WWF-Canada Calls for Expansion of Offshore Drilling Review

“After a thorough consultation and legal review we have determined that Canada’s offshore drilling requirements only deal with how and not whether or where an operator drills” said Stewart. “Unlike the U.S, Greenland and Norway, Canada does not regulate the leasing process and permits drilling directly within marine protected areas and environmentally sensitive areas”.

Stewart cited three reasons for an expanded review beyond that already announced by the NEB: first, any regulatory review should cover the entire decision-making process over offshore development, including leasing. As a result, the NEB may not have the mandate to extend the review as needed.

Secondly, any regulatory review should be national in scope. The NEB’s geographic scope may be fettered in Atlantic Canada where federal-provincial offshore petroleum boards hold sway.

Lastly, the NEB typically precludes the granting of intervenor funding to ensure a level playing field for all participants. Stewart maintains that leaders of Arctic communities must be fully supported in their desire to participate in the review and if the NEB cannot support such requests, an alternate model must be found.

WWF-Canada isn’t questioning the NEB’s role or the execution of its mandate but rather the fragmented regulatory framework it has been charged to deliver along with Offshore Petroleum Boards, Natural Resources Canada, Indian and Northern Affairs Canada and others.

In particular, WWF-Canada questions the design of an unregulated Arctic leasing process administered by Indian and Northern Affairs Canada which uses ministerial discretion acting upon industry requests to make fundamental decisions. As a result, oil companies sign contracts in excess of $500 million with the federal government and commit to significant exploration work BEFORE the NEB‘s regulatory process even starts.

Stewart praised the work of federal bureaucrats and the Inuvialuit working together as the Beaufort Sea Partnership, whom he said had tried to develop numerous innovative workarounds in the face of a broken regulatory system. However he stated that a lack of political and financial support had undermined the efforts of federal agents, the Inuvialuit and even industry to improve the system.

“Collectively it’s like the Beaufort Partnership has been given a 1970’s car to drive and, despite numerous requests for an upgrade, is still stuck with the same keys”, said Stewart. “And unfortunately those might be the keys to a Pinto.”

Stewart said Canada needs a consistent set of regulations that safeguard our environment, our coastal communities and our other marine industries AND that apply to leasing, exploration AND development from coast to coast to coast. If the NEB cannot choreograph such a nationally inclusive process, then a time limited commission of inquiry should be struck with the purpose of raising Canada’s oversight of offshore oil and gas management at least to standards set by the Arctic Council in 2009.

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For further information:

Craig Stewart’s Committee presentation complete with maps can be downloaded from:
http://wwf.ca/newsroom/

For further information contact:

Craig Stewart, Arctic Program Director, WWF-Canada, 613-232-2501; 613-852-1316, [email protected]

Paulette Roberge, Communications Specialist, WWF-Canada, 613-232-2504, 613-302-2519, [email protected]