Bill 106 — First Session, 20Th Legislature, 32 Elizabeth Ii the Legislative Assembly of Alberta Bill 106 Oil Sands Conservation Act (Legislature 20, Session 1)

L20 S1 3725

Alberta — Bills

1983 BILL 106 First Session, 20th Legislature, 32 Elizabeth II THE LEGISLATIVE ASSEMBLY OF ALBERTA BILL 106 OIL SANDS CONSERVATION ACT THE MINISTER OF ENERGY AND NATURAL RESOURCES First Reading Second Reading Committee of the Whole Third Reading Royal Assent

Bill 106 BILL 106 1983 0!L SANDS CONSERVATION ACT (Assented to , 1983) TABLE OF CONTENTS

INTERPRETATION

Section No. 1

Definitions References to subdivisions of unsurveyed land 2 APPLICATION AND PURPOSES OF THE ACT Purposes of the Act 3 Overriding provisions 4 POWERS AND DUTIES OF THE BOARD Jurisdiction of the Board 5 Scope of authority to make orders 6 Board's power to make orders 7 Inspections and investigations 8 Stop orders 9 APPROVALS AND PERMITS Approval of a scheme or operation 10 Approval of processing plant 11 Approval by Ministers 12 Industrial development permits 13 Amendment of approvals 14 Failure to comply with orders 15 Cancellation of approvals or permits 16 GENERAL Registered address of holder and agent 17 Statutory obligations of holder not affected by agreement 18 Scheme to maximize recovery of oil sands or crude bitumen 19 Remedial action by the Board 20 Regulations Regulations 21 OFFENCES AND PENALTIES False reports 22 Waste 23 Civil cause of action not affected by prosecution 24 Offences 25

Limitations on prosecudons 26 General offence 27 TRANSITIONAL AND CONSEQUENTIAL AMENDMENTS Transitional 28,29 Consequential 30 Commencement 31 HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Alberta, enacts as foUows:

INTERPRETATION

Definitions 1(1) In this Act, (a) "Board" means the Energy Resources Conservation Board under the Energy Resources Conservation Act; (b) "contractor" means a person who undertakes to perform any drilling, mining, service or other operation at an oil sands site by agreement (

i) directly with the operator of the oil sands site, or (ii) with a person who has entered directly into an agreement with the operator; (c) "crude bitumen" means a naturally occurring viscous mix ture, mainly of hydrocarbons heavier than pentane, that may contain sulphur compounds and that, in its naturally occurring viscous state, will not flow to a well; (d) "declared oil sands" means those hydrocarbon substances de clared to be oil sands under

section 7(2); (e) "discard" means solid or liquid material, whether naturally occurring or introduced during operations at a mine site, an in situ operation site or a processing plant, that does not have an immediate use and is removed or rejected during recovery or processing operations or during the operation of an associated power plant; (f) "discard site" means an area within which discard is stored, either temporarily or permanently; (g) "evaluation well" means a well that when being drilled is expected by the Board to penetrate an od sands deposit and that is drilled for the purpose of evaluating that deposit; (h) "experimental scheme" means a scheme or operation (

i) for the recovery of oil sands or crude bitumen, or (ii) for the processing of crude bitumen, derivatives of crude bitumen or declared oil sands not designed for commercial purposes, utilizing methods that may be untried or unproven in a particular application and includes, but is not Umited to, test and pdot schemes;

(i) "experimental well" means a well driUed or being drilled or operated pursuant to an experimental scheme approved by the Board under this Act, the Oil and Gas Conservation Act, The Oil and Gas Wells Act, The Oil and Gas Resources Conservation Act, The Oil and Gas Conservation Act,

chapter 63 of the Statutes of Alberta, 1957 or The Oil and Gas Conservation Act, 1969; (j) "in situ operation" means (

i) a scheme or operation ordinarily involving the use of well production operations for the recovery of crude bitumen from oil sands, or (ii) a scheme or operation designated by the Board as an in situ operation but does not include a mining operation; (k) "in situ operation site" means an area within which an in situ operation is being conducted or that is the subject of an approval under this Act for an in situ operation, and includes a discard site and any area within which any facilities or equipment used in connection with the in situ operation are located; (1) "mine site" means an area within which mining operations are being conducted or that is the subject of an approval under this Act for a mining operation, and includes a stockpile area, a discard site and any area within which facilities or equipment used in connection with a mining operation are located; (m) "mining operation" means (

i) a surface or underground operation for the recovery of oil sands, or (ii) an operation designated by the Board as a mining oper ation; (n) "oil sands" means (

i) sands and other rock materials containing crude bitumen, (ii) the crude bitumen contained in those sands and other rock materials, and (iii) any other mineral substances, other than natural gas, in association with that crude bitumen or those sands and other rock materials referred to in subclauses (

i) and (ii); (o) "oil sands products" means any products obtained (

i) by processing oil sands, crude bitumen or derivatives of crude bitumen, or (ii) by reprocessing a product referred to in subclause (i), and includes any products obtained by any subsequent reprocess ing of the products obtained under subclauses (

i) and (ii); (p) "oil sands site" means an in situ operation site, a mine site or a processing plant, or any one or more of them;

(q) "operator" means the holder of an approval under this Act; (r) "permit" means an industrial development permit issued under

section 13; (s) "permittee" means the holder of a permit; (t) "processing plant" means a facility (

i) for obtaining crude bitumen from oil sands that have been recovered, or (ii) for obtaining oil sands products from oil sands, cmde bitumen or derivatives of crude bitumen that have been re covered; (u) "processing plant site" means an area within which a pro cessing plant is located or that is the subject of an approval under this Act for a processing plant, and includes any area within which facilities or equipment used in connection with a process ing plant are located; (v) "waste", in addition to its ordinary meaning, means wasteful operations; (w) "wasteful operations" means (

i) the establishment, construction, operation, suspension or abandonment of an oil sands site in a manner that results or tends to result in a reduction (

A) in the quantity or quality of oil sands, crude bitumen or derivatives of crude bitumen ultimately recovered from an oil sands deposit, or (

B) in the quantity or quality of oil sands products ob tained from oil sands, crude bitumen or derivatives of crude bitumen relative to that which would otherwise be recovered or ob tained under sound engineering and economic principles, (ii) the locating, drilling, equipping, completing, operating or producing of a well in a manner that causes or tends to cause excessive loss or destruction of crude bitumen, derivatives of crude bitumen or declared oil sands, (iii) the inefficient storing on the surface or underground of oil sands, crude bitumen, derivatives of crude bitumen or oil sands products, or (iv) the production of oil sands, crude bitumen, derivatives of crude bitumen or oil sands products in excess of proper storage facdities or transportation and marketing facilities or of market demand for them; (x) "zone" means a geological formation, member or zone.

(2) A decision of the Board is final as to whether any substance or mixture comes within a definition in subsection (1) or as to whether a definition in subsection (1) is applicable in a particular case.

References to subdivisions of unsurveyed land 2 In this Act and in any regulations or orders made under this Act, unsurveyed land may be described or referred to as if it were sur veyed into sections in accordance with the Surveys Act, and reference to a legal subdivision,

section or township in land not so surveyed shall be deemed to refer to what would be the legal subdivision,

section or township if the land were so surveyed. Purposes of the Act APPLICATION AND PURPOSES OF THE ACT 3 The purposes of this Act are (

a) to effect conservation and prevent waste of the oil sands re sources of Alberta, (

b) to ensure orderly, efficient and economical development in the public interest of the oil sands resources of Alberta, (

c) to provide for the appraisal of Alberta's oil sands resources, (

d) to provide for appraisals of od sands, crude bitumen, deriv atives of crude bitumen and oil sands product requirements in Alberta and in markets outside Alberta, (

e) to assist the Govemment in controlling pollution in the de velopment and production of the oil sands resources of Alberta, (

f) to provide for the recording and for the timely and useful dissemination of information regarding the oil sands resources of Alberta, and (

g) to ensure the observance, in the public interest, of safe and efficient practices in the exploration for and the recovery, storing, processing and transporting of od sands, discard, crude bitumen, derivatives of crude bitumen and oil sands products. Overriding provisions 4(1) A provision of (

a) this Act, (

b) the regulations made pursuant to this Act, (

c) a declaration, order, approval or permit of the Board pur suant to this Act in any matter over which the Board has juris diction, or (

d) an order of the Lieutenant Govemor in Council under this Act, overrides any term or condition of any contract or other arrangement that conflicts with the provision of this Act, the regulations, the order, the declaration, the approval or the permit.

(2) No term or condition of a contract or other arrangement that conflicts with a provision referred to in subsection (1) is enforceable or gives rise to any cause of action by any party against any other party to the contract or arrangement.

Jurisdiction of the Board Scope of autliority to make orders POWERS AND DUTIES OF THE BOARD 5 Except as otherwise provided in this or any other Act, the Board has exclusive jurisdiction to examine, inquire into, hear and deter mine all matters or questions arising under this Act. 6 The Board, with the approval of the Lieutenant Govemor in Council, may make any just and reasonable orders or directions that it considers to be necessary to effect the purposes of this Act and that are not otherwise specifically authorized by this Act. Board's power to 7(1) The Board may by order make orders (

a) designate a scheme or operation as an in situ operation; (

b) designate an operation as a mining operation; (

c) prescribe official names for oil sands sites.

(2) The Board may by order, with respect to a zone within a specified area set out in the order, declare any hydrocarbon substance, except natural gas and coal, to be oil sands if the Board is satisfied (

a) that the zone adjoins or is in reasonable proximity to an oil sands deposit, and (

b) that to do so would be in the interests of the orderly, efficient or economic development of (

i) the hydrocarbon substance, or (ii) the oil sands in the oil sands deposit referred to in clause (a).

(3) An oil sands deposit may be designated by the Board (

a) by describing the surface area vertically above the oil sands deposit and by naming the geological formation, member or zone in which the oil sands deposit occurs, or (

b) by any other method of description that the Board considers appropriate.

(4) Where the Board under subsection (2) declares a hydrocarbon substance in a zone to be oil sands, a reference in this Act to oil sands includes a reference to the hydrocarbon substance in that zone. 8(1) At any reasonable time, a member of the Board, or a person authorized by the Board, when acting in the performance of any duties or when exercising any powers under this Act, (

a) shall have access to an oil sands site, and to any facilities used in connection with operations at an oil sands site, (

b) may make inspections, investigations or tests and take sam ples at an oil sands site, and (

c) may examine all books, records and documents pertaining to operations at an oil sands site.

(2) A person authorized by the Board to exercise any powers referred to m subsection (1) shall, when exercising them, produce on demand his certificate of authority from the Board. Inspections and investigations

Stop orders Approval of scheme or operation

(3) A Board member, or a person authorized by the Board, may, if he considers that the circumstances so warrant, take possession of any book, record or document referred to in subsection (l)(

c) for a period of time that he considers reasonable and proper and shall issue a receipt for the book, record or document so taken.

(4) Every operator, agent or other person at an oil sands site shall provide to a Board member or a person authorized by the Board any reasonable assistance that he requires for the proper exercise of any of the powers conferred on him under subsection (1).

(5) A person who prevents, hinders or obstructs or who fails to per mit or assist any Board member or person authorized by the Board in the exercise of the powers referred to in subsection (1) is guilty of an offence. 9(1) If it appears to the Board, or a person authorized by the Board, that in respect of any construction or operation at an oil sands site there has been or is a contravention of, or a failure to comply with, any provision of this Act, the regulations or an approval, order, di rection, term or condition of the Lieutenant Govemor in Council or the Board, or that a method or practice employed or any equipment or facility at the oil sands site is hazardous, inadequate or defective, the Board, or the person authorized by the Board, may, by order, direct that the contractor, operator or owner of the oil sands site shall (

a) adopt methods or use equipment approved by the Board or take remedial measures before proceeding further with the con stmction or operation, or (

b) suspend the constmction or operation in whole or in part.

(2) Where the Board, or a person authorized by the Board, makes an order under subsection (1), it or he shall, as soon as possible, advise the contractor, operator or owner in writing setting out the reasons for its action.

(3) If the Board, or a person authorized by the Board, has made an order under subsection (1), the Board on its own initiative may, or at the request of a person direcdy affected by the order shall, hold an inquiry within a reasonable time of the date of the making of the order or of the request of that person, as the case may be, to inves tigate the circumstances leading to the making of the order.

(4) After an inquiry under subsection (3), the Board may (

a) renew or rescind the order issued under subsection (1), or (

b) take any other action or make any other order not inconsist ent with this Act that it considers to be warranted by the circum stances. APPROVALS AND PERMITS 10(1) No person shaU (

a) constmct facilities for a scheme or operation, or (

b) commence or continue a scheme or operation for the recovery of oil sands or cmde bitumen, unless the Board, on application, has granted an approval in respect of the scheme or operation.

(2) The Board shall, on receiving an application referred to in sub section (1), make any investigations or inquiries and hold any hear ings that it considers necessary or desirable in connection with the application.

(3) The Board may, with respect to an application referred to in subsection (1), (

a) if in its opinion it is in the public interest to do so, and with the prior authorization of the Lieutenant Govemor in Council, grant an approval on any terms and conditions that the Board considers appropriate, (

b) refuse to grant an approval, (

c) defer consideration of the application on any terms and con ditions that the Board may prescribe, or (

d) make any other disposition of the application that the Board considers to be appropriate.

(4) An authorization of the Lieutenant Govemor in Council is sub ject to any terms and conditions prescribed by the Lieutenant Gov emor in Council.

(5) Notwithstanding subsections (3) and (4), the authorization of the Lieutenant Govemor in Council is not required under this

section in respect of (

a) an approval of an experimental scheme where the total quan tity of energy, as estimated by the Board, in the oil sands, crude bitumen or derivatives of cmde bitumen recovered in any year will not exceed 12.5 petajoules, or (

b) an application to constmct a facility or to commence or con tinue a scheme or operation for the recovery of oil sands or cmde bitumen where the total quantity of energy, as estimated by the Board, in the oil sands, cmde bitumen or derivatives of crude bitumen recovered in any year will not exceed 5 petajoules. Approval 11(1) No pcrsou shaU constmct or operate a processing plant unless pro'feS plant the Board has, on application, granted an approval in respect of the processing plant.

(2) The Board shaU, on receiving an application referred to in sub section (1), make any investigations or inquiries and hold any hear ings that it considers necessary or desirable in connection with the application.

(3) The Board may, with respect to an application referred to in subsection (1), (

a) if in its opinion it is in the public interest to do so, and with the prior authorization of the Lieutenant Govemor in Council, grant an approval on any terms and conditions that the Board considers appropriate, (

b) refuse to grant an approval, (

c) defer consideration of the application on any terms and con ditions that the Board may prescribe, or 8

Approval by Ministers Industrial development permits (

d) make any other disposition of the application that the Board considers appropriate.

(4) An authorization of the Lieutenant Govemor in Council is sub ject to any terms and conditions prescribed by the Lieutenant Gov emor in Council.

(5) Notwithstanding subsections (3) and (4), the authorization of the Lieutenant Govemor in Council is not required under this

section in respect of (

a) an experimental scheme where the total quantity of energy, as estimated by the Board, of oil sands products obtained in any year wdl not exceed 12.5 petajoules, or (

b) an application to operate or constmct a processing plant where the total quantity of energy, as estimated by the Board, of oil sands products obtained in any year will not exceed 5 petajoules. 12(1) The Board shall refer an application made under

section 10 or 11 to (

a) the Minister of the Environment for his approval of the ap plication as it affects matters of the environment, and (

b) the Associate Minister of Public Lands and Wildlife for his approval of the application as it affects land and resources that are the property of the Crown in right of Alberta.

(2) The Minister of the Environment and the Associate Minister of Public Lands and Wildlife, or either of them, may give their approval of the application with or without conditions, but where conditions are imposed, the Board shall, unless otherwise directed by the Lieu tenant Govemor in Council, make its approval, if it grants an ap proval, subject to the conditions imposed by the Minister of the Environment or the Associate Minister of Public Lands and Wildlife, or both of them.

(3) Notwithstanding subsection (1), the Minister of the Environment or the Associate Minister of Public Lands and Wildlife may direct that (

a) an application, or (

b) a type of application for an approval under

section 10 or 11 or an amendment or type of amendment of an approval be not referred to him.

(4) The Minister of the Environment or the Associate Minister of PubUc Lands and Wildlife may authorize an employee of his depart ment to exercise the powers conferred on him by this section. 13(1) No cmde bitumen, derivatives of cmde bitumen, declared oil sands or oil sands products produced in Alberta shall be used in Alberta as a raw material or fuel in an industrial or manufacturing operation unless the Board, on application, has granted in accordance with this

section an industrial development permit authonzmg that use.

(2) Notwithstanding subsection (1), a permit under this section, under

section 30 of the Oil and Gas Conservation Act or under

section 28 of the Coal Conservation Act is not required if (

a) the industrial or manufacturing operation is wholly in the performance of a scheme or operation or of the operation of a processing plant, as the case may be, approved (

i) under

section 10 or 11 of this Act, or (ii) before the date of the coming into force of this section, under

section 31 of the Oil and Gas Conservation Act, unless the approval requires that a permit be obtained, or (

b) the total quantity of energy in cmde bitumen, derivatives of crude bitumen, declared oil sands or oil sands products used in any year as raw material or fuel or both in the industrial or manufacturing operation will not exceed 1 petajoule, and the total quantity of energy of crude bitumen, derivatives of crude bitu men, declared oil sands or oil sands products used in that year as a raw material in the industrial or manufacturing operation wiU not exceed 100 terajoules.

(3) The Board, on receiving an application under subsection (1) to gether with any information required by it, may, (

a) with the prior authorization of the Lieutenant Governor in Council, grant a permit for the use of cmde bitumen, derivatives of cmde bitumen, declared oil sands or oil sands products pro posed in the application, subject to the terms and conditions that it prescribes in the permit, (

b) refuse the application, (

c) defer consideration of the application on any terms and con ditions that the Board may prescribe, or (

d) make any other disposition of the application that the Board considers appropriate.

(4) The Board may hold a hearing with respect to an application under this section.

(5) The Board shall not grant a permit under this

section unless in its opinion it is in the public interest to do so having regard to (

a) the efficient use without waste of crude bitumen, derivatives of cmde bitumen, declared oil sands or oil sands products, (

b) the present and future availability of hydrocarbons in Alberta, and (

c) any other matter that the Board considers to be relevant.

(6) A permit granted pursuant to this

section (

a) shall be referred to as an "industrial development permit", (

b) shall be in the form prescribed by the order of the Lieutenant Govemor in Council authorizing the granting of the permit and 10

Amendment of approvals shall be subject to any terms or conditions prescribed by the Lieutenant Govemor in Council, (

c) shall authorize the use of the crude bitumen, derivatives of cmde bitumen, declared oil sands or oil sands products for the purposes prescribed in the permit, (

d) may prescribe the term for which the permit is granted, (

e) may prescribe the maximum quantities of crude bitumen, derivatives of cmde bitumen, declared oil sands or oil sands products that may be used annually or during the term of the permit, and (

f) shall be subject to any other terms and conditions prescribed in the permit.

(7) The Lieutenant Govemor in Council may make regulations ex empting from the operation of this

section (

a) any person or class of persons, (

b) any industrial or manufacturing operation or any part of the operation or any class of industrial or manufacturing operation, or (

c) any declared oil sands or oil sands product or any class of declared oil sands or oil sands products. 14(1) The Board may, on appUcation or its own motion, amend an approval granted under

section 10 or 11 or a permit granted under

section 13.

(2) The prior authorization of the Lieutenant Govemor in Council is required in respect of an amendment under this

section unless (

a) an authorization was not required in respect of the applica tion under

section 10, 11 or 13, as the case may be, or (

b) the amendment is, in the opinion of the Board, of a minor nature that does not warrant the authorization.

(3) The approval of the Minister of the Environment and the Asso ciate Minister of Public Lands and Wildlife is required in respect of an amendment under this

section unless an approval was not re quired in respect of the appUcation under

section 12.

(4) No change in the operator of an oil sands site has force or effect until the approval or permit has been amended to reflect the change. Failure to comply 15(1) The Licutcnant Govemor in Council may direct that the Board with orders couduct an inquiry to determine any question relating to the com pliance with a term or condition of an authorization of the Lieuten ant Govemor in Council under this Act.

(2) The Board shall, where directed by the Lieutenant Govemor in Council under subsection (1) to conduct an inquiry, (

a) fix a time and place for the inquiry, (

b) give the operator or permittee not less than 60 days' notice in writing of the time and place so fixed, and 11

Cancellation of approvals or permits Registered address of holder and agent (

c) publish notice of the inquiry.

(3) The Board shall report its findings to the Lieutenant Governor in Councd.

(4) The Lieutenant Govemor in Council may after receipt of the report of the Board direct that the Board amend or cancel the ap proval or permit or make any other order that in the opinion of the Lieutenant Govemor in Council is just and reasonable under the circumstances. 16(1) If an operator or permittee fails to comply with this Act or the regulations or with a term or condition of an approval or permit, as the case may be, issued under this Act, the Board, with the prior authorization of the Lieutenant Govemor in Council, may by order cancel or suspend the approval or permit or make any other order that in the opinion of the Board is just and reasonable under the circumstances.

(2) Notwithstanding subsection (1), the authorization of the Lieuten ant Govemor in Council is not required under this

section if the approval or permit was granted without the authorization of the Lieutenant Govemor in Council.

(3) Unless, in the opinion of the Board, an immediate danger to a person or to public or private property exists, the Board shall not (

a) cancel or suspend the approval or permit or make any other order under subsection (1) until it has given the operator or per mittee at least 30 days' notice to rectify his default, or (

b) require any action that would result in any significant ex pense, loss or deprivation to the operator or permittee without giving notice to the operator or permittee and an opportunity to be heard by the Board. GENERAL 17(1) Each operator shaU register with the Board his address and, (

a) if he is resident outside Alberta, shall (

i) register with the Board an address for service in Alberta, (ii) appoint an agent within Alberta to carry out his duties and responsibilities under this Act and the regulations, (iii) notify the Board in writing of the appointment of the agent under subclause (ii), and (iv) register with the Board the address in Alberta of his agent, or (

b) if he is resident in Alberta, (

i) may carry out his duties and responsibilities under this Act and the regulations through an agent, and (li) shall, if he carries out his duties and responsibilities through an agent, notify the Board in writing of the appoint- 12

Statutory obligations of holder not affected by agreement Scheme to maximize recovery of oil sands or crude bitumen ment of the agent and register with the Board the address in Alberta of the agent.

(2) The appointment of an agent in accordance with subsection (1) and the registration of his appointment and address with the Board does not relieve the operator of any duty or responsibdity under this Act or the regulations.

(3) If any of the addresses required or the agent appointed in accord ance with subsection (1) is changed, the operator shall within 15 days of the change register the change with the Board. 18 No agreement between an operator, owner or person having an interest in a mining operation, in situ operation or processing plant or in oil sands and any other person (

a) relieves the operator, owner or person having the interest of the obligation (

i) to perform a required abandonment operation, or (ii) to comply with the relevant provisions, orders, directives, terms or conditions prescribed by the Board or by the Lieu tenant Govemor in Council, (

b) precludes or prevents the conduct of any operation necessary for the purposes of clause (a), or (

c) relieves the operator, owner or person having the interest, as between himself and any other person, of liability with respect to any abandonment or other operation and the costs and expenses of that operation. 19(1) The Board (

a) shall, on the direction of the Lieutenant Govemor in Council, or (

b) may, on receiving an application or on its own initiative, prepare a scheme to enable an operator to maximize the recovery of oil sands or cmde bitumen in the area at or adjoining the boundaries of his oil sands site.

(2) The Board shall refer a scheme prepared under subsection (1) to (

a) the Minister of Energy and Natural Resources for his ap proval insofar as the scheme affects mines and minerals that are the property of the Crown in right of Alberta, and (

b) the Associate Minister of Public Lands and Wildlife for his approval insofar as the scheme affects the surface of land that is the property of the Crown in right of Alberta.

(3) The Minister of Energy and Natural Resources and the Associate Minister of Public Lands and Wildlife, or either of them, as the case may be, may approve a scheme with or without conditions.

(4) The Board shall, with respect to a scheme prepared under sub section (1), 13

Remedial action by Board Regulations (

a) hold a public hearing to hear representations of interested persons regarding the proposed scheme, or (

b) obtain the views of interested persons in any manner other than at a public hearing that, in the opinion of the Board, is suitable in the circumstances.

(5) The Board shall, following the proceedings held under subsection (4), make a recommendation to the Lieutenant Govemor in Council with respect to the establishment of a scheme.

(6) The Lieutenant Govemor in Council may order the scheme rec ommended by the Board to be established with or without all or any of the conditions prescribed under subsection (3).

(7) The Lieutenant Govemor in Council may, in an order establish ing a scheme, prescribe that the scheme is general in its application or is restricted to those operators or oil sands sites designated in the order.

(8) The Lieutenant Govemor in Council may, in an order establish ing a scheme, provide for all or any of the following: (

a) the circumstances and conditions under which any person is entitled to receive compensation under the scheme; (

b) the matters in respect of which compensation is payable as a result of the scheme and the method by which the amount of any compensation is to be ascertained; (

c) the manner in which compensation ascertained under clause (

b) is to be payable; (

d) the persons to whom and by whom compensation ascertained under clause (

b) is to be payable; (

e) any other matter or thing that the Lieutenant Govemor in Council considers necessary or appropriate for carrying out the scheme.

(9) The Lieutenant Govemor in Council may, on the recommenda tion of the Board, amend or revoke any scheme established under this section. 20(1) If, in the opinion of the Board, an operation at an od sands site or a suspension or abandonment of any scheme or operation is not in accordance with the terms or conditions prescribed under this Act or the regulations or in an approval issued under this Act, the Board or any person authorized by it may enter on the oil sands site and do whatever the Board considers necessary to assure that the operation, suspension or abandonment complies with the conditions prescribed in the approval.

(2) Any costs incurred or authorized by the Board under this

section are a debt payable to the Board by the holder of the approval. Regulations 21(1) The Board may make regulations (

a) prescribing the manner in which an application under this Act or the regulations is to be made; (

b) specifying the information that is to be included in or to accompany an application under this Act or the regulations; 14

(

c) requinng that an applicant deposit a specified performance bond with the Provincial Treasurer as a guarantee of proper op eration and abandonment of any operation authorized by this Act, and prescribing the form and amount of the deposit; (

d) regulating, restricting or prohibiting the construction or op eration of an oil sands site at a point within a prescribed distance of a railway, pipeline or other right of way, road allowance, sur veyed roadway, dwelling or other man-made structure; (

e) requiring the erection of fences and the posting of signs or notices at an oil sands site; (

f) prescribing the methods, equipment and materials to be used in the constmction, operation or abandonment of an oil sands site; (g). respecting methods of operation to be observed for the pre vention of waste; (

h) requiring and prescribing the taking and method of taking of samples of any kind; (

i) requiring and prescribing any tests, analyses, surveys and logs; (

j) requiring the submission to the Board of samples, cores, in formation obtained by tests, analyses, surveys or logs, or any other data relating to oil sands, cmde bitumen or oil sands prod ucts; (

k) prescribing the methods to be used for the measurement of oil sands, crude bitumen, derivatives of crude bitumen or oil sands products or of other products or materials obtained from or used in the recovery or production of oil sands or cmde bitu men or oil sands products and the standard conditions to which those measurements shall be converted; (1) respecting the constmction, operation and abandonment of oil sands sites; (

m) exempting experimental schemes or parts of them from all or any part of this Act or the regulations, except with respect to the granting of an approval under

section 10 or 11; (

n) requiring the submission to the Board of records and reports of operations, plot plans, process flow diagrams, process piping and instmment diagrams, operating and equipment schedules, mine plans, geological, geotechnical and hydrological studies and capital and operating cost information; (

o) prescribing the inspections that shall be made at an oil sands site and by whom those inspections shall be carried out and re ported; (

p) prescribing the records to be kept and the persons by whom, the manner in which, the place at which and the length of time for which they shall be kept, and providing for their submission to the Board; (

q) respecting the records, reports and information submitted to or acquired by the Board under this Act that shall be confidential, 15

False reports Civil cause of action not affected by prosecution Offences and prescribing when, to whom and the manner in which those records, reports or information may be made available; (

r) specifying types, classes or kinds of reports that shall be made, the persons required to make them, the authority or person to whom they shall be submitted, the times at which they shall be made, and the form, nature and extent of those reports; (

s) establishing a

schedule of fees (

i) pertaining to an application or proceeding under this Act or the regulations; (ii) for providing any map, report, document or other record of the Board; (iii) for any other service provided by the Board; (

t) prescribing the forms to be used under this Act or the regu lations, either generally or for a particular case; (

u) generally to conserve oil sands and cmde bitumen and to prevent the waste or improvident disposition of od sands, cmde bitumen, derivatives of cmde bitumen, declared oil sands or oil sands products.

(2) If a regulation made pursuant to subsection (1) authorizes the Board to approve an activity or method of operation, the Board may prescribe the conditions under which it grants the approval.

(3) Notwithstanding a regulation made under subsection (l)(b), the Board may act on an application that does not contain aU the infor mation specified in the regulation or may require any other infor mation in addition to or in lieu of the information specified in that regulation. OFFENCES AND PENALTIES 22 No person shaU knowingly make a false statement in a report or entry required by this Act or the regulations. 23(1) No person shaU commit waste.

(2) No prosecution may be instituted under subsection (1) vrithout the consent in writing of the Board.

(3) Notwithstanding a prosecution under this Act, the Board may commence and maintain an action to enjoin a person from commit ting waste. 24 A prosecution under this Act does not deprive a person suffering damages or injury of any cause of action that he may have. 25 A person who (

a) whether as a principal or otherwise, contravenes or fails to comply with this Act or the regulations or with a term or condi tion of an authorization, approval or permit, as the case may be, (

b) either alone or in conjunction or participation vnth any other person induces or causes a holder of an authorization, approval 16

IS or permit to contravene or to default in complying with a pro vision of the authorization, approval or permit, or (

c) instmcts, orders, directs, induces or causes an officer, agent or employee of a holder of an authorization, approval or permit to contravene or to default in complying with a term or condition of the authorization, approval or permit is guilty of an offence. Limitatipns on 26 A prosccutiou of an offeucc under this Act may be commenced prosecutions within 18 months from the date on which the subject matter of the prosecution arose, and not afterwards. General offence 27(1) A pcrsou who is guilty of an offcncc under this Act is liable, (

a) in the case of a corporation, to a fine of not less than $500 and not more than $5000, and (

b) in the case of an individual, to a fine of not less than $50 and not more than $1000 or to a term of imprisonment not exceeding 6 months or to a fine and imprisonment.

(2) A person who is guilty of a continuing offence under this Act liable, (

a) in the case of a corporation, to a fine of not less than $500 and not more than $5000 for the first day on which the offence occurs and of not less than $300 and not more than $3000 for each subsequent day during which the offence occurs, and (

b) in the case of an individual, to a fine of not less than $50 and not more than $500 for the first day on which the offence occurs and of not less than $25 and not more than $500 for each sub sequent day during which the offence occurs.

(3) A penalty imposed for a breach of a provision of this Act or the regulations is in addition to a penalty imposed by any other Act for the same offence or matter. TRANSITIONAL AND CONSEQUENTIAL AMENDMENTS Transitional 26(1) Whcrcvcr a reference is made to

Part VIA of The Oil and Gas Conservation Act,

chapter 63 of the Statutes of Alberta, 1957, to

Part 8 of The Oil and Gas Conservation Act, 1969 or to

Part 8 of the Oil and Gas Conservation Act, in any other Act, regulation, order or di rection or in any contract, agreement or other instrument in force in Alberta, the reference shall be deemed to be to this Act.

(2) Wherever anything has been done, constituted, effected, instituted or ordered to be done under

Part VIA of The Oil and Gas Conserva tion Act,

chapter 63 of the Statutes of Alberta, 1957,

Part 8 of The Od and Gas Conservation Act, 1969 or

Part 8 of the Oil and Gas Conser vation Act, it has the same force and effect as though done, constituted, effected, instituted or ordered to be done under this Act. Transitional 2%

(1) Any proceeding commenced pursuant to

Part 8 of the Oil and Gas Conservation Act before the commencement of this

section shall be continued and completed pursuant to this Act. 17

(2) An approval of (

a) a scheme or operation for the recovery of oil sands, crude bitumen or products derived from them, or (

b) a processing plant for the processing of oil sands or crude bitumen under The OU and Gas Conservation Act,

chapter 63 of the Statutes of Alberta, 1957, The Oil and Gas Conservation Act, 1969 or the Oil and Gas Conservation Act shall be deemed to be an approval of a scheme or operation, or an approval of a processing plant, as the case may be, under this Act.

(3) An industrial development permit relating to the use of crude bi tumen, derivatives of crude bitumen or oil sands products under the Oil and Gas Conservation Act shall be deemed to be a permit under this Act. Consequential 30(^7j The Energy Resources Conservation Act is amended in

section amendments jg^j^ ^^^ ^ ^^j scctlon 20 by adding ", the Oil Sands Conservation Act" after "the Turner Valley Unit Operations Act" wherever it occurs.

(2) The Expropriation Act is amended in the

Schedule by adding the following after

section 7: 8. Oil Sands Conservation Act Schemes under

section 19 9. Oil and Gas Conservation Act Schemes under

section 91 (3) The Labour Relations Act is amended by repealing

section 63(

d) and substituting the following: (d) "oil sands" means (

i) sands and other rock materials containing cmde bitumen, (ii) the cmde bitumen contained in those sands and other rock materials, and (iii) any other mineral substances, other than natural gas, in association with that cmde bitumen or those sands and other rock materials referred to in subclauses (

i) and (ii);

(4) The Mines and Minerals Act is amended (

a) by repealing

section 1(1 )(

d) and substituting the following: (d) "cmde bitumen" means a naturally occurring viscous mixture, mainly of hydrocarbons heavier than pentane, that may contain sulphur compounds and that, in its naturally occurring viscous state, will not ffow to a well; (

b) by repealing

section l(l)(

q) and substituting the following: (q) "od sands" means (

i) sands and other rock materials containing cmde bitu men, (ii) the cmde bitumen contained in those sands and other rock materials, and 18

(iii) any other mineral substances, other than natural gas, in association with that cmde bitumen or the sands and other rock materials referred to in subclauses (

i) and (ii), and includes a hydrocarbon substance declared to be oil sands under

section 7(2) of the Oil Sands Conservation Act;

(5) The Municipal Taxation Act is amended in

section l(n)(iii.

l) by striking out "the Oil and Gas Conservation Act" and substituting "section l(l)(

n) of the Oil Sands Conservation Act".

(6) The Oil and Gas Conservation Act is amended (

a) in

section 1(1) (

i) in clause (

b) by striking out ", cmde bitumen", (ii) by repealing clause (

f) and substituting the following: (f) "cmde bitumen" means a naturally occurring viscous mixture, mainly of hydrocarbons heavier than pentane, that may contain sulphur compounds and that, in its nat urally occurring viscous state, will not flow to a well; (iii) by repealing clause (

o) and substituting the following: (o) "od sands" means (

i) sands and other rock materials containing cmde bitumen, (ii) the cmde bitumen contained in those sands and other rock materials, and (ui) any other mineral substances, other than natural gas, in association with that cmde bitumen or those sands and other rock materials referred to in sub clauses (

i) and (ii); (iv) in clause (x) (

A) by striking out ", gas or cmde bitumen" wherever it occurs and substituting "or gas", and (

B) in subclause (

i) by striking out "or oil sands deposit"; (

v) in clause (y)(

i) by striking out ", gas or cmde bitumen" and substituting "or gas"; (

b) in

section 3 by striking out "and to cmde bitumen from oil sands in Alberta and products derived therefrom, ; (

c) in

section 4 (

i) by striking out ", gas and cmde bitumen" wherever it oc curs and substituting "and gas", (ii) in clause (

d) by striking out "or of cmde bitumen from any oil sands deposit"; (

d) in

section 5(4) by adding ", the Oil Sands Conservation Act" after "the Turner Valley Unit Operations Act ; (

e) in

section 10(1) 19

(

i) in clause (g.

l) by striking out", oil or cmde bitumen" and substituting "or od", (ii) by repealing clause (m), (iii) in clause (n.

l) by striking out ", oil sands", and (iv) in clause (

v) by striking out ", oil sands, cmde bitumen"; (

f) in

section 10(2)(

c) by striking out ", gas and cmde bitumen" and substituting "and gas"; (

g) in

section 21 (

i) by repealing subsection (l)(c), (ii) in subsection (2) by striking out ", zone or oil sands de posit" and substituting "or zone"; (

h) in

section 22 by adding the following after subsection (2):

(3) This

section does not apply in respect of cmde bitumen or synthetic cmde oil. (

i) in

section 26(1) by adding "or" at the end of clause (d). by striking out "or" at the end of clause (

e) and by repealing clause (f); (

j) by repealing

section 29(2); (

k) in

section 30 (

i) in subsection (l)(

a) by striking out ", cmde oil, crude bi tumen or synthetic cmde oil" and by substituting "or cmde od", (ii) in subsection (3)(

a) by striking out "or

section 31"; (

I) by repealing

Part 8; (

m) in

section 46(

b) by striking out "under

section 31" and sub stituting "under the Oil Sands Conservation Act"; (

n) in

section 88(1 )(

b) by striking out ", gas, oil sands or crude bitumen" wherever it occurs and substituting "or gas".

(7) The Oil Sands Technology and Research Authority Act is amended (

a) by repealing

section 1(

b) and substituting the following: (b) "cmde bitumen" means a naturally occurring viscous mixture, mainly of hydrocarbons heavier than pentane, that may contain sulphur compounds and that, in its naturally occurring viscous state, will not flow to a well; (

b) by repealing

section 1(

h) and substituting the following: (h) "od sands" means (

i) sands and other rock materials containing cmde bitu men, (ii) the cmde bitumen contained in those sands and other rock materials, and 20

(iii) any other mineral substances, other than natural gas, in association with that cmde bitumen or those sands and other rock materials referred to in subclauses (

i) and (ii);

(8) The Pipeline Act is amended in

section 1(1) (

a) by repealing clause (a.

l) and substituting the following: (a.l) "cmde bitumen" means a naturally occurring viscous mixture, mainly of hydrocarbons heavier than pentane, that may contain sulphur compounds and that, in its naturally occurring viscous state, will not flow to a well; (

b) by repealing clause (

p) and substituting the following: (p) "oil sands" means (

i) sands and other rock materials containing cmde bitu men, (ii) the cmde bitumen contained in those sands and other rock materials, and (iii) any other mineral substances, other than natural gas, in association with that cmde bitumen or those sands and other rock materials referred to in subclauses (

i) and (ii); (

c) in clause (

x) by adding "or the Oil Sands Conservation Act" after "Oil and Gas Conservation Act". Commencement 31 Thls Act comcs into forcc on Proclamation. 21 Title: 1983 (20th, 1st) Bill 106, Oil Sands Conservation Act

Document details

Collection	Alberta — Bills
Citation	L20 S1 3725
Type	bill
Volume / chapter	L20 S1 3725
Language	en
Format	json
Source	PROVINCIAL
Identifier	788484de4b117105cbe01882a5c5f1bf37a94940

Source file is stored in the law ingest library (json).