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ARTICLE · 06 FEBRUARY 2014

Important Changes To Canada’s Offshore Oil And Gas Regime

Osler, Hoskin & Harcourt LLP
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The Minister of Natural Resources introduced legislation on Thursday, January 30, 2014 that would see important changes to Canada’s offshore oil and gas regime.

CanadaEnergy and Natural Resources
Simon Baines
Simon Baines
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Background

The Minister of Natural Resources introduced legislation on Thursday, January 30, 2014 that would see important changes to Canada's offshore oil and gas regime. The Energy Safety and Security Act (the Act) contains amendments to the Canada Oil and Gas Operations Act and the Canada Petroleum Resources Act, along with the federal Accord Acts governing exploration and production offshore Nova Scotia and Newfoundland and Labrador.

Polluter-Pays

The amendments specifically introduce a 'polluter-pays' principle into the federal government's offshore oil and gas regime. This principle is supported by increasing the amount of security an operator will have to post in advance of drilling, as well as an increase to operators' liability.

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