Fisheries Committee on Feb. 15th, 2011

[Rodger Cuzner, Liberal, Cape Breton—Canso, NS]

It's a negotiated fee, though, with ArcticNet.

[Anita Perry]

Negotiated as opposed to...?

[Rodger Cuzner, Liberal, Cape Breton—Canso, NS]

As opposed to ArcticNet coming and saying they're going to be in the area for this period of time, and they're going to offer to anybody, for half a million dollars.... Is that what it is? Is it the block of work that's necessary, and then you negotiate the fee?

[Anita Perry]

It's the block of work that's necessary. It's what we need.

[Rodger Cuzner, Liberal, Cape Breton—Canso, NS]

Could you give us an indication of what the range would be in terms of what you have spent in that area in the last number of years?

[Anita Perry]

In regard to our last year's project, in 2010 it was a $9-million contract for research activities. And then there was an additional $5.5 million, which covers our staff time and those kinds of things. But the contract is $9 million.

[Michael Peacock]

And then from Imperial Oil it was a similar figure. It was $11 million for 2009. And our in-staff costs were about $5.5 million also.

[The Vice-Chair, Liberal, Lawrence MacAulay]

Mr. Cuzner, you're out of time.

Mr. Blais.

[Raynald Blais, Bloc, Gaspésie—Îles-de-la-Madeleine, QC]

Thank you, Mr. Chairman. I thought there wasn't much more time, so I'm going to speak quickly as well.

First of all, I'm going to ask a brief question. Without the Amundsen, the costs to both your companies for the same scientific data would have been higher, would it not?

[Anita Perry]

I don't know. I really don't know.

[Michael Peacock]

In fact I agree with what Anita said, but I would say one other thing. Without the collaboration we wouldn't have got as much data as we have now.

[Raynald Blais, Bloc, Gaspésie—Îles-de-la-Madeleine, QC]

How does it work with Fisheries and Oceans Canada? Does the department have to give you an authorization to do exploratory work? Furthermore, does it subsequently have to grant you some kind of authorization for exploitation work? With regard to exploratory work, do you have to get the approval of the Department of Fisheries and Oceans in one way or another? I suppose that's the case, but I want to know how that works.

[Michael Peacock]

As soon as we picked up these licences, we were in discussions with the DFO. We have the CEAA. We have the Canadian Environmental Assessment Act requirements. And on top of that, we have the EIA requirement, the environmental impact assessment requirement, as part of any regulatory submission we're going to have to do to the NEB.

This is my understanding of the process. If we were to submit an EIA to the NEB as part of a hypothetical exploration well application, the NEB would then consult with the DFO on certain fisheries and oceans aspects of that environmental impact assessment.

[Raynald Blais, Bloc, Gaspésie—Îles-de-la-Madeleine, QC]

I only have a few seconds left, but I would like to point out that this is the nub of the potential problem, if there is a problem. By reason of the fact that you need Fisheries and Oceans Canada's authorization and that the department may eventually lease its boat, since that falls under the same budget, there's a kind of proximity.

I would like to know your response on that subject.

[Michael Peacock]

Again, Monsieur Blais, I would come back to the fact that our relationship was with ArcticNet. It was the collaboration with ArcticNet on this program.

[The Vice-Chair, Liberal, Lawrence MacAulay]

Thank you very much, Mr. Blais.

[Raynald Blais, Bloc, Gaspésie—Îles-de-la-Madeleine, QC]

There's your saviour.

[The Vice-Chair, Liberal, Lawrence MacAulay]

Mr. Donnelly.

[Fin Donnelly, NDP, New Westminster—Coquitlam, BC]

I'd like to continue on with the idea of a hypothetical situation or scenario.

My colleague Mr. Kamp mentioned environmentally responsible drilling. If I were to fast-forward into the future and paint a picture of drilling for oil in the Arctic, and there was an oil spill, how would this data you're collecting help in terms of dealing with that oil spill?

[Michael Peacock]

Much of the data is what we call metocean data. We need to understand the currents, which way the ocean is moving. It's about ice thickness. We need to understand the thickness of the ice. That marine data is very important for us.

We also need to understand the baseline levels in the Beaufort Sea. I wouldn't say we don't have any data on that, but we have limited data on baseline levels.

[Fin Donnelly, NDP, New Westminster—Coquitlam, BC]

Is it possible that any of the data you're collecting could draw you to the conclusion that the Arctic is not the place to drill for oil because the ecosystem, for instance, is too sensitive and it may not be able to recuperate from an oil spill?

[Michael Peacock]

Mr. Donnelly, again, I'm going to defer trying to answer that question until we've got the results from the National Energy Board's Arctic drilling requirements review. I think that will shed a lot of light on those requirements.

[Fin Donnelly, NDP, New Westminster—Coquitlam, BC]

I appreciate that. Again, it was in the realm of the hypothetical, so I'd appreciate you keeping it in mind.

Does that mean there is not a possible scenario where the data would show there are some places on the planet that are okay to drill if we use environmentally responsible drilling methods and some places where data would show it is not an okay place?

Are you saying it's too soon to tell, for instance, for the Arctic, that it may not be an appropriate place to drill?

[Michael Peacock]

Again, I'm sorry to be repetitive, but I think we have to wait until we've got the conclusions of the Arctic drilling requirement review that the National Energy Board is sponsoring.

[Fin Donnelly, NDP, New Westminster—Coquitlam, BC]

My final question is how long do you anticipate it taking before you can make that conclusion?