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First Session, Forty-second Parliament,
64-65-66 Elizabeth II, 2015-2016-2017
HOUSE OF COMMONS OF CANADA
BILL C-48
An Act respecting the regulation of vessels that transport crude oil or persistent oil to or from ports or marine installations located along British Columbia’s north coast
FIRST READING, May 12, 2017
MINISTER OF TRANSPORT
90835


SUMMARY
This enactment enacts the Oil Tanker Moratorium Act, which prohibits oil tankers that are carrying more than 12500 metric tons of crude oil or persistent oil as cargo from stopping, or unloading crude oil or persistent oil, at ports or marine installations located along British Columbia’s north coast from the northern tip of Vancouver Island to the Alaska border. The Act prohibits loading if it would result in the oil tanker carrying more than 12500 metric tons of those oils as cargo.
The Act also prohibits vessels and persons from transporting crude oil or persistent oil between oil tankers and those ports or marine installations for the purpose of aiding the oil tanker to circumvent the prohibitions on oil tankers.
Finally, the Act establishes an administration and enforcement regime that includes requirements to provide information and to follow directions and that provides for penalties of up to a maximum of five million dollars.
Available on the Parliament of Canada Web Site at the following address:
http://www.parl.gc.ca


TABLE OF PROVISIONS
An Act respecting the regulation of vessels that transport crude oil or persistent oil to or from ports or marine installations located along British Columbia’s north coast
Short title
1
Oil Tanker Moratorium Act
Interpretation
2
Definitions
Application
3
Binding on Her Majesty
Prohibitions
4
Mooring or anchoring at port, etc.
5
Exception
Exemptions
6
Ministerial exemption
Administration and Enforcement
Reporting Requirement
7
Pre-arrival information
8
Direction not to moor or anchor
Designated Persons
9
Designation
Powers
10
Direction to provide information — oil tankers
11
Authority to enter a place
General
12
Duty to assist
13
Disposition of samples
14
Return of anything removed
15
Obstruction
16
Interference
Detention of Vessels
17
Detention order
18
Interference with service of notice
19
Permission or direction to move vessel
Sale of Vessels
20
No appearance and no security
21
Notice
22
Claiming interest or right
23
Authorization of sale
Regulations
24
Regulations
Offences and Punishment
25
Contravention of section 4
26
Contravention of other provisions
27
Proof of offence by vessel
28
Liability of owners, operators, etc.
29
Directions deemed given to vessel
30
Due diligence — persons
Summary Conviction Proceedings
31
Limitation period
SCHEDULE 


1st Session, 42nd Parliament,
64-65-66 Elizabeth II, 2015-2016-2017
HOUSE OF COMMONS OF CANADA
BILL C-48
An Act respecting the regulation of vessels that transport crude oil or persistent oil to or from ports or marine installations located along British Columbia’s north coast
Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
Short title
Short title
1This Act may be cited as the Oil Tanker Moratorium Act.
Interpretation
Definitions
2The following definitions apply in this Act.
authorized representative has the same meaning as in section 2 of the Canada Shipping Act, 2001.‍ (représentant autorisé)
crude oil means any liquid hydrocarbon mixture that occurs naturally in the earth — including a liquid hydrocarbon mixture from which distillate fractions have been removed or to which distillate fractions have been added — whether or not it has been treated to render it suitable for transportation.‍ (pétrole brut)
marine installation means an installation that is used or is capable of being used in the loading or unloading of oil to or from vessels and that is on, or is connected to, land.‍ (installation maritime)
master has the same meaning as in section 2 of the Canada Shipping Act, 2001.‍ (capitaine)
Minister means the Minister of Transport. (ministre)
oil means petroleum in any form, including crude oil, fuel oil, sludge, oil refuse and refined products. (hydrocarbure)
oil tanker means a vessel that is constructed or adapted to carry oil in bulk in liquid form in its hold. (pétrolier)
owner, in relation to a vessel, means the registered owner of the vessel or, in the absence of registration, the person having for the time being, either by law or by contract, the rights of the owner of the vessel in respect of its possession and use.‍ (propriétaire)
persistent oil means an oil, or an oil of a class of oils, set out in the schedule. (hydrocarbure persistant)
vessel has the same meaning as in section 2 of the Canada Shipping Act, 2001. (bâtiment)
Application
Binding on Her Majesty
3(1)Subject to subsection (2), this Act is binding on Her Majesty in right of Canada or a province.
Exclusion
(2)This Act does not apply to vessels under the direction or control of the Minister of National Defence.
Prohibitions
Mooring or anchoring at port, etc.
4(1)It is prohibited for an oil tanker that is carrying crude oil or persistent oil, or any combination of the two, in an amount greater than 12500 metric tons, in bulk in its hold, to moor or anchor at a port or marine installation that is in Canada, on the coast of British Columbia, north of 50°5300′′ north latitude and west of 126°3836′′ west longitude.
Unloading
(2)It is prohibited for an oil tanker that is carrying crude oil or persistent oil, or any combination of the two, in an amount greater than 12500 metric tons, in bulk in its hold, to unload any of that oil at a port that is within the area described in subsection (1) or to a marine installation that is within that area.
Loading
(3)It is prohibited for an oil tanker to load into its hold any crude oil or persistent oil that is at a port or marine installation that is within the area described in subsection (1) if, when the loading is about to begin, the oil tanker is carrying crude oil or persistent oil, or any combination of the two, in an amount greater than 12500 metric tons, in bulk in its hold, or if loading it would result in the oil tanker carrying, at any time, crude oil or persistent oil, or any combination of the two, in bulk in its hold, in an amount greater than 12500 metric tons.
Transport to port, etc.
(4)It is prohibited for any person or any vessel to transport, by water, any crude oil or persistent oil — that an oil tanker is carrying in its hold — from the oil tanker to a port or marine installation that is within the area described in subsection (1) for the purpose of aiding the oil tanker to circumvent the prohibition in subsection (2).
Transport from port, etc.
(5)It is prohibited for any person or any vessel to transport, by water, any crude oil or persistent oil from a port or marine installation that is within the area described in subsection (1) to an oil tanker for the purpose of aiding the oil tanker to circumvent the prohibition in subsection (3).
Exception
5(1)Subsection 4(1) does not apply to an oil tanker that moors or anchors at a port or marine installation
(a)to ensure the safety of the oil tanker;
(b)to render assistance to a vessel in distress or if necessary after rendering that assistance; or
(c)to obtain emergency medical assistance for any person on board the oil tanker.
Exception — Canada Shipping Act, 2001
(2)Section 4 does not apply to a vessel in respect of an activity carried out by the vessel in order to comply with a direction given under paragraph 180(1)‍(c) or 189(d) of the Canada Shipping Act, 2001.
Exemptions
Ministerial exemption
6(1)The Minister may, by order, exempt an identified oil tanker from the application of any of subsections 4(1) to (3) on any terms and for any period that he or she considers appropriate, if he or she is of the opinion that the exemption is essential for the purpose of community or industry resupply or is otherwise in the public interest.
Non-application of Statutory Instruments Act
(2)The Statutory Instruments Act does not apply to an order made under subsection (1).
Administration and Enforcement
Reporting Requirement
Pre-arrival information
7(1)The master of an oil tanker that is constructed or adapted to carry more than 12500 metric tons of oil in bulk in liquid form in its hold must report pre-arrival information to the Minister, in accordance with subsections (2) and (3), before the oil tanker moors or anchors at a port or marine installation that is within the area described in subsection 4(1).
Information to be reported
(2)The pre-arrival information that must be reported in respect of an oil tanker is the following:
(a)its name;
(b)its country of registry;
(c)its owner’s name;
(d)its operator’s name;
(e)its master’s name;
(f)the name of the port or the marine installation;
(g)the type and the amount of any oil that it is carrying in bulk in its hold; and
(h)the type and the amount of any oil to be unloaded from or loaded into its hold at the port or the marine installation.
Time of reporting
(3)The pre-arrival information must be reported
(a)at least 24 hours before the oil tanker moors or anchors at the port or the marine installation; or
(b)as soon as possible after the oil tanker departs from its last port of call, if there is less than 24 hours between the moment the oil tanker departs from that port and the moment the oil tanker is expected to moor or anchor at the port or the marine installation.
Change in pre-arrival information
(4)If there is any change in the pre-arrival information reported under this section, the master of the oil tanker must report the change to the Minister without delay.
Direction not to moor or anchor
8If the Minister has reasonable grounds to believe that the master of an oil tanker has failed to comply with subsection 7(1) or (4), the Minister may direct the oil tanker not to moor or anchor at a port or marine installation that is within the area described in subsection 4(1).
Designated Persons
Designation
9(1)The Minister may designate any person or member of a class of persons for the purposes of the administration and enforcement of this Act.
Certificate of designation
(2)The Minister must provide every designated person with a certificate of their designation.
Immunity
(3)A designated person is not personally liable for anything they do or omit to do in good faith under this Act.
Powers
Direction to provide information — oil tankers
10(1)A designated person may direct an oil tanker that is within the area described in subsection 4(1) to provide any information that the designated person reasonably requires for the purposes of this Act if they have reasonable grounds to believe that the oil tanker is or will be
(a)unloading any oil from its hold at a port that is within that area or to a marine installation that is within that area; or
(b)loading into its hold any oil that is at a port or marine installation that is within that area.
Direction to provide information — persons and vessels
(2)A designated person may direct a person or a vessel to provide any information that the designated person reasonably requires for the purposes of this Act if they have reasonable grounds to believe that the person or the vessel is or will be transporting, by water,
(a)from an oil tanker that is within the area described in subsection 4(1) to a port or marine installation that is within that area, any oil that the oil tanker is carrying in its hold; or
(b)from a port or marine installation that is within the area described in subsection 4(1) to an oil tanker that is within that area, any oil.
Authority to enter a place
11(1)A designated person may, for a purpose related to verifying compliance with this Act, enter
(a)any vessel that is at a port or marine installation that is within the area described in subsection 4(1), if the designated person has reasonable grounds to believe that the vessel is carrying oil as cargo;
(b)any marine installation that is within the area described in subsection 4(1), if the designated person has reasonable grounds to believe that oil is located there; and
(c)any other place, if the place is at a port that is within the area described in subsection 4(1) and the designated person has reasonable grounds to believe that there is, located in that place, oil that is to be loaded onto a vessel as cargo or oil that was unloaded from a vessel that was carrying it as cargo.
Living quarters
(2)A designated person is not permitted to enter living quarters without the occupant’s consent.
Powers on entry
(3)The designated person may, for the purpose referred to in subsection (1),
(a)examine anything in the place;
(b)use any means of communication in the place or cause it to be used;
(c)use any computer system in the place, or cause it to be used, to examine data contained in or available to it;
(d)prepare or cause to be prepared any record, in the form of a print-out or other intelligible output, from the data;
(e)use any copying equipment in the place or cause it to be used;
(f)conduct tests or analyses of anything in the place;
(g)take measurements or samples of anything in the place;
(h)take photographs or make recordings or sketches of anything in the place;
(i)remove anything from the place for the purpose of examination, testing or copying;
(j)direct any person to put anything in the place into operation or to cease operating it; and
(k)prohibit or limit access to all or part of the place or to anything in the place.
Entry on private property
(4)The designated person and any person accompanying them may enter private property – other than a dwelling-house – and pass through it in order to gain entry to the place. For greater certainty, they are not liable for doing so.
Stoppage or relocation
(5)A designated person may, for the purpose of entering a vessel that is at a port or marine installation that is within the area described in subsection 4(1), direct the master
(a)to stop the vessel or proceed to the place that the designated person may select, and to moor or anchor or remain there; or
(b)to not move the vessel.
General
Duty to assist
12The owner, the operator, the master and any agent or charterer of a vessel that is entered under subsection 11(1) and the owner and the operator of a marine installation or any other place that is entered under that subsection, as well as every person who is found there, must give a designated person who is carrying out powers or functions under section 11 all reasonable assistance and provide them with any information that they may reasonably require.
Disposition of samples
13(1)A designated person who takes a sample under paragraph 11(3)‍(g) may dispose of it in any manner that they consider appropriate or may submit it for analysis or examination to any person the Minister considers appropriate.
Certificate or report
(2)A person who has made an analysis or examination may issue a certificate or report that sets out the results of the analysis or examination.
Certificate or report admissible in evidence
(3)Subject to subsections (4) and (5), the certificate or the report is admissible in evidence in any prosecution for an offence under this Act and, in the absence of any evidence to the contrary, is proof of the statements contained in it without proof of the signature or official character of the person appearing to have signed it.
Attendance of person
(4)The party against whom the certificate or the report is produced may, with leave of the court, require for the purposes of cross-examination the attendance of the person who issued it.
Notice
(5)The certificate or the report may be admitted in evidence only if the party who intends to produce it has given to the party against whom it is intended to be produced reasonable notice of that intention, together with a copy of the certificate or the report.
Return of anything removed
14Anything removed under paragraph 11(3)‍(i) must be returned as soon as feasible after it is no longer required for the purpose for which it was taken.
Obstruction
15It is prohibited for a person to knowingly give false or misleading information either orally or in writing to, or otherwise obstruct or hinder, a designated person who is carrying out powers or functions under this Act.
Interference
16Unless authorized by a designated person, it is prohibited for a person to remove, alter or interfere in any way with a sample taken under paragraph 11(3)‍(g) or anything removed under paragraph 11(3)‍(i).
Detention of Vessels
Detention order
17(1)A designated person may order the detention of a vessel if they have reasonable grounds to believe that the vessel has committed an offence under this Act.
Order in writing
(2)A detention order must be in writing and be addressed to every person empowered to grant clearance to the vessel.
Notice of detention order
(3)Notice of a detention order must be served on the master of the vessel
(a)by delivering a copy of the notice personally to the master; or
(b)if service cannot reasonably be effected in the manner provided in paragraph (a), by leaving a copy of the notice with the person who is, or appears to be, in charge of the vessel or, if there is no such person, by fixing a copy of the notice to a prominent part of the vessel.
Movement of vessel prohibited
(4)Subject to section 19, it is prohibited for a person to move a vessel that is subject to a detention order.
Granting clearance prohibited
(5)Subject to subsection (6), it is prohibited for a person to whom a detention order is addressed, after they have received notice of the order, to grant clearance to the vessel that is subject to the order.
Granting clearance
(6)A person to whom a detention order is addressed who has received notice of the order must grant clearance to the vessel that is subject to the order if
(a)security in an amount and a form satisfactory to the Minister is given to Her Majesty in right of Canada;
(b)the vessel has not been charged with an offence under this Act within 30 days after the day on which the order was made; or
(c)the vessel has been charged with an offence under this Act within 30 days after the day on which the order was made and
(i)security in a form satisfactory to the Minister for payment of the maximum fine that might be imposed for that offence, or payment of any lesser amount that is satisfactory to the Minister, is given to Her Majesty in right of Canada, or
(ii)proceedings in respect of that offence are discontinued.
Notification of foreign state
(7)If the vessel that is subject to a detention order is registered in a foreign state, that state is to be notified that the order was made.
Liability for expenses
(8)The authorized representative of a vessel that is subject to a detention order or, if there is no authorized representative, the vessel’s owner is liable for all expenses incurred in respect of the detention.
Interference with service of notice
18It is prohibited for a person to intentionally interfere with the service of a notice of a detention order.
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.
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
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.
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.
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.
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.
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.
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).
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.
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.
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).
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.
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.
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
Regulations
24The Governor in Council may, by regulation, amend the schedule by adding or deleting any oil or class of oils.
Offences and Punishment
Contravention of section 4
25Every 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.
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.
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.
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.
Proof of offence by vessel
27In a prosecution of a vessel for an offence under section 25, it is sufficient proof that the vessel has committed the offence to establish that the act that constitutes the offence was committed by the master or any person on board, whether or not the person on board has been identified.
Liability of owners, operators, etc.
28(1)If a vessel commits an offence under section 25 and the owner, the operator, the master, an employee or an agent of the vessel directed, authorized, assented to, acquiesced in or participated in the commission of the offence, the owner, the operator, the master, the employee or the agent, as the case may be, is a party to and guilty of the offence and liable on conviction to the punishment provided for under that section for the offence, whether or not the vessel has been prosecuted or convicted.
Liability of directors and officers
(2)If a vessel commits an offence under section 25, every director or officer of a corporation that is an owner or an operator of the vessel who directed or influenced the corporation’s policies or activities in respect of the conduct that is the subject matter of the offence is a party to and guilty of the offence and liable on conviction to the punishment provided for under that section for the offence, whether or not the vessel has been prosecuted or convicted.
Directions deemed given to vessel
29For the purpose of prosecuting a vessel for contravening a direction given under this Act, a direction given to the master, a crew member or any person on board who is, or appears to be, in charge of the vessel is deemed to have been given to the vessel.
Due diligence — persons
30(1)A person must not be convicted of an offence under section 25, paragraph 26(1)‍(a), (b), (d) or (e) or subsection 26(2) if they establish that they exercised due diligence to prevent its commission.
Due diligence — vessels
(2)A vessel must not be convicted of an offence under section 25 or subsection 26(2) if the person who committed the act or omission that constitutes the offence establishes that they exercised due diligence to prevent its commission.
Summary Conviction Proceedings
Limitation period
31(1)Proceedings by way of summary conviction under this Act may be instituted within two years after the day on which the Minister becomes aware of the subject matter of the proceedings.
Certificate of Minister
(2)A document that purports to have been issued by the Minister and that certifies the day on which the Minister became aware of the subject matter of the proceedings is admissible in evidence without proof of the signature or official character of the person appearing to have signed it and, in the absence of any evidence to the contrary, is evidence that the Minister became aware of the subject matter on that day.
Defendant outside Canada
(3)If the proceedings cannot be commenced within two years because the proposed defendant is outside Canada, the proceedings may be commenced not later than 60 days after the day on which they arrive in Canada.


SCHEDULE
(Sections 2 and 24)
LIST OF PERSISTENT OILS
Item
Persistent Oils
1
No. 4 fuel oils
2
No. 5 fuel oils
3
No. 6 fuel oils, including marine diesel oil and bunker C fuel oil
4
Synthetic crude oils
5
Slack wax
6
Lubricating oils
7
Partially upgraded bitumen
8
Gas oils obtained by vacuum distillation
9
Vacuum residue
10
Heavy blended fuel oils
11
Feedstock oil for cracking processes
12
Bituminous and fuel oil emulsions
13
Petroleum pitch
14
Condensate, if less than 50% of it, by volume, distills at a temperature of 340°C and if less than 95% of it, by volume, distills at a temperature of 370°C, when tested in accordance with the American Society for Testing and Materials ASTM D86 method entitled Standard Test Method for Distillation of Petroleum Products and Liquid Fuels at Atmospheric Pressure, as amended from time to time

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