1. Offshore Hydrocarbon Development in British Columbia: A Brief History of the Moratoria by Rod Dobell for Maritime Awards Society of Canada Workshop BC Offshore Resources March 19, 2004 Dunsmuir Lodge, Victoria, BC

2. Outline Introduction Introduction Context Context The Moratoria The Moratoria Beyond the Moratoria Beyond the Moratoria Concluding Thoughts on Contending Perspectives Concluding Thoughts on Contending Perspectives

3. Introduction What are the present moratoria and where would we be if they were lifted? What are the present moratoria and where would we be if they were lifted? Requires an understanding of past and present context including: Requires an understanding of past and present context including: Jurisdiction and regulatory regime Jurisdiction and regulatory regime Environmental review processes Environmental review processes Interest groups Interest groups Structures for governance, management and revenue-sharing Structures for governance, management and revenue-sharing

4. Context Constitutional jurisdiction Constitutional jurisdiction BC claims offshore area in 1957 BC claims offshore area in 1957 Supreme Court of Canada decisions: Supreme Court of Canada decisions: 1967 West of VI and Haida Gwaii: federal 1984: Between VI and mainland: provincial Continuing uncertainty regarding jurisdiction over Queen Charlotte Sound and Hecate Strait Continuing uncertainty regarding jurisdiction over Queen Charlotte Sound and Hecate Strait

5. Context Federal & Provincial authority Federal & Provincial authority Federal licensing authority or rights in territorial sea Federal licensing authority or rights in territorial sea Provincial ownership of internal waters Provincial ownership of internal waters Shared regulatory and legislative responsibilities Shared regulatory and legislative responsibilities

6. Context Initial industry activity Initial industry activity Conflicting positions of federal departments regarding permitting Conflicting positions of federal departments regarding permitting Canada & BC—Bilateral Harmonization Agreement on Environmental Assessment Cooperation Canada & BC—Bilateral Harmonization Agreement on Environmental Assessment Cooperation The Oil & Gas Commission The Oil & Gas Commission

7. Context Aboriginal rights Aboriginal rights Governments’ duty to consult Governments’ duty to consult Haida Nation lawsuit claiming title to lands and surrounding waters of the Queen Charlotte Islands (Haida Gwaii) Haida Nation lawsuit claiming title to lands and surrounding waters of the Queen Charlotte Islands (Haida Gwaii) Tsimshian and Haida Nations have both declared moratoria Tsimshian and Haida Nations have both declared moratoria

8. The Moratoria The federal moratorium is a result of government announcements going back to 1970s The federal moratorium is a result of government announcements going back to 1970s Early debate in Hansard, April 20, 1972 Early debate in Hansard, April 20, 1972 Minister of Environment:“…exploration and drilling for oil would be excluded from sensitive offshore zones.” Minister of Environment:“…exploration and drilling for oil would be excluded from sensitive offshore zones.” Provincial moratorium Provincial moratorium 1982 Order in Council (Reg 10/82) 1982 Order in Council (Reg 10/82) 1989—5 year ban after Exxon Valdez spill 1989—5 year ban after Exxon Valdez spill Reserved lands and placed a moratorium on drilling Reserved lands and placed a moratorium on drilling

9. The Moratoria No formal instrument establishing moratorium No formal instrument establishing moratorium No prohibition on drilling No prohibition on drilling But no obligation on license holder to undertake work under the license, and neither government will currently consider applications for work But no obligation on license holder to undertake work under the license, and neither government will currently consider applications for work Moratorium could be lifted by decision or simple announcements by either government Moratorium could be lifted by decision or simple announcements by either government But, for either government this is now a major policy decision needing formal Cabinet scrutiny—and FN moratoria also remain to be addressed in consultation processes But, for either government this is now a major policy decision needing formal Cabinet scrutiny—and FN moratoria also remain to be addressed in consultation processes

10. Beyond the moratoria Environmental assessment processes Environmental assessment processes Bilateral Harmonization Agreement on Environmental Assessment Cooperation: expired April 2002; renewed October 2002 as interim measure; new agreement pending Bilateral Harmonization Agreement on Environmental Assessment Cooperation: expired April 2002; renewed October 2002 as interim measure; new agreement pending Negotiating a “Pacific Accord”? Negotiating a “Pacific Accord”?

11. Beyond the Moratoria Strategic environmental assessment Strategic environmental assessment First Nations interests First Nations interests Allocation of rights; sharing of revenues Allocation of rights; sharing of revenues Fiscal arrangements Fiscal arrangements

12. Concluding Thoughts How to proceed? How to proceed? Reports of recent science panels Reports of recent science panels Many legal issues Many legal issues Many more issues of policy and administration Many more issues of policy and administration Above all, many contending perceptions Above all, many contending perceptions