Energy Safety and Security Act (S.C. 2015, c. 4)

18. The Act is amended by adding the following after section 25.1:

Marginal note:1992, c. 35, s. 24(1)

• 19. (1) Paragraphs 26(1)(a) and (b) of the Act are replaced by the following:

  • (a) all persons to whose fault or negligence the spill or the authorized discharge, emission or escape of oil or gas is attributable or who are by law responsible for others to whose fault or negligence the spill or the authorized discharge, emission or escape of oil or gas is attributable are jointly and severally liable, to the extent determined according to the degree of the fault or negligence proved against them, for

    • (i) all actual loss or damage incurred by any person as a result of the spill or the authorized discharge, emission or escape of oil or gas or as a result of any action or measure taken in relation to the spill or the authorized discharge, emission or escape of oil or gas,

    • (ii) the costs and expenses reasonably incurred by Her Majesty in right of Canada or a province or any other person in taking any action or measure in relation to the spill or the authorized discharge, emission or escape of oil or gas, and

    • (iii) all loss of non-use value relating to a public resource that is affected by a spill or the authorized discharge, emission or escape of oil or gas or as a result of any action or measure taken in relation to the spill or the authorized discharge, emission or escape of oil or gas; and

  • (b) the person who is required to obtain an authorization under paragraph 5(1)(b) in respect of the work or activity from which the spill or the authorized discharge, emission or escape of oil or gas emanated is liable, without proof of fault or negligence, up to the applicable limit of liability that is set out in subsection (2.2) for the actual loss or damage, the costs and expenses and the loss of non-use value described in subparagraphs (a)(i) to (iii).

• Marginal note:1992, c. 35, ss. 23(4), 24(2), (3)(E) and (4)

  (2) Subsections 26(2) to (3) of the Act are replaced by the following:

  • Marginal note:Recovery of loss, etc., caused by debris

    (2) If, as a result of debris or as a result of any action or measure taken in relation to debris, there is a loss of non-use value relating to a public resource or any person incurs actual loss or damage or if Her Majesty in right of Canada or a province reasonably incurs any costs or expenses in taking any action or measure in relation to debris,

    • (a) all persons to whose fault or negligence the debris is attributable or who are by law responsible for others to whose fault or negligence the debris is attributable are jointly and severally liable, to the extent determined according to the degree of the fault or negligence proved against them, for that loss, actual loss or damage, and for those costs and expenses; and

    • (b) the person who is required to obtain an authorization under paragraph 5(1)(b) in respect of the work or activity from which the debris originated is liable, without proof of fault or negligence, up to the applicable limit of liability that is set out in subsection (2.2), for that loss, actual loss or damage, and for those costs and expenses.

  • Marginal note:Vicarious liability for contractors

    (2.1) A person who is required to obtain an authorization under paragraph 5(1)(b) and who retains, to carry on a work or activity in respect of which the authorization is required, the services of a contractor to whom paragraph (1)(a) or (2)(a) applies is jointly and severally liable with that contractor for any actual loss or damage, costs and expenses and loss of non-use value described in subparagraphs (1)(a)(i) to (iii) and subsection (2).

  • Marginal note:Limits of liability

    (2.2) For the purposes of paragraphs (1)(b) and (2)(b), the limits of liability are

    • (a) in respect of any area of land or submarine area referred to in paragraph 6(1)(a) of the Arctic Waters Pollution Prevention Act, the amount by which $1 billion exceeds the amount prescribed under section 9 of that Act in respect of any activity or undertaking engaged in or carried on by any person described in paragraph 6(1)(a) of that Act;

    • (b) in respect of any area within the Northwest Territories or Nunavut covered by or located a distance of 200 metres or less from any river, stream, lake or other body of inland water and to which paragraph (a) does not apply, the amount of $25 million;

    • (c) in respect of any area within the Northwest Territories or Nunavut to which neither paragraph (a) nor (b) applies, the amount of $10 million; and

    • (d) in respect of any area to which this Act applies and for which no other limit is established, the amount of $1 billion.

  • Marginal note:Increase in limits of liability

    (2.3) The Governor in Council may, by regulation, on the recommendation of the Minister, increase the amounts referred to in subsection (2.2).

  • Marginal note:Liability under another law — paragraph (1)(b) or (2)(b)

    (2.4) If a person is liable under paragraph (1)(b) or (2)(b) with respect to an occurrence and the person is also liable under any other Act, without proof of fault or negligence, for the same occurrence, the person is liable up to the greater of the applicable limit of liability that is set out in subsection (2.2) and the limit up to which the person is liable under the other Act. If the other Act does not set out a limit of liability, the limits set out in subsection (2.2) do not apply.

  • Marginal note:Costs and expenses not recoverable under Fisheries Act

    (2.5) The costs and expenses that are recoverable by Her Majesty in right of Canada or a province under this section are not recoverable under subsection 42(1) of the Fisheries Act.

  • Marginal note:Action — loss of non-use value

    (2.6) Only Her Majesty in right of Canada or a province may bring an action to recover a loss of non-use value described in subsections (1) and (2).

  • Marginal note:Claims

    (3) All claims under this section may be sued for and recovered in any court of competent jurisdiction in Canada and shall rank, firstly, in favour of persons incurring actual loss or damage described in subsections (1) and (2), without preference, secondly, to meet any costs and expenses described in those subsections, and, lastly, to recover a loss of non-use value described in those subsections.

• (3) The portion of subsection 26(4) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Saving

    (4) Subject to subsections (2.5) and (2.6), nothing in this section suspends or limits

• (4) Subsection 26(5) of the French version of the Act is replaced by the following:

  • Marginal note:Prescription

    (5) Les poursuites en recouvrement de créances fondées sur le présent article se prescrivent par trois ans après la date des pertes, dommages ou frais et par six ans après la date des déversements, dégagements, écoulements ou rejets ou après la date où s’est manifestée la présence des débris.

20. The Act is amended by adding the following after section 26: