Pipeline Safety Act

An Act to amend the National Energy Board Act and the Canada Oil and Gas Operations Act

This bill was last introduced in the 41st Parliament, 2nd Session, which ended in August 2015.

Sponsor

Greg Rickford  Conservative

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill.

This enactment amends the National Energy Board Act and the Canada Oil and Gas Operations Act in order to strengthen the safety and security of pipelines regulated by those Acts.
More specifically, the enactment, among other things,
(a) reinforces the “polluter pays” principle;
(b) confirms that the liability of companies that operate pipelines is unlimited if an unintended or uncontrolled release of oil, gas or any other commodity from a pipeline that they operate is the result of their fault or negligence;
(c) establishes the limit of liability without proof of fault or negligence at no less than one billion dollars for companies that operate pipelines that have the capacity to transport at least 250,000 barrels of oil per day and at an amount prescribed by regulation for companies that operate any other pipelines;
(d) requires that companies that operate pipelines maintain the financial resources necessary to pay the amount of the limit of liability that applies to them;
(e) authorizes the National Energy Board to order any company that operates a pipeline from which an unintended or uncontrolled release of oil, gas or any other commodity occurs to reimburse any government institution the costs it incurred in taking any action or measure in relation to that release;
(f) requires that companies that operate pipelines remain responsible for their abandoned pipelines;
(g) authorizes the National Energy Board to order companies that operate pipelines to maintain funds to pay for the abandonment of their pipelines or for their abandoned pipelines;
(h) allows the Governor in Council to authorize the National Energy Board to take, in certain circumstances, any action or measure that the National Energy Board considers necessary in relation to an unintended or uncontrolled release of oil, gas or any other commodity from a pipeline;
(i) allows the Governor in Council to establish, in certain circumstances, a pipeline claims tribunal whose purpose is to examine and adjudicate the claims for compensation for compensable damage caused by an unintended or uncontrolled release of oil, gas or any other commodity from a pipeline;
(j) authorizes, in certain circumstances, that funds may be paid out of the Consolidated Revenue Fund to pay the costs of taking the actions or measures that the National Energy Board considers necessary in relation to an unintended or uncontrolled release of oil, gas or any other commodity from a pipeline, to pay the costs related to establishing a pipeline claims tribunal and to pay any amount of compensation that such a tribunal awards; and
(k) authorizes the National Energy Board to recover those funds from the company that operates the pipeline from which the release occurred and from companies that operate pipelines that transport a commodity of the same class as the one that was released.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Votes

March 9, 2015 Passed That the Bill be now read a second time and referred to the Standing Committee on Natural Resources.

Pipeline Safety ActGovernment Orders

May 6th, 2015 / 5:20 p.m.


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NDP

Dany Morin NDP Chicoutimi—Le Fjord, QC

Mr. Speaker, as I mentioned, the NDP will support this bill. However, I have a comment and a question for my Conservative colleague.

Social licence, or public approval of the development of our natural resources, is just as important as authorization by a regulatory body. Why are the Conservatives refusing to do what it takes to obtain public support for pipeline projects in Canada? I think that this question will be asked across the country.

Pipeline Safety ActGovernment Orders

May 6th, 2015 / 5:20 p.m.


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Conservative

Ryan Leef Conservative Yukon, YT

Mr. Speaker, I do not disagree that social licence is an important part of what we do in our responsible resource development regime.

It is important to understand that part of this legislation imbeds some of those very fundamental pieces. The polluter pays principle is very much based on what the public has told us they want, expect and demand, as I said in my intervention.

We have also imbedded in this legislation the requirements and the commitment to work with aboriginal and first nations communities, not only in proposed projects but also in terms of developing and utilizing best technologies as we move forward to ensure the continued integrity of a world-class safety regime.

That, of course, comes not just from subject-matter experts that deal with this but from community subject-matter experts who live, work and play in regions where pipelines operate safely every single day in this country.

Pipeline Safety ActGovernment Orders

May 6th, 2015 / 5:25 p.m.


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Liberal

Francis Scarpaleggia Liberal Lac-Saint-Louis, QC

Mr. Speaker, when the government amended the Navigable Waters Protection Act, it weakened the legislation and it also transferred responsibility for environmental assessments of energy projects to the National Energy Board.

We learned last week that the board considers that it does not have the expertise required to assess the risks associated with a pipeline accident that could pollute water. At the time, we were assured that the National Energy Board had this expertise. However, we now realize that the board must conduct public consultations and request further information from companies about their plans in the event of an accident.

I would like the member to elaborate on the transfer of this responsibility to the board, which cannot fully discharge it.

Pipeline Safety ActGovernment Orders

May 6th, 2015 / 5:25 p.m.


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Conservative

Ryan Leef Conservative Yukon, YT

Mr. Speaker, I guess I am bit perplexed about why the member opposite would assume that the Navigable Waters Protection Act did anything but deal with navigation on waters, and where anybody assessing that piece of legislation, or who is tasked with the inspection, enforcement and regulation of the Navigable Waters Protection Act, would be in a position to deal with pipelines.

There is no more suitable board in this country than the National Energy Board to deal with national energy issues. It seems to be the case, though, every time, that the opposition, when we make streamlined, efficient and effective decisions around people who are designed and should be governing particular things, looks to other pieces of legislation to find excuses as to where, how and why these changes should not be made.

I imagine the member opposite would probably propose that if we made changes to the stuffed animals and toys protection act that that somehow would jeopardize the environment.

This does not. It only strengthens the environmental regime. We will continue on that track and Canadians know that.

Pipeline Safety ActGovernment Orders

May 6th, 2015 / 5:25 p.m.


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Saskatoon—Rosetown—Biggar Saskatchewan

Conservative

Kelly Block ConservativeParliamentary Secretary to the Minister of Natural Resources

Mr. Speaker, I want to thank my hon. colleague for the work that he does on the natural resources committee. He is a very active member. I appreciate what he brings to the table coming from Yukon.

This legislation builds on a safety record of 99.999%. How does this legislation relate to ensuring public confidence in pipelines?

Pipeline Safety ActGovernment Orders

May 6th, 2015 / 5:25 p.m.


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Conservative

Ryan Leef Conservative Yukon, YT

Mr. Speaker, as we maintain public confidence in this through the polluter pay principle, which is clearly important to all Canadian citizens, we are also introducing concrete measures to enhance pipeline safety under the pillars of prevention, preparedness and response, and liability and compensation.

Canadians can be assured that with those pillars in place in this legislation, our government will commit to doing everything we can to achieve those strong pillars in order to ensure we adhere to everything we have set out in responsible resource development.

Pipeline Safety ActGovernment Orders

May 6th, 2015 / 5:25 p.m.


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The Acting Speaker Bruce Stanton

Is the House ready for the question?

Pipeline Safety ActGovernment Orders

May 6th, 2015 / 5:25 p.m.


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Some hon. members

Question.

Pipeline Safety ActGovernment Orders

May 6th, 2015 / 5:25 p.m.


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The Acting Speaker Bruce Stanton

The question is on the motion. Is it the pleasure of the House to adopt the motion?

Pipeline Safety ActGovernment Orders

May 6th, 2015 / 5:25 p.m.


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Some hon. members

Agreed.

Pipeline Safety ActGovernment Orders

May 6th, 2015 / 5:25 p.m.


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The Acting Speaker Bruce Stanton

(Motion agreed to, bill read the third time and passed)