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Security regulations
The Canadian Energy Regulator is authorized to establish security regulations for pipelines, international power lines, and offshore renewable energy projects, including standards, plans, and audit requirements. Violations are criminal offences with penalties up to $100,000 and one year imprisonment on summary conviction, or $500,000 and five years on indictment, though a due diligence defence is available.
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.
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.
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.
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 The Commission may inspect affected lands and may disregard frivolous, withdrawn, or bad-faith statements.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.
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.
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.
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.
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.
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.
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.
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.
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.
Additional material to be deposited
Pipeline companies must deposit additional materials with the Canadian Energy Regulator beyond standard filings, including plans, specifications, and drawings for pipeline components, as required by the regulator.
Construction or operation — navigable water
Under Canadian Energy Regulator Act section 218, any person must obtain a certificate or order from the Canadian Energy Regulator before constructing or operating a pipeline that crosses navigable waters in any manner (in, on, over, under, through, or across).
Regulations
Section 221 of the Canadian Energy Regulator Act authorizes the Governor in Council to establish regulations for pipeline sections crossing navigable waters, covering design, construction, operation, safety, security, deviations, relocation, and abandonment. Violations are prosecutable as summary conviction offences.
Effects of recommendation on navigation
The Canadian Energy Regulator must consider navigation safety impacts as a material factor when recommending pipeline approvals and making regulatory decisions for pipelines crossing navigable waters.
Consent of Yukon first nation or Governor in Council
Under Canadian Energy Regulator Act section 318, energy companies must obtain consent from relevant Yukon First Nations or the Gwich'in Tribal Council before using settlement land or Tetlit Gwich'in Yukon land. If consent is denied, the Governor in Council may authorize use after a public hearing with notice to affected parties. Companies must compensate First Nations for land use or injurious effects from pipeline construction.
Methods of acquisition or lease
Canadian pipeline companies acquiring or leasing land must include contractual provisions for compensation (lump-sum or periodic payments reviewed every five years), operational damages, indemnification (excluding owner gross negligence or willful misconduct), land-use restrictions, and compensation for adverse effects on remaining lands.
Pooled fund
Canadian pipeline operators may satisfy financial liability requirements for commodity releases by participating in a regulated pooled fund established by authorized pipeline companies. Operators must maintain additional reserves equal to any shortfall between their liability requirements and pooled fund access. The Governor in Council may establish regulations governing minimum fund levels, contribution and withdrawal limits, and participation conditions.
Notice of proposed acquisition or lease of lands
Pipeline companies must notify all identifiable landowners of lands required for pipeline construction or operation, providing detailed descriptions of required lands, compensation valuations, route approval procedures, and dispute resolution options. Pre-notice agreements are void, and companies are liable for all damages if they subsequently abandon acquisition or lease plans.
Notice of decision
The Canadian Energy Regulator must promptly issue written decisions with detailed reasons to all persons who made representations at public hearings regarding pipeline plan, profile, and book of reference approvals or refusals.
Regulations imposing fees, etc.
Section 142 of the Canadian Energy Regulator Act authorizes the regulator to impose fees, levies, and charges on pipeline operators to recover government costs from commodity release incidents. Primary liability falls on the responsible operator; if recovery is insufficient, fees extend to other operators transporting the same or similar commodities. Regulations prescribe fee calculation methods and interest rates on unpaid amounts, which become recoverable debts to the Crown.
Decision by Governor in Council
Section 186 of the Canadian Energy Regulator Act grants the Governor in Council authority to issue binding orders on pipeline certificate applications following CER recommendations. The Governor may approve certificates with conditions, dismiss applications, or refer recommendations for reconsideration. Orders must include written reasons demonstrating consideration of relevant factors and be issued within 90 days (extendable). Orders are final, must be published in the Canada Gazette within 15 days, and the CER must comply within seven days.
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.
Relocation
The Canadian Energy Regulator may order holders of international or interprovincial power line permits or certificates to relocate infrastructure when necessary to facilitate construction or relocation of other facilities. The regulator determines cost allocation between parties, requires mandatory consultation procedures, and may order reimbursement of reasonable costs incurred by persons making submissions.
Powers of liquidators, trustees, etc.
Section 5 of the Canadian Energy Regulator Act expands the definition of 'company' for regulatory purposes to include liquidators, receivers, managers, and trustees authorized to operate businesses; persons operating pre-1953 pipelines or exempted pipelines; Quebec court-appointed administrators; and successors handling abandoned pipelines.
Definitions
Section 113 of the Canadian Energy Regulator Act establishes legal privilege protection for voice and video recordings of operating personnel at regulated energy facilities. Recordings are privileged and non-disclosable except when requested by the Regulator for accident inquiries, by coroners for investigations, or when courts determine public interest in justice outweighs privilege. Recordings cannot be used in disciplinary proceedings against facility operators or employees.
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.
Approval of deviations
Pipeline companies must submit detailed plans, profiles, and reference documentation to the Canadian Energy Regulator for approval of deviations from previously approved or constructed pipelines. The Regulator may exempt submission requirements if deviations serve public purposes or benefit the pipeline, provided deviations do not exceed Commission-specified distance limits from the original centerline.
Construction — utility
Pipeline companies must obtain a Canadian Energy Regulator certificate or conditional leave before constructing pipelines that cross utilities (highways, telecommunications, transmission lines, sewers, drainage systems). The Commission may grant leave with or without conditions, require documentation, and retroactively approve urgent work if advance notice was provided.
Matters to be taken into account
The Canadian Energy Regulator must consider all written submissions and public hearing representations when approving pipeline construction plans, routes, and methods. The Regulator may approve sections where no submissions have been filed.
Pipeline not work
Section 220 of the Canadian Energy Regulator Act clarifies that pipelines are excluded from the definition of 'work' under the Canadian Navigable Waters Act, establishing that pipeline regulation falls exclusively under Canadian Energy Regulator jurisdiction.
Limitation
Canadian Energy Regulator Act section 241 requires pipeline companies to obtain Commission approval before abandoning any pipeline. Companies must notify affected landowners and publish notices in local media. Mandatory public hearings apply if written opposition is filed unless withdrawn or deemed frivolous. The Commission may impose conditions on abandonment approvals, and companies remain liable for abandoned pipelines.
Regulations
Section 98 of the Canadian Energy Regulator Act empowers the Governor in Council to establish regulations requiring pipeline operators to monitor facilities and implement preparedness and response measures for unintended or uncontrolled releases of oil, gas, or other commodities.
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.
Purpose of Act
The Canadian Energy Regulator Act establishes federal regulatory authority over pipelines, power lines, offshore renewable energy facilities, and oil and gas exploration and exploitation. It mandates safe, secure, and efficient construction, operation, and abandonment while protecting people, property, and the environment, regulates energy product trade, and ensures fair, transparent, and efficient regulatory decision-making processes.
Mandate
The Canadian Energy Regulator's mandate encompasses making transparent decisions and orders on pipelines, power lines, and offshore renewable energy projects; overseeing their construction, operation, and abandonment; setting traffic, tolls, and tariffs; managing oil and gas interests; providing advisory services and dispute resolution; and exercising authority while respecting Indigenous peoples' rights.
Orphan abandoned pipelines
Under the Canadian Energy Regulator Act, a designated officer may designate an abandoned pipeline as an orphan abandoned pipeline when the owning company's directors, officers, or the company itself cannot be located, or when the company is unknown, insolvent, bankrupt, in receivership, or dissolved.
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.
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.
If pipeline affixed to any real property or immovables
Section 224 of the Canadian Energy Regulator Act establishes that pipeline sections affixed to real property, utilities, or navigable waters remain the exclusive property of the pipeline company and do not become part of underlying property without written consent and Regulator notice. Pipeline companies retain rights to create liens, mortgages, charges, and security interests on affixed sections under specified regulatory circumstances.
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.
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).