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Offshore Hydrocarbon Development in British Columbia: A Brief History of the Moratoria

Offshore Hydrocarbon Development in British Columbia: A Brief History of the Moratoria. by Rod Dobell for Maritime Awards Society of Canada Workshop BC Offshore Resources March 19, 2004 Dunsmuir Lodge, Victoria, BC. Outline. Introduction Context The Moratoria Beyond the Moratoria

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Offshore Hydrocarbon Development in British Columbia: A Brief History of the Moratoria

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  1. Offshore Hydrocarbon Development in British Columbia: A Brief History of the Moratoria by Rod Dobell for Maritime Awards Society of Canada Workshop BC Offshore Resources March 19, 2004 Dunsmuir Lodge, Victoria, BC

  2. Outline • Introduction • Context • The Moratoria • Beyond the Moratoria • Concluding Thoughts on Contending Perspectives

  3. Introduction • What are the present moratoria and where would we be if they were lifted? • Requires an understanding of past and present context including: • Jurisdiction and regulatory regime • Environmental review processes • Interest groups • Structures for governance, management and revenue-sharing

  4. Context • Constitutional jurisdiction • BC claims offshore area in 1957 • Supreme Court of Canada decisions: 1967 West of VI and Haida Gwaii: federal 1984: Between VI and mainland: provincial • Continuing uncertainty regarding jurisdiction over Queen Charlotte Sound and Hecate Strait

  5. Context • Federal & Provincial authority • Federal licensing authority or rights in territorial sea • Provincial ownership of internal waters • Shared regulatory and legislative responsibilities

  6. Context • Initial industry activity • Conflicting positions of federal departments regarding permitting • Canada & BC—Bilateral Harmonization Agreement on Environmental Assessment Cooperation • The Oil & Gas Commission

  7. Context • Aboriginal rights • Governments’ duty to consult • Haida Nation lawsuit claiming title to lands and surrounding waters of the Queen Charlotte Islands (Haida Gwaii) • Tsimshian and Haida Nations have both declared moratoria

  8. The Moratoria • The federal moratorium is a result of government announcements going back to 1970s • Early debate in Hansard, April 20, 1972 • Minister of Environment:“…exploration and drilling for oil would be excluded from sensitive offshore zones.” • Provincial moratorium • 1982 Order in Council (Reg 10/82) • 1989—5 year ban after Exxon Valdez spill • Reserved lands and placed a moratorium on drilling

  9. The Moratoria • No formal instrument establishing moratorium • No prohibition on drilling • But no obligation on license holder to undertake work under the license, and neither government will currently consider applications for work • Moratorium could be lifted by decision or simple announcements by either government • But, for either government this is now a major policy decision needing formal Cabinet scrutiny—and FN moratoria also remain to be addressed in consultation processes

  10. Beyond the moratoria • Environmental assessment processes • Bilateral Harmonization Agreement on Environmental Assessment Cooperation: expired April 2002; renewed October 2002 as interim measure; new agreement pending • Negotiating a “Pacific Accord”?

  11. Beyond the Moratoria • Strategic environmental assessment • First Nations interests • Allocation of rights; sharing of revenues • Fiscal arrangements

  12. Concluding Thoughts • How to proceed? • Reports of recent science panels • Many legal issues • Many more issues of policy and administration • Above all, many contending perceptions

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