Act
Working on wells and associated works without the consent of an operator in limited circumstances to prevent, decrease, or eliminate a hazard to the public or to the environment
Regulation Number(s):
-
Instrument Type:
Act
Bill or Act:
Oil, Gas and Salt Resources Act
Summary of Proposal:
Bill 228, Resource Management and Safety Act, 2024
The government introduced Bill 228, Resource Management and Safety Act, 2024 that will help address the challenges Ontario is facing including a projected increase in wildland fire, managing carbon dioxide emissions, hazards posed by certain deteriorating oil and gas wells, and supporting rapid infrastructure and housing development.
Details
There are thousands of oil and gas wells primarily located in southwestern Ontario. Over time, these wells can deteriorate and become increasingly hazardous at the surface and in the sub-surface. This could cause gas migration that can contaminate drinking water or result in other hazards that can impact people and the environment. Hazardous wells can also leak and cause gas migration to neighboring properties.
The Oil, Gas and Salt Resources Act (OGSRA) currently allows inspectors to order operators to take steps to bring a work (wells and equipment used in association with the well) into compliance with the Act. However, the OGSRA does not provide the Ministry with authority to address a hazard directly by performing work on the well or related equipment without consent of an operator.
This can, in particular, become an issue where there is non-compliance in combination with the death, insolvency or bankruptcy of an operator, and the hazard is not addressed.
MNR is proposing legislative amendments that would:
• Create the authority in the OGSRA for the Minister to take action without the operator's consent to prevent, decrease, or eliminate a hazard to the public or to the environment with respect to a well and associated works (e.g., pipelines, etc.) in limited circumstances of non-compliance by a well operator, and
• pursue non-compliant well operators for the cost of that remediation.
The government introduced Bill 228, Resource Management and Safety Act, 2024 that will help address the challenges Ontario is facing including a projected increase in wildland fire, managing carbon dioxide emissions, hazards posed by certain deteriorating oil and gas wells, and supporting rapid infrastructure and housing development.
Details
There are thousands of oil and gas wells primarily located in southwestern Ontario. Over time, these wells can deteriorate and become increasingly hazardous at the surface and in the sub-surface. This could cause gas migration that can contaminate drinking water or result in other hazards that can impact people and the environment. Hazardous wells can also leak and cause gas migration to neighboring properties.
The Oil, Gas and Salt Resources Act (OGSRA) currently allows inspectors to order operators to take steps to bring a work (wells and equipment used in association with the well) into compliance with the Act. However, the OGSRA does not provide the Ministry with authority to address a hazard directly by performing work on the well or related equipment without consent of an operator.
This can, in particular, become an issue where there is non-compliance in combination with the death, insolvency or bankruptcy of an operator, and the hazard is not addressed.
MNR is proposing legislative amendments that would:
• Create the authority in the OGSRA for the Minister to take action without the operator's consent to prevent, decrease, or eliminate a hazard to the public or to the environment with respect to a well and associated works (e.g., pipelines, etc.) in limited circumstances of non-compliance by a well operator, and
• pursue non-compliant well operators for the cost of that remediation.
Analysis of Regulatory Impact:
The proposed amendment will result in an increase of the regulatory count (+1) where operators are ordered to pay for the costs of the work undertaken by the ministry.
Creating authority for the minister to take action to eliminate a hazard in limited circumstances of non-compliance by a well operator and to pursue non-compliant well operators for the cost of remediation will not result in any direct compliance costs. Costs to non-compliant well operators through cost recovery provisions would be associated with replenishment of the security and compliance with existing regulations and operational standards. There is no change in compliance hours associated with this proposal. There are no additional costs, including administrative costs, to operators associated with this proposal.
Creating authority for the minister to take action to eliminate a hazard in limited circumstances of non-compliance by a well operator and to pursue non-compliant well operators for the cost of remediation will not result in any direct compliance costs. Costs to non-compliant well operators through cost recovery provisions would be associated with replenishment of the security and compliance with existing regulations and operational standards. There is no change in compliance hours associated with this proposal. There are no additional costs, including administrative costs, to operators associated with this proposal.
Further Information:
Link to Environmental Registry
Proposal Number:
24-MNRF012
Posting Date:
November 25, 2024
Comments Due Date:
January 9, 2025