Acts and Regulations

G-2.11 - Gas Distribution Act, 1999

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Current to 1 January 2024
CHAPTER G-2.11
Gas Distribution Act, 1999
Assented to March 12, 1999
Her Majesty, by and with the advice and consent of the Legislative Assembly of New Brunswick, enacts as follows:
Definitions
1In this Act
“affiliate” means a corporation that is affiliated with another corporation as defined in subsection 1(2) of the Business Corporations Act; (affilié)
“alternative form of regulation” means a method of establishing just and reasonable rates and charges by performance-based regulations, including earnings sharing, price caps, price indexing formulas, ranges of authorized rates of return and the reduction or suspension of regulatory requirements, without regard to methods based strictly on the cost of service, rate base and rate of return;(autre mode de réglementation)
“alternative form of regulation” Repealed: 2011, c.56, s.1
“approval” means an approval for a customer to receive gas by delivery at an eligible facility that is owned or operated by the customer and is located in the distribution area;(approbation)
“approved customer” means a customer who holds an approval; (client approuvé)
“associate” means associate as defined in subsection 1(1) of the Business Corporations Act and “associated” has a corresponding meaning;(associé)
“associated unit of measure” Repealed: 2016, c.41, s.1
“beneficial ownership” includes ownership through a trustee, legal representative, agent, affiliate, associate or other intermediary; (propriété à titre bénéficiaire)
“biogas” means a gaseous mixture that is recovered from the anaerobic decomposition of biomass and that consists primarily of methane and carbon dioxide and contains other constituents that prevent it from meeting the standard for injection into the nearest pipeline; (biogas)
“biomass” means the biodegradable fraction of products, waste and residues of a biological origin, including plant and animal substances, originating from agriculture, forestry and other industries, such as fishing and aquaculture, as well as the fraction of waste, including industrial and municipal waste, of a biological origin;(biomasse)
“bituminous shale” means bituminous shale as defined in the Bituminous Shale Act; (schistes bitumineux)
“Board” means the New Brunswick Energy and Utilities Board continued under the Energy and Utilities Board Act; (Commission)
“building” means any structure or installation on, within or under which gas is or can be used for any purpose; (bâtiment)
“certificate” means a gas marketer’s certificate issued under this Act and “certified” has a corresponding meaning;(certificat)
“city gate station” means the point or measuring station at which a gas distributor receives gas from a high pressure pipeline and at which gas is metered, reduced in pressure and prepared for distribution to individual customers;(poste de livraison)
“corporation” means a body corporate wherever or however incorporated;(corporation)
“Court” means The Court of Appeal of New Brunswick as defined in the Judicature Act; (Cour)
“Court of King’s Bench” means The Court of King’s Bench of New Brunswick as defined in the Judicature Act;(Cour du Banc du Roi)
“Court of Queen’s Bench” Repealed: 2023, c.17, s.101
“customer” means any person, other than a gas distributor, who uses or consumes gas in the Province for residential, institutional, commercial, industrial, manufacturing or marketing purposes or any similar purpose;(client)
“customer service” is a service that is not a natural monopoly and includes appliance service, yardline or houseline maintenance, meter reading, billing, collections, call centre, load balancing, peaking service, supplier of last resort service, storage and arranging for pipeline capacity on a transmission line or a pipeline regulated by the United States Federal Energy Regulatory Commission;(service à la clientèle)
“deliver” means to transmit, transport, move or conduct gas by any means other than by a gas distribution system and “delivery” has a corresponding meaning;(livrer)
“distribute” means to transmit, transport, move or conduct gas by means of a gas distribution system and “distribution” has a corresponding meaning; (distribuer)
“distribution area” means the area of the Province for which the Board has granted the general franchise holder a permit to construct a pipeline under the Pipeline Act, 2005;(zone de distribution)
“electronic hearing” Repealed: 2006, c.E-9.18, s.98
“eligible facility” means a facility that is used for institutional, commercial, industrial or manufacturing purposes or any similar purpose;(installation admissible)
“environment” Repealed: 2005, c.P-8.5, s.83
“former act” means the Gas Distribution Act, chapter G-2.1 of the Acts of New Brunswick, 1981;(ancienne loi)
“franchise agreement” means an agreement required under section 7; (contrat de concession)
“franchise area” means the area of the Province in which a gas distributor has been granted the right by either the Lieutenant-Governor in Council or the Board to distribute gas and offer customer services to customers;(zone visée par la concession)
“gas” means any hydrocarbon or mixture of hydrocarbons that, at a temperature of 15 °C and an absolute pressure of 101.325 kPa, is in a gaseous state, and includes any renewable gas or hydrogen;(gaz)
“gas distribution system” means all or part of a gas pipeline, up to and including the meter, that is used to distribute gas to a building where it is used by a customer; (système de distribution de gaz)
“gas distributor” means a person owning, operating, managing or controlling a gas distribution system and who has been granted a general franchise, a liquefied natural gas franchise, a local gas producer franchise or a renewable gas or hydrogen franchise under the former act or this Act to distribute gas to customers in the Province, and includes a person to whom the rights and obligations under a franchise agreement have been assigned; (distributeur de gaz)
“gas marketer” means a person who holds a certificate issued by the Board under section 61;(agent de commercialisation de gaz)
“general franchise” means a franchise to distribute gas and provide customer services in the whole of the Province, subject to single end use franchises, liquefied natural gas franchises, local gas producer franchises and renewable gas or hydrogen franchises that have been or may be granted under the former act or this Act, and subject to any order of the Board made under subsection 9(2); (concession générale)
“general franchise holder” means a gas distributor who has been granted a general franchise and includes its successors and assigns;(titulaire de la concession générale)
“generally accepted public utility practice” means any of the practices, methods or acts engaged in or adopted by the public utility industry in Canada or any of the practices, methods or acts which, in the exercise of reasonable judgment, and in light of the facts known at the time a decision is made, would be expected to accomplish the desired result in a manner which is consistent with the laws of Canada, New Brunswick and the other provinces and territories of Canada;(pratique généralement reconnue au sein des services publics)
“ground disturbance” Repealed: 2005, c.P-8.5, s.83
“hearing” means a hearing in any proceeding;(audience)
“high pressure pipeline” means a pipeline operated at a pressure greater than twenty-five hundred kilopascals;(gazoduc à haute pression)
“highway” Repealed: 2005, c.P-8.5, s.83
“inspector” means an inspector appointed under this Act; (inspecteur)
“licence” means a licence to deliver gas to a customer at an eligible facility owned or operated by the customer;(licence)
“licence” “licensee” Repealed: 2005, c.P-8.5, s.83
“liquefied natural gas franchise” means a franchise granted for distribution of gas under subsection 6.1(1); (concession de gaz naturel liquéfié)
“liquefied natural gas plant” means a plant whose components are used to store liquefied natural gas and which may also be used to condition, liquefy or vapourize natural gas;(usine de traitement de gaz naturel liquéfié)
“local gas producer” means a person having the right to remove gas from a well in New Brunswick, and “produce” and “production” have corresponding meanings; (producteur local de gaz)
“local gas producer franchise” means a franchise granted under this Act or the former act to a local gas producer for an area that is less than the whole of the Province; (concession de producteur local de gaz)
“local government” means a local government as defined in subsection 1(1) of the Local Governance Act;(gouvernement local)
“low volume consumer” means a person who consumes no more than two thousand gigajoules of gas per year; (petit consommateur)
“Minister” means the member of the Executive Council designated by the Lieutenant-Governor in Council as being responsible for Energy and includes any person designated by the member to act on the member’s behalf;(Ministre)
“municipality” Repealed: 2017, c.20, s.76
“oral hearing” Repealed: 2006, c.E-9.18, s.98
“permit” “permittee” Repealed: 2005, c.P-8.5, s.83
“pipeline” means any pipe, system or arrangement of pipes wholly within the Province for distributing gas and all property and works of any kind used in connection therewith but does not include a transmission line;(gazoduc)
“prescribed” means prescribed in the regulations made under this Act;(prescrit)
“processing plant” means a plant for extracting from gas hydrocarbon sulphide, helium, ethane, natural gas liquids or other substances, but does not include a wellhead separator, treater or dehydrator;(usine de traitement)
“professional engineer” Repealed: 2005, c.P-8.5, s.83
“regulatory deferral account” means the deferral account established by the Board in its order dated June 23, 2000;(compte de report réglementaire)
“renewable gas” means gas that meets the standard for injection into the closest pipeline and that is either synthetic gas derived from biomass or gas derived from the processing of biogas;(gaz renouvelable)
“renewable gas infrastructure” means all buildings, equipment and pipelines used for the production, manufacturing, distribution and processing of renewable gas or hydrogen;(infrastructure pour gaz renouvelable)
“renewable gas or hydrogen franchise” means a franchise granted under this Act in accordance with subsection 6.01(1);(concession de gaz renouvelable ou d’hydrogène)
“road” Repealed: 2005, c.P-8.5, s.83
“single end use franchise” means a franchise granted to a single end user for one specific industrial facility owned and operated by the single end user; (concession d’utilisateur ultime)
“single end user” means a person who receives gas directly from a transmission line for use at one specific industrial facility owned and operated by that person; (utilisateur ultime)
“standard construction regulation” Repealed: 2005, c.P-8.5, s.83
“start up costs” Repealed: 2006, c.E-9.18, s.98
“supplier of last resort” means a person who sells or distributes gas where a gas marketer fails to supply gas to a customer on a timely basis and no other gas marketer is able or willing to do so;(fournisseur de dernier ressort)
“transmission line” means a pipeline as defined in the National Energy Board Act (Canada); (canalisation de transport)
“well” means a hole(puits)
(a) made or being made by drilling, boring, or in any other manner from which any oil or gas is obtained or obtainable, other than renewable gas, or made or being made to obtain gas, other than renewable gas;
(b) used, drilled, or being drilled to obtain water for injection or for injecting natural gas, air, or water into an underground formation; or
(c) used, drilled, or being drilled to a depth beyond four hundred and fifty metres to obtain geological or geophysical information,
and includes any method by which gas is extracted or removed from bituminous shale or coal;
“works” means any building, equipment, apparatus, mechanism, machinery or instrument incidental to operating a pipeline and includes a processing plant, compressor station, meter, connection, or loading or other terminal facility; (ouvrage)
“written hearing” Repealed: 2006, c.E-9.18, s.98
2001, c.13, s.1; 2002, c.30, s.15; 2003, c.16, s.1; 2004, c.20, s.32; 2005, c.7, s.32; 2005, c.P-8.5, s.83; 2006, c.3, s.1; 2006, c.E-9.18, s.98; 2011, c.56, s.1; 2012, c.52, s.24; 2013, c.29, s.13; 2016, c.37, s.82; 2016, c.41, s.1; 2017, c.20, s.76; 2019, c.29, s.182; 2023, c.2, s.184; 2023, c.17, s.101; 2024, c.4, s.1; 2024, c.28, s.29
1
GRANTING OF
GAS DISTRIBUTION RIGHTS
Act binds Crown
2The Crown is bound by this Act.
Who may distribute gas
3No person other than
(a) a gas distributor, or
(b) an owner of a transmission line,
may distribute gas to customers in the Province.
Grant of authorization to distribute by LGIC
4(1)On or before January 31, 2000, applications for a general franchise, a local gas producer franchise, a single end use franchise or an application under subsection 6(2) shall be made to the Lieutenant-Governor in Council and the Lieutenant-Governor in Council may exercise all the powers provided to the Board in Part 1 of this Act.
4(2)The Lieutenant-Governor in Council may authorize the Minister to act on his or her behalf or assist him or her under subsection (1).
4(3)After January 31, 2000, the Board shall exercise the powers assigned to it in Part 1 with respect to all applications referred to in subsection (1) made to, but not by then decided by, the Lieutenant-Governor in Council.
4(4)The Minister, on behalf of the Lieutenant-Governor in Council, shall deliver all applications referred to in subsection (3) to the Board as soon as practicable after January 31, 2000 for determination.
4(5)The Minister may assess a processing fee, require each applicant for a franchise to pay part of this fee and require the applicant who is granted a franchise to pay the balance.
Grant of authorization to distribute by Board
5(1)Between February 1, 2000, and December 31, 2014, both dates inclusive, an application for a general franchise, a local gas producer franchise, a liquefied natural gas franchise or a single end use franchise, or an application under subsection 6(2), shall be made to the Board.
5(1.1)After December 31, 2014, an application for a general franchise, a local gas producer franchise or a renewable gas or hydrogen franchise, a liquefied natural gas franchise or an application under subsection 6(2) shall be made to the Board.
5(1.2)After December 31, 2014, an application for a single end use franchise shall be made to the Lieutenant-Governor in Council.
5(2)The Board may grant a general franchise, a local gas producer franchise, a liquefied natural gas franchise or a single end use franchise to a person who has submitted an application under subsection (1).
5(2.1)The Board may grant a general franchise, a local gas producer franchise, a renewable gas or hydrogen franchise or a liquefied natural gas franchise to a person who has submitted an application under subsection (1.1).
5(2.2)Subject to subsection 13.1(1), the Lieutenant-Governor in Council may grant a single end use franchise to a person who has submitted an application under subsection (1.2).
5(3)Subject to subsections 11(1) and 11.1(2), the term of a franchise granted under subsection (2) or (2.1) shall be twenty years.
5(3.1)The term of a single end use franchise granted under subsection (2.2) shall be not less than twenty years.
5(4)The grant of a franchise under subsection (2) or (2.1) shall be subject to such terms and conditions as the Board considers necessary in the public interest.
5(4.1)The grant of a single end use franchise under subsection (2.2) shall be subject to such terms and conditions as the Lieutenant-Governor in Council considers necessary in the public interest.
5(5)The grant of a franchise by the Board under this section is subject to the approval of the Lieutenant-Governor in Council, which shall be granted or refused unconditionally and without altering, changing or varying the Board’s terms and conditions.
5(6)Subject to subsection (6.1), the Board may assess a processing fee, require each applicant for a franchise to pay part of this fee and require the applicant who is granted a franchise to pay the balance.
5(6.1)The Lieutenant-Governor in Council may assess a processing fee and require an applicant for a single end use franchise to pay this fee.
2006, c.3, s.2; 2014, c.46, s.1; 2024, c.4, s.1
Local gas producers
6(1)When a local gas producer has submitted an application for a local gas producer franchise to the Board to distribute gas and offer a customer service within a gas distributor’s general franchise, the Board may authorize the producer to do so, where it is satisfied that the customers of the gas distributor would not be materially prejudiced by authorizing the local gas producer to serve the part of the gas distributor’s general franchise to which the application relates.
6(2)Where a local gas producer submits an application to connect its pipeline with the gas distribution system of a gas distributor in order to sell gas either to the gas distributor, to an industrial customer or to a transmission line, the Board may authorize the producer to do so, where it is satisfied that
(a) the customers of the gas distributor would not be materially prejudiced by authorizing the local gas producer to connect this pipeline with the gas distributor’s gas distribution system, and
(b) the local gas producer can meet the gas distributor’s standards for gas quality and pressure.
Renewable gas or hydrogen franchise
2024, c.4, s.1
6.01(1)When a person has submitted an application for a renewable gas or hydrogen franchise to the Board to distribute renewable gas or hydrogen, or both, and offer a customer service within a gas distributor’s general franchise, the Board may authorize the person to do so if it is satisfied that the customers of the gas distributor would not be materially prejudiced by authorizing the person to serve the part of the gas distributor’s general franchise to which the application relates.
6.01(2)When a person submits an application to connect its pipeline with the gas distribution system of a gas distributor in order to sell renewable gas or hydrogen, or both, either to the gas distributor, to an industrial customer or to a transmission line, the Board may authorize the person to do so if it is satisfied that
(a) the customers of the gas distributor would not be materially prejudiced by authorizing the person to connect this pipeline with the gas distributor’s gas distribution system, and
(b) the person can meet the gas distributor’s standards for gas quality and pressure.
2024, c.4, s.1
Liquefied natural gas franchise
6.1(1)Where a person submits an application for a liquefied natural gas franchise to the Board to distribute gas and to offer a customer service within a gas distributor’s general franchise, the Board may authorize the applicant to do so where the Board is satisfied that
(a) the applicant meets one of the requirements set out in subsection (2) in respect of a liquefied natural gas plant located in New Brunswick,
(b) each facility to which gas from the liquefied natural gas plant is distributed will consume, on average, more than 2000 gigajoules of gas per day,
(c) each facility to which the gas is distributed is located within the same local government in which the liquefied natural gas plant is located,
(d) each facility to which the gas is distributed receives the gas directly from a pipeline owned, operated or leased by the applicant, a corporation affiliated with the applicant or
(i) a corporation in which the applicant, or a corporation affiliated with the applicant, beneficially owns or controls, directly or indirectly, shares or securities currently convertible into shares that carry at least 5% of the voting rights under all circumstances or by reason of an occurrence of an event that has occurred and is continuing or a currently exercisable option or right to purchase such shares or such convertible securities, or
(ii) a partnership or limited partnership in which the applicant, or a corporation affiliated with the applicant, has at least a 5% interest,
(e) each facility to which the gas is distributed is owned by the applicant, a corporation affiliated with the applicant or
(i) a corporation in which the applicant, or a corporation affiliated with the applicant, beneficially owns or controls, directly or indirectly, shares or securities currently convertible into shares that carry at least 5% of the voting rights under all circumstances or by reason of an occurrence of an event that has occurred and is continuing or a currently exercisable option or right to purchase such shares or such convertible securities, or
(ii) a partnership or limited partnership in which the applicant, or a corporation affiliated with the applicant, has at least a 5% interest, and
(f) if the facility to which the gas is distributed also receives gas under a single end use franchise agreement, that such agreement will not be terminated as a result of the facility receiving gas from the applicant.
6.1(2)An applicant for a liquefied natural gas franchise shall meet one of the following criteria:
(a) the applicant is the owner of a liquefied natural gas plant;
(b) if the owner of the liquefied natural gas plant is a corporation, the applicant, with respect to that corporation, beneficially owns or controls, directly or indirectly, shares or securities currently convertible into shares that carry at least 5% of the voting rights under all circumstances or by reason of an occurrence of an event that has occurred and is continuing or a currently exercisable option or right to purchase such shares or such convertible securities;
(c) if the owner of the liquefied natural gas plant is a partnership or limited partnership, the applicant has at least a 5% interest in the partnership.
2006, c.3, s.3; 2016, c.41, s.2; 2017, c.20, s.76
Connection of liquefied natural gas line to another gas line
6.2(1)A person who owns a liquefied natural gas plant in New Brunswick may apply to the Board to connect a pipeline from the plant with the gas distribution system of a gas distributor in order to sell gas either to the gas distributor or to a customer or to access a transmission line.
6.2(2)The Board may authorize the applicant to connect the pipeline referred to in subsection (1) where it is satisfied that
(a) the customers of the gas distributor would not be materially prejudiced by authorizing the applicant to connect the pipeline with the gas distributor’s gas distribution system, and
(b) the applicant will meet the gas distributor’s standards for gas quality and pressure.
2006, c.3, s.3
Franchise agreement required to distribute gas
7(1)No gas distributor shall distribute gas to customers in the Province unless it has executed a franchise agreement with the Minister and the franchise agreement has not been terminated according to its terms or otherwise by law.
7(2)Every single end use franchise holder shall execute a franchise agreement with the Minister in a form to be provided by the Minister.
7(3)A gas distributor may assign its rights and obligations under a franchise agreement with the written consent of the Minister, which consent may be unreasonably and arbitrarily withheld.
7(4)If the Minister consents to an assignment, the assignee shall sign a novation agreement where it shall agree to be bound by all the terms, covenants and conditions in the franchise agreement as if the assignee had executed the franchise agreement with the Minister.
2001, c.13, s.2
Scope of franchise agreements
8(1)A franchise agreement referred to in section 7 may
(a) define the franchise area;
(b) require a gas distributor to confer with any local government within the franchise area, or any specific official of the local government, about its plans for constructing its gas distribution system;
(c) require a gas distributor to provide financial security for performing its obligations under the franchise agreement in an amount that the Minister shall determine;
(d) require a gas distributor to carry out undertakings given in its franchise application as material terms and conditions of the franchise agreement;
(e) require a gas distributor to carry out any terms and conditions imposed by the Board under subsection 5(4); and
(f) specify such other matters as the Minister considers necessary in the public interest.
8(2)The Lieutenant-Governor in Council may authorize the Minister to act for the Province in respect of all matters relating to the negotiation and execution of a franchise agreement.
2005, c.P-8.5, s.83; 2017, c.20, s.76
Breach of franchise agreements
9(1)The Board has full authority and jurisdiction to inquire into, determine and report to the Lieutenant-Governor in Council on whether a gas distributor has breached a material term or condition of a franchise agreement.
9(2)Where the Board reports to the Lieutenant-Governor in Council that a gas distributor has breached a material term or condition of a franchise agreement or has committed an act entitling the Province to terminate the franchise agreement, then subject to the approval of the Lieutenant-Governor in Council, the Board may
(a) require any financial security that the gas distributor has provided as a term or condition of the franchise agreement to be forfeited in whole or in part; and the surety of the financial security shall then pay it to the Province forthwith;
(b) apply any financial security forfeited under paragraph (a) to provide gas and customer services in the franchise area;
(c) require the gas distributor to provide further financial security;
(d) permit a person to perform the term or condition of the franchise agreement that the gas distributor has breached and permit the person to use the gas distribution system of the gas distributor who is a party to the franchise agreement;
(e) revoke the franchise agreement and grant the franchise to a person and permit the person to use the gas distribution system of the gas distributor with compensation payable by the person to be determined by proceedings under Part II of the Expropriation Act, agreement or otherwise by law;
(f) amend the franchise agreement; or
(g) require any combination of paragraphs (a) to (f).
2006, c.3, s.4; 2011, c.56, s.2
Amendment of franchise agreements
10(1)After January 31, 2000, no amendment to a franchise agreement is effective unless it is in writing, has been executed by the parties and has been approved by the Board.
10(1.01)After December 31, 2014, subsection (1) does not apply to a single end use franchise agreement.
10(1.1)Despite subsection (1), an amendment to the general franchise agreement, including a restatement of the general franchise agreement or a renewal or extension of the general franchise agreement by the Minister under section 11.1, is not subject to the approval of the Board.
10(2)After January 31, 2000, the Board may recommend an amendment to any franchise agreement entered into under section 7, other than a general franchise agreement, to the Province and the gas distributor.
10(2.1)After December 31, 2014, subsection (2) does not apply to a single end use franchise agreement.
10(3)The Board shall not make an order under subsection (1) or (2) until after it has held a proceeding on notice, to be given in such manner and to such persons as it may direct, including the surety of any security provided under a franchise agreement.
10(4)The Board may give or refuse its approval or recommendation under this section, subject to such terms and conditions as it considers necessary in the public interest.
2006, c.3, s.5; 2014, c.46, s.2; 2016, c.41, s.3
Renewal of franchise agreement by Board
11(1)Where the term of a franchise agreement, other than a general franchise agreement, has expired or will expire within one year, the Board may renew the franchise agreement or extend its term for such a period of time and upon such terms and conditions as it considers necessary in the public interest.
11(1.1)After December 31, 2014, subsection (1) does not apply to a single end use franchise agreement.
11(2)The Board shall not make an order under subsection (1) until after it has held a proceeding and notice of that proceeding shall be given in such manner and to such persons and local governments as it may direct.
11(3)Where the term of the franchise agreement has expired or is likely to expire before the Board completes the proceeding referred to in subsection (2), the Board may make such an order as may be necessary to continue the right until an order is made under subsection (1).
11(4)The Minister may assess a franchise renewal fee and require the gas distributor whose franchise is renewed to pay it.
2006, c.3, s.6; 2014, c.46, s.3; 2017, c.20, s.76; 2019, c.12, s.13
Renewal of general franchise agreement by Minister
11.1(1)Subject to subsection (1.1), the Minister, with the approval of the Lieutenant-Governor in Council, may renew a general franchise agreement or extend its term at any time during the term of the agreement.
11.1(1.1)If the general franchise agreement provides the general franchise holder with a right to renew the general franchise agreement or to extend its term and the general franchise holder exercises the right to renew or extend, the Minister shall renew the general franchise agreement or extend its term, as the case may be, for the term specified in the general franchise agreement.
11.1(2)Repealed: 2016, c.41, s.4
11.1(3)The Minister may assess a franchise renewal fee for a renewal under subsection (1) and require the gas distributor whose general franchise is renewed to pay it.
11.1(4)Repealed: 2016, c.41, s.4
2006, c.3, s.7; 2016, c.41, s.4
Renewal of single end use franchise agreements
11.2(1)After December 31, 2014, the Lieutenant-Governor in Council may renew a single end use franchise agreement or extend its terms at any time during the term of the agreement.
11.2(2)A renewal under subsection (1) shall be for a term of not less than 20 years.
11.2(3)The Lieutenant-Governor in Council may assess a renewal fee and require a single end use franchise holder whose franchise is renewed to pay this fee.
2014, c.46, s.4
Cancellation and termination of existing rights
12(1)Upon the commencement of this Act, all right, title, interest, authority, grant, franchise and power previously vested in Moncton Utility Gas Limited and ICG Brunswick Gas (1985) Inc. to distribute gas to customers in all or any part of the Province is cancelled and terminated.
12(2)No compensation is payable by the Crown or by any person authorized under this Act or the former act to distribute gas for any right, title, interest, authority, grant or franchise or power cancelled and terminated under subsection (1).
12(3)Moncton Utility Gas Limited remains subject to the provisions in Part 2, Part 9 and Part 10 of this Act.
Application and fee for single end use franchise
13(1)Between February 1, 2000, and December 31, 2014, both dates inclusive, subject to subsection (1.1), an application for a single end use franchise made to the Board under subsection 5(1) shall be decided by the Board and the grant of the franchise is subject to such terms and conditions as the Board considers necessary in the public interest.
13(1.1)The Board may grant a single end use franchise only if
(a) the franchise applied for is in an area not actually serviced by the general franchise holder, and
(b) the Board is satisfied, after considering the factors prescribed by regulation, that it is not economically feasible for the general franchise holder to extend a gas distribution service to the applicant at that time.
13(2)The holder of a single end use franchise shall pay a franchise fee of fifty thousand dollars to the Minister of Finance and Treasury Board on or before December 31st of the year in which the franchise is granted, and thereafter shall pay an annual franchise fee of fifty thousand dollars, adjusted annually by the latest change in the New Brunswick consumer price index, using 1999 as a base year.
2006, c.3, s.8; 2014, c.46, s.5; 2016, c.41, s.5; 2019, c.29, s.70
Granting, renewing or extending single end use franchise, fee
13.1(1)The Lieutenant-Governor in Council may grant, renew or extend a single end use franchise only if the industrial facility for which the application is made has an installed consumption capacity of at least five million gigajoules per year.
13.1(2)The installed consumption capacity requirement in subsection (1) does not apply to an industrial facility for which a single end use franchise was granted, renewed or extended on or before December 31, 2014.
13.1(3)The holder of a single end use franchise granted or renewed on or before December 31, 2014, shall pay a franchise fee in accordance with subsection 13(2).
13.1(4)The holder of a single end use franchise granted or renewed after December 31, 2014 shall pay a franchise fee calculated at a rate of ten cents per gigajoule of gas consumed per year by the industrial facility for which the franchise was granted or renewed.
13.1(5)Repealed: 2015, c.6, s.8
13.1(6)The fee imposed under subsection (4) is payable to the Minister of Finance and Treasury Board and
(a) shall be remitted in quarterly payments on January 1, April 1, July 1, and October 1 of each year; and
(b) shall be accompanied by a written statement from the owner of the transmission line that supplies gas to the single end use franchise holder certifying the amount of gas consumed by the industrial facility in the relevant period.
13.1(7)After March 31, 2021, a franchise fee imposed under subsection (4) shall be adjusted as of the first day of April each year in accordance with the formula prescribed by regulation.
2014, c.46, s.6; 2015, c.6, s.8; 2019, c.29, s.70
Natural Gas Distribution Fund
13.2(1)There is established a fund called the Natural Gas Distribution Fund.
13.2(2)The purpose of the Natural Gas Distribution Fund is to provide funding to the general franchise holder to be applied to its revenue requirement.
13.2(3)The Minister of Finance and Treasury Board shall be the custodian and trustee of the Fund.
13.2(4)The Fund shall be held for the purposes of this section in a separate account in the Consolidated Fund.
13.2(5)The fees referred to in subsections 13.1(3) and (4) shall be paid into the Fund.
13.2(6)All interest arising from the Fund shall be paid into and form part of the Fund.
13.2(7)Within 30 days after a fee is paid into the Fund under subsection (5), the fee and any interest accrued shall be paid to the general franchise holder.
13.2(8)The general franchise holder shall apply any amount received under subsection (7) to its revenue requirement for the year following the year the amount is received.
2014, c.46, s.6; 2016, c.41, s.6; 2019, c.29, s.70
A gas distribution system is a public utility and a gas distributor is a common carrier of gas
14(1)A gas distribution system owned or operated by a gas distributor is deemed to be a public utility and is subject to Part 3 of the Energy and Utilities Board Act so far as it is consistent with this Act.
14(2)A gas distributor is deemed to be a common carrier of gas and shall act as a common carrier of gas.
2006, c.E-9.18, s.98
Gas distribution and provision of customer service
15(1)A gas distributor shall distribute gas to any building along the line of any of its pipelines upon the request in writing of the owner, occupant or other person in charge of the building.
15(2)Upon application, the Board may order a gas distributor to distribute gas or provide any customer service or to cease to distribute gas or provide any customer service.
2
PIPELINE CONSTRUCTION
AND OPERATION
PERMITS AND LICENCES
Repealed: 2005, c.P-8.5, s.83
2005, c.P-8.5, s.83
Repealed
16Repealed: 2005, c.P-8.5, s.83
2005, c.7, s.32; 2005, c.P-8.5, s.83
Repealed
17Repealed: 2005, c.P-8.5, s.83
2005, c.P-8.5, s.83
Repealed
18Repealed: 2005, c.P-8.5, s.83
2000, c.26, s.143; 2005, c.P-8.5, s.83
Repealed
19Repealed: 2005, c.P-8.5, s.83
2005, c.P-8.5, s.83
Repealed
20Repealed: 2005, c.P-8.5, s.83
2005, c.P-8.5, s.83
Repealed
21Repealed: 2005, c.P-8.5, s.83
2005, c.P-8.5, s.83
Repealed
22Repealed: 2005, c.P-8.5, s.83
2005, c.P-8.5, s.83
Repealed
23Repealed: 2005, c.P-8.5, s.83
2005, c.P-8.5, s.83
Repealed
24Repealed: 2005, c.P-8.5, s.83
2005, c.P-8.5, s.83
Repealed
25Repealed: 2005, c.P-8.5, s.83
2005, c.P-8.5, s.83
Repealed
26Repealed: 2005, c.P-8.5, s.83
2005, c.P-8.5, s.83
Prohibition against disposal of a gas distribution system, or sale or merger of a gas utility, without leave of the Board
27(1)Without first obtaining an order from the Board granting leave, no gas distributor shall
(a) sell, lease or otherwise dispose of its gas distribution system as a whole or substantially as a whole;
(b) sell, lease or otherwise dispose of any part of a system described in paragraph (a) that is used or useful in serving the public; or
(c) if a sole corporation, amalgamate with any other corporation.
27(2)Without first obtaining an order granting leave from the Board, no person shall acquire directly or indirectly 20 per cent or more of the beneficial ownership of a gas distributor.
27(3)This section does not apply to a mortgage or charge to secure any loan or indebtedness or to secure any bond, debenture or other evidence of indebtedness.
27(4)An application for leave under this section shall be made to the Board, which may grant or refuse leave.
27(5)An amalgamation agreement between corporations proposing to amalgamate is void if the Board refuses to grant leave under this section, even if it has been adopted in accordance with section 122 of the Business Corporations Act.
27(6)A certificate of amalgamation issued under section 124 of the Business Corporations Act is void if issued before the Board grants leave for the amalgamation.
2001, c.13, s.3; 2023, c.2, s.184
A gas distributor must be authorized to do business in New Brunswick
28A gas distributor shall be a corporation, partnership or limited partnership authorized by the laws of the Province to carry on business in the Province.
2001, c.13, s.4; 2005, c.P-8.5, s.83
Repealed
29Repealed: 2005, c.P-8.5, s.83
2005, c.P-8.5, s.83
Repealed
30Repealed: 2005, c.P-8.5, s.83
2005, c.P-8.5, s.83
Repealed
31Repealed: 2005, c.P-8.5, s.83
2005, c.P-8.5, s.83
Repealed
32Repealed: 2005, c.P-8.5, s.83
2000, c.26, s.143; 2005, c.P-8.5, s.83
Repealed
33Repealed: 2005, c.P-8.5, s.83
2005, c.P-8.5, s.83
Repealed
34Repealed: 2005, c.P-8.5, s.83
2005, c.P-8.5, s.83
Repealed
35Repealed: 2005, c.P-8.5, s.83
2005, c.P-8.5, s.83
Repealed
36Repealed: 2005, c.P-8.5, s.83
2005, c.P-8.5, s.83
Repealed
37Repealed: 2005, c.P-8.5, s.83
2005, c.P-8.5, s.83
Repealed
38Repealed: 2005, c.P-8.5, s.83
2005, c.P-8.5, s.83
Repealed
39Repealed: 2005, c.P-8.5, s.83
2000, c.26, s.143; 2005, c.P-8.5, s.83
Repealed
40Repealed: 2005, c.P-8.5, s.83
2005, c.P-8.5, s.83
Repealed
41Repealed: 2005, c.P-8.5, s.83
2005, c.P-8.5, s.83
Repealed
42Repealed: 2005, c.P-8.5, s.83
2005, c.P-8.5, s.83
Repealed
43Repealed: 2005, c.P-8.5, s.83
2005, c.P-8.5, s.83
Repealed
44Repealed: 2005, c.P-8.5, s.83
2005, c.P-8.5, s.83
Repealed
45Repealed: 2005, c.P-8.5, s.83
2005, c.P-8.5, s.83
Repealed
46Repealed: 2005, c.P-8.5, s.83
2005, c.P-8.5, s.83
3
GAS STORAGE
Prohibition against injecting gas into an underground storage facility without authorization
47No person shall inject gas for storage into an underground storage facility unless he or she is a holder of an underground storage lease issued under the Underground Storage Act.
Authorization of use of underground storage facilities
48(1)Subject to any terms relating to the physical integrity of the underground storage facility that it considers necessary, the Board may by order authorize a person to inject gas into an underground storage facility, store gas in it and remove gas from it, and to enter into and upon the land in the area and use the land for that purpose.
48(2)Subject to any pertinent agreement, the persons authorized by orders under subsection (1)
(a) shall make to the owners of any gas or oil rights or of any right to store gas in the area just and equitable compensation for the gas or oil rights or the right to store gas, and
(b) shall make to the owner of any land in the area just and equitable compensation for any damage necessarily resulting from the exercise of the authority given by the order.
48(3)No action or other proceeding lies for compensation payable under this section and failing agreement, the amount shall be determined by the Court of King’s Bench under Part 2 of the Expropriation Act.
2023, c.17, s.101
Shared use of underground storage facilities
49(1)Upon application by a gas distributor, the Board may direct a person having an underground storage facility that is not in full use to provide all or part of the facility to the applicant, upon such terms and conditions as the Board may determine.
49(2)No person shall enter into an agreement or renew an agreement with any other person for the storage of gas unless the Board has approved
(a) the parties to the agreement or renewal,
(b) the period for which the agreement or renewal is to operate, and
(c) the storage that is the subject of the agreement or renewal.
Licences relating to wells
50(1)The Minister shall refer to the Board every application for granting a licence under the Oil and Natural Gas Act relating to a well in an underground storage facility, and the Board shall report to the Minister on it.
50(2)If the applicant does not have authority to store gas in the underground storage facility or, in the Board’s opinion, the special circumstances of the case require a hearing, then the Board may hold a hearing before reporting to the Minister.
50(3)After submitting any report made under subsection (1) to the Minister, the Board shall send a copy to each of the parties, and that report shall be deemed to be an order of the Board.
50(4)The Minister shall grant or refuse to grant the licence under the Oil and Natural Gas Act in accordance with the report.
4
REGULATION OF
GAS DISTRIBUTORS AND
CUSTOMER SERVICES
Regulation of sale of gas by gas distributors
51(1)No gas distributor shall sell gas except in accordance with this section.
51(2)The general franchise holder may sell gas or offer to sell gas to a customer.
51(3)If the general franchise holder sells or offers to sell gas to a customer, the general franchise holder
(a) shall do so in accordance with the terms and conditions prescribed by regulation, and
(b) may do so without a certificate issued by the Board under section 61.
51(4)A gas distributor shall be a supplier of last resort or shall arrange for a supplier of last resort.
51(5)A gas distributor who acquires gas for sale shall do so in accordance with the terms and conditions prescribed by regulation.
51(6)An associate or affiliate of a gas distributor may only sell gas in accordance with section 58.
2003, c.16, s.3; 2016, c.41, s.8
Regulation of rates and tariffs
52(1)No gas distributor shall charge for the distribution of gas except in accordance with an order of the Board.
52(2)The Board is not bound by the terms of any contract between a gas distributor and a customer.
52(2.1)The Board may, in accordance with generally accepted public utility practice, make an order permitting the general franchise holder to create or establish a regulatory variance account in respect of the occurrence of an event for the purpose of minimizing the rate impact of the costs arising from the event.
52(3)The Board may make an order approving or fixing just and reasonable rates and tariffs that a gas distributor shall charge its customers for the distribution of gas or for supplier of last resort services.
52(4)The Board may, if not satisfied that the rates or tariffs applied for are just and reasonable, fix such other rates and tariffs as it finds to be just and reasonable.
52(5)In approving or fixing just and reasonable rates and tariffs, the Board
(a) may adopt any method or technique it considers appropriate, including an alternative form of regulation,
(b) may recognize or consider a regulatory variance account as part of the regulated assets of the general franchise holder, and may determine whether and how amounts recorded in the account shall be included in the revenue requirement of the general franchise holder,
(c) shall recognize or consider the regulatory deferral account as part of the regulated assets of the general franchise holder to be included in the revenue requirement of the general franchise holder in accordance with this Act,
(d) shall not permit the general franchise holder to add to or earn a return on the regulatory deferral account and shall not recognize or consider these amounts as part of the regulated assets of the general franchise holder,
(e) shall not recognize or consider any financing or carrying costs incurred by the general franchise holder in relation to the balance in the regulatory deferral account as part of the regulated assets of the general franchise holder, and
(f) may recognize or consider any financing or costs incurred by the general franchise holder as part of the regulated assets of the general franchise holder in relation to the amounts that the general franchise holder has invested in the development, construction and maintenance of renewable gas infrastructure.
52(6)An order under this section may include conditions, classifications or practices applicable to the distribution of gas, including rules for calculating rates.
2003, c.16, s.4; 2011, c.56, s.3; 2016, c.41, s.9; 2024, c.4, s.1
Balance in regulatory deferral account
52.01On the commencement of this section, the balance in the regulatory deferral account shall be $144.5 million.
2016, c.41, s.10
Regulatory deferral account – 2017 to 2019
52.02For the period commencing on January 1, 2017, and ending on December 31, 2019, no portion of the regulatory deferral account shall be included in the revenue requirement of the general franchise holder.
2016, c.41, s.10
Return on equity – 2017 to 2019
52.03(1)For the period commencing on January 1, 2017, and ending on December 31, 2019, no amounts shall be credited towards the balance in the regulatory deferral account except as provided for in this section.
52.03(2)If, between January 1, 2017, and December 31, 2019, both dates inclusive, the general franchise holder recovers in any year an amount from rates and tariffs or from any other source that results in an actual return on equity in excess of 10.9 per cent, the amount that exceeds 10.9 per cent shall be allocated as follows:
(a) if the difference between 10.9 per cent and the amount that exceeds 10.9 per cent does not exceed 200 basis points, an amount equal to the difference shall be credited towards the balance in the regulatory deferral account; and
(b) if the difference between 10.9 per cent and the amount that exceeds 10.9 per cent exceeds 200 basis points,
(i) with respect to the portion of the difference that does not exceed 200 basis points, the portion shall be credited towards the balance in the regulatory deferral account; and
(ii) with respect to the portion of the difference that exceeds 200 basis points,
(A) an amount equal to half of the portion shall be credited towards the balance in the regulatory deferral account, and
(B) the remaining amount shall be applied to reduce the revenue requirement of the general franchise holder for the following year and this reduction shall be applied to decrease rates and tariffs for one or more classes of customers other than the Small General Service class of customers for that year.
2016, c.41, s.10
Recovery of balance
52.04(1)For the period commencing on January 1, 2020, and ending on the date the balance of the regulatory deferral account is recovered, the balance remaining in the regulatory deferral account after the amounts, if any, have been credited in accordance with section 52.03, shall be recovered by including in the revenue requirement of the general franchise holder those amounts authorized by the Board in accordance with this section.
52.04(2)On application by the general franchise holder for an order approving or fixing rates and tariffs in accordance with section 52, the Board shall authorize the recovery of the balance in the regulatory deferral account in any manner it considers appropriate, including determining the period during which the balance is to be recovered and the amounts to be included in the revenue requirement of the general franchise holder in any year.
52.04(3)Despite subsection (2), the Board shall authorize the recovery of $100 million of the balance in the regulatory deferral account on a fixed straight line amortization basis for the period commencing on January 1, 2020, and ending on December 31, 2045, unless the balance of the regulatory deferral account has been fully recovered before that date.
2016, c.41, s.10
Return on equity
52.05For the purposes of the approval or fixing of rates and tariffs under sections 52.06 and 52.07, the Board shall permit a return on equity of 10.9 per cent.
2016, c.41, s.10
Order re rates and tariffs – Small General Service class of customers
52.06(1)The general franchise holder shall file with the Board an application for an order approving or fixing rates and tariffs in accordance with section 52 for those customers who, on the commencement of this section, belong to the Small General Service class of customers.
52.06(2)The order shall take effect on January 1, 2018, and remain in effect until December 31, 2019, both dates inclusive.
52.06(3)Subject to subsection 52(2.1) and subsection (4), the Board shall approve or fix an increase in the variable portion of the rates and tariffs approved or fixed by the Board with respect to the general franchise holder’s application dated July 25, 2016, as follows:
(a) 3 per cent, effective January 1, 2018; and
(b) 3 per cent, effective January 1, 2019.
52.06(4)If, at any time between January 1, 2018, and December 31, 2019, both dates inclusive, the Board approves or fixes an average increase of more than 3 per cent to rates under the Electricity Act that is to be applied to the residential rate classes, the Board shall make an order approving or fixing a similar increase in rates and tariffs for those customers who, on the commencement of this section, belong to the Small General Service class of customers and a corresponding reduction in the revenue requirement of the general franchise holder shall be applied to decrease rates and tariffs for one or more other classes of customers as proposed by the general franchise holder.
2016, c.41, s.10
Rates and tariffs freeze – 2017 to 2019
52.07 Subject to subsection 52(2.1), clause 52.03(2)(b)(ii)(B), subsection 52.06(4) and section 52.08, the rates and tariffs approved or fixed by the Board with respect to the general franchise holder’s application dated July 25, 2016, for the following classes of customers shall, in aggregate, be subject to a rates and tariffs freeze and shall remain in effect until December 31, 2019:
(a) Mid-General Service Class;
(b) Large General Service Class;
(c) Contract General Service Class;
(d) Industrial Contract General Service Class; and
(e) Off-Peak Service Class.
2016, c.41, s.10
Order re new classes of customers
52.08If the Board combines any of the classes of customers referred to in section 52.07 into a new class or classes of customers, the revenue requirement that was used to determine the rates and tariffs approved or fixed by the Board with respect to the general franchise holder’s application dated July 25, 2016, shall apply to the new class or classes of customers and the rates and tariffs for the new class or classes of customers shall, subject to subsection 52(2.1), clause 52.03(2)(b)(ii)(B) and subsection 52.06(4), remain in effect until December 31, 2019.
2016, c.41, s.10
Repealed
52.1Repealed: 2016, c.41, s.11
2011, c.56, s.4; 2016, c.41, s.11
Repealed
52.2Repealed: 2016, c.41, s.12
2011, c.56, s.4; 2016, c.41, s.12
Repealed
52.3Repealed: 2016, c.41, s.13
2011, c.56, s.4; 2016, c.41, s.13
Repealed
52.4Repealed: 2016, c.41, s.14
2011, c.56, s.4; 2016, c.41, s.14
Prohibited actions and proceedings
52.5(1)No cause of action arises and no action or other proceeding for compensation, damages or otherwise lies or shall be instituted against the Minister, the Crown in right of the Province or any employee, corporation or agency of the Crown as a direct or indirect result of the amendments to this Act enacted in 2011 or any regulations, Orders in Council, Board orders or Ministerial orders or directives made under the authority of the amendments to this Act enacted in 2011.
52.5(2)An action or any other proceeding that was commenced before the commencement of this section and that is directly or indirectly based on or related to the amendments to this Act enacted in 2011 or any regulations, Orders in Council, Board orders or Ministerial orders or directives made under the authority of the amendments to this Act enacted in 2011 is deemed to be discontinued or abandoned without costs.
52.5(3)This section shall be deemed to have come into force on December 9, 2011.
2011, c.56, s.4
Repealed
53Repealed: 2003, c.16, s.5
2003, c.16, s.5
Burden of proof
54In an application regarding rates and tariffs for gas distribution, the burden of proof is on the gas distributor.
2003, c.16, s.6
Filing and inspection of schedules
55(1)A gas distributor shall file with the Board schedules, which shall be open to public inspection, showing all rates and tariffs that the Board has approved for the gas distribution services that the gas distributor offers or proposes to offer within the Province.
55(2)A gas distributor shall maintain at convenient locations in the Province, keep available for public inspection and make available to a member of the public who requests one, a copy of all rates and tariffs that the Board has approved for the gas distribution services that the gas distributor offers or proposes to offer within the Province.
2003, c.16, s.7
Change of rates and tariffs
56A gas distributor shall not make any change to its rates or tariffs for the distribution of gas except with the approval of the Board, after a proceeding determined by the Board, and any approved change shall be plainly indicated on new schedules that shall be filed with the Board before the change comes into effect.
2003, c.16, s.8
Safety and inspection of facilities
57(1)A gas distributor shall furnish safe, adequate and proper gas distribution service and facilities.
57(2)Before distributing gas to any building, a gas distributor or its agent shall inspect the installations there and satisfy itself that they comply with all applicable statutes and regulations and are tight and safe to use.
2006, c.3, s.9; 2016, c.41, s.15
5
GAS MARKETERS
Prohibition against marketing gas without a certificate
58(1)Subject to subsection (1.1), no person shall, unless the person holds a certificate, do any of the following:
(a) sell gas or offer to sell gas to a customer;
(b) act as the agent or broker for a seller of gas to a customer;
(c) act or offer to act as the agent or broker of a customer in purchasing gas; or
(d) arrange for pipeline capacity on a transmission line or a pipeline regulated by the United States Federal Energy Regulatory Commission for a customer.
58(1.1)The following persons are exempt from the requirement to hold a certificate:
(a) a person who sells gas or offers to sell gas that is delivered to customers;
(b) an agent or broker for a person who sells gas that is delivered to customers;
(c) a person who acts or offers to act as the agent or broker of a customer in purchasing gas that is delivered to customers;
(d) the general franchise holder; and
(e) an owner or operator of a gas fuelling station that provides fuelling services for vehicles that operate on gas.
58(2)No gas marketer shall
(a) sell gas or offer to sell gas to a customer,
(b) act as the agent or broker for a seller of gas to a customer,
(c) act or offer to act as the agent or broker of a customer in purchasing gas, or
(d) arrange for pipeline capacity on a transmission line or a pipeline regulated by the United States Federal Energy Regulatory Commission for a customer,
in a name other than the one in which it is certified unless authorized to do so in the certificate.
2001, c.13, s.5; 2011, c.56, s.5; 2016, c.41, s.16
Prices of gas and services may be fixed by order of the Board
59The Board may make an order regulating the price charged by a gas marketer or a gas distributor for gas or a customer service if the Board is of the opinion that the price is not subject to effective competition sufficient to protect the interests of customers.
2003, c.16, s.9
Enforcement of contracts
60(1)A contract for the sale of gas between a low volume consumer and a person who is not in compliance with section 58 may not be enforced against the consumer.
60(2)Repealed: 2016, c.41, s.17
2003, c.16, s.10; 2016, c.41, s.17
Issue of certificate
61(1)The Board may issue certificates.
61(2)A certificate is subject to such terms and conditions as the Board considers necessary in the public interest.
Grounds for denying certificate
62An applicant for a certificate under this Part is entitled to have a certificate issued or renewed unless
(a) having regard to its financial position, it cannot reasonably be expected to be financially responsible in the conduct of business,
(b) its past conduct affords reasonable grounds for belief that it will not carry on business according to law and with integrity and honesty,
(c) the past conduct of an officer, director or associate affords reasonable grounds for belief that it will not carry on business according to law or with integrity and honesty,
(d) it is carrying on activities that are, or will be, if it is certified, in contravention of this Act or of the regulations or the rules made under Part 6, or
(e) it fails to satisfy such other terms and conditions as the Board may impose.
Refusal or revocation of certificate
63(1)The Board may refuse to issue a certificate to an applicant if, in its opinion, the applicant is not entitled to a certificate under section 62.
63(2)The Board may refuse to renew a certificate, or may suspend or revoke one, for any reason that would disentitle an applicant to a certificate under section 62 or if the certificate holder is in breach of a condition of the certificate.
Notice and appeal of refusal or revocation
64(1)If the Board proposes to refuse to issue or renew a certificate, or to suspend or revoke one, it shall serve notice of the proposal on the applicant or certificate holder, together with written reasons.
64(2)The notice shall state that the applicant or certificate holder is entitled to show cause why a certificate should be issued or renewed by the Board if, within fifteen days after service of the notice under subsection (1), it mails or delivers notice in writing to the Board requesting a proceeding, and if it does so, the Board may initiate a proceeding.
64(3)If an applicant or certificate holder does not request a proceeding by the Board in accordance with subsection (2), the Board may carry out the proposal stated in the notice under subsection (1).
64(4)If an applicant or certificate holder requests a proceeding by the Board in accordance with subsection (2), the Board may hold the proceeding and,
(a) when the proposal is to refuse to issue or renew a certificate, issue or refuse the certificate or renew or refuse to renew the certificate, or
(b) when the proposal is to suspend or revoke a certificate, suspend or revoke or not suspend or revoke the certificate.
64(5)The Board may attach such conditions to an order made under subsections (2), (3) and (4) as it considers necessary in the public interest.
64(6)The applicant or certificate holder who has requested the proceeding and such other persons as the Board may specify are parties to the proceeding before the Board under this section.
64(7)Despite subsection (1), the Board may cancel a certificate when the holder requests it to do so in writing subject to any terms and conditions the Board may impose in order to protect the interest of the customers of the certificate holder or of the public.
Renewed application for certificate
65A further application for a certificate may be made upon new or other evidence or where it is clear that material circumstances have changed.
5.1
LICENSEES AND APPROVED CUSTOMERS
2016, c.41, s.18
Prohibition against delivery of gas without a licence
65.1No person shall deliver gas to customers unless the person holds a licence.
2016, c.41, s.18
Prohibition against delivery of gas in distribution area
65.11During the period from the date of commencement of this section to August 31, 2039, inclusive, no licensee shall deliver gas to a customer at an eligible facility that is owned or operated by the customer and is located in the distribution area unless the customer holds an approval for the eligible facility.
2016, c.41, s.18
Exemption – gas fuelling stations
65.12For greater certainty, an owner or operator of a gas fuelling station that provides fuelling services for vehicles that operate on gas is exempt from the requirement to obtain a licence.
2016, c.41, s.18
Application for licence
65.2(1)An application for a licence shall be made to the Board in the form provided by the Board and shall contain the information required by the Board.
65.2(2)The Board may assess a processing fee and require the applicant to pay the fee.
2016, c.41, s.18
Issuance of licence
65.21On application in accordance with section 65.2, the Board may issue a licence.
2016, c.41, s.18
Terms and conditions
65.22The Board may impose any terms and conditions that the Board considers appropriate on a licence.
2016, c.41, s.18
Requirement to provide information to Board
65.3 A licensee shall provide the following information to the Board on an annual basis:
(a) the names and addresses of its customers;
(b) the quantity of gas the licensee delivered in each of the previous 12 months; and
(c) any other information requested by the Board.
2016, c.41, s.18
Licence not transferable
65.31A licence is not transferable.
2016, c.41, s.18
Notice of amalgamation
65.32If a licensee is a corporation and the licensee enters into an amalgamation agreement or amalgamates with any other corporation, the licensee shall immediately advise the Board in writing and the Board may amend the licence accordingly.
2016, c.41, s.18
Notice of change of name
65.4 If a licensee changes its name, the licensee shall immediately advise the Board in writing and the Board may amend the licence accordingly.
2016, c.41, s.18
Cancellation of licence
65.41(1)The Board may cancel a licence if the licensee
(a) violates or fails to comply with a provision of this Act or the regulations,
(b) violates or fails to comply with any term or condition of the licence, or
(c) violates or fails to comply with an order of the Board.
65.41(2) A person whose licence has been cancelled may apply to the Board for a new licence.
65.41(3)The Board may issue a new licence if it is satisfied that the person has fully remedied the circumstances that gave rise to the cancellation and may impose any terms and conditions on the licence that it considers appropriate.
2016, c.41, s.18
Prohibition against receiving gas by delivery in distribution area
65.42No person who owns or operates an eligible facility that is located in the distribution area, other than a gas fuelling station that provides fuelling services for vehicles that operate on gas, shall receive gas by delivery at the eligible facility during the period from the date of commencement of this section to August 31, 2039, inclusive, unless the person holds an approval for the eligible facility.
2016, c.41, s.18
Application for approval
65.5(1)Subject to section 65.8, any person, other than an individual, who owns or operates an eligible facility that is located in the distribution area and who wishes to receive gas by delivery at the eligible facility may apply for an approval for the eligible facility.
65.5(2)An application for an approval shall be made to the Board in the form provided by the Board and shall contain the information required by the Board.
65.5(3)The Board may assess a processing fee and require the applicant to pay the fee.
2016, c.41, s.18
Copy of application to general franchise holder
65.51On receipt of an application for an approval, the Board shall provide the general franchise holder with a copy of the application.
2016, c.41, s.18
Objection to application
65.52(1)Within 30 days after receiving a copy of an application for an approval, the general franchise holder may file with the Board a notice of objection to the application on the form provided by the Board setting out the reasons for and any grounds and arguments in relation to the objection.
65.52(2)On receipt of a notice of objection, the Board shall provide the applicant with a copy of the notice of objection.
65.52(3)If a notice of objection is filed with the Board, the Board shall hold a hearing to consider the matter.
2016, c.41, s.18
Issuance of approval
65.6The Board may issue an approval if
(a) no notice of objection has been filed with the Board,
(b) all objections have been withdrawn, or
(c) after holding a hearing, the Board determines that it is in the public interest to issue the approval.
2016, c.41, s.18
Terms and conditions
65.61The Board may impose any terms and conditions that the Board considers appropriate on an approval.
2016, c.41, s.18
Transfer or assignment of approval
65.62An approved customer shall not transfer or assign an approval without the prior written approval of the Board.
2016, c.41, s.18
Notice of amalgamation
65.7If an approved customer is a corporation and the approved customer enters into an amalgamation agreement or amalgamates with any other corporation, the approved customer shall immediately advise the Board in writing and the Board may amend the approval accordingly.
2016, c.41, s.18
Notice of change of name
65.71 If an approved customer changes its name, the approved customer shall immediately advise the Board in writing and the Board may amend the approval accordingly.
2016, c.41, s.18
Cancellation of approval
65.72(1)The Board may cancel an approval for an eligible facility if the approved customer
(a) violates or fails to comply with a provision of this Act or the regulations,
(b) violates or fails to comply with a term or condition of the approval,
(c) uses the facility for any purpose other than institutional, commercial, industrial or manufacturing purposes or any similar purpose, or
(d) does not receive gas by delivery at the eligible facility for a period exceeding six consecutive months.
65.72(2) A person whose approval has been cancelled may apply to the Board for a new approval.
65.72(3)The Board may issue a new approval if it is satisfied that the person has fully remedied the circumstances that gave rise to the cancellation and may impose any terms and conditions on the approval that it considers appropriate.
2016, c.41, s.18
Exemption – gas fuelling stations
65.8An owner or operator of a gas fuelling station that provides fuelling services for vehicles that operate on gas and that is located in the distribution area is exempt from the requirement to obtain an approval.
2016, c.41, s.18
Exemption from application for approval – delivery prior to commencement of this section
65.81If, immediately before the date of the commencement of this section, a customer received gas by delivery at an eligible facility that is owned or operated by the customer and is located in the distribution area, the Board shall issue an approval to the customer for the eligible facility if, within six months after the date of the commencement of this section, the customer provides the Board with the following information:
(a) proof that is satisfactory to the Board that the customer received gas by delivery at the eligible facility before the date of the commencement of this section and continued to receive gas after that date; and
(b) any other information the Board considers relevant.
2016, c.41, s.18
Exemption from application for approval – delivery prior to area becoming part of distribution area
65.9If an area of the Province becomes part of the distribution area and, immediately before the date on which the area became part of the distribution area a customer received gas by delivery at an eligible facility that is owned or operated by the customer and is located in the area, the Board shall issue an approval to the customer for the eligible facility if, within six months after the date on which the area becomes part of the distribution area, the customer provides the Board with the following information:
(a) proof that is satisfactory to the Board that the customer received gas by delivery at the eligible facility before the date on which the area became part of the distribution area and continued to receive gas after that date; and
(b) any other information the Board considers relevant.
2016, c.41, s.18
6
RULES OF CONDUCT
Power of Board to make rules
66(1)The Board may make rules
(a) governing the conduct of a gas distributor as that relates to its affiliates or associates;
(b) governing the conduct of a person holding a certificate;
(c) establishing conditions of access to gas distribution and customer services provided by a gas distributor or by persons other than a local gas producer or the holder of a liquefied natural gas franchise;
(d) requiring and providing for the making of returns, statements or reports by a gas distributor or gas marketer on gas distribution and provision of customer services, in such form and containing such matters and verified in such a manner as the rule may provide; and
(e) respecting any other matter prescribed.
66(2)A rule authorized by this section may incorporate by reference, in whole or in part, any standard, procedure or guideline and may require compliance with any standard, procedure or guideline adopted.
66(3)A rule may be general or particular in its application and may be limited in time or place or both.
66(4)A rule may provide for an exemption.
66(5)An exemption may be made in whole or in part and may be made subject to conditions or restrictions.
66(6)The Regulations Act does not apply to the rules made by the Board.
2006, c.3, s.10
Notice of proposed rules
67(1)The Board shall ensure that notice of every rule that it proposes to make under section 66 is given in such a manner and to such persons as it may direct.
67(2)Upon giving notice under subsection (1), the Board shall give interested persons a reasonable opportunity to make written representations about the proposed rule within such a reasonable period as it considers appropriate.
67(3)Notice under subsection (1) is not required if the proposal is an amendment that does not materially change an existing rule.
67(4)After considering the written representations referred to in subsection (2), the Board may
(a) make a proposed rule final, or
(b) make a proposed rule final in a modified form.
Coming into force of rules
68(1)A rule comes into force on the day there specified.
68(2)Every gas distributor and gas marketer shall be deemed to have had actual notice of a rule and its contents on the day it comes into force.
68(3)The Board shall publish every rule that comes into force in The Royal Gazette as soon after it is made as practicable.
68(4)Publication of a rule in The Royal Gazette
(a) is, in the absence of evidence to the contrary, proof of its text and of its making; and
(b) shall be deemed to be notice of its contents to every person subject to it or affected by it.
68(5)If a rule is published in The Royal Gazette, judicial notice shall be taken of it, of its content and of its publication.
Duties of gas distributors
69(1)A gas distributor shall
(a) apply the terms and conditions of its tariff and other tariff provisions related to the distribution of gas and provision of customer services without unjust discrimination and without regard to the supplier of gas;
(b) process all similar requests for service in the same manner for all gas marketers in a reasonably similar time period;
(c) make no unjust discrimination in its rates or tariffs or otherwise among gas marketers or among similarly situated customers in matters relating to the movement or distribution of gas on its facilities or the administration of contracts, including the provision of customer services;
(d) apply, without unjust discrimination, the same tariff relating to discounts, rebates, fee waivers, or penalty waivers to all similarly situated customers, without regard to their gas marketer;
(e) make no unjust discrimination in applying any discretionary right under a tariff to similarly situated customers, but serve them without regard to their gas marketer;
(f) make no unjust discrimination in offering discounts, rebates, fee waivers, or penalty waivers to similarly situated customers, but serve them without regard to their gas marketer and announce those offers by making an appropriate posting on its electronic bulletin board;
(g) make no unjust discrimination among gas marketers in scheduling or allocating capacity at a city gate station;
(h) make no unjust discrimination in matters relating to allocation, assignment, release, or other transfer of the gas distributor’s capacity rights on a transmission line or a pipeline regulated by the United States Federal Energy Regulatory Commission;
(i) not represent that any advantage accrues to customers or others in the use of the services of a gas distributor because that customer or others deal with a gas marketer associated with the gas distributor;
(j) provide no preferential sales leads to any gas marketer, and refrain from giving any appearance that the gas distributor speaks on behalf of any associated gas marketer;
(k) allow no joint solicitation calls on customers by personnel of the gas distributor and any gas marketer, unless a customer specifically requests a joint meeting in advance in writing;
(l) at any given time, disclose information provided to any gas marketer about the marketing or sale of gas to customers or identifying potential customers or about the distribution of gas to or on its system to all gas marketers on the system, by posting the information on its electronic bulletin board;
(m) not knowingly disclose to any gas marketer any confidential information obtained in connection with providing services to any other gas marketer or customer, a potential gas marketer or customer or any agent of such a customer or potential gas marketer, unless authorized or required by regulation to disclose the information;
(n) ensure that employees of the gas distributor having direct responsibility for the day to day operations of its operations, including employees involved in
(i) receiving requests for distribution service or customer services from customers;
(ii) scheduling gas distribution on the gas distributor’s system;
(iii) making gas scheduling or allocation decisions; or
(iv) purchasing capacity on a transmission line or a pipeline regulated by the United States Federal Energy Regulatory Commission;
are not shared with any gas marketer who is an associate or affiliate, but are physically separated from it and function independently of it;
(o) file with the Board procedures that will enable gas marketers and the Board to determine how the gas distributor is complying with the standards set forth in this section;
(p) maintain its books of account and records separately from those of any gas marketer who is an associate or affiliate;
(q) respond in writing to the Board within ten days to any complaint submitted to the gas distributor in writing that relates to compliance with the standards set forth in this section; and
(r) not allow any associated or affiliated gas marketer to use its name or a material part of its name except as approved by the Board under subsection 58(2).
69(2)For the purposes of subsection (1), the requirements imposed on a gas distributor insofar as they relate to a gas marketer apply only in respect of those activities carried on by the gas marketer as described in paragraphs 58(1)(a), (b), (c) and (d).
2003, c.16, s.11; 2006, c.3, s.11; 2016, c.41, s.19
7
POWERS OF THE BOARD
UNDER THIS ACT
Repealed
70Repealed: 2006, c.E-9.18, s.98
2006, c.E-9.18, s.98
Jurisdiction and powers
71(1)The Board shall supervise the activities of gas distributors, gas marketers, customers of gas distributors and other persons subject to this Act and has full jurisdiction to inquire into, hear and determine any matter
(a) where it appears to the Board that any person has failed to do any act, matter or thing required to be done by this Act or by any regulation, rule, certificate, or any order or direction made by the Board, or that any person has done or is doing any act, matter or thing contrary to or in contravention of this Act, or any regulation, rule, certificate, order or direction; or
(b) where it appears to the Board that the circumstances may require it, in the public interest, to make any order or give any direction, leave or approval that by law it is authorized to make or give, or concerning any matter, act or thing that by this Act or any regulation, rule, certificate, order or direction is prohibited or required to be done.
71(2)The Board may inquire into any accident involving a pipeline or other work whose construction or operation it regulates, and may, at the conclusion of the inquiry, make
(a) findings about the cause of the accident or factors contributing to it,
(b) recommendations for preventing future similar accidents, or
(c) any decision or order that the Board can make.
71(3)Repealed: 2006, c.E-9.18, s.98
71(4)The Board may
(a) order and require any person to do, forthwith, or within or at any specified time and in any manner it may determine, any act, matter or thing that the person is or may be required to do under this Act, or any regulation, rule, certificate, or any order or direction made or given under this Act; and
(b) forbid the doing or continuing of any act, matter or thing that is contrary to this Act or any regulation, rule, certificate, order or direction.
71(5)The Board may of its own motion inquire into, hear and determine any matter or thing that under this Act it may inquire into, hear and determine that does not expressly require an application before the Board.
71(6)When the Board inquires into, hears and determines any matter or thing that under this Act it may inquire into, hear and determine relating to the general franchise holder, the Board shall inquire into, hear and determine the matter or thing in a manner that is consistent with the general franchise agreement.
2005, c.P-8.5, s.83; 2006, c.E-9.18, s.98; 2011, c.56, s.6; 2016, c.41, s.20
Determination re reasonable economic alternative
71.1On or before August 31, 2039, the Board shall make a determination as to whether the delivery of gas to all customers in the distribution area is a reasonable economic alternative to the distribution of gas to all customers in the distribution area by the general franchise holder.
2016, c.41, s.21
Repealed
72Repealed: 2006, c.E-9.18, s.98
2006, c.E-9.18, s.98
Repealed
73Repealed: 2006, c.E-9.18, s.98
2006, c.E-9.18, s.98
Repealed
74Repealed: 2006, c.E-9.18, s.98
2006, c.E-9.18, s.98
Repealed
75Repealed: 2006, c.E-9.18, s.98
2006, c.E-9.18, s.98
Repealed
76Repealed: 2006, c.E-9.18, s.98
2006, c.E-9.18, s.98
Repealed
77Repealed: 2006, c.E-9.18, s.98
2006, c.E-9.18, s.98
Repealed
78Repealed: 2006, c.E-9.18, s.98
2006, c.E-9.18, s.98
Repealed
79Repealed: 2006, c.E-9.18, s.98
2006, c.E-9.18, s.98
Repealed
80Repealed: 2006, c.E-9.18, s.98
2006, c.E-9.18, s.98
Repealed
81Repealed: 2006, c.E-9.18, s.98
2006, c.E-9.18, s.98
Repealed
82Repealed: 2006, c.E-9.18, s.98
2006, c.E-9.18, s.98
Repealed
83Repealed: 2006, c.E-9.18, s.98
2006, c.E-9.18, s.98
Repealed
84Repealed: 2006, c.E-9.18, s.98
2006, c.E-9.18, s.98
Forbearance from regulation
85(1)The Board may forbear, in whole or in part and conditionally or unconditionally, from the exercise of any power or the performance of any duty of its own making, where the Board finds as a question of fact that forbearance would be consistent with the purpose of this Act.
85(2)Where the Board finds as a question of fact that the sale of gas or a customer service is or will be subject to effective competition sufficient to protect customers’ interests, it shall make a determination to forbear, to the extent it considers appropriate, conditionally or unconditionally, from regulating the rates, tariffs, price and other contractual provisions of that service or class of service.
85(3)If the Board does forbear from regulation, it may later resume a greater degree of regulation if it considers that its level of forbearance is no longer warranted.
2011, c.56, s.7
Repealed
86Repealed: 2006, c.E-9.18, s.98
2006, c.E-9.18, s.98
Repealed
87Repealed: 2006, c.E-9.18, s.98
2001, c.13, s.6; 2006, c.E-9.18, s.98
Repealed
88Repealed: 2006, c.E-9.18, s.98
2006, c.E-9.18, s.98
Repealed
89Repealed: 2006, c.E-9.18, s.98
2006, c.E-9.18, s.98
8
GAS PRIORITIES
AND ALLOCATION
Purpose of part
90The purpose of this Part is to provide for the fair allocation of gas where there is an existing or impending shortage of gas.
Gas allocation plans
91(1)If the Board approves an allocation plan governing a gas distributor or gas marketer, that distributor or gas marketer shall supply gas only in accordance with that allocation plan.
91(2)Every gas distributor and gas marketer shall file with the Board, at such times as the Board may prescribe,
(a) an estimate of how much gas it will have available to supply its customers’ gas requirements for such periods of time as may be prescribed by regulation; and
(b) its proposed plan for allocating that gas, referred to in paragraph (a).
91(3)The Board shall consider the proposed allocation plan filed by a gas distributor or gas marketer and shall by order approve the plan with or without modifications or additions as it shall determine.
91(4)The Board may by order amend an approved allocation plan.
The Board may allocate gas by order
92The Board may direct a gas distributor or gas marketer to make available to another gas distributor or gas marketer such amount of gas, or any class thereof, and by such means, including sale, loan or otherwise, and on such conditions, including compensation, and to be used by the receiving gas distributor or gas marketer in such manner, as the Board may determine.
Plans, orders and regulations override contracts
93(1)Every gas distributor or gas marketer affected by a regulation, an order of the Board or an allocation plan approved under this Part, and every customer affected by an order of the Board, shall comply with it in accordance with its terms, despite anything in any contract between a gas distributor or gas marketer and a customer.
93(2)No action shall be brought against a gas distributor or gas marketer, nor shall a gas distributor or gas marketer be liable, for any act or omission, in respect of supply of gas or failure to supply gas, insofar as that act or omission is authorized, permitted or required by this Part, the regulations, an order of the Board or an allocation plan approved by the Board under this Part.
Repealed
94Repealed: 2006, c.E-9.18, s.98
2006, c.E-9.18, s.98
9
REGULATIONS
By Lieutenant-Governor in Council
95(1)The Lieutenant-Governor in Council may make regulations under this Act
(a) Repealed: 2005, c.P-8.5, s.83
(b) Repealed: 2005, c.P-8.5, s.83
(c) Repealed: 2005, c.P-8.5, s.83
(d) Repealed: 2005, c.P-8.5, s.83
(e) Repealed: 2005, c.P-8.5, s.83
(f) fixing the method of metering the gas in any pipeline or gas distribution system;
(g) fixing the number of meters, governors and control valves, and providing for their installation;
(h) providing for the analysis and testing of gas;
(i) specifying the methods of making any tests, analyses, surveys or logs and of obtaining other information, and governing the submission of reports and information to the Minister;
(j) specifying the maximum pressure to which any pipeline may be subjected;
(k) prescribing a schedule of fees for applications, orders and any other things made, required or done under this Act;
(k.1) prescribing a formula for the purposes of subsection 13.1(7);
(l) Repealed: 2005, c.P-8.5, s.83
(m) exempting any person or class of persons from any provision of the regulations made under this Act;
(m.1) Repealed: 2016, c.41, s.22
(m.2) Repealed: 2016, c.41, s.22
(m.3) Repealed: 2016, c.41, s.22
(m.4) Repealed: 2016, c.41, s.22
(m.5) Repealed: 2016, c.41, s.22
(m.6) Repealed: 2016, c.41, s.22
(m.7) defining any word or expression used but not defined in this Act;
(n) Repealed: 2005, c.P-8.5, s.83
(n.1) prescribing, for the purposes of paragraph 51(3)(a), the terms and conditions under which the general franchise holder may sell gas;
(n.2) prescribing, for the purposes of subsection 51(5), the terms and conditions under which a gas distributor may acquire gas for sale;
(o) specifying matters about which the Board may make rules under subsection 66(1);
(o.1) prescribing factors for the purposes of paragraph 13(1.1)(b);
(p) governing other matters relating to this Act as will carry out its intent and facilitate its administration; and
(q) Repealed: 2005, c.P-8.5, s.83
95(2)A regulation under this section may be general or particular in its application.
2003, c.16, s.12; 2005, c.P-8.5, s.83; 2006, c.3, s.12; 2011, c.56, s.8; 2014, c.46, s.7; 2016, c.41, s.22
By Board
96(1)The Board may make regulations under this Act
(a) respecting the manner in which the accounts of a gas distributor shall be kept;
(b) respecting the classes of property for which depreciation charges may properly be included under operating expenses in the accounts and the accounting method or methods that may be used in computing and charging depreciation for each of the classes of property;
(c) respecting a uniform system of accounts applicable to any class of gas distributor;
(d) requiring a gas distributor to keep such records, books of account and other documents in such form as may be prescribed by the regulations and to make them available to the Board, for inspection by it or a person authorized by it, at a place of business in the Province; and to submit to the Board, at such times and in such form as may be so prescribed, returns and information respecting capital, revenues, expenses and other matters so prescribed and deemed by the Board to be matters that it ought to consider in carrying out its powers and duties under this Act in relation to those gas distributors and other persons;
(e) prescribing the qualifications for and the information to file in connection with and the manner of applying for and granting franchises, certificates, licences, approvals and amendments thereto, the forms used for and the information supplied with such applications, and the manner of filing plans and specifications;
(f) Repealed: 2005, c.P-8.5, s.83
(g) identifying the persons to be served with notice of application for a certificate or other authorization under this Act and specifying the form and method of service of the notice;
(h) governing the form of contract that a gas distributor may enter into with the various classes of customers;
(i) defining the meaning of “associated unit of measure” from time to time;
(j) prescribing the information that is to be included in or is to accompany any application under this Act or the regulations;
(k) requiring and prescribing tests and surveys at any time;
(l) requiring information obtained by tests or surveys to be submitted to the Board;
(m) governing the making of reports and the authority or person to whom they are to be made;
(n) concerning when and to whom information contained in records, reports and information submitted to or acquired by the Board under this Act may be made available;
(o) Repealed: 2005, c.P-8.5, s.83
(p) Repealed: 2005, c.P-8.5, s.83
(q) Repealed: 2005, c.P-8.5, s.83
(r) Repealed: 2005, c.P-8.5, s.83
(s) Repealed: 2005, c.P-8.5, s.83
(t) Repealed: 2005, c.P-8.5, s.83
(u) Repealed: 2005, c.P-8.5, s.83
(v) Repealed: 2005, c.P-8.5, s.83
(w) Repealed: 2005, c.P-8.5, s.83
(x) governing applications for and operation of underground storage facilities for gas;
(y) prescribing the conditions that may be imposed in certificates;
(z) prescribing different conditions for different certificates or classes of certificates;
(aa) prescribing the form of security which the Board may require an applicant for a certificate to file;
(bb) prescribing a system or systems of priorities for gas distributors to follow in supplying gas to customers, subject to any order of the Board and any allocation plan that it approves;
(cc) specifying principles, criteria or factors that gas distributors and gas marketers are to employ in formulating and implementing allocation plans;
(dd) prescribing additional information and material to be contained in an allocation plan, or to be supplied in support of the plan;
(ee) prescribing the procedures for notifying customers and classes of customers affected by a proposed allocation plan and for inspecting the plan;
(ff) prescribing the procedures that gas distributors and gas marketers are to follow in implementing approved allocation plans;
(gg) on how notice of allocation plans, either proposed or approved, shall be given to the public;
(hh) respecting any other matter necessary or advisable to provide for situations in which the supply of gas available for use in the Province is not sufficient to supply all the requirements of gas consumers, so as to carry out effectively the intent and purpose of Part 8;
(ii) Repealed: 2005, c.P-8.5, s.83
(jj) respecting a scale for the assessment of costs in proceedings before the Board;
(kk) respecting practice and procedure before the Board in connection with matters under this Act;
(ll) governing such other matters relating to the authority assigned to it under this Act as the Board considers necessary to facilitate the administration of this Act; and
(mm) adopting by reference in whole or in part with such changes as the Board considers necessary any regulation, code, standard, guideline, procedure or rule in relation to pipelines made under an act of the Parliament of Canada or of another province.
96(2)Without limiting the generality of paragraph 96(1)(y), the prescribed requirements under it may include requirements relating to the training, past conduct, qualifications and supervision of the employees of an applicant for a certificate or a certificate holder.
96(3)The Board may, by order made on such terms and conditions as it considers appropriate, exempt a gas distributor or person from the application of any regulation or any provision of a regulation made under subsection (1).
96(4)From time to time, the Board may provide guidelines to assist in interpretation of regulations made under this section.
96(5)The Board shall make a new and independent judgment about whether a guideline should be applied to a particular case.
2005, c.P-8.5, s.83; 2006, c.3, s.13; 2016, c.41, s.23
10
OFFENCES
Liability and penalties
97(1)A person who violates or fails to comply with a provision of this Act that is listed in Column I of Schedule A commits an offence.
97(2)For the purposes of Part II of the Provincial Offences Procedure Act, each offence listed in Column I of Schedule A is punishable as an offence of the category listed beside it in Column II of Schedule A.
97(3)A person who violates or fails to comply with an order of the Board made under subsection 49(1), section 59 and subsection 71(4) of this Act commits an offence that is punishable as a category F offence under Part II of the Provincial Offences Procedure Act.
97(4)A person who violates or fails to comply with a rule made by the Board under section 66 or of a regulation made under section 95 or 96 of this Act commits an offence that is punishable as a category C offence under Part II of the Provincial Offences Procedure Act.
97(5)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.
97(6)Where an offence under this Act continues for more than one day,
(a) the minimum fine that may be imposed is the minimum fine set by the Provincial Offences Procedure Act multiplied by the number of days during which the offence continues; and
(b) the maximum fine that may be imposed is the maximum fine set by the Provincial Offences Procedure Act multiplied by the number of days during which the offence continues.
2005, c.P-8.5, s.83
Punishment
98(1)Where the Board determines that a person violates or fails to comply with any provision of this Act listed in Schedule A, or an order of the Board, a rule of the Board or a regulation referred to in subsections 97(3) or 97(4) of this Act, the Minister, or a person designated by the Minister for the purpose, may apply to the Court of King’s Bench, or to any judge of that Court, for an order as described in subsection (2).
98(2)In a proceeding under subsection (1), the judge may make an order restraining the person from continuing or repeating the violation or failure, such other order as is required to enforce the provision, term or condition for which the proceeding was instituted, and such order for costs as the judge considers fit.
2023, c.17, s.101
Repealed
99Repealed: 2005, c.P-8.5, s.83
2005, c.P-8.5, s.83
11
CONSEQUENTIAL AMENDMENTS
Amendment of clauses in Community Planning Act
100(1)Paragraph (a) of the definition “development” in section 1 of the Community Planning Act, chapter C-12 of the Revised Statutes of New Brunswick, 1973, is amended by adding “, pipelines defined in the Gas Distribution Act, 1999 except for buildings and structures remote from the pipeline used for management and administration or housing or storing of moveable equipment” immediately after “traffic control devices”.
100(2)Paragraph (d) of the definition “development” in section 1 of the Community Planning Act is amended by striking out “;” at the end of paragraph and substituting “except in the case of laying pipelines defined in the Gas Distribution Act, 1999;”.
100(3)The Community Planning Act is amended by inserting immediately after section 76 the following:
76.01A development officer may grant approvals for pipeline construction for which he or she is the approving authority under the Gas Distribution Act, 1999.
Repeal of Gas Distribution Act
101The Gas Distribution Act, chapter G-2.1 of the Acts of New Brunswick, 1981, is repealed.
Repeal of Gas Public Utilities Act
102The Gas Public Utilities Act, chapter G-2.2 of the Acts of New Brunswick, 1982, is repealed.
Repeal or amendment of clauses in Municipalities Act
103(1)Section 23.01 of the Municipalities Act, chapter M-22 of the Revised Statutes of New Brunswick, 1973 is repealed and the following is substituted:
23.01In sections 23.1 to 27.01 and in section 27.4,
“service” means a service contained in the First Schedule and includes a facility used as a recreational facility or a community services facility, whether the facility used as a recreational facility or a community services facility is located within a local service district or not but does not include the sale of gas and provision of customer services as defined in the Gas Distribution Act, 1999.(service)
103(2)The Municipalities Act is amended by inserting immediately after subsection 189(18) the following:
189(19)A municipality that sells gas or provides customer services as defined in the Gas Distribution Act, 1999 is not required to base the price of gas and customer services on cost unless the Public Utilities Board requires it to do so on the grounds that market forces do not adequately protect customers.
103(3)The First Schedule of the Municipalities Act is amended
(a) by striking out the period at the end of paragraph (r) and substituting a semicolon;
(b) by adding after paragraph (r) the following:
(s) the sale of gas and provision of customer services as defined in the Gas Distribution Act, 1999.
Repeal or amendment of definitions and clauses in Pipe Line Act
104(1)The definition “building” in section 1 of the Pipe Line Act, chapter P-8.1 of the Acts of New Brunswick, 1976, is repealed.
104(2)The definition “distribution line” in section 1 of the Pipe Line Act is repealed.
104(3)The definition “flow line” in section 1 of the Pipe Line Act is amended by striking out “or gas” in paragraph (b) and by striking out “gas or” and “, gas” in paragraph (c).
104(4)The definition “gas” in section 1 of the Pipe Line Act is repealed.
104(5)The definition “gas line” in section 1 of the Pipe Line Act is repealed.
104(6)The definition “mineral line” in section 1 of the Pipe Line Act is amended by striking out “a gas line,”.
104(7)The definition “pipe line” in section 1 of the Pipe Line Act is amended by striking out “gas line,”.
104(8)The definition “private line” in section 1 of the Pipe Line Act is repealed.
104(9)The definition “processing plant” in section 1 of the Pipe Line Act is repealed.
104(10)The definition “secondary line” in section 1 of the Pipe Line Act is amended by striking out “or gas” in paragraph (a), by striking out “gas,” in paragraph (b), and by striking out “gas or” in paragraph (c).
104(11)The definition “well” in section 1 of the Pipe Line Act is amended by striking out “or gas” in paragraph (a), by striking out “natural gas,” in paragraph (b), and by striking out “or gas” in the concluding sentence.
104(12)Section 3 of the Pipe Line Act is amended by striking out “gas line,”.
104(13)Section 4 of the Pipe Line Act is amended by striking out “gas or” in paragraph (c).
104(14)Subsection 14(3) of the Pipe Line Act is amended by striking out “gas line,”.
104(15)Subsection 15(4) of the Pipe Line Act is amended by striking out “for any substance other than gas”.
104(16)Subsection 21(3) of the Pipe Line Act is amended by striking out “gas,”.
104(17)Section 38 of the Pipe Line Act is amended by striking out “, gas” in paragraph (f), by striking out “and gas” in paragraph (h) and by striking out “or gas” in paragraph (p).
Repeal or amendment of definitions and clauses in Underground Storage Act
105(1)The Underground Storage Act, chapter U-1.1 of the Acts of New Brunswick, 1978, is amended by adding, after section 2, the following:
2.1(1)Every site in the Province suitable for constructing or operating an underground storage facility is hereby declared to be, and to have been at all times prior hereto, property separate from the soil and vested in the Crown in the right of the Province.
2.1(2)No compensation is payable to any person or municipality as a result of the declaration in subsection 2.1(1).
105(2)The definition “storage licence” in section 1 of the Underground Storage Act is repealed.
105(3)Section 1 of the Underground Storage Act is amended by adding the following in alphabetical order:
“storage lease” means a valid and subsisting lease granted under section 12.(bail de stockage)
105(4)The definition “underground storage facility” in section 1 of the Underground Storage Act is amended by striking out “liquids” and substituting “fluids”.
105(5)Section 4 of the Underground Storage Act is amended by adding “, lease” after “permit”.
105(6)Subsection 11(1) of the Underground Storage Act is amended by striking out “storage licence” where this phrase occurs and substituting “storage lease”.
105(7)Subsection 12(1) of the Underground Storage Act is amended by striking out “storage licence” and substituting “storage lease”.
105(8)Subsection 12(2) of the Underground Storage Act is amended by striking out “licence” where it occurs and substituting “lease”.
105(9)Subsection 12(3) of the Underground Storage Act is amended by striking out “licence” where it occurs and substituting “lease”.
105(10)Subsection 12(4) of the Underground Storage Act is amended by striking out “licence” and substituting “lease”.
105(11)Subsection 13(1) of the Underground Storage Act is amended by striking out “licence” and substituting “lease”.
105(12)Subsection 13(2) of the Underground Storage Act is amended by striking out “licence” where it occurs and substituting “lease”.
105(13)Section 15 of the Underground Storage Act is amended by striking out “storage licence” and substituting “storage lease”.
105(14)Section 16 of the Underground Storage Act is amended by inserting “, lease” after “licence”.
105(15)Subsection 20(1) of the Underground Storage Act is amended by striking out “storage licence” and substituting “storage lease”.
105(16)Subsection 20(2) of the Underground Storage Act is amended by striking out “storage licence” immediately after paragraph 20(2)(c) and substituting “storage lease”.
105(17)Paragraph 21(a) of the Underground Storage Act is amended by striking out “storage licences” and substituting “storage leases”.
105(18)Paragraph 22(c) of the Underground Storage Act is amended by striking out “storage licences” and substituting “storage leases”.
105(19)The Underground Storage Act is amended by adding, after section 12, the following:
12.1A person who holds a valid and subsisting oil and natural gas lease issued under the Oil and Natural Gas Act is entitled to receive a storage lease for the formation in respect of which it holds the oil and natural gas lease, provided that it complies with the provisions of this Act in all other respects.
12
COMMENCEMENT
Commencement
106(1)Part 1 of this Act shall be deemed to come into force on December 22, 1998 and applies retroactively to any application to distribute gas and provide customer service to customers in the Province made under the former act on or after December 22, 1998.
106(2)This Act, other than Part 1, comes into force on Royal Assent.
SCHEDULE A
Column I
Section
Column II
Category of Offence
 
  3..............
H
  4..............
H
14(2)..............
H
15(1)..............
H
47..............
H
51(1)..............
H
52(1)..............
H
55(1)..............
G
55(2)..............
G
58(1)(a)..............
H
58(1)(b)..............
H
58(1)(c)..............
H
58(1)(d)..............
H
58(2)(a)..............
G
58(2)(b)..............
G
58(2)(c)..............
G
58(2)(d)..............
G
65.1..............
H
65.11..............
H
65.42..............
H
69(1)(a)..............
G
69(1)(b)..............
G
69(1)(c)..............
G
69(1)(d)..............
G
69(1)(e)..............
G
69(1)(f)..............
G
69(1)(g)..............
G
69(1)(h)..............
G
69(1)(i)..............
G
69(1)(j)..............
G
69(1)(k)..............
G
69(1)(l)..............
G
69(1)(m)..............
G
69(1)(n)..............
G
69(1)(o)..............
G
69(1)(p)..............
G
69(1)(q)..............
G
69(1)(r)..............
G
2001, c.13, s.7; 2005, c.P-8.5, s.83; 2006, c.E-9.18, s.98; 2016, c.41, s.24
N.B. This Act is consolidated to December 13, 2024.