Forward Regulatory Plan: 2020 to 2022 – Section 335 Cost Apportionment Regulatory Tool
Canadian Energy Regulator Act
On 28 August 2019, the National Energy Board became the Canada Energy Regulator (CER). Regulations made under the National Energy Board Act remain in force under the Canadian Energy Regulator Act (CER Act) until they are repealed or others made in their stead. New regulations and updates to existing regulations are being implemented through a phased approach.
The CER Act provides the Regulator with the authority to, with the approval of Governor in Council, make regulations that address the apportionment of costs directly incurred by parties working near CER-regulated pipelines (these could relate to construction or ground disturbances). The CER Act also provides the authority for the Commission to give this direction through an order.
Currently, if an individual who is planning to conduct an activity near a CER-regulated pipeline is experiencing difficulty agreeing with the pipeline company on the terms of the work, or who pays for costs related to authorized construction or ground disturbances, they can contact the CER for assistance. Parties may resolve the matter through the CER’s Alternative Dispute Resolution services or through adjudication by the Commission (section 335 application). As this is a new authority the CER is currently consulting on the long term regulatory approach for cost apportionment.
This regulatory initiative is associated with the CER’s Regulatory Stock Review Plan.
Regulatory cooperation efforts (domestic and international)
As part of overall engagement efforts, the CER will consult with provincial and federal regulators with similar cost apportionment regulatory authorities to learn best practices and help inform regulatory development and implementation plans.
Potential impacts on Canadians, including businesses
The implementation of a cost apportionment regulatory tool would affect CER-regulated companies and those who wish to do work near CER-regulated pipelines (i.e., land owners, rights holders, and municipal governments). It is not expected to affect Canadians at large or involve significant impacts on international trade or investment.
Early engagement with targeted stakeholders took place from winter-spring 2019. Additional engagement is not planned at this time. Communication on the proposed regulatory approach will appear on the CER’s website.
- Conducting Activities Safely Near Federally-regulated Pipelines
- Section 335 Applications – Process Guidance for Applicants
- Section 335 Applications – Guiding Principles for Cost Apportionment
Canada Energy Regulator contact information
Telephone: (403) 561-3758
Toll Free: 1-800-899-1265
Fax: (403) 292-5503
Date the regulatory initiative was first included in the Forward Regulatory Plan
April 1, 2019
Consult the Canada Energy Regulator’s Acts and Regulations web page for:
- a list of acts and regulations administered by the Canada Energy Regulator
- further information on the Canada Energy Regulator’s implementation of government-wide regulatory management initiatives
Consult the following for links to the Cabinet Directive on Regulation and supporting policies and guidance, and for information on government-wide regulatory initiatives implemented by departments and agencies across the Government of Canada:
To learn about upcoming or ongoing consultations on proposed federal regulations, visit:
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