The C-NLOPB was created in 1986 through the Atlantic Accord for the purposes of regulating the oil and gas industry offshore Newfoundland and Labrador. The Board operates at arms-length from governments and reports to both the Federal and Provincial Ministers of Natural Resources. The Board also has a reporting relationship to the provincial minister of Service NL with regard to offshore occupational health and safety matters. Decisions of the Board, referred to in legislation as ‘Fundamental Decisions’, are referred to government for approval or rejection. Other Board decisions and actions are final, unless otherwise provided for in the legislation.
Pursuant to the legislation, the C-NLOPB has four regulatory mandates: Safety, Environmental Protection, Resource Management and Industrial Benefits. The C-NLOPB’s mandate is limited to the offshore area by legislative restrictions.
The Board is comprised of seven persons; three appointed by the Federal Government, three appointed by the Provincial Government, and a Chair and CEO that is appointed jointly by the two governments.
The C-NLOPB had a budget of $17,670,000 for the fiscal year 2015-16. In approving a budget for submission to Governments, the Board provides for adequate financial resources and appropriate staff to carry out the CNLOPB’s legislative mandate.
Under the Accord Acts, specific responsibilities of the C-NLOPB include:
The C-NLOPB Board also:
(For additional on the role of the CNLOPB, please visit http://www.cnlopb.ca/)
The board is established under provisions of the Act. Sections are as follows:
Jointly established board
9. (1) There is established, by the joint operation of this Act and the federal Act, a board, to be known as the Canada-Newfoundland and Labrador Offshore Petroleum Board.
(2) The board shall be treated as having been established under a law of the province.
(3) The board has the legal powers and capacities of a corporation incorporated under the Canada Business Corporations Act (Canada), including those set out in section 20 of the Interpretation Act.
(4) The board may only be dissolved by the joint operation of an Act of the Parliament of Canada and an Act of the Legislature.
Members of Board
10. (1) The board shall consist of 7 members.
(2) Three members of the board are to be appointed by the federal government, 3 by the provincial government and the chairperson of the board is to be appointed by both the federal government and the provincial government.
(3) One or 2 members of the board may be designated to be vice-chairpersons of the board if they are so designated by both the federal government and the provincial government.
(4) The designation of a vice-chairperson of the board under subsection (3) is effective after both governments have each made the designation.
(5) Each government may appoint 1 alternate member to act as a member of the board in the absence of a member of the board appointed by that government.
(6) Notwithstanding subsection (2) or (5), a member or alternate member of the board may be appointed by both the federal government and the provincial government.
Consultation and appointment of chairperson
12. (1) Consultation between the 2 governments with respect to the selection of the chairperson of the board shall be considered to begin
(a) 6 months before the expiration of the term of office of the incumbent chairperson; or
(b) where applicable, on the date of receipt by the board of notice of the death, resignation or termination of appointment of the incumbent chairperson, whichever occurs earlier.
(2) Where the 2 governments fail to agree on the appointment of the chairperson of the board within 3 months after the beginning of consultation between the governments, the chairperson shall be selected by a panel, consisting of 3 members and constituted in accordance with this section, unless, prior to the selection of the chairperson by the panel, the 2 governments agree on the appointment.
(3) One member of the panel shall be appointed by each government within 30 days after the 3 months referred to in subsection (2).
(4) The chairperson of the panel shall be appointed
(a) jointly by the 2 members of the panel appointed under subsection (3) within 30 days after the later of the 2 appointments made under that subsection; or
(b) where the 2 members of the panel fail to agree on the appointment of the chairperson of the panel within the 30 day period referred to in paragraph (a), by the Chief Justice of Newfoundland and Labrador within 30 days after the expiration of that period.
(5) The chairperson of the board shall be selected by the panel within 60 days after the appointment of the chairperson of the panel.
(6) The decision of the panel selecting a chairperson of the board is final and binding on both governments.
Those who make up the CNLOPB Board should collectively possess the following core competencies:
All individuals appointed to the board are expected to hold the following requisite competencies and experiences:
Members of the C-NLOPB should be available to meet monthly. Any applicable committees of the C??'NLOPB normally meet 4 times per year. Board members are also be expected to spend additional time to review materials and prepare for Board and Committee meetings. Many Board briefings include information containing industry jargon and complex technical information. Some travel to international oil and gas conferences may be expected.
The term of office is detailed in Section 15 of the Act.
Term of office
15. (1) The 1st chairperson of the board shall be appointed for a term of 7 years.
(2) The 1st 3 members of the board to be appointed by each government shall be appointed for terms of 4, 5 and 6 years, respectively.
(3) On the expiration of the initial terms of office referred to in subsections (1) and (2), the chairperson and members of the board shall be appointed for terms of 6 years.
(4) A member of the board, including the chairperson, shall hold office during good behaviour, but may be removed for cause
(a) where that member is appointed by either government, by that government; or
(b) where that member is appointed by both governments, by both governments.
(5) On the expiration of a term of office, the chairperson or a member of the board is eligible for reappointment.
Remuneration rates are provided for in Section 13 of the legislation.
Terms and conditions of appointments
13. (1) The salary and other terms and conditions of the appointment of the chairperson of the board or other members or alternate members appointed by both governments, including the effective date of the appointment, shall be fixed by an order of the federal government and an order of the provincial government after agreement has been reached by both governments on the salary and other terms and conditions.
(2) The salary and other terms and conditions of the appointment of a member appointed by either the federal government or the provincial government shall be agreed on by both governments.
Presently, part-time members are compensated at $5,000 per annum retainer, plus $300 per day for each day spent on Board business (including travel time). Should a part-time Vice-Chair be appointed, that member is compensated at $5,000 per annum retainer plus $600 per day. Remuneration is subject to deductions for Canada Pension Plan premiums, Employment Insurance premiums, Government Money Purchase Pension Plan, and income tax. Part-time members are covered by an accidental death and dismemberment travel insurance policy. Group insurance benefits (e.g., health and dental) are not provided to part-time members.
Conflict of Interest
In accordance with s. 16(1) of the Accord Acts, Conflict of Interest Guidelines ("Guidelines") have been established for Board members. Part-time members are subject to the same requirements as full-time members except that full-time members are prohibited from engaging in certain activities during and after their term of appointment. Upon appointment and any time thereafter, a member is required to disclose his or her "controlled assets" or interests with a "business entity". Controlled assets would include assets whose value could reasonably be expected to be affected by a Board decision; a business entity would include one that is engaged in operations or in the provision of goods or services involving petroleum within the offshore area. Where a member owns controlled assets, he or she is required to sell them or make them subject to a trust arrangement. Other assets include "declarable assets" which, although different, could be deemed controlled assets. A declarable asset is defined in the Guidelines and would include an asset of substantial value, or any investment or business relationship in the petroleum sector, not related to the offshore area, which could be perceived as potentially giving rise to a conflict of interest.