Other

Oil and gas pricing and marketing have been “deregulated” to a large degree in Canada since the mid-1980s (with government keeping the right to intervene, if necessary), but nearly every other aspect of the petroleum industry continues to be regulated by government authorities.

More than three-quarters of the oil and gas in Canada is produced on land where mineral rights are owned by federal and provincial governments and First Nations. Exploration and production companies lease mineral rights on these lands, and owners receive a share of production (royalty). Governments and First Nations consider environmental impacts when awarding leases and regulating production. Environmental regulations also apply to exploration and production on privately owned (freehold) properties.

The Alberta Energy and Utilities Board is the main regulator of the petroleum industry in Alberta (AEUB), Canada’s major oil and gas-producing province. In conjunction with the AEUB, Alberta Environment regulates key aspects of air emissions, water protection and land reclamation.

Other provincial and territorial energy and environmental officials regulate onshore exploration elsewhere in Canada, often using standards established by the AEUB. Two federal provincial authorities — the Canada-Newfoundland Offshore Petroleum Board and the Canada-Nova Scotia Offshore Petroleum Board — regulate offshore exploration and development. The National Energy Board also regulates exploration and production in Yukon, Nunavut and the Northwest Territories.

Federal fisheries regulations also affect some upstream operations.

The National Energy Board regulates interprovincial and export pipelines. It holds public hearings on major new facilities and expansions, including environmental effects, and uses inspections and incident investigations to check that environmental standards are maintained during construction and operation.

Provincial authorities regulate environmental and safety aspects of local natural gas distribution companies.

Federal and provincial environment, energy, fisheries, labour and transportation officials enforce legislation affecting the refining, distribution and marketing of petroleum products.

Industry and government bodies such as the Canadian Standards Association and the Canadian General Standards Board establish standards for many products (such as gasoline and steel) and for industrial practices (such as welding) used by the petroleum industry. These standards are often incorporated into regulations.

Industry associations such as CAPP, CEPA and CPPI have also adopted environmental and safety codes of practice and operating guidelines for their member companies.