Regulatory Update from Nimonik
The Bill’s stated goal is to “strengthen the safety and security of pipelines regulated by those Acts.” The proposed amendments would increase pipeline companies’ liability and establish a pipeline claims tribunal.
Specifically, the proposed amendments would:
- Establish the minimum liability for pipeline companies in the event of a spill, when there is no proof of fault or negligence. Large pipeline companies, who can transport at least 250,000 barrels per day, will be liable for a minimum of $1 billion. Future regulations will set the minimum liability for other companies.
- Establish unlimited liability for all pipeline companies in the event of a spill, when there is proof of fault or negligence.
- Require companies to hold sufficient financial resources to pay their liability. Companies may be required to hold certain types of readily-accessible resources.
- Provide for the establishment of a pipeline claims tribunal under certain circumstances.
- Make pipeline companies liable for abandoned pipelines.
- Give the National Energy Board (NEB) the authority to regulate facilities and excavations near power lines and pipelines. Violaters of NEB orders and regulations could be fined up to $1 million.
The proposed amendments are expected to receive royal assent in the near future. The proposed amendments would come into force one year after royal assent.
For more information about Bill C-46, including its status in Parliament, the full text of the Bill, and the Legislative Summary, please click here.
To read a backgrounder about the Bill, please click here.
Legal and other requirements are constantly changing. Laws, regulations, codes, statutes and standards are a moving target and and their applicability to your operations can be complex. Responsible managers must stay on top of any changes that require attention. For more information visit Nimonik