National Energy Board Act Part VI (Oil and Gas) Regulations (SOR/96-244)

Licences for Exportation

• 26 (1) Subject to subsection (2), the Board may, after holding a public hearing and obtaining the approval of the Governor in Council under section 4, issue a licence authorizing any person

  • (a) to export heavy crude oil for a period exceeding two years but not exceeding 25 years; and

  • (b) to export oil, other than heavy crude oil, for a period exceeding one year but not exceeding 25 years.

• (2) The Board may issue a licence for the exportation of refined petroleum products, resulting from an oil processing arrangement of imported oil, for a period exceeding one year but not exceeding 25 years, without holding a public hearing.

• (3) For the purposes of subsection (2), “oil processing arrangement of imported oil” means a commercial arrangement whereby oil is imported for processing or refining at a refinery in Canada, and the refined petroleum products obtained or derived therefrom, or from a quantity of other oil determined by the Board to be comparable thereto, are to be exported from Canada.

Terms and Conditions of Licences for Exportation

27 The following are matters in respect of which terms and conditions may be included in any licence for the exportation of oil:

• (a) the duration of the licence;

• (b) the period within which the exportation of the oil must commence in order for the licence to remain in effect;

• (c) the total quantity of oil that may be exported;

• (d) the points of exportation of the oil from Canada; and

• (e) the environmental requirements that must be met in order for the licence to take or remain in effect.

Orders for Exportation

28 Where the Board determines that an application for an order for the exportation of oil contains all the information necessary to dispose of the application, the Board may issue an order authorizing a person

• (a) to export heavy crude oil for a period not exceeding two years; or

• (b) to export oil, other than heavy crude oil, for a period not exceeding one year.

Terms and Conditions of Orders for Exportation

29 The following are matters in respect of which terms and conditions may be included in any order issued under section 28:

• (a) the duration of the order;

• (b) the period within which the exportation of the oil must commence in order for the order to remain in effect;

• (c) the requirement that a contract or an agreement that the holder of the order enters into for the exportation of oil for a period of more than one month must relieve the holder of the order of any obligation to export oil under the contract or agreement to the extent that exportations are restricted by or under an Act of Parliament or a prerogative of the Crown;

• (d) the total quantity of oil that may be exported;

• (e) the points of exportation of the oil from Canada;

• (f) the environmental requirements that must be met in order for the order to take or remain in effect; and

• (g) the requirement that the holder of the order comply with

  • (i) the Act and any regulation made under it, and

  • (ii) any order that applies to the holder of the order made under the Act.