manual 13

Question 1

Who specifically at the AER manages compliance matters?

eop

A

C and L

I O and I M b = Industry operations and info management branches

Answer 1

multiple departments within AER AER staff as well as those in the

1. Environment and operational performance,
2. Authorizations,
3. closure and Liability,
4. industry operations and Info management branches are responsible.

Question 2

HOW does the AER staff approach or respond to non compliance?

F Crcm of NC and Severity

complince history and how

Answer 2

• consider the factual circumstances of noncompliance the severity of its actual or potential impacts
• What’s your history with them (compliance history) and how it impacts development.

Question 3

What are some key points around INSPECTIONS?

field activities

risk informed basis

regulated sites and f

field Observs and review of data

Answer 3

• field activities carried out by inspection staff to verify compliance with regulatory requirements on a risk informed basis
• mainly done on a risk-informed basis by inspection staff
• inspections are typically conducted at regulated sites and facilities or other associated locations
• they can include field observations and
• review of data or other materials supplied by the regulated party they are both reactive and proactive

Question 4

What is supposed to happen at the end of an inspection?

Answer 4

1. acknowledge where excellent performance was identified written report
2. (deficiencies/non compliance)

Question 5

What is an AUDIT?

Answer 5

1. an activity to verify compliance with AER requirements or
2. identify risks that increase the likelihood of an incident or noncompliance

Question 6

When conducting an audit can the auditor demand information or records?

Answer 6

YES

The auditor has the authority to under legislation to request information and look at records pertaining to the construction, operation, maintenance, or closure of resource projects.

Question 7

IF during an audit, non compliance is detected then what happens?-

A ? is launched

Triage- Body count, media, ? and ?

Answer 7

an investigation is launched

into the issue, collecting information and evidence about the issue.

A triage assessment tool is also used

in the investigation for the purpose of maintaining a consistent approach when dealing with non compliance.

Triage- Body count, media, industry and environment

Question 8

What is VSD

(or a regulated parties way of voluntary disclosure of a non compliance issue.)

Answer 8

Voluntary self-disclosure process,

Question 9

What does the regulator expect the regulated party to do in the VSD process?

The AER wants a regulated party to ?and?the?, and then a report to be sent back to the AER in ?.

The AER wants the party to act as if the regulator found the issue.

Answer 9

correct and address the issue

writing​

Question 10

Will the AER accept a VSD of a non compliant event once the AER has already begun an audit?

Answer 10

No

Question 11

What are the 5 Questions that the AER calls the Noncompliance TRIAGE assessment? (Mason) (really important – hint hint) SUcK WooDD HiK

1. significant impact (ps,e,er)
2. unauthorized activity
3. knowingly, willfully, or with demonstrated disregard
4. history of noncompliance
5. knowingly provided false

Answer 11

1. i) Did the noncompliance cause significant impact to the environment, public safety, or an energy resource?
2. ii) Has the regulated party conducted an unauthorized activity that would not have been approved?
3. iii) Is there evidence that suggests that the noncompliance was done knowingly, willfully, or with demonstrated disregard?
4. iv) Does the regulated party have a history of noncompliance related to the current noncompliance?
5. v) Has the regulated party knowingly provided false or misleading information while addressing a regulatory requirement?

Question 12

What happens when the AER staff identify a noncompliance issue AND 2 of the TRIAGE assessment factors apply?

assessment

refer

Answer 12

1. complete the assessment form and
2. ​refer the noncompliance to the EOP’s investigations team.

Question 13

Say the AER staff do find noncompliance but none of the triage factors apply, then what happens?

Answer 13

Compliance stream A

program staff implement compliance and enforcement tool by following internal business rules

Then they follow compliance stream A, where program staff will follow program-specific reporting requirements to track the noncompliance response of the regulated party. An investigation is not warranted, program staff will issue a notice of noncompliance in accordance with internal business rules.

Question 14

A big reason for Manual 013 is to provide the AER staff with a consistent approach to use when dealing with noncompliance. What are the four KEY STEPS that they should use when determining which compliance stream (the decision tree) they should follow?

Answer 14

1- Noncompliance identified

2- Notice of noncompliance and triage assessment

3- Uncertainty about applicability of triage factors

4- Consultation with compliance assurance team

Question 15

WHO deals with critical and high-priority investigations?

Answer 15

The Investigation Team is a unit of the EOP branch.

Question 16

When looking at the COMPLIANCE STREAMS A, B, C i. Which stream(s) does not involve investigations but will track the noncompliance response of the regulated party? ii. Which stream involves an investigation by the EOP team? iii. Which stream involves an investigation by program staff?

Answer 16

Compliance Stream A

Compliance Stream C

Compliance Stream B

Question 17

What are the categories/priorities for INVESTIGATIONS?

Answer 17

Phase I – Evidence collection

Phase 2 - Analysis

Phase 3 – Enforcement Decision

Phase 4 - Closure of investigation

Significance of adverse effect or public safety Regulatory confidence Expectation for a public report Knowing gain of competitive or financial benefit Behavioural change Other relevant factors

Question 18

What 6 factors help determine those categories or priorities identified in question #17?Angela Significance of adverse effect or public safety

Answer 18

Significance of adverse effect or public safety

Regulatory confidence

Expectation for a public report

Knowing gain of competitive or financial benefit

Behavioural change

Other relevant factors critical, high, medium and low

Question 19

When we looked on the Compliance Dashboard we saw that investigations could be in one of 4 phases. What are those four phases?

Answer 19

Phase I – Evidence collection Phase 2 - Analysis Phase 3 – Enforcement Decision Phase 4 - Closure of investigation

Question 20

How often is the investigation information updated on the AER’s Compliance Dashboard ?

Answer 20

monthly

Question 21

Give a description of the following compliance and Enforcement TOOLS: Notice of Noncompliance

Answer 21

lowest level and normally the first enforcement tool used if no triage factors apply. It is a letter that is sent out to make you aware that you of your noncompliance and a way to remedy it.

Question 22

Warning

Answer 22

It is a warning in writing is basically a second notice of noncompliance. A warning is one of the results of an investigation, whereas a notice of noncompliance is the result of identification of a noncompliance

Question 23

Orders

Answer 23

An Order is a written document for companies that have directly broken the AER mandate and that is basically a company’s last chance to remedy a situation before they face sanctions or fines. Orders have a deadline or else the AER will move on to the next step. There are a variety of orders depending on which resource it is related to and which enactment.

Question 24

Administrative Sanctions

Answer 24

This basically forces a company to fix the situation or they will never get another approval from the AER. An administrative sanction is most appropriate when dealing with noncompliant parties with a poor compliance records. This could be focused on one division of company such as natural gas but not another such as oil.

Question 25

Fees

Answer 25

noncompliances have fees related to them for the extra time and effort that the AER has to put in. they are basically late fees.

Question 26

Administrative Penalties($)

Answer 26

This is basically a fine. This is used when any of the previous enforcement tools would not be a deterrent from companies doing it.

Question 27

Prosecution

Answer 27

This is when the AER take the company to court and charges are laid against the company. this is used as a last resort or if the situation is that serious. Mostly involves cases that humans lives were in danger or if they were negligent to a duty of care to the environment. companies could face serious fines resulting from this or jail time for the head of the company for a penalty .

Question 28

Declaration of a Named Individual Once the declaration has been issued, sanctions may include.

Answer 28

When the leader(s) of a regulated party failed to comply with an order or has an outstanding debt to the AER or the orphan fund debt, the AER may issue a declaration of that individual. the suspension of the operations of the regulated party, the refusal to consider future applications to the AER, a requirement for additional security deposits for abandonment and reclamation costs, and requirement for disclosure of association with other oil and gas operations in Alberta.

Question 29

Can an AER enforcement response be appealed? When? Where?

Answer 29

yes (s.36 REDA) if: The decision was made without a hearing but it would have qualified for a “notice of appeal” had there been a hearing the decision was made by the regulator under the Energy Resource Enactment and there was no hearing, and any other decision or class of decisions described in the regulations. And, a person is eligible for appealif their administrative penalties were for: contravening “a provision of an ALSA regional plan, REDA, or an energy resource enactment that is prescribed in the regulations,” noncompliance “with a term or condition of an approval, order, direction or declaration,”contravenes the Exploration Part under the Mines and Minerals Act, or the regulations, or fails to comply with any condition of an exploration approval.

Question 30

For the process to be FAIR, what must a person or company be provided with when there is a potential impending enforcement decision against them?

Answer 30

Those who are designated to make non-legislative, statutory decisions that affect the rights, privileges, or interests of a person are imposed with a “general duty of procedural fairness.” The accused must be provided with enough information about the allegation or complaint against them so that they can properly prepare a defence, including Reasons for the allegation, accusation, or complaint made against them; the evidence the assertion made against them is based on; notice of impending decision; relevant statutory provisions or authority; and possible consequences or penalties that might be imposed. Any new evidence should be provided as it arises. The accused must be provided with a reasonable opportunity to be heard or respond.