Calgary Herald

‘Fresh leadership’ sought for new energy regulator

- DAN HEALING AND JAMES WOOD

Dan McFadyen’s leadership as chair of the Energy Resources Conservati­on Board will be missed, a vicepresid­ent of the Canadian Associatio­n of Petroleum producers said Tuesday.

Dave Pryce, CAPP vicepresid­ent of operations, said McFadyen earned many friends in the industry with his fair-minded and progressiv­e rulings at the ERCB and before that as deputy minister of Alberta Energy.

“I think Dan McFadyen has been a superb public servant,” Pryce said.

“I think he’s positioned the ERCB for regulatory change that’s coming, not just the new regulator, but ... in the unconventi­onal (oil and gas) business.”

Pryce was reacting to news that the Alberta government will replace McFadyen and split his role as chair and chief executive in two with a new “one-window” regulator that will also enforce six environmen­tal conservati­on statutes. In an interview Tuesday, Alberta Energy Minister Ken Hughes said McFadyen, ERCB chair since February 2008, will serve out his term, a period of months, before being replaced by “fresh” leadership.

“He’s served Albertans well but it’s important to send a signal that this is a new regulator,” said Hughes.

“This is not just the ERCB slightly modified, this is a new regulator that has a different mandate ... of overseeing all of the environmen­tal aspects as well as the energy aspects.

“So it’s an opportunit­y to have a fresh look at it, fresh leadership, both in the chair and the CEO. The chair and the CEO being split, that wasn’t split before, but in best practices in Canada in governance today, that’s completely appropriat­e.”

The government said in a news release it is hiring two people, a chairman and a chief executive, to head up a transition committee for the new regulator.

Those people will then take on permanent roles as chairman of the board of directors and CEO of the Alberta Energy Regulator.

When operationa­l, the new agency is expected to have nearly 1,000 staff, will process thousands of applicatio­ns each year and manage a budget of more than $200 million.

The news comes less than a month after the government passed Bill 2, the Responsibl­e Energy Developmen­t Act, to set up a replacemen­t for the 75-year-old ERCB.

Pryce said McFadyen will be remembered fondly for helping the industry fight higher royalty rates imposed by the Ed Stelmach government in 2007 when he was deputy energy minister.

“We went through some challengin­g times,” he said, “and Dan was instrument­al in trying to find a fair outcome for that. Another piece he’s contribute­d to on behalf of Alberta.”

On his watch, the ERCB imposed new oilsands mine tailings pond standards and recently began gathering opinions for new regulation­s on hydraulic fracturing of unconventi­onal oil and gas wells.

In a written statement late Tuesday, McFadyen said it was “an honour and a privilege” to work at the ERCB.

“The ERCB has served the people of Alberta well during nearly 75 years of worldclass regulatory oversight. I look forward to assisting the government of Alberta in the successful transition to the Alberta Energy Regulator.”

Critics have said the new regulator hurts landowners by removing their right to go before the Environmen­tal Appeal Board.

They say it also narrows the scope of who can trigger a public hearing into a project, gives too much power to ministers to override decisions, lacks timelines and attempts to bypass the constituti­onal right of aboriginal people to be consulted on projects on their traditiona­l lands.

But Hughes has rejected those charges, insisting it provides “a common-sense approach.”

He says the appeal process will be as robust as it is now with the ERCB, although the appeals will go to the regulator’s commission­ers, who have yet to be appointed, rather than the Environmen­tal Appeal Board.

Current ERCB vice-chair Brad McManus will perform the chair’s functions and oversee the ERCB until the new regulator is operationa­l, the government said.

According to the ERCB website, McFadyen is a profes- sional engineer who served as the deputy minister of Alberta Energy.

He had a similar role before that in Nova Scotia.

He is a former vice-president with the Canadian Energy Pipeline Associatio­n, was chairman of the Saskatchew­an Research Council and was a top civil servant in the Saskatchew­an provincial government.

 ?? Dean Bicknell/calgary Herald ?? Outgoing Energy Resources Conservati­on Board chair Dan McFadyen earned industry praise for being fair minded.
Dean Bicknell/calgary Herald Outgoing Energy Resources Conservati­on Board chair Dan McFadyen earned industry praise for being fair minded.

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