CANADA OIL AND GAS OPERATIONS ACTCanada Oil and Gas Operations Administrative Monetary Penalties RegulationsP.C.2016-7320162
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Whereas, pursuant to subsection 15(1) of the Canada Oil and Gas Operations Acta, a copy of the proposed Canada Oil and Gas Operations Administrative Monetary Penalties Regulations, substantially in the annexed form, was published in the Canada Gazette, Part I, on July 11, 2015 and a reasonable opportunity was afforded to interested persons to make representations to the Minister of Natural Resources with respect to the proposed Regulations;R.S., c. O-7; S.C. 1992, c. 35, s. 2Therefore, His Excellency the Governor General in Council, on the recommendation of the Minister of Natural Resources and the Minister of Indian Affairs and Northern Development, pursuant to subsection 71.01(1)b of the Canada Oil and Gas Operations Acta, makes the annexed Canada Oil and Gas Operations Administrative Monetary Penalties Regulations.S.C. 2015, c. 4, s. 27DefinitionDefinition of ActIn these Regulations, Act means the Canada Oil and Gas Operations Act.Designated ProvisionsProvisions of Act and regulationsThe contravention of a provision of the Act or of a regulation made under the Act that is set out in column 1 of a Part of Schedule 1 is designated as a violation that may be proceeded with in accordance with sections 71.01 to 72.02 of the Act.Directions, requirements, decisions and ordersThe contravention of a direction, requirement, decision or order made under the Act is designated as a violation that may be proceeded with in accordance with sections 71.01 to 72.02 of the Act.Terms, conditions and requirementsThe contravention of a term, condition or requirement of an operating licence or authorization, or of an approval, leave or exemption granted, under the Act is designated as a violation that may be proceeded with in accordance with sections 71.01 to 72.02 of the Act.ClassificationProvisionsThe contravention of a provision that is set out in column 1 of a Part of Schedule 1 is a Type A or Type B violation as set out in column 2 of that Part.Directions, requirements, decisions, orders, terms and conditionsThe contravention of a direction, requirement, decision or order referred to in subsection 2(2) or of a term, condition or requirement referred to in subsection 2(3) is a Type B violation.PenaltiesPenaltyThe penalty for a violation with a total gravity value set out in column 1 of Schedule 2 is, in the case of a Type A violation, the corresponding amount set out in column 2 and, in the case of a Type B violation, the corresponding amount set out in column 3.Determination of total gravity valueThe total gravity value in respect of a violation is to be established byconsidering each of the criteria in column 1 of the table to this section;ascribing to each criterion an appropriate gravity value as set out in column 2, having regard to the circumstances of the violation (with a lower gravity value representing a lower level of gravity and a higher gravity value representing a higher level of gravity); andadding the values obtained.
TABLE
Column 1Column 2ItemCriteriaGravity Value1Whether the person who committed the violation was finally found or was considered to have committed a previous violation set out in a notice of violation issued by the National Energy Board, the Canada–Newfoundland and Labrador Offshore Petroleum Board or the Canada-Nova Scotia Offshore Petroleum Board0 to +22Whether the person derived any competitive or economic benefit from the violation0 to +23Whether the person made reasonable efforts to mitigate or reverse the violation’s effects-2 to +24Whether there was negligence on the person’s part0 to +25Whether the person provided all reasonable assistance to the National Energy Board with respect to the violation-2 to +26Whether the person, after becoming aware of the violation, promptly reported it to the National Energy Board-2 to +27Whether the person has taken any steps to prevent a recurrence of the violation-2 to +28For Type B violations, whether the violation was primarily related to a reporting or record-keeping requirement-2 to 09Whether the violation increased a risk of harm to people or the environment or a risk of waste0 to +3
Service of DocumentsManner of serviceThe service of a document that is authorized or required by section 71.06 or 71.5 of the Act is to be madeif the person to be served is an individual, byleaving a copy of it with that 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, orsending 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; andif the person to be served is not an individual, byleaving 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, orsending a copy of it by electronic means other than by fax to an officer or other individual referred to in subparagraph (i).Deemed serviceA document that is not personally served is considered to be servedin the case of a copy that is left with a person referred to in subparagraph (1)(a)(ii), on the day on which it is left with that person;in the case of a copy that is sent by registered mail or courier, on the 10th day after the date indicated in the receipt issued by the postal or courier service; andin the case of a copy sent by fax or other electronic means, on the day on which it is transmitted.Coming into ForceS.C. 2015, c. 4These Regulations come into force on the day on which section 27 of the Energy Safety and Security 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 February 27, 2016.](Subsections 2(1) and 3(1))Violations
PenaltiesColumn 1Column 2Column 3ItemTotal Gravity ValueType A ViolationType B ViolationIndividualAny Other PersonIndividualAny Other Person1-3 or less$250$1,000$1,000$4,0002-2$595$2,375$4,000$16,0003-1$990$3,750$7,000$28,00040$1,365$5,025$10,000$40,00051$1,740$6,300$13,000$52,00062$2,115$7,575$16,000$64,00073$2,490$8,850$19,000$76,00084$2,865$10,125$22,000$88,00095 or more$3,000$12,000$25,000$100,000