Oil industry cautious about new federal environmental assessment process

The federal government is promising faster environmental assessments for offshore oil and gas projects and less duplication, but the industry says there aren't enough details yet on whether new federalrules will do that.

• Ottawa to scrap National Energy Board, overhaul environmental assessment process for major projects

On Thursday, Canada's Environment Minister Catherine McKenna announced plans to streamline the approval process forhydroelectric dams, mines, pipelines and offshore oil exploration, and create a new body to review all major projects across the country.

But stakeholders in Newfoundland and Labrador's oil industrywere hesitant as they were briefed by theprovince's regional minister Seamus O'Reganat a news conference in St. John's.

"We are deliveringan impact assessment process that is faster, tightening the timelines and impact assessments, and reducing mechanisms that stop the clock," said O'Regan.

The Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) will be included in the decision making process, he said.

An office for the new regulatory body, called theImpact Assessment Agency of Canada, will also be set up in St. John`s.

"It's local agency staff will be based here to work alongside regulatory agencies, the province,investedparties, and it's respectful of the competence held by theC-NLPOBand its expertise in offshore developments," O'Regansaid.

Too many questions

The CEO of the Newfoundland and Labrador Oil andGas Industries Association (NOIA), Charlene Johnson, said there's simply too many unanswered questions that need to be resolved before she can say whether her organization is satisfied with the reforms.

"NOIA hasbeen asking that strategic environmental assessments that have already been done by the C-NLOPB would not be duplicated," she said.

"Weheard today that a new regional assessmentwill be done. So I certainly want to follow up on that.'

Johnson expected to hear more details in a technical briefing later on Thursday.

Provincial minister cautiously optimistic

In a scrum Thursday afternoon, provincial Minister of Natural Resources Siobhan Coady said she'sfeeling hopeful about what the reforms will mean for Newfoundland and Labrador.

She acknowledged that the province had been lobbying the federal government to allow approval for exploration wells to go through C-NLOPB rather than the new regulatory agency, and more work will need to be done on that.

At his press conference, O'Regansaid he would like to see exploratory wells be under the C-NLOPB as well, but the details were still being worked out.

O'Regan estimatedit could be a year before the new rules come into effect.

The legislation still has to be passed by the House of Commons.