Potential Implications of the Canadian Species at Risk Act on Oil and Gas Companies

Abstract

This chapter explores the possible implications of the Species at Risk Act (SARA) Act with respect to construction, operation and maintenance of oil and gas projects in Canada along with recent experience with permitting and constructing of pipelines in western Canada. Pipeline companies operating in Canada are now facing uncertainty over implications of the SARA. Clauses 32 and 33 of the SARA prohibit the harm to or destruction of critical habitat of an extirpated, endangered or threatened species. Although SARA specifically applies to federal lands, patented and provincial Crown lands not protected through stewardship arrangements, conservation agreements or provincial or territorial laws may be affected by the SARA should the Minister deem that the critical habitat is not adequately protected. Mitigative measures to avoid or reduce adverse effects on listed species and plans to monitor the impact of the project will be essential in the pre- and post-construction phases of a project. Despite the SARA's intent to protect critical habitat through voluntary actions and stewardship programs, it affords pipeline companies the opportunity to compensate for the removal of critical habitat if it cannot be avoided. Companies must rely on due diligence as a part of their compliance plan.