The provincial government introduced The Pipelines Amendment Act in the legislature on Monday, replacing the Pipelines Act, which had been in place since 1998.
“Our efforts to enhance and reinforce our regulatory oversight of the oil and gas industry in Saskatchewan are a continual process to ensure that it is held to the highest standards,” Energy and Resources Minister Dustin Duncan said.
“This updated legislation also serves to address the provincial auditor’s previous recommendations with respect to our work with this industry.”
Some of the components of the new legislation include:
·Creating a legal framework for phased-in licensing of more than 80,000 flowlines, which are exempt in current licencing;
·Building an online pipeline licensing system using the Integrated Resource Information System;
·Establishing new inspection, investigation and compliance audit powers for ministry staff;
·Updating and modernizing penalty provisions;
·Improving pipeline licensing, construction, operation and abandonment procedures;
·Providing requirements for financial assurance from operators for pipelines that are in high-risk locations like water crossings; and
·Setting up new obligations associated with environmental issues that might occur following pipeline abandonment.
“These objectives allow us to complete the recommendations made in the 2012 Provincial Auditor’s Report,” Duncan said. “It will also address relevant public concerns regarding Saskatchewan’s pipeline system by updating current requirements.”
Pipeline infrastructure is vital to the oil and gas industry in the province, as it connects resources to global markets and provides communities across Saskatchewan with energy services. About 90 per cent of Saskatchewan’s current spending on pipeline regulation is paid for through the annual well levy.
The new legislation is not expected to trigger any additional costs for taxpayers.
