Vol. 150, No. 5 — March 9, 2016


SOR/2016-26 February 19, 2016


Canada Oil and Gas Operations Financial Requirements Regulations

P.C. 2016-74 February 19, 2016

Whereas, pursuant to subsection 15(1) of the Canada Oil and Gas Operations Act (see footnote a), a copy of the proposed Canada Oil and Gas Operations Financial Requirements 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;

Therefore, 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 14(1) (see footnote b) of the Canada Oil and Gas Operations Act (see footnote c), makes the annexed Canada Oil and Gas Operations Financial Requirements Regulations.

Canada Oil and Gas Operations Financial Requirements Regulations



1 The following definitions apply in these Regulations.

Act means the Canada Oil and Gas Operations Act. (Loi)

Board means the National Energy Board. (Office)

Financial Resources

Proof of financial resources

2 (1) For the purposes of subsection 26.1(1) of the Act, the proof that an applicant has the necessary financial resources is to be made by the applicant providing the Board with a statement of its net assets or of funding arrangements that it has made that demonstrates to the Board’s satisfaction that it is able to pay the applicable amount referred to in that subsection.

Substantiating documents

(2) The statement must be accompanied by one or more of the following documents that substantiate it:

Audited statement and documents

(3) For greater certainty, the Board may require that the statement and substantiating documents be audited by a qualified independent auditor and that the applicant provide it with a report of the audit that is signed by that auditor.

Financial Responsibility

Requirements of pooled fund

3 (1) A pooled fund that is established for the purposes of subsection 27(1.01) of the Act must be located and administered in Canada.

Permitted uses

(2) The fund is to be used only to make payments under subsection 27(2) of the Act. However, the fund may be used to make payments

Payment on demand

(3) Moneys that are required to be paid out of the fund must be paid by the administrator of the fund on demand.

Obligations of administrator

(4) The administrator of the fund must

Reimbursement into pooled fund

4 For the purposes of subsection 27(5) of the Act, the reimbursement into the pooled fund of an amount that is paid out of it must be made within seven days after the day on which the payment is made.

Board Recommendation Regarding Lesser Financial Requirements

Circumstances relating to recommendation

5 (1) For the purposes of subsection 27.1(1) of the Act, the Board may make a recommendation to the Minister in respect of an applicant if the Board is satisfied that the estimated total of the losses, damages, costs and expenses — other than losses of non-use value — for which the applicant may be liable under paragraphs 26(1)(b) and (2)(b) of the Act in connection with the proposed work or activity to which the application pertains is less than the amount referred to in paragraph 26(2.2)(a) or (d) of the Act.


(2) The recommendation must identify the hazards that are relevant to the proposed work or activity and must include an assessment of the risks associated with each event that could occur in connection with each of those hazards and that could result in debris, in a spill or in an authorized discharge, emission or escape of oil or gas.

Required information

(3) The following information must accompany the recommendation:

Additional information

(4) The Board may submit to the Minister any other information that it considers to be pertinent.

Coming into Force

S.C. 2015. c. 4

6 These Regulations come into force on the day on which section 20 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.

N.B. The Regulatory Impact Analysis Statement for these Regulations appears following SOR/2016-23, Canada–Newfoundland and Labrador Offshore Petroleum Financial Requirements Regulations.