Frequently Asked Questions - Regulations

The FAQs below are meant to provide Canadians and businesses with basic information about the National Energy Board’s regulations. These regulations were chosen using web metrics to determine the top ten NEB regulations accessed on the Department of Justice’s website.

Administrative Monetary Penalties Regulations (National Energy Board)

Administrative Monetary Penalties Regulations (National Energy Board)

1. What is the purpose of this regulation?

The National Energy Board (NEB or the Board) requires regulated companies to anticipate, prevent, manage, and mitigate potentially dangerous conditions associated with their pipelines. The NEB will take all available actions to protect the safety of workers, the public, and the environment. With the passing of the Jobs, Growth and Long-term Prosperity Act, the NEB was provided with authority to establish a system of Administrative Monetary Penalties (AMPs) through regulations to promote compliance with the National Energy Board Act (NEB Act).

The purpose of AMPs is to encourage compliance, deter future non-compliance, and prevent harm, with a focus on ensuring the safety of workers and the public, and the protection of the environment.

2. What are the key elements of this regulation?

The Administrative Monetary Penalties Regulations (AMP Regulations) establish two types of violations and set a baseline penalty for each category. The baseline penalty is determined based on the type of violation and whether the violation is committed by an individual or company.

The new AMP sections in the NEB Act set out the maximum daily penalties for both individuals and companies. For individuals the maximum daily penalty is $25,000 for each violation, and for companies the maximum daily penalty is $100,000 per violation. The NEB Act stipulates that each day that a violation continues is considered to be a separate violation. This means that separate penalties could be issued per infraction, per day with no maximum total financial penalty.

Some of the details of the AMPs are described in the amendments to the NEB Act. Other details, such as what activities will be considered violations, are written in the new regulations.

3. How does this regulation affect Canadian businesses?

AMPs are financial penalties the Board has the ability to impose on companies or individuals for non-compliance with the National Energy Board Act, regulations, decisions, permits, orders, licenses or certificate conditions.

4. Is there a limit to how much a violator can be fined?

There is no limit.

5. What sorts of violations would lead to penalties?

The AMP Regulations designate the provisions in the NEB Act or its regulations that are intended to encourage safety and environmental protection as violations that could be subject to financial penalty. Schedule 1 of the AMP Regulations list these sections of the NEB Act and its regulations that are designated as violations and could be subject to an AMP.

Contravention of an order or decision made under the NEB Act, as well as failure to comply with a term or condition of a certificate, licence, permit, leave or exemption granted under the NEB Act, is also designated as a violation that could be subject to an AMP.

6. Can the penalties be adjusted?

The AMP Regulations establish two types of violations (Type A and Type B), and set a baseline penalty for each category. The baseline penalty is determined based on the type of violation (A or B) and who committed the violation (individual or company).

The baseline penalty can be adjusted by applying, if circumstances warrant, aggravating and mitigating factors that are set out in the regulations. These factors allow the gravity level to be increased or decreased from zero (the baseline penalty starts with a gravity level of zero). Each gravity level has a corresponding penalty amount that is listed in Schedule 2 of the AMP Regulations. If no adjustment factors are applied, the final gravity level will remain zero and the final penalty will be the baseline penalty.

The baseline penalty may be adjusted using the following factors:

  • The history of violations committed within the previous 7 years
  • Whether any competitive or economic benefit was derived from the violation
  • Whether the parties to the violation made any effort to mitigate or reverse the effects of the violation
  • Cooperation with the Board in their incident response, investigation and mitigation of the violation
  • Any steps taken to prevent reoccurrence of the violation
  • Whether the violation was primarily a reporting or record-keeping requirement
  • Any other factor considered relevant

Violators are required to pay any penalties in full.

7. What if an incident occurred before AMPs came into effect on 3 July 2013?

Any incident on an NEB-regulated pipeline or facility is subject to a timely and appropriate response and investigation. In addition to this, the NEB will consider using everything available to us in our compliance and enforcement toolkit. These tools include inspection officer orders to eliminate immediate threats to the environmental and safety, Board orders that restrict the operations of a pipeline to reduce risk, and revoking a company's authorization to operate.

It should be noted that certain violations, such as contravention of Board and Inspection Officer orders regarding safety and environmental protection, are criminal offences and, upon conviction, are subject to fines and imprisonment as set out in the Act.

For example, breach of an Inspection Officer order is subject on indictment to a fine of up to one million dollars, imprisonment for up to five years, or both.

8. What will be the Board’s approach to using AMPs?

The NEB will consider the following criteria to guide the use of AMPs:

  • when compliance is not obtained using either facilitated or directed compliance tools
  • when harm is caused because of the non-compliance
  • when harm would likely occur because of the non-compliance
  • any other situation where an AMP is considered to be the best way to obtain compliance or deter future non-compliance

9. What is the timeline for implementation?

These regulations came into force on 3 July 2013.

10. Where can I get more information?

Comments
Address: Administrative Monetary Penalties Regulations
National Energy Board
Suite 210, 517 Tenth Avenue SW
Calgary, Alberta
T2R 0A8
Email:  ampsap@neb-one.gc.ca
Toll free:  1-800-899-1265
Fax:  403-292-5503
Toll free fax:  1-877-288-8803
TTY (teletype):  1-800-632-1663

National Energy Board Act Part VI (Oil and Gas) Regulations

National Energy Board Act Part VI (Oil and Gas) Regulations

1. What is the purpose of this regulation?

Section 117 of the National Energy Board Act (NEB Act) authorizes the National Energy Board (NEB or the Board) to issue licences for the exportation or importation of oil or gas. The National Energy Board Act Part VI (Oil and Gas) Regulations (Part VI Regulations) set out the information to be filed for licences and provides for the issuance of orders for the exportation or importation of gas and exportation of oil.

2. What are the key elements of this regulation?

  • Licences
  • Orders - export of oil
  • Orders - export or import of gas
  • Contract terms and conditions
  • Status sheet for contractual arrangements

3. How does this regulation affect Canadian businesses?

By setting out the information needed by the Board, the Part VI Regulations allow the Board to expedite the handling of license applications.

Pipeline companies must report volumes shipped in aggregate, not volumes shipped by individual shippers.

4. What is the timeline for implementation?

This regulation is in force.

5. Where can I get more information?

National Energy Board
Suite 210, 517 Tenth Avenue SW
Calgary, Alberta
T2R 0A8
E-mail: info@neb-one.gc.ca
Telephone: 403-292-4800
Telephone (toll free): 1-800-899-1265
Facsimile: 403-292-5503
Facsimile (toll free): 1-877-288-8803
TTY (teletype): 1-800-632-1663

National Energy Board Export and Import Reporting Regulations

National Energy Board Export and Import Reporting Regulations

1. What is the purpose of this regulation?

Together with the Toll Information Regulations, the National Energy Board Export and Import Reporting Regulations (Reporting Regulations) provide the National Energy Board (NEB or the Board) with information necessary to understand the functioning of the energy markets in Canada, so that Board oversight adapts to the evolving energy markets.

The Reporting Regulations require that on or before the last day of each month, the holder of a licence or order for the exportation or importation of gas, propane, butanes, ethane, refined petroleum products or crude oil submit a report to the Board summarizing the previous month's activities.

This information is used, in aggregate, to:

  • monitor the flow of natural gas volumes, costs and prices through various export points and issue monthly reports for use by external parties;
  • monitor the flow of ethane and record export prices;
  • monitor the flow of propane and butanes, record prices and issue monthly reports for use by external parties; and
  • monitor the flow of crude oil and refined petroleum products, record prices and issue monthly reports for use by external parties.

2. What are the key elements of this regulation?

  • Keeping returns
  • Submitting returns
  • Units of measurement

Monthly reports are a mandatory condition of any order or licence that may be issued in respect of the import or export of natural gas, ethane, propane, butanes, refined petroleum products or crude oil.

3. How does this regulation affect Canadian businesses?

Holders of export or import orders, licences and permits must regularly report to the Board certain information about actual flows of natural gas, ethane, propane, butanes, refined petroleum products or crude oil.

4. What is the timeline for implementation?

This regulation is in force.

5. Where can I get more information?

National Energy Board
Suite 210, 517 Tenth Avenue SW
Calgary, Alberta
T2R 0A8
E-mail: info@neb-one.gc.ca
Telephone: 403-292-4800
Telephone (toll free): 1-800-899-1265
Facsimile: 403-292-5503
Facsimile (toll free): 1-877-288-8803
TTY (teletype): 1-800-632-1663

National Energy Board Onshore Pipeline Regulations

National Energy Board Onshore Pipeline Regulations

1. What is the purpose of this regulation?

The Onshore Pipeline Regulations (OPR) regulate the design, construction, operation and abandonment of pipelines to ensure safety, security and the protection of the environment.

2. What are the key elements of this regulation?

  • Management systems
  • Pipeline design
  • Construction
  • Operation and maintenance
  • Abandonment
  • Reporting
  • Audits and inspections

3. How does this regulation affect Canadian businesses?

Companies are responsible for meeting the requirements of the OPR to manage safety, security and environmental protection throughout the entire lifecycle of their facilities, from design, through to construction, operation and abandonment.

As required by the OPR, companies must establish, implement and maintain management systems and protection programs in order to anticipate, prevent, manage and mitigate conditions that may adversely affect the safety and security of the company’s pipelines, employees, the public, as well as property and the environment. A company’s management system applies to the company’s programs for safety, pipeline integrity, environmental protection, emergency management and security.

When requested by the National Energy Board, companies must demonstrate the adequacy and effectiveness of the management processes and procedures employed.

4. What is the timeline for implementation?

This regulation is in force.

5. Where can I get more information?

National Energy Board
Suite 210, 517 Tenth Avenue SW
Calgary, Alberta
T2R 0A8
E-mail: info@neb-one.gc.ca
Telephone: 403-292-4800
Telephone (toll free): 1-800-899-1265
Facsimile: 403-292-5503
Facsimile (toll free): 1-877-288-8803
TTY (teletype): 1-800-632-1663

National Energy Board Pipeline Damage Prevention Regulations – Authorizations

National Energy Board Pipeline Damage Prevention Regulations – Authorizations

1. What is the purpose of this regulation?

The National Energy Board Pipeline Damage Prevention Regulations – Authorizations provide the requirements for obtaining authorization to conduct activities near an NEB-regulated pipeline including: activities that may cause a ground disturbance within 30 metres of the pipe; construction of a facility near an NEB-regulated pipeline; and the operation of a vehicle or mobile equipment across an NEB-regulated pipeline. Under the NEB Act, activities causing ground disturbance in the prescribed area are prohibited unless authorized through these regulations or a Board order. Similarly, construction of a facility near a pipeline (including the right of way) and the operation of a vehicle or mobile equipment across a pipeline (including the right of way) are prohibited unless authorized through the regulations or a Board order.

2. What are the key elements of this regulation?

  • Defines the prescribed area: a strip of land measured 30 m perpendicularly on each side from the centerline of a pipe; and
  • Provides the measures to be followed by anyone planning to conduct ground disturbance in the prescribed area or construction a facility near a pipeline, or operate a vehicle or mobile equipment across a pipeline.

3. How does this regulation affect Canadian businesses?

People planning activities near pipelines are required to confirm the location of pipelines, obtain company consent, and meet all measures in the regulations before they start these activities.

4. What is the timeline for implementation?

This regulation is in force.

5. Where can I get more information?

National Energy Board
Suite 210, 517 Tenth Avenue SW
Calgary, Alberta
T2R 0A8
E-mail: info@neb-one.gc.ca
Telephone: 403-292-4800
Telephone (toll free): 1-800-899-1265
Facsimile: 403-292-5503
Facsimile (toll free): 1-877-288-8803
TTY (teletype): 1-800-632-1663

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

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

1. What is the purpose of this regulation?

The National Energy Board Pipeline Damage Prevention Regulations – Obligations of Pipeline Companies contains certain responsibilities of pipeline companies to land owners and land users who live and work near NEB-regulated pipelines, and to those planning to: conduct a ground disturbance within 30 metres of the pipe; construct a facility near a pipeline; or to cross a pipeline with a vehicle or mobile equipment.

2. What are the key elements of this regulation?

  • Pipeline companies are required to be a member of a one-call centre in regions where they operate pipelines;
  • Pipeline companies are required to have a damage prevention program, including a public awareness program; and
  • Requirements to be followed by pipeline companies related to proposals to conduct activities near pipelines, including responding to locate requests and providing safety measures in any consents provided.

3. How does this regulation affect Canadian businesses?

Pipeline companies are required to confirm that people know how to safely conduct ground disturbance and construction activities near pipelines, and to safely operate vehicles or mobile equipment across pipelines, and to provide the related consents and monitoring.

4. What is the timeline for implementation?

This regulation is in force.

5. Where can I get more information?

National Energy Board
Suite 210, 517 Tenth Avenue SW
Calgary, Alberta
T2R 0A8
E-mail: info@neb-one.gc.ca
Telephone: 403-292-4800
Telephone (toll free): 1-800-899-1265
Facsimile: 403-292-5503
Facsimile (toll free): 1-877-288-8803
TTY (teletype): 1-800-632-1663

National Energy Board Processing Plant Regulations

National Energy Board Processing Plant Regulations

1. What is the purpose of this regulation?

The Processing Plant Regulations (PPR) regulate the design, operation, and abandonment of processing plants to ensure proper safety, security, and protection of the environment.

2. What are the key elements of this regulation?

  • Design
  • Construction
  • Testing and examination
  • Operation
  • Reporting
  • Audits, inspections and records

3. How does this regulation affect Canadian businesses?

A company owning or operating a processing plant must ensure that its plans are designed, constructed and abandoned in accordance with specified rules, and health and safety standards, by making plans, seeking approval from the National Energy Board, following approved plans and maintaining records for audit.

Companies are responsible for meeting the requirements of the PPR to manage safety, security and environmental protection throughout the entire lifecycle of their facilities, from design, through to construction, operation and abandonment.

4. What is the timeline for implementation?

This regulation is in force.

5. Where can I get more information?

National Energy Board
Suite 210, 517 Tenth Avenue SW
Calgary, Alberta
T2R 0A8
E-mail: info@neb-one.gc.ca
Telephone: 403-292-4800
Telephone (toll free): 1-800-899-1265
Facsimile: 403-292-5503
Facsimile (toll free): 1-877-288-8803
TTY (teletype): 1-800-632-1663

National Energy Board Rules of Practice and Procedure, 1995

National Energy Board Rules of Practice and Procedure, 1995

1. What is the purpose of this regulation?

The National Energy Board Rules of Practice and Procedure, 1995 (the Rules) govern the procedures:

  • to be followed during a proceeding (as defined in the Rules), and
  • for applications for review or rehearing, for immediate right of entry and for approval of the Plan, Profile and Book of Reference.

2. What are the key elements of this regulation?

  • Filing of documents
  • Service
  • Public hearings
  • Applications for review or rehearing
  • Plan, Profile and Book of Reference
  • Right of entry

3. How does this regulation affect Canadian businesses?

The Rules provide businesses with a procedural framework for proceedings and filing applications. The procedural framework provides certainty and promotes efficiency; businesses do not have to apply for procedural directions on a case by case basis.

4. What is the timeline for implementation?

This regulation is in force.

5. Where can I get more information?

National Energy Board
Suite 210, 517 Tenth Avenue SW
Calgary, Alberta
T2R 0A8
E-mail: info@neb-one.gc.ca
Telephone: 403-292-4800
Telephone (toll free): 1-800-899-1265
Facsimile: 403-292-5503
Facsimile (toll free): 1-877-288-8803
TTY (teletype): 1-800-632-1663

Oil Pipeline Uniform Accounting Regulations

Oil Pipeline Uniform Accounting Regulations

1. What is the purpose of this regulation?

The Oil Pipeline Uniform Accounting Regulations standardize accounting for assets and expenses subject to National Energy Board (NEB or the Board) regulation and to facilitate Board audits of companies subject to NEB financial regulation.

2. What

National Energy Board
Suite 210, 517 Tenth Avenue SW
Calgary, Alberta
T2R 0A8
E-mail: info@neb-one.gc.ca
Telephone: 403-292-4800
Telephone (toll free): 1-800-899-1265
Facsimile: 403-292-5503
Facsimile (toll free): 1-877-288-8803
TTY (teletype): 1-800-632-1663

are the key elements of this regulation?

  • Records
  • Accounts
  • Costs
  • Additions, retirements, maintenance, and depreciation
  • Securities
  • Assets and liabilities

3. How does this regulation affect Canadian businesses?

Companies must maintain a set of accounting books consistent with these regulations, or obtain Board approval to be exempted from that requirement.

4. What is the timeline for implementation?

This regulation is in force.

5. Where can I get more information?

Toll Information Regulations

Toll Information Regulations

1. What is the purpose of this regulation?

Together with the Export and Import Reporting Regulations, the Toll Information Regulations provide the National Energy Board (NEB or the Board) with information necessary to understand the functioning of the energy markets in Canada, so that Board oversight adapts to the evolving energy markets.

Information on traffic, including throughput, is essential to the Board as it is an important indicator of the health of a pipeline, including the company’s ability to maintain and abandon its pipeline.

2. What are the key elements of this regulation?

The Toll Information Regulations require pipeline companies that charge tolls to submit to the Board on a quarterly basis information on traffic, including export volumes, capital, revenues, expenses and rates of return. The Filing Manual provides more specific guidance on the information to be filed.

3. How does this regulation affect Canadian businesses?

A pipeline company that charges tolls must file the information as required, and make the information available to their shippers. Their shippers use this information to evaluate whether they are being fairly charged for services provided. Where they have concerns, the shippers can ask the Board to consider a complaint.

4. What is the timeline for implementation?

This regulation is in force.

5. Where can I get more information?

National Energy Board
Suite 210, 517 Tenth Avenue SW
Calgary, Alberta
T2R 0A8
E-mail: info@neb-one.gc.ca
Telephone: 403-292-4800
Telephone (toll free): 1-800-899-1265
Facsimile: 403-292-5503
Facsimile (toll free): 1-877-288-8803
TTY (teletype): 1-800-632-1663

For more information

To learn about upcoming or ongoing consultations on proposed federal regulations, visit the Canada Gazette and Consulting with Canadians websites.

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