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Law on Pollution and Debris from Oil and Gas Drilling and Production Operations Offshore Nova Scotia Schulich School of Law, Dalhousie University Schulich Law Scholars LLM Theses Theses and Dissertations 1998 Law on Pollution and Debris from Oil and Gas Drilling and Production Operations Offshore Nova Scotia Boris B. De Jonge Follow this and additional works at: https://digitalcommons.schulichlaw.dal.ca/llm_theses Part of the Administrative Law Commons, Environmental Law Commons, Law of the Sea Commons, and the Oil, Gas, and Mineral Law Commons LAW ON POLLUTION AND DEBRIS FROM OIL AND CAS DRILLING AND PRODUCTION OPERATIONS OFFSHORE NOVA SCOTIA by Bons B. de Jonge Submitted in partial fùlfillment of the requirements for the degree of Master of Laws Dalhousie Law School Halifax, Nova Scotia December 1998 Copyright O Boris B. de Jonge, 1998 National Library Bibliothèque nationale 1*1 ofCanada du Canada Acquisitions and Acquisitions et Bibliographie Services seiuices bibliographiques 395 Wellington Street 395. rue Wellington OttawaON K1A ON4 OaawaOcu KlAW canada canada The author has granted a non- L'auteur a accordé une licence non exclusive licence allowing the exclusive permettant à la National Library of Canada to Bibliothèque nationale du Canada de reproduce, loan, distribute or sell reproduire, prêter, distribuer ou copies of this thesis in microform, vendre des copies de cette thèse sous paper or electronic formats. la forme de microfiche/film, de reproduction sur papier ou sur format électronique. The author retains ownership of the L'auteur conserve la propriété du copyright in this thesis. Neither the droit d'auteur qui protège cette thèse. thesis nor substantial extracts fiom it Ni la thèse ni des extraits substantiels may be printed or otherwise de celle-ci ne doivent être imprimés reproduced without the author's ou autrement reproduits sans son permission. autorisation. TABLE OF CONTENTS . ABSTRACT ...................................................................................................................... vit ... ABBREVIATIONS ........................ .... ...................................................................... viii INTRODUCTION ............................................................................................................. 1 1 . NATURE OF POLLUTION FROM OFFSHORE OU, AND GAS OPERATIONS . 5 2 . INTERNATIONAL LAW ..................................................................................... 10 2.1 General .......................... ,.. ....................................................... ,... .................... 10 2.2 Jurisdiction beyond the temtorial sea .................... .... .................................. 11 2.3 Other provisions of the Law of the Sea Convention ............................................ 14 (a) Prevention of marine pollution ...................................................................... ... 14 (b) Liability and compensation for marine pollution .......................... .... ................ 16 (c) Summary ......................................................................................................... 17 2.4 Other Conventions ........................................................................................... 18 (a) 1969 Civil Liability Convention and 197 1 Fund Convention .......................... 18 (b) Marpol 1973/78 ................................................................................................. 19 (c) CMI Drafi Convention on Offshore Mobile Craft, 1994..,. .............................. 20 (d) Conventions concerning liability for offshore oil and gas operations ................ 37 2.5 International responsibility ................................................................................ 23 2.6 Conclusion ............................................................................................................ 26 3 . KJRISDICTION OVER OFFSHORE OIL AM) GAS OPERATIONS .................. 27 3.1 Continental Sheif and Exclusive Economic Zone ........................................... 27 . 3.2 Application of Canadian Laws .............................................................................. 28 (a) Extension of Canadian laws to offshore ......................................................... 28 (b) Applicability of Comrnon Law ..... .................................................................... 31 . (c) Mantime Law............................. ,.... ............................................................... 33 3.3 Federal-provincial joint management arrangements ............................................. 36 3.4 Pipelines ................................................................................................................ 40 (a) CNSOPB Jurisdiction ....................................................................................... 40 (b) NEB Junsdiction ............................................................................................... 40 (c) Dual Jurisdiction ............................................................................................... 41 3.5 Sable Gas Projects Joint Public Review ............................................................... 43 4 . PREVENTION OF MARINE POLLUTION FROM OFFSHORE OIL AND GAS OPERATIONS .................................................................................................................. 47 4.1 Applicable statutes ................................................................................................ 47 (a) Canada Shipping Act ........................................................................................ 47 (b) Fisheries Act .................................................................................................... 51 (c) Canadian Environmental Protection Act .......................................................... 54 (d) Pest Control Products Act .................................................................................59 (e) Migratory Birds Convention Act ...................................................................... 59 (0 Canada Water Act ............................................................................................. 60 (g) National Energy Board Act ............................................................................... 60 (h) Accord Act ........................................................................................................ 61 4.2 Environmental offences ..............*....................... .. ................................................ 68 (a) Types of offences .............................................................................................. 68 (b) Defences ............................................................................................................ 70 (c) Offences and offshore oil and gas operations ................................................... 76 4.3 Administrative problems ....................................................................................... 78 5 . CIVIL LIABILITY AND COMPENSATION FOR DAMAGE FROM POLLUTION AND DEBRIS ........................................................................................... 88 5.1 Statutory liability .................................................................................................. 88 (a) Canada Shipping Act ........................................................................................ 88 (b) Fisheries Act ..................................................................................................... 89 (c) Accord Act ........................................................................................................ 90 5.2 Liability and indemnity provisions in licence documents .................................... 93 5.3 Liability at Comrnon Law ................................................................................... 101 (a) Applicability of non-statutory remedies ......................................................... 101 (b) Trespass ........................................................................................................... 102 (c) Negligence ...................................................................................................... 104 (d) Nuisance .......................................................................................................... 105 (e) Strict Liability and the Rule in Rylands v . Fletcher ....................................... 111 (f) Summary ......................................................................................................... 115 ... 5.4 Liability of public authonties .............................................................................. 116 5.5 Damages .............................................................................................................. 120 (a) Limit of liability .......................................................................................... 120 (b) Economic loss ................................................................................................. 123 v (c) Non-economic environmental damage ........................................................... 13 1 6 FINANCLAL RESPONSIBILITY .......................................................................... 135 6.1 Financial Responsibility Requirements .............................................................. 135 (a) Accord Act ...................................................................................................... 135 (b) Regdations ......... ..... ....................................................................................... 136 . 6.2 Guidelines
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