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1998/99 Legislative Session: 3rd Session, 36th Parliament

FIRST READING

The following electronic version is for informational purposes only.

The printed version remains the official version.

HONOURABLE DAN MILLER

MINISTER OF ENERGY AND MINES AND MINISTER

RESPONSIBLE FOR NORTHERN DEVELOPMENT

BILL 32

OIL AND GAS COMMISSION ACT

Contents

Section

Definitions

Corporation established

Purposes

Relationship with aboriginal and treaty rights

Powers and duties of the board

Capacity and powers of the commission

Advisory committee

Alternative dispute resolution

Advisory committee's role in reconsideration by alternative dispute resolution

Inquiries and recommendations

Conflict of interest

Officers and employees

Financial administration

Audit

Annual report

Investment

Commission's responsibilities under various enactments

Transition

Common carrier

Common purchaser

Common processor

Regulations

Appropriation

Forms

25-71

Consequential amendments

Commencement

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province

of British Columbia, enacts as follows:

Definitions

(1) In this Act:

"advisory committee" means the advisory committee established under

section 7;

"commission" means the Oil and Gas Commission established under

section 2;

"minister" means the minister responsible for the administration of this Act;

"oil and gas activity" means any activity related to

(

a) the search for petroleum, natural gas or both,

(

b) the exploration and development of petroleum, natural gas or both, or

(

c) the production, gathering, processing and storage of petroleum, natural gas

or both,

and includes

(

d) the reclamation of sites disturbed because of an activity within this

definition, and

(

e) the monitoring and long term protection, control and treatment of those

sites;

"specified enactment" means

(

a) any of the following provisions of the Forest Act ,

but only in relation to a licence to cut:

(

i) section 51 (licence to cut);

(ii)

section 54 (consent to transfer);

(iii)

section 55 (cancellation for failure to obtain consent);

(iv)

section 76 (suspension of rights);

(

v) section 77 (cancellation);

(vi)

section 81 (eligibility),

(

b) section 117 of the Forest Act (road use permits for industrial use),

(c)

section 21 (2) of the Forest Practices Code of British Columbia Act (logging

plans),

(

d) section 12 of the Heritage Conservation Act (permit authorizing an action

referred to in

section 13 of that Act),

(

e) any of the following provisions of the Land Act :

(

i) section 11 to the extent that

section 11 relates to a lease or grant

described in

section 11 (2) (

b) to (d) (disposing of Crown land);

(ii)

section 14 (temporary occupation of Crown land);

(iii)

section 21 (limit on area of lease);

(iv)

section 26 (1) (interest on deferred payments);

(

v) section 30 (amendment of area under application);

(vi)

section 32 (application procedure for dispositions);

(vii)

section 33 (public notice), except in relation to a disposition by

purchase;

(viii)

section 35 (feasibility studies);

(ix)

section 36 (security deposit);

(

x) section 37 (affidavit);

(xi)

section 38 (lease of Crown land);

(xii)

section 39 (licence of occupation);

(xiii)

section 40 (right of way and easement);

(xiv)

section 41 (failure to complete survey);

(xv)

section 42 (2) (date of disposition);

(xvi)

section 43 (cancellation of disposition);

(xvii)

section 44 (amendment and cancellation if approval of grant

improper);

(xviii) sections 46 (2) (relief respecting cancelled disposition);

(xix)

section 59 (trespass on Crown land);

(xx)

section 63 (disputed applications);

(xxi)

section 67 (1) (garbage on Crown land);

(xxii)

section 96 (1) (occupational rental);

(xxiii)

section 99 (2) to (4) (assignment of disposition);

(xxiv)

section 107 (restricting lawsuits against public officials);

(xxv)

section 109 (1) (execution of documents),

(

f) any of the following provisions of the Waste Management Act :

(

i) section 8 (special waste storage and disposal);

(ii)

section 10 (permits);

(iii)

section 11 (approvals);

(iv)

section 13 (amendment of permits and approvals);

(

v) section 14 (transfer of permits and approvals);

(vi)

section 16 (abandonment), and

(

g) any of the following provisions of the Water Act ,

but only in relation to an approval as defined in

section 1 of the Water

Act :

(

i) section 8 (short term use of water);

(ii)

section 9 (1) (a) (changes in and about a stream);

(iii)

section 22 (records);

(iv)

section 23 (suspension and cancellation of rights and licences);

(

v) section 26 (permits over Crown land).

(2) Words and expressions used but not defined in this Act have the same meanings

as in the Petroleum and Natural Gas Act .

Corporation established

(1) A corporation, to be known as the Oil and Gas Commission, is established,

consisting of a board of 2 directors appointed for a term not exceeding 5 years,

by the Lieutenant Governor in Council who must designate one of the directors

as the commissioner and the other as the deputy commissioner.

(2) A vacancy in the membership of the board or the incapacity of one of the directors

does not impair the power of the remaining director to act.

(3) The commissioner is chair of the board.

(4) One director in office constitutes a quorum of the board, and, in the case of a tie

vote of the directors, the chair has a second or casting vote.

(5) The commission is an agent of the government.

(6) A director or former director may be reappointed.

Purposes

3 The purposes of the commission are to

(

a) regulate oil and gas activities and pipelines in British Columbia in a manner

that

(

i) provides for the sound development of the oil and gas sector, by

fostering a healthy environment, a sound economy and social well

being,

(ii) conserves oil and gas resources in British Columbia,

(iii) ensures safe and efficient practices, and

(iv) assists owners of oil and gas resources to participate equitably in the

production of shared pools of oil and gas,

(

b) provide for effective and efficient processes for the review of applications

related to oil and gas activities or pipelines, and to ensure that applications

that are approved are in the public interest having regard to environmental,

economic and social effects,

(

c) encourage the participation of First Nations and aboriginal peoples in

processes affecting them,

(

d) participate in planning processes, and

(

e) undertake programs of education and communication in order to advance

safe and efficient practices and the other purposes of the commission.

Relationship with aboriginal and treaty rights

4 For greater certainty, the provisions of this Act are intended to respect aboriginal and

treaty rights in a manner consistent with

section 35 of the Constitution Act, 1982 .

Powers and duties of the board

(1) The board must manage the affairs of the commission or supervise the

management of those affairs and may exercise the powers conferred on the board

under this Act and the powers of the commission.

(2) The board may pass resolutions it considers necessary or advisable to manage

and conduct the affairs of the commission and to exercise the board's powers and

to perform its duties.

Capacity and powers of the commission

(1) For the purposes of this Act, the commission may

(

a) acquire, hold and dispose of property,

(

b) invest money, and, subject to the prior approval of the Lieutenant Governor

in Council, borrow money,

(

c) negotiate and enter into agreements with the government, or with an official

or agency of it, or with any person, including, subject to the prior approval

government of another province, First Nations or local governments, or

with an official or agency of any of them,

(

d) subject to the prior approval of the Lieutenant Governor in Council, expend

money for mitigation measures in relation to oil and gas activities and

pipelines, and

(

e) do other things that the Lieutenant Governor in Council may authorize.

(2) For the purpose of discharging the commission's responsibilities under a

provision referred to in paragraph (

e) of the definition of "specified enactment"

section 1 (1), an employee of the commission who has identification from the

commission for the purpose, the commissioner and deputy commissioner have at

reasonable times a right to enter Crown land and premises.

Advisory committee

(1) The minister must establish an advisory committee to

(

a) provide advice and make recommendations to the commission as to the

fulfillment of the commission's purposes and its adherence to the responsibilities

of the commission under

section 17,

(

b) fulfill that committee's role described in

section 9,

(

c) anticipate and identify environmental, economic and social issues arising

out of the commission's operations,

(

d) by June 30 of each year, the committee must review the commission's

operating plans and audited financial statements for the fiscal year of the

commission that ended on March 31 of that year, and

(

e) assist the commission to develop short and long term operating plans.

(2) The commission may pay to an advisory committee member

(

a) an allowance for reasonable travelling and incidental expenses necessarily

incurred in carrying out the responsibilities of the advisory committee, and

(

b) if the advisory committee member is not a member of the Legislative

Assembly or a public servant, remuneration at rates set by the Lieutenant

Governor in Council.

Alternative dispute resolution

(1) For the purpose of resolving disputes relating to the commission's discretion,

functions and duties under this Act in relation to a specified enactment, the

commission must encourage the use of consensual alternative dispute resolution

methods.

(2) The commission on its own initiative or at the request of an interested person may

authorize one or more persons to facilitate settlement, by a process of consensual

alternative dispute resolution, of a dispute relating to the carrying out of the

commission's discretion, functions and duties under

(

a) this Act in relation to a specified enactment, or

(

b) the Petroleum and Natural Gas Act or the Pipeline Act in relation to a

licence, permit, approval or other authorization under either of those Acts.

(3) The commission may ask the person or persons authorized under subsection (2),

if unsuccessful in settling the dispute, to make recommendations that must be

considered by the commission before deciding the disputed matter.

Advisory committee's role in reconsideration by alternative dispute resolution

(1) The advisory committee, on application in the prescribed manner by an interested

person, may request that the commission grant an authorization, referred to in

section 8 (2), in respect of any decision of the commission other than a decision

for which a right of appeal is provided under

section 136 of the Petroleum and

Natural Gas Act,

section 44 of the Waste Management Act or

section 40 of the

Water Act .

(2) If the commission grants the authorization requested by the advisory committee,

(

a) the effect of the commission's original decision is suspended pending the

outcome of the reconsideration under paragraph (b), and

(

b) following the consensual alternative dispute resolution process, and after

taking into account the recommendations referred to in

section 8 (3), if there

are any, the commission must reconsider the original decision and redecide

the matter in a manner the commission considers appropriate.

(3) The advisory committee must exercise its discretion to make a request under

subsection (1) within the prescribed period after the decision that is the subject of

the request.

(4) The commission must

(

a) grant or refuse the request within the prescribed period after it receives the

request, and

(

b) redecide the matter that is the subject of the request within the prescribed

period after granting the request.

Inquiries and recommendations

(1) The commission may, and at the request of the Lieutenant Governor in Council,

must, at the places, at the times and in a manner it considers advisable

(

a) make inquiries and investigations and prepare studies and reports on any

matter within the scope of this Act, and

(

b) recommend to the Lieutenant Governor in Council any measures the

commission considers necessary or advisable in the public interest related

to oil and gas activities or pipelines.

(2) Subsection (1) does not apply to a matter that is before the commission.

Conflict of interest

(1) A director or senior officer of the commission must not, directly or indirectly,

(

a) hold, acquire or have a beneficial interest in a share, or other security of a

corporation or other person subject to regulation under this Act, or

(

b) have a significant beneficial interest in a device, appliance, machine, article,

patent or patented process, or a part of it, that is required or used by a

corporation or other person referred to in paragraph (

a) for the purpose of

its equipment or service.

(2) A director or senior officer of the commission, in whom a beneficial interest

referred to in subsection (1) (

a) or (

b) is or becomes vested, must divest himself

or herself of the beneficial interest within 3 months after becoming a director or

senior officer or after acquisition of the property, as the case may be.

(3) The use or purchase for personal or domestic purposes, of gas or petroleum

products or service from a person subject to regulation under this Act is not a

contravention of this section, and does not disqualify a director or senior officer

from acting in any matter affecting that person.

Officers and employees

(1) The commissioner may appoint officers and employees necessary to carry on the

business and operations of the commission and may define their duties and

determine their remuneration.

(2) The Public Service Act and the Public Service Labour Relations Act apply to the

commission and to its officers and employees, except that the references in

section 22 of the Public Service Act to the commissioner under that Act and to a

deputy minister must be read as references to the commissioner under this Act.

Financial administration

(1) The board must establish and maintain an accounting system satisfactory to the

Minister of Finance and Corporate Relations.

(2) Whenever required by the minister, the board must provide detailed accounts of

its revenues and expenditures for the period or to the date the minister designates.

(3) All books or records of account, documents and other financial records are at all

times open for inspection by the minister or a person designated by the minister.

(4) The Minister of Finance and Corporate Relations may direct the Comptroller

General to examine and report to Treasury Board on any or all of the financial and

accounting operations of the commission.

(5) The fiscal year of the commission is a period of 12 months beginning on April 1

in each year and ending on March 31 in the next year.

(6) The Minister of Finance and Corporate Relations is the fiscal agent of the

commission.

Audit

14 At least once for each fiscal year, the accounts of the commission must be audited and

reported on to the Executive Council through the minister and to the commission by

an auditor appointed by the Lieutenant Governor in Council, and the costs of the audit

must be paid by the commission.

Annual report

(1) The commission must prepare and deliver to the Executive Council through the

minister, within 2 months after the end of the fiscal year of the commission,

(

a) a report of the commission on its operations for the preceding fiscal year,

and

(

b) a financial statement in the form required by the Minister of Finance and

Corporate Relations showing the revenues, expenditures, assets and

liabilities of the commission at the end of the preceding fiscal year.

(2) The financial statement delivered under subsection (1) must be prepared in

accordance with generally accepted accounting principles.

Investment

(1) The commission may place with the Minister of Finance and Corporate Relations

investment money the commission receives but does not immediately require for

carrying out the purposes of this Act.

(2) Money placed with the Minister of Finance and Corporate

Relations under this

section is to be treated for all purposes as money placed

with that minister under

section 40 (5) of the Financial Administration Act .

Commission's responsibilities under various enactments

(1) For the regulation of oil and gas activities and pipelines, the commission, instead

of the official named in a specified enactment,

(

a) has all the powers relating to a discretion, function or duty referred to in the

specified enactment, and

(

b) is charged with the all the responsibilities pertaining to that discretion,

function or duty.

(2) The exercise of the powers conferred on the commission by subsection (1), the

carrying out of each discretion, function and duty referred to in a specified

enactment and the responsibilities with which the commission is charged under

this

section remain subject in all respects to the Act that contains the specified

enactment, and that Act continues to apply.

(3) Despite subsections (1) and (2), the commission must not grant or refuse a road

use permit under

section 117 of the Forest Act without first consulting with the

district manager under that Act.

(4) Despite subsections (1) and (2), but subject to subsection (5), the commission and

the appropriate officials under the various Acts that contain the specified

enactments are each responsible for enforcing the provisions of those Acts in

relation to the matters described in the specified enactments.

(5) Despite subsections (1) and (2), the appropriate officials

under the Forest Practices Code of British Columbia Act , and not the

commission, continue to be responsible for enforcing the provisions of that

Act in relation to logging plans.

(6) Despite subsections (1) and (2),

section 143 of the Forest Act does not apply to a

determination, order or decision of the commission under

section 76 or 77 of the

Forest Act .

(7) The production of an approval as defined in

section

1 of the Water Act , or a copy of an approval so defined, certified

to be a copy by the commission or an employee of the commission authorized by

it to certify copies, is without further proof evidence in a court of the matters

and things set out in the approval.

Transition

(1) If directly related to an oil and gas activity or a pipeline,

(

a) an approval, licence, permit or other authorization referred to in a specified

enactment listed in paragraph (a), (b), (c), (d), (

f) or (

g) of the definition of

"special enactment" in

section 1 (1), and

(

b) an instrument referred to in paragraph (

e) of that definition,

that has been issued under the Act that contains the specified enactment before

the date this

section comes into force, and that is in effect immediately before that

date, is deemed to be an approval, licence, permit, other authorization or

instrument issued by the commission under this Act.

(2) If doubt exists as to whether an approval, licence, permit, other authorization or

instrument referred to in subsection (1) is directly related to an oil and gas activity

or holder, the commissioner by order may resolve the doubt.

Common carrier

(1) On application by an interested party, the commission, after a hearing, and with

the approval of the minister, by order, to be effective on the date of the application

or on another date determined by the commission, may declare a person to be a

common carrier with respect to the operation of a pipeline for the transportation

of one or more of crude oil, natural gas or natural gas liquids.

(2) The commission may require the applicant to notify all persons whom the

commission determines to be affected by the application.

(3) A common carrier must not unreasonably discriminate

(

a) between itself and persons who apply to transport crude oil, natural gas or

natural gas liquids in the common carrier's pipeline, or

(

b) among the persons who so apply.

Common purchaser

(1) On application by an interested party, the commission after a hearing, and with

the approval of the minister, by order, to be effective on the date of the application

or on another date determined by the commission, may declare, subject to

subsection (2), a person, who purchases or otherwise acquires, from a pool

designated by the commission, crude oil, natural gas or natural gas liquids, to be

a common purchaser of the crude oil, natural gas or natural gas liquids.

(2) The commission must not require a common purchaser to purchase natural gas

from a pool

(

a) in a greater total amount, or

(

b) at a greater rate of production,

than the common purchaser was obligated to purchase from that pool under the

gas purchase contracts existing immediately before an order was made under this

section.

(3) The commission may require the applicant to notify all persons whom the

commission determines to be affected by the application.

(4) A common purchaser must not unreasonably discriminate

(

a) between itself and persons who apply for the services offered by the

common purchaser, or

(

b) among the persons who so apply.

Common processor

(1) On application by an interested party, the commission, after a hearing, and with

the approval of the minister, by order, to be effective on the date of the application

or on another date determined by the commission, may declare a person that owns

or operates a plant for processing natural gas to be a common processor of the

natural gas.

(2) The commission may require the applicant to notify all persons whom the

commission determines to be affected by the application.

(3) A common processor must not unreasonably discriminate

(

a) between itself and persons who apply for the services offered by the

common processor, or

(

b) among the persons who so apply.

Regulations

(1) In this section, "producer" means

(

a) a holder of a location who markets or otherwise disposes of petroleum,

natural gas or both, produced by

(

i) the holder of the location, or

(ii) a person authorized to produce the petroleum, natural gas or both by

the holder of the location, and

(

b) a person authorized by a holder of a location to produce and market or

otherwise dispose of, on the holder's behalf, petroleum, natural gas or both.

(2) The Lieutenant Governor in Council may make regulations referred to in

section 41 of the

Interpretation Act .

(3) Without limiting subsection (2), the Lieutenant Governor in Council may make

regulations

(

a) respecting policies and procedures to be followed by the commission in

conducting its affairs, exercising its powers, carrying out its discretion,

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, and

(

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

(4) A regulation under subsection (3) (

a) to (

c) respecting any matter

(

a) under the Petroleum and Natural Gas Act ,

is subject to that Act and the regulations under that Act,

(

b) under the Pipeline Act , is subject to

that Act and the regulations under that Act, and

(

c) referred to in a specified enactment, is subject to the Act that contains the

specified enactment and to the regulations under that Act.

(5) Without limiting subsection (2), the Lieutenant Governor in Council, for the

purpose of recovering expenses arising out of the administration of this Act in a

fiscal year, may make regulations as follows:

(

a) requiring producers to pay a levy to the government;

(

b) establishing the amount, or the method of determining the amount, of the

levy;

(

c) designating an employee of the government as the collector of the levy for

payment under

section 23 to the commission and providing for its

collection;

(

d) providing for imposition of penalties to enforce payment of the levy,

including cancellation of a permit, licence or lease granted under the

Petroleum and Natural Gas Act .

Appropriation

23 The Minister of Finance and Corporate Relations, out of the consolidated revenue

fund, must pay to the commission

(

a) the levies authorized under

section 22 (5), and

(

b) the revenue derived from fees in relation to those approvals, licences,

permits and other authorizations issued by the commission under the

Petroleum and Natural Gas Act and the Pipeline Act .

Forms

(1) The commission may require forms for applications referred to in

section

22 (3) (

b) or for other purposes, including but not limited to forms by which

applicants may apply under one or more of the Petroleum and Natural Gas Act,

the Pipeline Act and the specified enactments for an approval,

licence, permit, other authorization, the issuance of an instrument or the exercise

of a discretion of the commission or for any combination of those things.

(2) A form required under subsection (1) must be consistent with this Act and with

each other Act, if any, that is applicable to the subject matter of the form.

Consequential Amendments

Financial Information Act

Schedule 2 of the Financial Information Act, R.S.B.C. 1996, c. 140, is amended by adding

" Oil and Gas Commission " .

Freedom of Information and Protection of Privacy Act

Schedule 2 of the Freedom of Information and Protection of Privacy Act, R.S.B.C. 1996,

c. 165, is amended by adding the following:

Public Body:

Oil and Gas Commission

Head:

Commissioner .

Petroleum and Natural Gas Act

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

(

a) by repealing the definition of "certificate of restoration" and substituting the

following:

"certificate of restoration" means a certificate issued by the commission certifying

that, in the commission's opinion, all or part of a location is, restored; ,

(

b) by adding the following

definitions:

"commission" means the commission established under

section 2 of the Oil and Gas

Commission Act ;

"director" means an officer or employee of the ministry who is designated as the

Director of Petroleum Lands by the minister; ,

(

c) by repealing the definition of "commissioner" and substituting the following:

"commissioner" means the commissioner designated

under

section 2 of the Oil and Gas Commission Act ; , and

(

d) in the

definitions of "gas well" , "geophysical exploration" , "petroleum well" and

"zone" by striking out "minister" and substituting "commission" .

Section 4 is repealed and the following substituted:

Entry on location

(1) An employee of the ministry authorized by the minister or an employee of the

commission authorized by it may enter a location to examine and inspect for the

purposes of this Act.

(2) A person must admit to a location an employee of the ministry or of the

commission, authorized under subsection (1), to examine or inspect, and must

provide that employee with the means and assistance necessary for the purpose.

29 Sections 7, 99, 100, 105 (1), (2), (3), (4) and (5), 107 (2) (

c) and (3) and 108 (2) to (4) are

amended by striking out "minister" wherever it appears and substituting "commission" .

Section 8 is amended

(

a) in subsection (1) by striking out "On the recommendation of the minister, the Minister

of Lands Parks and Housing may, subject to terms he or she may specify," and substituting

"The commission, on terms it may specify, may" , and

(

b) in subsection (3) by striking out "minister." and substituting "commission." .

31 Sections 12 (4), 32 (2) and (3), 34, 67, 84.1, 85, 86, 88, 90, 91, 95, 97, 104 (1) and (2) and

131 are amended by striking out "division head" wherever it appears and substituting

"commission" .

Section 22 (4) (

b) is amended by striking out "an officer of the division" and substituting

"the commission" .

Section 33 is amended

(

a) by striking out "commissioner, subject to conditions he or she may require," and

substituting "commission, subject to conditions it may impose," ,

(

b) by repealing subsections (2) and (3) and substituting the following:

(2) The commission may revoke an approval given under subsection (1) or may vary

conditions imposed by it if it considers that the conditions or regulations have not

been complied with.

(3) Despite the granting of an approval under subsection (1), an employee of the

commission designated by the commission may order work on a geophysical

exploration project to stop if the designated employee considers that unreasonable

damage to the terrain or environment will be caused by continuation of

the project. ,

(

c) in subsection (4) by striking out "commissioner" and substituting "commission" , and

(

d) by repealing subsection (5).

Section 35 is amended

(

a) in subsection (1) by striking out "division head" and substituting "commission" , and

(

b) by repealing subsection (2) and substituting the following:

(2) Unless a condition exists that the commission considers a danger to any person

or to public or private property, the commission must not cancel a geophysical

licence until the commission has given the holder at least 30 days' notice to

rectify the default and the default is not rectified within the notice period.

Section 36 is repealed and the following substituted:

Regulations for this

Part

36 The commission may make regulations as follows:

(

a) governing the methods and manner and places in which geophysical

exploration may be carried out and empowering designated employees of

the commission to

(

i) require persons carrying out the 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 cleanup, restoration and reclamation, and

(iii) deduct or recover the costs of the cleanup, restoration and

reclamation from those performance bonds;

(

b) providing for reports to the commission.

36 Sections 39, 42 (1), (2) and (4), 45 (1) to (3), (5) and (7), 46 (3), 54 (d), 55 (2), 57 (1) to

(4), 59 (1), 61 (1) to (4), 117 (2) and (6), 119 (2) and (5) (

b) and 120 are amended by

striking out "commissioner" wherever it appears and substituting "director" .

Section 44 (1) is amended

(

a) in paragraph (

a) by striking out "commissioner" and substituting "director" , and

(

b) in paragraph (

b) by striking out "commissioner" in both places and substituting

"director" .

Section 47 is amended

(

a) in subsections (2) and (3) (

b) by striking out "commissioner" wherever it appears and

substituting "director" , and

(

b) in subsection (7) (

a) and (

b) by striking out "commissioner" and substituting

"director" .

Section 51 is amended by striking out "commissioner" in both places and substituting

"director" .

Section 58 is amended

(

a) in subsection (1) (

c) and (

d) by striking out "commissioner" and substituting

"director" , and

(

b) in subsection (3) by striking out "commissioner" wherever it appears and substituting

"director" .

Section 84 is amended

(

a) in subsection (1) by striking out "division head, or an officer of the division designated

by the division head," and substituting "commission" , and

(

b) in subsection (2) by striking out "minister" and substituting "commission" .

42 Sections 87 and 92 are amended by striking out "division head" and substituting

"commission" and by striking out "he or she is" .

Section 93 is amended

(

a) in subsection (1) by striking out "division head or a person authorized by the division

head to do so may, in his or her discretion, grant," and substituting "commission may

grant," , and

(

b) in subsection (2) by striking out "division head" and substituting "commission" .

Section 94 is amended

(

a) in subsection (1) (

a) and (

b) by striking out "division head" and substituting

"commission" , and

(

b) by repealing subsection (2) and substituting the following:

(2) The commission must keep a record of each transfer to which it has given

consent.

Section 96 is amended

(

a) in subsection (1) by striking out "Lieutenant Governor in Council" in both places and

substituting "commission" ,

(

b) by repealing subsection (1) (a),

(

c) in subsection (1) (d), (

i) and (

l) by striking out "division" wherever it appears and

substituting "commission" ,

(

d) in subsection (1) by repealing paragraphs (t), (

v) and (w), and

(

e) by repealing subsection (2) and substituting the following:

(2) A regulation or order made under this

section may provide that employees of the

commission designated by it may exempt in writing a person from the application

of all or part of the regulation or order, in relation to a particular site or installation

and subject to specified conditions.

Section 101 is amended by striking out "an officer of the division may take the means that

may appear to the officer" and substituting "the commission may take the means it

considers" .

Section 102 is repealed and the following substituted:

Discontinuance of operations

(1) If the commission is satisfied, after an inquiry held on the notice and to the

persons it believes proper, that a well is being operated in a way that contravenes

this Act, the regulations or an order made under this Act, the commission may

order that on and after a date to be set by the order no production is to be

permitted from the well and that it is to be shut in and kept shut in until the

commission orders to the contrary.

(2) If the commission believes waste, damage to property or pollution can be

prevented, the commission may order the well to be shut down pending the

inquiry, which must be held within 15 days after the order.

(3) If it appears to the commission that a method or practice being employed in a

drilling, completion, suspension, abandonment or production operation is in any

way inadequate, improper or hazardous, the commission may order orally,

confirmed by a note in the daily drilling report book, that the operation be discontinued

until methods approved by the commission are adopted.

Section 103 (1) is amended by striking out "division head may prescribe" and substituting

"commission may prescribe" .

Section 106 is amended

(

a) by repealing subsection (1) and substituting the following:

(1) Without restricting

section 105, if the commission considers that the control of a

well or any completion, suspension or abandonment is not in accordance with the

commission's order, direction or requirement, any person authorized by the

commissioner has access to and may enter the well site or any structures and do

whatever the commission believes necessary because of the failure to comply

with the order, direction or requirement. , and

(

b) in subsections (2) and (4) by striking out "minister" wherever it appears and substituting

"commission" .

Section 109 is amended

(

a) in subsection (1) by striking out "minister" wherever it appears and substituting

"commission" ,

(

b) by repealing subsection (2) and substituting the following:

(2) On the commission taking possession of a well and so long as that possession

continues, every officer and employee of the owner of the well, agent or

contractor must obey the orders concerning the well given by the commission, or

by a person placed in charge or control of the well. ,

(

c) by repealing subsection (4) and substituting the following:

(4) The costs and expenses of and incidental to proceedings taken under this

section

are in the discretion of the minister, who, after consulting with the commission,

may direct by whom and to what extent the costs are to be paid. , and

(

d) by repealing subsection (5) (

a) and substituting the following:

(

a) all costs and expenses of and incidental to the proceedings taken under this

section, including the costs and expenses of the commission's management,

operation and control of the well, and .

Section 116 is repealed and the following substituted:

Notification of work

116 A person must not begin geological or geophysical work until the person has notified

the commission of the person's intention to do so.

Section 118 is amended by striking out "commissioner." and substituting "commission." .

Section 123 (1) is amended by striking out "An officer of the division, authorized by the

minister," and substituting "The commission" and by striking out "his or her" and substituting

"its" .

Section 132 (

a) is repealed.

Section 133 (2) is amended by adding the following paragraphs:

(

p) prescribe fees for

(

i) entering name changes referred to in

section 95,

(ii) applications for approvals to undertake geophysical exploration,

(iii) other applications or classes of applications,

(iv) licences or leases or classes of licences or leases, and

(

v) other required purposes;

(

q) make regulations specifying other than normal spacing areas in any field,

pool or other area;

(

r) make regulations for the unitization of a pool or field for drilling and

producing;

(

s) prescribe the amount and disposition of drilling or other deposits required

under this Act;

(

t) make regulations respecting

(

i) the designation under

section 8 of portions of Crown land for

development roads, and

(ii) the layout, design, construction, operation, use, maintenance and

deactivation of development roads or classes of development roads.

Section 135 is amended by adding "or the commission, depending on which of them is

authorized under this Act to issue the permit, licence or lease," after "the minister" .

Section 136 is amended by adding "or the commission" after "the minister" and by adding

"or the commission's" after "the minister's" .

58 The following

section is added:

Regulations Act applies

137 The Regulations Act applies to regulations under this Act that are made by the

commission.

Pipeline Act

Section 1 of the Pipeline Act, R.S.B.C. 1996, c. 364, is amended by adding the following

definition:

"commission" means the commission established under

section 2 of the Oil and Gas Commission Act ; .

Section 2 is amended by repealing subsections (2) and (4) and substituting the following:

(2) The commission may issue a certificate declaring that provisions of this Act

designated in the certificate apply to a company.

(4) A company must not operate a pipeline in British Columbia without the consent

in writing of the commission and subject to the conditions the commission

imposes.

61 Sections 3 to7, 9 (2), 12 (1) to (3), 13 (1) and (2), 14, 15 (2) and (3), 20 (2), 28 (1) and (4),

30 (1) to (3), 31 (1) and (2), 32, 33 (1) and (2), 36, 38 (2) (

d) and (3) (

b) and 39 (2), (3)

and (4), are amended by striking out "minister" wherever it appears and substituting

"commission" .

62 Sections 9 (1), 15 (1), 18 (1), 19, 27 and 39 (2) are amended by striking out "minister's"

and substituting "commission's" .

Section 10 is amended by repealing paragraphs (

a) and (

b) and substituting the

following:

(

a) the commission has issued a certificate granting the company leave to

construct the line, and

(

b) the plan, profile and book of reference of the

section or part of the proposed

line have been approved by the commission.

Section 11 is amended

(

a) in subsections (1), (2), (4) and (6) by striking out "minister" wherever it appears and

substituting "commission" , and

(

b) in subsection (5) by striking out "minister's" and substituting "commission's" .

Section 17 is amended

(

a) in subsection (3) by striking out "The minister may in the minister's discretion" and

substituting "The commission may" , and

(

b) in subsection (4) by striking out "minister." in both places and substituting "commission.".

Section 22 is amended

(

a) in subsection (1) by adding "of the commission" after "regulations" , and

(

b) in subsection (2) by striking out "minister" and substituting "commission" .

Section 37 is amended

(

a) in subsections (1) and (2) by striking out "minister" and substituting

"commission" , and

(

b) by adding the following subsection:

(3) The Regulations Act applies to regulations under this Act that are made by the

commission.

Section 52 (2) (

a) is amended by striking out "commission" and substituting "British

Columbia Utilities Commission" .

Utilities Commission Act

Section 65 of the Utilities Commission Act, R.S.B.C. 1996, c. 473 is amended

(

a) by repealing subsection (1) and substituting the following:

(1) On application by a party that uses or seeks to use facilities operated by a person

declared to be a common carrier by the Oil and Gas Commission, the British

Columbia Utilities Commission, by order and after a hearing, notice of which has

been given to all persons the latter commission believes may be affected, may

establish the conditions under which the common carrier must accept and carry

the crude oil, natural gas or natural gas liquids.

(1.1) On application by an interested party and after a hearing, notice of which has

been given to all persons the British Columbia Utilities Commission believes

may be affected, that commission,

(

a) may issue an order, to be effective on a date determined by it, declaring a

person to be a common carrier with respect to the operation of a pipeline for

the transportation of a type of energy resource prescribed by the Lieutenant

Governor in Council, other than crude oil, natural gas and natural gas

liquids, and

(

b) in the order, may establish the conditions under which the common carrier

must accept and carry that energy resource.

(1.2) The effective date of an order of the British Columbia

Utilities Commission under subsection (1) is the date determined by the Oil

and Gas Commission under the Oil and Gas Commission Act . , and

(

b) by repealing subsection (6).

Section 66 is amended

(

a) by repealing subsection (1) and substituting the following:

(1) On application by a party whose crude oil, natural gas or natural gas liquids is, or

will be, purchased by a person designated as a common purchaser by the Oil and

Gas Commission, the British Columbia Utilities Commission, by order and after

a hearing, notice of which has been given to all persons the latter commission

believes may be affected, may establish the conditions under which the common

purchaser must purchase the crude oil, natural gas or natural gas liquids.

(1.1) The effective date of an order of the British Columbia Utilities Commission

under subsection (1) is the date determined by the Oil and Gas Commission under

the Oil and Gas Commission Act. , and

(

b) by repealing subsection (3).

Section 67 (1) is repealed and the following substituted:

(1) On application by a party that uses or seeks to use facilities operated by a person

declared to be a common processor by the Oil and Gas Commission, the British

Columbia Utilities Commission, by order and after a hearing, notice of which has

been given to all persons the latter commission believes may be affected, may

establish the conditions under which the common processor must accept and

process natural gas.

(1.1) The effective date of an order of the British Columbia Utilities Commission

under subsection (1) is the date determined by the Oil and Gas Commission under

the Oil and Gas Commission Act .

Commencement

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

Explanatory Note

In recognition of the importance of the oil and gas industry in British Columbia,

this Act establishes the Oil and Gas Commission as a corporation, for the purposes

and with the mandate set out in the Act. Provision is made for the funding of

the commission by means of levies on producers as defined, and by earmarking

for the commission's purposes certain fees under the Petroleum and Natural

Gas Act and the Pipeline Act .This Bill amends the Petroleum and

Natural Gas Act and the Pipeline Act to transfer, from various officials

in government to the Oil and Gas Commission, the responsibility for issuing

and administring oil and gas licences, permits and other authorizations, as

well as some regulation making authority. Powers that relate to the auction

and disposition of "sub-surface" rights remain with the Ministry of Energy and

Mines.In addition, certain responsibilities pertaining to oil and gas activities

under a number of statutes ( i.e. the Forest Act , Forest Practices

Code of British Columbia Act , Heritage Conservation Act , Land

Act , Waste Management Act and Water Act ) are transferred,

from officials in the ministries administering those Act, to the Oil and Gas

Commission.

Copyright © 1999: Queen's Printer, Victoria, British Columbia, Canada