Petroleum Marketing Act

PETROLEUM MARKETING ACT Chapter P‑10 Table of Contents 1 Definitions 2 Alberta Petroleum Marketing Commission 3 Commission meetings 4 Offices 5 Bylaws 6 Officers and employees 6.1 Responsibility of directors and officers 6.2 Disclosure by directors and officers 6.3 Indemnification 7 Delegation 8 Commission as Crown agent 9 Fiscal year 9.1 Records and accounts 9.2 Information to the Commission 12 Financing 12.1 Investment 12.2 Directives 14 Definition 15 Dealing with Crown ’ s royalty share 16 Direction to provide goods and services 18 Discharge of lessee’s liability 19 Regulations 19.1 Regulations re provision of goods and services HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Alberta, enacts as follows: Definitions 1 In this Act, (a) “agreement” has the same meaning as in the Mines and Minerals Act ; (a.01) “board” means the board of directors established under section 2(1.2); (a.1) “Commission” means the Alberta Petroleum Marketing Commission; (b) “Department” means the Department administered by the Minister; (b.1) “goods” means goods specified in the regulations; (b.2) “hydrocarbon substance” means any substance that is composed primarily of one or more types of hydrocarbons, and includes any other substance specified as a hydrocarbon substance in the regulations; (b.3) “lessee” means the holder of an agreement according to the records of the Department; (c) “Minister” means the Minister determined under section 16 of the Government Organization Act as the Minister responsible for this Act; (d) “services” means services specified in the regulations; (e) “supplier” means a person specified in the regulations as a supplier. RSA 2000 cP‑10 s1;2009 c20 s9;2013 c16 s2 Alberta Petroleum Marketing Commission 2 (1) There is hereby created a corporation with the name “Alberta Petroleum Marketing Commission”. (1.1) The Commission has the capacity and, subject to this Act, the rights, powers and privileges of a natural person. (1.2) There shall be a board of directors of the Commission consisting of not more than 13 directors appointed by the Minister. (2) The Minister shall designate one of the directors as chair of the board. (3) The directors may be paid by the Commission their reasonable travelling and living expenses while absent from their ordinary place of residence and in the course of their duties as directors, in accordance with a resolution of the Commission. (4) The board shall manage or supervise the management of the business and affairs of the Commission. (5) Subject to the regulations, the board may delegate, on terms and conditions the board considers advisable, to any director or committee of the board any of the board’s powers, duties and functions, including a power to subdelegate, except (a) the power to make bylaws under section 5, and (b) any other power, duty or function prescribed in the regulations. RSA 2000 cP‑10 s2;2009 c20 s9;2013 c16 s3;2025 c8 s5 Commission meetings 3 At its meetings, the Commission may exercise any of its powers by resolution unless some other mode of exercising the power is prescribed in or under this or any other Act. RSA 2000 cP‑10 s3;2009 c20 s9;2013 c16 s4 Offices 4 The Commission may establish offices in any locations that it considers appropriate for the purpose of conducting its business and affairs. RSA 2000 cP‑10 s4;2009 c20 s9 Bylaws 5 (1) The board may make bylaws respecting the calling of meetings of the Commission and the conduct of business at them, the duties and conduct of directors and generally as to the conduct of the business and affairs of the Commission. (2) Repealed 2009 c20 s9. RSA 2000 cP‑10 s5;2009 c20 s9;2013 c16 s5 Officers and employees 6 (1) The Commission may appoint any officers and employees it considers necessary and prescribe their duties and their salaries or remuneration. (2) The Commission may engage the assistance of any persons it considers necessary for the purpose of conducting its business and affairs. (3) If the Commission appoints a chief executive officer, that individual shall not be a director. RSA 2000 cP‑10 s6;2009 c20 s9;2013 c16 s6 Responsibility of directors and officers 6.1 Every director and officer, in exercising powers and discharging duties, (a) shall act honestly and in good faith and with a view to the best interests of the Commission, and (b) shall exercise the care, diligence and skill that a reasonable and prudent person would exercise in comparable circumstances. 2013 c16 s7 Disclosure by directors and officers 6.2 Section 120 of the Business Corporations Act applies to the directors and officers of the Commission, and a reference in that section to a contract or transaction with a corporation includes both a contract or transaction with the Commission and a contract or transaction with the Crown. 2013 c16 s7 Indemnification 6.3 (1) Subject to the regulations, the Commission may in writing indemnify (a) a present or former director or officer of the Commission, (b) an individual who acts or acted at the Commission’s request as a director or officer, or an individual acting in a similar capacity, of another entity, whether incorporated or unincorporated, of which the Commission or the Crown is or was a direct or indirect security holder or creditor, (c) an employee or former employee of the Commission, and (d) the heirs and legal representatives of a person referred to in clause (a), (b) or (c), against costs, charges and expenses, including any amount paid to settle an action or satisfy a judgment, reasonably incurred by that person with respect to a civil, criminal or administrative action or proceeding to which that person is made a party by reason of holding such a position, if that person acted honestly, in good faith and with a view to the best interests of the Commission or of the other entity, as the case may be, and in the case of a criminal or administrative action or proceeding that is enforced by a monetary penalty, if that person had reasonable grounds for believing that the conduct was lawful. (2) Subject to the regulations, the Commission may provide an indemnity in writing that is ancillary and incidental to the business purpose of an agreement involving the Commission if that agreement is of a kind where no liability under the indemnity is likely, based on the historical experience of giving similar indemnities, to arise in the normal course of the performance of the agreement if the agreement is properly performed. (3) The Commission may, with the approval of the Lieutenant Governor in Council, provide indemnities in addition to those authorized by subsections (1) and (2). 2013 c16 s7 Delegation 7 Subject to the regulations, the Commission may in writing delegate any power, duty or function conferred or imposed on it by this Act or any other Act or any regulation or rules to any person. RSA 2000 cP‑10 s7;2012 cR‑17.3 s100;2013 c16 s8 Commission as Crown agent 8 (1) The Commission is for all purposes an agent of the Crown in right of Alberta and its powers may be exercised only as an agent of the Crown in right of Alberta. (2) An action or other legal proceeding in respect of any right or obligation acquired or incurred by the Commission on behalf of the Crown in right of Alberta, whether in its name or in the name of the Crown in right of Alberta, may be brought or taken by or against the Commission, in the name of the Commission, in any court that would have jurisdiction if the Commission were not an agent of the Crown. RSA 1980 cP‑5 s7 Fiscal year 9 The fiscal year of the Commission is the calendar year, unless otherwise prescribed by the Lieutenant Governor in Council. RSA 1980 cP‑5 s9 Records and accounts 9.1 The Commission shall prepare and retain records and accounts in accordance with the regulations as required by the Minister. 2013 c16 s9 Information to the Commission 9.2 (1) The Lieutenant Governor in Council may make regulations respecting the keeping of and the furnishing to the Commission of information that relates to hydrocarbon substances and that is required for the purposes of (a) evaluating, formulating or administering any policy or program of (i) the Crown, or (ii) the Commission, or (b) administering any enactment for which the Minister is responsible. (2) Regulations under this section may provide for any matter respecting (a) the keeping of records for the purposes of this Act and the persons required to keep them, (b) information to be furnished to the Commission, the persons required to furnish that information, the form in which that information must be furnished and the time within which the information must be furnished, (c) the confidentiality of records and other information obtained by the Commission under this Act and the communication and disclosure of and access to those records and that information, and (d) the imposition of pecuniary penalties for failure to comply with subsection (3)(b). (3) A person required to do so by the regulations under this section shall (a) keep records for the purposes of this Act in accordance with the regulations, and (b) furnish to the Commission information required by the regulations within the time prescribed by the regulations. (4) With respect to any record or other information obtained by the Commission under this Act that is used for (a) determining or verifying royalty liability or collecting or forecasting royalty, or (b) determining, prescribing or verifying an amount, factor or other component that is used to calculate royalty, the regulations made under this section prevail despite the Access to Information Act for a period of 5 years following the end of the year to which the record or other information relates. 2013 c16 s9;AR 141/2025 10 and 11 Repealed 2013 c16 s10. Financing 12 (1) The President of Treasury Board and Minister of Finance shall pay to the Commission the money voted by the Legislature for the purposes of the Commission in equal monthly instalments unless otherwise agreed between the Commission and the President of Treasury Board and Minister of Finance. (2) If the money voted by the Legislature for the purposes of the Commission is not sufficient for the Commission to meet its obligations as they become due, the Lieutenant Governor in Council may authorize the President of Treasury Board and Minister of Finance to make payments to the Commission from the General Revenue Fund. (3) The Commission, with the approval of the Lieutenant Governor in Council and to the extent permitted by the Lieutenant Governor in Council, (a) may from time to time borrow money from any person or enter into overdraft arrangements with a bank or treasury branch, and (b) may give security for the repayment of that money. (4) The Lieutenant Governor in Council may authorize the President of Treasury Board and Minister of Finance to guarantee on behalf of the Crown in right of Alberta any obligation of the Commission. (4.1) The Commission, with the approval of the Lieutenant Governor in Council and to the extent permitted by the Lieutenant Governor in Council, may guarantee the obligation of any person. (5) The Commission shall, when requested to do so by the President of Treasury Board and Minister of Finance, pay to the President of Treasury Board and Minister of Finance for deposit in the General Revenue Fund the net profit of the Commission for a fiscal year or a part of that net profit specified by the President of Treasury Board and Minister of Finance. RSA 2000 cP‑10 s12;2009 c20 s9;2013 c10 s33;2013 c16 s11; 2022 c21 s64 Investment 12.1 (1) The Commission may be a participant under section 40 of the Financial Administration Act . (2) In subsection (3), “shares” has the same meaning as in section 42(1)(a) of the Financial Administration Act . (3) The Commission may, with the approval of the Lieutenant Governor in Council, (a) directly or indirectly purchase shares, (b) make a loan of money or acquire an existing loan of money, or (c) in a transaction involving the payment of any money, enter into a joint venture or partnership for the purposes of fulfilling its responsibilities under section 15. 2013 c16 12 Directives 12.2 (1) The Minister may issue directives that the Commission, the board, or both, must follow in carrying out their powers and duties under this Act and the regulations. (2) In subsection (3), “directive” means (a) a directive issued under subsection (1), (b) a directive issued by the Treasury Board pursuant to section 7 of the Financial Administration Act , and (c) any other directive or direction issued under another enactment. (3) The board shall ensure that any directive issued to the board, and the Commission shall ensure that any directive issued to the Commission, is implemented in a prompt and efficient manner and in accordance with section 6.1, and compliance by the board or the Commission, as the case may be, with any directive is deemed to be in compliance with sections 6.1 and 15. (4) This section does not apply to any powers, duties or functions of the Commission under Part 1, 2 or 5 of the Natural Gas Marketing Act . 2013 c16 s12 13 (1) Repealed 2013 c16 s13. (2) Repealed 2009 c20 s9. Definition 14 (1) In section 16, “crude oil” means the crude oil component of petroleum. (2) This section is repealed on Proclamation. RSA 2000 cP‑10 s14;2009 c20 s9 Dealing with Crown ’ s royalty share 15 Subject to the regulations, the Commission shall (a) accept delivery of the Crown’s royalty share of a hydrocarbon substance required to be delivered to the Commission pursuant to an agreement, a contract under section 9(a) of the Mines and Minerals Act or an enactment, (b) deal with the Crown’s royalty share of the hydrocarbon substance in a manner that is, in the Commission’s opinion, in the public interest of Alberta, and (c) engage in other hydrocarbon‑related activities in a manner that is, in the Commission’s opinion, in the public interest of Alberta. RSA 2000 cP‑10 s15;2009 c20 s9;2013 c16 s14 Direction to provide goods and services 16 (1) The Commission may, in accordance with the regulations, direct a supplier to provide goods or services or both. (2) The Commission may include in a direction under subsection (1) any terms and conditions that it considers appropriate. (3) The Commission may pay consideration for the provision of the goods or services in accordance with the regulations. (4) A supplier who receives a direction under subsection (1) shall comply with (a) the direction, and (b) any regulations relating to the provision of the goods or services. (5) Where the Commission gives a direction under subsection (1) and the Commission is unable to reach an agreement with the supplier as to the just and reasonable consideration to be paid by the Commission for the goods or services, the Alberta Utilities Commission may, on the application of the Commission or the supplier, fix charges instead of consideration in accordance with the regulations. (6) No compensation is payable for goods or services provided under this section other than consideration or charges instead of consideration that are paid or fixed under this section. (7) A supplier who contravenes subsection (4) is guilty of an offence and is liable to a fine of not more than $5000 for each day that the contravention continues. (8) Where a supplier contravenes subsection (4), the Commission may, whether or not the supplier has been convicted of an offence in respect of the contravention, apply to the Court of King’s Bench for an order requiring the supplier to comply with the direction or the regulations, as the case may be. (9) Where (a) a supplier is the lessee under an agreement, and (b) a direction is given to the supplier under subsection (1) calling for goods or services to be provided in respect of a hydrocarbon substance that is, in whole or in part, the Crown’s royalty share of a mineral payable pursuant to the agreement, a contravention of subsection (4) by the supplier is, for the purposes of section 45(1)(c)(i) of the Mines and Minerals Act , deemed to be a failure to comply with that Act in relation to the agreement, whether or not the supplier has been convicted of an offence in respect of the contravention. RSA 2000 cP‑10 s16; 2007 cA‑37.2 s82(21);2009 c20 s9; 2009 c53 s130;2012 cR‑17.3 s100;AR 217/2022 17 Repealed 2009 c20 s9. Discharge of lessee’s liability 18 (1) Subject to this section and the regulations, the delivery to the Commission of the Crown’s royalty share of a hydrocarbon substance recovered pursuant to an agreement operates to discharge the lessee with respect to the lessee’s liability to pay that royalty to the Crown in right of Alberta. (2) Where money is paid to the Commission pursuant to regulations made under section 19(1)(e) as provided for under section 19(2)(a), (a) the money is deemed to be payable under an agreement and is for all other purposes deemed to be a money royalty payable on the hydrocarbon substance under an agreement, and (b) the payment of the money operates to discharge the lessee of an agreement with respect to the lessee’s liability to pay royalty on the hydrocarbon substance to the Crown in right of Alberta to the extent that the money represents the value of the royalty on the hydrocarbon substance as determined under the regulations. RSA 2000 cP‑10 s18;2009 c20 s9 Regulations 19 (1) The Lieutenant Governor in Council may make regulations (a) specifying substances or classes of substances as hydrocarbon substances for the purposes of this Act; (a.1) respecting delegation by the board under section 2; (a.2) prescribing powers, duties and functions that may not be delegated under section 2; (a.3) respecting the providing of indemnities by the Commission under section 6.3(1) and (2); (a.4) respecting delegations by the Commission under section 7; (b) respecting the preparation and retention of records and accounts under section 9.1; (b.1) respecting directives issued by the Minister under section 12.2(1); (c) respecting information to be furnished to the Commission, the persons required to furnish that information, the form in which that information must be furnished and the time within which the information must be furnished; (d) respecting the imposition of pecuniary penalties payable to the Commission, the circumstances in which the penalties may be imposed, the persons liable to pay the penalties and the time by which the penalties must be paid; (e) respecting the respective rights, powers, liabilities and obligations of the Commission, lessees and others in the event that the quantity of a hydrocarbon substance delivered to the Commission in a month is less than or greater than the Crown’s royalty share of the hydrocarbon substance actually payable in respect of that month; (f) providing for any matter in connection with or incidental to the administration of sections 15 to 18. (2) Without limiting the powers of the Lieutenant Governor in Council under subsection (1)(e), regulations may be made under that subsection (a) respecting the powers of the Commission, in the event of a deficiency in deliveries of the quantity of the Crown’s royalty share of a hydrocarbon substance under an agreement in a month, notwithstanding any provision to the contrary in the Mines and Minerals Act or a regulation under that Act, (i) to accept the payment of money instead of delivery of the deficient quantity, or (ii) to direct the payment to the Commission of an amount of money determined by it in accordance with the regulations as the value to the Crown of the deficient quantity; (b) respecting the powers of the Commission, in the event of deliveries of a hydrocarbon substance to the Commission in a month in excess of the quantity of the Crown’s royalty share of the hydrocarbon substance for that month, to act as the agent of the owner of the excess quantity for the disposition and delivery of the excess quantity to a purchaser in accordance with the regulations. (3) A failure to comply with the regulations under this section in respect of an agreement is, for the purposes of section 45(1)(c)(i) of the Mines and Minerals Act , deemed to be a failure to comply with that Act in relation to the agreement, whether or not the lessee has been convicted of an offence in respect of the contravention. (4) Reports and other information supplied to the Commission pursuant to regulations under this section are, for the purposes of section 38 of the Mines and Minerals Act , deemed to be supplied under that Act. RSA 2000 cP‑10 s19;2009 c20 s9;2013 c16 s15 Regulations re provision of goods and services 19.1 (1) The Lieutenant Governor in Council may make regulations (a) specifying goods or services or classes of goods or services for the purposes of section 16; (b) specifying persons or classes of persons as suppliers for the purposes of section 16; (c) respecting the giving of directions to suppliers and respecting the provision of goods or services by suppliers under section 16; (d) respecting the consideration to be paid by the Commission under section 16(3) and the fixing of charges instead of consideration by the Alberta Utilities Commission; (e) respecting applications to the Alberta Utilities Commission for the purposes of section 16(5); (f) respecting the rights, powers, liabilities and obligations of the Commission, suppliers and others in relation to the provision of goods or services and consideration for goods or services or charges instead of consideration under section 16. (2) A failure to comply with the regulations under this section in respect of an agreement is, for the purposes of section 45(1)(c)(i) of the Mines and Minerals Act , deemed to be a failure to comply with that Act in relation to the agreement, whether or not the lessee has been convicted of an offence in respect of the contravention. (3) Reports and other information supplied to the Commission pursuant to regulations under this section are, for the purposes of section 38 of the Mines and Minerals Act , deemed to be supplied under that Act. 2009 c20 s9