Canada Gazette, Part I, Volume 158, Number 50: Export and Import (Orders, Licences and Permits) Regulations
December 14, 2024
Statutory authority
Canadian Energy Regulator Act
Sponsoring agency
Canadian Energy Regulator
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the regulations.)
Issues
When the Canadian Energy Regulator Act (CER Act) replaced the National Energy Board Act (NEB Act), a new export and import regulatory framework was created. As a result, four regulations made under the NEB Act — the National Energy Board Act Part VI (Oil and Gas) Regulations (NEB Part VI Regulations), the National Energy Board Electricity Regulations (NEB Electricity Regulations), the National Energy Board Export and Import Reporting Regulations (NEB Reporting Regulations), and the Toll Information Regulations — need to be repealed and replaced with new regulations, reflecting the regulation-making authorities set out in the CER Act.
Regulatory amendments are also necessary to address circumstances where requirements to seek authorizations for certain activities, to provide information in applications, and to comply with associated conditions are no longer reflective of the CER Act. The CER Act narrowed the scope of matters the Canada Energy Regulator (CER or Regulator) considers in assessing oil, gas, and electricity export applications. Changes to the information required on an export application in turn affected the associated conditions that may be applied to an export authorization.
Additionally, until the regulations are updated, there is an increased risk that the CER may not obtain pertinent information to effectively monitor energy markets and make decisions on oil, gas, and electricity export applications and international power line (IPL) permit applications. Certain aspects of the regulations have become outdated, as the energy industry has evolved in the decades since the regulations first came into force. Changes would reflect the types of information the CER now requires for market monitoring, as well as remove outdated requirements and revise others to reflect current industry practice and technology.
Until the regulations are changed, applicants and authorization holders will continue to be required to comply with regulatory requirements that are not reflective of the CER Act or current industry practice and technology. Reliance on current application requirements and associated conditions may result in regulatory uncertainty and unnecessary administrative burden for potential applicants, authorization holders, and other interested parties. There is also a risk that the CER may not obtain pertinent information to monitor energy markets and make effective decisions on oil, gas, and electricity export applications and IPL permit applications.
Background
The export and import regulatory framework, established under the NEB Act, consists of four regulations, made by the Governor in Council or the Regulator with the approval of the Governor in Council:
- (1) National Energy Board Act Part VI (Oil and Gas) Regulations (NEB Part VI Regulations);
- (2) National Energy Board Electricity Regulations (NEB Electricity Regulations);
- (3) National Energy Board Export and Import Reporting Regulations (NEB Reporting Regulations); and
- (4) Toll Information Regulations.
These four regulations provide the CER with critical information to assess applications and enable the CER to understand the functioning of energy markets in Canada in order to fulfill its mandate as Canada’s energy expert.
In 2012, the NEB Act was amended;footnote 1 requirements for mandatory public hearings for gas and electricity export licence applications were removed, and the scope of matters that are considered for export applications was reduced. At the same time, the Canadian Environmental Assessment Act was repealed, which affected the application requirements for the construction and operation of IPLs. In 2014, after consultation with stakeholders, amendments to the National Energy Board (NEB) regulations were drafted to reflect the legislative changes. However, the proposed regulatory amendments were put on hold in 2015 due to the federal election and in anticipation of the changes that would result from the Government’s Environmental and Regulatory Reviews.
In 2019, following the above-mentioned reviews, the NEB Act was repealed and replaced with the CER Act. The changes brought about with the CER Act included removing the requirement for an authorization to import oil or gas and changing various names and terms throughout. The CER Act also restructured the regulation-making authorities by introducing a third regulation-making authority: made by the Regulator.
The CER will be bringing forward three proposals to repeal the four NEB Act regulations and replace them with five CER Act regulations, reflecting the new regulation-making authorities, as shown in the table below.
Proposed regulations | CER Act | Regulation-making authority |
---|---|---|
Export and Import (Orders, Licences and Permits) Regulations | Part 7, paragraphs 353(1)(a) to (d), and paragraphs 367(1)(a) and (d) | Governor in Council |
Part 9, paragraph 390(1)(b) table 1 note a | ||
International Power Lines (Permits) Regulations | Part 4, paragraphs 291(a), (b), and (d) | |
Export and Import Reporting Regulations | Part 7, subsection 354(1), and Part 9, paragraph 389(1)(d) | Regulator with Governor in Council approval |
Toll Information Reporting Regulations | Part 9, paragraph 389(1)(d) | |
Export Applications (Licences and Permits) Regulations | Part 7, subsections 354(2) and 367(2) | Regulator |
Table 1 note(s)
|
This proposal brings together sections of the NEB Part VI Regulations and the NEB Electricity Regulations into two proposed regulations to be made by the Governor in Council:
- Export and Import (Orders, Licences and Permits) Regulations; and
- International Power Lines (Permits) Regulations.
A second proposal brings together sections of the NEB Reporting Regulations and the Toll Information Regulations under two other regulations: the Export and Import Reporting Regulations and the Toll Information Reporting Regulations, to be made under the Regulator’s regulation-making authority with the approval of the Governor in Council, which are addressed through a separate Regulatory Impact Analysis Statement.
A third, separate but concurrent proposal captures sections of the NEB Part VI Regulations, the NEB Electricity Regulations, and the NEB Reporting Regulations that are not addressed by the other two proposals. These proposed regulations, the Export Applications (Licences and Permits) Regulations, would be made by the Regulator and are addressed through a separate Regulatory Impact Analysis Statement.
Objective
The desired outcome for this proposal is a clear and consistent regulatory framework in which exporters and importers of oil, gas or electricity, companies seeking to construct or operate an IPL, and other interested parties would have a clear understanding of the export, import and IPL application obligations. There are two objectives for this proposal:
- Align the regulations to reflect the scope, regulation-making authorities, and names and terms as set out in the CER Act; and
- Simplify and streamline the regulations by replacing outdated or unnecessary application requirements with requirements that reflect current practice and technology.
This proposal aims to reduce the unnecessary administrative burden on businesses and provide the CER with the information it requires to support its role as an expert tribunal. A regulatory environment that is fair, predictable, and consistent is crucial for businesses to function and make investment decisions, and supports the CER’s mandate to regulate energy development in the Canadian public interest.
Description
Below is a description of the two proposed regulations.
Export and Import (Orders, Licences and Permits) Regulations
The proposed Export and Import (Orders, Licences and Permits) Regulations would reproduce and consolidate certain requirements currently found in the NEB Part VI Regulations (sections 2–3, 6–7, 10–11, 14–16, 19, 21–24, and 26–29) and the NEB Electricity Regulations (sections 2–3, and 10). Specifically, the proposed regulations would contain (i) the information that applicants for oil (crude oil and refined petroleum products) and gas (natural gas and natural gas liquids) export orders must provide to the CER, (ii) exemptions from requiring an export or import authorization, (iii) inspection provisions related to export and import activities, (iv) provisions for issuing, suspending, and revoking export authorizations, and (v) the conditions that the CER may impose on oil and gas export orders and licences and electricity export permits.
In addition, the proposed regulations would incorporate the following changes:
- (1) Exemptions from natural gas import authorizations
The proposed regulations would exempt natural gas imports from requiring CER authorization. It should be noted, however, that any person importing natural gas into Canada would still be required to report certain information under the proposed Export and Import Reporting Regulations.
- (2) Exemptions from certain oil and gas export authorizations
The proposed regulations would add exemptions for certain exports of natural gas and oil from requiring an authorization. The CER Act authorizes the Governor in Council to make regulations prescribing the conditions under which the export of oil or gas may be carried out without a licence. Such is the case for gas that is contained in the tank of a motor vehicle, locomotive, or ship for its own consumption, as well as for exports for subsequent import and imports for subsequent export (in-transit transactions).
- (3) Conditions and period of validity for oil, gas, and electricity authorizations
The proposed regulations would revise the conditions that can be applied to an authorization in order to reflect the revised application requirements as proposed concurrently, through a separate proposal, under the Export Applications (Licences and Permits) Regulations. Changes brought about by the CER Act eliminated certain application requirements, making the corresponding conditions that can be applied to an authorization outdated or unnecessary. In addition, the proposed amendments would revise the conditions and period of validity to be consistent across commodities. For example, export orders would be issued with a maximum period of validity of two years for all commodities.
International Power Lines (Permits) Regulations
The proposed International Power Lines (Permits) Regulations reproduces certain requirements that were previously found in the NEB Electricity Regulations (sections 2, and 4 to 7, and Schedule). Specifically, the proposed regulations would specify what information that applicants for international power line construction and operation permits must provide to the CER, the conditions the CER may impose on permits, and the form required for filing of elections.
In addition, the proposed regulations would incorporate the following changes:
The proposed regulations would address some inconsistencies between the two types of international power line permit applications, and between application requirements and the corresponding conditions that can be placed on permits. For example, applicants would be required to provide financial information regardless of whether they are applying for the construction of an IPL greater than 50 kV or an IPL less than 50 kV.
In addition, the application requirement related to the adverse effects of the operation of an IPL would be revised to require a description of the adverse effects that the operation of an IPL could have on other power systems to which it is interconnected, rather than the effects on other provinces. The proposed regulations would also modernize terminology, such as replacing the terms “mailing address” and “telecommunications numbers” with “contact information”.
Regulatory development
Consultation
The proposed regulations consider the feedback received through the consultation process undertaken in 2013 to address changes to the NEB Act. While no further consultations have occurred since 2013, information about this proposal has remained publicly available on the CER website, along with an open invitation for feedback on the CER’s regulatory framework. The introduction of the CER Act in 2019 did not result in substantive changes to the amendments proposed in 2013, with the exception of changes to the regulation-making authorities. As a result, the proposed changes and comments received in 2013 remain relevant.
The consultation involved posting the proposed amendments on the NEB website, and notifying industry associations, export authorization holders, provincial governments, and other interested stakeholders of opportunities to provide comments to the NEB. A total of 11 letters were submitted during the consultation period by petroleum, petrochemical, pipeline, and electricity associations, as well as by provincial departments and Indigenous Peoples. The NEB also met with a number of these parties during and after the consultation period to answer questions and provide additional detail regarding the proposed amendments.
Companies and industry associations were generally supportive of proposed changes intended to streamline and simplify regulatory requirements and to bring the regulations in line with the legislation. Several modifications were made to address comments and requests from stakeholders. For example, the proposed Export and Import (Orders, Licences and Permits) Regulations were modified to reflect a request from the Canadian Association of Petroleum Producers to amend the definition of “refined petroleum products” to clarify that this term does not include bitumen, synthetic crude oil and dilbit, as these products are understood to fall under the meaning of “crude oil.” The proposed International Power Lines (Permits) Regulations include minor phrasing changes to align the intent of the English and French requirements as requested by Hydro-Québec TransÉnergie.
Other comments and requests from stakeholders did not require modifications to the proposed regulations. Some comments were resolved directly with stakeholders, and others would be addressed through updated guidance in the Filing Manuals, Commodity Tracking System, and Online Application System once the proposed regulations come into force.
Some requests were not incorporated, as doing so would have created a misalignment with the legislation. For example, the Chemistry Industry Association of Canada, B.C. Ministry of Natural Gas Development, Alberta Department of Energy, and Gitxaala Nation each requested to either retain certain oil or gas export application requirements, which had been proposed for deletion, or requested new requirements. These requests were not incorporated in the proposed Export and Import (Orders, Licences and Permits) Regulations as they would have required information that is not relevant to the surplus determination criteria, which is the only criterion in the CER Act for assessing oil or gas export applications.
Modern treaty obligations and Indigenous engagement and consultation
An assessment of implications on modern treaties was conducted to examine the scope and subject matter of the initiative in relation to modern treaties in effect. The assessment did not identify any potential impacts or obligations affecting federal modern treaties in relation to these proposed regulations.
During the consultations in 2013, the Gitxaala Nation raised a concern about the proposed removal of the requirement to provide certain information on oil or gas export applications as well as the corresponding terms and conditions that could be applied to an export authorization. Specifically, the Gitxaala Nation was concerned that without the condition that environmental requirements be met for the authorization to take or remain in effect, the NEB would not be able to ensure that the Indigenous rights of the Gitxaala Nation under section 35 of the Constitution Act, 1982, be respected by companies carrying out exports.
The then NEB responded that the granting of an export authorization by the Regulator does not authorize or cause physical activities or associated potential adverse impacts to any section 35 Indigenous or treaty rights — be they potential or established. The issuance of an authorization does not influence or predetermine other authorizations issued by separate authorities that would be required to carry out physical activities associated with an export where those physical activities might impact constitutionally protected rights. The environmental requirement condition is proposed for deletion, as environmental considerations are no longer required under the CER Act’s criteria for assessing applications for the export of oil or gas.
Notwithstanding the preceding, to ensure that Indigenous Peoples are consulted and treaty rights are considered in the export and import regulatory framework, the CER will notify Indigenous Peoples, who may have an interest in these proposed regulations, of the opportunity to comment during the Canada Gazette, Part I, 45-day consultation period. This consultation would be in addition to the extensive consultation with Indigenous Peoples and organizations undertaken during the development of the CER Act through Bill C-69 (An Act to enact the Impact Assessment Act and the Canadian Energy Regulator Act, to amend the Navigation Protection Act and to make consequential amendments to other Acts).
Instrument choice
As there is an existing regulatory framework that applies to exports, imports, IPLs, and reporting, changes to the regulation-making authorities, as well as necessary changes to reflect the CER Act and modernize the regulations could only be accomplished through the regulatory process. Therefore, no other instruments were considered.
Regulatory analysis
Benefits and costs
This proposal would result in a net decrease in administrative costs for businesses. A number of export, import, and IPL companies were consulted in determining the cost-benefit impact of these regulatory changes.
The proposed Export and Import (Orders, Licences and Permits) Regulations would decrease administrative costs for businesses, as the application requirements would be reduced and some activities that are currently regulated would be exempted. The “One-for-one rule” section contains information on the stakeholders and application requirements. The present value cost savings for businesses applying to export oil or gas would be $222,202 over a 10-year forecast period starting in 2024, or an annualized average of $31,637. There is no change in administrative cost for the proposed International Power Lines (Permits) Regulations. The “One-for-one rule” section contains information on the stakeholders and application requirements.
The simplified and modernized application requirements would take less time to complete, require fewer supporting studies, and assist the CER in making decisions in accordance with the criteria set out in the CER Act. This proposal would therefore provide benefits to industry by reducing administrative burden while ensuring that the CER receives relevant information required to make decisions in the Canadian public interest.
Implementing this proposal would result in cost savings for the CER. Changes to the CER’s Online Application System to reflect the application requirements in the proposed regulations would be carried out during periodic updates to the system, resulting in no incremental costs. This proposal would result in cost savings for the CER by freeing up resources needed to process these applications.
Small business lens
Analysis under the small business lens concluded that the proposed regulations would not impact Canadian small businesses.
Currently, there are no small businesses that apply for oil, gas, or electricity export authorizations; it is predominantly large companies that do so. Exempting certain activities from requiring an authorization and deleting unnecessary application requirements under the proposed Export and Import (Orders, Licences and Permits) Regulations would result in reduced administrative costs for small businesses applying to export oil or gas should they enter the market in the future.
Currently, there are no small businesses that apply for permits to construct or operate IPLs; it is predominantly large companies that do so. Deleting unnecessary application requirements under the proposed International Power Lines (Permits) Regulations, would result in reduced administrative costs for small businesses applying to construct or operate IPLs should they enter the market in the future.
One-for-one rule
The one-for-one rule applies as the proposal would result in an incremental change in the administrative burden on business. The proposal repeals two existing regulations and replaces them with two new regulatory titles, which results in no net increase or decrease in regulatory titles. A number of export, import, and IPL companies were consulted in determining the administrative impact of these proposed changes.
Export and Import (Orders, Licences and Permits) Regulations
Element A: The proposed Export and Import (Orders, Licences and Permits) Regulations would exempt certain activities from requiring an authorization and extend the period of validity for certain orders, which would decrease administrative costs for businesses importing gas and for those applying to export oil or gas. The CER receives an average of 71 gas import order applications per year and it is estimated that exempting these activities would save each applicant two hours per year. The CER receives an average of 15 gas in-transit order applications per year and it is estimated that exempting these activities would save each applicant two hours per year. The CER receives an average of 325 propane, butane, light crude and refined petroleum product export order applications per year, and it is estimated that extending the period of validity of these orders from one year to two years would save each applicant two hours every other year.
Repealing the NEB Part VI Regulations would remove unnecessary licence application requirements, which would decrease administrative costs for businesses applying to export oil or gas. The CER receives an average of cinq natural gas export licence applications per year and it is estimated that streamlining the application requirements would save each applicant 533 hours. Under the CER Act, a number of provisions are now within the Regulator’s regulation-making authority and a new regulatory title is needed. The revised oil and gas export licence application requirements are addressed in the reciprocal proposed Export Applications (Licences and Permits) Regulations, made by the Regulator.
The estimated average hourly wage, including overhead, for the responsible employees is $51.35 (in 2012 dollars). The total annualized average decrease in administrative costs to businesses attributed to the repeal of the NEB Part VI Regulations and the introduction of the proposed Export and Import (Orders, Licences and Permits) Regulations is estimated to be $65,524.
Element B: This proposal would repeal the NEB Part VI Regulations and replace it with the proposed Export and Import (Orders, Licences and Permits) Regulations, resulting in no net increase or decrease in regulatory titles.
International Power Lines (Permits) Regulations
Element A: There is no change in the administrative burden for IPL construction and operation permit application requirements in the proposed International Power Lines (Permits) Regulations, which are currently found in the NEB Electricity Regulations.
Repealing the NEB Electricity Regulations would remove the requirement to provide information on the export permit application that is no longer necessary, which would decrease administrative costs for businesses applying to export electricity. The CER receives an average of 16 electricity export permit applications per year and it is estimated that streamlining the application requirements would save each applicant 16 hours. The estimated average hourly wage, including overhead, for the responsible employees is $42.98 (in 2012 dollars). The total annualized average decrease in administrative costs to businesses attributed to the repeal of the NEB Electricity Regulations is estimated to be $3,572. Under the CER Act, a number of export provisions are now within the Regulator’s regulation-making authority and a new regulatory title is needed. Revised electricity export permit application requirements are addressed through the reciprocal proposed Export Applications (Licences and Permits) Regulations, made by the Regulator.
Element B: This proposal would repeal the NEB Electricity Regulations and replace it with the proposed International Power Lines (Permits) Regulations, resulting in no net increase or decrease in regulatory titles.
Regulatory cooperation and alignment
The proposed regulations are not related to a work plan or commitment under a formal regulatory cooperation forum.
Effects on the environment
In accordance with the Cabinet Directive on Strategic Environmental and Economic Assessment (SEEA Directive), a preliminary scan concluded that a SEEA is not required. This proposal is not expected to have any important environmental effects, either negative or positive. Although this proposal pertains to the environmental assessments of proposed projects, this proposal would not directly or indirectly generate new designated projects.
Gender-based analysis plus
No gender-based analysis plus (GBA+) impacts have been identified for this proposal.
Implementation, compliance and enforcement, and service standards
Implementation
The proposed Export and Import (Orders, Licences and Permits) Regulations would come into force on the day on which they are registered.
The proposed International Power Lines (Permits) Regulations would come into force on the day on which the proposed Export and Import (Orders, Licences and Permits) Regulations come into force, but if these proposed regulations are registered after that day, they come into force on the day on which they are registered.
For the purpose of implementing the regulatory requirements, the CER would undertake a number of compliance promotion activities. Application requirements set out in the proposed Export and Import (Orders, Licences and Permits) Regulations and the proposed International Power Lines (Permits) Regulations would be reflected through updated guidance on the CER’s website and in the CER Filing Manuals, as well as updates to the CER’s Online Application System.
Compliance and enforcement
Compliance and enforcement of the proposed regulations would be in accordance with a risk-based approach, aligned with CER policies. They would follow established CER approaches and procedures, including education, applying conditions on authorizations, inspections at sites and facilities, audits of programs, procedures, manuals, records, and activities, and follow-up on reported incidents. Non-compliant activities would be subject to the enforcement actions available to the CER under the CER Act and could include notices, stop work orders, administrative monetary penalties, suspending or revoking authorizations, or prosecution.
Service standards
Existing service standards would be used for all applications affected by these proposed regulations. The CER is not proposing to change service standards as part of this proposal.
Contact
Jenni Low
Regulatory Policy
Canada Energy Regulator
517 10th Avenue Southwest
Suite 210
Calgary, Alberta
T2R 0A8
Fax: 403‑299‑3664
Email: EIRF@cer-rec.gc.ca.
PROPOSED REGULATORY TEXT
Notice is given that the Governor in Council proposes to make, after having consulted with the Canadian Energy Regulator, the annexed Export and Import (Orders, Licences and Permits) Regulations under paragraphs 353(1)(a) to (d), 367(1)(a) and (d) and 390(1)(b) of the Canadian Energy Regulator Act footnote a.
Interested persons may make representations concerning the proposed Regulations within 45 days after the date of publication of this notice. They are strongly encouraged to use the online commenting feature that is available on the Canada Gazette website but if they use email, mail or any other means, the representations should cite the Canada Gazette, Part I, and the date of publication of this notice, and be sent to Jenni Low, Market Analyst, Regulatory Policy, Canadian Energy Regulator, 517 Tenth Avenue Southwest, Suite 210, Calgary, Alberta T2R 0A8 (fax: 403‑299‑3664; email: EIRF@cer-rec.gc.ca)
Ottawa, November 28, 2024
Wendy Nixon
Assistant Clerk of the Privy Council
Export and Import (Orders, Licences and Permits) Regulations
Definitions
Definitions
1 The following definitions apply in these Regulations.
- Act
- means the Canadian Energy Regulator Act. (Loi)
- butane
- means normal butane and isobutane. (butane)
- crude oil
- means an oil or a blend of oils — other than a refined petroleum product — but includes an oil or a blend to which a refined petroleum product or a natural gas liquid has been added. (pétrole brut)
- electricity transfer
- means a transfer of power or energy. (transfert d’électricité)
- energy
- means the total quantity of energy in the form of electricity transmitted over a period of time, expressed in watt-hours or multiples or submultiples of watt-hours. (énergie)
- power
- means the rate at which energy is transferred in an electric circuit, expressed in watts or multiples or submultiples of watts. (puissance)
- refined petroleum product
- means
- (a) a gasoline-type fuel for use in internal combustion engines;
- (b) an oil for use as a component in the blending of gasoline-type fuels referred to in paragraph (a);
- (c) a middle distillate, including the products commonly or commercially known as kerosene, stove oil, diesel fuel, furnace oil, diesel oil, gas oil, distillate heating oil, engine distillates and Nos. 1, 2 and 3 fuel oils;
- (d) a heavy fuel oil, including a Nos. 4, 5 and 6 fuel oil, bunker “C” oil, “C” grade oil, residual fuel oil, heavy bunker oil, intermediate and thin bunker fuel and any blend of heavy fuel oil; or
- (e) a partially processed oil, whether commingled with crude oil or equivalent hydrocarbons or not. (produit pétrolier raffiné)
General
National Energy Board Rules of Practice and Procedure, 1995
2 In addition to the requirements set out in these Regulations, Part I of the National Energy Board Rules of Practice and Procedure, 1995 applies in respect of the procedures to be followed in applying for and making an order for the export of oil or gas.
Natural gas
3 For the purposes of subsection 353(2) of the Act, natural gas means a mixture of gas that is composed of at least 85% methane and that may also contain other hydrocarbons that at a temperature of 15°C and an absolute pressure of 101.325 kPa are in a gaseous state as well as minor amounts of non-hydrocarbon gas and impurities.
Suspension and revocation of orders
4 (1) Subject to subsection (2), the Commission may suspend or revoke an order for the export of oil or gas that is made under section 9, 12 or 15 if
- (a) the holder of the order has contravened any condition of the order; or
- (b) the Commission considers that it is in the public interest to do so.
Notice
(2) However, the Commission must not suspend or revoke the order unless the Commission first provides the holder of the order with notice of the alleged contravention or the reasons why it considers the suspension or revocation to be in the public interest, as the case may be, and gives the holder an opportunity to be heard.
On application or with consent
(3) The Commission may also suspend or revoke the order on the application or with the consent of the holder of the order.
Exemptions
5 Part 7 of the Act does not apply to
- (a) ethylene or propylene;
- (b) the export of oil
- (i) that is necessary to carry out a delivery of oil transmitted by pipeline in accordance with normal pipeline operating practices, or
- (ii) for use in exploration, drilling or production operations in the offshore areas over which Canada exercises jurisdiction;
- (c) the import of gas, propane, butane, ethane or oil;
- (d) the export of gas, propane, butane, ethane or oil for subsequent import nor the import of gas, propane, butane, ethane or oil for subsequent exportation to its country of origin; or
- (e) the export of
- (i) gas that is contained in the tank of a motor vehicle, locomotive or ship for its consumption,
- (ii) propane that is contained in the tank of a motor vehicle for its consumption, or
- (iii) oil that is contained in the tank of a motor vehicle, locomotive, ship or aircraft for its consumption.
Inspection
Inspection
6 (1) A commissioner or any person authorized by the Regulator in writing may enter any place to inspect any instruments, devices, plant, equipment, books, records or accounts or any other thing used for or in connection with the export or import of oil or gas or with the export of electricity, and may conduct any tests that are necessary to carry out the inspection.
Identification
(2) A person authorized by the Regulator must, on request, produce the authorization during the exercise of their powers, duties and functions under subsection (1).
Duty to assist
(3) The owner, operator or person in charge of any place or thing referred to in subsection (1) and every person in the place must give, during the inspection, all assistance that is reasonably required to enable the commissioner or person authorized by the Regulator to exercise their powers, duties and functions under subsection (1).
Gas
Gas Other than Propane, Butane and Ethane
Application
7 Sections 8 to 10 apply to gas other than propane, butane and ethane.
Licence — conditions
8 A licence for the export of gas that is issued under subsection 344(1) of the Act must fix its period of validity and may include conditions relating to
- (a) the period within which the export must begin;
- (b) the maximum monthly, annual and total quantities of gas that are proposed to be exported;
- (c) if applicable, the volumetric tolerance levels that are necessary to accommodate temporary operating conditions; and
- (d) the points of export from Canada.
Order
9 (1) If the Commission considers that an application for an order for the export of gas contains all the information that is necessary to make a decision with respect to the application, the Commission may make the order.
Maximum validity
(2) The period of validity of the order begins on the date fixed in the order and must not exceed, in the case of an order for the exportation of gas in quantities of not more than 30 000 m3 per day, 20 years and, in the case of any other order, two years.
Order — conditions
10 An order that is made under section 9 must fix its period of validity and may include conditions relating to
- (a) the period within which the export must begin;
- (b) the maximum monthly, annual and total quantities of gas that are proposed to be exported;
- (c) if applicable, the volumetric tolerance levels that are necessary to accommodate temporary operating conditions;
- (d) the points of export from Canada; and
- (e) the requirement that the holder of the order comply with
- (i) the Act and any regulation made under it, and
- (ii) any order made under the Act that applies to the holder.
Propane, Butane and Ethane
Licence — conditions
11 A licence for the export of propane, butane or ethane that is issued under subsection 344(1) of the Act must fix its period of validity and may include conditions relating to
- (a) the period within which the export must begin;
- (b) the maximum monthly, annual and total quantities of propane, butane or ethane that are proposed to be exported;
- (c) if applicable, the volumetric tolerance levels that are necessary to accommodate temporary operating conditions; and
- (d) the points of export from Canada.
Order
12 (1) If the Commission considers that an application for an order for the export of propane, butane or ethane contains all the information that is necessary to make a decision with respect to the application, the Commission may make the order.
Maximum validity
(2) The period of validity of the order begins on the date fixed in the order and must not exceed two years.
Order — conditions
13 An order that is made under section 12 must fix its period of validity and may include conditions relating to
- (a) the period within which the export must begin;
- (b) the maximum monthly, annual and total quantities of propane, butane or ethane that are proposed to be exported;
- (c) if applicable, the volumetric tolerance levels that are necessary to accommodate temporary operating conditions;
- (d) the points of export from Canada; and
- (e) the requirement that the holder of the order comply with
- (i) the Act and any regulation made under it, and
- (ii) any order made under the Act that applies to the holder.
Oil
Licence — conditions
14 (1) A licence for the export of crude oil or refined petroleum products that is issued under subsection 344(1) of the Act must fix its period of validity and may include conditions relating to
- (a) the period within which the export must begin;
- (b) the maximum monthly, annual and total quantities of crude oil or refined petroleum products that are proposed to be exported; and
- (c) the points of export from Canada.
Duration
(2) The period of validity of the licence must be at least two years.
Order
15 (1) If the Commission considers that an application for an order for the export of crude oil or refined petroleum products contains all the information that is necessary to make a decision with respect to the application, the Commission may make the order.
Maximum validity
(2) The period of validity of the order begins on the date fixed in the order and must not exceed two years.
Order — conditions
16 An order that is made under section 15 must fix its period of validity and may include conditions relating to
- (a) the period within which the export must begin;
- (b) the maximum monthly, annual and total quantities of crude oil or refined petroleum products that are proposed to be exported;
- (c) the points of export from Canada; and
- (d) the requirement that the holder of the order comply with
- (i) the Act and any regulation made under it, and
- (ii) any order made under the Act that applies to the holder.
Electricity
Permit — conditions
17 A permit for the export of electricity that is issued under subsection 356(1) of the Act must fix its period of validity and may include conditions relating to
- (a) the maximum quantities of power and energy authorized for export;
- (b) a requirement relating to the maximum duration of export contracts;
- (c) a requirement relating to the retention and filing with the Regulator and prior approval by the Commission of electricity transfer agreements, or any amendments to those agreements, that are entered into under the permit;
- (d) the qualification of an electricity transfer as firm or interruptible;
- (e) the conditions in which the permit holder must curtail or interrupt the export;
- (f) the international power line which is to be used for the export of electricity;
- (g) a requirement relating to the measurement of power and energy for the purpose of the permit;
- (h) the matters in respect of which the permit holder must notify the Regulator;
- (i) a requirement relating to the mitigation of adverse effects of the export on the reliability of the power systems; and
- (j) a requirement relating to the opportunities offered to Canadians to buy the electricity proposed to be exported from Canada.
Repeal
18 The National Energy Board Act Part VI (Oil and Gas) Regulations footnote 2 are repealed.
Coming into Force
Registration
19 These Regulations come into force on the day on which they are registered.
Terms of use and Privacy notice
Terms of use
It is your responsibility to ensure that the comments you provide do not:
- contain personal information
- contain protected or classified information of the Government of Canada
- express or incite discrimination on the basis of race, sex, religion, sexual orientation or against any other group protected under the Canadian Human Rights Act or the Canadian Charter of Rights and Freedoms
- contain hateful, defamatory, or obscene language
- contain threatening, violent, intimidating or harassing language
- contain language contrary to any federal, provincial or territorial laws of Canada
- constitute impersonation, advertising or spam
- encourage or incite any criminal activity
- contain external links
- contain a language other than English or French
- otherwise violate this notice
The federal institution managing the proposed regulatory change retains the right to review and remove personal information, hate speech, or other information deemed inappropriate for public posting as listed above.
Confidential Business Information should only be posted in the specific Confidential Business Information text box. In general, Confidential Business Information includes information that (i) is not publicly available, (ii) is treated in a confidential manner by the person to whose business the information relates, and (iii) has actual or potential economic value to the person or their competitors because it is not publicly available and whose disclosure would result in financial loss to the person or a material gain to their competitors. Comments that you provide in the Confidential Business Information section that satisfy this description will not be made publicly available. The federal institution managing the proposed regulatory change retains the right to post the comment publicly if it is not deemed to be Confidential Business Information.
Your comments will be posted on the Canada Gazette website for public review. However, you have the right to submit your comments anonymously. If you choose to remain anonymous, your comments will be made public and attributed to an anonymous individual. No other information about you will be made publicly available.
Comments will remain posted on the Canada Gazette website for at least 10 years.
Please note that communication by email is not secure, if the attachment you wish to send contains sensitive information, please contact the departmental email to discuss ways in which you can transmit sensitive information.
Privacy notice
The information you provide is collected under the authority of the Financial Administration Act, the Department of Public Works and Government Services Act, the Canada–United States–Mexico Agreement Implementation Act,and applicable regulators’ enabling statutes for the purpose of collecting comments related to the proposed regulatory changes. Your comments and documents are collected for the purpose of increasing transparency in the regulatory process and making Government more accessible to Canadians.
Personal information submitted is collected, used, disclosed, retained, and protected from unauthorized persons and/or agencies pursuant to the provisions of the Privacy Act and the Privacy Regulations. Individual names that are submitted will not be posted online but will be kept for contact if needed. The names of organizations that submit comments will be posted online.
Submitted information, including personal information, will be accessible to Public Services and Procurement Canada, who is responsible for the Canada Gazette webpage, and the federal institution managing the proposed regulatory change.
You have the right of access to and correction of your personal information. To seek access or correction of your personal information, contact the Access to Information and Privacy (ATIP) Office of the federal institution managing the proposed regulatory change.
You have the right to file a complaint to the Privacy Commission of Canada regarding any federal institution’s handling of your personal information.
The personal information provided is included in Personal Information Bank PSU 938 Outreach Activities. Individuals requesting access to their personal information under the Privacy Act should submit their request to the appropriate regulator with sufficient information for that federal institution to retrieve their personal information. For individuals who choose to submit comments anonymously, requests for their information may not be reasonably retrievable by the government institution.