitutes a separate offence.
Advance of compensation
Under Canadian Energy Regulator Act section 325, landowners whose property is subject to immediate entry rights granted by a company are entitled to receive advance compensation from that company, pending final compensation determination.
Vesting
Under the Canadian Energy Regulator Act, orders granting immediate land entry rights automatically vest specified title, interests, and rights in the applicant company. The company must register the order with the land registrar and notify the Regulator and landowner within 30 business days.
Determinations regarding compensation
Under Canadian Energy Regulator Act section 327, the Commission determines compensation disputes between energy companies and landowners when parties cannot agree. The Commission considers market value of acquired lands, changes in value over time, loss of use, adverse effects on remaining lands, nuisance and noise from operations, potential damage from company activities, livestock/property loss, relocation difficulties, and other relevant circumstances.
Prohibition — construction or ground disturbance
Section 335 of the Canadian Energy Regulator Act prohibits construction, ground disturbance, and vehicle operation on or across pipelines without authorization from the Regulator or pipeline company. The Regulator may issue orders governing facility design, construction, and safety measures, authorize companies to grant approvals, and direct remediation of non-compliant facilities. Violations are criminal offences with penalties up to $1 million.
Protection of pipeline from mining operations
Canadian Energy Regulator Act section 338 prohibits mining and mineral prospecting within 40 metres of pipelines and connected infrastructure without authorization from a designated officer. Oil and gas wells under pipelines are exempt if drilled beyond the 40-metre buffer. Applicants must submit detailed plans and profiles; officers may impose conditions to protect safety and security.
Powers
The Canadian Energy Regulator Tribunal possesses the powers of a superior court within its jurisdiction, including authority to compel witness attendance, administer oaths, examine witnesses, demand document production, and enforce orders. The Tribunal is not bound by formal rules of evidence but must respect legal privileges recognized under evidence law.
Examinations
Under Canadian Energy Regulator Act section 156, a Tribunal may require claimants or applicants to undergo medical or other examinations deemed reasonably necessary for adjudicating compensation claims or reconsideration applications.
Application for certificate
Pipeline companies applying to the Canadian Energy Regulator for a certificate must submit detailed maps showing the pipeline's general location along with required plans and specifications. Applicants must file copies with provincial attorneys general, and the Regulator must ensure public notice through newspaper publication or other appropriate media.
Order to reconsider
Section 184 of the Canadian Energy Regulator Act enables the Governor in Council to order the Commission to reconsider its report recommendations or conditions. Orders are binding and must be published in the Canada Gazette within 15 days. The Commission must submit a reconsideration report confirming, modifying, or replacing recommendations and conditions while addressing all necessary public interest factors. The reconsideration report is final unless another order is issued.
Extension or improvement
The Canadian Energy Regulator may direct natural gas pipeline operators to extend or improve facilities to interconnect with local distribution networks and serve municipalities or adjacent communities, provided no undue burden is imposed on the operator and service to existing customers is not impaired.
Application
Section 160 of the Canadian Energy Regulator Act establishes a compensation claims tribunal where persons, organizations, governments, and Indigenous governing bodies may file claims for damages caused by pipeline releases from designated companies within prescribed timeframes. The Tribunal Chairperson must promptly assign claims to panels and notify all relevant parties.
Warrant to enter dwelling-house or living quarters
Section 104 of the Canadian Energy Regulator Act establishes procedures for inspection officers to enter dwelling-houses or living quarters. Entry requires a warrant issued by a justice of the peace, obtained on ex parte application demonstrating necessity for compliance verification and occupant refusal or likelihood of refusal. Force may only be used if explicitly authorized in the warrant and accompanied by a peace officer.
Variation or transfer of certificates
The Canadian Energy Regulator Commission may vary or transfer energy certificates issued under the Act on its own initiative or upon application. The Minister may direct the Commission to recommend variations or transfers to the Governor in Council if deemed in the public interest. The Commission may impose conditions necessary to fulfill the Act's purposes when varying or transferring certificates.
Report
The Canadian Energy Regulator must prepare a report within 450 days on pipeline certificate applications, recommending approval or denial based on public convenience and necessity. The evaluation must consider environmental and cumulative effects, safety, Indigenous interests and rights, market feasibility, economic viability, financial capacity, and alignment with Canada's climate commitments.
Approval
Pipeline companies must obtain a Canadian Energy Regulator certificate before constructing any pipeline section, comply with all certificate conditions, secure Regulator approval of construction plans and specifications, and deposit certified copies in relevant land registries.
Establishment of Tribunal
Section 143 of the Canadian Energy Regulator Act authorizes the Governor in Council to establish a pipeline claims tribunal to examine and adjudicate compensation claims arising from pipeline releases. The tribunal may only be established if deemed in the public interest based on extent of damage, estimated costs, and administrative advantages. The tribunal must operate equitably without discrimination based on nationality or residence.
Instructions regarding timeliness
The Lead Commissioner of the Canadian Energy Regulator may issue procedural instructions to commissioners handling applications to ensure timely processing and resolution of matters before the Commission.
Financial resources
Pipeline companies authorized under the Canadian Energy Regulator Act must maintain financial resources sufficient to cover liability limits set by the Commission. The Commission may specify required types and amounts of financial resources, including letters of credit, guarantees, bonds, insurance, and readily accessible funds. Companies must demonstrate compliance upon request and maintain these resources until obtaining abandonment approval.
Plan, profile and book of reference
Energy infrastructure proponents must submit a plan, profile, and book of reference to the Canadian Energy Regulator detailing all land parcels to be acquired or traversed, including parcel identification, dimensions, area, and owner/occupier information. The Regulator may require additional details as necessary.
Sentencing principles
Section 174 of the Canadian Energy Regulator Act mandates sentencing principles for pipeline offences involving unintended or uncontrolled releases of oil, gas, or commodities. Courts must increase fines based on aggravating factors including harm to human/environmental safety, intentional or reckless conduct, financial motivation, prior non-compliance, and post-offence concealment or failure to mitigate. Courts must provide written reasons if declining to apply identified aggravating factors.
Suspension or revocation of licences — contravention
The Canadian Energy Regulator may suspend or revoke a licence if the holder breaches a licence condition or if the regulator deems it in the public interest (with ministerial approval). The licence holder must receive notice of the alleged contravention and an opportunity to respond before any order is made.
Regulations
Canadian Energy Regulator Act section 353 empowers the Governor in Council to make regulations governing oil and gas exports, including licence quantities, validity periods (up to 40 years for natural gas, 25 years for oil), inspection requirements, price controls, and exemptions for exports to Chile and Costa Rica.
Variation of sanctions
Under Canadian Energy Regulator Act section 176, courts may vary sanctions orders against offenders upon application if circumstances have changed. Courts can modify prohibitions, directions, requirements, or conditions; extend enforcement duration up to one year; reduce duration; or partially or fully relieve compliance obligations after hearing the offender, regulator, and interested parties.
Coming into force and cessation of effect — Commission
Section 67 of the Canadian Energy Regulator Act empowers the Commission, designated officers, and inspection officers to specify effective and cessation dates for authorization documents and orders, or impose conditions controlling their timing. Interim orders may be issued with decisions reserved, except for Part 3 certificates.
Application
Section 382 of the Canadian Energy Regulator Act establishes procedural requirements for Commission decisions on declarations of significant or commercial discovery under the Canada Petroleum Resources Act. The Commission must provide at least 30 days' written notice to affected persons, allow written hearing requests within 30 days, conduct hearings where requested, and publish decision reasons upon request.
Rules
The Canadian Energy Regulator Commission is authorized to establish procedural rules governing its operations, including the powers and duties of commissioners, conduct of hearings, issuance of decisions and orders, and internal administrative procedures.