Northern Pipeline Act

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Sections159

• 1Short title

  This Act may be cited as the Northern Pipeline Act.

• 2Definitions
• 2(1)

  In this Act,

• 2(1)[p3]

  Administrator means the Administrator of the Agency appointed or designated pursuant to subsection 6(2); (Directeur)

• 2(1)[p4]

  Agency means the Northern Pipeline Agency established by subsection 5(1); (Administration)

• 2(1)[p5]

  Agreement means the Agreement between Canada and the United States dated September 20, 1977, set out in Schedule I, and includes any exchange of notes between Canada and the United States amending Annex III of the Agreement to give effect to a report of the National Energy Board, dated February 17, 1978, in which the National Energy Board indicated it would include in its decision approving, under this Act, pipeline specifications, a requirement for a 56 inch diameter pipe with a maximum allowable operating pressure of 1,080 psi for that portion of the pipeline between Whitehorse, Yukon and Caroline, Alberta; (Accord)

• 2(1)[p6]Repealed

  Board[Repealed, 2019, c. 28, s. 116]

• 2(1)[p7]

  Commissioner means the Commissioner of the Agency appointed pursuant to subsection 6(1); (Directeur général)

• 2(1)[p8]

  company means a company to which a certificate of public convenience and necessity is declared to be issued by subsection 21(1) in respect of the pipeline; (compagnie)

• 2(1)[p9]

  designated officer means the commissioner of the Regulator who is designated under subsection 6(2) as Administrator or under subsection 6(4) as a deputy to the Administrator; (fonctionnaire désigné)

• 2(1)[p10]

  Hearing means the hearings before the National Energy Board in respect of applications for certificates of public convenience and necessity for the construction and operation of certain natural gas pipelines that resulted in a publication of the National Energy Board under date of June, 1977 in three volumes entitled “Reasons for Decision, Northern Pipelines”; (Audience)

• 2(1)[p11]

  Minister means such member of the Queen’s Privy Council for Canada as is designated by the Governor in Council as the Minister for the purposes of this Act; (ministre)

• 2(1)[p12]

  pipeline means the pipeline for the transmission of natural gas from Alaska across Canada along the route set out in Annex I to the Agreement and includes all branches, extensions, tanks, reservoirs, storage facilities, pumps, racks, compressors, loading facilities, interstation systems of communication by telephone, telegraph or radio, and real and personal property and works connected therewith; (pipe-line)

• 2(1)[p13]

  Regulator means the Canadian Energy Regulator established under the Canadian Energy Regulator Act. (Régie)

• 2(2)References

  For the purposes of this Act, a reference in this Act or in any schedule to this Act to the Foreign Investment Review Act, chapter 46 of the Statutes of Canada, 1973-74, or any provision of that Act shall be construed as a reference to that Act or provision as it read immediately before the coming into force of section 46 of the Investment Canada Act, chapter 20 of the Statutes of Canada, 1985.

• 2(3)Deeming

  For the purposes of the Agreement set out in Schedule I to this Act, the Regulator is deemed to be the National Energy Board.

• 3Binding on Her Majesty

  This Act is binding on Her Majesty.

• 4Objects

  The objects of this Act are

• 4(a)

  to carry out and give effect to the Agreement;

• 4(b)

  to carry out, through the Agency, federal responsibilities in relation to the pipeline;

• 4(c)

  to facilitate the efficient and expeditious planning and construction of the pipeline taking into account local and regional interests, the interests of the residents, particularly the native people, and recognizing the responsibilities of the Government of Canada and other governments, as appropriate, to ensure that any native claim related to the land on which the pipeline is to be situated is dealt with in a just and equitable manner;

• 4(d)

  to facilitate, in relation to the pipeline, consultation and coordination with the governments of the provinces, Yukon and the Northwest Territories;

• 4(e)

  to maximize the social and economic benefits from the construction and operation of the pipeline including the maximizing of the opportunities for employment of Canadians while at the same time minimizing any adverse effect on the social and environmental conditions of the areas most directly affected by the pipeline; and

• 4(f)

  to advance national economic and energy interests and to maximize related industrial benefits by ensuring the highest possible degree of Canadian participation in all aspects of the planning and construction of, and procurement for, the pipeline while ensuring that the procurement of goods and services for the pipeline will be on generally competitive terms.

• 5Agency established
• 5(1)

  There is hereby established an agency of the Government of Canada called the Northern Pipeline Agency over which the Minister shall preside.

• 5(2)Minister

  The Minister has the management and direction of the Agency.

• 6Commissioner
• 6(1)

  The Governor in Council may appoint an officer to be called the Commissioner of the Agency to be the deputy of the Minister and the Commissioner shall rank as and have all the powers of a deputy head of a department.

• 6(2)Administrator

  The Governor in Council may, by order,

• 6(2)(a)

  appoint an officer to be called the Administrator of the Agency; or

• 6(2)(b)

  designate one of the commissioners of the Regulator to be the Administrator of the Agency.

• 6(3)Duties of Administrator

  The Administrator shall, under the Commissioner, exercise and perform such of the powers, duties and functions of the Minister under this Act as the Minister may specify.

• 6(4)Deputy to the Administrator

  If the Governor in Council does not designate a commissioner of the Regulator to be the Administrator, the Governor in Council may, by order, designate one of the commissioners of the Regulator to be a deputy to the Administrator.

• 6(5)Non-application

  Paragraph 29(c) of the Canadian Energy Regulator Act does not apply to the commissioner of the Regulator designated as Administrator or as a deputy to the Administrator.

• 7Designated officer‘s powers
• 7(1)

  The designated officer may, in respect of the pipeline, exercise any of the powers, and perform any of the duties or functions, of the Regulator under the Canadian Energy Regulator Act — except those referred to in sections 80 to 86, 92 and 95 to 98, subsection 99(2), section 100, subsections 101(3), 102(3) and 103(2) to (4), sections 109 to 112, 115 to 173 and 181, subsections 183(1), (2), (4) to (6) and (8) to (11), sections 184, 186, 187, 195 to 197, 213, 214, 225 to 240, subsections 241(1) and (4), section 245 and Parts 7 and 9 of that Act — that may be delegated to him or her by order of the Regulator.

• 7(2)Certification of documents

  The designated officer may, in respect of the pipeline, certify copies of

• 7(2)(a)

  the approved plan, profile and book of reference for the purpose of paragraph 198(d) of the Canadian Energy Regulator Act; and

• 7(2)(b)

  any permit issued under subsection 208(2) of that Act.

• 8Regulator — substitute commissioner

  If a commissioner of the Regulator is designated to be the Administrator or a deputy to the Administrator, the Governor in Council may appoint, on any terms and conditions that the Governor in Council may prescribe, a temporary substitute commissioner of the Regulator in place of that commissioner of the Regulator.

• 9Acting Commissioner or Administrator
• 9(1)

  Subject to subsection (2), in the event of the absence or incapacity of the Commissioner or Administrator or if either office is vacant, the Governor in Council may designate a person to act as Commissioner or Administrator for the time being and the person so designated has all the powers, duties and functions of the Commissioner or Administrator, unless the Governor in Council specifies otherwise.

• 9(2)Acting designated officer

  If the designated officer is absent or incapacitated, the Governor in Council may designate another commissioner of the Regulator to act as the Administrator or as a deputy to the Administrator, as the case may be, and the person so designated has all the powers, duties and functions of the Administrator or that deputy including the powers, duties and functions of the Regulator that were delegated to the Administrator or that deputy, unless the Governor in Council specifies otherwise.

• 9(3)Non-application

  Paragraph 29(c) of the Canadian Energy Regulator Act does not apply to a commissioner of the Regulator designated under subsection (2).

• 10Powers of Minister

  The Minister may

• 10(a)

  exercise such of the powers and carry out such of the duties and functions, in relation to the pipeline only, of any member of the Queen’s Privy Council for Canada or any department or agency of the Government of Canada as are from time to time transferred to him by order of the Governor in Council;

• 10(b)

  hold consultations with the governments of the provinces, Yukon and the Northwest Territories to coordinate and review the activities of the Agency and those governments in relation to the pipeline;

• 10(c)

  enter into such agreements with the government of a province, or with the government of Yukon or the Northwest Territories after consultation with the Legislature of Yukon or the Northwest Territories, as may be necessary to facilitate the attainment of the objects of this Act and to provide for coordination and review of the activities of the Agency and those governments in relation to the pipeline;

• 10(d)

  oversee and survey all aspects of the planning and construction of, and procurement for, the pipeline; and

• 10(e)

  in order to carry out the obligations of Canada contained in the Agreement, consult with the appropriate authorities of the United States on any matter arising under the Agreement.

• 11Offices

  Offices of the Agency may be established at such places in Canada as the Minister considers appropriate.

• 12Separate employer
• 12(1)

  The Agency may employ such professional, scientific, technical and other officers and employees as it considers necessary for the purposes of this Act, fix their tenure of employment and their duties and, with the approval of the Treasury Board, fix and pay their remuneration.

• 12(2)Technical assistance

  The Agency may engage on a temporary basis the services of persons having technical or specialized knowledge to advise and assist the Agency in the performance of its duties and, with the approval of the Treasury Board, may fix and pay the remuneration and expenses of those persons.

• 12(3)Public Service Superannuation Act

  Each person employed under subsection (1) is deemed to be employed in the public service for the purposes of the Public Service Superannuation Act.

• 12(4)Application of other Acts

  Each person employed under subsection (1) is deemed to be employed in the federal public administration for the purposes of the Government Employees Compensation Act and any regulations made pursuant to section 9 of the Aeronautics Act.

• 12(5)Secondment and advice and assistance

  The Governor in Council may, on the request of the Minister, direct any department or agency of the Government of Canada to second to the Agency, for specified periods, officers and employees necessary for the proper conduct of the work of the Agency and the Agency may, subject to any provisions relating to privileged information in any other Act, obtain the advice and assistance of any department or agency of the Government of Canada.

• 13Repealed

  [Repealed, 2012, c. 19, s. 177]

• 14Annual report

  The Minister shall, on or before December 31 next following the end of each fiscal year, prepare a report on the operations of the Agency for that fiscal year and the Minister shall cause the report to be laid before each House of Parliament on that date or, if a House is not then sitting, on any of the first 15 days that it is sitting after that date.

• 15Transfer of powers

  The Governor in Council may, by order, transfer to the Minister, in relation to the pipeline only, such of the powers, duties and functions of any member of the Queen’s Privy Council for Canada or any department or agency of the Government of Canada as are specified in the order.

• 16Exercise of powers by departments and other agencies

  The Minister may, to facilitate the exercise of such of the powers and the carrying out of such of the duties and functions of a member of the Queen’s Privy Council for Canada or any department or agency of the Government of Canada as are transferred to him, enter into an agreement with the member, department or agency whereby the member, department or agency will exercise the powers and carry out the duties and functions so transferred in a manner determined in the agreement.

• 17No taxing authority transferred

  No transfer of any power, duty or function under section 15 authorizes the Minister to levy a tax or impose a licence fee or other monetary charge greater than the tax, licence fee or other monetary charge set out in the Act or regulations referred to in the transfer.

• 18Council to be established
• 18(1)

  For the purpose of carrying out the objects of this Act, the Governor in Council may establish a Federal-Provincial Consultative Council consisting of

• 18(1)(a)

  the Commissioner and a representative of Yukon named by the Governor in Council on the recommendation of the Legislature of Yukon; and

• 18(1)(b)

  one representative of each of the provinces of British Columbia, Saskatchewan and Alberta nominated by the Lieutenant Governor in Council of each of those provinces.

• 18(2)Meeting and objects

  The Council established under subsection (1) shall meet at least once every three months at such places in Canada as may be determined by the Council to consult on and to facilitate the coordination of the actions of the Agency, the governments of the provinces referred to in paragraph (1)(b), the government of Yukon and other governmental bodies in relation to the pipeline, and in particular with a view to ensuring a consistent approach in so far as is possible relating to the pipeline.

• 18(3)Committees of Council

  The Council established by subsection (1) may establish committees of the Council to advise it on such matters relating to the objects set out in subsection (2) as the Council refers to those committees.

• 19Establishment and composition
• 19(1)

  For the purpose of assisting the Minister in carrying out the objects of this Act, the Governor in Council shall establish and set the terms of reference of one or more advisory councils each consisting of not more than ten members to be selected from outside the federal public administration and appointed by the Governor in Council to hold office for such term as the Governor in Council may determine.

• 19(2)Yukon Advisory Council

  One of the advisory councils established under subsection (1) shall be the Yukon Advisory Council with members representative of areas and interests, including native interests, in Yukon.

• 19(3)Functions

  The Commissioner shall inform a council established under subsection (1) of the activities of the Agency relating to the terms of reference of the council and any such council may advise and make recommendations to the Commissioner respecting those activities.

• 19(4)Council members

  Each member of a council established under subsection (1) is entitled to be paid out of the funds appropriated for the Agency such fees as are fixed by the Governor in Council for attendance at meetings of the council.

• 19(5)Expenses

  Each member of a council established under subsection (1) is entitled to be paid out of the funds appropriated for the Agency reasonable travel and living expenses incurred by him in connection with the performance of his duties under this Act while absent from his ordinary place of residence.

• 20Directions to the Regulator
• 20(1)

  The Governor in Council may, by order, in respect of the pipeline, give directions to the Regulator respecting the exercise of the powers of the Regulator under, or the performance of the duties and functions imposed on the Regulator by, the Canadian Energy Regulator Act and this Act and the Regulator must comply with those directions.

• 20(2)Directions to designated officer

  The Governor in Council may, by order, in respect of the pipeline, give directions to the designated officer respecting the exercise of the powers and the performance of the duties and functions of the Regulator delegated to him or her by the Regulator under section 7 or imposed on him or her by this Act and the designated officer must comply with those directions.

• 21Certificate issued
• 21(1)

  A certificate of public convenience and necessity in respect of the pipeline is hereby declared to be issued to each company listed in Schedule II for that portion of the route indicated in the Agreement in respect of that company.

• 21(2)Certificate considered to be issued by Board

  A certificate of public convenience and necessity declared to be issued by subsection (1) is considered to be a certificate issued under section 52 of the National Energy Board Act on April 13, 1978.

• 21(3)Terms and conditions

  Every certificate declared to be issued by subsection (1) is subject to the terms and conditions set out in Schedule III.

• 21(4)Amendments of terms and conditions

  The Commission of the Regulator or the designated officer may rescind, amend or add to the terms and conditions set out in Schedule III or deemed to be set out therein but no rescission of or amendment to such a term or condition or addition of a term or condition is effective without the approval of the Governor in Council.

• 21(5)Application of Foreign Investment Review Act

  Where any question arises under Schedule III whether a person is or is not a non-eligible person within the meaning of the Foreign Investment Review Act, chapter 46 of the Statutes of Canada, 1973-74, that person shall apply under subsection 4(1) of that Act for a statement in writing from the Minister referred to in that subsection to the effect that the person is not a non-eligible person within the meaning of that Act and that Minister shall deal with the application in the same manner as if it were an application for an opinion pursuant to a question arising under that Act, and any statement in writing furnished by that Minister is binding in accordance with that subsection but only for the purposes of this Act.

• 21(6)Shareholder agreement not to be amended

  Every certificate of public convenience and necessity declared to be issued by this Act is subject to the condition that Westcoast Transmission Company Limited, Alberta Gas Trunk Line Company Limited and Foothills Pipe Lines (Yukon) Ltd. shall not, without the prior approval of the Governor in Council and the Commission of the Regulator, terminate, alter or amend the shareholders agreement entered into by those companies dated August 4, 1977 as amended prior to February 3, 1978.

• 22Powers of designated officer
• 22(1)

  The designated officer may, with the concurrence of the Minister, issue such orders and directions to the companies and grant such approvals to them as may be necessary to carry out the terms and conditions set out in Schedule III.

• 22(2)Deemed undertakings

  Every undertaking given by Foothills Pipe Lines (Yukon) Ltd., the Alberta Gas Trunk Line (Canada) Limited, Westcoast Transmission Company Limited and Alberta Natural Gas Company Ltd. and in the submission of the Alberta Gas Trunk Line Company Limited to the Board, as amended during the Hearing, is deemed to be

• 22(2)(a)

  an undertaking of every company in so far as the undertaking relates to the company and to the portion of the route indicated in the Agreement in respect of that company; and

• 22(2)(b)

  a term or condition set out in Schedule III.

• 23Publication and report

  A direction issued by the Governor in Council under subsection 20(1) or (2) or an approval under subsection 21(4) shall be published forthwith in the Canada Gazette and the Minister shall cause a copy of the direction or approval to be laid before Parliament on any of the first fifteen days that either House of Parliament is sitting after the direction or approval is given.

• 24Decision or order final
• 24(1)

  A decision or order of the Commission of the Regulator in relation to the pipeline is valid and effective, final and conclusive and, except as provided in subsection (2), no such decision or order or any proceeding of the Commission of the Regulator resulting in the issue of such a decision or order is subject to any proceeding by way of appeal or review in any court or to be questioned, enjoined, prohibited, removed, restrained, set aside or otherwise affected by any such proceeding.

• 24(2)Judicial review

  Where a person is directly affected by a decision or order of the Commission of the Regulator in relation to the pipeline, that person may apply for a review of the decision or order under the Federal Courts Act by filing a notice of the application in the Federal Court of Appeal within thirty days after the decision or order is made or within such further time as the Court or a judge thereof may, either before or after the expiration of those thirty days, fix or allow.

• 25Native claims unaffected

  Notwithstanding this Act, any native claim, right, title or interest that the native people of Canada may have had prior to April 13, 1978 in and to the land on which the pipeline will be situated continues to exist until a settlement in respect of any such claim, right, title or interest is effected.

• 26Notice of failure to comply
• 26(1)

  Where a company fails to comply with the designated officer may

• 26(1)(a)

  a term or condition of a certificate of public convenience and necessity declared to be issued by subsection 21(1), or

• 26(1)(b)

  an order or direction issued by the Commission of the Regulator or the designated officer in relation to such a certificate,

• 26(1)(c)

  give the company written notice of the failure and set, in the notice, a time within which the company shall comply with the term or condition or order or direction, and

• 26(1)(d)

  cause the notice to be served on the company by registered mail or in person.

• 26(2)Penalty

  Where, pursuant to subsection (1), the designated officer gives the company notice of failure to comply and the company fails, within the time set out in the notice and without lawful excuse, to comply with the term or condition or order or direction, set out in the notice, the Minister may issue an assessment against the company imposing a penalty, not exceeding ten thousand dollars for each day during which the failure continues, on the company.

• 26(3)Notice of assessment

  Where the Minister issues an assessment under subsection (2) against a company, he shall cause a notice of the assessment to be served forthwith on the company and notice thereof to be published in the Canada Gazette.

• 26(4)Objection

  A company that objects to an assessment under subsection (2) may, within thirty days from the day of mailing of the notice of assessment, serve on the Minister a notice of objection, in duplicate, in such form as the Governor in Council may prescribe setting out the reason for the objection and the relevant facts.

• 26(5)Service

  A notice of assessment under subsection (3) and a notice of objection under subsection (4) shall be served by being sent by registered mail.

• 26(6)Representation

  On receipt of a notice of objection under subsection (4) from a company, the Minister shall, with all due dispatch, reconsider the assessment objected to and vacate, confirm or vary the assessment and he shall thereupon notify the company of his action by registered mail.

• 27Right of appeal
• 27(1)

  Where a company receives a notice referred to in subsection 26(6), the company may, within thirty days after receipt of the notice and without serving a notice of objection to the action taken by the Minister under that subsection, appeal the action to the Federal Court.

• 27(2)Institution of appeal

  An appeal to the Federal Court under subsection (1) shall be instituted in the manner set out in section 48 of the Federal Courts Act.

• 27(3)Burden of proof

  In an appeal under this section, the burden of establishing the facts justifying the assessment of the penalty is on the Minister.

• 27(4)Disposal of appeal

  The Federal Court may dispose of an appeal under this section by

• 27(4)(a)

  allowing it;

• 27(4)(b)

  dismissing it; or

• 27(4)(c)

  dismissing it and varying the penalty but, in varying the penalty, the Federal Court shall not increase the penalty beyond the maximum penalty permitted by section 26.

• 28Debt due Her Majesty

  A penalty payable under this Act is a debt due to Her Majesty in right of Canada and is recoverable as such in the Federal Court or any other court of competent jurisdiction.

• 29Costs of Agency to be recovered
• 29(1)

  Every certificate of public convenience and necessity declared to be issued by subsection 21(1) to a company is subject to the condition that the company shall annually pay to the Receiver General an amount equal to the costs that are attributable to the Agency’s responsibilities under this Act and that are incurred by the Agency in the previous fiscal year with respect to that company.

• 29(2)Invoicing

  The Agency shall, no later than November 15 in each year, issue to each company an invoice for the amount payable under subsection (1).

• 29(3)Payment period

  Any amount that is payable under subsection (1) shall be paid no later than the 30th day after the date of the invoice.

• 29(4)Interest

  If a company fails to pay any amount invoiced within the required period, the company shall pay interest on the outstanding amount at a rate of 1.5% per month, compounded monthly, beginning on the 31st day after the date of the invoice.

• 30Where Minister may perform terms and conditions
• 30(1)

  Where a company fails or refuses to comply with a term or condition to which the certificate of public convenience and necessity declared to be issued to it is subject or with an order or direction issued to it pursuant to subsection 22(1), the Minister may, after thirty days notice of his intention to do so, take all reasonable measures, or direct any person he considers qualified to do so to take such measures, as are required to perform the term or condition or carry out the order or direction, unless within the thirty days the company has complied with the term or condition or order or direction, as the case may be, or has made arrangements that are satisfactory to the Minister to comply with the term or condition or order or direction.

• 30(2)Access to property

  Where, pursuant to subsection (1), the Minister or another person undertakes the performance of a term or condition or the carrying out of an order or direction, the Minister or that other person may enter and have access through any place or property and may do all reasonable things in order to perform the term or condition or carry out the order or direction.

• 30(3)Personal liability

  The Minister or any person he directs, pursuant to subsection (1), to perform a term or condition or carry out an order or direction is not personally liable civilly or criminally in respect of any act or omission in the course of performing the relevant term or condition or carrying out the order or direction under that subsection unless it is shown that he did not act reasonably.

• 30(4)Liability to Her Majesty

  Where, pursuant to subsection (1), the Minister or any person he directs to perform a term or condition or carry out an order or direction takes such reasonable measures as are required to perform the term or condition or carry out the order or direction that a company has failed or refused to comply with, the company is liable for all costs and expenses connected therewith incurred by Her Majesty in right of Canada to the extent that those costs and expenses can be established to have been reasonably incurred in the circumstances.

• 30(5)Procedure

  A claim under this section against a company may be sued for and recovered by Her Majesty in right of Canada with costs in proceedings brought or taken therefor in the name of Her Majesty in that right in any court of competent jurisdiction.

• 30(6)Limitation

  No proceedings in respect of a claim under this section may be commenced after two years from the time the Minister or any person he directed, pursuant to subsection (1), to perform a term or condition or carry out an order or direction completed such reasonable measures as were required to perform the term or condition or carry out the order or direction that the company failed or refused to comply with.

• 31Application
• 31(1)

  Sections 225 to 240 of the Canadian Energy Regulator Act, as modified by this Part, apply to every company and if there is any conflict between this Part and the Canadian Energy Regulator Act, this Part prevails.

• 31(2)Single tariff

  If, in the opinion of the Commission of the Regulator, it is desirable that a single tariff be established in Canada in respect of the pipeline, the Commission of the Regulator may, on application of Foothills Pipe Lines (Yukon) Ltd. or on its own motion, by order, require Foothills Pipe Lines (Yukon) Ltd. to file such a tariff and, if the Commission of the Regulator does so, Foothills Pipe Lines (Yukon) Ltd. is deemed to be a company for the purposes of this Part and sections 225 to 240 of the Canadian Energy Regulator Act and every other company is relieved from any obligation to file a tariff until the Commission of the Regulator rescinds that order.

• 32Consultation with United States regulatory authorities

  The Commission of the Regulator may, in order to carry out the obligation set out in paragraph 9 of the Agreement, consult with the appropriate regulatory authority of the United States with respect to matters set out in the Agreement.

• 33Commission of the Regulator to apply Agreement

  The Commission of the Regulator shall, in fixing the tolls and tariffs of a company, apply the requirements of the Agreement, in particular the requirements of paragraphs 4, 5, 6, 11 and 12 thereof, and shall include in its determination of an appropriate toll and tariff any amounts, not exceeding the maximum amounts set out in the Agreement, paid by the company on account of the Yukon road allowance and Yukon property tax.

• 34Rate of return

  The Commission of the Regulator shall, in determining an appropriate rate of return on equity investment in a company,

• 34(a)

  take into account

• 34(a)(i)

  the capital cost estimates set out in the Agreement, and

• 34(a)(ii)

  the extent to which variations in actual costs from the estimates referred to in subparagraph (i) were within or outside the control of the company;

• 34(b)

  establish a rate of return, taking into account the factors set out in paragraph (a), that is not detrimental, when taken into account with the rate of return of every other company, to the financing of the Dempster Line described in the Agreement; and

• 34(c)

  comply with such regulations as the Governor in Council may make prescribing or otherwise relating to the manner of calculating the rate of return.

• 35Prior approval

  Where a company files a tariff at the time the financing of the pipeline is being considered, the Regulator may approve the form and content of the tariff and the rate of return on the equity investment of the company.

• 36Regulations

  The Governor in Council may make such regulations under this Part in respect of tolls and tariffs as may be necessary to give effect to the Agreement including regulations prescribing or otherwise relating to the manner of calculating an appropriate rate of return on equity investment of a company and the methods of applying the incentive scheme set out in subparagraph 4(b) of the Agreement.

• 37Commissioner’s lands
• 37(1)

  If the Governor in Council is of the opinion that lands in Yukon are required temporarily or otherwise for the construction, maintenance or operation of the pipeline including, without limiting the generality of the foregoing, lands required for camps, roads and other related works, the Governor in Council may, by order, after consultation with the member of the Executive Council of Yukon who is responsible for the lands, take the administration and control of them from the Commissioner and transfer the administration of those lands to the Minister.

• 37(2)Company to provide plans of lands required

  Foothills Pipe Lines (South Yukon) Ltd. shall provide the Minister with a copy of all plans, profiles and books of reference certified by the designated officer pursuant to subsection 7(2) showing the real property in Yukon vested in Her Majesty in right of Canada that are required to permit construction of the pipeline.

• 37(3)Grant of easement to company

  Where Foothills Pipe Lines (South Yukon) Ltd. provides the Minister with a copy of the plans, profiles and books of reference referred to in subsection (2), the Governor in Council may authorize, on such terms and conditions as he considers appropriate, the grant of an easement to Foothills Pipe Lines (South Yukon) Ltd. for the construction of the pipeline and, on the giving of leave to open the last section or part of the pipeline by the Commission of the Regulator and subject to subsection (4), for the purpose of the operation and maintenance thereof.

• 37(4)Company to file plan of survey

  Within two years after leave to open the last section or part of the pipeline has been given by the Commission of the Regulator or any further period, not exceeding six months, that the Governor in Council may approve, Foothills Pipe Lines (South Yukon) Ltd. shall send to the Surveyor General at Ottawa a plan of survey under Part II of the Canada Lands Surveys Act, for confirmation by the Surveyor General under that Act, as an official plan in respect of lands in Yukon vested in Her Majesty in right of Canada required for the maintenance and operation of the pipeline.

• 38Offences
• 38(1)

  Every person who wilfully and without lawful excuse fails to comply with is guilty of an offence and liable on summary conviction to a fine not exceeding ten thousand dollars.

• 38(1)(a)

  a term or condition of a certificate of public convenience and necessity declared to be issued by subsection 21(1),

• 38(1)(b)

  an order issued by the Commission of the Regulator or the designated officer in relation to such a certificate, or

• 38(1)(c)

  any other provision of this Act,

• 38(2)Officers, etc., of companies

  Where a company commits an offence under this Act, any officer, director or agent of the company 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 company has been prosecuted or convicted.

• 38(3)Continuing offence

  Where an offence under this Act is committed or continued 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.

• 38(4)Limitation

  Proceedings in respect of an offence under this Act may be instituted at any time within one year of the time the subject-matter of the proceedings arose.

• 38(5)Consent of Attorney General of Canada

  Proceedings in respect of an offence under this Act may not be instituted without the consent of the Attorney General of Canada.

• 39Transitional

  When Part I, except sections 21, 29 and 30, ceases to be in force, any power given to the Minister, the Agency or the designated officer with respect to a certificate of public convenience and necessity declared to be issued by this Act is transferred to the Commission of the Regulator.

• 40Part I ceases to apply
• 40(1)

  Subject to subsection (2), section 4 and Part I, except sections 21, 29 and 30, cease to be in force one year after the day on which leave to open the last section or part of the pipeline is given by the Commission of the Regulator.

• 40(2)Extension of Act

  Where, prior to the day on which leave to open the last section or part of the pipeline is given by the Commission of the Regulator, a certificate of public convenience and necessity is issued for the construction of the lateral pipeline to transmit northern Canadian gas, referred to in the Agreement as the Dempster Line, and both Houses of Parliament, by joint resolution, direct that section 4 and that part of Part I that would cease to be in force under subsection (1) shall continue in force with such amendments as are provided in that resolution, section 4 and that part of Part I as amended by the joint resolution continue in force in accordance with that joint resolution.

• 196Northern Pipeline Act

  The obligations under sections 13 and 14 of the Northern Pipeline Act, as those sections read immediately before the day on which this Act receives royal assent, continue to apply in respect of the fiscal year beginning on April 1, 2012 but do not apply in respect of any subsequent fiscal year.