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ORLEN ORLEN Group 2017
Integrated Report

Regulatory Environment

GRI INDICATORS:
Capitals:

The ORLEN Group operates on regulated markets, so compliance of the Group’s activities with legal regulations is a key aspect of its business.

Under their regulatory risk management policies, PKN ORLEN and the other ORLEN Group companies engage in a fully transparent and open dialogue based on applicable laws, which involves reviewing drafts of legislative solutions at the national and EU legislation level. In addition, the Group’s relations with the regulators, control and supervisory authorities are coordinated on an ongoing basis, and the Group operates a process of obtaining and managing permits and authorisations.

POLAND:

Key public administration authorities in the ORLEN Group’s regulatory environment in Poland:

  • President of the Council of Ministers,
  • Minister of Energy,
  • Minister of Finance,
  • Minister of the Environment,
  • President of the Energy Regulatory Office,
  • President of the Material Reserves Agency,
  • President of the Office of Competition and Consumer Protection,
  • President of the Polish Office of Technical Inspection/Director General of the Transport Technical Authority,
  • President of the Polish Office of Rail Transport,
  • President of the Polish Financial Supervision Authority,
  • Central Office of Measures,
  • Chief Inspector of the National Labour Inspectorate, Environmental Protection Inspection Authority, National Fire Service.

Key areas of the ORLEN Group’s activities:

  • Liquid fuels (production; storage; trade; trade in liquid fuels with foreign partners; transmission),
  • Power generation, including electricity and heat generation (production; trade; ransmission/distribution),
  • Natural gas (trade in gas fuels; trade in natural gas with foreign partners),
  • Emergency stocks of crude oil and fuels,
  • Biocomponents and liquid biofuels (implementation of the National Indicative Target),
  • Energy efficiency,
  • Energy-intensive companies,
  • Transport of goods covered by the SENT system.

Key opportunities and risks arising from the regulatory environment in Poland in connection with the ORLEN Group’s business:

  • Risk associated with the obligation to maintain stocks of crude oil.

The Group is subject to numerous obligations involving maintenance of emergency stocks of crude oil and fuels, imposed by the Act on Stocks of Crude Oil, Petroleum Products and Natural Gas, and on the Rules to Be Followed in the Event of Threat to National Fuel Security or Disruptions on the Petroleum Market of February 16th 2007 (the “Act on Emergency Stocks”).
Under new regulations in this area, since January 1st 2015 producers and traders have been under the obligation to pay a stocks charge, in exchange for a gradual reduction of the level of physical stocks required to be maintained for the purposes of the Material Reserves Agency.

As a manufacturer and importer of liquid fuels, since December 31st 2017 the Group has been obliged to maintain minimum stocks equal to the equivalent of 53 days of the average daily production or imports in the previous calendar year. Furthermore, to comply with statutory requirements on emergency stocks of crude oil and liquid fuels, it pays a stocks charge to the Emergency Stocks Fund, managed by the President of the Material Reserves Agency.

In addition, failure to maintain the required stock levels or breach of other obligations under the Act on Emergency Stocks entails the risk of high penalties being imposed.

  • Risk related to the obligation to achieve the National Indicative Target (NIT) for biocomponents.

The Act on Biocomponents and Liquid Biofuels imposes the requirement to achieve the National Indicative Target (NIT), i.e. to ensure the required minimum share of biocomponents in the total volume of liquid fuels and biofuels both sold on the market and used for own needs. Provisions of the Act define the legal transactions which trigger the obligaton to achieve the NIT as well as the entities subject to that obligation. Starting from 2015, only those biocomponents which meet the criteria of sustainable development set out in the EU and Polish laws may be used to fulfil the NIT obligation.

In 2017, the Act was amended and a number of regulatory solutions advocated by PKN ORLEN were incorporated into the Act, including in particular:

  • Mandatory quarterly blending.
  • Introduction of a substitution fee at a level enabling a significant reduction of the volume of B100 biofuel sold as part of the implementation of the NIT.
  • Admission, as of 2020, of the co-hydrogenation technology.
  • Adjustment of the amount of penalties for potential failure to meet the NIT.
  • Double-counting of next-generation biocomponents.
  • Adjustment of the 2020 NIT target with regard to advanced biocomponents;.
  • Imposing a limit on achieving the NIT through HVO imports (0.3% in 2018 and 0.5% in 2019).

As a result, the actual NIT in 2018 (after reducing the 7.5% base NIT by 14%, and after further reduction through the substitution fee by another 15%) will amount to 5.48% of the energy content of fuels compared with 5.82% in 2017. This will help reduce the costs of meeting the NIT obligation and will foster fair competition on the liquid fuels market (elimination of the surplus of B0 and B100 blends).

If NIT is not met, a penalty may be imposed on the Group, calculated on the basis of the formula defined in the Act on Biocomponents and Liquid Biofuels.

  • Risk related to the impact of regulations on trading in greenhouse gas emission allowances.

The ORLEN Group companies are subject to the EU regulation establishing the greenhouse gas emission allowance trading scheme (the EU ETS Directive) that forms part of the EU climate and energy package. The purpose of the EU ETS Directive is to promote an annual reduction of CO2 emissions until 2020.

Three Polish production complexes owned by the ORLEN Group, i.e. the refinery, the CHP plant, the olefins unit in Płock (PKN ORLEN) as well as the ammonia unit in Włocławek (ANWIL) are the ORLEN Group’s largest carbon dioxide emitters. All those and other installations participating in the EU Emissions Trading Scheme are included in the list of installations prepared by Poland and submitted to the European Commission for the purpose of free allocation of emission allowances in the third trading period (covering the years 2013–2020). The list of installations and free allocations of emission allowances has been approved by the European Commission and sets the number of free allowances. The total number of emission allowances allocated to the ORLEN Group companies free of charge is insufficient for their needs and, in consequence, they must purchase additional emission allowances, which generates additional costs.

In 2017, a European debate continued on how to thoroughly reform the EU ETS. As a result, Directive (EU) 2018/410 of the European Parliament and of the Council of 14 March 2018 amending Directive 2003/87/EC to enhance cost-effective emission reductions and low-carbon investments, and Decision (EU) 2015/1814, was adopted. The system for trading in CO2 emission allowances under the new legal framework assumes their progressive reduction in the European Union industry as the new regulation introduces a linear factor of 2.2%, which means that the number of allowances allocated each year will decrease and, most probably, the demand for emission allowances and their prices will grow. The amending directive is to be implemented into Polish law by October 9th 2019, with the exception of the amendment concerning the financial assistance from the state to sectors at risk of carbon leakage, which is to be implemented by December 31st 2018.

  • Combating grey market.

In 2017, PKN ORLEN was actively involved in public consultations of amendments to tax and administrative regulations aimed at combating the grey market in liquid fuels, which for years has been a major problem facing the fuel sector. The Group focused on working to improve the system for monitoring the road transport of tax-sensitive goods, i.e. the SENT system or the transport package, and on draft secondary legislation on the energy package adopted in 2016. Additionally, in 2017 PKN ORLEN implemented and applied on a day-to-day basis all new legal requirements under the energy and transport packages. In particular, it had all its fuel licenses aligned with the new regulations, and ensured compliance with all the new reporting and disclosure requirements towards authorities regulating Poland’s liquid fuels market. PKN ORLEN’s efforts took the form of a public dialogue with the authorities regulating the liquid fuels market in Poland, in particular with the President of the Energy Regulatory Office, President of the Material Reserves Agency, and the National Revenue Administration, as well as close cooperation with the Group’s customers and trading partners.

  • Energy efficiency.

To effectively fulfil its strategic objectives, PKN ORLEN strives to improve energy efficiency, which is essential for an energy-efficient economy model. With this approach, PKN ORLEN commenced work to find the method of managing energy efficiency certificates at the Group companies in order to use solutions under the existing legislative framework that enable reducing its costs of electricity and natural gas purchases based on completed efficiency improvement projects on assets covered by the CO2 emissions trading system, and of having heat and natural gas classified as a form of final energy, with savings of this energy achieved through efficiency improvement projects to be applied towards the fulfilment of the efficiency-related obligation. This helped optimise the cost of white certificates with regard to the volume of consumed gas and reduce, by 1.5% in 2017, the cost of achieving final energy savings.

  • Opportunities arising from participation in the capacity market.

The Act on Capacity Market of December 8th 2017 defines the organisation of the capacity market and the rules governing provision, against consideration, of standby services to supply electricity to the power system and the supply of that electricity to the system in periods of emergency. Bids for expected service rates will be selected through an auction. Based on the framework schedule of the capacity market processes for 2018, three main auctions will be held this year, during which capacity suppliers will offer their standby services for 2021, 2022 and 2023.

The winning bids will be those which offer the lowest price while giving maximum effect to the principle of technological neutrality expected by the European Commission. The same rules will apply when selecting bids placed by Polish electricity producers, including operators producing electricity through high-efficiency industrial cogeneration, and a limited number of bids from foreign producers, as well as Demand Side Response service bids, that is proposals to reduce electricity consumption and use of capacity on demand. The above means that the capacity market may be open to PKN ORLEN’s generating units and the production plant in Płock, as a DSR services provider. The ORLEN Group considers this to be an opportunity to secure attractive external financial support to develop its power generation segment.

Currently, a general certification process is being carried out by PSE S.A. Once closed, the eligible physical generating units with a gross generation capacity of no less than 2 MW will be entered in the capacity market register.

  • Monitoring of the transport of certain goods (the SENT system).

The Act on the System for Monitoring the Road Transport of Goods came into force in April 2017. It supplements the earlier legislative solutions introduced by the fuel and energy packages, and its key objective is to further reduce the grey market and prevent evasion of taxes and charges and tax fraud.

The Act introduces the obligation to register road shipments of goods considered to be sensitive (motor fuels and their derivatives, fuel oils, lubricant oils and lubricant preparations, vegetable oils that can be used as additives to motor fuels, products containing ethyl alcohol / de-icing fluids containing ethyl alcohol, thinners and solvents/, fully denatured ethyl alcohol, dried tobacco). The obligation applies to shipments within Poland, shipments of goods purchased within the UE, and transit. The Act introduces effective control mechanisms (inspecting the goods actually transported instead of inspecting the documents only) and imposes severe sanctions for non-compliance with the applicable requirements.
In 2018, the Act is planned to be amended to enable the tracking of individual shipments (with the use of locators installed in vehicles) and expanding the monitoring system to also cover the transport of goods by rail.

PKN ORLEN actively participated in the entire process of drafting the bill. The Company also worked to develop effective solutions provided for in the Act by designing the system for automatic registration of fuel transport from terminals in the SENT system, and testing the system’s subsequent modifications. At present, approximately 30,000 road shipments of fuel from terminals are registered in the system each month.

  • Exploration and production activities.

Hydrocarbon exploration, appraisal and production activities are managed by the Company based on the appropriate integrated management system developed and implemented by ORLEN Upstream. The main legislative act governing business activities of the ORLEN Group’s Upstream segment in Poland is the Geological and Mining Law. In 2017, it was amended to include requirements designed to limit the risk of a major accident while performing activities related to the exploration for, appraisal and production of hydrocarbons from deposits located in maritime areas by introducing mechanisms to protect the natural environment and improve safety of operations. In addition, currently legislative work continues to further amend the Law. The proposed amendments include new rules related to the entrepreneur’s right of first refusal with respect to applying for the establishment of mining usufruct, and the introduction of an open-door procedure for granting hydrocarbon licences.

 

CZECH REPUBLIC:

The key bodies in Unipetrol’s regulatory environment in the Czech Republic are:

  • Ministry of Industry and Trade.
  • Ministry of the Environment.
  • Ministry of Finance.
  • Office for the Protection of Competition.
  • Energy Regulatory Office.
  • Customs Administration.
  • Environmental Inspection.
  • Trade Inspection.

Key legislation having influence on Unipetrol´s business on the Czech market:

  • Act on Fuels and Fuel Stations n. 311/2006 Coll.
  • Excise Duty Act n. 353/2003 Coll.
  • Act on VAT n. 235/2004 Coll.
  • Act on Business Conditions and State Administration in Energy Sectors and Amendments to Certain Laws (Energy Act) n. 458/2000 Coll.
  • Act on Renewable Sources of Energy n. 165/2012 Coll.
  • Act on Stabilisation of Public Budgets (Energy Tax) n. 261/2007 Coll. – coal, CNG tax.
  • Air Protection Act n. 201/2012 Coll. – bioduty.
  • Government notice on the criteria of sustainability of biofuels n. 351/2012 Coll.
  • Act on Spatial Planning and Building Code (Building Act) n. 183/2006 Coll.
  • Act on Water and Amendments to Certain Laws n. 254/2001 Coll.
  • Waste Act n. 185/2001 Coll.
  • Act on Integrated Pollution Prevention and Control n. 76/2002 Coll.
  • Accidents Prevention Act n. 224/2015 Coll.
  • Environmental Impact Assessment Act n. 100/2001 Coll.
  • Labour Code n. 262/2006 Coll.
  • Civil Code n. 89/2013 Coll.
  • Companies Act n. 90/2013 Coll.

GERMANY:

Regulatory environment of ORLEN Deutschland in Germany:

  • Private/civil law – regulations governing the relationships of individuals, e.g. general civil law, commercial law, companies law, intellectual property and competition laws.
  • Public law – regulations governing the relationship of individuals and the public authorities, e.g. constitutional law, administrative law, tax law.
  • Criminal law as an independent part of public law is mainly provided in the Criminal Code.
  • Procedural law is also an independent part of public law and deals with the judicial process to decide contentious legal relationships.

ORLEN Deutschland is subject to the following laws and regulations:

  • Fuel sales: e.g. commercial law, companies law, general civil law, competition law, construction/building law, pollution control law, waste law, German water law, soil conservation law, conservation law, laws on transport of dangerous good, laws governing industrial safety, environmental and consumer protection laws.
  • Non-fuel products / catering services: e.g. commercial law, companies law, general civil law, competition law, and food law.

There are various local institutions, e.g. local administration authorities (including building authorities, water management authorities, waste management authorities), state authorities (including the data protection and security authority, etc.), and federal authorities (including Federal Cartel Office, etc.).

LITHUANIA:

  • Grey market

The Lithuanian Energy Law and related legal acts which have  been amended to fight the grey market took effect on February 1st 2018. There is hope for positive results, however practice from other markets (especially Poland) shows that tax legislation has to be amended as well for the measures to achieve substantial results.
For that reason the industry is continuing dialogue with the Government to stay alert, monitor the situation and prepare to take further measures against tax evasion.

  • Biofuels. Sustainability criteria

The Law on Energy of Renewable Resources should be amended to include requirement that only biofuels meeting the sustainability criteria may be used for obligatory blending.
Currently neither legal requirements to use only sustainable biofuels for obligatory blending, nor control mechanism for compliance with the sustainability criteria are foreseen in Lithuania. This situation harms competitiveness of ethical and conscious businesses that use more expensive sustainable biofuels. It also reduces the overall share of renewables in the national transport energy consumption, as only sustainable biofuels may be counted towards this national goal. Therefore it is a mutual interest of both business and the government to fix this situation. ORLEN Lietuva has presented multiple proposals on the issue.

  • Public Service Obligation (PSO) in the electricity sector

PSO is a form of tax which is included in the price of electricity. It is a state aid which is used to subsidise electricity generation from renewable sources, finance energy projects of significant importance to the state, maintain state security electricity reserve, etc. The scheme is not approved by EC according to the State Aid rules of the EU.
The Lithuanian energy intensive industry is working actively for the PSO model to be aligned with the EU requirements, and also include an exemption for electricity-intensive industries. A reduced PSO would improve competitiveness of energy-intensive companies.

CANADA:

CANADIAN statues, regulations and regulatory bodies in the oil and gas industry

Canadian oil and gas companies’ activities are subject to various regulations and control measures (including with respect to land rights, exploration, development, production, refining and enrichment, transport and marketing) provided for in laws on oil and gas prices and taxation, introduced by authorities of various levels following agreements reached between the federal government and provincial governments of Alberta, British Columbia, Saskatchewan and New Brunswick, which must be taken into account by businesses investing in the oil and gas sector. The current legislation is available to the public. The company is unable to predict how the legislation will evolve and what amendments may be made to the regulations in the future. Presented below are the key acts, regulations and agreements applicable to the oil and gas industry, both at the federal level and in the provinces where the Company operates.

Provincial statutes, regulations and regulatory agencies of Canada

  • Provincial statutes and regulations in force in Alberta.

Mines and Minerals Act – governs the management and disposition of rights to Crown-owned (i.e. state-owned) mines and minerals, including the imposition and collection of auction fees, rentals and production royalties; relevant regulations:

  • Deep Oil Exploratory Well Regulation.
  • Drilling Royalty Credit Regulation.
  • Enhanced Oil Recovery Royalty Regulation.
  • Enhanced Recovery of Oil Royalty Reduction Regulation.
  • Natural Gas Royalty Regulation 2009.
  • Natural Gas Royalty Regulation 2017.
  • New Well Royalty Reduction Regulation.
  • New Well Royalty Regulation.
  • Petroleum Marketing Regulation.
  • Petroleum Royalty Regulation, 2009.
  • Petroleum Royalty Regulation, 2017.

Responsible Energy Development Act – establishing the Alberta Energy Regulator (AER) and setting forth its general powers, governance structure, mandate, duties and functions.

Coal Conservation Act and Coal Conservation Rules – governing the appraisal, development and conservation of Alberta’s coal resources.

Gas Resources Preservation Act – governing natural gas and propane production in the province of Alberta.

Oil and Gas Conservation Act – governing conservation and development of oil and gas resources in the province of Alberta, including implementation of rules under the statute for safe and effective exploration for and development of resources and environmental pollution control; relevant rules and regulations:

  • Oil and Gas Conservation Rules.
  • Orphan Fund Delegated Administration Regulation.

Oil Sands Conservation Act – governing conservation and development of oil sand resources to ensure their orderly, efficient and economical development in the public interest; relevant rules and regulations:

  • Oil Sands Conservation Rules.

Pipeline Act – governing the construction and operation of pipelines in the province of Alberta; relevant rules and regulations:

  • Pipeline Rules.

Environmental Protection and Enhancement Act – governing protection, enhancement and wise use of the natural environment and defining proposed activities subject to approval or registration; relevant rules and regulations:

  • Environmental Assessment Regulation.

Water Act – supporting and promoting conservation and management of water, including reasonable water allocation considering the need for Alberta’s economic growth and prosperity; relevant rules and regulations:

  • Water (Ministerial) Regulation.
  • Water (Offences and Penalties) Regulation.

Public Lands Act — in conjunction with the Responsible Energy Development Act, it governs the use of public lands; relevant rules and regulations:

  • Exploration Regulation.
  • Public Lands Administration Regulation.

Climate Leadership Act — providing for a carbon levy on consumers of fuel in Alberta.

Oil Sands Emissions Limit Act – setting annual oil sands greenhouse gas emissions limits.

Alberta regulations.

Alberta Energy (Ministry of Energy of the Province of Alberta) – manages the development of the province’s non-renewable resources, grants rights to explore for and develop resources, assures sustained prosperity in the interests of Albertans through the stewardship of energy and mineral resource systems, responsible development and wise use of energy.

Alberta Energy Regulator – regulates oil, oil sand, natural gas and coal projects across their entire life cycles, from application and commencement of field work, to production, closure and reclamation; it also conducts environmental impact assessments of energy projects.

Natural Resources Conservation Board – the Board is responsible for reviews of proposed major natural resource projects, and for the regulation of confined feeding operations in Alberta; as a decision maker, it strives to exemplify integrity and foresight in the best interests of Alberta.

Surface Rights Board – a quasi-tribunal that grants access rights and assists landowners/occupants and operators in resolving disputes about compensation when operators require access to private land or occupied Crown-owned (i.e. state-owned) land to develop subsurface resources such as oil, gas, and coal or to build and operate pipelines and power transmission lines.

  • Provincial statutes and regulations in force in New Brunswick.

Oil and Natural Gas Act - governing leasing, exploration for and development of oil and gas resources in the province of New Brunswick; relevant regulations:

  • Survey System Regulation.
  • Geophysical Exploration Regulation.
  • Licence to Search and Lease Regulation.
  • Prohibition Against Hydraulic Fracturing Regulation.

Petroleum Act – not yet effective; will supersede the Oil and Natural Gas Act.

Clean Environment Act – providing for environmental impact assessment of planned projects in the province of New Brunswick; relevant regulations:

  • Environmental Impact Assessment Regulation.

Regulatory bodies in New Brunswick.

Department of Energy and Mines – administers the issues of land rights, oil and gas exploration, drilling and extraction, and well decommissioning.

Department of Environment and Local Government – is responsible for implementing the assessment and approval procedure for the purposes of regulating and monitoring environmental and social issues related to the construction, operation and decommissioning of oil and gas projects and infrastructure.

Energy and Utilities Board – a Crown agency which regulates the electricity, natural gas, pipeline and motor carrier industries and sets maximum gasoline prices for the province.

  • Provincial statuets and regulations in force in British Canada.

Petroleum and Natural Gas Act – governing the management and disposition of rights to Crown-owned (i.e. state-owned) mines and minerals, including the imposition and collection of auction fees, rentals and production royalties; relevant regulations:

  • Petroleum and Natural Gas Drilling Licence and Lease Regulation.
  • Petroleum and Natural Gas Grid Regulation.
  • Petroleum and Natural Gas Act Fee, Rental and Work Requirement Regulation.

Oil and Gas Activities Act – governing exploration for and development of oil and gas deposits and consultations in this respect; relevant regulations:

  • Consultation and Notification Regulation.
  • Drilling and Production Regulation.
  • Environmental Protection and Management Regulation.
  • Oil and Gas Activities Act General Regulation

Environmental Management Act - ensuring protection of human health and quality of water, land and air in British Columbia using modern environmental management tools.

Regulatory bodies in British Canada.

Ministry of Energy, Mines and Petroleum Resources – is responsible for British Columbia’s electricity, alternative energy, mining and hydrocarbon production, including the auction fee system for hydrocarbon licences; in addition, it supervises the Oil and Gas Commission and other state agencies operating in the energy sector.

Oil and Gas Commission – an independent single-window regulatory agency with responsibilities for overseeing oil and gas operations in British Columbia, including exploration, development, pipeline transport and reclamation.

Surface Rights Board – provides support in resolving disputes between land owners and entities seeking access to private land to explore for and develop Crown-owned (i.e. state-owned) sub-surface resources, such as oil, natural gas, coal, other minerals and geothermal resources.

  • Provincial statutes and regulations in force in Saskatchewan.

The Oil and Gas Conservation Act – governing proper exploration for and development of oil and gas resources in Saskatchewan as well as optimum production of oil and gas; relevant regulations:

  • The Oil and Gas Conservation Regulations, 2012.
  • The Petroleum Registry and Electronic Documents Regulation.

The Crown Minerals Act – governing the lease of rights to extract Crown minerals and the Crown’s right to collect production royalties; relevant regulations:

  • The Crown Oil and Gas Royalty Regulations, 2012.
  • The Oil and Gas Tenure Registry Regulations.

The Environmental Assessment Act – establishing the legislative basis to ensure that development of mineral deposits includes taking appropriate environmental protection measures based on integrated environmental impact assessment.

The Environmental Management and Protection Act, 2010 – governing potentially harmful activities and substances.

Regulatory bodies in Saskatchewan.

Ministry of Economy – regulates non-renewable resources exploration, development, production and protection, and issues licences for the lease of land and production licences.

Ministry of Environment – provides science-based solutions, compliance and mitigation measures aimed at protecting the environment, safeguarding communities and helping to ensure balanced economic growth; this is done by conducting environmental impact assessments, managing industrial sites and monitoring compliance with regulations.

Federal laws, regulations and regulatory bodies

  • Federal laws and regulations.

Canada Oil and Gas Operations Act – governing the exploration, production, processing, and transport of oil and gas in maritime areas controlled by the federal government of Canada; regulations issued under the Act govern drilling and production, geophysical operations, installations, financial requirements, oil and gas operations, and spills and debris liability.

The Canada Petroleum Resources Act – governing the lease of federally owned oil and gas rights on ‘frontier lands’ (North and offshore areas) to oil and gas companies that wish to find and produce oil and gas; regulations issued under the Act govern such issues as petroleum royalties, registration and financing of research.

Canadian Environmental Assessment Act – governing environmental assessments for proposed projects where the federal government is the proponent or where the project involves federal funding, permits, or licensing.

National Energy Board Act – establishing the National Energy Board; the Act governs the activities of the board and the transmission of hydrocarbons, tolls and tariffs, imports and exports.

Oil Tanker Moratorium Act – passed, but not yet in force; it seeks to protect the north coast of British Columbia by prohibiting oil tankers with specified tonnage from stopping, loading and unloading in specific regions.

Federal regulatory bodies.

National Energy Board – oversees international and inter-provincial aspects of the oil, gas and electric utility industries; it regulates the construction and operation of oil and natural gas pipelines crossing provincial or international borders.

Natural Resources Canada – ministry of the federal government responsible for natural resources; it develops policies and programmes that enhance the contribution of the natural resources sector to the economy; its activities are focused on enhancing responsible development and use of Canada’s natural resources and the competitiveness of Canada’s natural resources products.

Canadian Environmental Assessment Agency – delivers environmental assessments under the Canadian Environmental Assessment Act.



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