Offshore Penalty Classifications Updated

Summary#

This is a proposed change to the Canada–Newfoundland and Labrador Offshore Petroleum Administrative Monetary Penalties Regulations published on June 18, 2022. It replaces Parts 2 to 5 of Schedule 1 with a long list that assigns many specific provisions to either Type A or Type B penalties, and it ties when the changes start to the coming-into-force of the Canada–Newfoundland and Labrador Offshore Area Petroleum Operations Framework Regulations. Interested people can make representations within 30 days of publication.

What it does#

• Replaces Parts 2–5 of Schedule 1 of the Canada–Newfoundland and Labrador Offshore Petroleum Administrative Monetary Penalties Regulations with a table that classifies many numbered provisions as either Type A or Type B.
• Says the amendments come into force on the same day as the Canada–Newfoundland and Labrador Offshore Area Petroleum Operations Framework Regulations, or, if registered later, on the day they are registered.
• Invites public comments on the proposed Regulations within 30 days of publication. Comments are to be sent to Cheryl McNeil (Senior Policy Advisor, Offshore Petroleum Management Division, Department of Natural Resources) at cheryl.mcneil@nrcan-rncan.gc.ca.
• Notes the statutory authority for the proposal is the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act.

Who's affected#

• Operators and companies with offshore petroleum activities in the Canada–Newfoundland and Labrador Offshore Area.
• People responsible for compliance, legal risk, and operations at those companies.
• Regulators and anyone currently subject to the Administrative Monetary Penalties Regulations.
• If it’s unclear exactly which businesses or staff will be affected in a specific case, those companies should review the listed provisions or seek advice.

Why it matters#

• The change determines which specific offences or breaches fall into Type A versus Type B, which affects what kind of administrative fines or penalties can be applied.
• The notice itself does not list monetary amounts attached to Type A or Type B in this text, so businesses should check the main regulations or related documents to know the dollar impact.
• The timing rule means these classifications won’t take effect until the Framework Regulations come into force.
• Companies and other interested parties have an opportunity to comment for 30 days after publication if they want to raise concerns or suggest changes.