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Duty — company
Canadian pipeline operators must promptly receive, transport, and deliver all offered oil with due care. The Canadian Energy Regulator may extend similar obligations to gas and commodity pipelines by order, and may require operators to provide adequate facilities for receipt, transmission, storage, and interconnection where no undue burden results.
Costs and expenses related to abandonment
The Canadian Energy Regulator may require pipeline companies to establish and maintain financial funds or security to ensure they can pay for pipeline abandonment and related costs. The Regulator can direct use of these funds, authorize third parties to access them, realize security to cover abandonment expenses, and allocate any surplus to the Orphan Pipelines Account.
Authorized tolls
Section 229 of the Canadian Energy Regulator Act prohibits pipeline companies from charging tolls unless authorized by filed and approved tariffs or Commission orders. When companies own the oil, gas, or commodities transported through their pipelines, they must file sales contracts and amendments with the Regulator upon request, which are treated as tariffs for regulatory purposes.
Measures
Section 245 of the Canadian Energy Regulator Act authorizes designated officers to take necessary measures for orphan pipeline abandonment and to delegate authority to employees or third parties. The Regulator, its staff, Crown agents, and authorized third parties are granted liability protection for good-faith actions or omissions during abandonment activities.
Orphan Pipelines Account
The Canadian Energy Regulator Act establishes an Orphan Pipelines Account to manage surplus security funds from abandoned pipelines. Surplus amounts—calculated as ordered security minus actual abandonment costs—may be credited to the account and earn annual interest. The account can fund abandonment costs when company security is insufficient, but companies remain fully liable for all abandonment obligations.
Application of certain provisions
Section 266 of the Canadian Energy Regulator Act extends pipeline regulatory provisions to international and interprovincial power lines. Applicants and permit/certificate holders must follow intervention, certification, and permitting procedures under specified sections. Deviations crossing navigable waters require heightened scrutiny under section 211. Abandonment provisions do not apply to power lines.
Advisory committee
The Canadian Energy Regulator must establish an advisory committee with mandatory representation from First Nations, Inuit, and Métis organizations to enhance Indigenous participation in regulatory decisions affecting pipelines, power lines, offshore renewable energy projects, and abandoned pipelines.
Certificate or order before June 1, 1990
The Canadian Energy Regulator Act applies pipeline governance provisions to international power lines that received certificates before June 1, 1990 under the former National Energy Board Act, treating electricity transmission infrastructure under the same regulatory framework while excluding abandoned power lines from abandoned pipeline definitions.
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.
Purpose
Section 136 of the Canadian Energy Regulator Act establishes that sections 137–142 reinforce the polluter-pays principle by imposing financial requirements on companies authorized to construct or operate pipelines in Canada.
Exercise of powers outside Canada
Canadian pipeline companies may exercise their regulatory and operational powers beyond Canada's international boundary, but only to the extent permitted by applicable foreign laws in the jurisdiction where the pipeline operates.
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.
Orders of Commission
The Canadian Energy Regulator may issue orders determining compensation for pipeline and abandoned pipeline projects, including land acquisition, leasing, use restrictions, and damages from company activities during planning, construction, operation, or abandonment phases, with compensation assessments guided by statutory factors.
Crown lands
Pipeline companies must obtain Governor in Council consent to take possession of, use, or occupy Crown lands in Canada. With consent, companies may appropriate necessary Crown lands and water for pipeline construction and operation. Compensation for lands held in trust must be applied to the trust's purpose. Exemptions apply for pipelines with prior authorizations and those crossing utilities or navigable waters with proper certificates.
Definitions
Section 93 of the Canadian Energy Regulator Act defines key terms for pipeline claims proceedings: compensable damage (costs, losses, and damages awarded by the Tribunal), holder (entities holding certificates, permits, or authorizations for regulated facilities, pipelines, power lines, or abandonment permits), and Tribunal (the pipeline claims tribunal).
Consent of council of the band
Section 317 of the Canadian Energy Regulator Act requires pipeline companies to obtain consent from Indigenous band councils before taking possession of, using, or occupying reserve lands for pipeline construction. Companies must also obtain Governor in Council approval for certain designated lands (Category IA-N, Category IA, and shíshálh lands). Companies must provide compensation if reserve or designated lands are taken, used, occupied, or adversely affected by pipeline construction.
Application restricted
Section 319 of the Canadian Energy Regulator Act defines compensation scope for pipeline-related damages, including land value losses. Eligible claims arise directly from pipeline acquisition, leasing, construction, inspection, maintenance, or repair. Claims for personal injury, death, or pre-March 1, 1983 agreements are excluded.
Recovery of loss, damage, costs, expenses
Section 137 of the Canadian Energy Regulator Act imposes joint and several liability on pipeline operators and contractors for unintended or uncontrolled releases of oil, gas, or other commodities. Liable parties must cover actual losses, response costs, and loss of non-use value. Liability is capped at $1 billion for major pipelines (≥250,000 barrels/day capacity); smaller pipelines face prescribed regulatory amounts. Claims recover in Canadian courts with priority ranking favoring actual loss over cost recovery, which ranks above non-use value claims.
Examination of site of mining operations
Under the Canadian Energy Regulator Act, pipeline companies may enter mining or prospecting sites within or near their rights-of-way with 24 hours' written notice and regulatory authorization to inspect whether operations pose safety or security risks to the pipeline or persons. Companies may use site equipment to measure distances from the pipeline to operations.
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 mines
Pipeline companies must obtain authorization from a designated officer before locating, constructing, or operating pipelines in ways that obstruct, interfere with, or adversely affect active mining operations or lawful mine development preparations.
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.
Compensation for severance, etc., of mining property
Pipeline companies must pay compensation as determined by the Canadian Energy Regulator to mining property owners, lessees, and occupiers for losses caused by pipeline severance, including prevented or interrupted mining operations, access restrictions, operational modifications to protect the pipeline, and inaccessible minerals.
Limitations
Section 181 of the Canadian Energy Regulator Act requires pipeline companies to obtain prior written Commission approval before selling, transferring, leasing, purchasing, acquiring, or amalgamating pipelines or abandoned pipelines.
Error as to names
Section 209 of the Canadian Energy Regulator Act permits pipeline construction across designated lands despite errors or omissions in the book of reference regarding landowner names or property interests, without requiring correction of such documentation defects.
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.
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.
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.
Public hearings
Section 52 of the Canadian Energy Regulator Act mandates public hearings for decisions to issue, suspend, or revoke certificates for interprovincial and international pipelines and power lines. Exceptions apply when certificate holders consent to suspension or revocation of non-operational facilities. The Commission may discretionarily hold public hearings on other matters and must publicly disclose its reasoning.
Powers of company
Section 313 of the Canadian Energy Regulator Act grants pipeline companies authority to survey land, acquire property, construct pipelines across public and private holdings, interconnect with other infrastructure, erect supporting structures, and transport hydrocarbons and other commodities, subject to regulatory approval and applicable legislation.
Notice to owners
Pipeline companies must serve written notice on all affected landowners and publish notices describing the proposed pipeline route and CER head office location. Landowners have 30 days from service to file written opposition; other persons anticipating adverse effects have 30 days from publication to oppose. The Regulator must publish notices on its website.
West Import Resilience Project: Environmental determination
Environmental determination for the West Import Resilience Project, covering a new 9km gas pipeline section between Wormington and Honeybourne and a 2km section in Churchover, UK.