Oil & Gas Commission Act

 

In order to increase oil and gas production in BC, the BC government has streamlined and simplified the regulatory process.  It has done so by creating the Oil and Gas Commission to offer oil and gas companies ‘single-window’ access to virtually all of the approvals (including environmental approvals) needed to find, produce, process, and transport oil and gas in BC.

 

Watershed advocates working on oil and gas issues should be aware of the powers of the Commission.  The Commission regulates the construction of seismic lines, well pads, roads, pipelines, and processing facilities in watershed areas.

The Oil and Gas Commission

 

The Oil and Gas Commission Act (OGCA) establishes the Commission.  Among other things, the Commission must regulate oil and gas in a manner that provides for the sound development of the oil and gas sector, by fostering a healthy environment, a sound economy and social well-being.

Power to issue approvals of other ministries

 

The Commission has power to issue approvals previously issued by various government ministries (e.g. the ministries of energy and mines, forests, and environment). 

 

For example, the Commission has been inserted into both the Petroleum and Natural Gas Act, and the Pipeline Act, and given authority to issue key permits and approvals previously issued by the Minister of Energy and Mines.  Authority to lease provincially owned oil and gas rights, however, remains with the Ministry of Energy and Mines.

 

The Act itself gives the Commission power to issue other approvals, called ‘specified enactments’ and any regulations under them.  Examples are:

 

• The Commission has authority to issue cutting licences and road use permits under the Forest Act. 

 

• Under the Land Act, the Commission issues leases of Crown lands, right-of-ways or easements, and licences to occupy Crown land in connection an oil or gas project. 

 

• Under the Waste Management Act, the Commission issues special waste storage and disposal permits.   

 

• Other approvals under the Forest Practices Code of BC Act, Heritage Conservation Act, and Water Act.

 

The Commission must exercise its powers under the specified enactments in accordance with the governing statute.  Each statute continues to apply after the Commission has issued an approval (e.g. decisions under the Waste Management Act or Water Act can be appealed to the Environmental Appeal Board).

 

The Commission and the ministries normally responsible for the specified enactments are each responsible for enforcing them.

 

For more information, see the Guide pages on each Act.

 

The OGCA imposes a duty on the Commission to encourage alternative dispute resolution (ADR), and authorizes the Commission to send a dispute out to ADR before making a decision. Examples of disputes that could be referred to ADR are conflicts with First Nations, correlative rights issues, overlapping seismic applications, complaints from environmental organizations, and issues with guide outfitters. 

 

The OGCA also establishes an advisory committee to support the Commission, and authorizes the advisory committee, in some cases (mostly decisions under the Petroleum Natural Gas Act and Pipeline Act decisions), to ask the Commission to reconsider a decision by sending it out for alternate dispute resolution. 

 

Related Guide Pages:

• For statutes involving Oil & Gas exploitation on federal lands, see the Canada Oil and Gas Act and the Canada Petroleum Resources Act.
• Oil & Gas Exploitation.

 

For more information on the Oil and Gas Commission Act:

• Full text of the statute.
• Oil and Gas Commission website.