Controlling the quality of gas flowing into PIA pipelines
6 Controlling the quality of gas flowing into PIA pipelines
A gas producer must not supply gas that will flow into a PIA pipeline if the gas is of a quality that does not comply with the reference specification for the pipeline unless —
the gas producer and the operator of the pipeline are parties to an agreement (a pipeline impact agreement) in respect of the supply, that complies with the minimum requirements set out in section 7 in relation to the supply; and
the gas complies with the gas quality specification set out in the pipeline impact agreement in relation to the supply; and
the quantity of gas supplied does not exceed the maximum quantity set out in the pipeline impact agreement in relation to the supply; and
regulations, under section 14(2)(a), modifying contracts that relate to gas transported through the pipeline have come into effect.
A pipeline impact agreement that is entered into, or an amendment of a pipeline impact agreement, does not have effect for the purposes of subsection (1)(b) and (c) for the 18 months immediately following the entering into of the agreement or the amendment.
If a gas producer supplies gas that will flow into a PIA pipeline at an inlet point and the gas producer fails to comply with subsection (1), the operator of the pipeline may —
reduce the flow (including to zero) in accordance with the regulations; and
whether or not the flow of gas is reduced under paragraph (a) — reduce the allocation (including to zero) of gas flowing into the pipeline at the inlet point to users of the pipeline, in accordance with the regulations.
The operator of a PIA pipeline may, under section 12, apply to the Supreme Court for an injunction against a gas producer who has engaged, is engaging or is proposing to engage in conduct that constitutes a failure to comply with subsection (1).
The operator of a PIA pipeline may take an action under subsection (3) or (4), or both, despite any relevant pipeline services agreement.
Subsections (3) and (4) are in addition to any other rights a person may have in relation to a failure to comply with subsection (1).
The Minister may, in a particular case, allow a shorter period for the purposes of subsection (2) if satisfied that allowing a shorter period will not adversely affect, in a material way, operators of PIA pipelines, operators of other gas transmission pipelines, operators of gas storage facilities, operators of gas distribution systems or gas consumers.
The Criminal Code section 177 does not apply to the obligation in subsection (1).
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