Regulatory Oversight of Oil and Gas Industry Enhanced with New Legislation

The Government of Saskatchewan introduced The Pipelines Amendment Act, 2016 in the Legislature today, replacing The Pipelines Act, 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:

Creation of a legal framework for phased-in licensing of more than 80,000 flowlines which are exempt in current licensing under the Act;
Building an online pipeline licensing system using the Integrated Resource Information System (IRIS);
Establishing new inspection, investigation and compliance audit powers for ministry staff;
Updating and modernizing penalty provisions;
Improvements regarding pipeline licensing, construction, operation and abandonment;
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.