Feb. 26: New Laws & Regulations for Offshore Energy Sector Took Effect
New measures to strengthen environmental protection and safety in Canada’s offshore energy sector took effect Feb. 26, 2016. The Energy Safety and Security Act enshrines the polluter pays principle and increases absolute liability in the offshore. Operators’ liability will remain unlimited in cases of fault or negligence and increase to $1 billion regardless of fault. New regulations fully implement the new law:
- The Financial Requirements Regulations require applicants to demonstrate that they have the means to cover any claims in the event of an incident or spill
- The Administrative Monetary Penalties Regulations give the offshore regulatory boards an additional tool to strengthen compliance and enforcement
- The Cost Recovery Regulations establish a framework through which the Atlantic offshore regulatory boards will recover their operating costs from industry and reduce the cost for governments.