ARCHIVED – National Energy Board – 2014-15 Departmental Performance Report – Section I: Organizational Expenditure Overview

Safety and environmental protection are of paramount importance to the Board. As an independent federal regulator, the Board regulates safety and security, environmental protection and economic efficiency in the Canadian public interest^{Footnote 4} within the mandate set by Parliament. The Board is committed to strengthen and improve industry-wide performance and awareness of the role that safety culture plays in contributing to or building defences against incidents.

Progress for this organizational priority is linked to the Energy Regulation program, and Energy Regulation Implementation, Compliance Monitoring and Enforcement sub-program. Detailed performance analysis is included in Section II of this report.

• Together with the Canada-Nova Scotia Offshore Petroleum Board and the Canada-Newfoundland and Labrador Offshore Petroleum Board, the NEB released a joint statement and framework on safety culture in June 2014. Advancing Safety in the Oil and Gas Industry – Statement on Safety Culture incorporates a definition, characteristics, and attributes of safety culture. During the year, the NEB engaged stakeholders to promote awareness of the NEB’s safety culture expectations.
• Early work on safety culture indicators development began. These indicators will be evaluated to determine how to best integrate a select number of them into NEB compliance verification activities, with the ultimate goal of reducing incidents.
• The NEB continued to improve internal systems and processes to collect, analyze and improve the use of regulatory data. This has helped the NEB to identify industry trends, determine how companies are performing towards safety and environmental performance targets and better inform NEB decisions and communications.
• The NEB developed its regulatory information and analysis function, and enhanced its ability to provide high quality, evidence-based information for use in compliance verification and other regulatory processes.
• In 2014-15, the NEB publicly reported on Administrative Monetary Penalties (AMPs). In the interest of greater public transparency around the issuance of AMPs, the NEB also began posting information related to Notices of Violation. This information includes the name of the company or individual believed to have committed a violation, the issue date, the region and facility, the nature of the violation, and the amount of the penalty.
• The NEB streamlined the process of reporting by regulated companies of incidents and unauthorized activities. This year the NEB introduced the Online Event Reporting System (OERS) and provided additional guidance to companies regarding incident reporting (NEB Event Reporting Guidelines). The Transportation Safety Board of Canada also directed regulated pipeline companies to report events using this system. OERS ensures that both entities are able to access information for all reported events and significantly reduce the regulatory reporting burden on companies.
• Throughout the year, the NEB produced easily accessible regulatory information on safety, environmental protection and energy markets. This information was proactively offered on the NEB website.

The NEB previously committed to reviewing and strengthening its regulatory framework for the North, to ensure that future decisions on applications are made in a manner that enhances the safety of workers and the public and the protection of the environment. Progress for this organizational priority is linked to the Energy Regulation Development sub-program. Detailed performance analysis is included in Section II of this report.

• On 1 April 2014, the Government of the Northwest Territories (GNWT) assumed responsibility for onshore oil and gas activities in the Northwest Territories outside the Norman Wells Proven Area, and other miscellaneous lands. The NEB and GNWT signed a Service Agreement to allow the NEB to provide technical services and advice to support the GNWT’s regulatory functions for oil and gas projects, and transfer records post-devolution^{Footnote 5}.
• The NEB updated filing requirements and guidance to clarify the NEB’s expectations of companies and how the public can get involved in NEB processes in the North.
• The NEB engaged Northerners and Northern institutions that may be affected by potential activities regulated by the NEB, in support of meaningful and coordinated regulatory processes.
• Staff continued to work with key players to improve preparedness in the event of an emergency incident in the North. This included collaboration with the Environmental Impact Review Board and offshore Boards, and regional, national and international spill response agencies.

Increased industry activity continued to result in high demand for NEB services this year. A nimble organization is required for the NEB to achieve its strategic outcome and priorities in an effective and efficient manner. Progress for this organizational priority is linked to the Energy Regulation Development and Energy Regulation Implementation, Compliance Monitoring and Enforcement sub-programs. Internal Services activities are also linked to this priority. Detailed performance analysis is included in Section II of this report.

• The NEB continued to implement consequential legislative and regulatory changes.
• The NEB reviewed and updated hearing and non-hearing application processes, including systems used to support the application processes, so that they are in place for staff to conduct a thorough and efficient review of upcoming major applications.
• The NEB strategically enhanced communication with Canadians throughout the year, including through proactive information sharing and web presence.
• Information management and information technology strategies were implemented to support regulatory and business processes. The NEB’s approach to data capture, storage, analysis and dissemination continued to evolve this year.
• In June 2014, the NEB seamlessly relocated its head office to a new building, and transitioned to an open and modern workspace, consistent with Workplace 2.0 standards.
• The NEB established service standards and performance measures for key internal services. The NEB measured client satisfaction in the areas of time to staff, time to contract, email system availability, service desk response times, media response times, and video conferencing user satisfaction. Cumulative performance targets were met and targets have been raised for 2015-16.

Due to several drivers such as an increase in the transportation of oil and gas products, there is a risk that an incident at a regulated company results in a fatality(ies) and/or significant environmental damage.

• Monitored compliance through an increased number of risk-informed verification activities (335 in 2014-15, an increase from 282 in 2014-15).
• Investigated and analyzed incidents, risks and trends within regulated companies' operating environments. Analysis informed risk-based compliance verification planning.
• Inspection Officers applied enforcement tools for all issues of non-compliance.
• Compliance staff competence maintained through required training and designations.
• Development of the regulatory information and analysis function fed high quality information into the risk-based compliance verification planning process.
• Communicated safety culture expectations to regulated companies.
  • Risk identified in the 2014-15 RPP
  • Strategies reduced risk exposure

Due to limited use of data standards combined with aging information systems, there is a risk that inaccurate, incomplete or inadequate information about NEB-regulated facilities or NEB operations is communicated to Canadians.

• Carried out proactive and strategic outreach activities with stakeholders and media in Canadian communities interested in or affected by NEB activities.
• Improved web-based information tools.
• Produced accurate, reliable energy information products and made them available to external stakeholders and the public.
• Implemented NEB Communication Strategy.
• Applied a portfolio management approach to software deployment.
  • Risk identified in the 2014-15 RPP
  • Strategies reduced risk exposure

Due to an increase in resource demands driven by the number and scope of applications and hearings, there is a risk that they are not dealt with in a timely and expeditious manner and/or legislated time limits are not met resulting in a compromised predictability of the NEB’s regulatory processes.

• Process in place outlining specific criteria defining potential hearing participants, which provides clarity on public participation at hearings to ensure efficiency.
• Multi-business unit staffing plan ensured adequate staff for upcoming hearings using data from previous hearings. Hearings resourced on a monthly basis using multi-business unit input.
• Constantly monitored applications to ensure compliance with expeditious handling legislation.
  • Risk identified in the 2014-15 RPP
  • Strategies reduced risk exposure

Due to a highly competitive labour market, there is a risk that key positions within the organization are vacant resulting in a loss of corporate knowledge and delays in regulatory processes.

• Maintained status as a “Top 100” employer.
• Measured employee work-life balance and management communication satisfaction, on a quarterly basis.
• Conducted market surveys, as required, for employee pay, benefits, and attrition rates and compared with the NEB's rates.
• Developed and actioned the NEB People Strategy, which is the NEB’s human resources plan. Plan focused on the attraction and retention needs of the organization.
  • Risk identified in the 2014-15 RPP
  • Strategies reduced risk exposure

Internal Services