Pipeline Financial Requirements Regulations
Description of the objective:
Enabling Act: Pipeline Safety Act, which amended the National Energy Board Act and the Canada Oil and Gas Operations Act
The proposed regulations support the establishment of a ‘no-fault’ absolute liability regime for companies operating federally-regulated pipelines to ensure these companies are adequately prepared to cover response, remediation costs, and liability claims, in the event of an incident resulting from their pipelines. The regulations establish:
- classes of pipeline operators and associated absolute liability limits;
- types of financial instruments the National Energy Board (NEB) could order a pipeline operator to use to meet the financial resource requirement;
- the amount of financial resource requirement that pipeline operators must hold in a readily accessible form to allow for a quick response to a spill incident; and
- basic parameters for an industry-led pooled fund that pipeline operators could choose to establish and use to meet part of their respective financial resource requirement.
Indication of business impacts:
There are no expected business impacts.
Public consultation opportunities:
Engagement activities were undertaken with industry and other stakeholders from December 2015 – April 2016.
The draft regulations were pre-published in Part I of the Canada Gazette on October 8, 2016, for public comment. Final regulations will be published in Part II of the Canada Gazette in 2018 prior to coming into force along with an explanation as to how public comments on the pre-published version of the regulations were addressed.
Director, Canadian Oil, Refining and Energy Security, Energy Sector
580 Booth Street
Ottawa, Ontario K1A 0E4