Oil Tanker Moratorium Act (S.C. 2019, c. 26)

Marginal note:Interference with service of notice

18 It is prohibited for a person to intentionally interfere with the service of a notice of a detention order.

Marginal note:Permission or direction to move vessel

• 19 (1) The Minister may, in respect of a vessel that is subject to a detention order,

  • (a) on application made by the authorized representative of the vessel or, if there is no authorized representative, by the vessel’s owner, permit the master to move the vessel in accordance with the Minister’s directions; and

  • (b) on application made by the owner of a dock or wharf — or by the person in charge of a port or marine installation — at which the vessel is located, direct the person who is, or appears to be, in charge of the vessel to move it in accordance with the Minister’s directions.

• Marginal note:Non-compliance with paragraph (1)(b)

  (2) If a person does not comply with a direction given to them under paragraph (1)(b) and the Minister is satisfied that the applicant for the direction has sufficient insurance in place to cover any incident that may arise from the moving of the vessel, the Minister may authorize the applicant to move the vessel in accordance with the Minister’s directions and at the expense of the authorized representative or, if there is no authorized representative, the owner.

Sale of Vessels

Marginal note:No appearance and no security

• 20 (1) The Minister may apply to a court of competent jurisdiction for an order authorizing the Minister to sell a vessel that is subject to a detention order made under subsection 17(1) if

  • (a) the vessel has been charged with an offence under this Act within 30 days after the day on which the order was made; and

  • (b) no one appeared in Canada on behalf of the vessel within 30 days after the day on which the vessel was charged with the offence to answer to the charge and security referred to in subparagraph 17(6)(c)(i) has not been not given.

• Marginal note:Appearance but no security

  (2) The Minister may apply to a court of competent jurisdiction for an order authorizing the Minister to sell a vessel that is subject to a detention order made under subsection 17(1) if

  • (a) the vessel has been charged with an offence under this Act within 30 days after the day on which the order was made;

  • (b) someone appeared in Canada on behalf of the vessel within 30 days after the day on which the vessel was charged with the offence to answer to the charge but security referred to in subparagraph 17(6)(c)(i) has not been given; and

  • (c) the vessel has been convicted and a fine has been imposed but not paid.

Marginal note:Notice

• 21 (1) As soon as feasible after making an application under subsection 20(1) or (2), the Minister must send, by registered mail, notice of the application to

  • (a) the person responsible for maintaining any register in which the vessel is registered, listed or recorded;

  • (b) the holder of any mortgage or hypothec registered against the vessel on the register in which the vessel is registered, listed or recorded; and

  • (c) the holder of any maritime lien or like interest or right against the vessel, if the holder is known to the Minister at the time the application is made.

• Marginal note:Day notice deemed given

  (2) The notice is deemed to have been given to the person to whom it was sent on the day on which an acknowledgement of receipt is received by the Minister.

• Marginal note:Relief from giving notice

  (3) If the court seized of an application made under subsection 20(1) or (2) is satisfied that it is appropriate to do so, the court may relieve the Minister of the obligation to give the notice or authorize the Minister to give the notice in any other manner that the court considers appropriate.

Marginal note:Claiming interest or right

• 22 (1) If an application is made under subsection 20(1) or (2) in respect of a vessel

  • (a) any person referred to in paragraph 21(1)(b) or (c) may, within 30 days after the day on which the notice of the application is sent to that person, apply to the court seized of the application for an order referred to in subsection (2); and

  • (b) any other person who claims an interest or a right in the vessel as mortgagee or hypothecary creditor or as the holder of a maritime lien or any like interest or right may, within 30 days after the day on which the application is made, apply to the court seized of the application for an order referred to in subsection (2).

• Marginal note:Order

  (2) A court seized of an application made under subsection (1) must grant to the applicant an order declaring the nature and extent of the applicant’s interest or right at the time the detention order was made if the court is satisfied that

  • (a) the applicant acquired the interest or the right in good faith before the making of the detention order; and

  • (b) the applicant is innocent of any complicity or collusion in respect of the alleged offence that gave rise to the making of the detention order.

• Marginal note:Priority of applications

  (3) An application made under subsection 20(1) or (2) must not be heard until all applications made under subsection (1) in respect of the vessel have been heard.

Marginal note:Authorization of sale

• 23 (1) A court seized of an application made under subsection 20(1) or (2) may

  • (a) authorize the Minister to sell the vessel in any manner and subject to any terms that the court considers appropriate; and

  • (b) on application by the Minister, give directions to the Minister as to the ranking of the interests or the rights of persons who have obtained an order referred to in subsection 22(2).

• Marginal note:Payment of proceeds

  (2) If the court has authorized the sale of a vessel and that vessel is sold, any surplus remaining from the proceeds of the sale — after deducting the amount of the maximum fine that could have been imposed for the offence, if subsection 20(1) applies, or the fine actually imposed, if subsection 20(2) applies, and all expenses incurred in respect of the detention and the costs of the sale — must, to the extent of the surplus, be paid in accordance with the interests or the rights of persons who have obtained an order referred to in subsection 22(2) and any surplus remaining after that must be paid to the owner of the vessel.

• Marginal note:Clear title

  (3) On selling a vessel whose sale has been authorized by the court, the Minister may, by bill of sale, give the purchaser a valid title to the vessel free from any mortgage or hypothec or other interest or right that is in existence at the time of the sale.

• Marginal note:Registrability of vessel

  (4) Nothing in subsection (3) is to be construed as meaning that the vessel may be registered in the name of the purchaser.

Regulations

Marginal note:Regulations

24 The Governor in Council may, by regulation, amend the schedule by adding or deleting any oil or class of oils.

Offences and Punishment

Marginal note:Contravention of section 4

25 Every person or vessel that contravenes any of subsections 4(1) to (5) is guilty of an offence and liable

• (a) on conviction on indictment, to a fine of not more than $5,000,000; and

• (b) on summary conviction, to a fine of not more than $1,000,000.

Marginal note:Contravention of other provisions

• 26 (1) Every person who contravenes any of the following is guilty of an offence:

  • (a) subsection 7(1) or (4);

  • (b) section 12;

  • (c) section 15;

  • (d) section 16;

  • (e) subsection 17(4) or (5); and

  • (f) section 18.

• Marginal note:Contravention of a direction

  (2) Every person or vessel that contravenes a direction given under section 8 or 10, paragraph 11(3)(j) or subsection 11(5) is guilty of an offence.

• Marginal note:Punishment

  (3) Every person or vessel that is guilty of an offence under subsection (1) or (2) is liable on summary conviction to a fine of not more than $1,000,000 or to imprisonment for a term of not more than 18 months, or to both.