Natural Resources
February 26, 2016

Strengthening Environmental Protection

New Offshore Legislation Comes into Effect Today

The Honourable Siobhan Coady, Minister of Natural Resources, announced today the proclamation of legislation to establish the "polluter-pays" principle and to strengthen liability provisions for the offshore. Also announced today were three new regulations necessary to fully implement the legislation including recovery of operating costs of the Canada-Newfoundland and Labrador Offshore Petroleum Board.

"Our government is committed to a regulatory environment that enhances offshore safety and environmental protection. The legislation ensures that companies operating in our offshore are prepared to cover their clean-up costs and that it is the polluter that pays for an incident and not taxpayers. Transparency is also improved since the legislation requires emergency planning, environmental plans and other documents to be made available to the public."
-The Honourable Siobhan Coady, Minister of Natural Resources

The legislation - An Act to Amend the Canada-Newfoundland and Labrador Atlantic Accord Implementation Newfoundland and Labrador Act - passed in the House of Assembly in spring 2015. Amendments and the associated regulations are the result of extensive collaboration with the Governments of Canada and Nova Scotia.

"The Government of Canada is committed to growing the economy and protecting the environment. The legislation coming into force today does just that, as it will strengthen environmental protection in our offshore industry, an industry that continues to bring considerable economic benefits, including jobs, to the Atlantic region."
- The Honourable Jim Carr, Canada's Minister of Natural Resources

Three new regulations are necessary to fully implement the legislation.

• The Financial Requirements Regulations define how applicants must demonstrate that they have the means to cover any claims in the event of an accident or spill.
• The Administrative Monetary Penalties Regulations provide the offshore regulatory boards with an additional tool to strengthen compliance and enforcement with regulatory requirements.
• The Cost Recovery Regulations establish a framework through which the Canada-Newfoundland and Labrador Offshore Petroleum Board will recover their operating costs from industry and reduce the cost for governments.

The legislation requires emergency planning, environmental plans and other documents to be made available to the public. This will ensure that the public can review and understand the steps operators will take to prevent and respond to incidents.

QUICK FACTS

• Proclamation of legislation was announced today to establish the "polluter-pays" principle and to strengthen liability provisions for the offshore.
• Three new regulations are necessary to fully implement the legislation: financial requirements, administrative monetary penalties and cost recovery.
• The legislation requires emergency planning, environmental plans and other documents to be made available to the public.
• Amendments and the associated regulations are the result of extensive collaboration with the Governments of Canada and Nova Scotia.
• Over the past three years (2013-2015), peak employment in Newfoundland and Labrador has averaged approximately 11,000 persons per year for Hibernia, Terra Nova, White Rose and Hebron. Additionally, those projects have spent close to $9 billion in this province over the same period.

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Media contacts:

Diana Quinton Director of Communications Department of Natural Resources 709-729-5282, 631-8155 dianaquinton@gov.nl.ca	Media Relations Natural Resources Canada Ottawa 343-292-6100
Laurel Munroe Office of the Minister of Natural Resources 343-292-6837

2016 02 26                              4:40 p.m.