Orphan Pipelines Account

Orphan Pipelines Account

246 (1) There is established an account in the accounts of Canada to be called the Orphan Pipelines Account. (2) If a pipeline is abandoned, the surplus determined in accordance with the formula set out in subsection (3) may be paid into the Consolidated Revenue Fund and credited to the Orphan Pipelines Account, if the Commission considers it appropriate. (3) The amount of the surplus is determined in accordance with the formula A − BwhereAis the amount of funds or security that a company has been ordered to maintain under subsection 242(1); and Bis the total of all amounts that are both: (a) the subject of an order made under paragraph 242(2)(a) or an authorization given under paragraph 242(2)(b) or realized under paragraph 242(2)(c), and (b) they are used to pay for the abandonment of the pipeline or to pay the costs and expenses related to the abandoned pipeline. (3.1) On April 1 of every year there is to be credited to the Orphan Pipelines Account an amount representing interest, at the rate fixed for the purposes of subsection 21(2) of the Financial Administration Act, on the balance to the credit of the Account. (4) Any amounts required for the purpose of paying the costs and expenses of any action or measure taken under subsection 245(1) may be paid out of the Consolidated Revenue Fund and charged to the Orphan Pipelines Account if the Commission considers it appropriate and (a) the funds or security referred to in subsection 242(1) are insufficient; or (b) the company is not the subject of an order under subsection 242(1). (5) A payment must not be made out of the Consolidated Revenue Fund under subsection (4) in excess of the amount of the balance to the credit of the Account. (6) A payment made out of the Orphan Pipelines Account in respect of a pipeline does not affect the liability under this Act of a company that has been granted leave to abandon a pipeline.