Benefits Plan

Background

In the Canada Oil and Gas Operations Act (COGOA)  , a benefits plan is a statutory requirement. An operator engaged in the exploration and drilling for and the production and transportation of oil and gas in the Northwest Territories, Nunavut and the Arctic offshore areas is required to submit a benefits plan to the Minister of Indian and Northern Affairs Canada for approval.

In section 5.2 of the Act a benefits plan is defined as

a plan for the employment of Canadians and for providing Canadian manufacturers, consultants, contractors and service companies with a full and fair opportunity to participate on a competitive basis in the supply of goods and services used in any proposed work or activity referred to in the benefits plan.

Overview

A benefits plan may vary in comprehensiveness and complexity depending on the scale and scope of the proposed oil or gas works or activities. A benefits plan should include a jargon-free detailed description of the proposed project. It should include the major components, activities and milestones of the project, supplemented by supporting maps, tables and figures, and expected timeframes and finish date.

An operator is encouraged to notify the department early during the development of a benefits plan and to submit a benefits plan to the Minister at least 4 to 8 weeks before a project’s proposed start date.

To assist an operator to develop a benefits plan, the department has established the Northern Benefits Requirements for New Exploration Programs. These requirements outline the department’s expectations of an operator during their development of and reporting on a benefits plan.

Contact

For more information about the requirement for benefits plans or about the Northern Benefits Requirements for New Exploration Programs, please contact us.