B.C. MLA challenges NEB on changes to its Strategic Plan

Gary Coons, the MLA for North Coast in British Columbia, has sent a letter to the National Energy Board (NEB) expressing his concerns about changes to the NEB's Strategic Plan language.  He notes a number of significant changes, including the replacement of the NEB's mission statement.  Previously, the NEB sought to "promote safety, security, environmental protection and efficient energy infrastructure and markets in the Canadian public interest".  The NEB now says that "WE REGULATE PIPELINES, ENERGY DEVELOPMENT AND TRADE IN THE CANADIAN PUBLIC INTEREST".  Coons asks whether this change signifies that safety, security and environmental proteciton are no longer within the NEB's mandate.  Coons also notes that the Board has removed the language referring to the "responsible development" of the energy industry.  He says that these changes are of particular concern in the context of the ongoing Enbridge Northern Gateway Project application and in the context of growing public concern about the influence of "big oil" interests on government.

National Energy Board says it's shifting from "reactive" to "proactive"

The National Energy Board (NEB) says it has decided to increase the number of pipeline performance measures beyond those currently collected by the Board through incident reporting requirements in the Onshore Pipeline Regulations, 1999.  The NEB claims this initiative will supplement existing measures such as spills and injuries with performance measures of activities that require planning and ongoing monitoring. This is anticipated to bring a predictive dimension to how a company manages its programs. The measurement of performance is intended to promote a shift from reactive to proactive management. Companies will be able to use the resulting data to trend and compare performance, and to encourage continual improvement. The NEB will also use the data to assist in compliance verification planning.

The NEB's Background Information enclosure describes deficiencies in its current overview of security and the environment:

The Board currently requires companies to report on incidents, such as releases of substances and serious injuries. These measures are "lagging indicators" because the information provides a historic view. The Board is taking action to promote safety, security and environmental protection by proposing that all Board-regulated companies also report on "leading" performance measures. "Leading" measures are predictive and forward looking, measuring aspects of processes and activities that are likely to contribute to a desired outcome. A mix of leading, lagging and qualitative measures can provide an overview of the effectiveness of a company in meeting program objectives.

Read the NEB's letter to Oil and Gas companies at: July 11, 2011 letter.