Pipeline Act

 

The Pipeline Act regulates oil and gas gathering lines and flow lines (pipelines), unless they cross into Alberta, Yukon, or the United States (in which case they’re regulated by the federal government under the National Energy Board Act).  The Minister of Energy and Mines administers the Act.  However, the Oil and Gas Commission issues most of the authorizations required under the Act.

 

Certificate for Construction

 

Before constructing a pipeline, a company must obtain a certificate from the Oil and Gas Commission, approving the route in which the pipeline will follow.  A Certificate does not grant the company property rights over the pipeline route, but these can be acquired after a certificate is issued (see below). 

 

When considering an application, the Commission must ‘have regard to’ all considerations the Commission feels relevant, including the recommendation of the Minister of Water, Land and Air Protection and the ‘needs and general good of the residents of BC as a whole.’  For lands occupied by buildings, the consent of the landowner is not required.  For land under cultivation, the company must also obtain written permission from the occupant or post a damage deposit.

 

With a certificate from the Oil and Gas Commission, a company is authorized to enter on to any land (Crown and private) ‘lying in the indicated route of its line’ in order to make surveys, construct roads/buildings, transport oil or gas, and/or maintain its pipeline.  When exercising these powers, the company must ‘do as little damage as possible’ and make full compensation to all ‘persons interested’ for all damage sustained. 

 

With a certificate, the company is also authorized to ‘take and appropriate’ as much of the land as may be necessary for the pipeline’.  If there is a dispute between a company and the landowner, the Mediation and Arbitration Board is authorized to settle the dispute, grant access, and fix compensation.

 

A company must locate and construct its pipeline and connected works so as not to ‘endanger the public health or safety.’  The Oil and Gas Commission has the power to direct a company to divert or relocate the pipeline on recommendation of the Minister of Water, Land and Air Protection.

 

To operate a pipeline, a company must obtain approval from the Oil and Gas Commission.  The Commission may impose whatever conditions it sees fit on the company’s operations. 

Related Guide Pages:

·          Oil and Gas Exploitation

·          Oil and Gas Commission Act

·          Petroleum and Natural Gas Act

For more information on the Pipeline Act:

·          Electronic copy of the Pipeline Act

·          Oil and Gas Commission website.