Vol. 134, No. 45 — November 4, 2000

Regulations Amending the Reportable Diseases Regulations

Statutory Authority

Health of Animals Act

Sponsoring Agency

Canadian Food Inspection Agency

REGULATORY IMPACT ANALYSIS STATEMENT

Description

The purpose of the Health of Animals Act (the Act) is to prevent the introduction of animal diseases into Canada and to control and eliminate diseases in Canada that either affect human health or could have a significant economic effect on the Canadian livestock industry, and to provide for the humane treatment of animals during transport.

These proposed Regulations amend the schedule known as the Reportable Diseases Regulations (the Regulations) made under section 2 of the Health of Animals Act. Subsections 5(1) and (2) of the Health of Animals Act require owners or others caring for animals, veterinarians and laboratories to report to a veterinary inspector of the Canadian Food Inspection Agency (CFIA) when one of the diseases is suspected. Making a disease reportable imposes prohibitions upon selling or moving animals or their products the producer knows are affected by the disease. CFIA reacts by taking action to either control (prevent the spread) or eradicate (eliminate from Canada) the disease based upon a program agreed to by all stakeholders.

It should be noted that the Health of Animals Act allows actions to be taken to control or eradicate an animal disease whether it is named as a reportable disease or not. However, naming a disease on the reportable list infers that the CFIA will take action once that disease is reported.

The list of reportable diseases has remained static for a number of years. One of the action items requested by industry at the 1997 Canadian Animal Health Consultative Committee Meeting was a review of the current list of reportable diseases. Some of the reasons given at the time were:

— a need to reflect current thinking and scientific progress;

— the list contained diseases for which there are no active regulatory control programs;

— the Office International des Epizooties (OIE), which is the world regulatory body for disease control in animals, requires member countries like Canada to have legislation to ensure diseases are reported;

— the current list omitted some OIE List A diseases;

— a changing disease status and requirements for reporting by country under the World Trade Organization (WTO) led to a

— need to expand the present list to include diseases reported for disease surveillance; and

— the OIE is reviewing its criteria for establishing its present disease list.

After consultation with the various stakeholders, it was agreed that the optimum solution was to update the reportable diseases list to include all diseases for which CFIA has agreed to a control or eradication program whether or not the diseases are present in Canada.

The remaining diseases will be included in separate "Notifiable Diseases" Regulations. These will include the diseases for which no program exists and for which information is being gathered primarily to meet Canada's international obligation for surveillance of disease in livestock and other animals. Under the provisions of paragraph 64(1)(m) of the Act, the Governor in Council may make Regulations causing or requiring notice to be given of the appearance of any disease or toxic substance among animals. CFIA does not have any obligation or commitment to take action when told of diseases listed as notifiable.

A regulation is currently being prepared to be included in the Health of Animals Regulations which will satisfy the requirement for the "surveillance" diseases (notifiable) and only laboratories would be required to report them. Since this regulation has a different approval process, it will be prepublished separately.

The major changes proposed to the current list of reportable diseases are as follows:

1. Sheep scab and mange are removed from the list as there is now an effective, economical treatment available;

2. Swine vesicular exanthema is removed because it is not believed to be present in swine anywhere in the world;

3. Dourine and glanders are removed as they are not OIE list A diseases. They are unlikely to enter Canada since most countries with which Canada trades are free of these diseases;

4. The names of two avian diseases are changed to correspond to normal use: avian influenza is now referred to as highly pathogenic svian influenza and avian pneumoencephalitis (Newcastle disease) becomes simply Newcastle disease;

5. African horse sickness, contagious bovine pleuropneumonia, lumpy skin disease, peste des petits ruminants, Rift Valley fever, sheep and goat pox and Venezuelan equine encephalomyelitis are added to the list. These are OIE List A diseases which were missing from the previous reportable list; and

6. Chronic wasting disease (CWD) in deer and elk is added to the list. CWD is a transmissible spongiform encephalopathy similar to but not the same as scrapie in sheep and bovine spongiform encephalopathy (BSE) in cattle. Because of its similarity to BSE, there has been concern in recent years about the need to control CWD. The World Health Organization has stated that all countries in which CWD has occurred should implement surveillance and control measures. Discussions are currently being held to develop the contents of that CWD control or eradication program. Inclusion of CWD on the reportable list provides more effect surveillance and control, regardless of whether quarantine or slaughter approaches are selected.

Alternatives

Option 1 — Maintain the Current Regulations

This is not acceptable to the industry as a whole given the reasons stated above, nor would it allow Canada to meet its international treaty obligations under the WTO.

Option 2 — Enhance the Status Quo

The list of 32 CFIA reportable diseases is modified to remove diseases which are no longer a program concern and to add the OIE List A diseases not included in the current list. This option is not acceptable because it would not meet Canada's international obligations to collect statistics, on an annual basis, of diseases which are not felt to be as economically significant as List A diseases. Nor would it require the immediate notification of the emerging diseases which pose a significant risk to human or animal health and which might be subject to controls if they ever entered Canada.

Option 3 — Update Reportable Disease List and Develop Separate Regulations for the Surveillance Diseases — Preferred Option

This option updates the current reportable disease list to include all OIE List A diseases and the diseases for which there are existing disease control programs (described in this Regulatory Impact Analysis Statement). A list of "notifiable diseases" which will meet Canada's international obligations to report diseases of less economic significance will be prepublished separately since they have a different approval process. As mentioned, only laboratories would be required to report the notifiable diseases. This option would provide for maximum animal disease surveillance while not changing significantly the established reportable disease process with which stakeholders have become familiar.

Benefits and Costs

Benefits

This third option is the one recommended since it best addresses the diseases most important for disease control at this time and because it meets Canada's international treaty obligations. It will also stimulate a greater awareness of diseases considered important by industry, provincial groups and accredited, private veterinary practitioners and provincial, accredited and federal laboratories.

Costs

These proposed Regulations will not change the normal diagnostic and surveillance activities currently carried out by the provincial and federal laboratories. Most of the laboratory work for the diseases added to the reportable list will be absorbed by the CFIA laboratory system because the diseases are rarely reported. The direct cost of any training and publicity, to make those responsible for reporting the diseases aware of the responsibility, would be fairly insignificant and is expected to be outweighed by the increased international confidence in our disease reporting system.

Based on Treasury Board's definition of "major" or "significant" regulatory amendments, this is not considered significant and, therefore, a full benefit-cost analysis is not warranted.

Consultation

Following an initial consultative meeting of key industry players in December 1997, a working group comprised of CFIA officers and industry representatives was formed to develop criteria to differentiate diseases into "reportable" and "notifiable" categories. All diseases were considered at first, allocated to the two categories of diseases, and a consultative document produced. This document was used for consultation with CFIA staff and provincial, industry, association and university representatives. Comments received from this cross-country consultation were used to redraft the consultative document. A presentation was then made to veterinarians attending the Regulatory Section of the Canadian Veterinary Medical Association Meeting in July 1999.

The working group reworked the document and regrouped the diseases into the present regulatory listing following a meeting with the Canadian Chicken Marketing Agency, the Canadian Turkey Marketing Agency and the Chicken Farmers of Canada. All groups were consulted at the Canadian Animal Health Consultative Committee Meeting in December 1999, and over 140 stakeholders were consulted by mail. The proposed list of reportable diseases was accepted by all stakeholders including the provincial governments and their laboratories.

Compliance and Enforcement

The proposed Regulations will not change the normal diagnostic and surveillance activities currently carried out by the provincial and federal agency laboratories. Failure to report a reportable disease is an offence under section 65 of the Health of Animals Act punishable on conviction by a fine not to exceed $50,000 and could result in loss of any compensation for animals or things destroyed under the Act.

Contact

Director, Animal Health Division, Canadian Food Inspection Agency, 59 Camelot Drive, Nepean, Ontario K1A 0Y9, (613) 225-2342, extension 4601 (Telephone), (613) 228-6631 (Facsimile).

PROPOSED REGULATORY TEXT

Notice is hereby given that the Minister of Agriculture and Agri-Food, pursuant to section 2 (see footnote a) of the Health of Animals Act, proposes to make the annexed Regulations Amending the Reportable Diseases Regulations.

Any interested person may make representations concerning the proposed amendments within 30 days after the date of publication of this notice. All such representations must be addressed to Dr. Claude Lavigne, Animal Health and Production Division, Canadian Food Inspection Agency, 59 Camelot Drive, Nepean, Ontario K1A 0Y9, 613-225-2342 ext. 4641 (Telephone), 613-228-6631 (Facsimile) and cite Canada Gazette Part I and the date of this notice.

LYLE VANCLIEF
Minister of Agriculture and Agri-Food

REGULATIONS AMENDING THE REPORTABLE DISEASES REGULATIONS

AMENDMENT

1. The schedule to the Reportable Diseases Regulations (see footnote 1) is replaced by the following:

SCHEDULE
(Section 2)

REPORTABLE DISEASES

Item	Disease
1.	African horse sickness
2.	African swine fever
3.	anaplasmosis
4.	anthrax
5.	bluetongue
6.	bovine spongiform encephalopathy
7.	bovine tuberculosis (M. bovis)
8.	brucellosis
9.	chronic wasting disease of cervids
10.	contagious bovine pleuropneumonia
11.	contagious equine metritis
12.	cysticercosis
13.	equine infectious anaemia
14.	equine piroplasmosis (B. equi and B. caballi)
15.	foot and mouth disease (FMD)
16.	fowl typhoid (Salmonella gallinarum)
17.	highly pathogenic avian influenza
18.	hog cholera (classical swine fever)
19.	lumpy skin disease
20.	Newcastle disease
21.	peste des petits ruminants
22.	pseudorabies (Aujeszky's disease)
23.	pullorum disease (S. pullorum)
24.	rabies
25.	Rift Valley fever
26.	rinderpest
27.	scrapie
28.	sheep and goat pox
29.	swine vesicular disease
30.	trichinellosis
31.	Venezuelan equine encephalomyelitis
32.	vesicular stomatitis

COMING INTO FORCE

2. These Regulations come into force on the day on which they are registered.

[45-1-o]

Regulations Amending the Air Transportation Regulations

Statutory Authority

Canada Transportation Act

Sponsoring Agency

Canadian Transportation Agency

REGULATORY IMPACT ANALYSIS STATEMENT

Description

On July 5, 2000, some of the provisions of the Canada Transportation Act (the Act) were modified and a number of new provisions were added. In order to implement these changes, the Canadian Transportation Agency (the Agency) proposes to amend the Air Transportation Regulations (the Regulations) in order to make the Regulations consistent with the amendments to the Act.

For example, a new subsection 64(1.1) has been added to the Act which requires air carriers to give 120 days notice before discontinuing year-round non-stop scheduled air services between two points in Canada where the proposed discontinuance of service will result in a significant reduction of weekly passenger-carrying capacity between those two points. Subsection 14(1) and Schedule III of the Regulations are therefore being amended to reflect this change to the Act.

Further, a new subparagraph 86(1)(h)(iii) has been added to the Act which gives the Agency the power to make certain regulations in respect of corrective measures to be taken and compensation to be paid should an air carrier fail to respect its tariff applicable to international air services. Those regulations are contained in section 113.1 of the Regulations.

In addition, section 107.1 has been added to the Regulations in order to prescribe the manner in which interest is to be calculated where the Agency orders a carrier to refund persons who were overcharged in accordance with paragraph 66(1)(c) of the Act.

Alternatives

Maintaining the status quo is undesirable in light of the modifications to the Act.

Benefits and Costs

The amendments are of a relatively routine nature in light of the modifications to the Act. Therefore, it is expected that the amendments will have no significant impact on the costs to air carriers or on Canadian society generally.

The environmental implications of this regulatory initiative have been considered and determined to be nil.

Consultation

Given the recent significant consultation as well as the publicity surrounding the recent amendments to the Act, additional informal and formal consultation is not considered warranted.

Compliance and Enforcement

The Agency is conscious of the importance of effective enforcement and will ensure that the proposed amendments to the Regulations are complied with. In addition, the Canadian Transportation Agency Designated Provisions Regulations establish a scheme of penalties for non-compliance with the Regulations.

Contact

Shelley Appleby-Ostroff, Counsel, Legal Services Directorate, Canadian Transportation Agency, Ottawa, Ontario K1A 0N9, (819) 953-0788 (Telephone), (819) 953-9269 (Facsimile), shelley.appleby_ostroff@cta-otc.x400.gc.ca, (Electronic mail) www.cta-otc.gc.ca (Internet Address).

PROPOSED REGULATORY TEXT

Notice is hereby given that the Canadian Transportation Agency, pursuant to section 86 (see footnote b) of the Canada Transportation Act (see footnote c), proposes to make the annexed Regulations Amending the Air Transportation Regulations.

Interested persons may make representations with respect to the proposed Regulations within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Shelley Appleby-Ostroff, Counsel, Legal Services Directorate, Canadian Transportation Agency, Ottawa, Ontario K1A 0N9. (Tel.: (819) 953-0788; Fax: (819) 953-9269; E-mail: shelley.appleby_ostroff@cta-otc.x400.gc.ca)

Hull, September 18, 2000

CANADIAN TRANSPORTATION AGENCY
MARIE-PAULE SCOTT, Q.C.
Secretary

REGULATIONS AMENDING THE AIR TRANSPORTATION REGULATIONS

AMENDMENTS

1. The heading before section 14 of the Air Transportation Regulations (see footnote 2) is replaced by the following:

Reduction or Discontinuance of Domestic Services

2. (1) The portion of subsection 14(1) (see footnote 3) of the Regulations before paragraph (b) is replaced by the following:

14. (1) For the purposes of subsection 64(1) of the Act, a licensee proposing to discontinue or to reduce the frequency of a domestic service to a point to less than one flight per week, where, as a result of the proposed discontinuance or reduction, there will be only one licensee or no licensee offering at least one flight per week to that point, shall give notice of the proposal

(a) to the Agency, to the Minister and to the minister responsible for transportation in the province or territory where the area to be affected is located, by sending them a notice in the form set out in Schedule III; and

(2) Subsection 14(2) of the Regulations is replaced by the following:

(1.1) For the purposes of subsection 64(1.1) of the Act, a licensee proposing to discontinue a year-round non-stop scheduled air service between two points in Canada, where the proposed discontinuance would result in a reduction, as compared to the week before the proposal is to take effect, of at least 50 percent of the weekly passenger-carrying capacity of all licensees operating year-round non-stop scheduled air services between those two points, shall give notice of the proposal to the persons, and in the manner, referred to in paragraphs (1)(a) and (b).

(2) The date of the notice referred to in paragraph (1)(b) shall be the same as the date on which the notice appears in the newspaper.

3. The Regulations are amended by adding the following after section 107:

Interest

107.1 Where the Agency, by order, directs an air carrier to refund specified amounts to persons that have been overcharged by the air carrier for fares or rates in respect of its air service pursuant to paragraph 66(1)(c) of the Act, the amount of the refunds shall bear interest from the date of payment of the fares or rates by those persons to the air carrier to the date of the Agency's order at the rate of interest charged by the Bank of Canada on short-term loans to financial institutions plus one and one-half percent.

4. The Regulations are amended by adding the following after section 113:

113.1 Where a licensee fails to apply the fares, rates, charges, terms or conditions of carriage applicable to the international service it offers that were set out in its tariffs, the Agency may

(a) direct the licensee to take corrective measures that the Agency considers appropriate; and

(b) direct the licensee to pay compensation for any expense incurred by a person adversely affected by the licensee's failure to apply the fares, rates, charges, terms or conditions of carriage applicable to the international service it offers that were set out in its tariffs.

5. Schedule III to the Regulations is replaced by the following:

SCHEDULE III
(Section 14)

PUBLIC NOTICE

DISCONTINUANCE OR REDUCTION OF A DOMESTIC SERVICE

On this __________ day of ________, 20___, notice is hereby given that ___________________ (name and address of licensee) proposes to

(a) discontinue its domestic service authorized by Licence No. __________ and provided at __________;

(b) discontinue its year-round non-stop scheduled air service authorized by Licence No. __________ between _________ and __________________; or

(c) reduce the frequency of its domestic service authorized by Licence No. __________ and provided at _______ to less than one flight per week,

commencing __________ days after the date of this notice.

COMING INTO FORCE

6. These Regulations come into force on the day on which they are registered.

[45-1-o]

Regulations Amending the Canadian Transportation Agency Designated Provisions Regulations

Statutory Authority

Canada Transportation Act

Sponsoring Agency

Canadian Transportation Agency

REGULATORY IMPACT ANALYSIS STATEMENT

Description

The Canadian Transportation Agency Designated Provisions Regulations (DPRs) came into force on June 11, 1999. The DPRs list all provisions of the Canada Transportation Act (CTA) and its related regulations that may be subject to an administrative monetary penalty (AMP) and their maximum penalties. Following the promulgation of the DPRs, there has been a significant restructuring of the air industry. As part of that restructuring, some of the provisions of the CTA were modified and a number of new provisions were added on July 5, 2000. For example, sections 66 and 67 of the CTA have been modified substantially to expand the Canadian Transportation Agency's (the Agency) jurisdiction over passenger fares, cargo rates and terms and conditions of carriage applicable to air transportation within Canada. A new subsection 64(1.1) has also been added to the CTA which requires air carriers to give 120 days notice before discontinuing year-round non-stop scheduled air services between two points in Canada where the proposed discontinuance of service will result in a significant reduction of weekly passenger-carrying capacity between those two points.

Pursuant to section 177 of the CTA, the Agency may designate any provision of the CTA or any regulation, order or direction made pursuant to the CTA as a provision that may be subject to an AMP.

The Agency proposes to designate certain provisions of the amended CTA (including certain Agency orders made pursuant to the amended CTA), in order to encourage voluntary compliance with the new and amended provisions and permit the Agency to impose monetary penalties, not exceeding $5,000 for an individual and $25,000 for a corporation, for the contravention of any designated provision. It is also proposed to correct an oversight in the initial drafting of the DPRs by designating remedial orders made by the Agency in respect of undue obstacle determinations.

Alternatives

Maintaining the status quo is undesirable because some of the provisions of the CTA, which were designated under the DPRs have now been repealed and there are a number of new provisions of the CTA which were not previously designated under the DPRs.

Benefits and Costs

Anticipated Impact

It is expected that these amendments will have a relatively minor impact on Canadian society generally. The amendments are expected to motivate voluntary compliance and, by providing a sanction more proportionate and appropriate to the violation, assist in the enforcement of compliance with the new provisions of the CTA which will subsequently increase consumer protection and maintain the integrity of the regulatory framework.

Economic Costs and Benefits

The proposed amendments impose no additional regulatory burden and no additional costs on carriers or terminal operators except where they are not in compliance with the designated provisions of the CTA, in which case they would be subject to an AMP.

Monies collected from administrative monetary penalties will not benefit the Agency. All money collected will be deposited into the federal government's consolidated revenue fund. This fund is the general pool of all income of the federal government, such as tax, tariff, and licence fee income.

Consultation

Early notice of the DPRs, which came into force on June 11, 1999, was provided through the 1997 Federal Regulatory Plan. Subsequently, on two occasions, requests for comments regarding the proposed Regulations and a proposed enforcement manual were distributed to approximately 2 000 interested parties. This informal consultation preceded pre-publication of the proposed Regulations in the Canada Gazette Part I, on March 27, 1999. The notice of pre-publication was also posted on the Agency's Web site and mailed to all licensees and other interested parties. As a consequence interested parties were fully apprised of the aims and objectives of the Regulations. The proposed amendments to the schedule of the DPRs are being made now to reflect the amendments made to the CTA. Given the significant recent consultation as well as the publicity surrounding the amendments to the CTA, additional informal and formal consultation is not considered warranted.

Compliance and Enforcement

A compliance strategy for these amendments to the schedule of the Regulations is not required since the Regulations establish a scheme of penalties for non-compliance with the CTA.

Contact

Dennis C. Rennick, Manager, Enforcement, Air and Accessible Transportation Branch, Canadian Transportation Agency, Ottawa, Ontario K1A 0N9, (819) 953-9786 (Telephone), (819) 994-0289 (Facsimile), Dennis.Rennick@cta-otc.x400.gc.ca (Electronic mail).

PROPOSED REGULATORY TEXT

Notice is hereby given that the Canadian Transportation Agency, pursuant to section 177 of the Canada Transportation Act (see footnote d), proposes to make the annexed Regulations Amending the Canadian Transportation Agency Designated Provisions Regulations.

Interested persons may make representations with respect to the proposed Regulations within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Dennis C. Rennick, Manager, Enforcement, Air and Accessible Transportation Branch, Canadian Transportation Agency, Ottawa, Ontario K1A 0N9. (Tel.: (819) 953-9786; Fax: (819) 994-0289; E-mail: Dennis.Rennick@cta-otc.x400.gc.ca)

Hull, September 26, 2000

CANADIAN TRANSPORTATION AGENCY
MARIE-PAULE SCOTT, Q.C.
Secretary

REGULATIONS AMENDING THE CANADIAN TRANSPORTATION AGENCY DESIGNATED PROVISIONS REGULATIONS

AMENDMENT

1. Items 1 to 14 of the schedule to the Canadian Transportation Agency Designated Provisions Regulations (see footnote 4) are replaced by the following:

Item	Column 1 Designated Provision	Column 2 Maximum Amount of Penalty —Corporation ($)	Column 3 Maximum Amount of Penalty —Individual ($)
1.	Section 57	25,000	5,000
2.	Section 59	25,000	5,000
2.1	Subsection 64(1)	10,000	2,000
2.2	Subsection 64(1.1)	10,000	2,000
3.	Subsection 64(2)	25,000	5,000
3.1	Paragraph 66(1)(a)	25,000	5,000
3.2	Paragraph 66(1)(b)	25,000	5,000
3.3	Paragraph 66(1)(c)	25,000	5,000
3.4	Subsection 66(2)	25,000	5,000
3.5	Paragraph 66(7)(a)	10,000	2,000
3.6	Paragraph 66(7)(b)	10,000	2,000
3.7	Subsection 66(8)	25,000	5,000
4.	Paragraph 67(1)(a)	10,000	2,000
5.	Paragraph 67(1)(c)	5,000	1,000
6.	Subsection 67(2)	5,000	1,000
7.	Subsection 67(3)	10,000	2,000
8.	Subsection 67(4)	5,000	1,000
8.1	Paragraph 67.1(a)	25,000	5,000
8.2	Paragraph 67.1(b)	25,000	5,000
8.3	Paragraph 67.1(c)	25,000	5,000
8.4	Subsection 67.2(2)	25,000	5,000
9.	Subsection 68(2)	25,000	5,000
9.1	Subsection 68(3)	10,000	2,000
10.	Subsection 71(2)	25,000	5,000
11.	Subsection 74(2)	25,000	5,000
12.	Section 82	25,000	5,000
13.	Section 83	10,000	2,000
13.1	Subsection 172(3)	25,000	5,000
14.	Subsection 178(5)	5,000	1,000

COMING INTO FORCE

2. These Regulations come into force on the day on which they are registered.

[45-1-o]

Rules Amending the National Energy Board Rules of Practice and Procedure, 1995

Statutory Authority

National Energy Board Act

Sponsoring Agency

National Energy Board

REGULATORY IMPACT ANALYSIS STATEMENT

Description

Pursuant to section 8 of the National Energy Board Act ("the Act"), the National Energy Board ("the Board") may make rules governing the practice and procedure of the Board in dealing with matters brought before it on application or complaint.

The Board has amended the National Energy Board Rules of Practice and Procedure, 1995 ("the Rules") to reflect recent experience with applications for a right of entry under section 104 of the Act. Section 104 provides the mechanism by which a pipeline company can obtain a legal interest in property against the wishes of a landowner in order to construct a pipeline. The recent experience of the Board has disclosed certain irregularities and anomalies between the Rules and the Act, as well as the common law.

The main problem in the relationship between the Rules and the Act is a conflict concerning the timing of the filing of a right of entry application. The Act requires that applications be submitted to the Board 30 to 60 days after a notice of the application is served upon a landowner, while the Rules stipulate that a pipeline company should submit its application to the Board forthwith after service of the notice upon a landowner.

A conflict appears between the Rules and the common law in that there is no provision of the Rules which requires the Applicant to serve the application for a right of entry order upon a landowner. Currently, only a notice is required to be served on a landowner by the Rules. It is considered by the Board that an affected landowner should receive a copy of all of the material submitted by a pipeline company to the Board. The absence of such a procedure may offend the common law principles of natural justice and procedural fairness.

Other deficiencies in the Rules which have been identified include the following:

— At present, a pipeline company is only obligated to provide the Board with proof that the notice was served on the landowner, rather than proof that the complete application was served by the company;

— There are no time limits for the filing of objections by the landowner to the application of the company;

— There are no time limits for the filing of a reply by the company to the objections of the landowner; and

— There is a requirement for a landowner to send their objection to the company by registered mail, which serves no useful purpose and may operate as a potential barrier to participation in the Board's process by a landowner.

The Board has proposed the following amendments to correct the legal problems identified with the existing Rules:

— Removal of the word "forthwith" in section 55, and its replacement by a direction to pipeline companies requiring them to file their applications for a right of entry order not less than 30 days, and not more than 60 days, following the service by the company of a notice on the landowner;

— Insertion of a requirement that the right of entry application be served on the landowner, including all of the material associated with the application. This amendment will honour the common law obligation of the Board to ensure that persons affected by an application have full knowledge of that application;

— Insertion of a requirement that the pipeline company provide proof that the entire right of entry application was served on the landowner. This provision will provide assurance to the Board that a landowner is aware of applications that are contrary to the landowner's interests;

— Insertion of a requirement that landowners must file their objections to the right of entry application within ten days after the date that the application is served on them. This provision provides the landowner with an opportunity to respond fully to the notice and to the application, while maintaining reasonable process efficiency, since landowners will have a cumulative total of 40 days following the service of a notice upon them by a pipeline company to express a view to the Board about the acquisition by a company of an interest in their lands;

— Insertion of a requirement that a pipeline company must file its reply to the landowner's objection within seven days after the date that the objection is served on the company by the landowner, and that the company must serve a copy of its reply on the landowner; and

— A minor amendment removing the obligation of a landowner to serve their objection by registered mail.

Alternatives

No other alternatives were considered. The amendments are required to bring the Rules into congruency with established legal principles concerning natural justice and procedural fairness.

Benefits and Costs

One consequence of these amendments may be to extend the processing of right of entry applications by approximately ten days. However, the current system is procedurally weak and may therefore be open to attack on legal grounds. The potential advantage of the slightly quicker processing cycle which now exists is outweighed by the possibility that a right of entry application could be successfully impugned, leading to much greater process delays.

There will be no impact on the resources of the Board devoted to these matters.

These amendments have no impact on the year 2000 computer issue.

Consultation

As noted above, the amendments are required to correct legal deficiencies and anomalies in the current version of the Rules. The proposed changes will be published in the Canada Gazette, Part I, and given wide distribution by the Board through its Internet Web site and Regulatory Agenda publication. Any comments from the public will be considered by the Board prior to taking any steps to promulgate the amendment to the Rules.

Compliance and Enforcement

Compliance and enforcement is conducted by the Board through quasi-judicial processes. No additional resources will be required for compliance and enforcement of these amendments.

Contact

Mr. Peter W. Noonan, Legal Services Unit, National Energy Board, 444 Seventh Avenue SW, Calgary, Alberta T2P 0X8, (403) 299-3552 (Telephone), (403) 292-5503 (Facsimile).

PROPOSED REGULATORY TEXT

Notice is hereby given that the National Energy Board, pursuant to paragraph 8(b) of the National Energy Board Act, proposes to make the annexed Rules Amending the National Energy Board Rules of Practice and Procedure, 1995.

Interested persons may make representations with respect to the proposed Rules within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Michel L. Mantha, Secretary of the National Energy Board, 444 Seventh Avenue SW, Calgary, Alberta, T2P 0X8, E-mail: mmantha@neb.gc.ca.

Calgary, October 19, 2000

MICHEL L. MANTHA
Secretary

RULES AMENDING THE NATIONAL ENERGY BOARD RULES OF PRACTICE AND PROCEDURE, 1995

AMENDMENTS

1. Sections 55 and 56 of the National Energy Board Rules of Practice and Procedure, 1995 (see footnote 5) are replaced by the following:

55. (1) To apply for a right of entry order under section 104 of the Act, a company shall, after serving the owner of the lands with the notice described in subsection 104(2) of the Act, file an application with the Board not less than 30 days and not more than 60 days after the date of service of the notice on the owner.

(2) The application must be served on the owner of the lands on the same day that the application is filed with the Board.

(3) The application must contain

(a) a copy of the notice described in subsection 104(2) of the Act;

(b) evidence that the notice has been served on the owner of the lands

(c) a schedule that is proposed to be made part of the order sought and that contains, in a form suitable for depositing, registering, recording or filing against lands in the land registry or land titles office in which land transactions affecting those lands may be deposited, registered, recorded or filed, a description of

(d) a current abstract of title to the lands, a certified copy of the certificate of title to the lands or a certified statement of rights registered in the land registers for the lands;

(e) a copy of section 56; and

(f) evidence that the application, including the information set out in paragraphs (a) to (e), has been served on the owner of the lands.

Written Objection

56. (1) An owner of lands for which a right of entry order is sought who wishes to object to the application shall file the objection with the Board no later than ten days after the date that the application is served on the owner by the company.

(2) Where an owner of lands files an objection in accordance with subsection (1), the owner shall, on the same day that the objection is filed with the Board, serve the objection on the company at the address shown in the notice served on the owner by the company.

(3) A company that receives an objection under subsection (2) shall file with the Board a reply to the objection, or a statement that it does not wish to respond to the objection, within seven days after the date that the objection is served on the company by the owner of the lands.

(4) Where a company files a reply to an objection, the company shall serve the reply on the owner of the lands on the same day that the reply is filed with the Board.

2. The schedule to the Rules is amended by replacing the reference to "19" wherever it occurs with a reference to "20".

COMING INTO FORCE

3. These Rules come in force on the day on which they are registered.

[45-1-o]

Footnote a

S.C. 1990, c. 21

Footnote 1

SOR/91-2

Footnote b

S.C. 2000, c. 15, s. 8

Footnote c

S.C. 1996, c. 10

Footnote 2

SOR/88-58

Footnote 3

SOR/96-335

Footnote d

S.C. 1996, c. 10

Footnote 4

SOR/99-244

Footnote 5

SOR/95-208

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