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PART VI - EXPORTS AND IMPORTS

CHAPTER N-7 CONSOLIDATED STATUTES OF CANADA

WARNING NOTE: Users of this office consolidation are reminded that it is prepared for convenience of reference only and that, as such, it has no official sanction.

DIVISION I - OIL AND GAS

Prohibition

116. Except as otherwise authorized by or under the regulations, no person shall export or import any oil or gas except under and in accordance with a licence issued under this Part.

R.S., 1985, c. N-7, s. 116; 1990, c. 7, s. 29.

Issuance of Licences

Issuance of licences

117. (1) Subject to the regulations, the Board may, on such terms and conditions as it may impose, issue licences for the exportation or importation of oil or gas.

Compliance

(2) Every licence is subject to the condition that the provisions of this Act and the regulations in force at the date of issue of the licence and as subsequently enacted, made or amended, as well as every order made under the authority of this Act, will be complied with.

R.S., 1985, c. N-7, s. 117; 1990, c. 7, s. 31.

Criteria

118. On an application for a licence, the Board shall have regard to all considerations that appear to it to be relevant and shall

(a) satisfy itself that the quantity of oil or gas to be exported does not exceed the surplus remaining after due allowance has been made for the reasonably foreseeable requirements for use in Canada having regard to the trends in the discovery of oil or gas in Canada; and

(b) [Repealed, 1990, c. 7, s. 32]

(c) where oil or gas is to be exported and subsequently imported or where oil or gas is to be imported, have regard to the equitable distribution of oil or gas, as the case may be, in Canada.

R.S., 1985, c. N-7, s. 118; 1990, c. 7, s. 32.

Revocation and Suspension

Revocation and suspension of licences

119. (1) Subject to subsection (2) and the regulations, the Board may, by order, with the approval of the Governor in Council, revoke or suspend a licence if

(a) any term or condition of the licence has not been complied with or has been contravened; or

(b) the Board is of the opinion that the public convenience and necessity so require

Notice to licence holder

(2) No order shall be made under subsection (1) unless the Board has, in a notice sent to the holder of the licence, advised the holder of the term or condition of the licence that it is alleged has not been complied with or has been contravened, or of the reasons on which the opinion of the Board referred to in paragraph (1)(b) is based, as the case may be, and the Board has afforded the holder a reasonable opportunity to be heard.

Revocation or suspension on application, etc., of holder

(3) Notwithstanding subsections (1) and (2), the Board may, by order, revoke or suspend a licence on the application or with the consent of the holder thereof.

R.S., 1985, c. N-7, s. 119; 1990, c. 7, s. 33.

Regulations

119.01 (1) The Governor in Council may make regulations for carrying into effect the purposes and provisions of this Division, including regulations respecting

(a) the information to be furnished by applicants for licences and the procedure to be followed in applying for licences and in issuing licences;

(b) the duration of licences, not exceeding twenty-five years, from a date to be fixed in the licence, the approval required in respect of the issue of licences, the quantities that may be exported or imported under licences and any other terms and conditions to which licences may be subject;

(c) units of measurement and measuring instruments or devices to be used in connection with the exportation or importation of oil or gas;

(d) the inspection of any instruments, devices, plant, equipment, books, records or accounts or any other thing used for or in connection with the exportation or importation of oil or gas;

(e) the immediate disposition of oil or gas seized by an officer referred to in section 122; and

(f) the circumstances in which the Board may make orders authorizing the exportation or importation of oil or gas and the terms and conditions that may be included in those orders.

Regulations respecting export prices

(2) The Governor in Council may make regulations

(a) prescribing, in respect of oil or gas the export of which is authorized under this Part, or any quality, kind or class of that oil or gas or type of service in relation thereto, the price at which or the range of prices within which that oil or gas shall be sold; and

(b) exempting oil or gas that is exported to a NAFTA country, as defined in subsection 2(1) of the North American Free Trade Agreement Implementation Act, to Chile or to Costa Rica, or any quality, kind or class of that oil or gas or type of service in relation thereto, from the application of regulations made under paragraph (a);

Idem

(3) Regulations made under subsection (2) may prescribe different prices or ranges of prices in respect of different countries.

1990, c. 7, s. 34; 1993, c. 44, s. 186; 1997, c. 14, s. 82; 2001, c. 28, s. 54.

DIVISION II - ELECTRICITY

Prohibition

119.02 No person shall export any electricity except under and in accordance with a permit issued under section 119.03 or a licence issued under section 119.08.

1990, c. 7, s. 34.

Issuance of Permits

Issuance

119.03 (1) Except in the case of an application designated by order of the Governor in Council under section 119.07, the Board shall, on application to it and without holding a public hearing, issue a permit authorizing the exportation of electricity.

Information

(2) The application must be accompanied by the information that under the regulations is to be furnished in connection with the application.

1990, c. 7, s. 34.

Publication

119.04 (1) The applicant shall publish a notice of the application in the Canada Gazette and such other publications as the Board considers appropriate.

Waiver

(2) The Board may waive the requirement to publish a notice referred to in subsection (1) if the Board considers that there is a critical shortage of electricity outside Canada caused by terrorist activity within the meaning of subsection 83.01(1) of the Criminal Code.

1990, c. 7, s. 34; 2004, c. 15, s. 92.

Further information

119.05 The Board may, within a reasonable time after the publication of the notice, require the applicant to furnish such information, in addition to that required to accompany the application, as the Board considers necessary to determine whether to make a recommendation pursuant to section 119.06.

1990, c. 7, s. 34.

Delay of issuance

119.06 (1) The Board may make a recommendation to the Minister, which it shall make public, that an application for exportation of electricity be designated by order of the Governor in Council under section 119.07, and may delay issuing a permit during such period as is necessary for the purpose of making such an order.

Criteria

(2) In determining whether to make a recommendation, the Board shall seek to avoid the duplication of measures taken in respect of the exportation by the applicant and the government of the province from which the electricity is exported, and shall have regard to all considerations that appear to it to be relevant, including

(a) the effect of the exportation of the electricity on provinces other than that from which the electricity is to be exported;

(b) the impact of the exportation on the environment;

(i) informed those who have declared an interest in buying electricity for consumption in Canada of the quantities and classes of service available for sale, and

(ii) given an opportunity to purchase electricity on terms and conditions as favourable as the terms and conditions specified in the application to those who, within a reasonable time after being so informed, demonstrate an intention to buy electricity for consumption in Canada; and

(d) such considerations as may be specified in the regulations.

1990, c. 7, s. 34.

Orders

Where licence required

119.07 (1) The Governor in Council may make orders

(a) designating an application for exportation of electricity as an application in respect of which section 119.08 applies; and

(b) revoking any permit issued in respect of the exportation

Exception

(2) No order may be made under subsection (1) more than forty-five days after the issuance of a permit in respect of the application.

Effect of order

(3) Where an order is made under subsection (1),

(a) no permit shall be issued in respect of the application; and

(b) any application in respect of the exportation shall be dealt with as an application for a licence.

1990, c. 7, s. 34.

Issuance of Licences

Issuance

119.08 (1) The Board may, subject to section 24 and to the approval of the Governor in Council, issue a licence for the exportation of electricity in relation to which an order made under section 119.07 is in force.

Criteria

(2) In deciding whether to issue a licence, the Board shall have regard to all considerations that appear to it to be relevant.

Revocation of permit

(3) Any permit issued in respect of an application for a permit for the exportation of electricity in relation to which an order made under section 119.07 is in force and that is not revoked by the order is revoked on the Board's deciding not to issue a licence for that exportation.

1990, c. 7, s. 34.

Conditions of Permits and Licences

Terms and conditions

119.09 (1) The Board may, on the issuance of a permit, make the permit subject to such terms and conditions respecting the matters prescribed by the regulations as the Board considers necessary or desirable in the public interest.

Idem

(2) The Board may, on the issuance of a licence, make the licence subject to such terms and conditions as the Board may impose.

1990, c. 7, s. 34.

Compliance

119.091 Every permit and licence is subject to the condition that the provisions of this Act and the regulations in force on the date of the issuance of the permit or licence and as subsequently enacted, made or amended, as well as every order made under the authority of this Act, will be complied with.

1990, c. 7, s. 34.

Duration

119.092 The term of a permit or licence is thirty years or such lesser term as is specified in the permit or licence.

1990, c. 7, s. 34.

Revocation and suspension

119.093 (1) The Board may revoke or suspend a permit or licence issued in respect of the exportation of electricity

(a) on the application or with the consent of the holder of the permit or licence; or

(b) where a holder of the permit or licence has contravened or failed to comply with a term or condition of the permit or licence

Notice

(2) The Board shall not revoke or suspend a permit or licence under paragraph (1)(b) unless the Board has

(a) sent a notice to the holder of the permit or licence specifying the term or condition that is alleged to have been contravened or not complied with; and

(b) given the holder of the permit or licence a reasonable opportunity to be heard.

1990, c. 7, s. 34.

Regulations

119.094 The Governor in Council may make regulations for carrying into effect the purposes and provisions of this Division, including regulations

(a) prescribing matters in respect of which terms and conditions of permits may be imposed;

(b) respecting

(i) the information to be furnished in connection with applications for permits,

(ii) units of measurement and measuring instruments or devices to be used in connection with the exportation of electricity, and

(iii) the inspection of any instruments, devices, plant, equipment, books, records or accounts or any other thing used for or in connection with the exportation of electricity; and

(c) specifying considerations to which the Board shall have regard in deciding whether to recommend to the Minister that an application for a permit for the exportation of electricity be designated by order of the Governor in Council under section 119.07.

1990, c. 7, s. 34.

DIVISION III - IMPLEMENTATION OF CANADA-UNITED STATES FREE TRADE AGREEMENT

Definitions

119.1to 119.7 [Repealed, 1997, c. 14, s. 83]

DIVISION III.1 - IMPLEMENTATION OF NORTH AMERICAN FREE TRADE AGREEMENT

Definitions

120. The definitions in this section apply in this Division.

"CCFTA" has the same meaning as "Agreement" in the Canada-Chile Free Trade Agreement Implementation Act.

"CCRFTA" has the same meaning as "Agreement" in the Canada-Costa Rica Free Trade Agreement Implementation Act.

"energy goods" means any goods for the exportation of which a licence or permit issued under this Part or an order made under the regulations is required.

"NAFTA" has the same meaning as "Agreement" in the North American Free Trade Agreement Implementation Act.

R.S., 1985, c. N-7, s. 120; 1988, c. 65, s. 143; 1990, c. 7, s. 38; 1993, c. 44, s. 188; 1997, c. 14, s. 83; 2001, c. 28, s. 55.

Giving effect to NAFTA and CCFTA

120.1 (1) In exercising its powers and performing its duties, the Board shall give effect to the NAFTA, CCFTA and CCRFTA.

Orders

(2) The Governor in Council may, either on the recommendation of the Minister made at the request of the Board or on the Governor in Council's own motion, make orders of general application respecting the manner in which the Board shall perform the duty imposed on it by subsection (1) or the interpretation to be given to NAFTA, CCFTA or CCRFTA by the Board for the purposes of this Act.

Effect of orders

(3) An order made under subsection (2) is binding on the Board from the time it comes into force and, unless otherwise provided therein, applies in respect of matters pending before the Board at that time.

Request of Board

(4) The Board may, in order to request the making of an order under subsection (2), \ suspend the determination of any matter of which it is seized.

1993, c. 44, s. 188; 1997, c. 14, s. 84; 2001, c. 28, s. 56.

Declaration of Governor in Council

120.2 The Governor in Council may, by order, declare that the maintenance or introduction of a restriction on the exportation to the United States, Chile or Costa Rica of energy goods or of any quality, kind or class of energy goods is justified under Article 605 of NAFTA, Article C-13 of CCFTA or Article III.11 of CCRFTA, as the case may be.

1993, c. 44, s. 188; 1997, c. 14, s. 85; 2001, c. 28, s. 57.

Board may request declaration

120.3 If, in the course of determining an application for a licence or permit, or determining whether to make an order, for the exportation to the United States, Chile or Costa Rica of energy goods or of any quality, kind or class of energy goods, the Board considers that the maintenance or introduction of a restriction on that exportation is in the public interest and that subparagraph (a), (b) or (c) of Article 605 of NAFTA, subparagraph 1(a), (b) or (c) of Article C-13 of CCFTA or subparagraph 1(a), (b) or (c) of Article III.11 of CCRFTA, as the case may be, would apply as a consequence of the restriction, the Board may, in order to request that the Minister recommend to the Governor in Council that an order be made under section 120.2 in respect of the relevant energy goods, suspend the determination until not later than one hundred and twenty days after the request is made.

1993, c. 44, s. 188; 1997, c. 14, s. 85; 2001, c. 28, s. 57.

Exportation to United States or Chile

120.4 (1) The Board may neither refuse to issue a licence or permit or make an order nor revoke, suspend or vary a licence, permit or order for the exportation to the United States, Chile or Costa Rica of energy goods or of any quality, kind or class of energy goods if that refusal, revocation, suspension or variation would constitute the maintenance or introduction of a restriction on that exportation as a consequence of which subparagraph (a), (b) or (c) of Article 605 of NAFTA, subparagraph 1(a), (b) or (c) of Article C-13 of CCFTA or subparagraph 1(a), (b) or (c) of Article III.11 of CCRFTA, as the case may be, would apply.

Effect of orders

(2) Subsection (1) does not apply in respect of the exportation to the United States, Chile or Costa Rica of such energy goods as are, or of such quality, kind or class of energy goods as is, referred to in an order made under section 120.2 during the time that the order is in force.

Revocation, etc. on consent

(3) Notwithstanding subsection (1), the Board may revoke, suspend or vary a licence, permit or order on the application or with the consent of its holder.

1993, c. 44, s. 188; 1997, c. 14, s. 86; 2001, c. 28, s. 58.

Where no declaration made

120.5 The Board may, despite its not being satisfied in accordance with paragraph 118(a), issue a licence for the exportation to the United States, Chile or Costa Rica of such energy goods as were, or of such quality, kind or class of energy goods as was, referred to in a request made under section 120.3 if

(a) the Minister declines to recommend to the Governor in Council that an order be made under section 120.2;

(b) the Governor in Council declines to make the order; or

1993, c. 44, s. 188; 1997, c. 14, s. 87; 2001, c. 28, s. 59.

DIVISION IV - OFFENCES, PUNISHMENT AND ENFORCEMENT

121. (1) Every person who contravenes any of the provisions of this Part or the regulations made under this Part is guilty of an offence and liable

(a) on summary conviction, to a fine not exceeding one hundred thousand dollars or to imprisonment for a term not exceeding one year or to both; or

(b) on conviction on indictment, to a fine not exceeding one million dollars or to imprisonment for a term not exceeding five years or to both

Officers, etc., of corporation

(2) If a corporation commits an offence under this Part, any officer or director, or agent or mandatary, of the corporation who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and is liable on conviction to the punishment provided for the offence whether or not the corporation has been prosecuted or convicted.

Proof of offence

(3) In any prosecution for an offence under this Part, it is sufficient proof of the offence to show that it was committed by an employee, or an agent or a mandatary, of the accused, whether or not the employee, or agent or mandatary, is identified or has been prosecuted for the offence, unless the accused establishes that the offence was committed without the knowledge or consent of the accused and that the accused exercised all due diligence to prevent its commission.

Continuing offence

(4) Where an offence under this Part is committed on more than one day, it shall be deemed to be a separate offence for each day on which the offence is committed or continued.

Limitation

(5) Proceedings by way of summary conviction in respect of an offence under this Part may be instituted at any time within but not later than one year after the time when the subject-matter of the proceedings arose.

R.S., c. N-6, s. 86; 1980-81-82-83, c. 116, s. 28; 2004, c. 25, s. 162.

Powers of certain officers

122. An officer as defined in the Customs Act has, in respect of the exportation or importation of oil or gas, all the powers of an officer under the Customs Act and, except to the extent that they are inconsistent with any regulations made under this Part relating to the immediate disposition of oil or gas seized, the provisions of that Act and any regulations made under that Act respecting search, detention, seizure, forfeiture, condemnation and disposition apply, with such modifications as the circumstances require, to oil or gas tendered for export or import or exported or imported or otherwise dealt with contrary to this Part.

R.S., 1985, c. N-7, s. 122; R.S., 1985, c. 1 (2^nd Supp.), s. 213.

PART VII - INTERPROVINCIAL OIL AND GAS TRADE

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Date Modified:: 2011-10-28

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