BILL NO. 43

1st Session, 58th General Assembly
Nova Scotia
49 Elizabeth II, 2000

Government Bill

Energy and Mineral Resources Conservation Act
Petroleum Resources Act
Pipeline Act
(amended)

The Honourable Gordon D. Balser
Minister responsible for the Petroleum Directorate

First Reading: April 14, 2000

(Explanatory Notes)

Second Reading: April 25, 2000

Third Reading: June 8, 2000 (WITH COMMITTEE AMENDMENTS)

Clauses 1 and 2 change the long and short titles of the Energy and Mineral Resources Conservation Act to remove references to minerals.

Clause 4 removes the regulation and ensuring of safe practices in exploration and the controlling of pollution and the ensuring of environmental protection in exploration from the purpose clause of the Energy and Mineral Resources Conservation Act since these functions are now carried out by the Department of Environment and the Department of Labour together with the Nova Scotia Utility and Review Board.

Clause 5 continues the Energy and Mineral Resources Conservation Board under the name Energy Resources Conservation Board.

Clause 6

(a) replaces references in the Energy and Mineral Resources Conservation Act to the former Board of Commissioners of Public Utilities with references to its successor; and

(b) removes a reference to the Gas Utilities Act.

Clause 7 replaces a reference in the Energy and Mineral Resources Conservation Act to the former Gas Utilities Act with a reference to its successor.

Subclause 8(1) removes from the Energy and Mineral Resources Conservation Act the authority of the Governor in Council to make regulations respecting safety standards in the exploration for and the development, production and transmission of energy and mineral resources since this is now the responsibility of the Department of Labour and the Nova Scotia Utility and Review Board.

Subclause 8(2) removes from the Energy and Mineral Resources Conservation Act a requirement that the Minister of the Environment review regulations made pursuant to that Act and make recommendations with respect to the regulations since environmental regulations are now made pursuant to the Environment Act.

Clause 9 removes minerals from the application of the Energy and Mineral Resources Conservation Act since minerals and mineral resources are now the responsibility of the Department of Natural Resources.

Clause 10

(a) removes from the Petroleum Resources Act a reference to the Department of Natural Resources and substitutes a reference to the Nova Scotia Petroleum Directorate; and

(b) transfers the general management and supervision of the Petroleum Resources Act from the Minister of Natural Resources to the member of the Executive Council designated as the Minister for the purpose of the Petroleum Resources Act.

Subclause 11(1)

(a) removes from the Petroleum Resources Act the power to make regulations imposing provisions for environmental protection in certain procedures, since this is now the responsibility of the Department of the Environment;

(b) makes an amendment to that Act that is necessary as a result of an amendment made to that Act by Clause 6; and

(c) adds to the regulation-making powers under that Act.

Subclause 11(2) removes from the Petroleum Resources Act a requirement that the Minister of the Environment review regulations made pursuant to that Act and make recommendations with respect to the regulations, since environmental regulations are now made pursuant to the Environment Act.

Clause 12

(a) removes from the definition of "installation" in the Pipeline Act a reference to any building or structure that houses or protects any equipment, apparatus, mechanism, machinery or instrument and replaces it with new wording to add any real or personal property that houses or protect these items or is associated therewith;

(b) limits the exclusion from the definition to refineries and now includes processing plants, manufacturing plants and marketing plants within the definition;

(c) transfers the powers and duties of the Minister under the Act from the Minister of Natural Resources to a member of the Executive Council designated as Minister for the purpose of the Act; and

(d) removes from the Pipeline Act a definition that is no longer necessary.

Clause 13 repeals a provision in the Pipeline Act that exempts from the application of that Act a pipeline at a facility that is within the jurisdiction of the Public Utilities Board (now the Utilities and Review Board) pursuant to the Gasoline and Fuel Oil Licensing Act and replaces it with a provision that exempts from the application of the Act a pipeline at a facility that is within the jurisdiction of the Department of the Environment pursuant to the Environment Act so that a pipeline that is within the jurisdiction of the Department of the Environment and that is already approved by that Department does not have to be also approved pursuant to the Pipeline Act.

Clause 14 removes from the Pipeline Act the power of the Energy Board to deal with the clean up and disposal of substances that have escaped from a pipeline, since the Department of the Environment is now responsible for dealing with escaped substances.

Subclause 15(1)

(a) removes from the Pipeline Act the power of the Governor in Council under that Act to make regulations respecting the following matters that are now the responsibility of the Department of the Environment and of the Department of Labour together with the Nova Scotia Utility and Review Board:

(i) the reporting and repair of leaks or breaks in a pipeline,

(ii) the protection of the environment and safety in the building and maintenance of pipelines in submarine areas, and

(iii) examinations and investigations by the Energy Board into matters relating to the control of pollution and conservation of the environment in the development, construction and operation of pipelines;

and

(b) adds to the regulation-making powers under the Pipeline Act.

Subclause 15(2) removes from the Pipeline Act a requirement that the Minister of the Environment review regulations made pursuant to that Act and make recommendations with respect to the regulations since environmental regulations are now made pursuant to the Environment Act.

Be it enacted by the Governor and Assembly as follows:

1 The title of Chapter 147 of the Revised Statutes, 1989, the Energy and Mineral Resources Conservation Act, is amended by striking out "and Mineral" in the second line.

2 Section 1 of Chapter 147 is amended by striking out "and Mineral" in the first line.

3 Clause 2(a) is amended by striking out "constituted pursuant to this Act" in the second and third lines.

4 Section 3 of Chapter 147 is amended by

(a) striking out "safe and" in the first line of clause (b); and

(b) striking out clause (c).

5 Section 6 of Chapter 147 is repealed and the following Section substituted:

6 The Energy and Mineral Resources Conservation Board is hereby continued as a body corporate under the name "Energy Resources Conservation Board" and consists of not more than seven members and such number of acting members as may from time to time be appointed.

6 (1) Subsection 11(1) of Chapter 147 is amended by striking out "Board of Commissioners of Public Utilities" in the second and third lines and substituting "Nova Scotia Utility and Review Board".

(2) Subsection 11(2) of Chapter 147 is amended by

(a) striking out ", the Gas Utilities Act" in the first and second lines and substituting "Gas Distribution Act"; and

(b) striking out "Board of Commissioners of Public Utilities" in the fifth and sixth lines and substituting "Nova Scotia Utility and Review Board".

7 Subsection 14(2) of Chapter 147 is amended by striking out "Gas Utilities Act" in the last line and substituting "Gas Distribution Act".

8 (1) Clause 29(1)(p) of Chapter 147 is amended by striking out "safety and" in the first line.

(2) Subsection 29(2) of Chapter 147 is repealed.

9 Chapter 147 is further amended by striking out "and Mineral", "and mineral" and "or mineral" wherever they appear in Chapter 147.

10 Section 2 of Chapter 342 of the Revised Statutes, 1989, the Petroleum Resources Act, is amended by

(a) striking out clause (b) and substituting the following clause:

(b) "Directorate" means the Nova Scotia Petroleum Directorate;

and

(b) striking out clause (d) and substituting the following clause:

(d) "Minister" means the member of the Executive Council designated as the Minister for the purpose of this Act;

11 (1) Subsection 27(1) of Chapter 342 is amended by

(a) striking out ", environmental protection" in the fourth and fifth lines of clause (d);

(b) striking out "Department or in any other departments" in the third and fourth lines of clause (r) and substituting "Directorate or in any department of the public service"; and

(c) adding immediately after clause (z) the following clauses:

(za) respecting fees and financial security for permits, licences, agreements and leases and other approvals issued pursuant to this Act;

(zb) respecting cost recovery for services provided by the Minister, the Directorate or persons to whom are delegated any duty, power or authority pursuant to subsection 3(2);

(zc) respecting the appointment of inspectors and cost recovery for services provided by inspectors and the inspection of geophysical operations, wells and petroleum facilities;

(zd) respecting geophysical operations;

(ze) respecting the economic, orderly and efficient development of energy resources, including the construction, location and establishment of equipment, buildings, structures, wharves, docks and support facilities related to energy;

(zf) respecting the prohibition against drilling wells to explore for, develop or produce petroleum without a permit, licence or approval;

(zg) respecting permits, licences or approvals to drill wells and the terms and conditions of permits, licences and approvals, including the designation, identification, location, design, equipment, construction, operation, maintenance and abandonment of wells and associated structures;

(zh) respecting the most efficient methods for the production of energy resources, including enhanced recoveries;

(zi) respecting the adoption, incorporation or constituting as regulations, in whole or in part, of any relevant codes, rules or standards, as amended from time to time, prepared and published by the Canadian Standards Association or any similar association, with or without any modification or amendment;

(2) Subsection 27(4) of Chapter 342 is repealed.

12 Subsection 3(1) of Chapter 345 of the Revised Statutes, 1989, the Pipeline Act, is amended by

(a) striking out subclause (e)(ii) and substituting the following subclause:

(ii) any building, structure, real or personal property and works that houses or protects anything referred to in clause (i) or that is used for any activity referred to in clause (i),

(b) striking out all that portion of clause (e) immediately following "refinery" in the second last line to the end of the clause and substituting a semicolon;

(c) striking out clause (h) and substituting the following clause:

(h) "Minister" means the member of the Executive Council designated as the Minister for the purpose of this Act;

and

(d) repealing clause (m).

13 Clause 5(d) of Chapter 345 is repealed and the following clause substituted:

(d) a pipeline that is covered by an approval issued by the Department of the Environment pursuant to the Environment Act;

14 (1) Subsection 24(1) of Chapter 345 is amended by striking out all that portion of subsection (1) immediately after "reporting" in the fourth line to the end of the subsection and substituting "and the repair of the leak or break".

(2) Subsection 24(2) of Chapter 345 is amended by

(a) striking out "and clean up" in the third line;

(b) striking out "and clean up" in the third line of clause (a); and

(c) striking out "and clean up" in the fourth and fifth lines of clause (b).

15 (1) Subsection 44(1) of Chapter 345 is amended by

(a) striking out ", and the clean up and disposal of any substance that escapes from a pipeline" in the second, third and fourth lines of clause (m);

(b) striking out all that portion of clause (o) immediately after "land" in the second last line to the end of the clause and substituting a semicolon;

(c) striking out "control of pollution and conservation of the environment in" in the third and fourth lines of clause (s); and

(d) adding immediately after clause (w) the following clauses:

(wa) fees and financial security for permits, licences or other approvals;

(wb) cost recovery for services rendered pursuant to this Act by the Energy Board or persons delegated by the Energy Board;

(wc) the appointment of inspectors and the inspection and certification of pipelines and installations during and after their construction and persons by whom the costs are borne;

(wd) the adoption, incorporation or constituting as regulations, in whole or in part, of any relevant codes, rules or standards, as amended from time to time, prepared and published by the Canadian Standards Association or any similar association, with or without any modification or amendment;

(2) Subsection 44(2) of Chapter 345 is repealed.