canada’s offshore€¦ · powerpoint presentation author: candace newman created date: 7/19/2018...
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© 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
© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
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
© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
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)
© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
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
© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
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
© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
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
© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
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.
© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
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