To Comply: Why Should I?

Abstract

The National Energy Board (NEB) is a Canadian federal regulatory agency whose mandate under the NEB Act is to regulate the construction and operation of interprovincial and international oil, gas and commodity pipelines; the construction and operation of international and designated interprovincial power lines; the setting of tolls and tariffs for oil and gas pipelines under its jurisdiction; the export of oil, natural gas and electricity, and the import of natural gas. International and interprovincial pipelines are subject to the statutory requirements of the NEB Act and Regulations made by the NEB. The regulations typically incorporate consensus standards such as the Canadian Standards Association (CSA Z662 - Oil and Gas Pipeline Systems). The NEB tracks and monitors compliance to ensure that companies fulfill the requirements of the Act and Regulations as well as any conditions imposed at the time of approval of the facilities. In carrying out its mandate, the NEB promotes the safety of people, the protection of property and the environment, and economic efficiency in the Canadian public interest. Recently, the NEB has implemented a formal system to track and monitor compliance. In approving new projects, the NEB imposes conditions outlined in approval Orders and Certificates. It then tracks these conditions for compliance, completeness and effectiveness. The compliance information is gathered mainly from activities such as inspections, audits and company filings. This paper explores in greater detail the NEB’s role in terms of tracking and monitoring compliance, NEB expectations of regulated companies and the effectiveness of a self-reporting condition. It also discusses the advantages for companies to be in compliance and its importance.