June 18: Pipeline Safety Act Gets Royal Assent


The Pipeline Safety Act received Royal Assent and will come take effect in 12 months. The goal of the law is to improve Canada’s pipeline safety system by:

  • Enshrining the “polluter pays” principle
  • Ensuring companies remain responsible for abandoned pipelines
  • Requiring a portion of each company’s financial resources to be readily accessible to ensure rapid response to any incident
  • Providing NEB authority to take control of incident response and cleanup in exceptional circumstances, if a company is unable or unwilling to do so
  • Implementing “no fault” or absolute liability for all companies operating pipelines, set at $1 billion for companies operating major oil pipelines
  • Giving governments the ability to pursue pipeline operators for the costs of environmental damages.