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Each Board consists of members appointedby the federal and provincial governments.The Boards’ powers include the ability tomandate environmental assessments forproposed developments, consult withprovincial agencies on environmentalregulation and prohibit or shut downoperations that may present a seriousenvironmental problem.LicensingThe Boards administer a multi-stagelicensing regime which covers every stageof offshore development from exploration tocommercial production. Every licence typeis unique in terms of its rights and duration,so it is essential for operators to be aware ofthe timelines and how to progress from onelicence to the next. There are three types oflicences:An exploration licence is obtainedthrough a bidding process with theBoard on select offshore areas. Itconfers exploration rights for aperiod of nine years; however, thelast three years of this period willonly be activated if certain conditionsare met during the first six years.Exploration licence holders canobtain a significant discovery licenceonce they demonstrate the existenceof hydrocarbons in a geologicalfeature that suggests the potentialfor sustained production. The licenceconfers developmental rights for anunlimited term.Exploration or significant discoverylicence holders can obtain aproduction licence once theydemonstrate the existence ofpetroleum reserves that justify theinvestment of capital and effort tobring the discovery to production.The licence confers commercialrights for a period of 25 years or foras long as commercial productioncontinues.Benefits PlansTo ensure that the people of each provincebenefit from offshore resource development,operators are required to submit a benefitsplan before the Board will approve theproject. Every benefits plan must:LiabilityGive first consideration to provincialresidents for training andemployment;Give first consideration to servicesprovided and goods manufactured inthe province, so long as thoseservices and goods are competitivein terms of fair market price, quality,and delivery; andPromote education and training aswell as research and developmenton petroleum activities in theoffshore area.On January 30, 2014, the federalgovernment introduced Bill C-22, theEnergy Safety and Security Act. This bill willhave an important impact on offshoreresource development in terms of liability.Some key changes to the offshore regimeinclude:Introducing director and officerliability for a corporation’s failure tocomply with an order;Environmental Law 115