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Canada's National Energy Regulator

What is the National Energy Board?

The National Energy Board (NEB) is an independent federal agency established by the Parliament of Canada in 1959 to regulate international and interprovincial aspects of the oil, gas and electric utility industries. The NEB Act provides the authority for how the NEB conducts business.

The NEB is accountable to Parliament through the Minister of Natural Resources Canada. In addition to the Board's role as a regulator, it occasionally provides energy advice to the Minister. The NEB also reports to the public on specific energy issues, holds public inquiries when appropriate and monitors current and future supplies of Canada's major energy commodities.

Why is the NEB important to Canadians?

As the federal regulator, our vision is to be active and effective in Canada's pursuit of a sustainable energy future. The NEB strives for excellence in regulatory leadership and accountability.

Canada is rich in energy resources and it is vital that these resources are managed responsibly and safely. By working with people in the energy sector, federal and provincial government agencies and interested organizations, we strive to ensure energy resources are safe and reliable.

What are the values of the NEB?

A commitment to three core values guides all the work done at the NEB.

  • Integrity: We are fair, transparent and respectful.
  • Regulatory Leadership: We are responsive, proactive and innovative.
  • Accountability: We are accountable and support each other to deliver timely, high quality results.

Who makes up the NEB?

Under the NEB Act, up to nine Board Members may be appointed by the Governor in Council who is the Governor General acting on the advice of the Committee of Council.

A Board Member is initially appointed for a seven-year term and can be reappointed for seven years or less until the age of 70. Temporary Board Members may also be appointed.

Members are selected from the private and public sector and they have knowledge or expertise in areas such as economics, engineering, environment, finance, law, public participation, safety and science.

The Board Members are supported by about 400 employees with diverse skills and expertise. These employees include administrative staff, computer specialists, communications specialists, economists, engineers, environmental specialists, financial analysts, human resources specialists, geologists, geophysicists, lawyers, librarians and many others.

What kinds of energy projects does the Board regulate?

The NEB regulates the following parts of the energy industry:

  • construction and operation of interprovincial and international pipelines;
  • traffic, tolls and tariffs of interprovincial and international pipelines;
  • construction and operation of international and designated interprovincial power lines;
  • export and import of natural gas;
  • export of oil, propane, butanes, ethane and electricity; and
  • oil and gas activities on frontier lands and offshore areas not covered by federal/provincial management agreements.

How does the NEB operate?

Applications are made to the Board for any of the activities that the NEB regulates. Decisions on these applications are made in a similar way to civil court decisions. For major applications, the NEB holds oral public hearings. Normally a panel of three Board Members make a decision on the application. Oral hearings are usually held in locations where there is specific interest in the application. Public hearings may also be conducted in writing.

But the NEB's involvement in a project does not end with an approval. The NEB can attach environmental conditions to project approvals which it can then monitor and enforce throughout the lifecycle of the pipeline, from project approval to abandonment.

The NEB is also reaching out to Canadians through information sessions. These sessions focus on such topics as how people can participate in a hearing and basic information about the NEB.

How does the NEB protect the environment and ensure public safety of NEB-regulated projects?

Since its inception in 1959 the NEB has always considered the environment when making regulatory decisions. The NEB has also been conducting environmental assessments under the CEA Act since it came into force in 1995. As a "responsible authority" under the Canadian Environmental Assessment Act, the Board ensures that appropriate environmental assessments are conducted for projects under its jurisdiction.

The NEB's environmental responsibility also includes ensuring environmental protection during planning, construction, operation and abandonment of facilities within its jurisdiction.

If a project is approved, the NEB ensures the company continues to protect the environment, public health and safety by auditing and inspecting the company's construction activities, maintenance and monitoring procedures during the operation of the pipeline and its procedures during abandonment.

Safety is one of the top priorities at the NEB. The Board is responsible for ensuring companies meet regulations on the safety of employees, public and environment as they may be affected by the design, construction, operation, maintenance and abandonment of a pipeline or international power line. The NEB works with the Canadian Standards Association to establish safety regulations and technical standards for federally regulated pipelines.

What other organizations regulate energy in Canada?

The NEB is Canada's federal energy regulator. Natural Resources Canada is one of the government's sources of energy policy advice. The NEB takes government energy policies into account when carrying out its regulatory functions.

Most provinces and territories have energy regulating bodies with specific mandates and responsibilities for their jurisdiction. The NEB works with a number of provincial and federal agencies to improve the regulatory process.

Our purpose is to regulate pipelines, energy development and trade in the Canadian public interest.

 

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Date Modified:
2011-10-28