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MINUTES OF PROCEEDINGS

Meeting No. 54

Thursday, April 23, 2015

The Standing Committee on Natural Resources met at 3:28 p.m. this day, in Room 268, The Valour Building, the Chair, Leon Benoit, presiding.

Members of the Committee present: Leon Benoit, Kelly Block, Guy Caron, Chris Charlton, Joan Crockatt, Linda Duncan, Pat Perkins, Hon. Geoff Regan and Brad Trost.

Acting Members present: Rick Norlock for Ryan Leef.

Other Members present: Elizabeth May.

In attendance: Library of Parliament: Mohamed Zakzouk, Analyst.

Witnesses: Department of Natural Resources: Jeff Labonté, Director General, Energy Safety and Security Branch, Energy Sector; Terence Hubbard, Director General, Petroleum Resources Branch, Energy Sector; Christine Siminowski, Director, Energy Safety and Security Branch, Energy Sector; Joseph McHattie, Legal Counsel.

Pursuant to the Order of Reference of Monday, March 9, 2015, the Committee resumed consideration of Bill C-46, An Act to amend the National Energy Board Act and the Canada Oil and Gas Operations Act.

Jeff Labonté and Joseph McHattie answered questions.

The Committee commenced its clause-by-clause study of the Bill.

Pursuant to Standing Order 75(1), consideration of Clause 1, Short Title, was postponed.

The Chair called Clause 2.

On Clause 2,

Guy Caron moved, — That Bill C-46, in Clause 2, be amended by replacing lines 2 to 11 on page 2 with the following:

“disturbance caused by any activity that is specified in the orders or regulations made under subsection 112(5);”

After debate, the question was put on the amendment of Guy Caron and it was negatived on the following recorded division: YEAS: Guy Caron, Chris Charlton, Linda Duncan, Geoff Regan — 4; NAYS: Kelly Block, Joan Crockatt, Rick Norlock, Pat Perkins, Brad Trost — 5.

Pursuant to the order adopted by the Committee on Monday, November 4, 2013, the following amendment, submitted by Elizabeth May for the consideration of the Committee, was deemed moved:

That Bill C-46, in Clause 2, be amended by deleting lines 5 and 6 on page 2.

After debate, the question was put on the amendment and it was negatived on the following recorded division: YEAS: Guy Caron, Chris Charlton, Linda Duncan, Geoff Regan — 4; NAYS: Kelly Block, Joan Crockatt, Rick Norlock, Pat Perkins, Brad Trost — 5.

Geoff Regan moved, — That Bill C-46, in Clause 2, be amended by replacing lines 7 to 11 on page 2 with the following:

“(c) any other activity to a depth that does not result in a reduction of the earth cover over the pipeline to a depth that is less than the cover provided when the pipeline was constructed and that is permitted without leave and determined in accordance with the construction standards used by the company and recognized by the Board;”

After debate, the question was put on the amendment of Geoff Regan and it was negatived on the following recorded division: YEAS: Guy Caron, Chris Charlton, Linda Duncan, Geoff Regan — 4; NAYS: Kelly Block, Joan Crockatt, Rick Norlock, Pat Perkins, Brad Trost — 5.

Pursuant to the order adopted by the Committee on Monday, November 4, 2013, the following amendment, submitted by Elizabeth May for the consideration of the Committee, was deemed moved:

That Bill C-46, in Clause 2, be amended by adding after line 13 on page 2 the following:

“(2) Section 2 of the Act is renumbered as subsection 2(1) and is amended by adding the following:

(2) For greater certainty, nothing in this Act shall be construed so as to abrogate or derogate from the protection provided for existing aboriginal or treaty rights of the aboriginal peoples of Canada by the recognition and affirmation of those rights in section 35 of the Constitution Act, 1982.”

Clause 2 carried on division.

By unanimous consent, Clauses 3 and 4 carried severally.

Clause 5 carried on division.

By unanimous consent, Clauses 6 to 14 inclusive carried on division severally.

On Clause 15,

Linda Duncan moved, — That Bill C-46, in Clause 15, be amended

(a) by replacing lines 5 to 7 on page 5 with the following:

“(a) the safety and security of the public or of the employees of the company;

(a.1) the safety and security of the pipeline or of the abandoned pipeline; or”

(b) by replacing lines 13 to 21 on page 5 with the following:

“subsection 51.1(1), the Board or any officer, employee or third party authorized by the Board may take any action or measure that they consider necessary in relation to the pipeline.”

After debate, the question was put on the amendment of Linda Duncan and it was negatived, by a show of hands: YEAS: 4; NAYS: 5.

Pursuant to the order adopted by the Committee on Monday, November 4, 2013, the following amendment, submitted by Elizabeth May for the consideration of the Committee, was deemed moved:

That Bill C-46, in Clause 15, be amended by adding after line 9 on page 5 the following:

“(c) the protection, recognition and implementation of aboriginal and treaty rights.”

Pursuant to the order adopted by the Committee on Monday, November 4, 2013, the following amendment, submitted by Elizabeth May for the consideration of the Committee, was deemed moved:

That Bill C-46, in Clause 15, be amended by deleting lines 10 to 34 on page 5.

After debate, the question was put on the amendment and it was negatived, by a show of hands: YEAS: 0; NAYS: 8.

Guy Caron moved, — That Bill C-46, in Clause 15, be amended by adding after line 13 on page 6 the following:

“(2.4) Before holding any public hearing, the company must make the outlines of any measures taken under subsection (2.3) available to the public.”

After debate, the question was put on the amendment of Guy Caron and it was negatived, by a show of hands: YEAS: 4; NAYS: 5.

Clause 15 carried on division.

On Clause 16,

Pursuant to the order adopted by the Committee on Monday, November 4, 2013, the following amendment, submitted by Elizabeth May for the consideration of the Committee, was deemed moved:

That Bill C-46, in Clause 16, be amended by replacing line 17 on page 6 with the following:

“Board's leave, substantially interfere with, alter or”

Pursuant to the order adopted by the Committee on Monday, November 4, 2013, the following amendment, submitted by Elizabeth May for the consideration of the Committee, was deemed moved:

That Bill C-46, in Clause 16, be amended (a) by replacing lines 32 to 36 on page 6 with the following:

“commodity occurs, the company that is authorized under this Act to construct or operate that pipeline is liable for”

(b) by deleting line 29 on page 7 to line 25 on page 8.

“necessary to pay the amount specified by the Board.”

(d) by replacing lines 37 to 40 on page 11 with the following:

“relation to the release.”

(e) by replacing lines 18 to 21 on page 13 with the following:

“48.46(1), make regulations”

After debate, the question was put on the amendment and it was negatived on division.

Pursuant to the order adopted by the Committee on Monday, November 4, 2013, the following amendment, submitted by Elizabeth May for the consideration of the Committee, was deemed moved:

That Bill C-46, in Clause 16, be amended by replacing line 7 on page 7 with the following:

“province, any Aboriginal governing body or any other person in taking any”

Linda Duncan moved, — That the amendment be amended by adding the words “a municipality,” after the word “province,”

After debate, the question was put on the subamendment of Linda Duncan and it was negatived, by a show of hands: YEAS: 4; NAYS: 5.

The question was put on the amendment and it was agreed to on the following recorded division: YEAS: Kelly Block, Guy Caron, Chris Charlton, Joan Crockatt, Linda Duncan, Rick Norlock, Pat Perkins, Geoff Regan, Brad Trost — 9; NAYS: — 0.

Pursuant to the order adopted by the Committee on Monday, November 4, 2013, the following amendment, submitted by Elizabeth May for the consideration of the Committee, was deemed moved:

That Bill C-46, in Clause 16, be amended

(a) by replacing lines 10 to 13 on page 7 with the following:

“(c) all environmental damage, including the loss of use value and of non-use value, resulting from the release or from any action or measure taken in relation to the release.

(1.1) The Governor in Council may make regulations prescribing the manner in which any environmental damage described in paragraph (1)(c) is to be assessed.”

(b) by replacing line 27 on page 7 with the following:

“expenses and the environmental damage,”

“environmental damage, described in paragraphs”

(d) by replacing lines 31 and 32 on page 8 with the following:

“province may institute proceedings to recover for environmental damage described in paragraph”

(e) by replacing line 41 on page 8 with the following:

“lastly, to recover for environmental damage”

(f) by deleting lines 11 to 15 on page 24.

Guy Caron moved, — That Bill C-46, in Clause 16, be amended by adding after line 13 on page 7 the following:

“(1.1) Subsection (1) does not apply to the owner of the lands except, in the Province of Quebec, in the event of the gross or intentional fault of the owner of the lands, and, in any other province, in the event of the gross negligence or wilful misconduct of the owner of the lands.”

After debate, the question was put on the amendment of Guy Caron and it was negatived, by a show of hands: YEAS: 3; NAYS: 6.

Linda Duncan moved, — That Bill C-46, in Clause 16, be amended by adding after line 13 on page 7 the following:

“(1.1) The Governor in Council may make regulations prescribing the manner in which the loss of non-use value described in paragraph (1)(c) is to be assessed.

(1.2) If no regulations have been made under subsection (1.1) within one year of the coming into force of this section, the Minister must cause a report to be laid before each House of Parliament on any of the first 10 days on which that House is sitting after the expiry of that one-year period.

(1.3) If no such regulations are made within one year after the tabling of the report referred to in subsection (1.2), the Minister must cause a report to be laid before each House of Parliament on any of the first 10 days on which that House is sitting after the expiry of that one-year period and at least once every subsequent one-year period as long as no regulations have been made.

(1.4) The report must include an explanation of the reasons why the regulations have not been made and establish a schedule for the making of such regulations.”

After debate, the question was put on the amendment of Linda Duncan and it was negatived, by a show of hands: YEAS: 4; NAYS: 5.

Geoff Regan moved, — That Bill C-46, in Clause 16, be amended by adding after line 13 on page 7 the following:

“(1.1) For greater certainty, section (1) does not apply in cases where a land acquisition agreement that meets the requirements set out in section 86 provides the owner with indemnification against suits and actions resulting from the company’s operations, pipelines or abandoned pipelines.”

After debate, the question was put on the amendment of Geoff Regan and it was negatived, by a show of hands: YEAS: 4; NAYS: 5.

Guy Caron moved, — That Bill C-46, in Clause 16, be amended

(a) by replacing lines 34 and 35 on page 7 with the following:

“negligence, for the actual”

(b) by deleting line 39 on page 7 to line 25 on page 8.

“necessary to pay the amount specified by the Board.”

(d) by replacing lines 37 to 40 on page 11 with the following:

“relation to the release.”

(e) by replacing lines 18 to 21 on page 13 with the following:

“48.46(1), make regulations”

After debate, the question was put on the amendment of Guy Caron and it was negatived, by a show of hands: YEAS: 3; NAYS: 6.

Pursuant to the order adopted by the Committee on Monday, November 4, 2013, the following amendment, submitted by Elizabeth May for the consideration of the Committee, was deemed moved:

That Bill C-46, in Clause 16, be amended by deleting lines 26 to 29 on page 8.

Linda Duncan moved, — That Bill C-46, in Clause 16, be amended by replacing lines 30 and 31 on page 8 with the following:

“(9) Only a federal, provincial or municipal government institution or an Aboriginal governing body may institute proceedings to recover a”

RULING BY THE CHAIR

The amendment seeks to broaden, beyond Her Majesty in right of Canada and a province, the category of actors who can institute proceedings to recover a loss of non-use value relating to a public resource.

As House of Commons Procedure and Practice, Second Edition, states on page 766:

“An amendment to a bill that was referred to committee after second reading is out of order if it is beyond the scope and principle of the bill.”

In the opinion of the Chair this amendment goes beyond the scope of the Bill. Therefore I rule the amendment inadmissible.

Pursuant to the order adopted by the Committee on Monday, November 4, 2013, the following amendment, submitted by Elizabeth May for the consideration of the Committee, was deemed moved:

That Bill C-46, in Clause 16, be amended by replacing line 31 on page 8 with the following:

“province or an Aboriginal governing body may institute proceedings to recover a”

RULING BY THE CHAIR

As House of Commons Procedure and Practice, Second Edition, states on page 766:

“An amendment to a bill that was referred to committee after second reading is out of order if it is beyond the scope and principle of the bill.”

In the opinion of the Chair this amendment goes beyond the scope of the Bill. Therefore I rule the amendment inadmissible.

Linda Duncan moved, — That Bill C-46, in Clause 16, be amended by adding after line 33 on page 8 the following:

“(9.1) The minister shall coordinate with the appropriate provincial Minister all proceedings to recover claims.”

After debate, the question was put on the amendment of Linda Duncan and it was negatived on the following recorded division: YEAS: Guy Caron, Chris Charlton, Linda Duncan, Geoff Regan — 4; NAYS: Kelly Block, Joan Crockatt, Rick Norlock, Pat Perkins, Brad Trost — 5.

Linda Duncan moved, — That Bill C-46, in Clause 16, be amended by replacing lines 11 to 15 on page 9 with the following:

“this section may be instituted within five years from the day on which the loss, damage, or costs and expenses were incurred but in no case after 10 years from the day on which the release of oil or gas occurred or, in the event the installation or structure in question was abandoned at the time of the release, without a limitation date.”

After debate, the question was put on the amendment of Linda Duncan and it was negatived, by a show of hands: YEAS: 4; NAYS: 5.

Pursuant to the order adopted by the Committee on Monday, November 4, 2013, the following amendment, submitted by Elizabeth May for the consideration of the Committee, was deemed moved:

That Bill C-46, in Clause 16, be amended by replacing lines 12 to 15 on page 9 with the following:

“from the day on which the discovery of the loss or damage was made or on which costs and expenses were incurred but in no case after six years from the day on which the discovery of the release was made.”

After debate, the question was put on the amendment and it was negatived, by a show of hands: YEAS: 4; NAYS: 5.

Geoff Regan moved, — That Bill C-46, in Clause 16, be amended by replacing lines 12 to 15 on page 9 with the following:

“from the day on which the loss or damage was discovered or the cost or expenses were incurred but in no case after six years from the day on which the release was discovered.”

After debate, the question was put on the amendment of Geoff Regan and it was negatived, by a show of hands: YEAS: 4; NAYS: 5.

Linda Duncan moved, — That Bill C-46, in Clause 16, be amended by replacing line 15 on page 9 with the following:

“occurred or, in the case of debris, from the day the installation or structure in question was abandoned or the material in question broke away or was jettisoned or displaced.”

Guy Caron moved, — That Bill C-46, in Clause 16, be amended by replacing lines 39 to 42 on page 9 with the following:

“with any order made under subsection (2).”

After debate, the question was put on the amendment of Guy Caron and it was negatived, by a show of hands: YEAS: 4; NAYS: 5.

Guy Caron moved, — That Bill C-46, in Clause 16, be amended by replacing lines 16 to 18 on page 10 with the following:

“any regulation made under subsection (7) until it obtains leave from the Board to abandon the operation of its pipeline and the Board exempts it from the requirement to maintain the funds described in subsection (1).”

After debate, the question was put on the amendment of Guy Caron and it was negatived, by a show of hands: YEAS: 4; NAYS: 5.

Pursuant to the order adopted by the Committee on Monday, November 4, 2013, the following amendment, submitted by Elizabeth May for the consideration of the Committee, was deemed moved:

That Bill C-46, in Clause 16, be amended by replacing line 29 on page 11 with the following:

“a pipeline occurs, the Board shall order the”

After debate, the question was put on the amendment and it was negatived on division.

Linda Duncan moved, — That Bill C-46, in Clause 16, be amended by replacing lines 29 to 34 on page 11 with the following:

“a pipeline occurs and a claim for cost recovery is made by any federal, provincial or municipal government institution, any Aboriginal governing body or any person affected by the release, the Board shall order the company that is authorized under this Act to construct or operate that pipeline to reimburse those claimants the costs and expenses that the”

After debate, the question was put on the amendment of Linda Duncan and it was negatived, by a show of hands: YEAS: 4; NAYS: 5.

Linda Duncan moved, — That Bill C-46, in Clause 16, be amended by adding after line 40 on page 11 the following:

“(2) If an unintended or uncontrolled release of oil, gas or any other commodity from a pipeline occurs, the Board may, on application by an Aboriginal governing body or a person affected by the release, make an advance payment to cover the costs to enable them to participate in monitoring the recovery of the releasel or the impact assessment process.

(3) The Board may order the company that is authorized under this Act to construct or operate that pipeline to reimburse the payment made under subsection (2).”

After debate, the question was put on the amendment of Linda Duncan and it was negatived, by a show of hands: YEAS: 4; NAYS: 5.

Pursuant to the order adopted by the Committee on Monday, November 4, 2013, the following amendment, submitted by Elizabeth May for the consideration of the Committee, was deemed moved:

That Bill C-46, in Clause 16, be amended by replacing line 1 on page 12 with the following:

“48.16 (1) The Governor in Council shall, on”

By unanimous consent, the amendment was withdrawn.

Pursuant to the order adopted by the Committee on Monday, November 4, 2013, the following amendment, submitted by Elizabeth May for the consideration of the Committee, was deemed moved:

That Bill C-46, in Clause 16, be amended by replacing line 15 on page 13 with the following:

“approval, the Board shall, for the purposes of”

By unanimous consent, after debate, the question was put on the amendment and it was agreed to.

Linda Duncan moved, — That Bill C-46, in Clause 16, be amended by replacing lines 11 to 18 on page 14 with the following:

“(2) A pipeline claims tribunal is to be established if the release has caused extensive damage, compensation is sought in respect of that damage and it is”

After debate, the question was put on the amendment of Linda Duncan and it was negatived, by a show of hands: YEAS: 4; NAYS: 5.

Pursuant to the order adopted by the Committee on Monday, November 4, 2013, the following amendment, submitted by Elizabeth May for the consideration of the Committee, was deemed moved:

That Bill C-46, in Clause 16, be amended by adding after line 5 on page 15 the following:

“(2.1) At least one member of the Tribunal is to be appointed from among persons referred to in subsection (2) who have expertise in aboriginal and treaty rights.”

After debate, the question was put on the amendment and it was negatived on division.

Pursuant to the order adopted by the Committee on Monday, November 4, 2013, the following amendment, submitted by Elizabeth May for the consideration of the Committee, was deemed moved:

That Bill C-46, in Clause 16, be amended by adding after line 14 on page 18 the following:

“(d) traditional aboriginal knowledge may be disclosed.”

After debate, the question was put on the amendment and it was negatived on division.

Pursuant to the order adopted by the Committee on Monday, November 4, 2013, the following amendment, submitted by Elizabeth May for the consideration of the Committee, was deemed moved:

That Bill C-46, in Clause 16, be amended by replacing line 22 on page 21 with the following:

“18.1(4)(a), (b), (c) or (e) of that Act.”

After debate, the question was put on the amendment and it was negatived on division.

Linda Duncan moved, — That Bill C-46, in Clause 16, be amended by adding after line 10 on page 24 the following:

“(1.1) If no regulations have been made under subsection (1) within two years of the coming into force of this section, the Minister must cause a report to be laid before each House of Parliament on any of the first 10 days on which that House is sitting after the expiry of that two-year period.

(1.2) If no such regulations are made within one year after the tabling of the report referred to in subsection (1.1), the Minister must cause a report to be laid before each House of Parliament on any of the first 10 days on which that House is sitting after the expiry of that one-year period and at least once every subsequent one-year period as long as no regulations have been made.

(1.3) The report must include an explanation of the reasons why the regulations have not been made and establish a schedule for the making of such regulations.”

After debate, the question was put on the amendment of Linda Duncan and it was negatived, by a show of hands: YEAS: 4; NAYS: 5.

Clause 16, as amended, carried on division.

By unanimous consent, Clauses 17 to 31 inclusive carried on division severally.

On Clause 32,

Guy Caron moved, — That Bill C-46, in Clause 32, be amended by adding after line 22 on page 32 the following:

“(7) The Arbitration Committee shall render its decision no later than two years after the day on which the Minister is served with a notice of arbitration under subsection 91(1) unless the Committee has notified the Board of the circumstances that do not allow it to meet this requirement.”

Clause 32 carried on division.

Clause 33 carried on division.

On Clause 34,

Pursuant to the order adopted by the Committee on Monday, November 4, 2013, the following amendment, submitted by Elizabeth May for the consideration of the Committee, was deemed moved:

That Bill C-46, in Clause 34, be amended by adding after line 9 on page 33 the following:

“(c) the person is an aboriginal person carrying out harvesting activities in relation to wildlife, such as hunting, trapping or fishing, in conformity with a land claim agreement or, in respect of persons and places not subject to a land claim agreement, pursuant to aboriginal or treaty rights.”

The question was put on the amendment and it was negatived on division.

Clause 34 carried on division.

Clause 35 carried on division.

Clause 36 carried on division.

On Clause 37,

Guy Caron moved, — That Bill C-46, in Clause 37, be amended by adding after line 11 on page 36 the following:

“(f.1) the offender was in a position of authority and the offence was committed as the result of the application of an order given by the offender;”

Guy Caron moved, — That Bill C-46, in Clause 37, be amended by replacing lines 34 to 37 on page 38 with the following:

“(n) prohibiting the offender from applying for any new authorization under this Act until he or she has fulfilled any condition or met any requirement imposed under this Act in relation to an actual or potential unintended or uncontrolled release of oil, gas or any other commodity from a pipeline.”

After debate, the question was put on the amendment of Guy Caron and it was negatived on division.

Guy Caron moved, — That Bill C-46, in Clause 37, be amended by replacing lines 41 and 42 on page 38 with the following:

“determine.”

After debate, the question was put on the amendment of Guy Caron and it was negatived, by a show of hands: YEAS: 3; NAYS: 5.

Clause 37 carried on division.

By unanimous consent, Clauses 38 to 47 inclusive carried on division severally.

Clause 1, Short Title, carried on division.

The Title carried on division.

The Bill, as amended, carried on division.

ORDERED, — That the Chair report the Bill, as amended, to the House.

ORDERED, — That Bill C-46, as amended, be reprinted for the use of the House at report stage.

At 5:14 p.m., the Committee adjourned to the call of the Chair.

Rémi Bourgault
Clerk of the Committee

2015/04/29 10:44 a.m.