The approved recommendations will improve the Commission’s management of non-operating oil and gas sites within British Columbia. — Photo courtesy The Energy Mix website
The BC Oil and Gas Commission has accepted all of the recommendations of the B.C. Auditor General’s report The BC Oil and Gas Commission’s Management of Non-operating Oil and Gas Sites and is working to address all of the matters raised in the report. Our official response can be found below:
The BC Oil and Gas Commission (Commission) thanks the Office of the Auditor General for its audit of the The BC Oil and Gas Commission’s Management of Non-operating Oil and Gas Sites, which focused on the period between January 2015 and October 2018. As part of its continual improvement to its strategic management systems, the Commission instigated a number of new initiatives prior to, during and since the audit period, including:
- Partnering with First Nations from northeast B.C. to restore former oil and gas industry sites to
- their natural state, News Release 2019-01;
- Developing a Comprehensive Liability Management Plan, Information Bulletin 2018-02;
- Changes to orphan liability levy, Industry Bulletins, 2018-20 and 2019-01; and,
- Developing a Restoration Framework.
Many of the responses below reference these initiatives.
In May 2018, the provincial government enacted the Energy, Mines and Petroleum Resources Statutes Amendment Act (Bill 15) enabling a number of improvements to the regulatory framework in B.C. for management of non-operating oil and gas sites. The amendments have allowed the Commission to improve the funding model, strengthened the Commission’s authority to make regulations in the areas of orphan site treatment and closure, risk assessment/mitigation, and accelerate the rate of inactive site restoration. These new tools will address the restoration of orphan sites in a timely manner, while ensuring no direct costs to taxpayers.
As part of its ongoing improvement efforts, the Commission is developing a Comprehensive Liability Management Plan (CLMP), which holds industry accountable, addresses unrestored oil and gas sites, and protects the environment and public safety. Phase one of the CLMP involves the Commission establishing regulations to increase industry’s rate of restoration and reduce the number of inactive oil and gas sites. Requiring timely restoration will also reduce the number of potential orphan sites in the province. Engagement on the CLMP with local governments and local First Nations, industry, land owners, stakeholders and the public is ongoing.
The Commission is developing a Restoration Framework that integrates restoration initiatives undertaken by the Commission and other ministries. Incorporating the recommendations from this audit into the Framework will assist in establishing a prioritized, effective and coordinated approach to restoration.
These activities, and the actions associated with implementing the recommendations, will improve the Commission’s management of non-operating oil and gas sites within British Columbia.
