Canada Revamps Pipeline Safety Rules Ahead Of New Projects

Posted by Joseph R. Fonseca
Wednesday, May 14, 2014

 

Canada unveiled new rules on Wednesday to enhance pipeline safety and spill response, ahead of the development of new projects proposed to carry crude from Alberta's oil sands to coastal ports for export.

The new legislation will give Canada's energy regulator, the National Energy Board (NEB), more power to enforce compliance on safety and the authority to step in to lead spill response if a company is unwilling or unable to do so.

Companies will also now be held liable, up to C$1 billion ($917 million), for all spills or incidents on their lines, whether or not they are at-fault or negligent, putting the onus on owners to ensure safe operations.

"This approach is called 'absolute liability' and it will apply to all federally-regulated pipelines," said Natural Resources Minister Greg Rickford at a press conference in Vancouver.

Companies found to be at-fault or negligent in an incident will continue to face unlimited liability.

The new measures, which include a revamp of some legislation dating back to the 1950s, build on a pledge last year to require all companies operating major crude oil pipelines in Canada to have C$1 billion on hand to fund spill clean ups.

In the case of a severe spill or incident, the government said it will backstop the initial cost of clean-up and remediation, with the NEB responsible for recovering those additional funds from pipeline companies.

"The 'polluter pays' principle will be enshrined in law so that it is clear Canadian taxpayers are not expected to foot the bill in the event of a major oil spill," said Rickford.

The changes come a day after Canada moved to strengthen its response plans for oil spills at sea and just weeks ahead of its final ruling on Enbridge Inc's Northern Gateway pipeline project, which is expected in mid-June.

The controversial pipeline, which would carry crude from the oil sands hub ofEdmonton, Alberta, to a deepwater port in northern British Columbia, is one of three major domestic projects currently on the books.

Kinder Morgan is planning to expand and twin its Trans Mountain pipeline, which also carries oil to the Pacific coast, and TransCanada Corp has proposed a line to carry crude east to refineries in Quebec and New Brunswick.

The government has pushed hard to reassure Canadians that it has policies in place to regulate those proposed projects, which would allow Canadian oil producers, now dependant on U.S. markets, to tap directly into more lucrative foreign markets.

But the projects are fiercely opposed by many environmentalists and aboriginal groups, which fear spills and the possibility that pipelines will hasten development of the Alberta oil sands and exacerbate climate change.

In an effort to address some of those concerns, the government pledged to involve aboriginal communities in pipeline safety plans, and encourage more collaboration with industry.

Regulators are also carrying out more pipeline inspections and audits each year, and will be able to fine companies that do not comply with requirements up to C$100,000 per day.

There are about 73,000 kilometers (45,360 miles) of federally-regulated pipeline inCanada, transporting more than C$100 billion worth of oil, gas and petroleum products each year.

(Reporting by Julie Gordon; Editing by Bernard Orr)

($1 = 1.0906 Canadian Dollars)

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter June 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Legal

Traffic Separation Schemes off Western Australia

On 1 December 2016 two new Traffic Separation Schemes (TSS) will come into effect off the south-west coast of Western Australia. Australia’s proposal to establish

Berthing Policy for Dry Bulk Cargo for Indian Ports Unveiled

Ministry of Shipping has formulated a new Berthing Policy for Dry Bulk Cargo for all Major Ports which will come into effect from 20th August, 2016. The objective

Statoil’s 50 years to be Recorded

Statoil has decided to launch a large project to write the story about the company for its 50th anniversary in 2022. The University of Oslo has been chosen the

Finance

VEB Guarantees $3 Bln of Yamal LNG Debt

Russian development bank VEB said on Friday it had provided a guarantee for $3 billion of debt to the Yamal liquefied natural gas (LNG) project, led by Russian gas firm Novatek.

US Oil Drillers Cut Rigs after 3 Weeks of Additions

U.S. oil drillers cut rigs this week for a 20th week this year after three weeks of additions, according to a closely followed report on Friday, as crude prices

World Stocks Tumble as Britain Votes for EU Exit

Global capital markets reeled on Friday after Britain voted to leave the European Union, with $2 trillion in value wiped from equity bourses worldwide, while money

Environmental

MISC Publishes its 2015 Sustainability Report

MISC Berhad (MISC) today announces the publication of its 2015 Sustainability Report, covering the Company’s commitment, strategy and performance for the year ended

Admiral of the Ocean Sea Award Recipients Named

The United Seamen's Service (USS) 2016 Admiral of the Ocean Sea Awards (AOTOS) will be presented to Arthur E. Imperatore, Founder and President of New York Waterways; Donald Marcus,

Orca Energy ESS to Power Fish Farm Support Vessel

Grovfjord Mek. Verksted AS (GMV) has selected Corvus Energy as the supplier of the lithium ion based energy storage system (ESS) for a fish farm support vessel called GMV ZERO.

News

HCI Capital Renamed Ernst Russ AG

A vote was passed at the ordinary shareholders’ meeting of HCI Capital AG yesterday to change the company’s name to Ernst Russ AG. The Executive Board and Supervisory

ABP orders Two Gottwald cranes

Terex Port Solutions (TPS) has received an order from Associated British Ports (ABP) for two electric Terex Gottwald Model 8 portal harbour cranes in the G HSK 8424 B four-rope grab variant.

Traffic Separation Schemes off Western Australia

On 1 December 2016 two new Traffic Separation Schemes (TSS) will come into effect off the south-west coast of Western Australia. Australia’s proposal to establish

 
 
Maritime Contracts Naval Architecture Offshore Oil Pod Propulsion Salvage Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1535 sec (7 req/sec)