Split energy regulator into two entities, minister says
Saskatchewan also believes agency’s HQ should remain in the West: Duncan
The Saskatchewan government is weighing in on proposed changes to the National Energy Board.
Dustin Duncan, the province’s energy minister, supports one potential change that would see the NEB split into two entities — an information agency and a transmission commission.
The information agency would be a source of information relating to energy development, while the transmission commission would be tasked with evaluating the science and technology behind future projects.
“Having an information agency separate from the actual technical review work of the successor of the NEB, we think, is important,” he said.
He said the province’s priorities on the matter are ensuring Saskatchewan oil has access to tidewater; that the country is moving toward pan-Canadian self-sufficiency for oil and repairing the image of Canadian crude oil.
Another proposed change would see federal cabinet ministers having the first look at any projects, to determine whether or not they are in the national interest. If approved at that first step, projects would go forward to a technical review.
Duncan said Saskatchewan supports the notion of determining national interest before a technical review, but is concerned the federal government would still have the ability to veto projects.
The preferred route for the province would see the federal cabinet initially determine if a project is in the national interest, and then get out of the process altogether, explained Duncan.
As expected, Duncan takes issue with one of the more contentious proposed changes for the NEB: moving the head offices of the new entities out of oil country — the NEB is currently based in Calgary — to Ottawa.
“We’re concerned about it moving out of Western Canada. We don’t think it should be moved out (to) Ottawa,” said Duncan.
He proposes a compromise: the office moves out of Calgary, which serves as home base to many oil and pipeline companies. But rather than going all the way east to Ottawa, place the office in Saskatoon.
“Saskatchewan would be the next logical place,” said Duncan, noting it’s a vibrant city in an oilrich province without any head offices for major oil and gas companies.
Late last year, federal Minister of Natural Resources Jim Carr established an expert panel to review the structure, role and mandate of the NEB. Following widespread consultations, it submitted its final report, Forward, Together: Enabling Canada’s Clean, Safe, and Secure Energy Future, in May 2017.
A lengthy submission in response to that report was filed by Saskatchewan, with comments primarily focusing on the ability of the NEB, or its successor, to approve energy projects using a nonpartisan, science-based approach.
Having an information agency separate from the actual technical review work of the successor of the NEB, we think, is important.