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Section III Supplementary Information

Financial Information

Table 1
Departmental Planned Spending and Full Time Equivalents

(million $)	Forecast Spending 2007-2008	Planned Spending 2009-2009	Planned Spending 2009-2010	Planned Spending 2010-2011
Energy Regulation and Advice	38.1	46.2	44.3	36.6
Budgetary Main Estimates (gross)	38.1	46.2	44.3	36.6
Total Main Estimates	38.1	46.2	44.3	36.6
Adjustments:
Supplementary Estimates1:	8.4
Transfer to Natural Resources2:	-1.5
Operating budget carry forward
Other:
Mackenzie Gas Project	-1.1	1.1
TB Vote 15
Employee Benefit Plan (EBP)
Total Adjustments	5.8	1.1
Total Planned Spending	43.9	47.3	44.3	36.6
Total Planned Spending	43.9	47.3	44.3	36.6
Less: Non-Respendable revenue	45.4	48.4	45.7	38.3
Plus: Cost of services received without charge	6.5	6.5	6.5	5.9
Net cost of Program	5.0	5.4	5.1	4.2
Full Time Equivalents	307.6	354.6	336.6	296.6
1 Supplementary Estimates: Funding to meet existing demands and forecasted increases in regulatory workload associated with industry growth. 2 Transfer to Natural Resources: Insupport of costs related to public consultations for energy projects.

In 2007, the NEB submitted a request to Treasury Board for funding to address increased industry activity over the period 2007 – 2010, and this request was fully funded. Due to a sustained and continued increase in resource requirements to meet workload demand linked to industry activity, it is possible that the NEB will require some of this level of funding to be maintained after 2010, and will be presenting a business case to Treasury Board to this effect in 2008.

Table 2
Program by Activity

2008-2009
	Budgetary
Program Activity	Program	Gross	Total Main Estimates	Total Planned Spending
Energy Regulation and advice	46.2	46.2	46.2	47.3
Total	46.2	46.2	46.2	47.3

Table 3
Voted and Statutory Items Listed in Main Estimates

2008-2009
Vote or Statutory Item		Current Main Estimates	Previous Main Estimates
25	Program expenditures	41.0	33.3
(S)	Contributions to employee benefit plans	5.2	4.8
	Total Department or Agency	46.2	38.1

Table 4
Net Cost of Department for the Estimates Year

2008-2009
(million $)	Energy Regulation and Advice	Total
Total Planned Spending	47.3	47.3
Plus: Services Received without Charge
Accommodation provided by Public Works and Government Services Canada	4.1	4.1
Contributions covering employers' share of employees’ insurance premiums and expenditures paid by Treasury Board (excluding revolving funds)	2.3	2.3
Worker’s compensation, cost recovery audit costs and miscellaneous costs provided by other departments	0.1	0.1
Less: Non-respendable Revenue	48.4	48.4
2008-2009 Net cost of Department	5.4	5.4

Table 5
Sources of Respendable and Non-Respendable Revenue

(million $)	Forecast Revenue 2007-2008	Planned Revenue 2008-2009	Planned Revenue 2009-2010	Planned Revenue 2010-2011
Energy Regulation and Advice	45.4	48.4	45.7	38.3
Total Non-Respendable Revenue	45.4	48.4	45.7	38.3

Department’s Regulatory Plan

The NEB plans to address the following regulatory changes and updates in the 2008 – 2009 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 Processing Plant Regulations.	Amendments to address concerns raised by the Standing Joint Committee on the Scrutiny of Regulations regarding technical drafting issues and the parity of both language versions of the regulations
Onshore Pipeline Regulations, 1999 and National Energy Board Processing Plant Regulations.	Amendments to fill a regulatory gap for decommissioning of facilities

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.

NEB Service Standards

NEB Service Standards identify targets for key aspects of service delivery. The NEB Service Standards and annual reports on results can be found at www.neb-one.gc.ca under “Who we are and our governance”.

Reasons for Decision

80% of Reasons for Decision completed within 12 weeks following a public hearing

Export/import authorizations

Short term export orders for oil, gas and natural gas liquids: 2 working days Natural gas import and export orders 2 working days

Electricity export permits

Category A (complexity – minor) Decision Release: 80% within 40 calendar days Category B (complexity – moderate) Decision Release: 80% within 90 calendar days Category C (complexity – major) Decision Release: No service standard

Landowner Complaints

Respond with initial course of action: 100% within 10 calendar days Resolve the complaint: 80% within 60 calendar days

Onshore pipeline regulation (OPR) audits

80% of draft OPR reports sent to the audited company within 8 weeks of completing field work

Financial audits

80% of draft financial reports sent to the audited company within 8 weeks of completing field work 80% of final financial audit reports sent to company within 3 weeks of receiving the audited company’s comments on draft financial report

Non–hearing Section 58 application cycle times

Category A (complexity of issues considered minor): 80% of decisions released in 40 calendar days Category B (complexity of issues considered moderate): 80% of decisions released in 90 calendar days Category C (complexity of issues considered major): 80% of decisions released in 120 calendar days

COGOA applications

Well drilling applications 80% of decisions rendered within 21 calendar days of receiving a complete application Geological and geophysical applications 80% of decisions rendered within 30 calendar days of receiving a complete application

CPRA applications

80% of decisions for Significant Discovery and Commercial Discovery Applications on Frontier lands rendered within 90 calendar days from the day that all information is available to begin the evaluation process

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 In 2007, the NEB submitted a request to Treasury Board for funding to address increased industry activity over the period 2007 – 2010, and this request was fully funded. Due to a sustained and continued increase in resource requirements to meet workload demand linked to industry activity, it is possible that the NEB will require some of this level of funding to be maintained after 2010, and will be presenting a business case to Treasury Board to this effect in 2008.

3 Legal Services is accountable to the Chair and Board Members for the provision of legal advice. It is accountable to the Chief Operating Officer for its operations and administrative matters.

4 This measure will also inform the assessment of performance under Goal 2.

5 Major releases are defined as >100 m3 of liquid hydrocarbon.

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