How to buy a gas station in Quebec: licences, ownership rules and what transfers

Buying a gas station in Quebec means taking over a retail site whose fuel equipment is overseen by the Régie du bâtiment du Québec (RBQ), whose fuel prices are subject to powers of the Régie de l’énergie, and whose products fall under the minister’s powers in Quebec’s Petroleum Products Act. This guide sets out what those Quebec bodies and statutes say, what the sources read for this page do not say about a change of owner, and what to ask the seller before closing. For the national picture, start with how to buy a gas station in Canada.

Who regulates a gas station in Quebec

Three Quebec bodies matter to a buyer. The RBQ’s mission is to oversee the administration of Quebec’s Building Act, whose objects include ensuring the quality of construction work on petroleum equipment installations in certain cases, and the safety of the public who use those installations. The Régie de l’énergie has price-related powers over gasoline and diesel under the Act respecting the Régie de l’énergie. The minister responsible acts under the Petroleum Products Act.

The RBQ use permit

The RBQ states that to use high-risk petroleum equipment you must hold a use permit issued by the RBQ and display it to the public. It adds that the permit is valid for 2 years and must be renewed after that period, and that without a permit it is not legal to use petroleum equipment. The RBQ says a permit is issued by post once the application is received and processed, and that it is displayed at the address of the equipment. One RBQ form covers issuing, renewing and modifying the permit. Ask the seller which of the station’s equipment the permit covers, and when it was last renewed.

What the Building Act expects of an owner

The Building Act sets duties that sit with the owner of a petroleum equipment installation. The owner must comply with the safety code the RBQ adopts. At the RBQ’s request, the owner must provide a safety attestation for the installation prepared by a person or body the RBQ recognizes. In the cases set by RBQ regulation, the owner must also provide an attestation of compliance with the safety code, and must obtain a use or operating permit. The Act lets that regulation exempt an owner from the attestation if the owner has put in place a quality-control program approved by the RBQ or by a person or body it recognizes. The Act also says a gas or petroleum distribution business must refuse to supply a petroleum equipment installation that is defective or that, to its knowledge, presents a risk of accident.

What the sources do not say about a change of owner

The RBQ permit page read for this guide does not say how a change of owner is handled. It describes issuing, renewing and modifying a permit, and it says the application is made only once installation work is finished and a recognized person has attested to its conformity after checking the work. Whether a new owner needs a fresh permit, a modified one or a notice is therefore a question to put to the RBQ in writing, before closing; ask a lawyer whether the purchase agreement should deal with it. Do not assume the answer is the same for a share sale and an asset sale; ask for each.

Fuel pricing and product standards

Under section 58.1 of the Act respecting the Régie de l’énergie, the Régie de l’énergie may indicate the minimum loading-rack price of gasoline and diesel in a periodical it publishes. For the purposes of section 67 of the Petroleum Products Act, the Act also provides that the Régie fixes, on its own initiative or at the minister’s request, an amount per litre for the operating costs a gasoline or diesel retailer must bear, and that it assesses whether to remove that amount from or include it in those costs. Under the Petroleum Products Act, the minister may prohibit the sale or use of a petroleum product that does not meet the standards set by regulation, on the basis of an analysis report an inspector has required. Ask the seller for any inspector’s reports or notices on the products sold.

What to ask the seller for

Start from the list below, and add anything the RBQ tells you in answer to your change-of-owner question. A professional familiar with Quebec law can confirm which items apply to the site you are looking at. You can also compare what is on the market in gas stations for sale.

• The current RBQ use permit, the date it was issued and the date it must be renewed, plus the form last filed with the RBQ.
• Every safety attestation and attestation of compliance supplied to the RBQ, and the name of the recognized person or body who prepared each.
• Any RBQ correspondence, inspection findings or orders about the petroleum equipment, and how each was closed out.
• Any inspector’s report, analysis report or ministerial notice about the petroleum products sold at the site.
• Written confirmation from the RBQ of what it requires on a change of owner.