Greg Rickford on Energy Safety and Security Act

Mr. Speaker, under the proposed changes, before any offshore drilling or production activity can take place and during any activity, the proponent must provide evidence that it can actually cover the minimum $1 billion financial liability. The expectation is that the proof of financial resources would at least be equal to the absolute liability limit. Of course, there would be a range of options for proving financial resources, including cash on hand, credit bonds, fixed assets, and insurance. Also, the financial resource requirements would be an ongoing condition of a licence.