Mr. Speaker, it is my pleasure to rise to speak to C-46, An Act to amend the National Energy Board Act and the Canada Oil and Gas Operations Act. The government has chosen to name the bill as the pipeline safety act.
The measures to increase liability for pipelines are long overdue and very much welcome. However, there are some concerns that the measures may be inadequate, which I will speak to.
Crude oil petroleum products, natural gas liquids, and natural gas move through 71,000 kilometres of existing interprovincial and international pipelines. That does not include the three proposed pipelines to be regulated by the National Energy Board.
This bill purports to reinforce the polluter pays principle. It purports to confirm that the liability of companies operating pipelines would, first, be unlimited if an unintended or uncontrolled release of oil, gas, or other commodity is a result of their fault or negligence; and, second, be a limited liability to a maximum of $1 billion for pipelines with capacity to transport a minimum of 250,000 barrels of oil per day if there is no proof of fault or negligence.
The bill purports to obligate pipeline operators to maintain the financial resources necessary to cover potential liability. It also purports to authorize the National Energy Board to reimburse government entities for any costs incurred in a spill response.
It purports to improve responses to abandoned pipelines. That is a new measure, as the National Energy Board previously was not regulating abandoned pipelines. It also expands that responsibility to inquire into accidents involving abandoned pipelines. It purports to grant discretion to the National Energy Board to require companies to maintain funds for abandoned pipelines.
It also purports to empower cabinet to establish a pipeline claims tribunal in certain circumstances. The tribunal would examine and adjudicate compensation claims. It also authorizes spending to respond to spills, to establish the tribunals, and to pay for compensation awards that are issued by the tribunal. Furthermore, it authorizes the National Energy Board to recover funds paid out by the government as opposed to the company.
It expands on the polluter pays principle by imposing liability on operators for losses to non-use value of public resources. However, it limits the power of the federal Crown to pursue those, and there is some concern expressed at how seriously the National Energy Board will pursue that.
Mr. Speaker, I wonder if I could interrupt. The minister is having a conversation with another member and I am having a very hard time hearing myself talk. I wonder if they could be asked to move it outside.