Energy Safety and Security Act comes into force
On 26 February 2016 the Energy Safety and Security Act comes into force. The legislation amends, in part, the Canada Oil and Gas Operations Act (COGOA) and provides the Board with new tools for regulating Northern oil and gas activities. Key components include:
- $1 billion absolute liability limit in the offshore and new obligations related to “financial responsibility” (i.e. readily accessible funds) and “financial resources” (i.e. overall financial capacity); operators continue to have unlimited liability when they are at fault or negligent.
- Improved transparency through new Board authority to hold public hearings, make some information public, and provide participant funding in relation to certain projects under COGOA.
- Once the NEB determines an application for a COGOA Authorization is complete, the NEB has 18 months to complete its review.
- Providing the NEB with the authority to establish an administrative monetary penalty (AMP) regime under COGOA.
The legislation also amends the Canada Oil and Gas Operations Act to include the following regulations.
- Canada Oil and Gas Operations Financial Requirements Regulations
- Canada Oil and Gas Administrative Monetary Penalty Regulations
The NEB will contact regulated companies and interested parties with additional information and guidance
For more information please see the announcement on Natural Resources Canada’s website.
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