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Regulations

Section 333 of the Canadian Energy Regulator Act grants the Regulator authority to establish regulations governing land acquisition, leasing, expropriation, and compensation for energy projects. The regulations may address compensation procedures, notice service requirements, acquisition processes, agreement terms, approval criteria, and filing of voluntary landowner agreements.

Assets of company subject to executions

Section 341 of the Canadian Energy Regulator Act clarifies that the Act does not restrict financial or legal transactions involving company assets, including court-ordered asset sales, creation of liens, mortgages, and enforcement of security interests. Such transactions remain subject to applicable provincial laws where the property is located.

Order in Council

The Governor in Council may issue orders placing supervision and control of designated oil or gas movement from specified areas under the Canadian Energy Regulator. While such an order is in force, persons moving designated oil or gas from the area must hold a licence under the relevant Division or comply with applicable regulations.

Amount to be paid

Section 164 of the Canadian Energy Regulator Act specifies payment obligations for the Regulator to compensate claimants. The Regulator must pay interim and final compensation amounts, costs, and interest (accrued at the Income Tax Act refund rate) within prescribed timeframes, as well as tribunal-awarded fees and travel expenses as authorized by regulations.

Suspension or revocation of licences — contravention

The Canadian Energy Regulator may suspend or revoke a licence if the holder breaches a licence condition or if the regulator deems it in the public interest (with ministerial approval). The licence holder must receive notice of the alleged contravention and an opportunity to respond before any order is made.

Power to review, vary or rescind — Commission

Section 69 of the Canadian Energy Regulator Act empowers the Commission and designated/inspection officers to review, vary, rescind decisions and orders, and re-hear applications. This authority excludes operating licences, authorizations under sections 382–383, and development plan approvals under the Canada Oil and Gas Operations Act.

Regulations

Section 96 of the Canadian Energy Regulator Act authorizes the Regulator to establish regulations governing the design, construction, operation, and abandonment of interprovincial and international pipelines and designated power lines. Regulations must address surveillance, monitoring, safety, security, and environmental protection, and require operators to maintain management systems that incorporate human and organizational factors.

Principle

The Canadian Energy Regulator must give effect to CUSMA, CCFTA, and CCRFTA trade agreements. The Governor in Council may issue binding directions to the Regulator regarding performance of this duty or interpretation of these agreements, which apply to pending matters unless otherwise specified.

Orders

The Canadian Energy Regulator Commission may exempt pipelines up to 40 km long, previously constructed pipelines, and associated infrastructure (tanks, compressors, storage facilities) from specified regulatory provisions. Exemption applications must be decided within 300 days of complete submission; the Lead Commissioner may exclude certain periods with public disclosure, and the Minister may grant extensions. The Commission may impose conditions on exemptions.

Licenses and Radiation Safety Requirements for Irradiators

Coming into force and cessation of effect — Commission

Section 67 of the Canadian Energy Regulator Act empowers the Commission, designated officers, and inspection officers to specify effective and cessation dates for authorization documents and orders, or impose conditions controlling their timing. Interim orders may be issued with decisions reserved, except for Part 3 certificates.

Duty — company

Canadian pipeline operators must promptly receive, transport, and deliver all offered oil with due care. The Canadian Energy Regulator may extend similar obligations to gas and commodity pipelines by order, and may require operators to provide adequate facilities for receipt, transmission, storage, and interconnection where no undue burden results.

Period of validity

Under the Canadian Energy Regulator Act, permits and licences issued by the regulator have a maximum validity period of 30 years.

Issuance

The Canadian Energy Regulator must issue a permit authorizing electricity exportation upon application without a public hearing, unless the Governor in Council designates the application for special review. Applications must include prescribed regulatory information.

Order to reconsider

Section 184 of the Canadian Energy Regulator Act enables the Governor in Council to order the Commission to reconsider its report recommendations or conditions. Orders are binding and must be published in the Canada Gazette within 15 days. The Commission must submit a reconsideration report confirming, modifying, or replacing recommendations and conditions while addressing all necessary public interest factors. The reconsideration report is final unless another order is issued.

Domestic Licensing of Special Nuclear Material

Specific Domestic Licenses to Manufacture or Transfer Certain Items Containing Byproduct Material

Revocation of certificates — contravention

The Canadian Energy Regulator may revoke a certificate if the holder violates any condition, subject to Governor in Council approval. The regulator must provide written notice of the alleged violation and grant the certificate holder an opportunity to be heard before revocation.

Costs of making representations

The Canadian Energy Regulator Commission may order pipeline companies to reimburse reasonable costs incurred by persons making representations at public hearings concerning pipeline routes, payable on an interim or final basis without delay.

Regulations — Governor in Council

The Governor in Council and Canadian Energy Regulator are authorized to establish regulations governing electricity export permits and licences, including permit conditions, factors for permit designation and licence issuance decisions, inspection protocols for equipment and records, application information requirements, and measurement standards for electricity exportation.

Compliance

All permits and licences issued under the Canadian Energy Regulator Act are conditional upon compliance with the Act, its regulations, and orders made thereunder.

Conditions — permits

The Canadian Energy Regulator Commission may impose conditions on permits and licences as deemed necessary or in the public interest, with permit conditions limited to matters prescribed by regulations and licence conditions applied at the Commission's discretion.

Where licence required

Under the Canadian Energy Regulator Act, the Governor in Council may designate electricity export applications and revoke permits within 45 days of issuance. When such an order is made, permits cannot be issued and the application must be processed as a licence application instead.

Variation of licences

The Canadian Energy Regulator Commission may vary licences issued under the Act either on its own initiative or upon application. Non-minor or non-technical variations require ministerial approval if deemed in the public interest. The Commission may impose new or modified conditions as necessary to fulfil the Act's purposes.

Criteria

The Canadian Energy Regulator must not issue an export licence for oil or gas unless it determines the export quantity does not exceed Canada's surplus after accounting for reasonably foreseeable domestic requirements and considering Canadian oil and gas discovery trends.

Issuance

The Canadian Energy Regulator may issue licences for oil and gas exportation with ministerial approval and may impose conditions. All licences are subject to compliance with the Canadian Energy Regulator Act, its regulations, and related orders.

Prohibition — export

Under section 343 of the Canadian Energy Regulator Act, persons are prohibited from exporting oil or gas unless they hold a licence issued under Part 6 of the Act or are authorized by applicable regulations.

Compensation for severance, etc., of mining property

Pipeline companies must pay compensation as determined by the Canadian Energy Regulator to mining property owners, lessees, and occupiers for losses caused by pipeline severance, including prevented or interrupted mining operations, access restrictions, operational modifications to protect the pipeline, and inaccessible minerals.

Examination of site of mining operations

Under the Canadian Energy Regulator Act, pipeline companies may enter mining or prospecting sites within or near their rights-of-way with 24 hours' written notice and regulatory authorization to inspect whether operations pose safety or security risks to the pipeline or persons. Companies may use site equipment to measure distances from the pipeline to operations.

Orders of Commission

The Canadian Energy Regulator may issue orders determining compensation for pipeline and abandoned pipeline projects, including land acquisition, leasing, use restrictions, and damages from company activities during planning, construction, operation, or abandonment phases, with compensation assessments guided by statutory factors.

Costs

Section 330 of the Canadian Energy Regulator Act establishes cost allocation rules for compensation disputes. If the awarded compensation exceeds 85% of the company's settlement offer, the company must pay all legal, appraisal, and reasonable costs incurred by the claimant. If the award is at or below 85% of the offer, the Commission has discretion to allocate costs.

Determinations regarding compensation

Under Canadian Energy Regulator Act section 327, the Commission determines compensation disputes between energy companies and landowners when parties cannot agree. The Commission considers market value of acquired lands, changes in value over time, loss of use, adverse effects on remaining lands, nuisance and noise from operations, potential damage from company activities, livestock/property loss, relocation difficulties, and other relevant circumstances.

Immediate right of entry

The Canadian Energy Regulator may issue orders granting companies immediate right of entry to lands following written application, provided landowners receive 30–60 days' advance notice detailing the entry purpose, application and access dates, regulator contact information for objections, and compensation advance details.

Crown lands

Pipeline companies must obtain Governor in Council consent to take possession of, use, or occupy Crown lands in Canada. With consent, companies may appropriate necessary Crown lands and water for pipeline construction and operation. Compensation for lands held in trust must be applied to the trust's purpose. Exemptions apply for pipelines with prior authorizations and those crossing utilities or navigable waters with proper certificates.

Exercise of powers outside Canada

Canadian pipeline companies may exercise their regulatory and operational powers beyond Canada's international boundary, but only to the extent permitted by applicable foreign laws in the jurisdiction where the pipeline operates.

Study and report

The Canadian Energy Regulator may issue orders requiring holders of offshore renewable energy projects or offshore power lines to conduct and report on studies addressing safety or environmental protection issues within a specified timeframe.

Right of entry

Section 309 of the Canadian Energy Regulator Act establishes the right for persons to enter and use offshore areas to conduct authorized works, manage abandoned offshore power lines, or develop offshore renewable energy projects. Lawful occupants may restrict access; disputes over entry rights are resolved through arbitration.

Limitations

Authorization holders for Canadian offshore renewable energy projects and offshore power lines must obtain prior written approval from the Canadian Energy Regulator before selling, transferring, purchasing, acquiring, or leasing such projects or their facilities, equipment, and systems, or before amalgamating with another company.

Financial resources

Applicants for Canadian Energy Regulator authorizations must demonstrate sufficient financial resources to cover Commission-determined amounts through prescribed forms or Regulator-specified methods. Proof must remain valid throughout the duration of authorized work or activity.

Prohibition — work or activity

Section 297 of the Canadian Energy Regulator Act prohibits persons from conducting work or activities related to offshore renewable energy projects or offshore power lines in Canadian offshore areas, or constructing, operating, or abandoning offshore power line components within provinces, unless they obtain prior authorization from the Canadian Energy Regulator.

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.

Offence and punishment

Section 292 of the Canadian Energy Regulator Act imposes criminal penalties for contraventions of specified regulatory provisions. Indictable convictions carry fines up to CAD $1 million and imprisonment up to five years; summary convictions carry fines up to CAD $100,000 and up to one year imprisonment.

Regulations

The Governor in Council may establish regulations under the Canadian Energy Regulator Act to prescribe permit conditions, specify application information requirements, define considerations for designating international power lines, and establish procedures for filing elections related to energy regulation.

Revocation of certificates — contravention

The Canadian Energy Regulator may revoke certificates issued under the Act if the holder breaches any condition, provided written notice of the alleged breach is issued and the holder is given an opportunity to respond before revocation.

Revocation of certificates — application or consent

The Canadian Energy Regulator may revoke certificates issued under the Act by order, either upon application by the certificate holder or with their written consent.

Order to reconsider

The Canadian Energy Regulator Act grants the Governor in Council authority to order the Commission to reconsider prior decisions, optionally specifying factors and timelines for completion. If reconsideration results in changed recommendations, the Commission must report those changes to the Governor in Council.

Recommendation not to vary or transfer

Under Canadian Energy Regulator Act section 282, the Governor in Council may issue an order directing the Commission to refuse variation or transfer of a pipeline certificate or to reconsider the matter when the Commission recommends against such action.

Compliance

All permits and certificates issued under the Canadian Energy Regulator Act must comply with the Act, its regulations, and applicable federal and provincial orders made under this Act or provincial laws. Non-compliance constitutes a violation of permit and certificate terms.

Conditions — permit

The Canadian Energy Regulator Commission may impose conditions on permits and certificates it issues, including those prescribed by regulations and any others the Commission deems necessary or in the public interest.

Prohibition

Operators of international or interprovincial power lines must obtain Canadian Energy Regulator Commission approval before abandoning operations. The Commission may grant abandonment authorization by order upon application by the permit or certificate holder.