Permitting

Notice of non-compliance

Section 108 of the Canadian Energy Regulator Act authorizes inspection officers to issue written notices of non-compliance when they have reasonable grounds to believe a person has violated the Act or its regulations. Notices must identify the recipient, describe the alleged violation with relevant facts and applicable provisions, and provide a defined period for the recipient to submit comments in response.

Orders and prohibitions

The Canadian Energy Regulator Commission may issue binding orders requiring compliance with the CER Act and authorization conditions, and may prohibit activities that violate the Act or breach authorization terms or Commission directives.

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Powers of liquidators, trustees, etc.

Section 5 of the Canadian Energy Regulator Act expands the definition of 'company' for regulatory purposes to include liquidators, receivers, managers, and trustees authorized to operate businesses; persons operating pre-1953 pipelines or exempted pipelines; Quebec court-appointed administrators; and successors handling abandoned pipelines.

Abandoned facilities

Under Canadian Energy Regulator Act section 101, persons must obtain authorization from a designated officer before contacting, altering, or removing abandoned energy facilities. The Regulator may establish regulations and the Commission may issue orders specifying circumstances in which such authorization is not required.

Reimbursement — measures taken by government institution

The Canadian Energy Regulator Commission may order pipeline operators to reimburse federal, provincial, municipal governments, Indigenous bodies, and other persons for reasonable costs incurred responding to unintended or uncontrolled releases of oil, gas, or other commodities from pipelines, even if costs exceed the operator's statutory liability limits.

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Powers of Regulator

Section 116 of the Canadian Energy Regulator Act grants the Regulator authority to establish standardized forms and short-form descriptions for violation notices, permits the Commission to designate persons to conduct regulatory reviews, and allows the Chief Executive Officer to designate officers authorized to issue violation notices.

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Replacement of panel member during hearing

Section 48 of the Canadian Energy Regulator Act establishes procedures for replacing panel commissioners during hearings. If a commissioner becomes unavailable or resigns during a hearing, the Lead Commissioner may appoint a replacement to continue the hearing and participate in the decision. If unavailability occurs after the hearing concludes but before the decision is finalized, remaining commissioners may proceed unanimously to make the decision without replacement.

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Grounds for making order

Section 109 of the Canadian Energy Regulator Act authorizes inspection officers to issue orders directing persons to cease contraventions, implement compliance measures, or prevent hazards to safety, security, property, or the environment. Orders may suspend facility operations until remediation is complete, with mandatory written notice and reporting to the Commission.

Authorization — powers, duties and functions

The Lead Commissioner of the Canadian Energy Regulator may delegate regulatory powers, duties, and functions to commissioners, either jointly or individually, except for procedural, appellate, investigative, enforcement, and review matters under specified sections. Actions taken under delegation are deemed performed by the Commission itself.

Rules

The Canadian Energy Regulator Commission is authorized to establish procedural rules governing its operations, including the powers and duties of commissioners, conduct of hearings, issuance of decisions and orders, and internal administrative procedures.

Effect of appeal

An appeal of a Canadian Energy Regulator order does not automatically suspend enforcement, but the Commission may exercise discretion to grant a stay of the order pending the appeal's outcome.

Regulations imposing fees, etc.

Section 142 of the Canadian Energy Regulator Act authorizes the regulator to impose fees, levies, and charges on pipeline operators to recover government costs from commodity release incidents. Primary liability falls on the responsible operator; if recovery is insufficient, fees extend to other operators transporting the same or similar commodities. Regulations prescribe fee calculation methods and interest rates on unpaid amounts, which become recoverable debts to the Crown.

Warrant to enter dwelling-house or living quarters

Section 104 of the Canadian Energy Regulator Act establishes procedures for inspection officers to enter dwelling-houses or living quarters. Entry requires a warrant issued by a justice of the peace, obtained on ex parte application demonstrating necessity for compliance verification and occupant refusal or likelihood of refusal. Force may only be used if explicitly authorized in the warrant and accompanied by a peace officer.

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Instructions regarding timeliness

The Lead Commissioner of the Canadian Energy Regulator may issue procedural instructions to commissioners handling applications to ensure timely processing and resolution of matters before the Commission.

Financial resources

Pipeline companies authorized under the Canadian Energy Regulator Act must maintain financial resources sufficient to cover liability limits set by the Commission. The Commission may specify required types and amounts of financial resources, including letters of credit, guarantees, bonds, insurance, and readily accessible funds. Companies must demonstrate compliance upon request and maintain these resources until obtaining abandonment approval.

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Liability of directors, officers, etc.

Directors, officers, agents, and mandataries of corporations are personally liable for penalties under the Canadian Energy Regulator Act if they directed, authorized, assented to, acquiesced in, or participated in a violation of the Act, regardless of whether the corporation itself is prosecuted.

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Role of the board of directors

Section 17 of the Canadian Energy Regulator Act establishes the board of directors' governance role, requiring it to provide strategic direction and advice to the Regulator while being prohibited from influencing specific Commission decisions or recommendations. The board may establish bylaws for its operations, with quorum defined as a majority of directors including the Chairperson.

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.

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Mandate

The Canadian Energy Regulator's mandate encompasses making transparent decisions and orders on pipelines, power lines, and offshore renewable energy projects; overseeing their construction, operation, and abandonment; setting traffic, tolls, and tariffs; managing oil and gas interests; providing advisory services and dispute resolution; and exercising authority while respecting Indigenous peoples' rights.

Court of record

The Canadian Energy Regulator is established as a court of record with superior court powers, enabling it to compel witness testimony, demand document production, enforce orders, and inspect property. All proceedings must be handled expeditiously while maintaining procedural fairness and natural justice.

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Voluntary reporting

The Canadian Energy Regulator may establish voluntary reporting systems for alleged non-compliance with the Canadian Energy Regulator Act, subject to Governor in Council approval. Regulations may protect reporter identity, making identity-revealing information privileged and inadmissible in legal or disciplinary proceedings. Reports from protected systems cannot be used against the reporter.

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Offence and punishment — duty to assist and orders

Section 112 of the Canadian Energy Regulator Act establishes criminal penalties for non-compliance with CER duties and orders. Violations of section 103(4) or failure to comply with section 109 orders result in fines up to $1,000,000 and/or five years imprisonment on indictment, or up to $100,000 and/or one year on summary conviction. Contraventions of sections 106 and 107 carry summary conviction fines of up to $100,000 for first offences and up to $300,000 for subsequent offences.

Regulations

The Canadian Energy Regulator may establish regulations designating contraventions of the CER Act, permits, orders, and conditions as enforceable violations subject to administrative penalties up to $25,000 for individuals and $100,000 for other persons. Regulations will specify penalty determination methods and service procedures.

Role of Chief Executive Officer

Section 23 of the Canadian Energy Regulator Act establishes the Chief Executive Officer's responsibilities for managing the regulator's day-to-day operations and supervising employees, while explicitly prohibiting direction of specific Commission decisions. The CEO holds deputy head rank with corresponding departmental powers, and interim executives may serve up to 90 days pending Governor in Council approval.

Authorization — report

Section 46 of the Canadian Energy Regulator Act authorizes the Lead Commissioner to designate commissioners to report on Commission matters and applications. Authorized commissioners possess full investigatory and evidentiary powers for information gathering. Reports may be formally adopted as Commission decisions or handled otherwise as deemed appropriate.

Acting Lead and Deputy Lead Commissioners

Establishes succession procedures for the Canadian Energy Regulator: when both the Lead Commissioner and Deputy Lead Commissioner are absent, unable to act, or their positions are vacant, the Minister may designate another commissioner as acting Lead Commissioner for up to 90 days; longer appointments require Governor in Council approval.

Definition of document of authorization

Section 9 of the Canadian Energy Regulator Act defines 'document of authorization' as regulatory instruments issued by the CER, including certificates, permits, authorizations, licenses, and orders that establish the legal framework for energy infrastructure regulation in Canada.

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Measures to meet time limit

Section 42 of the Canadian Energy Regulator Act grants the Lead Commissioner authority to take administrative measures to ensure prescribed time limits for energy applications are met, including removing or reassigning commissioners, adjusting panel composition, or designating a single commissioner to handle the application.

Role of Chairperson

Section 19 of the Canadian Energy Regulator Act defines the Chairperson's authority to preside over board meetings and perform assigned duties. The Vice-Chairperson may temporarily assume the role during absences but requires Governor in Council approval to act beyond 90 days.

Authority to enter

Section 103 of the Canadian Energy Regulator Act authorizes inspection officers to enter non-dwelling facilities without warrant to verify compliance with energy regulations. Officers may examine equipment, access computer systems, conduct tests and sampling, take photographs, remove items for analysis, and direct operational changes. Property owners must provide reasonable assistance and access to documents and information.

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Order designating Minister

Administrative provision enabling the Governor in Council to designate a federal minister responsible for administering the Canadian Energy Regulator Act.

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Designation of inspection officers

The Canadian Energy Regulator's CEO may designate inspection officers to enforce safety, security, environmental, and property protection regulations at regulated and abandoned energy facilities. All designated officers must be provided with a certificate of authority and must produce it upon request.

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Certificate

The Canadian Energy Regulator Commission may issue certificates of non-payment for unpaid debts. When registered in Federal Court or any other competent court, these certificates have the same legal force and effect as court judgments for the certified amount plus registration costs.

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Jurisdiction

The Canadian Energy Regulator has exclusive jurisdiction to investigate non-compliance with the Act and authorization conditions, inquire into accidents involving pipelines, abandoned pipelines, international power lines, and offshore renewable energy projects, and issue findings, recommendations, and orders in the public interest.

Definitions

Section 2 of the Canadian Energy Regulator Act establishes statutory definitions for federal energy infrastructure regulation, including abandoned facilities and pipelines, oil and gas exports and imports, ground disturbance thresholds for pipeline protection, and incorporates Indigenous governing bodies and knowledge in energy decision-making processes.

Recovery of loss, damage, costs, expenses

Section 137 of the Canadian Energy Regulator Act imposes joint and several liability on pipeline operators and contractors for unintended or uncontrolled releases of oil, gas, or other commodities. Liable parties must cover actual losses, response costs, and loss of non-use value. Liability is capped at $1 billion for major pipelines (≥250,000 barrels/day capacity); smaller pipelines face prescribed regulatory amounts. Claims recover in Canadian courts with priority ranking favoring actual loss over cost recovery, which ranks above non-use value claims.

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Governor in Council directions

Section 13 of the Canadian Energy Regulator Act empowers the Governor in Council to issue binding policy directions to the Canadian Energy Regulator on broad matters within its regulatory mandate. All such directions must be published in the Canada Gazette and tabled in Parliament.

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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.

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Establishment of Tribunal

Section 143 of the Canadian Energy Regulator Act authorizes the Governor in Council to establish a pipeline claims tribunal to examine and adjudicate compensation claims arising from pipeline releases. The tribunal may only be established if deemed in the public interest based on extent of damage, estimated costs, and administrative advantages. The tribunal must operate equitably without discrimination based on nationality or residence.

Acting Lead Commissioner

The Deputy Lead Commissioner of the Canadian Energy Regulator may assume the Lead Commissioner role during absence, incapacity, or vacancy, but cannot act for more than 90 days without Governor in Council approval.

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Replacement of commissioner during hearing

Procedural rule under the Canadian Energy Regulator Act allowing the Lead Commissioner to designate a replacement commissioner to continue hearings or render decisions if the assigned commissioner becomes unable to act or resigns during proceedings or between hearing conclusion and decision issuance.

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Commission of violation

Under Canadian Energy Regulator Act section 117, any person who contravenes or fails to comply with designated provisions, orders, decisions, or conditions commits a violation subject to penalties determined by regulation. Penalties are designed to promote compliance rather than punish.

Definitions

Section 113 of the Canadian Energy Regulator Act establishes legal privilege protection for voice and video recordings of operating personnel at regulated energy facilities. Recordings are privileged and non-disclosable except when requested by the Regulator for accident inquiries, by coroners for investigations, or when courts determine public interest in justice outweighs privilege. Recordings cannot be used in disciplinary proceedings against facility operators or employees.

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.

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Relocation

The Canadian Energy Regulator may order holders of international or interprovincial power line permits or certificates to relocate infrastructure when necessary to facilitate construction or relocation of other facilities. The regulator determines cost allocation between parties, requires mandatory consultation procedures, and may order reimbursement of reasonable costs incurred by persons making submissions.

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.

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.

Variation or transfer of certificates

The Canadian Energy Regulator Commission may vary or transfer energy certificates issued under the Act on its own initiative or upon application. The Minister may direct the Commission to recommend variations or transfers to the Governor in Council if deemed in the public interest. The Commission may impose conditions necessary to fulfill the Act's purposes when varying or transferring certificates.

DOE Patent Licensing Regulations

DOE patent licensing regulations establish procedures for granting nonexclusive, exclusive, or partially exclusive licenses to inventions from DOE-supported research and development. The Secretary of Energy determines license grants based on U.S. national interests. The regulations define appeal rights for denied applicants, terminated licensees, and third-party objectors, with appeals filed to the Deputy General Counsel within 30 days of agency action.

Suspension or revocation

The Canadian Energy Regulator may suspend or revoke an authorization by order if the holder requests it, consents to it, or breaches a condition. Before revoking for breach, the regulator must provide written notice and opportunity to be heard.

Recovery of loss, etc., caused by debris

Section 302 of the Canadian Energy Regulator Act establishes strict liability for losses, damages, and costs arising from debris generated during authorized energy work. Authorization holders are liable up to $1 billion (with reduced limits in Arctic Waters), while parties responsible for debris are jointly and severally liable based on fault. Claims prioritize personal losses, then government costs, then non-use value losses (recoverable only by government).

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Application for judicial review

Section 188 of the Canadian Energy Regulator Act establishes the judicial review process for CER orders through the Federal Court of Appeal. Applications for leave must be filed within 15 days of order publication in the Canada Gazette, with possible extensions for special reasons, and courts must dispose of applications summarily.

Amount paid out of Fund

Section 171 of the Canadian Energy Regulator Act authorizes payments from the Consolidated Revenue Fund to cover the Regulator's operational costs, including tribunal member and staff remuneration, legal services, publishing expenses, and administrative support. The Minister of Finance establishes payment amounts in consultation with the Minister of Natural Resources.

Limitation

Canadian Energy Regulator Act section 241 requires pipeline companies to obtain Commission approval before abandoning any pipeline. Companies must notify affected landowners and publish notices in local media. Mandatory public hearings apply if written opposition is filed unless withdrawn or deemed frivolous. The Commission may impose conditions on abandonment approvals, and companies remain liable for abandoned pipelines.

Application for correction of errors

Under Canadian Energy Regulator Act section 208, pipeline companies must apply to the Regulator for a permit to correct any omissions, misstatements, or errors in registered plans, profiles, or books of reference. Once the Regulator issues a permit and certified copies are deposited with the appropriate land registry office, the documents are deemed corrected and pipeline construction may proceed in accordance with the correction.

Definitions

Section 93 of the Canadian Energy Regulator Act defines key terms for pipeline claims proceedings: compensable damage (costs, losses, and damages awarded by the Tribunal), holder (entities holding certificates, permits, or authorizations for regulated facilities, pipelines, power lines, or abandonment permits), and Tribunal (the pipeline claims tribunal).

Extension or improvement

The Canadian Energy Regulator may direct natural gas pipeline operators to extend or improve facilities to interconnect with local distribution networks and serve municipalities or adjacent communities, provided no undue burden is imposed on the operator and service to existing customers is not impaired.

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.