Lions Gate Articles

Oil and Gas Regulatory Compliance

6/12/2018

The National Energy Board (NEB) Onshore Pipeline Regulations (OPRs) sates that NEB regulated companies are to comply with various security requirements, including requirements under Canadian Standards Association (CSA) Standard Z246.1 (Security Management for Petroleum and Natural Gas Industry Systems), as per Section:

“4. (1)     When a company designs, constructs, operates or abandons a pipeline, or contracts for the provision of those services, the company shall ensure that the pipeline is designed, constructed, operated or abandoned in accordance with the applicable provisions of (a) these Regulations;

(b) CSA Z276, if the pipeline transports liquefied natural gas;

(c) CSA Z341 for underground storage of hydrocarbons;

(d) CSA Z662, if the pipeline transports liquid or gaseous hydrocarbons; and

(e) CSA Z246.1 for all pipelines.”

in the OPRs.  CSA Standards are not impacted by amendments to any regulation.

Proposed Bills C-48 (The Oil Tanker Moratorium Act) and C-69 (Act to enact the Impact Assessment Act and the Canadian Energy Regulator Act) have been sent to the Senate for readings and have yet to be promulgated.  Currently, this has no impact to the existing OPRs, with ongoing compliance inspections being carried out by the NEB.

Upon Bill C-69 coming into force, the National Energy Board Act (NEB Act) will be repealed and replaced by the Canadian Energy Regulator Act (CER Act). Bill C-69 will also reincarnate the NEB as the Canadian Energy Regulator (CER), which will continue to be based in Calgary.

CAN/CSA Z 246.1 – Security Management for Petroleum and Natural Gas Industry Systems

CAN/CSA Z276.18 – Liquefied natural gas (LNG) Production, storage, and handling

  • To confirm, NEB regulated companies will still be required to develop, implement and maintain a security management program that anticipates, prevents, manages and mitigates conditions that could adversely affect people, property or the environment.

CAN/CSA Z246.2 – Emergency Preparedness and Response for Petroleum and Natural Gas Industry Systems.

  • NEB regulated companies are required to develop, implement and maintain an emergency management program that anticipates, prevents, manages and mitigates conditions during an emergency that could adversely affect property, the environment or the safety of workers or the public.

Alberta Energy Regulator Directive 071: Emergency Preparedness and Response Requirements for the Petroleum Industry

  • Part A sets out planning requirements for emergency response plan (ERP) development that licensees are required to meet in order to gain AER approval for the ERP. Part A also contains the requirements for a corporate-level ERP.
  • Part B sets out the requirements that licensees are required to meet in order to effectively implement their plans and respond to an incident or emergency. Part B will be assessed through the AER’s Emergency Response Assessment Program, exercise involvement, post-incident investigations, and field inspections.

Whether you are a level one or level two regulated oil or gas company, you will want to ensure you meet the necessary compliance requirements within a fully functioning security management program and emergency response plan.

Lions Gate also foresees the advantage of examining obligations through the lens of occupier liability, recognizing that by advancing to compliance sooner rather than later, companies will reduce exposure to litigation, and protection of reputation and brand will be optimized.

References:

The National Energy Board Act – https://laws-lois.justice.gc.ca/eng/acts/n-7/index.html

National Energy Board Onshore Pipeline Regulations – https://laws-lois.justice.gc.ca/eng/regulations/SOR-99-294/index.html

CAN/CSA Z 246.1 – Security Management for Petroleum and Natural Gas Industry Systems

CAN/CSA Z276.18 – Liquefied natural gas (LNG) Production, storage, and handling

CAN/CSA Z246.2 – Emergency Preparedness and Response for Petroleum and Natural Gas Industry Systems.

Alberta Energy Regulator Directive 071: Emergency Preparedness and Response Requirements for the Petroleum Industry

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