Backgrounder
Production Operations Authorization (POA)

In order for any oil and gas related activity to go ahead in the Newfoundland and Labrador offshore area, permission, in the form of authorizations, must be given by the Canada-Newfoundland Offshore Petroleum Board (C-NOPB).

One such authorization is the Production Operations Authorization (the POA) which allows an Operator to conduct production operations in the Newfoundland and Labrador offshore area. The POA is an umbrella-type authorization that indicates regulatory compliance. A POA can be issued when a number of prerequisites are met. Specifically, these prerequisites include verification by C-NOPB staff that all items such as the Operating Licence, Production Licence, Canada-Newfoundland Benefits Plan, Certificate of Fitness, Safety Plan, Environmental Protection Plan, Declaration of Fitness, Financial Responsibility Requirements and Resource Conservation issues have all been satisfactorily addressed.

In addition, a systematic and comprehensive safety assessment of the proposed program is undertaken by C-NOPB staff, as prescribed by the Atlantic Accord legislation, to confirm that the Operator has adequately addressed all identified safety hazards and has in place an adequate safety program to manage all such hazards.

Petro-Canada’s production operations authorization for the Terra Nova field was first issued on July 26, 2001 and expired on August 31, 2004. It was extended for 90 days. It has been extended for a further 60 days, however, production operations cannot resume until the Board is satisfied that outstanding maintenance items surrounding a number of safety systems have been addressed.