There are three statutes that affect the north, particularly the Beaufort Sea. There is the Canada Oil and Gas Operations Act, which sets liability at $40 million. There is also the Arctic Waters Pollution Prevention Act , which imposes an additional $40 million in compensation. The department manages those two regimes through the National Energy Board. In addition to that,
the National Energy Board requires the operator to show financial capability for assuming the severe liability. And on a third regime, the Inuvialuit Final Agreement also provides for an absolute and limitless liability. They turn to the National Energy Board to evaluate the worst-case scenario, along with the oil company's projections of the oil and gas reservoirs that they may encounter in the drilling. Again, they have to show financial capability to meet that liability of the worst-case scenario. Recently, in the Beaufort Sea, the last well had to show its financial capability to meet a liability up to $1 billion.