The Canada-Quebec Gulf of St. Lawrence Petroleum Resources Accord Implementation Act was introduced by Hon. Greg Rickford, Canada’s minister of natural resources on June 18, Natural Resources Canada said that day.

The government has met its obligation to introduce legislation to implement the accord, which was signed in March 2011, Natural Resources Canada said.

Quebec will become the beneficiary of revenues, including royalties, taxes and fees, derived from development of oil and gas resources in the Gulf of St. Lawrence.

The accord was developed in collaboration with Quebec. It complements mirror provincial legislation introduced by Pierre Arcand, Quebec's minister of energy and natural resources. Arcand is also the minister in charge of Plan Nord. Both pieces of legislation were introduced in the National Assembly last week.

The country is improving its offshore system. The accord will incorporate the safety and environmental protections found in the Energy Safety and Security Act. This act contains the “polluter pays” principle. The liability limit is CA$1 billion.

The Canadian government estimates that the Gulf of St. Lawrence and surrounding areas could hold more than 39Tcf of gas and 1.5Bbbl of oil, based on geological studies.

In the first phase of the accord, the government establishes a joint regulatory function. This phase is covered by the bill. In the second, permanent phase, the creation of a joint independent offshore board would come after a commercial oil or natural gas discovery is made, Natural Resources Canada said.

Offshore