Regulations Amending Certain Regulations Made Under the National Energy Board Act (Miscellaneous Program): SOR/2020-50

Canada Gazette, Part II, Volume 154, Number 7

Registration
SOR/2020-50 March 16, 2020

CANADIAN ENERGY REGULATOR ACT

P.C. 2020-142 March 13, 2020

Her Excellency the Governor General in Council, on the recommendation of the Minister of Natural Resources, pursuant to section 96 and subsections 335(6) and 389(1) of the Canadian Energy Regulator Act footnote a, approves the annexed Regulations Amending Certain Regulations Made Under the National Energy Board Act (Miscellaneous Program), made by the Canadian Energy Regulator.

The Canadian Energy Regulator, pursuant to section 96 and subsections 335(5) and (6) and 389(1) of the Canadian Energy Regulator Act footnote a, makes the annexed Regulations Amending Certain Regulations Made Under the National Energy Board Act (Miscellaneous Program).

Calgary, November 25, 2019

Katherine Murphy
Chief of Staff and Corporate Secretary, Canadian Energy Regulator

Regulations Amending Certain Regulations Made Under the National Energy Board Act (Miscellaneous Program)

Oil Pipeline Uniform Accounting Regulations

1 (1) The definition Board in section 2 of the Oil Pipeline Uniform Accounting Regulations footnote 1 is repealed.

(2) Section 2 of the Regulations is amended by adding the following in alphabetical order:

2 Section 55 of the Regulations is replaced by the following:

55 (1) Where, in the opinion of a company, depreciation rates that have been filed with the Regulator are no longer applicable, the company shall file revised rates with the Commission for approval.

(2) Where a company acquires plant for which no depreciation rates have been approved by the Commission, the company shall immediately compile and submit to the Regulator its estimate of the appropriate depreciation rates, developed in accordance with the provisions of sections 53 and 54.

3 Subsection 44(3) of Schedule I to the Regulations is replaced by the following:

(3) Where a project referred to in subsection (1) is not proceeded with, the costs included in this account shall be transferred to account 420 (Other Income Deductions), unless the amount is material, in which case the company shall inform the Regulator and, unless otherwise directed by the Commission, shall debit the amount to account 422 (Extraordinary Income Deductions).

4 The Regulations are amended by replacing “Board” with “Regulator” in the following provisions:

5 The Regulations are amended by replacing “Board” with “Commission” in the following provisions:

Gas Pipeline Uniform Accounting Regulations

6 (1) The definition Board in section 2 of the Gas Pipeline Uniform Accounting Regulations footnote 2 is repealed.

(2) Section 2 of the Regulations is amended by adding the following in alphabetical order:

7 Section 55 of the Regulations is replaced by the following:

55 (1) Where, in the opinion of a company, depreciation rates that have been filed with the Regulator are no longer applicable, the company shall file revised rates with the Commission for approval.

(2) Where a company acquires plant for which no depreciation rates have been approved by the Commission, the company shall immediately compile and submit to the Regulator its estimate of the appropriate depreciation rates, developed in accordance with the provisions of sections 53 and 54.

8 Subsection 172(3) of Schedule I to the Regulations is replaced by the following:

(3) Where a project referred to in subsection (1) is not proceeded with, the costs included in this account shall be transferred to account 329 (Other Income Deductions), unless the amount is material, in which case the company shall inform the Regulator and, unless otherwise directed by the Commission, shall debit the amount to account 341 (Extraordinary Income Deductions).

9 Subsection 401(5) of Schedule IV to the Regulations is replaced by the following:

(5) Where the franchise, consent or certificate referred to in subsection (3) is not depreciable and the gain or loss from the retirement or expiration is material, the company shall inform the Regulator and, unless otherwise directed by the Commission, shall transfer the amount of the gain or loss to account 331 (Extraordinary Income) or account 341 (Extraordinary Income Deductions), as applicable.

10 Subsection 402(4) of Schedule IV to the Regulations is replaced by the following:

(4) Where the item referred to in subsection (2) is not depreciable and the gain or loss from the retirement or expiration is material, the company shall inform the Regulator and, unless otherwise directed by the Commission, shall transfer the amount of the gain or loss to account 331 (Extraordinary Income) or account 341 (Extraordinary Income Deductions), as applicable.

11 The Regulations are amended by replacing “Board” with “Commission” in the following provisions:

12 The Regulations are amended by replacing “Board” with “Regulator” in the following provisions:

13 The French version of the Regulations is amended by replacing “société” with “compagnie”.

National Energy Board Onshore Pipeline Regulations

14 The title of the National Energy Board Onshore Pipeline Regulations footnote 3 is replaced by the following:

Canadian Energy Regulator Onshore Pipeline Regulations

15 (1) The definitions Act and inspection officer in section 1 of the Regulations are replaced by the following:

(2) Section 1 of the Regulations is amended by adding the following in alphabetical order:

16 Section 2.1 of the Regulations is replaced by the following:

2.1 These Regulations do not apply in respect of a hydrocarbon processing plant that is subject to the Canadian Energy Regulator Processing Plant Regulations.

17 Section 6 of the Regulations is replaced by the following:

6 The purpose of these Regulations is to require and enable a company to design, construct, operate or abandon a pipeline in a manner that ensures

18 (1) Paragraphs 6.1(a) and (b) of the Regulations are replaced by the following:

(2) Section 6.1 of the Regulations is renumbered as subsection 6.1(1) and is amended by adding the following:

(2) A company shall establish its management system within 90 days after the day on which the certificate or order authorizing it to construct or operate a pipeline is issued under the Act.

19 (1) Subsection 6.2(1) of the Regulations is replaced by the following:

(1) The company shall appoint an officer as accountable officer to ensure that its management system and the programs referred to in section 55 are established, implemented and maintained in accordance with section 6.1, this section and sections 6.3 to 6.6 and that its obligations under these Regulations are met.

(2) Paragraph 6.2(3)(b) of the Regulations is replaced by the following:

20 The portion of subsection 6.3(1) of the Regulations before paragraph (b) is replaced by the following:

(1) The company shall establish documented policies and goals to ensure that the purposes referred to in paragraphs 6(a) to (c) are achieved and that its obligations under these Regulations are met. The policies and goals shall include

21 (1) Paragraph 6.4(a) of the Regulations is replaced by the following:

(2) Paragraph 6.4(c) of the Regulations is replaced by the following:

22 (1) Paragraph 6.5(1)(b) of the English version of the Regulations is replaced by the following:

(2) Paragraphs 6.5(1)(e) and (f) of the Regulations are replaced by the following:

(3) Paragraph 6.5(1)(n) of the Regulations is replaced by the following:

(4) Paragraph 6.5(1)(v) of the Regulations is replaced by the following:

(5) Paragraph 6.5(1)(x) of the Regulations is replaced by the following:

23 Paragraphs 6.5(1)(j), (k) and (q) of the Regulations are amended by replacing “security” with “safety and security”.

24 Paragraphs 6.6(1)(a) and (b) of the Regulations are replaced by the following:

25 Section 47 of the French version of the Regulations is replaced by the following:

47 La compagnie établit, met en œuvre et maintient un programme de gestion de la sécurité qui permet de prévoir, de prévenir, de gérer et d’atténuer les conditions potentiellement dangereuses et l’exposition à de telles conditions pendant les activités liées à la construction, à l’exploitation, à l’entretien, à la cessation d’exploitation ainsi qu’aux situations d’urgence.

26 Section 47.2 of the Regulations is replaced by the following:

47.2 A company shall develop, implement and maintain a damage prevention program that anticipates, prevents, manages and mitigates damage to its pipeline and meets the requirements set out in section 16 of the Canadian Energy Regulator Pipeline Damage Prevention Regulations — Obligations of Pipeline Companies.

27 Section 50 of the Regulations is amended by replacing “74” with “241”.

28 (1) Paragraph 53(1)(a) of the Regulations is amended by replacing “Part III” with “Parts 2 and 3”.

(2) Paragraph 53(1)(b) of the Regulations is replaced by the following:

(3) Paragraph 53(1)(d) of the Regulations is replaced by the following:

29 The Regulations are amended by replacing “Board” with “Regulator” in the following provisions:

30 The Regulations are amended by replacing “Board” with “Commission” in the following provisions:

National Energy Board Processing Plant Regulations

31 The title of the National Energy Board Processing Plant Regulations footnote 4 is replaced by the following:

Canadian Energy Regulator Processing Plant Regulations

32 (1) The definition Act in section 1 of the Regulations is replaced by the following:

(2) Section 1 of the Regulations is amended by adding the following in alphabetical order:

33 Paragraph 7(a) of the Regulations is amended by replacing “Part III or V” with “Part 3 or 6”.

34 (1) Paragraph 52(1)(a) of the Regulations is amended by replacing “Part III” with “Parts 2 and 3”.

(2) Paragraph 52(1)(b) of the Regulations is replaced by the following:

(3) Paragraph 52(1)(d) of the Regulations is replaced by the following:

35 The Regulations are amended by replacing “Board” with “Commission” in the following provisions:

36 The Regulations are amended by replacing “Board” with “Regulator” in the following provisions:

National Energy Board Pipeline Damage Prevention Regulations – Obligations of Pipeline Companies

37 The title of the National Energy Board Pipeline Damage Prevention Regulations – Obligations of Pipeline Companies footnote 5 is replaced by the following:

Canadian Energy Regulator Pipeline Damage Prevention Regulations – Obligations of Pipeline Companies

38 The definition authorization in section 1 of the Regulations is replaced by the following:

39 Section 16 of the Regulations is amended by replacing “National Energy Board Onshore Pipeline Regulations” with “Canadian Energy Regulator Onshore Pipeline Regulations”.

40 The Regulations are amended by replacing “National Energy Board Pipeline Damage Prevention Regulations – Authorizations” with “Canadian Energy Regulator Pipeline Damage Prevention Regulations – Authorizations” in the following provisions:

41 The Regulations are amended by replacing “Board” with “Regulator” in the following provisions:

Coming into Force

42 These Regulations come into force on the day on which they are registered.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Issues

An Act to enact the Impact Assessment Act and the Canadian Energy Regulator Act, to amend the Navigation and Protection Act and to make consequential amendments to other Acts, repeals the National Energy Board Act (NEB Act) and replaces it with the Canadian Energy Regulator Act (CER Act). At the same time, the National Energy Board (NEB) is replaced with the Canadian Energy Regulator (CER). The CER, similar to the NEB, provides regulatory oversight over the full lifecycle of federal energy infrastructure, including pipelines that cross interprovincial and international borders and international and designated interprovincial power lines; the Regulator is also responsible for ensuring that its regulated infrastructure is constructed, operated and abandoned in a manner that is safe, secure and protects people, property and the environment.

Background

Regulations made under the NEB Act remain in force following the repeal of the NEB Act due to paragraph 44(g) of the Interpretation Act. The provision provides that all regulations made under a repealed enactment remain in force and are deemed to have been made under the new enactment that replaces it (i.e. the CER Act), in so far as they are not inconsistent with the new enactment (and until such time as the former regulations are replaced or expressly repealed).

Changes for names and terms are required for several regulations (the Regulations) that are made by the Regulator with the approval of the Governor in Council. The Regulations are:

The Regulations make reference to the NEB Act, and amendments are required to refer to the appropriate section, as well as the appropriate names and terms, in the CER Act.

Amendments are also made to the OPR to address queries raised by the Standing Joint Committee for the Scrutiny of Regulations (SJCSR) on the Regulations Amending the Onshore Pipeline Regulations 1999, SOR/2013-49 (2013 OPR amendments). These queries are related to management system requirements and minor linguistic matters.

Objective

The objective of the Regulations Amending Certain Energy Regulations Made Under the National Energy Board Act (Miscellaneous Program) [the Amending Regulations] is to make amendments to certain names and terms in the Regulations for alignment with the CER Act and to address the SJCSR’s queries on the 2013 OPR amendments.

Description

Amendments across the Regulations

The following amendments were made to the Regulations, for alignment with the CER Act:

Amendments for specific regulations

The amendments made to specific regulations are described in this section.

Oil Pipeline Uniform Accounting Regulations and Gas Pipeline Uniform Accounting Regulations

The authority for the OPUAR and the GPUAR (previously made under subsection 129(1) of the NEB Act) is subsection 389(1) of the CER Act.

The following changes were made to align these regulations with the CER Act:

The French version of the GPUAR only is amended by replacing “société,” wherever it occurs, with “compagnie,” with any necessary modifications. This change is required because the CER Act defines the word “compagnie.”

National Energy Board Onshore Pipeline Regulations

The authority for the OPR (previously made under subsection 48(2) of the NEB Act) appears under section 96 of the CER Act.

The following changes were made to align these Regulations with the CER Act:

To address the SJCSR’s queries in relation to the 2013 OPR amendments, the following sections were amended:

In paragraph 6.5(1)(e), the words “and managing” have been removed from the phrase “a process for evaluating and managing risks.” This has been done to clarify that the objective of paragraph 6.5(1)(e) is to require a company to establish and implement a process to evaluate risk, which is a first step in managing risk once the hazards are identified. Paragraph 6.5(1)(f) provides the explicit steps associated with the management of risks, once they are evaluated, and this remains unchanged.

National Energy Board Processing Plant Regulations (PPR)

The authority for the PPR (previously made under subsection 48(2) of the NEB Act) is section 96 of the CER Act.

The following changes were made to align this regulation with the CER Act:

National Energy Board Pipeline Damage Prevention Regulations – Obligations of Pipeline Companies (DPRO)

The authority for the DPRO (previously under subsection 48(2) and subsection 112(5) of the NEB Act), appears under section 96 and subsections and 335(5) and (6) of the CER Act.

The following changes were made to align this regulation with the CER Act:

Rationale

Amendments to certain names, sections and terms in the Amending Regulations are made so that the Regulations align with the CER Act. The Amending Regulations also address the SJCSR’s review of the Regulations Amending the Onshore Pipeline Regulations, 1999, SOR/2013-49. The amendments help to correct or improve the regulatory base, and do not impose any costs on the government or stakeholders.

One-for-one rule and small business lens

The one-for-one rule does not apply to these amendments, as there is no change in administrative costs or burden to business.

The small business lens does not apply to these amendments, as there are no costs to small business.

Contact

Andrea Boras
Regulatory Policy Team
Canadian Energy Regulator
517 Tenth Avenue SW, Suite 210
Calgary, Alberta
T2R 0A8
Email: andrea.boras@cer-rec.gc.ca
Toll-free telephone: 1‑800‑899‑1265
Toll-free fax: 1‑877‑288‑8803
TTY (teletype): 1‑800‑632‑1663