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. The Library of Parliament often publishes better independent summaries.

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

March 9th, 2015 / 6:10 p.m.
See context

NDP

Jinny Sims NDP Newton—North Delta, BC

Mr. Speaker, I want to thank my hard-working colleague. He does an incredible job in his riding and he represents his constituents with a great deal of passion in the House.

He has raised a really good question, and we need to be really clear about it. The bill only covers those pipeline spills or accidents that happen if the barrels of oil per day are over 250,000. If they are less, this does not apply. That is of a great deal of concern. Also, looking at history and what we know about the cost of cleanup, $1 billion are totally under the amount that is needed.

Pipeline Safety ActGovernment Orders

March 9th, 2015 / 6:10 p.m.
See context

Saskatoon—Rosetown—Biggar Saskatchewan

Conservative

Kelly Block ConservativeParliamentary Secretary to the Minister of Natural Resources

Mr. Speaker, the opposition appears to have changed its tune. It would seem that an epiphany has occurred. It now believes what we have been saying all along, that Canada is a country blessed with natural resources and that we can grow the economy, while protecting the environment.

Bill C-46 builds on previous actions taken by our government to prevent incidents. These actions include increasing the number of annual pipeline inspections and audits conducted by the National Energy Board, as well as strengthening the board's enforcement capabilities by giving it the authority to fine pipeline operators for smaller incidents, all of which the NDP voted against.

Could the member explain why the New Democrats voted against those very important measures?

Pipeline Safety ActGovernment Orders

March 9th, 2015 / 6:10 p.m.
See context

NDP

Jinny Sims NDP Newton—North Delta, BC

Mr. Speaker, ever since I have been in the House, I have seen the government take away more and more of the regulations around the protection of the environment. When the government cleans up the red tape, or fast tracks, it does not pay attention to the details.

We have not had an epiphany. Even when I was teaching in the classroom, I talked about our country's wealth. We are not against development. We want sustainable development and we want development that protects our environment and leaves our children with a planet. We do not want the kind of development that endangers our sustainability and ensures our children are left with a very damaged Canada.

Pipeline Safety ActGovernment Orders

March 9th, 2015 / 6:10 p.m.
See context

Newmarket—Aurora Ontario

Conservative

Lois Brown ConservativeParliamentary Secretary to the Minister of International Development

Mr. Speaker, I am very pleased to hear that the opposition has had an epiphany.

In one of my questions earlier, I mentioned my respect and regard for engineers in Canada. I grew up in the home of a chemical engineer, who has done an enormous amount of industrial work across Canada. Waste water was a specialty of my father's. I also have a son-in-law who is very concerned about the environment and providing energy for Africa. He has a doctorate in electrical engineering, and he is currently in Ghana building solar fields to provide electrical energy for a country that is so desperately in need. I have never met people who are more concerned about the environment than the engineers of Canada.

When I was looking at some of the websites and learning a bit about what our engineers were doing in Canada to preserve the environment, I looked at the Schulich School of Engineering. It is active in research that crosses all departments in the engineering school, including civil, chemical, mechanical, geomatics, and electrical engineering, and it collaborates with all departments of geoscience and biological sciences. It says that it is a leader in pipeline integrity, maintenance and management.

One of the things we do know is that there are occasionally some difficulties with the pipelines, but those problems are miniscule in comparison with the problems with the pump stations. We know the engineers are exceedingly diligent in the work they do to keep the pump stations active and working properly. That is their job.

One of the NDP members talked about sustainable jobs in our economy. The Pipe Line Contractors Association of Canada is made up of people who have very reliable and well-respected companies in Canada. They are prominent people in our society who work hard to ensure the integrity of those pipelines. They talk about some of the job opportunities. They are looking at skilled occupations and trades, and jobs in the transportation industry, logistics, equipment operating, management, and supply testing and inspection.

If we take a look at the opportunities that the Energy East pipeline would provide in the development phase alone, we are talking about more than 8,300 full-time direct jobs and 5,300 indirect jobs. In the operational phase, there would be 900 full-time direct jobs and thousands of indirect jobs. It will look at local hiring for the most part.

We need pipelines. We need to ensure that the people who have the demand for energy in their homes, automobiles and businesses across the country have the fuel they need to keep them going. This is an economic driver for Canada.

We said earlier that we were blessed with enormous resources. Our country has been blessed with resources beyond comparison. Those resources are there to be the economic driver for our country.

The bill would bring safety and security to our pipeline management. In the process, it would create jobs for Canadians, jobs for our young people and jobs for our engineers. That is good news for every one of us.

Pipeline Safety ActGovernment Orders

March 9th, 2015 / 6:15 p.m.
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Conservative

The Acting Speaker Conservative Barry Devolin

Is the House ready for the question?

Pipeline Safety ActGovernment Orders

March 9th, 2015 / 6:15 p.m.
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Some hon. members

Question.

Pipeline Safety ActGovernment Orders

March 9th, 2015 / 6:15 p.m.
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Conservative

The Acting Speaker Conservative Barry Devolin

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

Pipeline Safety ActGovernment Orders

March 9th, 2015 / 6:15 p.m.
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Some hon. members

Agreed.

No.

Pipeline Safety ActGovernment Orders

March 9th, 2015 / 6:15 p.m.
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Conservative

The Acting Speaker Conservative Barry Devolin

All those in favour of the motion will please say yea.

Pipeline Safety ActGovernment Orders

March 9th, 2015 / 6:15 p.m.
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Some hon. members

Yea.

Pipeline Safety ActGovernment Orders

March 9th, 2015 / 6:15 p.m.
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Conservative

The Acting Speaker Conservative Barry Devolin

All those opposed will please say nay.

Pipeline Safety ActGovernment Orders

March 9th, 2015 / 6:15 p.m.
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Some hon. members

Nay.

Pipeline Safety ActGovernment Orders

March 9th, 2015 / 6:15 p.m.
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Conservative

The Acting Speaker Conservative Barry Devolin

In my opinion the yeas have it.

And five or more members having risen:

Call in the members.

(The House divided on the motion, which was agreed to on the following division:)

Vote #343

Pipeline Safety ActGovernment Orders

March 9th, 2015 / 6:55 p.m.
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Conservative

The Speaker Conservative Andrew Scheer

I declare the motion carried. Accordingly, the bill stands referred to the Standing Committee on Natural Resources.

(Bill read the second time and referred to a committee)