Mr. Speaker, before our interruption for question period we were discussing Bill C-6 which deals with the transfer to the National Energy Board of the administration and regulation of activities on frontier lands which were previously administered by the Canadian Oil and Gas Lands Administration or COGLA.
Industry needs to have certain and clear sets of rules by which to operate. It needs to be confident that regulation will be carried out in a professional and highly competent manner. We believe these qualities are now exemplified in the National Energy Board.
For more than 30 years the National Energy Board has been an effective regulatory agency. The board's experience in reviewing proposals for complex energy projects has provided it with extensive expertise in environmental, socio economic and technical areas. With the addition of highly qualified and dedicated
staff from the former COGLA, the board is well placed to take on the authority to regulate frontier oil and gas.
We should also emphasize that this reorganization does not mean that the government places less importance on our frontier responsibilities.
In recent years companies have shifted their attention to other regions and adopted a go slow attitude in the Canadian frontiers. This was done primarily as a result of the poor economics of developing these high cost resources in an environment of lower oil prices.
In these circumstances it is all too easy to neglect our frontiers or to conclude that they are too costly to ever attract serious and continuing exploration activity. That, however, is not our intention.
Canada's frontiers north of 60 and off shore hold more than two-thirds of Canada's remaining conventional oil and natural gas resources. Whatever the short-term outlook these areas will be a significant and growing part of our energy future. Consequently, effective regulation of Frontier Oil and Gas exploration is a priority and because it is important the federal government will retain a meaningful role in the frontiers.
The crown is, after all, the resource owner and has an obligation to ensure that this resource is managed in the best manner possible for the benefit of the Canadian people.
The amendment proposed to Bill C-6 do not transfer the full range of ministerial responsibility to the National Energy Board. In keeping with good regulatory practice the government will retain the responsibility to establish the overall policy framework for frontier petroleum development. The crown also maintains the power to grant the legal permission or exclusive rights to companies which in some cases involve some discretion.
It would not be appropriate to transfer these powers to a regulatory body.
Specifically the federal government will retain authority to publicly tender rights to explore, issue exploration production and development licences, approve benefit plans, and set and collect royalties.
We are serious about our responsibilities to the Canadian public with respect to frontier oil and gas development. Key COGLA staff have been retained in both the Departments of Natural Resources and Indian Affairs and Northern Development to help us look after these responsibilities.
Mr. Speaker, at this juncture we would like to bring to your attention some other elements of the bill before you. Although unrelated to the regulation of petroleum activities on frontier lands two areas of legislative amendment relate to the existing operation of the National Energy Board and were identified as requiring urgent attention.
Bill C-6 grants certain NEB staff inspection and enforcement powers related to pipelines. By providing mechanisms for speedier decision-making these amendments will help ensure the safety of the public and the protection of property and the environment.
Bill C-6 also provides the NEB with the flexibility to ease the regulatory burden for small pipeline companies.
In conclusion, the restructuring proposed in Bill C-6 makes sense from all possible vantage points. In particular, at a time in which Canadians are looking carefully for the ways and means to restore common sense to our public institutions, it is an important and timely proposal.
Just as importantly the quality and integrity of the regulatory process will be maintained. After all the frontiers are part of Canada's energy future.