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Home → Legislative Business → Bills → 43-1

Status of bills in this Session.

1st Session, 43rd Legislature

This HTML version is provided for ease of use and is based on the bilingual version that was distributed in the Legislature after First Reading.

Bill 31

THE CAPTURED CARBON STORAGE ACT

Table of Contents

Bilingual version (PDF)

Explanatory Note

(Assented to )

HIS MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:

PART 1

INTRODUCTORY PROVISIONS

Definitions

1(1) The following

definitions apply in this Act.

"affected interest" , in relation to a parcel of land all or any part of which is proposed to be included in a storage area, means the estate or interest of an affected person in that parcel. (« intérêt touché »)

"affected person" , in relation to an application for a carbon storage licence or for an amendment to a carbon storage licence to enlarge its storage area, means a person required to be given notice under

section 52. (« intéressé »)

"appeal board" means an appeal board appointed under

section 77. (« commission d'appel »)

"approved" means approved in writing by the director. (« approuvé »)

"captured carbon" means carbon dioxide that is captured from

(

a) an emission source and would otherwise be released into the atmosphere; or

(

b) the ambient air. (« carbone capté »)

"carbon repository" means the pore space that

(

a) is found in a geological formation that is deeper than 800 metres below the surface of the ground; and

(

b) is or will become contiguous when used to permanently store captured carbon. (« dépôt de carbone »)

"carbon storage licence" means a licence issued under

section 18. (« permis de stockage de carbone »)

"compensation hearing waiver" means a waiver provided by an affected person in accordance with

section 53. (« renonciation à une audience d'indemnisation »)

"compensation order" means an order of a subsurface rights compensation board issued under subsection 57(1). (« ordonnance d'indemnisation »)

"court" means the Court of King's Bench. (« tribunal »)

"director" means the director appointed under

section 61. (« directeur »)

"exploration reservation" means an exploration reservation issued under

section 9. (« réserve d'exploration »)

"geophysical exploration" means an investigation conducted on or over land to determine geologic or other conditions in the subsurface for the purpose of locating a carbon repository, and includes

(

a) a seismic program; and

(

b) a petrophysical survey. (« exploration géophysique »)

"highway" means a departmental road as defined in The Transportation Infrastructure Act . (« voie publique »)

"mineral" means a non-living substance that is formed by natural processes and is found on, in or under the surface of the ground, irrespective of chemical or physical state and before or after extraction, including oil, gas, helium, peat, peat moss and substances that are prescribed as minerals under The Mines and Minerals Act , but does not include agricultural soil, surface water or groundwater other than groundwater that is obtained from a well as defined in The Oil and Gas Act . (« minéral »)

"minister" means the minister appointed by the Lieutenant Governor in Council to administer this Act. (« ministre »)

"person" means an individual, an association, a partnership, a corporation or an unincorporated body and the heirs, executors, administrators or other legal representatives of a person. (« personne »)

"pore space" means space consisting of pores that are found in underground geological formations and are or have been occupied by minerals or water. (« espace poral »)

"prescribed" means prescribed by regulation under this Act. (Version anglaise seulement)

"storage area" means the area, continued vertically downward, of the land specified in a carbon storage licence. (« zone de stockage »)

"storage licensee" means the holder of a carbon storage licence. (Version anglaise seulement)

"subsurface rights compensation board" means a subsurface rights compensation board appointed under

section 55. (« commission d'indemnisation »)

"test well" means a well that is drilled and operated for the purpose of exploring for a carbon repository or obtaining information in respect of a carbon repository, including information required to determine

(

a) the suitability of the repository to permanently store captured carbon; and

(

b) the size, extent and capacity of the repository. (« puits d'essai »)

"test well licence" means a well licence issued under

section 28 that allows the holder to drill and operate a test well. (« permis d'exploitation de puits d'essai »)

"well" means an orifice in the ground being drilled or operated for the purpose of

(

a) exploring for a carbon repository;

(

b) permanently storing captured carbon in a carbon repository;

(

c) disposing of salt water or any other fluid produced in association with the storing of captured carbon; or

(

d) observing, monitoring and measuring the captured carbon stored within a carbon repository. (« puits »)

Reference to "Act" includes regulations

1(2) A reference to "this Act" includes the regulations made under this Act.

Purpose of Act

2 The purpose of this Act is to encourage the safe and effective underground storage of captured carbon by

(

a) clarifying the government's ownership of pore space;

(

b) enabling the government to regulate

(

i) pore space and the access to and the use of pore space to explore for, and store captured carbon in, carbon repositories, and

(ii) the development and operation of projects to permanently store captured carbon in carbon repositories;

(

c) ensuring that captured carbon is not released once it is stored in a carbon repository; and

(

d) reconciling the storage of captured carbon with other surface and subsurface activities.

Non-application

3 This Act does not apply to

(

a) the storage of carbon dioxide in an underground tank;

(

b) the injection of carbon dioxide underground as part of enhanced recovery in accordance with The Oil and Gas Act ; or

(

c) a prescribed circumstance.

Crown bound

4 This Act binds the Crown.

PART 2

PORE SPACE OWNERSHIP

Pore space vested in government

5(1) The pore space below the surface of all land in Manitoba is hereby vested in and is the property of the government whether or not

(

a) any person other than the government has an estate or interest in the land or in minerals in the subsurface of the land; or

(

b) minerals or water is produced, recovered or extracted from the subsurface of the land.

Pore space excluded from grants

5(2) No grant of land in Manitoba nor a grant of anything in or under land in Manitoba has operated, operates or will operate as a conveyance of the title to the pore space in or under the land.

Deemed reservation in original grant

5(3) The reservation of pore space under this

section is deemed to be and always to have been a reservation contained in an original grant of land in Manitoba for the purpose of subsection 58(1) of The Real Property Act .

Exclusion

5(4) This

section does not apply with respect to land within a reserve, as defined in the Indian Act (Canada), or land that, on the date on which this

section comes into force, belongs to the Crown in right of Canada.

No entitlement to compensation

6(1) No compensation is payable by the government as a result of the enactment of

section 5, and proceedings must not be commenced or continued to claim compensation from the government or to obtain a declaration that compensation is payable by the government as a result of the enactment.

No taking, expropriation or injurious affection

6(2) For greater certainty, no taking, expropriation or injurious affection occurs as a result of the enactment of

section 5.

PART 3

RESERVATIONS, LICENCES AND PERMITS

DIVISION 1

EXPLORATION

EXPLORATION RESERVATIONS

Exclusive right to explore

7 An exploration reservation gives the holder, in relation to the area specified in the reservation, an exclusive right to apply

(

a) for a permit to conduct geophysical exploration in the area; and

(

b) for a test well licence to drill or operate a test well at a site in the area.

Application to director

8 A person may apply for an exploration reservation by providing to the director, in accordance with the regulations,

(

a) an application in the approved form;

(

b) the prescribed information; and

(

c) any additional information requested by the director.

Director may issue reservation

9(1) Subject to subsection (2), the director may, in accordance with the regulations, issue an exploration reservation.

No reservation issued for certain areas

9(2) The director must not issue the exploration reservation for an area that includes one or more of the following:

(

a) an area specified in a valid exploration reservation or a valid carbon storage licence that is not held by the applicant;

(

b) an area within a prescribed area.

Period of validity

10(1) An exploration reservation is valid for up to four years after the date it is issued as specified in the reservation.

Extension of period

10(2) Subject to the regulations, the director may, on application by the holder of the exploration reservation made in accordance with the regulations, extend the period for which the reservation is valid by one or more additional periods of up to four years.

GEOPHYSICAL EXPLORATION PERMITS

No geophysical exploration without permit

11 A person must not conduct geophysical exploration in an area except as authorized by a geophysical exploration permit issued under

section 13.

Who may apply for geophysical exploration permit

12(1) A person may apply for a geophysical exploration permit in respect of an area only if the person holds an exploration reservation that includes the area.

How to apply

12(2) The application may be made by providing to the director, in accordance with the regulations,

(

a) an application in the approved form;

(

b) the prescribed performance security;

(

c) the prescribed information; and

(

d) any additional information requested by the director.

Director may issue permit

13(1) Subject to subsections (2) and (3), the director may, in accordance with the regulations, issue a geophysical exploration permit to conduct geophysical exploration in the area specified in the permit.

Applicant must have surface rights

13(2) The director must not issue the geophysical exploration permit unless the director is satisfied that the applicant has obtained the surface rights necessary to carry out the proposed geophysical exploration in accordance with The Surface Rights Act .

Geophysical exploration on highway prohibited

13(3) The director must not issue the geophysical exploration permit in respect of an area that includes a highway unless the applicant has obtained the written approval of the minister responsible for the administration of The Transportation Infrastructure Act . When issuing the permit with that minister's approval, the director must impose any terms or conditions that the minister considers appropriate.

TEST WELL LICENCES

Who may apply for test well licence

14(1) A person may apply under

section 27 for a test well licence only if the person holds an exploration reservation for the area that includes the site of the proposed test well.

Applicant must have rights

14(2) The director must not issue the test well licence unless the director is satisfied that the applicant has obtained

(

a) the surface rights necessary to drill and operate the test well in accordance with The Surface Rights Act ; and

(

b) any additional prescribed consents or rights.

DIVISION 2

CARBON STORAGE

CARBON STORAGE LICENCES

No underground storage without licence

15 A person must not store captured carbon underground or inject captured carbon into the subsurface except as authorized by a carbon storage licence.

Exclusive right to store carbon

16 A carbon storage licence gives the holder the exclusive right, within the storage area specified in the licence, to access, develop and use any carbon repository within the area to permanently store captured carbon in accordance with this Act and the licence.

Who may apply for carbon storage licence

17(1) A person may apply for a carbon storage licence only if

(

a) the person has drilled and operated a test well in accordance with a test well licence in the proposed storage area; or

(

b) the director has given written approval to the person to apply for a carbon storage licence.

How to apply

17(2) The application may be made by providing to the director, in accordance with the regulations,

(

a) an application in the approved form;

(

b) the prescribed performance security;

(

c) a risk assessment for the proposed carbon repository;

(

d) a storage resource assessment of the proposed carbon repository prepared in accordance with the regulations;

(

e) the following plans prepared in accordance with the regulations:

(

i) a risk management plan,

(ii) a monitoring, measurement and verification plan,

(iii) a closure plan;

(

f) the prescribed information; and

(

g) any additional information requested by the director.

Director may issue licence

18(1) The director may issue a carbon storage licence only if the director

(

a) is satisfied that the activities of the applicant, when carried out in accordance with this Act and the licence, will result in the permanent storage of captured carbon in a carbon repository that is within the storage area specified in the licence;

(

b) in respect of the storage area, is satisfied that the applicant has obtained a compensation hearing waiver or a compensation order in respect of each affected interest; and

(

c) has approved the applicant's risk management plan, monitoring, measurement and verification plan and closure plan.

No licence issued for certain areas

18(2) The director must not issue the carbon storage licence if the proposed storage area includes one or more of the following:

(

a) an area specified in a valid exploration reservation or a valid carbon storage licence that is not held by the applicant;

(

b) an area within a prescribed area.

REVISED PLANS AND

CARBON STORAGE LICENCES

Director may require revisions to plans

19(1) The director may order a storage licensee to submit a revised risk management plan, revised monitoring, measurement and verification plan or revised closure plan for approval.

Plan revisions

19(2) The storage licensee may at any time, and must when ordered to do so by the director, submit a revised plan to the director for approval.

Director may approve revised plan

Director may order cessation of carbon injection

20(1) The director may order a storage licensee to cease, temporarily or permanently, injecting or attempting to inject captured carbon into a carbon repository if

(

a) the director has reasonable grounds to believe that

(

i) captured carbon is no longer being contained, or is at risk of ceasing to be contained, in the carbon repository within the storage area specified in the licence, or

(ii) the carbon repository is no longer fully contained within the storage area specified in the licence;

(

b) the licensee is not in compliance with this Act; or

(

c) the licensee has applied under subsection (2) for an amendment to the carbon storage licence that enlarges the storage area specified in the licence.

The director may extend or rescind the order at any time.

Licence amendments

20(2) The storage licensee may at any time apply to the director for an amendment to the carbon storage licence that reduces or enlarges the storage area specified in the licence.

How to apply

20(3) The application may be made by providing to the director, in accordance with the regulations,

(

a) the application in the approved form;

(

b) the prescribed performance security;

(

c) the prescribed information; and

(

d) any additional information requested by the director.

Director may approve application

20(4) Subject to subsection (5), the director may approve an application under subsection (2) and, if approval is given, the director must amend the carbon storage licence accordingly.

When director must not approve amendment

20(5) The director may approve the application for an amendment to the carbon storage licence that enlarges the storage area specified in the licence only if the director is satisfied that

(

a) the enlargement is reasonably necessary to ensure that the existing carbon repository is adequately contained in the storage area, as amended; and

(

b) the applicant has obtained a compensation hearing waiver or a compensation order in respect of each affected interest in the area proposed to be added to the storage area.

Director may order amendments

20(6) The director may,

(

a) by order, amend the carbon storage licence to reduce or enlarge the storage area; and

(

b) if the amendment enlarges the storage area specified in the carbon storage licence, order the storage licensee to obtain a compensation hearing waiver or a compensation order in respect of each affected interest in the area proposed to be added to the storage area.

Director must give notice

21(1) The director must give a storage licensee written notice of the following:

(

a) a decision not to

(

i) approve the licensee's proposed revision of a plan, or

(ii) approve the licensee's application to amend a carbon storage licence to reduce or enlarge the storage area;

(

b) an order that the licensee

(

i) submit a revised plan, or

(ii) cease injecting or attempting to inject captured carbon into a carbon repository;

(

c) an order that the storage area specified in the licence be reduced or enlarged.

Notice

21(2) A notice given under subsection (1) must include written reasons for the decision or action taken by the director and state that the storage licensee may appeal the decision or order under

Part 6 (Appeals).

CLOSURE OF CARBON REPOSITORY

Closure of carbon repository requires approval

22(1) A storage licensee must not close a carbon repository unless the licensee

(

a) obtains the prior approval of the director; and

(

b) implements the closure in accordance with the licensee's approved closure plan.

Director may order closure

22(2) The director may order the closure of a carbon repository if the director

(

a) considers that the carbon repository is no longer necessary; or

(

b) has ordered the storage licensee to cease injecting or attempting to inject captured carbon into the carbon repository and has not rescinded the order.

Storage licensee to close repository

Closure certificate

23 On application by a storage licensee who has closed a carbon repository in accordance with subsection 22(4), the director may issue a closure certificate to the applicant in relation to the repository.

Liabilities after closure

24 Despite the issuance of a closure certificate, the person who holds or last held the carbon storage licence in relation to a carbon repository is liable for the costs of any

(

a) action or repair which, in the opinion of the director, is required or may be required to prevent the escape of captured carbon from the carbon repository; and

(

b) action, repair or restoration required in relation to

(

i) the storage area as a result, directly or indirectly, of storing or attempting to store captured carbon in the repository,

(ii) any other land as a result of activities carried out under a risk management plan, monitoring, measurement and verification plan or closure plan, and

(iii) any land or groundwater contaminated or damaged as a result of the activities carried out by the person under this Act.

Director must give notice

25(1) The director must give a storage licensee written notice of the following:

(

a) an order to close a carbon repository;

(

c) a decision not to issue a closure certificate.

Notice

25(2) A notice given under subsection (1) must include written reasons for the decision or action taken by the director and state that the person may appeal the decision or action under

Part 6 (Appeals).

WELL LICENCES

No drilling or operating well without licence

26(1) A person must not drill or operate a well or carry on any activity related to a well except as authorized by a well licence.

Survey site for well

26(2) Despite subsection (1), the site for a proposed well may be surveyed without first obtaining a well licence.

Who may apply for a well licence

27(1) A person may apply for a well licence with respect to the area that includes the site of the proposed well,

(

a) in the case of a test well licence, only if the person holds an exploration reservation for the area; and

(

b) in any other case, only if the person holds a carbon storage licence for the area.

How to apply

27(2) The application may be made by providing to the director, in accordance with the regulations,

(

a) an application in the approved form;

(

b) the prescribed performance security;

(

c) the prescribed information; and

(

d) any additional information requested by the director.

Director may issue licence

28(1) Subject to subsection (2), the director may, in accordance with the regulations, issue a well licence that allows the holder to

(

a) drill and operate a well at the site specified in the licence; and

(

b) conduct other activities in relation to a well as specified in the regulations and the licence.

Applicant must have surface rights

28(2) The director must not issue a well licence unless the director is satisfied that the applicant has obtained the surface rights necessary to drill and operate the well in accordance with The Surface Rights Act .

Director to name each well

29 The director must name each well for which a well licence is issued, and may change the name of a well, in accordance with the regulations.

WELL ABANDONMENT AND SITE RESTORATION

No abandonment of well without approval

30(1) The holder of a well licence must not abandon a well unless the abandonment has been approved or ordered by the director.

Director may approve abandonment

Director may order abandonment

30(3) The director may order the holder of the well licence to abandon the well if the director considers that the well

(

a) is no longer required in respect of the operations of the licence holder; or

(

b) presents a risk in respect of captured carbon that has or may be injected into a carbon repository.

Requirement to comply and restore

31 The holder of a well licence who abandons a well must

(

b) restore the site of the well in accordance with the regulations and The Surface Rights Act .

Certificate of abandonment

32(1) On application by a person who has abandoned a well in accordance with

section 31, the director may issue a certificate of abandonment to the applicant with respect to the well.

Liability for restoration

32(2) Despite the issuance of the certificate of abandonment, the person who holds or last held the well licence for the abandoned well is liable for the costs of any repair or restoration required with respect to

(

a) the well;

(

b) the site of the abandoned well as a result of the operation or abandonment of the well; and

(

c) any other land or groundwater contaminated or damaged as a result of the activities carried out by the person under this Act.

Certificate does not affect Surface Rights Act

32(3) The issuance of the certificate of abandonment does not affect the application of The Surface Rights Act to the holder of the well licence with respect to the well.

Re-entry of abandoned well

33 A person must not drill or operate a well that is abandoned unless the person holds a well licence for the well and the director, on application in the approved form, approves the drilling or operation of the well.

Director must give notice

34(1) The director must give the holder of a well licence written notice of the following:

(

a) a decision not to

(

i) approve the proposed drilling or operation of an abandoned well, or

(ii) issue a certificate of abandonment;

(

b) an order to abandon a well;

Notice

34(2) A notice given under subsection (1) must include written reasons for the decision or action taken by the director and state that the holder of the well licence may appeal the decision or action under

Part 6 (Appeals).

DISPOSAL PERMITS

No disposal without permit

35 A person must not dispose of any salt water or any other fluid produced from a well except as authorized by a disposal permit issued under

section 37.

Application for disposal permit

36 The holder of a well licence may apply for a disposal permit by providing to the director, in accordance with the regulations,

(

a) an application in the approved form;

(

b) the prescribed performance security;

(

c) the prescribed information; and

(

d) any additional information requested by the director.

Director may issue permit

DIVISION 3

PROVISIONS APPLYING TO LICENCES AND PERMITS

Definition — "licence or permit"

38 In this Division, "licence or permit" means a reservation, licence or permit issued under this Act.

39(1) Each licence or permit is subject to

Director may refuse to issue licence or permit

40(1) The director may refuse to issue a licence or permit to an applicant who

(

a) fails to meet any requirement of this Act;

(

b) fails to provide any information required by this Act or the director in support of the application; or

(

c) provides incomplete, false, misleading or inaccurate information in support of the application.

Additional reason to refuse to issue licence or permit

40(2) In addition, the director may refuse to issue a licence or permit if the director is satisfied that the applicant will not comply with this Act, having regard to the past conduct of the applicant or a person with a significant interest in the applicant, within the meaning of the regulations.

Director may refuse to extend period of validity

40(3) The director may extend or refuse to extend the period for which a licence or permit is valid.

Cancellation or suspension

41 The director may cancel or suspend a licence or permit

(

a) for any reason for which the director may refuse to issue the licence or permit;

(

b) if the holder of the licence or permit fails to provide any record, information, material, product or sample as required by this Act or the director;

(

c) if the holder of the licence or permit provides incomplete, false, misleading or inaccurate information to the director;

(

d) if the holder of the licence or permit contravenes this Act; or

(

e) if the holder of the licence or permit has become a bankrupt as defined in the Bankruptcy and Insolvency Act (Canada), made a proposal under that Act or had a winding-up order made against it.

Director must give notice to licence or permit holders

42(1) The director must give the applicant for or the holder of a licence or permit written notice of the following:

(

a) a decision not to

(

i) issue the licence or permit, or

(ii) extend the period for which the licence or permit is valid;

(

c) the cancellation or suspension of the licence or permit.

Notice

42(2) A notice given under subsection (1) must include written reasons for the decision or action taken by the director and, if the matter is subject to an appeal under

Part 6 (Appeals), state that the recipient of the notice may appeal the decision or action under that Part.

COMPLIANCE

43(1) A holder of a licence or permit must comply with

(

a) this Act;

(

b) The Surface Rights Act ;

(

i) on the licence or permit, and

(ii) in relation to the implementation of an approved closure plan or the abandonment of a well; and

(

d) orders of the director under subsections 19(1) (order to submit revised plan), 20(1) and (6) (orders relating to ceasing injection and amending carbon storage licences), 22(2) (order to close carbon repository) and 30(3) (order to abandon well).

Storage licensee must comply with plans

Required insurance

44 A holder of a licence or permit must hold the insurance coverage as required by the regulations, if any.

Records, reports and samples

45(1) The holder or former holder of a licence or permit must, in accordance with the regulations,

(

a) make and maintain records related to the holder's activity under the licence or permit and provide any such record to the director on request;

(

b) prepare reports related to the holder's activity under the licence or permit and any other prescribed matter and submit them to the director; and

(

c) take samples, conduct tests and make surveys related to the holder's activity under a licence or permit and submit them to the director.

Licence or permit holder to provide information

45(2) The holder or former holder of a licence or permit must provide, on the written request of the director, any other information related to the licence or permit and any activity undertaken under the licence or permit.

Holder of a well licence to provide data

45(3) The holder of a well licence must, on the written request of the director,

(

a) take samples, make surveys and obtain information about the well or carbon repository as the director considers necessary or advisable; and

(

b) provide the director with the samples, surveys and information obtained by the holder.

Licence or permit holder must pay fees

46 The holder of a licence or permit must pay the prescribed application, annual or other fees, if any, for the licence or permit in accordance with the regulations.

Restriction on transfer or assignment

PART 4

SURFACE AND SUBSURFACE RIGHTS

DIVISION 1

SURFACE RIGHTS

Definitions

48 The following

definitions apply in this Part.

"base of usable groundwater" means the base of usable groundwater as defined by regulation. (« base des eaux souterraines utilisables »)

"facility" means a system or arrangement of tanks, pipes or other equipment that delivers fluid or gas to or receives fluid or gas from one or more wells, including an injection plant and a pump station, but does not include a pipeline. (« installation »)

"pipeline" means a pipeline as defined by regulation. (« pipeline »)

Application of Surface Rights Act

49 A reservation, licence or permit issued under this Act does not include a right of entry to the surface of any land. The Surface Rights Act applies in relation to a right to enter the surface of the land, including compensation for any loss or damage suffered by the owner or occupant of the surface of the land, for the purpose of

(

a) conducting geophysical exploration;

(

b) drilling, operating or carrying on any activity related to a well;

(

c) carrying on any activity related to a carbon storage licence, including activities related to an approved risk management plan, an approved monitoring, measurement and verification plan or an approved closure plan;

(

d) constructing or operating a facility; or

(

e) constructing or operating a pipeline.

Director may authorize entry along proposed pipeline route

50 A storage licensee, if authorized by the director in accordance with the regulations, may enter land along the proposed route of a pipeline for the purpose of surveys, examinations or other activities on the land required to evaluate the proposed route.

DIVISION 2

SUBSURFACE RIGHTS

No right to minerals

51 For certainty, no reservation, licence or permit issued under this Act grants the holder the right to explore for, develop or recover any minerals.

TREATMENT OF AFFECTED INTERESTS

Notice to persons holding estates or interests in land

52(1) Subject to the regulations, the applicant for a carbon storage licence or for an amendment to a carbon storage licence to enlarge the storage area specified in the licence must give notice of the application to each person who is, in relation to a parcel of land all or any part of which is proposed to be included in the storage area specified in the licence,

(

a) the owner of an estate or interest in land, including mines and minerals in the land, that is registered under The Real Property Act or recorded under The Registry Act ;

(

b) the holder of a disposition within the meaning of The Oil and Gas Act ;

(

c) the holder of a mineral disposition or a lease within the meaning of The Mines and Minerals Act ;

(

d) the owner or operator of a mine within the meaning of The Mines and Minerals Act ; or

(

e) a prescribed person.

For certainty, notice to the Crown is not required.

Content of notice

52(2) The notice must be in the approved form and must

(

a) identify the affected interest or interests of the recipient;

(

b) include the prescribed information;

(

c) state that, if the application is approved, some future activities in the storage area may be prohibited by subsection 59(1);

(

d) state that the applicant is required to provide to the director, in relation to each affected interest,

(

i) a compensation hearing waiver, or

(ii) a compensation order;

(

e) state that, if so authorized by the director, the applicant may apply for a compensation order in respect of the recipient's affected interests; and

(

f) state that a compensation order is final.

Affected person may notify director of lack of notice

52(3) If an affected person is not given notice under this

section or the notice that they are given does not comply with subsection (2), the person may notify the director. In that case, the director must require the applicant to reissue the notice.

Compensation hearing waiver

53 An affected person may waive their right to a hearing of a subsurface rights compensation board by providing the applicant, in an approved form, a waiver that

(

a) identifies each affected interest in respect of which the affected person waives a hearing of a subsurface rights compensation board;

(

b) contains the prescribed information;

(

c) acknowledges that some activities in the storage area may be prohibited by subsection 59(1); and

(

d) acknowledges that the waiver is irrevocable.

SUBSURFACE RIGHTS COMPENSATION BOARD

Application for board determination

54(1) The applicant giving notice under

section 52 may apply to the minister in the approved form to have a subsurface rights compensation board determine the amount, if any, of compensation payable in relation to an affected interest if

(

a) the applicant has not obtained a compensation hearing waiver in relation to an affected interest within

(i) 60 days after giving the notice, or

(ii) such longer prescribed period; and

(

b) the director has authorized the applicant to seek a compensation order.

Application for compensation order — affected person

54(2) Subject to the regulations, if an affected interest in relation to an application for a carbon storage licence or an amendment to a carbon storage licence to enlarge the storage area specified in the licence is not addressed by a compensation hearing waiver or a compensation order before the licence or amendment is issued, the affected person may apply to the minister in the approved form to have a subsurface rights compensation board determine the amount, if any, of compensation payable to the affected person.

Subsurface rights compensation board

55(1) Within 60 days after receiving an application under

section 54, the minister must appoint a subsurface rights compensation board and refer the application to the board.

Composition

55(2) The board is to consist of at least three, but not more than five, members knowledgeable on matters related to this Act, and the minister must designate one of the members of the board as its chair.

Remuneration and expenses

55(3) The minister may determine the amount of any remuneration and reimbursement for expenses that may be paid to members of the board.

Notice of hearing date

56(1) Upon receiving an application under

section 54, the subsurface rights compensation board must

(

a) fix a date, time and place for hearing the matter; and

(

b) at least 14 days before the hearing, give written notice of the hearing to the director, the affected person and the holder of or applicant for a carbon storage licence.

Director has standing before board

56(2) The director has standing to appear before the board as a party to the matter and may be represented by counsel.

Procedure governed by rules

56(3) Subject to the regulations, the board may adopt rules respecting the conduct of a hearing.

Right to present evidence and make submissions

56(4) At the hearing, the board must give the parties an opportunity to be heard, present evidence and make submissions.

Oral hearings not required

56(5) Subject to the board's rules of procedure and the regulations, the board may conduct a written hearing in any circumstances in which the board is required to hold a hearing.

Hearings and record to be public

56(6) Subject to subsection (7), hearings conducted by the board must be open to the public and the record of a hearing before the board must be made available to the public on request.

Confidential hearings

56(7) The board may hold all or part of an oral hearing in camera or receive written evidence or submissions in confidence if the board is of the opinion that

(

a) commercially sensitive information or intimate financial or personal matters may be disclosed during the hearing; and

(

b) the desirability of avoiding disclosure of the information or matters outweighs the desirability of adhering to the principle that hearings be open to the public.

Electronic hearings

56(8) The board may conduct an oral hearing partially or completely by electronic means if those means enable

(

a) the participants to hear and speak to each other; and

(

b) the public to hear the proceedings.

Rules of evidence

56(9) The board is not bound by the rules of evidence that apply to judicial proceedings.

Evidence Act powers

56(10) The members of the board have the powers of commissioners under

Part V of The Manitoba Evidence Act .

Combined hearings

56(11) For certainty, the board may hear and determine one or more matters relating to an application for or an application to amend a carbon storage licence at the same time.

Order of subsurface rights compensation board

57(1) After hearing a matter, the subsurface rights compensation board must issue an order

(

a) fixing the amount of compensation payable in relation to an affected interest, calculated in accordance with the regulations; or

(

b) declaring that no compensation is payable in relation to an affected interest.

The applicant for or the holder of the carbon storage licence must pay compensation as ordered and in accordance with the regulations.

When compensation is not payable

57(2) When issuing the compensation order, the board must declare that no compensation is payable in relation to an affected interest if

(

a) the affected person does not provide evidence or make a submission to the board; or

(

b) the board is satisfied that the storage of captured carbon as authorized under this Act will not have a material adverse impact on the affected person's interest.

Notice of order

57(3) The board must notify the parties in writing of its order.

Decision is final

57(4) The compensation order is final and binding.

Payment in trust for affected person

58(1) If the identity or whereabouts of an affected person cannot be ascertained, the person required to pay the compensation under subsection 57(1) must pay the compensation, in accordance with the regulations, to the Minister of Finance to be held in trust for the affected person.

Application to court

58(2) Not later than five years after compensation is paid in trust to the Minister of Finance under subsection (1), a person claiming to be the affected person in respect of whom compensation was paid to the Minister of Finance, or the legal representative of the person or their estate, may apply to the court for an order respecting their entitlement to the compensation. The application must name the director as a respondent.

Court to order payment of trust money

58(3) If the court determines that the applicant is entitled to the compensation, the court must

(

a) allow the government to be paid, out of the compensation, its reasonable costs incurred in relation to the application; and

(

b) direct the Minister of Finance to pay the balance to the applicant.

Government not liable for court costs

58(4) The government is not liable for the costs of the applicant in relation to the application.

Trust money reverts to government

58(5) Compensation held in trust for an affected person reverts to the government five years after the compensation was paid in trust to the Minister of Finance if

(

a) the identity or whereabouts of the affected person remain unknown to the director; and

(

b) the court has not previously directed that amounts be paid under subsection (3) and no application under subsection (2) is pending.

EFFECT OF LICENCE ON OTHER

ACTIVITIES

Prohibited activities in storage area

59(1) Subject to subsection (2) and the regulations, the following activities are prohibited in a storage area:

(

a) drilling or hydraulic fracturing below the base of usable groundwater;

(

b) mining or extracting a mineral from the subsurface;

(

c) injecting anything into the subsurface below the base of usable groundwater;

(

d) blasting on or below the surface of the ground.

Exceptions

59(2) Subsection (1) does not apply to an activity

(

a) authorized by or under this Act;

(

b) commenced before the day that

(

i) the carbon storage licence was issued, or

(ii) the area in which the activity occurs was added to the storage area; or

(

c) to which the director has consented in accordance with subsection (3).

Director may consent

59(3) On receipt of an application in the approved form, the director may consent, in writing, to a proposed activity within a storage area if the director is satisfied that the proposed activity is compatible with the permanent storage of captured carbon in the area's carbon repository.

Other activities subject to carbon storage

59(4) A licence, permit, approval or authorization that would authorize an activity prohibited by subsection (1) must not be given or issued under any other enactment without the prior consent of the director under subsection (3).

Incompatible activity

59(5) For certainty, a licence, permit, approval or authorization that is given or issued contrary to subsection (4) is void.

Conflict

59(6) If this

section conflicts with a provision in another Act by or under which an activity prohibited by subsection (1) is licensed, permitted, approved or authorized, this

section prevails.

REAL PROPERTY REGISTRATIONS

Licence runs with the land

60(1) A carbon storage licence creates an interest in land and once a registration is made under subsection (2), the interest runs with the land included in the storage area.

Registration

60(2) When land is included in or added to a storage area, the director must file, with the district registrar of the appropriate land titles office, against the land,

(

a) if the land is under The Real Property Act , a caveat with a copy of the prescribed documents attached; or

(

b) if the land is under The Registry Act , a certified copy of each prescribed instrument.

Costs of registrations

60(3) The storage licensee is responsible for paying the costs of the registration and must pay the costs to the director on demand.

Disposition of caveat

60(4) Despite any other enactment, including

section 150 and subsections 169.2(1) and 176(1) of The Real Property Act , a caveat filed under this

section must not be vacated or otherwise disposed of without the prior written consent of the director.

Vacating under Registry Act

60(5) Despite any other enactment, a person must not, without the prior written consent of the director, discharge or provide a release or a quit claim, or apply to the court for an order to vacate the registration of an instrument, in relation to an instrument registered under The Registry Act under this section.

Registration after consent

60(6) If the director consents to a proposed activity under subsection 59(3) in relation to land in a storage area, the director must file, with the district registrar of the appropriate land titles office, against the land,

(

a) if the land is under The Real Property Act , a caveat with a copy of the prescribed documents attached; or

(

b) if the land is under The Registry Act , a certified copy of each prescribed instrument.

District registrar must register

60(7) The district registrar must register each

(

a) caveat filed under this section, if it is in a form approved by the Registrar-General and signed by the director; and

(

b) prescribed instrument filed under this section.

PART 5

ADMINISTRATION AND ENFORCEMENT

DIRECTOR

Appointment of director

61(1) A director is to be appointed under

Part 3 of The Public Service Act to administer and enforce this Act.

Director may delegate

61(2) The director may delegate to an employee of the government, in writing, any of the powers, duties or functions of the director under this Act, other than the power to issue a compliance order under

section 69 or to issue an administrative penalty under

section 74.

Limitations

61(3) A delegation is subject to the limitations and conditions set out in the delegation.

Director retains powers and duties

61(4) The director may continue to exercise a power or perform a duty or function that the director has delegated.

Forms

62 The director may approve forms for use in the administration of this Act and may require the forms to be used.

Director may require records

63(1) The director may require a person to provide records or copies of records that the person is required to make and maintain under this Act for the purpose of

(

b) verifying the accuracy or completeness of a record or other information provided to the director; or

(

c) performing any other duty or function that the director considers necessary or advisable in the administration or enforcement of this Act.

Duty to provide records

63(2) The person required to provide records or copies of records under subsection (1) must do so.

Use of performance security

64 The director must deal with the prescribed performance security provided by an applicant for or the holder of a licence or permit in accordance with the regulations.

REGISTRY OF LICENCES AND PERMITS

Registry of licences and permits

65 The director must establish and maintain a public registry, published on a government website, containing

(

a) the name of each holder of a reservation, licence or permit issued under this Act;

(

b) the type of reservation, licence or permit issued to a holder;

(

c) a description of any area or site specified in a reservation, licence or permit;

(

d) a

summary of the terms or conditions imposed on a reservation, licence or permit;

(

e) the day on which a reservation, licence or permit was issued and the day on which it expires, if any; and

(

f) any other prescribed information.

INSPECTIONS

Appointment of inspectors

66(1) The minister may appoint any person as an inspector for the purpose of this Act.

Designating inspectors

66(2) The minister may designate a person or class of persons employed by the government as inspectors for the purpose of administering and enforcing this Act.

Identification

66(3) An inspector exercising a power under this Act must produce identification on request.

Director has inspection powers

66(4) The director has the powers of an inspector for the purpose of this Act.

General inspection powers

67(1) An inspector may, at any reasonable time and when reasonably required to administer this Act or to determine compliance with it,

(

a) enter and inspect

(

i) any land that is described in a licence or permit issued under this Act,

(ii) any other land where the inspector considers that entry and inspection are necessary to monitor the storage of captured carbon,

(iii) any business premises of any person who holds a licence or permit, or who formerly held a licence or permit, or

(iv) any other premises where the inspector has reasonable grounds to believe that records relevant to the administration and enforcement of this Act are maintained;

(

b) take and examine samples of any material, product or thing;

(

c) carry out tests or examinations in relation to a well or the land where a well is located;

(

d) use or operate any equipment or require it to be used or operated as directed by the inspector;

(

e) take photographs or videos or otherwise make records;

(

f) require any person to provide information or produce any record for examination, auditing or copying; and

(

g) take any other steps the inspector considers necessary.

Assistance

67(2) An inspector may be accompanied by one or more persons who may assist the inspector in carrying out the inspection.

Authority to enter private dwelling

67(3) Despite subsection (1), an inspector must not enter a private dwelling except with the consent of the owner or occupant or under the authority of a warrant.

Warrant to enter and inspect private dwelling

67(4) On application by an inspector, a justice may, at any time, issue a warrant authorizing the inspector and any other person named in the warrant to enter and inspect a private dwelling if the justice is satisfied that there are reasonable grounds to believe that

(

a) entry to the dwelling is necessary for the purpose of administering or determining compliance with this Act; and

(

b) entry to the dwelling has been refused or will be refused.

Application without notice

67(5) A warrant under this

section may be issued upon application without notice.

Assistance to be given

68(1) The owner or other person in charge of the land or premises being inspected or having custody or control of any relevant records or things must

(

a) produce or make available to the inspector the records and things that the inspector requires for the inspection;

(

b) provide any assistance or additional information, including personal information, that the inspector reasonably requires to perform the inspection; and

(

c) answer any questions related to the purpose of the inspection that are asked of them by the inspector.

Electronic records

68(2) In order to inspect records that may be accessed electronically at the place being inspected, the inspector may require the person in charge of the premises or having custody or control of the relevant records to produce the records in the form of a printout or to produce them in an electronically readable format.

Inspector may make copies

68(3) An inspector may use equipment at the place being inspected to make copies of relevant records and may remove the copies from the place for further examination.

Inspector may remove records to make copies

68(4) If an inspector is not able to make copies of records at the place being inspected, the inspector may remove them to make copies, but must give a receipt to the person from whom they were taken and return the originals as soon as practicable.

Admissibility of copies

68(5) A copy of a record made under this

section and certified to be a true copy by an inspector is, in the absence of evidence to the contrary, admissible in evidence in any proceeding or prosecution as proof of the original record or document and its contents.

Receipt and return of samples

68(6) If an inspector takes samples of any material, product or thing, the inspector must give a receipt to the person from whom they were taken and, after the samples have served the purpose for which they were taken, must, on request, return the samples to the person.

COMPLIANCE ORDERS

Order to comply

69(1) The director may issue a written compliance order directed to a person if, in the director's opinion, the person is contravening or has contravened a provision of this Act.

Contents of order

69(2) The order must be in writing and must

(

a) name the person to whom the order is directed;

(

b) state the reasons for the order;

(

c) specify the action to be taken, stopped or modified;

(

d) specify the time period within which the person must comply with the order;

(

e) be dated the day on which the order is issued; and

(

f) state that the person may appeal the order under

Part 6 (Appeals).

Director must give copy of order

69(4) The director must give the person named in the order a copy of the order.

Immediate effect

70(1) A compliance order is effective immediately.

Director may rescind order

70(2) The director may rescind the order at any time.

Duty to comply

71 A person named in a compliance order must comply with the order within the time specified in the order.

Director may take over well

72(1) If the holder of a well licence fails to comply with a compliance order issued with respect to the well, the director may take over the well for such time and take such steps as the director considers necessary or advisable to ensure compliance with the order.

Director may take steps to effect compliance

72(2) While a well is under the director's supervision and control, the director may

(

a) do or cause to be done anything that the director considers necessary to bring the well and its operation into compliance with the order; and

(

b) exercise any rights that the holder may exercise in order to bring the well and its operation into compliance with the order and authorize anyone else doing anything under clause (

a) to exercise such rights.

Holder responsible for costs and expenses

72(3) The holder of the well licence in respect of a well that is taken over under subsection (1) is liable to the government for the costs and expenses incurred by the government for

(

a) the purpose of taking control of the well; and

(

b) anything done under subsection (2) to bring the well and its operation into compliance with the order.

Demand for payment of costs and expenses

72(4) The director may, by written notice to the holder from time to time, demand payment of the costs and expenses referred to in subsection (3).

Payment

72(5) The holder required to pay an amount under this

section must pay it within 30 days after the director gives notice of the demand.

Court-ordered compliance

73(1) If a person fails to comply with a compliance order issued by the director under

section 69, the director may apply to the court for an order directing compliance with the compliance order. An application may be made without notice or with notice if required by the court.

Order

73(2) The court may order compliance on any conditions that the court considers appropriate and may make any other order it considers necessary to ensure compliance.

ADMINISTRATIVE PENALTIES

Administrative penalty

74(1) The director may issue a notice in writing requiring a person to pay an administrative penalty if the person contravenes a compliance order issued by the director under

section 69, a court-ordered compliance order under

section 73 or a prescribed provision of this Act.

Amount of penalty

74(2) The amount of the administrative penalty for each contravention is the prescribed amount, which must not exceed $5,000.

Contravention for more than one day

74(3) If a contravention continues for more than one day, each day that the contravention continues is deemed to be a separate contravention for the purpose of subsection (2).

Notice

74(4) The notice of administrative penalty must state

(

a) the name of the person required to pay the penalty;

(

b) a description of the order or provision that the person contravened;

(

c) the amount of the penalty, determined in accordance with the regulations;

(

d) when and how the penalty must be paid; and

(

e) that the person may appeal the penalty under

Part 6 (Appeals).

Giving the notice

74(5) The notice of administrative penalty must be given to the person required to pay the penalty.

Payment

75(1) A person required to pay an administrative penalty must pay it within 30 days

(

a) after the notice is given to the person; or

(

b) if the penalty is appealed under

Part 6 (Appeals) and the penalty is varied or upheld on appeal, after the appeal is decided.

No offence to be charged if penalty is paid

75(2) The person who pays an administrative penalty in respect of a contravention must not be charged with an offence under

section 84 respecting the contravention unless it continues after the penalty is paid.

PART 6

APPEALS

Matters that may be appealed

76(1) A person who is given notice of a matter under any of the following provisions of this Act may appeal the matter to an appeal board:

(

a) section 21 (revised plans and amending carbon storage licences);

(

b) section 25 (closing carbon repositories);

(

c) section 34 (abandoning wells);

(

d) section 42 (licences and permits);

(e) subsection 74(4) (administrative penalty).

Compliance orders may be appealed

76(2) A person who is given a compliance order of the director under

section 69 may appeal the order.

Decisions not subject to appeal

76(3) Despite subsection (1), no appeal lies from a decision to refuse to issue or extend, or to cancel or suspend, a reservation, licence or permit issued under this Act if the holder or applicant fails to pay when due any

(

a) fee or penalty owed under this Act; or

(

b) costs or expenses for which the director has demanded payment under subsections 60(3) (costs related to registrations) and 72(4) (costs and expenses incurred in taking over wells).

How to appeal

76(4) The appeal must be made by filing a notice of appeal with the minister within 30 days after the notice referred to in subsection (1) or the compliance order, as the case may be, is given to the person. As soon as practicable after filing the notice of appeal, the appellant must give a copy of it to the director.

Appeal requirements

76(5) The notice of appeal must be made in the approved form and include a written statement that sets out the appellant's position with respect to the matter being appealed.

Director is a party

76(6) The director is a party to the appeal.

Stay of decision or order

76(7) The appeal does not stay the decision, order, term or condition, or the cancellation or suspension, pending the outcome of the appeal unless the appeal board orders a stay.

Minister to appoint appeal board

77(1) Within 60 days after a notice of appeal is filed under subsection 76(4), the minister must appoint an appeal board and give it a copy of the notice.

Composition

77(2) The board is to consist of at least three, but not more than five, members knowledgeable on matters related to this Act, and the minister must designate one of the members of the board as its chair.

Remuneration and expenses

77(3) The minister may determine the amount of any remuneration and reimbursement for expenses that may be paid to members of the board.

Appeal hearing

78(1) Unless the appeal is withdrawn or the parties otherwise agree, the appeal board must hear the appeal as soon as practicable after receiving the appeal notice and in accordance with the regulations.

Procedure governed by rules

78(2) Subject to the regulations, the board may adopt rules respecting the conduct of a hearing.

Right to present evidence and make submissions

78(3) At the hearing, the board must give the parties an opportunity to be heard, to present evidence and to make submissions.

Oral hearings not required

78(4) Subject to the board's rules of procedure and the regulations, the board may conduct a written hearing in any circumstances in which the board is required to hold a hearing.

Electronic hearings

78(5) The board may conduct an oral hearing partially or completely by electronic means if those means enable the participants to hear and speak with each other.

Rules of evidence

78(6) The board is not bound by the rules of evidence that apply to judicial proceedings.

Evidence Act powers

78(7) The board members have the powers of commissioners under

Part V of The Manitoba Evidence Act .

Decision of appeal board

79(1) The appeal board may, by order,

(

a) confirm, vary or rescind the director's decision or order; or

(

b) refer the matter back to the director for further consideration in accordance with the appeal board's direction.

Notice of decision

79(2) The appeal board must give the appellant and the director notice of its decision with written reasons.

PART 7

GENERAL

Debt due to government

80(1) Each of the following amounts is a debt due to the government if it is not paid when it is due:

(

a) a fee, other than an application fee, payable under

section 46;

(

b) the amount of any costs and expenses demanded under subsection 60(3) or 72(4);

(

c) the amount of an administrative penalty imposed under subsection 74(1).

Certificate registered in court

80(2) The director may certify a debt referred to in subsection (1) or any part of the debt that has not been paid. The certificate may be registered in the court and may be enforced as if it were a judgment of the court.

Information is confidential

81(1) Subject to subsection (2), a person who obtains records or other information that is submitted in accordance with an application or request that is made or an obligation that is imposed under this Act must not disclose the records or information to any person or entity other than

(

a) for the purpose of administering this Act;

(

b) for the purpose of a prosecution; or

(

c) if required by law.

Application

81(2) Despite any other enactment, the prohibition in subsection (1) does not apply to the following:

(

a) a disclosure of information that is publicly available;

(

b) a disclosure of information that is provided in support of an application made under this Act unless the director orders otherwise;

(

c) a disclosure of information, including commercially sensitive information, by the director in accordance with the regulations.

Protection from liability

82 No action or proceeding may be brought against the government, the minister, the director, an inspector or any other person acting under the authority of this Act for anything done or omitted to be done, in good faith, in the exercise or intended exercise of a power or duty under this Act.

Service

83(1) Subject to the regulations, a notice, order or other document under this Act is sufficiently given or served if it is

(

a) delivered personally;

(

b) sent by registered mail, or by another service that provides the sender with proof of delivery, to the intended recipient at their last address appearing in the records of the sender of the notice, order or other document;

(

c) given or served in a manner specified in an order made under subsection (2); or

(

d) given or served in any other prescribed manner.

Substitutional service

83(2) If a person who is permitted or required by or under this Act to give or serve a notice, order or other document to another person is unable, after reasonable efforts, to locate the intended recipient or their address or to give it to them, the person may apply to the court, without notice, for an order authorizing the notice, order or other document to be given or served as directed by the court.

OFFENCES AND PENALTIES

Offences

84(1) A person who does any of the following commits an offence:

(

a) contravenes a provision of this Act;

(

b) contravenes a provision of the regulations, the contravention of which is stated in the regulations to be an offence;

(

c) hinders, obstructs or interferes with an inspector conducting an inspection, refuses to answer questions on matters relevant to the inspection or provides the inspector with information on matters relevant to the inspection that the person knows to be false or misleading.

Continuing offence

84(2) When a contravention of this Act continues for more than one day, the person is guilty of a separate offence for each day the offence continues.

Liability of corporate officers and directors

84(3) If a corporation commits an offence under this Act, a director or officer of the corporation who authorized, permitted or acquiesced in the commission of the offence is also guilty of an offence, whether or not the corporation has been prosecuted or convicted.

Time limit for prosecution

84(4) The deadline for beginning a prosecution under this Act is one year after the date on which the director has reasonable and probable grounds to believe that an offence has been committed.

Penalty for individuals

85(1) An individual who is guilty of an offence under

section 84 is liable on conviction to a fine of not more than $50,000, or to imprisonment for a term of not more than six months, or both.

Penalty for other persons

85(2) A person, other than an individual, that is guilty of an offence under

section 84 is liable on conviction to a fine of not more than $500,000.

Convicted person must still comply with order

86 A person's conviction for the offence of failing to comply with an order does not relieve them from having to comply with the order. In addition to imposing a fine, the convicting judge may require the person to do any work or action to comply with the order within the time specified by the judge.

REGULATIONS

Regulations

87(1) The Lieutenant Governor in Council may make regulations

(

a) specifying circumstances that are excluded from the application of this Act;

(

b) respecting reservations, licences and permits under this Act, including regulations respecting

(

i) the application for a reservation, licence or permit and, in the case of a carbon storage licence, an application to amend the licence,

(ii) the qualifications for an applicant for a reservation, licence or permit or the extension or renewal of a reservation, licence or permit, and requirements to be met by them,

(iv) the insurance that must be obtained by the holder of a reservation, licence or permit;

(

c) prescribing the fees payable under this Act, including application fees and annual fees, or a method of calculating them, and the manner and time of payment;

(

d) prescribing areas that must not be included in the area specified in an exploration reservation or a carbon storage licence;

(

e) respecting the performance security to be provided by an applicant for or holder of a reservation, licence or permit, including regulations respecting

(

i) the form of security, including requiring that the security be provided in the form of a letter of credit, a bond or other prescribed form,

(ii) the terms, conditions and amount of the security,

(iii) the refund, return or forfeiture of the security, and

(iv) the disposition of proceeds of forfeiture;

(

f) specifying the rights or consents that an applicant for a test well licence must obtain;

(

g) respecting storage resource assessments, risk management plans, monitoring, measurement and verification plans and closure plans, including

(

i) their form and content,

(ii) the manner in which they must be prepared and submitted to the director, and

(

h) respecting the issuance of closure certificates;

(

i) respecting wells and well licences, including regulations respecting

(

i) activities that may be conducted under a well licence,

(ii) the naming of wells and the changing of names of wells,

(iii) the abandonment of wells and certificates of abandonment, and

(

j) respecting records and reports, including regulations

(

i) prescribing records to be maintained and how and for how long they are to be maintained, and

(ii) prescribing the form and content of records and reports and how and when they are to be submitted to the director;

(

k) respecting samples, tests and surveys to be taken and submitted to the director under subsection 45(1), including prescribing the samples, tests and surveys to be taken and how and when they are to be taken and submitted;

(

l) defining "base of usable groundwater" and "pipeline" for the purpose of

section 48;

(

m) respecting an authorization under

section 50 to enter land along a proposed pipeline route;

(

n) respecting the requirement in

section 52 to give notice to affected persons, including prescribing persons or classes of persons to whom the notice must be given or is not required to be given;

(

o) prescribing the information to be included in a notice to affected persons under

section 52 or in a compensation hearing waiver under

section 53;

(

p) prescribing a period after which an application may be made under subsection 54(1) for a compensation order;

(

q) respecting subsurface rights compensation boards, including regulations respecting

(

i) the procedure and rules governing hearings of a board, and

(ii) how the amount of compensation is to be determined;

(

r) respecting the payment of compensation in relation to an affected interest, including prescribing rules or modifying the application of this Act in relation to the determination and payment of compensation when the ownership of an affected interest changes after a person applies for a carbon storage licence, or an amendment to enlarge the storage area specified in a carbon storage licence, and before the licence is issued or amended;

(

s) prohibiting and exempting activities in a storage area for the purpose of subsection 59(1);

(

t) prescribing the documents and instruments to be filed under

section 60;

(

u) prescribing the information that is to be contained in the public registry of reservations, licences and permits under

section 65;

(

v) respecting administrative penalties for contraventions of this Act, including prescribing

(

i) provisions of this Act for which a notice of administrative penalty may be issued, and

(ii) the amount or maximum amount of an administrative penalty or the manner in which the amount or maximum amount of a penalty is to be determined;

(

w) respecting appeal boards, including regulations respecting the procedure and rules governing hearings of a board;

(

x) respecting the information that may be disclosed under subsection 81(2), and the timing and manner in which it may be disclosed;

(

y) specifying one or more provisions of the regulations and stating that a contravention of the provision is an offence;

(

z) respecting transitional matters relating to persons who, on the coming into force of this Act, hold licences or permits under other enactments;

(aa) defining any word or expression that is used but not defined in this Act;

(bb) prescribing anything referred to in this Act as being prescribed;

(cc) respecting any matter the Lieutenant Governor in Council considers necessary or advisable for the administration of this Act.

General or specific application

87(2) A regulation under this Act may

(

a) be general or specific in its application; and

(

b) establish classes and may provide differently for different classes.

Incorporation of codes and standards

87(3) A regulation under this Act may adopt or incorporate by reference, with any changes that the Lieutenant Governor in Council considers appropriate, all or part of a code, standard, guideline or procedure, as amended before or after the making of the regulation and relating to the subject matter of this Act, whether the code, standard, guideline or procedure is promulgated by any governmental authority or by any association or other body of persons.

PART 8

RELATED AND CONSEQUENTIAL AMENDMENTS

The Contaminated Sites Remediation Act

C.C.S.M. c. C205 amended

88 Subsection 3(3) of The Contaminated Sites Remediation Act is amended by adding the following after clause (c):

(

d) The Captured Carbon Storage Act .

The Crown Lands Act

C.C.S.M. c. C340 amended

89 Clause 5(1)(

g) of The Crown Lands Act is amended by striking out " a pipeline for the transmission of oil or natural gas " and substituting " a pipeline for the transmission of oil, natural gas or carbon dioxide ".

The Forest Act

C.C.S.M. c. F150 amended

90(1) The Forest Act is amended by this section.

90(2) The definition "well" in subsection 1(1) is amended by adding "The Captured Carbon Storage Act or " after " as defined in ".

90(3) The following is added after subsection 20(1):

Timber cutting right subject to carbon storage

20(1.1) Every timber cutting right is subject to a carbon storage licence issued under The Captured Carbon Storage Act within or under lands that are subject to the timber cutting right and the holder of the carbon storage licence has the right to secure, use and hold possession of such land as is necessary for an activity authorized by a licence or permit under that Act, including the right to open any roads necessary in connection with such operations.

The Gas Pipe Line Act

C.C.S.M. c. G50 amended

91 The definition "gas pipe line" in

section 1 of The Gas Pipe Line Act is amended by replacing everything after clause (

c) with the following:

but does not include

(

d) a facility as defined in

section 48 of The Captured Carbon Storage Act or a pipeline as defined by regulation under that Act, and

(

e) a flow line or pipeline as those terms are defined in The Oil and Gas Act ;

The Groundwater and Water Well Act

C.C.S.M. c. G110 amended

92 The Groundwater and Water Well Act is amended by adding the following after clause 5(b):

(b.1) a well or test hole to which The Captured Carbon Storage Act applies;

The Mines and Minerals Act

C.C.S.M. c. M162 amended

93(1) The Mines and Minerals Act is amended by this section.

93(2) The definition "well" in subsection 1(1) is amended by adding "The Captured Carbon Storage Act or " after " as defined in ".

93(3) Subsection 162(1) is amended by striking out " oil, gas or petroleum product " and substituting " oil, gas, petroleum product or carbon dioxide ".

The Oil and Gas Act

C.C.S.M. c. O34 amended

94 The definition "oil and gas facility" in subsection 1(1) of The Oil and Gas Act is amended by striking out " oil, gas, helium or water " and substituting " oil, gas or helium or water produced from a well ".

The Peatlands Stewardship Act

C.C.S.M. c. P31 amended

95(1) The Peatlands Stewardship Act is amended by this section.

95(2) Subsection 29(1) is replaced with the following:

Peat harvesting rights subject to other rights and licences

29(1) A peat harvesting licence, with respect to the area of Crown peatland specified in the licence, is subject to any other enactment dealing

(

a) with or affecting the disposal of mines and minerals or oil and gas rights on, in or under the area; and

(

b) with the permanent storage of captured carbon under the area.

95(3) Subsection 29(2) is amended

(

a) by replacing the

section heading with " Land and roads "; and

(

b) in the part before clause (a), by striking out " or oil and gas rights " and substituting " , oil and gas rights or a carbon storage licence ".

95(4) Subsection 29(3) is amended by adding the following definition:

"carbon storage licence" means a carbon storage licence as defined in The Captured Carbon Storage Act . (« permis de stockage de carbone »)

The Public Utilities Board Act

C.C.S.M. c. P280 amended

96 Subsection 2(2) of The Public Utilities Board Act is replaced with the following:

Pipelines under other Acts

2(2) Despite subsection (1), the following are not a public utility:

(

a) a pipeline as defined by regulation under The Captured Carbon Storage Act ;

(

b) a pipeline to which The Oil and Gas Act applies unless it is declared under clause (4)(

b) to be a public utility.

The Real Property Act

C.C.S.M. c. R30 amended

97(1) The Real Property Act is amended by this section.

97(2) Subsection 45(5) is amended by striking out " and " at the end of clause (k), adding " and " at the end of clause (

l) and adding the following after clause (l):

(

m) caveats filed under

section 60 of The Captured Carbon Storage Act .

97(3) Subclause 111(3)(a)(vii) is amended by striking out " pipeline, as defined in The Oil and Gas Act" and substituting " pipeline, as defined by regulation under The Captured Carbon Storage Act or in The Oil and Gas Act".

97(4) Subsection 119(3) is amended by striking out " a pipeline as defined in The Oil and Gas Act" and substituting " a pipeline as defined by regulation under The Captured Carbon Storage Act or in The Oil and Gas Act".

The Surface Rights Act

C.C.S.M. c. S235 amended

98(1) The Surface Rights Act is amended by this section.

98(2)

Section 1 is amended

(

a) by adding the following

definitions:

"captured carbon" and "carbon repository" have the same meaning as in The Captured Carbon Storage Act ; (« carbone capté » et « dépôt de carbone »)

"carbon storage facility" means a facility as defined in

section 48 of The Captured Carbon Storage Act ; (« installation de stockage de carbone »)

(

b) by replacing the

definitions "operator" and "surface rights" with the following:

"operator" means a person who is authorized under The Captured Carbon Storage Act or The Oil and Gas Act to conduct any operation for

(

a) the purpose of exploring for a mineral or for a carbon repository, or

(

b) drilling a well for the production of a mineral or for a purpose related to storing captured carbon,

and includes any person who has the control and management of a well; (« exploitant »)

"surface rights" means

(

a) the land or estate or interest in land, including a right of entry but not including oil and gas rights within the meaning of The Oil and Gas Act , that an operator requires for the purpose of

(

i) exploring for, developing, producing or transporting a mineral, or

(ii) exploring for a carbon repository or undertaking activities related to storing captured carbon in a carbon repository,

(

b) the right to establish, install or operate any machinery, equipment or apparatus for use for or in connection with the drilling, completion or producing or injecting operations of a well on a well site, or

(

c) the right or obligation to condition, maintain or restore the surface of the land where the land has been or is being held incidental to or in connection with

(

i) a purpose referred to in clause (a), or

(ii) the laying, constructing, operating, maintaining or servicing of a battery site, service line, carbon storage facility, roadway or power line; (« droits de surface »)

(

c) in the definition "power line", by striking out everything after " incidental to " and substituting the following:

(

a) the drilling for, producing or recovering a mineral, or

(

b) the exploring for or injecting captured carbon into a carbon repository;

(

d) in the definition "service line", by adding " or injecting " after " with the producing ";

(

e) in the definition "well", by adding " by regulation under The Captured Carbon Storage Act or " after " as defined "; and

(

f) in the definition "well site", by striking out " or producing " and substituting " producing or injecting ".

98(3)

Section 3 is replaced with the following:

Crown bound

3 This Act applies to the Crown with respect to

(

a) the exploration for or development or production of a mineral; and

(

b) the exploration for carbon repositories and the injection of captured carbon into a carbon repository.

98(4) Subsection 4(1) is amended

(

a) by striking out " and any provision of The Oil and Gas Act" and substituting " and any provision of The Captured Carbon Storage Act or The Oil and Gas Act"; and

(

b) by striking out " thereunder " and substituting " under those Acts ".

98(5) Subsection 25(5) is amended

(

b) by adding " or any other longer period prescribed by regulation " at the end.

98(6) Subsection 34(1) is amended by adding " or any longer period prescribed by regulation, " after " a right of entry upon land, ".

98(7)

Section 35 is replaced with the following:

Abandonment or surrender of surface rights

35 An operator who proposes to abandon or surrender all or any part of a surface right, whether it was obtained by way of agreement with the owner or occupant or by an order of the board, must apply for a certificate of abandonment in accordance with the provisions of

(

a) The Captured Carbon Storage Act if the surface right relates to a well governed by that Act; or

(

b) The Oil and Gas Act if the surface right relates to a well or oil and gas facility governed by that Act.

98(8)

Section 36 is amended by striking out " the provisions of The Oil and Gas Act" and substituting " the applicable provisions of The Captured Carbon Storage Act or The Oil and Gas Act".

98(9) Clause 40(

b) is amended by striking out " the provisions of The Oil and Gas Act" and substituting " the applicable provisions of The Captured Carbon Storage Act or The Oil and Gas Act".

98(10) The following is added after clause 68(m):

(m.1) prescribing a period of time for the purpose of subsection 25(5) or 34(1);

PART 9

C.C.S.M. REFERENCE AND COMING INTO FORCE

C.C.S.M. reference

99 This Act may be referred to as

chapter C19 of the Continuing Consolidation of the Statutes of Manitoba .

Coming into force

100 This Act comes into force on a day to be fixed by proclamation.

Explanatory Note

The Captured Carbon Storage Act establishes a regulatory scheme to enable the safe storage of captured carbon dioxide in geological formations in Manitoba.

Part 2 clarifies that the pore space under the surface of the land, including pore space in which captured carbon may be stored, belongs to the province.

Part 3 sets out a licensing scheme for subsurface carbon storage projects.

A person may reserve an area to explore for geological formations suitable for storing captured carbon ("carbon repositories") by obtaining an exploration reservation.

To explore for carbon repositories within a reserved area, a person may conduct geophysical exploration, which requires a permit, or drill one or more test wells, which requires a well licence.

Having obtained information about a carbon repository, a person may apply for a carbon storage licence for a specified area of land (the "storage area"). The licence allows for the storage of captured carbon in a carbon repository within the storage area. But the licence holder must also obtain a well licence for each injection well or other type of well to be drilled or operated in the storage area.

Part 4 governs surface and subsurface rights in relation to storage areas. A carbon storage licence and a well licence are conditional on the applicant having the necessary surface and subsurface rights.

The Surface Rights Act applies to allow entrance to land to undertake a storage project, to require restoration of the surface of the land and to ensure that owners or occupants of the land are compensated for any losses that they suffer related to the storage project.

When a carbon storage licence is issued, certain subsurface activities within its storage area are prohibited in order to prevent the escape of stored carbon. Holders of subsurface rights may be compensated for any losses they suffer related to the storage project. The amount of compensation payable may be determined by agreement or by a subsurface rights compensation board.

When a parcel of land is included in a storage area, its inclusion in the storage area is registered in the appropriate land titles office.

Under

Part 5, a director is appointed to administer and enforce the Act. Compliance and enforcement measures include the ability to carry out inspections, issue orders, impose administrative penalties and prosecute contraventions.

Under

Part 6, appeals from decisions about reservations, licences, permits, orders and administrative penalties may be made to an appeal board.

Related and consequential amendments are made to various natural resource and property Acts.

Document details

Collection	Manitoba — Debates (Hansard)
Citation	43-1 b031e.php
Type	bill
Volume / chapter	43 1 b031e.php
Language	en
Format	html
Source	PROVINCIAL
Identifier	19c8e057fb14acbfad957ce18c3cec6bce79a07b

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