Bill 96 — First Session, 17Th Legislature, 21 Elizabeth Ii the Legislative Assembly of Alberta Bill 96 the Oil and Gas Conservation Amendment Act, 1972 Honourabe (Legislature 17, Session 1)

L17 S1 5077

Alberta — Bills

1972 Bill 96 First Session, 17th Legislature, 21 Elizabeth II THE LEGISLATIVE ASSEMBLY OF ALBERTA BILL 96 The Oil and Gas Conservation Amendment Act, 1972 HONOURABE MR. DICKIE First Reading . . Second Reading . Third Reading ........... . Printed by L. S. Wall, Queen's Printer, Edmonton

BILL 96 1972 THE Olt AND GAS CONIS,ERVATION AMENDMENT ACT, 1972 (Assented to , 1972) HER MAJESTY, by and with the advi0e and consent of the Legislative Assembly of Alberta, enacts as foHo'vs: 1. The Oil and Gas Conservation Act is hereby amended.

Section 2, subsection (1), clause. 46 is amended by striking out the words "to evaluate rock or solid inorganic mineral" and by substituting the words "to discover or evaluate a solid inorganic mineral". 3.

(1) Section 18, subsection (4) is amended by striking out the words "and The Turner VaHey Unit Operations Act" and by substituting the words ", The Turner Valley Unit Operations Act and The Pipe Line Act".

(2) This

section applies to the fiscal year commencing on April 1, 1972 and subsequent fiscal years. 4. The heading of

Part 3 is amended by striking out the words IIOr: THE BOIARDII. 5. The following

section is added aft,e.r

section 20: 20.~

(1) Any order of the Lieutenant Governor in Council under this Act may be made subj ect to any terms or conditions that the Lieutenant Governor in Council may prescribe.

(2) An order of the Lieutenant Governor in Council granting any approval or authorization under this Act and made before the commencement of this subsection is not invalid by reason only of the fact that the order was made subject to any terms or conditions.

(3) Where the holder of an approval contravenes or fails to comply with any term or 'condition contained in an order of the Li'eutenant Governor in Council approving or authorizing the Board's approval,

Explilnatory Notes 1. This Bill will amend

chapter 267 of the Revised Statutes of Alberta 1970.

Section 2, subsection (1), clause 46 presently reads: 2.

(1) In this Act, 46. "well" means an orifice in the ground completed or being drilled (

i) for the production of oil, gas 'or crude bitumen, or of water for injection to an underground formation, or (ii) for injeoti'on to an underground formation, or (iii) as an evaluaUon well or test hole, or (iv) to or at a depth of more than 500 feet, for any purpose, but does not include one to evaluate rock or s'orid inorganic mineral and that does not or will not penetrate a stratum capable of containing a pool or oil sands deposit;

Section 18 presently reads: 18.

(1) In each fi,seal year, funds equivalent to the estimated net ex penditure of the Board in the year shall be provided (

a) to the extent of 50 per cent from the moneys appropriated by the Legislature for that purpose, and if the appropriaUon is insufficient, from the General Revenue Fund, and (

b) to the extent of 50 per cent from a tax levied by the Board under

Part II.

(2) The Provincial Treasurer shall advance to the Board the funds provided by appropriation and referred to in subse,ction (1), clause (a), in installments as soon as conveniently may be after the first days of April, July and January, each installment to be in SU,cll amount as the Provincial Treasurer in consultation with the Board may decide

(3) Subject to subsections (1) and (2), the reference in subsection (1) and

section 67 to pl'oportions of the Board's estimated net expend iture to be received from the Government and from taxation under

Part 11 is for the purpose 'only of determining the amounts to be so provided, and the Board shall be accountable f'or the actual moneys received from the Government and from taxation but not for the pro portion which such moneys bear tlo the a.ctual net expenditures.

(4) In this

section and sections 19 and 67 "net expenditure" or "net expenditures" means net expenditures incurred by the Board in performance of its duties pursuant to this Act, The Gas Resources Preservation Act and The Turner Valley Unit Operations Act.

Section 18 provides for the payment in each fiscal year of the expenditures of the Board in the administration of certain Acts relating to oil and gas resources to the extent of 50 per cent by taxation under the Act. Since January 1, 1972, the Board has been charged with the administration of The Pipe Line Act, and this Act is added to those above referred to. 4. The heading of

Part 3 is "GENERAL POWERS OF THE BOARD". The reference to the Board is removed as a result of the addition in

Part 3 of the proposed

section 20.1 by

section 5 of this Bill, which does not deal with powers of the Board. 5. The Act provides a number of instances where action by the Energy Resources Conservation Board requires the approval or authorization of the Lieutenant Governor in Council. The new

section 20.1 will expressly provide that any approval or authori zations may have conditions attached to it. Subsection (2) is intended to remove doubt that previous ap provals or authorization could be made subject to conditions.

(

a) the Board may cancel an approval granted by it under this Act or may take such other remedial measures as it considers suitable in the circum stances, or (

b) the Lieutenant Governor in Council may amend, vary, add to or replace any terms or conditions contained in this order. 6. Se.ction 21, subsection (1) is amended by adding the word "or" at the end of clause (

e) and by adding the fol lowing clause: (

f) an order of the Lieutenant Governor in Council under this Act,

Section 22 is amended (

a) as toO subsection (1), (

i) by striking out clause 14, (ii) in clause 22, by striking out subclause. (iv), and (iii) by striking out clause 28, (

b) by adding the following subsection after subsection (1) :

(1.1) The Board, with the approval of the Min ister of the Environment, may make regulations (

a) restricting drilling and producing operations in water covered areas, and prescribing any spec ial measures to be taken lin such operations; (

b) as to the location of wells and the methods of operation to be observed during drilling and in the subsequent management and conduct of any well for the prevention of pollution ; (

c) prescribing the measures to he taken to c?ntrol pollution above, at or below the surface III the drilling of wells and in operations for the pr? duction of oil, gas and crude bitumen and III other operations over whkh the Board has jurisdiction. (

c) as to subsection (2) by adding after the words "subsection (1)" the words "or (1.1)". 8. Se.ction 35 is amended by striking out that part of the sect~on preceding clause (a), and by substituting the fol low'tng: 35: The Board, after a public hearing, may, by 9rd,er, re.strICt the amount of gas and oil produced in asso.ClatI~n WIth gas that may be produced during a period defIned III the order from a pool within Alberta. 2

2 6.

Section 21(1) presently reads: 21.

(1) A provision of (

a) this Act, or (

b) the regulatitons, or (

c) a declaration, order or direction of the Board pursuant to this Act or in any matter over which the Board has jurisdiction, or (

d) an order of the Public Utilities Board in a matter in which its jurisdiction arises from an 'order under this Act, or (

e) an 'Order of the Ga,s Utilities Board on any application or matter referred to it by the Oil and Gas Conservation Board, overrides the terms and conditions of any contract 'or other arrange ment conflicting with the provisions of the Act, regulations, order, declaration or direction.

Section 22, subsection (1), clause 14, clause 22, subclause (iv) and clause 28 presently Tead: 22.

(1) The Board may make regulations 14. restricting dri.]ling and pr'Oducing operations in water covered areas, and prescribing any special measures to be taken in such 'Operations; 22. as to the locati'On 'Of wells and the meth'Ods 'Of operati'On to be observed during drilling and in the subsequent management and conduct 'Of any well f'Or any purp'O,se including, without restricting the generality of the foreg'Oing, (iv) the preventi'On -'Of P'Ollutiton; 28. prescribing the measures to be taken to control poUuti'On abo-ve, at or below the surface in the drilling of wells and in operati'Ons for the pr'Oductiton 'Of oil, gas and crude bitumen and in other operatitons 'Over which the Board has jurisdicti'On;

Section 35 presently reads: .35. The Board, after a public hearing and with the approval of the LIeutenant Governor in C'Ouncil, may, by order, restrict the amount of gas and 'Oil pr'Oduced in association with the gas that may be pro duced from a pO'ol within Alberta

Section 38 is amended (

a) by renu1nbering the

section as subsection (1), and (

b) by adding the /oUo'iring subsections after renum bered subsection (1):

(2) Prior to the Board approving a scheme under subsection (1), dause (

b) or (d), it shall refer the application to the Minister of the Environ ment for his approval with respect to the applica tion as it affects matters of the environment.

(3) The Minister of the Environment may give his approval with or without conditions, but where conditions are imposed, the Board shall, if it ap proves the scheme, make its order subject to the same conditions impos'ed by the Minister of the En vironment when he gave his approval.

(4) Notwithstanding subsection (3), the Board is not required to impose the conditions specified by the Minister of the Environment when the Lieu tenant Governor in Council directs that the condit ions are not to be imposed.

Section 43 is amended by adding the following sub sections after subsection (1):

(1.1) The Board shall refer an application under sub section (1) that involves a scheme or operation for the re moval of overburden and surface excavation of oil sands to the IVIinister of the Environment and the Minister of Lands and Forests for their approval of the appHcation as it affects matters of the environment.

(1.2) The Minister of the Environment and the Minister of Lands and Forests or either of them may give their ap proval with or without conditions, but where conditions are imposed, the Board shall, if it grants an approval, make the approval subj'ect to the same conditions imposed by the 1\1inister of the Environment m" the Minister of Lands and Forests or both of th<:<JYl, when they gave their approval.

(1.3) Notwithstanding subsection (1.2), the Board is not required to irI1pose the conditions specified by the Minister of the Environment and the Minister of Lands and Forests or either of them when the Lieutenant Governor in Council directs that the conditions are not to be imposed.

Section 132 is amended (

a) by striking O'ld subsection (2) and by substituting the following:

(2) The costs of or incidental to the work of control, completion, suspension or abandonment of the well to the satisfaction of the Board shall be 3

Section 38 reads in

part 38. No scheme for (

b) the processing or underground stDrage of gas, or (

d) the storage or disposal of any fluid or other substance to an undergl"ound formation through a well, Dr shall be proceeded with unless the Board, by 'Order, has approved the scheme upon such terms and conditions as the Board may prescribe.

Section 43 requires an approval for a scheme or operation for the recovery of oil sands, crude bitumen or products derived therefrom. II.

Section 132, subsections (2), (4), (5), (6) and (7) presently read:

(2) The Provincial Treasurer may use or expend all or any part of the deposit required by the regulatiDns to be made by the licensee to defray the costs, determined by the Board, of Dr incidental to the work of control, completiDn, suspension o.r abandonment of the well to the satisfaction of the Board.

(4) Subject to subsection (5), where the 00stS determined by the Board, of or incidental to the work 'o,f 'control, completion, suspension or abandQnment 'Of the well to the satisfactilon 'Of the Board, exceed the amount of the deposit required by the regulatiDns to be made by the licensee, or whe,re there is no such deposit from which such costs may be defrayed, the Provincial Treasurer may, upon the recom mendation of the Board, defray such excess amounts 'Of such costs, as the case may be, frDm moneys appropriated for that pUI'pI(),se.

(5) Except in case 'Of an emergency, payments pursuant to sub section (4) with respect to anyone well shall not exceed $5,000 unless the Lieutenant Governor in Council app.roves payment in a greater amount.

(6) The Lieutenant Governor in Council may authorize and em p'ower the Provinciat Treasurer tD advance to the Board from time to time sums for defraying future excess amounts or costs of the kind referred to in ,subsection (4) subject to such terms and c;onditions as may be prescribed by the Lieutenant Governor in Council. .

(7) The costs determined by the Board under this

section remain Ing unpaid after app,lying thereto a deposit held by the Provincial Treasurer are a debt payable by the licensee 'Of the well to the Pro vincial Treasurer. 3

(

b) determined by the Board, and the Provincial Treas urer may use or expend all or any part of the de posit required by the regulations to be made by the licensee to reimburse the Board for such costs. by striking out subsections (4), (5) and (6) and b'lj sUbstituting the following: . ( 4) The Board shall not incur costs in the work of controlling, completing, suspending or abandon ing a well exceeding by more than $25,000 the sum of the licensee's deposit with the Provincial Treas urer and the balance of the amount provided in the Board's annual budget for such work, unless the Lieutenant Governor in Council authorizes the Board to incur greater costs. (c). as to subse,ction (7) by st,riking out the words "to the ProvincialTl'easurer" and by substituting the words "to the Board".

Section 133 is amended by striking out subsection (3) and by substituting the. following:

(3) Where the Board receives moneys upon the sale or disposal of any equipment, instaltlation or material under subsection (1), it shall (a) (

b) apply the moneys in payment of any costs as deter mined by it under

section 132 that remain unpaid after applying thereto the deposit, if any, held by the Provincial Treasurer, and if any of the moneys remain after the payment of the costs referred to in clause (a), forward the re mainder to the Provincial Treasurer for payment out to persons who have filed claims thereto with him within six months of the sale and who are entitled to receive it.

Section 139, subsection (1) is amended by striking out clause (

a) and by substituting the following: (

a) whether as a principal or otherwise, contravenes or defaults in complying with any provisions of this Act, the regulations, an order or direction of the Board made under this Act or the regulations or the terms and conditions under an order of the Lieuten ant Governor in Council granting an approval or authorization under this Act, or 14. This Act comes into force on the day upon which it is assented to. 4

Section 133 provides for the sale of equipment, installa tions and material found on the site of a well where operations are conducted by the Board for the control, completion, suspension or abandonment of the well. Subseciion (3) presently reads: 4

(3) Moneys received by the Board up'on the sale or disposal of any equipment, installation or material under subsection (1) shall be for warded to the Provincial Treasurer to be applied, firstly, in payment of any costs determined by the Board under

section 132 remaining unpaid after applying thereto the deposit, if any, held by the Provincial Treasurer, and, after the payment of such CiQ-sts, f,or the payment out of any balance to the persons who have filed claims thereto with the Provincial Treasurer within ,six months of the sale and who are entitled to receive it.

Section 139, subsection (1), clause (

a) presently reads: 139.

(1) Every pers'on who (

a) whether as a principal or otherwise, contravene.s or defaults in c'omplying with any provision of this Act or of the regulations or of any -order or direction made pursuant to this Act, or Title: 1972 (17th, 1st) Bill 96, The Oil and Gas Conservation Amendment Act, 1972

Document details

Collection	Alberta — Bills
Citation	L17 S1 5077
Type	bill
Volume / chapter	L17 S1 5077
Language	en
Format	json
Source	PROVINCIAL
Identifier	3e835acb4a7f8b84e2ddb3eb4a386f2546e587c4

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