Evidence of meeting #16 for Natural Resources in the 40th Parliament, 3rd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was neb.
A recording is available from Parliament.
9:15 a.m.
Chair and Chief Executive Officer, National Energy Board
It was in shallow waters in the Mackenzie Delta.
9:15 a.m.
Chair and Chief Executive Officer, National Energy Board
There is still ice, and there is a fragile environment. At the time, we did ask for environmental protection plans--
9:15 a.m.
Conservative
The Chair Conservative Leon Benoit
Thank you, Mr. Bagnell.
We go now to the Bloc Québécois, to Madame Brunelle for up to seven minutes. Go ahead, please.
9:15 a.m.
Bloc
Paule Brunelle Bloc Trois-Rivières, QC
Thank you, Mr. Chair. If you have no objections, I would like to share my allotted time with my colleague Mr. Bellavance.
Good day, Mr. Caron, gentlemen.
Before it can begin drilling operations, a company must comply with a three-step security plan. As for your emergency response plans, your standards seem a little unclear. The regulations stipulate that these contingency plans must “provide for coordination measures with any relevant municipal, provincial, territorial or federal emergency response plan.”
How does this actually work? Are these real requirements? Is there a specific emergency response plan in place? Does this emergency response plan ever get reviewed? Should any of the procedures be revised? The public is understandably concerned and wants to know where things stand.
For example, I live near a nuclear power plant. In Quebec, emergency response plans prepared by the Department of Public Safety are reviewed regularly. These plans include everything from communications to salt pills. What kind of plans does the NEB have in place?
9:15 a.m.
Chair and Chief Executive Officer, National Energy Board
When a company files an application with the NEB for authorization to drill, the act and the regulations that you cited stipulate that the company must submit a safety plan, an environmental protection plan and an emergency response plan to address any incidents like the one that just happened.
It would be impossible for NEB regulations to cover every activity that could potentially affect the environment when drilling at a given depth. Therefore, the philosophy when drafting regulations is to regulate with an eye to results.
The aim of regulations is to provide a safe program, to protect the public and to protect the environment. We have a responsibility to evaluate these plans from a critical and professional standpoint, with the help of NEB experts. We must be satisfied that specific standards are being met, for the public's sake.
9:20 a.m.
Bloc
Paule Brunelle Bloc Trois-Rivières, QC
Obviously, no one expects a disaster to strike and often, it strikes where we least expect it to. In the wake of the explosion involving the Deepwater Horizon drilling platform, do you have any plans to amend your regulatory framework? Have you given any thought to doing that?
9:20 a.m.
Chair and Chief Executive Officer, National Energy Board
Yes indeed. Two days ago, on May 11, we announced a comprehensive review of our safety and environmental measures for underwater drilling. For now, we are letting US authorities focus on what's important, namely stopping the oil leak and protecting the environment.
In the coming weeks and months, we will look at the events that transpired, and why they happened and how this kind of accident can be prevented. Any information gleaned from this review will be incorporated into our regulations which, if necessary, will be strengthened.
9:20 a.m.
Bloc
Paule Brunelle Bloc Trois-Rivières, QC
One thing troubles me a little. The NEB's vision is described as follows in your Strategic Plan 2010-2013: “The NEB is active and effective in Canada's pursuit of a sustainable energy future”. As I see it, that means the NEB will try and ensure adequate energy supplies. Will the NEB try and achieve that goal regardless of circumstances and setting aside regulations and other problems? Given these objectives that, in my view, are more of a commercial nature, I'm concerned about the environment.
9:20 a.m.
Chair and Chief Executive Officer, National Energy Board
You correctly quoted the NEB's vision statement. Our strategic plan is a one-page document that must be read it its entirety. You will note that our two first strategic goals are to ensure a safe and secure energy sector and to protect the environment.
As part of our vision, we want to assure Canadians that they can continue to consume whatever form of energy they want, and to enjoy the quality of life they have always enjoyed. This is all part of our strategic plan.
9:20 a.m.
Bloc
9:20 a.m.
Chair and Chief Executive Officer, National Energy Board
This is an ongoing process. Each day, each week and each month, we are in touch with U.S. officials, with the Minerals Management Service, with British authorities and with Norway.So then, the learning process is ongoing.
When a major incident like this one occurs, we have a duty to pause, to take stock of the incident and to incorporate any lessons learned into our regulatory model.
9:20 a.m.
Bloc
André Bellavance Bloc Richmond—Arthabaska, QC
Generally speaking, when was the last time that you carried out a review of this nature?
9:20 a.m.
Chair and Chief Executive Officer, National Energy Board
I would have to say it was in 1999. We updated our pipeline regulations, because the NEB also regulates natural gas and oil pipelines in Canada. We are responsible for safety in this area and for protecting the environment. We updated our pipeline regulations in 1999 to make them results oriented and to ensure that, as a regulator, we remain responsible for safety issues and for protecting the environment as well as workers.
9:20 a.m.
Bloc
André Bellavance Bloc Richmond—Arthabaska, QC
However, with respect to deep sea drilling operations—
9:20 a.m.
Chair and Chief Executive Officer, National Energy Board
This is the first time.
9:20 a.m.
Bloc
André Bellavance Bloc Richmond—Arthabaska, QC
And yet, you talk about drawing some lessons from the disaster now occurring in the Gulf of Mexico. I think the situation is now completely out of control. Quite frankly, I thought that in 2010, we had the technological know-how, not to prevent accidents—because it's impossible, unfortunately, to prevent all accidents—but to avoid this kind of environmental disaster. Perhaps I was naive, but we do not have that ability. I think back, for example, to 1988 when a similar disaster occurred off the coast of Scotland. I imagine the NEB looked into that incident. The British government of the day decided to suspend all operations until the results of the investigation were released.
Has the NEB had any similar thoughts when considering the disaster in the Gulf of Mexico?
9:20 a.m.
Chair and Chief Executive Officer, National Energy Board
We reflect upon our current situation. In the past 10 years, the board has authorized the drilling of one well. So then, there was no need to do an overall assessment. There is a possibility that the oil sector will want to invest in the Beaufort Sea and carry out some operations as of 2014.
As you pointed out, given the disaster unfolding in the Gulf of Mexico, it is critically important that we take a look at what is happening. And so, we are conducting a comprehensive review of our requirements, to be certain that we understand why the disaster happened and how it can be prevented. Then, we will adjust our regulations accordingly.
9:25 a.m.
Bloc
André Bellavance Bloc Richmond—Arthabaska, QC
My understanding is that you are taking a precautionary approach. Before authorizing any new drilling operations, you at least want to have a clear understanding of what is taking place right now.
9:25 a.m.
Conservative
The Chair Conservative Leon Benoit
Merci, Monsieur Bellavance.
Now we go to the New Democratic Party, to Mr. Cullen for up to seven minutes. Go ahead, please.
9:25 a.m.
NDP
Nathan Cullen NDP Skeena—Bulkley Valley, BC
Thank you, Chair.
Thank you to our witnesses.
I agree with our chair that this is critical for Canadians. I'll try to keep my questions short so that we can have some dialogue.
Is it true to say that globally, and particularly as well for Canada, we are moving from conventional, relatively known sources of oil increasingly towards unconventional, deeper, more far-flung projects, as we seek oil energy across the globe?
