The National Energy Board, pursuant to section 134 a of the National Energy Board Act b, makes the annexed Administrative Monetary Penalties Regulations (National Energy Board).
Calgary, May 17, 2013 SHERI YOUNG Secretary of the National Energy Board
His Excellency the Governor General in Council, on the recommendation of the Minister of Natural Resources, pursuant to section 134 a of the National Energy Board Act b, approves the annexed Administrative Monetary Penalties Regulations (National Energy Board), made by the National Energy Board on May 17, 2013.
Interpretation
In these Regulations, Act means the Canadian Energy Regulator Act.
Designated Provisions
The contravention of a provision of the Act or any of its regulations that is set out in column 1 of Schedule 1 is designated as a violation that may be proceeded with in accordance with sections 116 to 135 of the Act.
The contravention of any order or decision made under the Act is designated as a violation that may be proceeded with in accordance with sections 116 to 135 of the Act.
The failure to comply with a condition of any certificate, licence, permit, authorization, leave or exemption that is granted under the Act is designated as a violation that may be proceeded with in accordance with sections 116 to 135 of the Act.
In the event of a discrepancy between the short-form descriptions in Schedule 1 and the provision to which it pertains, the provision prevails.
Classification
The violation of a provision that is set out in column 1 of Schedule 1 is classified as a Type A or Type B violation as set out in column 3 of that Schedule.
Penalties
The penalty for a violation is the amount set out in column 2 or 3 of Schedule 2 that corresponds to the type of violation, the total gravity value set out in column 1 and whether the violation was committed by an individual or a person other than an individual.
The total gravity value in respect of a violation is to be established by considering each of the criteria in column 1 of the table to this section, by ascribing to each criterion an appropriate gravity value, having regard to the circumstances of the violation, from those set out in column 2 and by adding the values obtained. TABLE Item Column 1 Column 2 Criteria Effect on Gravity Value 1 Whether the person who committed the violation has other violations in the previous 7 years 0 to +2 2 Whether the person derived any competitive or economic benefit from the violation 0 to +2 3 Whether the person made reasonable efforts to mitigate or reverse the violation’s effects–2 to +2 4 Whether there was negligence on the part of the person who committed the violation 0 to +2 5 Whether the person provided all reasonable assistance to the Regulator with respect to the violation–2 to +2 6 Whether the person, after becoming aware of the violation, promptly reported the violation to the Regulator–2 to +2 7 Whether the person has taken any steps to prevent recurrence of the violation–2 to +2 8 For type B violations, whether the violation was primarily a reporting or record-keeping requirement failure–2 to 0 9 Whether there are any other aggravating factors in relation to the risk of harm to people or the environment 0 to +3
Service of Documents
The service of a document required or authorized under subsection 120(1) or 128(2) of the Act is to be made by
in the case of an individual,
leaving a copy of it with the individual,
leaving a copy of it with someone who appears to be an adult member of the same household at the individual’s last known address or usual place of residence, or
sending a copy of it by registered mail, courier, fax or other electronic means to the individual’s last known address or usual place of residence; and
in the case of a person other than an individual,
leaving a copy of it at the person’s head office or place of business with an officer or other individual who appears to manage or be in control of the head office or place of business,
sending a copy of it by registered mail, courier or fax to the person’s head office or place of business, or
sending a copy of it by electronic means other than by fax to any individual referred to in subparagraph (i).
A document — other than a document that is personally served — is considered to be served
in the case of a copy that is left with an adult referred to in subparagraph (1)(a)(ii), on the day on which the document is left with the adult;
in the case of a copy that is sent by registered mail or courier, on the tenth day after the date indicated in the receipt issued by the postal or courier service; and
in the case of a copy sent by fax or other electronic means, on the day on which it is transmitted.
Coming into Force
These Regulations come into force on the day on which section 98 of the Jobs, Growth and Long-term Prosperity Act comes into force, but if they are registered after that day, they come into force on the day on which they are registered.[Note: Regulations in force July 3, 2013, see SI/2013-69.]
PART 1 Canadian Energy Regulator Act Column 1 Column 2 Column 3 Item Provision Short-form Description Classification 1 103(4) Failure to provide assistance Type B 2 179(1) Construction, operation or abandonment of a pipeline by a person other than a company Type B 3 180(1) Operation of a pipeline without a certificate and leave to open Type B 4 181(1) Failure to obtain required leave Type B 5 198(a) Begin construction of a pipeline without a certificate Type B 6 198(c) Begin construction of a pipeline without an approved plan, profile and book of reference Type B 7 211(1) Failure to submit for approval a plan, profile and book of reference Type B 8 213(1) Opening a pipeline or a section of a pipeline for transmission without leave Type B 9 217(1) Construction of a pipeline without a certificate or order Type B 10 218 Construction or operation of a pipeline without a certificate or order Type B 11 241(1) Abandonment of a pipeline without leave Type B 12 247 Construction or operation of an international power line without a permit or certificate Type B 13 265(a) Begin construction of an international or interprovincial power line without approval of a plan, profile and book of reference Type B 14 267 Construction or operation of an interprovincial or international power line without a permit or certificate Type B 15 273(1) Construction of a facility, or engaging in an activity that causes a ground disturbance, without authorization Type B 16 273(2) Operation of a vehicle or mobile equipment across an international or interprovincial power line in contravention of subsection 273(2) of the Act Type B 17 277(1) Abandonment of a designated international power line or interprovincial power line without leave Type B 18 314 Failure to do as little damage as possible in exercising the powers granted and to compensate all persons interested for damage sustained Type B 19 335(1) Unauthorized construction of a facility or engaging in an unauthorized activity that causes a ground disturbance Type B 20 335(2) Operation of a vehicle or mobile equipment across a pipeline in contravention of subsection 335(2) of the Act Type B 21 338(1) Working or prospecting for mines or minerals without authorization Type B PART 2 Canadian Energy Regulator Onshore Pipeline Regulations Item Column 1 Column 2 Column 3 Provision Short-form Description Classification 1 4 Failure to ensure that a pipeline is designed, constructed, operated or abandoned as prescribed Type B 2 5.1(1) Failure to submit prescribed documents for approval Type B 3[Repealed, SOR/2022-199, s. 9] 4 6.1 Failure to establish, implement and maintain a management system as prescribed Type B 5 6.2(1) Failure to appoint an accountable officer and to ensure that the management system is established, implemented and maintained as prescribed Type B 6 6.2(2) Failure to notify the Regulator as prescribed Type A 7 6.2(3) Failure to ensure that the accountable officer has authority as prescribed Type B 8 6.3(1) Failure to establish policies and goals as prescribed Type B 9 6.3(2) Failure to base the management system on established policies and goals as prescribed Type B 10 6.3(3) Failure of the accountable officer to prepare and communicate a policy statement as prescribed Type B 11 6.4 Failure to have an organizational structure as prescribed Type B 12 6.5 Failure to establish, develop, implement, maintain and document processes as prescribed Type B 13 6.6 Failure to complete an annual report and submit a statement as prescribed Type B 14 9 Failure to develop detailed designs of a pipeline and to submit them to the Regulator when required Type B 15 10(1) Failure to develop a documented risk assessment as prescribed Type B 16 10(2) Failure to submit a documented risk assessment to the Regulator when required to do so Type A 17 11 Failure to design and equip a station as prescribed Type B 18 12 Failure to equip a compressor station or pump station with an alternate source of power as prescribed Type B 19 13 Failure to locate, service or design a storage facility as prescribed Type B 20 14 Failure to develop prescribed specifications, and to submit them to the Regulator when required Type B 21 15 Failure to develop a quality assurance program as prescribed Type B 22 16 Failure to develop a joining program as prescribed, and to submit it to the Regulator when required Type B 23 17 Failure to examine each joint as prescribed Type B 24 18 Failure to contract for services as prescribed Type B 25 19(a) Failure to ensure that the construction activities do not create a hazard to the public or the environment Type B 26 19(b) Failure to inform persons of safety practices and procedures as prescribed Type B 27 20(1) Failure to develop a construction safety manual and to submit it to the Regulator Type B 28 20(1.1) Failure to set out responsibilities as prescribed Type B 29 20(2) Failure to keep a copy of the construction safety manual or relevant parts of it as prescribed Type B 30 21 Failure to restore the right-of-way and temporary work areas of a pipeline as prescribed Type B 31 22 Failure to ensure that there is no undue interference with the use of a utility or private road during the construction of a pipeline Type B 32 23 Failure to develop a pressure testing program as prescribed, and to submit it to the Regulator when required Type B 33 24 Conducting a pressure test without required permits Type B 34 25 Failure to perform pressure testing as prescribed Type B 35 26 Failure to minimize the number of welds that are not pressure-tested as prescribed Type B 36 27 Failure to develop, regularly review and update as required operation and maintenance manuals as prescribed and to submit them to the Regulator when required Type B 37 28 Failure to inform persons of practices and procedures and to make available to them the relevant portion of operation and maintenance manuals as prescribed Type B 38 29 Failure to contract for services as prescribed Type B 39 30(a) Failure to take reasonable steps to ensure that maintenance activities do not create a hazard to the public or the environment Type B 40 30(b) Failure to take reasonable steps to inform persons of safety and environmental protection practices and procedures as prescribed Type B 41 31(1) Failure to develop a maintenance safety manual and to submit it to the Regulator when required Type B 42 31(1.1) Failure to set out responsibilities as prescribed Type B 43 31(2) Failure to keep a copy of the maintenance safety manual or the relevant parts of it as prescribed Type B 44 32(1) Failure to develop, implement and maintain an emergency management program as prescribed Type B 45 32(1.1) Failure to develop, regularly review and update an emergency procedures manual Type B 46 32(2) Failure to submit to the Regulator the emergency procedures manual and any updates Type A 47 33 Failure to establish and maintain liaison as prescribed, and failure to consult as prescribed Type B 48 34 Failure to inform persons who may be associated with an emergency response activity as prescribed Type B 49 35 Failure to develop a continuing education program as prescribed Type B 50 36(a) Failure to maintain communication facilities as prescribed Type B 51 36(b) Failure to periodically test instruments and equipment as prescribed Type B 52 36(c) Failure to continually record as prescribed Type B 53 36(d) Failure to clearly mark valves as prescribed Type B 54 36(e) Failure to clearly mark valves as prescribed Type B 55 36(f) Failure to post signage as prescribed Type B 56 37 Failure to develop and implement a pipeline control system as prescribed Type B 57 38(1) Performing welding on a liquid-filled pipeline other than as prescribed Type B 58 38(2) Failure to treat weld as a temporary installation and replace that installation with a permanent one as soon as is practicable Type B 59 38(3) Failure to submit specifications, procedures and results for approval as prescribed Type B 60 39 Failure to develop a surveillance and monitoring program as prescribed Type B 61 40 Failure to develop, implement and maintain an integrity management program as prescribed Type B 62 41(1) Failure to document the particulars of a defect on a pipeline as prescribed Type B 63 41(2) Failure to submit the documentation in 41(1) when required Type A 64 42 Failure to submit a proposed plan as prescribed Type B 65 43 Failure to submit an application for a change or increase as prescribed Type B 66 44 Failure to submit an application for proposed deactivation as prescribed Type B 67 45 Failure to submit an application for reactivation as prescribed Type B 68 45.1 Failure to submit an application for decommissioning as prescribed Type B 69 46 Failure to develop and implement a training program as prescribed Type B 70 47 Failure to develop, implement and maintain a safety management program as prescribed Type B 71 47.1 Failure to develop, implement and maintain a security management program as prescribed Type B 71.1 47.2 Failure to develop, implement and maintain a damage prevention program as prescribed Type B 72 48 Failure to develop, implement and maintain an environmental protection program as prescribed Type B 73 51(a) Failure to notify as prescribed Type A 74 51(b) Failure to submit to the Regulator on request a crossing report as prescribed Type A 75 52(1) Failure to notify and submit a report to the Regulator as prescribed Type A 76 53(1) Failure to conduct inspections and audits as prescribed Type B 77 53(2) Failure to document the audit as prescribed Type B 78 54(1) Failure to inspect the construction of a pipeline as prescribed Type B 79 54(2) Performance of an inspection by a person who does not have sufficient expertise, knowledge and training to competently carry out the inspection Type B 80 55 Failure to conduct and document audits as prescribed Type B 81 56 Failure to retain records as prescribed Type A PART 3 Canadian Energy Regulator Processing Plant Regulations Item Column 1 Column 2 Column 3 Provision Short-form Description Classification 1 4(1) Failure to ensure that the company’s processing plant is designed, constructed, operated or abandoned as prescribed Type B 2 5 Failure to ensure that the company’s processing plant is designed, constructed, operated or abandoned as prescribed Type B 3 9 Failure to develop and submit to the Regulator the prescribed program Type B 4 10 Failure to develop, implement and maintain quality control and quality assurance programs as prescribed Type B 5 11 Failure to conduct a risk analysis as prescribed Type B 6 12 Failure to ensure that employees have required knowledge and training Type B 7 13 Failure to develop and implement a safety program as prescribed Type B 8 14 Failure to develop and implement an environmental protection program as prescribed Type B 9 15 Failure to contract for services as prescribed Type B 10 16 Failure to develop, implement and maintain detailed designs of its processing plant Type B 11 17 Failure to ensure that a processing plant is equipped with an emergency power source Type B 12 18 Failure to ensure that each tank, bullet, sphere or other container is designed, constructed and maintained as prescribed Type B 13 19 Failure to ensure that process equipment and flammable vapour sources are separated as prescribed Type B 14 20 Failure to ensure that process vessels and equipment are vented as prescribed Type B 15 21 Failure to equip all flare headers as prescribed Type B 16 22 Failure to ensure reliable fire suppression systems as prescribed Type B 17 23 Failure to equip a processing plant with systems as prescribed Type B 18 24 Failure to equip a processing plant with alarm devices as prescribed Type B 19 25 Failure to ensure that all pressure-relief piping and systems are designed and constructed as prescribed Type B 20 26(a) Failure to ensure construction does not create a detriment or hazard as prescribed Type B 21 26(b) Failure to inform persons at the construction site as prescribed Type B 22 26(c) Failure to inform persons on the work site as prescribed Type B 23 27(1) Failure to develop, implement and submit a construction safety manual Type B 24 27(2) Failure to keep a copy of the construction safety manual at the processing plant as prescribed Type B 25 28(1) Failure to ensure direct supervision of pressure tests as prescribed Type B 26 28(2) Failure to ensure the independence of the test supervisor as prescribed Type B 27 28(3) Failure to date and sign records Type B 28 29 Failure of the company to develop and implement a non-destructive weld examination program as prescribed Type B 29 30(1)(a) Failure to develop, implement, regularly review and update operations manuals as prescribed Type B 30 30(1)(b) Failure to keep a copy of the operations manuals as prescribed Type B 31 30(2) Failure to ensure that the operations manuals contain the prescribed procedures Type B 32 31(2) Failure to develop and implement a safe-work permit system as prescribed Type B 33 32 Failure to ensure that a processing plant is staffed as prescribed Type B 34 33(a) Failure to ensure maintenance activities do not create a detriment or hazard as prescribed Type B 35 33(b) Failure to inform persons at a maintenance site as prescribed Type B 36 34 Operation of equipment with a hazard-detection alarm or shutdown device bypassed or rendered inoperable Type B 37 35(a) Failure to develop, implement, regularly review and update an emergency procedures manual Type B 38 35(b) Failure to submit the emergency procedures manual as prescribed Type A 39 35(c) Failure to submit updates as prescribed Type A 40 36 Failure to establish and maintain liaison as prescribed and failure to consult as prescribed Type B 41 37 Failure to inform persons who may be associated with an emergency response activity as prescribed Type B 42 38 Failure to develop and implement a continuing educational program as prescribed Type B 43 39(a) Failure to maintain communication facilities as prescribed Type B 44 39(b) Failure to retain incident data as prescribed Type B 45 39(c) Failure to clearly mark valves as prescribed Type B 46 39(d) Failure to post signage as prescribed Type B 47 39(e) Failure to post signage as prescribed Type B 48 40(a) Failure to test hazard-detection devices as prescribed Type B 49 40(b) Failure to document and maintain prescribed records Type B 50 41 Failure to develop and implement a processing plant integrity program as prescribed Type B 51 42 Failure to notify of plant deactivation as prescribed Type A 52 43.1 Failure to submit an application for decommissioning as prescribed Type B 53 44 Failure to develop and implement a training program as prescribed Type B 54 45 Failure to ensure visitors are made familiar with the safety program as prescribed Type B 55 46 Failure to provide immediate notice of any incident and to submit prescribed reports Type B 56 47(a) Failure to notify of any hazard as prescribed Type A 57 47(b) Failure to provide a report as prescribed Type B 58 48 Failure to report burning as prescribed Type A 59 49(1.1) Failure to notify as prescribed Type A 60 50 Failure to prepare and keep current a report as prescribed Type B 61 51 Failure to regularly conduct balance analysis as prescribed Type B 62 52(1) Failure to conduct audits and inspections as prescribed Type B 63 52(2) Failure to document an audit as prescribed Type B 64 53 Failure to inspect as prescribed Type B 65 54 Failure to annually audit the competency of all employees as prescribed Type B 66 55 Failure to develop, implement and maintain a record retention and handling program Type A PART 4 Canadian Energy Regulator Pipeline Damage Prevention Regulations — Authorizations Item Column 1 Column 2 Column 3 Provision Short-form Description Classification 1 3 Failure to make a locate request as prescribed Type B 2 4 Failure to inform all persons as prescribed Type A 3 7(3) Failure to comply with any of the prescribed measures when undertaking the construction of a facility Type B 4 8 Failure to meet any of the obligations that relate to a facility Type B 5 9(2) Failure to comply with any of the prescribed measures with respect to the construction of an overhead line Type B 6 10(3) Failure to comply with any of the prescribed measures with respect to an activity that causes a ground disturbance within the prescribed area Type B PART 5 Canadian Energy Regulator Pipeline Damage Prevention Regulations — Obligations of Pipeline Companies Item Column 1 Column 2 Column 3 Provision Short-form Description Classification 1 2 Failure to be a member of a one-call centre when one exists within the geographical area where the pipeline company operates its pipeline Type B 2 3(1) Failure to inform the person that made a request within 10 working days after receiving a request Type A 3 4 Failure to provide information and all reasonable assistance as prescribed Type B 4 5 Failure to send comments to the Regulator as prescribed Type A 5 6(1)(a) Failure to inform, in writing, as prescribed Type B 6 6(1)(b) Failure to mark location of a pipe as prescribed Type B 7 6(1)(c) Failure to provide information as prescribed Type B 8 7 Failure to identify and notify of locations as prescribed Type B 9 8(a) Failure to carry out inspections that are necessary as prescribed Type B 10 8(b) Failure to inspect all exposed pipe prior to backfilling as prescribed Type B 11 9(1) Failure to notify the facility’s owner in writing of any deterioration as prescribed Type B 12 9(2) Failure to notify the Regulator in writing as prescribed Type A 13 10(2) Failure to notify the Regulator in writing of a suspension of consent Type A 14 11 Failure to report to the Regulator as prescribed Type A 15 12 Failure to keep records as prescribed Type A 16 13 Failure to make records and all other materials available to officers of the Regulator and other authorized persons and give them assistance as necessary to inspect the records as prescribed Type B 17 14 Failure to provide a list as prescribed Type A 18 15 Failure to develop and maintain guidelines as prescribed and to make them public Type B PART 6 International and Interprovincial Power Line Damage Prevention Regulations — Authorizations Column 1 Column 2 Column 3 Item Provision Short-form Description Classification 1 7 Failure to construct a facility as prescribed or failure to obtain authorization Type B 2 8 Failure to conduct a ground disturbance activity as prescribed or failure to obtain authorization Type B 3 10 Failure to construct a power line as prescribed Type B
Violations
Penalties Item Column 1 Column 2 Column 3 Gravity Level Type A Violation Type B Violation Individual Any Other Person Individual Any Other Person 1–3 or less$250$1,000$1,000$4,000 2–2$595$2,375$4,000$16,000 3–1$990$3,750$7,000$28,000 4 0$1,365$5,025$10,000$40,000 5 1$1,740$6,300$13,000$52,000 6 2$2,115$7,575$16,000$64,000 7 3$2,490$8,850$19,000$76,000 8 4$2,865$10,125$22,000$88,000 9 5 or more$3,000$12,000$25,000$100,000