Cryptocurrency Mining: The Legal Issues
Blockchain technology and its application to cryptocurrencies are becoming increasingly prominent in Quebec. While the technology has been in existence for some 10 years, the development of large-scale real estate projects dedicated to cryptocurrency mining is currently in full swing. The availability of large tracts of land, the relatively cold climate and the low cost of electricity combine to make Quebec a favourable environment for the development and growth of this industry. It is against this backdrop that Hydro-Québec recently asked Quebec's energy regulator, the Régie de l'énergie (the "Board") to intervene pursuant to ministerial order no. 2018-004 of the Ministry of Energy and Natural Resources ("Order 2018-004"). The subsequent decisions of the Board will impact the majority of entrepreneurs engaged in cryptocurrency mining using Blockchain technology in Quebec. In this regard we are publishing a series of bulletins on the legal issues specific to cryptocurrency mining, of which this first is a summary of the four major impacts of Order 2018-004 and the Board's subsequent decisions.

1. Suspension of requests for electricity by the Ministry of Energy and Natural Resources
On May 31, 2018, the Ministry of Energy and Natural Resources issued Order 2018-004, suspending the processing of new requests for electricity for cryptographic processes involving blockchains. As the potential energy demands of these data-mining projects are considerably greater than Hydro-Québec's current power-generation capacity, this measure was intended to ensure adequate distribution of electricity throughout Quebec. The suspension was to remain in effect until September 15, 2018 or until such time as the Board sets the rate applicable to such requests.

Update Regarding Changes to Provincial
Spill Reporting Requirements
[On October 30th], the requirement to submit the Update to Minister Report and End-of-Spill Report came into effect under the Spill Reporting Regulation. In order to support the new spill reporting requirements, the Environmental Emergency Program of the British Columbia Ministry of Environment and Climate Change Strategy has updated their Report a Spill webpage. This webpage is now live and a short URL has been created for ease of access: www.gov.bc.ca/ReportASpill. This webpage contains information on each spill report and when they are required. There are links to the updated Spill Reporting fact sheet, the Spill Reporting Regulation, and the Environmental Management Act.  Additionally, the new SpillReports@gov.bc.ca contact email is provided to which responsible persons (spillers) will submit their reports (other than the Initial Report) and can contact for information on spill reporting. NOTE: the Initial Report/DGIR must continue to be reported by calling the spill reporting line at 1-800-663-3456.In the 'Templates' box on the right side of the webpage, the Update to Minister/End-of-Spill Report template is provided; this template will serve as both the Update to Minister Report and the End-of-Spill Report as the Spill Reporting Regulation outlines that the same content be provided in both reports. Responsible persons will check the appropriate box in section I of the template to indicate which report they are submitting. For more information, or to view the full article, visit the Ministry website. 

Judicial Deference to Regulators and the
Workers Compensation Act
A decision of the Supreme Court of Canada (SCC) last spring may have blurred the lines between "employers" and "owners" in the BC forestry sector for purposes of workplace safety under Part 3 of the Workers Compensation Act (Act). More generally, it may also erode faith in the rule of law. At issue in West Fraser Mills Ltd. v. British Columbia (Workers' Compensation Appeal Tribunal) was Section 26.2 of the Occupational Health and Safety Regulation (Section 26.2) prescribed under the Act. Section 26.2 imposes a duty upon any "owner" of a forestry operation in relation to the planning and conduct of activities at the forestry operation. Following the death of a faller at one of its operations, West Fraser Mills Ltd. (WF) was found in contravention of Section 26.2. The faller was not an employee of WF. An administrative penalty was imposed against WF under Section 196(1) of the Act (Section 196) on account of this finding of contravention, even though Section 196 only authorized administrative penalties against "employers" and not "owners". The Workers' Compensation Appeal Tribunal (Tribunal) upheld the penalty on the basis that WF was also an "employer" since it used employees to perform its duties as an "owner." The Act defines "owner" and "employer" as distinct terms, and WF did not contravene any of its duties as an employer. Read the full article by Jeff Waatainen of DLA Piper LLP and published in the November/December edition of the BC Forest Professional Magazine.

BC Government Review of Professional Reliance
Current Status – from ABCFP
The BC government is seeking public feedback on a Regulations Intentions Paper related to Bill 49, the proposed Professional Governance Act, tabled in the legislature on October 22 and which passed second reading October 30 by a 43 to 38 vote. The intentions paper is divided into two parts. Part One describes the recently introduced Bill 49, the Professional Governance Act, with the main purpose being to explain how the governance of registered professionals that operate in the natural resource sector will change with the passing of the Act. Part Two describes topics that government is seeking feedback on to help inform the development of future policy and regulations. According to the paper, the government is seeking feedback on three key policy areas for which it is developing regulations. Read the full article and the latest news the from ABCFP website. 

New Rules for Major Resource Projects in
BC Call for Indigenous Consent
British Columbia is rewriting its environmental assessment act to require a commitment to seek free, prior and informed consent from Indigenous communities for major resource projects, but the new law stops short of allowing them a veto if consent cannot be reached.

The change is based on the UN Declaration on the Rights of Indigenous Peoples (UNDRIP). Environment Minister George Heyman said the new law reflects the reality that the success of any major industrial project in B.C. rests on meaningful partnerships with Indigenous communities.

"What people need to understand about this process is, it is consent-based," Mr. Heyman told reporters.

The legislation also requires, for the first time, that greenhouse gas emissions be considered in the assessment process, and paves the way for the cumulative impact of industrial development in a region to be factored into decisions about individual projects.

The legislation says achieving consent is the objective, however, it is strictly needed in only very limited circumstances: when a nation has a treaty or final agreement on a treaty that spells out consent as a requirement. Only a few Indigenous communities in British Columbia have settled treaties.

"In all other cases, we are focused on getting consent," Mr. Heyman said, "but the final decision does rest with the minister." Read the full article by Justine Hunter of The Globe and Mail.

• Revised guidelines for environmental tobacco smoke and e-cigarette vapour to take into account the effects of cannabis smoke
• New, revised, and retired guidelines for first aid assessment, hand-arm vibration exposure limits, adjacent piping controls in confined spaces, and electrical testing equipment

Visit the WorkSafeBC website for more information on these and other related news and material. https://www.worksafebc.com/en/law-policy/occupational-health-safety/searchable-ohs-regulation

Cannabis Industry Must Prioritize
OHS as Legalization Approaches
Trimming marijuana leaves, working around grow lamps and extracting oils take a hit on workers. Health and safety professionals across Canada are concerned about the legalization of recreational marijuana and its impact on the workplace — especially when it comes to safety-sensitive positions. But something that has been largely ignored is the health and safety of workers within the soon-to-be legal cannabis industry. Deloitte has predicted that legalized recreational marijuana could be a $22.6 billion industry in Canada, taking into account the retail market, growers, product makers, testing labs and security. Unfortunately, when an industry is on the rise, the significant influx of new workers means occupational incidents – injuries, fatalities or both – rise as well. For example, Alberta experienced its highest number of workplace fatalities on record in 2013, clocking in at 188, during a time when the provincial economy was at its peak. To avoid this trend, cannabis companies – especially those involved in growing and harvesting operations – need to prioritize OHS now. Read the full article by Amanada Sillker on Canadian Occupational Safety.