Bill 54 — Third Session, 18Th Legislature, 26 Elizabeth Ii the Legislative Assembly of Albert A Bill 54 the Petroleum Marketing Amendment Act, 1977 (Legislature 18, Session 3)

L18 S3 5756

Alberta — Bills

1977 BILL 54 Third Session, 18th Legislature, 26 Elizabeth II THE LEGISLATIVE ASSEMBLY OF ALBERT A BILL 54 THE PETROLEUM MARKETING AMENDMENT ACT, 1977 THE MINISTER OF ENERGY AND NATURAL RESOURCES First Reading ................ ,~"-, ., .. ' ....... ~ ...... ; ....... . Second Reading .......................................... . Th' d R d' Ir ea Ing ........................................... . Printed by the Queen's Printer for the Province of Alberta, EDMONTON

Bill 54 BILL 54 1977 THE PETROLEUM MARKETING AMENDMENT ACT, 1977 (Assented to , 1977) HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Alberta, enacts as follows:

PART 1 THE PETROLEUM MARKETING ACT 1. The Petroleum Marketing Act is amended by this Part.

Section 1 is amended by adding the following clause after clause (c): (d) "pentanes plus" means pentanes plus as defined by The Oil and Gas Conservation Act and condensate as defined by that Act, but does not include petroleum.

Section 13 is amended as to clauses (a), (

b) and (

c) by adding after the word "petroleum" wherever it occurs the words "or pentanes plus". 1

Explanatory Notes 1. This Part of the Bill will amend

chapter 96 of the Statutes of Alberta, 1973.

Section 1 contains

definitions of expressions used in the Act. See sections 3 and 5 of this Bill and the new Parts 5 and 6 being added by

section 7 of this Bill.

Section 13(a), (

b) and (

c) presently reads: 13. The Commission may (

a) acquire, sell or exchange petroleum in Alberta; (

b) act as an agent or broker in connection with a purchase, sale or exchange of petroleum in Alberta; (

c) construct, purchase, lease or otherwise acquire" operate and dispose of storage facilities in Alberta for petroleum and pipe lines in Alberta for the transmission of petroleum to and from such storage facilities; 1

Section 18 is amended (

a) as to subsection (]) by striking out the words "under the agreement to file reports with the Department" and by substituting the words "to file reports under

section 135 of The Mines and Minerals Act ", and (

b) as to subsection (2) by striking out the words "by the provisions of the agreement to file with the Depart ment, within the same period of time as that required under the agreement for filing with the Department" and by substituting the words "to file under

section 135 of The Mines and Minerals Act, within the same period of time as that required under that

section for filing with the Depart ment".

Section 21, subsection (]) is amended by striking out clause (aJ and by substituting the/ollowing: (

a) shall accept delivery within Alberta of the lessee's share of petroleum and upon delivery of that petroleum to it becomes the exclusive agent to sell that petroleum on behalf of the owners thereof, with the exclusive power to negotiate and agree to the price at which that petro leum is sold and to determine the purchaser to whom that petroleum is sold; 6. The/ollowing

section is added after

section 24: 24.1. This

Part comes into force on a date to be fixed by Proclamation. 7.

Part 5 is struck out and the/ollowing is substituted:

PART 5 MARKETING OF THE CROWN'S ROYALTY SHARE OF PENTANES PLUS 25. In this Part, (a) "agreement" means a lease, licence, permit or reserva tion of petroleum and natural gas rights or natural gas rights issued pursuant to The Mines and Minerals Act or its predecessors and to which

section 138 of The Mines and Minerals Act applies; (b) "lessee" means the holder of an agreement according to the records of the Department. 2

Section 18 presently reads: 18.

(1) The delivery to the Commission of the Crown's royalty share of petroleum recovered pursuant to an agreement operates to discharge the lessee with respect to his liability to pay that royalty to the Crown in right of Alberta but nothing in this Part shall be construed to relieve the lessee from his obligation under the agreement to file reports with the Department respecting the amount of petroleum recovered pursuant to the agreement.

(2) The lessee or his agent shall furnish to the Commission a copy of each report respecting the amount of petroleum recovered that the lessee is required by the provisions of the agreement to file with the Department, within the same period of time as that reuired under the agreement for filing with the Department. The amendments to

section 18 will bring it into conformity with

section 135 of The Mines and Minerals Act as enacted in 1976. 5.

Section 21 (1) (

a) presently reads: 21.

(1) The Commission (

a) is the exclusive agent to sell the lessee's share of petroleum on behalf of the owner thereof, with the exclusive power to negotiate and agree to the price at which that petroleum is sold; 6. The proposed

section 24.1 will be in

Part 4 which involves an alternative marketing scheme. All of the present Act has been pro claimed in force except

Part

Section 24.1 will replace the present

part 5 of the Act which is entitled "Commencement" and contains only

section 25 which reads: 25. This Act comes into force on a date or dates to bejixed by Proclamation.

Part 5 will be repealed by

section 7 of this Bill. 25.

Definitions. 2

(1) The Commission (

a) shall accept delivery within Alberta of the Crown's roy alty share of the pentanes plus recovered pursuant to an agreement and required to be delivered to it by

section 138 of The Mines and Minerals Act, and (

b) subject to subsection (2), shall sell within Alberta the Crown's royalty share of pentanes plus at a price that is in the public interest of Alberta.

(2) Where it accepts delivery of any pentanes plus pursuant to subsection (0, clause (a), the Commission may arrange for the storage of that pentanes plus within Alberta until such time as it has arranged for the sale of that pentanes plus at a price that is in the public interest of Alberta or for the utilization of that pentanes plus within Alberta. 27.

(1) Where the Commission wishes to arrange for the storage of pentanes plus pursuant to

section 26, the Commis sion may direct the operator of a pipe line to transmit the pentanes plus by his pipe line to a storage facility within Alberta designated by the Commission or to a point within Alberta designated by the Commission that is enroute to a storage facility.

(2) A person who does not comply with a direction given to him by the Commission under subsection (1) is guilty of an offence and liable on

summary conviction to a fine not exceed ing $5000 for each day that the failure of compliance continues.

(3) Where a person does not comply with a direction given to him by the Commission under subsection (1) then, whether or not he has been convicted of an offence under subsection (2), the Commission may by originating notice apply to the Supreme Court of Alberta for an order requiring that person to comply with the direction. 28. The Commission shall pay the proceeds of sales of pen tanes plus by it under this Part to the Provincial Treasurer for deposit in the General Revenue Fund in accordance with the directions of the Provincial Treasurer. 29.

(1) The delivery to the Commission of the Crown's royalty share of pentanes plus recovered pursuant to an agreement operates to discharge the lessee with respect to his liability to pay that royalty to the Crown in right of Alberta but nothing in this Part shall be construed to relieve the lessee from his obligation to file reports under

section 135 of The Mines and Minerals Act respecting the amount of pentanes plus recovered pursuant to the agreement.

26. Marketing of Crown's royalty share. 27. Direction to transmit pentanes plus by pipe line. 28. Disposition of sales proceeds. 29. Report re production. 3

(2) The lessee or his agent shall furnish to the Commission a copy of each report respecting the amount of pentanes plus recovered that the lessee is required to file under

section 135 of The Mines and Minerals Act, within the same period of time as that required under that

section for filing with the Department. 30. The Lieutenant Governor in Council may make regulations providing for any matter in connection with or incidental to the administration of this Part.

PART 6 MARKETING OF THE LESSEE'S SHARE OF PENTANES PLUS 31. In this Part, (a) "agreement" means a lease, licence, permit or reserva tion of petroleum and natural gas rights or natural gas rights issued pursuant to The Mines and Minerals Act or its predecessors and to which

section 139 of The Mines and Minerals Act applies; (b) "lessee" means the holder of an agreement according to the records of the Department; (c) "lessee's share of pentanes plus" means the pentanes plus, other than the Crown's royalty share thereof, recovered pursuant to an agreement; (d) "pool" means a pool designated by the Energy Resources Conservation Board under The Oil and Gas Conservation Act. 32.

(1) The Commission (

a) shall accept delivery within Alberta of the lessee's share of pentanes plus and upon delivery of that pentanes plus to it becomes the exclusive agent to sell that pentanes plus on behalf of the owners thereof, with the exclusive power to negotiate and agree to the price at which that pentanes plus is sold and to determine the purchaser to whom that pentanes plus is sold; (

b) shall sell within Alberta the lessee's share of pentanes plus at the highest price that it may reasonably negotiate having regard to market conditions prevailing at the time of the sale; (

c) shall, upon the sale of any of the lessee's share of pentanes plus, pay to the owners thereof the proceeds of the sale, without any deductions whatever; 4

30. Regulations. 32. Marketing of lessee's share. 4

(

d) shall make payment under clause (

c) within 60 days after the sale of the pentanes plus; (

e) shall, in carrying out its responsibilities under clauses (

a) to (d), diligently endeavor to encourage and pro mote the orderly and equitable marketing of the lessee's share of pentanes plus; (n shall not in selling pentanes plus under this

section discriminate as between owners or as between pentanes plus from different pools or other sources, except as may be necessary to effect the orderly and equitable marketing thereof.

(2) The lessee's share of pentanes plus shall not, prior to its sale by the Commission, be exchanged for any other pentanes plus. 33. The Energy Resources Conservation Board shall, when requested to do so by the Commission, (

a) hold a hearing with respect to, or otherwise consider, the manner in which the Commission exercises and performs its powers and duties under

Part 5 or 6 or both, and (

b) submit a report thereon to the Commission with any recommendations that the Board considers appropriate with respect to the exercise of or performance by the Commission of any of those powers or duties. 34. The Lieutenant Governor in Council may make regulations providing for any matter in connection with or incidental to the administration of this Part.

PART 2 THE MINES AND MINERALS ACT 8. The Mines and Minerals Act is amended by this Part. 9. The following sections are added after

section 137: 138.

(1) Every agreement to which this

section applies is sub ject to the condition that the Crown's royalty share of the pentanes plus recovered pursuant to the agreement shall .be delivered to the Alberta Petroleum Marketing Commission In corporated under The Petroleum Marketing Act. 5

33. Hearings by the Energy Resources Conservation Board relating to sales of pentanes plus by the Commission. 34. Regulations. 8. This Part of the Bill will amend

chapter 238 of the Revised Statutes of Alberta 1970. 138. Marketing of Crown's share of pentanes plus. 5

(2) This

section applies only to those agreements to which it is made applicable by the regulations under subsection (3).

(3) The Lieutenant Governor in Council may make regula tions declaring this

section applicable either (

a) to all agreements granting petroleum and natural gas rights or natural gas rights, or (

b) to agreements granting petroleum and natural gas rights or natural gas rights the locations of which are situated in the part or parts of Alberta specified in the regulations.

(4) The Minister may, with respect to any agreement to which this

section applies and in any special case where he considers it warranted by circumstances to do so, waive com pliance with subsection (1) for any period of time and upon any conditions he may prescribe.

(5) In this

section and

section 139, "pentanes plus" means pentanes plus as defined by The Oil and Gas Conservation Act and condensate as defined by that Act, but does not include petroleum. 139.

(1) Every agreement to which this

section applies is sub ject to the condition that the pentanes plus recovered pursuant to the agreement, other than the Crown's royalty share thereof, shall be sold through the Alberta Petroleum Marketing Com mission incorporated under The Petroleum Marketing Act.

(2) This

section applies only to those agreements to which it is made applicable by the regulations under subsection (3).

(3) The Lieutenant Governor in Council may make regula tions declaring this

section applicable either (

a) to all agreements granting petroleum and natural gas rights or natural gas rights, or (

b) to agreements granting petroleum and natural gas rights or natural gas rights the locations of which are situated in the part or parts of Alberta specified in the regulations.

(4) This

section applies to an agreement notwithstanding any contract or arrangement made before or after the commence ment of this

section and relating to the sale or other disposition of the pentanes plus recovered from the location of the agree ment and no party to any such contract or arrangement has a cause of action against any other party thereto by reason of the effect of the operation of this

section upon that contract or arrangement. 6

139. Marketing oflessee's share ofpentanes plus. 6

(5) The Minister may, with respect to any agreement to which this

section applies and in any special case where he considers it warranted by circumstances to do so, waive com pliance with subsection (1) for any period of time and upon any conditions he may prescribe.

PART 3 COMMENCEMENT 10. This Act comes into force on the day upon which it is assented to.

7 Title: 1977 (18th, 3rd) Bill 54, The Petroleum Marketing Amendment Act, 1977

Document details

Collection	Alberta — Bills
Citation	L18 S3 5756
Type	bill
Volume / chapter	L18 S3 5756
Language	en
Format	json
Source	PROVINCIAL
Identifier	06a18d3b1540c0d88891ba8e973073df80dbb800

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