Show cause hearing relating to waste

Show cause hearing relating to waste

385 (1) This section applies to applications by the Chief Conservation Officer to the Commission under section 22 of the Canada Oil and Gas Operations Act for a show cause hearing relating to waste, as defined in paragraph 18(2)(f) or (g) of that Act, in the recovery of oil or gas from a pool. (2) On receiving an application, the Commission must make an order requiring the operators within the pool to show cause at a hearing, to be held on a day specified in the order, why the Commission should not make a direction in respect of the waste. (3) On the day specified in the order, the Commission must hold a hearing at which the Chief Conservation Officer, the operators and other interested persons must be given an opportunity to be heard. (4) If, after the hearing, the Commission considers that waste is occurring in the recovery of oil or gas from a pool, it may, by order, (a) direct the introduction of a scheme for the collection, processing, disposition or reinjection of any gas produced from the pool; or (b) direct repressurizing, recycling or pressure maintenance for the pool or any part of the pool and for or incidental to that purpose, direct the introduction or injection of gas, water or any other substance into the pool or any part of the pool. (5) In addition to making an order under subsection (4), the Commission may, by order, direct that the pool or any part of the pool specified in the order be shut in if the requirements of the order are not met or unless a scheme is approved by the Commission and in operation by a date fixed in the order. (6) Despite subsections (4) and (5), the Commission may, by order, permit the continued operation of a pool or any part of a pool after the date fixed by an order made under this section if the Commission considers that a scheme or other action described in paragraph (4)(a) or (b) is in the course of preparation, but the continued operation is subject to any conditions the Regulator imposes.