Sept-Îles, Quebec
14 October 2014
On March 24, 2011, the Governments of Canada and Quebec announced the Canada-Quebec Accord, an agreement on the joint management of offshore resources in the Gulf of St. Lawrence. Since that time, the two Governments have worked together, negotiating final details and are in a good position to table the legislative framework to implement the Canada-Quebec Accord. The legislation is generally consistent with the existing Canada-Newfoundland Atlantic Accord Implementation Act and the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act.
The Accord ensures that Quebec will benefit from all revenues derived from the development of petroleum resources, including royalties, license fees and other forms of revenue. As in the two other offshore areas, the Government of Canada will collect the royalties and transfer an equivalent amount to the Government of Quebec.
The Accord meets one of the requirements of the Quebec Strategic Environmental Assessment for the Gulf of St. Lawrence, completed in 2013, which highlighted the importance of establishing the legislative framework for petroleum activities in the Gulf of St. Lawrence.
The legislation to implement the 2011 Accord will establish the governance for all oil and gas activities in the Canada-Quebec offshore including all aspects of exploration and production. The legislation will require environmental assessments, allow for open calls for bids to award licenses, and ensure independent science-based assessments of proposed projects. The legislation will also include modern spill prevention, response and accountability provisions ensuring that, regardless of fault or negligence, the operator is responsible for cleanup costs and damages up to a $1 billion.
The legislation will implement a key feature of the 2011 Accord which is two distinct phases of joint management. During the first pre-discovery “transitional phase,” both Governments will establish a joint regulatory function using both Governments' existing regulatory capacity. Once there is a commercial discovery of petroleum resources, a second “permanent phase” would be triggered; in this phase both Governments will jointly establish a new, independent offshore board, through additional legislation. This two-phase approach allows the creation of an offshore board only once the level of activity warrants it.
The Canada-Quebec Accord is central to Responsible Resource Development, the Government of Canada's plan to create high-quality jobs, economic growth and long-term prosperity through the development of Canada's natural resources. Responsible Resource Development has streamlined the review process for major resource projects, while strengthening environmental protection. All petroleum activities in the Canada-Quebec area will be subject to environmental assessment requirements under the Canadian Environmental Assessment Act, 2012 and Quebec’s Environment Quality Act. No offshore oil and gas activity will proceed unless deemed safe for the environment and for Canadians. The development of petroleum resources through the Accord will be done in a manner which protects fisheries and marine life.
Responsible Resource Development also ensures health, safety and the economic development of local communities are taken into account. Responsible Resource Development enhances consultations with Canada’s Aboriginal Peoples in a project's review and development process. The Government of Canada is committed to long-term prosperity, protecting the environment and the safety of Canadians.
