This archived statute consolidation is current to November 25, 1993 and includes changes enacted and in force by that date.

Petroleum Corporation Act

[RSBC 1979] CHAPTER 324

Contents
Section
  1.  Interpretation
  2.  Corporation
  3.  Directors
  4.  General powers
  5.  Specific powers
  6.  Manager and employees
  7.  Bonding
  8.  Temporary borrowing and guarantee
  9.  Advances from consolidated revenue fund
  10.  Borrowing powers
  11.  Form and signing
  12.  Government guarantee
  13.  Fund, audit and fiscal year
  14.  Application of revenue
  15.  Appointment of representative
  16.  Annual report
  17.  Offence and penalty
  18.  Immunity from liability
  19.  Suits by and against corporation
  20.  Regulations

Interpretation

1.  In this Act

"board" means the directors appointed under this Act;

"corporation" means the British Columbia Petroleum Corporation;

"director" means a director of the corporation;

"natural gas" means all fluid hydrocarbons, both before and after processing, which are not defined as petroleum, and includes hydrogen sulphide contained in them;

"petroleum" means crude petroleum and all other hydrocarbons, regardless of gravity, that are or can be recovered in liquid form from underground through a well by ordinary production methods.

Historical Note(s): 1973-140-1.

Corporation

2.  (1) There is continued the corporation known as British Columbia Petroleum Corporation, consisting of those directors appointed under section 3, and their successors, who, on appointment, constitute the corporation.

(2) The corporation is, for all purposes, an agent of the Crown in right of the Province; but the corporation may, on behalf of the Crown, carry out its powers and duties in its own name.

Historical Note(s): 1973-140-2.

Directors

3.  (1) The corporation shall consist of not less than 3 or more than 5 directors appointed by the Lieutenant Governor in Council to hold office, during pleasure, for such term in respect of each director as the Lieutenant Governor in Council may specify.

(2) The Lieutenant Governor in Council shall designate one director as chairman of the corporation and another director as vice chairman who shall act as chairman if there is a vacancy in the office of chairman or at the request of, or in the absence or inability to act of, the chairman.

(3) A majority of the directors constitutes a quorum.

(4) Each director shall be reimbursed by the corporation for reasonable travelling and out of pocket expenses necessarily incurred in the discharge of his duties as a director, and, in addition, may be paid remuneration fixed by the Lieutenant Governor in Council.

(5) A director who is a member of the Legislative Assembly may, notwithstanding the Constitution Act, accept payments to him under subsection (4), and is not thereby ineligible as a member of the Legislative Assembly and is not disqualified to sit or vote.

Historical Note(s): 1973-140-3; 1983-10-21, effective October 26, 1983 (B.C. Reg. 393/83).

General powers

4.  (1) The corporation has the power and capacity of a company incorporated under the Company Act.

(2) Except as provided in this Act, the Company Act applies to the corporation, but the Lieutenant Governor in Council may direct that one or more provisions of that Act do not apply to the corporation.

(3) The management of the corporation's business is vested in the board who, notwithstanding the Company Act, may exercise a power or right that would otherwise be exercised by shareholders or members of the corporation or by the corporation.

Historical Note(s): 1973-140-4.

Specific powers

5.  Without limiting section 4, the objects of the corporation are, and it has power,

(a) to buy, sell and deal in petroleum and natural gas;

(b) to explore for, develop and produce petroleum and natural gas;

(c) to build, acquire, operate and dispose of pipe lines, gathering systems and storage facilities; and

(d) to acquire and hold land containing or thought or appearing to contain petroleum or natural gas, drilling reservations, exploration permits, geophysical licences, natural gas licences, petroleum leases, natural gas leases, petroleum and natural gas leases and petroleum and natural gas rights of every description and to work, develop, operate, turn to account or dispose of them.

Historical Note(s): 1973-140-5.

Manager and employees

6.  (1) With the approval of the Lieutenant Governor in Council, the board may, notwithstanding the Public Service Act, appoint a manager of the corporation, who may be a director, and fix his remuneration and other expenses to be paid by the corporation.

(2) The board may, under the Public Service Act, appoint employees required to carry out the proper business of the corporation, and designate their titles, offices and responsibilities.

(3) With the minister's approval, the board, notwithstanding the Public Service Act, may retain persons it considers necessary to provide professional, technical or advisory assistance, determine their duties and other terms of engagement and, subject to the approval of the Lieutenant Governor in Council, fix the remuneration and other expenses to be paid to them by the corporation.

(4) [Repealed 1985-15-44, effective March 2, 1987 (B.C. Reg. 248/86).]

(5) The Lieutenant Governor in Council may, by order, direct that the Pension (Public Service) Act applies to the manager or a person appointed or retained under this section; but the corporation may, alone or in cooperation with other corporations, ministries, commissions or other agents of the Crown, establish, support or participate in one or more of a pension plan or a group insurance plan for the benefit of a manager and employees of the corporation and their dependents.

Historical Note(s): 1973-140-6; 1977-75-1; 1985-15-44, effective March 2, 1987 (B.C. Reg. 248/86).

Bonding

7.  The corporation may require a bond under the Bonding Act from the persons appointed or retained under section 6 that it designates.

Historical Note(s): 1973-140-6.

Temporary borrowing and guarantee

8.  (1) Subject to restrictions placed by the Lieutenant Governor in Council, the corporation may borrow or raise money for its temporary purposes by way of overdraft, line of credit, loan or otherwise, on the credit of the corporation in the amounts, on the terms, for the periods and on the conditions the corporation determines.

(2) The Minister of Finance, on terms approved by the Lieutenant Governor in Council, may guarantee, on behalf of the Crown in right of the Province, the payment of the principal and interest on the corporation's borrowing.

Historical Note(s): 1973-140-7.

Advances from consolidated revenue fund

9.  To the extent permitted by this or any other Act, the Lieutenant Governor in Council may authorize the Minister of Finance to advance money to the corporation for its temporary purposes out of the consolidated revenue fund to be secured and repaid on terms approved by the Lieutenant Governor in Council.

Historical Note(s): 1973-140-8.

Borrowing powers

10.  (1) With the prior approval of the Lieutenant Governor in Council, the corporation, as agent of the Crown in right of the Province, subject to section 11, may raise money by way of loan on the credit of the corporation, and may limit or increase the amount to be raised, for the purposes of the corporation.

(2) Through the Minister of Finance as its agent, and for the purposes of section 8 or 9, it may

(a) issue Notes, bonds, debentures or other securities of the corporation;

(b) mortgage or pledge any of its property;

(c) dispose of the Notes, bonds, debentures or other securities issued under paragraph (a) for sums and at prices considered advisable; and

(d) raise money by way of loan on those securities.

(3) The board of directors may, by resolution, delegate any of their powers or the powers of the corporation under this section to any director or officer of the corporation.

Historical Note(s): 1973-140-9(1); 1983-25-18, effective October 26, 1983 (B.C. Reg. 397/83).

Form and signing

11.  (1) The securities authorized to be issued by section 10 may be made in the form, shall bear the rate of interest and be payable or redeemable in advance of maturity as to principal, interest and premium in the currencies of the countries, in the amounts or prices, in the manner and at the times the Lieutenant Governor in Council determines.

(2) The securities authorized by section 10 shall bear the seal of the corporation, which may be impressed or may be engraved, lithographed, printed or otherwise mechanically reproduced. The securities, together with any coupons attached, shall bear the signatures in writing, as defined in the Interpretation Act, of

(a) the chairman and other director or officer, or

(b) other directors or officers as the corporation may determine.

(3) A mechanically reproduced seal or signature is, for all purposes, valid and binding on the corporation notwithstanding that the person whose signature is reproduced may not have held office at the date of the Notes, bonds, debentures or other securities or at their date of the delivery, and notwithstanding that the person who holds the office at the time when the signature is affixed is not the person who holds that office on their date or the date of delivery.

(4) A recital or declaration in a resolution or minutes of the corporation authorizing the issue or sale of Notes, bonds, debentures or other securities to the effect that the authorized amount is necessary to realize the net sum authorized or required to be raised is conclusive evidence of that fact.

Historical Note(s): 1973-140-9(2,3,4); 1983-25-19, effective October 26, 1983 (B.C. Reg. 397/83).

Government guarantee

12.  (1) The Minister of Finance, on terms approved by the Lieutenant Governor in Council, may guarantee, on behalf of the Crown in right of the Province, payment of the principal, interest and premium, if any, of any Notes, bonds, debentures and other securities issued by the corporation, and the form and manner of the guarantee shall be as the Lieutenant Governor in Council approves.

(2) The guarantee shall be signed by the Minister of Finance, or another member of the Executive Council designated by the Lieutenant Governor in Council, and on being signed, the government of the Province is liable for payment of the principal, interest and premium, if any, of the securities guaranteed according to their tenor. In the hands of a holder, a guarantee so signed is conclusive evidence that compliance has been made with this section.

(3) In a case to which subsections (1) and (2) apply, the Lieutenant Governor in Council may discharge his liability on the guarantee out of the consolidated revenue fund, or out of the proceeds of securities of the government issued and sold for the purpose.

(4) The signature of the Minister of Finance or the member of the Executive Council may be engraved, lithographed, printed or otherwise mechanically reproduced, and the signature has the effect, with necessary changes, as set out in section 11 (3).

Historical Note(s): 1973-140-10.

Fund, audit and fiscal year

13.  (1) All money borrowed, income, revenue and other money received by the corporation, as agent, trustee, owner or otherwise, shall be paid into and form one fund called the "Petroleum Corporation Fund".

(1.1) Notwithstanding the Financial Administration Act, subsection (1) applies also to money collected by the corporation under section 15 (2) (c) of the Natural Gas Price Act, but that money shall be held in a separate account called the levy account.

(2) The Petroleum Corporation Fund shall be audited and reported on at least once a year by an auditor appointed by the Lieutenant Governor in Council. The cost shall be paid by the corporation.

(3) The fiscal year of the corporation shall commence on April 1 and end on the following March 31.

Historical Note(s): 1973-140-11; 1985-53-14, effective July 1, 1985 (B.C. Reg. 198/85); 1987-12-12, effective June 26, 1987 (B.C. Reg. 182/87); 1990-62-14.

Application of revenue

14.  (1) Subject to subsections (2) and (3), the corporation shall apply the revenue in the Petroleum Corporation Fund

(a) first, in payment of the cost of doing business;

(b) second, in payment of the cost of administration, including salaries and remuneration, and

(c) third, in payment of that part of money borrowed that is due and payable, with interest due and payable on the money.

(2) The corporation shall pay out of the Petroleum Corporation Fund to the Minister of Finance and Corporate Relations on the dates specified by that minister the amount in the fund on those dates, not including

(a) the amount, if any, in the levy account;

(b) the amount transferred to the fund under section 16.1 (2) of the Natural Gas Price Act, S.B.C. 1989, c. 74, and

(c) the amount, if any, specified by that minister.

(3) The corporation shall pay out of the levy account of the Petroleum Corporation Fund to the Minister of Finance and Corporate Relations, on the dates and in the manner specified by the Minister of Energy, Mines and Petroleum Resources, the amount specified by the latter minister.

(4) Nothing in this section limits the power of the corporation to acquire or dispose of shares in a subsidiary corporation.

Historical Note(s): 1990-62-15.

Appointment of representative

15.  The corporation may, on acquiring shares, debentures or other securities of a company, appoint a person it considers advisable to be its representative at any meeting of the company, of the company directors or of any class of members or creditors of the company.

Historical Note(s): 1973-140-13.

Annual report

16.  (1) The board, not later than June 30 in each year, shall submit to the minister a report on the corporation's financial condition at the end of the last fiscal year and on its affairs and business for the fiscal year.

(2) The minister shall lay the report before the Legislature, or if it is not then in session, within 15 days after the next session opens.

(3) The minister may, as often as he considers it necessary, require the directors to furnish him with reports or information on the affairs and business of the corporation as he directs.

Historical Note(s): 1973-140-14.

Offence and penalty

17.  A director or auditor of the corporation who verifies, or who directs, authorizes, assents to, acquiesces or participates in the verification of a statement, account or report required under this Act, and who knows that the statement, account or report is false in a material particular, commits an offence and is liable on conviction to imprisonment for not more than 5 years and not less than 6 months.

Historical Note(s): 1973-140-15.

Immunity from liability

18.  A director or employee of the corporation is not personally liable for anything done or omitted, in good faith, in the exercise or purported exercise of powers conferred by this Act.

Historical Note(s): 1973-140-16.

Suits by and against corporation

19.  Notwithstanding that the corporation is an agent of the Crown, it may sue and be sued in its own name, and is liable at law as if it were a natural person.

Historical Note(s): 1973-140-17.

Regulations

20.  The Lieutenant Governor in Council may make regulations.

Historical Note(s): 1973-140-18.