BILL 43

An Act to Amend the Gas Distribution Act, 1999

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

1 Section 1 of the Gas Distribution Act, 1999, chapter G-2.11 of the Acts of New Brunswick, 1999, is amended

(a) by adding after the definition "associated unit of measure" the following:

"beneficial ownership" includes ownership through a trustee, legal representative, agent, affiliate, associate or other intermediary;

(b) in the definition "gas distributor" by adding ", and includes a person to whom the rights and obligations under a franchise agreement have been assigned" after "in the Province";

(c) by repealing the definition "gas marketer" and substituting the following:

"gas marketer" means a person who

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

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

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

(d) arranges for pipeline capacity on a transmission line or a pipeline regulated by the United States Federal Energy Regulatory Commission for a customer,

and "gas marketing" has a corresponding meeting;

2 Section 7 of the Act is amended by adding after subsection (2) the following:

7(3) A gas distributor may assign its rights and obligations under a franchise agreement with the written consent of the Minister, which consent may be unreasonably and arbitrarily withheld.

7(4) If the Minister consents to an assignment, the assignee shall sign a novation agreement where it shall agree to be bound by all the terms, covenants and conditions in the franchise agreement as if the assignee had executed the franchise agreement with the Minister.

3 Section 27 of the Act is amended

(a) by repealing paragraph (1)(c) and substituting the following:

(c) if a sole corporation, amalgamate with any other corporation.

(b) by repealing subsection (2) and substituting the following:

27(2) Without first obtaining an order granting leave from the Board, no person shall acquire directly or indirectly 20 per cent or more of the beneficial ownership of a gas distributor.

4 Section 28 of the Act is repealed and the following is substituted:

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

5 Section 58 of the Act is repealed and the following is substituted:

58(1) No person shall

(a) sell gas or offer to sell gas to a customer,

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

(c) act or offer to act as the agent or broker of a customer in purchasing gas, or

(d) arrange for pipeline capacity on a transmission line or a pipeline regulated by the United States Federal Energy Regulatory Commission for a customer,

unless the person holds a gas marketer's certificate issued under this Act.

58(2) No gas marketer shall

(a) sell gas or offer to sell gas to a customer,

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

(c) act or offer to act as the agent or broker of a customer in purchasing gas, or

(d) arrange for pipeline capacity on a transmission line or a pipeline regulated by the United States Federal Energy Regulatory Commission for a customer,

in a name other than the one in which it is certified unless authorized to do so in the certificate.

6 Subsection 87(4) of the Act is repealed and the following is substituted:

87(4) The Board, in a manner that to it appears appropriate, shall assess each gas distributor and gas marketer

(a) its direct expenses, and

(b) its share of the common expenses,

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

7 Schedule A of the Act is amended by striking out

58(1) H

58(2) G

 

and substituting the following:

58(1)(a) H

58(1)(b) H

58(1)(c) H

58(1)(d) H

58(2)(a) G

58(2)(b) G

58(2)(c) G

58(2)(d) G