January 28, 2011 Alberta to better integrate oil and gas policy and regulatory system Regulatory Enhancement Task Force delivers report to government Calgary... Coordinated policy development and an integrated regulatory system for upstream oil and gas highlight a report from the task force established to review Alberta’s regulatory system. “I would like to thank Diana McQueen, Cal Dallas, and Evan Berger for their excellent work,” said Energy Minister Ron Liepert. “Government has accepted the report. The recommendations will now be immediately taken through the appropriate government review process for implementation. Legislation will be introduced this spring to begin implementation of the task force report.” The task force report and recommendations include: Establishing a new Policy Management Office and ensuring integration of natural resource policies; Creating a single oil and gas regulatory body; Providing clear public engagement processes; Using a common approach to risk assessment and management; Adopting performance measures to enable continuous system improvement; and Creating a mechanism to help resolve disputes between landowners and companies, and enforce agreements where required. “To maintain Alberta’s competitiveness the regulatory system must be effective, efficient, adaptable, predictable, fair and transparent,” said task force chair, Parliamentary Assistant for Energy Diana McQueen. “We will not compromise our responsibilities to environmental stewardship and the protection of public safety and public interests.” The review included analyses of all processes in place to develop and ensure compliance with provincial policies around upstream oil and gas development, and extensive engagement of First Nations, the oil and gas industry, and individuals from landowner, municipal, and environmental groups. Between March 31 and October 1, 2010 the task force hosted three rounds of engagement through a series of briefings, meetings, workshops and a forum. The task force was established in March 2010 to lead a comprehensive upstream oil and gas regulatory review and make recommendations to ensure Alberta has a modern, efficient, outcomes-based and competitive regulatory system that maintains the province’s strong commitment to environmental management, public safety and resource conservation. The report and supporting documents are available at www.energy.alberta.ca/Initiatives/RegulatoryEnhancement.asp. -30- Backgrounder: Regulatory Enhancement Task Force recommendations Media inquiries may be directed to: Jay O’Neill Communications Alberta Energy 780-422-3667 To call toll free within Alberta dial 310-0000. January 28, 2011 Summary of Regulatory Enhancement Task Force recommendations Establish a new Policy Management Office to ensure the integration of natural resource policies and provide an interface between policy development and policy assurance (regulatory delivery). The Policy Management Office would integrate natural resource policies of provincial departments of Energy, Environment and Sustainable Resource Development. Policies would be aligned at the provincial and regional levels and provide clear Government of Alberta policy guidance to regulators. Establish a single regulatory body with unified responsibility for policy assurance (regulatory delivery) of upstream oil and gas development activities. A single regulatory body for upstream oil and gas activities would be empowered to make all decisions required to issue an oil and gas approval that are currently encompassed within the authorities of Alberta Environment, Alberta Sustainable Resource Development and the Energy Resources Conservation Board. Provide clear public engagement processes that enable parties to engage effectively at the policy development and policy assurance stages. Input from public engagement must be able to effectively inform key decisions. Clear public engagement processes would be specified at both the policy development stage on broad policy issues, such as environmental management and land-use, and policy assurance stage on specific oil and gas activities that are proposed. Ensure a systemic and common risk assessment and management approach is used across the entire Policy Development and Policy Assurance System. Adopting a common approach to risk management will help apply the right tool for the type of activity being managed. An internationally-recognized standard (ISO 31000) recognized around the world would be used to develop and implement a risk management approach to regulating upstream oil and gas projects. Adopt a Performance-Measurement Framework and a public reporting function to measure and communicate the effectiveness of the system and identify opportunities for continuous improvement. Formal performance measures will be established to measure the success of the new system in meeting its goals, with regular reporting on progress to the government and the public. An arm’s length panel is suggested as one mechanism to improve performance reporting and enhance transparency. Ensure an effective mechanism to address landowner concerns is developed. A provincial regulatory body (like the Surface Rights Board) would be given jurisdiction to examine and resolve disputes through mediation or arbitration over whether project proponents are living up to commitments made to landowners in private agreements. Following the resolution of the dispute, the single regulator would be authorized to enforce the agreement using its regulatory tools. -30- Media inquiries may be directed to: Jay O’Neill Communications Alberta Energy 780-422-3667 To call toll free within Alberta dial 310-0000. Alberta Government | Newsroom | Ministries Listing | Energy Home Page | News Releases | Top of Page | Send us your comments or questions Copyright(©) 2011 Government of Alberta .