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2002 Legislative Session: 3rd Session, 37th Parliament

FIRST READING

The following electronic version is for informational

purposes only.

The printed version remains the official version.

HONOURABLE RICHARD NEUFELD

MINISTER OF ENERGY AND MINES

BILL 36 – 2002

ENERGY AND MINES STATUTES AMENDMENT ACT, 2002

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

Coal Act

Section 12 (3) of the Coal Act, R.S.B.C. 1996, c. 51, is repealed and the following substituted:

(3) The holder of a licence is entitled

(

a) to enter, occupy and use the surface of the location for the purpose of exploring for and developing coal on the location,

(

b) subject to entering into an agreement in the form of a free use permit or a licence to cut under the Forest

Act , to use and remove timber that, at the time the holder of the licence enters into the agreement, is on the location, and

(

c) to the non-exclusive right to use sand, gravel and rock from the location for use on the location for a construction purpose approved under the Mines

Act , without the necessity of obtaining under the Land Act a licence, lease, permit or other authorization.

Section 12.1 (1) is amended by striking out "to any applicable higher level plan under that Act

and" .

Section 20 (3) is repealed and the following substituted:

(3) If the surface area of a lease location is owned by the government and is used or occupied by the lessee, the lessee is entitled

(

a) to enter, occupy and use the surface of the location to produce coal,

(

b) subject to entering into an agreement in the form of a free use permit or a licence to cut under the Forest

Act , to use and remove timber that, at the time the holder of the lease enters into the agreement, is on the location, and

(

c) to the non-exclusive right to use sand, gravel and rock from the location for use on the location for a construction purpose approved under the Mines

Act , without the necessity of obtaining under the Land Act a licence, lease, permit or other authorization.

Forest Practices Code of British Columbia Act

Section 2 (7) of the Forest Practices Code of British Columbia Act, R.S.B.C. 1996, c. 159, is repealed.

Highway Act

Section 4 (2) (

c) of the Highway Act, R.S.B.C. 1996, c. 188, is amended by striking out

" Ministry of Energy, Mines and Petroleum Resources Act ." and substituting

" Ministry of Energy and Mines Act ."

Income Tax Act

Section 25.1 (9) of the Income Tax Act, R.S.B.C. 1996, c. 215, is amended by striking out

" Ministry of Energy, Mines and Petroleum Resources Act " and substituting

" Ministry of Energy and Mines Act " .

Local Government Act

Section 723 (4) of the Local Government Act, R.S.B.C. 1996, c. 323, is amended by striking out

"Minister of Energy, Mines and Petroleum Resources." and substituting

"Minister of Energy and Mines."

Mineral Tax Act

Section 26 (1) of the Mineral Tax Act, R.S.B.C. 1996, c. 291, is amended by striking out

"Ministry of Energy, Mines and Petroleum Resources," and substituting

"Ministry of Energy and Mines," .

Mineral Tenure Act

Section 11.1 (2) of the Mineral Tenure Act, R.S.B.C. 1996, c. 292, is amended by striking out

"to any applicable higher level plan under that Act and" .

Ministry of Energy, Mines and Petroleum Resources Act

10 The Ministry of Energy, Mines and Petroleum Resources Act, R.S.B.C. 1996, c. 298, is amended by repealing the title and substituting the following:

MINISTRY OF ENERGY AND MINES ACT .

Section 1 (1) is amended by striking out "Ministry of Energy, Mines and Petroleum Resources." and substituting

"Ministry of Energy and Mines."

Section 13 is repealed and the following substituted:

Roads and other works to facilitate exploration and development

13 With the approval of the Lieutenant Governor in Council, the minister may authorize loans, investments and the expenditure of money for the design, construction, reconstruction and repair of bridges, roads, rails, trails, utilities or other structures or works to facilitate exploration and development of energy, mineral and petroleum resources in British Columbia.

Cost recovery for roads and other works used for resource exploration and development

13.1

(1) In this section, "vehicle" means a device in, on or by which a person or thing is or may be transported or drawn on a bridge, rail, road, trail, utility or other structure or work except a device exempted from this definition under the regulations.

(2) The minister may establish and administer a system of cost recovery for the use of bridges, roads, rails, trails, utilities or other structures or works administered by the ministry that are used during the exploration and development of energy, mineral and petroleum resources in British Columbia by one or both of the following methods:

(

a) a system of tolls under the regulations;

(

b) a system of charges by contract with individual users.

(3) If the minister establishes a system of tolls under subsection (2) for the use of a bridge, road, rail, trail, utility or other structure or work, a person must not

(

a) take or operate a vehicle through a toll station without paying the toll applicable to the vehicle, or

(

b) take a vehicle onto or operate a vehicle on the bridge, rail, road, trail, utility or structure without paying the toll applicable to the vehicle.

(4) Subsection (3) does not apply to a vehicle or class of vehicles exempted by regulation from the application of that subsection.

13 The following sections are added:

Offence

22.1 A person who contravenes

section 13.1 (3) commits an offence.

Offence Act

22.2

Section 5 of the Offence Act does not apply to this Act.

Section 23 is amended by renumbering the

section as

section 23 (1) and by adding the following subsection:

(2) Without limiting subsection (1), the Lieutenant Governor in Council may make regulations as follows:

(

a) establishing a system of tolls to be administered by the minister for the purposes of

section 13.1;

(

b) specifying which vehicles are exempted from the application of

section 13.1;

(

c) respecting contracts entered into under

section 13.1;

(

d) establishing rules governing the use of property administered by the minister;

(

e) respecting the layout, design, construction, operation, use, maintenance and deactivation of roads and other works designated under

section 13.1.

15 The following

section is added:

Power of minister to make road use rules

24 The minister may make regulations respecting rules for the operation and use of vehicles on a road or other work developed, operated or maintained under this Act.

Oil and Gas Commission Act

Section 1 (1) of the Oil and Gas Commission Act, S.B.C. 1998, c. 39, is amended

(

a) by adding the following definition:

"pipeline" has the meaning given to it in the Pipeline

Act ; ,

(

b) in paragraph (

c) of the definition of "specified enactment" by striking out

"21 (2)" and substituting "21 (b)" ,

(

c) in paragraph (e) (xvii) of the definition of "specified enactment" by striking out

"of" and substituting "or" ,

(

d) in paragraph (e) (xviii) of the definition of "specified enactment" by striking out

"sections" and substituting "section" , and

(

e) in the definition of "specified enactment" by adding the following paragraph:

(

h) a prescribed regulation under any of the following Acts:

(

i) Forest Act ;

(ii) Forest Practices Code of British Columbia

Act ;

(iii) Heritage Conservation Act ;

(iv) Land Act ;

(

v) Waste Management Act ;

(vi) Water Act .

Section 2 is repealed and the following substituted:

Corporation established

(1) A corporation known as the Oil and Gas Commission is continued, consisting of 3 directors.

(2) The deputy minister is a director and is the chair of the commission.

(3) The Lieutenant Governor in Council may appoint 2 directors, for a term not longer than 5 years, one of whom is the commissioner and vice chair of the commission.

(4) A vacancy in the membership of the commission or the incapacity of one of the directors does not impair the power of the remaining directors to act.

(5) A majority of the directors holding office constitutes a quorum at meetings of the commission.

(6) If there is a tie vote, the chair of the commission, or in the absence of the chair the vice chair, has a casting vote.

(7) If a person appointed under subsection (3) dies or is unable to act, the minister, by order, may appoint an acting commissioner or acting director for a period not longer than 6 months.

(8) The commission must pay a person appointed under subsection (3) or (7) an allowance for reasonable travelling and incidental expenses necessarily incurred in carrying out the business of the corporation.

(9) Subject to sections 5 and 6.1, the commission must direct its operations.

(10) The Lieutenant Governor in Council may appoint a deputy commissioner.

(11) The deputy commissioner has the powers of the commissioner, but does not have a vote in meetings or decisions of the commission.

18 The following

section is added:

Commission is an agent of the government

2.1 The commission is an agent of the government.

Section 5 is repealed and the following substituted:

Direction and management of the commission

(1) The commission may pass resolutions it considers necessary or advisable to direct its affairs, exercise its power and perform its duties, including resolutions for one or more of the following:

(

a) calling and holding meetings of the commission and the procedures to be followed at the meetings;

(

b) approving proposals to recommend amendments to the Act and regulations;

(

c) approving the commission's annual service plan under the Budget Transparency and Accountability

Act , as well as the commission's annual budget estimate detailing the expected revenues and planned expenditures of the commission for the next fiscal year;

(

d) approving the commission's estimates made in respect of the levies prescribed in accordance with

section 22 (5) of this Act;

(

e) establishing a plan of organization to carry out the powers of the commission.

(2) A resolution approved by the directors by mail, facsimile transmission, telephone, electronic mail or any other similar means of communication and confirmed in writing or other graphic communication is as valid as if it had been passed at a meeting of the directors properly called and constituted.

20 The following

section is added:

Powers of the commissioner

6.1

(1) Subject to the direction of the commission, the commissioner must manage the operations of the commission or supervise the management of those operations.

(2) The commissioner may delegate the exercise of any power or performance of any duty conferred or imposed on the commission under this Act, the Petroleum and Natural Gas Act or the Pipeline

Act , other than a power to make regulations or the powers under

section 5 (1) or 6 (1), to an employee or officer of the commission or to another public officer or agency responsible for carrying out duties under a specified enactment.

(3) A delegation under subsection (2) to a person other than an employee or officer of the commission must be limited to a specific period of time and a particular oil and gas activity or pipeline.

(4) A delegation under subsection (2) may be to an officer of the commission or to a public officer by name or by designation of the office.

Section 13 (1) and (2) is amended by striking out "board" and substituting

"commission" .

Section 17 (5) is repealed.

23 The following sections are added:

General development permits

17.1

(1) In this section, "general development permit" means a permit issued under subsection (2).

(2) The commission, on application, may issue a general development permit.

(3) A general development permit is an approval in principle for oil and gas activities and pipelines in an area of British Columbia.

(4) A general development permit must

Act , the Pipeline Act or the specified enactments by the commission for the oil and gas activity or pipeline,

(

b) be limited to a specified period of time, and

(

c) be limited to a specified area.

(5) A term or condition specified in a general development permit must be applied to an approval, a licence, a permit or another authorization, as appropriate, subsequently issued in accordance with the Petroleum and Natural Gas

Act , the Pipeline Act or a specified enactment.

(6) Despite subsection (4), a term or condition specified in a general development permit may be amended or replaced by a term or condition of an approval, a licence, a permit or another authorization, subsequently issued in accordance with the Petroleum and Natural Gas

Act , the Pipeline Act or a specified enactment for each oil and gas activity or pipeline associated with the general development permit.

(7) The commission may require at any time that the holder of a general development permit provide the commission with reports on any matter related to the permit.

(8) With the concurrence of the holder of the general development permit, the commission, by order, may amend, suspend or cancel a general development permit.

(9) Without the concurrence of the holder of the general development permit, the commission, by order, may

(

a) amend or suspend a general development permit if the commission has information that was not considered when the permit was issued and that information relates to matters that may be affected by an application under a specified enactment, or

(

b) suspend or cancel a general development permit if the commission believes that

(

i) the applicant omitted relevant information from the application for the permit,

(ii) the holder has contravened or is in default of a requirement or condition of the permit, or

(iii) the holder has contravened a provision of this Act, the Petroleum and Natural Gas

Act , the Pipeline Act or a specified enactment.

(10) The refusal of the commission to issue a general development permit or the suspension or cancellation of a permit under subsection (8) or (9) does not prevent a person from making an application for an approval, a licence, a permit or another authorization under the Petroleum and Natural Gas

Act , the Pipeline Act or a specified enactment related to matters applied for in the permit.

(11) A general development permit does not authorize the holder of the permit to enter property, or to make any alteration to property.

(12) A general development permit must not be transferred unless

(

a) the commission consents in writing to the transfer, and

(

b) the document that is the evidence of the transfer is filed with the commission.

(13) The commission must keep a record of each transfer to which it has consented.

Application of sections 17 and 17.1 to pipelines under jurisdiction of Canada

17.2 Sections 17 and 17.1 do not apply to a pipeline that is subject to the National Energy Board Act (Canada) but the Lieutenant Governor in Council may, by regulation, make all or part of sections 17 and 17.1 apply to a pipeline that is subject to that Act.

Section 18 (1) (

a) is amended by striking out "definition of "special enactment" in

section 1 (1)," and substituting

"definition of "specified enactment" in

section 1 (1)," .

Section 22 (3) is repealed and the following substituted:

(3) Without limiting subsection (2), the Lieutenant Governor in Council may make regulations as follows:

(

a) respecting policies and procedures to be followed by the commission in conducting its affairs, exercising its powers and discretion, carrying out its functions and duties and discharging its responsibilities;

(

b) respecting applications to the commission;

(

c) prescribing time limits within which specified steps in the application process must be taken;

(

d) defining words and expressions used but not defined in this Act;

(

e) prescribing, as a specified enactment, a regulation or part of a regulation under any of the Acts referred to in paragraph (

h) of the definition of "specified enactment" in

section 1 (1);

(

f) respecting general development permits and applications for them.

Petroleum and Natural Gas Act

Section 1 of the Petroleum and Natural Gas Act, R.S.B.C. 1996, c. 361, is amended

(

a) in the definition of "test hole" by striking out "to a depth not exceeding 600 m" and substituting

", to a depth and in a manner defined by the regulations," , and

(

b) in paragraph (

c) of the definition of "well" by striking out

"to a depth in excess of 600 m" .

Section 32 (3), (4) and (5) is repealed and the following substituted:

(3) The commission may issue or renew a geophysical licence for the prescribed term on receiving an application and on payment of the prescribed fee or may refuse to issue or renew a geophysical licence.

Section 36 is repealed and the following substituted:

Regulations for this

Part

(1) The commission may make regulations as follows:

(

a) governing the methods and manner of geophysical exploration and the places in which it may be carried out;

(

b) empowering designated employees of the commission to

(

i) require persons carrying out geophysical exploration to clean up, restore and reclaim land and improvements affected by the exploration,

(ii) require those persons to post performance bonds for the due performance of the clean-up, restoration and reclamation, and

(iii) deduct or recover the costs of the clean-up, restoration and reclamation from those performance bonds;

(

c) providing for reports to the commission;

(

d) setting the terms for geophysical licences and renewals of geophysical licences.

(2) A regulation made under this

section may provide that commission employees designated by the commission may, in writing, exempt a person from the application of all or part of the regulation, in relation to a particular geophysical exploration project and subject to specified conditions.

29 The following

section is added:

Other than normal spacing

65.1

(1) If the minister is satisfied that it would facilitate petroleum or natural gas exploration and development, the minister may

(

a) make regulations specifying other than normal spacing in an area of British Columbia, or

(

b) on application or on the minister's own initiative, by order, specify other than normal spacing for a parcel of land or location.

(2) The commission, by order, may approve or on its own initiative may specify other than normal spacing for a pool or portion of a pool on a parcel of land or a location if the commission is satisfied that it would facilitate drilling and production operations.

(3) A regulation or order under subsection (1) or (2) must specify target areas within each other than normal spacing area and may specify methods of determining and conditions that apply to that spacing.

Section 67 is repealed and the following substituted:

No production unless other than normal spacing areas pooled with adjoining areas

(1) If a location contains other than a normal spacing area for a natural gas well, the commission may issue a well authorization for the drilling of a natural gas well on it, but production may not be taken from the location until it is pooled with adjoining areas to form a normal spacing area or a spacing area prescribed or ordered under

section 65.1.

(2) Subsection (1) applies to land referred to in

section 85 (c) (ii) as if it were a location.

Section 85 (

c) is repealed and the following substituted:

(

c) the applicant is entitled to drill the well for which the authorization is requested or to drill for and produce petroleum or natural gas, or both, through the well

(

i) as the holder of the location on which the well is to be drilled, or by agreement with the holder, if the application relates to land in which the petroleum and natural gas rights are held by the government, or

(ii) as the owner of the petroleum and natural gas rights, or by agreement with the owner, if the application relates to land in which the petroleum and natural gas rights are not held by the government, .

Section 86 is amended

(

a) in paragraph (

d) by striking out "and to extract" and substituting

"or to drill for and extract" , and

(

b) by repealing paragraph (

e) and substituting the following:

(

e) if the commission is satisfied that the holder of the well authorization is not entitled to drill the well for which the authorization was issued or to drill for and extract petroleum or natural gas, or both, through the well

(

i) as the holder of the location, or by agreement with the holder, if the well authorization relates to land in which the petroleum and natural gas rights are held by the government, or

(ii) as the owner of the petroleum and natural gas rights, or by agreement with the owner, if the well authorization relates to land in which the petroleum and natural gas rights are not held by the government, .

Section 88 is repealed and the following substituted:

Obligations on abandonment of a well or cancellation of a well authorization

88 If any of the following circumstances exist, a person who drills a well or produces petroleum or natural gas from a well must complete or abandon the well, or suspend operations, in accordance with the regulations and directions that may be given by the commission:

(

a) the person drills or operates the well without a valid well authorization;

(

b) the person is the holder of a well authorization but ceases to be the holder of the location;

(

c) the person fails to maintain a required agreement referred to in

section 85 (c);

(

d) the commission cancels the well authorization.

34 Sections 90 and 91 are repealed and the following substituted:

Application

90 An application for a test hole authorization must be made to the commission and is not valid unless all of the following requirements are met:

(

a) it is accompanied by the fee;

(

b) it is made in accordance with the regulations;

(

c) if the application is in respect of land in which the petroleum and natural gas rights are not held by the government, the applicant is the owner or has an agreement with the owner of the petroleum and natural gas rights to drill the test hole.

Cancellation

91 A test hole authorization may be cancelled by the commission for any of the following reasons:

(

a) the drilling of the test holes for which the authorization is issued is not begun within 90 days of the day on which the authorization was issued;

(

b) the holder of the authorization requests the cancellation;

(

c) it appears to the commission that a contravention of this Act or of a regulation or order has occurred with respect to a test hole for which the authorization was issued;

(

d) the holder of the authorization fails to maintain ownership of the petroleum and natural gas rights or an agreement referred to in

section 90 (

c) with the owner of the petroleum and natural gas rights.

Section 96 (1) (

h) is amended by adding "and defining different depths and requirements for different kinds of test holes" after

"schemes" .

Section 100 is repealed and the following substituted:

Approval of schemes

(1) A scheme for any of the following must not be proceeded with unless the commission, by order, approves the scheme on terms the commission specifies:

(

a) the development or production of petroleum or natural gas, or both, from a field or pool or portion of a field or pool;

(

b) the experimental application of oil field technology as defined by regulation;

(

c) the processing, storage or disposal of natural gas;

(

d) the gathering, storage and disposal of water produced from a field or pool.

(2) For the purposes of subsection (1), "development or production" includes the use of repressuring, recycling, pressure maintenance or any other enhanced recovery technique.

(3) On approving a scheme under subsection (1), the commission may, by order, waive or modify the operation of

section 65 if the scheme would facilitate development and production operations or the conservation of petroleum or natural gas, or both.

(4) The commission may cancel or suspend the approval of a scheme

(

a) at the request of the person to whom the approval was given, or

(

b) if it appears to the commission that there has been a contravention of this Act, the regulations, an order respecting the approval or a condition of the approval.

Section 133 is amended

(

a) by repealing subsection (2) (r), and

(

b) by adding the following subsection:

(3) A regulation made under this

section may provide that the commissioner or the minister may, in writing, exempt a person from the application of all or part of the regulation.

Pipeline Act

Section 35 (2) (

b) of the Pipeline Act, R.S.B.C. 1996, c. 364, is amended by striking out

"Ministry of Energy, Mines and Petroleum Resources" and substituting

"Ministry of Energy and Mines" .

Commencement

39 This Act comes into force by regulation of the Lieutenant Governor in Council.

Explanatory Notes

Coal Act

SECTION 1: [Coal Act, amends

section 12] recasts

section 12 (3) to entitle the holder of a

licence under the Act to the non-exclusive right to use sand, gravel and rock in

the location for a construction purpose, without the necessity of an authorization

under the Land Act , and allows for a licence to cut under the Forest Act to

authorize timber cutting in the location of a licence under the Coal Act .

SECTION 2: [Coal Act, amends

section 12.1 (1)] reflects an amendment to the Forest

Practices Code of British Columbia Act by this Bill.

SECTION 3: [Coal Act, amends

section 20] recasts

section 20 (3) to entitle the holder of a

lease under the Act to the non-exclusive right to use sand, gravel and rock in

the location for a construction purpose, without the necessity of an authorization

under the Land Act .

Forest Practices Code of British Columbia

SECTION 4: [Forest Practices Code of British Columbia Act, repeals

section 2 (7)] is self

explanatory.

Highway Act

SECTION 5: [Highway Act, amends

section 4 (2) (c)] is self explanatory.

Income Tax Act

SECTION 6: [Income Tax Act, amends

section 25.1 (9)] is self explanatory.

Local Government Act

SECTION 7: [Local Government Act, amends

section 723 (4)] is self explanatory.

Mineral Tax Act

SECTION 8: [Mineral Tax Act, amends

section 26 (1)] is self explanatory.

Mineral Tenure Act

SECTION 9: [Mineral Tenure Act, amends

section 11.1 (2)] reflects an amendment to the

Forest Practices Code of British Columbia Act by this Bill.

Ministry of Energy, Mines and Petroleum Resources Act

SECTION 10: [Ministry of Energy, Mines and Petroleum Resources Act, renames the title

of the Act] is self explanatory.

SECTION 11: [Ministry of Energy, Mines and Petroleum Resources Act, amends

section 1 (1)] is self explanatory.

SECTION 12: [Ministry of Energy, Mines and Petroleum Resources Act, re-enacts

section 13 and enacts

section 13.1] re-enacts

section 13 to delete references to

guarantees and grants and enacts

section 13.1 to provide cost recovery and

enforcement for roads and other works.

SECTION 13: [Ministry of Energy, Mines and Petroleum Resources Act, enacts

sections 22.1 and 22.2] is self explanatory.

SECTION 14: [Ministry of Energy, Mines and Petroleum Resources Act, amends

section 23] provides regulation making powers in relation to roads and other

works under sections 13 and 13.1.

SECTION 15: [Ministry of Energy, Mines and Petroleum Resources Act, enacts

section 24]

provides the minister with a power to make regulations for the operation and

use of vehicles on a road or other work under the Act.

Oil and Gas Commission Act

SECTION 16: [Oil and Gas Commission Act, amends

section 1 (1)] ensures consistency in

the jurisdiction of the commission and corrects references.

SECTION 17: [Oil and Gas Commission Act, re-enacts

section 2]

changes the structure of the commission to ensure that the perspectives of the government are reflected in the decisions of the commission;

provides for the temporary filling of vacancies on the commission;

provides for the appointment of a deputy commissioner.

SECTION 18: [Oil and Gas Commission Act, enacts

section 2.1] re-enacts a provision as a

separate section.

SECTION 19: [Oil and Gas Commission Act, enacts

section 5] redefines the powers of the

commission to reflect changes in its structure.

SECTION 20: [Oil and Gas Commission Act, enacts

section 6.1] sets out the powers of the

commissioner to reflect changes in the structure of the commission.

SECTION 21: [Oil and Gas Commission Act, amends

section 13 (1) and (2)] is self explanatory.

SECTION 22: [Oil and Gas Commission Act, repeals

section 17 (5)] is self explanatory.

SECTION 23: [Oil and Gas Commission Act, enacts sections 17.1 and 17.2] provides for a

system of general development permits and ensures that the commission's

responsibilities under

section 17 and the new

section 17.1 do not extend to

pipelines that are under the jurisdiction of Canada, except by regulation.

SECTION 24: [Oil and Gas Commission Act, amends

section 18 (1) (a)] is a housekeeping

amendment.

SECTION 25: [Oil and Gas Commission Act, re-enacts

section 22 (3)] adds specific powers

to make regulations as a result of the amendments enacted by sections 16 and

23 of this Bill.

Petroleum and Natural Gas Act

SECTION 26: [Petroleum and Natural Gas Act, amends

section 1] amends the definition of

"test hole" to remove the depth limitation and amends the definition of "well"

to eliminate a conflict with the amended definition of "test hole".

SECTION 27: [Petroleum and Natural Gas Act, amends

section 32] amends the

section to

provide that a geophysical licence terminates at the end of a prescribed period

following its date of issue or renewal.

SECTION 28: [Petroleum and Natural Gas Act, re-enacts

section 36] adds a power to make

regulations setting the terms for geophysical licences and renewals of geophysical

licences and provides a power to make regulations specifying the circumstances

in which the commission may exempt persons from the application of

the regulations governing geophysical exploration.

SECTION 29: [Petroleum and Natural Gas Act, enacts

section 65.1] adds a provision

respecting other than normal spacing.

SECTION 30: [Petroleum and Natural Gas Act, re-enacts

section 67] adds a provision

consequential to the amendment to

section 85 of the Act made by this Bill.

SECTION 31: [Petroleum and Natural Gas Act, amends

section 85] extends the application

of the

section to land in which the petroleum and natural gas rights are not held

by the government and where the applicant is the owner or has an agreement

with the owner of the petroleum and natural gas rights.

SECTION 32: [Petroleum and Natural Gas Act, amends

section 86] makes a change consequential

to the amendment to

section 85 of the Act made by this Bill.

SECTION 33: [Petroleum and Natural Gas Act, re-enacts

section 88] re-enacts the power of

the commission to give directions to a person to complete or abandon a well or

suspend operations if the well authorization becomes invalid or is cancelled by

the commission or the person ceases to have or maintain the right to drill or

produce from the well.

SECTION 34: [Petroleum and Natural Gas Act, re-enacts sections 90 and 91] adds references

to maintaining ownership of petroleum and natural gas rights or an

agreement with the owner of petroleum and natural gas rights, in a location

where those rights are not held by the government, as a requirement in applying

for a test hole authorization and, if not maintained, as a ground for cancellation

of that authorization.

SECTION 35: [Petroleum and Natural Gas Act, amends

section 96 (1) (h)] provides a power

to make regulations respecting different depths and kinds of test holes.

SECTION 36: [Petroleum and Natural Gas Act, re-enacts

section 100] permits the commission

to waive or modify normal spacing areas with respect to schemes that

would facilitate development and production operations or the conservation of

petroleum or natural gas, or both. The

section also provides for cancellation or

suspension of a scheme approval.

SECTION 37: [Petroleum and Natural Gas Act, amends

section 133] repeals a power to

make regulations respecting other than normal spacing and provides a power

to make regulations that would permit the commissioner or the minister to

exempt a person from the application of all or part of such a regulation.

Pipeline Act

SECTION 38: [Pipeline Act, amends

section 35 (2) (b)] is self explanatory.

Copyright

© 2002: Queen's Printer, Victoria, British Columbia, Canada