OGAA Implementation Update April PNG Tenure Information Exchange

Transcription

1 OGAA Implementation Update April PNG Tenure Information Exchange

2 Presentation Topics Topic 1. The Oil and Gas Commission 2. OGAA Background 3.OGAA Permitting 4. Consultation and Notification 5. Compliance & Enforcement 2

3 The BC Oil & Gas Commission

4 BC Oil and Gas Commission Independent crown corporation Single window authority to permit activities covering Exploration Development Production Pipelines Reclamation 4

5 Structure of the OGC Stakeholders Board of Directors Commissioner Chief Executive Officer and Vice Chair of the Board Office of the Commissioner Engineering Division Regulatory Affairs & Stewardship Division Project Assessment & Compliance Assurance Corporate Services Division 5

6 Summary regulation of oil and gas in BC BC Oil and Gas Commission On the ground Permitting Regulation Compliance Enforcement FN Consultation Provincial Government Tenure Sales Policies Royalties 6

7 OGAA Background

8 What is OGAA? Oil and Gas Activities Act (OGAA) 8

9 Development background OGRII Consultation OGAA Development OGAA Regulation Drafting OGAA in effect (Fall, 2010) Transition to OGAA 9

10 OGAA conceptual model 10

11 Statutory bodies under OGAA (Part 2) Oil and Gas Commission Oil and Gas Appeal Tribunal Continuation of the Oil and Gas Commission (OGC) Part 2 Division 1 Establishment of the Oil and Gas Appeal Tribunal (OGAT) Part 2 Division 2 11

12 OGAA Permitting

13 Permitting (Part 3) 13

14 Specified enactments OGC can administer and enforce Act Environmental Management Act Authorization Waste storage, disposal Forest Act Licence to cut Heritage Conservation Act Heritage conservation Land Act Occupation of Crown land Road activities Water Act Short term use of water Work in and about a stream 14

15 Permits Tenure holders require a permit to carry out oil and gas activity Seismic (geophysical exploration) Drilling wells Producing gas (facilities) Pipelines Roads on Private Land (added Feb./11) 15

16 Permitting process (initial application) Prepare application (OGAA s. 24) OGC approval test (OGAA s. 25) Permit issued Issue permit Issue permit with conditions Refuse to issue Notify Land Owner (OGAA s. 25) Conduct consultations or notifications (OGAA s. 22) Deliver notice 0-5 days Respond to notice 21 days Wait 15 days if land owner land (OGAA s. 25) Unless written permission 16

17 Permitting process (amendments) Notify Land Owner (OGAA s. 31) Major amendment OGC required Prepare and submit application (OGAA s. 31) Amendment approval test (OGAA s. 31) Issued Conditions added Refused Conduct consultations/notifications (CNR s. 4) 17

18 Permitting process (extend permit) Prepare and submit application (OGAA s. 32) Only 1 extension Conduct OGC required consultations/ notifications (OGAA s. 32) Submit written report Extension approval test (OGAA s. 32) Granted Conditions added Refused * Permits expire after 2 years if activity not started (General Regulation s. 4) 18

19 New Permits Approved Total Approved - Fiscal 08/ Total Approved - Fiscal 09/ Total Approved - Fiscal 10/11 to date 1950 Approved Oct /10 to date

20 Approval Time New Permits (calendar days) Average - Fiscal 08/ Average - Fiscal 09/ Average Fiscal 10/11 (to date)

21 Approval Time New Permits (calendar days)

22 Amendments Approved Total Approved - Fiscal 08/ Total Approved - Fiscal 09/ Total Approved - Fiscal 10/11 to date 352 Approved Oct /10 to date

23 Approval Time Amendments (calendar days) Average - Fiscal 08/ Average - Fiscal 09/ Average Fiscal 10/11 (to date)

24 Approval Time Amendments (calendar days)

25 Decline Rates (% of submissions) Fiscal 09/10 Rate = 25% 25

26 Consultation and Notification

27 Consultation and notification Tenuring Consultation and notification Emergency planning Focus Land use Quality of life Safety Timeframe Pre-tenure Post-tenure Pre-permit application Post-permit application Pre-operations 27

28 Consultation and Notification overview Always do for land owner if private land Other parties if prescribed applicant, follow Consultation and Notification Regulation OGC may grant exemption subject to conditions Anyone can make submission to OGC in respect of permit application (no prescribed time limit) Land owner may appeal permit decision based on consideration of their written submission or applicant s report. 28

29 Who is consulted and notified? Who is notified? Landowners as defined in OGAA Local authorities with structures or areas identified in the OCP or a community watershed Government of Canada with structures Indian Reserves Who is consulted? Landowners as defined in OGAA Local authorities with structures Government of Canada with structures Indian Reserves 29

30 Who is consulted and notified (cont.)? Who is notified? Who is consulted? Other adjacent Landowners Other Landowners with residence, livestock structure or school Persons with an agreement to rent or lease, with a residence or livestock structure Defined rights holders other than large forest tenures Defined rights holders who are directly and adversely affected 30

31 Consultation and notification process Consultation Applicant provides invitation to consult Affected party responds to invite Applicant consults* Notification Applicant provides notice Affected party makes written response within 21 days* Applicant replies to response and provides written report with application 31

32 Consultation and notification process Submission Type New Permit Application Permit Amendment Permit Extension Process Cannot submit until C&N complete or received exemption* Submit first. Decision then made on whether C&N required Same as amendment * Exemptions can be granted with / without substitute requirements * Feb / 11 reg amendment has reduced some waiting periods 32

33 C & N Most Common Problems Application submitted before required waiting period elapsed - results in decline Failure to consult / notify all required parties Transition issue some activities now require permit and associated C&N Transition issue stakeholder engagement done pre-ogaa didn t meet C&N requirements Notices / Invitations to Consult don t have content or statements required by the regulation 33

34 Compliance and Enforcement

35 Compliance and enforcement (Part 5) 35

36 C&E framework under OGAA Audits Complaints / Incidents Inspections Investigations Compliance History Risk Assessment Enforcement decision C&E Tools OTBH 36

37 Compliance and enforcement tools OGAA Tool Administrative Penalties Permit Administration (suspend, cancel, amend) Orders Inspection Report (deficiencies) Reviews and Appeals Offences Previous Regime None Cancel only less criteria Less Powers / Criteria Similar to OGAA None Similar to OGAA 37

38 Administrative penalties (factors) Range of monetary ($) penalty Factors in determining penalty amount Maximum amount defined in regulation ($2K-500K) Action Before Compliance history Preventive action taken Repeated or continuous Deliberate intent Action After Corrective action taken Result Severity of contravention (gravity and magnitude) Extent of harm to other persons Economic benefit derived 38

39 Orders Stop work orders Remediation orders Orders to address risks to the environment, safety and/or resource conservation No contravention required 39

40 Compliance and enforcement to date Administrative Penalties 0* Permit Administration (suspend, cancel, amend) Orders 2 Inspection Report (deficiencies) 0 Many Offences 0 Reviews / Appeals 0 * Admin Penalties Regulation not in place until Feb / 11 40

41 Questions and answers 41

42 James O Hanley Deputy Commissioner BC Oil and Gas Commission