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Licence Application Guide: Class IB Processing Facilities

Pooled fund

Canadian pipeline operators may satisfy financial liability requirements for commodity releases by participating in a regulated pooled fund established by authorized pipeline companies. Operators must maintain additional reserves equal to any shortfall between their liability requirements and pooled fund access. The Governor in Council may establish regulations governing minimum fund levels, contribution and withdrawal limits, and participation conditions.

Application

Section 271 of the Canadian Energy Regulator Act establishes CER jurisdiction over international and interprovincial power lines. The CER may issue permits and certificates for power lines crossing borders or within federal authority, including those crossing navigable waters. The CER may also authorize power line relocations to facilitate facility construction or reconstruction.

Orders

The Canadian Energy Regulator Commission may issue orders governing the design, construction, operation, and abandonment of facilities crossing interprovincial and international power lines. Orders authorize facility crossings, regulate ground disturbances, govern vehicle operation, allocate construction costs, and specify activities. The Regulator may also make complementary regulations with Governor in Council approval.

Certificate or order before June 1, 1990

The Canadian Energy Regulator Act applies pipeline governance provisions to international power lines that received certificates before June 1, 1990 under the former National Energy Board Act, treating electricity transmission infrastructure under the same regulatory framework while excluding abandoned power lines from abandoned pipeline definitions.

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.

Purpose

Section 136 of the Canadian Energy Regulator Act establishes that sections 137–142 reinforce the polluter-pays principle by imposing financial requirements on companies authorized to construct or operate pipelines in Canada.

Issuance

The Canadian Energy Regulator may issue authorizations for offshore renewable energy projects and associated power lines. Applications must include prescribed information about proposed works, facilities, and equipment. The regulator must decide within 300 days, considering environmental effects, safety, health, social and economic impacts, Indigenous interests and rights, climate change alignment, and relevant impact assessments before imposing conditions.

Designation

Under Canadian Energy Regulator Act s. 141, the Governor in Council may designate pipeline operators whose companies experience unintended or uncontrolled releases of oil, gas, or commodities if they lack financial resources to cover response costs and compensation or fail to comply with regulatory orders. The Regulator may conduct response actions, authorize third parties with liability protection, and recover expenses from pooled financial arrangements or by reimbursing governments and Indigenous bodies.

Application of provisions in Part 4

Section 305 of the Canadian Energy Regulator Act applies regulatory provisions for international and interprovincial power lines to offshore power lines, treating permits and certificates as authorizations. Subsection 273(2) applies only to offshore power line segments within provincial jurisdiction.

Application of provisions in Part 6

Section 306 of the Canadian Energy Regulator Act extends Part 6 regulatory provisions to offshore power lines in provincial waters. Pipeline transportation requirements are adapted for electricity transmission, with applicants and authorization holders required to comply with specified sections. Exemptions apply for facility-sharing and shared-use arrangements where regulatory leave or authorization conditions are obtained.

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.