Market Snapshot: Canada’s Pipeline System – Who Regulates What?

The Department of Energy, Mines and Resources is responsible for regulating the exploration and development of Yukon’s oil and gas resources, including issuing oil and gas rights, administering royalty revenues and licences, and regulating industry activities.

In 1993, the Canada Yukon Oil and Gas Accord was signed. It transferred responsibility for oil and gas resources from the NEB to the Government of Yukon.

The Yukon Utilities Board regulates the rates of two electricity providers in the territory, Yukon Energy Corporation and ATCO Electric Yukon.

The OROGO regulates onshore oil and gas operations in the Northwest Territories, outside federal areas and the Inuvialuit Settlement Region. Their responsibilities include application reviews, regulating seismic and drilling operations, pipeline and well regulation, inspection and compliance, and emergency response and investigation.

The OROGO was established in 2014 when the Northwest Territories’ Oil and Gas Operations Act came into force.

The NWT PUB is an independent agency of the Government of the Northwest Territories. It is responsible for the regulation of public utilities in the NWT, such as natural gas and electricity.

There are currently six utility companies operating in the NWT that are regulated by the PUB. The NWT Power Corporation, Northland Utilities (Yellowknife) Limited, and Northland Utilities (NWT) Limited are fully regulated by the PUB. The remaining three companies are regulated by the PUB on a complaints-basis only.

The URRC is an arms-length advisory council that assesses rates, policy development, and major project applications submitted by the Qulliq Energy Corporation. The Council also provides recommendations to the Government of Nunavut on power rates.

The BCOGC is responsible for overseeing oil and gas operations, refineries, and geothermal development in British Columbia. It regulates 50 813 km of pipelines, 78% of which carry natural gas.

For example, the BCOGC regulates the Coastal GasLink pipeline, the LNG Canada export terminal project, and the Vancouver Airport Fuel Delivery project.

The Commission was established in 1998.

The BCUC is an independent regulatory agency that regulates energy utilities’ rate applications, and their construction plans for new facilities. The BCUC also regulates the financial side of common carrier pipelines located entirely within B.C., including tolls and the conditions for using the service of pipelines.

The BCUC regulates NorthRiver Midstream gas gathering pipelines, BC Hydro and FortisBC Energy Inc.

The AER regulates energy development in Alberta, including the life cycle of oil, oil sands, natural gas, and coal projects. It regulates 433 000 km of pipelines, 146 000 operating wells, 21 000 gas facilities, and 30 000 oil facilities.

The AER regulates the Alberta Products Pipe Line, the Pembina Pipeline System, and the Syncrude Pipeline.

The AER was established in 1938.

The AUC is an independent, quasi-judicial agency of the province of Alberta that regulates the utilities sector, natural gas, and electricity markets.

The AUC approves new pipeline construction, issues licences for pipeline construction, operation, abandonment and removal, reviews and approves routing, approves rates to be paid to transport gas through the pipeline system, and establishes rules and regulations for the design, construction, operation and abandonment of gas utility pipelines in Alberta.

The AUC regulates ATCO Gas and Pipelines and Apex Utilities Inc. (formerly AltaGas Utilities Inc.), which are both natural gas distributors in Alberta.

The Ministry operates as the primary regulatory authority for the oil and gas industry and ensures competitive royalty systems, regulations, and policies for all natural resource sectors.

For example, the Ministry regulates the TransGas pipeline system.

The Saskatchewan Rate Review Panel advises the Government of Saskatchewan on rate applications proposed by SaskEnergy and SaskPower. The Panel reviews each application to determine the fairness and reasonableness of the rate request, and provides the government with an objective evaluation.

The Natural Resources and Northern Development Division regulates the exploration, development, production and transportation of oil and gas.

The PUB regulates natural gas, propane, and electricity rates, and monitors the construction and operation of gas pipelines that are subject to provincial jurisdiction.

The PUB regulates rates for natural gas supplied by Centra Gas and electricity rates by Manitoba Hydro.

The OEB regulates electricity and natural gas rates. The OEB also reviews applications for new electricity transmission lines and natural gas pipelines.

The OEB regulates Ontario’s main natural gas distribution company, Enbridge Gas Inc.

The Board was established in 1960.

The Ministry regulates licenses for the exploration and extraction of oil, natural gas, and salt resources, as well as underground storage. They are also responsible for managing these resources where they occur on Crown lands.

The Régie de l'énergie du Québec is the economic regulator of electricity and natural gas rates in Quebec.

For example, the Régie de l'énergie regulates Énergir (formerly Gaz Métro) and Enbridge Gazifère, both gas distributors in Quebec, but only in matters of economic viability and tolls and tariffs.

The Régie du bâtiment du Québec regulates the installation and exploitation of gas and refined petroleum product pipelines in Quebec.

The Régie du bâtiment du Québec regulates the Pipeline Saint-Laurent, which transports refined petroleum products.

The Ministère de l’Énergie regulates 16 km of crude oil pipelines in Quebec. It provides integrity oversight and performs inspections and audits on the companies it regulates.

The EUB regulates various aspects of the electricity and natural gas sectors. The EUB also sets weekly maximum prices for petroleum products sold within the province. The EUB promotes safety and ensures that companies design, construct, operate, and abandon pipelines safely.

The EUB regulates Liberty Utilities, which distributes natural gas throughput southern New Brunswick.

The Board was established in 1910.

The NSUARB sets petroleum product prices and sets rates for electricity, water, and natural gas utilities. In 1999, the Board assumed responsibility for the regulation of oil and gas pipeline construction, operations, and maintenance. NSUARB regulates Nova Scotia Power, which is responsible for electricity distribution in the province.

The Board was established in 1992.

The Board is responsible for the regulation of electricity rates in the province. In 2004, the Board assumed responsibility for regulation of maximum prices for petroleum products in the province.

The Commission was established in 1991 and is responsible for regulating petroleum pricing, as well as electricity and water utilities. It regulates the operations of Maritime Electric Company Limited.

The role of the C-NLOPB is to facilitate the exploration for and development of petroleum resources in the Canada-Newfoundland and Labrador Offshore Area.

On 5 April 2022, NRCan announced that the Board’s mandate would be expanded to include the regulation of offshore renewable energy development, such as wind and clean hydrogen. The Board will be renamed to the Canada-Newfoundland and Labrador Offshore Energy Board (C-NLOEB) to reflect its new mandate.

There are currently four production facilities in offshore Newfoundland and Labrador: Hebron, Hibernia, Terra Nova and White Rose.

Since 1990, the CNSOPB has been overseeing all activities through the lifecycle of offshore oil and gas projects in the Canada-Nova Scotia offshore area, from exploration through development, and finally to abandonment.

The CNSOPB regulates the Sable Offshore Energy Project and the Deep Panuke Offshore Gas Development Project, which are both now permanently decommissioned and abandoned.