On 8 December 2014, Greg Rickford, Canada’s Minister of Natural Resources, announced the introduction of the Pipeline Safety Act. The act introduces legislative measures to further enhance Canada’s world-class pipeline safety system.
The announcement builds on previous action taken by the Harper government to prevent incidents, including increasing the number of annual pipeline inspections and audits conducted by the National Energy Board (NEB) and strengthening the Board’s enforcement capabilities by giving it authority to fine pipeline operators for smaller incidents. Currently, 99.999% of the oil transported through 73 000 kilometres of federally regulated pipeline is completed safely, including 1500 km in Quebec.
The government’s latest measures proposed in the legislation introduced in the House of Commons include:
- Introducing absolute liability for all NEB-regulated pipelines, meaning that companies will be liable for costs and damages irrespective of fault — up to CAN$1 billion for major oil pipelines; companies continue to have unlimited liability when at fault or negligent.
- Providing the NEB authority to order reimbursement of any cleanup costs incurred by governments, communities or individuals.
- Providing the NEB authority and resources to assume control of incident response if a company is unable or unwilling to do so (i.e., in exceptional circumstances).
Other non-legislative actions being taken by the government include:
- Developing a strategy with industry and Aboriginal communities in an effort to increase Aboriginal Peoples’ participation in pipeline safety operations, including planning, monitoring, incident response and related employment and business opportunities.
- Seeking the NEB’s guidance on the use of the best available technologies used in federally regulated pipeline projects. This includes materials, construction methods and emergency response techniques.
Minister Rickford linked the improvements to pipeline safety to the Canadian government’s plan for Responsible Resource Development, which strengthens environmental protection, enhances Aboriginal engagement and streamlines the review of major resource projects to make the process more timely and predictable. These new measures enhance Canada’s already world-class pipeline safety system and build on the principles of incident prevention, preparedness and liability. As part of this commitment, a number of amendments to the National Energy Board Act are also proposed to improve transparency and operations of the Board and its enabling legislation.
"Our government is committed to enhancing Canada's world-class pipeline safety system,” said Rickford. “The new measures announced today demonstrate that we can benefit from resource development while increasing protection of the environment. Our government is once again demonstrating, through these new measures, its commitment to enhancing Canada's world-class pipeline safety system while engaging with communities across the country.”
Adapted from press release by Rosalie Starling