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1 (1) The definition Board in section 2 of the Oil Pipeline Uniform Accounting Regulations^{footnote 1} is repealed.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

Commission means the Commission referred to in subsection 26(1) of the Canadian Energy Regulator Act. (Commission)

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55 (1) Where, in the opinion of a company, depreciation rates that have been filed with the Regulator are no longer applicable, the company shall file revised rates with the Commission for approval.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

(a) section 3;
(b) paragraph 5(2)(b);
(c) subsection 6(8);
(d) subsection 10(2);
(e) subsection 40(2);
(f) subsection 43(3);
(g) subsection 44(2);
(h) subsection 54(1);
(i) subsection 62(6);
(j) subsection 64(1);
(k) subsection 65(1);
(l) subsection 66(1);
(m) subsection 67(3);
(n) subsections 73(2) and (4);
(o) subsection 74(2); and
(p) subsection 78(1).

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

(a) the definitions fiscal year and operator in section 2;
(b) section 4;
(c) paragraphs 5(1)(b) and (2)(a);
(d) subsection 6(10);
(e) subsection 15(3);
(f) subsection 28(2);
(g) subsection 30(1);
(h) subsections 31(2) and (3);
(i) subsections 33(3) and (4);
(j) subsection 41(3);
(k) subsection 50(2);
(l) paragraph 52(2)(b);
(m) subsection 53(3);
(n) subsection 54(5);
(o) subsection 56(2);
(p) subsection 57(3);
(q) section 59;
(r) subsections 68(1) and (3);
(s) subsection 73(5);
(t) subsection 30(4) of Schedule I;
(u) subsections 32(1) and (2) of Schedule I;
(v) subsection 42(2) of Schedule I;
(w) paragraph 44(1)(b) of Schedule I;
(x) paragraph 70(1)(a) of Schedule I;
(y) subsection 74(2) of Schedule I;
(z) subsection 93(2) of Schedule I;
(z.1) subsection 101(4) of Schedule II;
(z.2) subsection 102(4) of Schedule II;
(z.3) subsection 189(1) of Schedule II;
(z.4) subsection 303(1) of Schedule III;
(z.5) subsection 304(2) of Schedule III;
(z.6) subsection 402(1) of Schedule IV;
(z.7) subsections 404(1) and (2) of Schedule IV;
(z.8) subsection 415(2) of Schedule IV; and
(z.9) subsection 423(1) of Schedule IV.

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:

Commission means the Commission referred to in subsection 26(1) of the Canadian Energy Regulator Act. (Commission)

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

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:

(a) the definitions fiscal year and operator in section 2;
(b) section 4;
(c) paragraphs 5(1)(b) and (2)(a);
(d) subsection 6(10);
(e) subsection 10(3);
(f) subsection 15(3);
(g) subsection 28(2);
(h) subsection 30(1);
(i) subsections 31(2) and (3);
(j) subsections 33(3) and (4);
(k) subsection 40(3);
(l) subsection 41(3);
(m) subsection 50(2);
(n) paragraph 52(2)(b);
(o) subsection 53(3);
(p) subsection 54(5);
(q) subsection 56(2);
(r) section 59;
(s) subsections 68(1) and (3);
(t) subsection 73(5);
(u) subsections 106(1) and (3) of Schedule I;
(v) subsection 126(2) of Schedule I;
(w) subsection 152(2) of Schedule I;
(x) section 153 of Schedule I;
(y) section 171 of Schedule I;
(z) subsection 172(1) of Schedule I;
(z.1) subsection 177(3) of Schedule I;
(z.2) subsection 178(2) of Schedule I;
(z.3) paragraph 179(c) of Schedule I;
(z.4) subsection 216(2) of Schedule I;
(z.5) subsection 278(2) of Schedule I;
(z.6) paragraphs 279(c) and (d) of Schedule I;
(z.7) paragraph 291(1)(a) of Schedule I;
(z.8) subsections 304(1), (2) and (5) of Schedule II;
(z.9) subsection 331(1) of Schedule II;
(z.10) the portion of Schedule III before section 350;
(z.11) subsection 351(1) of Schedule III;
(z.12) subsection 352(2) of Schedule III;
(z.13) subsection 410(8) of Schedule IV;
(z.14) subsection 411(4) of Schedule IV;
(z.15) subsection 497(1) of Schedule IV; and
(z.16) subsection 651(2) of Schedule VI.

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

(a) section 3;
(b) paragraph 5(2)(b);
(c) subsection 6(8);
(d) subsection 8(2);
(e) subsection 40(2);
(f) subsection 43(3);
(g) subsection 44(2);
(h) subsection 54(1);
(i) subsection 62(6);
(j) subsection 64(1);
(k) subsection 65(1);
(l) subsection 66(1);
(m) subsection 67(3);
(n) subsections 73(2) and (4);
(o) subsection 74(2);
(p) subsection 78(1); and
(q) subsection 100(5) of Schedule I.

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:

Act means the Canadian Energy Regulator Act. (Loi)
inspection officer means an inspection officer designated by the Chief Executive Officer under section 102 of the Act. (inspecteur)

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

Commission means the Commission referred to in subsection 26(1) of the Act. (Commission)

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

(a) the safety and security of persons;
(b) the safety and security of pipelines and abandoned pipelines; and
(c) the protection of property and the environment.

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

(a) is explicit, comprehensive and proactive;
(b) integrates the company’s operational activities and technical systems with its management of human and financial resources;

(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:

(b) ensure that the company’s activities are carried out in a manner that enables it to meet its obligations under these Regulations.

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

(a) a policy for the internal reporting of hazards, potential hazards, incidents and near-misses that includes the circumstances, in addition to those set out in the Canada Labour Code, under which a person who makes a report will be immune from disciplinary action; and

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

(a) meet the requirements of the management system and meet its obligations under these Regulations;

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

(c) demonstrate, based on an annual documented evaluation of need, that the human resources allocated to establishing, implementing and maintaining the management system are sufficient to meet the requirements of the management system and to meet the company’s obligations under these Regulations.

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

(b) develop performance measures for evaluating the company’s success in achieving its goals, objectives and targets;

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

(e) establish and implement a process for evaluating the risks associated with the identified hazards and potential hazards, including the risks related to normal and abnormal operating conditions;
(f) establish and implement a process for developing and implementing controls to prevent, manage and mitigate the identified hazards, potential hazards and risks and for communicating those controls to anyone who is exposed to the risks;

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

(n) establish and implement a process for identifying the documents required for the company to meet its obligations under these Regulations;

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

(v) establish and implement a process for evaluating the adequacy and effectiveness of the company’s management system and for monitoring, measuring and documenting the company’s performance in meeting its obligations under these Regulations;

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

(x) establish and implement a process for conducting an annual management review of the management system and each program referred to in section 55 and for ensuring continual improvement in meeting the company’s obligations under these Regulations.

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:

(a) the company’s performance in achieving its goals, objectives and targets during that year, as evaluated by the performance measures developed under paragraph 6.5(1)(b);
(b) the adequacy and effectiveness of the company’s management system, as evaluated by the process established and implemented under paragraph 6.5(1)(v); and
(c) the actions taken during that year to correct any deficiencies identified by the quality assurance program established under paragraph 6.5(1)(w).

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:

(b) Part 6 of the Act as it relates to the safety and security of persons and for the protection of property and the environment;

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

(d) the terms and conditions of any certificate or order issued by the Commission, as it relates to the safety and security of persons and for the protection of property and the environment.

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

(a) the definition incident in section 1;
(b) subsection 6.2(2);
(c) subsection 6.6(2);
(d) section 9;
(e) subsection 10(2);
(f) section 14;
(g) section 16;
(h) subsection 20(1);
(i) section 23;
(j) section 27;
(k) subsection 31(1);
(l) subsection 32(2);
(m) subsection 41(2);
(n) section 42;
(o) section 51; and
(p) subsection 52(1).

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

(a) section 5;
(b) section 5.1;
(c) paragraph 11(d);
(d) subsection 38(3);
(e) section 43;
(f) subsection 44(1);
(g) subsection 45(1);
(h) subsection 45.1(1);
(i) section 49 and the heading before it; and
(j) subsection 54(1).

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:

Act means the Canadian Energy Regulator Act. (Loi)

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

Commission means the Commission referred to in subsection 26(1) of the Act. (Commission)

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:

(b) Part 6 of the Act as it relates to the safety and security of persons and for the protection of property and the environment;

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

(d) the terms and conditions of any certificate or order issued by the Commission, as they relate to the safety and security of persons and for the protection of property and the environment.

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

(a) section 6;
(b) section 7;
(c) subsection 43.1(1); and
(e) subsection 53(1).

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

(a) subsection 9(1);
(b) subsection 27(1);
(c) subsection 29(4);
(d) paragraphs 35(b) and (c);
(e) subsection 42(1);
(f) subsection 43(1);
(g) section 46;
(h) paragraphs 47(a) and (b);
(i) section 48; and
(j) subsections 49(1.1) and (2).

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:

authorization means the authorization referred to in subsection 335(1) or paragraph 335(2)(a) of the Canadian Energy Regulator Act. (autorisation)

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:

(a) the definition prescribed area in section 1;
(b) subsections 3(1) and (2);
(c) section 7;
(d) subparagraph 8(c)(ii);
(e) paragraphs 10(1)(a) and (b);
(f) paragraph 11(1)(a);
(g) paragraph 12(2)(g);
(h) subsection 12(3);
(i) paragraph 14(a);
(j) section 15; and
(k) section 18.

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

(a) section 4;
(b) section 5;
(c) subsection 9(2);
(d) subsection 10(2);
(e) subsection 11(1);
(f) section 13; and
(g) the portion of section 14 before paragraph (a).

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:

Oil Pipeline Uniform Accounting Regulations (OPUAR);
Gas Pipeline Uniform Accounting Regulations (GPUAR);
National Energy Board Onshore Pipeline Regulations (OPR);
National Energy Board Processing Plant Regulations (PPR); and
National Energy Board Pipeline Damage Prevention Regulations – Obligations of Pipelines Companies (DPRO).

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:

All references in the Regulations to the “National Energy Board” are amended to the “Canadian Energy Regulator.”
All references to “Board” in the Regulations are amended to either “Regulator” or “Commission,” as appropriate. “Commission” is used where any formal application is required, or for approvals, or to exercise an authority provided in the CER Act. “Regulator” is used when referring to the organization or its administrative functions.

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:

Section 2 is amended by adding the definition of Commission: “Commission means the Commission referred to in subsection 26(1) of the Canadian Energy Regulator Act; (Commission)”

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:

The title of the OPR is changed to the Canadian Energy Regulator Onshore Pipeline Regulations.
In section 1, the definition of inspection officer is amended to replace “section 49” with “section 102.” Additionally, section 1 is amended by adding the definition of “Commission”: “Commission means the Commission referred to in subsection 26(1) of the Canadian Energy Regulator Act (Commission).”
Subsection 6(a) is amended to replace “the public and the company’s employees” with “persons.”
Subsection 6(b), is amended to replace “pipeline” with “pipelines and abandoned pipelines.”
Section 50 is amended to replace “section 74 of the Act” with “section 241 of the Act.”
Paragraph 53(1)(a) is amended to replace “Part III of the Act” with “Part 2 and 3 of the Act.”
Paragraph 53(1)(b) is amended to replace “Part V of the Act as it relates to the protection of property and the environment and the safety and security of the public and of the company’s employees” with “Part 6 of the Act as it relates to the safety and security of persons and for the protection of property and the environment.”
Paragraph 53(1)(d) is amended to replace “as they relate to the protection of property and the environment and the safety of the public and the company’s employees” with “as it relates to the safety and security of persons and for the protection of property and the environment.”

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

Section 6 contains a general provision that a company must design, construct, operate or abandon a pipeline in a manner that ensures safety, security and protection of the environment. The SJCSR asked how a company could be in contravention of section 6 when that company is at the same time in compliance with all other provisions of the OPR. This section is redrafted as a statement of the purpose of the OPR, which is to require and enable a company to design, construct, operate and abandon a pipeline in a manner that ensures safety, security and protection of the environment. Section 6 is referenced in subsections 6.2(1) and 6.3(1) as well as paragraphs 6.2(3)(b), 6.4(a) and (c), 6.5(1)(n), (v) and (x). Since section 6 is amended to explicitly provide the purpose of the OPR, references to a company meeting its obligations “under section 6” are amended to “under these Regulations” in these subsections and paragraphs.
The reference to section 6 in paragraph 6.1(b) was removed and not replaced because the requirement for integration between operations, technical systems and human resources is related to the requirement in section 6.1 for a company to establish, implement and maintain a management system; therefore, referencing the amended section 6 is not necessary.
In section 6.1, the OPR requires a company to establish a management system; the SJCSR notes that it does not give a timeframe for establishing the management system. This section is amended to clarify that a management system must be in place within 90 days after the date the Board issues a certificate or order authorizing the construction or operation of a pipeline under the NEB Act. This timeframe allows the company to conduct the coordination and communication needed to implement a functioning management system.
Paragraph 6.1(a) states that a management system must be systematic, explicit, comprehensive and proactive. The SJCSR indicated that the word “systematic” is not needed, as a management system is by definition systematic. As a result, the word “systematic” is removed in this subsection.
Subsection 6.2(1) requires that an accountable officer be appointed by the company to ensure that, on its behalf, a management system is established. An accountable officer is the officer of the company that is responsible for overseeing the implementation of the company’s management system and related programs (safety, security, damage prevention, integrity, environmental protection and emergency management). The accountable officer provides the focus, direction, influence and leadership required to create a robust safety culture, and implement and continually improve a well-functioning management system within the organization. The SJCSR noted that it would seem to be apparent that the accountable officer is acting for the company in carrying out his or her duties and that the phrase “on its behalf” is not required. The phrase “on its behalf” is removed from this subsection.
Paragraph 6.3(1)(a) requires a company to have a documented policy in place for the internal reporting of hazards, potential hazards, incidents and near-misses, and stated that the policy must include the conditions under which a person who makes a report will be granted immunity from disciplinary action. The SJCSR noted that employees’ rights and immunities are a matter of the Canada Labour Code, and are not determined by company policy. This paragraph is amended to clarify that a company’s internal reporting policy sets the circumstances, in addition to those set out in the Canada Labour Code, under which a person making such a report will be immune from disciplinary action.
In the English version of paragraph 6.5(1)(b), the word “assessing” has been replaced with “evaluating” to be consistent with the wording used paragraph 6.5(1)(v) and in the French version.
Paragraphs 6.5(1)(c) and (d) require that a company establish and implement a process for identifying and analyzing all hazards and potential hazards, and establish and maintain an inventory of the identified hazards, and potential hazards, for all lifecycle aspects of the pipeline. Paragraphs (e) and (f) require a company to establish and implement processes to evaluate, manage, prevent and mitigate the identified hazards and risks. The SJCSR noted that the wording in (e) and (f) should reflect the wording in (c) and (d) with respect to identified hazards and potential hazards. The words “potential hazards” are added to paragraphs (e) and (f).

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.

Paragraphs 6.5(1)(j), (k) and (q) require that a company establish and implement processes for worker training, verification of training and competencies, and coordination and management so that workers are able to perform their duties in a manner that is safe, ensures the security of the pipeline and protects the environment. The SJCSR noted that the phrase “security of the pipeline” in this paragraph is not consistent with section 6 which refers to the “safety and security of the pipeline”. Each reference to the “security of the pipeline” in paragraphs 6.5(1)(j), (k) and (q) is amended to “safety and security of the pipeline.”
Paragraph 6.5(1)(v) requires a company to establish and implement a process for evaluating the adequacy and effectiveness of a company’s management system in meeting its obligations. The SJCSR noted that the French version of paragraph 6.5(1)(v) should be consistent with the wording used in the French version of paragraph 6.5(1)(x) and the English version of paragraph 6.5(1)(v). To make these sections consistent, the word “aux” has been replaced with the words “au respect des”; the French version now reads “en ce qui a trait au respect des obligations…”
Paragraph 6.5(1)(x) requires a company to establish and implement a process for conducting an annual review of its management system for each program referred to in section 55. Section 55 requires a company to conduct audits for programs set out under specific provisions of the OPR, such as the emergency management program referred to in section 32 or the safety management program referred to in section 47. The SJCSR noted the word “in” is missing in the English version of the regulations. This paragraph has been amended to include the word “in,” and reads as follows: “each program referred to in section 55.”
The SJCSR noted that the French version of paragraph 6.5(1)(x) should be consistent with the wording used in the French version of paragraph 6.5(1)(v) and the English version of paragraph 6.5(1)(x). To make these sections consistent, the word “company” has been added in the French version of paragraph 6.5(1)(x). This paragraph has been amended to add “de la compagnie” to this paragraph so that it reads “en ce qui a trait au respect des obligations de la compagnie…”
Paragraph 6.6(1)(a) requires a company to complete an annual report that describes the performance of its management system and how it achieved its goals and objectives under paragraphs 6.5(1)(b) and (v). The SJCSR noted that paragraph 6.5(1)(v) requires that a company establish and implement a process to evaluate the company’s management system, but does not refer to goals and objectives. The SJCSR noted a drafting inconsistency between the company reporting requirements in paragraph 6.6(1)(a) and the performance measurement and monitoring requirements in paragraphs 6.5(1)(b) and 6.5(1)(v). The SJCSR suggested referring to a report that describes “the company’s performance.” Paragraph 6.6(1)(a) has been amended to read: “…the company’s performance in achieving its goals, objectives and targets during that year, as evaluated by the performance measures developed under paragraph 6.5(1)(b).” A new paragraph 6.6(1)(b) has been added which reads “the adequacy and effectiveness of the company’s management system, as evaluated by the process established and implemented under paragraph 6.5(1)(v).” The original paragraph 6.6(1)(b) has been renumbered as 6.6(1)(c) and remains unchanged.
Section 47 requires a company to have a Security Management Program that anticipates, prevents, manages and mitigates potentially dangerous conditions and exposure to those conditions during all activities relating to construction, operation, maintenance, abandonment and emergency situations. The SJCSR identified a discrepancy between the French and English versions of this provision. The French version refers to “les activités de construction, d’exploitation, d’entretien, de cessation d’exploitation ainsi que celles relatives aux situations d’urgence,” whereas the English version refers to “activities relating to construction, operation, maintenance, abandonment and emergency situations.” The SJCSR noted that the French version is open to being interpreted as referring only to activities related to emergency situations. To clarify that these activities can be related to any of these situations, this section has been amended as follows: “les activités liées à la construction, à l’exploitation, à l’entretien, à la cessation d’exploitation ainsi qu’aux situations d’urgence.”

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:

The title of the PPR is changed to the Canadian Energy Regulator Processing Plant Regulations.
Section 1 is amended by adding the definition of Commission: “Commission means the Commission referred to in subsection 26(1) of the Canadian Energy Regulator Act. (Commission).”
Section 7(a) is amended to replace “Part III or V of the Act” with “Part 3 or 6 of the Act.”
Paragraph 52(1)(a) is amended to replace “Part III of the Act” with “Parts 2 and 3 of the Act.”
Paragraph 52(1)(b) is amended to replace “Part V of the Act” with “Part 6 of the Act.”
Paragraphs 52(1)(b) and (d) are amended to replace the “protection of property and the environment and the safety of persons” with “safety and security of persons and for the protection of property and the environment.”

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:

The title of the DPRO is changed to the Canadian Energy Regulator Pipeline Damage Prevention Regulations – Obligations of Pipeline Companies.
Section 1, the definition of authorization is amended by replacing “subsection 112(1) or paragraph 112(2)(a)” with “subsection 335(1) or paragraph 335(2)(a).”

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

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

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

Oil Pipeline Uniform Accounting Regulations

Gas Pipeline Uniform Accounting Regulations

National Energy Board Onshore Pipeline Regulations

National Energy Board Processing Plant Regulations

Canadian Energy Regulator Processing Plant Regulations

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

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

Coming into Force

REGULATORY IMPACT ANALYSIS STATEMENT

Issues

Background

Objective

Description

Amendments across the Regulations

Amendments for specific regulations

Oil Pipeline Uniform Accounting Regulations and Gas Pipeline Uniform Accounting Regulations

National Energy Board Onshore Pipeline Regulations

National Energy Board Processing Plant Regulations (PPR)

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

Rationale

One-for-one rule and small business lens

Contact