Natural Resources Committee on June 15th, 2010

[Ron Bowden]

We've been discussing with the coast guard for--

[Geoff Regan, Liberal, Halifax West, NS]

You have ongoing--

[Ron Bowden]

--what kind of cooperation we can actually send down to the gulf.

[Geoff Regan, Liberal, Halifax West, NS]

Thank you.

So let me ask this of the officials. None of the officials here could answer the question of what caused the Deepwater Horizon explosion and disaster, so can you say with 100% certainty that a blowout will not happen in Canadian waters?

[The Chair, Conservative, Leon Benoit]

Mr. Corey, go ahead.

[Mark Corey]

Thank you, Mr. Chair.

If I could come back to the first question, I think the definitive answer will come with the report of the national commission on the BP Deepwater Horizon oil spill and offshore drilling, which was commissioned on May 22 by President Obama. It's being chaired by Senator Bob Graham and the former EPA adminstrator, William Reilly. We expect that report will be issued in about six months.

We've seen a lot of reports in the media, but they seem to change from time to time. What we need is the definitive report before we actually decide what the actual cause was and what the lessons learned will be. But we are watching very carefully as it unfolds.

[Geoff Regan, Liberal, Halifax West, NS]

How many extremely large spills of 150,000 barrels or greater have there been before the Deepwater Horizon in the history of offshore drilling, and were there lessons learned from each one?

[The Chair, Conservative, Leon Benoit]

Mr. Corey, when you find that answer you can give it.

[Mark Corey]

I do have it here, actually. We've had one major oil spill in Canada. It was in November 2004. There was an oil spill at the Terra Nova site in Newfoundland and Labrador. Approximately 1,000 barrels of oil were spilled. It was due to a mechanical failure in an oil and water separator and a faulty chemical injection system. Production was halted for 21 days. There was an investigation and a cleanup.

That's the only major oil spill we've had to date in Canada in the offshore.

[Geoff Regan, Liberal, Halifax West, NS]

Okay. I was looking internationally, but that will do for now.

Monsieur Grenier, it's nice to see you again. Let me ask you, how many spills do you deal with on an annual basis in Canada? Approximately how many spills are there a year in Canada?

[D/Commr René Grenier]

I think we have over 1,500 spills that we respond to yearly. They're not all major. Actually, they're--

[Geoff Regan, Liberal, Halifax West, NS]

Can you give me an idea of how much oil is spilled on average in each case, and how many charges are laid annually as a result?

[D/Commr René Grenier]

That would be a difficult one to....

[Chantal Guenette, Manager, Environmental Response, Canadian Coast Guard, Department of Fisheries and Oceans]

Most of these spills are probably in the order of litres rather than tonnes, and many are from small vessels.

In terms of the charges laid, the coast guard is not the regulatory agency that lays charges with respect to spilled oil.

[Geoff Regan, Liberal, Halifax West, NS]

Mr. Corey, I'm glad that you're raising your hand, because I'd like to know, how strict would you say your regulatory regime is?

[Mark Corey]

Our regulatory regime is among the best in the world. It's very strict. We have the three boards. They're independent, arm's-length.

And actually, I think we could provide more information on smaller spills.

[Geoff Regan, Liberal, Halifax West, NS]

Okay, but I guess the point I'm making here is that in spite of that, we have 1,500 small spills a year, and you're telling me we have a strict regulatory regime.

[Mark Corey]

We do.

[Geoff Regan, Liberal, Halifax West, NS]

Why don't you reinforce that just to explain how we still have so many spills?

[Eric Landry, Director, Frontier Lands Management Division, Petroleum Resources Branch, Department of Natural Resources]

In terms of the number of spills, under the legislation each spill needs to be reported to the regulators, the three boards: the National Energy Board and the two offshore boards. These spills have to be tracked, and the offshore boards could provide the details in terms of the number of spills and the frequency of spills as they pertain to oil and gas operations.

[Geoff Regan, Liberal, Halifax West, NS]

How's my time, Mr. Chairman?

[The Chair, Conservative, Leon Benoit]

You have a minute, Mr. Regan.

[Geoff Regan, Liberal, Halifax West, NS]

Good.

Mr. Corey, in your view, how prepared was the U.S. for the disaster in the gulf, and does the fact that we're now in the 58th day of this disaster cause you concern?

Secondly, what major steps have been taken in the last two months as a result of what happened in the gulf? We've seen your deck, but I'm talking about actual steps, as opposed to study or review or reconsideration of things.

[Mark Corey]

Mr. Chair, we would be hesitant, really, to comment on the situation in the U.S. right now until we know more about it and see the study.

In terms of steps, though, as I mentioned, there are a number of specific things. On May 11 the NEB announced that they were starting a comprehensive review of Arctic safety and environmental offshore drilling requirements; on May 12 Newfoundland and Labrador appointed Captain Mark Turner to do an independent assessment of offshore oil spill prevention and response in Newfoundland and Labrador; on May 13 NRCan and the Nova Scotia Department of Energy, the two ministers, confirmed that the moratorium on oil and gas exploration on Georges Bank was extended—

[Geoff Regan, Liberal, Halifax West, NS]

Okay, I've read that. I appreciate that very much.

The point I'm looking for is whether an action or a change in practice and procedure has been taken.