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Canada raises absolute liability for offshore drill operators

18th June 2013

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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TORONTO (miningweekly.com) – The Canadian government on Tuesday announced it would raise the absolute liability for energy companies operating offshore Atlantic Canada and Arctic Canada to C$1-billion to align accountability with international standards.

Natural Resources Minister Joe Oliver said in a statement the absolute liability for companies operating in the Atlantic offshore would be raised from C$30-million to C$1-billion, and the offshore absolute liability would be increased from C$40-million to C$1-billion in the Arctic offshore.

A joint statement by Oliver and officials from the Atlantic Canadian provinces of Nova Scotia and Newfoundland and Labrador, showed the the federal and provincial governments had agreed to make explicit the ‘polluter pays’ principle in legislation, which was only implicit in current legislation.

These changes, to be rolled out under the auspices of the federal government’s Responsible Resource Development plan to streamline the review process for major economic projects, which was launched in April 2012 under the auspices of the Economic Action Plan 2012, would be aimed at incentivising spill prevention plans by companies operating in the Atlantic offshore.

Federal government also planned to allow provincial governments to pursue financial compensation for environmental damages from operators responsible for spills and would require the public disclosure of emergency-preparedness plans.

Canada’s offshore petroleum resources are jointly managed by the federal and provincial governments and, over the coming months, the federal government would work closely with Nova Scotia and Newfoundland and Labrador to finalise these changes.

Canada would also work to finalise the proposed changes to the federal legislation for other offshore areas.

Edited by Creamer Media Reporter

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