Canada’s Offshore€¦ · PowerPoint Presentation Author: Candace Newman Created Date: 7/19/2018 1:37:41 PM

© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017

Canada’s Offshore

Oil and Gas Regime

Dr. Candace Newman

Energy Sector

Natural Resources Canada

Presented to the National Advisory Panel on Marine Protected Area Standards

July 8, 2018


Governance of Offshore Petroleum

• Fundamental Premise

− Offshore petroleum in Canada has been a contentious issue with multiple claims to jurisdiction and resource ownership

− The issue has been resolved by agreeing to disagree on jurisdiction and resource ownership and agreeing to develop Federal-Provincial Accords that provide a joint management regime for offshore oil and gas

• Federal-Provincial Accords

‒ 1985 - Accord with Newfoundland and Labrador brought into force

‒ 1986 - Accord with Nova Scotia brought into force

‒ 2011 - Signed Accord with Quebec and implementation legislation in development

‒ 2018 - Accord with New Brunswick under development

• Result

‒ Offshore petroleum remains exclusively federal responsibility outside Accord areas

‒ Common legal regime managed in multiple administrative areas

2



Minister’s Roles & Responsibilities

Accord Areas

(Nova Scotia and Newfoundland and Labrador)

• Legislative and Regulatory Framework– Joint federal-provincial legislation– Canada-Nova Scotia Offshore Area; Canada-Newfoundland and

Labrador Offshore Area

• Offshore Boards operate independently– Health and safety of offshore workers, protection of the environment,

management and conservation of offshore petroleum resources– Elements of the land tenure cycle– Annual Board budgets

• Ministers have specific responsibilities– Recommend appointments of 50% of membership of each Board– Approve Boards’ annual budgets (with provincial counterpart)– Ratify select Board decisions (with provincial counterpart)


Licence Issuance Process

Accord Areas

Nomination of Lands

Call for Bids

Exploration Licence

Declaration of Significant Discovery Licence

Significant Discovery Licence

Declaration of Commercial Discovery

Production Licence

Subject to Ministerial ratification

Strategic Environmental Assessment

Crown Lands

Subject to Ministerial ratification

20+ years

- Multiple authorizations

- Project-specific environmental assessments


Minister’s Roles & Responsibilities

Non-Accord Areas

(Pacific, Hudson Bay, Arctic)

• Legislative and Regulatory Framework – Canada Petroleum Resources Act

– NRCan Minister responsible for areas south of 60-degrees

– CIRNA Minister responsible for areas north of 60-degrees and Nunavut

• Canadian Energy Regulator (CER) independently regulates offshore safety, environmental protection and resource conservation in both areas– None of CER’s offshore oil and gas decisions are ratified by Ministers

• Economic development matters are regulated directly by Government– Responsible Ministers issue licences, approve development plans and

regulate economic benefits


Offshore Oil and Gas

Administrative Areas and Activity

CNOSPB Admin Area

C-NLOPB Admin Area

Prospective Canada-QCAdmin Area

NRCan Admin Area

CIRNA Admin Area

Percentage of Offshore (Approx.)

7.8% 18.1% 1.9% 27.2% 45.2%

Status(as of July 2018)

Active ActiveImplementing Legislation In

Progress

Moratorium since 1972

Moratorium since 2016

Licences(as of July 2018)

3 ELs; 33 SDLs; 11 PLs

28 ELs; 57 SDLs; 12 PLs

10 provincial permits224 ExploratoryPermits; 3 ELs

13 ELs; 69 SDLs

Wells(as of July 2018)

209 462 16 14 > 100

Offshore Projects(as of July 2018)

2 4 None None None



Marine Protected Areas and

Offshore Oil and Gas ActivityNational Marine

Conservation Areas(NMCA)

Oceans Act Marine Protected Areas

(OA MPA)

Marine National Wildlife Areas

(mNWA)Marine Refuges

LegislationCanada National Marine Conservation Areas Act

Oceans Act Canada Wildlife Act Fisheries Act

Responsible MinisterEnvironment and Climate

Change CanadaFisheries, Oceans and the

Canadian Coast GuardEnvironment and Climate

Change CanadaFisheries, Oceans and the

Canadian Coast Guard

Oil and Gas Must be Prohibited

Yes No No No

Treatment of existing oil and gas licences

Surrender of oil and gas licences must be negotiated before area is established.

Classes of activities can be prohibited, including oil and

gas. Bill C-55 provides authority to negotiate the

surrender or to cancel an oil and gas licence

(outside of Accord Areas).

Activities that are likely to disturb, damage or destroy wildlife can be prohibited,

including oil and gas. No legislative provision to

cancel licences.

Activities that cause serious harm to fish can be

prohibited. Minister has discretion to require and

deny a ‘licence to cause harm to fish’, which would prevent

oil and gas activity. No legislative provision to

cancel licences.

Treatment of future oil and gas licences

No new oil and gas licences can be issued.

New licences can be issued. New licences can be issued. New licences can be issued.





Summary

• Canada’s offshore oil and gas regime includes Accord and Non-Accord Areas– Accord Areas involve joint management of offshore oil and gas activities

including decisions requiring joint ratification

– Non-Accord Areas include federal decision-making on the issuance of licences

• Legislative tools and approaches to prohibit oil and gas available in existing legislation and more tools to become available in 2018/19

Documents

Canada’s Offshore€¦ · PowerPoint Presentation Author: Candace Newman Created Date: 7/19/2018 1:37:41 PM