Underground Hydrocarbons Storage Act

Legislation that will streamline the regulatory process for the operation of underground gas storage facilities in the province was introduced in the legislature today.

The Underground Hydrocarbons Storage Act also transfers regulatory responsibility for the construction and operation of these facilities to the Nova Scotia Petroleum Directorate and the Nova Scotia Utility and Review Board from the Department of Natural Resources.

"Interest in natural gas storage is on the rise in our province because these facilities are an integral part of natural gas transmission and distribution," said Gordon Balser, Minister responsible for the Petroleum Directorate. A number of companies have expressed interest in building storage facilities in northern Nova Scotia.

"The significance and timing of this new bill is a reflection of the increased activity level in our offshore," said the minister.

The new act provides for a code of practice that will establish guidelines for operating underground gas storage facilities. It also provides for new regulations to be drafted in consultation with the public and other stakeholders. Once these are in place, the bill could be proclaimed law as early as March 2002.