Oil and Gas Laws in Canada

As one can imagine, in Canada there are stringent oil and gas laws that must be followed by those involved in this industry. The laws are applicable at both the federal and provincial level.

New Legislation

As with any rules and regulations, sometimes there is new legislation that being introduced. In Canada, this is now taking place in the province of Alberta.

The law deals with the amount of natural gas and oil that will be allowed to leave the province. It also includes natural gas. This could bring about a significant change. It would mean that carriers of these commodities would be under guidelines as to how much they would be allowed to haul within a period of time. Those that do not conform to this new rule would face hefty fines.

One of the major reasons this is being implemented is for the protection of the province. There are concerns about the profitability that lies within what is being shipped. Right now one of the main concerns is the loss of revenue. The new law would have an effect on BC, as it pertains to the Kinder Morgan project. As a result of this proposed law, it is creating tension between B.C. and Alberta.

Staying Informed

Even without considering the introduction of new laws, those in the oil and gas industry in Canada must be aware of the current laws. There are several resources that can be used to keep those in the industry informed.

The responsibility is on each company to know the rules and abide by them. If these new laws come into effect it could have some bearing on the industry in general. It would not just be restricted to the province of Alberta itself. It could be setting the scene for an internal trade war within the country.