Natural Resources
May 28, 2015
Committed to Offshore Safety and Environmental Protection
Amendments Increase Absolute Liability to $1 Billion for the Offshore
An Act to Amend the Canada-Newfoundland and Labrador Atlantic Accord Implementation Newfoundland and Labrador Act received second reading today in the House of Assembly. As a result of proposed amendments, offshore operators will now be responsible for $1 billion in clean-up costs and damages from a major spill without any proof of fault or negligence; and the "polluter-pays" principle for the offshore will be established.
"The health and safety of the people who work offshore and the protection of the environment are of utmost importance to our government. We have taken significant steps to ensure offshore workers operate in a safe environment by establishing legislation for occupational health and safety in the offshore. Today's amendments to our liability regime further enhance protection of the offshore environment. Offshore operators will now be responsible for $1 billion in clean-up costs and damages from a spill without any proof of fault or negligence. Also, polluters will be held accountable and financially responsible in the unlikely event of a spill or other event."
- The Honourable Derrick Dalley, Minister of Natural Resources
The Provincial Government and the Government of Canada, in collaboration with the Government of Nova Scotia, the Canada-Newfoundland and Labrador Offshore Petroleum Board, Canada-Nova Scotia Offshore Petroleum Board and the National Energy Board, are working to strengthen the oil spill liability regime in Canada's offshore. Legislative amendments will ensure Newfoundland and Labrador is aligned with the Governments of Canada and Nova Scotia, both of which have passed an amended liability regime.
"Our government welcomes the progress of this important offshore legislation in Newfoundland and Labrador's House of Assembly. It is the result of a strong collaborative effort between our government and the governments of Newfoundland and Labrador, and Nova Scotia. These legislative changes underscore our commitment to protecting Canadians and the environment while supporting jobs and economic growth."
- The Honourable Greg Rickford, Canada's Minister of Natural Resources
In addition, these amendments will result in a more robust liability system for Newfoundland and Labrador, providing greater alignment with international offshore jurisdictions, including the United Kingdom, Norway, and the United States.
Additional information on the amendments can be found in the backgrounder below.
The petroleum industry as a whole continues to generate tremendous benefits to Newfoundland and Labrador. In 2014 alone there was $3.4 billion spent in the province, and close to 12,000 residents employed at peak.
QUICK FACTS
- An Act to Amend the Canada-Newfoundland and Labrador Atlantic Accord Implementation Newfoundland and Labrador Act received second reading today in the House of Assembly.
- As a result of proposed amendments, offshore operators will now be responsible for $1 billion in clean-up costs and damages from a spill without any proof of fault or negligence and the "polluter-pays" principle for the offshore will be established.
- Amendments will ensure Newfoundland and Labrador is legislatively aligned with the Governments of Canada, and Nova Scotia, both of which have passed an amended liability regime.
- In 2013, the Provincial Government implemented a comprehensive legislative Occupational Health and Safety regime for the province's offshore. It includes a worker's right to refuse, a worker's right to know, a worker's right to reprisal protection for raising health and safety concerns, as well as the joint allocation of responsibility among operators, employers, workers, and suppliers on matters related to occupational health and safety.
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Media contacts:
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Diana Quinton
Director of Communications Department of Natural Resources 709-729-5282, 631-8155 dianaquinton@gov.nl.ca |
Alexandra Lemieux
Press Secretary Office of the Minister Natural Resources Canada Ottawa 613-996-2007 |
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Media Relations
Natural Resources Canada Ottawa 613-992-4447 |
BACKGROUNDER
Amendments to Offshore Liability Legislation
The Provincial Government is committed to maintaining a standard of world-class environmental protection in the offshore through amendments to the Accord legislation that strengthen prevention of and response to offshore incidents. The amendments to the Accords legislation also apply to Canada and the Nova Scotia Accords, both of which recently received Royal Assent.
Amendments to the Canada-Newfoundland and Labrador Atlantic Accord Implementation Newfoundland and Labrador Act include:
Liability:
- Unlimited liability where fault is established;
- $1 billion liability where no fault is established;
- Increasing proof of financial capacity to $1 billion for the offshore;
- Increasing deposit required to $100 million or alternatively to $250 million through an industry fund for the offshore;
- Establishing the "polluter-pays" principle explicitly in legislation for the offshore; and
- Recognition of non-use value of environmental resources.
Transparency and clarity of operations:
- Ability for the CNLOPB to authorize prescribed Spill Treating Agents for offshore spills where there is a net environmental benefit;
- Public release of environmental and other documents related to the offshore;
- Information sharing with offshore regulators;
- Clarification of roles and responsibilities of operators and their contractors in the event of an offshore incident;
- Creation of an administrative monetary penalty regime, and ability for the Offshore Petroleum Boards to become Responsible Authorities under the Canadian Environmental Assessment Act 2012 for Environmental Assessments in Accord areas.
2015 05 28 4:55 p.m.