Canada pipeline regulator planning deep budget cuts

Wed Apr 1, 2015 4:04pm EDT
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By Mike De Souza

OTTAWA (Reuters) - Canada's national pipeline regulator is making plans to cut its annual spending by 24 percent and workforce by 15 percent over the next two years as a pool of temporary funding runs dry, according to a report released this week.

An annual report presented to Parliament said the regulator, the Calgary-based National Energy Board (NEB), would run out of temporary funding to improve safety and security on pipelines in 2017-2018. (

The government announced the temporary safety oversight funding in its 2012 budget, adding up to C$30.3 million ($24.02 million) over five years.

An NEB spokesman said it implemented a temporary staffing strategy for the duration of the funding and would seek an extension if required. Without new funding, its workforce would drop from about 471 to 398 full-time equivalent workers.

The board is an independent body with quasi-judicial powers set up in 1959 to ensure safety, security, environmental protection of Canada's pipeline system.

While the regulator recovers about 90 percent of its costs from the companies it regulates, it needs government approval to increase its budget, which was C$81.7 million in 2013-2014.

The board's chairman, Peter Watson, said in the report that the regulator was facing "resource constraints" due to an increasing number of complex pipeline projects that it has to review with tight 15-month deadlines.

Major projects include TransCanada Corp's Energy East pipeline and Kinder Morgan Inc's Trans Mountain expansion.   Continued...