Industrial Benefits

The Accord Acts legislation includes provisions to ensure that Nova Scotians and other Canadians are provided opportunities to benefit from petroleum-related activity that takes place in the Canada-Nova Scotia offshore area.

For offshore renewable energy, there are principles listed in the Accord Acts. Once more industrial benefits information is known, this section will be updated.

Industrial Benefits – Petroleum-related Activities

The information found on this page relates to petroleum-related activities in the Canada-Nova Scotia offshore area. Learn more about Canada-Nova Scotia Benefits Plans for petroleum-related activities in section 45 of the Accord Acts.

Industrial benefits are the economic opportunities and benefits that arise from oil and gas activities in the Canada-Nova Scotia offshore area. We carefully review plans and monitor activities to confirm operators are complying with the requirements set out in the legislation and with the commitments that they have made in their Canada-Nova Scotia Benefits Plan.

We do not have the authority to set guarantees or targets for an operator to meet with respect to the participation of Nova Scotians and other Canadians in offshore petroleum-related activities. We are responsible for monitoring procurement and employment activities on an ongoing basis to ensure compliance with the legislation.

Learn more about the various regulatory requirements related to Industrial Benefits below.

Canada-Nova Scotia Benefits Plan

Operators submit a Canada-Nova Scotia Benefits Plan for review and approval prior to conducting petroleum-related activity in the Canada-Nova Scotia offshore area. The benefits plan must demonstrate to us how:

Nova Scotian and other Canadian companies will be provided full and fair opportunity to compete to provide goods and services on a competitive basis.
Nova Scotia companies will be given first consideration for the supply of such goods and services (when they are competitive).
Nova Scotians will be given first consideration for training and employment

Other items that must be addressed in a benefits plan include the development and implementation of an education, training and research program in the province related to petroleum-related activity in the offshore area, as well as the establishment of a local office where appropriate levels of decision-making will take place.

We carefully review the benefits plan before an Activity Authorization is granted to confirm that the requirements as set out above are properly addressed.

Once a petroleum-related activity authorization is granted, we continue to monitor operators to confirm that the industrial benefits commitments they made in their benefits plan are being fulfilled. This includes contractors and subcontractors hired by an operator. We do this through audits of an operator’s processes, procurement and employment submissions, and reporting requirements.

Requirements

Operators must commit to specific requirements laid out in the Accord Acts. Learn more about these requirements below. More information on our requirements is available in our guidance document Canada-Nova Scotia Benefits Plan Guidelines.

Full and fair opportunity must be provided to manufacturers, consultants, contractors, and service companies in Nova Scotia, and other parts of Canada, to participate on a competitive basis in the supply of goods and services used in any proposed petroleum-related activity.

For offshore renewable energy, the federal and provincial governments are developing the industrial benefits policies. Once more information is known, this section will be updated. The information found on this page relates to petroleum-related activities in the Canada-Nova Scotia offshore area.

Full opportunity refers to the amount of access given to Nova Scotians and other Canadians to participate in opportunities that result from any proposed offshore oil and gas work or activity. Full opportunity means local and other Canadian suppliers receive sufficient information and time to assess the opportunity and prepare a response to an expression of interest or bid request.

Fair opportunity refers to the fair treatment of Nova Scotians and other Canadians in participating in opportunities that result from any proposed offshore oil and gas activity. Operators, their contractors and subcontractors should use their best efforts, where possible, to minimize factors that may limit Nova Scotian and other Canadian suppliers from competing in the procurement process for goods and services.

An operator planning to conduct petroleum-related activities in the Canada-Nova Scotia offshore is required to have a local office in Nova Scotia to enable proper oversight and decision making throughout the lifecycle of a project.

Operators are required to establish and maintain an office in Nova Scotia for the duration of an offshore oil and gas project. Although the size and scope of the office may vary depending on the scale of the project, operators must ensure that the office is staffed with an appropriate amount of decision-making authority related to the project. The local office must be set up before an operator can receive authorization to carry out any petroleum-related activity in the Canada-Nova Scotia offshore area.

In some cases, if an operator has delegated a substantial portion of the work to a contractor, the contractor may also be required to establish and maintain an office in Nova Scotia with an appropriate amount of decision-making authority.

Nova Scotians must be given first consideration for training and employment opportunities related to an offshore petroleum-related project.

Operators, including their contractors and subcontractors, are required to look at the Nova Scotia labour market first to meet their human resources requirements. This means that once minimum qualifications and requirements have been established, any resident of Nova Scotia who meets the qualifications and requirements, and successfully completes the interview process, is to be given employment preference over non-residents. If Nova Scotian applicants do not meet the qualifications and requirements, operators would then look at other residents of Canada.

We do not have the authority to dictate position qualifications or requirements beyond the minimum requirements that can be found in the Atlantic Canada Offshore Petroleum Standard Practice for the Training and Qualifications of Offshore Personnel. Successful candidates must meet requirements set out by the operator, which may include factors such as education/training, experience, certifications, prior service record/performance, drug and alcohol screenings, and criminal record checks.

When we monitor for compliance to confirm that an operator is meeting the requirement for first consideration with respect to employment, we look at the following criteria to ensure that safety of workers and environmental protection are not compromised:

The nature and timeframe of the work or activity
The degree of specialized knowledge and/or expertise
Education and training
Certifications

Sometimes specialized knowledge and/or expertise that is not readily available from within the Nova Scotian or Canadian labour market is required. In that case, operators may seek to use foreign workers to meet the specialized need. We expect that the use of foreign workers will be limited and shorter-term in duration. For ongoing petroleum-related development/production projects and long-term exploration programs, we require operators to develop succession plans to promote job progression for Nova Scotians and other Canadians into these positions over time.

First consideration is given to services provided from within Nova Scotia, and to goods manufactured in Nova Scotia.

Operators, including their contractors and subcontractors, are required to provide first consideration to services provided by Nova Scotian companies, and to goods manufactured in Nova Scotia, when they are considered to be competitive. The competitiveness of goods and services is based on fair market price, quality and delivery.

A funding program in the province aimed at promoting education and training, and research and development related to petroleum-related activities in the Canada-Nova Scotia offshore area must be addressed in a benefits plan.

Education and Training

The goal of education and training is to build knowledge and human resources capabilities in Nova Scotia. Examples of how operators can achieve this goal include:

Support the establishment and/or maintenance of education and training infrastructure
Support chairs and fellowships
Support technology transfer, or including the advancement of trades training
Scholarships and work-terms for Nova Scotian students, interns and/or cadets who are studying and/or working within the province
Vocational and post-secondary education programs directly or indirectly related to offshore oil and gas activities
Development of institutional or training programs
Transfer of technology/skill from the operator to Nova Scotian students
Other actions that can be linked to offshore oil and gas activities

Research and Development

Operators are encouraged to undertake collaborative research and development initiatives that will engage academia and the local supply community to contribute to the growth of relevant, local, and innovative research. This results in the development and creation of new technologies and capabilities related to offshore oil and gas activities.

Examples of how operators can achieve this goal include work related to engineering, design, operations research, mathematical analysis, computer programming, data collection, testing, or psychological research. In some cases, research and development initiatives may extend beyond science and technology to include research in such areas as business/commercial development, socio-economic and environmental matters.

The work is expected to meet the needs and support requirements of oil and gas activities in the Canada-Nova Scotia offshore area.

Access to training, employment and supply opportunities for disadvantaged individuals or groups may be required of an operator.

Operators working in the Canada-Nova Scotia offshore area may be required to include plans to ensure that disadvantaged individuals or groups (Indigenous groups, women, visible minorities, and persons with disabilities) have access to training and employment opportunities, and to enable their participation in the supply of goods and services for a proposed offshore oil and gas project.

An operator, in their benefits plan, should clearly define how they intend to ensure opportunities are made available and communicated to disadvantaged individuals or groups. The operator should also provide details to confirm that this requirement applies to its contractors and subcontractors.

Benefits Review Committee

As part of our efforts to hold operators accountable, we chair a Benefits Review Committee made up of representatives from Natural Resources Canada and the Nova Scotia Department of Energy. Together, we discuss petroleum-related project-specific benefits plans and procurement activities to confirm the plans meet the legislative requirements set out in the Accord Acts.

Depending on the proposed benefits plans, other government departments or agencies, such as the Atlantic Canada Opportunities Agency, may also participate in the Benefit Review Committee discussions.

Procurement and Employment Complaints

For petroleum-related activities, should an individual feel they were denied an opportunity for employment, or a company feel that they were denied full and fair opportunity to compete for a procurement opportunity, they should first speak with the operator, relevant contractor or subcontractor. If they are not satisfied with the response, they are encouraged to bring their concerns to our attention. We would then determine if a further assessment of legislative compliance is warranted through conversations with the complainant and a review of the processes involved. Should we determine that further assessment is required, it may be necessary to identify the complainant, with their permission, to continue our review. This would allow us to ask more specific questions regarding the situation.

Any review(s) undertaken by our staff would seek to ensure that the principles of the Accord Acts were upheld.

Learn more about our role in reviewing complaints for procurement and employment practices below.

If you have a complaint, please contact info@cnsoer.ca

Companies that were unsuccessful in the tender process should first request a debriefing from the buying company. It is our expectation that a debrief should clearly discuss where the company’s bid was deficient in order to help the company bid more competitively in the future. Debriefing requirements are described in the Canadian Association of Petroleum Producers publication Atlantic Canada Offshore Petroleum Industry - Supply Chain Management. If a company is not satisfied with the response received, they may contact us at info@cnsoer.ca.

Bidding companies should not expect the buyer, or the Canada-Nova Scotia Offshore Energy Regulator, to divulge any confidential and/or commercial information related to other bidders during the debrief or review.