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PART VII - INTERPROVINCIAL OIL AND GAS TRADE

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.

Interpretation

Definitions

123. In this Part,

"designated oil or gas" means oil or gas, or both, or any quality or kind thereof, that is the subject of an order made pursuant to subsection 124(1);

"designated province or area" means a province or the offshore area or both, as referred to in an order made pursuant to subsection 124(1);

"movement", in respect of oil or gas, excludes an export thereof;

"offshore area" means Sable Island or any area of land not within a province that belongs to Her Majesty in right of Canada or in respect of which Her Majesty in right of Canada has the right to dispose of or exploit the natural resources and that is situated in submarine areas in the internal waters of Canada, the territorial sea of Canada or the continental shelf of Canada.

R.S., c. N-6, s. 87; 1980-81-82-83, c. 116, s. 29; 1996, c. 31, s. 91.

Control by Board

Direction to Board

124. (1) The Governor in Council may, by order, direct that the Board assume supervision and control of the movement of designated oil or gas out of a designated province or area.

Licence required

(2) Where an order has been made under subsection (1) and while it remains in force, no person shall, except as otherwise authorized by the regulations, move designated oil or gas out of the designated province or area except under the authority of and in accordance with a licence issued under this Part.

1980-81-82-83, c. 116, s. 29.

Issue of Licences

Issue of licences

125. (1) Subject to the regulations, the Board may, on such terms and conditions as it may impose, issue a licence to any person permitting the movement of designated oil or gas out of the designated province or area.

Compliance

(2) Every licence is subject to the conditions that

(a) the provisions of this Act and the regulations in force on the date of issue of the licence and as subsequently enacted, made or amended, as well as every order made under this Act, will be complied with; and

(b) the provisions of the Energy Administration Act and the regulations, if any, made under that Act applicable to the designated oil or gas in respect of which the licence is issued will be complied with.

1980-81-82-83, c. 116, s. 29.

Criteria

126. (1) On an application for a licence, the Board shall have regard to all considerations that appear to it to be relevant, including the equitable distribution of designated oil or gas in Canada.

Revocation and suspension of licences

(2) Section 119 applies in respect of a licence issued under this Part.

R.S., 1985, c. N-7, s. 126; 1990, c. 7, s. 40(E).

Regulations

127. The Governor in Council may make regulations for carrying into effect the purposes and provisions of this Part, 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 from a date to be fixed in the licence, the approval required in respect of the issue of licences, the quantities that may be moved out of the designated province or area under the authority of a licence, and any other terms or conditions to which licences may be subject;

(c) units of measurement and measuring instruments or devices to be used in connection with the movement of designated oil or gas out of the designated province or area; and

(d) the inspection of any instruments, devices, plant, equipment, books, records or accounts or any other thing used for or in connection with the movement of designated oil or gas out of the designated province or area.

R.S., 1985, c. N-7, s. 127; 1990, c. 7, s. 41(E).

Offences, Punishment and Enforcement

Offence and punishment

128. (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

Application of subsections 121(2) to (5)

PART VIII - GENERAL