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Definitions
This section establishes key definitions under the Canadian Energy Regulator Act for regulatory jurisdiction and scope. 'Designated area' includes Canadian provinces, Sable Island, and federal submarine territories where Canada controls resource rights. 'Designated oil or gas' refers to specific oil or gas products subject to regulatory orders. 'Movement' covers domestic transportation of oil or gas but excludes exports.
Regulations — Governor in Council
Section 372 of the Canadian Energy Regulator Act authorizes the Governor in Council to establish regulations governing the export licensing, movement, and inspection of designated oil and gas from Canada. The Regulator may prescribe license application requirements, validity periods, export quantities, inspection standards for related equipment and records, and measurement units for oil and gas transportation.
Application to appeals
Section 384 of the Canadian Energy Regulator Act establishes the appellate framework allowing the Commission to review decisions by the Chief Conservation Officer under the Canada Oil and Gas Operations Act. Following an appeal hearing, the Commission may set aside, confirm, or vary orders; direct remedial works to prevent waste or oil/gas escape; or issue other appropriate orders.
Effects on navigation
The Canadian Energy Regulator must consider effects on navigation safety, including navigation safety itself, when deciding whether to issue certificates, permits, approvals, orders, directions, or exemptions for international or interprovincial power lines that cross navigable waters.
Alternative dispute resolution
The Canadian Energy Regulator must provide alternative dispute resolution processes for disputes under the Act when all parties consent. Results are non-binding but may be considered by the Commission or designated officers in their decisions and may be made public with party consent.
Regulations — compensation
Section 173 of the Canadian Energy Regulator Act authorizes the Governor in Council to establish regulations governing compensation for energy infrastructure incidents. Regulations may prescribe claim deadlines, authorize interim awards and fee/expense coverage, establish damage priority classes, set compensation caps, allow payment postponement or scheduling, and provide interest provisions. Environmental non-use value damages are explicitly excluded from compensable losses.
Regulations
Canadian Energy Regulator Act section 353 empowers the Governor in Council to make regulations governing oil and gas exports, including licence quantities, validity periods (up to 40 years for natural gas, 25 years for oil), inspection requirements, price controls, and exemptions for exports to Chile and Costa Rica.
Issuance
The Canadian Energy Regulator Commission may issue electricity export licences subject to Governor in Council approval. Before issuing, the Commission must consider interprovincial effects, confirm applicants have informed domestic buyers of available quantities and service classes, and given domestic buyers equal opportunity to purchase on comparable terms. Any existing permits are revoked if the export licence is denied.
Declaration of Governor in Council
The Governor in Council may issue an order declaring that restrictions on exporting energy goods to Chile or Costa Rica are justified under provisions of the Canada-Chile Free Trade Agreement or Canada-Costa Rica Free Trade Agreement.
Show cause hearing relating to waste
Under the Canadian Energy Regulator Act, the Commission holds show cause hearings on applications by the Chief Conservation Officer regarding waste in oil and gas pool recovery. If waste is found, the Commission may order gas collection, processing, reinjection schemes, or pool repressurizing/recycling, and may shut in non-compliant pools unless approved schemes are operational by specified dates.
Definitions
Section 296 of the Canadian Energy Regulator Act establishes definitions for Part 2, defining 'authorization' as permission issued under section 298 and 'debris' as facilities, equipment, or systems placed during authorized work that were abandoned without authorization or displaced during operations. Provincial references in Part 2 apply to onshore areas of the Northwest Territories as defined in the Northwest Territories Act.
Report
The Canadian Energy Regulator must prepare a report within 450 days on pipeline certificate applications, recommending approval or denial based on public convenience and necessity. The evaluation must consider environmental and cumulative effects, safety, Indigenous interests and rights, market feasibility, economic viability, financial capacity, and alignment with Canada's climate commitments.
Issuance
Section 262 of the Canadian Energy Regulator Act governs certification of international and interprovincial power lines. The Commission may issue certificates if satisfied the power line serves present and future public convenience and necessity, considering environmental effects, safety, Indigenous rights and consultation, health and socioeconomic impacts, and climate commitments. Decisions must be made within 300 days of a complete application, subject to Governor in Council approval within 90 days.
Decisions final
Section 70 of the Canadian Energy Regulator Act establishes that decisions and orders issued by the Commission, designated officers, and inspection officers are final and conclusive, with no further appeal unless explicitly provided elsewhere in the Act.
Protection of mines
Pipeline companies must obtain authorization from a designated officer before locating, constructing, or operating pipelines in ways that obstruct, interfere with, or adversely affect active mining operations or lawful mine development preparations.
Exportation to Chile or Costa Rica
The Canadian Energy Regulator cannot refuse, suspend, revoke or vary licenses or permits for energy goods exported to Chile or Costa Rica if doing so would breach obligations under the Canada-Chile Free Trade Agreement or Canada-Costa Rica Free Trade Agreement, except during suspension orders or with the license holder's consent.
Leave required
Pipeline companies must obtain a leave order from the Canadian Energy Regulator Commission before opening a pipeline or section for transmission of hydrocarbons or other commodities. Leave is granted only when the Commission is satisfied the pipeline can safely operate.
Paramountcy
Federal permits and certificates issued under the Canadian Energy Regulator Act, along with applicable Acts of Parliament, take precedence over conflicting provincial laws when applied to federally regulated energy projects, establishing federal regulatory supremacy.
Election by applicant or holder
Applicants or holders of permits or certificates for international power lines may elect to have provisions of the Canadian Energy Regulator Act apply instead of provincial laws by filing a prescribed election form with the Regulator.
Terms and conditions before July 3, 2013
Transitional provision establishing that terms, conditions, and approvals imposed before July 3, 2013 on international or interprovincial power lines under the former National Energy Board Act remain enforceable under the Canadian Energy Regulator Act. Constructors must comply with previously approved orders, regulations, plans, and specifications unless modified by the Canadian Energy Regulator.
Matters to be taken into account
The Canadian Energy Regulator must consider all written submissions and public hearing representations when approving pipeline construction plans, routes, and methods. The Regulator may approve sections where no submissions have been filed.
Variation or transfer
The Canadian Energy Regulator Commission may vary or transfer energy authorizations either on its own motion or upon application, and may impose new, modified, or additional conditions as part of such variations or transfers.
Maximum validity — liquefied natural gas
Canadian regulation setting a maximum 50-year validity period for liquefied natural gas (LNG) export licenses under the Canadian Energy Regulator Act. LNG is defined as natural gas in liquid state composed of at least 85% methane with other hydrocarbons and minor non-hydrocarbon gases.
Ministerial approval
Section 347 of the Canadian Energy Regulator Act establishes the ministerial approval process for oil and gas export licenses. The Minister must decide on approval within 90 days of the Commission's decision; late approval does not invalidate the Commission's prior actions. The Commission must issue the license within seven days of ministerial approval.
Duty to consider — Commission
The Canadian Energy Regulator and its designated officers must consider potential adverse effects on Indigenous rights recognized under section 35 of the Canadian Constitution when making decisions, orders, or recommendations under the Canadian Energy Regulator Act.
Conditions
Under the Canadian Energy Regulator Act section 65, the Commission, designated officers, and inspection officers have broad authority to impose any conditions they deem appropriate in decisions or orders issued under the Act.
General or particular application
The Canadian Energy Regulator or a designated officer may issue orders, directions, and impose conditions either generally across all regulated entities or specifically for particular cases or classes of cases, enabling flexible regulatory application.
Enforcement of orders
Canadian Energy Regulator decisions and orders may be registered with Federal or provincial superior courts and enforced as court orders by filing a certified copy with the court registrar. If a registered decision is subsequently rescinded or varied, the court order is vacated and the modified decision may be re-registered following standard court procedures.
Statutory Instruments Act
Section 92 of the Canadian Energy Regulator Act exempts orders and directions issued by the Commission, designated officers, or inspection officers from statutory instrument classification when they apply to a single person or entity, a single regulated facility, or are issued immediately for safety, security, environmental protection, or property protection purposes.
Orders
The Canadian Energy Regulator may issue orders requiring facility holders to repair, reconstruct, or alter regulated facilities to ensure safety, security, and environmental protection. Orders can be directed at Indigenous bodies, governments, third parties, and others. Non-compliance authorizes the Regulator to take direct action or engage third parties, with liability protection for good-faith interventions.
Exemption orders
The Canadian Energy Regulator Commission may issue conditional exemption orders relieving regulated facility holders from specific regulatory provisions when necessary to ensure safety and security of persons and facilities, protect property, or safeguard the environment.
Orphan Pipelines Account
The Canadian Energy Regulator Act establishes an Orphan Pipelines Account to manage surplus security funds from abandoned pipelines. Surplus amounts—calculated as ordered security minus actual abandonment costs—may be credited to the account and earn annual interest. The account can fund abandonment costs when company security is insufficient, but companies remain fully liable for all abandonment obligations.
Interim award of compensation
Under the Canadian Energy Regulator Act, a Tribunal may award interim compensation for compensation claims if authorized by regulations, and must notify the Regulator of the awarded amount.
Determining compensation
Under Canadian Energy Regulator Act section 163, a Tribunal determines whether to award compensation for claimed compensable damage, calculates amounts per regulations, and may award costs if authorized. The Tribunal must notify all parties of its decision, specifying compensation and cost amounts, any regulatory reductions, and previously paid amounts.
Recovery of fines and amounts
Section 178 of the Canadian Energy Regulator Act allows prosecutors to enforce unpaid fines or court-ordered compensation by filing convictions or orders as civil judgments in any Canadian court, enabling collection through standard civil enforcement procedures.
Impact Assessment Act
Section 185 of the Canadian Energy Regulator Act transfers certificate application authority for designated projects under the Impact Assessment Act from the Commission to an independent review panel. The panel exercises powers under sections 182-184, coordinates with energy and environment ministers, and must submit reports within Impact Assessment Act timelines.
Continuation of jurisdiction and obligation
Section 189 of the Canadian Energy Regulator Act clarifies that procedural delays do not strip the Regulator of jurisdiction over applications or reporting obligations, and all actions taken remain valid. The Governor in Council may also issue orders under section 186(1) even after statutory time limits have expired.
Recommendation to vary or transfer
Under the Canadian Energy Regulator Act section 191, the Governor in Council may issue orders directing the Commission to vary or transfer energy certificates as recommended, decline the variation or transfer, or direct reconsideration of the matter.
Order to reconsider
Section 193 of the Canadian Energy Regulator Act grants the Governor in Council authority to order the Commission to reconsider its decisions, with discretion to specify factors for consideration and completion timelines. The Commission must report any resulting changes to its recommendations back to the Governor in Council.
Publication of order
Orders issued by the Canadian Energy Regulator under sections 191 or 192 of the Canadian Energy Regulator Act must be published in the Canada Gazette within 15 days of issuance.
Revocation of certificates — application or consent
The Canadian Energy Regulator may revoke certificates issued under Part 2 of the Act by order, either upon application by the certificate holder or with their written consent.
Approval
Pipeline companies must obtain a Canadian Energy Regulator certificate before constructing any pipeline section, comply with all certificate conditions, secure Regulator approval of construction plans and specifications, and deposit certified copies in relevant land registries.
Existing terms and conditions
Section 222 of the Canadian Energy Regulator Act deems all terms and conditions imposed on pipelines before July 3, 2013 under the National Energy Board Act to be conditions of CER certificates or orders. Pipeline companies must construct pipelines according to previously specified orders, regulations, plans, and specifications, or as directed by the Commission.
Orders
The Canadian Energy Regulator Commission is authorized to issue orders regarding all matters related to traffic, tolls, and tariffs for energy infrastructure and transportation services under its regulatory jurisdiction.
Disallowance
The Canadian Energy Regulator Commission may disallow tariffs or portions thereof that violate the Canadian Energy Regulator Act or Commission orders, and may require companies to file compliant replacement tariffs within a prescribed timeframe or prescribe alternative tariffs directly.
General rule
Section 238 of the Canadian Energy Regulator Act requires pipeline and commodity transmission companies to disclose liability limitations in filed tariffs, obtain Commission approval, or have regulatory authorization. The Commission determines permissible liability limits and prescribes transmission conditions for hydrocarbons and other commodities.
Costs and expenses related to abandonment
The Canadian Energy Regulator may require pipeline companies to establish and maintain financial funds or security to ensure they can pay for pipeline abandonment and related costs. The Regulator can direct use of these funds, authorize third parties to access them, realize security to cover abandonment expenses, and allocate any surplus to the Orphan Pipelines Account.
Orphan abandoned pipelines
Under the Canadian Energy Regulator Act, a designated officer may designate an abandoned pipeline as an orphan abandoned pipeline when the owning company's directors, officers, or the company itself cannot be located, or when the company is unknown, insolvent, bankrupt, in receivership, or dissolved.
Measures
Section 245 of the Canadian Energy Regulator Act authorizes designated officers to take necessary measures for orphan pipeline abandonment and to delegate authority to employees or third parties. The Regulator, its staff, Crown agents, and authorized third parties are granted liability protection for good-faith actions or omissions during abandonment activities.
Prohibition
Persons are prohibited from constructing or operating any section or part of an international power line without first obtaining a permit under section 248 or a certificate under section 262 of the Canadian Energy Regulator Act.