ARCHIVED - RPP 2007-2008
National Energy Board

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Section III

Supplementary Information

Organizational Information

The Board is structured into five business units, reflecting major areas of responsibility: Applications; Commodities; Operations; Planning, Policy and Coordination; and Integrated Solutions.  In addition, the Executive Office includes the specialized services of Legal Services^[5] and Regulatory Services.  The reporting structure to the Chairman and CEO is as follows:

Figure 8
NEB Organizational Structure

Financial Information

Table 3
Departmental Planned Spending and Full Time Equivalents

(million $)	Forecast Spending 2006-2007	Planned Spending 2007-2008	Planned Spending 2008-2009	Planned Spending 2009-2010
Energy Regulation and Advice	37.9	38.1	38.1	14.6
Budgetary Main Estimates (gross)	37.9	38.1	38.1	36.6
Total Main Estimates	37.9	38.1	38.1	36.6
Adjustments:
Supplementary Estimates:
Operating budget carry forward	0.7
Other:
TB Vote 15
Employee Benefit Plan (EBP)
Total Adjustments	0.7
Total Planned Spending	38.6	38.1	38.1	36.6
Total Planned Spending	38.6	38.1	38.1	36.6
Less: Non-Respendable revenue	40.1	39.6	39.6	38.3
Plus: Cost of services received without charge	6.0	5.9	5.9	5.9
Net cost of Program	4.5	4.4	4.4	4.4

 

Full Time Equivalents

305.1

307.6

307.6

296.6

Government of Canada Outcomes

The NEB's Program Activity: Energy Regulation and Advice, contributes to the achievement of the following Government of Canada's Outcome areas: strong economic growth, a clean and healthy environment and a fair and secure market place.

Annual Spending Levels

This table shows a reduction in annual spending levels in 2009 – 2010.  However, since these funding levels were set, the level of industry activity has increased rapidly and is expected to stay high.  To respond to the substantial increase in the NEB's workload over the planning horizon, the NEB will be preparing a detailed submission to Treasury Board outlining its resource requirements.  Based on workload projections, it is anticipated that the Board will require an increase of up to 20 percent in its funding over the planning period and through projections into the further future.  The Board will also be preparing a submission to Treasury Board for resources to cover the cost of conversion of data to from microfiche to a web-based digital format to make it accessible to industry.  The NEB is a cost recovery organization.

Table 4
Program by Activity

2007-2008
	Budgetary
Program Activity	Program	Gross	Total Main Estimates	Total Planned Spending
Energy Regulation and advice	38.1	38.1	38.1	38.1
Total	38.1	38.1	38.1	38.1

Table 5
Voted and Statutory Items Listed in Main Estimates

2007-2008
Vote or Statutory Item		Current Main Estimates	Previous Main Estimates
30	Program expenditures	33.3	33.3
(S)	Contributions to employee benefit plans	4.8	4.9
	Total Department or Agency	38.1	38.2

Table 6
Voted and Statutory Items Listed in Main Estimates

2007-2008
(million $)	Energy Regulation and Advice	Total
Total Planned Spending	38.1	38.1
Plus: Services Received without Charge
Accommodation provided by Public Works and Government Services Canada	3.7	3.7
Contributions covering employers' share of employees' insurance premiums and expenditures paid by Treasury Board (excluding revolving funds)	2.1	2.1
Worker's compensation, cost recovery audit costs and miscellaneous costs provided by other departments	0.1	0.1
	5.9	5.9
Less: Non-respendable Revenue	39.6	39.6
2007-2008 Net cost of Department	4.4	4.4

Table 7
Sources of Respendable and Non-Respendable Revenue

(million $)	Forecast Revenue 2006-2007	Planned Revenue 2007-2008	Planned Revenue 2008-2009	Planned Revenue 2009-2010
Energy Regulation and Advice	40.1	39.6	39.6	38.3
Total Non-Respendable Revenue	40.1	39.6	39.6	38.3

Table 8
NEB Program Activity Architecture

Department	National Energy Board
Strategic Outcome	Safety, security, environmental protection and economic benefits through regulation of pipelines, power lines, trade and energy development within NEB jurisdiction.
Program Activity	1.0 Energy Regulation and Advice			2.0 Support Governance
Description	The companies that are regulated by the Board create wealth for Canadians through the transport of oil, natural gas and natural gas liquids, and through the export of hydrocarbons and electricity.  As a regulatory agency, the Board's role is to help create a framework which allows these economic activities to occur when they are in the public interest.			The Support Governance activity enables the NEB's regulation and advice mandate by providing, managing and maintaining necessary support services. These include infrastructure and facility management, financial and human resource services and, information systems and management services. In addition, the activity includes overseeing and administering the application of legislation and regulations associated with the provision of these supporting services.
Program Sub-Activities	1.a) Decide in the Public Interest	1.b) Assure Compliance	1.c) Provide Energy Advice
	Assess and process regulatory applications submitted under the Acts administered by the National Energy Board; engage and liaise with stakeholders; address landowner complaints, and provide appropriate dispute resolution services.	Conduct safety, security and environmental inspections and audits, incident investigation, monitoring of emergency response procedures; regulate exploration and development of hydrocarbon resources in non-accord frontier lands; develop regulations and guidelines with respect to the above and conducts financial surveillance and financial audit of companies under the NEB's jurisdiction. Responsibilities are pursuant to the NEB Act, COGO Act, CPR Act and Canada Labour Code.	Conduct energy industry and market surveillance, including the outlook for the supply and demand of energy commodities in Canada; and provide energy advice to the Minister.

Department's Regulatory Plan

The NEB plans to address the following regulatory changes and updates in the 2007 – 2008 planning period.

Regulations	Expected Results
Canada Oil and Gas Diving Regulations; Newfoundland Offshore Area Petroleum Diving Regulations; and Nova Scotia Offshore Area Petroleum Diving Regulations	Less prescriptive, more goal-oriented regulations for activities in support of oil and gas programs in frontier lands.
Canada Oil and Gas Drilling and Production Regulations; Newfoundland Offshore Area Oil and Gas Drilling and Production Regulations; and Nova Scotia Offshore Area Oil and Gas Drilling and Production Regulations	Amalgamation of Canada Oil and Gas Production and Conservation Regulations and Canada Oil and Gas Drilling Regulations. Rewrite to a goal-oriented style. Updated and streamlined administration.
National Energy Board Cost Recovery Regulations	Modifications to the existing regulations arising from a request from the electricity industry.
National Energy Board Damage Prevention Regulations	Less prescriptive, more goal-oriented regulations for NEB-regulated facilities, to more effectively address safety in the proximity of pipelines. Will replace the National Energy Board Pipeline Crossings Regulations, Parts I and II.
National Energy Board Onshore Pipeline Regulations, 1999	Consider reviewing and modifying the existing regulations and guidance notes based on experience gained regarding the effectiveness of the NEB's move towards goal based regulation. Incorporate new provisions pertaining to security, decommissioning, incident reporting and operations and maintenance.

 

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[1] The public interest is inclusive of all Canadians and refers to a balance of economic, environmental, and social interests that changes as society's values and preferences evolve over time. As a regulator, the Board must estimate the overall public good a project may create and its potential negative aspects, weigh its various impacts, and make a decision.

[2] This table shows a reduction in annual spending levels in 2009-2010.  However, since these funding levels were set, the level of industry activity has increased rapidly and is expected to stay high.  To respond to the substantial increase in the NEB's workload over the planning horizon, the NEB will be preparing a detailed submission to Treasury Board outlining its resource requirements.

[3] The Importance of Timely Construction of New Pipeline Infrastructure to Canada and Canadians, CEPA, October 2005

[4] Major releases are defined as >100 m3 of liquid hydrocarbon.

[5] Legal Services is accountable to the Chairman and Board Members for the provision of legal advice.  It is accountable to the Chief Operating Officer for its operations and administrative matters.

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