BILL NO. 102

(as introduced)

2nd Session, 58th General Assembly
Nova Scotia
51 Elizabeth II, 2002

Private Member's Bill

Raw Gas Onshore-processing Act

Manning MacDonald
Cape Breton South

First Reading: April 2, 2002

Second Reading:

Third Reading:

Be it enacted by the Governor and Assembly as follows:

1 This Act may be cited as the Raw Gas Onshore-processing Act.

2 The purpose of this Act is to ensure that the maximum economic and industrial benefits are derived from unprocessed natural gas extracted in the offshore area by requiring that all raw gas extracted in the offshore area be processed onshore in the Province.

3 In this Act,

(a) "gas" means raw gas, including coal gas or any constituent of raw gas or marketable gas, including, but not limited to, condensate, propane, butane and ethane;

(b) "gas processing" means the conversion of raw gas to a marketable product or marketable gas, or both;

(c) "marketable gas" means a mixture mainly of methane originating from raw gas, if necessary through the processing of the raw gas for the removal or partial removal of some constituents, that meets specifications for use as a domestic, commercial or industrial fuel or as an industrial raw material;

(d) "Minister" means the Minister responsible for the Petroleum Directorate;

(e) "offshore area" means Nova Scotia lands as defined in the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation (Nova Scotia) Act;

(f) "onshore area" means those lands under the jurisdiction of the Province excluding Sable Island and all other lands within the offshore area;

(g) "raw gas" means a mixture containing methane, other paraffinic hydrocarbons, nitrogen, carbon dioxide, hydrogen sulfide, helium and minor impurities, or some of them, that is recovered or is recoverable at a well from an underground reservoir and that is gaseous at the conditions under which its volume is measured or estimated.

4 No person shall engage in gas processing in the offshore area.

5 Where a person

(a) produces or has the right to produce raw gas in the Province;

(b) appears to the Minister, on evidence that the Minister considers sufficient, to have made an arrangement

(c) appears to the Minister, on evidence that the Minister considers sufficient, to have made an arrangement with the owner of the raw gas to transport the raw gas to a place outside the Province,

and the person proposes to remove the raw gas, or cause it to be removed from the Province, that person shall not remove the raw gas from the Province and shall process the gas onshore in the Province.

6 All raw gas produced in the offshore area shall be processed in the onshore area.