Acts and Regulations

2013, c.12 - An Act to Amend the Oil and Natural Gas Act

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2013, c.12
An Act to Amend the
Oil and Natural Gas Act
Assented to June 21, 2013
Her Majesty, by and with the advice and consent of the Legislative Assembly of New Brunswick, enacts as follows:
1Section 1 of the Oil and Natural Gas Act, chapter O-2.1 of the Acts of New Brunswick, 1976, is amended
(a) in the French version by repealing the following definitions:
« forage d’essai »;
« forage d’essai profond »;
« forage sismique »;
(b) in the French version by adding the following definitions in alphabetical order:
“trou d’essai” désigne un trou réalisé en vue d’une opération de prospection géophysique, mais ne comprend ni un trou de tir, ni un puits foré pour extraire du pétrole, du gaz naturel ou de l’eau, ni un trou d’essai profond;(testhole)
“trou d’essai profond” désigne un trou que le Ministre a classé comme trou d’essai profond;(deep testhole)
“trou de tir” désigne un trou réalisé en vue de tirer une charge d’explosifs dans le cadre d’une opération de prospection sismique, que le tir soit ou non exécuté;(shothole)
2Section 9 of the Act is amended by adding after subsection (1) the following:
Right of entry
9(1.1)A person acting on behalf of a licensee, lessee, geophysical licensee, permittee or well licensee for the purpose of entering into an agreement referred to in paragraph (1)(a) shall be a member in good standing of the International Right of Way Association or shall meet any equivalent qualifications that are acceptable to the Minister.
3Section 13 of the Act is amended by adding after subsection (2) the following:
13(2.1)The Minister may, at any time, impose any additional terms and conditions on a geophysical licence that the Minister considers appropriate.
4Subsection 16(2) of the French version of the Act is amended
(a) in paragraph a) by striking out “des forages d’essai” and substituting “des trous d’essai”;
(b) in paragraph b) by striking out “des forages d’essai” and substituting “des trous d’essai”;
(c) in paragraph c) by striking out “des forages d’essai” and substituting “des trous d’essai”.
5The Act is amended by adding after section 16 the following:
Terms and conditions on a geophysical permit
16.01The Minister may, at any time, impose any terms and conditions on a geophysical permit that the Minister considers appropriate.
Abandonment of shotholes and testholes
16.02(1)A permittee shall plug a shothole or testhole in accordance with the regulations or with the method required by the Minister.
16.02(2)If a conflict exists between the regulations and the method required by the Minister, the method required by the Minister prevails.
6Section 16.3 of the Act is amended by adding after paragraph (b) the following:
(b.1) proof of liability insurance coverage in the amount of $10,000,000 for the applicant or his or her agents;
7Subsection 16.5(2) of the Act is amended
(a) in paragraph (a) of the English version by striking out “and” at the end of the paragraph;
(b) in paragraph (b) by striking out the period at the end of the paragraph and substituting “; and”;
(c) by adding after paragraph (b) the following:
(c) proof of liability insurance coverage in the amount of $10,000,000 for the person to whom the well licence is to be transferred.
8The Act is amended by adding after section 16.5 the following:
Liability insurance
16.51(1)During the term of a well licence, the well licensee shall maintain liability insurance coverage in the amount of $10,000,000 for the licensee or his or her agents.
16.51(2)A well licensee shall notify the Minister immediately of any change in the liability insurance coverage, including a cancellation.
9Section 20 of the Act is amended
(a) by repealing subsection (1) and substituting the following:
20(1)An on-shore licence to search is valid for a term of three years.
(b) by adding after subsection (1) the following:
20(1.01)The Minister may renew an on-shore licence to search for any number of one year terms that the Minister considers appropriate if the conditions prescribed by regulation are met.
20(1.02)The Minister may impose any terms and conditions on a renewal that he or she considers appropriate.
(c) by repealing subsection (1.1) and substituting the following:
20(1.1)An application for the renewal of an on-shore licence to search shall be made to the Minister at least 30 days before the expiry date of the licence to search or its renewal but no more than 90 days before that date.
10Paragraph 54(c) of the Act is repealed and the following is substituted:
(c) in the form of
(i) a deposit of money,
(ii) a negotiable bond signed over to the Province,
(iii) an irrevocable documentary credit or letter of credit from a bank or other lending institution acceptable to the Minister which is negotiable only by the Minister, or
(iv) a bond from a surety company licensed to do business in the Province.
11Section 59 of the Act is amended
(a) by renumbering the section as subsection 59(1);
(b) in subsection (1)
(i) by repealing paragraph (i) and substituting the following:
(i) governing the method, manner and location in which and where geophysical exploration is to be carried out;
(ii) by adding after paragraph (i) the following:
(i.1) respecting the testing of water wells, including the circumstances under which the testing is required, the method of taking the test, the submission of the results of the testing to the Minister and the Minister of Environment and Local Government and the notification of any person of the results of the testing;
(iii) by adding after paragraph (x) the following:
(x.1) respecting the methods of operation to be observed in relation to the plugging of a shothole or testhole;
(c) by adding after subsection (1) the following:
59(2)A regulation made under paragraph (1)(i.1) may adopt by reference, in whole or in part, with such changes as the Lieutenant-Governor in Council considers necessary, any code, standard, procedure or specification and may require compliance with the code, standard, procedure or specification.
59(3)The power to adopt by reference and require compliance with a code, standard, procedure or specification in subsection (2) includes the power to adopt a code, formula, standard, procedure or specification as it may be amended from time to time.
59(4)Subject to subsection (5), a regulation made under subsection (1) may be retroactive to June 1, 2013.
59(5)Subsection (4) expires on December 1, 2013.
12Sections 1 to 8, 10 and 11 of this Act come into force on June 1, 2013.