Natural Resources Committee on Feb. 5th, 2024

[The Chair, Liberal, George Chahal]

I call this meeting to order.

Welcome to meeting number 83 of the House of Commons Standing Committee on Natural Resources.

Pursuant to the order of reference of Tuesday, October 17, 2023, and the adopted motion of Wednesday, December 13, 2023, the committee is resuming consideration of Bill C-49, an act to amend the Canada-Newfoundland and Labrador Atlantic Accord Implementation Act and the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act and to make consequential amendments to other acts.

Since today's meeting is taking place in a hybrid format, I would like to make a few comments for the benefit of members and witnesses.

Please wait until I recognize you by name before speaking. For those participating by video conference, click on the microphone icon to activate your mic and please mute yourself when you are not speaking. For those on Zoom, you have the choice of interpretation at the bottom your screen of floor, English or French. For those in the room, you can use the earpiece and select the desired channel.

Although the room is equipped with a powerful audio system, feedback events can occur. These can be extremely harmful to interpreters and cause serious injuries. The most common cause of sound feedback is when an earpiece is worn too close to a microphone. We therefore ask all participants to exercise a high degree of caution when handling earpieces, especially when your microphone or your neighbour's microphone is turned on. In order to prevent incidents and safeguard the hearing health of the interpreters, I invite participants to ensure that they speak into the microphone into which their headset is plugged and to avoid manipulating the earbuds by placing them on the table away from the microphone when they are not in use.

As a reminder, all comments should be addressed through the chair. Additionally, screenshots or taking photos of your screen is not permitted.

In accordance with our routine motion, I am informing the committee that all remote participants have completed the required connection tests in advance of the meeting.

With us today for the first hour, we have Mr. Scott Tessier, CEO of the Canada-Newfoundland and Labrador Offshore Petroleum Board. We also have, from the Canada-Nova Scotia Offshore Petroleum Board, Barbara Pike, chair of the board; and Christine Bonnell-Eisnor, chief executive officer. All witness are appearing by video conference.

We'll begin with opening statements, but prior to doing so, I have a point of order by Mr. Falk.

Mr. Falk, go ahead on the point of order, please.

[Ted Falk, Conservative, Provencher, MB]

Thank you, Mr. Chair. It's just a very brief point of order.

I was wondering. We're well into the study of Bill C-49, and we have yet to receive a witness list of witnesses who will be providing testimony. Can you tell us if it's available? Can we have it now or...?

[The Chair, Liberal, George Chahal]

Thank you, Mr. Falk.

We have been preparing the meeting schedule for the upcoming few weeks, and as you know, this committee did approve a travel request last week, which was sent to our Liaison Committee and then to the House for further approval.

Regarding the scheduling of witnesses, we will make sure that it is all coordinated, but upon discussion with the clerk, we will provide you with that information, whether it's today or tomorrow, as soon as we can get it out to you.

[Ted Falk, Conservative, Provencher, MB]

Okay. Thank you for that, Mr. Chair. I wasn't asking for a schedule at this time. I just want a list of the witnesses who will be coming and presenting here at committee.

[The Chair, Liberal, George Chahal]

We will work with the clerk to get that out to all members.

[Ted Falk, Conservative, Provencher, MB]

I have one more question. Can you change the screens so that we have our witnesses on at least one of them?

[Jeremy Patzer, Conservative, Cypress Hills—Grasslands, SK]

Kind of like this screen here.

[Ted Falk, Conservative, Provencher, MB]

Typically, one of the screens has witnesses.

[The Chair, Liberal, George Chahal]

Mr. Falk, thank you for that.

Once the speakers begin speaking, that should occur. Because you have spoken, you're highlighted, but we will make sure that—

[Ted Falk, Conservative, Provencher, MB]

One of the screens has all the witnesses.

[The Chair, Liberal, George Chahal]

We'll have our technology folks make that happen.

[Ted Falk, Conservative, Provencher, MB]

That's wonderful. There we go.

Will that list be coming today then?

[The Chair, Liberal, George Chahal]

I'll confer with the clerk. It will be today or possibly tomorrow.

We'll now begin with opening statements.

Mr. Tessier, the floor is yours for five minutes. Please go ahead, sir.

[Scott Tessier, Chief Executive Officer, Canada-Newfoundland and Labrador Offshore Petroleum Board]

Thank you, and good afternoon.

As per the chair, my name is Scott Tessier. I am the chief executive officer of the Canada-Newfoundland and Labrador Offshore Petroleum Board, also known as the C-NLOPB. I have served in this role since 2013.

Thank you for inviting me and for accommodating my virtual participation. I would have preferred to have been with you in person, but the local weather has complicated travel plans. On that note, I wish my colleagues and all the people of Nova Scotia and others affected by this weekend's storm a safe recovery.

Newfoundland and Labrador is located in the traditional territories of diverse indigenous groups, and I acknowledge with respect the histories and cultures of the Beothuk, Mi'kmaq, Innu and Inuit.

Ten days from now will be the anniversary of the Ocean Ranger disaster. Forty-two years ago, the Ocean Ranger capsized during a severe winter storm, resulting in 84 lives lost. This terrible tragedy and two helicopter crashes in later years are deeply embedded in the culture of the C-NLOPB. The safety of offshore workers is paramount in all that we do. Those lost, their families and their loved ones are forever in our hearts and in our thoughts.

I was able to be in Ottawa when Bill C-49 was introduced last year. I am pleased to share with you our preparations for the regulation of offshore renewable energy projects. Our staff and our board are very excited about the proposed expansion of our mandate.

We are working closely with our international counterparts in several venues, including the International Regulators' Forum, the International Offshore Petroleum Environmental Regulators, the International Upstream Forum, the North Sea Offshore Authorities Forum and the Global Offshore Wind Regulators Forum.

Offshore regulators in Australia, Denmark, Ireland, the Netherlands, Norway, the United Kingdom, the United States and many other countries are undergoing the same expansion of their mandates as is proposed for ours under Bill C‑49, from petroleum to energy. We are fortunate to have strong working relationships with our international counterparts, so we are able to share lessons learned and best practices in renewable energy with one another as we have done for many years in the regulation of oil and gas.

We are also working closely with the CNSOPB and other Canadian regulators, and learning from the Newfoundland and Labrador provincial government's recent experience with onshore wind project selection. We are engaging with other Canadian entities such as Canada's Ocean Supercluster, Energy NL, Marine Renewables Canada and fishery stakeholders.

We are providing policy and regulatory advice to the federal government and the Government of Newfoundland and Labrador on land tenure and other considerations. We have been consulted throughout the development of the Atlantic Accord Implementation Act, and we continue to be engaged in the details of the regulatory framework as it is developed.

We are supporting the work of the committee and leading the regional assessment of offshore wind development for Newfoundland and Labrador, and we are available to them as a technical resource whenever and wherever requested. We are building renewable energy into our internal work planning and our training plans, and we are prepared to rebrand as the “Canada-Newfoundland and Labrador Offshore Energy Regulator”.

I was fortunate to participate in a fact-finding mission to Germany focused on offshore wind energy last summer. The challenges of energy security and the energy transition and the opportunities of renewable energy were on clear display, along with the importance of openness, collaboration and effective marine spatial planning.

For close to 40 years, the C-NLOPB has provided world class regulatory oversight of the oil and gas industry and the Canada-Newfoundland and Labrador offshore area, with a mandate that includes safety, environmental protection, resource management and industrial benefits. We stand ready for offshore renewable energy projects. Our experience and technical excellence and our collaborative and transparent approach are transferrable to the offshore renewable energy sector.

We support Bill C‑49, which is instrumental to an orderly energy transition through joint management and to the futures of Newfoundland and Labrador and the rest of Canada.

Thank you again. I look forward to your questions.

[The Chair, Liberal, George Chahal]

Thank you, Mr. Tessier, for your opening statement.

We'll now go to Christine Bonnell-Eisnor for a five-minute opening statement.

The floor is yours. Please, go ahead.

[Christine Bonnell-Eisnor, Chief Executive Officer, Canada-Nova Scotia Offshore Petroleum Board]

Thank you.

Hello. My name is Christine Bonnell-Eisnor, and I am the chief executive officer of the Canada-Nova Scotia Offshore Petroleum Board.

I am located in Dartmouth, Nova Scotia, and I would like to begin by acknowledging that I am in Mi'kma'ki, the traditional territory of the Mi'kmaq people.

Thank you for this invitation to come and speak to you today about Bill C-49, which outlines the accord act amendments required for the expansion of our mandate—

[Mario Simard, Bloc, Jonquière, QC]

Excuse me, I have a point of order.

Unfortunately, the interpreters are unable to continue. Ms. Bonnell‑Eisnor's audio quality is not good enough.

[The Chair, Liberal, George Chahal]

Ms. Bonnell-Eisnor, can you hold for a moment while we check with our interpreters?

We will suspend for a few moments.

[The Chair, Liberal, George Chahal]

Welcome back. We apologize for the delay.

Please go ahead, Ms. Bonnell-Eisnor, with your five-minute opening statement.

[Christine Bonnell-Eisnor]

Hello. My name is Christine Bonnell-Eisnor. I am the chief executive officer of the Canada-Nova Scotia Offshore Petroleum Board.

I am located in Dartmouth, Nova Scotia, and I would like to begin by acknowledging that I am in Mi'kma'ki, the traditional territory of the Mi'kmaq people.

Thank you for the invitation to come and speak to you today about Bill C-49, which outlines the accord act amendments required for the expansion of our mandate to include the regulation of offshore renewable energy. We support these amendments and are actively preparing for the completion of the bill and becoming the Canada-Nova Scotia offshore energy regulator.

The Canada-Nova Scotia Offshore Petroleum Board is the independent joint agency created by the Governments of Canada and Nova Scotia. Federally, we work with Natural Resources Canada and, provincially, with the Nova Scotia Department of Natural Resources and Renewables.

We have more than 30 years of experience regulating offshore oil and gas exploration and development activities in the Canada-Nova Scotia offshore area. We are the lead regulator and oversee all activities through the life cycle of an offshore oil or gas project, from exploration through development and, finally, to abandonment. We do this by recognizing that safety and environmental protection are paramount, and we make sure the operators who work in our offshore area do too.

When it comes to any offshore oil and gas activity that an operator proposes to conduct in the Canada-Nova Scotia offshore area, we go to great lengths to ensure that regulatory requirements are met before granting an authorization that would allow activities to commence. We implement effective monitoring programs to confirm that operators comply with these requirements during the execution of a program. We ensure compliance with the legislated requirements so that exploration and development of our offshore resources are completed in a safe and environmentally responsible manner.

We will do the same for offshore wind and other offshore renewable energy activities. Leveraging the similarities and managing the differences between oil and gas and offshore wind is critical to the success of delivering on an expanded mandate to regulate the broader energy industry in our offshore area. There are similarities in the geotechnical studies and the assessment of metocean conditions, the approach to risk management, environmental considerations and the need to coexist with indigenous communities, fisheries and other industries and ocean users.

The majority of what we do is directly transferable to offshore wind. We recognize that each section of the ocean is unique and each project is unique. The Canada-Nova Scotia Offshore Petroleum Board has the technical and regulatory experience and expertise necessary to regulate offshore renewable energy. We are committed to continuous improvement and invest in building and maintaining the technical competencies and expertise of our staff through training programs offered locally and globally.

We work closely and are in regular contact with the Canada-Newfoundland and Labrador Offshore Petroleum Board, the Canada Energy Regulator, other government departments and international regulators, and continue to learn from regulatory peers, including those who are already regulating offshore wind.

As we have for the past 30 years, the Canada-Nova Scotia Offshore Petroleum Board will continue to work with indigenous communities, fishers and other stakeholders to provide information about our regulatory role and to understand their unique and specific insights, which should be taken into consideration prior to making decisions. This remains a commitment as we transition to becoming the lead and life-cycle regulator of the offshore energy industry in the Canada-Nova Scotia offshore area.

The Canada-Nova Scotia Offshore Petroleum Board is committed, and we will be ready to be the lead regulatory agency and deliver on this new and expanded mandate. We are trusted and recognized for the high standards to which we hold the oil and gas industry accountable and will continue to deliver regulatory excellence as our mandate is expanded to include offshore renewable energy.

Thank you. I look forward to your questions.

[The Chair, Liberal, George Chahal]

Thank you for your opening statement.

We will now proceed to the first round of questions. I will be using two cards: Yellow means 30 seconds are left, and red means time's up.

We will start with Mr. Small from the Conservative Party of Canada for six minutes.

Go ahead, Mr. Small. The floor is yours.

[Clifford Small, Conservative, Coast of Bays—Central—Notre Dame, NL]

Thank you, Mr. Chair.

I'd like to thank the witnesses for taking part in this very important study of this legislation, Bill C-49, which amends our Atlantic accord.

Mr. Chair, I'll speak with Mr. Tessier. I have a couple of questions.

Mr. Tessier, this is a very exciting time for our province and for your board. I know that with you and the C-NLOPB we're in very good hands as you work to maintain Canada's excellent safety and environmental record in the offshore energy industry.

I understand that you attend the International Regulators' Forum. How often does that take place, Mr. Tessier?

[Scott Tessier]

I thank the member for the question through you, Mr. Chair.

I appreciate the kind words, as would our staff and our board

The International Regulators' Forum is a collective of the offshore regulators of 11 countries. At a minimum, we meet annually. We typically have a mid-year meeting on the margins of the Offshore Technology Conference in Houston, and we meet virtually as required to conduct the business of various working groups under that forum.

[Clifford Small, Conservative, Coast of Bays—Central—Notre Dame, NL]

Mr. Tessier, how important are stability and certainty of regulations worldwide? What has been your experience in that respect?

[Scott Tessier]

I think that both regulators and industry participants would universally and unanimously agree that stability and certainty are of paramount importance.