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Home > Acts and Regulations > Rules, Regulations, Guidelines, Guidance Notes and Memoranda of Guidance pursuant to the National Energy Board Act > Filing Manual > Filing Manual - Guide Q - Export and Import Authorizations (Part VI of NEB Act and Part VI Regulations)

Filing Manual - Guide Q - Export and Import Authorizations (Part VI of NEB Act and Part VI Regulations)

Introduction

Section 117 of the NEB Act authorizes 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.

This guide describes the filing requirements for the following types of import and export applications:

1. licence to export:

  • gas other than propane, butanes and ethane;
  • propane, butanes and ethane;
  • oil other than light crude oil and heavy crude oil; and
  • light crude oil and heavy crude oil.

2. licence to import:

  • gas other than propane, butanes and ethane.

3. order for the export of:

  • gas other than propane, butanes and ethane;
  • propane, butanes and ethane; and
  • light crude oil and heavy crude oil.

4. order for the import of:

  • gas other than propane, butanes and ethane.

Exemptions

The following types of transactions are exempt from the requirements of Part VI of the NEB Act and therefore do not require a licence or an order:

  • importing and exporting ethylene and propylene;
  • importing any propane, butanes or ethane;
  • exporting any propane, butanes or ethane, where:
    • the exportation is for subsequent import; or
    • the propane, butanes or ethane have previously been imported into Canada;
  • exporting any propane where the propane is carried by a motor vehicle in their own tanks for their consumption;
  • importing oil; and
  • exporting oil that:
    • is necessary to effect deliveries of oil by a pipeline to consignees in accordance with normal pipeline operating practices;
    • is used for exploration, drilling and production operations in the offshore areas over which Canada exercises jurisdiction;
    • is carried by motor vehicles, aircraft, locomotives and ships in their own tanks for their consumption; or
    • has previously been imported into Canada, except where the oil is a refined petroleum product.

Goal

The application includes all information as required by the Part VI Regulations for licences and necessary to determine the appropriateness of an order.

Q.1 Licence Applications

Export Licence

An export licence is required when:

  • the export term of the following products is for a period that exceeds two years:
    • gas (other than propane, butanes and ethane) for volumes of more than 30,000 m3/d;
    • ethane; and
    • heavy crude oil; and
  • the export term of the following products is for a period that exceeds one year:
    • propane or butanes;
    • oil (other than light crude oil or heavy crude oil); and
    • light crude oil;

Import Licence

An import licence is required to import gas (other than propane, butanes and ethane) when the import term is for a period exceeding two years for volumes of more than 30,000 m3/d.

For export or import terms that are less than those described above, an order is required (see Q.2 - Order Applications).

Q.1.1 Filing Requirements - Gas (other than propane, butanes and ethane) Export Licences

Section 12 of the Part VI Regulations states:

12. An applicant for a licence for the exportation of gas shall furnish to the Board all the information that is necessary for the Board to dispose of the application, including, unless otherwise authorized by the Board,

(a) the terms that the applicant is requesting for the licence, including

(i) the duration of the licence,

(ii) the maximum daily, annual and term quantities of gas proposed to be exported,

(iii) if applicable, the tolerance levels that are necessary to accommodate temporary operating conditions, and

(iv) the points of exportation of the gas from Canada;

(b) information respecting the applicant's gas supply supporting the proposed exportation, whether contractually dedicated or undedicated, including

(i) a summary of the quantities of gas under contract to or owned by the applicant, including daily and annual volumes, reserves and the termination date of every such contract, and

(ii) a copy of each pro forma contract for each type of gas purchase contract;

(c) information respecting the applicant's gas market, including

(i) details of the applicant's gas export sale, including

(A) a copy of every gas export sales contract for the proposed exportation,

(B) a detailed summary of the terms and conditions of every such contract, including the details of the matters referred to in Schedule I, substantially in the form set out therein, and

(C) the name of a person to whom questions respecting the details of every such contract may be directed, and

(ii) a description of the export market to be served by the proposed exportation;

(d) where the gas proposed to be exported is from a gas supply other than a contractually dedicated pool, field or area, a gas supply and demand balance for the reserves supporting the application, on both an aggregate and an annual basis for the duration of the proposed exportation, identifying all firm contractual commitments supported by those reserves;

(e) details of the transportation arrangements pertaining to the proposed exportation, including

(i) the details and status of all contractual arrangements for the movement of the gas in and outside Canada,

(ii) a copy of every transportation contract for the movement of the gas in Canada, and

(iii) a description of any existing or proposed gathering, storage or transmission facility, and of any new facility other than a gathering, storage or transmission facility, that is required to move the gas to market, whether the facility is, or will be, in or outside Canada,

(f) information respecting the potential environmental effects of the proposed exportation and any social effects that would be directly related to those environmental effects;

(g) an assessment of the impact of the proposed exportation on Canadian energy and natural gas markets to determine whether Canadians are likely to have difficulty in meeting their energy requirements at fair market prices;

(h) a copy of, or details of the status of, each approval or authorization of a federal, provincial or state government pertaining to

(i) the removal of gas from a province,

(ii) the importation of gas into the country of destination,

(iii) transportation services,

(iv) tariffs and tolls,

(v) facilities,

(vi) environmental reviews, and

(vii) contractual arrangements necessary for the exportation of gas; and

(i) a status sheet summarizing the contractual arrangements and regulatory approvals and authorizations, substantially in the form set out in Schedule II.

Q.1.2 Filing Requirements - Gas (other than propane, butanes or ethane) Import Licences

Section 13 of the Part VI Regulations states:

13. An applicant for a licence for the importation of gas shall furnish to the Board all the information that is necessary for the Board to dispose of the application, including, unless otherwise authorized by the Board,

(a) the terms that the applicant is requesting for the licence, including

(i) the duration of the licence,

(ii) the maximum daily, annual and term quantities of gas proposed to be imported,

(iii) if applicable, the tolerance levels that are necessary to accommodate temporary operating conditions, and

(iv) the points of importation of the gas into Canada;

(b) information respecting the applicant's gas supply supporting the proposed importation, including

(i) a summary of the quantities of gas under contracts for the purchase of gas, including the total daily and annual volumes and reserves under those contracts, and the termination date for each of those contracts, and

(ii) a copy of each pro forma contract for each type of gas purchase contract;

(c) information respecting the applicant's gas market, including

(i) details of the applicant's gas import purchase, including

(A) a copy of every gas import purchase contract for the proposed importation, and

(B) a detailed summary of the terms and conditions of every such contract, and

(ii) a description of the market to be served by the proposed importation;

(d) details of the transportation arrangements pertaining to the proposed importation, including

(i) the details and status of all contractual arrangements for the movement of the gas in and outside Canada,

(ii) a copy of every transportation contract for the movement of the gas in Canada, and

(iii) a description of any existing or proposed gathering, storage or transmission facility, and of any new facility other than a gathering, storage or transmission facility, that is required to move the gas to market, whether the facility is, or will be, in or outside Canada,

(e) information respecting the potential environmental effects of the proposed importation and any social effects that would be directly related to those environmental effects; and

(f) a copy of, or details of the status of, each approval or authorization of a federal, provincial or state government pertaining to

(i) the removal of gas from the country of production,

(ii) the importation of gas into a province,

(iii) transportation services,

(iv) tariffs and tolls,

(v) facilities,

(vi) environmental reviews, and

(vii) contractual arrangements necessary for the importation of gas.

Q.1.3 Filing Requirements - Propane, Butanes or Ethane Export Licences

Section 20 of the Part VI Regulations states:

20. An applicant for a licence for the exportation of propane, butanes or ethane shall furnish to the Board all the information that is necessary for the Board to dispose of the application, including, unless otherwise authorized by the Board,

(a) the terms that the applicant is requesting for the licence, including

(i) the duration of the licence,

(ii) the maximum daily, monthly, annual and term quantities of propane, butanes or ethane proposed to be exported and the average heating values of those quantities, and

(iii) the points of exportation of the propane, butanes or ethane from Canada;

(b) information respecting the applicant's propane, butanes or ethane supply supporting the proposed exportation, including

(i) a summary of the quantities of propane, butanes or ethane under contract and the average heating values of those quantities,

(ii) a copy of every propane, butanes or ethane supply contract supporting the proposed exportation,

(iii) the name and location of each pool, field or area that contributes to the propane, butanes or ethane supply of the applicant, details of the applicant's contracted or working interest therein and the name and location of the plant where propane, butanes or ethane are being produced,

(iv) an estimate of the gas reserves and the volume of extractable propane, butanes or ethane in each pool, field or area that contributes to the propane, butanes or ethane supply of the applicant,

(v) supporting data for each estimate referred to in subparagraph (iv),

(vi) basic gas deliverability data for each pool, field or area that contributes to the propane, butanes or ethane supply of the applicant,

(vii) a table showing total productive capacity, constrained only by existing and anticipated surface facilities, and

(viii) a table showing the ways in which the applicant plans to produce gas from each pool, field or area that contributes to the propane, butanes or ethane supply of the applicant, in order to obtain quantities of propane, butanes or ethane necessary to meet the applicant's requirements for the duration of the licence;

(c) information respecting the applicant's propane, butanes or ethane market, including

(i) details of the applicant's propane, butanes or ethane export sale and a copy of every export sales contract for the proposed exportation, and

(ii) a description of the export market to be served by the proposed exportation;

(d) details of the transportation arrangements pertaining to the proposed exportation, including

(i) the details and status of all contractual arrangements for the movement of the propane, butanes or ethane in and outside Canada,

(ii) a copy of every transportation contract for the movement of the propane, butanes or ethane in Canada, and

(iii) a description of any existing or proposed gathering, storage or transmission facility, and of any new facility other than a gathering, storage or transmission facility, that is required to move the gas to market, whether the facility is, or will be, in or outside Canada,

(e) information respecting the potential environmental effects of the proposed exportation and any social effects that would be directly related to those environmental effects; and

(f) a copy of, or details of the status of, each approval or authorization of a federal, provincial or state government pertaining to

(i) the removal of propane, butanes or ethane from a province,

(ii) the importation of propane, butanes or ethane into the country of destination,

(iii) transportation services,

(iv) tariffs and tolls,

(v) facilities,

(vi) environmental reviews, and

(vii) contractual arrangements necessary for the exportation of propane, butanes or ethane.

Q.1.4 Filing Requirements - Oil (other than light crude oil or heavy crude oil) Export Licences

Section 25 of the Part VI Regulations states:

25. Every applicant for a licence for the exportation of oil, other than a licence for the exportation of light crude oil or heavy crude oil, shall furnish to the Board all the information that is necessary for the Board to dispose of the application, including, unless otherwise authorized by the Board,

(a) the terms that the applicant is requesting for the licence, including

(i) the duration of the licence,

(ii) the daily, annual and term quantities of oil proposed to be exported, and

(iii) the points of exportation of the oil from Canada;

(b) information respecting the applicant's oil supply supporting the proposed exportation, including

(i) a summary of the quantities of oil under every oil supply contract,

(ii) a copy of every oil supply contract,

(iii) the name and location of each pool, field or area that contributes to the oil supply of the applicant and the details of the applicant's contracted or working interest therein,

(iv) an estimate of the oil reserves in each pool, field or area that contributes to the oil supply of the applicant,

(v) supporting data for each estimate referred to in subparagraph (iv),

(vi) basic productive capacity data for each pool, field or area that contributes to the oil supply of the applicant, and

(vii) a table showing anticipated annual production for each pool, field or area that contributes to the oil supply of the applicant, and the total annual production during the licence;

(c) information respecting the applicant's oil market, including

(i) details of the applicant's oil export sale, including a copy of every oil export sales contract for the proposed exportation, and

(ii) a description of the export market to be served by the proposed exportation;

(d) details of the transportation arrangements pertaining to the proposed exportation of oil, including a description of any existing or proposed gathering, storage or transmission facility, and of any new facility other than a gathering, storage or transmission facility, that is required to move the oil to market, whether the facility is, or will be, in or outside Canada;

(e) information respecting the potential environmental effects of the proposed exportation and any social effects that would be directly related to those environmental effects; and

(f) a copy of, or details of the status of, each approval or authorization of a federal, provincial or state government pertaining to

(i) the importation of oil into the country of destination,

(ii) transportation services,

(iii) tariffs and tolls,

(iv) facilities,

(v) environmental reviews, and

(vi) contractual arrangements necessary for the exportation of oil.

Q.1.5 Filing Requirements - Light Crude Oil or Heavy Crude Oil Export Licences

Section 25.1 of the Part VI Regulations states:

25.1 Every applicant for a licence for the exportation of light crude oil or heavy crude oil shall furnish to the Board all the information that is necessary for the Board to dispose of the application, including, unless otherwise authorized by the Board,

(a) the terms that the applicant is requesting for the licence, including

(i) the duration of the licence,

(ii) the daily, annual and term quantities of oil proposed to be exported, and

(iii) the points of exportation of the oil from Canada;

(b) information respecting the applicant's oil market, including

(i) the details of the applicant's oil export sale, and

(ii) a copy of every oil export sales contract for the proposed exportation;

(c) information respecting the potential environmental effects of the proposed exportation and any social effects that would be directly related to those environmental effects;

(d) a copy of, or details of the status of, each approval or authorization of a federal, provincial or state government as pertaining to environmental reviews; and

(e) a description detailing the manner in which the applicant

(i) has informed those persons who have declared an interest in buying oil for consumption in Canada of the quantities and grades of oil available for sale, and

(ii) has given those persons who have demonstrated an intention to buy oil for consumption in Canada, after having been so informed, an opportunity to purchase oil on terms and conditions, including price, as favourable as the terms and conditions specified in the application.

Q.2 Order Applications

An import or export order is required when:

  • the export or import term for gas (other than propane, butanes and ethane) is:
    • for a period that does not exceed two years; or
    • for a period that exceeds two years but does not exceed 20 years and the quantities do not exceed more than 30,000 m3/day;
  • the export of gas is for subsequent import, or the import of gas is for subsequent export for a period that does not exceed 25 years;
  • the export term for propane or butanes is for a period that does not exceed one year;
  • the export term for ethane is for a period that does not exceed two years;
  • the export term for oil (other than heavy crude oil) is for a period that does not exceed one year; and
  • the export term for heavy crude oil is for a period that does not exceed two years.

For export or import terms that exceed the terms and conditions described above, a licence is required (see Q.1 - Licence Applications).

Q.2.1 Filing Requirements - Import or Export of Gas (other than propane, butanes or ethane) Orders

Pursuant to section 15 of the Part VI Regulations, the application for an order must contain all the information necessary to dispose of the application.

An application for an order for the import or export of gas other than propane, butanes or ethane shall provide:

  • the legal company name and address of the importer or exporter;
  • commencement date;
  • termination date;
  • for exports, details of the status of the provincial authorizations required for the removal of gas; and
  • for imports from the United States (U.S.), the U.S. Department of Energy FE order number that authorizes the export.

Q.2.2 Filing Requirements - Export of Gas for Subsequent Import or Import of Gas for Subsequent Export

For orders authorizing the applicant to export gas for subsequent import or to import gas for subsequent export for a period not exceeding 25 years, provide:

  • the legal company name and address of the exporter and importer;
  • a description of the proposed transportation arrangements in Canada and the U.S.;
  • the points of export and import;
  • estimated annual quantity
  • status details of regulatory authorizations;
  • the commencement date; and
  • the termination date.

Q.2.3 Filing Requirements - Propane, Butanes or Ethane Export Orders

Pursuant to section 22 of the Part VI Regulations, the application for an order must contain all the information necessary to dispose of the application.

An application for an order for the export of propane, butanes or ethane shall provide the:

  • legal company name and address of the exporter;
  • commencement date;
  • termination date; and
  • type of commodity.

Q.2.4 Filing Requirements - Oil Export Orders

Pursuant to section 22 of the Part VI Regulations, the application for an order must contain all the information necessary to dispose of the application.

An application for an order for the export of oil including light crude oil, heavy crude oil and refined products shall provide the:

  • legal company name and address of the exporter;
  • commencement date;
  • termination date; and
  • type of commodity.

Guidance

Market-Based Procedure

The Board has decided to assess applications for export licences according to a new "Market-Based Procedure" (MBP). The MBP has two components: public hearings and ongoing monitoring. A key element of the public hearing component is the Complaints Procedure. Under the Complaints Procedure, Canadian natural gas buyers have an opportunity to intervene with respect to an application for a natural gas export licence if they believe they have not been able to purchase natural gas on terms and conditions that were similar to those of the proposed export.

Product Definitions

For the purposes of import and export applications:

Heavy crude oil means a substance that has a density greater than 875.7 kg/m3 and is:

  • oil, other than refined petroleum products;
  • a blend of oils, other than refined petroleum products; or
  • a blend of oils, other than refined petroleum products, with refined petroleum products.

[Part VI Regulations s. 2]

Light crude oil means a substance that has a density equal to or less than 875.7 kg/m3 and is:

  • oil, other than refined petroleum products;
  • a blend of oils, other than refined petroleum products; or
  • a blend of oils, other than refined petroleum products, with refined petroleum products.

[Part VI Regulations s. 2]

Refined petroleum products means:

  • oil recovered by the processing of oil sands;
  • gasoline-type fuels for use in internal combustion engines;
  • oil for use as a component in the blending of gasoline-type fuels referred to in the previous bullet;
  • middle distillates, including the products commercially known as kerosene, stove oil, diesel fuel, furnace oil, diesel oil, gas oil, distillate heating oil, engine distillates and Nos. 1, 2 and 3 fuel oils;
  • heavy fuel oils, including Nos. 4, 5 and 6 fuel oils, bunker "C" oil, "C" grade oil, residual fuel oil, heavy bunker oil, intermediate and thin bunker fuels and any blend of heavy fuel oils; and
  • partially processed oil, whether commingled with crude oil or equivalent hydrocarbons or not.

[Part VI Regulations s. 2]

Additional guidance and more detailed information on import and export applications is available in the following documents:

  • Memorandum of Guidance - Implementation of the Fair Market Access Procedure for the Licensing of Long-term Exports of Crude Oil and Equivalent (17 December 1997); and
  • Further Instructions - Filing of Supply Information in Compliance with the Board's Part VI (Oil and Gas) Regulations (16 May 1997).
  • In the Matter of an Application under the National Energy Board Act of Review of Natural Gas Surplus Determination Procedures (July 1987), No. GHR-1-87 (N.E.B.)
  • In the Matter of an Application under the National Energy Board Act of Proposed Changes to the Application of the Market-Based Procedure (May 1992), No. GHW-1-91 (N.E.B.)

Next Steps...

File the completed application. Applicants are encouraged to include the completed relevant checklists from Appendix I.

 

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Date Modified:
2011-10-28