View PDF file for full text and Organization Structure

Bulletin 2009-22

June 29, 2009

Energy Resources Conservation Board Reorganizes to Meet the Needs of Alberta’s Energy Future

Drawing upon more than seven decades of experience, the Energy Resources Conservation Board (ERCB) has become the world’s foremost regulator of conventional oil and gas development. In addition to maintaining this key focus, the ERCB is reorganizing to support its new Vision: To be the best nonconventional regulator in the world by 2013.

This is a recognition that Alberta’s future resource development will focus on nonconventional resources like in situ bitumen recovery and unconventional gas. It also reflects the nature of innovation needed to regulate these resources.

The ERCB’s new direction focuses on the drivers of change in Alberta’s resource industry, including: the province’s shifting resource base, regulatory reform, and managing legacy assets from maturing oil and gas plays.

The reorganization is under way, with revised branch structures as follows:

• Oil Sands Branch—Executive Manager, Terry Abel
• Applications Branch—Executive Manager, Stephen Smith
• Field Surveillance and Operations Branch—Executive Manager, Dwayne Waisman; Chief Operations Engineer, Doug Boyler
• Geology, Environmental Science, and Economics Branch—Acting Executive Manager, Cal Hill

These Executive Managers will report to the ERCB's Chief Operating Officer, Trevor Dark.

In addition, two positions reporting directly to the Chairman have been established:

• Board Projects—Executive Managers, Earle Shirley and Andy Warren
• Regulatory Development—Executive Manager, Cal Hill

The new executive appointments take effect on June 30, 2009.

Please refer to the attached Backgrounder for more details about the restructuring and to the Organizational Chart to view the ERCB’s new organizational structure.

(original signed by)

Dan McFadyen
Chairman

Attachments

Backgrounder—ERCB Restructuring

The ERCB has clearly defined its Mission and Vision.

Mission
To ensure that the discovery, development, and delivery of Alberta’s energy resources take place in a manner that is fair, responsible, and in the public interest.

Vision
To be the best nonconventional regulator in the world by 2013.

Our Vision refers to the following:

1) Alberta’s changing resource base means that nonconventional resource developments will increasingly become the focus of the province’s energy industry. This will drive the need for regulators to address public impact, environmental, resource conservation, and economic challenges.

• Production from oil sands eclipsed conventional oil in 2001, and continued growth of major mineable and in situ oil sands developments is expected well into the future.
• Alberta has massive potential for nonconventional coalbed methane development and is seeing increased interest in tight gas and shale gas.

2) “Legacy assets” must be understood and managed.

Ongoing production and the opportunity for enhanced recovery of residual conventional oil and gas plays will require that wells, pipelines, and facilities remain in place and, in certain circumstances, be enhanced. At the same time, Alberta’s maturing conventional resource plays without the opportunity for enhanced recovery will result in continuing abandonment and decommissioning of this infrastructure, in addition to reclamation of sites. This means ensuring that issues such as public health, safety, the environment, and economic benefit are appropriately addressed.

3) Regulatory reform and integration are essential to allow the ERCB to make certain that resources are conserved, the environment is protected, and public safety is assured as economic and orderly development continues.

The development of nonconventional resources and the legacy of maturing oil and gas facilities will require innovative approaches to regulation. This innovation can ensure an appropriate level of regulation, provide fairness to affected parties, and be highly effective in achieving public interest outcomes.

Getting There—Our Proposed Approach

Realizing our Vision will require us to position the ERCB for a nonconventional future. We must

1) Focus on priorities

Our priority is new and innovative approaches to reform our regulatory framework for

• nonconventional upstream oil and gas resources,
• enhanced recovery of conventional oil and gas resources, and
• maturing conventional energy resource developments and aging infrastructure.

Reformed energy regulation must be effective in managing risks to the public interest and efficient in imposing appropriate levels of regulation, all the while maintaining fairness for those who may be adversely affected.

2) Build ERCB capacity

One of the ERCB’s primary goals is to lay a foundation that encourages change and enables the ERCB to move forward. That means building the ERCB’s capacity with respect to

• our employees, their knowledge, and their expertise,
• leadership within the organization, and
• effective and timely systems solutions.

3) Enhance relations with stakeholders

While remaining faithful to our mandate, role, and responsibilities, the ERCB will continue to implement innovative strategies to balance the needs and expectations of our stakeholders. The ERCB will continue to provide advice and technical assistance to government and, where appropriate, will assume a leadership role in government-led initiatives. As the ERCB transitions into a nonconventional era, we will establish relationships with new stakeholders and continue to engage traditional stakeholders.

4) Approach the future strategically

Organizational capacity is fundamental to ensure that the ERCB can meet the future challenges of nonconventional resource development. To establish an organizational structure that reflects the ERCB’s future direction, we must attract and retain the best people in a historically competitive job market and ensure the highest standards of technical competency and professionalism. We will initiate a comprehensive review of the organization’s capacity with an emphasis on the leadership qualities needed to meet the challenges and ensure that any changes are made in a clear and reasoned fashion.

Organization Structure (effective June 30, 2009) (PDF file)