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Home > Speeches and Presentations > Speeches and Presentations 2010 > Opening Statement Before the Standing Senate Committee on National Finance

Opening Statement Before the Standing Senate Committee on National Finance

Pradeep Kharé
Chief Operation Officer
National Energy Board

2 November 2010

  • Thank you, Mr. Chairman, and good morning, Honourable Senators.
  • I am pleased to appear before this Committee today to discuss the National Energy Board's mandate, our priorities, and how our budgetary appropriations have been invested to bring value to Canadians. This morning I am joined by our Deputy CFO, Ms. Susan Allen.

Mandate

The NEB's purpose is to promote safety and security, environmental protection and efficient energy infrastructure and markets in the Canadian public interest within the mandate set by Parliament in the regulation of pipelines, energy development and trade.

The Board's main responsibilities include regulating the construction and operation of interprovincial and international oil and gas pipelines, international power lines and designated interprovincial power lines. Furthermore the Board regulates tolls and tariffs for pipelines under its jurisdiction. With respect to the specific energy commodities, the Board regulates the export of natural gas, oil, natural gas liquids (NGLs) and electricity and the import of natural gas. Additionally, the Board regulates oil and gas exploration and development on frontier lands and offshore areas not covered by provincial or federal management agreements.

  • In an advisory function, the Board also keeps under review and analyzes matters related to its jurisdiction and provides information and advice on aspects of energy supply, transmission and disposition in and outside Canada. In this role the NEB publishes periodic assessments to inform Canadians on trends, events and issues which may affect Canadian energy markets. The NEB's regulatory oversight extends over 71,000 kilometres of pipeline that crisscross most of our country, and approximately 1,400 kilometres of international power lines.
  • It is the Board's responsibility to ensure that this energy infrastructure is built and operated in a safe and secure manner that protects the environment. This has always been our priority.

Budget and Resources

  • The NEB is funded through Parliamentary appropriations. The NEB's total budget for the period of 2010-2011 is $63.8 million, of which $52.5 million was appropriated through the main estimates and remaining through supplementary estimates. Under the NEB Act, the Government of Canada recovers approximately 90 per cent of the appropriation from those companies regulated by the NEB.
  • To deliver on our mandate the NEB is staffed with 7 full-time GiC-appointed Board Members and 5 part-time GIC-appointed Members, supported by approximately 380 staff.

Financial Oversight

  • Our financial statements are audited annually by the Office of the Auditor General. They provide an Auditor's Report for cost recovery purposes so that the regulated industry can rely on the accuracy of the expenditures that Canada recovers from them.
  • The Cost Recovery Liaison Committee, a joint initiative between the NEB and industry associations, provides an informal forum for those who are subject to the NEB Cost Recovery Regulations, to inform them about financial statements and other cost matters.
  • As with all agencies, we submit our financials to Treasury Board Secretariat and report in our Departmental Performance Report annually.
  • Being an independent body reporting to Parliament through the Minister of Natural Resources, we also submit an Annual Report to the Parliament.

Board Priorities

Currently, the NEB has 5 priorities:

  1. The public review of Arctic Safety and Environmental Offshore Drilling;
  2. Enhancing our regulatory efforts respecting infrastructure safety and integrity, and environmental protection;
  3. Increasing the clarity of NEB application filing requirements;
  4. Improving Public Engagement (with landowners, Aboriginal peoples, environmental non-governmental organizations and other stakeholders; and
  5. Working to have Canadians well informed and equipped to make energy choices.

As usual, the NEB is very busy addressing many regulatory applications. Two of the larger applications involve the Mackenzie Gas Pipeline project (from Mackenzie Delta to Alberta) and the Northern Gateway oil pipeline project (from Alberta to the west coast of Canada). The NEB panel adjudicating the Mackenzie application has announced that they will be issuing their decision about one month following receipt of the Government response to the Joint Review Panel Report. The Northern Gateway project is going through an Environmental Assessment process through the Joint Review Panel under the Canadian Environmental Assessment Act.

Everything we do is focused on the Canadian public interest.

Closing Remarks

  • Through its 51 years of existence the NEB has always made public safety and environmental protection its number one priority. This continues to be the case.
  • I am confident that we are continuing to provide good value to Canadians while prudently managing our budget allocations.
  • We look forward to answering any questions you may have.

 

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Date Modified:
2011-10-28