Administrative Monetary Penalties Regulations (National Energy Board)

SOR/2013-138NATIONAL ENERGY BOARD ACT
Registration 2013-06-18
Administrative Monetary Penalties Regulations (National Energy Board)
P.C. 2013-825 2013-06-18The National Energy Board, pursuant to section 134Footnote a of the National Energy Board ActFootnote b, makes the annexed Administrative Monetary Penalties Regulations (National Energy Board).
Calgary, May 17, 2013
SHERI YOUNG
Secretary of the National Energy Board
His Excellency the Governor General in Council, on the recommendation of the Minister of Natural Resources, pursuant to section 134Footnote a of the National Energy Board ActFootnote b, approves the annexed Administrative Monetary Penalties Regulations (National Energy Board), made by the National Energy Board on May 17, 2013.

Return to footnote aS.C. 2012, c. 19, s. 98
Return to footnote bR.S., c. N-7
Interpretation

Definition of Act
1 In these Regulations, Act means the National Energy Board Act.

Designated Provisions

Marginal note:Provisions of the Act or regulations

2 (1) The contravention of a provision of the Act or any of its regulations that is set out in column 1 of Schedule 1 is designated as a violation that may be proceeded with in accordance with sections 134 to 154 of the Act.

Marginal note:Orders and decisions

(2) The contravention of any order or decision made under the Act is designated as a violation that may be proceeded with in accordance with sections 134 to 154 of the Act.

Marginal note:Terms and conditions

(3) The failure to comply with any term or condition of any certificate, licence, permit, leave or exemption that is granted under the Act is designated as a violation that may be proceeded with in accordance with sections 134 to 154 of the Act.

Marginal note:Discrepancy

(4) In the event of a discrepancy between the short-form descriptions in Schedule 1 and the provision to which it pertains, the provision prevails.

Classification

Marginal note:Provisions

3 (1) The violation of a provision that is set out in column 1 of Schedule 1 is classified as a Type A or Type B violation as set out in column 3 of that Schedule.

Marginal note:Orders, decisions, terms or conditions

(2) The contravention of an order or decision referred to in subsection 2(2) or the failure to comply with a term or condition referred to in subsection 2(3) is a Type B violation.

Penalties

Marginal note:Penalty

4 (1) The penalty for a violation is the amount set out in column 2 or 3 of Schedule 2 that corresponds to the type of violation, the total gravity value set out in column 1 and whether the violation was committed by an individual or a person other than an individual.

Marginal note:Determination of final gravity level

(2) The total gravity value in respect of a violation is to be established by considering each of the criteria in column 1 of the table to this section, by ascribing to each criterion an appropriate gravity value, having regard to the circumstances of the violation, from those set out in column 2 and by adding the values obtained.
Table

Item
Column 1
Column 2

Criteria
Effect on Gravity Value

1
Whether the person who committed the violation has other violations in the previous 7 years
0 to +2

2
Whether the person derived any competitive or economic benefit from the violation
0 to +2

3
Whether the person made reasonable efforts to mitigate or reverse the violation’s effects
–2 to +2

4
Whether there was negligence on the part of the person who committed the violation
0 to +2

5
Whether the person provided all reasonable assistance to the Board with respect to the violation
–2 to +2

6
Whether the person, after becoming aware of the violation, promptly reported the violation to the Board
–2 to +2

7
Whether the person has taken any steps to prevent recurrence of the violation
–2 to +2

8
For type B violations, whether the violation was primarily a reporting or record-keeping requirement failure
–2 to 0

9
Whether there are any other aggravating factors in relation to the risk of harm to people or the environment
0 to +3

Service of Documents

Marginal note:Manner of service

5 (1) The service of a document required or authorized under section 139, 144 or 147 of the Act is to be made by

(a) in the case of an individual,

(i) leaving a copy of it with the individual,
(ii) 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, or
(iii) sending 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; and

(b) in the case of a person other than an individual,

(i) leaving 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,
(ii) sending a copy of it by registered mail, courier or fax to the person’s head office or place of business, or
(iii) sending a copy of it by electronic means other than by fax to any individual referred to in subparagraph (i).

Marginal note:Deemed service

(2) A document — other than a document that is personally served — is considered to be served

(a) in the case of a copy that is left with an adult referred to in subparagraph (1)(a)(ii), on the day on which the document is left with the adult;
(b) in the case of a copy that is sent by registered mail or courier, on the tenth day after the date indicated in the receipt issued by the postal or courier service; and
(c) in the case of a copy sent by fax or other electronic means, on the day on which it is transmitted.

Coming into Force

Marginal note:S.C. 2012, c. 19

*6 These Regulations come into force on the day on which section 98 of the Jobs, Growth and Long-term Prosperity Act comes into force, but if they are registered after that day, they come into force on the day on which they are registered.
Return to footnote *[Note: Regulations in force July 3, 2013, see SI/2013-69.]

SCHEDULE 1(Subsections 2(1) and (4) and subsection 3(1))Violations

PART 1
National Energy Board Act

Item
Column 1
Column 2
Column 3

Provision
Short-form Description
Classification

1
29(1)
Construction or operation of a pipeline by a person other than a company
Type B

2
30(1)
Operation of a pipeline without a certificate and leave to open
Type B

3
31(a)
Construction of a pipeline without a certificate
Type B

4
31(c)
Construction of a pipeline without an approved plan, profile and book of reference
Type B

5
45(1)
Failure to submit for approval a plan, profile and book of reference
Type B

6
47(1)
Opening a pipeline or section of pipeline for transmission without leave
Type B

7
51
Failure to provide assistance
Type B

8
58.1
Construction or operation of an international power line without a permit or certificate
Type B

9
58.26(a)
Construction of an international or interprovincial power line without approval of a plan, profile and book of reference
Type B

10
58.29(1)
Construction or operation of an interprovincial or international power line without leave
Type B

11
58.31(1)
Construction of a facility or excavation without leave
Type B

12
58.31(2)
Failure to obtain required leave
Type B

13
58.34(1)
Abandonment of a designated international power line or interprovincial power line without leave
Type B

14
74(1)
Failure to obtain required leave
Type B

15
75
Failure to do as little damage as possible in exercising the powers granted and to compensate for damage
Type B

16
81(1)
Failure to obtain required leave
Type B

17
108(1)
Construction of a pipeline without certificate or order
Type B

18
109
Construction or operation of a pipeline without a certificate or order
Type B

19
112(1)
Construction of a facility or excavation without leave
Type B

20
112(2)
Failure to obtain required leave
Type B

PART 2
National Energy Board Onshore Pipeline Regulations

Item
Column 1
Column 2
Column 3

Provision
Short-form Description
Classification

1
4
Failure to ensure that a pipeline is designed, constructed, operated or abandoned as prescribed
Type B

2
5.1(1)
Failure to submit prescribed documents for approval
Type B

3
6
Failure to design, construct, operate or abandon as prescribed
Type B

4
6.1
Failure to establish, implement and maintain a management system as prescribed
Type B

5
6.2(1)
Failure to appoint an accountable officer and to ensure that the management system is established, implemented and maintained as prescribed
Type B

6
6.2(2)
Failure to notify the Board as prescribed
Type A

7
6.2(3)
Failure to ensure that the accountable officer has authority as prescribed
Type B

8
6.3(1)
Failure to establish policies and goals as prescribed
Type B

9
6.3(2)
Failure to base the management system on established policies and goals as prescribed
Type B

10
6.3(3)
Failure of the accountable officer to prepare and communicate a policy statement as prescribed
Type B

11
6.4
Failure to have an organizational structure as prescribed
Type B

12
6.5
Failure to establish, develop, implement, maintain and document processes as prescribed
Type B

13
6.6
Failure to complete an annual report and submit a statement as prescribed
Type B

14
9
Failure to develop detailed designs of a pipeline, and to submit them when required
Type B

15
10(1)
Failure to develop a documented risk assessment as prescribed
Type B

16
10(2)
Failure to submit a documented risk assessment to the Board when required to do so
Type A

17
11
Failure to design and equip a station as prescribed
Type B

18
12
Failure to equip a compressor station or pump station with an alternate source of power as prescribed
Type B

19
13
Failure to locate, service or design a storage facility as prescribed
Type B

20
14
Failure to develop prescribed specifications, and to submit them to the Board when required
Type B

21
15
Failure to develop a quality assurance program as prescribed
Type B

22
16
Failure to develop a joining program as prescribed, and to submit it to the Board when required
Type B

23
17
Failure to examine each joint as prescribed
Type B

24
18
Failure to contract for services as prescribed
Type B

25
19(a)
Failure to ensure that the construction activities do not create a hazard to the public or the environment
Type B

26
19(b)
Failure to inform persons of safety practices and procedures as prescribed
Type B

27
20(1)
Failure to develop a construction safety manual and to submit it to the Board
Type B

28
20(1.1)
Failure to set out responsibilities as prescribed
Type B

29
20(2)
Failure to keep a copy of the construction safety manual or relevant parts of it as prescribed
Type B

30
21
Failure to restore the right-of-way and temporary work areas of a pipeline as prescribed
Type B

31
22
Failure to ensure that there is no undue interference with the use of a utility or private road during the construction of a pipeline
Type B

32
23
Failure to develop a pressure testing program as prescribed, and to submit it to the Board when required
Type B

33
24
Conducting a pressure test without required permits
Type B

34
25
Failure to perform pressure testing as prescribed
Type B

35
26
Failure to minimize the number of welds that are not pressure-tested as prescribed
Type B

36
27
Failure to develop, regularly review and update as required operation and maintenance manuals as prescribed and to submit them to the Board when required
Type B

37
28
Failure to inform persons of practices and procedures and to make available to them the relevant portion of operation and maintenance manuals as prescribed
Type B

38
29
Failure to contract for services as prescribed
Type B

39
30(a)
Failure to take reasonable steps to ensure that maintenance activities do not create a hazard to the public or the environment
Type B

40
30(b)
Failure to take reasonable steps to inform persons of safety and environmental protection practices and procedures as prescribed
Type B

41
31(1)
Failure to develop a maintenance safety manual and to submit it to the Board when required
Type B

42
31(1.1)
Failure to set out responsibilities as prescribed
Type B

43
31(2)
Failure to keep a copy of the maintenance safety manual or the relevant parts of it as prescribed
Type B

44
32(1)
Failure to develop, implement and maintain an emergency management program as prescribed
Type B

45
32(1.1)
Failure to develop, regularly review and update an emergency procedures manual
Type B

46
32(2)
Failure to submit to the Board the emergency procedures manual and any updates
Type A

47
33
Failure to establish and maintain liaison as prescribed, and failure to consult as prescribed
Type B

48
34
Failure to inform persons who may be associated with an emergency response activity as prescribed
Type B

49
35
Failure to develop a continuing education program as prescribed
Type B

50
36(a)
Failure to maintain communication facilities as prescribed
Type B

51
36(b)
Failure to periodically test instruments and equipment as prescribed
Type B

52
36(c)
Failure to continually record as prescribed
Type B

53
36(d)
Failure to clearly mark valves as prescribed
Type B

54
36(e)
Failure to clearly mark valves as prescribed
Type B

55
36(f)
Failure to post signage as prescribed
Type B

56
37
Failure to develop and implement a pipeline control system as prescribed
Type B

57
38(1)
Performing welding on a liquid-filled pipeline other than as prescribed
Type B

58
38(2)
Failure to treat weld as a temporary installation and replace that installation with a permanent one as soon as is practicable
Type B

59
38(3)
Failure to submit specifications, procedures and results for approval as prescribed
Type B

60
39
Failure to develop a surveillance and monitoring program as prescribed
Type B

61
40
Failure to develop, implement and maintain an integrity management program as prescribed
Type B

62
41(1)
Failure to document the particulars of a defect on a pipeline as prescribed
Type B

63
41(2)
Failure to submit the documentation in 41(1) when required
Type A

64
42
Failure to submit a proposed plan as prescribed
Type B

65
43
Failure to submit an application for a change or increase as prescribed
Type B

66
44
Failure to submit an application for proposed deactivation as prescribed
Type B

67
45
Failure to submit an application for reactivation as prescribed
Type B

68
45.1
Failure to submit an application for decommissioning as prescribed
Type B

69
46
Failure to develop and implement a training program as prescribed
Type B

70
47
Failure to develop, implement and maintain a safety management program as prescribed
Type B

71
47.1
Failure to develop, implement and maintain a security management program as prescribed
Type B

72
48
Failure to develop, implement and maintain an environmental protection program as prescribed
Type B

73
51(a)
Failure to notify as prescribed
Type A

74
51(b)
Failure to submit to the Board on request a crossing report as prescribed
Type A

75
52(1)
Failure to notify and submit a report to the Board as prescribed
Type A

76
53(1)
Failure to conduct inspections and audits as prescribed
Type B

77
53(2)
Failure to document the audit as prescribed
Type B

78
54(1)
Failure to inspect the construction of a pipeline as prescribed
Type B

79
54(2)
Performance of an inspection by a person who does not have sufficient expertise, knowledge and training to competently carry out the inspection
Type B

80
55
Failure to conduct and document audits as prescribed
Type B

81
56
Failure to retain records as prescribed
Type A

PART 3
National Energy Board Processing Plant Regulations

Item
Column 1
Column 2
Column 3

Provision
Short-form Description
Classification

1
4(1)
Failure to ensure that the company’s processing plant is designed, constructed, operated or abandoned as prescribed
Type B

2
5
Failure to ensure that the company’s processing plant is designed, constructed, operated or abandoned as prescribed
Type B

3
9
Failure to develop and submit to the Board the prescribed program
Type B

4
10
Failure to develop, implement and maintain quality control and quality assurance programs as prescribed
Type B

5
11
Failure to conduct a risk analysis as prescribed
Type B

6
12
Failure to ensure that employees have required knowledge and training
Type B

7
13
Failure to develop and implement a safety program as prescribed
Type B

8
14
Failure to develop and implement an environmental protection program as prescribed
Type B

9
15
Failure to contract for services as prescribed
Type B

10
16
Failure to develop, implement and maintain detailed designs of its processing plant
Type B

11
17
Failure to ensure that a processing plant is equipped with an emergency power source
Type B

12
18
Failure to ensure that each tank, bullet, sphere or other container is designed, constructed and maintained as prescribed
Type B

13
19
Failure to ensure that process equipment and flammable vapour sources are separated as prescribed
Type B

14
20
Failure to ensure that process vessels and equipment are vented as prescribed
Type B

15
21
Failure to equip all flare headers as prescribed
Type B

16
22
Failure to ensure reliable fire suppression systems as prescribed
Type B

17
23
Failure to equip a processing plant with systems as prescribed
Type B

18
24
Failure to equip a processing plant with alarm devices as prescribed
Type B

19
25
Failure to ensure that all pressure-relief piping and systems are designed and constructed as prescribed
Type B

20
26(a)
Failure to ensure construction does not create a detriment or hazard as prescribed
Type B

21
26(b)
Failure to inform persons at the construction site as prescribed
Type B

22
26(c)
Failure to inform persons on the work site as prescribed
Type B

23
27(1)
Failure to develop, implement and submit a construction safety manual
Type B

24
27(2)
Failure to keep a copy of the construction safety manual at the processing plant as prescribed
Type B

25
28(1)
Failure to ensure direct supervision of pressure tests as prescribed
Type B

26
28(2)
Failure to ensure the independence of the test supervisor as prescribed
Type B

27
28(3)
Failure to date and sign records
Type B

28
29
Failure of the company to develop and implement a non-destructive weld examination program as prescribed
Type B

29
30(1)(a)
Failure to develop, implement, regularly review and update operations manuals as prescribed
Type B

30
30(1)(b)
Failure to keep a copy of the operations manuals as prescribed
Type B

31
30(2)
Failure to ensure that the operations manuals contain the prescribed procedures
Type B

32
31(2)
Failure to develop and implement a safe-work permit system as prescribed
Type B

33
32
Failure to ensure that a processing plant is staffed as prescribed
Type B

34
33(a)
Failure to ensure maintenance activities do not create a detriment or hazard as prescribed
Type B

35
33(b)
Failure to inform persons at a maintenance site as prescribed
Type B

36
34
Operation of equipment with a hazard-detection alarm or shutdown device bypassed or rendered inoperable
Type B

37
35(a)
Failure to develop, implement, regularly review and update an emergency procedures manual
Type B

38
35(b)
Failure to submit the emergency procedures manual as prescribed
Type A

39
35(c)
Failure to submit updates as prescribed
Type A

40
36
Failure to establish and maintain liaison as prescribed and failure to consult as prescribed
Type B

41
37
Failure to inform persons who may be associated with an emergency response activity as prescribed
Type B

42
38
Failure to develop and implement a continuing educational program as prescribed
Type B

43
39(a)
Failure to maintain communication facilities as prescribed
Type B

44
39(b)
Failure to retain incident data as prescribed
Type B

45
39(c)
Failure to clearly mark valves as prescribed
Type B

46
39(d)
Failure to post signage as prescribed
Type B

47
39(e)
Failure to post signage as prescribed
Type B

48
40(a)
Failure to test hazard-detection devices as prescribed
Type B

49
40(b)
Failure to document and maintain prescribed records
Type B

50
41
Failure to develop and implement a processing plant integrity program as prescribed
Type B

51
42
Failure to notify of plant deactivation as prescribed
Type A

52
43.1
Failure to submit an application for decommissioning as prescribed
Type B

53
44
Failure to develop and implement a training program as prescribed
Type B

54
45
Failure to ensure visitors are made familiar with the safety program as prescribed
Type B

55
46
Failure to provide immediate notice of any incident and to submit prescribed reports
Type B

56
47(a)
Failure to notify of any hazard as prescribed
Type A

57
47(b)
Failure to provide a report as prescribed
Type B

58
48
Failure to report burning as prescribed
Type A

59
49(1.1)
Failure to notify as prescribed
Type A

60
50
Failure to prepare and keep current a report as prescribed
Type B

61
51
Failure to regularly conduct balance analysis as prescribed
Type B

62
52(1)
Failure to conduct audits and inspections as prescribed
Type B

63
52(2)
Failure to document an audit as prescribed
Type B

64
53
Failure to inspect as prescribed
Type B

65
54
Failure to annually audit the competency of all employees as prescribed
Type B

66
55
Failure to develop, implement and maintain a record retention and handling program
Type A

PART 4
National Energy Board Pipeline Crossing Regulations, Part 1

Item
Column 1
Column 2
Column 3

Provision
Short-form Description
Classification

1
4
Failure to construct or install a facility as prescribed or to obtain leave
Type B

2
5
Failure to install an overhead line across a pipeline as prescribed or to obtain leave
Type B

3
6
Failure to excavate as prescribed or to obtain leave
Type B

4
7
Failure to meet the circumstances and conditions as prescribed or to obtain leave
Type B

PART 5
National Energy Board Pipeline Crossing Regulations, Part II

Item
Column 1
Column 2
Column 3

Provision
Short-form Description
Classification

1
4(1)
Failure to establish a public awareness program as prescribed
Type B

2
4(2)
Failure to assess the effectiveness of a public awareness program as prescribed and to maintain a record of the assessment
Type B

3
5(1)
Failure to develop guidelines as prescribed, and to make them public
Type B

4
5(2)
Failure to submit guidelines for approval as prescribed
Type B

5
6(1)
Failure to inform as prescribed
Type A

6
7
Failure to provide information and assistance as prescribed
Type B

7
8
Failure to send comments to the Board as prescribed
Type A

8
9(1)(a)
Failure to inform the facility owner or excavator as prescribed
Type B

9
9(1)(b)
Failure to mark the location of pipes as prescribed
Type B

10
9(1)(c)
Failure to explain the significance of stakes as prescribed
Type B

11
10(a)
Failure to carry out inspections as prescribed
Type B

12
10(b)
Failure to inspect all exposed pipe prior to backfilling
Type B

13
10(c)
Failure to maintain a record of all inspection findings and observations
Type A

14
10(d)
Failure to include the prescribed information in the inspection record
Type A

15
11
Failure to maintain records as prescribed
Type A

16
12
Failure to provide a list as prescribed
Type A

17
13
Failure to report as prescribed
Type A

18
14(2)
Failure to notify the Board as prescribed
Type A

19
15(1)
Failure to inspect and to inform as prescribed
Type B

20
15(2)
Failure to inform the Board as prescribed
Type A

21
16
Failure to make records and other materials available to the prescribed persons and to assist as prescribed
Type B

PART 6
Power Line Crossing Regulations

Item
Column 1
Column 2
Column 3

Provision
Short-form Description
Classification

1
3
Failure to construct a facility or excavate as prescribed or failure to obtain leave
Type B

2
4
Failure to construct a power line as prescribed or failure to obtain leave
Type B

SCHEDULE 2(Subsection 4(1))

PENALTIES

Item
Column 1
Column 2
Column 3

Gravity Level
Type A Violation
Type B Violation

Individual
Any Other Person
Individual
Any Other Person

1
–3 or less
$250
$1,000
$1,000
$4,000

2
–2
$595
$2,375
$4,000
$16,000

3
–1
$990
$3,750
$7,000
$28,000

4
0
$1,365
$5,025
$10,000
$40,000

5
1
$1,740
$6,300
$13,000
$52,000

6
2
$2,115
$7,575
$16,000
$64,000

7
3
$2,490
$8,850
$19,000
$76,000

8
4
$2,865
$10,125
$22,000
$88,000

9
5 or more
$3,000
$12,000
$25,000
$100,000