Scott Tessier, Chair and CEO · 2018-03-27 · the OHS regime for the Offshore Area. ... • Paris Agreement on Climate Change signed April 2016 • Binding agreement with global

Objectives and Expectations of Local

Stakeholders in the Resource Development of

Frontier Areas

Scott Tessier, Chair and CEO

24-26 October 2016 » St. John’s, Newfoundland and Labrador

SAFETY MOMENT: Working in the harshest environment in the world demands the highest regard for safety

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• Everything we do at the C-NLOPB is seen through the lens of the Ocean Ranger, the Universal Helicopter crash of 1985 and Cougar 491

Ocean Ranger, 1982 84 lost lives

Cougar 491, 2009 17 lost lives

Hibernia spill, 2013 6000 litres from the offloading facility

Terra Nova spill, 2004 1000 barrels of crude

Universal Crash, 1985 6 lives lost

Cougar Near Miss, 2011, descent halted 38 ft from water

Collision, 2011 Maersk Detector and GSF Grand Banks

Person Overboard, 2015 West Hercules

Regulator for Canada-Newfoundland and Labrador Offshore Area

• World-class, arm’s length regulator with a relatively broad mandate

• Established in 1985 under the Atlantic Accord to provide regulatory oversight in four areas:

Safety Environment Resource Management (includes Exploration) Industrial Benefits

• Effective agent of independent joint management for governments

• One of three Canadian offshore regulators, along with CNSOPB and NEB. No

jurisdiction in the Arctic

• Board reports to federal and provincial Ministers of Natural Resources, plus Minister of Service NL

• 7 Board Members: Chair and CEO (jointly appointed, along with designation of Vice-chair), 3 federal appointees and 3 provincial appointees (currently 1 provincial vacancy and 1 federal vacancy)

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Our Role

• The Board’s role is to exercise regulatory oversight of Operators’ activities

• The Atlantic Accord Acts place ultimate responsibility for safety and environmental protection on the Operators

• Operators are required to mitigate risk to “as low as is reasonably practicable”

• Regulatory tools include legislation, regulations, guidance and operational

conditions imposed on specific activities

• Enforcement and compliance tools include notices of non-compliance, orders, revoking of authorizations, prosecution and administrative monetary penalties

• The Atlantic Accord Acts have enabled the Board to effectively regulate the industry for nearly 30 years

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Offshore Safety and Environmental Protection - Our Highest Priority

• Operators must have a Safety Plan, Contingency Plan that includes an Oil Spill Response Plan, Ice Management Plan

• Oversight activities include audits and inspections; reviews of Operators’ daily reports, incident reports,

complaints and Workplace Committee meeting minutes; and

Quarterly Meetings with Operators

• The C NLOPB has Special Oversight Measures for higher risk

drilling programs such as high pressure and high temperature (HPHT) wells, ultra deepwater wells, and harsh environment drilling where there is increased potential for a well control incident to occur.

• Bi-annual Safety Forums

• Bi-annual meetings with Workplace Committees

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The Public Environment

Low Oil Prices

• Industry adjusting with cost cutting – layoffs and less activity globally

• Need to ensure industry cost-cutting does not adversely affect safety or environmental protection – a period of ‘hyper vigilance’

• Atlantic Accord is silent oil prices. ALARP at $40 per barrel same as ALARP at $100 per barrel

Public Expectations

• Safety and Environmental Protection are paramount

• Atlantic Accord Requirements for first consideration for Newfoundlanders and Labradorians and “full and fair opportunity” on a competitive basis

Governments

• Board decisions to be made in the public interest

• Boards to operate efficiently and effectively

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Governments - Stronger, Modern Legislation and Regulations

Offshore Health and Safety Legislation • Legislation and transitional regulations came into force in December 2014. Describes

the OHS regime for the Offshore Area. Energy Safety and Security Act • Legislation that increased requirements for financial responsibility, introduced an

administrative monetary penalty regime, gave Boards the ability to cost recover expenditures from industry and provided regulatory boards with the power to allow the use of certain spill treating agents.

Frontier and Offshore Regulatory Renewal Initiative (FORRI) • Government initiative to modernize frontier and offshore petroleum regulations by

adopting a goal oriented approach where appropriate. The modern regulations will then be consolidated into a single regulation called a Framework Regulation.

• C-NLOPB staff participate on the Project Team and technical working groups for each of

these regulatory initiatives.

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New Federal Priorities

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Climate Change

Federal Environmental Assessment Review

Climate Change

Climate Change is high on the Federal Government’s list of Priorities

• Paris Agreement on Climate Change signed April 2016

• Binding agreement with global participation

• Aim at limiting global warming to 2 degrees

• Not time limited (no expiration)

• Countries to prepare national targets

• Progress to be measured and reported (from 2018)

• Federal Government announces plans for Carbon Tax (October 2016)

C-NLOPB includes a requirement for proponents to include climate change in environmental assessments

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Federal Environmental Assessment Review

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The Minister of Environment and Climate Change has established an Expert Panel to review federal environmental assessment processes. The Expert Panel intends to engage broadly with Indigenous people, key stakeholders, and all Canadians.

The C-NLOPB conducts environmental assessments under the Atlantic Accord Acts

C-NLOPB and other agencies meeting with the panel in Ottawa in November.

How C-NLOPB is Meeting Stakeholder Expectations

Strategic Plan

• Establishes our vision, principles, goals and priorities • Stakeholders and the Board itself can assess decisions and actions against the plan • Transparency • Accountability

Annual Work Plan

• Vision, goals and priorities reflected in the Annual Business Plan • Management of yearly activities • Efficient and effective implementation of our mandate

Information Sharing and Public Reporting • Website, Social Media, Annual Report, Speaking Engagements, Media Coordination with other regulators • International Regulators Forum • International Offshore Petroleum Environmental Regulators • Well s Working Group for the North Sea Offshore Authorities Forum • Canada Nova Scotia Offshore Petroleum Board • National Energy Board

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Thank You / Questions

Website: CNLOPB.CA

Twitter: @CNLOPB

Inquiries: [email protected]

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