BILL 25 Gas Distribution Act, 1999

BILL 25

Gas Distribution Act, 1999

Chapter Outline

Definitions 1

affiliate — affilié

alternative form of regulation — autre mode de
réglementation

associate — associé

associated unit of measure — unité de mesure applicable

bituminous shale — schistes bitumineux

Board — Commission

building — bâtiment

certificate — certificat

city gate station — poste de livraison

Court — Cour

Court of Queen’s Bench — Cour du Banc de la Reine

customer — client

customer service — service à la clientèle

distribute — distribuer

electronic hearing — audience électronique

environment — environnement

former act — ancienne loi

franchise agreement — contrat de concession

franchise area — zone visée par la concession

gas — gaz

gas distribution system — système de distribution de gaz

gas distributor — distributeur de gaz

gas marketer/gas marketing — agent de commercialisation
de gaz/commercialisation de gaz

general franchise — concession générale

ground disturbance — perturbation du sol

hearing — audience

high pressure pipeline — gazoduc à haute pression

highway — route

inspector — inspecteur

licence/licensee — licence/titulaire de licence

local gas producer/produce/production — producteur local
de gaz/produire/production

local gas producer franchise — concession de producteur
local de gaz

low volume consumer — petit consommateur

Minister — Ministre

oral hearing — audience orale

permit/permittee — permis/titulaire de permis

pipeline — gazoduc

prescribed — prescrit

processing plant — usine de traitement

professional engineer — ingénieur

road — chemin

single end user — utilisateur ultime

single end use franchise — concession d’utilisateur ultime

standard construction regulation — règlement type sur la
construction

start up costs — frais de démarrage

supplier of last resort — fournisseur de dernier ressort

transmission line — canalisation de transport

well — puits

works — ouvrage

written hearing — audience écrite

PART 1

GRANTING OF GAS DISTRIBUTION RIGHTS

Application of Act 2

Who may distribute gas 3

Prohibition against distributing gas unless authorized 4

Grant of authorization to distribute by LGIC 5

Grant of authorization to distribute by Board 6

Local gas producers 7

Scope of franchise agreements 8

Breach of franchise agreements 9

Amendment of franchise agreements 10

Renewal or extension of franchise agreements 11

Cancellation and termination of existing rights 12

Application and fee for single end use franchise 13


A gas distribution system is a public utility and a
gas distributor is a common carrier of gas 14

Gas distribution and provision of customer service 15

PART 2

PIPELINE CONSTRUCTION AND OPERATION

Prohibition against constructing a pipeline without
a permit 16

Certification of pipelines 17

Application for permit 18

Notice of route required 19

Review of application by Public Utilities Board 20

Grant of permit by Public Utilities Board 21

Application to amend permit 22

Application to alter a pipeline 23

Standard construction regulation 24

Prohibition against operating a pipeline without a licence 25

Amendment or replacement of licence 26

Prohibition against disposal of a gas distribution system,
or sale or merger of a gas utility, without leave of the
Board 27

A gas distributor must be authorized to do business in
New Brunswick 28

Cancellation of licence 29

Prohibition against discontinuing or resuming operation
of a pipeline without leave of the Board 30

Insurance required 31

Constructing pipelines over land, roads, or water 32

Suspension of construction or operation by the Board 33

Ground disturbance over or near pipelines 34

Removal of pipelines 35

Effect on mines and repair of property damage 36

Working mineral deposits near pipelines requires leave of
he Board 37

Testing pipelines 38

Breaks in pipelines and their repair 39

Relocation of pipelines 40

Prohibition against running pipelines under buildings 41

Inspection of pipelines 42

Acquisition of land 43

Damage to property 44

Boiler and Pressure Vessel Act applies to gas installations 45

Liability for property damage 46

PART 3

GAS STORAGE

Prohibition against injecting gas into an underground
storage facility without authorization 47

Authorization of use of underground storage facilities 48

Shared use of underground storage facilities 49

Licences relating to wells 50

PART 4

REGULATION OF GAS DISTRIBUTORS AND
CUSTOMER SERVICES

Prohibition against sale of gas by distributors except
as suppliers of last resort (but not by their affiliates) 51

Regulation of rates and tariffs 52

Publication of rates and tariffs by associated unit of
measure 53

Burden of proof 54

Filing and inspection of schedules 55

Change of rates and tariffs 56

Safety and inspection of facilities 57

PART 5

GAS MARKETERS

Prohibition against marketing gas without a certificate 58

Prices of gas and services may be fixed by order of
the Board 59

Enforcement of contracts 60

Issue of certificate 61

Grounds for denying certificate 62

Refusal or revocation of certificate 63

Notice and appeal of refusal or revocation 64

Renewed application for certificate 65

PART 6

RULES OF CONDUCT

Power of Board to make rules 66

Notice of proposed rules 67

Coming into force of rules 68

Duties of gas distributors 69

PART 7

POWERS OF THE BOARD UNDER THIS ACT

The Board is a court of record 70

Jurisdiction and powers 71

Procedure 72

Protection of commissioners and employees 73

Appointment and payment of agents 74

Relief, review and variance of decisions 75

Ex parte orders 76

Interim orders 77

Board orders valid despite technical defect 78

Appeal does not of itself stay an order 79

Subpoena of documents 80

Issue and certification of documents 81

Summoning witnesses 82

Joint hearings 83

Joint proceedings 84

Forbearance from regulation 85

Costs 86

Recovery of Board’s expenses 87

Immunity and Conflict of Interest 88

Appeals 89

PART 8

GAS PRIORITIES AND ALLOCATION

Purpose of part 90

Gas allocation plans 91

The Board may allocate gas by order 92

Plans, orders and regulations override contracts 93

Orders not suspended by appeal to Court 94

PART 9

REGULATIONS

By Lieutenant-Governor in Council 95

By Board 96

PART 10

OFFENCES

Liability and penalties 97

Punishment 98

Prohibited actions 99

PART 11

CONSEQUENTIAL AMENDMENTS

Amendment of clauses in Community Planning Act 100

Repeal of Gas Distribution Act 101


Repeal of Gas Public Utilities Act 102


Repeal or amendment of clauses in Municipalities Act 103

Repeal or amendment of definitions and clauses in
Pipe Line Act 104

Repeal or amendment of definitions and clauses
in Underground Storage Act 105

PART 12

COMMENCEMENT

Commencement 106

Schedule A

 

 

Her Majesty, by and with the advice and consent of the Legislative Assembly of New Brunswick, enacts as follows:

1 In this Act

"affiliate" means a corporation that is affiliated with another corporation as defined in subsection 1(2) of the Business Corporations Act;

"alternative form of regulation" means a method of establishing just and reasonable rates and charges by performance based regulation, without regard to methods based strictly upon cost of service, rate base and rate of return, including earnings sharing, price caps, price indexing formulas, ranges of authorized rates of return, and the reduction or suspension of regulatory requirements;

"associate" means associate as defined in subsection 1(1) of the Business Corporations Act and "associated" has a corresponding meaning;

"associated unit of measure" includes the associated unit of measure referred to in subsection 53(1) and has the meaning prescribed by the Board;

"bituminous shale" means bituminous shale as defined in the Bituminous Shale Act;

"Board" means the Board of Commissioners of Public Utilities constituted under the Public Utilities Act;

"building" means any structure or installation on, within or under which gas is or can be used for any purpose;

"certificate" means a gas marketer’s certificate issued under this Act and "certified" has a corresponding meaning;

"city gate station" means the point or measuring station at which a gas distributor receives gas from a high pressure pipeline and at which gas is metered, reduced in pressure and prepared for distribution to individual customers;

"Court" means The Court of Appeal of New Brunswick as defined in the Judicature Act;

"Court of Queen’s Bench" means The Court of Queen’s Bench of New Brunswick as defined in the Judicature Act;

"customer" means any person who uses or consumes gas within New Brunswick for industrial, commercial, residential or marketing purposes other than a gas distributor;

"customer service" is a service that is not a natural monopoly and includes appliance service, yardline or houseline maintenance, meter reading, billing, collections, call centre, load balancing, peaking service, supplier of last resort service, storage and arranging for pipeline capacity on a transmission line or a pipeline regulated by the United States Federal Energy Regulatory Commission;

"distribute" means to transmit, transport, move or conduct gas by any means whatsoever and "distribution" has a corresponding meaning;

"electronic hearing" means a hearing held by conference telephone or some other form of electronic technology allowing persons to hear one another;

"environment" means the air, water or soil as defined in section 1 of the Clean Environment Act;

"former act" means the Gas Distribution Act, chapter G-2.1 of the Acts of New Brunswick, 1981;

"franchise agreement" means an agreement required under section 7;

"franchise area" means the area of the Province in which a gas distributor has been granted the right by either the Lieutenant-Governor in Council or the Board to distribute gas and offer customer services to customers;

"gas" means any hydrocarbon or mixture of hydrocarbons that, at a temperature of 15 degrees Celsius and an absolute pressure of 101.325 kilopascals, is in a gaseous state;

"gas distribution system" means all or part of a gas pipeline, up to and including the meter, that is used to distribute gas to a building where it is used by a customer;

"gas distributor" means a person owning, operating, managing or controlling a gas distribution system and who has been granted a general franchise or a local gas producer franchise under the former act or this Act to distribute gas to customers in the Province;

"gas marketer" means a person who,

(a) sells or offers to sell gas or a customer service to a customer,

(b) acts as the agent or broker for a seller of gas or of a customer service to a customer, or

(c) acts or offers to act as the agent or broker of a customer in purchasing gas or a customer service;

and "gas marketing" has a corresponding meaning;

"general franchise" means a franchise to distribute gas and provide customer services in the whole of the Province, subject to single end use franchises and local gas producer franchises that have been or may be granted under the former act or this Act, and subject to any order of the Board made under subsection 9(2);

"ground disturbance" means any work, operation or activity that results in a disturbance of the earth, including excavating, digging, trenching, ploughing, drilling, tunnelling, augering, backfilling, blasting, topsoil stripping, land leveling, peat removing, quarrying, clearing, and grading, but does not include,

(a) a disturbance of the earth to a depth of less than thirty centimetres that does not result in a reduction of the earth cover over the pipeline to a depth that is less than the cover provided when the pipeline was installed,

(b) cultivation to a depth of less than forty-five centimetres below the surface of the ground, or

(c) any work, operation or activity that is stated in the regulations not to be a ground disturbance;

"hearing" means a hearing in any proceeding;

"high pressure pipeline" means a pipeline operated at a pressure greater than twenty-five hundred kilopascals;

"highway" includes a highway as defined in the Highway Act and in the Municipalities Act;

"inspector" means an inspector appointed under this Act;

"licence" means a provisional licence or licence to operate a pipeline issued under this Act and "licensee" has a corresponding meaning;

"local gas producer" means a person having the right to remove gas from a well in New Brunswick, and "produce" and "production" have corresponding meanings;

"local gas producer franchise" means a franchise granted under this Act or the former act to a local gas producer for an area that is less than the whole of the Province;

"low volume consumer" means a person who consumes no more than fifty thousand cubic metres of gas per year;

"Minister" means the Minister of Natural Resources and Energy and any person designated by him or her to act in his or her behalf;

"oral hearing" means a hearing at which the parties or their counsel or agents attend before the Board in person;

"permit" means a permit granted under this Act and "permittee" has a similar meaning;

"pipeline" means any pipe, system or arrangement of pipes wholly within the Province for distributing gas and all property and works of any kind used in connection therewith but does not include a pipeline for which a permit has been issued under the Pipe Line Act or a transmission line;

"prescribed" means prescribed in the regulations made under this Act;

"processing plant" means a plant for extracting from gas hydrocarbon sulphide, helium, ethane, natural gas liquids or other substances, but does not include a wellhead separator, treater or dehydrator;

"professional engineer" means a professional engineer who is authorized to practise as a professional engineer in the Province under the Engineering Profession Act, 1986;

"road" means any public road, road allowance or right of way other than a highway;

"single end use franchise" means a franchise granted to a single end user for one specific industrial facility owned and operated by the single end user;

"single end user" means a person who receives gas directly from a transmission line for use at one specific industrial facility owned and operated by that person;

"standard construction regulation" means the regulation governing the construction of pipelines in municipalities and planning districts in the Province referred to in paragraph 95(1)(n);

"start up costs" means those direct and common expenses that the Board incurs between the coming into force of this Act and March 31, 2002 and which, in its opinion, it would not normally incur once this Act had been in force for a reasonable time;

"supplier of last resort" means a person who sells or delivers gas where a gas marketer fails to supply gas to a customer on a timely basis and no other gas marketer is able or willing to do so;

"transmission line" means a pipeline as defined in the National Energy Board Act (Canada);

"well" means a hole

(a) made or being made by drilling, boring, or in any other manner from which any oil or gas is obtained or obtainable, or made or being made to obtain gas;

(b) used, drilled, or being drilled to obtain water for injection or for injecting natural gas, air, or water into an underground formation; or

(c) used, drilled, or being drilled to a depth beyond four hundred and fifty metres to obtain geological or geophysical information,

and includes any method by which gas is extracted or removed from bituminous shale or coal;

"works" means any building, equipment, apparatus, mechanism, machinery or instrument incidental to operating a pipeline and includes a processing plant, compressor station, meter, connection, or loading or other terminal facility;

"written hearing" means a hearing held by exchanging documents, whether in written form or electronically.

 

PART 1 – GRANTING OF
GAS DISTRIBUTION RIGHTS

2 The Crown is bound by this Act.

3 No person other than

 

(a) a gas distributor, or

(b) an owner of a transmission line,

may distribute gas to customers in the Province.

4(1) On or before January 31, 2000, applications for a general franchise, a local gas producer franchise, a single end use franchise or an application under subsection 6(2) shall be made to the Lieutenant-Governor in Council and the Lieutenant-Governor in Council may exercise all the powers provided to the Board in Part 1 of this Act.

 

4(2) The Lieutenant-Governor in Council may authorize the Minister to act on his or her behalf or assist him or her under subsection (1).

4(3) After January 31, 2000, the Board shall exercise the powers assigned to it in Part 1 with respect to all applications referred to in subsection (1) made to, but not by then decided by, the Lieutenant-Governor in Council.

 

4(4) The Minister, on behalf of the Lieutenant-Governor in Council, shall deliver all applications referred to in subsection (1) to the Board as soon as practicable after January 31, 2000 for determination.

4(5) The Minister may assess a processing fee, require each applicant for a franchise to pay part of this fee and require the applicant who is granted a franchise to pay the balance.

5(1) After January 31, 2000, an application for a general franchise, a local gas producer franchise or a single end use franchise, or an application under subsection 6(2), shall be made to the Board.

 

5(2) The Board may grant a general franchise, a local gas producer franchise or a single end use franchise to a person who has submitted an application under subsection (1).

 

5(3) Subject to subsection 11(1), the term of a franchise granted under subsection (2) shall be twenty years.

5(4) The grant of a franchise under subsection (2) shall be subject to such terms and conditions as the Board considers necessary in the public interest.

5(5) The grant of a franchise by the Board under this section is subject to the approval of the Lieutenant-Governor in Council, which shall be granted or refused unconditionally and without altering, changing or varying the Board’s terms and conditions.

5(6) The Board may assess a processing fee, require each applicant for a franchise to pay part of this fee and require the applicant who is granted a franchise to pay the balance.

6(1) When a local gas producer has submitted an application for a local gas producer franchise to the Board to distribute gas and offer a customer service within a gas distributor’s general franchise, the Board may authorize the producer to do so, where it is satisfied that the customers of the gas distributor would not be materially prejudiced by authorizing the local gas producer to serve the part of the gas distributor’s general franchise to which the application relates.

 

6(2) Where a local gas producer submits an application to connect its pipeline with the gas distribution system of a gas distributor in order to sell gas either to the gas distributor, to an industrial customer or to a transmission line, the Board may authorize the producer to do so, where it is satisfied that

(a) the customers of the gas distributor would not be materially prejudiced by authorizing the local gas producer to connect this pipeline with the gas distributor’s gas distribution system, and

(b) the local gas producer can meet the gas distributor’s standards for gas quality and pressure.

7(1) No gas distributor shall distribute gas to customers in the Province unless it has executed a franchise agreement with the Minister and the franchise agreement has not been terminated according to its terms or otherwise by law.

7(2) Every single end use franchise holder shall execute a franchise agreement with the Minister in a form to be provided by the Minister.

8(1) A franchise agreement referred to in section 7 may

(a) define the franchise area;

(b) require a gas distributor to confer with any municipality or planning district within the franchise area, or any specific official of such a municipality or planning district, about its plans for constructing its gas distribution system, and to carry out the requirements of the standard construction regulation;

 

(c) require a gas distributor to provide financial security for performing its obligations under the franchise agreement in an amount that the Minister shall determine;

(d) require a gas distributor to carry out undertakings given in its franchise application as material terms and conditions of the franchise agreement;

(e) require a gas distributor to carry out any terms and conditions imposed by the Board under subsection 5(4); and

(f) specify such other matters as the Minister considers necessary in the public interest.

8(2) The Lieutenant-Governor in Council may authorize the Minister to act for the Province in respect of all matters relating to the negotiation and execution of a franchise agreement.

9(1) The Board has full authority and jurisdiction to inquire into, determine and report to the Lieutenant-Governor in Council on whether a gas distributor has breached a material term or condition of a franchise agreement and the Board shall do so at least every seven years.

 

 

9(2) Where the Board reports to the Lieutenant-Governor in Council that a gas distributor has breached a material term or condition of a franchise agreement or has committed an act entitling the Province to terminate the franchise agreement, then subject to the approval of the Lieutenant-Governor in Council, the Board may

(a) require any financial security that the gas distributor has provided as a term or condition of the franchise agreement to be forfeited in whole or in part; and the surety of the financial security shall then pay it to the Province forthwith;

(b) apply any financial security forfeited under paragraph (a) to provide gas and customer services in the franchise area;

 

(c) require the gas distributor to provide further financial security;

(d) permit another gas distributor to perform the term or condition of the franchise agreement that the gas distributor has breached, and permit the gas distributor who does so to use the gas distribution system of the gas distributor who is party to the franchise agreement;

(e) revoke the franchise and grant the franchise to another gas distributor and permit the new gas distributor to use the gas distribution system of the old gas distributor with compensation payable by the new gas distributor to be determined by proceedings under Part 2 of the Expropriation Act, agreement, or otherwise by law;

 

 

(f) amend the franchise agreement; or

 

(g) require any combination of paragraphs (a) to (f).

10(1) After January 31, 2000, no amendment to a franchise agreement is effective unless it is in writing, has been executed by the parties and has been approved by the Board.

10(2) After January 31, 2000, the Board may recommend an amendment to any franchise agreement entered into under section 7 to the Province and the gas distributor.

10(3) The Board shall not make an order under subsection (1) or (2) until after it has held a proceeding on notice, to be given in such manner and to such persons as it may direct, including the surety of any security provided under a franchise agreement.

 

10(4) The Board may give or refuse its approval or recommendation under this section, subject to such terms and conditions as it considers necessary in the public interest.

 

11(1) Where the term of a franchise agreement has expired or will expire within one year, the Board may renew the franchise agreement or extend its term for such a period of time and upon such terms and conditions as it considers necessary in the public interest.

11(2) The Board shall not make an order under subsection (1) until after it has held a proceeding and notice of that proceeding shall be given in such manner and to such persons, municipalities, and planning districts as it may direct.

 

11(3) Where the term of the franchise agreement has expired or is likely to expire before the Board completes the proceeding referred to in subsection (2), the Board may make such an order as may be necessary to continue the right until an order is made under subsection (1).

 

11(4) The Minister may assess a franchise renewal fee and require the gas distributor whose franchise is renewed to pay it.

12(1) Upon the commencement of this Act, all right, title, interest, authority, grant, franchise and power previously vested in Moncton Utility Gas and ICG Brunswick (1985) Ltd. to distribute gas to customers in all or any part of the Province is cancelled and terminated.

 

12(2) No compensation is payable by the Crown or by any person authorized under this Act or the former act to distribute gas for any right, title, interest, authority, grant or franchise or power cancelled and terminated under subsection (1).

 

12(3) Moncton Utility Gas remains subject to the provisions in Part 2, Part 9 and Part 10 of this Act.

 

13(1) An application for a single end use franchise made to the Board under subsection 5(1) shall be decided by the Board in a summary manner, subject to such terms and conditions as it considers necessary in the public interest.

13(2) The holder of a single end use franchise shall pay a franchise fee of fifty thousand dollars to the Minister of Finance on or before December 31st of the year in which the franchise is granted, and thereafter shall pay an annual franchise fee of fifty thousand dollars, adjusted annually by the latest change in the New Brunswick consumer price index, using 1999 as a base year.

 

14(1) A gas distribution system owned or operated by a gas distributor is deemed to be a public utility and is subject to the Public Utilities Act so far as it is consistent with this Act.

 

 

14(2) A gas distributor is deemed to be a common carrier of gas and shall act as a common carrier of gas.

15(1) A gas distributor shall distribute gas to any building along the line of any of its pipelines upon the request in writing of the owner, occupant or other person in charge of the building.

15(2) Upon application, the Board may order a gas distributor to distribute gas or provide any customer service or to cease to distribute gas or provide any customer service.

 

PART 2 – PIPELINE CONSTRUCTION
AND OPERATION

PERMITS AND LICENCES

16(1) Except as provided in this Act or the regulations, no gas distributor shall construct a pipeline or any part of a pipeline, or undertake any operations preparatory to constructing a pipeline, unless it holds a permit.

 

16(2) Despite subsection (1), but subject to the regulations, a person proposing to apply for a permit to construct a pipeline or any part thereof may

(a) enter upon any lands lying along the intended route to survey or examine only the surface of the land, or

 

(b) negotiate to acquire interests in lands that may be needed for the pipeline.

 

16(3) The Board shall decide any disagreement between a gas distributor and a municipality or planning district, or any official of a municipality or planning district, about whether the gas distributor must comply with a requirement of the standard construction regulation, a by-law or regulation under the Community Planning Act, or about whether a time limit in the standard construction regulation is appropriate in the circumstances.

 

16(4) The Board may exempt a gas distributor from any requirement of the Community Planning Act, any by-law or regulation made under it or of subsection 7(5) of the Municipalities Act, if in the Board’s opinion compliance with the requirement would

 

(a) prejudice the timely construction of the gas distributor’s pipeline;

(b) add costs to the pipeline that might make construction of the whole or part of it uneconomic; or

(c) for any other reason, not be necessary in the public interest.

17(1) A gas distributor shall obtain an opinion in writing from a professional engineer that the design, construction, installation, replacement, extension, reclassification or testing of a pipeline constructed or operated under this part has been carried out in accordance with this Act and the regulations.

17(2) A gas distributor that has a pipeline installed or tested shall obtain an opinion in writing from a person holding a certificate as a pipeline inspector or a professional engineer that the installation or testing has been carried out in accordance with this Act and the regulations.

17(3) A gas distributor that has a pipeline upgraded shall, before activating it, obtain an opinion in writing from a professional engineer that the pipeline has been upgraded in accordance with this Act and the regulations.

17(4) A gas distributor shall retain the written opinions obtained under subsections (1) to (3) at its head office in New Brunswick for the life of the pipeline and shall file a copy of each written opinion with the Board.

18(1) An application for a permit shall be made to the Board in accordance with the regulations.

 

18(2) An applicant shall also file copies of the application, and of the material required by the regulations, with the Minister, with the Ministers of Agriculture and Rural Development, Transportation, Environment, Fisheries and Aquaculture, and Municipalities and Housing and with the clerk or senior official of any municipality affected by the application.

 

18(3) When an application for a permit is filed, the Board may fix a procedure for deciding the application and shall receive representations from persons affected by the construction of the proposed pipeline in a manner that it shall determine.

 

18(4) Each minister and municipality referred to in subsection (2) is a party to the proceeding referred to in subsection (3) and may designate a person or counsel to act on his or her behalf in such proceeding as far as he or she considers appropriate.

19(1) The Board may order an applicant to publish a notice showing or describing the proposed route of the pipeline in such newspapers and in such form as the Board prescribes.

19(2) The cost of publishing a notice ordered under subsection (1) shall be paid by the applicant.

 

20 In considering an application, the Board shall take into account all matters that seem to it to be relevant and without limiting the generality of the foregoing, it may consider

(a) the location of the proposed pipeline and its effect upon the environment,

(b) the financial responsibility of the applicant,

(c) the existence of present and future markets for the pipeline, and

(d) such other matters as it considers relevant in the public interest.

21(1) The Board may grant a permit for a pipeline subject to terms and conditions that it considers necessary in the public interest, or it may refuse to grant a permit.

21(2) The Board may cancel a permit if the gas distributor fails to comply with any term or condition of the permit on notice to the distributor and after giving the distributor a fair opportunity to show cause why it should not do so.

 

22(1) When a gas distributor wishes to have any change made in a permit, either before it begins to build the pipeline or during construction, then unless the regulations provide otherwise it shall submit an application for amendment to the Board.

22(2) Such an application shall be made and dealt with by a procedure to be determined by the Board.

23(1) When a gas distributor wishes to extend, relocate, divert or otherwise change an existing pipeline, it shall submit an application to the Board.

23(2) An application under subsection (1) shall be made and dealt with by a procedure to be determined by the Board.

23(3) Subsection (1) does not apply to

(a) repairs or maintenance made in the course of operations,

(b) minor improvements to an existing installation, or

(c) changes made in an emergency.

 

23(4) Where changes are made to a pipeline in an emergency, the gas distributor shall forward particulars to the Board immediately in accordance with the regulations.

24 Subject to subsections 16(3) and 16(4), the enforcement provisions in sections 92 to 98 of the Community Planning Act apply to the standard construction regulation and it may be enforced in like manner with any necessary modifications.

 

25(1) A gas distributor shall not operate a pipeline unless it holds either a licence or a provisional licence granted by the Board under subsection (2).

 

25(2) After a pipeline has been tested to the Board’s satisfaction, the Board may grant a licence, or a provisional licence, upon such terms and conditions as it considers necessary.

25(3) The Board shall not grant a provisional licence for more than six months, but it may extend the period if in its opinion the circumstances warrant.

25(4) An application for a licence shall be made to the Board and shall be accompanied by the information required under the regulations.

26 Where application is made to amend a licence, the Board may

(a) amend the licence, or

(b) cancel the licence and grant a new one, subject to such terms and conditions as it considers necessary.

27(1) Without first obtaining an order from the Board granting leave, no gas distributor shall

 

(a) sell, lease or otherwise dispose of its gas distribution system as a whole or substantially as a whole;

(b) sell, lease or otherwise dispose of any part of a system described in paragraph (a) that is used or useful in serving the public; or

(c) amalgamate with any other corporation.

27(2) Without first obtaining an order granting leave from the Board, no person shall acquire, directly or indirectly, so many of any class of shares of a gas distributor as will, when taken together with shares already held, directly or indirectly, by that person either alone or together with one or more of its affiliates or associates, exceed in the aggregate 20 per cent of the outstanding shares of the gas distributor of that class.

27(3) This section does not apply to a mortgage or charge to secure any loan or indebtedness or to secure any bond, debenture or other evidence of indebtedness.

27(4) An application for leave under this section shall be made to the Board, which may grant or refuse leave.

27(5) An amalgamation agreement between corporations proposing to amalgamate is void if the Board refuses to grant leave under this section, even if it has been adopted in accordance with section 122 of the Business Corporations Act.

27(6) A certificate of amalgamation issued under section 124 of the Business Corporations Act is void if issued before the Board grants leave for the amalgamation.

28 No gas distributor shall acquire or hold a permit or licence unless it is a company authorized by the laws of the Province to carry on business in the Province.

29(1) The Board may cancel a licence or permit if the gas distributor fails to comply with any provision of this Act, on notice to the gas distributor and after giving it a fair opportunity to show cause why the Board should not do so.

 

29(2) When the Board has cancelled a licence or permit, no gas shall be transmitted by the pipeline until the Board has issued a new licence or permit.

 

 

29(3) Where a licence or permit has been cancelled under subsection (1), the Board may issue a new licence or permit when an application is made to it.

29(4) No licensed pipeline shall be used to transmit any substance but gas without the approval of the Board.

30(1) Except for repairs or maintenance in the ordinary course of operations, no gas distributor shall discontinue the operation of a pipeline without the approval of the Board.

 

30(2) If a gas distributor has ceased to operate a pipeline, then it shall not resume operation without the prior approval of the Board.

31 No permit or licence shall be issued to a gas distributor unless it is insured against any liability that it may incur in building or operating the pipeline by an insurance company licensed to do business in the Province, and in an amount approved by the Board.

32(1) Subject to section 43, a gas distributor authorized to construct or operate a pipeline under this Act has the right to do so on, across, over or under any land, stream, river, lake or other body of water and, subject to the standard construction regulation, on, over, or under any highway or road.

 

 

 

32(2) In the exercise of any right granted under subsection (1), the gas distributor and its agent shall take care to preserve a free and uninterrupted passage to and over the part of the highway or road affected.

 

33(1) Where it appears to the Board that in constructing or operating a pipeline or in undertaking a ground disturbance there has been or is a contravention of this Act, the regulations, a permit or licence or an order or direction of the Board, or that a method or practice employed or any equipment or installation at a pipeline or in a controlled area is improper, hazardous, inadequate or defective

 

 

(a) the Board may order that the construction or operation of the pipeline, or the ground disturbance, shall be suspended and shall not be resumed until

(i) the contravention ceases and this Act or the regulation, permit, licence or order or direction of the Board is complied with,

 

(ii) approved methods or practices are employed or adopted,

(iii) remedial measures are taken, or

 

(iv) proper, safe and adequate equipment is used;

(b) the Board may order the construction or operation of the pipeline, or the ground disturbance, suspended until further order; or

(c) the Board may initiate a proceeding.

33(2) Where the Board makes an order under subsection (1), it shall, as soon as possible, advise the gas distributor or person responsible for the ground disturbance in writing, setting out the reasons for its order.

33(3) Once the Board has cancelled or suspended a permit or licence, no construction shall proceed and no gas shall be transmitted or distributed in the pipeline until the Board has either reinstated the permit or licence or issued a new one, except construction that the Board authorizes to maintain the pipeline in a state permitting operations to be carried out in accordance with this Act.

 

 

34(1) Any person proposing to undertake or undertaking a ground disturbance shall, before commencing any work, operation or activity,

(a) take all precautions reasonably necessary

 

(i) to ascertain whether or not a pipeline or a pipeline authorized under the Pipe Line Act exists within

(A) the area in which he or she proposes to undertake or undertakes the ground disturbance and

(B) the distance, prescribed in the regulations, from the area referred to in clause (A);

(ii) to determine which gas distributor or person owns any pipeline in existence within the area or distance referred to in subparagraph (i), and

(b) notify the gas distributor or person referred to in subparagraph (a)(ii) of the nature of the proposed ground disturbance and the proposed schedule for undertaking it, in accordance with the regulations.

34(2) When requested by a person proposing to undertake or undertaking a ground disturbance, a permittee or licensee shall provide that person with any information about a pipeline in existence within the area or distance referred to in subparagraph (1)(a)(i) that is contained in its records and which that person requires in order to comply with subsection (1) and the regulations.

 

34(3) A gas distributor that may be or is affected by a ground disturbance shall provide the person proposing to undertake or undertaking the ground disturbance with any assistance that the person may reasonably require to enable that person to comply with this Act and the regulations.

 

35(1) Except in the ordinary course of making repairs or of maintenance, no pipeline or part thereof shall be taken up or removed without the consent of the Board and subject to such terms and conditions as it prescribes.

 

35(2) An application for the Board’s consent under subsection (1) shall be accompanied by the information required under the regulations.

 

35(3) When a pipeline or part of one is taken up or removed, the gas distributor shall immediately fill any resulting ditch or other opening.

 

35(4) When a pipeline or part of one is taken up or removed, the Board may cancel or amend the licence.

36(1) Without the authority of the Board, a gas distributor shall not construct a pipeline or part of one so as to interfere with the existing workings or extension of a mine or quarry or obstruct any opening to them.

36(2) If in constructing or operating a pipeline any damage occurs to a gate, fence, other private property, other pipeline or pipeline authorized under the Pipe Line Act, or to a public utility, the gas distributor shall immediately cause the damage to be repaired, unless an arrangement has otherwise been made with the owner.

 

37(1) No owner, lessee, licensee or occupier of mines or minerals lying under a pipeline, or within thirty-six metres, shall work the mines or minerals until it has obtained leave from the Board to do so.

 

 

37(2) When applying to the Board for leave to work mines or minerals, the applicant shall submit a plan and profile of both the affected part of the pipeline and the proposed mining works or plant that may affect it, and shall give all reasonable and necessary information and details of their extent and character.

 

 

37(3) The applicant shall serve a copy of the application on the gas distributor when or before the application is made.

37(4) The Board may grant the application upon such terms and conditions as it considers necessary for the protection and safety of the public and the pipeline, and it may order any such works executed, or measures taken, as under the circumstances appear to it best adapted to remove or diminish any danger arising, or likely to arise, from mining operations.

 

38 The Board may at any time require a gas distributor to test a pipeline and may prescribe how the tests are to be made.

39(1) Where a pipeline breaks, the gas distributor shall as soon as possible report the location of the break, the approximate amount of gas that has escaped and whether there has been any bodily injury or property damage to the Board, the Ministers of Agriculture and Rural Development, Transportation, Environment, Fisheries and Aquaculture, and Municipalities and Housing and any municipality in which the break has occurred.

 

39(2) When a break in a pipeline has been repaired, the gas distributor shall within forty-eight hours make a report in writing to the Board, showing

(a) whether there has been any bodily injury or property damage,

(b) the date and time when the break occurred,

 

(c) the approximate amount of gas lost,

 

(d) the conditions that caused or contributed to the break, if they are known, and

(e) the method by which the break was repaired.

39(3) In this section "break" means a rupture in any part of a pipeline not subject to inspection under the Boiler and Pressure Vessel Act.

 

40(1) The Board may, on any terms and conditions it considers necessary in the public interest, order a gas distributor

(a) to alter or relocate any part of its pipeline,

 

(b) to install additional or other equipment on its pipeline, or

(c) to erect permanent fencing on the right of way or provide any other protective measures within an area that the Board considers necessary.

40(2) Where the Board directs the alteration or relocation of the pipeline, the installation of additional or other equipment on the pipeline, the erection of fences or the provision of other protective measures within an area, it may order by whom and to whom payment of the cost of the work and material, or either, shall be made.

 

40(3) If a dispute arises over the amount to be paid pursuant to an order under subsection (2), the Board may decide it in a summary manner.

 

41(1) No pipeline shall be constructed under a building that is or can be used as a public building, residence, office, warehouse or factory without the approval of the Board, which may make its approval subject to such terms and conditions as it considers necessary in the public interest.

 

41(2) Subsection (1) does not apply where the pipeline transmits gas delivered for use in the building.

42(1) In making any inspection, investigation or test pertaining to a pipeline or to the proposed route of a pipeline, a person appointed by the Board may enter upon any lands in the Province and into any building, whoever owns or occupies them, between the hours ordered by the Board.

 

42(2) Gas distributors shall give the Board’s appointees such assistance and supply such information as they reasonably request.

 

43(1) Where a gas distributor requires an interest in land for the purposes of a pipeline, it may acquire the interest

(a) by negotiation with the owner, or

(b) by proceeding under section 7 of the Expropriation Act.

43(2) In this section "interest in land" does not include an interest in mines, minerals, oil, gas, coal or bituminous shale or an underground storage facility.

 

44 In exercising a power granted by this Act, a gas distributor shall do as little damage as possible, and shall make full compensation for all damage caused or arising.

 

45 The Boiler and Pressure Vessel Act and the regulations made under it apply to the manufacture, installation and inspection of any pressure vessel and any steam or refrigerating or other pressure plant forming part of a pipeline.

 

46 Any person, including a gas distributor, its agents or servants or anyone acting on its behalf, shall be liable to the owner or occupier for all damages caused to land and property while carrying out activities authorized by this Act.

 

PART 3 – GAS STORAGE

47 No person shall inject gas for storage into an underground storage facility unless he or she is a holder of an underground storage lease issued under the Underground Storage Act.

 

48(1) Subject to any terms relating to the physical integrity of the underground storage facility that it considers necessary, the Board may by order authorize a person to inject gas into an underground storage facility, store gas in it and remove gas from it, and to enter into and upon the land in the area and use the land for that purpose.

 

48(2) Subject to any pertinent agreement, the persons authorized by orders under subsection (1)

 

(a) shall make to the owners of any gas or oil rights or of any right to store gas in the area just and equitable compensation for the gas or oil rights or the right to store gas, and

(b) shall make to the owner of any land in the area just and equitable compensation for any damage necessarily resulting from the exercise of the authority given by the order.

 

48(3) No action or other proceeding lies for compensation payable under this section and failing agreement, the amount shall be determined by the Court of Queen’s Bench under Part 2 of the Expropriation Act.

49(1) Upon application by a gas distributor, the Board may direct a person having an underground storage facility that is not in full use to provide all or part of the facility to the applicant, upon such terms and conditions as the Board may determine.

 

49(2) No person shall enter into an agreement or renew an agreement with any other person for the storage of gas unless the Board has approved

(a) the parties to the agreement or renewal,

 

(b) the period for which the agreement or renewal is to operate, and

(c) the storage that is the subject of the agreement or renewal.

50(1) The Minister shall refer to the Board every application for granting a licence under the Oil and Natural Gas Act relating to a well in an underground storage facility, and the Board shall report to the Minister on it.

50(2) If the applicant does not have authority to store gas in the underground storage facility or, in the Board’s opinion, the special circumstances of the case require a hearing, then the Board may hold a hearing before reporting to the Minister.

 

50(3) After submitting any report made under subsection (1) to the Minister, the Board shall send a copy to each of the parties, and that report shall be deemed to be an order of the Board.

 

50(4) The Minister shall grant or refuse to grant the licence under the Oil and Natural Gas Act in accordance with the report.

PART 4 – REGULATION OF
GAS DISTRIBUTORS AND
CUSTOMER SERVICES

51(1) No gas distributor shall sell gas except as a supplier of last resort but; subject to section 58, an associate or affiliate of a gas distributor may sell gas.

51(2) A gas distributor shall either be the supplier of last resort or arrange for a supplier of last resort.

52(1) No gas distributor shall charge for its distribution or customer services except in accordance with an order of the Board.

 

52(2) The Board is not bound by the terms of any contract between a gas distributor and a customer.

 

52(3) The Board may make orders approving or fixing just and reasonable rates and tariffs for the distribution of gas by gas distributors and for customer services, including supplier of last resort service.

 

52(4) The Board may, if not satisfied that the rates or tariffs applied for are just and reasonable, fix such other rates and tariffs as it finds to be just and reasonable.

52(5) In approving or fixing just and reasonable rates and tariffs, the Board may adopt any method or technique that it considers appropriate, including an alternative form of regulation.

 

52(6) An order under this section may include conditions, classifications or practices applicable to the distribution of gas or provision of customer services, including rules for calculating rates.

 

53(1) The Board may require a gas distributor to publish separate rates and tariffs for each customer service according to its associated unit of measure.

 

53(2) The Board may, by order, alter an associated unit of measure, if it considers that another associated unit of measure better enables customers to compare customer services offered by a gas distributor with those offered by others.

 

54 In an application regarding rates and tariffs for gas distribution and customer services, the burden of proof is on the gas distributor.

 

55(1) A gas distributor shall file with the Board schedules, which shall be open to public inspection, showing all rates and tariffs that the Board has approved for its gas distribution and for the customer services it offers or proposes to offer within the Province.

55(2) A gas distributor shall maintain at convenient locations in the Province, keep available for public inspection and make available to a member of the public who requests one, a copy of all rates and tariffs that the Board has approved for its gas distribution and for the customer services it offers or proposes to offer within the Province.

 

56 A gas distributor shall make no change in any of its rates or tariffs except with the approval of the Board, after a proceeding determined by the Board, and any change shall be plainly indicated upon new schedules to be filed before they are to take effect but, upon application by a gas distributor, the Board may prescribe a time within which a reduction may be made, or within which additions may be made, to such schedules regarding customer services for which no rates or charges are there provided.

 

 

57(1) A gas distributor shall furnish safe, adequate and proper gas delivery service and facilities.

 

57(2) Before delivering gas to any building, a gas distributor or its agent shall inspect the installations there and satisfy itself that they comply with all applicable statutes, by-laws and regulations and are tight and safe to use.

 

PART 5 – GAS MARKETERS

58(1) No person shall carry on business as a gas marketer without holding a certificate.

 

58(2) No gas marketer shall carry on business in a name other than the one in which it is certified unless authorized to do so in the certificate.

 

59 The Board may make orders regulating the price of gas, or of a customer service charged by a gas marketer, when it finds that the price is not subject to effective competition sufficient to protect customers’ interests.

60 A gas marketing contract between a low volume consumer and a person who is not in compliance with section 58 may not be enforced against that consumer.

61(1) The Board may issue certificates.

 

61(2) A certificate is subject to such terms and conditions as the Board considers necessary in the public interest.

62 An applicant for a certificate under this Part is entitled to have a certificate issued or renewed unless

(a) having regard to its financial position, it cannot reasonably be expected to be financially responsible in the conduct of business,

 

(b) its past conduct affords reasonable grounds for belief that it will not carry on business according to law and with integrity and honesty,

(c) the past conduct of an officer, director or associate affords reasonable grounds for belief that it will not carry on business according to law or with integrity and honesty,

 

(d) it is carrying on activities that are, or will be, if it is certified, in contravention of this Act or of the regulations or the rules made under Part 6, or

(e) it fails to satisfy such other terms and conditions as the Board may impose.

63(1) The Board may refuse to issue a certificate to an applicant if, in its opinion, the applicant is not entitled to a certificate under section 62.

63(2) The Board may refuse to renew a certificate, or may suspend or revoke one, for any reason that would disentitle an applicant to a certificate under section 62 or if the certificate holder is in breach of a condition of the certificate.

 

64(1) If the Board proposes to refuse to issue or renew a certificate, or to suspend or revoke one, it shall serve notice of the proposal on the applicant or certificate holder, together with written reasons.

64(2) The notice shall state that the applicant or certificate holder is entitled to show cause why a certificate should be issued or renewed by the Board if, within fifteen days after service of the notice under subsection (1), it mails or delivers notice in writing to the Board requesting a proceeding, and if it does so, the Board may initiate a proceeding.

64(3) If an applicant or certificate holder does not request a proceeding by the Board in accordance with subsection (2), the Board may carry out the proposal stated in the notice under subsection (1).

64(4) If an applicant or certificate holder requests a proceeding by the Board in accordance with subsection (2), the Board may hold the proceeding and,

(a) when the proposal is to refuse to issue or renew a certificate, issue or refuse the certificate or renew or refuse to renew the certificate, or

 

(b) when the proposal is to suspend or revoke a certificate, suspend or revoke or not suspend or revoke the certificate.

64(5) The Board may attach such conditions to an order made under subsections (2), (3) and (4) as it considers necessary in the public interest.

 

64(6) The applicant or certificate holder who has requested the proceeding and such other persons as the Board may specify are parties to the proceeding before the Board under this section.

64(7) Despite subsection (1), the Board may cancel a certificate when the holder requests it to do so in writing subject to any terms and conditions the Board may impose in order to protect the interest of the customers of the certificate holder or of the public.

65 A further application for a certificate may be made upon new or other evidence or where it is clear that material circumstances have changed.

 

PART 6 – RULES OF CONDUCT

66(1) The Board may make rules

(a) governing the conduct of a gas distributor as that relates to its affiliates or associates;

 

(b) governing the conduct of a person holding a certificate;

(c) establishing conditions of access to gas distribution and customer services provided by a gas distributor or by persons other than a local gas producer;

 

(d) requiring and providing for the making of returns, statements or reports by a gas distributor or gas marketer on gas distribution and provision of customer services, in such form and containing such matters and verified in such a manner as the rule may provide; and

 

(e) respecting any other matter prescribed.

66(2) A rule authorized by this section may incorporate by reference, in whole or in part, any standard, procedure or guideline and may require compliance with any standard, procedure or guideline adopted.

66(3) A rule may be general or particular in its application and may be limited in time or place or both.

66(4) A rule may provide for an exemption.

 

66(5) An exemption may be made in whole or in part and may be made subject to conditions or restrictions.

66(6) The Regulations Act does not apply to the rules made by the Board.

67(1) The Board shall ensure that notice of every rule that it proposes to make under section 66 is given in such a manner and to such persons as it may direct.

67(2) Upon giving notice under subsection (1), the Board shall give interested persons a reasonable opportunity to make written representations about the proposed rule within such a reasonable period as it considers appropriate.

67(3) Notice under subsection (1) is not required if the proposal is an amendment that does not materially change an existing rule.

 

67(4) After considering the written representations referred to in subsection (2), the Board may

(a) make a proposed rule final, or

 

(b) make a proposed rule final in a modified form.

68(1) A rule comes into force on the day there specified.

68(2) Every gas distributor and gas marketer shall be deemed to have had actual notice of a rule and its contents on the day it comes into force.

 

68(3) The Board shall publish every rule that comes into force in The Royal Gazette as soon after it is made as practicable.

68(4) Publication of a rule in The Royal Gazette

 

(a) is, in the absence of evidence to the contrary, proof of its text and of its making; and

(b) shall be deemed to be notice of its contents to every person subject to it or affected by it.

68(5) If a rule is published in The Royal Gazette, judicial notice shall be taken of it, of its content and of its publication.

69 A gas distributor shall

(a) apply the terms and conditions of its tariff and other tariff provisions related to the distribution of gas and provision of customer services without unjust discrimination and without regard to the supplier of gas;

 

(b) process all similar requests for service in the same manner for all gas marketers in a reasonably similar time period;

 

(c) make no unjust discrimination in its rates or tariffs or otherwise among gas marketers or among similarly situated customers in matters relating to the movement or delivery of gas on its facilities or the administration of contracts, including the provision of customer services;

 

 

(d) apply, without unjust discrimination, the same tariff relating to discounts, rebates, fee waivers, or penalty waivers to all similarly situated customers, without regard to their gas marketer;

 

(e) make no unjust discrimination in applying any discretionary right under a tariff to similarly situated customers, but serve them without regard to their gas marketer;

(f) make no unjust discrimination in offering discounts, rebates, fee waivers, or penalty waivers to similarly situated customers, but serve them without regard to their gas marketer and announce those offers by making an appropriate posting on its electronic bulletin board;

(g) make no unjust discrimination among gas marketers in scheduling or allocating capacity at a city gate station;

 

(h) make no unjust discrimination in matters relating to allocation, assignment, release, or other transfer of the gas distributor’s capacity rights on a transmission line or a pipeline regulated by the United States Federal Energy Regulatory Commission;

(i) not represent that any advantage accrues to customers or others in the use of the services of a gas distributor because that customer or others deal with a gas marketer associated with the gas distributor;

(j) provide no preferential sales leads to any gas marketer, and refrain from giving any appearance that the gas distributor speaks on behalf of any associated gas marketer;

 

(k) allow no joint solicitation calls on customers by personnel of the gas distributor and any gas marketer, unless a customer specifically requests a joint meeting in advance in writing;

 

 

(l) at any given time, disclose information provided to any gas marketer about the marketing or sale of gas to customers or identifying potential customers or about the delivery of gas to or on its system to all gas marketers on the system, by posting the information on its electronic bulletin board;

 

 

(m) not knowingly disclose to any gas marketer any confidential information obtained in connection with providing services to any other gas marketer or customer, a potential gas marketer or customer, any agent of such a customer or potential gas marketer;

 

 

 

(n) ensure that employees of the gas distributor having direct responsibility for the day to day operations of its operations, including employees involved in

(i) receiving requests for distribution service or customer services from customers;

 

(ii) scheduling gas deliveries on the gas distributor’s system;

(iii) making gas scheduling or allocation decisions; or

 

(iv) purchasing capacity on a transmission line or a pipeline regulated by the United States Federal Energy Regulatory Commission;

are not shared with any gas marketer who is an associate or affiliate, but are physically separated from it and function independently of it;

 

(o) file with the Board procedures that will enable gas marketers and the Board to determine how the gas distributor is complying with the standards set forth in this section;

 

(p) maintain its books of account and records separately from those of any gas marketer who is an associate or affiliate;

 

(q) respond in writing to the Board within ten days to any complaint submitted to the gas distributor in writing that relates to compliance with the standards set forth in this section; and

(r) not allow any associated or affiliated gas marketer to use its name or a material part of its name except as approved by the Board under subsection 58(2).

 

PART 7 – POWERS OF THE BOARD
UNDER THIS ACT

70(1) The Board shall have an official seal, which shall be judicially noticed.

70(2) Concerning the attendance, swearing and examination of witnesses, the production and inspection of documents, the enforcement of its orders, the entry on and inspection of property and other matters necessary or proper for the due exercise of its jurisdiction, the Board has all such powers, rights and privileges as are vested in the Court of Queen’s Bench.

 

71(1) The Board shall supervise the activities of gas distributors, gas marketers and customers and other persons subject to this Act and has full jurisdiction to inquire into, hear and determine any matter

 

(a) where it appears to the Board that any person has failed to do any act, matter or thing required to be done by this Act or by any regulation, rule, certificate, licence or permit, or any order or direction made by the Board, or that any person has done or is doing any act, matter or thing contrary to or in contravention of this Act, or any regulation, rule, certificate, licence, permit, order or direction; or

(b) where it appears to the Board that the circumstances may require it, in the public interest, to make any order or give any direction, leave or approval that by law it is authorized to make or give, or concerning any matter, act or thing that by this Act or any regulation, rule, certificate, licence, permit, order or direction is prohibited or required to be done.

71(2) The Board may inquire into any accident involving a pipeline or other work whose construction or operation it regulates, and may, at the conclusion of the inquiry, make

(a) findings about the cause of the accident or factors contributing to it,

(b) recommendations for preventing future similar accidents, or

 

(c) any decision or order that the Board can make.

71(3) For the purposes of this Act, the Board has full jurisdiction to hear and determine all matters, whether of law or of fact.

71(4) The Board may

(a) order and require any person to do, forthwith, or within or at any specified time and in any manner it may determine, any act, matter or thing that the person is or may be required to do under this Act, or any regulation, rule, certificate, licence or permit, or any order or direction made or given under this Act; and

 

(b) forbid the doing or continuing of any act, matter or thing that is contrary to this Act or any regulation, rule, certificate, licence, permit, order or direction.

71(5) The Board may of its own motion inquire into, hear and determine any matter or thing that under this Act it may inquire into, hear and determine that does not expressly require an application before the Board.

 

72 The Board may inquire into, hear or determine any application, matter or thing that under this Act it may inquire into, hear or determine, and in doing so the Board

(a) is the master of its own procedure and regarding any matter may give directions about process and procedure that it considers appropriate in the circumstances, including a direction for an electronic hearing, a written hearing, an oral hearing or a pre-hearing conference;

(b) may request from anyone, and require anyone to prepare, evidence or studies relevant and incidental to the matters over which it has jurisdiction under this Act;

 

(c) is not required to hold an oral hearing unless it considers it necessary to do so in order to act in a procedurally fair manner;

(d) shall ensure procedural fairness to all affected persons;

(e) is not bound by any common law rule of evidence except that the evidence it considers shall be relevant, material and trustworthy as it determines; or

 

(f) may make orders allowing evidence to be taken outside the Province and used in its proceedings.

73 No commissioner or employee of the Board shall be required to give testimony in any civil action to which the Board is not a party, concerning information obtained in carrying out his or her official duties to the Board.

 

74(1) The Board may appoint counsel, experts, or inspectors to assist it in any matter within its jurisdiction under this Act or to institute or attend proceedings before any other tribunal or authority, and the Board may order by whom the fees and expenses of the persons so appointed shall be paid.

 

 

 

74(2) Where the Board appoints any counsel, expert or inspector under subsection (1) to perform any service under this Act, that person shall be paid by the Board, and shall be reimbursed for expenses, at rates fixed by the Board.

 

75(1) Upon any application to it, the Board may make an order granting the whole or part only of the application, make a conditional order, or grant further or other relief besides or instead of that applied for, as fully and in all respects as if the application had been for such partial, further or other relief.

 

 

75(2) The Board may require a re-hearing of an application before making any decision on it.

 

75(3) The Board may review, rescind or amend any decision or order it has made.

 

76 If the special circumstances of any case so require, the Board may make an interim ex parte order, but it shall make no ex parte order for any longer time than it considers necessary to enable the matter to be determined by means of its normal procedures.

 

77 Instead of making an order final in the first instance, the Board may make an interim order and give further directions for completing the matter before it.

78 Substantial compliance with the requirements of this Act is sufficient to give effect to all orders, rules or decisions of the Board, and they are not invalid for any technical or non-material defect.

 

79 Every order of the Board comes into effect on the date it is made unless the order states otherwise and an appeal to the Court under section 89 does not stay its operation, unless a judge of the Court orders otherwise; but the Board itself may suspend the operation of the appealed order until the Court has rendered its decision.

 

80(1) A gas distributor to whom the Board makes a request for documents or information of any kind shall furnish the required information to the Board.

80(2) The Minister defined in section 1 and any other minister, Service New Brunswick, a Crown corporation or other agency of the Province shall furnish the Board with such certificates and certified copies of documents as it may in writing require, without charge, and the Board may at any time search in the public records of Service New Brunswick without charge.

 

81(1) Where a document purports to be a copy of any rule, order, direction, decision or report made or given by the Board or any of its officers, it shall be received in evidence as prima facie proof of the original document.

 

81(2) Any document purporting to be certified by the Board secretary as a copy of any document deposited with the Board, or of any extract of a Board document, shall be received in evidence as prima facie proof that the original was so deposited, that it was received, signed, certified, attested or executed as it purports to be from the certified copy.

81(3) A copy of an order, rule or other document on record with the Board, purporting to be certified by the secretary of the Board, shall be received in evidence as prima facie proof of the document.

 

82(1) Where any person without lawful excuse,

 

(a) on being duly summoned as a witness at a hearing makes default in attending at the hearing; or

(b) being in attendance as a witness at an oral hearing or otherwise participating as a witness at an electronic hearing, refuses to take an oath or to make an affirmation legally required by the Board to be taken or made, or to produce any document or thing in his or her power or control legally required by the Board to be produced by him or her or to answer any question to which the Board may legally require an answer; or

 

(c) does any other thing that would, if the Board had been a court of law having power to commit for contempt, have been contempt of that court,

the Board may, of its own motion or on the motion of a party to the proceeding, state a case to the Court of Queen’s Bench setting out the facts, and that court may then inquire into the matter and, after hearing any witnesses who may be produced against or on behalf of that person and after hearing any statement that may be offered in defence, punish or take steps for the punishment of that person in like manner as if he or she had been guilty of contempt of the court.

82(2) Subsection (1) also applies to a person who,

(a) having objected to a hearing being held as a written hearing, fails without lawful excuse to participate in an oral or electronic hearing of the matter, or

(b) being a party, fails without lawful excuse to attend a pre-hearing conference when so directed by the Board.

 

83 Subject to the prior approval of the Minister and any terms or conditions that he or she may specify, the Board or any commissioner or commissioners appointed by the chairman of the Board may participate in joint proceedings with authorities constituted under other laws of the Province or under the laws of other jurisdictions to supervise public utilities.

 

84(1) Where the chairman of the Board so directs, any proceeding required to be held under this Act may be conducted as a joint proceeding.

84(2) Subject to any terms or conditions that the Minister may specify, where a proceeding required to be held under this Act is conducted as a joint proceeding, the commissioner or commissioners of the Board participating in the joint proceeding shall, notwithstanding any other provision of this Act, be deemed to be the Board and to have all the authority, powers and immunities of the Board with respect to all things related to the application or matter being considered at the proceeding.

85(1) The Board may forbear, in whole or in part and conditionally or unconditionally, from the exercise of any power or the performance of any duty of its own making, where the Board finds as a question of fact that forbearance would be consistent with the purpose of this Act.

85(2) Where the Board finds as a question of fact that the sale of gas or a customer service is or will be subject to effective competition sufficient to protect customers’ interests, it shall make a determination to forbear, to the extent it considers appropriate, conditionally or unconditionally, from regulating the rates, price and other contractual provisions of that service or class of service.

 

85(3) If the Board does forbear from regulation, it may later resume a greater degree of regulation if it considers that its level of forbearance is no longer warranted.

86(1) Except as otherwise provided in this Act, the costs of any proceeding before the Board are in the discretion of the Board, and in any case may be fixed by the Board or may be taxed.

 

86(2) The Board may order by whom and to whom any costs are to be paid, and by whom they are to be assessed and the Board or the person assessing the costs is not bound by the rules applicable to an award of costs by a court in litigation.

 

 

87(1) The annual expenses of the Board incurred or to be incurred by it under this Act in relation to gas distributors and gas marketers, without restricting the generality of the foregoing, include the salaries and travelling expenses of the commissioners and secretary; the payment of referees, stenographers, experts, and witnesses; office rent; unforeseen and contingent expenses; and all other expenses of the Board for the then current year ending on the thirty-first day of March next ensuing; and those expenses, together with any sum needed to make up any arrearages or deficiency in the assessment for the preceding year, or their collection, shall be borne by the gas distributors and gas marketers.

 

 

 

87(2) The Board shall

(a) determine the amount to be assessed for both annual expenses and start up costs, having regard to the amount required for the previous year, and

(b) categorize the amount to be assessed as direct expenses, common expenses or start up costs.

87(3) The Board shall

(a) after the first day of December of the year before the commencement of the fiscal year in respect of which the expenses are determined, assess up to one-half of the amount determined under paragraph (2)(a), and

 

(b) after the first day of April of the fiscal year in respect of which the expenses are determined, assess the remaining amount determined under paragraph (2)(a).

87(4) The Board shall assess each gas distributor and gas marketer

 

(a) its direct expenses, and

(b) its share of the common expenses, which shall be determined according to the proportion the gross earnings of that gas distributor or gas marketer bears to the aggregate of the gross earnings of all gas distributors or gas marketers to which this Act applies,

 

and the secretary shall notify each gas distributor and gas marketer by registered mail of the amount so assessed upon it.

 

87(5) The Board may recover its start up costs by assessment from gas distributors and gas marketers over the period that it shall determine, and shall remit them to the Minister of Finance.

 

87(6) The secretary of the Board shall notify each gas distributor and gas marketer by registered mail of the amount assessed upon it under subsection (5).

 

87(7) The amounts assessed under subsections (4) and (5) shall be paid to the Board within fifteen days after the posting of the notice referred to in subsection (6); and in default of payment, the chairman may transmit to a clerk of the Court of Queen’s Bench a duly certified copy of the notice and, on receipt of that certified copy, the clerk shall issue execution against the gas distributor or gas marketer so in default, addressed to the sheriff for the judicial district in which the head office or place of business of the gas distributor or gas marketer is situate, directing the sheriff to levy of the amount specified in the notice, together with the costs of execution, of the goods and chattels, lands and tenements of that gas distributor or gas marketer.

 

87(8) Every execution issued under the provisions of this Act shall be made returnable at any regular meeting of the Board within one year from the day of its issue and shall be in the same form, with the necessary variations, as an order for seizure and sale issued out of the Court of Queen’s Bench.

88(1) No commissioner or employee of the Board is personally liable for anything done by the Board or by him or her in carrying out his or her duty, and each has the same protection and privileges as are conferred upon commissioners or employees under the Inquiries Act for any act done or omitted in the execution of his or her duty.

 

 

88(2) No commissioner or employee of the Board shall be directly or indirectly employed by or interested in a gas distributor, marketer, or holder of a single end use franchise or interested in a share, stock, bond, mortgage, security or contract of a gas distributor, marketer, or holder of a single end use franchise and, where a commissioner or employee of the Board voluntarily becomes so interested, the commissioner’s or employee’s office becomes vacant or, where the commissioner or employee becomes interested otherwise than voluntarily, the commissioner or employee shall, within a reasonable time, dispose of the interest.

 

 

88(3) Where a commissioner or employee of the Board fails to dispose of an interest as required by subsection (2), the Lieutenant-Governor in Council may declare the office of the commissioner or employee vacant.

88(4) No commissioner or employee of the Board is disqualified by reason only of being a consumer of gas.

89(1) An appeal lies from a final order or decision of the Board to the Court in accordance with the New Brunswick Rules of Court under the Judicature Act upon a question

 

(a) involving the jurisdiction of the Board under this Act or another Act,

 

(b) of law, or

(c) of procedural fairness,

but no appeal lies from any finding that is primarily a finding of fact by the Board.

 

89(2) The Board may be a party to an appeal, may appear by counsel, and may in argument fully defend the correctness of its decision in an appeal.

 

89(3) Neither the Board nor any commissioner or employee is in any case liable to costs by reason of, or in respect of, an appeal or application under this Act.

 

PART 8 – GAS PRIORITIES
AND ALLOCATION

90 The purpose of this Part is to provide for the fair allocation of gas where there is an existing or impending shortage of gas.

91(1) If the Board approves an allocation plan governing a gas distributor or gas marketer, that distributor or gas marketer shall supply gas only in accordance with that allocation plan.

 

91(2) Every gas distributor and gas marketer shall file with the Board, at such times as the Board may prescribe,

 

(a) an estimate of how much gas it will have available to supply its customers’ gas requirements for such periods of time as may be prescribed by regulation; and

(b) its proposed plan for allocating that gas, referred to in paragraph (a).

91(3) The Board shall consider the proposed allocation plan filed by a gas distributor or gas marketer and shall by order approve the plan with or without modifications or additions as it shall determine.

91(4) The Board may by order amend an approved allocation plan.

92 The Board may direct a gas distributor or gas marketer to make available to another gas distributor or gas marketer such amount of gas, or any class thereof, and by such means, including sale, loan or otherwise, and on such conditions, including compensation, and to be used by the receiving gas distributor or gas marketer in such manner, as the Board may determine.

 

 

 

93(1) Every gas distributor or gas marketer affected by a regulation, an order of the Board or an allocation plan approved under this Part, and every customer affected by an order of the Board, shall comply with it in accordance with its terms, despite anything in any contract between a gas distributor or gas marketer and a customer.

 

 

93(2) No action shall be brought against a gas distributor or gas marketer, nor shall a gas distributor or gas marketer be liable, for any act or omission, in respect of supply of gas or failure to supply gas, insofar as that act or omission is authorized, permitted or required by this Part, the regulations, an order of the Board or an allocation plan approved by the Board under this Part.

 

 

 

 

94 Every order made under this Part takes effect at the time there prescribed and its operation is not suspended by an appeal to the Court under section 89.

PART 9 – REGULATIONS

95(1) The Lieutenant-Governor in Council may make regulations under this Act

 

(a) prescribing conditions under which the holder of a permit or licence under this Act, or a person proposing to construct a pipeline, may enter on land belonging to another person without the agreement of that other person;

 

 

(b) prescribing the distance or distances from a pipeline or category of pipeline that establishes the boundary of the controlled area for that pipeline or category of pipeline;

(c) declaring any specific work, operation or activity that results in a disturbance of the earth not to be a ground disturbance within the meaning of this Act;

(d) respecting matters preparatory to or in connection with any ground disturbance;

(e) prescribing the distance from the area of a ground disturbance within which the duties and responsibilities apply;

(f) fixing the method of metering the gas in any pipeline or gas distribution system;

 

(g) fixing the number of meters, governors and control valves, and providing for their installation;

(h) providing for the analysis and testing of gas;

(i) specifying the methods of making any tests, analyses, surveys or logs and of obtaining other information, and governing the submission of reports and information to the Minister;

 

(j) specifying the maximum pressure to which any pipeline may be subjected;

(k) prescribing a schedule of fees for applications for permits, provisional licences and licences, and for amendments to them, and for any other applications and for orders and any other things made, required or done under this Act;

(l) prescribing the terms and conditions on which a person may enter lands under subsection 16(2);

(m) exempting any person or class of persons from any provision of the regulations made under this Act;

(n) governing the construction of pipelines in municipalities either in or outside of a planning district under the Community Planning Act and in unincorporated areas; requiring the approval of a development officer appointed under the Community Planning Act or an agreement under another act for such construction; requiring financial security and the payment of fees; and, defining the rights, immunities and liabilities of persons in respect of pipeline construction;

 

 

(o) specifying matters about which the Board may make rules under subsection 66(1);

 

(p) governing other matters relating to this Act as will carry out its intent and facilitate its administration; and

(q) adopting by reference in whole or in part with such changes as the Lieutenant-Governor in Council considers necessary any regulation, code, standard, guideline, procedure or rule in relation to pipelines made under an act of the Parliament of Canada or of another province.

95(2) A regulation under this section may be general or particular in its application.

 

96(1) The Board may make regulations under this Act

(a) respecting the manner in which the accounts of a gas distributor shall be kept;

(b) respecting the classes of property for which depreciation charges may properly be included under operating expenses in the accounts and the accounting method or methods that may be used in computing and charging depreciation for each of the classes of property;

(c) respecting a uniform system of accounts applicable to any class of gas distributor;

(d) requiring a gas distributor authorized under Part 2 to construct or operate a pipeline to keep such records, books of account and other documents in such form as may be prescribed by the regulations and to make them available to the Board, for inspection by it or a person authorized by it, at a place of business in the Province; and to submit to the Board, at such times and in such form as may be so prescribed, returns and information respecting capital, revenues, expenses and other matters so prescribed and deemed by the Board to be matters that it ought to consider in carrying out its powers and duties under this Act in relation to those gas distributors and other persons;

 

(e) prescribing the qualifications for and the information to file in connection with and the manner of applying for and granting franchises, licences, permits, certificates and amendments thereto, the forms used for and the information supplied with such applications, and the manner of filing plans and specifications;

 

(f) prescribing a form of agreement under which an interest in land may be acquired by negotiation;

(g) identifying the persons to be served with notice of application for a permit, licence, certificate or other authorization under this Act and specifying the form and method of service of the notice;

 

(h) governing the form of contract that a gas distributor may enter into with the various classes of customers;

(i) defining the meaning of "associated unit of measure" from time to time;

(j) prescribing the information that is to be included in or is to accompany any application under this Act or the regulations;

(k) requiring and prescribing tests and surveys at any time;

(l) requiring information obtained by tests or surveys to be submitted to the Board;

 

(m) governing the making of reports and the authority or person to whom they are to be made;

(n) concerning when and to whom information contained in records, reports and information submitted to or acquired by the Board under this Act may be made available;

 

 

(o) providing for detailed designs, plans, programs, profiles, risk assessments and other information about the construction, operation or maintenance of pipelines to be submitted to the Board;

(p) providing for the inspection of pipelines during and after their construction, and for the cost of any inspection, and specifying who shall pay the cost;

(q) providing for the reconstruction or removal of pipelines or works that, through deterioration or otherwise, have become, or in the opinion of the Board may become, a danger or menace to life or property;

(r) requiring the upgrading of pipelines or portions of pipelines and respecting the standards of upgrading;

(s) regarding equipment, material and installation that may be used in any pipeline or in any works, fittings, machinery or plant connected with any pipeline;

 

(t) governing safety measures for protecting life and property during and after the construction or installation of pipelines and during their operation;

(u) providing for the marking of pipelines with conspicuous signs in the official languages of the Province;

(v) governing the design, construction, testing, operation, maintenance, discontinuance and resumption of pipelines, including specifications and standards;

 

(w) governing the abandonment and the removal of pipelines;

(x) governing applications for and operation of underground storage facilities for gas;

 

(y) prescribing the conditions that may be imposed in certificates;

(z) prescribing different conditions for different certificates or classes of certificates;

 

(aa) prescribing the form of security which the Board may require an applicant for a certificate to file;

(bb) prescribing a system or systems of priorities for gas distributors to follow in supplying gas to customers, subject to any order of the Board and any allocation plan that it approves;

 

(cc) specifying principles, criteria or factors that gas distributors and gas marketers are to employ in formulating and implementing allocation plans;

 

(dd) prescribing additional information and material to be contained in an allocation plan, or to be supplied in support of the plan;

 

(ee) prescribing the procedures for notifying customers and classes of customers affected by a proposed allocation plan and for inspecting the plan;

(ff) prescribing the procedures that gas distributors and gas marketers are to follow in implementing approved allocation plans;

 

(gg) on how notice of allocation plans, either proposed or approved, shall be given to the public;

(hh) respecting any other matter necessary or advisable to provide for situations in which the supply of gas available for use in the Province is not sufficient to supply all the requirements of gas consumers, so as to carry out effectively the intent and purpose of Part 8;

(ii) respecting the content of reports on emergencies;

(jj) respecting a scale for the assessment of costs in proceedings before the Board;

 

(kk) respecting practice and procedure before the Board in connection with matters under this Act;

(ll) governing such other matters relating to the authority assigned to it under this Act as the Board considers necessary to facilitate the administration of this Act; and

 

(mm) adopting by reference in whole or in part with such changes as the Board considers necessary any regulation, code, standard, guideline, procedure or rule in relation to pipelines made under an act of the Parliament of Canada or of another province.

96(2) Without limiting the generality of paragraph 96(1)(y), the prescribed requirements under it may include requirements relating to the training, past conduct, qualifications and supervision of the employees of an applicant for a certificate or a certificate holder.

96(3) The Board may, by order made on such terms and conditions as it considers appropriate, exempt a gas distributor or person from the application of a regulation made under subsection (1).

 

96(4) From time to time, the Board may provide guidelines to assist in interpretation of regulations made under this section.

96(5) The Board shall make a new and independent judgment about whether a guideline should be applied to a particular case.

PART 10 – OFFENCES

97(1) A person who violates or fails to comply with a provision of this Act that is listed in Column I of Schedule A commits an offence.

97(2) For the purposes of Part II of the Provincial Offences Procedure Act, each offence listed in Column I of Schedule A is punishable as an offence of the category listed beside it in Column II of Schedule A.

 

97(3) A person who violates or fails to comply with an order of the Board made under subsection 40(1), 49(1), section 59 and subsection 71(4) of this Act commits an offence that is punishable as a category F offence under Part II of the Provincial Offences Procedure Act.

 

 

97(4) A person who violates or fails to comply with a rule made by the Board under section 66 or of a regulation made under section 95 or 96 of this Act commits an offence that is punishable as a category C offence under Part II of the Provincial Offences Procedure Act.

97(5) Where an offence under this Act is committed or continued on more than one day, it shall be deemed to be a separate offence for each day on which the offence is committed or continued.

97(6) Where an offence under this Act continues for more than one day,

(a) the minimum fine that may be imposed is the minimum fine set by the Provincial Offences Procedure Act multiplied by the number of days during which the offence continues; and

 

(b) the maximum fine that may be imposed is the maximum fine set by the Provincial Offences Procedure Act multiplied by the number of days during which the offence continues.

 

98(1) Where the Board determines that a person violates or fails to comply with any provision of this Act listed in Schedule A, or an order of the Board, a rule of the Board or a regulation referred to in subsections 97(3) or 97(4) of this Act, the Minister, or a person designated by the Minister for the purpose, may apply to the Court of Queen’s Bench, or to any judge of that Court, for an order as described in subsection (2).

 

98(2) In a proceeding under subsection (1), the judge may make an order restraining the person from continuing or repeating the violation or failure, such other order as is required to enforce the provision, term or condition for which the proceeding was instituted, and such order for costs as the judge considers fit.

 

99 No person shall

(a) obstruct or cause any obstruction to the construction or operation of a pipeline,

(b) wilfully do any damage to a pipeline, or

(c) harm, remove, deface or destroy a sign erected under this Act, except for replacement, repair or removal of the sign.

 

PART 11 –
CONSEQUENTIAL AMENDMENTS

100(1) Paragraph (a) of the definition "development" in section 1 of the Community Planning Act, chapter C-12 of the Revised Statutes of New Brunswick, 1973, is amended by adding ", pipelines defined in the Gas Distribution Act, 1999 except for buildings and structures remote from the pipeline used for management and administration or housing or storing of moveable equipment" immediately after "traffic control devices".

 

 

100(2) Paragraph (d) of the definition "development" in section 1 of the Community Planning Act is amended by striking out ";" at the end of paragraph and substituting "except in the case of laying pipelines defined in the Gas Distribution Act, 1999;".

100(3) The Community Planning Act is amended by inserting immediately after section 76 the following:

76.01 A development officer may grant approvals for pipeline construction for which he or she is the approving authority under the Gas Distribution Act, 1999.

101 The Gas Distribution Act, chapter G-2.1 of the Acts of New Brunswick, 1981, is repealed.

 

102 The Gas Public Utilities Act, chapter G-2.2 of the Acts of New Brunswick, 1982, is repealed.

 

103(1) The Municipalities Act, chapter M-22 of the Revised Statutes of New Brunswick, 1973, is amended by inserting immediately after section 27.6 the following:

27.7 Sections 25, 26.6, 27 and 27.01 do not apply to the sale of gas and the provision of customer services as defined in the Gas Distribution Act, 1999.

 

103(2) The Municipalities Act is amended by inserting immediately after subsection 189(18) the following:

189(19) A municipality that sells gas or provides customer services as defined in the Gas Distribution Act, 1999 is not required to base the price of gas and customer services on cost unless the Public Utilities Board requires it to do so on the grounds that market forces do not adequately protect customers.

 

103(3) The Municipalities Act is amended by adding to the list of services listed in FIRST SCHEDULE — SERVICES the following:

(s) the sale of gas and provision of customer services as defined in the Gas Distribution Act, 1999.

104(1) The definition "building" in section 1 of the Pipe Line Act, chapter P-8.1 of the Acts of New Brunswick, 1976, is repealed.

104(2) The definition "distribution line" in section 1 of the Pipe Line Act is repealed.

 

104(3) The definition "flow line" in section 1 of the Pipe Line Act is amended by striking out "or gas" in paragraph (b) and by striking out "gas or" and ", gas" in paragraph (c).

 

104(4) The definition "gas" in section 1 of the Pipe Line Act is repealed.

104(5) The definition "gas line" in section 1 of the Pipe Line Act is repealed.

104(6) The definition "mineral line" in section 1 of the Pipe Line Act is amended by striking out "a gas line,".

 

104(7) The definition "pipe line" in section 1 of the Pipe Line Act is amended by striking out "gas line,".

104(8) The definition "private line" in section 1 of the Pipe Line Act is repealed.

104(9) The definition "processing plant" in section 1 of the Pipe Line Act is repealed.

104(10) The definition "secondary line" in section 1 of the Pipe Line Act is amended by striking out "or gas" in paragraph (a), by striking out "gas," in paragraph (b), and by striking out "gas or" in paragraph (c).

 

104(11) The definition "well" in section 1 of the Pipe Line Act is amended by striking out "or gas" in paragraph (a), by striking out "natural gas," in paragraph (b), and by striking out "or gas" in the concluding sentence.

 

104(12) Section 3 of the Pipe Line Act is amended by striking out "gas line,".

104(13) Section 4 of the Pipe Line Act is amended by striking out "gas or" in paragraph (c).

104(14) Subsection 14(3) of the Pipe Line Act is amended by striking out "gas line,".

 

104(15) Subsection 15(4) of the Pipe Line Act is amended by striking out "for any substance other than gas".

 

104(16) Subsection 21(3) of the Pipe Line Act is amended by striking out "gas,".

104(17) Section 38 of the Pipe Line Act is amended by striking out ", gas" in paragraph (f), by striking out "and gas" in paragraph (h) and by striking out "or gas" in paragraph (p).

 

105(1) The Underground Storage Act, chapter U-1.1 of the Acts of New Brunswick, 1978, is amended by adding, after section 2, the following:

2.1(1) Every site in the Province suitable for constructing or operating an underground storage facility is hereby declared to be, and to have been at all times prior hereto, property separate from the soil and vested in the Crown in the right of the Province.

2.1(2) No compensation is payable to any person or municipality as a result of the declaration in subsection 2.1(1).

105(2) The definition "storage licence" in section 1 of the Underground Storage Act is repealed.

105(3) Section 1 of the Underground Storage Act is amended by adding the following in alphabetical order:

"storage lease" means a valid and subsisting lease granted under section 12.

105(4) The definition "underground storage facility" in section 1 of the Underground Storage Act is amended by striking out "liquids" and substituting "fluids".

 

105(5) Section 4 of the Underground Storage Act is amended by adding ", lease" after "permit".

 

105(6) Subsection 11(1) of the Underground Storage Act is amended by striking out "storage licence" where this phrase occurs and substituting "storage lease".

105(7) Subsection 12(1) of the Underground Storage Act is amended by striking out "storage licence" and substituting "storage lease".

 

 

105(8) Subsection 12(2) of the Underground Storage Act is amended by striking out "licence" where it occurs and substituting "lease".

 

 

 

105(9) Subsection 12(3) of the Underground Storage Act is amended by striking out "licence" where it occurs and substituting "lease".

 

 

105(10) Subsection 12(4) of the Underground Storage Act is amended by striking out "licence" and substituting "lease".

 

 

 

105(11) Subsection 13(1) of the Underground Storage Act is amended by striking out "licence" and substituting "lease".

 

105(12) Subsection 13(2) of the Underground Storage Act is amended by striking out "licence" where it occurs and substituting "lease".

 

 

 

105(13) Section 15 of the Underground Storage Act is amended by striking out "storage licence" and substituting "storage lease".

 

 

105(14) Section 16 of the Underground Storage Act is amended by inserting ", lease" after "licence".

105(15) Subsection 20(1) of the Underground Storage Act is amended by striking out "storage licence" and substituting "storage lease".

 

 

105(16) Subsection 20(2) of the Underground Storage Act is amended by striking out "storage licence" immediately after paragraph 20(2)(c) and substituting "storage lease".

 

 

105(17) Paragraph 21(a) of the Underground Storage Act is amended by striking out "storage licences" and substituting "storage leases".

 

 

105(18) Paragraph 22(c) of the Underground Storage Act is amended by striking out "storage licences" and substituting "storage leases".

 

105(19) The Underground Storage Act is amended by adding, after section 12, the following:

12.1 A person who holds a valid and subsisting oil and natural gas lease issued under the Oil and Natural Gas Act is entitled to receive a storage lease for the formation in respect of which it holds the oil and natural gas lease, provided that it complies with the provisions of this Act in all other respects.

 

PART 11 – COMMENCEMENT

106(1) Part 1 of this Act shall be deemed to come into force on December 22, 1998 and applies retroactively to any application to distribute gas and provide customer service to customers in the Province made under the former act on or after December 22, 1998.

 

106(2) This Act, other than Part 1, comes into force on Royal Assent.

 

 

SCHEDULE A

Column I

 

Column II

Section

 

Category of Offence

3 H

4 H

14(2) H

15(1) H

16(1) H

25(1) H

27(1) H

34(1) H

35(1) H

36(1) G

37(1) G

39(1) G

41(1) H

42(2) G

47 H

51(1) H

52(1) H

53(1) G

55(1) G

55(2) G

58(1) H

58(2) G

69(a) G

69(b) G

69(c) G

69(d) G

69(e) G

69(f) G

69(g) G

69(h) G

69(i) G

69(j) G

69(k) G

69(l) G

69(m) G

69(n) G

69(o) G

69(p) G

69(q) G

69(r) G

87(7) H

99(a) H

99(b) H

99(c) H