Regulating Exports of Petroleum Resources

Legislation introduced today would ensure future petrochemical projects in Nova Scotia have access to feedstock from the offshore.

"This bill ensures that Nova Scotians will be the ones to benefit most from the development of our petroleum resources," said Petroleum Directorate Minister Manning MacDonald. "We intend to ensure our natural gas will be a keystone of a new provincial economy as we enter a new century."

The Petroleum Resources Removal Permit Act would require producers to receive the government permission to export Nova Scotia petroleum products such as natural gas liquids.

The development of a petrochemical industry is one of the next stages in the development of Nova Scotia's emerging energy sector. The proposed legislation would guarantee the province sufficient supplies of gas liquids, such as ethane, butane and propane, to support a domestic petrochemical sector.

"This legislation is an important statement of our economic development philosophy," said Mr. MacDonald. "It is our gas. We want the jobs here, not shipped down a pipeline to another jurisdiction.

"This legislation speaks to what kind of provincial economy we want to create from our oil and natural gas."

The proposed act stipulates penalties of up to $1 million a day and two years' imprisonment for parties found guilty of breaking the law. Directors, officers and agents of companies are liable for prosecution if they participate, authorize, direct or assent to an offence under the act.

Regulations governing the removal of petrochemical feedstock have been in place for some time in other provinces, including Alberta, British Columbia and Saskatchewan.

Petroleum activity in Nova Scotia has been steadily increasing. The first stage of the Sable Offshore Energy Project will be completed later this year. Tier 2 of the project will be completed within five years. This is on top of the approximately $740 million in exploration leases awarded in the past year. "We are on the verge of a new economy, and this legislation will ensure that those who own the resources are the ones who benefit the most from their discovery and production," said Mr. MacDonald.