Question Period Note: Regional Assessment of Offshore Oil & Gas Exploratory Drilling East of Newfoundland & Labrador

• Fisheries and Oceans Canada has collaborated with the Impact Assessment Agency of Canada and the provincial government to plan the sustainable use of Newfoundland and Labrador’s offshore area.
• Fisheries and Oceans Canada’s scientific advice was provided to the Impact Assessment Agency of Canada to ensure that conservation and protection of the marine ecosystem was assured as part of the regional assessment work.
• Fisheries and Oceans Canada will continue to work with other federal departments, the Government of Newfoundland and Labrador and the Canada-Newfoundland and Labrador Offshore Petroleum Board to ensure that impacts on fish and fish habitat are avoided.

• On November 24, 2020, there was media coverage of the World Wildlife Fund Canada’s (WWF-Canada) comments to the Canada-Newfoundland and Labrador Offshore Petroleum Board which criticized their decision to accept a bid from British Petroleum Canada to explore part of the Northeast Newfoundland Slope marine refuge for drilling. The exemption was possible because of the June 2020 regulation which exempts exploratory drilling in specific areas of the Newfoundland offshore from project specific federal impact assessments. Any proposed oil and gas activity would still be evaluated under various other statutes, including under the Fisheries Act.
• On October 28, 2020, the Terms of Reference for the Regional Assessment (RA) Follow-up Program were posted on the Impact Assessment Agency of Canada’s website for a six-week public comment period. The RA Follow-up Program will track and report on the implementation and effectiveness of the commitments outlined in the Ministerial Response to the RA Report published June 4, 2020.
• On October 1, 2020, WWF-Canada issued a news release expressing strong concerns about the RA process, mentioning, for example, that DFO’s recently published Canadian Science Advisory Secretariat (CSAS) report concluded that many of the sections of the RA Report were “not considered reliable sources of information for decision-making processes from a scientific perspective.” The news release also quotes concerns from different non-governmental organizations toward the RA process.
• The CSAS Review of the Impact Assessment Agency’s Draft Regional Assessment of Offshore Oil and Gas Exploratory Drilling East of Newfoundland and Labrador was published on September 3, 2020.
• In December 2019, DFO shared a draft version of the CSAS report with the Agency in order to ensure that the Agency had it as soon as possible to inform the work it was undertaking. The CSAS report informed, in part, DFO’s official comments on the draft RA Report, also provided to the Agency in December 2019, identifying important gaps in the document.
• After sharing the draft CSAS report and DFO’s comments on the draft RA report, DFO agreed to provide support and capacity to address outstanding issues identified in the report. Working closely with the RA Committee and the Agency, most of the issues were addressed by February 2020.
• The Agency has recently initiated another RA in relation to mining development in the Ring of Fire in Ontario that implicates DFO. Another RA has been requested by the Mohawks of Kahnawake regarding cumulative effects in the St. Lawrence river. The Department will continue to collaborate and support the Agency with respect to these RAs.
• On June 4, 2020, the Minister of Natural Resources announced the coming into force of a Ministerial Regulation that will exempt exploratory drilling projects in an area of the Canada-Newfoundland and Labrador (NL) offshore from the requirement to undergo a federal impact assessment under the Impact Assessment Act.
o Before the release of the Regulation, the request for an injunction to pause the RA was denied, but the judicial review is being allowed to continue.
• On May 20, 2020, a notice of a motion to strike the application for a judicial review was filed by the Respondents (Attorney General of Canada and the Minister of the Environment).
• On May 12, 2020, environmental groups announced that they were taking legal action against the federal government for failing to properly assess the impacts of exploratory drilling for oil and gas in NL’s offshore waters.
• On March 4, 2020, the RA committee published its final report, which included its conclusions on the effects of offshore oil and gas exploratory drilling in the Offshore East of NL and recommendations on how to best use the results of the RA to aid decision making. This included specific requirements to be included in the regulation for all future exploratory drilling activities in the study area. A number of the RA committee’s recommendations were targeted at specific organizations including DFO, ECCC and the Canada-NL Offshore Petroleum Board (the Board). These recommendations are being addressed in a joint Ministerial Response, which was published at the same time as the Regulation (June 4, 2020).
o Development of the Regulation and associated Indigenous and public consultation was led by the Agency with input from several stakeholders, including DFO. Other departments and entities that were involved in the RA process include Natural Resources Canada, Environment and Climate Change Canada, the Board, and the Province of NL.
o Measures to protect corals and sponges and to strengthen other effective area-based conservation measures (OECMs) were also considered during the RA process. Plans regarding OECMs will need to be developed in consultation with DFO under the Regulation.
o Although an impact assessment will not be required for projects that meet the conditions of the Regulation, the proponent will still be required to prepare various plans, such as monitoring plans or spill response plans, prior to undertaking a project. While the Department may provide input into the proponent’s plans, the Board is responsible for providing approval and ensuring that regulatory conditions are met before drilling activities begin.
o Projects that meet the conditions of the Regulation are still subject to the Fisheries Act and other applicable acts and regulations. However, it is important to note that the Canada-Newfoundland and Labrador Atlantic Accord Implementation Act will prevail over provisions of the Fisheries Act and other legislation such as the Oceans Act in cases of conflicting application.
• On April 15, 2019, the Minister of Environment and Climate Change launched a RA of exploratory drilling projects in Eastern Offshore NL. An independent five-member committee was appointed to conduct the RA, with the directive to facilitate a more effective and efficient assessment process for exploratory drilling projects in the defined offshore study area, while also ensuring that the highest levels of environmental protection continued to be applied and maintained.

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