Energy Administration Act

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• 1Short title

  This Act may be cited as the Energy Administration Act.

• 2Definitions
• 2(1)

  In this Act,

• 2(1)[p3]Repealed

  Board[Repealed, 2019, c. 28, s. 87]

• 2(1)[p4]

  gas means any hydrocarbon or mixture of hydrocarbons that, at a temperature of 15°C and a pressure of 101.325 kPa, is in a gaseous state; (gaz)

• 2(1)[p5]

  hydrocarbon does not include coal; (hydrocarbure)

• 2(1)[p6]

  Minister means the Minister of Natural Resources; (ministre)

• 2(1)[p7]

  natural reservoir in Canada includes a natural reservoir situated in the offshore area as defined in section 20; (réservoir naturel au Canada)

• 2(1)[p8]

  oil means any hydrocarbon or mixture of hydrocarbons other than gas and includes an oil product; (pétrole)

• 2(1)[p9]

  oil product means any product designated as an oil product by regulations made under section 15. (produit pétrolier)

• 2(1)[p10]

  Regulator means the Canadian Energy Regulator. (Régie)

• 2(2)Adoption of Excise Tax Act preserved from 1985 amendments

  Any reference in subsection 10(2), section 13, subsection 60(2) or section 63 to the Excise Tax Act or a provision thereof shall be construed as a reference to the Excise Tax Act or the provision thereof, as it read immediately before the first day of the second month following the month during which an Act entitled An Act to amend the Excise Tax Act and the Excise Act and to amend other Acts in consequence thereof, chapter 7 of the 2nd Supplement to the Revised Statutes of Canada, was assented to.

• 3Binding on Her Majesty

  This Act is binding on Her Majesty in right of Canada or a province.

• 4Definitions
• 4(1)

  In this Part,

• 4(1)[p15]

  export means

• 4(1)[p15](a)

  subject to paragraph (b), where oil is transported by pipeline, to deliver it at its point of delivery outside Canada,

• 4(1)[p15](b)

  where oil is transported by pipeline from the offshore area as defined in section 20, to deliver it at its point of delivery outside that area and Canada, and

• 4(1)[p15](c)

  where oil is transported by any other means, to send it

• 4(1)[p15](c)(i)

  from Canada other than to export it within the meaning of subsection 16(1), or

• 4(1)[p15](c)(ii)

  to a place outside Canada from the offshore area as defined in section 20; (exporter)

• 4(1)[p21]

  exporter means a person holding a licence; (exportateur)

• 4(1)[p22]

  licence means a licence or other authorization that is issued under Part 7 of the Canadian Energy Regulator Act and that permits the export of oil under that Act. (licence)

• 4(2)Calculation for pipeline traffic

  For the purpose of calculating the number of cubic metres of oil exported at any place by pipeline during a period in which a specified charge applies to that exportation, the period shall be deemed to commence at seven o’clock local time in the forenoon of the day on which that charge is imposed and to end at seven o’clock local time in the forenoon of the day on which the charge is varied.

• 5Charge on oil
• 5(1)

  There shall be imposed, levied and collected on each cubic metre of oil exported in any month or part of a month a charge in such amount not exceeding three hundred and fifty dollars per cubic metre as may be prescribed in a tariff of charges for that month or part of a month made by order of the Governor in Council on the recommendation of the Minister and the Minister of Finance.

• 5(2)Tariff of charges

  A tariff of charges on oil may set out the charge applicable in respect of any or all of the various kinds or qualities of oil, oil from any source, any or all destinations for oil and such other factors or circumstances as are specified in the tariff.

• 5(3)Tariff continues

  Where a tariff of charges on oil is prescribed in respect of any month or part of a month under subsection (1), that tariff of charges shall continue in respect of each subsequent month until changed pursuant to subsection (1) by order of the Governor in Council in respect of a subsequent month or part of a month.

• 6By whom charge payable
• 6(1)

  A charge imposed under this Part on the exportation of oil is payable to the Minister by the exporter under whose licence the oil is purported to be exported.

• 6(2)Liability

  A person who exports oil on which a charge is imposed under this Part in circumstances in which there is no exporter who is liable under this Part to pay that charge is liable to pay that charge.

• 7Chief Executive Officer of the Regulator

  The Chief Executive Officer of the Regulator administers and enforces this Part on behalf of the Minister and collects the charges imposed under it and, on the request of the Minister, provides him or her with advice and information in respect of exemptions or reductions under subsection 8(1).

• 8Exemption or reduction
• 8(1)

  Where it is shown to the Governor in Council by the Minister that it is in the public interest to do so, the Governor in Council may, by order, conditionally or unconditionally, retroactively or prospectively, and either generally or in respect of a single transaction,

• 8(1)(a)

  exempt any exportation of oil from the charge imposed thereon in respect of any month or part of a month under this Part; or

• 8(1)(b)

  reduce any charge imposed in respect of any month or part of a month on the exportation of oil under this Part.

• 8(2)Exemption and reduction to be reported in Public Accounts

  A statement of each exemption or reduction of one thousand dollars or more ordered pursuant to this section shall be reported to the House of Commons in the Public Accounts.

• 9Monthly return of export sales
• 9(1)

  Every person who is required by this Part to pay a charge shall make each month a true return of his exports of oil for the last preceding month in such form and containing such information as the regulations require.

• 9(2)Date of filing and payment

  The return required by subsection (1) shall be filed with the Regulator and the charge payable shall be paid to it not later than the last day of the first month succeeding that in which the exports were made.

• 9(3)Penalty on default

  On default in payment of the charge or any portion thereof payable under this Part within the time prescribed by subsection (2), there shall be paid in addition to the amount of the default a penalty equal to the greater of in respect of each month or part of a month during which the default continues.

• 9(3)(a)

  one per cent of the amount of default, and

• 9(3)(b)

  the percentage, if any, prescribed by regulations made under section 15, of the amount of default,

• 9(4)Extension of time

  The Commission of the Regulator may, before or after the day prescribed by subsection (2), specify in writing a later day for the filing of a return or the payment of the charge or any portion thereof; and when the Commission of the Regulator has specified a later day

• 9(4)(a)

  no penalty shall accrue or shall be deemed to have accrued under subsection (3) prior to that later day in respect of default in payment of the charge or portion thereof for the payment of which the later day was specified; and

• 9(4)(b)

  failure to pay, on or before the later day, the charge or portion thereof for the payment of which a later day was specified constitutes a default for the purposes of subsection (3).

• 10Debts to Her Majesty
• 10(1)

  All charges payable under this Part and any penalties payable in respect thereof are debts due to Her Majesty and recoverable as such in any court of competent jurisdiction.

• 10(2)Recovery of charges and penalties

  All charges and penalties payable under this Part may be recovered in the same manner as any amount payable under the Excise Tax Act and for that purpose sections 82 to 93 of that Act apply with any modifications that the circumstances require and any reference to the Minister or Deputy Minister in those sections is to be construed as a reference to the Chief Executive Officer of the Regulator, as the case may be.

• 11Deductions and refunds
• 11(1)

  A deduction from, or refund of, the charges imposed by this Part may be granted

• 11(1)(a)

  where an overpayment has been made by the exporter; or

• 11(1)(b)

  where the charge was paid in error.

• 11(2)Application for refund

  No deduction from, or refund of, the charges imposed by this Part shall be paid unless application therefor is made in writing by the person entitled thereto within two years after the time when the deduction or refund first became payable under this Part or any regulations made thereunder.

• 11(3)Refund of moneys paid by mistake

  If any person, whether by mistake of law or fact, has paid or overpaid to Her Majesty any moneys that have been taken to account as charges imposed by this Part, those moneys shall not be refunded unless application therefor has been made in writing within two years after the moneys were paid or overpaid.

• 12Records and books
• 12(1)

  Every person required by or pursuant to this Part to pay any charges shall keep records and books of account at his place of business in Canada in such form and containing such information as will enable the amount of the charges or other sums that should have been paid or collected to be determined.

• 12(2)Keeping of records and books of account

  Every person required by subsection (1) to keep records and books of account shall retain those records and books of account and every account and voucher necessary to verify the information contained therein until the expiration of six years from the end of the calendar year in respect of which those records and books of account are kept.

• 12(3)Inspection

  Every person required by subsection (1) to keep records and books of account must, at all reasonable times, make the records and books of account and the accounts and vouchers necessary to verify the information in them available to designated officers and inspection officers, as defined in section 2 of the Canadian Energy Regulator Act and any other person designated by the Regulator and give them every facility necessary to inspect the records, books, accounts and vouchers.

• 13Appeal

  If any difference arises or if any doubt exists as to whether any charge is payable or as to the amount of the charge that is payable on the exportation of any oil, the Canadian International Trade Tribunal established by the Canadian International Trade Tribunal Act may declare what amount of charge is payable, if any, and for that purpose sections 104 and 105 of the Excise Tax Act apply with any modifications that the circumstances require and any reference in those sections to the Deputy Minister is to be construed as a reference to the Chief Executive Officer of the Regulator.

• 14Expenditures
• 14(1)

  The Minister may make expenditures out of the Consolidated Revenue Fund for the payment of the following amounts:

• 14(1)(a)

  the amounts required to be refunded to a person under subsection 11(1); and

• 14(1)(b)

  such amounts in respect of a fiscal year or part thereof as are authorized pursuant to regulations of the Governor in Council to be paid to a province or its agent in respect of exports of oil during that year.

• 14(2)Idem

  In addition to any amount appropriated by Parliament for any of the purposes mentioned in subsection (1), the Minister may spend, for the purposes mentioned in that subsection, any amount, other than an amount referred to in paragraph 86(2)(a), received in respect of any charge payable under this Part.

• 14(3)Limit on expenditures

  The aggregate of expenditures made under this section in respect of any fiscal year shall not exceed the aggregate of

• 14(3)(a)

  any amount, other than an amount referred to in paragraph 86(2)(a), received in that fiscal year in respect of any charge payable under this Part; and

• 14(3)(b)

  such amount, if any, as is appropriated by Parliament for the purposes mentioned in subsection (1).

• 14(4)Report

  Within three months after the end of each fiscal year, the Minister shall cause to be prepared a report in respect of all revenues, other than any amount referred to in paragraph 86(2)(a), and expenditures during that year under this Part and shall cause the report to be laid before Parliament on any of the first fifteen days that either House of Parliament sits after the report has been prepared.

• 15Regulations

  The Governor in Council may, by regulation,

• 15(a)

  designate as an oil product any substance resulting from the processing or refining of hydrocarbons or coal if the substance

• 15(a)(i)

  is asphalt or a lubricant, or

• 15(a)(ii)

  is a suitable source of energy by itself or when it is combined or used in association with something else;

• 15(b)

  prescribe the terms and conditions on which payments may be made to a province or its agent pursuant to paragraph 14(1)(b); and

• 15(c)

  provide for such other matters or things as may be necessary to carry out the provisions of this Part.

• 16Definitions
• 16(1)

  In this Part,

• 16(1)[p77]

  export, in respect of transportation fuel, means

• 16(1)[p77](a)

  the delivery by an exporter of that fuel to a person other than an exporter in order that the person may take it from Canada by means of an aircraft or vessel for immediate use by that aircraft or vessel, or

• 16(1)[p77](b)

  the taking by an exporter of that fuel from Canada by means of an aircraft or vessel for use by that aircraft or vessel; (exporter)

• 16(1)[p80]

  exporter and licence have the same meanings as in section 4; (exportateur et licence)

• 16(1)[p81]

  transportation fuel means fuel designated by regulations under section 19 as being fuel for use by an aircraft or vessel. (carburant)

• 16(2)Interpretation of export

  For the purposes of the definition export in subsection (1), an export in respect of an aircraft or vessel referred to in that definition shall be deemed to occur at the time the aircraft or vessel is at its last port of landing in Canada preceding its journey outside Canada.

• 17Charge
• 17(1)

  There shall be imposed, levied and collected on each cubic metre of transportation fuel acquired in Canada and exported from Canada in any month or part of a month, in respect of which no charge has been imposed, levied and collected under Part I, a transportation fuel compensation recovery charge in such amount not exceeding three hundred and fifty dollars per cubic metre as may be prescribed in a tariff of charges for that month or part of a month made by order of the Governor in Council, on the recommendation of the Minister and the Minister of Finance.

• 17(2)Tariff of charges

  A tariff of charges on transportation fuel may set out the charge applicable in respect of any or all of the various kinds or qualities of transportation fuel, transportation fuel from any source, any or all destinations for transportation fuel and such other factors or circumstances as are specified in the tariff.

• 17(3)Tariff continues

  Where a tariff of charges on transportation fuel is prescribed in respect of any month or part of a month under subsection (1), that tariff of charges shall continue in respect of each subsequent month until changed pursuant to subsection (1) by order of the Governor in Council in respect of a subsequent month or part of a month.

• 18Application of certain provisions

  Sections 6 to 13 apply in respect of the compensation recovery charge imposed under this Part in the same manner and to the same extent as if that charge were a charge imposed under Part I.

• 19Regulations

  The Governor in Council may, by regulation,

• 19(a)

  designate any fuel as being fuel for use by an aircraft or vessel;

• 19(b)

  define the expression “last port of landing” for the purposes of subsection 16(2); and

• 19(c)

  provide for such other matters or things as may be necessary to carry out the provisions of this Part.

• 20Definitions

  In this Part,

• 20[p93]

  consumption means, in relation to crude oil, the action of using it as a fuel or energy source or consuming it in the manufacture of products of trade and commerce; (consommation)

• 20[p94]

  crude oil means any hydrocarbon or mixture of hydrocarbons other than gas; (pétrole brut)

• 20[p95]

  offshore area means Sable Island or any area of land not within a province that belongs to Her Majesty in right of Canada or in respect of which Her Majesty in right of Canada has the right to dispose of or exploit the natural resources and that is situated in submarine areas in the internal waters of Canada, the territorial sea of Canada or the continental shelf of Canada; (zone extracôtière)

• 20[p96]

  prescribed price means, in relation to any quality or kind of crude oil, the maximum price established therefor under this Part for the purpose of interprovincial and international trade; (prix imposé)

• 20[p97]

  price means the value in money of the consideration given for a quantity of crude oil or the value of that quantity of oil, as may be determined by regulation in a case where no consideration is given therefor, exclusive of the amount of any charge imposed under this Act; (prix)

• 20[p98]

  producer-province means a province in which the quantities of crude oil ordinarily produced, extracted or recovered in that province in a month are such that a significant quantity of that crude oil is normally available for use outside that province in each month; (province pétrolière)

• 20[p99]

  province of production means, in relation to any quantity of crude oil, the producer-province in which it was produced, extracted or recovered; (province d’origine)

• 20[p100]

  recovered includes manufactured. (Version anglaise seulement)

• 21Application

  This Part applies to crude oil that

• 21(a)

  enters into international or interprovincial trade or that is mixed or blended with crude oil that has been acquired for movement outside its province of production; or

• 21(b)

  is brought, sent or delivered to a province from the offshore area in which it is produced, extracted or recovered.

• 22Purpose

  The purpose of this Part is to provide legislative authority for measures that will, so far as may be practicable, enable the Government of Canada

• 22(a)

  to achieve a uniform price, exclusive of transportation costs, for crude oil used in Canada outside its province of production;

• 22(b)

  to achieve a balance in Canada between the interests of consumers and producers in Canada;

• 22(c)

  to protect consumers in Canada from instability of prices for petroleum in the international markets; and

• 22(d)

  to encourage the discovery, development and production of a supply of crude oil adequate to the self-sufficiency of Canada.

• 23Provincial agreement on prices
• 23(1)

  With the approval of the Governor in Council, the Minister may enter into an agreement with the government of a producer-province for the purpose of establishing mutually acceptable prices for the various qualities and kinds of crude oil produced, extracted or recovered in that province during such period as may be agreed on and for other purposes considered expedient to carry out the purpose of this Part.

• 23(2)Expression of agreement

  An agreement for the purpose of this Part need not be expressed in any formal document executed on behalf of the parties thereto if the expression of that agreement is contained in reciprocal orders in council issued by the governments concerned.

• 24Prescribing maximum
• 24(1)

  Where an agreement is entered into with a producer-province under section 23, the Governor in Council may, by regulation, establish maximum prices for the various qualities and kinds of crude oil to which this Part applies that are produced, extracted or recovered in that province.

• 24(2)Prescribing maximum

  Notwithstanding subsection (1), the Governor in Council may, by regulation, establish maximum prices for the various qualities and kinds of crude oil to which this Part applies that are produced, extracted or recovered in Yukon, the Northwest Territories or Nunavut.

• 24(3)Idem

  The Governor in Council may, by regulation, establish maximum prices for the various qualities and kinds of crude oil to which this Part applies that are produced, extracted or recovered in an offshore area and in such case the provisions of this Part, except those that refer to an agreement with the government of a producer-province, that apply in respect of crude oil produced, extracted or recovered in a province apply, with such modifications as the circumstances require, in respect of crude oil produced, extracted or recovered in the offshore area as if the offshore area were a province of production.

• 25Where no price agreement effective
• 25(1)

  Where no agreement is entered into under section 23 with the government of a producer-province, or any such agreement is terminated by the declaration of the parties, or, in the opinion of the Governor in Council, is not effective or is not capable of being effective, the Governor in Council may, by regulation, establish maximum prices for the various qualities and kinds of crude oil to which this Part applies that are produced, extracted or recovered in that province.

• 25(2)How prescribed price established

  For the purposes of establishing maximum prices pursuant to subsection (1), the Governor in Council shall have regard to such matters as he deems requisite from time to time to achieve the purpose of this Part, including

• 25(2)(a)

  transportation and other costs applicable to the movement of crude oil;

• 25(2)(b)

  the qualities and kinds of crude oil produced, extracted or recovered in the province of production;

• 25(2)(c)

  the conditions prevailing in the international and interprovincial marketing of oil; and

• 25(2)(d)

  the probable effect on the producers and consumers in Canada of establishing maximum prices for the various qualities and kinds of crude oil.

• 26Prohibition

  No person shall unless the price paid therefor is not greater than the prescribed price for that quality or kind of crude oil.

• 26(a)

  sell any quality or kind of crude oil for consumption outside its province of production,

• 26(b)

  purchase any quality or kind of crude oil for consumption outside its province of production,

• 26(c)

  acquire any quality or kind of crude oil for consumption outside its province of production, or

• 26(d)

  sell or purchase any quality or kind of crude oil outside its province of production

• 27Evidence required

  No person shall transport, carry, convey or move any quality or kind of crude oil out of its province of production or take delivery of any quality or kind of crude oil outside its province of production unless there is documentary evidence presented to him and recorded by him that the price paid or to be paid therefor is not greater than the prescribed price for that quality or kind of crude oil.

• 28Records

  Every person who engages in a transaction described in section 26 shall keep records and books of account at his place of business in Canada, or elsewhere in Canada as the regulations may require, in such form and containing such information as will enable a determination to be made of the price at which any crude oil was purchased or sold in the course of the transaction.

• 29Records

  Every person who acquires any crude oil in a province other than its province of production shall keep records and books of account at his place of business in Canada, or elsewhere in Canada as the regulations may require, in such form and containing such information as will enable a determination to be made of the price at which the crude oil was so acquired.

• 30Offences respecting records and other documents

  A person who is guilty of an offence and liable on summary conviction to a fine not exceeding one hundred thousand dollars or to imprisonment for a term not exceeding one year or to both.

• 30(a)

  knowingly makes any false entry or statement in any record, book of account or other document required by this Part or any regulations thereunder to be kept, or

• 30(b)

  knowingly destroys, mutilates or falsifies any record, book of account or other document required by this Part or any regulations thereunder to be kept

• 31Contravention of sections 26 to 29
• 31(1)

  Every person who contravenes any of the provisions of sections 26 to 29 is guilty of an offence and liable

• 31(1)(a)

  on summary conviction, to a fine not exceeding one hundred thousand dollars or to imprisonment for a term not exceeding one year or to both; or

• 31(1)(b)

  on conviction on indictment, to a fine not exceeding one million dollars or to imprisonment for a term not exceeding five years or to both.

• 31(2)Officers, etc., of corporation

  Where a corporation commits an offence under this Part, any officer, director or agent of the corporation who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and is liable on conviction to the punishment provided for the offence whether or not the corporation has been prosecuted or convicted.

• 32Offence by employee or agent

  In a prosecution for an offence under this Part, it is sufficient proof of the offence to show that it was committed by an employee or agent of the accused whether or not the employee or agent is identified or has been prosecuted for the offence, unless the accused establishes that the offence was committed without his knowledge or consent and that he exercised all due diligence to prevent its commission.

• 33Continuing offence

  Where an offence under this Part is committed on more than one day, it shall be deemed to be a separate offence for each day on which the offence is committed or continued.

• 34Limitation period

  Any proceedings by way of summary conviction in respect of an offence under this Part may be instituted at any time within but not later than one year after the time when the subject-matter of the proceedings arose.

• 35Regulations

  The Governor in Council may make regulations

• 35(a)

  prescribing the records, books of account or other documents that are to be kept by any person who purchases or sells any crude oil or who enters into any transaction described in section 26 and the form and contents of the information to be maintained in those records, books of account and documents;

• 35(b)

  prescribing the place in Canada where such records, books of account or other documents as are prescribed by the regulations are to be kept;

• 35(c)

  respecting the determination of the value of crude oil in circumstances where no consideration, or no consideration in money, is given therefor; and

• 35(d)

  providing for any matter or thing necessary to effect the purposes of this Part.

• 36Definitions
• 36(1)

  In this Part,

• 36(1)[p149]

  consumption means, in relation to gas, the action of using it as a fuel or energy source or consuming it in the manufacture of products of trade and commerce; (consommation)

• 36(1)[p150]

  offshore area has the same meaning as in section 20; (zone extracôtière)

• 36(1)[p151]

  prescribed price means, in relation to any kind of gas, a price that is prescribed by regulation under this Part for that kind of gas; (prix imposé)

• 36(1)[p152]

  price means the value in money for a quantity of gas; (prix)

• 36(1)[p153]

  producer-province means a province in which the quantities of gas ordinarily produced, extracted, recovered or manufactured in that province in a month are such that a significant quantity of that gas is normally available for use outside that province in each month; (province pétrolière)

• 36(1)[p154]

  province of production means, in relation to any quantity of gas, the producer-province in which it was produced, extracted, recovered or manufactured. (province d’origine)

• 36(2)Method of prescribing price

  A regulation made by the Governor in Council that prescribes a price at which a kind of gas is to be sold on or for delivery may

• 36(2)(a)

  fix a price for that gas;

• 36(2)(b)

  designate the prescribed price for that gas to be all the prices that are within a range of prices set out in the regulation;

• 36(2)(c)

  designate the prescribed price for that gas to be all the prices that do not exceed a maximum price set out in the regulation;

• 36(2)(d)

  designate the prescribed price for that gas to be a price that is determinable by reference to criteria or published information identified by the regulation; or

• 36(2)(e)

  designate the prescribed price for that gas to be a price that is established or calculable under a contract for the sale of the gas referred to in the regulation and that is on file with the Regulator.

• 36(3)Effect of regulation prescribing price

  A regulation referred to in subsection (2) may be conditional or unconditional, qualified or unqualified and may be general or restricted to a specific area, person, thing or kind or quantity of gas or to a group or class of persons, things, kinds or quantities.

• 36(4)References in regulations

  A reference in a regulation made under paragraph (2)(d) to criteria or published information shall, unless the regulation provides otherwise, be deemed to be a reference to the criteria or published information, as it is updated or published from time to time.

• 36(5)Confidential contract price

  A regulation made under paragraph (2)(e) need not specify the price that is established or calculable under a confidential contract between the parties thereto but need only identify the parties and the date of the contract.

• 36.1Application of certain provisions

  Subsections 36(2) to (5) apply, with such modifications as the circumstances require, in respect of any special or general order of the Commission of the Regulator referred to in subsection 43(1).

• 37Application

  This Part applies to gas that

• 37(a)

  enters into interprovincial or international trade; or

• 37(b)

  is brought, sent or delivered to a province from the offshore area in which it is produced, extracted, recovered or manufactured.

• 38Purpose

  The purpose of this Part is to provide legislative authority for measures that will, so far as may be practicable, enable the Government of Canada

• 38(a)Repealed

  [Repealed, R.S., 1985, c. 31 (2nd Supp.), s. 3]

• 38(b)

  to achieve a balance in Canada between the interests of consumers and producers in Canada;

• 38(c)

  to protect consumers in Canada from instability of prices for gas and to preserve a reasonable balance between the prices of alternative fuels in Canada; and

• 38(d)

  to encourage the discovery, development and production of a supply of gas adequate to the self-sufficiency of Canada.

• 39Provincial agreement on prices

  With the approval of the Governor in Council, the Minister may enter into an agreement with the government of a producer-province for the purpose of establishing mutually acceptable prices for the various kinds of gas produced, extracted, recovered or manufactured in that province during such period as may be agreed on and for other purposes considered expedient to carry out the purpose of this Part.

• 40Prescribing prices
• 40(1)

  Where an agreement is entered into with a producer-province under section 39, the Governor in Council may, by regulation, prescribe prices at which the various kinds of gas to which this Part applies that are produced, extracted, recovered or manufactured in that province are to be sold on or for delivery in any areas or zones in Canada and outside that province or at any points of export from Canada.

• 40(2)Prescribing prices

  Notwithstanding subsection (1), the Governor in Council may, by regulation, prescribe prices at which the various kinds of gas to which this Part applies that are produced, extracted, recovered or manufactured in Yukon, the Northwest Territories or Nunavut are to be sold on or for delivery in any areas or zones in Canada and outside any of those territories or at any points of export from Canada.

• 40(3)Idem

  The Governor in Council may, by regulation, prescribe prices at which the various kinds of gas to which this Part applies that are produced, extracted, recovered or manufactured in an offshore area are to be sold on or for delivery in any areas or zones in Canada and outside that offshore area or at any points of export from the offshore area and in that case the provisions of this Part, except those that refer to an agreement with the government of a producer-province, that apply in respect of gas produced, extracted, recovered or manufactured in a province apply, with such modifications as the circumstances require, in respect of gas produced, extracted, recovered or manufactured in the offshore area as if the offshore area were a province of production.

• 40(4)How prescribed price established

  For the purpose of establishing prices pursuant to subsection (1) or section 42, the Governor in Council shall have regard to such matters as he deems requisite from time to time to achieve the purpose of this Part including

• 40(4)(a)

  transportation and other costs applicable to the movement of gas;

• 40(4)(b)

  the kinds of gas produced, extracted, recovered or manufactured in Canada;

• 40(4)(c)

  the prices of alternative fuels in interprovincial markets; and

• 40(4)(d)

  the probable effect on the producers and consumers in Canada of establishing prescribed prices for the various kinds of gas.

• 41Application of certain provisions
• 41(1)

  Subject to this section, sections 43 to 55 do not apply in respect of a producer-province until such time as the Governor in Council acquires authority under subsection 40(1) or section 42 to prescribe prices at which the various kinds of gas to which this Part applies that are produced, extracted, recovered or manufactured in that producer-province are to be sold on or for delivery in any areas or zones in Canada and outside that province or at any points of export from Canada.

• 41(1.1)Idem

  Sections 43 to 55 do not apply in respect of a producer-province during any period in which an order of the Governor in Council that declares those provisions to be non-applicable in respect of the province remains in effect.

• 41(2)Territories or offshore area

  Where the Governor in Council prescribes prices pursuant to subsection 40(2) or (3) at which the various kinds of gas to which this Part applies that are produced, extracted, recovered or manufactured in Yukon, the Northwest Territories, Nunavut or the offshore area, as the case may be, are to be sold, sections 43 to 55 apply in respect of any of those territories or that offshore area.

• 42Where no price agreement effective

  Where no agreement is entered into under section 39 with the government of a producer-province, or any such agreement is terminated by the declaration of the parties, or, in the opinion of the Governor in Council, is not effective or is not capable of being effective, the Governor in Council may, by regulation, prescribe prices at which the various kinds of gas to which this Part applies that are produced, extracted, recovered or manufactured in that province are to be sold on or for delivery in any areas or zones in Canada and outside the province or at any points of export from Canada.

• 43Prohibition
• 43(1)

  No person shall

• 43(1)(a)

  move any gas outside its province of production for consumption elsewhere unless the price paid to acquire that gas is a price approved by special or general orders of the Commission of the Regulator;

• 43(1)(b)

  purchase or otherwise acquire from within a producer-province or sell within a producer-province any gas for consumption outside that province unless the price paid therefor is a price approved by special or general orders of the Commission of the Regulator; or

• 43(1)(c)

  sell or purchase any gas outside its province of production unless the price paid therefor is a prescribed price for that gas.

• 43(2)Saving

  Paragraph (1)(c) does not apply in respect of a sale of gas in a province for consumption therein if the gas is purchased in that province otherwise than from a person who brought the gas out of its province of production or caused it to be brought therefrom.

• 44Evidence required

  No person shall transport, carry, convey or move any kind of gas out of its province of production or take delivery of any kind of gas outside its province of production unless there is documentary evidence recorded by the person that the price paid or to be paid therefor is a price approved by the Commission of the Regulator or a prescribed price, as the case may require.

• 45Records

  Every person who engages in a transaction described in section 43 shall keep records and books of account at his place of business in Canada, or elsewhere in Canada as the regulations may require, in such form and containing such information as will enable a determination to be made of the price at which any gas was purchased or sold in the course of the transaction.

• 46Records

  Every person who acquires any gas in a province other than its province of production from the person who brought the gas out of its province of production or caused it to be brought therefrom shall keep records and books of account at his place of business in Canada, or elsewhere in Canada as the regulations may require, in such form and containing such information as will enable a determination to be made of the price at which the gas was so acquired.

• 47Offences respecting records and other documents

  Every person who is guilty of an offence and liable on summary conviction to a fine not exceeding one hundred thousand dollars or to imprisonment for a term not exceeding one year or to both.

• 47(a)

  knowingly makes any false entry or statement in any record, book of account or other document required by this Part or any regulations thereunder to be kept, or

• 47(b)

  knowingly destroys, mutilates or falsifies any record, book of account or other document required by this Part or any regulations thereunder to be kept