Oil and Gas Operations Act
Consolidated act- Citation
- S.N.W.T. 2014, c.14
- Source
- Unofficial consolidation PDF (justice.gov.nt.ca)
This is an unofficial reading copy parsed from the Department of Justice consolidation PDF above — itself an office consolidation, not an official statement of the law. The authoritative text is in the Revised Statutes of the Northwest Territories, 1988 and the annual Statutes volumes.
- s.1 amended by Miscellaneous Statute Law Amendment Act, 2017
- s.1 amended by An Act to Amend the Oil and Gas Operations Act
- s.8 amended by An Act to Amend the Oil and Gas Operations Act
- s.11 amended by Oil and Gas Operations Act
- s.18 amended by An Act to Amend the Oil and Gas Operations Act
- s.19 amended by An Act to Amend the Oil and Gas Operations Act
- s.19.1 amended by An Act to Amend the Oil and Gas Operations Act
- s.20.1 amended by An Act to Amend the Oil and Gas Operations Act
- s.22 amended by An Act to Amend the Oil and Gas Operations Act
- s.23 repealed by An Act to Amend the Oil and Gas Operations Act
- s.61 amended by An Act to Amend the Oil and Gas Operations Act
- s.64 amended by An Act to Amend the Oil and Gas Operations Act
- s.87 amended by An Act to Amend the Oil and Gas Operations Act
- s.121 amended by Miscellaneous Statute Amendment Act, 2015
- s.1 Northwest Territories Lands Act
- s.1 Petroleum Resources Act
- s.1 Northwest Territories Act (Canada)
- s.1 Northwest Territories Lands Act
- s.1 Northwest Territories Lands Act
- s.1 Petroleum Resources Act
- s.5 Statutory Instruments Act
- s.11 Petroleum Resources Act
- s.11 Surface Rights Board Act
- s.11 Surface Rights Board Act
- s.18 Statutory Instruments Act
- s.22 Petroleum Resources Act
- s.22 Petroleum Resources Act
- s.22 Petroleum Resources Act
- s.22 Access to Information and Protection of Privacy Act
- s.26 Petroleum Resources Act
- s.65 Public Inquiries Act
- s.67 Northwest Territories Lands Act
- s.67 Petroleum Resources Act
- s.74 Northwest Territories Lands Act
- s.74 Petroleum Resources Act
- s.90 Petroleum Resources Act
- s.90 Petroleum Resources Act
- s.122 Surface Rights Board Act
- s.122 Surface Rights Board Act
- s.124 Statutory Instruments Act
- s.125 Surface Rights Board Act
- Acts
- Boilers and Pressure Vessels Act, s.2
- Electrical Protection Act, s.2.1
- Elevators and Lifts Act, s.3
- Gas Protection Act, s.2
- Petroleum Resources Act, s.1 → s.27
- Petroleum Resources Act, s.1 → s.1
- Petroleum Resources Act, s.7
- Petroleum Resources Act, s.20 → s.17(2)
- Petroleum Resources Act, s.63
- Petroleum Resources Act, s.63
- Petroleum Resources Act, s.91
- Petroleum Resources Act, s.92
- Petroleum Resources Act, s.94
- Regulations
- Business Corporations Regulations, s.47 (under the Business Corporations Act)
- Employment Standards Regulations, s.4.01 (under the Employment Standards Act)
- Northwest Territories Land Use Regulations, s.1 (under the Northwest Territories Lands Act)
- Oil and Gas Certificate of Fitness Regulations, s.1 (under the Oil and Gas Operations Act) → s.10(1)(b)
- Oil and Gas Certificate of Fitness Regulations, s.1 (under the Oil and Gas Operations Act) → s.16
- Oil and Gas Certificate of Fitness Regulations, s.3 (under the Oil and Gas Operations Act) → s.54
- Oil and Gas Certificate of Fitness Regulations, s.3 (under the Oil and Gas Operations Act) → s.16
- Oil and Gas Certificate of Fitness Regulations, Schedule 1 (under the Oil and Gas Operations Act) → s.25
- Oil and Gas Certificate of Fitness Regulations, Schedule 1 (under the Oil and Gas Operations Act) → s.27
- Oil and Gas Certificate of Fitness Regulations, Schedule 1 (under the Oil and Gas Operations Act) → s.26(b)
- Oil and Gas Certificate of Fitness Regulations, Schedule 1 (under the Oil and Gas Operations Act) → s.34
- Oil and Gas Certificate of Fitness Regulations, Schedule 1 (under the Oil and Gas Operations Act) → s.35
- Oil and Gas Certificate of Fitness Regulations, Schedule 1 (under the Oil and Gas Operations Act) → s.36(1)
- Oil and Gas Certificate of Fitness Regulations, Schedule 1 (under the Oil and Gas Operations Act) → s.37
- Oil and Gas Certificate of Fitness Regulations, Schedule 1 (under the Oil and Gas Operations Act) → s.45(a)
- Oil and Gas Certificate of Fitness Regulations, Schedule 1 (under the Oil and Gas Operations Act) → s.45(b)
- Oil and Gas Certificate of Fitness Regulations, Schedule 1 (under the Oil and Gas Operations Act) → s.47
- Oil and Gas Certificate of Fitness Regulations, Schedule 1 (under the Oil and Gas Operations Act) → s.48
- Oil and Gas Certificate of Fitness Regulations, Schedule 1 (under the Oil and Gas Operations Act) → s.62(a)
- Oil and Gas Certificate of Fitness Regulations, Schedule 1 (under the Oil and Gas Operations Act) → s.22(b)
- Oil and Gas Certificate of Fitness Regulations, Schedule 1 (under the Oil and Gas Operations Act) → s.12(1)
- Oil and Gas Certificate of Fitness Regulations, Schedule 1 (under the Oil and Gas Operations Act) → s.12(2)(d)
- Oil and Gas Certificate of Fitness Regulations, Schedule 1 (under the Oil and Gas Operations Act) → s.12(2)(g)
- Oil and Gas Certificate of Fitness Regulations, Schedule 1 (under the Oil and Gas Operations Act) → s.12(2)(i)
- Oil and Gas Certificate of Fitness Regulations, Schedule 1 (under the Oil and Gas Operations Act) → s.12(2)(k)
- Oil and Gas Certificate of Fitness Regulations, Schedule 1 (under the Oil and Gas Operations Act) → s.13
- Oil and Gas Certificate of Fitness Regulations, Schedule 1 (under the Oil and Gas Operations Act) → s.14
- Oil and Gas Certificate of Fitness Regulations, Schedule 1 (under the Oil and Gas Operations Act) → s.18(c)
- Oil and Gas Certificate of Fitness Regulations, Schedule 1 (under the Oil and Gas Operations Act) → s.19(1)
- Oil and Gas Certificate of Fitness Regulations, Schedule 1 (under the Oil and Gas Operations Act) → s.19(2)(a)
- Oil and Gas Certificate of Fitness Regulations, Schedule 1 (under the Oil and Gas Operations Act) → s.23
- Oil and Gas Certificate of Fitness Regulations, Schedule 1 (under the Oil and Gas Operations Act) → s.25(a)
- Oil and Gas Certificate of Fitness Regulations, Schedule 1 (under the Oil and Gas Operations Act) → s.19(i)
- Oil and Gas Certificate of Fitness Regulations, Schedule 1 (under the Oil and Gas Operations Act) → s.23
- Oil and Gas Certificate of Fitness Regulations, Schedule 1 (under the Oil and Gas Operations Act) → s.18(a)
- Oil and Gas Diving Regulations, s.2 (under the Oil and Gas Operations Act) → s.6
- Oil and Gas Diving Regulations, s.2 (under the Oil and Gas Operations Act) → s.10(1)(b)
- Oil and Gas Diving Regulations, s.4 (under the Oil and Gas Operations Act) → s.10(1)(b)
- Oil and Gas Diving Regulations, s.4 (under the Oil and Gas Operations Act) → s.10(1)(b)
- Oil and Gas Diving Regulations, s.4 (under the Oil and Gas Operations Act) → s.10(1)(b)
- Oil and Gas Diving Regulations, s.4 (under the Oil and Gas Operations Act) → s.10(1)(b)
- Oil and Gas Diving Regulations, s.6 (under the Oil and Gas Operations Act) → s.10(1)(b)
- Oil and Gas Diving Regulations, s.7 (under the Oil and Gas Operations Act) → s.10(1)(b)
- Oil and Gas Diving Regulations, s.8 (under the Oil and Gas Operations Act) → s.54(1)
- Oil and Gas Diving Regulations, s.11 (under the Oil and Gas Operations Act) → s.10(1)(b)
- Oil and Gas Diving Regulations, s.11 (under the Oil and Gas Operations Act) → s.10(1)(b)
- Oil and Gas Diving Regulations, s.12 (under the Oil and Gas Operations Act) → s.10(1)(b)
- Oil and Gas Diving Regulations, s.12 (under the Oil and Gas Operations Act) → s.10(1)(b)
- Oil and Gas Diving Regulations, s.12 (under the Oil and Gas Operations Act) → s.10(1)(b)
- Oil and Gas Diving Regulations, s.15 (under the Oil and Gas Operations Act) → s.10(1)(b)
- Oil and Gas Diving Regulations, s.16 (under the Oil and Gas Operations Act) → s.10(1)(b)
- Oil and Gas Diving Regulations, s.17 (under the Oil and Gas Operations Act) → s.10(1)(b)
- Oil and Gas Diving Regulations, s.17 (under the Oil and Gas Operations Act) → s.10(1)(b)
- Oil and Gas Diving Regulations, s.18 (under the Oil and Gas Operations Act) → s.10(1)(b)
- Oil and Gas Diving Regulations, s.26 (under the Oil and Gas Operations Act) → s.10(1)(b)
- Oil and Gas Diving Regulations, s.26 (under the Oil and Gas Operations Act) → s.54(1)
- Oil and Gas Diving Regulations, s.50 (under the Oil and Gas Operations Act) → s.106(d)
- Oil and Gas Diving Regulations, s.51 (under the Oil and Gas Operations Act) → s.106(d)
- Oil and Gas Diving Regulations, s.63 (under the Oil and Gas Operations Act) → s.106(d)
- Oil and Gas Diving Regulations, s.69 (under the Oil and Gas Operations Act) → s.106(d)
- Oil and Gas Drilling and Production Regulations, s.1 (under the Oil and Gas Operations Act) → s.10
- Oil and Gas Drilling and Production Regulations, s.1 (under the Oil and Gas Operations Act) → s.14
- Oil and Gas Drilling and Production Regulations, s.1 (under the Oil and Gas Operations Act) → s.10
- Oil and Gas Drilling and Production Regulations, s.1 (under the Oil and Gas Operations Act) → s.10
- Oil and Gas Drilling and Production Regulations, s.1 (under the Oil and Gas Operations Act) → s.15
- Oil and Gas Drilling and Production Regulations, s.1 (under the Oil and Gas Operations Act) → s.112
- Oil and Gas Drilling and Production Regulations, s.15 (under the Oil and Gas Operations Act) → s.14(1)
- Oil and Gas Drilling and Production Regulations, s.16 (under the Oil and Gas Operations Act) → s.10
- Oil and Gas Geophysical Operations Regulations, s.1 (under the Oil and Gas Operations Act) → s.105
- Oil and Gas Geophysical Operations Regulations, s.1 (under the Oil and Gas Operations Act) → s.10(1)(b)
- Oil and Gas Installations Regulations, s.2 (under the Oil and Gas Operations Act) → s.14(1)
- Oil and Gas Installations Regulations, s.2 (under the Oil and Gas Operations Act) → s.10(1)(b)
- Oil and Gas Installations Regulations, s.2 (under the Oil and Gas Operations Act) → s.10(1)(b)
- Oil and Gas Installations Regulations, s.2 (under the Oil and Gas Operations Act) → s.10(1)(b)
- Oil and Gas Installations Regulations, s.2 (under the Oil and Gas Operations Act) → s.14(1)
- Oil and Gas Installations Regulations, s.2 (under the Oil and Gas Operations Act) → s.10(l)(b)
- Oil and Gas Occupational Safety and Health Regulations, Schedule 1 (under the Safety Act)
- Oil and Gas Operations Regulations, s.1 (under the Oil and Gas Operations Act) → s.10
- Oil and Gas Operations Regulations, s.4 (under the Oil and Gas Operations Act) → s.10(1)(b)
- Oil and Gas Operations Regulations, s.5 (under the Oil and Gas Operations Act) → s.62(2)
- Oil and Gas Spills and Debris Liability Regulations, s.1 (under the Oil and Gas Operations Act) → s.6(1)(a)
- Oil and Gas Spills and Debris Liability Regulations, s.1 (under the Oil and Gas Operations Act) → s.63
- Oil and Gas Spills and Debris Liability Regulations, s.1 (under the Oil and Gas Operations Act) → s.9
- Petroleum Lands Royalty Regulations, s.1 (under the Petroleum Resources Act)
- Petroleum Lands Royalty Regulations, s.3 (under the Petroleum Resources Act) → s.56(4)
- Property Assessment Regulations, s.25 (under the Property Assessment and Taxation Act)
The Commissioner of the Northwest Territories, by and with the advice and consent of the Legislative Assembly, enacts as follows:
INTERPRETATION
Definitions
1.In this Act,
"Chief Conservation Officer" means the Chief Conservation Officer appointed under section 4
(a) in respect of the Inuvialuit Settlement Region within the onshore, by the National Energy Board, or
(b) in respect of that portion of the onshore falling outside the Inuvialuit Settlement Region, by the Regulator designated under section 121; (délégué à l’exploitation)
"Chief Safety Officer" means the Chief Safety Officer appointed under section 4
(a) in respect of the Inuvialuit Settlement Region within the onshore, by the National Energy Board, or
(b) in respect of that portion of the onshore falling outside the Inuvialuit Settlement Region, by the Regulator designated under section 121; (délégué à la sécurité)
"Committee" means the Oil and Gas Committee established by section 27; (Comité)
"conservation officer" means a conservation officer appointed under section 105; (agent du contrôle de l’exploitation)
"exploratory well" means a well drilled on a geological feature on which a significant discovery has not been made; (puits d’exploration)
"field"
(a) means a general surface area underlain or appearing to be underlain by one or more pools, and
(b) includes the subsurface regions vertically beneath the general surface area referred to in paragraph (a); (champ)
"gas" means natural gas and includes all substances, other than oil, that are produced in association with natural gas; (gaz)
"Inuvialuit Settlement Region" means that portion of the Northwest Territories shown in Annex A and described in Annex A-1 of the Inuvialuit Final Agreement between the Inuvialuit and the Government of Canada, dated June 5, 1984, excluding any area in Yukon or in the adjoining area as defined in section 2 of the Yukon Act (Canada); (région désignée des Inuvialuit)
"lease" means an oil and gas lease issued under regulations made in accordance with the Northwest Territories Lands Act and includes a production licence issued under the Petroleum Resources Act; (concession)
"National Energy Board" means the National Energy Board established by the National Energy Board Act (Canada); (Office national de l’énergie)
"oil" means
(a) crude petroleum regardless of gravity produced at a well-head in liquid form, and
(b) any other hydrocarbons, except coal and gas, including hydrocarbons that may be extracted or recovered from surface or subsurface deposits, including deposits of oil sand, bitumen, bituminous sand, oil shale and other types of deposits; (pétrole)
"onshore" means the onshore as defined in the Northwest Territories Act (Canada); (région intracôtière)
"permit" means an exploratory oil and gas permit issued under regulations made in accordance with the Northwest Territories Lands Act and includes an exploration agreement entered into under the Oil and Gas Land Regulations made under the Northwest Territories Lands Act and an exploration agreement or licence that is subject to the Petroleum Resources Act; (permis)
"petroleum" means oil or gas; (hydrocarbures)
"pipeline" means any pipe or any system or arrangement of pipes by which oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas is conveyed from any well-head or other place at which it is produced to any other place, or from any place where it is stored, processed or treated to any other place, and includes all property of any kind used for the purpose of, or in connection with or incidental to, the operation of a pipeline in the gathering, transporting, handling and delivery of the oil, gas or substance and, without restricting the generality of the foregoing, includes offshore installations or vessels, tanks, surface reservoirs, pumps, racks, storage and loading facilities, compressors, compressor stations, pressure measuring and controlling equipment and fixtures, flow controlling and measuring equipment and fixtures, metering equipment and fixtures, and heating, cooling and dehydrating equipment and fixtures, but does not include any pipe or any system or arrangement of pipes that constitutes a distribution system for the distribution of gas to ultimate consumers; (pipeline)
"pool" means a natural underground reservoir containing or appearing to contain an accumulation of oil or gas or both oil and gas and being separated or appearing to be separated from any other accumulation; (gisement)
"Regulator" means
(a) in respect of the Inuvialuit Settlement Region within the onshore, the National Energy Board established by the National Energy Board Act (Canada), and
(b) in respect of that portion of the onshore falling outside the Inuvialuit Settlement Region, the Regulator designated by the Commissioner in Executive Council under section 121; (organisme de réglementation)
"safety officer" means a safety officer appointed under section 105; (agent de la sécurité)
"well" means any opening in the ground, not being a seismic shot hole, that is made, to be made or is in the process of being made by drilling, boring or other method
(a) for the production of oil or gas,
(b) for the purpose of searching for or obtaining oil or gas,
(c) for the purpose of obtaining water to inject into an underground formation,
(d) for the purpose of injecting gas, air, water or other substance into an underground formation, or
(e) for any purpose, if made through sedimentary rocks to a depth of at least 150 metres. (puits)
PURPOSE
Purpose
2.The purpose of this Act is to promote, in respect of the exploration for and exploitation of oil and gas,
(a) safety, particularly by encouraging persons exploring for and exploiting oil or gas to maintain a prudent regime for achieving safety;
(b) the protection of the environment;
(c) the conservation of oil and gas resources;
(d) joint production arrangements; and
(e) economically efficient infrastructures.
APPLICATION
Application
3.This Act applies in respect of the exploration and drilling for and the production, conservation, processing and transportation of oil and gas within the onshore.
CHIEF SAFETY OFFICER AND
CHIEF CONSERVATION OFFICER
Appointment
4.A Regulator shall, for the area over which it has jurisdiction, appoint a Chief Safety Officer and a Chief Conservation Officer.
STATUTORY INSTRUMENTS ACT
Orders
5.For greater certainty, orders made by a safety officer, the Chief Safety Officer, a conservation officer, the Chief Conservation Officer, the Committee or the Regulator are not statutory instruments within the meaning of the Statutory Instruments Act.
PROHIBITION
Prohibition
6.No person shall carry on any work or activity related to the exploration or drilling for or the production, conservation, processing or transportation of oil or gas in any area to which this Act applies unless
(a) that person is the holder of an operating licence issued under paragraph 10(1)(a);
(b) that person is the holder of an authorization issued, before the commencement of operations, under paragraph 10(1)(b) for each work or activity; and
(c) in the case where it is required, that person is authorized or entitled to carry on business in the place where that person proposes to carry on the work or activity.
Limitations on pipelines
7.(1) A holder of an authorization under paragraph 10(1)(b) to construct or operate a pipeline shall not, without the leave of the Regulator,
(a) sell, transfer or lease to any person its pipeline, in whole or in part;
(b) purchase or lease any pipeline from any person;
(c) enter into an agreement for amalgamation with any person; or
(d) abandon the operation of a pipeline.
(2) For the purposes of paragraph (1)(b), "pipeline" includes a pipeline as defined in section 1 or any other pipeline.
(3) Notwithstanding paragraph (1)(a), leave shall only be required if the holder sells, transfers or leases any part of its pipeline that is capable of being operated for the transmission of oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas.
DELEGATION
Delegation by Regulator
8.(1) The Regulator may delegate any of the Regulator’s powers, duties or functions under this Act or the regulations to any person, and that person shall exercise those powers and shall perform those duties or functions in accordance with the terms of the delegation.
(2) The Regulator shall make notice of a delegation under subsection (1) publicly available.
(3) The Minister may delegate any of the Minister’s powers, duties or functions under this Act or the regulations to any employee of the public service, and that person shall exercise those powers and shall perform those duties or functions in accordance with the terms of the delegation. SNWT 2019,c.24,s.3.
CONTRACTING
Contracting
9.The Minister, on behalf of the Government of the Northwest Territories, may enter into a contract with the Government of Canada, the government of a province or territory, an agency of any of those governments or another person respecting the provision of services of employees of that government, agency or person for the purpose of assisting the Minister in the administration of this Act.
LICENCES AND AUTHORIZATIONS
Operating Licences and Authorization for Work
Licences and authorizations
10.(1) The Regulator may, on application made in the form approved by and containing the information required by the Regulator, and made in the prescribed manner, issue
(a) an operating licence; and
(b) an authorization with respect to each work or activity proposed to be carried on.
(2) An operating licence expires on March 31 immediately after the day on which it is issued and may be renewed for successive periods not exceeding one year each.
(3) An operating licence is subject to
(a) any requirements that the Regulator may determine or that may be prescribed; and
(b) the prescribed fees and deposits.
(4) An authorization is subject to any approvals that the Regulator may determine or that may be granted in accordance with the regulations and any requirements and deposits that the Regulator may determine or that may be prescribed, including
(a) requirements relating to liability for loss, damage, costs or expenses;
(b) requirements for the carrying out of environmental programs or studies; and
(c) requirements for the payment of expenses incurred by the Regulator in approving the design, construction and operation of production facilities and production platforms as those terms are defined in the regulations.
(5) The Regulator may suspend or revoke an operating licence or an authorization for a failure to comply with, a contravention of or a default in respect of
(a) a requirement, approval, fee or deposit subject to which the licence or authorization was issued;
(b) a requirement undertaken in a declaration referred to in subsection 15(1) or (2);
(c) subsection 15(3), 16(2) or 64(2); or
(d) any applicable regulation.
(6) The Regulator may vary the terms of any operating licence or authorization issued under this Act.
Right of entry
11.(1) Subject to subsection (2), any person may, for the purpose of exploring for or exploiting oil or gas, enter on and use the surface of the land in any area in which this Act applies in order to carry on a work or activity authorized under paragraph 10(1)(b).
(2) If a person occupies land in an area to which this Act applies under a lawful right or title, other than an authorization under paragraph 10(1)(b) or an interest as defined in section 1 of the Petroleum Resources Act, no person may enter on or use the surface of that land for a purpose referred to in subsection (1), except with the consent of the occupier or, in the case where consent has been refused, in accordance with the terms and conditions of a decision of the Surface Rights Board made in accordance with the Surface Rights Board Act.
(3) Subsections (1) and (2) do not apply in respect of designated land as defined in subsection 1(1) of the Surface Rights Board Act or Tłı̨chǫ lands as defined in subsection 1(2) of that Act. SNWT 2014,c.14,s.122.
Safety of Works and Activities
Safety
12.The Regulator shall, before issuing an authorization for a work or activity referred to in paragraph 10(1)(b), consider the safety of the work or activity by reviewing, in consultation with the Chief Safety Officer, the system as a whole and its components, including its installations, equipment, operating procedures and personnel.
Financial Responsibility
Compliance with subsection 64(1)
13.The Regulator shall, before issuing an authorization for a work or activity referred to in paragraph 10(1)(b), ensure that the applicant has complied with the requirements of subsection 64(1) in respect of that work or activity.
Development Plan Approval
Approval of general
14.(1) No approval that is
(a) applicable to an authorization under paragraph 10(1)(b) to carry on work or activity in relation to developing a pool or field, and
(b) prescribed for the purposes of this subsection
may be granted unless the Regulator, on application submitted in accordance with subsection (2), has approved a development plan relating to the pool or field under subsection (4).
(2) An application for the approval of a development plan must be
(a) submitted to the Regulator in the form approved by and containing the information required by the Regulator, at the time and in the manner as may be prescribed; and
(b) accompanied by the proposed development plan in the form and containing the information described in subsection (3).
(3) A development plan relating to the proposed development of a pool or field must be set out in two parts, containing
(a) in Part 1, a description of the general approach of developing the pool or field, and in particular, information, in the amount of detail as may be prescribed, with respect to
(i) the scope, purpose, location, timing and nature of the proposed development,
(ii) the production rate, evaluations of the pool or field, estimated amounts of oil or gas proposed to be recovered, reserves, recovery methods, production monitoring procedures, costs and environmental factors in connection with the proposed development, and
(iii) the production system and any alternative production systems that could be used for the development of the pool or field; and
(b) in Part 2, all technical or other information and proposals, as may be prescribed, necessary for a comprehensive review and evaluation of the proposed development.
(4) After reviewing an application and development plan submitted under this section, the Regulator may approve the development plan, subject to the consent of the Commissioner in Executive Council in relation to Part 1 of the development plan and any requirements that the Regulator considers appropriate or that may be prescribed.
(5) If a development plan is approved under subsection (4),
(a) no amendment of the development plan may be made unless it is approved by the Regulator and, in the case of an amendment to Part 1 of the development plan, the Commissioner in Executive Council consents to the approval; and
(b) any requirement to which the approval is subject may be amended by the Regulator but, if the requirement relates to Part 1 of the development plan, it may only be amended with the consent of the Commissioner in Executive Council.
(6) Subsections (1) to (5) apply, with such modifications as the circumstances require, with respect to a proposed amendment to a development plan or to any requirement to which the approval of the plan is subject.
(7) Notwithstanding subsection (4), the Regulator may approve a development plan in relation to developing a straddling resource, as defined in section 86, subject to
(a) the consent of the Commissioner in Executive Council and the Governor in Council in relation to Part 1 of the plan; and
(b) any requirements that the Regulator considers appropriate or that may be prescribed.
(8) If the Commissioner in Executive Council and the Governor in Council do not consent in relation to Part 1 of the plan, either government may notify the other of their intention to refer the matter to an independent expert for a decision in accordance with section 99.
(9) The expert’s decision in relation to the development plan is deemed to be a development plan approved by the Regulator and, in relation to Part 1 of the plan, is deemed to be one that is consented to by the Commissioner in Executive Council and the Governor in Council.
(10) If a development plan is approved under subsection (7) or deemed to be approved under subsection (9), no amendment may be made to the plan unless it is approved by the Regulator and, in the case of an amendment in relation to Part 1 of the plan, consented to by the Commissioner in Executive Council and the Governor in Council.
(11) Subsections (7) to (10) apply, with such modifications as the circumstances require, in respect of a proposed amendment to a development plan.
Declarations
Declaration by applicant
15.(1) Subject to subsection (2), no authorization under paragraph 10(1)(b) may be issued unless the Regulator has received, from the applicant for the authorization, a declaration in the form approved by the Regulator stating that
(a) the equipment and installations that are to be used in the work or activity to be authorized are fit for the purposes for which they are to be used, the operating procedures relating to them are appropriate for those uses, and the personnel who are to be employed in connection with them are qualified and competent for their employment; and
(b) the applicant shall ensure, so long as the work or activity that is authorized continues, that the equipment and installations continue to be fit for the purposes for which they are used, the operating procedures continue to be appropriate for those uses, and the personnel continue to be so qualified and competent.
(2) The Regulator may accept, in respect of equipment that is to be used in the work or activity to be authorized, in place of a declaration from the applicant, a declaration, in a form approved by the Regulator, from the owner of the equipment stating that
(a) the equipment is fit for the purpose for which it is to be used, the operating procedures relating to it are appropriate for that use, and the personnel who are to be employed by the owner in connection with it are qualified and competent for their employment; and
(b) the owner shall ensure that, so long as the equipment is used in the work or activity that is authorized, that the equipment continues to be fit for the purpose for which it is used, the operating procedures continue to be appropriate for that use, and the personnel continue to be so qualified and competent.
(3) If the equipment, an installation, the operating procedures or any of the personnel specified in the declaration changes and no longer conforms to the declaration, the holder of the authorization shall provide the Regulator with a new declaration as soon as possible after the change occurs.
(4) The Regulator or any delegate of the Regulator is not liable to any person by reason only of having issued an authorization in reliance on a declaration made under this section.
Certificates
Certificate
16.(1) No authorization under paragraph 10(1)(b) may be issued with respect to any prescribed equipment or installation, or any equipment or installation of a prescribed class, unless the Regulator has received, from the applicant for the authorization, a certificate issued by a certifying authority in the form approved by the Regulator.
(2) The holder of an authorization shall ensure that the certificate referred to in subsection (1) remains in force for so long as the equipment or installation to which the certificate relates is used in the work or activity in respect of which the authorization is issued.
(3) A certificate referred to in subsection (1) must state that the equipment or installation in question
(a) is fit for the purposes for which it is to be used and may be operated safely without posing a threat to persons or to the environment in the location and for the time set out in the certificate; and
(b) is in conformity with all of the requirements and conditions that are imposed for the purposes of this section by subsection 10(4), whether they are imposed by regulation or by the Regulator.
(4) A certificate referred to in subsection (1) is not valid if the certifying authority
(a) has not complied with any prescribed procedure or any procedure that the Regulator may establish; or
(b) is a person or an organization that has participated in the design, construction or installation of the equipment or installation in respect of which the certificate is issued, to any extent greater than that prescribed.
(5) An applicant shall permit the certifying authority to have access to the equipment and installation in respect of which the certificate is required and to any information that relates to them.
(6) For the purposes of this section, "certifying authority" has the meaning assigned by the regulations.
(7) The Regulator or any delegate of the Regulator is not liable to any person by reason only of having issued an authorization in reliance on a certificate issued under this section.
Benefits Plan Approval
Definition: "benefits plan"
17.(1) In this section, "benefits plan" means a plan for the employment of Canadians and for providing Canadian manufacturers, consultants, contractors and service companies with a full and fair opportunity to participate on a competitive basis in the supply of goods and services used in any proposed work or activity referred to in the benefits plan.
(2) No approval of a development plan may be granted under subsection 14(1) and no authorization of any work or activity may be issued under paragraph 10(1)(b) until the Minister has approved, or waived the requirement for approval of, a benefits plan in respect of the work or activity.
(3) The Minister may require that any benefits plan submitted under subsection (2) include provisions to ensure that disadvantaged individuals or groups have access to training and employment opportunities and to enable those individuals or groups or corporations owned or cooperatives operated by them to participate in the supply of goods and services used in any proposed work or activity referred to in the benefits plan.
Guidelines and Interpretation Notes
Guidelines and interpretation notes
18.(1) The Regulator may issue and publish, in any manner it considers appropriate, guidelines and interpretation notes with respect to the application and administration of any provision of this Act or the regulations.
(2) The Minister may issue and publish, in any manner the Minister considers appropriate, guidelines and interpretation notes with respect to the application and administration of section 17.
(3) For greater certainty, guidelines and interpretation notes issued under subsections (1) and (2) are not statutory instruments within the meaning of the Statutory Instruments Act. SNWT 2019,c.24,s.4.
Jurisdiction and Powers of Regulator
Jurisdiction
19.(1) The Regulator has full and exclusive jurisdiction to inquire into, hear and determine any matter
(a) if it appears to the Regulator that any person failed to do any act, matter or thing required to be done by this Act, any regulation, order or direction made under this Act, or an operating licence or authorization issued under section 10, or that any person has done or is doing any act, matter or thing contrary to or in contravention of this Act, any regulation, order or direction made under this Act, or an operating licence or authorization issued under section 10; or
(b) if it appears to the Regulator that the circumstances may require the Regulator, in the public interest, to make any order or give any direction, leave, sanction or approval that by law it is authorized to make or give, or with respect to any act, matter or thing that is prohibited, sanctioned or required to be done by this Act, any regulation, order or direction made under this Act, or an operating licence or authorization issued under section 10.
(2) The Regulator may, of its own motion, inquire into, hear and determine any matter or thing that under this Act it is authorized to inquire into, hear and determine.
(3) For the purposes of this Act, the Regulator has full jurisdiction to hear and determine all matters, whether of law or of fact.
(4) For the purpose of any inquiry, hearing or appeal or the making of any order, the Regulator has the powers, rights and privileges that are vested in the Supreme Court for the trial of civil actions in respect of
(a) the attendance, swearing or affirming and examination of witnesses;
(b) the production and inspection of documents and other items;
(c) the entry on and inspection of property;
(d) the enforcement of its orders; and
(e) any other matters necessary or proper for the due exercise of the Regulator’s jurisdiction under this Act.
Public hearings
19.1.The Regulator may conduct a public hearing in respect of the exercise of any of its powers or the performance of any of its duties and functions under this Act or the regulations. SNWT 2019,c.24,s.5.
Regulator’s powers
20.The Regulator may
(a) order and require any person to do, without delay, or within or at any specified time and in any manner set by the Regulator, any act, matter or thing that the person is or may be required to do under this Act, any regulation, order or direction made under this Act or an operating licence or authorization issued under section 10; and
(b) prohibit the doing or continuing of any act, matter or thing that is contrary to this Act, any regulation, order or direction made under this Act or an operating licence or authorization issued under section 10.
Annual report
20.1.(1) The Regulator shall, within four months after the end of each fiscal year, submit to the Minister a report on the activities of the Regulator under this Act for that fiscal year in accordance with any applicable regulations.
(2) The Minister shall cause the report to be laid before the Legislative Assembly at the earliest opportunity.
(3) The Commissioner in Executive Council may make regulations for the purposes of this section prescribing the form or content of the report. SNWT 2019,c.24,s.6.
Committee’s decisions and orders paramount
21.The Regulator’s jurisdiction and powers under sections 19 and 20 are subject to a decision or order of the Committee.
Definitions
22.(1) In this section,
"delineation well" means a well that is so located in relation to another well penetrating an accumulation of petroleum that there is a reasonable expectation that another portion of that accumulation will be penetrated by the first-mentioned well and that the drilling is necessary in order to determine the commercial value of the accumulation; (puits de délimitation)
"development well" means a well that is so located in relation to another well penetrating an accumulation of petroleum that it is considered to be a well or part of a well drilled for the purpose of production or observation or for the injection or disposal of fluid into or from the accumulation; (puits d’exploitation)
"engineering research or feasibility study" includes work undertaken to facilitate the design or to analyze the viability of engineering technology, systems or schemes to be used in the exploration for or the development, production or transportation of petroleum on petroleum lands; (recherches ou études techniques)
"environmental study" means work pertaining to the measurement or statistical evaluation of the physical, chemical and biological elements of the lands, lakes, rivers and other surface or ground water, oceans or coastal zones, including winds, waves, tides, currents, precipitation, ice cover and movement, icebergs, pollution effects, flora and fauna both onshore and offshore, human activity and habitation and any related matters; (études de l’environnement)
"experimental project" means work or activity involving the utilization of methods or equipment that are untried or unproven; (opération expérimentale)
"geological work" means work, in the field or laboratory, involving the collection, examination, processing or other analysis of lithological, paleontological or geochemical materials recovered from the surface or subsurface or the seabed or its subsoil of any petroleum lands, and includes the analysis and interpretation of mechanical well logs; (travaux de géologie)
"geophysical work" means work involving the indirect measurement of the physical properties of rocks in order to determine the depth, thickness, structural configuration or history of deposition of the rocks, and includes the processing, analysis and interpretation of material or data obtained from such work; (travaux de géophysique)
"geotechnical work" means work, in the field or laboratory, undertaken to determine the physical properties of materials recovered from the surface or subsurface or the seabed or its subsoil of any petroleum lands; (travaux de géotechnique)
"hydraulic fracturing fluid" means the fluid, including the applicable base fluid and all additives, used to perform a particular hydraulic fracturing treatment; (fluide de fracturation hydraulique)
"hydraulic fracturing fluid information" means, in respect of a well in which hydraulic fracturing fluid has been used,
(a) the name of the well,
(b) the name of the operator,
(c) the identification number,
(d) the well surface location,
(e) the classification,
(f) the fracture finish date,
(g) the true vertical depth in metres,
(h) an identification of the fluid ingredients and a description of the purpose of each,
(i) an identification, as a percentage by mass, of each ingredient’s maximum concentration in
(i) the additive, and
(ii) the hydraulic fracturing fluid,
(j) the chemical abstract service number of each ingredient,
(k) the total volume of water, in m3, injected with the ingredients,
(l) the total volume of fluid, in m3, recovered from the well,
(m) the trade name and supplier of each ingredient, and
(n) any other prescribed information; (renseignement sur le fluide de fracturation hydraulique)
"hydraulic fracturing treatment" means the treatment of a well by the application of hydraulic fracturing fluid under pressure in order to create or propagate fractures in a geological formation to enhance production of petroleum; (traitement de fracturation hydraulique)
"non-exclusive survey" means geophysical work that is conducted to acquire data for the purpose of sale to the public; (étude non exclusive)
"petroleum lands" means petroleum lands as defined in section 1 of the Petroleum Resources Act; (terres pétrolifères et gazifères)
"significant discovery" means a significant discovery as defined in section 1 of the Petroleum Resources Act; (découverte importante)
"Territorial reserve lands" means Territorial reserve lands as defined in section 1 of the Petroleum Resources Act; (réserves territoriales)
"well site seabed survey" means a survey pertaining to the nature of the surface or subsurface or the seabed or its subsoil of any petroleum lands in the area of the proposed drilling site in respect of a well, and to the conditions of those lands that may affect the safety or efficiency of drilling operations; (levé marin)
"well termination date" means the date on which a well or test hole has been abandoned, completed or suspended in accordance with any applicable regulations respecting the drilling for petroleum made under this Act. (date d’abandon du forage)
(2) Subject to subsection (9), the Minister and the Regulator shall make available to the public any information disclosed to the Minister or the Regulator, as the case may be, pursuant to a requirement of this Act or the regulations, unless that information contains financial, commercial, scientific or technical information and
(a) the information has been consistently treated as confidential information by the person providing the information;
(b) the person’s interest in confidentiality outweighs the public interest in its disclosure; and
(c) the information is not publicly available.
(3) At any hearing or inquiry conducted under this Act or the regulations, the Regulator or the Committee, as the case may be, may take any measures and make any order that it considers necessary to ensure the confidentiality of any information likely to be disclosed at the hearing or inquiry, if the Regulator or the Committee is satisfied that
(a) disclosure of the information could reasonably be expected to result in a material loss or gain to a person directly affected by the hearing or inquiry, or to prejudice the person’s competitive position, and the potential harm resulting from the disclosure outweighs the public interest in making the disclosure; or
(b) the information is financial, commercial, scientific or technical information that is confidential information supplied to the Regulator or the Committee and
(i) the information has been consistently treated as confidential information by a person directly affected by the hearing or inquiry,
(ii) the person’s interest in confidentiality outweighs the public interest in its disclosure, and
(iii) the information is not publicly available.
(4) At any hearing or inquiry conducted under this Act or the regulations, or in respect of any order, the Regulator may take any measures and make any order that it considers necessary to ensure the confidentiality of any information likely to be disclosed at the hearing or inquiry or that is contained in the order, if the Regulator is satisfied that
(a) there is a real and substantial risk that disclosure of the information will impair the security of pipelines, buildings, installations, vessels, vehicles, aircraft or systems, including computer or communication systems, or methods employed to protect any of those things or systems; and
(b) the risk identified in paragraph (a) outweighs the public interest in its disclosure.
(5) Subject to this section, information that the Minister, the Regulator or the Committee determines is confidential under subsection (2), (3) or (4) shall not knowingly be disclosed without the consent in writing of the person who provided the information, except for the purposes of the administration or enforcement of this Act or the regulations, or for the purposes of legal proceedings respecting the administration or enforcement of this Act or the regulations.
(6) No person shall be required to produce or give evidence relating to any information that the Minister, the Regulator or the Committee determines is confidential under subsection (2), (3) or (4) in connection with any legal proceedings, other than proceedings respecting the administration or enforcement of this Act or the regulations.
(7) Information that the Minister, the Regulator or the Committee determines is confidential under subsection (2), (3) or (4) may be disclosed to the Government of Canada, the government of a province or territory or any organization representing any Indigenous people of Canada, if such disclosure is made in accordance with an agreement between the Government of the Northwest Territories and that government or organization respecting resource management and revenue sharing in relation to activities respecting the exploration for or the production of petroleum carried out on any petroleum lands.
(8) The recipient of information disclosed in accordance with an agreement referred to in subsection (7) shall not disclose that information except as provided in this section.
(9) The Minister and the Regulator shall make the following information available to the public in accordance with this subsection:
(a) information in respect of an exploratory well, if the information is obtained as a direct result of drilling the well and two years have passed since the well termination date;
(b) information in respect of a delineation well, if the information is obtained as a direct result of drilling the well and the later of the following time periods has passed:
(i) two years since the well termination date of the relevant exploratory well,
(ii) 90 days since the well termination date of the delineation well;
(c) information in respect of a development well, if the information is obtained as a direct result of drilling the well and the later of the following time periods has passed:
(i) two years since the well termination date of the relevant exploratory well,
(ii) 60 days since the well termination date of the development well;
(d) information in respect of geological work or geophysical work performed on or respecting any petroleum lands,
(i) in the case of a well site seabed survey where the well has been drilled, after the expiration of the period referred to in paragraph (a) or the later period referred to in subparagraph (b)(i) or (ii) or (c)(i) or (ii), according to whether paragraph (a), (b) or (c) is applicable in respect of that well,
(ii) in the case of a non-exclusive survey, 15 years after completion of the geophysical work, or
(iii) in any other case, five years after completion of the work;
(e) information in respect of any engineering research or feasibility study or experimental project, including geotechnical work, carried out on or respecting any petroleum lands,
(i) where it relates to a well and the well has been drilled, after the expiration of the period referred to in paragraph (a) or the later period referred to in subparagraph (b)(i) or (ii) or (c)(i) or (ii), according to whether paragraph (a), (b) or (c) is applicable in respect of that well, or
(ii) in any other case, five years after completion of the research, study or project or after the reversion of the lands to Territorial reserve lands, whichever occurs first;
(f) information in respect of any contingency plan formulated in respect of emergencies arising as a result of any work or activity authorized under this Act, on receiving the information;
(g) information in respect of diving work, weather observations or the status of operational activities or of the development of or production from a pool or field, on receiving the information;
(h) information in respect of accidents, incidents or petroleum spills, to the extent necessary to permit a person or body to produce and to distribute or publish a report for the administration of this Act in respect of the accident, incident or spill, on receiving the information;
(i) information in respect of an environmental study,
(i) where it relates to a well and the well has been drilled, after 90 days, or
(ii) in any other case, two years after completion of the study;
(j) information in respect of hydraulic fracturing fluid information, 30 days after the well termination date.
(10) The Regulator may disclose any information obtained under this Act or the regulations to the Government of the Northwest Territories, the Government of Canada, the government of a province, territory or foreign government, or to the representatives of any of their agencies, for the purposes of Northwest Territories, federal, provincial, territorial or foreign law, as the case may be, that deals primarily with a petroleum-related work or activity, including the exploration for and the management, administration and exploitation of petroleum resources, if
(a) the government or agency undertakes to keep the information confidential and undertakes not to disclose it without the Regulator’s written consent;
(b) the information is disclosed in accordance with any conditions agreed to by the Regulator and the government or agency; and
(c) in the case of disclosure to a foreign government or agency, the Minister consents in writing.
(11) The Regulator may disclose to the Minister information that the Regulator has disclosed or intends to disclose under subsection (10), but the Minister must not further disclose that information unless the Regulator consents in writing to that disclosure or the Minister is required by an Act of the Northwest Territories to disclose that information.
(12) Where there is a conflict or inconsistency between this section and any provision of the Access to Information and Protection of Privacy Act, this section prevails to the extent of the conflict or inconsistency.
(13) Information of the type that is described in subsection (9), that was received by the Minister or the Regulator before this subsection came into force and that is required to be made available to the public under subsection (9), shall be made available to the public by the Minister or the Regulator, as the case may be, after the expiry of the time period set out in subsection (9), unless the information has already been made available to the public by the Minister or the Regulator. SNWT 2019,c.24,s.7.
Repealed, SNWT 2019,c.24,s.7.
Conditional orders, etc.
24.(1) Without limiting the generality of any provision of this Act that authorizes the Regulator to impose terms and conditions in respect of any operating licence or authorization issued under section 10 or any of its orders, the Regulator may direct in any operating licence, authorization or order that it or any portion or provision of it shall come into force at a future time or on the happening of any contingency, event or condition specified in the operating licence, authorization or order or on the performance to the satisfaction of the Regulator of any conditions or requirements that the Regulator may impose in the operating licence, authorization or order, and the Regulator may direct that the whole or any portion of the operating licence, authorization or order be in force for a limited time or until the happening of a specified event.
(2) The Regulator may, instead of making an order final in the first instance, make an interim order, and may reserve its decision pending further proceedings in connection with any matter.
Documents
Documents
25.(1) A holder of an authorization to construct or operate a pipeline issued under paragraph 10(1)(b) shall keep, in a form and manner determined by the Regulator, any documents, including any records or books of account, that the Regulator requires or that contain information that the Regulator determines is necessary for the administration of this Act or the regulations.
(2) The holder shall produce those documents to the Regulator, or make them available to it or its designated representative, for inspection or copying at a time and under conditions set by the Regulator.
EXTENDED FORMATION FLOW TESTS
Title
26.(1) Subject to subsection (2), title to oil and gas produced during an extended formation flow test vests in the person who conducts the test in accordance with an authorization under section 10, regardless of whether the person has a production licence issued under the Petroleum Resources Act.
(2) Title to oil and gas referred to in subsection (1) is conditional on compliance with
(a) the terms of the authorization, including every approval and requirement subject to which the authorization was issued; and
(b) any applicable regulation, including the payment of royalties or other payment in place of royalties.
(3) This section applies only in respect of an extended formation flow test that provides significant information for determining the best recovery system for a reservoir or for determining the limits of a reservoir or the productivity of a well producing oil or gas from a reservoir and that does not adversely affect the ultimate recovery from a reservoir.
OIL AND GAS COMMITTEE
Constitution
Oil and Gas Committee
27.(1) The Commissioner in Executive Council may establish a committee to be known as the Oil and Gas Committee, consisting of five members, not more than three of whom may be employees of the public service.
(2) The Committee shall be under the direction of the Minister.
(3) The members of the Committee shall be appointed by the Commissioner in Executive Council to hold office for a term of three years, and one member shall be designated as chairperson for the term fixed by the Commissioner in Executive Council.
(4) A retiring chairperson or retiring member may be reappointed to the Committee in the same or another capacity.
Qualification of members
28.(1) The Commissioner in Executive Council shall appoint as members of the Committee at least two persons who appear to the Commissioner in Executive Council to have specialized, expert or technical knowledge of oil and gas.
(2) Persons employed in a division, branch or bureau of the public service that is designated by the Minister as the division, branch or bureau charged with the administration and management of oil and gas resources for the Government of the Northwest Territories are not eligible to be members of the Committee, but the Minister may designate one person from that division, branch or bureau to act as secretary to the Committee.
(3) The Minister shall provide the Committee with the officers, clerks and employees that may be necessary for the proper conduct of the affairs of the Committee, and may provide the Committee with professional or technical assistance for temporary periods or for specific work as the Committee may request, but no assistance from outside the public service may be provided, except with the approval of the Financial Management Board.
(4) The members of the Committee who are not employees of the public service are entitled to be paid remuneration at the rates determined by the Financial Management Board.
(5) The members of the Committee are entitled to be paid reasonable travel and living expenses, in accordance with the rates determined by the Financial Management Board, while absent from their ordinary place of residence in the course of their duties.
Interest in oil and gas properties
29.No member of the Committee may have a pecuniary interest of any description, directly or indirectly, in any property in oil or gas to which this Act applies or own shares in any company engaged in any phase of the oil or gas industry in Canada in an amount in excess of five per cent of the issued shares thereof, and no member who owns any shares of any company engaged in any phase of the oil or gas industry in Canada may vote when a question affecting that company is before the Committee.
Quorum
30.(1) A majority of the members, including one member who is not an employee of the public service, constitutes a quorum of the Committee.
(2) The Committee may make general rules regulating its practice and procedure and the places and times of its sittings.
Jurisdiction and Powers
Jurisdiction
31.(1) In holding an inquiry or hearing an appeal under this Act, the Committee has full jurisdiction to inquire into, hear and determine the matter of the inquiry or appeal and to make any order or give any direction that under this Act the Committee is authorized to make or give or with respect to any matter, act or thing that by this Act may be prohibited or approved by the Committee or required by the Committee to be done.
(2) For the purpose of any inquiry, hearing or appeal or the making of any order, the Committee has the powers, rights and privileges that are vested in the Supreme Court for the trial of civil actions in respect of
(a) the attendance, swearing or affirming and examination of witnesses;
(b) the production and inspection of documents and other items;
(c) the entry on and inspection of property;
(d) the enforcement of its orders; and
(e) any other matters necessary or proper for the due exercise of its jurisdiction under this Act.
(3) The finding or determination of the Committee on any question of fact within its jurisdiction is binding and conclusive.
Deputing member to hold inquiry
32.(1) The Committee may authorize any member to inquire into any matter before the Committee and direct him or her to report the evidence and findings, if any, to the Committee, and when the report is made to the Committee, it may be adopted as a finding of the Committee or otherwise dealt with as the Committee considers advisable.
(2) A member referred to in subsection (1) has all the powers of the Committee for the purpose of taking evidence or acquiring information for the purposes of making a report.
Reference by Minister
33.The Minister may at any time refer to the Committee for consideration and the preparation of a report or recommendation any question, matter or thing arising under this Act or relating to the conservation, production, storage, processing or transportation of oil or gas.
Enforcement
Enforcement of Committee orders
34.(1) An order of the Committee may be made an order of the Supreme Court by filing a certified copy of it with the Clerk of the Supreme Court, and on filing, that order is enforceable in the same manner as an order of the Court.
(2) If an order of the Committee which has been made an order of the Supreme Court is set aside or replaced by a subsequent order of the Committee, or of the Commissioner in Executive Council under section 103, the order of the Court is cancelled and the subsequent order of the Committee may be made an order of the Court in accordance with this section.
PART 1
TRAFFIC, TOLLS AND TARIFFS
Interpretation
Definitions
35.In this Part,
"holder" means a holder of an authorization to construct or operate a pipeline issued under paragraph 10(1)(b); (titulaire)
"tariff" means a schedule of tolls, terms and conditions, classifications, practices or rules and regulations applicable to the provision of a service by a holder and includes rules respecting the calculation of tolls; (tarif)
"toll" includes any rate, charge or allowance charged or made
(a) for the shipment, transportation, transmission, care, handling or delivery of oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas that is transmitted through a pipeline, or for storage or demurrage or the like,
(b) for the provision of a pipeline when the pipeline is available and ready to provide for the transmission of oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas, and
(c) in respect of the purchase and sale of gas that is the property of a holder and that is transmitted by the holder through its pipeline, from which is subtracted the cost to the holder of the gas at the point where it enters the pipeline. (droit)
Powers of Regulator
Jurisdiction over tariffs
36.The Regulator may make orders with respect to all matters relating to traffic, tolls or tariffs.
Filing of Tariff
Tolls
37.(1) A holder shall not charge any tolls except tolls that are
(a) specified in a tariff that has been filed with the Regulator and is in effect; or
(b) approved by an order of the Regulator.
(2) If gas transmitted by a holder through its pipeline is the property of the holder, the holder shall file with the Regulator true copies of all the contracts it makes for the sale of the gas at the time they are made, and any amendments to those contracts made from time to time, and the true copies constitute, for the purposes of this Part, a tariff under subsection (1).
Commence- ment of tariff
38.If a holder files a tariff with the Regulator and the holder proposes to charge a toll referred to in paragraph (b) of the definition "toll" in section 35, the Regulator may establish the day on which the tariff is to come into effect and the holder shall not begin charging the toll before that day.
Just and Reasonable Tolls
Tolls to be just and reasonable
39.All tolls must be just and reasonable and shall always, under substantially similar circumstances and conditions with respect to all traffic of the same description carried over the same route, be charged equally to all persons at the same rate.
Regulator determination
40.The Regulator may determine, as questions of fact, whether
(a) traffic is or has been carried out under substantially similar circumstances and conditions referred to in section 39;
(b) a holder has complied with that section; and
(c) there has been unjust discrimination as set out in section 44.
Interim tolls
41.If the Regulator has made an interim order authorizing a holder to charge tolls until a specified time or the happening of a specified event, the Regulator may, in any subsequent order, direct the holder
(a) to refund, in a manner satisfactory to the Regulator, any part of the tolls charged by the holder under the interim order that is in excess of the tolls determined by the Regulator to be just and reasonable, together with interest on the amount so refunded; or
(b) to recover in its tolls, in a manner satisfactory to the Regulator, the amount by which the tolls determined by the Regulator to be just and reasonable exceed the tolls charged by the holder under the interim order, together with interest on the amount so recovered.
Disallowance of Tariff
Disallowance of tariff
42.The Regulator
(a) may disallow any tariff or any portion of a tariff that it considers to be contrary to this Act or an order of the Regulator; and
(b) on disallowance, may require a holder, within a time fixed by the Regulator, to substitute a tariff satisfactory to the Regulator, or may establish a tariff in place of the disallowed tariff or portion.
Suspension of tariff
43.The Regulator may suspend any tariff or any portion of any tariff before or after the tariff goes into effect.
Discrimination
No unjust discrimination
44.A holder shall not make any unjust discrimination in tolls, service or facilities against any person or locality.
Burden of proof
45.If it is shown that a holder makes any discrimination in tolls, service or facilities against any person or locality, the burden of proving that the discrimination is not unjust lies on the holder.
No rebates, etc.
46.(1) No holder or shipper, or an officer, employee, agent or mandatary of a holder or shipper, shall
(a) offer, grant, give, solicit, accept or receive a rebate, concession or discrimination by which a person obtains transmission of oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas by a holder at a rate less than that named in the tariffs then in force; or
(b) knowingly be party or privy to a false billing, false classification, false report or other device resulting in a rate being charged that is less than that named in the tariffs then in force.
(2) No prosecution for an offence under this section may be instituted without the consent of the Regulator.
Contracts Limiting Liabilities
Contracts limiting liability
47.(1) Except as provided in this section, no contract, condition or notice made or given by a holder impairing, restricting or limiting its liability in respect of the transmission of oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas relieves the holder from its liability, unless that class of contract, condition or notice is included as a term or condition of its tariffs as filed or has been first authorized or approved by order of the Regulator.
(2) The Regulator may determine the extent to which the liability of a holder may be impaired, restricted or limited as provided in this section.
(3) The Regulator may establish the terms and conditions under which oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas may be transmitted by a holder.
Transmission of Oil or Gas
Duty of holder of an operating licence or authorization under subsection 10(1)
48.(1) Subject to any exemptions or conditions that the Regulator may establish, a holder operating a pipeline for the transmission of oil shall, according to its powers, without delay and with due care and diligence, receive, transport and deliver all oil and any other substance, including water, incidental to the drilling for or production of oil offered for transmission by means of its pipeline.
(2) The Regulator may order, on any terms and conditions that it may specify in the order, a holder operating a pipeline for the transmission of gas to receive, transport and deliver, according to its powers, gas and any other substance, including water, incidental to the drilling for or production of gas offered for transmission by means of its pipeline.
(3) If the Regulator finds that no undue burden will be placed on the holder and if it considers it necessary or desirable in the public interest, the Regulator may require a holder operating a pipeline for the transmission of oil or gas to provide adequate and suitable facilities for
(a) the receipt, transmission and delivery of the oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas offered for transmission by means of its pipeline;
(b) the storage of the oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas; and
(c) the junction of its pipeline with other facilities for the transmission of the oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas.
Transmission and Sale of Gas
Extension of services of gas pipeline companies
49.(1) If the Regulator finds that no undue burden will be placed on the holder and if it considers it necessary or desirable in the public interest, the Regulator may direct a holder operating a pipeline for the transmission of gas
(a) to extend or improve its transmission facilities to provide facilities for the junction of its pipeline with any facilities of, and sell gas to, any person or municipality engaged or legally authorized to engage in the local distribution of gas to the public; and
(b) for those purposes, to construct branch lines to communities immediately adjacent to its pipeline.
(2) Notwithstanding subsection (1), the Regulator shall not compel a holder to sell gas to additional customers if doing so would impair its ability to render adequate service to its existing customers.
Holder’s powers
50.A holder may, for the purposes of its undertaking and subject to this Act, transmit oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas by pipeline and determine the time and manner in which it shall be transmitted and the tolls to be charged for the transmission.
Regulations
Regulations
51.The Commissioner in Executive Council may make regulations for the purposes of this Part designating as oil or gas any substance resulting from the processing or refining of hydrocarbons or coal if that substance
(a) is asphalt or a lubricant; or
(b) is a suitable source of energy by itself or when it is combined or used in association with something else.
PART 2
REGULATION OF OPERATIONS
Regulations
Regulations
52.(1) The Commissioner in Executive Council may, for the purposes of safety and the protection of the environment as well as for the production and conservation of oil and gas resources, make regulations
(a) defining "oil" and "gas", for the purposes of Parts 2 and 3, "installation" and "equipment" for the purposes of sections 15 and 16, and "serious" for the purposes of subsection 65(2);
(b) concerning the exploration and drilling for, and the production, processing and transportation of, oil or gas in any area to which this Act applies and works and activities related to that exploration, drilling, production, processing and transportation;
(c) authorizing the Regulator, or any person, to make the orders specified in the regulations and to exercise the powers and perform the duties necessary for
(i) the management and control of oil or gas production,
(ii) the removal of oil or gas from the areas to which this Act applies, and
(iii) the design, construction, operation or abandonment of pipeline within the areas to which this Act applies;
(d) concerning arbitrations for the purposes of subsection 11(2), including the costs of or incurred in relation to the arbitrations;
(e) concerning the approvals to be granted as conditions of authorizations issued under paragraph 14(1)(b);
(f) concerning certificates for the purposes of section 16;
(g) prohibiting the introduction into the environment of substances, classes of substances and forms of energy in prescribed circumstances;
(h) authorizing the discharge, emission or escape of oil or gas for the purposes of subsection 61(1), in the quantities, at the locations, under the conditions and by the persons specified in the regulations; and
(i) prescribing anything that is required to be prescribed for the purposes of this Act.
(2) Unless otherwise provided in this Act, regulations made under subsection (1) may incorporate by reference the standards or specifications of any government, person or organization, either as they read at a fixed time or as amended from time to time.
Publication of proposed regulations
53.(1) Subject to subsection (2), a copy of each regulation that the Commissioner in Executive Council proposes to make under this Act shall be published in the Northwest Territories Gazette and a reasonable opportunity shall be given to any interested person to make representations to the Minister with respect to the proposed regulation.
(2) No proposed regulation need be published more than once under subsection (1), regardless of whether it is altered or amended after that publication as a result of representations made by interested persons.
Equivalent standards and exemptions
54.(1) Subject to subsection (2), the Chief Safety Officer and Chief Conservation Officer may
(a) authorize the use of equipment, methods, measures or standards in place of any required by regulation, if those Officers are satisfied that the use of that other equipment and those other methods, measures or standards would provide a level of safety, protection of the environment and conservation equivalent to that provided by compliance with the regulations; or
(b) grant an exemption from any regulatory requirement in respect of equipment, methods, measures or standards, if those Officers are satisfied with the level of safety, protection of the environment and conservation that will be achieved without compliance with that requirement.
(2) The Chief Safety Officer alone may exercise the powers referred to in paragraph (1)(a) or (b) if the regulatory requirement referred to in that paragraph does not relate to protection of the environment or conservation, and the Chief Conservation Officer alone may exercise those powers if that regulatory requirement does not relate to safety.
(3) No person contravenes the regulations if that person acts in compliance with an authorization or exemption under subsection (1) or (2).
Production Orders
Production orders
55.(1) The Chief Conservation Officer may order the commencement, continuation or increase of production of oil or gas at the rates and in the quantities specified if the Chief Conservation Officer, on reasonable grounds, is of the opinion that
(a) with respect to an interest in any area to which this Act applies, the capability exists to commence, continue or increase production of oil or gas; and
(b) a production order would stop waste.
(2) The Chief Conservation Officer may order a decrease or the cessation or suspension of production of oil or gas for any period specified in the order if the Chief Conservation Officer, on reasonable grounds, is of the opinion that an order under this section would stop waste.
(3) Subsections 57(2) to (4) and section 59 apply, with such modifications as the circumstances require, to an order under subsection (1) or (2) as if it were an order under subsection 57(1).
(4) A person subject to an order under subsection (1) or (2) shall, on request, give the Chief Conservation Officer or a person designated by the Chief Conservation Officer access to his or her premises, files and records for all reasonable purposes related to the order.
Waste
Waste prohibited
56.(1) No person shall commit waste.
(2) A person who commits waste as defined in paragraph (4)(f) or (g) is not guilty of an offence under this Act, unless the person has been ordered under section 60 to take measures to prevent the waste and has failed to comply.
(3) No prosecution for an offence under this section may be instituted without the consent of the Regulator.
(4) In this Act, "waste", in addition to its ordinary meaning, means waste as understood in the oil and gas industry and in particular, but without limiting the generality of the foregoing, includes
(a) the inefficient or excessive use or dissipation of reservoir energy;
(b) the locating, spacing or drilling of a well within a field or pool or within part of a field or pool or the operating of any well that, having regard to sound engineering and economic principles, results or tends to result in a reduction in the quantity of oil or gas ultimately recoverable from a pool;
(c) the drilling, equipping, completing, operating or producing of any well in a manner that causes or is likely to cause the unnecessary or excessive loss or destruction of oil or gas after removal from the reservoir;
(d) the inefficient storage of oil or gas above ground or underground;
(e) the production of oil or gas in excess of available storage, transportation or marketing facilities;
(f) allowing or facilitating the escape or flaring of gas that could be economically recovered and processed or economically injected into an underground reservoir; or
(g) the failure to use suitable artificial, secondary or supplementary recovery methods in a pool when it appears that those methods would result in increasing the quantity of oil or gas, or both, ultimately recoverable under sound engineering and economic principles.
Prevention of waste
57.(1) Subject to subsection (2), the Chief Conservation Officer may order that all operations giving rise to waste cease until he or she is satisfied that the waste has stopped if the Chief Conservation Officer, on reasonable grounds, is of the opinion that waste, other than waste as defined in paragraph 56(4)(f) or (g), is being committed.
(2) Before making any order under subsection (1), the Chief Conservation Officer shall hold an investigation at which all interested persons shall be given an opportunity to be heard.
(3) Notwithstanding subsection (2), the Chief Conservation Officer may, without an investigation, make an order under this section requiring all operations to be shut down if the Chief Conservation Officer is of the opinion that it is necessary to do so to prevent damage to persons or property or to protect the environment, but as soon as possible after making an order and in any event within 15 days after doing so, the Chief Conservation Officer shall hold an investigation referred to in subsection (2).
(4) At the conclusion of the investigation under subsection (3), the Chief Conservation Officer may set aside, vary or confirm the order or make a new order.
Taking over management
58.(1) For the purpose of giving effect to an order made under section 57, the Chief Conservation Officer may authorize and direct any person necessary to enter the place where the operations giving rise to the waste are being carried out and take over the management and control of those operations and any associated works.
(2) A person authorized under subsection (1) to take over the management and control of operations shall manage and control the operations and do all things necessary to stop the waste, and the cost of doing so shall be borne by the person who holds the permit or the lease and until paid constitutes a debt recoverable by action in any court of competent jurisdiction as a debt due to the Government of the Northwest Territories.
Appeal to the Regulator
59.(1) A person aggrieved by an order of the Chief Conservation Officer made under section 55 or 57 may appeal to the Regulator.
(2) On reviewing the order under appeal, the Regulator shall give all interested persons an opportunity to be heard.
(3) After considering the appeal, the Regulator may
(a) set aside, confirm or vary the order;
(b) order any works to be undertaken that the Regulator considers necessary to prevent waste, the escape of oil or gas or any other contravention of this Act or the regulations; or
(c) make any other order that the Regulator considers appropriate.
Application for show cause order in respect of waste
60.(1) If the Chief Conservation Officer, on reasonable grounds, is of the opinion that waste as defined in paragraph 56(4)(f) or (g) is occurring in the recovery of oil or gas from a pool, the Officer may apply to the Regulator for an order requiring the operators within the pool to show cause why the Regulator should not make a direction in respect of the waste.
(2) On receiving an application, the Regulator shall 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 Regulator should not make a direction in respect of the waste.
(3) The Regulator shall, on the day specified in the order, hold a hearing at which the Chief Conservation Officer, the operators within the pool and any interested person shall be given an opportunity to be heard.
(4) If, after the hearing, the Regulator is of the opinion that waste is occurring in the recovery of oil or gas from a pool, the Regulator may make an order
(a) directing the introduction of a scheme for the collection, processing, disposition or reinjection of any gas produced from the pool; or
(b) directing 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 Regulator may, subject to subsections (6) and (7), order 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.
(6) If a scheme is approved by the Regulator and in operation by a date fixed in the order, the Regulator may not order that the pool or any part of the pool specified in the order be shut in.
(7) If, in the opinion of the Regulator, a scheme or other action described in paragraph (4)(a) or (b) is in the course of preparation, the Regulator may, notwithstanding subsections (4) and (5), make an order permitting the continued operation of a pool or any part of a pool after the date fixed by an order made under this section, and the continued operation is subject to any conditions imposed by the Regulator.
Spills and Debris
Definition: "spill"
61.(1) In sections 62 to 65, "spill" means a discharge, emission or escape of petroleum, other than one that is authorized under the regulations, an Act of the Northwest Territories or an Act of Canada or that constitutes a discharge from a vessel to which Part 8 or 9 of the Canada Shipping Act, 2001 applies or a ship to which Part 6 of the Marine Liability Act (Canada) applies.
(2) In sections 63 and 65, "debris" means any installation or structure that was put in place in the course of any work or activity required to be authorized under paragraph 10(1)(b) and that has been abandoned without such authorization as may be required by or under this Act, or any material that has broken away or been jettisoned or displaced in the course of any such work or activity.
(3) In section 63, "actual loss or damage" includes loss of income, including future income, and, with respect to any Indigenous peoples of Canada, includes loss of hunting, fishing and gathering opportunities.
(4) The Commissioner and the Government of the Northwest Territories incur no liability whatever to any person arising out of the authorization, in accordance with regulations made under paragraph 52(1)(h), of any discharge, emission or escape of oil or gas. SNWT 2019,c.24,s.8.
Spills prohibited
62.(1) No person shall cause or permit a spill on or from any area to which this Act applies.
(2) If a spill occurs in any area to which this Act applies, a person who at the time of the spill is carrying on any work or activity related to the exploration for or development or production of oil or gas in the area of the spill shall, in the prescribed manner, report the spill to the Chief Conservation Officer.
(3) Every person required to report a spill under subsection (2) shall, as soon as possible, take all reasonable measures consistent with safety and the protection of the environment
(a) to prevent any further spill;
(b) to repair or remedy any condition resulting from the spill; and
(c) to reduce or mitigate any danger to life, health, property or the environment that results or may reasonably be expected to result from the spill.
(4) The Chief Conservation Officer may take any action or direct that it be taken by any person as may be necessary if he or she, on reasonable grounds, is satisfied that
(a) a spill has occurred in any area to which this Act applies;
(b) immediate action is necessary in order to effect any reasonable measures referred to in subsection (3); and
(c) appropriate action is not being taken or will not be taken under subsection (3).
(5) For the purposes of subsection (4), the Chief Conservation Officer may authorize and direct any person as may be necessary to enter the place where the spill has occurred and take over the management and control of any work or activity at that place.
(6) A person authorized and directed to take over the management and control of any work or activity under subsection (5) shall manage and control that work or activity and shall take all reasonable measures in relation to the spill that are referred to in subsection (3).
(7) Any costs incurred under subsection (6) shall be borne by the person who obtained an authorization under paragraph 10(1)(b) in respect of the work or activity from which the spill emanated, and until paid, they constitute a debt recoverable by action in any court of competent jurisdiction as a debt due to the Government of the Northwest Territories.
(8) If a person, other than a person referred to in subsection (7), takes action under subsection (3) or (4), the person may recover from the Government of the Northwest Territories the costs and expenses reasonably incurred by that person in taking the action.
(9) A person aggrieved by any order, action or measure taken or authorized or directed to be taken under subsections (4) to (6) may appeal to the Regulator.
(10) On reviewing the order, action or measure, the Regulator shall give all interested persons an opportunity to be heard.
(11) After considering the appeal, the Regulator may
(a) set aside, confirm or vary the order, action or measure that is the subject of the appeal;
(b) order any works to be undertaken that the Regulator considers necessary to prevent waste, the escape of oil or gas or any other contravention of this Act or the regulations; or
(c) make any other order that the Regulator considers appropriate.
(12) No person required, directed or authorized to act under this section or section 59 is personally liable, either civilly or criminally, in respect of any act or omission in the course of complying with this section, unless it is shown that the person did not act reasonably in the circumstances.
Recovery of loss, damage, costs or expenses
63.(1) If any discharge, emission or escape of oil or gas that is authorized by regulation, or any spill, occurs in any area to which this Act applies,
(a) the person who is required to obtain an authorization under paragraph 10(1)(b) in respect of the work or activity from which the spill or authorized discharge, emission or escape of oil or gas emanated is liable, without proof of fault or negligence, up to any prescribed limit of liability, for
(i) all actual loss or damage incurred by any person as a result of the spill or the authorized discharge, emission or escape of oil or gas, and
(ii) the costs and expenses reasonably incurred by the Government of the Northwest Territories or any other person in taking any action or measure in relation to the spill or the authorized discharge, emission or escape of oil or gas; and
(b) all persons to whose fault or negligence the spill or the authorized discharge, emission or escape of oil or gas is attributable or who are by law responsible for others to whose fault or negligence the spill or the authorized discharge, emission or escape of oil or gas is attributable are jointly and severally liable, to the extent determined according to the degree of the fault or negligence proved against them, for all actual loss or damage incurred by any person as a result of the spill or the authorized discharge, emission or escape of oil or gas.
(2) If any person incurs actual loss or damage as a result of debris or the Government of the Northwest Territories reasonably incurs any costs or expenses in taking any remedial action in relation to debris,
(a) the person who is required to obtain an authorization under paragraph 10(1)(b) in respect of the work or activity from which the debris originated is liable, without proof of fault or negligence, up to any prescribed limit of liability, for all actual loss or damage and all costs or expenses; and
(b) all persons to whose fault or negligence the debris is attributable or who are by law responsible for others to whose fault or negligence the debris is attributable are jointly and severally liable, to the extent determined according to the degree of the fault or negligence proved against them, for all actual loss or damage and all costs or expenses.
(3) In the case where subsection (1) or (2) applies, no person is liable for more than the greater of the prescribed limit referred to in paragraph (1)(a) or (2)(a), as the case may be, and the amount for which the person would be liable under any other law for the same occurrence.
(4) All claims under this section may be sued for and recovered in any court of competent jurisdiction in Canada and shall rank firstly in favour of persons incurring actual loss or damage, without preference, and secondly to meet any costs and expenses described in subsection (1) or (2).
(5) 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 not inconsistent with this section.
(6) Proceedings in respect of claims under this section may be instituted within three years after the day when the loss, damage, costs or expenses occurred, but in no case more than six years after the day the spill or the discharge, emission or escape of oil or gas occurred or, in the case of debris, after the day the installation or structure in question was abandoned or the material in question broke away or was jettisoned or displaced.
Financial responsibility
64.(1) An applicant for an authorization under paragraph 10(1)(b) in respect of any work or activity in any area in which this Act applies shall provide proof of financial responsibility in the form of a letter of credit, guarantee or indemnity bond or in any other form satisfactory to the Regulator, in an amount satisfactory to it.
(2) The holder of an authorization under paragraph 10(1)(b) shall ensure that the proof of financial responsibility remains in force
(a) for the duration of the work or activity in respect of which the authorization is issued; and
(b) for a period of one year after the time at which the Regulator notifies the holder that all works in respect of which the authorization was granted have been successfully abandoned or decommissioned in accordance with this Act and the regulations.
(3) The Regulator may require that money in an amount not exceeding the amount prescribed for any case or class of cases, or determined by the Regulator in the absence of regulations, be paid out of the funds available under the letter of credit, guarantee or indemnity bond or other form of financial responsibility provided under subsection (1), in respect of any claim for which proceedings may be instituted under section 63, whether or not those proceedings have been instituted.
(4) A payment required under subsection (3) must be made in the manner, subject to any conditions and procedures and to or for the benefit of any persons or classes of persons as may be prescribed for any case or class of cases, or as may be required by the Regulator in the absence of regulations.
(5) There shall be deducted from any award made in accordance with a claim sued for under section 63 any amount received by the claimant under this section in respect of the loss, damage, costs or expenses claimed. SNWT 2019,c.24,s.9.
Inquiries
Inquiries
65.(1) If a spill or debris or an accident or incident related to any activity to which this Act applies occurs or is found in any area to which this Act applies and results in death or injury or danger to public safety or the environment, the Minister may direct an inquiry to be made, and may authorize any person that the Minister considers qualified to conduct the inquiry.
(2) If a spill or debris or an accident or incident related to any activity to which this Act applies occurs or is found in any area to which this Act applies and is serious, as defined by regulation, the Minister shall direct that an inquiry be made and shall ensure that the person authorized to conduct the inquiry is not employed in a part of the public service for which the Minister is responsible.
(3) For the purposes of an inquiry under this section, a person authorized to conduct the inquiry has all the powers of a Board under the Public Inquiries Act and shall conduct the inquiry in accordance with that Act.
(4) As soon as possible after the conclusion of the inquiry, the person authorized to conduct the inquiry shall submit a report to the Minister, together with the evidence and other material that was before the inquiry.
(5) The Minister shall, within 30 days after receipt of the report, make it publicly available in the manner and on the terms he or she considers appropriate.
PART 3
PRODUCTION ARRANGEMENTS
Interpretation
Definitions
66.In this Part,
"pooled spacing unit" means the area that is subject to a pooling agreement or a pooling order; (unité d’espacement mise en commun)
"pooled tract" means the portion of a pooled spacing unit defined as a tract in a pooling agreement or a pooling order; (parcelle mise en commun)
"pooling agreement" means an agreement to pool the interests of owners in a spacing unit and to provide for the operation or the drilling and operation of a well thereon; (accord de mise en commun)
"pooling order" means an order made under section 68 or as altered under to section 72; arrêté de mise en commun)
"royalty interest" means any interest in, or the right to receive a portion of, any oil or gas produced and saved from a field or pool or part of a field or pool or the proceeds from the sale thereof, but does not include a working interest or the interest of any person whose sole interest is as a purchaser of oil or gas from the pool or part thereof; (droit à redevance)
"royalty owner" means a person, including the Commissioner, who owns a royalty interest; (titulaire de redevance) "spacing unit" means the area allocated to a well for the purpose of drilling for or producing oil or gas; (unité d’espacement)
"tract participation" means the share of production from a unitized zone that is allocated to a unit tract under a unit agreement or unitization order or the share of production from a pooled spacing unit that is allocated to a pooled tract under a pooling agreement or pooling order; (fraction parcellaire)
"unit agreement" means an agreement to unitize the interests of owners in a pool or a part of a pool exceeding in area a spacing unit, and includes this type of agreement as varied by a unitization order; (accord d’union)
"unit area" means the area that is subject to a unit agreement; (secteur unitaire)
"unit operating agreement" means an agreement providing for the management and operation of a unit area and a unitized zone that is entered into by working interest owners who are parties to a unit agreement with respect to that unit area and unitized zone, and includes a unit operating agreement as varied by a unitization order; accord d’exploitation unitaire)
"unit operation" means those operations conducted in accordance with a unit agreement or a unitization order; (exploitation unitaire)
"unit operator" means a person designated as a unit operator under a unit operating agreement; (exploitant unitaire)
"unit tract" means the portion of a unit area that is defined as a tract in a unit agreement; (parcelle unitaire)
"unitization order" means an order made under section 78 or issued under section 96; (arrêté d’union)
"unitized zone" means a geological formation that is within a unit area and subject to a unit agreement; (terrain)
"working interest" means a right, in whole or in part, to produce and dispose of oil or gas from a pool or part of a pool, whether that right is held as an incident of ownership of an estate in fee simple in the oil or gas or under a lease, agreement or other instrument, if the right is chargeable with and the holder is obligated to pay or bear, either in cash or out of production, all or a portion of the costs in connection with the drilling for, recovery and disposal of oil or gas from the pool or part thereof; (intérêt économique direct)
"working interest owner" means a person who owns a working interest. (détenteur)
Pooling
Voluntary pooling
67.(1) If one or more working interest owners have leases or separately owned working interests within a spacing unit, the working interest owners and the royalty owners who own all of the interests in the spacing unit may, subject to subsection (2), pool their working interests and royalty interests in the spacing unit for the purpose of drilling for or producing, or both drilling for and producing, oil and gas.
(2) An agreement to pool working interests and royalty interests is only effective if a copy of the pooling agreement, and any amendment to it, is filed with the Chief Conservation Officer.
(3) The Minister may, on behalf of the Commissioner, enter into a pooling agreement on any terms and conditions that the Minister considers advisable and, notwithstanding anything in this Act, the Northwest Territories Lands Act, the Petroleum Resources Act or any regulations made under those Acts, the pooling agreement is binding on the Commissioner.
Application for pooling order
68.(1) In the absence of a pooling agreement, a working interest owner in a spacing unit may apply to the Minister for a pooling order directing the working interest owners and royalty owners within the spacing unit to pool their interests in the spacing unit for the purpose of drilling for or producing oil or gas or both from the spacing unit.
(2) On receiving an application, the Minister shall refer it to the Committee for the purpose of holding a hearing to determine whether a pooling order should be made, and at that hearing all interested parties shall be given an opportunity to be heard.
(3) Before the hearing, the working interest owner making the application shall provide a proposed form of pooling agreement to the Committee and any other interested party the Committee may direct, and the working interest owners who have interests in the spacing unit to which the proposed pooling agreement relates shall provide the Committee with any information the Committee considers necessary.
(4) After the hearing, the Committee may order that all working interest owners and royalty owners who have an interest in the spacing unit be deemed to have entered into a pooling agreement as set out in the pooling order.
Contents of pooling order
69.Every pooling order must provide
(a) for the drilling and operation of a well on the spacing unit or, where a well that is capable of or that can be made capable of production has been drilled on the spacing unit before the making of the pooling order, for the future production and operation of that well;
(b) for the appointment of a working interest owner as operator to be responsible for the drilling, operation or abandoning of the well whether drilled before or after the making of the pooling order;
(c) for the allocation to each pooled tract of its share of the production of the oil or gas from the pooled spacing unit that is not required, consumed or lost in the operation of the well,
(i) which allocation must be on a prorated area basis, or
(ii) in the case where it is shown to the satisfaction of the Committee that a prorated area basis is unfair, the Committee may make an allocation on another, more equitable basis;
(d) in the case where no production of oil or gas is obtained, for the payment by the applicant of all costs incurred in the drilling and abandoning of the well;
(e) in the case where production has been obtained, for the payment of the actual costs of drilling the well, whether drilled before or after the making of the pooling order, and for the payment of the actual costs of the completion, operation and abandoning of the well; and
(f) for the sale by the operator of any oil or gas allocated under paragraph (c) to a working interest owner if that working interest owner fails to take in kind and dispose of the production, and for the deduction out of the proceeds by the operator of his or her expenses reasonably incurred in connection with the sale.
Providing for penalty
70.(1) A pooling order may provide for a penalty for a working interest owner who does not, within the time specified in the order, pay the portion of the costs attributable to him or her as his or her share of the cost of drilling and completion of the well, but the penalty may not exceed an amount equal to one-half of that working interest owner’s share of those costs.
(2) If a working interest owner does not, within the time specified in the pooling order, pay his or her share of the costs of the drilling, completing, operating and abandoning of the well, his or her portion of the costs and the penalty, if any, are recoverable only out of his or her share of production from the spacing unit and not in any other manner.
Effect of pooling order
71.On the making of a pooling order, all working interest owners and royalty owners having interests in the pooled spacing unit are deemed to have entered into a pooling agreement as set out in the pooling order, and the order is deemed to be a valid contract between the parties having interests in the pooled spacing unit, and all its terms and provisions, as set out therein or as altered under section 72, are binding on and enforceable against the parties, including the Commissioner and the Government of the Northwest Territories.
Application to alter pooling
72.(1) The Committee
(a) shall hear an application to vary, amend or revoke a pooling order in the case of an application made by the owners of over 25 per cent of the working interests in the pooled spacing unit, calculated on a prorated area basis; and
(b) may, in its discretion, hear an application to vary, amend or revoke a pooling order in the case of an application made by a working interest owner or royalty owner.
(2) After a hearing held under subsection (1), the Committee may, subject to subsection (3),
(a) vary or amend the pooling order to correct any deficiency or to meet changing conditions;
(b) vary, amend or revoke any provision that the Committee considers unfair or inequitable; or
(c) revoke the pooling order.
(3) In varying or amending a pooling order, no change may be made that will alter the ratios of tract participations between the pooled tracts as originally set out in the pooling order.
Prohibition
73.(1) No person shall produce any oil or gas within a spacing unit in which there are two or more leases or two or more separately owned working interests unless a pooling agreement has been entered into in accordance with section 67 or in accordance with a pooling order made under section 68.
(2) Subsection (1) does not prohibit the production of oil or gas for testing in any quantities approved by the Chief Conservation Officer.
Unitization
Unit operation
74.(1) Any one or more working interest owners in a pool or part of a pool exceeding in area a spacing unit, together with the royalty owners, may enter into a unit agreement and operate their interests in accordance with the terms of the unit agreement and any amendments if a copy of the agreement and any amendment has been filed with the Chief Conservation Officer.
(2) The Minister may enter into a unit agreement binding on the Commissioner, on any terms and conditions that the Minister considers advisable, and any of the regulations under this Act, the Northwest Territories Lands Act or the Petroleum Resources Act that may be in conflict with the terms and conditions of the unit agreement stand varied or suspended to the extent necessary to give full effect to the terms and conditions of the unit agreement.
(3) If a unit agreement provides that a unit operator is the agent of the parties with respect to their powers and responsibilities under this Act, the performance or non-performance of those powers and responsibilities by the unit operator shall be attributed to the parties.
Requiring unitization to prevent waste
75.(1) Notwithstanding anything in this Act, the Chief Conservation Officer may, if he or she is of the opinion that the unit operation of a pool or part of a pool would prevent waste, apply to the Committee for an order requiring the working interest owners in the pool or part thereof to enter into a unit agreement and a unit operating agreement in respect of the pool or part thereof, as the case may be.
(2) On receiving an application, the Committee shall hold a hearing at which all interested persons shall be given an opportunity to be heard.
(3) After the hearing, the Committee may, if it is of the opinion that the unit operation of a pool or part of a pool would prevent waste, order the working interest owners in the pool or part thereof to enter into a unit agreement and a unit operating agreement in respect of the pool or part thereof.
(4) If the working interest owners and royalty owners fail, within the time specified in the order referred to in subsection (3), in any case being not less than six months after the date of the making of the order, to enter into a unit agreement and a unit operating agreement approved by the Committee, all drilling and producing operations within the pool or part thereof in respect of which the order was made shall cease until a unit agreement and a unit operating agreement are approved by the Committee and filed with the Chief Conservation Officer.
(5) Notwithstanding subsection (4), the Committee may permit the continued operation of the pool or part thereof after the time specified in the order referred to in subsection (3) if the Committee is of the opinion that a unit agreement and unit operating agreement are in the course of being entered into, and the continuation of operations shall be subject to any conditions specified by the Committee.
Compulsory Unitization
Who may apply for unitization order
76.(1) One or more working interest owners who are parties to a unit agreement and a unit operating agreement and own in the aggregate 65 per cent or more of the working interests in a unit area may apply to the Minister for a unitization order with respect to the agreements.
(2) On receiving an application, the Minister shall refer it to the Committee for the purpose of holding a hearing in accordance with section 78.
(3) An application under subsection (1) may be made by the unit operator or proposed unit operator on behalf of the working interest owners referred to in that subsection.
Contents of unitization application
77.(1) An application for a unitization order must contain
(a) a plan showing the unit area that the applicant desires to be made subject to the order;
(b) one copy each of the unit agreement and the unit operating agreement;
(c) a statement of the nature of the operations to be carried out; and
(d) a statement showing
(i) with respect to each proposed unit tract, the names and addresses of the working interest owners and royalty owners in that tract, and
(ii) the tracts that are entitled to be qualified as unit tracts under the provisions of the unit agreement.
(2) The unit agreement referred to in subsection (1) must include
(a) a description of the unit area and the unit tracts included in the agreement;
(b) an allocation to each unit tract of a share of the production from the unitized zone not required, consumed or lost in the unit operation;
(c) a provision specifying the manner in which and the circumstances under which the unit operation shall terminate; and
(d) a provision specifying that the share of the production from a unit area that has been allocated to a unit tract is deemed to have been produced from that unit tract.
(3) The unit operating agreement referred to in subsection (1) must include provisions for
(a) the contribution or transfer to the unit, and any adjustment among the working interest owners, of the investment in wells and equipment within the unit area;
(b) the charging of the costs and expenses of the unit operation to the working interest owners;
(c) the supervision of the unit operation by the working interest owners through an operating committee composed of their duly authorized representatives and for the appointment of a unit operator to be responsible, under the direction and supervision of the operating committee, for the carrying out of the unit operation;
(d) the determination of the percentage value of the vote of each working interest owner; and
(e) the determination of the method of voting on any motion before the operating committee and the percentage value of the vote required to carry the motion.
Hearing
78.(1) Once an application made under section 76 is referred by the Minister, the Committee shall hold a hearing at which all interested persons shall be given an opportunity to be heard.
(2) If the Committee finds that
(a) at the date of the commencement of a hearing referred to in subsection (1)
(i) the unit agreement and the unit operating agreement have been executed by one or more working interest owners who own in the aggregate 65 per cent or more of the total working interests in the unit area, and
(ii) the unit agreement has been executed by one or more royalty owners who own in the aggregate 65 per cent or more of the total royalty interests in the unit area, and
(b) the unitization order applied for would accomplish the more efficient or more economical production of oil or gas or both from the unitized zone,
the Committee may order
(c) that the unit agreement be a valid contract enuring to the benefit of all the royalty owners and working interest owners in the unit area and binding on and enforceable against all the owners, and
(d) that the unit operating agreement be a valid contract enuring to the benefit of all the working interest owners in the unit area and binding on and enforceable against all the owners,
and, subject to section 79, the unit agreement and the unit operating agreement shall have the effect given to them by the order of the Committee.
(3) In a unitization order, the Committee may vary the unit agreement or the unit operating agreement by adding or deleting a provision or amending any provision.
Effective date of unitization order
79.(1) Subject to subsection (2), a unitization order becomes effective on the day that the Committee fixes in the order, but in any case that day may not be less than 30 days after the day on which the order is made.
(2) If a unit agreement or unit operating agreement is varied by the Committee in a unitization order, the effective date fixed in the order must be a date not less than 30 days following the day the order is made, but the order becomes ineffective if, before the effective date, the applicant files with the Committee a notice withdrawing the application on behalf of the working interest owners or there are filed with the Committee statements in writing objecting to the order and signed
(a) in the case of the unit agreement, by
(i) one or more working interest owners who own in the aggregate more than 25 per cent of the total working interests in the area and were included within the group owning 65 per cent or more of the total working interests as described in subparagraph 78(2)(a)(i), and
(ii) one or more royalty owners who own in the aggregate more than 25 per cent of the total royalty interests in the unit area and were included within the group owning 65 per cent or more of the total royalty interests a s d e s c r i b e d i n subparagraph 78(2)(a)(ii); or
(b) in the case of the unit operating agreement, by one or more working interest owners who own in the aggregate more than 25 per cent of the total working interests in the unit area and were included within the group owning 65 per cent or more of the total working interests as described in subparagraph 78(2)(a)(i).
(3) The Committee shall without delay revoke a unitization order that becomes ineffective under subsection (2).
Technical defects in unitization order
80.A unitization order is not invalid by reason only of the absence of notice or of any irregularities in giving notice to any owner in respect of the application for the order or any proceedings leading to the making of the order.
Amending unitization order
81.(1) A unitization order may be amended on the application of a working interest owner, but before amending a unitization order the Committee shall hold a hearing at which all interested parties shall be given an opportunity to be heard.
(2) If the Committee finds that, at the date of the commencement of a hearing of an application for the amendment of a unitization order, one or more working interest owners who own, in the aggregate, 65 per cent or more of the total working interests and one or more royalty interest owners who own, in the aggregate, 65 per cent or more of the total royalty interests in the unit area have consented to the proposed amendment, the Committee may amend the unitization order in accordance with the amendment proposed.
Protection of tract participation ratios
82.No amendment may be made under section 81 that will alter the ratios between the tract participations of those tracts that were qualified for inclusion in the unit area before the commencement of the hearing, and, for the purposes of this section, the tract participations shall be those indicated in the unit agreement when it became subject to a unitization order.
Production prohibited except in accord with unitization order
83.No person shall, after the date on which a unitization order comes into effect and while the order remains in force, carry on any operations within the unit area for the purpose of drilling for or producing oil or gas from the unitized zone, except in accordance with the provisions of the unit agreement and the unit operating agreement.
How percentages of interests to be determined
84.(1) The percentages of interests referred to in subsections 76(1), 78(2), 79(2) and 81(2) shall be determined
(a) with respect to royalty interests, on a prorated area basis; and
(b) with respect to working interests, on the basis of tract participations shown in the unit agreement.
(2) The owner of a working interest in a unit tract that is held as an incident of the ownership of a fee simple estate in oil or gas is, for the purposes of subsection (1), deemed to be a royalty owner in respect of the tract on a prorated area basis under paragraph (1)(a).
General
Pooled spacing unit included in unit area
85.(1) A pooled spacing unit that has been pooled in accordance with a pooling order and on which a well has been drilled may be included in a unit area as a single unit tract and the Committee may make any amendments to the pooling order as it considers necessary to remove any conflict between the provisions of the pooling order and the provisions of the unit agreement, or the unit operating agreement or the unitization order, if any.
(2) If a pooled spacing unit is included in a unit area under subsection (1), the provisions of the unit agreement, the unit operating agreement and the unitization order, if any, prevail over the provisions of the pooling order in the event of a conflict.
(3) Notwithstanding subsection (2),
(a) the share of the unit production that is allocated to the pooled spacing unit shall in turn be allocated to the separately owned tracts in the pooled spacing unit on the same basis and in the same proportion as production actually obtained from the pooled spacing unit would have been shared under the pooling order;
(b) the costs and expenses of the unit operation that are allocated to the pooled spacing unit shall be shared and borne by the owners of the working interests on the same basis and in the same proportion as would apply under the pooling order; and
(c) the credits allocated under a unit operating agreement to a pooled spacing unit for adjustment of investment for wells and equipment shall be shared by the owners of the working interests in the same proportion as would apply to the sharing of production under the pooling order.
STRADDLING RESOURCES
INUVIALUIT SETTLEMENT REGION
Definitions
Definitions
86.In this section and in sections 87 to 99,
"Agreement" means the Agreement for Coordination and Cooperation in the Management and Administration of Petroleum Resources in the Inuvialuit Settlement Region that was made on June 25, 2013, as amended from time to time; (accord)
"notification area" means
(a) that part of the offshore that is situated within 20 kilometres of the onshore, and
(b) that part of the onshore that is situated within 20 kilometres of the offshore; (zone de notification)
"offshore" means that part of the Inuvialuit Settlement Region that is not situated in the onshore; (région extracôtière)
"straddling resource" means a pool or field that is wholly or partly in the Inuvialuit Settlement Region, other than in Inuvialuit Lands as defined in article 2.1 of the Agreement, and that straddles the offshore and the onshore. (ressource chevauchante)
Determination of Straddling Resources
Regulator’s obligations
87.If the data obtained from conducting a survey or drilling an exploratory well in the notification area provides sufficient information for the Regulator to determine that a pool or field exists, the Regulator shall
(a) determine whether the pool or a field is a straddling resource;
(b) without delay notify the Minister and the Government of Canada of its determination and the reasons for it; and
(c) on request, provide the Minister or the Government of Canada with the information that is in the Regulator’s possession and pertinent to that determination.
Information sharing
88.The Minister and the Government of Canada shall, on request, provide the other with the information that is in their possession and is relevant to the proper and efficient exploration for and the management, administration and exploitation of the straddling resource.
Exploitation of Straddling Resources
Single pool or field
89.(1) A straddling resource may be exploited as a single pool or field, as the case may be.
(2) An exploration or drilling program related to a straddling resource shall, to the extent practicable, be managed as a single exploration or drilling program.
Notice of intention to start production
90.(1) If an interest owner, as defined in section 1 of the Petroleum Resources Act, advises the Minister or the Regulator, including by way of an application under subsection 39(1) of the Petroleum Resources Act or paragraph 10(1)(b) of this Act, as the case may be, that it intends to start production of the straddling resource, the Minister shall without delay notify the Government of Canada of the interest owner’s intention.
(2) If, after production commences, the Regulator determines that a pool or field is a straddling resource
(a) the Minister or the Government of Canada, depending on the jurisdiction in which the production commenced, shall without delay notify the other of that determination; and
(b) either of them may give notice under section 91.
Required exploitation as a single unit
91.The Minister or the Government of Canada may, by notice, require of the other that a pool or field that is a straddling resource be exploited as a single pool or field, as the case may be.
Unit agreement
92.(1) The royalty owners and the working interest owners in respect of a straddling resource may enter into a unit agreement and, if it is approved under subsection 94(1), they shall operate their interests in accordance with that agreement or any amendment to it.
(2) The working interest owners in respect of a straddling resource may enter into a unit operating agreement and, if it is approved under subsection 94(1), they shall operate their interests in accordance with that agreement or any amendment to it.
(3) Unless the Minister and the Government of Canada agree to an earlier termination, a unit agreement or a unit operating agreement remains in force until the later of
(a) the day on which commercial production from the straddling resources to which the agreement applies ends; and
(b) the day on which there are no outstanding obligations in respect of the decommissioning or abandonment of the production system of a straddling resource to which the agreement applies.
Order to enter into agreements
93.If a straddling resource is required to be exploited as a single pool or field under section 91 and the working interest owners have not entered into a unit agreement and a unit operating agreement, the Minister shall order the working interest owners in the portion of the pool or field that is in the Minister's jurisdiction to do so.
Approval of agreements
94.(1) A unit agreement and a unit operating agreement are subject to the approval of the Minister and the Government of Canada, and may only be approved if all royalty owners and working interest owners referred to in subsection 92(1) or all working interest owners referred to in subsection 92(2), as the case may be, are parties to the agreement.
(2) An authorization in relation to the exploitation of a straddling resource may not be issued under paragraph 10(1)(b) and a development plan in relation to that exploitation may not be approved under subsection 14(4) or (7), if the unit agreement and the unit operating agreement are not approved under subsection (1).
Request for independent expert
95.If the royalty owners and the working interest owners in respect of a straddling resource do not enter into a unit agreement, or in the case of the working interest owners, a unit operating agreement, within 90 days after being ordered to do so under section 93, the Minister or the Government of Canada may notify the other of their intention to refer the matter to an independent expert for a decision in accordance with section 99.
Unitization order
96.(1) The Minister shall issue a unitization order in accordance with the independent expert’s final decision.
(2) The unit agreement and unit operating agreement have the effect given to them by the Minister’s order.
(3) A unitization order is effective only if the Government of Canada issues an equivalent order.
(4) The issuance of a unitization order by the Minister and of an equivalent order by the Government of Canada is deemed to be their joint approval of the unit agreement and the unit operating agreement.
(5) Subject to subsection (3), a unitization order is effective on the date set out in the order, which date may not be less than 30 days after the day on which the order is issued.
Redetermi- nation
97.The Minister, the Government of Canada or a working interest owner may, in respect of future production, request a redetermination of
(a) the apportionment of production from the straddling resource; or
(b) one or more of the elements set out in the unit agreement or the unit operating agreement.
No agreement: royalty owners and working interest owners
98.If the royalty owners and the working interest owners in respect of a straddling resource do not enter into an agreement in respect of the redetermination under section 97 within 90 days after the day on which the request is made, the Minister or the Government of Canada may notify the other of their intention to refer the matter to an independent expert for a decision in accordance with section 99.
Independent expert
99.(1) Within 90 days after being notified of an intention to refer a matter to an independent expert under subsection 14(8) or section 95 or 98, the Minister and the Government of Canada shall appoint the independent expert.
(2) The expert shall be impartial and independent and shall have knowledge or experience relevant to the matter.
(3) If the Minister and Government of Canada do not appoint the expert in accordance with subsection (1), each shall, within 30 days after the day on which the time to appoint an expert expires, submit to the other the names of up to two persons with the qualifications set out in subsection (2), and they shall within 30 days after the day of submission select the independent expert from those persons by drawing lots and appoint that person as the independent expert.
(4) If the Minister or the Government of Canada does not submit or select names or appoint an expert as required by subsection (3), each is deemed to make the same submission, selection or appointment, as the case may be, as the other and is bound by the decision of the independent expert.
(5) Within 90 days after being seized of the matter or within any other period agreed to by the Minister and the Government of Canada, the independent expert shall make a preliminary decision and the Minister and the Government shall be provided with the preliminary decision and the reasons for it, including any supporting documentation.
(6) The Minister and the Government of Canada may, within 60 days after receiving the preliminary decision, request the independent expert to clarify or reconsider that decision or make additional submissions to the independent expert.
(7) If the Minister or the Government of Canada does so request or make such submissions, the Minister or the Government of Canada shall provide the other with a copy of the request and submissions, and the other may, within 15 days after receiving that copy, make further submissions and, on doing so, shall provide the other with a copy of them.
(8) The independent expert shall, within 120 days after making a preliminary decision, make a final decision and provide it and the reasons for it, including any supporting documentation, to the Minister and the Government of Canada.
(9) An independent expert’s final decision is final and binding on the Minister and the Government of Canada and is not subject to challenge on appeal or judicial review in any court, except on the ground that the independent expert erred in law or exceeded the independent expert’s jurisdiction.
(10) If a person acts as an independent expert,
(a) the person is not to be called to give evidence, and is not compellable as a witness, in legal proceedings related to the matter; and
(b) the person’s records related to the matter are not admissible as evidence in any legal proceedings related to the matter.
Regulations: Inuvialuit lands
100.The Commissioner in Executive Council may, if the Inuvialuit Regional Corporation agrees in writing under subsection 3.3(b) of the Agreement to be bound by a provision of Article 5 of the Agreement, make regulations amending the definitions "Agreement", "Inuvialuit Settlement Region" and "straddling resource" in sections 1 and 86 accordingly.
PART 4
APPEALS AND ENFORCEMENT
Appeals
Orders and decisions are final
101.(1) Except as provided in this Act, every decision or order of the Committee is final and conclusive.
(2) Any minute or other record of the Committee or any document issued by the Committee, in the form of a decision or order, is for the purposes of this section deemed to be a decision or order of the Committee.
Stated case for Supreme Court
102.(1) The Committee may of its own motion, or at the request of the Minister, state a case, in writing, for the opinion of the Supreme Court on any question that in the opinion of the Committee is a question of law or of the jurisdiction of the Committee.
(2) The Supreme Court shall hear and determine the case stated and remit the matter to the Committee with the opinion of the Court.
Commissioner in Executive Council may review orders of Committee
103.The Commissioner in Executive Council may at any time, in its discretion, either on petition of any interested person or of its own motion, vary or set aside any decision or order of the Committee made under this Act, whether the order is made between parties or otherwise, and any order that the Commissioner in Executive Council makes with respect to it becomes a decision or order of the Committee and, subject to section 104, is binding on the Committee and on all parties.
Appeal to Supreme Court
104.(1) An appeal lies from a decision or order of the Committee to the Supreme Court on a question of law, on leave being obtained from the Supreme Court, in accordance with the practice of the Court, on application made within one month after the making of the decision or order sought to be appealed from or within a further time as the Court may allow.
(2) An order of the Committee in respect of which leave to appeal is granted shall be stayed until the matter of the appeal is determined.
Safety and Conservation Officers
Officers
105.A Regulator may, for the area over which it has jurisdiction, appoint safety officers and conservation officers for the purposes of the administration and enforcement of this Act and the regulations.
Powers of officers
106.For the purpose of ensuring compliance with this Act or the regulations, a safety officer, the Chief Safety Officer, a conservation officer or the Chief Conservation Officer may at any reasonable time
(a) enter any place, including lands, buildings, installations, vessels, vehicles and aircraft used for any work or activity in respect of which this Act applies, for the purpose of carrying out inspections, examinations, tests or inquiries or of directing that the person in charge of the place carry them out, and the officer may be accompanied by any other person that the officer believes is necessary to help carry out the inspection, examination, test or inquiry;
(b) take photographs or make drawings of any place or thing referred to in this section;
(c) order that any place or thing referred to in this section not be interfered with for a specified period;
(d) require the production, for inspection or copying, of any books, records, documents, licences or permits required by this Act or the regulations;
(e) take samples or particulars and carry out, or have carried out, any reasonable tests or examinations; and
(f) require the person in charge of the place, or any other person in the place who has knowledge relevant to an inspection, examination, test or inquiry, to provide information, either orally or in writing, in the form requested.
Certificate to be produced
107.The Regulator shall provide every safety officer and conservation officer and the Chief Safety Officer and the Chief Conservation Officer with a certificate of appointment or designation and, on entering any place under this Act, the officer shall, on request, produce the certificate to the person in charge of the place.
Assistance to officers
108.The owner, the person in charge of any place referred to in section 106 and every person found in that place shall give a safety officer, the Chief Safety Officer, a conservation officer or the Chief Conservation Officer, as the case may be, all reasonable assistance to enable the officer to exercise the powers or perform the duties under this Act or the regulations.
Obstruction of officers and making of false statements
109.No person shall obstruct or hinder or make a false or misleading statement, either orally or in writing, to a safety officer, the Chief Safety Officer, a conservation officer or the Chief Conservation Officer who is engaged in exercising powers or performing duties under this Act or the regulations.
Power of safety officer when dangerous operation detected
110.(1) A safety officer or the Chief Safety Officer who, on reasonable grounds, is of the opinion that continuation of an operation in relation to the exploration or drilling for or the production, conservation, processing or transportation of oil or gas is likely to result in serious bodily injury, may order that the operation cease or be continued only in accordance with the terms of the order.
(2) The safety officer or Chief Safety Officer who makes an order under subsection (1) shall post at or near the scene of the operation a notice of the order in a form approved by the Regulator.
(3) An order made by a safety officer under subsection (1) expires 72 hours after it is made, unless it is confirmed before that time by order of the Chief Safety Officer.
(4) A safety officer who makes an order under subsection (1) shall immediately notify the Chief Safety Officer, and the Chief Safety Officer may confirm, modify or revoke the order.
(5) A person carrying out an operation to which an order under subsection (1) makes reference, or any person having a pecuniary interest in that operation, may, by notice in writing, request the Chief Safety Officer to refer the order to the Regulator for a review of the need for the order and, on receiving the notice, the Chief Safety Officer shall refer the order accordingly.
(6) The Regulator shall give all interested persons an opportunity to be heard.
(7) After reviewing the need for the order, the Regulator may confirm or revoke the order.
(8) The burden of establishing that the order is not needed is on the person who requested that the order be referred to the Regulator.
(9) No person shall continue an operation in respect of which an order has been made under this section, except in accordance with the terms of the order, or until the order has been revoked by the Regulator under subsection (7).
Priority
111.An order made by a safety officer or the Chief Safety Officer prevails over an order made by a conservation officer or the Chief Conservation Officer to the extent of any inconsistency between the orders.
Installation Manager
Installation manager
112.(1) Every holder of an authorization under paragraph 10(1)(b) in respect of a work or activity for which a prescribed installation is to be used shall put in command of the installation a manager who meets any prescribed qualifications, and the installation manager is responsible for the safety of the installation and the persons at it.
(2) Subject to this Act and any other enactment, an installation manager has the power to do any thing required to ensure the safety of the installation and the persons at it and, more particularly, may
(a) give orders to any person who is at the installation;
(b) order that any person who is at the installation be restrained or removed; and
(c) obtain information or documents.
(3) In a prescribed emergency situation, an installation manager’s powers are extended so that they also apply to each operator of a vessel, vehicle or aircraft that is at the installation or that is leaving or approaching it.
Offences and Punishment
Offences with respect to
113.Every person is guilty of an offence who
(a) knowingly makes any false entry or statement in any report, record or document required by this Act or the regulations or by any order made under this Act or the regulations; or
(b) knowingly destroys, mutilates or falsifies any report or other document required by this Act or the regulations or by any order made under this Act or the regulations.
Offences
114.(1) Every person is guilty of an offence who
(a) contravenes this Act or the regulations;
(b) produces any oil or gas from a pool or field under the terms of a unit agreement within the meaning of Part 3, or any amended unit agreement, before the unit agreement or amended unit agreement is filed with the Chief Conservation Officer;
(c) undertakes or carries on a work or activity without an authorization under paragraph 10(1)(b) or without complying with the approvals or requirements of the authorization; or
(d) fails to comply with a direction, requirement or order of a safety officer, the Chief Safety Officer, a conservation officer, the Chief Conservation Officer or an installation manager or with an order of the Committee or the Regulator made under this Act.
(2) Every person who is guilty of an offence under subsection (1) is liable on summary conviction, to a fine not exceeding $1,000,000 or to imprisonment for a term not exceeding two years, or to both.
Order to comply
115.If a person is convicted of an offence under this Act, the court may, in addition to any other punishment it may impose, order that person to comply with this Act or the regulation or order for the contravention of which that person has been convicted.
Continuing offences
116.If an offence under this Act is committed on or continued for more than one day, the offence is considered to be a separate offence for each day on which the offence is committed or continued.
Limitation period
117.A prosecution for an offence under this Act may not be instituted more than two years after the day when the offence first came to the attention of the Chief Conservation Officer, the Chief Safety Officer, a conservation officer, or a safety officer.
Evidence
118.In any prosecution for an offence under this Act, a copy of an order purporting to have been made under this Act or the regulations and purporting to have been signed by the person authorized by this Act or the regulations to make that order is evidence of the matters set out in it.
Action to restrain not prejudiced by prosecution
119.(1) Notwithstanding that a prosecution has been instituted in respect of an offence under this Act, the regulations or any order made under this Act or the regulations, the Government of the Northwest Territories may commence and maintain an action to restrain the committing of any contravention of this Act, the regulations or any order made under this Act or the regulations.
(2) No civil remedy for any act or omission is suspended or affected by reason that the act or omission is an offence under this Act.
Miscellaneous
Government bound
120.This Act binds the Government of the Northwest Territories.
Designating Regulator
121.The Commissioner in Executive Council may, by order, designate the Regulator in respect of that portion of the onshore falling outside the Inuvialuit Settlement Region. SNWT 2015,c.27,s.6(4).
AMENDMENTS TO THIS ACT
Act amended by this section
122.(1) This Act is amended by this section.
(2) Subsection 11(2) is amended by striking out "a decision of an arbitrator made in accordance with the regulations" and substituting "a decision of the Surface Rights Board made in accordance with the Surface Rights Board Act".
(3) The following is added after subsection 11(2):
(3) Subsections (1) and (2) do not apply in respect of designated land as defined in subsection 1(1) of the Surface Rights Board Act or Tłı̨chǫ lands as defined in subsection 1(2) of that Act.
TRANSITIONAL
Matters governed by the Canada Oil and Gas Operations Act
123.(1) This Act applies to all matters respecting the exploration and drilling for and the production, conservation, processing and transportation of oil and gas in the onshore that had been governed by the Canada Oil and Gas Operations Act before the coming into force of this Act.
(2) The rights and duties that had accrued or that were accruing under, and the matters governed by the Canada Oil and Gas Operations Act before the coming into force of this Act continue in effect as rights and duties accrued or accruing under and subject to the provisions of this Act.
(3) An authorization in respect of the exploration and drilling for and the production, conservation, processing and transportation of oil and gas in the onshore that had been issued or made under the Canada Oil and Gas Operations Act before the coming into force of this Act continues in effect as an authorization issued or made in accordance with this Act.
(4) The information requirements that had been imposed under subsection 5(1) or 5.1(2) of the Canada Oil and Gas Operations Act before the coming into force of this Act continue in effect as requirements imposed in accordance with this Act until they are replaced or revoked by the Regulator.
(5) The guidelines and interpretation notes that had been issued under subsection 5.3(1) or (2) of the Canada Oil and Gas Operations Act before the coming into force of this Act continue in effect as guidelines and interpretation notes imposed in accordance with this Act until they are replaced or revoked by, as appropriate, the Regulator or the Minister.
Publication of proposed regulations
124.Subsection 53(1) does not apply to a regulation made by the Commissioner in Executive Council if it is registered under the Statutory Instruments Act before April 1, 2014.
COMMENCEMENT
Coming into force
125.(1) This Act, except section 122, comes into force April 1, 2014.
(2) Section 122 comes into force on the day sections 6 and 29 to 89 of Bill 3, introduced during the Fifth Session of the Seventeenth Legislative Assembly and entitled the Surface Rights Board Act, come into force.