Canada Introduces Energy Safety and Security Legislation

Joe Oliver, Canada’s Minister of Natural Resources, yesterday introduced the Energy Safety and Security Act. This Act is expected modernize safety and security for Canada’s offshore and nuclear energy industries, ensuring a world-class regulatory system and strengthening safety and environmental protections.

“The legislation builds on Canada’s strong record of safety and security in the nuclear and offshore energy industries. It will ensure Canada’s energy sector can continue to thrive,” a press release issued on the Natural Resources Canada website reads.

The Government of Canada worked in cooperation with the Provinces of Nova Scotia and Newfoundland and Labrador to develop amendments to the offshore liability legislation in each Accord Act, and each province is expected to introduce mirror legislation in the coming months.

Quick Facts

  • In the offshore oil and gas sector, the new legislation will raise the absolute liability for companies operating in the Atlantic offshore from $30 million to $1 billion and in the Arctic from $40 million to $1 billion. Liability for fault will remain unlimited.
  • The new legislation will amend the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act, Canada-Newfoundland Atlantic Accord Implementation Act, the Canada Oil and Gas Operations Act (COGOA) and the Canada Petroleum Resources Act (CPRA).
  • In the nuclear sector, the new legislation will increase the absolute liability limit of operators from $75 million to $1 billion and permit Canada to implement the International Convention on Supplementary Compensation for Nuclear Damage.
  • The new bill “C22” will replace the 1976 Nuclear Liability Act.

“We know economic prosperity and environmental protection can go hand-in-hand. The Energy Safety and Security Act does just that. This legislation will protect Canadians and our environment while supporting jobs and economic growth,” Joe Oliver, Canada’s Minister of Natural Resources, said.

Derrick Dalley, Minister of Natural Resources, Newfoundland and Labrador added: “The Government of Newfoundland and Labrador places the utmost importance on the safe and responsible development of our considerable offshore oil and gas resources. We have worked collaboratively with the Government of Canada to develop these amendments and look forward to passing equivalent legislation in our province.”

“Nova Scotia is proud of our collaboration with our federal partner to strengthen our offshore legislation. Nova Scotia’s offshore industry continues to grow and provide valuable economic benefits to our province so it is essential that we ensure the safety and security of the offshore,”  Andrew Younger, Energy Minister, Nova Scotia said.


Press Release, January 31, 2014



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