Bill 1 (Legislature 11, Session 2)

L11 S2 7115

Alberta — Bills

Bill No.1 of 1949 (2nd Session) A ,BILL TO PROVIDE FOR THE PRESERVATION, CONSERVATION AND EFFECTIVE UTILIZATION OF THE GAS RESOURCES OF THE PROVINCE. NOTE. " This Bill enacts 'a new Act to be known as "The Gas Resources Preservation Act". 8ection 3 sets out the intention of the Act which is to ~ffect the preservation and conservation of the oil and gas resources of the Province, and to provide for their effective ,utilization having regard to the present and future needs of the residents of the Province.

Section 4 provides that any person who acquires gas within the Province and proposes to remDve it for use or consumption elsewhere shall make 'application to The Pet roleum and Natural Gas Conservation Board for a permit. 'Sectipn 5 sets out the information which the Board may require in- connection with any application for a permit. 'l'he applicant m1ay be required to give informatiDn about such matters as the location of the fields from which he pro poses to. acquire his gas, the estimated reserves of those fi~lds, the marketing areas to be supplied with gas, the esti mated requirements of the applicant to meet the needs of consumers within the marketing area, the period for which the applicant desires a permit and other similar information used in calculating the probable 'amount of gas which the applicant will require.

Section 6 provides for the fixing 'Of a date fDr a hearing and giving of notice to interested parties.

Section 7 provides that the Board, after the hearing and with the approval ,of the Lieutenant Governor in Council, may grant or refuse a permit on such terms and conditions as maybe prescribed in the permit.

Section 8 outlines some of the terms and conditions which may be prescribed in a permit. The permit may prescribe or designate the pool from which the permittee may acquire gas, the maximum quantities of gas which may be acquired, the maximum rates of withdrawal, conditions under which the gas may be diverted, reduced ,or interrupted, the period for which the permit is granted and a condition that the permittee will supply all communities or consumers within the Province adjacent to its facilities which can be reason ably supplied by the permittee. The

section also provides for an application for a new permit upon the expiration of one already granted.

Section 9 provides for the case where an emergency arises and additional gas is temporarily required to meet the needs of consumers within the Province. In these circumstances, the Board, with the approval of the Lieutenant Governor in Council, may divert the permittee's gas for use and con sumption by consumers within the Province.

Section 10 provides that the Board at any time, either of its own motion or at the request of a permittee, may hold a hearing to reconsider any permit, if circumstances arise, which, in the opinion of the Board, justify the hearing. After due notice and hearing of the permittee and other parties interested, the Board, with approval of ,th~ Lieutenant Gov ernor in Council, may make lany order, which, in the opini.on of the Board and the Lieutenant Governor in Council, is just and reag.on~ble under the circumstances.

Section 11 provides that the Board, 'with the approval of the Lieutenant Governor in Council, after notice to and hear ing of the permittee and other parties interes,ted, m'ay cancel the permit of a permittee who wilfully vi'Olates any term or condition 'Of the permit, or any provision of this Act, or any other Act relating to the conservation of gas and oil.

Section 12 enables the Board to prescribe the method to bB used for the measurement of gas .

Section 13 prohibits the removal .of gas from the Pr.ovince without a permit.

Section 14 provides that any person who receives gas for :shipment and transmission outside of the Province is guilty .of an offence unless the shipper has a subsisting permit under this Act.

Section 15 enables the Lieutenant Governor in Council t'O make regulatioOns to facilitate the efficient administrati.on of the Act.

Section 16 enables the B'Oard to make rules of practice governing its procedure, times of its sittings~ and things of a like nature.

Section 17 vests in the B.oard the powers of a c'Ommissioner appointed pursuant to The Public Inquiries Act. Sections 18 and 19 deal with compelling the attendance of witnesses. If a witness fails t'O attend, the Board may apply to a judge of the Supreme Court foOr a warrant. If a witness refuses to give evidence 'a judge 'Of the Supreme Court, on the application .of the Board, may commit the witness for contempt.

Section 20 enables the B'Oard to direct by whom the costs of any hearing will be paid. ,

Section 21 provides that any permittee who violates any provision of any Act governing the drilling, producing, conservation, gathering, purchasing and acquisition 'Of gas or oil is guilty of an offence and liable to a penalty.

iii

Section 22 provides that any permittee or other person who violates any of the provisions of this Act or the regu lations, or any of the provisions of a permit, or any order of the Board made under this Act, is guilty of an offence and liable to a penalty. KENNETH A. McKENZIE, Acting Legislative Counsel. (This note does not form any part of the Bill but is offered in explanation of its provisions.)

BILL No.1 of 1949 (2nd Session)

An Act to provide for the PreservatiQn, Conservation and Effective Utilization of the Gas Resources of the Province. (Assented to HIS MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of Alberta) enacts as fQllows:

Short Title 1. This Act may be cited as liThe Gas Resources Preserva tion Aci;".

Interpretation 2.

In this Act, unless the context otherwise requires, (a) "Board" means The PetrQleum and Natural Gas Conservation Board constituted under the provisions of The Oil and Gas Resources Conservation Act; (b) "field" means the general area which is underlaid or appears to be underlaid by 'One or more pools, and includes the underground reservoir or reservoirs cQntaining- oil or gas, or both, and the words ·"field" and "pool" have the same meaning when onlv onp undergrQund reservoir is involved, but the word "field" may relate to two or more underground reser voirs or pools; (c) "gas" means all natural gas both before and after it has been subjected to any treatment or process bv absorption, purific'ation, scrubbing or otherwise, and includes all 'Other fluid hydrocarbons not defined as oil ; (d) "oil" means crude petroleum oil and all other hydro carbons, r,egardless of gravity, which are or can be recovered from a pool in liquid form by ordinary production methods; (

e) Ie pool" me~ns an underground reservoir containing or appearing to contain 'an accumulation of oil or gas, or both. and includes any ZQne of the general structure which is separated from any other zone in the structure, which zone shall be deemed to be a separate pool. Intent and Object of Act 3. The intent, purpose and object of this Act is to effect the preservation and conservation of the oil and gas resourc-

2 es of the Province and to pr'Ovide for their effective utiliza tiQn having regard to the present and future needs of the residents of the Province. Gas 4. Any pers'On who pr'Oduces, purchases or otherwise acquires or has entered into a contract to purchase or other wise acquire property in gas within the Province and pro poses to remove it or cause it to be removed from the Province for use or consumption elsewhere than within the Province shall make application to the Board for permission before doing so. 5.-

(1) Any person who m'akes application to the Board pursuant to the provisi'Ons of secti'On 4 shall supply to the Board such informa'tion as the Board may prescribe or require.

(2) Without limiting the generality of subsection (1), the Board may require informati'On from the applicant relating to the following matters,- (

a) the location and description of the pools, fields, or 'areas within the Pr'Ovince from which the applicant pr'Oposes to produce, purchase or otherwise acquire the gas; (

b) the estimated reserves of gas in each such pool, field, or area, and the geological, engineering, and 'Other relevant data used in the calculation of the estimated reserves; (

c) the m'arketing area or areas to be supplied with the gas; (

d) the estimated maximum hourly peak load required by the applicant; (

e) the estimated maximum numbers of domestic, com mercial and industrial consumers to be supplied with the gas in the marketing areas to be served; (

I) the estimated maximum hourly peak load required for ea,ch class of consumer; (

g) the estimated maximum monthly and annual re quirements of each class of consumer; (

h) particulars of the specific purposes for which the gas required for commercial and industrial consump tion is toO be used; (i) 'Official meteorological records for the marketing area to be served and estimates setting out particu lars with respect to temperature and time, as to anticipated temperature l'Ows'and the estimated load factors obtaining by virtue 'of climatic conditions; (

j) the peri'Od for which the applicant desires ~ permit. 6. Upon receipt Df the application the Bo~rd shall fix a date f'Or the hearing of the application, notify the appli cant of the date so fixed, and require the applic'ant to' give

3 such notice thereof t'O such persons as the Board may direct, by personal service, advertisement or in such other manner as the Board may direct. 7.-

(1) The Board shall inquire int'O and hear the ap plication, 'and with the lapproval of the Lieutenant Governor in Council, may grant or refuse a permit to the applicant, or may make such other disposition 'Of the application on such terms and conditions as the Board may prescribe.

(2) Any permit granted shall be f'Or such period and upon such terms and c'Onditions as may be prescribed in the permit 'and shall be subject to the regulati'Ons and orders made pursuant to the provisions of this Act.

(3) The Board may, as a condition of any permit, pre scribe that any term or terms thereof designated by the Board shall be and remain in full force and effect for the period fixed by the Board. 8.-

(1) Any permit granted pursuant to the provisions of

section 7 may contain such terms and c'Onditions as the Board may 'prescribe, and without limiting the generality of the foregoing, the permit m,ay prescribe or designate,- (

a) the pool or pools from which the permittee may produce, purchase.or otherwise acquire gas, or the point in any integrated system at which the permit tee may acquire gas; (

b) the maximum monthly and annual quantities of gas which may be produced, purchased or otherwise 'acquired by the permit,tee from each pool designated in the permit, 'Or from any integrated system during the period or periods set out in the permit; (

c) the maximum daily and hourly rate of production or withdrawal from each pool designated in the permit 'Or from any integrated system; (

d) the conditions under which the gas acquired by the permittee may be diverted, reduced 'Or interrupted; (

e) that the permittee will supply gas from its pipe line at la reasonable price to any community 'Or consumer within the Province that is willing to take delivery of gas at a P'Oint 'On the pipe line, and that, in the opinion of the Board, can reasonably be supplied by the permittee's pipe line; (

I) the period for which the permit is granted; (

g) that gas shall be taken ratably from the wells of owners 'and producers pr'Oducing gas fr'Om the de signated pool or pools.

(2) Not less than six months prior to the expiration 'Of the period prescribed in any permit the permittee may make application to the Board for a new per~it ~nd all the pro visions of this Act relating to the applIcatIOn for and the granting of an original permit shall apply to the application for a new permit.

4 9. Notwithstanding the pr'Dvisions of any permit, where, in the .opini'Dn of the Board, an emergency occurs or other circumstances arise by reason of which it becomes necessary, in the public interest, to provide additional gas temporarily to meet the needs of consumers within the Prov,il).ce, the Board, with the approval of the Lieutenant Governor in Council, to meet the emergency or other >Circumstances, may make an order requiring the diversion of all or a,ny portion of the gas to which a permittee is entitled under his permit to consumers within the Province for use and con sumption within the Province for such temporary period as the Board may order. 10.-

(1) The Board at any time, either of its own motion or at the request .of a permittee, may hold a hearing to reconsider any permit if any circumstances arise which, in the 'Opinion of the Board, justify the holding of a hearing.

(2) The Board shall fix a date f.or the hearing; give the permittee sixty clear days' notice of the date so fixed, require the permittee to give such notice thereof to such persons as the Board may direct, by personal service, advertisement, or in such other manner as the Board may direct, and shall inquire into and hear the matter.

(3) At the conclusi'On 'Of the hearing the Board, with the approval of the Lieutenant Govern'Or in Council, may make any order which, in the opini'On of the Board and the Lieuten :ant Governor in Council, is just and reasonable under the circumstances. 11.

The Board, with the approval of the Lieutenant Gov ernor in Council, after due notice to and hearing 'Of the per mittee and any other party interested, m1ay cancel the permit 'Of any permittee who, while 'Operating under his permit, wilfully violates any term or condition of the permit. or any provision of this Act, or any regu}iati'On Dr order made here under, or any pr'OvisiDn of any Act governing the drilling, prDducing, conservation, gathering, purchasing and acquisi tion of gas or oil within the Province. 12.

For the purpose of this Act the Board may prescribe the method to be used for the measurement of gas produced, purchased or otherwise acquired by any permittee. 13. No person WhD produces, purchases or otherwise acquires property in gas within the Province shall remove it or cause it to be removed from the Province for use or consumptiDn elsewhere than in the Province unless he is the holder of a subsisting permit issued under this Act author izing him S.o to do. 14.

Any person who receives gas within the Province for shipment and transmission to a place elsewhere than within the Province shall be guilty of an offence against this

6 ~ct unless the owner or shipper has a subsisting permit Issued pursuant to the pr'Ovisions 'Of this Act authorizing the removral 'Of such gas f'Or use and c'Onsumpti'On elsewhere than within the Pr'Ovince. General 15. The Lieutenant G'Overn'Or in C'Ouncil may make regu lations frDm time to time,- (

a) vesting in the Board such auth'Ority and P'Ower as is deemed necessary 'Or advisable f'Or the purpose 'Of .enabling the B'Oard t'O c'Onduct and perf'Orm its duties; (

b) deemed necessary 'Or advisable for carrying 'Out the pr'Ovirsi'Ons of this Act 'acc'Ording to their true intent and t'O facilitate the efficient administrati'On there'Of. 16. The B'Oard may make rules 'Of practice not incon sistent with this Act regulating its procedure and the times 'Of its sittings and in the c'Onduct .of its hearings the Board shall not be bound by the rules 'Of legal evidence. 17.

The B'Oard and every member there'Of, for the purpose 'Of any hearing, inquiry 'Or investigati'On pursuant to any 'Of the pr'Ovisions 'Of this Act, 'Shall have all the P'Owers which may be cDnferred upon a c'Ommissi'Oner apP'Ointed pursuant to The Public Inquiries Act for the purpDse 'Of taking evi dence on 'Oath Dr affirmati'On and compelling the attendance of witnesses and the pr,'Oducti'On 'Of d'Ocuments. 18.

N'O pers'On shall be excused from testifying 'Or from prDducing any b'O'Ok, dDcument 'Or paper in any investigation 'Or inquiry by 'Or UP'On a hearing before the B'Oard, when 'Ordered S'O t'O do by the BDard, UP'On the gr'Ound that the testim'Ony Dr ,evidence, b'O'Ok, d'Ocument 'Or paper required 'Of him may tend t'O incriminate him 'Or subject him to penalty 'Or f'Orfeiture, but nD perrson shall be pr'Osecuted, punished 'Or subjected t'O any penalty 'Or f'Orfeiture f'Or 'Or on acc'Ount 'Of any aict, transacti'On, matter 'Or thingc'Oncerning which he shall, under 'Oath, have testified 'Or pr'Oduced d'Ocumentary evidence; pr'Ovided, h'Owever, that nD pers.'On S'O testifying shall be exempt fr'Om pr'OSecutiDn 'Or punishment f'Or any perjury c'Ommitted by him in his testim'Ony. 19.-

(1) In case of failure 'Or refusal 'On the part 'Of any pers'On to c'Omply with a notice to attend issued by the Board, a judge 'Of the Supreme C'Ourt 'Of Alberta, 'On the application 'Of the B'Oard, may issue a b~nch warrant requiring the a ttendance of the wi tnes'S bef'Ore the B'Oard.

(2) In case 'Of the refusal 'Of a witness to give evidence 'Or answer as tD any matter regarding which he is questi'Oned bef'Ore the B'Oard, a judge 'Of the Supreme C'Ourt of Alberta, 'On the application of the B'Oard, may c'Ommit the witness f'Or c'Ontempt 'Of the BDard, and shall have the same power 'Of committal in respect 'Of such c'Ontempt as he has in respect 'Of c'Ontempts of the Supreme C'Ourt.

6 20. The Board, in its discretion, m'ay direct by whom and to what extent the cost and expenses of, incidental to, and in connection with any application, hearing or other proceed ing before the Board, shall be paid. 21.

Any permittee, while operating under his permit, who violates any provision of any Act, regulation or order gov erning the drilling, producing, conservation, gathering, purchasing and acquisition of gas or oil within the Province, shall be guilty of an offence against this A~t and shall be liable in addition to any other penalty prescribed under such other Act, to the penalty provided in this Act. 22.

Any permittee or other person who contravenes or makes default in complying with any of the provisions of this Act or the regulations, or with any of the provisjons of a permit, or with any order of the Board made under this Act, shall be guilty of an offence and liable upon

summary conviction to a fine of not less than one hundred dollars nor more than two thousand dollars in respect of each such of fence, and in the case of a continuing offence to a fine of not less than one hundred dollars nor more than two thousand dollars for the first day upon which the offence occurs, and of not less than fifty dollars nor more than one thousand dollars for each subsequent day during whi,ch the offence continues. 23. This Act shall come into force on the d'ay upon which it is assented to.

.1."IU. ~ SECOND SESSION ELEVENTH LEGISLATURE 13 GEORGE VI 1949 BILL

An Act to provide for the Preserva tion, Conservation and Effective Utilization of the Gas Resources of the Province. Received and read the First time ...................................... . Second time Third time. .. .......................... .. HON. MR. TANNER. Title: 1949 (11th, 2nd) Bill 1,

An Act to provide for the Preservation, Conservation and Effective Utilization of the Gas Resources of the Province

Document details

Collection	Alberta — Bills
Citation	L11 S2 7115
Type	bill
Volume / chapter	L11 S2 7115
Language	en
Format	json
Source	PROVINCIAL
Identifier	05c40121d9588fa97c932be4b9536e05bef0f9c8

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