Throughout Canada, pipelines deliver the crude oil, natural gas, and petroleum products necessary so that Canadians can heat their homes, drive their cars, and travel by bus, train and air.
There is an estimated 825,000 kilometres of transmission, gathering, and distribution lines in Canada, with most provinces having significant pipeline infrastructure. Approximately 73,000 kilometres of pipelines are federally regulated and transport over $100 billion of oil, gas, and petroleum products each year.
Based on decades of experience, pipelines have proven to be a safe and efficient method of transporting large volumes of crude oil and petroleum products over long distances. In fact, between 2008 and 2012, 99.999 percent of the crude oil and petroleum product transported by Canada’s federally regulated pipelines was done safely. This impressive safety record is a credit to Canada’s comprehensive and rigorous pipeline safety system administered by the National Energy Board (NEB) – an expert, arm’s-length and independent regulator.
Companies operating interprovincial and international pipelines in Canada are required to follow strict rules and regulations. Pipelines and equipment must meet Canadian Standards Association specifications, which are considered among the most stringent in the world.
Safety, integrity, and emergency response programs specific to each company’s infrastructure are regularly reviewed and audited by the NEB. The NEB also conducts ongoing pipeline monitoring, inspections, and site visits, and has the ability to issue mandatory compliance orders.
While the NEB’s regulatory oversight is aimed at preventing incidents from happening, the NEB will exercise its authority to protect the public, workers, property and the environment should an incident occur.
The NEB has the authority to prosecute for certain violations of the National Energy Board Act, with fines ranging from $100,000 to $1 million and imprisonment from one to five years. In the event of a pipeline rupture or spill, the company is liable for all clean-up and remediation costs.
The Government’s plan for Responsible Resource Development further strengthens Canada’s strong pipeline safety system. Under RRD, the NEB has increased the number of oil and gas pipeline inspections by 50 percent annually and doubled, from three to six, the number of annual comprehensive audits to identify potential issues and prevent incidents from occurring.
Under the government’s plan for Responsible Resource Development, the NEB was provided authority to impose administrative monetary penalties, an additional enforcement and compliance tool to address infractions. The administrative monetary penalties provide the means to strengthen safety in a preventative manner and penalties can be cumulative should the infractions not be addressed. The new penalties to individuals and companies range from $25,000 to $100,000 per day.
The health and safety of Canadians and the protection of the environment remain key priorities of the Government of Canada.
Media may contact:
Alexandra Lemieux
Press Secretary
Office of the Minister
Natural Resources Canada
Ottawa
613-996-2007
or
Media Relations
Natural Resources Canada
Ottawa
613-992-4447
