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ARTICLE · 30 JUNE 2015

The New Pipeline Safety Act Has Been Passed

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On June 18, 2015, the new Federal Pipeline Safety Act ( Bill C-46) received Royal Assent.

CanadaEnergy and Natural Resources
David Stevens
David Stevens
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On June 18, 2015, the new Federal Pipeline Safety Act ( Bill C-46) received Royal Assent. The Pipeline Safety Act includes amendments to the National Energy Board Act ("NEB Act") and the Canada Oil and Gas Operations Act. These amendments impose greater obligations and liability on companies that operate federally-regulated oil and gas pipelines. The Government's public statement indicates that the legislative changes will "strengthen incident prevention, preparedness and response, and liability and compensation."

A key part of the Pipeline Safety Act is the codification of the "polluter pays" principle. The stated purpose of new sections of the NEB Act is to "reinforce the 'polluter pays' principle by, among other things, imposing financial requirements on any company that is authorized under this Act to construct or operate a pipeline."

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