Recovery of loss, damage, costs, expenses

Recovery of loss, damage, costs, expenses

137 (1) If an unintended or uncontrolled release from a pipeline of oil, gas or any other commodity occurs, all persons to whose fault or negligence the release is attributable or who are by law responsible for others to whose fault or negligence the release is attributable are jointly and severally, or solidarily, liable for (a) all actual loss or damage incurred by any person as a result of the release or as a result of any action or measure taken in relation to the release; (b) the costs and expenses reasonably incurred by Her Majesty in right of Canada or a province, any Indigenous governing body or any other person in taking any action or measure in relation to the release; and (c) all loss of non-use value relating to a public resource that is affected by the release or by any action or measure taken in relation to the release. (2) The persons who are at fault or negligent or who are by law responsible for persons who are at fault or negligent are liable to make contributions to each other or to indemnify each other in the degree to which they are respectively at fault or negligent. (3) The company that is authorized under this Act to construct or operate the pipeline from which the release occurred is jointly and severally, or solidarily, liable with any contractor — to whose fault or negligence the release is attributable — that performs work for the company for the actual loss or damage, the costs and expenses and the loss of non-use value, described in paragraphs (1)(a) to (c). (4) If an unintended or uncontrolled release of oil, gas or any other commodity from a pipeline occurs, the company that is authorized under this Act to construct or operate that pipeline is liable, without proof of fault or negligence, up to the applicable limit of liability that is set out in subsection (5) for the actual loss or damage, the costs and expenses and the loss of non-use value, described in paragraphs (1)(a) to (c). (5) For the purposes of subsection (4), the limits of liability are, (a) in respect of a company that is authorized under this Act to construct or operate one or more pipelines that individually or in the aggregate have the capacity to transport at least 250,000 barrels of oil per day, $1 billion or, if a greater amount is prescribed by the regulations, that amount; and (b) in respect of a company that is authorized under this Act to construct or operate any other pipeline, the amount prescribed by the regulations. (6) The Governor in Council may, by regulation, on the Minister’s recommendation, (a) prescribe an amount greater than $1 billion for the purposes of paragraph (5)(a); and (b) prescribe an amount for the purposes of paragraph (5)(b) in respect of a company or class of companies. (7) If a company is liable under subsection (4) with respect to a release and it is also liable under any other Act, without proof of fault or negligence, for that release, the company is liable up to the greater of the limit of liability referred to in subsection (5) that applies to it and the limit up to which it is liable under the other Act. If the other Act does not set out a limit of liability, the limits referred to in subsection (5) do not apply. (8) The costs and expenses that are recoverable by Her Majesty in right of Canada or a province under this section are not recoverable under subsection 42(1) of the Fisheries Act. (9) Only Her Majesty in right of Canada or a province may institute proceedings to recover a loss of non-use value described in paragraph (1)(c). (10) All claims under this section may be sued for and recovered in any court of competent jurisdiction in Canada. Claims in favour of persons incurring actual loss or damage described in paragraph (1)(a) are to be distributed pro rata and rank in priority over claims for costs and expenses described in paragraph (1)(b), and the claims for costs and expenses rank in priority over claims to recover a loss of non-use value described in paragraph (1)(c). (11) Subject to subsections (8) and (9), nothing in this section suspends or limits (a) any legal liability or remedy for an act or omission by reason only that the act or omission is an offence under this Act or gives rise to liability under this section; (b) any recourse, indemnity or relief available at law to a person who is liable under this section against any other person; or (c) the operation of any applicable law or rule of law that is consistent with this section. (12) Proceedings in respect of claims under this section may be instituted no later than the third anniversary of the day on which the loss, damage or costs and expenses were incurred but in no case after the sixth anniversary of the day on which the release occurred.