Summary of the 2020 Amendments made to the Onshore Pipeline Regulations

  • On 28 August 2019, the Canada Energy Regulator Act (CER Act) replaced the National Energy Board Act (NEB Act). As a result, name and term changes were required for several regulations that fall under the CER Act. One of these regulations was the National Energy Board Onshore Pipeline Regulations (OPR). Amendments to the OPR were made through sections 14 to 30 of the Regulations Amending Certain Regulations Made Under the National Energy Board Act (Miscellaneous Program), SOR/2020-50 (Amending Regulations), which was published in the Canada Gazette, Part II on 1 April 2020.
  • Several non-substantial amendments were included in the Amending Regulations in response to the Standing Joint Committee on the Scrutiny of Regulations (SJCSR) 2013 review of the Regulations Amending the Onshore Pipeline Regulations, 1999, SOR/2013-49.
  • The bolded and blue text in the table below show the sections of the OPR that were changed through the Amending Regulations. A brief description of each change, as provided in the Regulatory Impact Analysis Statement which appeared with the Amending Regulations in Canada Gazette, Part II, is provided for reference.
  • The consolidated version of the Canadian Energy Regulator Onshore Pipeline Regulations is available on the Department of Justice website.
Summary of the 2020 Amendments made to the Onshore Pipeline Regulations

Item

Section Change

OPR (*new text under CER Act*)

OPR (*previous text under the NEB Act*)

Description

SJCSR Amendments

A.

Section 6 of the Regulations is replaced by the following:

6 The purpose of these Regulations is to require and enable a company to design, construct, operate or abandon a pipeline in a manner that ensures

(a) the safety and security of persons;

(b) the safety and security of pipelines and abandoned pipelines; and

6 When a company designs, constructs, operates or abandons a pipeline, it shall do so in a manner that ensures

(a) the safety and security of the public and the company’s employees;

(b) the safety and security of the pipeline; and

This general provision was restated as a purpose statement, and aligned with terminology in the CER Act.

B.

(1) Paragraphs 6.1(a) and (b) of the Regulations are replaced by the following

6.1 (a) is explicit, comprehensive and proactive;

(b) integrates the company’s operational activities and technical systems with its management of human and financial resources;

6.1 (a) is systematic, explicit, comprehensive and proactive;

(b) integrates the company’s operational activities and technical systems with its management of human and financial resources to enable the company to meet its obligations under section 6;

The word “systematic” is not needed, as a management system is by definition systematic.

The reference to section 6 in paragraph 6.1(b) was removed and not replaced because the requirement for integration between operations, technical systems and human resources is related to the requirement in section 6.1 for a company to establish, implement and maintain a management system; therefore, referencing the amended section 6 is not necessary.

C.

Section 6.1 of the Regulations is renumbered as subsection 6.1(1) and is amended by adding thefollowing:

6.1(2) A company shall establish its management system within 90 days after the day on which the certificate or order authorizing it to construct or operate a pipeline is issued under the Act.

6.1 A company shall establish, implement and maintain a management system that

This section is amended to clarify that a management system must be in place within 90 days after the date the Commission issues a certificate or order authorizing the construction or operation of a pipeline under the CER Act. This timeframe allows the company to conduct the coordination and communication needed to implement a functioning management system.

D.

(1) Subsection 6.2(1) of the Regulations is replaced by the following:

6.2 (1) The company shall appoint an officer as accountable officer to ensure that its management system and the programs referred to in section 55 are established, implemented and maintained in accordance with section 6.1, this section and sections 6.3 to 6.6 and that its obligations under these Regulations are met.

6.2 (1) The company shall appoint an officer as accountable officer to ensure on its behalf that its management system and the programs referred to in section 55 are established, implemented and maintained in accordance with section 6.1, this section and sections 6.3 to 6.6 and that its obligations under section 6 are met.

As it is apparent the accountable officer is acting for the company in carrying out his or her duties, the phrase “on its behalf” is not required.

Since section 6 is amended, references to a company meeting its obligations “under section 6” are amended to “under these Regulations”.

E.

Paragraph 6.2(3)(b) of the Regulations is replaced by the following:

6.2(3)(b) ensure that the company’s activities are carried out in a manner that enables it to meet its obligations under these Regulations.

6.2(3)(b) ensure that the company’s activities are carried out in a manner that enables it to meet its obligations under section 6.

Since section 6 is amended, references to a company meeting its obligations “under section 6” are amended to “under these Regulations”.

F.

The portion of subsection 6.3(1) of the Regulations before paragraph (b) is replaced by the following:

6.3 (1) The company shall establish documented policies and goals to ensure that the purposes referred to in paragraphs 6(a) to (c) are achieved and that its obligations under these Regulations are met. The policies and goals shall include

(a) a policy for the internal reporting of hazards, potential hazards, incidents and near-misses that includes the circumstances, in addition to those set out in the Canada Labour Code, under which a person who makes a report will be immune from disciplinary action; and

6.3 (1) The company shall establish documented policies and goals for meeting its obligations under section 6, including

(a) a policy for the internal reporting of hazards, potential hazards, incidents and near-misses that includes the conditions under which a person who makes a report will be granted immunity from disciplinary action; and

Since section 6 is amended, references to a company meeting its obligations “under section 6” are amended to “under these Regulations”.

(a) This paragraph is amended to clarify that a company’s internal reporting policy sets the circumstances, in addition to those set out in the Canada Labour Code, under which a person making such a report will be immune from disciplinary action.

G.

(1) Paragraph 6.4(a) of the Regulations is replaced by the following:

6.4 (a) meet the requirements of the management system and meet its obligations under these Regulations;

6.4 (a) meet the requirements of the management system and meet its obligations under section 6;

Since section 6 is amended, references to a company meeting its obligations “under section 6” are amended to “under these Regulations”.

H.

Paragraph 6.4(c) of the Regulations is replaced by the following:

6.4 (c) demonstrate, based on an annual documented evaluation of need, that the human resources allocated to establishing, implementing and maintaining the management system are sufficient to meet the requirements of the management system and to meet the company’s obligations under these Regulations.

6.4 (c) demonstrate, based on an annual documented evaluation of need, that the human resources allocated to establishing, implementing and maintaining the management system are sufficient to meet the requirements of the management system and to meet the company’s obligations under section 6.

Since section 6 is amended, references to a company meeting its obligations “under section 6” are amended to “under these Regulations”.

I.

Paragraph 6.5(1)(b) of the English version of the Regulations is replaced by the following:

6.5 (1)(b) develop performance measures for evaluating the company’s success in achieving its goals, objectives and targets;

6.5 (1)(b) develop performance measures for assessing the company’s success in achieving its goals, objectives and targets;

The English version of paragraph 6.5(1)(b) is amended to replace the word “assessing” with “evaluating” to be consistent with the wording used in paragraph 6.5(1)(v) of the English version and in paragraph 6.5(1)(x) of the French version.

J.

Paragraphs 6.5(1)(e) and (f) of the Regulations are replaced by the following:

6.5 (1)(e) establish and implement a process for evaluating the risks associated with the identified hazards and potential hazards, including the risks related to normal and abnormal operating conditions;

(f) establish and implement a process for developing and implementing controls to prevent, manage and mitigate the identified hazards, potential hazards and risks and for communicating those controls to anyone who is exposed to the risks;

6.5(1)(e) establish and implement a process for evaluating and managing the risks associated with the identified hazards, including the risks related to normal and abnormal operating conditions;

(f) establish and implement a process for developing and implementing controls to prevent, manage and mitigate the identified hazards and the risks and for communicating those controls to anyone who is exposed to the risks;

6.5(1)(e) This amendment clarifies the objective of requiring a company to establish and implement a process to evaluate risk, which is a first step in addressing risk once the hazards are identified. Paragraph 6.5(1)(f) provides the steps associated with the management of risks, once they are evaluated.

(f) The “potential hazards” were added to reflect the wording in paragraphs 6.5 (c) and (d).

K

Paragraph 6.5(1)(n) of the Regulations is replaced by the following:

6.5 (1)(n) establish and implement a process for identifying the documents required for the company to meet its obligations under these Regulations;

6.5 (1)(n) establish and implement a process for identifying the documents required for the company to meet its obligations under section 6;

Since section 6 is amended, references to a company meeting its obligations “under section 6” are amended to “under these Regulations”.

L

Paragraph 6.5(1)(v) of the Regulations is replaced by the following and 6.5(1)(v) of the French Version was replaced by the following:

6.5 (1)(v) establish and implement a process for evaluating the adequacy and effectiveness of the company’s management system and for monitoring, measuring and documenting the company’s performance in meeting its obligations under these Regulations;

FR: v) d’établir et de mettre en oeuvre un processus pour évaluer le caractère adéquat et l’efficacité du système de gestion de la compagnie et pour surveiller, mesurer et documenter le rendement de la compagnie en ce qui a trait au respect des obligations prévues au présent règlement;

6.5(1)(v) establish and implement a process for evaluating the adequacy and effectiveness of the company’s management system and for monitoring, measuring and documenting the company’s performance in meeting its obligations under section 6;

FR: v) d’établir et de mettre en oeuvre un processus pour évaluer le caractère adéquat et l’efficacité du système de gestion de la compagnie et pour surveiller, mesurer et documenter le rendement de la compagnie en ce qui a trait aux obligations prévues à l’article 6;

6.5 (1)(v) Since section 6 is amended, references to a company meeting its obligations “under section 6” are amended to “under these Regulations”.

6.5 (1)(v) FR: These changes were made for consistency, to reflect the wording used in the French version of paragraph 6.5(1)(x) and the English version of paragraph 6.5(1)(v).

M.

Paragraph 6.5(1)(x) of the Regulations is replaced by the following and 6.5(1)(x) of the French Version was replaced by the following:

6.5 (x) establish and implement a process for conducting an annual management review of the management system and each program referred to in section 55 and for ensuring continual improvement in meeting the company’s obligations under these Regulations.

FR: x) d’établir et de mettre en oeuvre un processus permettant de procéder à des examens de gestion annuels du système de gestion et de chacun des programmes visés à l’article 55 et de veiller à l’amélioration continue en ce qui a trait au respect des obligations de la compagnie prévues au présent règlement.

6.5 (x) establish and implement a process for conducting an annual management review of the management system and each program referred to section 55 and for ensuring continual improvement in meeting the company’s obligations under section 6.

FR: x) d’établir et de mettre en oeuvre un processus permettant de procéder à des examens de gestion annuels du système de gestion et de chacun des programmes visés à l’article 55 et de veiller à l’amélioration continue en ce qui a trait au respect des obligations prévues à l’article 6.

6.5 (x) Since section 6 is amended, references to a company meeting its obligations “under section 6” are amended to “under these Regulations”. The word “in” was added in the English version.

FR x): For consistency, the words “de la compagnie” were amended to reflect the wording used in the French version of paragraph 6.5(1)(v) and the English version of paragraph 6.5(1)(x).

N.

Paragraphs 6.5(1)(j), (k) and (q) of the Regulations are amended by replacing “security” with “safety and security”.

6.5(1)(j) establish and implement a process for developing competency requirements and training programs that provide employees and other persons working with or on behalf of the company with the training that will enable them to perform their duties in a manner that is safe, ensures the safety and security of the pipeline and protects the environment;

(k) establish and implement a process for verifying that employees and other persons working with or on behalf of the company are trained and competent and for supervising them to ensure that they perform their duties in a manner that is safe, ensures the safety and security of the pipeline and protects the environment;

(q) establish and implement a process for coordinating and controlling the operational activities of employees and other people working with or on behalf of the company so that each person is aware of the activities of others and has the information that will enable them to perform their duties in a manner that is safe, ensures the safety and security of the pipeline and protects the environment;

6.5(1)(j) establish and implement a process for developing competency requirements and training programs that provide employees and other persons working with or on behalf of the company with the training that will enable them to perform their duties in a manner that is safe, ensures the security of the pipeline and protects the environment;

(k) establish and implement a process for verifying that employees and other persons working with or on behalf of the company are trained and competent and for supervising them to ensure that they perform their duties in a manner that is safe, ensures the security of the pipeline and protects the environment;

(q) establish and implement a process for coordinating and controlling the operational activities of employees and other people working with or on behalf of the company so that each person is aware of the activities of others and has the information that will enable them to perform their duties in a manner that is safe, ensures the security of the pipeline and protects the environment;

These amendments reflect the wording used in section 6 which refers to the “safety and security” of the pipeline.

O.

Paragraphs 6.6(1)(a) and (b) of the Regulations are replaced by the following:

6.6 (1) (a) the company’s performance in achieving its goals, objectives and targets during that year, as evaluated by the performance measures developed under paragraph 6.5(1)(b);

(b) the adequacy and effectiveness of the company’s management system, as evaluated by the process established and implemented under paragraph 6.5(1)(v); and

(c) the actions taken during that year to correct any deficiencies identified by the quality assurance program established under paragraph 6.5(1)(w).

6.6 (1) (a) the performance of the company’s management system in meeting its obligations under section 6 and the company’s achievement of its goals, objectives and targets during that year, as measured by the performance measures developed under paragraphs 6.5(1)(b) and (v); and

(b) the actions taken during that year to correct any deficiencies identified by the quality assurance program established under paragraph 6.5(1)(w).

This amendment clarifies that the report is to describe the company’s performance in achieving the goals, objectives and targets it set through its management system.

A new paragraph 6.6(1)(b) has been added to clarify that the report must also describe the adequacy and effectiveness of the company’s management system.

The original paragraph 6.6(1)(b) has been renumbered as 6.6(1)(c) and remains unchanged.

P.

Section 47 of the French Version of the Regulations is replaced by the following:

47 La compagnie établit, met en œuvre et maintient un programme de gestion de la sécurité qui permet de prévoir, de prévenir, de gérer et d’atténuer les conditions potentiellement dangereuses et l’exposition à de telles conditions pendant les activités liées à la construction, à l’exploitation, à l’entretien, à la cessation d’exploitation ainsi qu’aux situations d’urgence.

47 La compagnie établit, met en oeuvre et maintient un programme de gestion de la sécurité qui permet de prévoir, de prévenir, de gérer et d’atténuer les conditions potentiellement dangereuses et l’exposition à de telles conditions pendant les activités de construction, d’exploitation, d’entretien, de cessation d’exploitation ainsi que celles relatives aux situations d’urgence.

These amendments clarify that the listed activities in French can be related to all activities relating to construction, operation, maintenance, abandonment and emergency situations. These changes ensure that the French and English versions are aligned.

Other Amendments (Name, term and section changes)

Q.

The title of the National Energy Board Onshore Pipeline Regulations is replaced by the following:

Canadian Energy Regulator Onshore
Pipeline Regulations

National Energy Board Onshore Pipeline Regulations

This is a title change to align with the CER Act.

R.

The definitions Act and inspection officer in section 1 of the Regulations are replaced by the following:

Act means the Canadian Energy Regulator Act. (Loi)

inspection officer means an inspection officer desiganted by the Chief Executive Officer under section 102 of the Act. (inspecteur)

Act means the National Energy Board Act. (Loi)

inspection officer means an inspection officer designated by tction officer means an inspection officer designated by the Board under section 49 of the Act. (inspecteur)

This is a title change to align with the CER Act.

This change reflects the designating authority identified in the CER Act.

S.

Section 1 of the Regulations is amended by adding the following:

Commission means the Commission referred to in subsection 26(1) of the Act. (Commission)

N/A

This change was made to align with the terminology used in the CER Act.

T.

Section 2.1 of the Regulations is replaced by the following:

2.1 These Regulations do not apply in respect of a hydrocarbon processing plant that is subject to the Canadian Energy Regulator Processing Plant Regulations.

2.1 These Regulations do not apply in respect of a hydrocarbon processing plant that is subject to the National Energy Board Processing Plant Regulations.

This is a title change to align with the CER Act.

U.

Section 47.2 of the Regulations is replaced by the following:

47.2 A company shall develop, implement and maintain a damage prevention program that anticipates, prevents, manages and mitigates damage to its pipeline and meets the requirements set out in section 16 of the Canadian Energy Regulator Pipeline Damage Prevention Regulations – Obligations of Pipeline Companies.

47.2 A company shall develop, implement and maintain a damage prevention program that anticipates, prevents, manages and mitigates damage to its pipeline and meets the requirements set out in section 16 of the National Energy Board Pipeline Damage Prevention Regulations – Obligations of Pipeline Companies.

This is a title change to align with the CER Act.

V.

Section 50 of the Regulations is amended by replacing “74” with “241”.

50 A company shall include in an application made under section 241 of the Act for leave to abandon a pipeline or part of one the reasons, and the procedures that are to be used, for the abandonment.

50 A company shall include in an application made under section 74 of the Act for leave to abandon a pipeline or part of one the reasons, and the procedures that are to be used, for the abandonment.

This change was made to align with the CER Act.

W.

1) Paragraph 53(1)(a) of the Regulations is amended by replacing “Part III” with “Parts 2 and 3”

(a) Part 2 and 3 of the Act;

(a) Part III of the Act;

This change was made to align with the CER Act.

X.

Paragraph 53(1)(b) of the Regulations is replaced by the following:

(b) Part 6 of the Act as it relates to the safety and security of persons and for the protection of property and the environment;

(b) Part V of the Act, as it relates to the protection of property and the environment and the safety and security of the public and of the company’s employees;

This change was made to align with the CER Act.

Y.

Paragraph 53(1)(d) of the Regulations is replaced by the following:

(d) the terms and conditions of any certificate or order issued by the Commission, as it relates to the safety and security of persons and for the protection of property and the environment.

(d) the terms and conditions of any certificate or order issued by the Board, as they relate to the protection of property and the environment and the safety of the public and of the company’s employees.

This change was made to align with the CER Act.

Z.

The Regulations are amended by replacing
“Board” with “Regulator” in the following provisions:

(a) the definition incident in section 1;
(b) subsection 6.2(2);
(c) subsection 6.6(2);
(d) section 9;
(e) subsection 10(2);
(f) section 14;
(g) section 16;
(h) subsection 20(1);
(i) section 23;
(j) section 27;
(k) subsection 31(1);
(l) subsection 32(2);
(m) subsection 41(2);
(n) section 42;
(o) section 51; and
(p) subsection 52(1).

N/A

“Regulator” is used when referring to the organization or its administrative functions.

AA.

The Regulations are amended by replacing “Board” with “Commission” in the following provisions:

(a) section 5;
(b) section 5.1;
(c) paragraph 11(d);
(d) subsection 38(3);
(e) section 43;
(f) subsection 44(1);
(g) subsection 45(1);
(h) subsection 45.1(1);
(i) section 49 and the heading before it; and
(j) subsection 54(1).

N/A

“Commission” is used where any formal application is required, or for approvals, or to exercise an authority provided in the CER Act.

Date modified: