The Energy Resources Activities Act (ERAA) is a significant piece of legislation in Canada that governs the development, management, and regulation of energy resources. In this article, Lexpert explores what the ERAA is, why it matters, and how it affects Canadians and the energy industry.
What is the Energy Resource Activities Act (ERAA)?
The Energy Resource Activities Act (ERAA) is a law that governs how energy resources are managed in British Columbia. It covers a wide range of activities, from exploration and development to production and transportation of energy resources.
The ERAA also supports economic development and the transition to low-carbon energy. It sets out clear rules for companies and individuals who want to explore for or develop energy resources in the province. The law applies to resources such as:
- petroleum
- natural gas
- hydrogen
- methanol
- ammonia
Feel free to watch this video on the types of energy used in the country:
If you want to widen your legal knowledge on energy and environment, feel free to check out our designated page for Energy law.
Important definitions under the ERAA
The ERAA contains many vital terms that help clarify its scope and application. Some of the most important ones include:
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energy resource activity: this covers the exploration, development, production, gathering, processing, storage, disposal, and transportation of energy resources; it also includes building and operating facilities and pipelines
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permit: a permit is required to carry out most energy resource activities; the regulator issues permits and might impose conditions on them
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permit holder: this is the person or company that holds a permit to carry out an energy resource activity
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regulator: the British Columbia Energy Regulator is the agency responsible for administering the ERAA
Who needs to comply with the ERAA?
Anyone who wants to carry out an energy resource activity in British Columbia must comply with the ERAA. This includes companies involved in oil and gas, hydrogen production, and related industries. Landowners and other stakeholders might also be affected by the ERAA, especially if energy resource activities take place on or near their land.
The ERAA requires that most energy resource activities can only be carried out with a valid permit. The law also sets out requirements for consultation and notification, especially when activities might affect landowners or the environment.
Permits and authorizations
Permits are central to the ERAA. To carry out most energy resource activities, a person or company must first get a permit. The regulator reviews applications for permits and might impose conditions to protect public safety and the environment.
In some cases, additional authorizations might be required under other laws. The ERAA sets out detailed rules for:
- applying for permits
- amending permits
- transferring permits
- expiration or surrender of permits
The law also describes the rights and obligations of permit holders, including requirements for record-keeping and reporting.
What is the mandate of the BC energy regulator?
The British Columbia Energy Regulator (BCER) is the agency responsible for administering the ERAA. Its mandate is set out clearly in the law. The regulator was formerly known as the Oil and Gas Commission but has been renamed and continued as a corporation under the ERAA.
The role and structure of the regulator
The regulator is a corporation consisting of a board of directors. The board is made up of at least five and no more than seven directors. These are appointed by the Lieutenant Governor in Council. The board includes a deputy minister, an Indigenous person, and several other directors. The chair of the board is designated by the minister or appointed by the board if no chair is designated.
The board is responsible for:
- drafting regulations
- directing the affairs of the regulator
- approving service plans and budgets
- establishing policies such as conflict-of-interest rules
The board must also establish a code of conduct for employees.
The regulator is managed by a commissioner, who acts as the CEO. The commissioner is appointed by the Lieutenant Governor in Council and is responsible for managing the operations of the regulator. The commissioner can hire employees and define their duties. They can also delegate powers as needed.
The regulator as an agent of the government
The ERAA states that the regulator is an agent of the government. This means that the regulator acts on behalf of the provincial government when carrying out its duties. The regulator has the authority to acquire and dispose of property.
They can also invest and borrow money (with approval) and enter into agreements with other governments and organizations.
The regulator’s purposes and guiding principles
The main purpose of the regulator is to oversee energy resource activities in a way that:
- protects public safety and the environment
- supports reconciliation with Indigenous peoples
- supports the transition to low-carbon energy
- fosters a sound economy and social well-being
The regulator must balance these objectives especially when making decisions about compliance and enforcement.
Read next: How the BC Energy Regulator oversees energy resources in British Columbia
Powers of the regulator under the ERAA
The regulator has a list of powers under the ERAA. These include:
- issuing permits and authorizations for energy resource activities
- imposing conditions on permits to protect the environment and public safety
- suspending, amending, or cancelling permits if necessary
- enforcing compliance with the law and regulations
- conducting inspections, audits, and investigations
- responding to emergencies and taking action to contain spills or other hazards
- managing restoration of orphan sites and compensating landowners when appropriate
The regulator also has responsibilities under other specified laws, such as:
- the Environmental Management Act
- the Forest Act
- the Heritage Conservation Act
- the Land Act
- the Water Sustainability Act
In many cases, the regulator exercises powers and duties that would otherwise belong to officials under those laws.
Consultation and public participation
The ERAA requires the regulator to make sure that landowners and other stakeholders are consulted or notified before certain energy resource activities begin. Applicants for permits must notify landowners and might be required to carry out consultations or provide additional notices.
The regulator must consider submissions from landowners and other interested parties when making decisions about permits.
The law also allows for public participation in investigations. Residents of British Columbia who are at least 18 years old can apply to the regulator for an investigation of certain alleged contraventions, such as methane emissions. The regulator must investigate and provide progress reports to the applicant.
If you need a legal expert to help you understand how the BCER works, here are some of the best lawyers who specialize in energy law.
Compliance and penalties
The regulator has strong enforcement powers under the ERAA. If a permit holder or other person fails to comply with the law, the regulator can issue orders requiring corrective action. The regulator can also impose administrative penalties for contraventions, with maximum amounts set by regulation. In serious cases, offences under the ERAA can result in fines, imprisonment, or both.
Reviews and appeals
The ERAA provides a process for reviewing and appealing decisions made by the regulator. Eligible persons can request a review of certain decisions.
If they are not satisfied with the outcome, they can appeal to the Energy Resource Appeal Tribunal. The Tribunal is an independent body that hears appeals and makes final decisions.
Record-keeping and transparency
Permit holders and authorization holders must keep detailed records and plans as required by the ERAA and regulations. They must also prepare emergency response programs and contingency plans. The regulator has the authority to require submission of these records and to disclose or keep them confidential as set out in the regulations.
The regulator maintains a public registry with information about energy resource activities. It also publishes lists of orphan sites and notices about property that might be available for disposition.
Orphan sites and compensation
Orphan sites are a special concern under the ERAA. These are sites where the permit holder is insolvent or cannot be found, and restoration is needed. The regulator manages a fund to pay for the restoration of orphan sites. Landowners who lose the use of their land because of an orphan site might be eligible for compensation from the fund.
The regulator can also dispose of abandoned property at orphan sites and pay any proceeds into the fund. If someone restores an orphan site, they might apply for compensation for their costs, based on their share of the interest in the activity.
Navigating the ERAA
Anyone involved in British Columbia’s energy sector should be familiar with the ERAA and understand their rights and obligations under the law. It is designed to balance economic development with environmental protection and public safety, supporting a sustainable future for the province's energy resources.
For more information about the ERAA or to find out how it might apply to your situation, consider consulting with a legal expert. You can also check out the full text of the law since it’s already available online.
For more about ERAA and related laws, check out our Legal FAQs page.